Music 199-Record Labels And Artist Contracts

Front 1

How does a record company promote an artist?

Back 1

The record company represents the artist by distributing and selling recordings.

Front 2

Where can you see in history the early roots of record companies?

Back 2

--agent or promoter hiring musicians for concertizing
--Church commissioned musicians to compose and perform music for liturgical services
--aristocracy indentured/employed composers and musicians to provide entertainment

Front 3

What is the earliest version of today's record labels?

Back 3

The piano roll companies that sold mechanical piano rolls around the year 1900.

Front 4

What inventions caused several small record labels to appear?

Back 4

Edison's phonograph and the Berliner gramophone.

Front 5

When was the first wave of small record labels?

Back 5

In the 1920s, labels such as Odeon and Savoy sold classical and popular music (jazz).

Front 6

What caused the end of many of these small labels?

Back 6

The advent of the radio in the 1930s as well as the Great Depression.

Front 7

What larger entities emerged?

Back 7

Decca, Columbia, RCA, and Victor.

Front 8

What resurged after WWII?

Back 8

Independents promoting "race music" (rhythm and blues) and rock and roll.

i.e. Atlantic, Chess, Sun

Front 9

What caused big labels to start to invest heavily in new artistic 'rock' bands?

Back 9

The British Invasion (Beatles) and the explosion of West Coast music (Jefferson Airplane)

Front 10

When was the "golden age" of rock?

Back 10

1965-1978--major labels began to re-consolidate their power and success

Front 11

What characteristic did major labels take on?

Back 11

Labels became very paternal. They carefully guarded and nurtured a major artist's career with producer support, tour support, and record promotion.

Front 12

Starting in the late 70s, what cycles did the record labels go in?

Back 12

The post disco era (1978-1984) was a difficult period with lagging sales and uninspiring artists.

However, the CD ushered in a hugely profitable era (1983-2000) for the record industry. It spawned a host of new independents, ie Rykodisc, Concord Jazz, and Windham Hill.

There was an upsurge in classical music on independent labels because the new pristine and transparent sound of digital recording enabled labels to rerelease new recordings of popular repetoire.

Major labels were then able to justify "remastering" their older pop music catalogue for re-release on the CD.

Front 13

What are the four major labels now?

Back 13

The last 25 years have brought about a lot of mergers and consolidation.

4 Major Labels:
(1) EMI
(2) Sony
(3) Warner Music Group
(4) Universal Music Group

Front 14

Where could there be tension between an artist and his or her record label?

Back 14

Artists usually don't understand much about money or transactions.

Record labels feign to be supportive of artists, but their bottom line is to make money.

Front 15

During what era did Johann Sebastian Bach compose?

Back 15

Baroque Era

Front 16

What kind of music did Bach write?

Back 16

He wrote secular music such as Brandenberg Concertos and Goldberg Variations.
He also wrote countless religious works such as masses, oratorios and over 200 Cantatas.

Front 17

Describe Bach's relationship with his "record label."

Back 17

1708--Duke of Weimar hired Bach to become the chief organist.
The Duke was essentially his record label. Bach had to perform and arrange concerts at the whim of the Duke or any one of his princes.

His artistry began to become well-known throughout central Europe. While organist at Weimar, he was offered a conducting position by another town (Halle), which interested him. He could then negotiate a higher position and a better salary.

In 1717, he asked to be released of his contract so he could accept another position at the Court of Cothen. He was sent to jail for "obstinately requesting dismissal" but he still composed while in jail.

Front 18

Who was Frank Zappa?

Back 18

A musician who formed a band called "The Mothers (of invention)"

Front 19

How was Frank Zappa discovered?

Back 19

In 1966, his band was discovered by Tom Wilson, from MGM records, while playing at the Whisky-a-go-go, a famous music night spot. He heard just one song, "Big Boogie Number" and he immediately offered the band a record contract with a $25,000 advances.

Front 20

How is Frank Zappa similar to Bach?

Back 20

Zappa was a versatile and prolific composer. He released over 50 albums, spanning rock, jazz and atonal classical music. He is often acknowledged as one of the great composers of the 20th century, but he never had a gold record or won a Grammy.

Front 21

What does an artist agree when entering a record contract?

Back 21

An artist and a record label enter a mutual and exclusive agreement. The artist "agrees to render his or her personal services as a recording artist on an exclusive basis for the purpose of making recordings from which records can be derived."

Front 22

Define a record.

Back 22

Any recording that can be sold to the public: LPs, cassettes, CDs, videos or digital downloads.

Front 23

What are some basic points in a record contract?

Back 23

1--Artistic choices are usually up to the artist, but must be approved by the record label.
2--Usually the artist has to fulfill their obligation (deliver a mastertape) within a specificied period of time.
3--The record label forbids the artist to record elsewhere.
4--The record is usually financed by the record label in the form of a loan or "advance."
5--Artists receive commission or "royalties" which begin after this advance is paid back.
6--The label usually has the option of not releasing a recording that they feel is not commercially viable. (the artist may have a "release" clause written into the contract.
7--Some may have publishing rights in the contract.

Front 24

How are royalties calculated for a traditional CD release?

Back 24

An artist's royalty is 12% of the list price.
--minus 3% producer royalty
--minus (25%) packaging costs
--minus (15%) free goods
--minus (35%) reserves

Front 25

Where does an artist's internet royalty usually start?

Back 25

Around 8-10%

Front 26

What are some problems we encounter with internet royalties?

Back 26

There are very few production and distribution costs associated with internet sales, but labels will often include them.
Part of the problem is that Apple makes 33% of every download on iTunes--much higher than CD production costs.

Front 27

What are some alternate approaches that labels take on royalties?

Back 27

--Labels will sometimes agree to a 50-50% split of the net profits from the record sales.
--Another formula is that the artist is compensated based upon record sales (i.e. 4% on first 50k, 5% on 2nd 50k etc...)

Front 28

Who retains ownership of the recording or master tapes?

Back 28

Since the recording is a "for hire" agreement, the record label usually retains the ownership of the master.
In some contracts, the ownership of the masters will revert to the artist after a period of years.
If a record company is merged or sold, or becomes bankrupt, the record contract may be assigned to another agent.