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1 CMU:DIY

2 mynameischriscooke.com

3 FOUNDER + MD > CMU CMUinsights.com/sony-introtomusicindustry

4 + > CMU NAVIGATE FOUNDER UNDERSTAND MD THE MUSIC BUSINESS CMUinsights.com/sony-introtomusicindustry

5 MEDIA SETLIST TRENDS LIBRARY CMU DAILY CMUinsights.com/sony-introtomusicindustry CMUsignup.com

6 CONSULTANCY TRAINING COURSES CONFERENCE SESSIONS RESEARCH REPORTS CMUinsights.com CMUinsights.com/sony-introtomusicindustry

7 EDUCATION EVENTS WORKSHOPS LECTURES CMUinsights.com/sony-introtomusicindustry CMUdiy.com

8 completemusicupdate.com

9 MAKING MONEY FROM MUSIC

10 WHY MAKE MONEY FROM MUSIC? Why do we need to make money out of music at all? If artists want to work on their music full time, and to develop and distribute their work widely they need money to pay for Living costs. Touring. Producers, engineers, songwriters etc. The creation and distribution of recordings. Marketing and PR. Someone to manage all this activity.

11 HOW DO YOU MAKE MONEY FROM MUSIC? INTELLECTUAL PROPERTY LIVE PERFORMANCE FAN RELATIONSHIP

12 HOW DO YOU MAKE MONEY FROM MUSIC? INTELLECTUAL PROPERTY LIVE PERFORMANCE FAN RELATIONSHIP

13 MAKING MONEY FROM MUSIC RIGHTS Musical Compositions Lyrics PUBLISHING RIGHTS Sound Recordings Music videos MASTER RIGHTS Artwork Photography ARTISTIC RIGHTS Band Name Band Logo TRADEMARKS

14 MAKING MONEY FROM MUSIC RIGHTS SONGS RECORDS Musical Compositions Lyrics PUBLISHING RIGHTS Sound Recordings Music videos MASTER RIGHTS MERCH Artwork Photography ARTISTIC RIGHTS Band Name Band Logo TRADEMARKS MERCH & BRAND EXTENSIONS

15 COPYRIGHT FACTS Copyright is a form of intellectual property. Copyright, Designs & Patents Act Copyrights are automatic. By default the copyright belongs to Creator (compositions, lyrics, artwork, photography). Funder (sound recordings). Copyrights run out eventually Life of creator +70 yrs (compositions, lyrics, artwork etc). 70 years after release (sound recordings).

16 COPYRIGHT CONTROLS Copyright law gives the copyright owner certain controls over their works, including: REPRODUCTION DISTRIBUTION RENTAL ADAPTATION PERFORMANCE COMMUNICATION

17 MAKING MONEY FROM MUSIC RIGHTS Someone wants a copy of one of your recordings Make a copy and sell it them CD/VINYL Give them permission to copy it for a fee DOWNLOAD YOU VE MADE MONEY FROM YOUR COPYRIGHT!

18 MAKING MONEY FROM MUSIC RIGHTS Someone wants to perform your song in public Sing it on stage Play it on radio Play it at club Give them permission to perform your song for a fee YOU VE MADE MONEY FROM YOUR COPYRIGHT!

19 MAKING MONEY FROM MUSIC RIGHTS Someone wants to make an adaptation of your song Remix it Sample it Rework it Give them permission to make an adaptation for a fee YOU VE MADE MONEY FROM YOUR COPYRIGHT!

20 LICENSING GIVING PERMISSION = LICENSING LICENSE DIRECT Sync deals (maybe) LICENSE VIA THIRD PARTY Getting content into itunes and Spotify via a distributor (maybe) LICENSE VIA COLLECTING SOCIETY Live Performance Cover Versions Broadcast Bars, cafes, shops (usually)

21 COLLECTING SOCIETIES The UK collecting societies are PRS For Music for publishing rights so composers, songwriters, publishers prsformusic.com PPL for master rights so recording artists, producers, labels ppluk.com

22 HOW DO YOU MAKE MONEY FROM MUSIC? INTELLECTUAL PROPERTY LIVE PERFORMANCE FAN RELATIONSHIP

23 MAKING MONEY FROM LIVE PERFORMANCE TICKETS FOOD & DRINK OTHER SERVICES SPONSORSHIP

24 THE LIVE MUSIC HIERARCHY An artist s live career goes through various stages It only becomes profitable for the artist around theatre level. At grass roots the main income actually comes from copyright. Self-promoted gigs, open mic nights Gig & club-nights, festival new band stages Pub/club venue touring, small festival stages Theatre venue touring, bigger festival stages Arena touring, festival headline slots Stadium touring

25 HOW DO YOU MAKE MONEY FROM MUSIC? INTELLECTUAL PROPERTY LIVE PERFORMANCE FAN RELATIONSHIP

26 MAKING MONEY FROM THE FAN RELATIONSHIP you + your music + your shows Recordings Premium Products Merch SELL THEM STUFF! VIP Experiences your fanbase Tickets Subscriptions

27 THE DIRECT-TO-FAN RELATIONSHIP Digital channels mean artists now have a direct-to-fan connection. Once a fanbase has been built revenue can be generated by providing this audience with products and services. Maybe traditional products: ie records, tickets, t-shirts. But other products and services can be developed according to the interests and passions of the specific fanbase. Brands may also pay to access this direct-to-fan audience. This was a traditionally an under-tapped revenue stream.

28 MEET THE MUSIC INDUSTRY

29 MEET THE MUSIC BUSINESS The music industry consists of companies and individuals who work with artists to help them turn what they do into money. Most music companies specialise in one music revenue stream. This means the wider industry can be split up, commonly Those which work in music rights v those that work in live. Those which exploit recording rights v those which exploit song rights. Artists usually have relationships with multiple companies, doing a different deal for each of their revenue streams.

30 MEET THE MUSIC BUSINESS THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser LIVE INDUSTRY Booking Agent Promoter Ticket Agent FAN BUSINESS Direct To Fan Brand Agency

31 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Label exploits sound recording rights. Creates and distributes recorded content. Works with studios, producers etc. Traditionally leads on artist marketing.

32 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Publisher exploits song rights. Handles licensing of songs and royalties. May seek sync deals/song commissions. Traditionally published sheet music.

33 THE MUSIC RIGHTS INDUSTRY THE MUSIC INDUSTRY MUSIC RIGHTS Record Label Music Publisher Merchandiser Production of merchandise. Sales and distribution of products. Maybe license artwork to third parties. License trademark for product extensions.

34 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Stages the gigs, tours, festivals. Hires event production staff. Booking Agent Promoter Ticket Agent

35 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Booking Agent Promoter Ticket Agent Sits between artists and promoter. Negotiates deals.

36 THE LIVE INDUSTRY THE MUSIC INDUSTRY LIVE INDUSTRY Booking Agent Sells tickets. May also provide cash flow. Promoter Ticket Agent

37 THE FAN BUSINESS THE MUSIC INDUSTRY FAN BUSINESS Newest part of the industry. May provide online platform for capturing, analysing and selling to fans. Also need people to manage all this. Direct To Fan Brand Agency

38 THE FAN BUSINESS THE MUSIC INDUSTRY FAN BUSINESS These agencies negotiate and manage brand partnerships for artists. Labels and promoters also operating in this domain. Direct To Fan Brand Agency

39 THE IMPORTANCE OF ARTIST MANAGEMENT THE MUSIC INDUSTRY MANAGEMENT (+ lawyer and accountant) MUSIC RIGHTS Record Label Music Publisher Merchandiser LIVE INDUSTRY Booking Agent Promoter Ticket Agent FAN BUSINESS Direct To Fan Brand Agency

40 CHALLENGES & OPPORTUNITIES

41 CHALLENGES & OPPORTUNITIES Adapting to the new streaming model. Sharing the digital pie. Restricting secondary ticketing. Accessing and utilising fan data. Futher monetising the fan relationship.

42 ADAPTING TO THE NEW STREAMING MODEL It s now all about SUSTAINED LISTENING and REPEAT MICROPAYMENTS. SALE DIGITAL DOLLAR ACHIEVED ON DAY ONE STREAM DIGITAL DOLLAR ACHIEVED ON DAY????? You need to persuade people to keep re-playing your music. What impact does this have to music marketing and fan communication?

43 SHARING THE DIGITAL PIE STREAMING SERVICE CONTENT ROYALTIES DATA INVOICE ROYALTIES RECORD LABEL/DISTRIBUTOR PUBLISHER/CMO RECORDING RIGHTS PUBLISHING RIGHTS ARTIST

44 RESTRICTING SECONDARY TICKETING AUTOMATED MASS PURCHASE MANUAL MASS PURCHASE ACCESS TO B2B TICKET SCHEME PROMOTER PROVIDES TICKETS TICKET TOUT RESALE PLATFORM BUYER

45 ACCESSING AND UTILISING FAN DATA STREAMING DATA LABEL MANAGER AGENT PROMOTER LABEL MANAGER AGENT PROMOTER TICKETING DATA

46 FURTHER MONETISING THE FAN RELATIONSHIP BUILD FANBASE gigging, social, media & marketing, content UNDERSTAND FANBASE social, analytics, interact, pre-orders SELL downloads, tickets, merch, subscription services, VIP What else can you sell and how will you sell it?

47 CMU:DIY

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