Can Music Businesses Earn A Living in 2012, With The Lack of CD Sales?

By: Hanna, Troika

I was searching on the web and stumbled across a video interview that speaks about the Music Industry in 2012. The interview was on Pat Bishop who is Director of the Entertainment Business Program at Full Sail University. She gives great detail about how the Music Industry could not be more striving and open for growth in the industry. The world is consistently being enhanced by entertainment and music. She mentions how students at Full Sail University are being prepped to enter the Music Industry as an artist, manager, utilizing music in the booming Gaming Industry, Publishing, Online or Digital presence and other areas.

So when I looked at the question to myself, is it possible for me as a Jazz musician to earn a healthy living even though CD or record sales or low. The answer is an astounding YES. The old business model showed that musicians or music entrepreneurs earned their revenue from record sales, publishing, merchandise and concerts. Now because of technology and the popularity and need for entertainment, there are numerous ways of bringing in income. Pat Bishop gives several examples. She speaks of the company Music Today strives and has attained sustainability because they provide services to the Music Industry in several different areas. Each area requiring either musicians like myself or business workers to operate the specific functions such as managing fan websites, building social networks or enhancing the digital presence and sound of an artist.

In addition, it was quite interesting to hear that today’s musician does not need a record label anymore to “Have Made It.” Studies have shown that numerous companies such as sports networks, TV programs, Radio shows and even the Gaming Industry need new music to enhance their product and brand. So is their hope for an artist or musician to earn a living, YES. The only thing is, we now have to think outside the box and look at the different industries that music is now affecting and enter into those markets. 

Work Cited:

(2008). Pat Bishop is Director of the Entertainment Business Program at Full Sail University.

http://www.artistshousemusic.org/videos/the+music+industry+in+2012+what+will+it+look+like 

Today's Independent Artist

The Indie Music Scene Today…

By Troika Hanna

When we talk about the music scene in the year 2012, some may say that it is on a down hill slope. However, it is just the reverse for independent artist. This could not be a more-better time for an independent artist to strive for their goals in the Music Industry. Statistics show that more than ever social networks have aided in the support of indie artists just as Major Record labels. A indie artist is able to appeal to management in the music industry because there fan base through social networks have enhanced their exposure, help artist work on their existing image, allowed indie artist to stay connected in trends, and the ability to create a name through less financial expense.  

In addition, it depends on what city specifically an independent artist is currently focusing his or her career in the music industry. An article in Digital News gives statistics on the top 15 cities. 

“Turns out that location still matters after all, but which locations matter the most?  That's a tough question, but when it comes to the music industry, we looked internally to find the largest, densest industry populations.  Accordingly, we tracked IP addresses on Google Analytics (anonymously) for the past one million unique hits…” (http://digitalmusicnews.com/stories/052511cities)

1. New York (12.23 % of the past 1MM unique hits)

2. Los Angeles (10.43%)

3. London (3.55%)

4. San Francisco (and Oakland) (3.24%)

5. Nashville (1.55%)

6. Boston (& Cambridge) (1.55%)

7. Chicago (1.44%)

8. Seattle (1.22%)

9. Toronto (1.16%)

10. Atlanta (0.96%)

11. Paris (0.85%)

11. Austin (0.84%)

12. Birmingham (UK) (0.81%)

13. Washington, DC (0.78%)

14. Sydney (0.72%)

15. Philadelphia (0.72%)

This information is very useful because through research of demographics and location management in the Music Industry are able to determine what cities should be geared for music tours, marketing/advertising, and sales.

Another great concept with the Music Industry scene today is the ability of indie artist to be versatile in other skills and talents. The average indie artist today can now play several different instruments, read music, and posses social skills of communication from there daily interactions with social networks such as Youtube, Twitter, and Facebook. In the book This Business of Artist Management, it gives examples and illustrations how through the advancement of technology, increase opportunities of multimedia exposure—television, print, social networks, and show business allows a independent artist to be diversified and more well-rounded.   

BSA

The Marketing that Propelled VaShawn Mitchell to this Great Achievement

VaShawn Mitchell Tops Winners List at 27th Annual Stellar Awards…

               


By: Troika K. Hanna

2011 was the year the song Nobody Greater took force on Gospel airways and networks. Vashawn Mitchell’s 2010 album Triumphant earned a total of six (6) Stellar Awards. The EMI Gospel artist was highly promoted on the star search shows Untapped and BET’s Sunday’s Best. EMI’s marketing team ensured that the song Nobody Greater would catapult his career.


Their steps began in October 2011, showcasing Vashawn Mitchell on TV shows, where the marketing team was prepared to release the deluxe edition of the 2010 album Triumphant. The package consisted of a CD/DVD, in addition to two new songs, My Worship is For Real and My Source. There was also an attached in depth interview of Vashawn Mitchell that spoke of his many accomplishments of obtaining a record deal with EMI, Grammy Nomination, and the privilege of being mentored and working and ministering with Bishop Larry T. Trotter. 


Throughout his career, he has worked with Lonnie Hunter as an assistant music director and Minister of Music under Bishop Larry T. Trotter. As a songwriter, he has composed songs for Vanessa Bell Armstrong, Bishop Paul Morton, and Smokie Norful. He has been known to top Billboard Gospel chart where on April 5, 005, he peaked at number 26. But it was only until EMI Gospel released the Grammy-nominated Triumphant on August 2010 that his career and success would take rave notification. “Rising Gospel music superstar VaShawn Mitchell topped the list of winners during the 27th Annual Stellar Gospel Music Awards announced Saturday night during the show’s taping at Nashville’s iconic Grand Ole Opry House Theater. Mitchell took home six awards, including Artist of the Year, Male Vocalist of the Year, Contemporary Male of the Year and Praise and Worship CD of the Year for his 2011 album, “Triumphant.” (Retrieved from: http://www.eurweb.com/2012/01/vashawn-mitchell-tops-winners-list-at-27th-annual-stellar-awards/

“I am grateful to stand here,” a gracious Mitchell said, also acknowledging other artists in the category, his family, label and social media fans.  “I’ve been coming to the Stellar Awards a long time and I’m glad I waited my turn.” (Stated VaShawn Mitchell)

Work Cited:

EMI Gospel. (2012)

http://emigospel.com

You in Music Magazine

Illustrates Probability Ratio in the article:

Netflix gets more shows from CBS, Warner Bros

            In analyzing the tactics of Netflix, Inc. in their marketing strategy, we see that the company has made joint ventures to expanding the product. The article states that Netflix signed an agreement with CBS to expand their television network. This development will increase their number of active users and allow them to remain a competitive force in the market. Their aim is to convert their mail in clients to streaming clients and establish a working network between all Cable TV programming. Currently the company has a joint venture between Lions Gate Entertainment Corp., Warner Bros., CBS, AMC Networks, and Sony Pictures Entertainment. It is stated that the only challenge is with the exclusive rights. Netflix is limited or restricted to the launch date of allowing customers to utilize the products or titles within the joint venture. “The new deals with Netflix appear to have tighter restrictions such as when they can first be shown, for example. In The CW pact, older-season episodes of some shows, including "One Tree Hill" and "Nikita", will available Oct. 15 while others are set for January.” (Yinka Adegoke 2011). However, such restrictions are not deterring the company’s continuous growth in financial stability.

From analyzing the information given, we see how the company Netflix has used the Liquidity Ratio (examining its leverage over Cable TV), Quick Ratio (examining its liabilities – Example is the launch restrictions), and Probability Ratio. Most importantly it is through the Probability Ratio that the company Netflix is able to determine how well it is operating within the market; enable the company to keep track of product/service sales of the publication and being able to determine the ratio of people converting from DVD’s to online streaming. Netflix is truly becoming a company that all active customers in the entertainment industry are starting to consider. “Netflix shares rose 2.7 percent to $116.75 on Nasdaq at mid-afternoon.” (Yinka Adegoke 2011).

Work Cited

Yinka Adegoke (2011). Netflix gets more shows from CBS, Warner Bros

http://www.reuters.com/article/2011/10/13/netflix-timewarner-cbs-idUSN1E79C0YP20111013?type=companyNews

RE: My blog post revolves around the achievements of Vijay Nair out of India.

By: Troika K. Hanna

As an independent artist and the CEO of a music publication for independent artist and Music Business professionals, I found this article to be very inspiring. Even though this company (Only Much Louder) and industry is in a different country, the growth and downfall in the Music Industry may be compared to the industry in the Unite States. The company is setup as a one-stop shop. Only Much Louder provides services for concerts and festivals; it is a booking agency for independent artist and record label. When one analyzes the company Only Much Louder, we look at what the company has done for the country of India and how it differentiates its brand from others.

For example: Only Much Louder hosted the first music festival in India. The company has established itself as being the only music organization to focus on independent artist and the non-Bollywood sector in India.

“What differentiates us is that we’ve always focused on the non-Bollywood sector in India and that’s a pretty hard thing to do. Plus we’ve never really been limited to any genre; it’s just been about anything that’s independent, good, live, very flexible.” (Vijay Nair, 2010)

The company focused its aim entirely on empowering independent artists, musicians, and agents from being trapped by major record labels. One of the most innovative tactics used by Only Much Louder was the ability to increase CD sales. During the year 1999-2000, the company had burned 200 CD’s for sale and had started to encourage consumers to burn the CD’s themselves. Subsequently, this being a new idea to consumers of India had actually enforced consumers in buying the album.

“We took a lot of pride in that. And the more we asked people to do that, the more people ended up buying the album, which was really strange. We did the first two hundred albums like that, but we were actually mass-printing albums after that. We did about eight to ten thousand copies by the end of the year.” (Vijay Nair, 2010)

Another factor is that India being a larger market, allowed for greater potential. When compared to other markets in foreign countries, we see that India uses music mainly for the Film Industry. Ninety percent of all music made was put into film. This very same idea is what Only Much Louder focused on. The company used the fact that the film industry was dominant, and decided to capitalize on two or three percent of which was the independent music industry.

As we analyze the company Only Much Louder we can see it used the Law of Contraction (focusing entirely on a particular market) and the Law of Singularity (staying geared towards the independent music industry).

I hope to see my company You in Music begin to grow in the very sme business structure here in the Bahamas and United States as Only Much Louder was able to capitalize on the market in India.  

Reference: Nair, Vijay. India’s Independent Music Industry, (2010). Retrieved from: http://blog.ted.com/2010/10/29/fellows-friday-with-vijay-nair/

The RIAA Involvement & Impact on The Music Industry

Article by: Troika Hanna

My association of choice is the Recording Industry Association of America (RIAA). In analyzing the RIAA, we first have to examine the history of the association. This association is a trade organization that supports and promotes the creativity and financial validity of major music companies. The members of the association consist of record labels. There primary objective is to create, manufacture, and disseminate music globally. As stated by the RIAA, the association currently operates 85% of all legal/copyrighted work in the United States.

In addition, the RIAA aims to protect intellectual property. The company protects against piracy of any recorded material or music. As stated by the RIAA, “because of the substantial losses to the recording industry as the result of piracy, the RIAA worked closely with the FBI to develop a new government seal and warning for placement on copyrighted music products in order to increase anti-piracy awareness”. Through protecting the rights of recorded music, the RIAA also operates through the First Amendment of the constitution. As stated in the constitution, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." –                          (First Amendment, December 15, 1791).

There are numerous more areas of which the RIAA operates in education, manufacturing/distribution, anti-piracy, and protection of artistic rights in music. For instance everyone is familiar with the infamous logo created through the RIAA – Parental Advisory Explicit Content.  

The logo allows for consumers to better monitor legalized recorded material associated with minors or adolescents. In addition, it protects artists and record labels or companies associated with the Music Industry. The RIAA also provides vital information for those in the Music Industry about legal services such as: iTunes, Pandora, Rhapsody, YouTube, Napster, and many more. It is stated that there are more than 13 million legal tracks online. It is through the involvement & impact of the RIAA that record labels, artists, and music distributors are able to stay connected with their consumers and the Music Industry. In addition, the RIAA allows these vary same individuals access to searchable data of Gold & Platinum music. The RIAA has truly been aiding the Music Industry since 1952.        

Reference:

http://www.riaa.com/aboutus.php?content_selector=about-who-we-are-riaa