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Howtechnology, deregulationandgreed reshapedmusic andthemusician: 1980-2013.

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Presentation on theme: "Howtechnology, deregulationandgreed reshapedmusic andthemusician: 1980-2013."— Presentation transcript:

1 howtechnology, deregulationandgreed reshapedmusic andthemusician:

2 CD: Compactdisk:

3 COMMERCIALLY1982 CD: Compactdisk:

4 COMMERCIALLY1982 “PERFECT”COPIES CD: Compactdisk:

5 COMMERCIALLY1982 “PERFECT”COPIES DIGITALSPEED CD: Compactdisk:

6 - ALBUMS - ORIGINALLY 22 MINS. PER SIDE (44 MINS. MAX) Pre- CD:

7 - TAPE… Pre- CD:

8 Walkman:

9 IPOD OF IT’S TIME. Walkman:

10 IPOD OF IT’S TIME. - PIRACY Walkman:

11 1983-ish. CD PLAYERS

12 1983-ish. CD WAS PLANNED TO BE THE SUCCESSOR TO THE GRAMOPHONE RECORD CD PLAYERS

13 1983-ish. CD WAS PLANNED TO BE THE SUCCESSOR TO THE GRAMOPHONE RECORD Initially: NOT RECORDABLE CD PLAYERS

14 1990- CD-R Perfect copies of cds. CD PLAYERS

15 1983: reinvigorate record business: CD:

16 1983: reinvigorate record business: - high end audio file recordings CD:

17 1983: reinvigorate record business: - high end audio file recordings - consumers re-purchase back catalogs (beatles, rolling stones, marvin gaye…) CD:

18 1983: reinvigorate record business: - high end audio file recordings - consumers re-purchase back catalogs (beatles, rolling stones, marvin gaye…) - record companies become CATALOG focused. - cost of promoting and signing new acts vs. cost of re-marketing proven catalogue. CD:

19 1983: reinvigorate record business: - high end audio file recordings - consumers re-purchase back catalogs (beatles, rolling stones, marvin gaye…) - record companies become CATALOG focused. - cost of promoting and signing new acts vs. cost of re-marketing proven catalogue. - price DOUBLES cost of albums/cassettes. CD:

20 SYNCLAVIER II IN Sampling:

21 SYNCLAVIER II IN FEATURES: SAMPLING, 64 VOICE POLYPHONY, 32MB OF WAVEFORM RAM (EXPANDABLE TO 768), 32 OUTPUTS, MUSIC-NOTATION PRINTING, MULTITRACK SEQUENCING, AND DIGITAL HARD-DISK RECORDING. Sampling:

22 CHANGES RECORDED POPULAR MUSIC FOREVER. Sampling:

23 CHANGES RECORDED POPULAR MUSIC FOREVER. - ORCHESTRAS Sampling:

24 CHANGES RECORDED POPULAR MUSIC FOREVER. - ORCHESTRAS - STUDIOS Sampling:

25 CHANGES RECORDED POPULAR MUSIC FOREVER. - ORCHESTRAS - STUDIOS - MUSICIANS Sampling:

26 CHANGES RECORDED POPULAR MUSIC FOREVER. - ORCHESTRAS - STUDIOS - MUSICIANS - MUSICIANSHIP Sampling:

27 “borrow” from others.. Sampling:

28 “borrow” from others.. - sounds great! - no need for musicians - no need for studios Sampling:

29 “borrow” from others.. - sounds great! - no need for musicians - no need for studios publishing owned by major labels: - reshuffling of accounting in lawsuits - labels continue to adjust from being record makers into ancillary units Sampling:

30 “borrow” from others.. - sounds great! - no need for musicians - no need for studios publishing owned by major labels: - reshuffling of accounting in lawsuits - labels continue to adjust from being record makers into ancillary units legal departments: - #1 growth industry in the music business Sampling:

31 legaldepartmentsbecome #1growthindustryinthe recordbusiness.

32 1981: changes record business: - additional promotion - visuals vs./in addition to: touring - spawns copycats: - vh1 - tnn - bet MTV:

33 Downloading:

34 Size of the file: - mp3 vs. cd or dvd Downloading:

35 Size of the file: - mp3 vs. cd or dvd changes record business: Downloading:

36 Size of the file: - mp3 vs. cd or dvd changes record business: - unlike advent of cd… downloading is allowed. Downloading:

37 Size of the file: - mp3 vs. cd or dvd changes record business: - unlike advent of cd… downloading is allowed. NO RESPONSE: Downloading:

38 Size of the file: - mp3 vs. cd or dvd changes record business: - unlike advent of cd… downloading is allowed. NO RESPONSE: - mp3 file sharing 1993… - Napster started 1999… Downloading:

39 Size of the file: - mp3 vs. cd or dvd changes record business: - unlike advent of cd… downloading is allowed. NO RESPONSE: - mp3 file sharing 1993… - Napster started 1999… - RIAA first suit: Downloading:

40 fordownloading. FREEMUSICFORALL! recordlabels... NO response…

41 The Telecommunications Act of 1996:

42 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. The Telecommunications Act of 1996:

43 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. The Telecommunications Act of 1996:

44 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN 1,200 STATIONS. The Telecommunications Act of 1996:

45 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN 1,200 STATIONS. - DROP IN THE NUMBER OF MINORITY STATION OWNERS The Telecommunications Act of 1996:

46 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN 1,200 STATIONS. - DROP IN THE NUMBER OF MINORITY STATION OWNERS - HOMOGENIZATION OF PLAY LISTS The Telecommunications Act of 1996:

47 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN 1,200 STATIONS. - DROP IN THE NUMBER OF MINORITY STATION OWNERS - HOMOGENIZATION OF PLAY LISTS - LESS LOCAL NEWS. The Telecommunications Act of 1996:

48 - LIFTED THE LIMIT ON HOW MANY RADIO STATIONS ONE COMPANY CAN OWN. - THE CAP HAD BEEN 40 STATIONS. - CLEAR CHANNEL: MORE THAN 1,200 STATIONS. - DROP IN THE NUMBER OF MINORITY STATION OWNERS - HOMOGENIZATION OF PLAY LISTS - LESS LOCAL NEWS. - MORE DIFFICULT FOR NEW ARTISTS TO GET AIRTIME ON COMMERCIAL RADIO The Telecommunications Act of 1996:

49 FROM THE EARLY 1920S THROUGH THE EARLY 1950S, THE AMERICAN MOTION PICTURE INDUSTRY WAS CONTROLLED BY A FEW COMPANIES. THE MOST POWERFUL OF THESE STUDIOS WERE THE FULLY INTEGRATED BIG FIVE STUDIOS: MGM, WARNER BROTHERS, 20TH CENTURY FOX, PARAMOUNT PICTURES, AND RKO. THESE STUDIOS NOT ONLY PRODUCED AND DISTRIBUTED FILMS, BUT ALSO OPERATED THEIR OWN MOVIE THEATERS. UNIVERSAL STUDIOS, COLUMBIA PICTURES, AND UNITED ARTISTS PRODUCED AND DISTRIBUTED FEATURE FILMS, BUT DID NOT OWN THEIR OWN THEATERS. MediaMonopoly… VerticalIntegration:

50 VERTICAL EXPANSION (BUYING INTO INTEGRATION) CAN BE USED TO INCREASE SCALES AND TO GAIN MARKET POWER. THE ACQUISITION OF DIRECTV BY NEWS CORPORATION IS AN EXAMPLE OF FORWARD VERTICAL EXPANSION. DIRECTV IS A SATELLITE TV COMPANY THROUGH WHICH NEWS CORPORATION CAN DISTRIBUTE MORE OF ITS MEDIA CONTENT: NEWS, MOVIES, AND TELEVISION SHOWS. THE ACQUISITION OF NBC UNIVERSAL BY COMCAST CABLE IS AN EXAMPLE OF BACKWARD VERTICAL INTEGRATION. MediaMonopoly… VerticalIntegration:

51 IN UNITED STATES V. PARAMOUNT PICTURES, INC., THE SUPREME COURT ORDERED THE FIVE VERTICALLY INTEGRATED STUDIOS TO SELL OFF THEIR THEATER CHAINS. MediaMonopoly: VerticalIntegration:

52 APPLE ITUNES: - owns store MediaMonopoly: VerticalIntegration:

53 APPLE ITUNES: - owns store - owns hardware MediaMonopoly: VerticalIntegration:

54 APPLE ITUNES: - owns store - owns hardware - owns software MediaMonopoly: VerticalIntegration:

55 APPLE ITUNES: - owns store - owns hardware - owns software APPLE: DOES NOT MAKE CONTENT. MediaMonopoly: VerticalIntegration:

56 LET’STAKEABREAK.

57 MAKINGARECORD: MusicCommunity:

58 MAKINGARECORD: - artist MusicCommunity:

59 MAKINGARECORD: - artist - songwriter MusicCommunity:

60 MAKINGARECORD: - artist - songwriter - producer MusicCommunity:

61 MAKINGARECORD: - artist - songwriter - producer - engineer MusicCommunity:

62 MAKINGARECORD: - artist - songwriter - producer - engineer - musicians MusicCommunity:

63 PROMOTINGARECORD: - artist. - record company. - promotion team. - radio stations. - video team. - concerts… promotion team, agents, etc. - musicians. MusicCommunity:

64 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars)

65 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars) This amount covered:  Composer’s fee.

66 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars) This amount covered:  Composer’s fee.  Musician’s payments (typically 30 musicians for 1 or 2 sessions).

67 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars) This amount covered:  Composer’s fee.  Musician’s payments (typically 30 musicians for 1 or 2 sessions).  Arranging and orchestration.

68 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars) This amount covered:  Composer’s fee.  Musician’s payments (typically 30 musicians for 1 or 2 sessions).  Arranging and orchestration.  Union benefits, payroll taxes.

69 HistoryofMusicBudgets In 1979 a typical music budget for a 60 minute prime time show was $35,000. ( $104,117 adjusted for today's dollars) This amount covered:  Composer’s fee.  Musician’s payments (typically 30 musicians for 1 or 2 sessions).  Arranging and orchestration.  Union benefits, payroll taxes.  Studio costs.

70 AFMStrike Confluence: -End of studio music departments: -Copying -Orchestration -Studio costs

71 AFMStrike Confluence: -End of studio music departments: -Copying -Orchestration -Studio costs -Rise of technology: -Synthesizers -Home recording -Sampling

72 Badluck.

73 Theartofcomedyis…

74 ttttttt…

75 Timing.

76 AFMStrike

77 AFMstrike technology

78 AFMstrike technology endofsystem (musicdepartments)

79 badluck.

80 timing.

81 income... vultures.

82 ThePackage - Solution to troublesome AFM strike. - Created by agents Mike Gorfaine and Sam Schwartz along with Mike Post. -Undercut AFM Strike. -Reconfigured TV and film music economics.

83 ThePackageDeal Pre-1981: Composers fees were separate line items in budgets from: – musicians fees – conductors – orchestrators – studio costs

84 ThePackageDeal Pre-1981: Composers fees were separate line items in budgets from musicians fees, conductors, orchestrators, etc. Post-1981: Music budget cut by 50%, all expenses paid by composer, whose profit = what is left at the end.

85 ThePackage - Composer is paid a fixed fee for the entire job, including recording expenses. -Package dis-incentivizes composer from working with: -Musicians -Copyists -Contractors -Orchestrators -Recording Studios

86 ThePackage -Born with AFM strike, 1980.

87 ThePackage -Born with AFM strike, Mike Post approach the producers: "Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.”

88 ThePackage -Born with AFM strike, Mike Post approach the producers: "Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” -Post delivered the scores

89 ThePackage -Born with AFM strike, Mike Post approach the producers: "Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” -Post delivered the scores -the AFM strike failed

90 ThePackage -Born with AFM strike, Mike Post approach the producers: "Give me the publishing rights for my music, I'll charge you half of what you now budget for a TV score, and don't ask me how I do it.” -Post delivered the scores -the AFM strike failed -Post became the top earning TV composer of the last 40 years.

91 ThePackage -Born with AFM strike, Makes Composers Independent Contractors/Employers

92 ThePackage -Makes Composers Independent Contractors/Employers

93 ThePackage -Makes Composers Independent Contractors/Employers -Constricts/Eliminates/Limits AFM: -Musicians -Copyists -Contractors -Orchestrators

94 ThePackage -Makes Composers Independent Contractors/Employers -Constricts/Eliminates/Limits AFM: -Musicians -Copyists -Contractors -Orchestrators - Introduces a new way of working:

95 FREE! - composers, with no collective bargaining, and no protection from a union, begin to work as such:

96 FREE! -composers, with no collective bargaining, and no protection from a union, begin to work as such: -Free, unlimited demos… and…

97 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows -Non union buyout of musicians -100% of the publishing -Copyright ownership -Unlimited changes -Contractual clause that prevents budget over runs regardless of what changes are asked for

98 FREE! -Unlimited demo submissions

99 FREE! -Unlimited demo submissions - Free composition

100 FREE! -Unlimited demo submissions - Free composition -Free recording

101 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging

102 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing

103 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing

104 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows

105 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows -Non union buyout of musicians -100% of the publishing

106 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows -Non union buyout of musicians -100% of the publishing -Copyright ownership

107 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows -Non union buyout of musicians -100% of the publishing -Copyright ownership -Unlimited changes

108 FREE! -Unlimited demo submissions - Free composition -Free recording -Free arranging -Free singing -Free lyric writing -Consistently decreasing fees for shows -Non union buyout of musicians -100% of the publishing -Copyright ownership -Unlimited changes -Contractual clause that prevents budget over runs regardless of what changes are asked for

109 TVMUSIC: In 1979 a typical music budget for a 60 minute prime time show was $35,000 ( $104,117 adjusted for inflation )…

110 TVMUSIC: In 1979 a typical music budget for a 60 minute prime time show was $35,000 ( $104,117 adjusted for inflation )… In 2013 a typical music budget for a 60 minute prime time show is… $14,000 - an 87% overall drop.

111 TV:HOURPRIMETIME Writers’ Guild of America minimums: Network Primetime 60 minute script (Courtesy of the WGA) WGA: 129% of 1979 Music: 13% of : $8,655 ($25,347 adjusted for 2011) 2011: $32,700

112 TheEnd -Spotify, Pandora, Youtube… whatever… -Musicians have no leverage -No union -No association with strong unions (WGA, others) -No precedents -No partnership with record labels -Labels remain only entity with real power due to catalogs -Composers, musicians, songwriters, producers, engineers… -NO protection -Who benefits:

113 Lawyers.

114 Howdoesthisgenerationrebuild?


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