1. Overture Chapter One

2. Start Thinking... 1. Is the music industry primarily about business or about art? 2. How is the music industry different today from what it was 100 years ago? Fifty years ago? What do you believe brought these changes? Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

3. Chapter Goals Discover that the music business is large, diverse, and ever changing. Become familiar with the historical development of music as a profession. Learn that music today is but one component of the arts, entertainment, and communications industry. Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

4. Music and Society Well over a billion digital music tracks are sold annually in the United States—compared with the 19 million bought as recently as 2003. Some 164 billion songs were streamed just in the United States in 2014. One in five Americans plays a musical instrument. These musicians spend more than $6.8 billion a year on instruments, accessories, and sheet music. Hundreds of thousands of live performances take place annually in the United States—from symphony concerts to clubs. Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

5. Art Versus Commerce Previously  consumer appetite for music and stable business models = fat, happy music industry Now  P2P file sharing + nontraditional and online retail + single track downloads + streaming = uncertainty for the music industry Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

6. Art Versus Commerce Musicians and merchants can be both allies and natural enemies. Artists often want to  break creative boundaries  be heard and appreciated as much as possible  connect with their audience Music merchants often want to  fit the mainstream sales taste  connect with audience’s wallets Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

7. Art Versus Commerce New technology brings many changes:  New business models  New legal conflicts  New licensing opportunities  New definitions of o artist o label o merchant/retailer o music product Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

8. Historical Development Finding a Paying Audience Early music was simply for artists’ pleasure. First Western professional musicians were singers/actors in Greek and Roman theaters. Middle Ages’ religious musicians received no pay. Fifteenth- and 16th-century German guilds improved conditions for musicians. European artists were employed as house musicians. Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

9. Historical Development Finding a Paying Audience Professional status came through the paying audience, especially in Italian and English musical theater and opera. By 1800s, paying to hear a professional was generally accepted. Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

10. Historical Development Finding a Paying Audience Professional musicians resulted in managers or agents.  Mozart’s dad  P. T. Barnum Showbiz atmosphere for popular music developed in the United States.  Minstrel shows  Growing size and affluence of the middle class Music Business Handbook and Career Guide, 10th Ed. © 2013 Sherwood Publishing Partners

11. Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners Historical Development Finding a Paying Audience Big music publishing houses emerged in the late 19th century  Spotted popular hits  Employed in-house composers  After the Ball: First mega-hit in 1892

12. Historical Development Mass Media 1920s: Radio  expanded popularity beyond an elite audience  developed new fans for folk music, country and Western songs, blues, and jazz  publishers fought broadcasting o said it hurt sales of sheet music o initially no income from broadcast performances Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

13. Historical Development Mass Media Sound films usher further development  synchronization rights  musical films become popular genre The Great Depression of 1930s saw  end of million-selling records  sale of sheet music collapse  vaudeville theater attendance drop  radio broadcasting grow Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

14. Historical Development Mass Media Growth of radio  music publishers focused on radio stars  song plugging grew to national enterprise  regional publishing offices closed  big bands became brand names  band singers became popular singers Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

15. Historical Development Mass Media Effects of World War II:  Armed Forces Radio network  By 1940s, American style = world style  Returning GIs bought records  Music product factories reopened  Music industry reaching a mass market  Record companies moving millions of singles Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

16. Historical Development Mass Media Columbia’s long-playing record  12 songs = 600% increase in income  classical records = 10% of market Low-cost tape recorders High-fidelity sound Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

17. Historical Development Mass Media The new music business attracted  new capital  new merchants  new distribution and merchandising methods o rack jobbers  large investments in record production Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

18. Historical Development Mass Media The “money-tree” music industry  the “Big 6”  record labels’ catalogs released on CDs Music TV takes root MP3 format arrives Digital file sharing = mass media controlled by the masses The future? Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners

19. For Further Thought... 1. Musical artists and music merchants are often considered natural enemies, holding different views on what music should be and do, but today, they have to get along. What has forced this accommodation, this working relationship? 2. What influence has technology and communications had on the music industry? Give specific examples. 3. How is the life of an artist different today from what it was in the Middle Ages? What has changed, and what remains the same? Music Business Handbook and Career Guide, 11th Ed. © 2016 Sherwood Publishing Partners