Royal College of Music - Jan 15, 2013


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Thinking Different(ly): Creative Music in the Digital Economy
Presentation for the Royal College of Music - Jan 15, 2013

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Royal College of Music - Jan 15, 2013

  1. 1. Thinking Different(ly) - Creative Music In the Digital Economy Eric Jensen Royal College of Music Stockholm, Sweden January 15, 2013 eric@ewjensen.comThursday, January 17, 13
  2. 2. Eric Jensen Berklee College of Music Jensen Sound Productions Liquid Audio eric@ewjensen.comThursday, January 17, 13
  3. 3. Musical entrepreneurship Music industry business rules - tapping multiple income streams A look toward the future...Thursday, January 17, 13
  4. 4. “I saw the angel in the marble and carved until I set him free.” - MichelangeloThursday, January 17, 13
  5. 5. “You can be the most creative software designer in the world. But if you don’t know how to make money, you’re never going to have much of a business or a whole lot of autonomy.” - Jason Fried co-founder and CEO, 37signalsThursday, January 17, 13
  6. 6. “This changing landscape is not necessarily bad news for musicians... There have never been more opportunities for a musician to reach an audience, and that is what we have always wanted to do.” - David ByrneThursday, January 17, 13
  7. 7. You are the CEO of your music careerThursday, January 17, 13
  8. 8. If you are not proactively overseeing your career... ...someone else is doing it for youThursday, January 17, 13
  9. 9. Why do artists struggle with “The Business”?Thursday, January 17, 13
  10. 10. Negativity Bias Complex business rules, capital intensive and... We work differently...Thursday, January 17, 13
  11. 11. Making a great productThursday, January 17, 13
  12. 12. Identify need/problem Create an innovative solution Check business model ExecuteThursday, January 17, 13
  13. 13. Artists often create the product first and then figure out how to make money with it later.... photo by Giovanni GallucciThursday, January 17, 13
  14. 14. Neara RussellThursday, January 17, 13
  15. 15. Music publishing company at age 15 ASCAP Plus Awards Presidential Scholarship Two self-produced albums 2010...Neara moves to Los Angeles...Yamaha endorsee - since 2005 2013 Touring, session work, Keys/vocals/programming, teaching, income from Hollywood Records artist music libraries and Bridgit Mendler concert works... Keys/vocals/programming, Sony Music artist BC JeanThursday, January 17, 13
  16. 16. “This play-along “Joy Luck” compilation gets its inspiration from there being a need for a modern jazz-based trio “music minus one” offering that was --- relevant to the playing challenges and issues that today’s students and professionals encounter every day in their musical lives.” - Peter ErskineThursday, January 17, 13
  17. 17. Thursday, January 17, 13
  18. 18. Seth Godin on Business Models 1. What compelling reason exists for people to give you money? (or votes or donations) 2. How do you acquire what youre selling for less than it costs to sell it?Thursday, January 17, 13
  19. 19. “Creating value” with music Creative Product or Business to Collaboration Experience Business Licensing/ Sideman Recordings advertising Session By-products Business musician Performing partnerships Composer Teaching Record dealsThursday, January 17, 13
  20. 20. Seth Godin on Business Models 3. What structural insulation do you have from relentless commoditization and a price war? 4. How will strangers find out about the business and decide to become customers?Thursday, January 17, 13
  21. 21. Following the money up to the top of the chain can give you a better sense of where you fit in... ...and show you new ways to create valueThursday, January 17, 13
  22. 22. Disruptive innovationThursday, January 17, 13
  23. 23. A disruptive innovation can ultimately take over a market that is currently successful Identify emerging disruptive trends and plan accordingly Disruption creates new markets and opportunities within existing marketsThursday, January 17, 13
  24. 24. Frank Briggs Artist Educator Producer and...he is looking toward the futureThursday, January 17, 13
  25. 25. HTML 5: Responsive Design Tablet sales expected to exceed 100 million in 2013 Web or Apps? How About Both. Years of educational material in an immersive, interactive experience Innovative business modelThursday, January 17, 13
  26. 26. Thursday, January 17, 13
  27. 27. Network of Los Angeles session musicians created by drummer Blake Paulson Founded in 2007, the team has grown from 3 musicians to 13 with backups and an extended network of strings, horn, singers, and specialty instruments.Thursday, January 17, 13
  28. 28. The Backliners simplify booking for artists and labels and also create connections between musicians and help to balance road work and session gigs.Thursday, January 17, 13
  29. 29. Thursday, January 17, 13
  30. 30. Thursday, January 17, 13
  31. 31. Thursday, January 17, 13
  32. 32. SIX DISTRIBUTION MODELS 1. 360° Deal 2. Standard Royalty Deal 3. License Deal 4. Profit-Share Deal 5. P & D (or M & D) Deal 6. Self-DistributionThursday, January 17, 13
  33. 33. FMC has identified 42 unique revenue streams for musicians (see handout)Thursday, January 17, 13
  34. 34. Thursday, January 17, 13
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  36. 36. Digital streams are beginning to generate real money... SoundExchange is sitting on approx. $300 million in undistributed royaltiesThursday, January 17, 13
  37. 37. “For me, music is becoming dematerialized, a state that is more truthful to it’s nature, I suspect. Technology has brought us full circle.” - David ByrneThursday, January 17, 13
  38. 38. Putting a bucket under every drip...Thursday, January 17, 13
  39. 39. Every recording embodies two copyrights Underlying composition Sound recording (music + lyrics) SR PA Recording Who gets the Who gets the licensing revenue? licensing revenue? • Songwriters/ • Performers Composers • SR Copyright owner (usually a • Publishers record label) This slide is recreation of a FMC imageThursday, January 17, 13
  40. 40. Composition Copyright Mechanical Royalties from record sales for composition used in sound recordings. Paid to publishers/composers Performance Royalty for public performance on radio, television, live venues, etc.Thursday, January 17, 13
  41. 41. Sound recording copyright Artist Royalty - paid to recording artist by the record label based on contract terms Digital streams (Pandora, satellite radio, etc.) generate royalties distributed to label, performer and sidemen Licensing sound recordingThursday, January 17, 13
  42. 42. Sync licenses A sync license is a separate license for synchronizing a recording with film Must be negotiated separately with publisher(s) and record label Music supervisors prefer to work with people who control both copyrightsThursday, January 17, 13
  43. 43. Production Music Libraries Mitch Coodley: The Buzz Working guitarist with: Gary Burton, Pat Metheny, Mike Gibbs, Donald Byrd, Ben. E King, Michael Urbaniak, Jerry Bergonzi.Thursday, January 17, 13
  44. 44. Production Music Libraries Artistry is not just self-expression. Its feeling filtered through discipline. You always need to answer the question about your music: "Why does anyone want to listen to this?"Thursday, January 17, 13
  45. 45. Production Music Libraries If you are expecting to make a living you need a large audience or plenty of clients. You must be pleasing people, not only yourself. That doesnt just mean you give people what they want. In some cases you show them something they didnt know they wanted, because its so novel, well-crafted, fresh, evocative, original, and compelling. But your product must sell.Thursday, January 17, 13
  46. 46. Production Music Libraries The entire music industry has discovered and flooded the world of licensed music. 10 and 15  years ago production music composers and companies delivered most of the licensed music on TV. Now we have to compete with every commercial artist and act.Thursday, January 17, 13
  47. 47. Production Music Libraries The opportunity is there for an artist, composer, or band to have music licensed and performed on TV, if they understand why certain tracks get used, and by whom. Keep in mind that there are dozens of major publishers that understand this and A&R their writers with licensing in mind. So one needs to have serious quality on all levels and pay attention to trends and specific usage situations.Thursday, January 17, 13
  48. 48. Thursday, January 17, 13
  49. 49. Tom Strahle Session Guitarist Justin Bieber Taylor Swift Marco Antonio Solis Taboo (Black Eyed Peas) Pitbull T-Pain music for TV/Film - NBC, CBS, MTV, LifetimeThursday, January 17, 13
  50. 50. Guitarist - Composer - Songwriter Church Musician - Teacher - Clinician My income has shifted radically from gigs and a few sessions, to half royalties and gigs/sessions; overall more than doubling in the last five years One new stream has been YouTube & blog advertising revenue. While little more than a trickle at this point, I know others who have been able to quit their day gigs because of this revenueThursday, January 17, 13
  51. 51. Special Payments Profit-sharing fund establish by the American Federation of Musicians for musicians’ work in TV and film Sidelining: Playing a musician “extra” in a television or film production. Eligible for Special PaymentsThursday, January 17, 13
  52. 52. Endorsements and Sponsorships “If you’re good, and can teach/play and/or have a name gig, manufacturers will usually give you free or discounted instruments and accessories and may even contribute to clinics and master classes.” - Frank BriggsThursday, January 17, 13
  53. 53. MoonaliceThursday, January 17, 13
  54. 54. Thursday, January 17, 13
  55. 55. Grants and Fundraising PlatformsThursday, January 17, 13
  56. 56. Community InitiativesThursday, January 17, 13
  57. 57. Thursday, January 17, 13
  58. 58. “You have something very special to offer that nobody else can. And that is something very beautiful that you can bring to the is your own voice.” - Award-winning producer, composer, and songwriter Daniel IndartThursday, January 17, 13
  59. 59. Daniel Indart Selected music credits... Producer Kingpin Composer Ricky Martin The Sopranos Songwriter Placido Domingo CSI Educator Quincy Jones The Sentinel Sons of Anarchy Weeds Dexter ..over 1,000 commercials Latin Music Specialists (LMS) Record label and licensing company Professor of Music Entrepreneurship and Production, Shepherd UniversityThursday, January 17, 13
  60. 60. Daniel Indart Originally from South America After college produced music for Latin pop and advertising markets Developed record label and music licensing arm Expanded to multiple cities Television and film work has led to broader media production and business opportunitiesThursday, January 17, 13
  61. 61. Daniel Indart Vision for music Cross-functional learning education: environment... Multiple career skillsets - Music is one piece of Scriptwriting the larger storytelling Digital animation Web design industry Film productionThursday, January 17, 13
  62. 62. Ken Rosser Freelance guitarist and full-time guitar instructor at GIT (Musicians Institute) in Hollywood who has worked with artists ranging from Smokey Robinson, Todd Rundgren, The Grandmothers, Sussan Deyhim, Samite, Billy Higgins to John Cage and Glenn Branca. I believe the days of the well-rounded freelancer are on the wane and stylistic specialists will be the ones in higher demand in the future. Musicians who can double in software-based skills will have an advantage.   There will always be a demand for someone to play a solo guitar rendition of ‘As Time Goes By’ for your wedding reception but the musician of tomorrow will follow that up with running the DJ/Dance set from their laptop.Thursday, January 17, 13
  63. 63. Find your niche Think like an entrepreneur Develop multiple skillsets & look toward the future Master the rules of the Music Business and most important...Thursday, January 17, 13
  64. 64. Thinking Different(ly) - Creative Music In the Digital Economy Eric Jensen Royal College of Music Stockholm, Sweden January 15, 2013 eric@ewjensen.comThursday, January 17, 13