Mmgt 11-01 Vocabulary

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controlled compositions

Back 1

a song written, owned, or controlled by the artist

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recoupment

Back 2

the process of keeping the money to recover an advance

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cross collateralization

Back 3

adding together all the advances/funds and royalties due across multiple albums

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free goods

Back 4

a portion of CDs given to stores in order to entice them to sell album

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secondary market

Back 5

when your Artist plays a smaller city, the larger adjacent cities are big pools to sell tickets, get press, meet radio stations, and stores, etc.

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deficit

Back 6

the amount of unrecouped monies

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nonreturnable

Back 7

when concerning advances, it means that it’s totally the record company’s risk

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bullet

Back 8

a dot or a star next to a record’s number on the chart, and it means the record is moving up strongly. the lack of one means it’s weakening or on its way down.

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prospective escalations

Back 9

only apply to sales occurring after the level is reached (escalations that have had a cap put on them)

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retroactive escalation

Back 10

escalations on prior sales

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all-in

Back 11

the artist is responsible, out of his or her royalty, for paying the record producer and mixer

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net rate

Back 12

the amount that is the all-in rate minus the amount paid to the producer

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funds

Back 13

a set amount of money, which includes both recording costs and any amounts that may be payable to the artist as an advance

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formula

Back 14

a mechanism designed to automatically increase (or decrease) your deal if you’re successful (or a flop)

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floor

Back 15

this means no matter how lousy the earnings of the previous album, the fund will be no less than an agreed amount.

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ceiling

Back 16

means that no matter how wildly successful the prior album, the fund won’t exceed an agreed dollar figure.

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pay-or-play

Back 17

the record company has the option either to allow you to “play your music” or to “pay you off.”

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firm

Back 18

albums to which the company is committed.

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demo deals

Back 19

the record company spends more money for the artist to go into a studio and record demos.

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demo

Back 20

short for demonstration recording,” which is less than a full-fledged master but gives the company
some idea of what the artist will sound like on a professional record.

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development deal

Back 21

the same as a demo deal, except the company is spending more money - around $50,000 or so. typically they’ll sometimes record a couple of finished masters. unlike a demo deal, the recording contract is pre-negotiated, so you roll right into it.

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periods

Back 22

the segments of the term, such as the initial period (first year), first option period, etc.

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term

Back 23

how long the record company keeps you under an exclusive agreement.

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commercially satisfactory

Back 24

the record company only has to take recordings it believes will sell; in other words, recordings it finds satisfactory for commercial exploitation.

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technically satisfactory

Back 25

as long as a recording is technically well-made, the company has to take it.

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controlled composition clause

Back 26

limits how much you get paid as a songwriter.

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greatest hits

Back 27

a compilation of songs from an artists prior album, and perhaps one or two new songs.

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live album

Back 28

is recorded during a live concert, rather than in a studio

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guaranteed release

Back 29

this clause will never obligate the company to release an artist’s records; it will only say that the artist can get out of the deal if they don’t

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producer

Back 30

is responsible for bringing the creative product into tangible form, which means (a) being responsible for maximizing the creative process and (b) taking care of all the administration, such as booking studios, hiring musicians, staying within the budget, filing union reports, etc.

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delivery

Back 31

the company has to accept the recordings as complying with your deal, and the contract will specify what standards the company can use in deciding whether to accept.

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A&R

Back 32

“artists and repertoire,” were executives of record companies whose job was to find, sign, and guide talent, math songs to singers, and run recording sessions.

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retroactive to record one

Back 33

once recording costs are recouped, the producer is paid from the first record sold (record one), and this payment is retroactive because the company “goes back” and pays on sales previously made that didn’t bear royalties at the time of sale.

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prospectively after recoupment at the combined rate

Back 34

once the recording costs are recouped at the all-in rate, the producers are paid on sales after that point.

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mixers

Back 35

take the multitracks and throw them in a blender to produce a mystical potion of sublime music.

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first refusal/last refusal/matching right

Back 36

if an artist gets an offer from another company, the artist can’t just accept it. instead, the artist has to go back to the original company and give it a chance to match the new offer.

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override

Back 37

the demo funder gets a 1% or 2% royalty on the artist’s records

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pro-rate

Back 38

meaning your royalty is in proportion to the number of cuts on the album

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exclusive

Back 39

during the term of the agreement, the artist can’t make records for anybody else.

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re-recording restriction

Back 40

an artist can’t re-record any song they recorded during the term of a deal for a certain period of time after the term.

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webcasting

Back 41

a broadcast over the internet, such as: music played by self-declared DJs, and by regular, over-the-air radio stations, steaming on demand of audio and/or videos on the internet, artists who broadcast their concerts over the internet

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sideman

Back 42

non-featured appearances

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compilation

Back 43

meaning a program “compiled” from a number of individual video clips, of the same or different artists

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video streaming on deman

Back 44

for example, Yahoo!, MSN, and AOL

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dual disc

Back 45

a CD on one side and a DVD on the other

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digital mechandise

Back 46

the digital use of an artist’s image

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tour support

Back 47

monies that record companies give you to make up tour losses

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CHR

Back 48

contemporary hit radio

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ratable

Back 49

the record company has to pay an equal amount each time they liquidate (pay out)

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audit clause

Back 50

which says an artist can audit (meaning send in an accountant to verify) the record company’s books

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wholesale distribution entities

Back 51

they buy from the manufacturing company and sell to retail stores

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one-stops

Back 52

buy from the major distributors and then sell to “mom and pop” record stores, who buy quantities too small for the majors to bother with. the one-stop buys in bulk, and then sells onesies and twosies to the stores at a markup

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licensees

Back 53

someone who signs a “license agreement” with a record company, which allows them to actually manufacture and distribute records, as opposed to merely buying and distributing goods manufactured by the record company

ex. foreign distributors of US recordings
record clubs
television-advertised packages

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USNRC (US normal retail channels)

Back 54

the royalty rate for these sales is usually defined in record deals as some like the US basic rate

--> falling under the following criteria:
a cd sold in the US
at full price
through normal retail channels
by the company’s normal distribution channels

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R.O.W.

Back 55

rest of world

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electronic transmission

Back 56

industry term for digital delivery and much, much more

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digital downloads

Back 57

a transmission to the consumer that allows the buyer to record music for later use

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tethered downloads

Back 58

means the record company doesn’t give you complete control over the download

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untethered downloads

Back 59

can be copied, burned, etc.

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streaming-on-demand

Back 60

you can call up and listen to any songs in the database, any time you like

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ring tones and ring backs

Back 61

songs that play when your cell phone rings. when you call someone and their phone is busy

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polyphonic

Back 62

played by a synthesizer (has nothing to do with the artist, only the songwriter gets paid)

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master tone/true tone

Back 63

the actual master recording by the artist

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non-interactive webcasting

Back 64

means streaming stuff on the internet

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sound exchange

Back 65

money collected by an outfit, which pays a portion to the record company, and a portion directly to the artist

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kiosks

Back 66

machines that sit in retail stores, inviting you to pick your favorite recordings

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special markets (division)

Back 67

whose job is to take existing recording and figure out ways to squeeze money from them

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coupling

Back 68

the practice of putting your performances together with those of other artists

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joint recording

Back 69

where more than one royalty artist gets together on the same song, such as a duet
box sets - are a collection of three, four, or sometimes more CDs sold in a single package, usually with an expensive booklet, and for a very high price

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catalog item

Back 70

it’s listed in the company’s catalog of available titles, but isn’t being currently promoted

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mid-price

Back 71

meaning a reduced price that’s designed to encourage consumers to buy older titles

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budget

Back 72

which means the company doesn’t think it can sell the stuff unless it knocks the price way down

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cutouts/deletes

Back 73

are records that have been taken out of the company’s catalog

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record clubs

Back 74

are mail-order “clubs” that you join by agreeing to buy a certain number of records

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premiums

Back 75

which means (records/singles) are sold in conjunction with a product or service, typically at a very low price

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DART

Back 76

(digital audio recorders and tapes)