Live Nation and Jay-Z

With the lost of CD sales Jay-Z negotiated a 360 deal with Michael Rapino and John Malone of Live Nation in 2008; he negotiated for a cash advance of $150 million that would make Live Nation his partner and they would share in all income generating opportunities accessible to the rapper. His negotiation with the concert promotion giant is the largest for any Rap Artist and set Jay-Z up as the fifth richest artist on the Forbes list. The deal calls for Jay-Z to record 3 albums and has a length of 10 years and Jay-Z would be obligated to perform at a series of Live Nation concerts.

In this negotiation Live Nation’s position is that of an investor by offering a large cash advance for the partnership, Jay-Z position is that of someone seeking financing for his recording projects and tours and with this 360 deal he gets what he wants. Live Nation gave Jay-Z the respect he was due and in return Jay-Z did not take a hardline position because of his popularity. The negotiation went smoothly because both parties needed what the other had.

Live Nation’s interests were to secure famous musicians for their series of concerts worldwide as well as Endorsements, Merchandising and ticket sales. Jay-Z’s interests were to start his record label and financing for his recording and touring projects. This helped Live Nation to have a guaranteed roster of performers for its worldwide concert series and Jay-Z has the opportunity to start a label and get the financing he needs for recording and touring.

Throughout this negotiation both parties were able to effectively use the core concepts to achieve an agreement by separating the people from the problem they were able to focus on the deal looking at the partnership and how it would benefit both Live Nation and Jay-Z. Live Nation has set the industry standard and was able to use objective criteria to secure the agreement. They had cut similar deals with U2 and Madonna with great success, which helped to secure the agreement with Jay-Z. By being able to consolidate the different business ventures allowing Jay-Z to do what he does and Live Nation doing what they do best they arrived at a mutual benefit that they were satisfied with.

The negotiation went well because both parties realized that it would be good business to be in business together knowing that each interests matched. What went wrong is that giving 30 million more to Jay-Z than they gave to Madonna might make it harder when they look to sign other artists who might want a bigger fee than what was given to Jay-Z. When you make deals with artists who are popular you run the risk of other artist thinking that they are worth more than the artist you previously signed.

The agreement that Jay-Z and Live Nation agreed to is Live Nation paying Jay-Z $150 million dollars for a 10-year contract, which includes Jay-Z recording 3 albums and performing at Live Nation concerts. Live Nation will finance his new record label, his recordings and touring, in return Live Nation will receive a percentage of all income generated by Jay-Z through the term of their contract.

In this agreement the long term and meaningful relationship will continue for 10 years, so Jay-Z won’t have to worry about how to finance his recording or tours and Live Nation won’t have to worry about reviews or contract negotiations and if the contract is successful I see an opportunity to renegotiate in the future providing both parties are satisfied.

 

Are You An Independent Artist

http://www.independentartistry.com

If you are an artist you need to know the value of being Independent and learn to run your career as a business.

I like to introduce you to  Independent Artistry where you will learn 10 Skills an artist needs to know in the new music business. Learn how to Copyright your music, Develop your brand, Trademark your brand, Incorporate your business, Finance your business. Take control of your career and learn The 4 Fundamentals and 10 Skills of Independent Artistry – the business behind the music. Artists can establish and manage a music career independently.

You should know how to establish your career in the music industry by applying the fundamentals of: Songwriting, Brand Development, Copyright Law, Trademark Law, Business Incorporation, Finances, Taxes, Artist Management, Music Publishing, and Distribution.

Take a look at what you will learn in Independent Artistry and how to apply it to your career..

The 1st Fundamental of Independent Artistry is Creative. Here you will learn the skills of Songwriting and Brand Development so that you can write your own music and create your own brand. Gain an understanding for the importance of songwriting and developing a unique brand to establish a foundation as an independent music artist.

The 2nd Fundamental of Independent Artistry is Vanguard. In this section you will learn the skills of Copyright Law and Trademark Law so that you can copyright your own music and trademark your own brand. Gain an understanding for the importance of copyright and trademark law to protect your intellectual property and establish a foundation as an independent music artist.

The 3rd Fundamental of Independent Artistry is Business. In this section you will learn the skills of Business Incorporation, Business Finance and Business Taxes so that you can handle the business affairs of your music business. Gain an understanding for the importance of business incorporation, business finance, and business taxes to operate as a music company and establish a foundation as an independent artist.

The 4th course of Independent Artistry is Media. In this course you will learn the skills of Artist Management and Music Publishing so that you can distribute and collect royalties for the music you create. Gain an understanding for the importance of management, publishing, and distribution to establish a foundation as an independent music artist.

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Intellectual property

Today I want to touch on Intellectual property this is my take on it.

People who create and invent ideas need to know about intellectural property protection and the intellectual property office is where you can find out about these protections. To appreciate the value of Intellectual Property within the entertainment industry you need to stop by the intellectual property office website located at http://www.ipo.gov.uk/home.htm where you can find information on the different types of intellectual property. There are four types of intellectual property.

  • Patents that protect the things you make and what makes them work like what makes a wheel turn or a chemical formula,
  • Trade marks words and logos,
  • Designs that protects your product or logo, to the shape of an airplane or fashion item,
  • Copyright, which is your automatic right that applies when you have written or recorded anything.

In a news article on newser.com the Obama campaign is suing a Demstore.com that sells T-shirts, bumper stickers and buttons for using their “O” logo making the claim that they are infringing on their trademark and wants the courts to stop them from selling items that uses two of their logos, and the sale of these items is harmful and competes with their merchandise being sold on the campaign website.

The owner of Demstore claims that thousands of companies are making similar products and they never had a problem before and that they have been doing business and providing many of the democrats with political materials for a long time and they rely on Demstore because their prices are more reasonable than Obama’s official store.

The question is do they Demstore have the right to sell items that are protected by Trademark? I would say that they don’t have a right without getting permission first, but the only reason I can see why the Obama campaign would want them to stop selling items with their trademark logos would be because they want all the monies from any sales. If the logos were not protected then Demstore should have the right to make products using the logos.

Beat Tape is Here

For the last couple of weeks I have been working on a Beat Tape to bring value to Rappers and Vocalists who are looking to take their music to the next level. I am offering 70’s Style Hip Hop Beats Vol 1 for $29.95. If you want to give your songs that pro sound then the professional quality Beats offered in this Beat tape will surely take you to the next level.

70'sdance

 

Here is the link to purchase these amazing pro quality Beat Tape:

https://tribal-affair-music-group.dpdcart.com

Business Plan Development

My original goal for this course was to learn how to create a great business plan by reading the EBook “Successful Business Plan – Secrets and Strategies by Rhonda Abrams” and watching the video “Nine steps to developing a business plan” on lynda.com and attending all of the seminars go to sessions for business plan development class. I thought that this will be easy, but I learned so much more than expected because the course went beyond what I expected. The course met the goal by helping me to understand what investors are looking for when they look at the business plan.

My insight for the course was that I will learn how to structure my business plan using the skills I learned in life, but the outcome has changed how I perceive what goes into planning a great business plan and what items needs to be address in putting it all together, as Mr. Burhoe explained I am working for the company even though it is my company, so I must treat it as a separate entity and I must become the employee and the owner.

Throughout the course I learned to look at all the possible outcomes my business plan will achieve in helping me get investors to understand that their investment in my company will be a good investment, that their money is in good hands and the company will make them a profit.

Personally I learned that it is important that I stay focus on the details when writing a business plan, and I learned how to apply the materials from the course to my personal and professional life. I have learned that much of what I need to run a successful business starts with my business plan and if the plan is shaky then so will my business. The materials from this course have helped me in so many ways and I will apply what I have learned in my personal and professional life.

Tips for Mastering You Songs

I have been a longtime admirer of Dave Pensado and have watched his many videos on mixing, also I have listened to his many interviews with top Grammy award-winning producers. Dave offers great insight into the world of audio mixing. One interview that really opened me up to mix engineering was this one with Jay Z’s Engineer, Young Guru – Pensado’s Place #129 Part 1 and 2 who gives insight into his work with Jay Z. http://youtu.be/H4h3qdw8dY4 Thanks again for your post.

For a long time I have been an admirer of Dave Pensado, who is a Grammy Award-winning mix engineer. He has a vast resume of artist he has worked with from Kenny G to Mary J. Blige and is well respected for his contributions. I often visit his website www.pensadosplace.tv and view his vlogs where he gives tips and tricks on recording, mastering, mixing, and plugin’s. He also has episodes where he talks with other engineers, educators, artist, producers, etc. where they breakdown works they have done in the industry.

Recently Dave posted a two-part vlog with mastering engineer Gene Grimaldi. The two discuss maneuvers and gives tips on ways to have your mix best prepared for the mastering engineer. If you were not aware there is multiple steps to recording a song. It begins in the hands of the recording engineer who is responsible for recording the song and getting good quality takes. It then goes to the mixing engineer, who handles processing, effects, instruments and combines them together for a final mix or what is considered a mixdown. After the final mix is complete it is sent to the mastering engineer. The vlogs breaks down some of the thing mastering engineers look for when they receive a mix such as, too much compression, certain aspects that can be improved upon. They also discuss how its important to have a relationship with your mastering engineer because you can learn more and it makes good in the long run.

What I take from these lessons are tips I can use on projects to better them and better them for the mastering engineer. I always like to critique my work and let my collogues critique my work before I attempt to send it in for master for more than one reason, it cuts back on return time and enhances my abilities. I would recommend other engineers to view some of these lessons and see what they can take from it.

The Future of Licensing Your Music

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Before you lament all of the changes or fear the demise of the traditional business, hold onto your hat because the future of licensing looks bright.

The opportunities for artists to get their songs placed on other outlets such as television, film, and video games are exponentially increasing. TV and film license fees have been decreasing and video games are allowing artists to make up for that loss. Video games are giving artists what’s known as performance-based royalties, which allow them to reach a new type of audience.

 

How does this impact the ever growing and evolving Internet?

Internet outlets are getting smarter! They’re creating exclusive content and licensing music for only online usage. Artists can now have their songs placed on everything from a Hulu original series to a series on Netflix. It used to be extremely difficult for new artists to get placements on TV/film. Now with all these new outlets, artists have many more opportunities to get heard and seen.

And when you speak about online content, you must bring YouTube into the conversation.

Will it remain an outlet for fly by night, flavor of the moment quasi-stars to reach critical acclaim, or is the future of TV at stake? YouTube is undergoing a giant makeover within the next few years as premium content and niche channels are about to take over. YouTube has the potential to become the go-to platform for building business media in the future. They aim to develop channels that are topic specific and interactive — meaning viewers will get exactly what they want. The company has already invested 100 million dollars in developing premium channels that range from education to fashion.

What does this mean for you?

Put down the guitar for a minute and get your fingers working on the computer to develop lists of outlets, shows, gaming properties and online networks to pitch music to. Unsigned, up-and-coming acts regularly get placements on networks programs these days and that trend is going to continue. Make music licensing a centerpiece of your story.

“Passive income” is the term financial coaches and other moola-savvy folks use to describe the income that grows over time or continues to come in without you having to do any additional work. Sounds good, right? Royalties from a music placement in a TV show are one example. In fact, royalties are the best source of passive income a musician can hope for. Sure, you can sell CDs and tickets to shows and get some quick cash. But making the CD work long-term is the goal of licensing and publishing. Also, co-writing with others who will be selling their music, can be a fruitful source of passive income. One co-writing session and years of radio and sync fees could be headed your way. For now though, lets focus on licensing.

Understand what it’s all about

In a nutshell, the way music licensing works is you send your music to a publishing company, music library, or film / TV show itself for consideration. Make sure that your music is copyrighted and registered with a Performing Rights Organization (PRO) like ASCAP, BMI or SESAC.

It’s important to understand how you get paid from your music being placed in any form of media. From there, you can figure out which avenue you’d like to pursue. Figuring out all the different ways to get paid has taken me years. The main points to understand are:

  • The difference between publisher’s share and writer’s share
  • What master, mechanical, and sync licenses are referring to
  • Who pays what, and how you get your cash

 

Revenue Streams For Music Creators

In this changing music landscape people who create need to learn about the multiple ways to capitalize on the talent, and what revenue streams are available for them to do so. Because if you want to earn an income from your music you need to treat it as a business, there are four types of royalties that you can earn from. There are Mechanical Royalties that the Copyright Act allows the owner of a copyright of a song the right to create copies of the song to be played on a mechanical device, and even though these devices have changed over the years the rights have not.

The Copyright Act allows for anyone to record the song, but must pay the owner of the song for the right to record it, and through the use of the song or composition there could be other artists who make records of one song and these recordings will yield royalties to the original copyright owner as Mechanical Royalties.

As a copyright owner of a composition you have the right to allow other artists to perform your song, and collect performance royalties for its use in their performance. The performance income from a copyright works is licensed through the performance rights organization (PRO) ASCAP, BMI, and SESAC that can include:

  • Any performance of a song or composition – live, recorded or broadcast in TV or Film;
  • Any live performance by any musician in a Bar or Club;
  • Any performance by any musician through a recording on physical media;
  • Performance through the playing of recorded music;
  • Any music performed over the internet (digital transmissions)

These organizations issue what is called a Blanket license to media outlets and music users for a fee that the composer and publisher will receive royalties for there is no payment to performance artist. A television show, commercial, or film can generates performance income from the license that is called Synchronization income, and it is paid for the use of background music, songs sung in a movie or over the credits, These licenses are negotiated on the needs of the buyer and seller.

Jingle Punks

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The music licensing industry has gone through major changes in the last decade and Jingle Punks has risen to the top of the game, since 2008 the company has seen profitable gains s (Robehmed, N. 2013, August 6). Once they got their start in 2008 they have doubled in each quarter (Roshkow, M. 2010, March 2), and teamed with the major networks to place music on their TV shows. Also named “America’s Most Promising Startups” by Business Week in 2009.

Market Research Overview

In 2013 Jingle punks passed the 1 million dollar breakthrough in synchronization payout to its indie artists (Christman, 2012, p. 1). Although Jingle Punks is the upstart they are competing for a market share with companies like UMG and SONY/ATV who are the major players in the licensing game and have the bigger slice of the music licensing pie. According to the annual survey by Music & copyright website independent music publishers accounted for 34.8% of publishing revenues in 2013 (Music & Copyright, 2014). Many of the big players (UMG and SONY/ATV) in music licensing are major labels that license music from their roster, but Jingle Punks are forging a new path in the ever-growing production music domain (ASCAP EXPO, 2013) with relevant and hip content that not only they write, but they offer options to independent artists and music producers to upload their music on a exclusive or non-exclusive basis.

Jingle created an app for the iPad where music supervisors can have access to over 20, 000 independent music tracks for use in any media production and they have successfully supplied music to over 80 TV series among them is Bravo’s “Real Housewives” and NBC’s The voice. With 60% of the music coming from independent music artists and music producers Jingle Punks is seizing its share of the music licensing pie (Jurgensen, 2013). Jingle Punks main competitors are Pump Audio acquired by Getty Images provides music from independent artists for licensing to advertisers television, film, and web clients, Rumblefish the largest soundtrack provider for TV, Film and Web clients, and Non Stop Music Company who distributes music to movies, TV shows, commercials, trailers, and radio and Jingle Punks has a large share of the TV shows market.

Buyer Persona

According to Buyer Persona Institute “Buyer personas are examples of the real buyers who influence or make decisions about the products, services or solutions you market” (Revella, 2014). John Edwards is a 30-year-old music supervisor from New York, New York created as a Jingle Punks typical customer. After sending time as a student at NYU’s The Clive Davis Institute of Recorded Music and working part time as a music editor for Platinum studios in New York City. Edwards started work as a music supervisor for the Bravo TV network. John also played Guitar for the indie band Blind bottom and composed songs for their debut album “Sky’s up” that’s when he decided to shop his music for licensing. The day begins for John by checking his many social media sites, having something to eat then going through music he receives from producers and artists looking for that special music for his next project, and seeingjingle if will fit the scenes he is working on. When he finds that right fit he make contact with the artist or producer to discuss terms. Around the early evening he has dinner then catches a cab to the local venue with his co-workers to hear bands play to see if he can find that gem he can use in his projects

Figure 1. Jingle Punks buyer persona. This figure illustrates a fictional representation of a typical Jingle Punks market consumer (JP, 2011)

Positioning statement

Jingle Punks has a comprehensive understanding of its position in the music licensing business. Their success has originated with their exceptional opportunities in music licensing. Jingle Punks differentiates from others music licensing companies via a concrete organization in which they select music for major TV shows, Films and advertising. They have an exceptional group of both independent and on staff music composers that are its greatest asset, and their principal motivation for its clients choose Jingle Punks over its competitors. The greatest approach for Jingle Punks to bolster their management in the music licensing industry is to continue connecting with major TV networks and seeking out placements with major brands. This helps independent composers and music artists feel good about their music’s opportunities to be placed in TV shows and other venues where music is needed and also keep its clients active in choosing music for their projects. This positioning statement delivers essential information that the consumer has for the Jingle Punks brand.

Jingle Punks positioning statement is the following:

For music creators and artists Jingle Punks is a music licensing company that provides licensing opportunities unlike Pump Audio, which provides royalty free for the master recording rights. Since no music is ever disposable Jingle Punks has launched Pop-up Music a boutique music publisher focused on artistic development and multi-platform exposure.

 

Business Storytelling and Brand Development.

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I will describe how my Business Storytelling and Brand Development class has open my eyes about building my brand in my Mastery journey, and how I gained understanding of brand management.

Throughout this class I have learn the importance of the brand and how it helps my company to be successful, also about how typography and color schemes can make my brand stand out. I never thought much about branding because I was caught up in producing music, through this class I learn that if I want a successful business I need to brand it.

I was never big on researching because I figured that only big companies need to do research, but I have learn that research is an important element for building a business. Researching about my competitors and how they market their companies has helped me with my vision for my company in developing my brand, through the materials and class sessions I was given the tools needed to build a strong brand. Using the Brand Identity Prism I learned that the principal steps to guaranteeing a reliable and lasting brand is shared values & community with noble purpose and a strong rallying cry, and personality.

The Business Storytelling and Brand Development class has really given me knowledge of what tools I will need to build a successful brand and Mr. DeGilio has been very helpful with his advice and online class sessions. I believe that by the end of my Mastery journey I will have build a brand for my company that I can be proud of and I know that the vision I have had in my head will become a reality. This has been a very rewarding and useful class and I have learn so much about branding that I will be able to help others to build a strong brand.