MUC110 LEC4.Record Promotion and Distribution

Creating the Demand: Publicity PUBLICITY: The Publicity Team (aka Media Relations): is responsible for procuring free placements of stories, pitches and announcements in the Media Media. Information is placed at: p •Radio •Consumer and Trade Magazines •Newspapers N •Internet •TV (Cable, Network TV Information includes: announcements, reviews, feature articles, i t i ti l interviews, t lk show performance appearances talk h f © 2007 musicbizclasses.com

Creating the Demand: Promotions Promotions: The Promotions teams- Radio, Video, New Media, General Promotions and Tour staff are responsible for creating high impact programs for diverse industry partners- radio stations, retailers, websites, websites TV productions Tactics include: –Independent Radio Promotion campaign –Production and Promotion of Videos Production –Contests, Give-aways, In-Store Appearances –Promotional ringtones and downloads –Tour Support © 2007 musicbizclasses.com

Creating the Demand: Advertising Advertising: The Advertising team is responsible for purchasing ad space or making targeted media buys. Ads are placed in a variety of media including: –Print- Consumer and Trades journals, magazines, newspapers –Broadcast- TV Cable (Independents), Radio Broadcast TV, (Independents) –In-Store Publications/Retailer Newsletters –Internet © 2007 musicbizclasses.com

Creating the Demand: Sales Sales: The Sales team is responsible for working with distributors to inform retailers about new releases Sales uses these tools to help encourage Sell-In: –Discounts –Promo Copies –100% inventory return policy 100% –Retailer support $$ © 2007 musicbizclasses.com

RECORD MARKETING TOOLS: PRESS KIT Offers a complete package about an artist and new release Press Kit Elements: • Artist/Band Biographies & Background • CD/single • Digital Artwork Logo, Screen Shots, Head Shots • Testimonials: Industry Awards, Recognitions • Press Release • Press Clippings • “Cut-by-Cut”-Track listing with artist’s p y g personal comments • EPK: • Video Interviews • Video of Performances © 2007 musicbizclasses.com

RECORD MAREKTING TOOLS: PRESS RELEASE Creates compelling, timely announcements about artist/new release Press Release Elements: • A Answers the I th Important “W” questions- t t ti Who, What, When, Where, Why • Headline • Dateline • Lead Paragraph • Body Copy • Company Boilerplate • Contact Information © 2007 musicbizclasses.com

RECORD MAREKTING TOOLS: ONE SHEET Created b the R C d by h Record L b l to provide d Label id a comprehensive snapshot of information on a new release release. The One Sheet captures the most important data of the upcoming release. And helps “sell” retailers with an outline p of the marketing support available. © 2007 musicbizclasses.com

One Sheet Elements: • Album Art and Logo • Storyline/Buzz about Record/Artists • Artist’s Bio • Promotion and Marketing Plans g • Key Selling Points and Sales Tactics • Street date • Contact Info • Track Listings • Tour Plans • B Code Bar C d © 2007 musicbizclasses.com

Distribution What is Distribution? • the commercial sales process of moving goods from product manufacturers to end-consumers d Goals 1)Sell maximum # of units (physical and digital) g ) 2)Service retail accounts for repeat business © 2007 musicbizclasses.com

Distribution Moving product from Manufacturer to Consumer RECORD DISTRIBUTOR RETAILER LABEL Manufacturer Manages and Sells the product makes the warehouses the to consumers product product INVENTORY MANAGEMENT AND CONTROL IS THE FOUNDATION © 2007 musicbizclasses.com

Record Label Distribution Overview • Labels Create/Package Records: – Business objective: Create Marketing buzz and Branding and get consumers interested in the music • Distributors Move Records from Pressing to Stores: g – Business objective: Generate revenue from stocking Music Product in Retail stores (Sell In) • Retail Stock Records for Consumer Purchase: – Business objective: Generate revenue from selling direct to consumers (Sell Through) © 2007 musicbizclasses.com

Record Label Distribution Overview •Distributors are the middlemen between the labels and the retail outlets- outlets –they exist because they have developed more y y p efficiency in getting physical Records to record stores •Every established distributor, whether local, regional or national has a circuit of retail national, outlets they service on a regular basis © 2007 musicbizclasses.com

Record Label Distributor Services 1. Order (buy) Records from Labels 2. Warehouse or store the records that are waiting t b shipped iti to be hi d 3. Track sales via invoicing and sales tracking 4. Help develop marketing campaigns. 4 H l d l k ti i 5. Employ a sales staff to pitch and inform retail stores about their inventory 6. Deliver merchandise, set up displays and make sure that inventory is stocked y 7. Collect left over product that stores are unable to sell- “returns” © 2007 musicbizclasses.com

Distributor Types Major Label Distribution- Distributors that are divisions or subsidiaries of Major Labels. Labels Usually manage their own label’s label s music via Branch Offices across the U.S. Independent Distributors- Distributors Distributors usually sell smaller and independent labels into stores– music chains and mom-and-pop stores- mom and pop stores generally focus on a few genres--RED, ADA, IDC, RedEye, Koch, Burnside, ThirtyTigers © 2007 musicbizclasses.com

Distributor Types Rack Jobbers- Distributors that manage music sales inside Large Retail Chains- have varying payment agreements with retailers generally focus on Top 40 & retailers- Pop genres; often rent floor space from retailers- Anderson Merchandisers, EDGE One Stops- Distributors that services smaller retail stores with access to larger distributors catalog- lower minimums- SuperD, Caroline AEC/IDN SuperD Caroline, AEC/IDN, Baker & Taylor Online/Digital Distributors: Distributors that work exclusively online/with digital formats Typically formats. Typically, independent–TuneCore, SongCast, The Orchard Digital Retailers- iTunes, Amazon, ThinkIndie.com, AmieStreet.com Digital Platforms- Nimbit, Snocap, ioda © 2007 musicbizclasses.com

Other Distributor Types: D-I-Y: • Consignment • Record Sales at gigs • Record Sales and Downloads via artists’ own websites Miscellaneous: • Record Clubs- Yourmusic.com • Re-packagers- TV infomercials- Time-Life • Cut Out Wholesalers- eBay Cut-Out Wholesalers eBay, MoonlightSales.com © 2007 musicbizclasses.com

Retail Music Environment • 65% of all music sold is Physical Product- Primarily Product CDs • Bricks-and-Mortar stores 85-90% of all Physical y Record sales are generated in retail stores Store Types •“Big Box”- Mass Merchandisers- Target, Wal-Mart, Best Buy •Small to Mid Size Chain F Y E Small Mid-Size Chain- F.Y.E. •Independent/”Mom and Pop”- Amoeba, Twist &Shout •Non-Music w/related lifestyle inventory space © 2007 musicbizclasses.com

MUC110 LEC4.Record Promotion and Distribution

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