Contemporary Chamber Ensemble

Transcription

1 Contemporary Chamber Ensemble The following is the breakdown of revenue for a Contemporary Chamber Ensemble, which performs classical, contemporary and crossover jazz works, and records and tours internationally. The ensemble primarily performs and records works that were written by other composers. Sometimes they commission composers to write specific pieces for the ensemble, while other times ensemble members will arrange works for the group to play. When the ensemble tours they typically play concert halls, museums, churches, music festivals and universities in the US and around the world. They often add a special educational performance for young audiences or schools or special coaching for student ensembles to a concert date, and have developed an educational curriculum. The ensemble has released six records, and the members have also recorded occasionally as guest artists on other artists records. All of the members have formal conservatory training. Their team includes a manager who also books their tours for them and a freelance publicist, and they have a multi-year relationship with an independent record label. The ensemble is an LLC business partnership. PRIMARY GENRE Classical SECONDARY GENRES New Music Contemporary Jazz ROLES Performer Sideman/Session Work YEARS ACTIVE 1997 present TIME SPENT ON MUSIC 100% INCOME DERIVED FROM MUSIC 100% This case study focuses on the income and the expenses of the ensemble, as opposed to the financial picture of its individual members. While each member benefits equally from the ensemble s work via profit sharing, individuals may be supplementing their ensemble income with teaching or session work.

2 Gross Revenue This section reviews the overall gross revenue numbers for for the Ensemble. Gross Revenue, Live Performance 95.4% CD Sales on Road 2.4% Teaching 1.7% Session Work 0.4% Record Royalty 0.1% In the period , nearly all of the Ensemble s income (95.4%) comes from live performance fees, with 2.4% attributed to selling CDs on tour. Starting in 2005, the Ensemble began a relationship with a large independent label and released five records from Record royalties total just 0.1% of their income during this period, while recording fees for appearing as a guest ensemble on someone else s record account for 0.4%. In 2010, the Ensemble began formally coaching student chamber music ensembles in an educational partnership with a conservatory, and the teaching income from that year comes from that partnership. In the next section, we look at gross revenue by year. Graphs do not have a Y-axis dollar value in order to observe the conditions of our privacy policy. In addition, graphs and visuals in case studies are not comparable within or between case studies. Information detailed in case studies is based on data received directly from the artist or their authorized representative. The data analysis and lessons learned here are based on individual experience, and do not necessarily reflect the experiences of all musicians in genre or roles. Case studies are one of three ways this project is looking at musician income. Learn about methodology at money.futureofmusic.org. 2

3 Gross Revenue: 2002, 2003, 2004 In this period, 100% of the ensemble s income came from live performance fees. The ensemble began working with a booking agent in 2003, and found professional management in 2004, which took over the booking agent and management role. Gross Revenue, 2005 In 2005, the Ensemble toured the US. Their first release with the large independent label did very well, garnering a nomination for a presitigous industry award. Revenue Category 2005 Details Live Performance 96.8% Fees for live performance CD Sales on the Road 3.2% Gross Revenue, 2006 In 2006, the Ensemble toured throughout the US and released their second album on the large independent label. Revenue Category 2006 Details Live Performance 96.7% Fees for live performance CD Sales on the Road 3.3% 3

4 Gross Revenue, 2007 In 2007, the Ensemble toured primarily in the United States, with a tour in Europe, and dates in Canada and Mexico. They released their third record on the large independent label, and also appeared as a guest artist on another artist s record. They received their first royalty statements from their primary record label, which paid out royalties for their first two records. Revenue Category 2007 Details Live Performance 95.9% Fees for live performance CD Sales on the Road 2.2% Session Work 1.3% Income earned from studio session work Record Royalty 0.6% Sales royalties Gross Revenue, 2008 In 2008, the Ensemble toured throughout the US and Europe. They released their fourth record on the large independent label, and also appeared as a guest on another artist s record that was released in Revenue Category 2008 Details Live Performance 95.8% Fees for live performance CD Sales on the Road 2.4% Session Work 1.8% Income earned from studio session work 4

5 Gross Revenue, 2009 In 2009, the Ensemble toured the US, and had dates in Europe and Mexico. They received record royalties for their first four records. Revenue Category 2009 Details Live Performance 96.6% Fees for live performance CD Sales on the Road 3.0% Record Royalty 0.4% Sales royalties Gross Revenue, 2010 In 2010, the Ensemble toured the US, and had dates in Canada. They expanded the educational work they do with student chamber ensembles, and formed a partnership with a conservatory to coach young musicians. Revenue Category 2010 Details Live Performance 84.9% Fees for live performance Teaching 12.5% CD Sales on the Road 2.6% Record Royalty 0.02% Sales royalties 5

6 Income v Expenses The pie charts below show aggregate gross income, and the related expenses, for Gross Income, Gross Expenses, Manager Commission Touring Expenses Artist Fees Publicity Teaching-Related Marketing Merchandise Taxes Accounting Production The pie chart for expenses has been scaled to visually represent that expenses consume about 51% of gross income. The table below provides details about the expenses Expense Category Details Manager Commission 30.3% Commission paid to manager, who primarily secures and negotiates concert dates Touring Expenses 26.8% Transportation, hotel, per diem, etc. Artist Fees 17.0% Artist fees paid to guest artists or subs, make up artist, videographer, choreographer, stage manager, rehearsal pianist, wardrobe etc. Publicity 10.8% Publicist for live engagements Teaching-Related 3.4% Costs related to educational partnership with a conservatory in 2010 Marketing 2.8% Flyers, conference fees, website Merchandise 2.5% The ensemble purchases their CDs at cost from the label to sell on the road Taxes Paid 1.7% Accounting and Finance 1.3% Production 1.2% Concert dress, rehearsal space, sheet music, hospitality Composer Commissions Paid 0.5% Commissions paid to composers to write new works for Ensemble D to perform and record. 6

7 Expense Category Details Venue Commission on Merchandise 0.5% Each venue they perform typically takes a commission on CDs sold at shows Administrative and Overhead 0.5% Postage 0.4% Legal 0.2% The chart below shows income versus expenses on a year to year basis. The grey line indicates net income, which fluctuates from year to year but has steadily increased overall. Income v Expenses and Net, Teaching Record Royalty Session Work CD Sales on the Road Live Performance Touring Expenses Teaching Expenses Merch Expenses Overhead Production Expenses The column graph above indicates that the ensemble s income is net positive from year to year. The Ensemble released records in 2005, 2006, 2007, 2008 and These expenses are not included on these charts because the record label covered the expenses of the recording. With touring, the Ensemble assumes all of the risk and covers all their tour-related expenses, but the reward is exponentially higher. They have earned a modest record royalty from their catalogue of releases. Most of the financial benefit related to recording comes from CD sales on the road, which are bought at cost from their label and sold at a higher price, minus the venue commission, at 7

8 the shows. While album sales themselves are not a significant source of income from year to year, recording regularly is a way for the Ensemble to stay relevant in the eyes of the public and presenters. Albums also provide additional marketing around their tours, and are an opportunity for radio airplay. Reflections on the Chamber Music Landscape While this Ensemble s financial picture is unique, there are a number of findings that help us understand the landscape for chamber music groups and classical performers. First, the environment for classical players is extremely competitive. This Contemporary Chamber Ensemble operates in the same general landscape as the Professional Orchestral Player. Thousands of highly skilled players graduate from conservatories and music schools every year. Many of them teach, pick up freelance work, and hope to secure a position in an established ensemble or orchestra. A few try to build solo careers, or break through with a new ensemble. While the rewards can be great for those who succeed as performers a comfortable middle-class life the environment is extremely competitive. The fact that this chamber music group has succeeded in such a demanding marketplace is a testament not only to their skills as performers, but also the efforts of their management and record label to promote their work. Second, there are a handful of key decision makers that can make or break a classical ensemble s career. Most of them are curators or presenters. These are the people who book concert halls, theaters and festivals, and curate subscription series that present a carefully chosen array of concert music experiences for discriminating audiences. Even for the largest presenters, unless they exclusively focus on classical chamber music, there will only be one or two slots allotted for chamber ensembles on their season s schedule. But, as we see above, payment for performances is the core revenue stream for this ensemble, and others like it. Ensembles who are lucky enough to obtain professional management will usually focus exclusively on influencing presenters and obtaining engagements on various concert series and festivals in the US and abroad. Recordings are not considered a source of income, but as a marketing tool to keep the artists in the minds of presenters. Recordings play an interesting role in classical music. First, it s a more straightforward process. Classical performers generally don t write their own material, so they don t need to spend weeks and months rehearsing or writing new pieces for a recording session. They are all such skilled players that a recording session is almost 8

9 perfunctory. Second, unlike rock or pop bands, classical ensembles don t tour the album. Whereas a band might write and record a record one year and then tour on that record for months, the album cycle has less of an impact on the touring schedule for classical players. Third, the potential financial return on a recording is limited. A successful classical record today might sell a few thousand copies, maybe 10,000 or 20,000 if it s very well received, so income from traditional sales will be limited. In fact, for most artists, income from sales of CDs at their own shows exceeds sales royalties paid by a label. But, for chamber music groups, low sales are not a reason to quit recording. For chamber music groups, CDs are marketing tools that keep them on presenters radars. Teaching and mentoring is built into the fabric of classical music, and is considered by many artists to be part of a successful musician s contribution to the field. The case study notes that, in 2010, the Ensemble took on a new teaching role, formalizing some mentoring and educational work they had undertaken in previous years. But why would a busy ensemble carve time out of its tour schedule to teach? Teaching has a special role in classical music. Every classical artist even the most successful ones has taught. Some have teaching positions at conservatories or music schools, or give private lessons. Others conduct prestigious master classes. Most concert presenters ask classical artists to take time to do an educational activity in addition to the concert performance date. And, many music festivals have a mentoring or coaching program for younger artists and ensembles to learn from older more experienced and established artists and ensembles. The Ensemble s formalization of an educational curriculum marks their contribution to the field. While they earn some money from the endeavor, it also reflects a tradition in the classical world of established artists giving back to develop future players. This case study of a Contemporary Chamber Ensemble provides a glimpse into this world one where highly skilled performers compete for a relative handful of performance opportunities, and where sound recordings and past performances are used to influence powerful presenters. Lacking composition income and merchandise sales, their income is remarkably dependent on live performance fees. This is a difficult world to navigate, and one in which the economic pressures and competition never cease. By being highly skilled and strategic, this chamber music group is successfully carving out a livelihood. 9