pmbc making money making music

16
Making Money Making Music Pacific Music Business Camp July 2013 Presented by Keith Hatschek & Dana Myers

Upload: keith-hatschek

Post on 24-Apr-2015

186 views

Category:

Entertainment & Humor


4 download

DESCRIPTION

This is an overview from the Pacific Music Business Camp kickoff class that introduced students to some of the fundamental players, concepts and conventions within the music business.

TRANSCRIPT

Page 1: PMBC Making Money Making Music

Making Money Making Music

Pacific Music Business CampJuly 2013

Presented by Keith Hatschek & Dana Myers

Page 2: PMBC Making Money Making Music

Who’s Who?

Dana Myers – entertainment lawyer and criminal attorney, music manager, Pacific alumni

Keith Hatschek – program director, author, producer, engineer, musician

Page 3: PMBC Making Money Making Music

What’s Wrong with This Graphic?

Source: Nielsen/ Soundscan

Page 4: PMBC Making Money Making Music

Out with the Old, In with the New

Traditional record sales are only a small part of overall MUSIC industry today

Some artists, songwriters, managers, concert promoters are all still making money – how?

Success no longer requires major corporate backing But it can be a useful add-on if done

strategically (Examples: Macklemore & Death Cab)

Page 5: PMBC Making Money Making Music

Why Clout Matters

What is clout?

Who has it?

Who doesn’t

How to get it

What it will allow you to do

Page 6: PMBC Making Money Making Music

New Models/Metrics

Amanda Palmer – Kickstarter

Jay-Z + Samsung – Instant Platinum

Justin Bieber – Beliebers “fanatic fans”

Page 7: PMBC Making Money Making Music

Sources of Income Live shows

Have a Billboard – BoxScore data

Recorded music

Merch

Other

Page 8: PMBC Making Money Making Music

Where Does the $$ Go?

Solo artist, house concert, no band, use your parent’s car – you keep 100%

That is not the norm!

Expense areas Manager Venue share Agent Attorney Sound & Lights Roadies Food, instruments, insurance, marketing, promotion,

videos, etc. What else can you think of?

Page 9: PMBC Making Money Making Music

Gross vs. Net

Total revenue from a gig, album, tour, or other event is called the “gross” earnings

What the artist puts in her/his pocket after all expenses have been paid is the “net”

Many artists have earned millions and been forced into bankruptcy due to poor management, under what conditions artists are eventually paid

Never be afraid to ask, “What do you expect I will net from this opportunity?”

Page 10: PMBC Making Money Making Music

Live Revenue Splits

Bruno Mars - $65 ticket Venue/Promoter = 38% ($24.70) Artist = 34% ($22.10) Ticketmaster = 10% ($6.50) Facility fee = 8% ($5.20) Opening act = 7% ($4.55) Taxes = 3% ($1.95)

Page 11: PMBC Making Money Making Music

CD Sales Split – Traditional retail

J. Cole Born Sinner - #1 on Billboard 200 this week SRLP $16.98 (consumer pays) Published Price to Dealers $12.05 (Target

pays) Price paid by Distributor $8.45 (UMGD pays) Label pays out

$1.25 to artist $1.00 to songwriters Rest goes to pay off album’s cost

to produce and market (aka “recoupment”)

Page 12: PMBC Making Money Making Music

Merch Madness

Survey of class – how much does stuff cost?

$__ is a great price on a concert tee!

Revenue split Sales tax withheld Venue share (for allowing you to sell it) Merch share (for bankrolling your inventory) Artist share – what you get to keep (minus

your merch table staff payroll)

Page 13: PMBC Making Money Making Music

Forbes 2012 Top Earners

Dr. Dre $110MM

Roger Waters $88MM

Elton John $80MM

U2 $78MM

Take That $61MM

Bon Jovi $60MM

Britney Spears $58MM

Paul McCartney $57MM

Taylor Swift $57MM

Justin Bieber $55MM

Toby Keith $55MM

What does this mean to You?

Page 14: PMBC Making Money Making Music

DIY Artist Model

Do-It-Yourself (DIY) Artists take control of their own careers

This means: Creative control Learning the business aspects Building relationships Learning by doing! (Make that CD, book a

show, hand paint your t-shirts, make your EPK, etc.)

Page 15: PMBC Making Money Making Music

DIY Benefits

You’re the boss!

You learn what works and why

What doesn’t work and how to improve

You keep any earnings (but need to reinvest)

Fun, rewarding, empowering

Page 16: PMBC Making Money Making Music

Music Biz Camp Goals

This week you will study and learn: Production techniques Concert production and marketing Social Media for artists PR and Marketing Copyrights and “Wrongs” – protect your music Live Sound Careers in the Music Industry

. . . And make new friends while having fun!