Lecture Notes - Class 3; Music Business Actors 1 PDF

Copyright Disclaimer The course content provided, including lecture notes, slides, and any supplementary materials, is made available exclusively to students enrolled in the Business of Music 1 course, as o8ered by The Creative School at Toronto Metropolitan University. All materials, including the slides and lecture notes in their entirety, are protected by copyright law and are the exclusive intellectual property of Marc Ouellette © 2024. These materials are provided solely to facilitate learning within the context of this course and may not be reproduced, distributed, or shared with any third party under any circumstances without the express written consent of the copyright owner. Music Business Actors 1 COMPOSERS AND LYRICISTS __________________________________________________ Who are they? Composers Composers are individuals that create the music of a work, either alone or as part of a team of composers. They can be freelancers with or without incorporations, under contract with a media company or other speciﬁc institution. ______________________________________ Lyricists Lyricists are individuals that create the lyrics of a sung work, either alone or as part of a team of lyricists. They can be freelancers with or without incorporations, under contract with a publisher, record label, media company or other speciﬁc institution. __________________________________________________ What is their role? Composers use music to create Dramatic works (Musical/Opera/Circus/Ballet) Non-dramatic works (Concert/Media/Multimedia) Depending on the project, their tasks can vary: For concert music Composers write scores for live performances by musicians, focusing on artistic expression. For media (ﬁlm, TV, games) They often collaborate with directors, producers, or game developers to create music that supports the storytelling or gaming experience, enhancing the atmosphere, emotions, and pacing of the content. For theater or musicals Composers create music that complements the dramatic narrative, working closely with playwrights, lyricists, and choreographers. For advertising or branding They produce catchy, concise music that aligns with brand identity or a speciﬁc message. ______________________________________ Lyricists use words to create Narratives and Lyrics of sung dramatic or non-dramatic works Their responsibilities can include: Crafting themes and narratives Lyricists develop the central theme or storyline of a song, whether it’s about love, personal struggles, social issues, or abstract ideas. In a musical or ﬁlm context, they create lyrics that advance the plot and reﬂect the emotions of the characters. Matching lyrics to music They often work closely with composers or producers to ensure that the lyrics ﬁt the melody, rhythm, and overall musical structure. This requires a deep understanding of meter, phrasing, and rhyme schemes. Collaborating with artists Lyricists frequently collaborate with singers, songwriters, composers, and producers to tailor the lyrics to an artist’s vocal style, genre, and public persona. Adapting to media formats In ﬁlm, television, or advertising, lyricists must adapt their writing to ﬁt the speciﬁc needs of the project, whether it’s creating catchy, memorable hooks or writing more intricate, story-driven lyrics. Revising and editing Lyricists often go through several rounds of revisions, responding to feedback from the composer, producer, or performer to reﬁne the lyrics and ensure they resonate with the intended audience. __________________________________________________ How are they compensated? Commission Fees When composers are hired to write a speciﬁc piece of music, such as a symphony or a soundtrack, they receive a commission fee. This is a one-time payment negotiated before the work begins. In some cases, lyricists are commissioned to write lyrics for speciﬁc projects, such as musicals, ﬁlms, or advertising campaigns but rarely for writing lyrics to songs. These commissions provide an upfront payment for their work, often with the possibility of earning additional royalties if the project becomes commercially successful. In songwriting partnerships, lyricists often split the income generated by the song with other collaborators, such as composers or producers. These splits are typically negotiated at the outset of the project and vary depending on each person’s contribution to the song. Royalties For many composers, especially those working in ﬁlm, television, radio, or streaming platforms, royalties are a critical revenue stream. Lyricists on the other hand generally receive performance royalties whenever their songs are performed publicly, such as in concerts, on radio, or on television. These are payments made for the ongoing use of their music. Royalties can come from: - Performance royalties Paid whenever their music is performed in public (concerts, radio, TV). - Mechanical royalties Paid for each reproduction of their music (CDs, downloads, streams). - Sync royalties Paid when their music is used in synchronization with visual media (ﬁlm, TV, commercials, video games Licensing Fees Composers and lyricists may license their music for use in various projects. - Broadcast For example, a pre-existing piece of music might be licensed for a commercial, ﬁlm, or TV show, generating income for the composer. - Digital Distribution and Streaming For independent composers or those working in the digital sphere, revenue can come from platforms like Spotify, Apple Music, or YouTube, where their music is streamed or downloaded by users. Public Grants and Fellowships Some composers, particularly in the concert or contemporary classical world, receive funding through public grants, fellowships, or private foundations to create new works or pursue residencies. Lyricists, particularly those involved in theater or other creative industries, may receive grants or fellowships to support their work. These are typically provided by arts organizations or government bodies to help develop new projects or provide ﬁnancial support during the creative process. Teaching and Residencies Many composers and lyricists supplement their creative income by teaching at universities, conservatories, or through private lessons. They may also oYer mentoring or consulting services for aspiring songwriters. Some also engage in artist residencies, where they are compensated to live and work in a particular location, often with the opportunity to focus on new works. __________________________________________________ Which collectives represent their interest? Industry Associations - Songwriters Association of Canada (SAC) - Screen Composers Guild of Canada (SCGC) - Canadian League of Composers (CLC) - Société Professionnelle des Auteurs, Compositeurs et Artistes Entrepreneurs du Québec (SPACQ-AE) Industry Collectives - Society of Composers, Authors and Music Publishers of Canada (SOCAN) - Canadian Music Reproduction Rights Agency Ltd. (CMRRA) PUBLISHERS __________________________________________________ Who are they? Publishers are individuals or entities of various sizes ranging from family-owned to publicly traded corporations responsible for managing, promoting, and monetizing musical compositions by acting as agents of the works. Both composers and lyricists can and often have diYerent music publishers representing their own separate interests in the same musical works. Publishers typically represent many diYerent composers and lyricists and possess many diYerent intellectual property rights in many musical works. Composers and lyricists can and sometimes choose to self-publish which allows them to keep all their royalties but also carries all the duties associated with the administration of the copyright in their works. __________________________________________________ What is their role? Creative Support and Development Publishers usually provide creative support to songwriters, helping them ﬁnd collaborators or guiding their development as artists. This could involve setting up co-writing sessions, providing feedback on songs, or facilitating relationships with artists who might record their songs. Promotion Publishers actively help fabricate a written score and/or a demo recording of the musical works to promote their catalog of works to a variety of users, including recording artists, record labels, ﬁlm and TV producers, advertisers, and video game developers. They may pitch songs for use in ﬁlms, commercials, or television series, aiming to increase the song's exposure and generate sync licensing opportunities. Copyright Management Publishers ensure that the copyrights for the musical works they manage are properly registered and protected. This includes ﬁling the compositions with relevant copyright oYices and managing the ownership rights on behalf of the songwriter or composer. Licensing Publishers handle licensing agreements that allow others to use a musical composition legally. This could include mechanical licenses for recordings, performance licenses for live shows, or synchronization licenses for visual media. They negotiate the terms of these licenses to maximize income for the songwriter. Royalty Collection and Distribution Music publishers are responsible for collecting royalties from various sources. They monitor the use of songs in public performances (radio, concerts, streaming services), mechanical reproductions (CDs, downloads, streaming), and synchronization in media (ﬁlms, TV shows, ads). Publishers then distribute these royalties to the songwriters or composers, often retaining a percentage as their commission. Legal and Administrative Services Music publishers take care of the complex legal aspects of songwriting, including negotiating deals, licensing agreements, and enforcing copyright when necessary. They may also provide administrative services, such as ensuring royalties are correctly reported and disbursed, tracking performances, and managing international rights if the music is used globally. __________________________________________________ How are they compensated? Royalties - Publisher’s Share of Composition Performance Royalties Music publishers receive a share of the royalties generated when a song is performed publicly, such as on the radio, in concerts, on streaming platforms, or in public venues. These royalties are collected by Performing Rights Organizations (PROs) like ASCAP, BMI, or SOCAN and are typically split between the publisher and the songwriter. - Publisher’s Share of Composition Reproduction Royalties Publishers collect mechanical royalties for the reproduction of songs in physical formats (CDs, vinyl) or digital formats (downloads, streaming). This is another critical income source, especially in the streaming era. When a song is licensed for use in a ﬁlm, TV show, commercial, or video game, publishers receive a sync fee and a share of the royalties. Sync licensing can be highly lucrative, particularly if the song is used in a high-proﬁle project. Co-Publishing Deals In a co-publishing agreement, the publisher shares ownership of the composition with the songwriter. This means the publisher takes a percentage (often 50%) of the publishing rights and the associated income, while the songwriter retains the other portion. The publisher is compensated by keeping a portion of the publishing share and royalties. Licensing Fees Publishers charge fees for issuing various licenses to use musical works, such as mechanical, sync, or performance licenses. These fees are often negotiated based on the scope of the usage and the prominence of the work. For example, a publisher might charge a signiﬁcant fee to allow a song to be featured in a national commercial or a blockbuster ﬁlm. Sub-Publishing Deals In cases where music is used in international markets, sub-publishers in diYerent territories collect royalties and license the music on behalf of the primary publisher. In exchange for their services, sub-publishers take a percentage of the royalties generated in their respective regions. Administration Fees If a publisher is only providing administrative services, such as collecting royalties or handling licensing agreements without an exclusive publishing deal, they might charge an administration fee, typically a percentage of the revenues they collect on behalf of the songwriter. This is common in administration-only deals where the songwriter retains more control over their work. Additional Creative Services Publishers who help songwriters with artist development, songwriting workshops, or creative partnerships may charge for these services or negotiate a higher percentage of the royalties in exchange for oYering career-building support. Advances In many cases, music publishers oYer advances to songwriters, which are upfront payments that are recouped from future royalties. These advances can be substantial, particularly for established or promising songwriters, and are repaid through future earnings from the songs. __________________________________________________ Which collectives represent their interests? Industry Associations - Music Publishers Canada (MPC) - Association des professionnels de l’édition musicale (APEM) Industry Collective - Society of Composers, Authors and Music Publishers of Canada (SOCAN) - Canadian Music Reproduction Rights Agency Ltd. (CMRRA) PERFORMERS __________________________________________________ Who are they? Performers are individuals or ensembles that interpret works for an audience, either live or via some form of recording. They master musical crafts or a combination of crafts such as playing an instrument (acoustic and/or electric/electronic), singing, conducting and/or leading other performers. Performers may also compose their own music and/or write their own lyrics with or without the collaboration of other individuals. They either perform their own original works or cover other works created by composers and lyricists if and when applicable. __________________________________________________ What is their role? Interpretation Performers’ role is to interpret and transmit the ideas of the musical works they perform. Their performances may be focused on art, entertainment or both. Music performers are often responsible for tempo, phrasing and dynamics of a musical work’s interpretation. Ornamentation and improvisation are also at play when those individuals or ensembles perform music. Presentation To be a successful performer, one must have the ability to connect with their audience. As with any profession, musicians face challenges such as stage fright, competition, and volatility in the music industry. However, being a performer can also be incredibly rewarding, with opportunities to travel, collaborate, and express oneself creatively. Skilled performers often tend to blend interpretation and presentation to create engaging and lasting acts. A skillful blend of solid music abilities and charisma is required for performers to become successful and leave a lasting impression on their audience. Depending on the type of performer and the setting, their roles can include: Live Performances For many performers, their primary role is delivering live performances to audiences. This could involve performing at concerts, festivals, clubs, or private events. This includes DJs and electronic music artists that perform by mixing pre-recorded tracks or creating live electronic music. - Touring Performers Many music performers spend a signiﬁcant portion of their careers touring, traveling between cities or countries to perform for live audiences. Touring performers may be part of a band, an ensemble, or solo artists who perform their own music or act as backup musicians for well- known acts. - Ensemble Performers In classical, jazz, and some popular music genres, performers may be part of larger ensembles, such as orchestras or chamber groups. These performers interpret scores and work under the direction of a conductor or bandleader to present the music as part of a larger group. Recorded Performances Performers also work in studio environments, recording music for albums, singles, commercials, movies, or television. In the studio, performers focus on delivering technically precise and emotionally resonant performances, often requiring multiple takes and collaboration with producers and engineers. - Session Performers These performers are hired on a per-project basis to play instruments or provide vocals for recordings. Session musicians must be versatile and adaptable, able to quickly learn new material and deliver high-quality performances for a variety of projects, including albums, soundtracks, and jingles. - Accompanying Performers Singers and instrumentalists often serve as background performers, providing supporting vocals or instrumental parts to complement a main artist or lead performer in live shows or studio recordings. __________________________________________________ How are they compensated? Performers can be freelance, represented by an agency or a music corporation, or have their working conditions regulated through a union’s collective agreements. Non-aNiliated Performance fees Residual payments Royalties Merchandising and Endorsements Crowdfunding and Fan Support Unionized Performance fees Residual payments Royalties Public Grants and Fellowships Teaching and Workshops Performance Fees - Unionized Performers who are members of unions or guilds, typically accompanying performers, may receive minimum fees and beneﬁts negotiated through collective bargaining agreements. - Concert and Gig Fees Non-aYiliated performers, typically brand names and front acts, are usually paid a fee for each performance, which can vary based on the size and prominence of the venue, the artist's fame, and the nature of the event. These fees may be negotiated directly with venues, booking agents, or event organizers. - Touring Income For performers on tour, income can come from ticket sales, guarantees from venues or promoters, and revenue shares from merch sales. Large-scale touring acts often generate signiﬁcant income through multiple revenue streams during a tour. - Session Fees Session musicians are paid per project or per session, with rates depending on the musician’s experience, the scope of the project, and union guidelines. They are typically hired to play speciﬁc parts for albums, jingles, TV shows, ﬁlms, or commercials. Residual Payments For performers involved in ﬁlm and television, residual payments may be provided for reruns, syndication, and digital streaming. This is common in the acting and session musician worlds, where performers in commercials or recorded soundtracks continue to earn money as the media is re-used. Royalties - Performance Royalties In many countries, performers (especially those in recorded media) are entitled to performance royalties whenever a recording featuring their performance is broadcast on radio, television, or streaming services. - Mechanical Royalties While typically reserved for songwriters and publishers, some performers, especially those who self-produce, may also earn mechanical royalties from album sales or streams if they have ownership stakes in the recordings. - Neighboring Rights Royalties In some countries, performers are entitled to royalties for the public performance or broadcast of recordings of their work. Merchandising and Endorsements Performers, especially touring musicians, generate income from selling merchandise like T- shirts, posters, and albums at live shows or through online stores. High-proﬁle performers may secure endorsement deals with brands for instruments, clothing, or other products. DJs and electronic artists often partner with audio equipment manufacturers or software companies to promote their products. Streaming and Digital Sales Performers who own their recorded music or have royalty agreements may receive income from digital platforms like Spotify, Apple Music, or YouTube. While streaming rates per play are low, cumulative earnings can add up for high-proﬁle or frequently streamed artists. They may also earn income from direct digital sales of their music on platforms like iTunes or Bandcamp, where they can receive a higher percentage of the sale than from streaming. Public Grants and Fellowships Performers, particularly those in classical or experimental genres, may receive public or private grants to support their creative work. These funds can help cover the costs of developing new performances, recordings, or touring projects. Some performers receive paid residencies, where they are compensated for performing or developing new work in speciﬁc locations, often for cultural institutions, theaters, or academic programs. Teaching and Workshops Many performers supplement their performance income by teaching their craft to others, oYering private lessons on instruments, voice, or music production. Experienced performers may oYer paid workshops or masterclasses, sharing their expertise with aspiring musicians or fans. Crowdfunding and Fan Support Some independent performers use crowdfunding platforms to generate income from their fan base, oYering exclusive content or early access to recordings in exchange for ongoing ﬁnancial support. Performers may also receive support through direct fan donations, especially during live streaming performances or via social media platforms. __________________________________________________ Which collectives represent their interests? Industry Associations - Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) - Union des artistes (Uda) - American Federation of Musicians (AFM) - Canadian Federation of Musicians (CFM) - Guilde des Musiciens et Musiciennes du Québec (GMMQ) Industry Collectives - ACTRA Performing Rights Society (ACTRA PRS) - ACTRA Recording Artist Collecting Society (ACTRA RACS) - Société de gestion collective de l’Union des artistes inc. (Artisti) - Musicians’ Rights Organization Canada (MROC) RECORD LABELS __________________________________________________ Who are they? Record labels are (largely) for-proﬁt corporations that manage the production, distribution, marketing, and promotion of music recordings. Depending on their size, they are typically owned by various shareholders. They serve as intermediaries between artists and the market, helping artists record their music, distribute it to the public, and promote it through various media channels. With the advent of the internet, major labels have gained partial ownership of the new online platforms through their parent conglomerate companies. Record labels come in diYerent types and sizes, ranging from major international corporations to independent (indie) labels and small boutique labels. Major Labels These are large, multinational corporations with extensive resources, global distribution networks, and a wide roster of artists across various genres. The "Big Three" major record labels are Universal Music Group, Sony Music Entertainment, and Warner Music Group. They control a signiﬁcant portion of the global music market and have the capacity to invest heavily in artist development, marketing, and promotion. Independent Labels (Indie Labels) These are smaller labels that operate outside the major label system. They may focus on niche markets, speciﬁc genres, or emerging artists. Indie labels often have more direct and personal relationships with their artists, oYering greater creative freedom but with fewer ﬁnancial resources compared to major labels. Boutique Labels These are smaller, highly specialized labels that typically focus on very speciﬁc genres, artistic movements, or local scenes. Boutique labels may be run by one or a few individuals, often with a deep connection to the music they produce. They cater to niche audiences and tend to emphasize artistic integrity and close artist collaboration over commercial success. Some independent artists, often times singer-songwriters, chose to operate their own independent record label to better control their destiny. __________________________________________________ What is their role? Record labels play a variety of roles in the lifecycle of a music project, from signing and developing talent to distributing and promoting music. Their responsibilities vary depending on the size and type of label. Artist Scouting (A&R) A crucial department within record labels, A&R scouts new talent, evaluates potential artists, and signs them to the label. They play a key role in identifying trends, developing the label’s roster, and helping artists craft their albums or songs. Artist Development Labels often help artists reﬁne their sound signature, image, and brand. For newer artists, labels may provide resources such as producers, songwriters, and stylistic guidance to help shape their career. This can include mentoring, building a fan base, and nurturing an artist’s long-term creative direction. Production and Recording Labels often provide artists with ﬁnancial resources and access to professional recording studios, producers, engineers, and session musicians. This can include covering the costs of recording, mixing, and mastering an album or single. Major labels may oYer bigger budgets, while indie labels often operate on smaller, more constrained budgets. Marketing and Promotion One of the most important roles of a label is to promote the artist's music. This includes developing marketing strategies, creating music videos, promoting on social media, arranging media appearances, and organizing tours. Major labels have vast marketing teams and networks, while indie and boutique labels often rely on grassroots marketing strategies and more targeted promotion. Distribution Labels are responsible for getting music into the hands of listeners. For physical media (CDs, vinyl, etc.), this means distributing albums to retail stores. For digital media, this involves placing music on streaming platforms like Spotify, Apple Music, and YouTube. Major labels have their own global distribution channels, while indie labels often partner with distributors or aggregators to get their music onto digital and physical platforms. Licensing Labels help artists secure licensing deals for their music to be used in movies, TV shows, commercials, video games, and other media. Sync licensing (when music is synchronized with visual media) can be a signiﬁcant revenue source for both artists and labels. Tour and Merchandising Support Record labels, especially at the major level, often assist artists with organizing and promoting tours and live performances. They may also help with designing and selling merchandise, which can be a vital income stream for artists. Business and Legal Support Record labels manage the legal aspects of an artist's career, including contract negotiations, copyright management, and royalty collection. They ensure that both the label and the artist are properly compensated and that legal protections are in place for the music and intellectual property. __________________________________________________ How are they compensated? Record labels generate revenue through a combination of royalties, licensing fees, and additional services they oYer to artists. Their compensation is tied to the success of the music they release and the agreements they make with artists. Record Sales - Physical Sales For physical formats like CDs, vinyl, or cassettes, record labels earn a portion of the sales revenue. Typically, the label covers production and distribution costs, with proﬁts split between the label and the artist. Major labels tend to have higher production runs and global distribution networks, while indie and boutique labels focus on niche markets. - Digital Sales Record labels earn revenue from digital sales through platforms like iTunes, Bandcamp, or direct- to-fan sales on artist websites. Similar to physical sales, the label retains a percentage of the revenue, which is usually higher than the artist’s share. Streaming Revenue Streaming services like Spotify, Apple Music, and YouTube pay labels based on the number of plays their music receives. Although the per-stream payout is relatively small, cumulative plays across platforms can generate substantial income, particularly for major labels with large catalogs. Streaming revenue is split between the label and the artist based on their contract. Licensing Fees - Sync Licensing Labels earn fees when their artists' music is licensed for use in TV shows, ﬁlms, commercials, or video games. This can be a signiﬁcant source of revenue, particularly for indie labels that focus on sync placements in media. Sync deals often result in a one-time upfront fee, with additional royalties if the music is repeatedly used. - Reproduction and Performance Licensing In the case of singer-songwriters and subject to the agreement with them, labels also collect mechanical royalties (from the reproduction of music) and performance royalties (from public performances, such as radio or live concerts). These are typically handled through Performing Rights Organizations (PROs) like ASCAP, BMI, or SOCAN. Royalties - Recording and Performance Royalties Record labels earn a signiﬁcant portion of royalties from the sale, streaming, and licensing of an artist’s music through the master recording right. Contracts often split royalties between the label and the artist, with the label typically taking a larger share, especially in major label deals. In many cases, the label retains ownership of the master recordings. This means that the label controls the rights to the music and collects a majority of the revenue from licensing and future uses of the recordings. Independent artists working with indie or boutique labels may have more favorable terms, allowing them to retain ownership of their masters. Merchandising and Branding Some labels have merchandising deals with their artists, allowing them to share proﬁts from the sale of branded products such as T-shirts, posters, and other merchandise. Major labels, in particular, may have infrastructure in place to handle large-scale merchandising, while indie labels might leave this to the artist. 360 Deals In recent years, some labels (primarily major labels) have moved toward "360 deals," where they take a share of all of the artist’s income streams, including live performances, touring, merchandising, and sponsorships. This type of deal allows the label to proﬁt from all aspects of the artist’s career, rather than just from record sales and streaming revenue. Publishing and Sub-Publishing Some labels also operate music publishing divisions, allowing them to collect publishing royalties on behalf of songwriters. In these cases, they act as both the label and the publisher, taking a percentage of the publishing revenue. Sub-publishing deals with international partners allow labels to collect royalties from global markets, adding another revenue stream. Advances and Recoupment When a label signs an artist, they often provide an upfront advance that serves as an initial payment. This advance is recoupable, meaning the label will deduct it from future earnings before the artist begins receiving their share of royalties. Major labels can oYer substantial advances, whereas indie labels tend to oYer smaller amounts, if any. Before an artist can start earning royalties, the label typically recoups the money it invested in the project (production, marketing, etc.). Only after these costs are recouped does the artist begin earning their share of the proﬁts. __________________________________________________ Which collectives represent their interests? Industry Associations - Music Canada (MC) - Canadian Independent Music Association (CIMA) - Association québécoise de l'industrie du disque, du spectacle et de la vidéo (ADISQ) Industry Agencies/Collectives - Connect Music Licensing (Connect) - Re:Sound Music Licensing Company (Re:Sound) - Société de gestion collective des droits des producteurs de phonogrammes et de vidéogrammes (SOPROQ) - Canadian Music Reproduction Rights Agency Ltd. (CMRRA)

Lecture Notes - Class 3; Music Business Actors 1 PDF

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