Warner's Pays Up

One of the primary operating principles of major labels has always been to get away with as much as possible when it comes to underpaying artist royalties. The idea is something like, "Let's not pay this, and if he ever finds out, he'll have to sue us first. Then maybe we can settle for less that we owe." That's the way it's always worked, and that's why record labels in general have received the reputations they now live with.

Another example of this came to light recently when singer Michael McDonald settled with Warner Bros for deliberately underpaying him on itunes downloads for his Doobie Brothers big hits. He's not the only one though. Artists like Kenny Rogers, Peter Frampton, The Cars and Queen's producer Roy Thomas Baker have all received recent settlements as well.

This particular line of suits came about as a result of the Eminem suit a few years ago, where his production company successfully argued that a download constituted a license and not a sale. As a result, the royalty should be 50% of the sale instead of the normal 12 to 20%.

Even though this might seem like a win, it's never really a total victory with record labels, since you never know for sure what the exact sales of your records are. Sure they send you a statement, but chances are the numbers favor the label and not the artist.

Even in todays online world of vastly improved measurement, it doesn't necessarily mean you're seeing the real numbers. No wonder so many artists would rather go the DIY route.

But let's face it, record labels aren't in the business to make money for their artists. The major labels only care about their shareholders, and well they should, since that's their real business. The real fact of the matter is that they care more about the artist's audience than the artist themselves. Every artist should understand this going into a record deal, and expect that they may have to do what Michael McDonald and all the others did if they have some success. It's just the way the business is.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Consumers More Willing To Pay For Streaming

Streaming music is coming to the forefront of music delivery more and more, and much of that can be attributed to the hype of new services like Apple's iRadio, Google Play and even Beats project "Daisy," but also because subscriptions to both Spotify and Pandora keep rising. The good news for these services is that people in some countries are now more willing to pay for streaming services than they were before.

A new survey sponsored by WiMP found that the percentage of willing payers has risen to 48% from 33% in Norway, 30% from 14% in Denmark, and 28% from 25% in Germany.

On the surface that sounds great for streaming, except for the fact that in Sweden (which has had paid streaming the longest, and streaming accounts for 90% of recorded music revenue), that number has decreased from 36% to 33%.

The Swedish data makes you wonder why it's going in the opposite direction. Are they unhappy with the services they have? Will the trend change with the introduction of new and potentially better services? Is there an issue with the amount being charged?

None of these questions were addressed by the survey, so unfortunately only part of the streaming picture is being painted.

That said, music streaming is now a boulder rolling down a hill that's picking up speed, and music is going to change substantially because of it in the future.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

The Importance Of Social Media Marketing

I"ve been working on a new book called Social Media Promotion For Musicians that shows artists, band and musicians the best way to promote themselves online. This infographic by Emarketed.com is a good example why social media marketing is so important. The numbers are a little dated but the broad scope of the graphics shows that you need to know how to market online with social media, otherwise you're missing a very big opportunity. By the way, Social Media Promotion For Musicians will be out in August.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

10 Tips For Gig Posters That Work

Giant Heads On Posters Work

Ever wonder why some gig posters are works of art, and others are unreadable crap? Here are some design tips from a variety of experts that will help you create something that's clear, creative and attention grabbing.

1. Make sure you can read it. Title text should be no smaller than 48 pt and body text no smaller than 24 pt.

2. Make sure that the most important info is the largest, then work down in size. Make the eye follow it down the page .

3.  Keep the word count low. Posters should be about the basics; who, what, and when. The why usually isn't important unless it's a charity event. Simplicity works best. 

4. Don't be afraid to use uncommon fonts, but not too many. For a gig or concert performance, an unusual font may be totally appropriate where it wouldn't work anywhere else.

5. Use contrast. In order to be readable, stay with black or dark text on a white or light background or vice versa.

6. Use colors that represent your event or your brand, but use color sparingly. Too many colors make a poster not only distracting, but expensive to reproduce.

7. Use high quality images. In order to keep the image sharp, make sure the image is at least 300 dpi. Small or low-resolution images will look blurry and unprofessional.

8. Make sure you have layout symmetry. Negative or white space can be effective, but make sure that there's a balance between halves of the poster.

9. Be sure to include social media and website info, or a QR code. You can't possibly include all the information you want and still make the poster readable, but you can include a way for the reader to get more information.

10. When in doubt, use a giant head! People are attracted to big heads for some reason (see the graphic on the left).

If you'd rather start designing your poster from a template, here's a great site that has a lot to choose from at very reasonable prices.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Why Japan Is Nearly The World's Largest Music Market

A recent report from the IFPI (International Federation of the Phonographic Industry) stated that Japan is poised to become the largest music market in the world. Yes, you read that right. In 2012, Japan was only 1.3% behind the United States in music sales even though it has only 41% of the population.

This seems to be a totally astounding figure, but as usual, the numbers don't tell the entire story. It seems that the Japanese market is a very different animal than the rest of the world. Evolver.fm got to the bottom of the issue by asking Alan Swarts, who's a former VJ for MTV Japan and knows the landscape there very well. Here's why he thinks it's different:

1. Everything is more expensive in Japan. CD's there are about $30 US. 

2. CDs have a fixed price. Unlike everywhere else in the world, music, books, and DVD prices are protected by the government and can't be discounted. 

3. Obsessive collectors inflate the market. As a result, a hit act will usually release multiple packages containing concert DVDs, remixes and outtakes, which makes for stronger sales. 

4. There is no digital piracy. Hard to believe, but illegal downloading almost doesn't exist. Most people buy music from legal sources. Let's chalk that one up to the ingrained ethics of the population. 

5. Digital music is still in its infancy. Even though iTunes exists, it's been somewhat squelched by a very powerful recording industry there. Digital never caught on because the music industry, with the help from the government, never let it.

So there you have it. The music business is growing and thriving in Japan like nowhere else, but this might also be the only place where it can still happen. It will be interesting to see if streaming catches on, as Japanese users completely skip over downloads.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

A Look At Music Sales So Far

At the half-way point in the year, we can look at music sales and wonder where everything is going again. Here are the facts:

• Justin Timberlake's The 20/20 Experience is the years biggest seller, with just over 2 million sales.

• No other album sold more than a million, with Bruno Mars Unorthodox Jukebox at 985,000, Mumford & Sons Babel at 600,000 and Blake Shelton's Based On A True Story at 703,000

• Album sales are down by 5.6% over last year.

This just goes to show that we really do live in a single's world. When the business was at its peak, these would've been poor sales for a week, let alone 6 months. On the singles side:

• Macklemore and Ryan Lewis sold 5.56 million dowloads of "Thrift Shop," which is the fastest selling song for the first 6 months of any calendar year.

• Pink's "Just Give Me A Reason" was second with 3.5 million, Bruno Mars "When I Was Your Man" with 3.4 million, and Rihanna's "Stay" with 3.3 million followed.

• Digital singles are down by 2.3% from last year.

Obviously some big releases by Jay-Z and Kanye West don't figure into the numbers here, so by the end of the year the overall sales performance can look completely different, but so far, sales aren't setting the world on fire.

Could it be the fact that more people are streaming instead of buying? Perhaps the music isn't compelling enough? What do you think?

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

The 6 Types Of Video Marketing

When musicians think of YouTube they naturally think of music videos, but there are actually 6 types of marketing videos, all that can be used by artists and bands. Let's take a look at them:

1. Demonstration videos: This is usually reserved for product demonstrations but an artist can do it as well. Do you endorse a product? Show everyone why it's cool. Have merch to sell? Let the world see why it's different.

2. Training videos: Most brands typically use a training video to show new or potential users how to use their products. Artist's can take a slight left turn by showing how you wrote something, how you performed a particular part, or how it was recorded.

3. Testimonials: People might not believe your marketing but they'll believe someone else, that's why testimonials are so powerful. Ask your fans to send in videos of why they like you, your show, or your music.

4. Leadership: These usually try to show why you're a leader in the industry. In the case of a musician, it could show your technical prowess or unusual gear. For an artist or band, you could show how great your show is.

5. Teaser videos: Artist occasionally use this now, most recently Daft Punk and Jay-Z, who both teased their new albums with videos of various lengths. Can you do the same about your upcoming music or merch?

6. Storytelling: This is the typical music video, where the story of the song is acted out in the video. It could also be a behind the scenes "making of" which tells the story of the creation of the album or video.

Can you use more than one type of these marketing videos? You can see more on video marketing here.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

How Artists Get Paid

If you ever wondered how an artist gets paid from an online sale or broadcast, here's a great infographic from the Future Of Music Coalition that shows just about every scenario.

The thing to watch is how many steps in each case that it takes for the royalty payout to make it back to the artist or songwriter.

What might not be obvious on the chart is that anything in red has to do with the copyright of the song, and anything in yellow is the sound recording.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

How People Tweet

Here's an interesting infographic that shows the tools people use to tweet. As you can see, the majority use Twitter.com, but if you read the fine print at the bottom you'll see that those who use Tweetdeck are much more active, sending twice as many tweets, have more followers and following others more. The other thing that's interesting is that 1/4 of all people signed up to Twitter actually use it during a typical day.

How People Tweet infographic by TheNextWeb.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

10 Factors That Make Videos Go Viral

We'd all like to have our video go viral, but as everyone knows, it's a lot harder to make that happen than that seems. There's so much luck involved in the process that it's difficult to actually pinpoint why it ever happens at all. That said, Online Video Insider came up with a fine list of factors that make a video go viral on YouTube or any other online video portal.

1. It has to be authentic. Things that are staged don't usually go viral.

2. It can't easily be reproduced. Uniqueness has a lot to do with virility.

3. It's odd. Something far out of the ordinary could catch on.

4. It's humorous. We all love to laugh, and videos that makes us do that have a better chance of spreading.

5. It's the music. Something what's unique or special about a musical piece can help it go viral.

6. There's something surprising. The unexpected result in a video makes us want to share.

7. There's something super impressive. Feats that are far beyond normal have a good chance to go viral.

8. It's a parody of something. Or better still, if something in your video can be parodied or copied.

9. It's painful or embarrassing. It's human nature to revel in someone else's pain or embarrassment, but take care not to intentionally hurt or embarrass someone else.

10. It's timely to the culture of today. This can be fleeting as pop culture constantly changes.

While any one of these things can be enough to make a video go viral, combine several of them and you may have a winner.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Crowdfunding Without A Fan Base

Crowdfunding for music projects has proved to be very successful, with just over 50% of campaigns being fully funded. In most of these cases, the key to success is all in how large of a fan base you have. Usually big fan base = successful campaign.

But what if you don't have a large fan base, or any at all if you're just starting out? Here are 5 tips that you can use that have been proven to work.

1. Make sure you contact every person you know. Most small crowdfunding efforts are successful because of friends that invest in you as a person instead of the project. Therefore, you have a better chance of success if you reach out to everyone who knows you.

2. Set a reasonable goal. The most successful campaigns of this type are usually in the $5,000 to $10,000 range.

3. Use flex goals. You might have a wealthy benefactor who's willing to contribute more to your campaign than $5k, so it's best to have multiple goals so you don't limit your fundraising possibilities. Just make sure that the lowest goal is easily obtainable.

4. Have a short campaign. A short campaign of 5 to 10 days usually works better than 30 days, since the there's usually a long lull in contributions in the middle two weeks of the longer campaign.

5. Have regular communications. Continue to communicate with your potential contributors during the campaign, even if it feels like too much.

Crowdfunding without the crowd is not only possible, but is likely to be successful if you follow these tips. Good luck!

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

iRadio's Interesting Royalty Rates

With Apple's new iRadio launch on the immediate horizon, everyone is interested in the royalty rates that it will be paying. Last week details of Apple's indie deals began to leak out, and they're pretty interesting, not only because of the rates they're paying, but because of what they won't be paying on as well. Here's what we've learned:

• The first year, Apple will pay $.0013 "per royalty bearing performance" (that's the key) plus 15% of net advertising revenue.

• That increases to $.0014 and 19% the second year.

• These rates are roughly comparable with what they're paying the majors, although slightly lower.

• It's more than from Pandora though, which pays $.0012 and no advertising.

But there's a catch. Apple drives a hard bargain, and there are some additional terms on what it will not pay on.

• Apple won't pay royalties on any streams during the initial 120 day beta period

• It won't pay on any "Complete My Albums" plays.

• It doesn't have to pay on up to 2 songs per hour if the tracks already appear in the listener's cloud collection.

• It may or may not pay on any Heat Seeker promotion at its discretion.

To be honest, these limitations don't feel unfair, since the company wants to ensure that the service gets off the ground by not paying during beta and paying a reduced rate during the first year. Regardless of these limitations, iRadio still looks like a better deal for the artist than Pandora even during the first year.

----------------------------------

Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

Follow me on Forbes for some insights on the new music business.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.