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130 Cards in this Set
- Front
- Back
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Who are the four major labels today?
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Universal Music Group
Warner Music group Sony BMG EMI |
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What is hte non-existant record lable
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Edison
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What are some record labels owned by Universal Music Group
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Geffen
Interscope Motown Universal |
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What are some record labels owned by Sony BMG
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Colombia
Epic Arista RCA |
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What are some record labels owned by Warner Music Group
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Atlantic
Elektra Maverick Warner Brothers Music |
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What are some record labels owned by EMI group
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Angel
Blue Note Capitol Records Virgin Islands |
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What is our distrinction of major vs. independent labels?
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Our distinction between the two is that a major owns would worldwide distribution
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What is Koch records
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the largest independent record label that owns distribution for North America only
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What percentage of the market do the four majors control
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86%
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When were CD's released
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1980
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When did Best Buy and Circuit City enter the market
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1994
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What happened in 1995
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Replacement cycle is complete
Tradition retail begins to struggle |
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What happened in 2000
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Internet took over
Declining market contrinues |
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What is the current music business model structured around
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Music as a physical product, sold through brick and mortar retail outlets
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What does recorded music allow the consumer to do?
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Allows the consumer to possess a captured music performance, and replay that performance whenever and whereever desired
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What is the goal of the music industry
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to get the consumer to pay for the convenience of listening to their favorite music on demand
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What is the one exception to following the basic format of creating a physical product?
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radio stations, is not an on demand system capable of being user controlled and radio does not provide direct income for the labels
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What is the expectation of companies realigning themselves in partnerships involving content and service providers?
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that the synergy created by aligning record companies with online and cable service providers would attract customers and increase sales
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What is bandwidth
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the capacity of the maximum data transfer rate of an electronic communications system
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What is online considered?
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any type of transmission that is streaming in real time, and includes airwaves and wireless communication transmission
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What is 3G
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Third Generation cell phone handsets and system capable of transmiting stroing, and playing multimedia content
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What is coacial cable
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A transmission line of high bandwidth television signals that consists of a tube of electrically conducting material surrounding a central conductor hekd in place by insulators
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What is convergence?
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moving toward unity or uniformity
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What is digital rights management
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DRM- a systematic approach to copyright protectiong for digital media, designed to preven illegal distribution of paid content over the internet
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What is the A & R department
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charged with finding new talent for the label and helping that talent develop
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what is artist development
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sometimes called the product development dept. or product managers, this dept. manages that artist through the MAZE of the record company and it needs from the artist
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What is the business affairs dept.
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where the lawyers and accountants reside at the record label
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what is the creative services dept.
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in charge of imaging, graphics, photos and designs
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what is the promotion dept
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secures radio airplay
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what is the publicity dept.
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secrues media exposure for the artists and writes materials such as press releases and bios
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What is the sales and marketing department
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sells product into retail and creats visibility of the product at the consumer level.
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What is the legal and business affairs department responsibile for
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licensing, negotiating contracts
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what is the accoutning department responsible for
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day to day operations
when to release the album |
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what is the creative and production dept. responsible for
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graphic designers, artwork for the entire project
sales, album artwork |
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What is the publicity dept. responsible for
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getting the artist noticed
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what is the promotiongs dept. responsible for
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radio airplay and video play
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What is the marketing dept. responsible for
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works with other deptartments, product manager, artist development, tweak artist image
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What ist he sales dept for
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sell product over and over again
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who is their first line of customers
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distribution
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what is the 2nd
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consumers
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Whos is the artists first contact
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A&R
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What is the analysis of each release examined in
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profit and loss statement
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How do labels obtain master recordings
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repackaging and remastering
purchasing a master already produced signing an unknown artist |
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Who do artists work with to create a recording
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producers
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What is the artist development person in charge of
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imaging
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what is the artist relations person in charge of
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post release contact liaison at the label for tour support
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What does artist imaging being with
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creative services assisting int he development of style
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What does the creative services dept. office manage
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photo and video shoots
setting the arragnments collaborating on design ideas and concepts with the artists |
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When is the publicicity dept. set into motion
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once the artist is signed
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What goes into a press kid for artists
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photos
articles and reviews discography awards and other credits |
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what is the number one agenda for the promotion dept.
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secure radio airplay
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What is the new Media dept responsible for
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face of the label
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what needs to happen before any artists gets signed to a major label
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arists development
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what do artists look for in a label
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what will the label do for them
make sure they have enough funding for another project and that they have enough staff |
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what do record companies use profit and loss statements for
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to predict the success of a record prior to it's release as well as analyze a project as it nears the end of it's life cycle
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what is the suggested retail list price
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set by the record label and is based on the cost of the recording project, the artists status genre of music, competitive landscape, and what the market will bear
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How is the majority of music sold
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wholesale pricing strategies
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Hwo do label sentice retailers to purchase new artists
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labels will offer discounts, which will increase the margin and profitability at the store level
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what does gross sales refer to
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the wholesale price or value of the product with the reduction of the discount
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what is the distribution fee based upon
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depensing on the relationship between the label and the distributor, the fee is based upon sales after the discount
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are advances recoupable
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yes
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what do marketing costs include
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making the record, imaging of an artist, advertising at both trade and consumer publications, readio promotion, and retail positioning in stores
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what is the usually the most expensive marketing cost
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retail positioning in the stores
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what does trade advertising create
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awareness of a new product
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who are the decision makers in the record business
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music buyers for the retail stores, radio stations and their programmers, talen bookers for television shows, reviewers for newspapers and consumer magazines, and talent buyers for venues
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what is consumer advertising
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external advertising seeing as how it is targeting the end consumer
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what can consumer advertising include
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artist album art
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how much of the cost of video production are the artists responsible for
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50%
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is the cost of artists promotion recoupable
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no
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what does a designer do
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creates the overall album art concept
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What professionals are used in artists imaging
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hair and makeup, clothing, dance professionals
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Marketing tool used by the label
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actual CD
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what are No charge records
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CDs that are used for promotional use
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what should a company analyze
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where spending is less effective
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What is the formula for NET shipment
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gross ships-cumulative returns=Net shipment
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what is soundscan
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information system that tracks of music and music video products through out the US and canada
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What equation do record companies use to eveluate inventory
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Net shipments- soundscan sales= remaining inventory
SoundScan/Net Shipments= Sell off percentage |
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What are the formulas for percentage of marketing costs?
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Percentage of Marketing cost to Gross: Marketing Costs/Gross Sales x 100=%
Percentage of Marketing Cost to Net: Marketing Costs/ Net Sales x 100=% |
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The _____ the percentage reflects the ____ performing project.
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Lower
Better |
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What can make a project either profitable or not?
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Various marketing line items
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What is the formula for the break even point?
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break-even point= total fixed costs/
price (total variable costs/ units) |
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What is the formula for break even with costs listed?
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BE=recording costs+ advances/price- variable costs
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What is not part of the break-even equation?
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Overhead that it takes to operate the business
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What are examples of overhead?
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rent, electricity, water
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Who signs the artist to the their contract?
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The Legal Department
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What is the term of a contract?
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the length of time that the agreement runs
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What is commitment?
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clause stating that the label is committed to releasing an album
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What are options?
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clause require an artist to produce one additional album per option in the contract
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What is the average options that a label wants an artist to agree to?
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2 to 6 options
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What is recoupable?
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the artist has to pay back the funds paid up front
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What is an execution advance and is it recoupable?
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a signing bonus for completing an album, sometimes given to an artist who chooses to stay with the label who have finished a contract, not recoupable
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What is a recording advance and is it recoupable?
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The money to record the album, recoupable
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What is a new artist royalty rate?
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8-12%
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What is a royalty for a big name artist?
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18-20%
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What is Mid Price?
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drops artist royalty rate to 75%
cannot be done until after 18 months of the album being released 2-3 dollars off of SRLP |
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What is Budget?
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drops artist royalty rate to 50%
Anything that is over 3 dollars off SRLP cannot be done until 36 months after release of album |
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Is Tour Support Recoupable?
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Yes
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How much of the expense for music videos is recoupable from the artist?
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50%
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How much of the expense for independent promo and marketing is recoupable from the artist?
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50% because it is an outside company
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What are re-recording restrictions?
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artist cannot re-record music anytime that they want
Sets a time limit until a specific time |
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What are the two unions?
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AFTRA
AFM |
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What does AFTRA stand for and who does it represent?
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American Federation of Television and Radio Artists
Vocalists |
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What does AFM stand for?
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American Federation of Musicians
Musicians |
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When you sign to a label you must sign with a union, true or false?
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True
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What is a sideman clause?
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restricts how much time an artist can perform on a song, does not allow the artist's name or picture in the artwork
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What is a producer clause?
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an artist cannot produce for any other artists on another label
You cannot produce for someone else if you own a label Your picture cannot be used in the artwork Name has to be in the liner notes Label will make a profit off of you if you are being used to make money |
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What are group provisions?
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cannot leave a group to shop for a solo contract
If you want to leave the group you are still bound to the label by your contract Label decides who is replaceable and who is not |
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What is a Key Man clause?
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artist names somebody at the label and if that person is no longer there the artist can terminate their contract
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What is coupling?
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a compilation album
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What is a new technology, cyber sales, and downloads clause?
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states whether or not the label needs permission from the artist to use new technologies
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What is a sampling clause?
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always in a recording contract
states that all clearances for sampling are the responsibility of the artist |
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What is standard packaging for CD's?
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Jewel Case
4 colors on the outside and 1 color inside 8 pages or panels |
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Who is responsible for paying for overages on packaging?
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The artist
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Who decides when to release the album?
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Finance
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How does the finance department decide when to release the album?
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Keeps like artist release dates separate
Looks at the economy Sales from the previous year Holidays |
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What is the biggest holiday for CD sales?
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Christmas
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What are the graphic designers responsible for?
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Designing the CD cover, booklet, and packaging
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What is the typical cost of a photo shoot at a major label?
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40-100,000 dollars
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What things go into a budget for a photo shoot?
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Photographer, Hair and Makeup, Fashion (stylists)
Locations Catering Security Transportation Insurance Contingency |
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If using a public location for a shoot what must you obtain?
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permits
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What is a contingency?
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5-10% of total cost to cover anything that happens, changes, or goes wrong
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What is the typical length of a photo shoot?
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Try to get it done in one day
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What is production responsible for telling us in terms of packaging for the album?
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cost of production
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What are some things included in a press kit?
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phots, bios, reviews, press releases, previous shows, magazine articles, record label contact information
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From a label standpoint, what is a promo tour?
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it is not intended for the public
promotes the product to the industry visit press and retail push the music to radio stations meet the program directors On air interviews private concerts |
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When do you do a promo tour?
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before the release of an album
right before a single is released |
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What is Payola?
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Cash or gifts used to get songs played on radio
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Can payola be used today?
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No, It is illegal
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What are some ways to get the song radio play legally?
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CD release party
ask the station to play the song call in a favor give tickets, CDs to give away as a part of a contest |
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When all else false how can you get a song played?
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Offer an exclusive interview
Use an independent promoter to the station to play the song |
