Monday 8th
November
How much is music worth?
L.O. To assess the value of music and the impact of
file sharing on the busin...
L.O. To assess the value of music and the impact of file sharing on the business.
Say a CD is sold in HMV for £10.
How do ...
How is this money is split between:
Part of process % or £
Artist Record Royalties – 13-20% depending on the
artist. After...
What arguments are raised in these articles on
the cost of music?
How do artists make other money?
• Broadcast Royalties – a doctors surgery will pay
£50 per year for having a radio playin...
What is Convergence?
Convergence is where record labels profit from
exposing songs or artists in different outlets e.g.
• ...
How has digital music impacted on the ‘cost’ of
music?
• What corners can be cut?
• What other costs are incurred?
How much do dealer’s pay for music?
Downloads dealer pays £4.55
retailed at £7.99
potential retailer ‘profit’ - £3.44
CDs ...
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Lesson 7 cost_of_music1

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Lesson 7 cost_of_music1

  1. 1. Monday 8th November How much is music worth? L.O. To assess the value of music and the impact of file sharing on the business. What process needs to happen before a CD is released onto the shelf? What stakeholders are involved? What do you think is a reasonable amount to pay for music? How would you divide this money up between the stakeholders you’ve outlined above?
  2. 2. L.O. To assess the value of music and the impact of file sharing on the business. Say a CD is sold in HMV for £10. How do you think this money is split between: Part of process % or £ Artist Songwriter Record Label Packaging Shop (i.e. HMV)
  3. 3. How is this money is split between: Part of process % or £ Artist Record Royalties – 13-20% depending on the artist. After deductions (see below) this amounts to £1-2 depending on the contract. Songwriter Mechanical Royalties - 8.5% / 85p per album (if they’ve written all the songs on the album). They may also have a 70/30 split with their publisher. Producer 6% of Record Royalties (from the artist). Record Label 35% (roughly) What overheads do they have? Packaging 25% of Record Royalties (from the artist). Shop (i.e. HMV) 40% (roughly) What overheads do they have?
  4. 4. What arguments are raised in these articles on the cost of music?
  5. 5. How do artists make other money? • Broadcast Royalties – a doctors surgery will pay £50 per year for having a radio playing whereas the BBC pays according to its audience size. These royalties are paid for the lifetime of the artist and seventy years beyond. When an artist performs live the songwriter is entitled to 3.5% of the ticket sale revenue. • Airplay Royalties – applies for 50 years after release date of song and is measured on area of shop, seats in a restaurant, advertising revenue etc. This is split 50/50 between record companies and performers.
  6. 6. What is Convergence? Convergence is where record labels profit from exposing songs or artists in different outlets e.g. • Royalties from their music playing on films and adverts • Artist deals with brands • Appearances on TV • Gigs/tour • Merchandise Read summer festivals article
  7. 7. How has digital music impacted on the ‘cost’ of music? • What corners can be cut? • What other costs are incurred?
  8. 8. How much do dealer’s pay for music? Downloads dealer pays £4.55 retailed at £7.99 potential retailer ‘profit’ - £3.44 CDs dealer pays £6.42 retailed at £8.99 potential retailer ‘profit’ - £2.57 • What about retailers that sell the albums for less than this?
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