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5TH EDITION

MUSIC BUSINESS HANDBOOK & CAREER GUIDE

DAVID BASKERVILLE. Ph.D.

Digitized by the Internet Archive

in 2010

http://www.archive.org/details/musicbusinesshanOObask

MUSIC BUSINESS HANDBOOK & CAREER GUIDE

DAVID BASKERVILLE, Ph.D. PROFESSOR EMERITUS UNIVERSITY OF COLORADO AT DENVER

5TH EDITION

MUSIC BUSINESS HANDBOOK & CAREER GUIDE

FOREWORD By STAN CORNYN, President Warner New Media

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SHERWOOD PUBLISHING COMPANY Los Angeles

Library of Congress Catalog Card Number: 90-60569

ISBN 0-933056-06-0

© 1990 Roberta Baskerville; © 1985, 1981, 1978 David Baskerville. All rights reserved. No part of this book may be reproduced in any form by any means without the prior written con- sent of the publisher.

SHERWOOD PUBLISHING COMPANY RO. Box 85307, Los Angeles, CA 90072

777/s publication is designed to provide accurate and autlioritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not en-

gaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

From the Declaration of Principles jointly adopted by a committee of the American Bar As- sociation and a committee of publishers and associations.

Permission from the following sources to reprint photographs and graphic art Is gratefully acknowledged: A&M Records (pp 298, 311); American Stock Photos (p. 136); Ampex Corp. (p. 291); ASCAP (pp 23, 24, 48,); Beri<lee College of Music (p. 457); BMI (pp 23, 106, 116); Broadcast Electronics, Inc. (p. 356); Capitol Records (p. 242); CBS Records (pp 266, 285); CBS Television (p. 152); The Denver Post (p. 352); Eastern Sound Ltd. (p. 286); Eureka Production Center (p. 366); the late Denise Gresham (p. 2); The Image Bank West: Steve Dunwell (p. 183), Steve Niedorl (p. 231), Morton Beet)e (p. 236), Michael Salas (p. 256), Michael Melford (p. 406), Jeff Hunter (p. 408); David Leonard (p. 21); Lincoln Center (p. 222); Manufacturers Hanover Trust (p. 26); NAMM (pp 202, 214); Janet Nepkie (p. 21); Opryland U.S.A. (p. 65); Screen Actors Guild (p. 128); Selmer Co. (pp 205, 446); Ed Skow^ronski Jr., World Music (p. 220) Power 106 FM (p. 334); SMPTE (p. 322); University of Miami (p. 390); Warner Bros. Records (pp 246, 304); Leigh Wiener (p. 138).

10 9876543 Printed In the United States of America

To my family, and to those in the business who care about the music, too.

Editor — Tim Baskerville Managing Editor — Roberta Baskerville Copy Editor/Researcher — Libby Slate Layout/Production Manager — Kim M. Hogan Cover Illustrator — Gary McLaughlin Researchers — David L. Hazan

F. Owen Holmes, Jr. Gene Mueller

James Riordan

Contributing Researchers — David Caffey, Janice Drickey,

Nicolas Shirilla

©WEP^T: ACKNOWLEDGMENTS FOREWORD by Stan Cornyn

PART ONE - MUSIC IN THE MARKETPLACE

1 - OVERVIEW 3 MORE THAN POP 5 ART VERSUS COMMERCE 6 FINDING A PAYING AUDIENCE 8 INFLUENCE OF MASS MEDIA 1

THE ARTS AND ENTERTAINMENT INDUSTRY 14 The Home Entertainment Center 14

2 - THE MUSIC BUSINESS SYSTEM 15 GETTING THROUGH THE MAZE 1

INFORMATION HANDLING 18

3 - THE NEW PROFESSIONALS 1

MUSIC BUSINESS STUDIES IN HIGHER EDUCATION 20 HELP WANTED! 22 WOMEN IN MUSIC 22 JOB OPPORTUNITIES 23

PART TWO - SONGWRITING, PUBLISHINGpi ji COPYRIGHT

4 - PROFESSIONAL SONGWRITING 27 THE MARKET 27 THE PROFESSION 29 THE CRAFT 30

Collaboration 31 Work Habits 32

THE BUSINESS 33 Income Sources 33 Income From a Hit Record 34 Additional Sources 35 Publishing Options 35 Staff Writers 35 Label-Affiliated Deals 36 Evalu- ating Publishers 37 The Songwriters Guild of America 38 The Songwriters Guild of America Contract 38 Contracts: Getting Out 40 Demonstration Records 40 Who Pays? 41

BREAKING IN 42 Local Promotion 43 Promotion by Mail 43 Confronting Publishers 45 Songwriters/Publishers Income Sources 47

viii

5 -MUSIC PUBLISHING 49

PERSPECTIVE 49

TYPES OF PUBLISHERS 51 Full-line Companies 51 Independent Publishers 52 Record Company Affili- ates 52 Artist-Owned Companies 53 Writer-Owned Companies 53 Educational Field 53 Specialty Publishers 54 Concert t\Ausic 54 Sub- publishers, Licensees 55 Foreign Territories 55

ADMINISTRATION 56 Business Affairs 57 Copyright Department 57 Legal Affairs 59 Opera- tions 59 Distribution 59 The Professional Manager 60

ACQUISITIONS 60 Criteria for Acceptance 61 Catalog Purchases 62

EDITING 62 THE PRODUCTION LINE 64 TALENT DEVELOPMENT 65 CONTRACTS WITH WRITERS 65

Draft Contract 66

SPLIT COPYRIGHTS, COPUBLISHING 71 PROMOTION, ADVERTISING 72

Popular l^usic 72 Song Casting 72 Cover Records 73 Educational Field 73 Classical Field 73

INCOME SOURCES 74 NMPA 76 THE HARRY FOX AGENCY 76

6 - MUSIC COPYRIGHT 77

BACKGROUND 77 Essential Provisions of the Copyright Act 78

TERMS DEFINED 79 SCOPE, COVERAGE 82 EXCLUSIVE RIGHTS 83 LIMITATION OF RIGHTS, FAIR USE 84

Fair Performances 85

TRANSFERS, ASSIGNMENTS 87 Recordation of Transfers 87 Termination, Recapture 87

WORK MADE FOR HIRE 88 COPYRIGHT IN MUSICAL ARRANGEMENTS 89 Arrangers

' Rights 90 Arrangements of l\/lusic in the Public Domain 90

SOUND RECORDINGS 90 Performance Right Exclusion 91 Compulsory Mechanical License 92 Com- pulsory License Bypass 93 Royalty Payments 93

DURATION OF COPYRIGHT 94 Subsisting Copyrights in Their First Term 94 Subsisting Copyrights in Their Second Term 94 After 56 Years 94 After January 1 , 1 978 94 Works "In the Trunk" 95

FORMALITIES 95 Notice on Printed Music 95 Notice on Ptionorecords 96 Errors, Omissions 96 Deposit 97 Registration 98 Fees 99

RECORD COUNTERFEITING, PENALTIES 102 CHANGING LAWS 102

First Sale Doctrine 103 Important Technology/Industry Developments 103

RIGHTS IN NAMES AND TRADEMARKS 1 04 Selection of a Name 104 Rights in a Name 104

A FINAL NOTE ON LAW 104

PART THREE - BUSINESS AFFAIRS

7 -MUSIC LICENSING 107

MUSIC RIGHTS -AN OVERVIEW 107 AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUB- LISHERS (ASCAP) 110 Membership 110 Performance Licensing 110 Sampling, Accounting 112 Weighting Performances 113 Income, Royalty Distribution 114 Foreign Col- lections 114

BROADCAST MUSIC INC. (BMI) 1 1

Licensing 117 Sampling, Accounting 117 Royalty Distribution 118 Foreign Collections 119

SESAC 119 MECHANICAL LICENSES 120

Royalty Rates 120 Collection Sen/ices 121

SYNCHRONIZATION LICENSES 122 TV Movie Rights 123 New Use Rights 123

CABLE TELEVISION LICENSES 123 Other Cable TV Licenses 124

VIDEO LICENSES 124

TRANSCRIPTION LICENSES 125

SPECIAL USE PERMITS 126 BROADCAST COMMERCIALS 126 JUKEBOX LICENSES 126 DRAMATIC MUSIC RIGHTS 126

8 -UNIONS AND GUILDS 129

AMERICAN FEDERATION OF MUSICIANS (AFM) 1 30 AMERICAN FEDERATION OF TELEVISION AND RADIO ARTISTS (AFTRA) 132 The "Four-A" Unions 134

AMERICAN GUILD OF MUSICAL ARTISTS (AGMA) 1 34

AMERICAN GUILD OF VARIETY ARTISTS (AGVA) 1 35 ACTORS EQUITY ASSOCIATION ("EQUITY") 135 SCREEN ACTORS GUILD (SAG) 136 INTERNATIONAL ALLIANCE OF THEATRICAL AND STAGE EM- PLOYEES (lATSE) 136

OTHER UNIONS AND GUILDS 137 Dramatists Guild 137

9 - AGENTS, MANAGERS AND ATTORNEYS 1 39

AGENTS 140 Regional Agencies 140 National Full-Service Agencies 141 Changing Repre-

sentation 142 Regulation of Agents 143 Statutory Regulation 143 Union

Regulation 143 Getting Started 144

MANAGERS 144 Regulation of Managers 145 Statutory Regulation 145 Union Regulation 146 National Conference of Personal Managers 146 Assistants to Manage- ment 147

ATTORNEYS 147 Retaining Legal Counsel 149 Payment Options 1 49 Legal Status 150 Contract Negotiations 150 Tfie Adversary Relationstiip 151 Extralegal Ser-

vices 151 Termination 153

BUSINESS MANAGEMENT TECHNIQUES 1 53

10 -ARTIST MANAGEMENT 155

DISCOVERING EACH OTHER 156 Thie Personal Relationship 156

THE FINANCIAL RELATIONSHIP 157 Accounting 157 Controlling Expense 157 Loans, Investments 158

MANAGER'S COMMISSION 158 Going Rates 159 An Argument for Reasonableness 159 Commission Base 159 The Money Flow 160 A Possible Compromise 160

PRODUCING THE ACT 162 Coordinating the Elements 162 Programming 163

ADVANCING THE CAREER 163 Care and Feeding of the Media 164 Materials 164 Interviews 164 Billing 165 Controlling Performances 165 Landing a Recording Contract

166 The Process 167 The Result 167 Negotiating for Appearances 168

Developing Peripheral Income 169

THE PERSONAL MANAGEMENT TEAM 1 69 PERSONAL MANAGEMENT AGREEMENT 1 70

11 - CONCERT PROMOTION 179

GETTING STARTED 179 Finding the Money 180

LOCATING COSPONSORS 180 Record Company Cooperation 180 Corporate Sponsorship 181 National Promoters 182 College Sponsorship 182 NACA 182

PREPARING BUDGETS 183 Sample Concert Budget 184

NEGOTIATING CONTRACTS 185 Signing Acts 186 Technical Riders 187

PROMOTION, ADVERTISING 187 PRODUCTION MANAGEMENT 188 ELECTRONIC TOURS 191

1 2 - THEATRICAL PRODUCTION 1 93

PERSPECTIVE 193 TYPES OF MUSICAL THEATRE 1 94 PRODUCTION, PERSONNEL 199

13 -MUSIC MERCHANDISING 203

DEFINITION OF TERMS 203 SELLING INSTRUMENTS, EQUIPMENT 204

Sales to Schools 204 Distribution Methods 205 Sales Leaders 206 Growth Areas 206 Music Software and MIDI 206 Changing Markets 207 NAMM 207 AMC207

SELLING PRINTED MUSIC 208 Racks, Leased Departments 208 Educational Field 208 Music Books 209 Music Magazines, Trade Journals 209

TYPES OF STORES 210 Semiprofessional Equipment 213

STRUCTURING THE BUSINESS 214 FINANCIAL MANAGEMENT 216 PROMOTION 218

14 -ARTS ADMINISTRATION 221

THE SERIOUS MUSIC MARKET 221 REPRESENTATIVE ORGANIZATIONS 225 American Symphony Orchestra League 226 Orchestra Classifications 226

FUNDING THE ARTS 228 NATIONAL ENDOWMENT FOR THE ARTS 229 STATES ARTS COUNCILS 231 FOUNDATIONS, CORPORATIONS 233 VOLUNTEER SUPPORT 234 ADMINISTRATION 235 The Need 235 FINANCIAL MANAGEMENT 240

PART FOUR - THE RECORD INDUSTRY

1 5 - SCOPE OF THE RECORD INDUSTRY 243

HISTORICAL BACKGROUND 243 THE CHALLENGE 245

XII

MAJOR LABELS 246 INDEPENDENT LABELS 248 Dependency 248

SPECIALTY LABELS 249 RECORD COMPANY ADMINISTRATION 249

Artist Relations 251 A&R Department 251 Creative Services 251 Busi- ness Affairs, Accounting 251 Sales, Marketing 252 Promotion 252 Product Management 252 Distribution 252 Legal Department 252 Oper- ations 252 Video Department 252 Publistiing Affiliates 252 International Division 253

PIRACY, COUNTERFEITING, BOOTLEGGING 253 Home Taping 255

PERSONICS 255 NARAS 255

16 -RECORD MARKETS 257

RESEARCH METHODS 257 7/76 Ctiarts 258 Album Cuts 259 Comparison of the Charts 259

RIAA 260 SOUNDATA 261 RECORD CATEGORIZATION 261 Rock 261 Country 262 Black 262 Adult Contemporary 262 Jazz 262 Gospel 262 Classical 262 Other 262

STYLISTIC PREFERENCES 263 Reaching the Buyer 263 Configurations 264 Where Are the Innovators? 264

DEMOGRAPHICS 264 WORLD MARKETS 264

17 - ARTISTS' RECORDING CONTRACTS 267

AFTRA AGREEMENTS 267 Vocal Contractors 267 Scales 268 Acquired Masters 270 Nonunion Recording 271

AFM AGREEMENTS 271 Phonograph Record Labor Agreement 271 Special Payments Fund 272 Trust Fund Agreement 273 Nonunion Recording 274

ROYALTY ARTIST CONTRACTS 275 Types of Deals 276 Negotiations 277 The Issues 278 Term 278 Ex- clusivity 278 Royalties, Advances 279 Production Budget Minimums 279 Creative Control 279 Commitment to Promote 280 Charge-backs 280 Ownership of Masters 280

PUBLISHING RIGHTS, "CONTROLLED COMPOSITIONS" 281 VIDEO RIGHTS 281 FOREIGN RELEASES 282 ASSIGNMENT 283 RIGHT TO AUDIT 283 DEFAULT, CURE 283 ARBITRATION 284 ROYALTY DISCOUNTS 284

xiii

18 - RECORD PRODUCTION 287

PRODUCING TALENTS 287 The Complete Producer 288 The Engineer-Producer 288 The Artist-Pro- ducer 288 The Promoter-Producer 288 The Executive Producer 288 The Coproducer 288 The Line Producer 288 The Non-producer 288

THE INDEPENDENT PRODUCER 289 Getting Started 289 If All Else Fails 290

PRODUCTION DEALS 290 Royalties, Fees 291

THE THREE PHASES OF PRODUCTION 291 PRODUCTION BUDGETING 293 Budget Control 293

CREATIVE CONTROL 296 The Professional Relationship 296

SELECTING THE STUDIO 297 The Recording Process 299

MASTER DELIVERY REQUIREMENTS 299

19 - RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 301

THE MARKETING PLAN 301 Personnel 302 The Concept 302

RECORD PROMOTION 303 Radio 303 Reporting Stations 304 Videocasts 305 Mailings, Telephone Follow-ups 305 Club Promotions 306 Campaign Management 306

PUBLICITY 307 ADVERTISING 307 INTERNATIONAL PROMOTION 308 RECORD DISTRIBUTION 308 Major Label Distribution 309 Independent Distribution, NAIRD 310 Distribu- tion Chains 310 One-stops 311 Rack Jobbers 311 Record Clubs 312

MERCHANDISING AUDIO CASSETTES, COMPACT DISCS AND RECORDS 313 Rack Jobbers 313 Retail Stores 314 Prices, Discounts 315 Point-of- Purchase Stimuli 316 Returns 316

CUTOUTS, REPACKAGING 317 NARM 317

"Give the Gift of Music" 318

HOME VIDEO RETAILING 318 FUTURE OF RETAILING 319

20 - STUDIOS AND ENGINEERS 321

SEMIPROFESSIONAL RECORDING 322 DEMO STUDIOS 323 INDEPENDENT STUDIOS 324 LABEL-OWNED STUDIOS 325 STUDIO OPERATION 325

XIV

CHANGING TECHNOLOGY 326 THE ART AND SCIENCE OF MIXING 327

Professional Associations 328

21 - ENVIRONMENTAL MUSIC 329

APPLICATIONS 329 SERVICE COMPANIES 330 PRODUCTION 331

PART FIVE - MUSIC IN BROADCASTING AND FILM

22 - MUSIC IN RADIO 335

PERSPECTIVE 335 Alive and Well 337

TYPES OF STATIONS 337 AM/FM Stations 337 Extent of Radio Broadcasting 338 Audience Identifica- tion 338 Youth Market 339 Adult Markets 339 Country Music 340 Black/Urban 34 1 Serious Music 34 1 Others 342

NETWORK RADIO 343 STATION MANAGEMENT 344

Sales 344 Engineering 345 Operations 345

MARKET RESEARCH 346 Demography 346 Research Methods 346 Data Interpretation 349 Influ- ence on Music Sales 350

PROGRAMMING 350 Influences 350 Gatekeepers 351 Program Content 353 Record Cluster- ing, Pacing 354 Commercial Loading, Day Parting 355

SYNDICATION 355 Automation 356 Semi-automation 357 Cable Radio 357

23 - MUSIC IN TELECOMMUNICATIONS 359

DEFINITION OF TERMS 359 RECORD PROMO CLIPS 359 Kamikaze Capitalism? 360 Listening with the Eyes 360

STATIONS AND NETWORKS 361 Station Organization 362

CABLE TELEVISION 363 PRODUCING SHORT-FORM VIDEOS 364

The Three Phases of Production 365 Budgeting 366 Artistic Control 366

PRODUCING VIDEO ALBUMS, TV MUSICALS 366 The Production Line 367

JOBS IN TV MUSIC 369 Executive Producer 369 Producer 369 Associate Producers 369 The Director 369 Featured Performers 369 Musical Director 369 Special Material Writers 370 Music Coordinator 370 Music Editor 370 Songwrit- ers 370 Composers 370 Arrangers 370 Copyists 370 Orchestra

Contractor 371 Orchestra Musicians 371 Vocal Group Director 371 Background Singers 371 Choreograptier, Dancers 372 Audio Technicians 372 Production Manager 372

24 - MUSIC IN ADVERTISING 373

PERSPECTIVE 373 Influences on Style 374 Jobs 374

MUSIC USES 375 Station Logos 376

THE AGENCY ROLE 376 ADVERTISING MARKETS 378

Children 378 Youth 378 Yuppies 378 Geritol Set 379 Females 379 Working Women 379 Macho 379 Ethnic 379 Affluent 379 Institutional 380 LCD 380

SPOT PRODUCTION 380 Writing Copy 380 Scoring Music 381 Production Companies 382 Artists and Fees 384

ARTISTS' CONTRACTS 385 PRODUCTION SEQUENCE 387

25 - FILM SCORING 391

CANNED TRACKS 392 SCORING MOVIES, TV DRAMA 392 CHANGING STYLES 393 THE CRAFT 396

Music Applications 396 Spotting the Film 397 Cue Sheets 397

COMPOSITION 399 RECORDING TO FILM 399 THE FINAL MIX 399 HIRING PRACTICES 400 AFM Contracts 400 Package Deals 401 Composers-Conductors 401 Arrangers-Orchestrators 402 Music Supervisors 403 Copyists 403 Or- chestra Musicians 403 Music Editors 405 Sound Mixers 405

PART SIX - CAREER PLAHNING AND DEVELOPMENT

26 - CAREER OPTIONS 409

CREATIVE CAREERS 410 Professional Songwriter 410 Composer of Show Music 412 Composer of Dramatic Music 414 Composer of Educational Materials 415 Composer of Children's Music 417 Composer of Serious Music 418 Arranger-Orchestra- tor 420 Music Editor 422 Music Copyist 423

PRODUCING-DIRECTING CAREERS 424 Music Director-Conductor 424 Record Producer 427 Theatrical Producer-Di- rector 429 Video/Film Director 430

PERFORMING CAREERS 431

XVI

Singer 431 Instrumentalist 433

TEACHING CAREERS 439 Studio Teacher 439 School Music Educator 440 College Music Instructor 442 Music Therapist 444

MUSIC-RELATED CAREERS 445 Words and Music 445 Music Services 449 Music Editor/Music Cutter 449 Music Librarian 449 Science and Technology 450 Managerial/Executive 452 Broadcasting/Advertising 453 Business/Merchandising 455 Legal Services 456 Arts/Graphics 458

STARTING YOUR OWN BUSINESS 458

27 - CAREER DEVELOPMENT 461

DEFINING GOALS 461 Landing a Job vs. Building a Career 461 Using Counselors 463

DISCOVERING YOURSELF 463 CLIMBING THE LADDER 466

Finding Work 467 Networking 467 The Value of Research 468 The Re- sume 468 Gaining Interviews 469

PART SEVEN - APPENDIX

THE CANADIAN MUSIC INDUSTRY By David P. Leonard 472 INTERNATIONAL COPYRIGHT 480 U.S. COPYRIGHT FORM PA 486 U.S. COPYRIGHT FORM SR 494 ASCAP WRITER APPLICATION 502 ASCAP AGREEMENT WITH WRITER/PUBLISHER 503 BMI WRITER APPLICATION 505 BMI WRITER AGREEMENT 506 BMI PUBLISHER APPLICATION 510 BMI PUBLISHER AGREEMENT 513 BIBLIOGRAPHY 518 PROFESSIONAL ORGANIZATIONS 520 GLOSSARY 522 INDEX 532 THE AUTHOR 536

ACKNOWLEDGMENTS

The editors wish to express gratitude to the Editorial Advisory Board mem- bers whose names are listed below. Their generosity in sharing knowledge of many facets of the music business was extremely helpful in the prepa- ration of the Fifth Edition of this book.

Alberta Arthurs, The Rockefeller Foundation

Director for Arts and Humanities

Richard Barnet, James Madison University Coordinator, Music, Business and Technology

David Bartlett, M.P.S.E.

Filmmaker

Ellen S. Buchwalter, The Rockefeller Foundation

Program Associate and Special Assistant to the Director for Arts and Humanities

Brian Chin, PWL America Records, Ltd. A&R Director

Jay Collins, Ph.D, Belmont College

President, AFM Nashville

David Goldberg, Cowan, Liebowitz & Latman, PC, New York City Attorney at Law

Jan Holmquist, Bozell Advertising, Los Angeles

Vice President — Creative Director Geoffrey P. Hull, J.D., Middle Tennessee State University

Chairman, Recording Industry Management

David P. Leonard, Trebas Institute of Recording Arts, Montreal

President

Janet Nepkie, State University College, Oneonta, New York Director, Music Industry

Dr. Alfred Reed, University of Miami

Chairman, Music, Media and Industry

Others who offered useful suggestions, particularly on copyright, were Beverly Hills attorney Jay L. Cooper and California Congressman Carlos J. Moorhead.

We appreciate the information provided by John Parikhal, Steven Ship, Mike Shalett of Spundata, Geoff Mayfield and Paul Sweeting of Billboard,

XVIII

Angela Corio of the Recording Industry Association of America (RIAA),

and Ira Mayer, editor and publisher of Entertainment Marketing Letter

Among others who shared insights on the music business were John Fagot of Capitol Records, Dave Dannheiser of Warner/Elektra/Atlantic, Janet Bozeman of The Country Music Association, John Dobel of Birch/ Scarborough, Walt Love of Radio and Records, B. Aaron Meza, West Coast director of the Songwriters Guild of America, and David Bosca of the

American Council for the Arts.

Also helpful were the American Symphony Orchestra League (ASOL), the Amehcan Society of Composers, Authors and Publishers (ASCAP), Broadcast Music Inc. (BMI) and SESAC, as well as the National Associa- tion of Music Merchants (NAMM) and the National Association of Recording Merchandisers (NARM). Our thanks, too, to the Music and En-

tertainment Industry Educators Association (MEIEA).

Our gratitude also goes to Bruce Stevens, Harley Drew, Monica Logan,

Norm Visger, Al Tavera, Jim Taber, Chris Kershaw, Alan Ett, and Gail Kan- tor.

Special tribute is due those who pioneered in the music business educa- tion field — Dr. William Lee and Dr. Alfred Reed of the University of Miami. They established the first university degree program in music merchandis-

ing, which now includes graduate study. We should all be grateful to Sidney Shemel, M. William Krasilovsky and

the late Paul Ackerman for writing the basic books years ago on the music

business.

Critic Henry Pleasants, author of Serious Music —And All That Jazz, of- fered extremely useful suggestions about this book when it was first writ- ten, as did Robert Young and Adam Somers of the record industry, Mickey Granberg, and John Devarion, Sam Trust, Ralph Peer II, and Jay Morgen- stern from the publishing field.

There were important contributions from attorneys David Ludwick, Mike

Milom and Craig Hayes of Nashville, and Jeffrey Cunard, Washington,

D.C.

The book has reflected insights from Dave Grusin, Tom Scott, the late Nelson Riddle, Patrick Williams, Brian Ingoldsby and Bones Howe.

To all those who worked on this edition, and who shared their knowledge and enthusiasm for the music business — thank you.

The Editors

FOREWORD

STAN CORNYN, President Warner New Media

It's never easy. The road to success in the music business is as rife with ruts and detours as that of any other field. No pat personality profile, no set philos- ophy guarantees entry to the big time. The men and women who've carved out positions of respect and influence in the industry are an amalgam of many different styles, psyches, temperaments. Some have come a long way; others took shortcuts. Some are incredulous that they are where they are; for others, the goal was inevitable.

One certainty unites them all: that nothing in this business is certain. The achievers have all exhibited, in one form or another, an ability to adapt, to al- ter long-standing opinions, to substitute professional intuition for conventional

logic. They take chances. There are two kinds of people in the world, talkers and doers, men and

women of action, of inaction. I don't want to downgrade a very critical ele- ment of this business — one very near and dear to me — that of articulating your point, but for some people that's as far as it goes. Anyone can think of a great idea and pin your ear to the wall detailing it, and most people at some time do. But only doers can take a plan out of the grey matter and put it into action. The individuals who attain some level of leadership in the record com- munity are as good as their word — and deed.

Record companies do not, however, turn people loose in their corridors just because they have a few plans to carry out. Those who have ideas had better also have quite a few facts at their disposal. And it takes years to de- velop a full understanding of all the elements needed to make a hit record, from recording it, to packaging it, to publicizing it, to airing it, to selling it.

Recently, a young up-and-comer suggested an idea he thought was sure- fire — putting flyers into record jackets listing an artist's collected works. He had no idea of the time, money and manpower involved in getting flyers into jackets. His scheme would have raised the cost of an album six cents per unit which would have meant a reasonably large loss of net profit.

We're concerned, then, with the nuts and bolts side of our operation as well as with the more nebulous concept of "art" in our industry, an equally on- going dilemma in the realms of literature and film. Selling music is not exactly selling blenders. I won't deny an album's objective presence. We at Warner Bros, follow that chunk of vinyl's every move until it shows up, hopefully, on our computer runs in the "sold" column. That's what we're here for.

But not completely. We're dealing with artists, personalities — not objects — and that makes this business quite unlike any other. We're selling taste and emotion, not Landau tops or rear-window defoggers. This casts much of what we do in a very subjective light, raising age-old questions about the rela- tionship between art and commerce. If it's not commercial, how do we sell it? Don't certain "uncommercial" works of music deserve to exist on artistic merit

alone? If so, which ones? And how do you persuade the public, even your own staff, of the value and viability of unfamiliar, challenging musical con- cepts?

In contrast to other businesses, some of whom have been in operation for hundreds of years, the record industry as recently as 30 years ago was by

and large a back-room affair. Street-corner groups were sent into dingy one-

and two-track studios with a $400 budget to turn out hits that made millions for the label, but not a cent for them. Serious recordings were never expected

to be profitable.

Today the record business is coming of age and we have the first genera- tion of college texts on the subject to prove it. Those entering the business

have the challenge of giving it new form and focus. An exciting, rewarding,

clearly upbeat experience awaits you. That you can almost be sure of.

. . . and now, some years later . .

In the years since I wrote the Foreword for the first edition of this book — the foreword which, presumably, you've just read — the record business has been slapped silly. For five years (1979-1983), my business was assaulted by such tremors as home taping; video games; rises in copyright fees and the costs of independent promotion; music video and MTV; decline in the "black

vinyl" disc percent of market; the vanishing of 8-track tape; the virtual disap-

pearance of independently distributed labels; and (no kidding) the price-of-

gasoline crisis ("kids can't afford to drive to record stores").

Then, for the remainder of the 1980s, there occurred the financial boom of the Compact Disc, as list prices of albums moved from the LP's $8.98 to the

CD's $1 4.98 ... a huge jump. Discs didn't get any more popular — unit sales stayed fairly level — but the industry experienced great relief.

That relief was somewhat artificial, because doing the same this year as last year is largely unacceptable, either to company owners (who expect growth) or music collectors (who deserve freshness).

During those years, and since, my belief in the future belonging to those who make it happen has repeatedly been rejustified.

I have now spent 30 years in the record business (and am launching new recording forms: interactive Compact Discs, with video on them). In the 30

years I've spent in the business, the business has not gotten any less open to

executives who will do something new. This business is still open to those who will do that new thing, who will create with that new talent, and who will please us old-timers with a fresh way of doing anything in this business.

Many times over the years, young people wanting a job in the record busi-

ness have come to me for advice. Invariably, they speak of their passion for music, their obsession with the record business. I disillusion them. To love the

music makes you a good consumer. To become a good employee, bring to

this industry a fresh skill, and find your own way to put it into operation. In 30 years that has not changed. Nor will it in the next 30.

MUSIC BUSINESS HANDBOOK & career guide

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/ never cared much for poverty. IGOR STRAVINSKY

Did someone say "the music business"? Wliat happened to the art of music? The shortest possible answer to that question is, "About $40 billion!" — the annount of money swirling worldwide around the art and business of music today. But the question of what has happened to musical art in recent times calls for a serious answer, and that is what this book is all about. We will examine not only the radical changes in music and its audiences, but set forth in detail just who produces the music, who "consumes" it, and how the artists and merchants share that $40 billion.

Art and commerce make very strange bedfellows. This linkage, omni- present in the late twentieth century, is inherently contradictory, for musicians and merchants are, in many respects, natural enemies. They hold generally conflicting views on what music should be and do. But when communications technology developed into "mass media" in the 1 940s, the artists and the money changers learned how to find accom- modation. Since World War II, musicians and merchants have been engaged in a red hot romance, living in sin. Their union has begat count- less offspring, without benefit of clergy. In recent years, art and com- merce have been shoved into a kind of shotgun marriage. But this improbable union will last, not because the parties share an eternal pas- sion, but because they can no longer live without each other, at least not in the manner to which they have become accustomed.

Musicians and merchants work together because they share a basic concern: where can one find a regular supply of bread? Despite abun- dant evidence to the contrary, many musicians are almost normal. Like other people, they favor three meals a day and at least minimal shelter

4 CHAPTER ONE

from the elements. Given these mundane concerns for survival, many musicians do all they can to postpone direct confrontation with the real

world, tending to the view that if their music is good enough, the world

will beat a path to their studio door. This happens sometimes. But for

most musicians trying to function as full-time professionals, they find it

desirable, even imperative, to cooperate with a number of helpers to assist them in their careers and their search for steady income. Today,

these musicians' "helpers" outnumber the composers and performers, and they are indispensable in today's world of music-making. The suc- cessful musician can hardly function without the ongoing professional

assistance of a whole array of associates — agents, managers, promot- ers, producers, sound engineers, broadcasters, merchants, attorneys,

business advisors and accountants. These practitioners often see themselves as more important than the musicians they serve. In many respects, they are correct in that conceit. In our consumer-oriented

economy, the packaging of a "product" is often more important than its

contents.

The music business in recent decades has grown so rapidly, it could

be said that no one has yet found time to figure out how to run the store. Music is produced and consumed today at a rate that could not have been imagined before the development of mass communication technol- ogy. The "music business" (the term will be used here to include the art,

the profession and the business of music) now grosses a figure exceed- ing $40 billion worldwide. But of all the recognized professions, of all the

major components in the world economy, the music business is one of

the most inadequately researched. Perceptions of the profession and business of music are usually at

wide variance from reality. This is partly due to the fact that the field is so

diverse and changes so rapidly. But it can be understood. It is argued

that the music business, particularly the record industry, is fundamentally

irrational. But most of what really goes on in the business and the pro-

fession does submit to rational analysis. As with any large and diverse enterprise, a beginning of understand-

ing can occur with an examination of its components. That is our method

here. But before we do this, let's consider the overall magnitude of the music business today. These facts can provide a perspective:

• Americans spend more money buying pre-recorded music and videos than they do going to the movies or attending sporting events.

• One out of five Americans plays a musical instrument. These musicians spend more than $3. 7 billion a year on instruments, accessories and sheet music.

• The annual sales of cassettes, compact discs, records and videos combined with their prime delivery medium, broad-

casting, exceed the GNP of over 80 countries in the United Nations.

OVERVIEW 5

• We o\Nn more radios, record players and VCRs than bath- tubs.

This pervasive interest in music and entertainment begins with a young

audience: by the time a youngster has escaped from high school, he has

spent more time watching television and listening to music than he has in school! The rational mind has difficulty handling this kind of informa- tion. But the facts can be demonstrated. Our task is to discover what they mean.

MORE THAN POP

A glance at the world of music-making today might suggest that the new mass audience is found only in the field of popular music. This is not true. The American Symphony Orchestra League reports that there are more than 20,000 symphony concerts given every year. This particular audience now exceeds 24 million paying customers each season. Opera continues to attract its loyal audience, now being served by more than 300 professional and semiprofessional companies in this country. As for dance (ballet, modern), this ancient art has increased its audience 15 times over since 1950; although its growth has leveled off, a recent study

shows that nearly seven million people attended at least one ballet per- formance in the U.S. during the last 12 months. Regarding the sale of

classical music cassettes, CDs and albums, the RIAA (Recording Indus- try Association of America) reports that sales figures for this repertoire

now exceed those for jazz (5 percent of all music purchases to 4 percent for jazz).

The tremendous growth in music production and consumption is not unique to the U.S. The rate of growth is even faster in some foreign countries, e.g., Japan.

One of the mysteries of the music scene is that many of those involved in it, composers, performers, business people, educators, do not understand how huge it has become, nor do the majority of the par- ticipants understand how it really works. Many artists and music merchants lack even basic information. Worse yet, much of what they believe they "know" is either out-of-date or incorrect. The most disturbing aspect of this lack of understanding is that it is apparent in our schools

and colleges. The result of this pervasive ignorance about the business and the profession has been tragic. Only about 1 5 percent of the musi- cians' union (AFM — American Federation of Musicians) members work steadily in music. Top graduates of our conservatories fail to get their

careers even started. The turnover among personnel already working in the business end of music is alarming. Many of these operatives resign or get fired because they do not know enough about their own jobs to hold them. Employers keep searching for people who know how to func- tion effectively in the field.

Does this all mean that musicians are less than bright? Not at all. What it does mean is that the profession and the business have changed so radically, few people, including the educators, have been able to keep

6 CHAPTER ONE

up with it. As Arthur Schlesinger Jr. and Alvin Toffler have expressed it,

we are all bewildered by the rate of change, the velocity of history. So what does the artist or the businessman do about this predica-

ment? How can one get the information needed to function effectively in this field? Four sources are suggested. Start by reading "the trades," the

music business magazines and papers. Rarely does a music business

office not have these publications in evidence; their presence is as pre-

dictable as a Gideon Bible in a hotel room. Who reads the trades? Everybody, from "gofors" to presidents. Since the business changes so

rapidly, the trades are an indispensable source for current information.

Other sources are the various professional meetings. These national

(and international) affairs are sponsored by industry associations, trade

magazines, sometimes artists' unions. Many of these industry associa- tions will send valuable booklets and pamphlets to interested parties

upon request. Certain information can be found in a handful of books on

such subjects as copyright and pop songwriting.

The most reliable sources of information for the serious student can

be found in a select group of colleges and universities. Following the

leadership of the University of Miami in the mid-1960s, increasing num-

bers of accredited institutions are offering courses and degrees in the

music business field.

Qualified professionals in the business can now be found throughout North America. Many are located in one of the three recording centers — New York, Nashville or Los Angeles. This is because most of the music business is based on the star system — specifically the recording star system. Since it costs so much money now to launch a performer's career, produce a record and a video and finance concert tours, investors are reluctant to put their money behind any individual who lacks star potential. But predicting stardom is usually impossible, so per-

formers and investors continue to gamble in the music game. Since only

a limited number of performers can attain star status, it is fortunate that

the music business system offers many opportunities for individuals needed to help make the system function. No performer today can ascend to stardom or hang there in orbit without an array of qualified

supporting satellites. As this book unfolds, we shall examine how stars and their satellites make the music business work.

ART VERSUS COMMERCE

Many who do not share in the prosperity of the music industry view it with resentment, even hostility. They suggest it be spelled "the mu$ic

bu$ine$$." Some of the most bitter critics are found among the members of the American Federation of Musicians who are unemployed or under- employed. While most of these musicians are not even seeking full-time

employment in music, the union comprises a large pool of frustrated pro-

fessionals ("I've got a diploma from Juilliard but I clerk at Sears to pay

my rent. How come this kid banging on that drum set makes $100,000 a year?"). Another group of unhappy professionals is found among the nation's music educators ("Most rock and roll is just pornography for the

OVERVIEW 7

ears. How can I interest my junior high kids in anything subtle?"). Equally concerned are the graduates of our universities who majored in music education ("I can't find a job teaching school, and my university didn't offer one course in the music business. Where do I turn?"). Some of the strongest resentment of today's popular music comes from classically- trained singers ("What do you mean, 'singer'? Most of those pop recording stars don't know the first thing about tone placement or breath control."). Still further criticism of the popular music business comes from jazz musicians and jazz fans ("Jazz has lost its purity, its honesty. Every-

one's gone commercial . . . and those screaming amplifiers!") If the pop performers are put down, so are the pop composers. Those

familiar with the great standards that came from Broadway shows and Tin Pan Alley until rock took over look upon today's popular song reper- toire as a vast wasteland.

Critics of contemporary music are sometimes just as harsh when observing the blatant commercialism in the so-called classical field. What is more embarrassing than to hear an opera singer trying to swing a popular song in full operatic voice? The spectacle is equaled only by the pop crooner who attempts to sing The Star Spangled Banner. Wide- scaled compromise of artistic standards in the classical field is found among our professional symphony orchestras. These groups are trying desperately to reduce their deficits by sponsoring "pops" concerts. Ludi-

crous bookings sometimes result ("Hear the Colorado Symphony with Vincent Price in 'Halloween Night'"). The scramble for an audience includes musicians and agents from every sector of the musical world.

Criticisms of the cheap and tawdry in the music business are richly deserved. Too much of the material is derivative and uninspired trash. Too many untalented and overhyped composers and performers enjoy undeserved "success," at least for a while. Far too many genuinely tal- ented people have not found their place in the profession. It is not unusual to hear musicians active in recording refer to themselves as musical whores, admitting they sometimes prostitute their talents to turn a musical trick for their employers. Unfortunately, talent is only one among many requirements for success in a business more concerned with mass sales than with art. As long as the music industry remains per- sonality oriented, there will always be "undeserved" successes from a purely musical perspective.

These are some of the negative aspects of the music business. But there are positive things to observe, too. From the management side, it is clear the industry is now run more rationally. Corporate stockholders in the entertainment industry today demand cost-effective management.

From the artistic side, we remain surfeited with minimal-talent per- formers, no-content songs and cliche-filled videos. Rolling Stone magazine, relentless advocate of rock and roll, says that too much of today's music suffers from a "glittering vacuity." Apt phrase.

Younger audiences continue to be drawn most to whatever new enter- tainer can appear more outrageous than the last. But as the young audience matures, tastes change. Demographic research shows that after kids leave their teens they become increasingly attracted to enter- tainments that exhibit, not just "style" and hype, but artistic content,

8 CHAPTER ONE

perhaps even some meaning. This is good news for the creative and artistic communities, in that the young population is decreasing in size and the more mature population is growing in numbers. This demo- graphic curve is thus generating a larger number of buyers who favor more mature entertainment.

Another positive aspect of the music business is that musicians are

no longer restricted in their expressions by the laws of acoustics. New electronic instruments are invented every year, and they are limited in their expressive capacities only by the imaginations of their operators.

They offer a composer or video producer more knobs to turn than 1 fin- gers can handle.

In our search for positive things to observe about the music business

today, can we come up with something complimentary for our pop song- writers? Perhaps the reason many new songs sound bad is that they are. The truth is that the insatiable demands of the marketplace exceed the creativity of the suppliers. At no period in music history have com- posers been expected to create several hundred new songs every week. Any turn of the radio dial proves that such an achievement is impossible. But fans crave today's musical trends, sounds and styles more than "quality." Pop music has always seen "disposable" songs promoted and consumed alongside "classic" songs.

Defenders of contemporary music argue that some of the songwriters since the early 1960s rank with the Gershwins and Kerns of earlier decades. Much of the Beatles' best work will last as long as the great Broadway show standards, as will that of Michel Legrand. What about the film composers? Until the 1960s, most of them remained reluctant to abandon reliance on the cliches of post-romanticism. Once they did, the quality of film scoring began to reach new heights. The best film com- posers today are producing music of a quality superior to the work of many so-called serious composers.

As for the dominant musical style of our time, rock and roll, it is the most ridiculed, the most loved and the most profitable of any genre in the history of music. Hundreds of millions of its fans, now worldwide, react to it with a devotion tantamount to religious ecstasy. But ridicule of the

music and its audience reveals arrogance. We live in a time uncongenial for snobs. The best of rock is as good as, sometimes better than, other popular idioms.

Quite apart from considerations of musical quality, the texts to some of our pop songs, particularly those from Broadway musicals, contain more lyricism and meaning than many opera librettos.

FINDING A PAYING AUDIENCE

History books provide only spotty information on how the musician fared in earlier times as a professional. Music historians, most of them tenured behind the protective walls of universities, have rarely shown concern for the bread-and-butter needs of the working musicians. This traditional lack of concern for the professional status and financial condition of musicians dates from earliest times. In the beginning, music-making was

OVERVIEW 9

undertaken by individuals and groups simply for their own pleasure. The performer was also the composer. If there was an audience, it was only a social gathering; it did not occur to the early musicians that they might

develop an audience that would pay to hear them sing their songs. Among the first important professional musicians in Western civiliza-

tion were the mimes of the Greek and Roman theatre. They were singing-dancing actors. Roman law held them to be disreputable types, calling them infami (outlaws). In the Middle Ages the minstrels of Ger- many and the jongleurs of France were the first professionals. Accounts of their activities read like a review from Variety. These musicians were actually vaudevillians, and their acts might include, not only singing and

dancing, but juggling, card tricks, even knife throwing and trained ani-

mals. Show business had begun — in the Middle Ages. A handful of musicians involved in secular music managed to earn at

least part of their livelihood during the Middle Ages and Renaissance periods. But in the religious sector, almost no musicians enjoyed real

professional status. The choirboys and men of the Western church sang for free. The male voice parts were usually sung by resident monks or other church worthies who performed in the cathedral choirs as just another part of their Christian service. Professional composers in the religious field seem to have first appeared in Paris around 1100 A.D. at the Notre Dame cathedral. But musicologists cannot provide a satisfac- tory account of how the profession of composing music took shape in the following centuries. To this day, church musicians in most communities

are either unpaid or paid below professional rates. It would appear that

they are still expected to offer their professional services for the glory of

God. That may be an admirable calling, but it doesn't pay the rent. Conditions for the working musician were somewhat better in Ger-

many in the fifteenth and sixteenth centuries. The tradition of guilds included the music "trade." Musicians' guilds influenced, not only working

conditions, but creative and artistic standards. These early guilds were active in organizing composition and singing contests and formulated elaborate rules for them (an accurate account of these proceedings may be found in Richard Wagner's opera, Die Meistersinger Von Nurnberg).

In the following pehod in Europe, increasing numbers of artists were employed by nobility as house musicians. Composers and performers were put on the royal payroll to make music in the salons, ballrooms and chapels of these fancy pads. But nobility looked upon these artists as servants, and they were expected to enter the buildings of these royal

estates from rear doors. Rehearsals of the resident orchestras and opera companies would be delayed until the hired hands had cleaned the rooms, polished the boots and shoveled out the stables. During Haydn's 30-year tenure at Esterhaza, one wonders if he also did win- dows. Despite some advances in status, modern-day musicians sometimes complain they are still working too close to the barnyard.

In our own time, the champion for elevating the status of the music profession has been the American Federation of Musicians of the United

States and Canada. The 450 locals of the AFM receive requests regular- ly from sponsors of civic events, political rallies and community benefits. These requests are usually sung in the same key: ". . . please, would

10 CHAPTER ONE

you just send over some musicians for our event? They'll really enjoy it and, of course, we'll have some nice refreshments for them." Most musi- cians have been willing to play benefits, but they have also been exploited by those who would have them "share their art" just for the inherent pleasure of it. AfW\ locals have developed an effective response

for unreasonable requests of this kind: they offer to supply union musi-

cians without fee, provided the other trades and professions — stagehands waiters, teamsters, bartenders — also work without pay. It is a fair offer; there are few takers.

Gradually, musicians acquired recognition as professionals with the

development of a new phenomenon, the paying audience. This first occurred in the musical theatre and opera, particularly in Italy and Eng-

land. When the public began to pay its way into a room to hear music, the music business had begun. By the 1800s, the public had accepted the idea that you had to buy a ticket to hear a professional. Increasing

numbers of paid concerts developed, not only in European cities such as

Vienna, London and Paris, but in New York, Philadelphia and Boston. We lack reliable accounts of who organized and promoted the earliest

paid employment for professional musicians. Perhaps the earliest notable artist's manager or agent was Mozart's father, Leopold Mozart. Young Mozart's talent was discovered by his father before the youngster had barely graduated from diapers. When Wolfgang was six years old, father Leopold started presenting his son to all of Europe, peddling the

kid's talent like the valuable merchandise it was. But Mozart's father did

not teach his son much about career management. Mozart junior earned considerable sums in his short lifetime but seems to have died a pauper. Mismanagement of money and careers is not unique to the twentieth century.

A more recent ancestor of today's music entrepreneur was the circus genius, P. T. Barnum. In 1850, when Jenny Lind, "The Swedish Nightin- gale," came to America, Barnum presented her around the country as if she were a star acrobat. Barnum's bookings earned the artist $130,000

in her American tour, big money indeed in those days. Since the days of Barnum (and Barnum was right), the development

of a growing audience for music took place in a circus atmosphere. The

public likes a good show, and the music business grew, even in the clas-

sical field, in a razzle-dazzle, show biz atmosphere. At the same time Barnum was touring opera star Jenny Lind, other entrepreneurs were developing enthusiastic audiences for that unique American contribution

to theatre — the minstrel show. This is not the place to treat the racist overtones of that phenomenon; our interest in minstrelsy here must be

limited to how it fostered the development of the popular music business. While most of the performers were white, increasing numbers of blacks

began to take part (as early as the Middle Ages, musicians from Africa

were in Europe entertaining whites). But it was not until the mid-nine-

teenth century, with the development of the minstrel show, that blacks

began to find a place in the white musical world as full professionals.

This development turned out to be of historical significance, for it would

be impossible to even conceive of music in the twentieth century without

the pervasive influence of black musicians. The brilliant American histori-

OVERVIEW 11

an-critic Henry Pleasants has classified the music of the twentieth centu- ry as the Afro-American epoch. Probably no full understanding of the music of our time, popular or classical, is possible for anyone who has not read Pleasants' landmark book, Serious Music —And All That Jazz.

The increasing popularity of minstrelsy in the 1850-1900 period enlarged public awareness and appreciation of popular music and the entertainment business. Near the end of the Reconstruction period, the size and affluence of the middle class grew. By the 1890s, the piano was a standard adornment in the parlors of upper middle class families. On thousands of piano racks across the land, one would probably find, in addition to some Stephen Foster songs and a hymnal, a copy of After the Ball. The year was 1892, and this song was the first million-seller (in a 12-month period). It eventually sold 10 million copies of sheet music.

By this time, a number of large publishing houses had developed, e.g. E.B. Marks, Witmark Bros., T. B. Harms, Leo B. Feist, Mills Music and Shapiro, Bernstein & Co. Some of these firms remain active and pros- perous today. These popular music publishers took pride in being able to spot potential hits. When they couldn't find them, the publishers wrote the songs themselves or put composers on weekly salaries to work in- house.

These late nineteenth century publishers developed, through trial and error, the merchandising methods that prevailed until radio came in strong in the 1920s. Songs were introduced in a number of ways. In the final days of minstrelsy (which died of its own excesses around 1900), song pluggers would attempt to persuade the performers to use material coming off the presses. When vaudeville and burlesque began to dis- place the minstrel shows, pluggers contacted the headliners and even the lesser acts to try to get them to use the songs their firms were push- ing at the time. A publisher who would come up with a piece of material that some vaudeville headliner like Al Jolson or Eddie Cantor would sing was almost assured of a hit, for these were the superstars of their day (1920s, 1930s).

In the 1920s, the music industry felt the huge impact of new media of mass communication. The sale of records was excellent; the first million- seller came along. Industry leaders misjudged radio broadcasting; they held a view exactly opposite the conventional wisdom of today. When radio started in the 1920s, the publishers fought it, believing that "giving music away" through this medium would hurt sheet music sales. Overex- posure, they argued, via radio broadcasting was killing songs in six weeks; potential customers could not get down to the store to make a purchase before the song's popularity had waned. It should be pointed out that publishers' incomes from broadcast performances at that time were zero.

Another significant development in the entertainment field occurred in 1927 when "the talkies" began. Movie producers discovered, with the very first sound film (a musical titled The Jazz S/ngfer starring Al Jolson), that audiences would buy a lot of theatre tickets to hear songs sung on "the silver screen." The major studios began scrambling for synchroniza- tion rights to enable them to turn out musical films in rapid succession.

During The Great Depression of the 1930s, million-selling records dis-

12 CHAPTER ONE

appeared, and sales of sheet music also collapsed. Attendance at vaudeville theatres dropped too, with the growing popularity of the movie

musical. Concurrent with these depressions in the music market, radio broadcasting grew rapidly. Music publishers now shifted their attention from plugging vaudeville performers to the new stars of radio. The net- work broadcasts at that time emanated mostly from New York, Chicago and Los Angeles. Publishers closed their regional offices across the land and focused their plugging efforts on these new broadcasting centers. It worked. The publishers required about 24 hours to discover that they should point their promotional efforts toward the big bands and their singers who had weekly, sometimes nightly, radio broadcasts (which, at that time, were referred to as "remotes"). Songplugging had grown from

a local to a national enterprise with the development of network radio.

Publishers were not the only ones to benefit from the coming of net- work broadcasting. Big bands became name bands because of network radio. Then the name bands became the record stars. Management noticed that the best-selling big band records featured the band's singer.

So alert talent handlers pulled the singers off the bandstand (Frank Sina- tra, Doris Day, Ella Fitzgerald, etc.) and started them working alone — for much more money. This was the beginning of the present era of the dominance of the popular singer; they became the new stars and super- stars, with the help of recordings and films.

During World War II, the whole world seemed to discover the appeal of America's popular music. Much of this worldwide popularity was fos- tered by the Armed Forces Radio network. With over 90 stations broadcasting American-made records around the world, millions of lis- teners, not just the G.l.'s for whom the broadcasts were intended, heard the great entertainment available from this kind of music. By the late

1940s, the American style had become a wor/d style. And so it is today. When the G.l.'s returned home, they bought large quantities of

records. Music instrument factories, shut down earlier to produce weapons, were now spewing out guitars, organs, pianos, wind and per- cussion instruments in quantity. The music industry was reaching a mass market.

Record companies were moving millions of singles in the 1940s. When Columbia came out with the long-playing record, the music busi- ness again experienced a development of overwhelming significance.

Now, instead of two songs per record, songwriters and publishers could

place 12 songs on each release. Income could thus be increased by 600 percent. On the new LP, record buyers could hear an entire Broadway show; opera buffs could carry home an entire opera in a box; complete symphonies could easily fit on one LP. The dollar volume of classical records grew to 1 percent of the market.

Concurrent with the growing popularity of LPs was the increasing availability of low-cost tape recorders. Add to this the boom in hi-fi. For relatively low cost, consumers could hear recorded or broadcast music

with a quality of sound that was better, audiophiles believed, than their local concert hall.

The music business was getting so good, it attracted not only new venture capital, but a new breed of merchants, some of whom knew

OVERVIEW 13

what they were doing. New distribution and merchandising methods were developed. The most significant marketing development at the time was the discovery that people would buy records wherever they shopped. Enter the rack jobber. This new kind of music merchant set up record racks in supermarkets, variety stores, department stores — any- where shoppers passed by. So it was, by the 1960s, music came to be vended like cornflakes.

Large corporations began to notice that people in the music publishing and record business were making more money than the filmmakers. They decided to buy in. By the 1970s, even the conservative Beverly Hills bankers got the message: music enterprise was now an acceptable risk. They began making loans to music publishers, record producers and artists' managers, types of people they used to classify with street vendors. The main attraction to these new investors was record produc- tion. In what other kind of business enterphse could an individual or a bank invest, say, $20,000 in a master tape, then receive from it royalties one hundred times that amount, if the record hit? To the inexperienced investor, the music business began to look like a money tree.

Investors of all types tried to buy into the music industry, whether or not they knew anything about its hazards. The buying and selling of music companies by the 1970s resulted in the majority of firms becoming controlled by a handful of giant corporations. This trend continues, as major labels buy up smaller, independent record companies and giant multinational firms swallow many major labels.

INFLUENCE OF MASS MEDIA

The unique phenomenon in music in the twentieth century is the discov- ery of new audiences. The world has always been full of music lovers, but it was not until the development of mass communication technology that so many "new" audiences were uncovered. Through mass media, everybody cou\6 be reached, most of them at the speed of light. Until the 1920s, most professional music-making was addressed to a small, elite audience that was accustomed to buying tickets to attend the opera, the symphony, perhaps a Broadway musical. When radio, records and tele- vision came along, that elite audience not only continued, it grew. But now it was joined and immeasurably augmented by whole new audi- ences for folk music, country and western songs, blues and jazz. Mass media forever changed the size and composition of "the music audi- ence," and merchants were quick to respond to the new millions of paying customers.

Diverse as these audiences are, the largest segment of consumers is still found "in the middle." For now, we shall refer to this group as the popular audience. Music addressed to this audience experienced its greatest change in the 1950s when performers such as Elvis Presley began to merge the styles of country, gospel, rhythm and blues. Then the Beatles came along and the new style rocked and rolled around the world like a sonic boom. An entire generation of music lovers was electri- fied. Mother and father were outraged at first by this aural corruption. But

14 CHAPTER ONE

the Beatles soon won over just about everybody. This can be attributed to their natural vocal, instrumental and songwriting talent, brilliant record

production, and personalities that viewed the whole phenomenon with a disarming sense of humor. Perhaps rock and roll wasn't so outrageous

after all, if you didn't take it too seriously.

The Beatles had a great sense of theatre, as did Elvis. Without know-

ing it, they established what might be called rock theatre, where the

performer engages the eye as much as the ear. Mick dagger adopted James Brown's moves into his own style and created modern rock's defi- nition of the frontman. David Bowie later re-defined rock performance as

theatre, with the electrifying singer assuming his song characters on

stage. Purists abhor this mix of music and show business, but it has been a favorite of audiences since the Middle Ages.

THE ARTS AND ENTERTAINMENT INDUSTRY

Rock theatre and other aural/visual combinations are going stronger

than ever, with the clearest evidence found in music videos. But here we transcend "the music business." As Robert Hutchins taught us, nothing

can be understood in isolation; our study must embrace all the other sec-

tors of the arts and entertainment field that impact on music.

We shall see the interrelatedness of the classical tradition, Afro-Amer- ican influence, recording technology, telecommunications and computer

science. Artist, merchant and scientist are working side by side, building

on the past, creating the future.

The Home Entertainment Center — Combinations of the arts and com- munications technology are now found scattered throughout households or combined in what some call "home entertainment centers." They offer infinite diversions, with the push of a button, from tape deck, compact

disc player, radio, TV, VCR, home computer (with software), perhaps a video camcorder. The family may also have an inexpensive receiving dish pulling in programs and information bounced off orbiting satellites.

The family TV set may even be "interactive," where the viewer can deter- mine from the images called up how to shop, bank, vote — or just be entertained.

A musical family with such an entertainment center may even have a low-cost synthesizer capable of assisting in composing, orchestrating,

printing music, recording and performing it with full "orchestra."

So the music business is but one component of the arts, entertain- ment and communications industry, the whole often locked together with

a few microchips. This amalgam is complex and ever-changing. But it

can be understood when examined as a "system," comprised of a num- ber of subsystems. That is our approach in the chapter following.

THE MUSIC BUSINESS SYSTEM

Seek simplicity— and distrust it. ALFRED NORTH WHITEHEAD

It has been alleged that the music business is now too big and too compli- cated to submit to systematic investigation. More than a few observers have characterized the industry as one big zoo. This characterization of the business is often close to the mark. On the business side, a sizable percentage of individuals in the field appear to have come directly into their executive offices from careers in the used car market. As for the artists, many seem to do all they can to avoid reality. The music business does appear to have more than its share of unstable personalities — nuts and geniuses work side by side in the peculiar enterprise of selling dreams. But if the business were dominated by irrational types, it could not really function today, because the apparatus is so large and complicat- ed. Now more than ever, music is truly Big Business.

The industry can be conceived as being comprised of two basic ele- ments: the musician and the audience. Drawing them together is the business of music. Despite evidence of a prevailing anarchy, the music

industry operates much like other large commercial enterprises, for exam- ple, the automobile business. The main difference between the two is, of course, the product. The car people change models only once a year; the music industry changes its product every day. The car salespeople have time to figure out how to move their merchandise. Musicians and their business associates don't seem to have time to visit the rest room. And if they do, they take along a trade paper to study the latest charts. In exam- ining the business aspects of music, it is this rapid change of "product" that makes it unique.

THE MUSIC BUSINESS "SYSTEM" and its Principal Subsystems

SONGWRITERS, r-l AUTHORS, COMPOSERS

sign contracts with —

ATTORNEYS negotiate the contracts

ACCOUNTANTS count the money

Fig. 2.0

PUBLISHERS license songs to —

RECORD COMPANIES sign artists, producers to turn

out recordings, videos

BROADCASTERS program the records, videos

{

ASCAP, BMI, SESAC collect performance fees

PRODUCERS, AGENTS contract for artists, writers,

directors, others

ARTISTS, MANAGERS engage support personnel

ARTISTS

perform

THE PUBLIC

buys the tickets

DISTRIBUTORS wholesale the mer-

chandise

MERCHANTS retail the merchandise

THE PUBLIC buys

THE MUSIC BUSINESS SYSTEM 17

GETTING THROUGH THE MAZE

Because of the unique problems of marketing music, practitioners have developed, through trial and error, a modus operandi. In short, they fig- ured out a system. More accurately, the music industry today is a group of subsystems. Each of these subsystems can be analyzed and understood.

This study will proceed accordingly and examine how each subsystem relates to the other components comprising the music business.

Before analyzing these relationships in detail, let's examine two differ-

ent ways of viewing the industry as a whole. First, study the flowchart at the start of this chapter. It illustrates graphically the music business sys-

tem and its principal subsystems. This flowchart can serve as a framework on which to hang additional subsystems as our study goes for-

ward.

A second way of grasping the big picture is to examine the sequence of events that often occurs as a new song finds its way to market. As you will observe, the following list sets forth much of the same information appear- ing on flowchart. Fig. 2.0.

1- The composer writes a song, signs with a publisher.

2- The publisher persuades an artist (or that artist's producer) to record the song.

3- The record company produces a record and, probably, a video version of the song.

4- Promoters persuade programmers to broadcast the record- ing and the video.

5- The record company ships the merchandise to distributors who sell it to retailers.

6- A talent agency contacts promoters, books a concert tour. (Meanwhile, the attorneys are negotiating the contracts.)

7- Concert promoters enlist cosponsors, sell the tickets.

8- The road manager moves the people and the equipment.

9- The concert production manager dresses the stage, lights it, reinforces the sound.

10- The artists perform; the performing rights organizations col-

lect performance royalties.

11- The accountants count the money, the participants pay their bills

12- The government collects the taxes.

And, we could frequently add, psychiatrists seek to heal those who have taken part.

If we were to add to this scenario all the related activities and support personnel that become involved, we would have a cast of thousands. Most of the actors in this drama know little about what the others are doing, the concurrent subplots and bit players. But it is likely that those

18 CHAPTER TWO

who rise to a higher station — a better job, more money — study the other facets of the music business system. Some who have done this have become leaders in the field.

Universities have schools of business management which attempt to teach their students how to run complex enterprises. Business manage- ment textbooks employ a nomenclature and taxonomy that terrifies most

musicians. One of the favorite terms in describing administrative method- ology is "systems management." Fat textbooks treat the mystique of

systems management with austere language and reverence. But when the meaning of the term is reduced to simple English, systems manage-

ment means the people know what they are supposed to do, their associates understand their roles, and the participants have figured out

how to work together effectively. Not exactly a new idea in administration. Another concept of administration also has a rather arcane title: "man-

agement by objectives." Books have been written about it, too. At the risk

of incurring the wrath of professors of management, it could be suggested

that "management by objectives" really means that people can save a lot of time and money by directing their energies toward what they are really trying to accomplish. This sounds absurdly simple, of course. But most of

us waste too much time because we have not really defined precisely what we are trying to do.

INFORMATION HANDLING

In recent times, available information has more than doubled every ten

years. Old methods of keeping informed are hopelessly inadequate today.

This is as true for those in the music business as it is for more rational

types. Today we are all snowed by paper blizzards. New approaches to information handling had to be found.

Enter the computer, with its data processors and number crunchers.

These magic boxes helped us find our way to the moon, but experts insist

the microchips implanted in today's devices are but lJ\o6e\ Ts when com-

pared to what lies ahead.

The exponential increase in new data and data controls have created a post-industrial society many sociologists now call "The Information Age." To function in this environment, educators believe every school child must

become "computer literate." Musicians and merchants alike are confronted with information systems

never dreamed of by Arnold Schoenberg or even Robert Moog. Besides

those working in such fields as accounting, audience research and music

merchandising, the composers, instrument designers, choreographers,

and video "imagers" all now invoke computer-related equipment to enhance and accelerate their creative acts. And the use of computers in

recording and sound processing is universally accepted.

The Information Age presents musicians and merchants with chal-

lenges not yet imagined. Already overburdened with demands that they acquire competence in the arts and commerce, aspiring music business

people must now somehow find the time to gain an understanding of how to control the latest technologies.

\Ne have no art. We do everything as well as possible. BAUNESE MUSICIAN

The music business grew so rapidly, companies could not find enough qualified people to handle their affairs. The fast talkers and snake oil peddlers worked their way into executive offices; some still hide out there. On the artistic side, the shortage of genuine talent has been even more obvious. We are familiar with the results of this incompetence at all levels of the music business: thousands of pointless songs, weak records, wasted investments — and countless numbers of frustrated individuals whose careers go nowhere. But criticism of the music busi- ness in earlier years should not be too harsh, for never before had art and commerce been forced into such a strange new alliance. Certainly our schools and colleges have not been much help, until recently, in preparing people for these new kinds of careers.

As the industry grew, companies had to accept people walking in off the street, then train them in-house, on the job. A system centuries old was rediscovered: masters taught apprentices. It was a slow and expen- sive process. It was also inefficient. Most of these novices learned only one job at one company. When they were let go, as so often happened, they had to start all over again, if they could find another job, and try to learn how their new employers operated. Even today, this hit-and-miss, on-the-job training causes wholesale "floating" of music business per- sonnel. At all levels of the industry even very talented, creative individuals get fired and have to change careers, for most employees in this field lack the solid educational backgrounds demanded today by business enterprises.

20 CHAPTER THREE

The music industry has always involved rivalry between the artists and the merchants for positions of power. But when industry growth exploded after World War II, the artists and creative community suffered loss of power to management. Music business executives discovered their own survival as managers became increasingly dependent on out- side professionals who knew little about music — the lawyers and accountants. Add to this list of "outsiders" in recent years the MBAs, yet another kind of specialist lacking sensitivity, to hear musicians tell it, for

music and related arts. The accountants, lawyers and the MBAs contin- ue to hold most of the top positions in the music industry — and continue to tangle with the artistic community about how the music business should be conducted. That is the bad news. The good news is that help did finally arrive, from a predictable source.

MUSIC BUSINESS STUDIES IN HIGHER EDUCATION

As the music business became larger and much more complex, it required a new kind of leadership. Ideally, the industry called for individu- als possessing competencies in such diverse fields as music, business

administration, accounting and law. The only places such a broad educa- tion can be acquired are colleges and universities. Certain specialized

institutes also contribute importantly. For decades these obvious sources

for music industry leadership remained ignored, partly because most of

the executives running the music business lacked awareness of the val-

ues of higher education.

Pressure for new curriculums in the music business came from sever- al sources. The students themselves, having minimum success finding traditional music jobs as teachers and performers, observed the bur-

geoning business of music and started asking their instructors how they might prepare themselves for jobs in recording, broadcasting, music

publishing, etc. Most college faculty members lacked experience in the "commercial" side of the profession. But a handful of their colleagues did

have backgrounds in such fields as music merchandising and recording.

Some were jazz educators who knew the "gigging" side of the music pro- fession. This group of college teachers heard the students' concerns,

perceived the need, and began to develop music business courses, then

even complete degree programs. These on-campus instructors were often assisted by local music merchants, broadcasters, sometimes entertainment lawyers.

Thus, music business studies in higher education were born. After a

slow start, we now have over 200 universities, institutes and colleges offering educational programs designed to prepare the new profession- als for positions of leadership in the music and entertainment industries.

This field of education is relatively new, and faculty continue to search

for the "ideal" curriculum. But there can be no all-purpose program of

study because the courses and labs are offered, sometimes in music

departments, sometimes in schools of business, sometimes in separate

"record industry" or "commercial music" departments within a university.

These educational offerings are diverse, but most of them include

studies in the fields the new leadership must understand — not just

Janet Nepkie, left, Director, Music industry, State University College at Oneonta, New York, and Mary Anne Nelson, third from left, Director of Studio Music Program at College of

Saint Rose, Albany, New York, with students.

Students at Trebas Institute of Recording Arts, Montreal, Canada. At right,

David P. Leonard, President.

22 CHAPTER THREE

music, but business administration, accounting, marketing, business law

and copyright. In addition, many colleges and technical schools now offer studies, even degrees, in recording technology and audio/video production.

Graduates of these programs cannot know it all, of course. But they are far better prepared than anyone else to meet the wide-ranging demands of today's music industry.

These young people can be called "the new professionals." Here are the new leaders in the art and business of music. Their most striking attribute is their versatility. The breadth of their music business studies helps them perform effectively, not just in one area, but in all the major facets of the field, ranging from merchandising to recording, from artist

management to broadcasting.

HELP WANTED!

College study of the music business is supplying increasing numbers of industry leaders. But the field attracts more aspiring professionals than it can accommodate. Part of this attraction has been artificially induced through show biz movies and TV shows young people have seen since childhood. The music and entertainment fields don't look like hard work or heartbreak; it all looks like so much fun! If one's professional goal is just to have fun, better to become a golf pro.

The reason many aspirants fail to achieve their goal is not so much a shortage of opportunity as a lack of sufficient talent and an understand-

ing of how the music business system works. But many ambitious newcomers do make it, of course. Why? Luck? Timing? Education? These factors have helped launch many successful careers in both the music and business ends of the field.There are four other factors con-

tributing to the success of those who "win" in the music business:

1- They are strongly motivated; they really want to win.

2- They are talented — and they surround themselves with talented associates.

3- They persevere; they hang in there until they win.

4- They get the important information.

If you feel you need help with the first three items, you may have to alter your genes, or see your shrink. This book will deal only with item num- ber four The music business offers excellent career opportunities for the really talented individual, provided that individual gets the important

information — and acts upon it. That information is offered here.

WOMEN IN MUSIC An equal place for women in music was delayed for centuries for a num- ber of socio-historical reasons, the strongest of which was probably the Western church, which denied females the right to sing and play instru-

ments in Christian services. This prohibition also tended to limit women's

THE NEW PROFESSIONALS 23

opportunities as composers and directors. But in more recent times, it is news to no one that women have figured prominently, alongside men, in all kinds of musical activity, particularly in secular music.

It is not generally understood that, in the business and administrative sector of the music industry, women have been active, even prominent, for many years. They still lack their equal share at the middle and top management levels, but a number of women can be identified who have had executive positions in music at the highest level. Among them are those pictured below.

Increasing numbers of women are rising to important positions in the music industry in such fields as audio engineering, record and video pro- duction, publishing and broadcasting. In spite of the success stories, however, discrimination can be a problem. Women are still under-repre- sented in record company upper management (out of a total of 249 vice-presidents at 12 labels, 45 are women, according to a recent sur- vey). Men are rarely found in publicity jobs. Blacks are usually found in jazz or urban contemporary positions. Older people are often discrimi- nated against unless they are record industry veterans.

JOB OPPORTUNITIES

According to Debra Levey, president of the New York-based Stratford Search Group — a recruiting firm specializing in the music industry — the greatest opportunities in the music business for men and women are in areas such as marketing, finance, video, merchandising, management information systems, new business development, rights and clearances, forecasting, sales, and the international phase of the business. The largest number of entry-level opportunities come from the administrative and support services quarters.

Levey advises, "Today's music business depends on a finely tuned collaboration of talented analytical and intuitive thinkers working in uni- son. . . .One must be capable of great flexibility and high energy, vision, motivation, clarity and tenacity in the face of overwhelming competition."

It appears certain there will continue to be opportunities throughout the industry for those who are prepared to compete, who are motivated, talented, acquire the necessary information — and who hang in there until they succeed.

Theodora Zavin,

BMI Special Counsel

Frances W. Preston,

BMI President and CEO Gloria Messinger,

ASCAP Managing Director

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OFESSIONi SONGWRITING

There should be a single Art Exchange in the world, to which the artist would simply send his works and be given in return as much as he needs. As it is, one has to be half a mer- chant on top of everything else, and how badly one goes about it!

LUDWIG VAN BEETHOVEN^

THE MARKET

Everything begins with the songwriter. One creative individual must first produce before anyone else in the music business can make a sound. Or a dollar. New songs are the lifeblood of the industry; they must be continually pumped through the music system. The music industry con- tinues to thrive on the great standards, but even these wonderful evergreens are not immortal. Each generation hears a different drum- mer; it chooses its own standards from the current repertoire, which is ever renewing itself. Besides changing preferences, the demand for new songs has increased exponentially, because mass media have expand- ed the audience tenfold. The music business gobbles up hundreds of new songs every week.

If the demand for new songs is insatiable, why do so many amateur songwriters fail to find acceptance for their material? Many reasons can be identified for a new writer's lack of success. This book will identify them, then show how the really talented writers can get started as pro- fessionals.

Publishers and performers are inundated with submissions. Eager young songwriters descend on the recording centers like locusts. Proba- bly ten percent of the people flowing through the Greyhound stations in Nashville and Hollywood are carrying a suitcase full of demo tapes.

1 -Letter to Franz Anton-Hoffmeister January 1 5, 1 801

28 CHAPTER FOUR

Major publishers and record companies receive an average of 200 unsolicited songs each week. The problem is not that the industry lacks enough songs. The omnipresent concern is that they cannot discover enough good ones. We have abundant proof of this: a large number of weak songs get recorded. This is not so much because the producers lack taste (although they are not immune from this). Rather, it is that they publish and record the best they can find. When a poor song gains initial acceptance, everyone gets hurt. The powerful promotion machinery of a rich label can often crank up an initial enthusiasm for a new record. But note how quickly a weak song disappears from the charts. Most poor songs have a life expectancy of about one month, if they are lucky. That means that every individual and every company that has anything to do with that weak song loses money. So everyone begins the search anew for material good enough to survive long enough in public favor to gener- ate enough income to at least break even.

Is it possible to define a "good" song? Yes, if you know what to look for. Can anyone predict professional acceptance? Quite often, if you know how. Does anyone know which songs will become lasting hits? No one on this earth. Can a creatively talented songwriter break in? Very likely — if determined to learn the craft as well as the business.

What makes a Franz Schubert, a Richard Rodgers or a Duke Elling- ton? Can we identify the elements in their songs that make us love them? Before attempting an answer, let's first note that in today's world of music, we can recognize two different kinds of "success." The first is "artistic." The second is "commercial." It would be difficult to single out, with consistency, songs that are "artistic" successes. We would be on safe ground, though, when we identify the songs that are well-crafted musically and lyrically. As for commercial success, it is immediately apparent from sales figures. But how far can we go in predicting how a song will fare in the marketplace? Until the Beatles came along and turned the world on its ear, musicians and merchants had a working understanding on what a "popular song" was. They knew what a C&W song was. R&B was identifiable. Today, these tidy classifications don't serve nearly as well. From eleventh century chansons to this week's charts, the all-time favorite is the love song. But then there are an infinite

number of ways to express love. We once had a hit on the charts which concerned a hot love affair between two muskrats. So even within the love song genre, it is difficult to classify songs or to predict what might be commercially successful. Hits come from everywhere. And it is this unpredictability that encourages the amateur to try to get lucky.

Whereas we have difficulty identifying the ingredients in a song that might bring it artistic or commercial success, what we can do is critically examine the great songs of the past and see what they have in common. A really great one tends to exhibit these characteristics:

1 - The song is memorable; it sticks in the mind. This is accom- plished particularly by use of a "hook" — a catchy phrase or refrain that repeats several times during the song.

2- The song has immediate appeal.

PROFESSIONAL SONGWRITING 29

3- The text uses some kind of special imagery. Not "Your beauty makes me love you, " but perhaps "Your touchirig makes me tremble.

4- The song is well-crafted: it has a beginning, a middle and an end.

5- Everything lyrical and musical holds to the central theme of the song. No digressions.

6- A great love song has an element of mystery, an indefinable enchantment. It transports the spirit and we don't know why.

If a song possesses at least some measure of these characteristics, it has very strong potential for making it in the marketplace. So now we are on the threshold of transforming an artistic achievement into a commer- cial success. This work of art, possibly "inspired in heaven," now descends from on high and plummets to the city street. It begins a sec- ond childhood. It may mature into profit-yielding merchandise if these events occur:

1- The song gets an appealing initial performance, particularly by a well-known performer, that has been captured on tape.

2- The record company promotes strong airplay for the record.

3- The song and the record suit the taste of the current mar- ket.

4- The record is effectively distributed and is made readily available nationally.

THE PROFESSION

To enjoy a share of the rewards of that market, the amateur writer must become a professional. Just what is it that makes a pro? Why do so many individuals break their necks and pocketbooks to get into profes- sional songwriting? Well, fame and fortune aren't bad. The fact is, every year complete nobodies zoom to the top. It happens, but it is rare. I suggest that besides this yearning to climb the music money tree, these other factors motivate the millions who would become professional song- writers:

1- Composing songs can be a reaching out for love or ap- proval.

2- Escape from reality. Writing can be one way of getting away from your spouse, your boss, bills, tension.

30 CHAPTER FOUR

3- You are a performer and feel better singing your own mate- rial than borrowing from others.

4- Something inside compels you to be creative. This compul- sion afflicts just about everybody.

5- You hear a lot of poor songs and figure you can do at least as well.

Whatever the motivation, what personality types succeed as professional songwriters? I have observed that most of the pros exhibit these person- ality traits and work habits:

1- They are self-assured and confident in their music. They can handle unkindness, insult, disappointment, without cav- ing in.

2- They just won't give up. They persevere until they gain acceptance.

3- They have strong curiosity. They may start out ignorant of both their craft and their profession. But they study, observe and ask questions.

THE CRAFT

Not all songwriters have been endowed with creative gifts. We lack evi- dence that creativity can be taught. But we do know for sure that just about any individual possessing an IQ of something above 85 can be taught the craft o^ songwriting. This can be accomplished through formal

study or through private instruction.

All colleges accredited by NASM (National Association of Schools of Music) offer at least two academic years of theory study — harmony, ear training, music reading, orchestration and counterpoint. This may be the most certain way for a musician to acquire a solid theoretical back- ground. But recently, some colleges have begun offering composition classes that focus not only on the creation of the traditional chamber music, orchestra music and opera, but on popular songwriting as well.

These courses, which run the gamut from a class in the music of Led Zeppelin offered by California State University at Northridge to complete

recording arts programs at institutions such as the University of Miami, have found their way into the curriculum as a result of growing student interest and the technological advances that make at-home recording ever more economically feasible. Their inclusion in the catalogs of accredited colleges is a welcome development indeed, as previously such training at the college level was available only in extension divi- sions, outside the music departments.

What about the various "how-to" books addressed to songwriters? One or two presently on the market contain useful information. But most

PROFESSIONAL SONGWRITING 31

of them are lightweight, get-rich-quick publications. Their authors seem to believe that all amateur songwriters are complete idiots, incapable of

absorbing more than surface information. What about private instruction? Excellent, if you can find good teach-

ers and can afford it. Recommended. Many writers have learned that the most direct route to an under-

standing of the craft is through study of the repertoire. Note the choice of

the word study, not just scan. Probably nothing could be more useful to a songwriter, amateur or pro, than to select 100 of the leading standards,

then study them phrase by phrase, line by line, chord by chord. To guide you in this kind of analysis, you might well study Alec Wilder's excellent

book, American Popular Song: The Great Innovators 1900-1950. Wilder,

himself a first-rate songwriter, theorist and contemporary music historian,

studied, not 100 songs, but several thousand. Borrow Wilder's tech- nique. If you can examine the internal workings of 100 great melodies, 100 great lyrics, you will have at least begun a serious study of the song- writing craft.

COLLABORATION

Some of the most creative artists in the popular song field have man- aged to write both words and music. If you can do this as well as Irving Berlin, Cole Porter, Carole King, Neil Diamond and Paul Simon, the world waits. But if your strong point is music, find yourself a lyricist. If you

are good at lyrics and lack musical talent, don't try to fake it as a com- poser. If you write only words or only music, don't feel that you are second class. Consider Rodgers and Hammerstein, George and Ira Gershwin, Bacharach and David — and so on.

There are no formulas for locating a collaborator. Try hanging out with

other writers and performers. Get the word around town what you are looking for. Songwriters of every description will surface. Some good writing teams got started through placement of a classified ad in a trade paper. One suggestion: if the collaborator you hook up with is not study- ing the craft as seriously as you are, drop that person for someone who knows there is still a lot to learn. Learn, grow together.

Whatever you do, don't hire a collaborator. Don't respond to ads solic- iting song poems. Don't pay any so-called "publisher" to "publish" your songs or add music or add words. Legitimate publishers never charge writers a dime. They pay you. When two coauthors are ready to approach publishers, they should

have worked out a clear understanding, preferably in writing, covering the essential issues of their relationship. The agreement should provide answers to these questions:

1- /s all income generated by the collaboration to be equally shared?

2- May one writer make changes in the material unilaterally?

3- Under what conditions may one writer withdraw the words

32 CHAPTER FOUR

or music from the collaborative work if the work remains

unpublished or otherwise unsuccessful?

4- Under what circumstances will the collaborative relation- ship terminate?

5- May the writers concurrently write alone, or with a different collaborator?

Before completing these observations about collaboration, mention

should be made of a special kind of working relationship that exists between the totally illiterate composer and a chosen arranger. Some nat- urally gifted songwriters never bother to learn how to read and write music. They get by in the profession with their intuitive talent for invent-

ing appealing melodies that turn out to be commercially acceptable.

They usually sing their simple tunes into a tape recorder, then hire an

arranger to clean up the rhythm, fix the phrasing, add the harmony and

transcribe the results onto lead sheets. Musically illiterate composers

sometimes experience brief success, but very few — among them Irving Berlin, Paul McCartney and Anthony Newley — develop lasting careers. Unless the composer is directly wired to Divine Inspiration, a more suc-

cessful career is likely by getting command of the songwriting craft, thus legitimizing the claim to be a professional composer.

WORK HABITS

Few things are more terrifying for the writer than a blank piece of paper. Accomplished writers have been known to stare at a blank page for hours. Some writers get stuck for months. How does a songwriter get started? One copout is to just sit there and wait for "inspiration." But every school child knows how Thomas Edison compared the value of inspiration vs. perspiration. Few professional composers can afford the luxury of waiting for special information from God. The Heavens just might not come forth with any ideas.

Every composer develops unique work habits. Many complain that their biggest problem is just getting started. Here are some ideas that work for some writers. They might work for you, too:

1- Think of the bills you've got to pay You've got to write this music or fall deeper in debt.

2- Set your sexual fantasies to music.

3- You come up with just a title or idea or concept or mood or — ? Think of this beginning as a seed that grows and flow- ers. Hang everything on that idea. Don't digress. Don't stop for coffee. Sit there and help the tiny embryo get born.

PROFESSIONAL SONGWRITING 33

4- Your collaborator gave you the first phrase. Accept it even if it appears weak. Go with it, set it. If you cannot come up with something better at the moment of beginning, you have no choice. Begin.

Most successful songwriters write all the time. They write, not dozens, but hundreds of songs. Many professionals like to work out a schedule, perhaps setting aside every morning for creative work. They isolate themselves for several hours, not permitting anything or anybody to interfere with their work time. Other writers are more productive working in spurts. They might stay away from their studio for days or weeks. Then they get some ideas or have to meet a deadline. They work around the clock until their "children" are born.

The truly professional songwriter works at the profession full-time. This means that when not writing that creator is promoting what has been written. Publishers are quick to spot a writer who understands that professional success comes only from continual hustling. Some profes- sionals think of their work week as about one-half writing and one-half selling. Professional songwriters not only help their publishers and record companies push their material, they are on the street and in the studios and around the watering holes where the pros gather. They spread the good word. If they don't, who will know what they have writ- ten lately? How will the writer learn what people are looking for in songs? Writing and promoting, promoting and writing. This is the professional songwriter's life.

Having described the full-time professional writer, we must recognize those professionals who divide their time between composing and per- forming (or between writing music and some other kind of activity relating to the business). Many writers break in as performers, particular- ly in the fields of rock, folk and country music. In the rock field especially, practically every successful group includes instrumentalists and singers who also write for the act.

THE BUSINESS

Anyone who wants to be a professional songwriter must learn the busi- ness aspects of the profession. Probably the majority of writers acquire this knowledge through bitter experience. There seems to be no end to the variety of misfortunes that befall trusting songwriters and musicians: they are easy prey for songsharks, crooked publishers, disappearing agents, ignorant attorneys, bootleggers and bandits. These seamy types hang around songwriters because the man or woman who writes well is hot property. Everyone in the business is after a good song. Those who cannot find their own sources may be quite prepared to lift yours.

INCOME SOURCES When a writer manages to get published and experiences some suc- cess, income from a variety of sources will be realized. Figure 4.1 provides a convenient summary.

34 CHAPTER FOUR

^F^WRITER'S POTENTIAL INCOME SOURCES HI

TYPE OFMUSIC USE WHO PAYS THE WRITER

1- Broadcast performances (TV — network, local, public broadcasting,

cable and commercial jingles,

radio — commercial and college)

Writer's performing rights

organization

2- Non-broadcast performances

(clubs, hotels, stadiums,

environmental music, inflight

music, aerobic and dance

studios, etc.)

Writer's performing rights

organization

3- "Mechanical" royalties (disc, tape

and CD sales) Record company pays writer's pub- lisher, who shares 50-50 with writer

4- Sheet music sales Publisher pays percentage on

"paper" sales

5- Synchronization of music to film

or tape (movies, videos)

Publisher shares 50 percent of fees

received with writer

6- Special permissions, licenses

(merchandising deals)

Users pay publisher who shares with writer

7- Jukeboxes Performing rights organization pays

publisher, who shares 50-50 with writer

8- Dramatic (or "grand") rights Publisher shares with writer (unless wri-

ter or his agent retains dramatic rights)

Note — All these uses are for nondramatic music, except No. 8.

Fig. 4.1

Income From a Hit Record — One of the principal sources of income for a writer is "mechanical" royalties. This and other terms relating to a writer's licensing royalties are defined in the chapters following. But here

is a preview of what a songwriter will earn from just "mechanicals." Assume the recorded song is a hit, a single that goes "gold," sells 500,000 copies. Also assume that the writer in question is the composer of both sides of the single. Finally, assume the current mechanical royal- ty rate (it tends to change year to year) is five cents per song per record.

500,000 records sold x 5 cents per song x two songs — $50,000 One-half of these "mechanicals" go to the publisher - 25,000

One-half of these are paid to the writer 25,000

If this same writer wrote all ten songs on an album that went "gold," (500,000 copies sold), it is obvious that $250,000 would be earned from

, PROFESSIONAL SONGWRITING 35

that hit. Most recorded songs do not produce anything close to these fig- ures, of course, and to generate a steady living wage, the writer must write and write all the time — and must somehow get the material pub- lished and recorded on as regular a basis as possible.

Additional Income Sources — Mechanical royalties provide just one potential source of income for songwriters. Performance royalties will equal, and often surpass, "mechanical" income. Additional potential income sources are listed in Fig. 4.1

PUBLISHING OPTIONS

If the writer manages to compose works that appear to possess com- mercial potential, a number of publishing options may surface. Among the most common arrangements:

1- The writer can simply search out an established publisher and sign that firm's contract. Here the writer would participate only in writer's income.

2- The writer can negotiate a contract with a regular publisher where the writer gets a piece of the publisher's share of the income. This kind of deal is often called "splitting the publishing" — the two parties usually share equally in the publisher's income.

3- The writer can set up a company. This often occurs when the writer cannot persuade anyone else to publish the music.

4- If the writer is also a recording artist, the personal manager under contract (or attorney) may set up a publishing company owned by the writer and administered by the manager for a commission, most commonly of ten percent.

5- The writer may enter into a partnership or set up a corporation with others to operate a publishing company. If the writer in a corporate structure were a full-time professional writer, the cor- poration would probably arrange a salary as a regular employee. Whether the writer also received a salary "override" on writer's royalties would be determined by the provisions of the employ- ment contract.

6- The writer may be offered a "staff"job by a publisher

Staff Writers — Publishers who can afford it will sometimes place promising writers on staff and demand their exclusive services on a full- time basis. Most staff writers receive a weekly salary; it may be just a token payment or a living wage. Whatever the size of the salary, it is treat- ed as an advance on the writer's future royalty earnings.

Another kind of staff writer is also on salary, often full-time, for exclu- sive services. But the big difference here is that the writer is engaged to perform "work made for hire" for the publisher — meaning that the songs

36 CHAPTER FOUR

remain the exclusive property of the employer and the writer can never

claim copyright. If the publisher fails to exploit the songs (very common),

the writer cannot recapture them after 35 years, as is provided under the

1976 Copyright Act. If any of the songs gain the status of a standard, this

forfeiture of the right to recapture could represent a substantial financial

loss for the writer and his or her heirs. This kind of staff writer, then,

owns nothing, and risks ending up in a financial condition comparable to that of the great nineteenth-century composer, Stephen Foster, who is known to have sold some of his immortal songs for a bottle of booze.

Early in a career a writer may be so hungry that accepting a work- made-for-hire job with a publisher is the only option. But when the opportunity presents itself, it would be well to energetically seek a more

attractive long-term solution to earning a living as a writer.

Label-affiliated Deals — Songwriters who learn to "take care of busi- ness" discover that their best opportunity to make a financial killing in the music industry is to present themselves as, not just writers, but perform-

ing artists. The hottest property in the business is the singer-songwriter,

who can earn both writer's royalties and artist's royalties. Because of this potential for big earnings, everybody in the business wants a piece of

that pie. A small label will pressure, sometimes coerce, a prospective writer-performer to assign some or all of the publishing rights to the label. If the writer declines to share at least administration rights, the firm

may "pass" on that writer — decline to sign a recording contract. Similar pressure on the singer-songwriter comes from many independent pro- duction companies. Typical dialogue: "Hey kid, we're gonna make you a big star, but it'll be expensive. We must have your publishing rights to help us recoup our recording costs and promotion expenses." The aspir-

ing singer-songwriter has been cautioned to "hang on to your publish-

ing," but may have to choose between signing it away to a production company or not getting signed as a recording artist.

In researching this situation with publishers, lawyers and labels, it

seems that abuses of this kind appear to be most prevalent in New York. Nashville publishers and entertainment lawyers say that singer-songwrit-

ers are rarely put under this kind of pressure by the record companies

there, asserting that Nashville is "a publishers' town," and the pros

respect the idea that the publishing business rightfully belongs to those

who are exclusively in that field. In the Los Angeles area, entertainment lawyer Jay Cooper says that

"the subject doesn't even come up" with the major record companies, but admits that the grab for a writer-performer's publishing rights is not un-

common with smaller labels and with independent production companies. Throughout the industry, record companies now regularly include a

controlled composition clause in their artists' agreements. This states

that the artist will receive only a percentage (typically, 75 percent) of the

current mechanical royalty rate for any song written or coauthored by

that artist. It is almost impossible to sign a recording contract without this

stipulation.

And in recent years, publishers in Nashville have been successful in

contractually drawing from a songwriter's performance income, as well

PROFESSIONAL SONGWRITING 37

as mechanical royalties, to recoup advance money. This point can be negotiable, if the writer is willing to take less in the way of an advance.

EVALUATING PUBLISHERS

If the writer does not sign with the publishing wing of the record label or a production company, or if the writer is not a recording artist, an "outside solution" must be found — if not by setting up a publishing company, then by locating a publisher independent of affiliation with a record company or production company. How does a thoughtful writer evaluate a prospective publisher? Very

carefully. Sharks and wolves abound where big dollars are available. Let us assume the writer is unknown. If there has been a struggle to gain the interest of a publisher, the writer may be ready to sign with just about any firm that shows interest. An unpublished writer should withstand the temptation to sign the first contract that is offered.

To assist inexperienced composers in judging a prospective publisher, consider these options:

1- What is the publisher's reputation for integrity? Is your informa- tion objective, trustworthy, current?

2- How good is the firm's leadership? Competent? Stable?

3- What is the firm's long-term track record? Is it coasting on its catalog of golden oldies or is it currently active with contempo- rary material?

4- Is the company making money? Says who?

5- Who in the company cares about you and your material? Do you know the professional manager or are you dealing with a subor- dinate person in the firm? Is there in the firm at least one individual who likes your songs enough personally to exert real effort on your behalf? This kind of personal enthusiasm is some- times the key to successful promotion.

6- What are the firm's resources? Do the professional manager and field promoters have valuable contacts with record produc- ers and other important people in the business ? Does the company agree to produce high quality demos of your songs? Does the company have enough working capital to carry it over lean periods?

7- If your songs hit, does the company understand the print busi- ness and the income available from licensing for sale a variety of different editions?

8- If your songs hit, does the company know how to set up licens- ing arrangements abroad to produce foreign income?

38 CHAPTER FOUR

An unknown writer on the verge of signing a first contract with a publish- er may be afraid to pose such pointed questions for fear of blowing the deal. But the answers are needed.

Whatever publishing arrangement the writer ultimately pulls togeth- er, the decision should be based on which person or firm can most successfully exploit the music over the long term. Is the publisher a gen- uine publisher with the know-how and contacts to truly exploit those copyrights internationally? Or only someone posing as a publisher, functioning merely as a collection agency for the writer's royalties? A shockingly high percentage of so-called publishers are only collecting agents and are not qualified to offer complete and genuine publishing services.

THE SONGWRITERS GUILD OFAMERICA

One of the important organizations representing the creative community in music is the Songwriters Guild of America. The organization bearing this name was originally formed in 1931 as The Songwriters Protective Association. For many years it was called The American Guild of Authors and Composers (AGAC), and changed to its current name in the 1980s.

The organization provides a variety of useful services to its members: 1) offers a standard writers' publishing contract; 2) collects royalties,

charging 5-3/4 percent to a ceiling of $1750, with no charge thereafter;

3) reviews members' publishing contracts, free of charge; 4) audits pub- lishers; 5) maintains a copyright renewal service; 6) administers writer- publishers' catalogs (CAP, the Catalog Administration Plan); 7) provides

a collaboration service; 8) maintains the Composers and Lyricists Edu- cational Foundation; 9) operates an Estates Administration Service; 10) provides financial evaluation of songs and catalogs (to members and nonmembers); 11) offers workshops for writers; 12) lobbies in Washing- ton, D.C., on behalf of songwriters.

The Songwriters Guild of America Contract — The Guild urges its members to attempt to negotiate acceptance of its "Popular Songwriters Contract." As one would assume, it is heavily weighted in favor of the writer. Many publishers refuse to sign it. But writers can use it at least as a negotiating document.

The agreement's main features:

1 - The writer warrants that the composition is ". . . his sole, exclu- sive and original work ..." and that he has the right and power to make the contract and that ". . . there exists no adverse claim to or in the composition.

2- The publisher pays at least some advance, deductible from the writer's royalties.

3- Royalties on printed editions are based on the wholesale selling price and are 10 percent on the first 200,000 copies sold in the

[PROFESSIONAL SONGWRITING 39

U.S. and Canada, 12 percent on sales in excess of 200,000 and 15 percent when sales reach 500,000.

4- The publisher pays the writer 50 percent of the publisher's receipts from most sources outside the U.S. and Canada.

5- The writer shares 50-50 with the publisher on income derived from most other sources, e.g., mechanical royalties, synchro- nization rights, transcriptions and block licenses. Before splitting this money in half, the publisher may discount what he pays any collecting agent, such as Harry Fox.

6- The publisher must obtain the writer's consent before granting use of the composition in a movie, broadcast commercial or dra- matico-musical presentation.

7- The writer's royalties must be held in trust by the publisher and not used for any other purpose.

8- If the publisher fails to get a commercial recording of the compo- sition within one year, the contract terminates. But the writer may grant an extension of six months, providing the publisher pays the writer $250.

9- The publisher must print and offer for sale regular piano copies or provide such copies or leadsheets to the writer.

10- The publisher must pay the writer 50 percent of foreign advances received by the publisher

11- The term (length) of the contract may be for any number of years but not more than 40 ". . . or 35 years from the date of first release of a commercial sound recording of the composition, whichever term ends earlier, unless this contract is sooner ter- minated in accordance with the provisions hereof

12- When the contract terminates, the publisher re-vests in the writer all rights in the composition.

13- The publisher supplies a financial statement every six months. The writer may demand an audit of the publisher's books upon supplying appropriate notice.

14- All disputes between the parties are to be submitted to the American Arbitration Association, and the parties agree ". . . to be bound by and perform any award rendered in such arbitra- tion.

15- The publisher may not assign (turn over to another publisher) the contract without the writer's consent.

16- The writer and publisher must agree on future use — the exploitation of a composition in a manner not yet contemplated and therefore not specifically covered by the contract.

40 CHAPTER FOUR

CONTRACTS: GETTING OUT

The writer and publisher may negotiate at length to shape a contract that is equitable. The relationship may turn out to be mutually profitable, even congenial. But it is the nature of the business that writers and publishers frequently want to terminate contracts. This does not mean the songs under contract must then die for lack of promotion. Rather, the copy- rights are reassigned. Reassignments are common, and they can be to the advantage of the writer. From the writer's point of view, a reassign- ment is perhaps even advantageous if the songs are included in a bona fide sale of the first publisher's catalog, or in the event of a merger, or if the assignment is to a subsidiary or affiliated company. In each of these circumstances, the writer should demand from the first publisher a writ- ten instrument which states that the assignee-publisher assumes all obligations of the original (first) publisher.

The songwriter must continually police the contract to make sure that its terms are being carried out. Default is a common occurrence. It does not necessarily mean the writer is associated with a crook. It may not involve unfairness or dishonesty or fraud at all. More likely, a publisher defaults if unable to get the song recorded, or royalty statements are incorrect or incomplete, or the publisher just can't come up with royalty payments when they are due, or becomes too burdened working on other properties. If the writer believes the publisher is guilty of default,

whatever the reasons, there are some options. First, to unilaterally break the contract. Courts take a dim view of unilateral action of this kind, for it is the court which must determine if a breach is "material" and whether the publisher has flagrantly disregarded appeals from the writer for rem- edy. Second, a lawsuit can be filed asking to be released from the contract. Third, a letter of termination can be sent to the publisher, stat- ing that the publisher is in default and that henceforth the rights to any songs which have not yet been delivered to the publisher (known as future rights) will go to another publisher.

DEMONSTRATION RECORDS Demonstration records ("demos") are used in a variety of ways:

• A songwriter records a demo in an attempt to induce a publisher to accept his/her songs.

• A publisher produces demos in an attempt to persuade an artist or record producer to record the publisher's new songs.

• A performer records a demo to demonstrate his/her talents to a prospective employer, e.g., a record company, an agent, a con- tractor

• A composer will prepare a demo in an attempt to induce an advertising agency to use his/her material for broadcast com- mercials.

• An ad agency will produce a demo to show a client, or prospec- tive client, how a broadcast commercial might sound.

PFVDFESSIONAL SONGWRITING 41

Effective demos are performed by a singer or small group. The mini- mum accompaniment is piano or guitar. The maximum appropriate accompaniment would include a rhythm section and one or two frontline players. Under special circumstances, elaborate demos with full instru- mentation and written charts are produced. As for the style of performance, the singing should be straightforward, with a minimum amount of styling. The listener wants to judge the song. Of course, if the demo is not of a song but of an auditioning performer, the artist will do what he can to simulate a live performance.

Demos made for publishers or by publishers are most commonly recorded on high-quality cassettes. Each cassette should be clearly labeled, on the box as well as the cassette itself, with an accompanying log of songs: their sequence numbers, song titles and full composers' names. Tape one copy of the log outside the case, and fold another copy inside. Be sure your own name, address and phone number are on every piece of material you submit.

Songwriters who sing passably well can produce their own demos — on home recording equipment, if it is of reasonably good quality. Profes- sional demo producers are readily available in larger cities. They provide a professional singer accompanied by piano or guitar. Rates rise, of course, for more backup musicians, but producers offer special rates for more than one song. Elaborately produced demos with written-out arrangements, full orchestra, perhaps a group of singers, recorded multi-

track can be very expensive. Such demos, properly mixed down and equalized, can attain the quality of a master. Some do, and are subse- quently released commercially. Such releases are illegal unless properly licensed by the copyright owners of the material and the appropriate payments are made to the AFM and AFTRA artists involved.

All demos should include two notices of copyright: the letter P in a cir- cle (®), to protect the phono record, and the letter C in a circle (©), to protect the music contained in the recording. Such notice offers some protection from unauthorized use of the tapes. Demos are frequently lost, due to inadequate I.D.'s and careless handling. In addition to the identification recommended above, mailed packages should bear a com- plete return address and return postage. Mail them first-class; insure the package. Send copies, of course, not masters.

Performing artists' unions have regulations concerning demo produc- tion, but circumvention in most cities is widespread. Check local practices before recording.

Who Pays? — Simple demos can be produced for just the cost of the tape and the electricity needed to power the home recorder. The cost of the songwriter's demos may rise a bit if someone else is engaged to sing or play. But many publishers find homemade demos unacceptable and go into a demo studio with professional performers. Costs can run to several hundred dollars and, under special circumstances, perhaps sev-

eral thousand dollars if the publisher believes a master tape could be produced.

So who should pay for demo production costs? Views differ in the industry. Some publishers attempt to charge all demo costs against a

42 CHAPTER FOUR

contract writer's potential royalties — in other words, a recoupable expense. Other publishers try to get the writer to split demo costs 50-50, again charging the writer's share against recoupable royalties. Most writ- ers believe that all promotional costs, including demo expenses, should be considered the publisher's responsibility.

BREAKING IN

Breaking into the field of professional songwriting is not as mysterious as generally believed. Many unknown writers are discovered every year, but few make it on luck alone. When we check out the so-called overnight success stories, we learn that most of these individuals used certain pro- motion techniques. We cannot articulate a breaking-in "formula." But we can describe what works for most new writers.

[

SEVEN STEPS

1 - The first step is the most critical. Before spending time and money seeking a professional career, it is of overriding importance that the songwriter first find out whether or not the talent is there. Your songs may go over just great with your family and friends. These reactions can be heart- warming — and they can be seriously misleading. What you as an amateur need at this point is an objective appraisal of your creative talents.

2- Make certain you know your craft. A writer may not be a creative genius, but can learn to be a craftsman.

3- Arm yourself with professional leadsheets, lyric sheets and demonstration records.

4- Focus your promotion efforts on the specific market your songs fit.

5- Thoroughly promote your songs in your own locale before risking a trip to The Big City

6- Employ the promotion techniques outlined in these pages; learn the business.

7- Persist. Most of the writer's competitors will become dis- couraged and give up. The persistent writer can beat the competition by hanging in there.

PROFESSIONAL SONGWRITING 43

LOCAL PROMOTION

Three levels of promotion should be undertaken. First of all, start where you are. It is pointless to leave the hometown before you have proven yourself locally. The amateur needs a place to make mistakes, to experi- ment with different kinds of promotional efforts. The hometown provides a space more private for this breaking-in period than the big time. Assuming you are familiar with what has been covered here to this point, you are ready to present your work to the marketplace.

Look within your own circle of family and friends for a connection to the music business, no matter how small. If you don't have one, start with professional performers in your area. Observe them in performance; visit their rehearsals. Hang out, get acquainted. If your songs suit their style, you may persuade them to try your material and give you their reaction. At this stage, it does not matter whether these professionals are well-known. One day they may be, and making their acquaintance may initiate a contact that will bear fruit later.

Contact your local radio stations and try to persuade program direc- tors and music librarians to listen to your demos. They will be unable to use your songs, but their opinions of your work could be valuable to you, for they are full-time professional appraisers of records. Also, see if the local disc jockeys will listen to your music. They cannot use your records either, but the best informed disc jockeys have an ear tuned to popular tastes. Their evaluation of your songs might be useful.

Seek to collaborate with people writing and producing college shows in your area. Colleges also are among the most important bookers of vis- iting artists. Traveling performers often pick up useful material on the road. You may have to wait in line to get to them, but it might prove worthwhile. With some performers, it is even more effective to get your songs to people around the artist. Most performers rely to some extent upon the judgment of their associates in selecting new material. In some instances, the best contact for this purpose would be the performer's musical director or arranger. In other situations, it is a good idea to first talk to his manager, since some managers are influential song pickers. Some smaller cities are headquarters for publishing companies. Do

not rule out the small publisher. If you evaluate them according to the guidelines listed in this chapter and if they measure up, go with them if you do not have a more attractive option at the time. Contact local adver- tising agencies and commercial production companies. Communities with populations of 100,000 on up will have such firms. They are in con- stant need of melodies and musical ideas for broadcast commercials.

If you begin to receive favorable local reaction to your writing, you just might be ready for the next step in promoting your songs.

PROMOTION BY MAIL

Direct mail selling is one of the largest industries in the economy. Even music can be sold by mail, as the success of record clubs will attest.

44 CHAPTER FOUR

Amateur songwriters have frequently been successful in landing their

first publisher through the mail. But this is a special technique and nearly

all efforts of this kind fail because they are not handled effectively. But if

the writer follows the procedures outlined, his chances are reasonably

good.

1- Study the record charts and find out the names of pub- lishers who are currently active in handling the type of music you write. Select a dozen or so, perhaps two dozen names.

2- Locate the addresses and telephone numbers of these publishers. Your local telephone company has directories for large cities. Another source is Billboard's International Buyers

Guide, published annually. You can also inquire at the refer-

ence desk of the local library.

3- Even if these sources list the name of the firm's profes- sional manager, you should write a short letter of inquiry or

place a telephone call to make sure the position is still held by that individual.

4- After receiving the name of the professional manager, write him a letter requesting permission to mail in some of your songs. The letter should be short, well written, and to the point. Briefly state what reception your songs have already experi-

enced with professional performers. The publisher will be uninterested in your success at that Rotary Club luncheon.

Drop a name or two, if you can, of established artists who have reacted favorably to your songs. If permission is received, mail

in not more than three or four songs. Don't expect any publish- er to examine more than that; send only your best work. Your package should contain, as a minimum, a demo recording of each song (put all three of them on the same cassette) AND separate lyric sheets for each song, neatly typed or printed

with your name, address and telephone number on each sheet. Inclusion of professionally prepared leadsheets is optional with

some publishers, but play it safe and include them. Your pack- age should contain a brief cover letter Since many publishers won't bother to answer your letter, better response can proba-

bly be obtained if you mail the publisher a self-addressed, stamped postcard.

All mail addressed to publishers should be sent first-class. Do not send certified or registered mail; many publishers seem to feel that such mail could mean trouble, and they often refuse to accept it unless they recognize the sender's name.

Wait three weeks. If you receive no reply, continue the process with

other publishers until you receive favorable reaction.

PROFESSIONAL SONGWRITING 45

Very few publishers today will open unsolicited mail. They not only are concerned about being accused of stealing material; a greater concern is

that 99 percent of unsolicited songs and demos are just awful. Publish- ers cannot take time to dig through the hundreds of songs received every week just in the hope that one percent might be worth serious con- sideration. But when a writer has been professional enough to obtain permission from the publisher to submit material, whatever is mailed in is

viewed entirely differently. Publishers at least know that a well-written let- ter of request is authored by an individual who can read and write the English language, and the writer has demonstrated that he understands something about how a publishing company functions. An unknown writ- er, so appraised, is immediately elevated above the run-of-the-mill amateurs who clog the mails with unacceptable material.

Mr. John Doe, Professional Manager XYZ Music Publishing Company Address

Dear Mr. Doe: Date:

Please indicate your response to my question and then mail this card back to me (it is alreeidy addressed and stamped).

WILL YOU EXAMINE MY SONGS FOR PUBUCATION? Yes No

Your response wiU be sincerely appreciated.

Thank youl

(Signed) Mary Hopeful Address/Telephone

CONFRONTING PUBLISHERS

While many amateur songwriters manage to create publisher interest through mail contacts, most songs get published following a direct, per- sonal confrontation of the writer and the publisher. Since popular music publishers have offices in the leading recording centers, the amateur who would be professional must eventually invade the forbidding precincts of New York, Nashville or Los Angeles. Publishers in these cities vary in the manner in which they will see uninvited guests who visit their offices. Many publishers will see unknown songwriters, but it is unwise for the newcomer to walk directly from the bus station to the pub- lisher's office. Often publishers recommend that the songwriter who is unknown first write a letter to the publisher. Here again, the postman opens the door for you. Your letter can be about the same as described above, but asking permission in this instance to present your material to

46 CHAPTER FOUR

the publisher in person. If you are only visiting the city, tell the publisher

you would like to get an appointment soon. Don't crowd him. Give him

your local telephone number. His office may find it simpler to telephone you than write you a letter. Publishers will often see people who write them a sensible letter of this kind. Does this tactic result in publishers signing new songwriters? Rarely. Why? For the reasons already stated: very few really good songs are presented to them.

Yet another approach to getting to a direct confrontation with a pub-

lisher is to telephone him and ask for an appointment. Here again, the

receptionist must be the gatekeeper. Your chances of soliciting an appointment through a letter or a telephone call are about equal.

Once you have met with a publisher, be sure to write a thank-you note for the time and the opportunity to discuss your work. Keep up that valu- able contact even if you may not yet have new material. Then, when you are ready to submit more songs — whether in person or by mail — you will be on the inside track.

The foregoing promotional methods are the most effective ones a per-

son can use, at least until that time when the writer can contact a publisher cold and say, "Your friend and mine, John Doe, suggested I get

in touch with you about my songs . . ." If this John Doe is truly a mutual friend, the publisher's attitude toward seeing the unknown writer is immediately transformed, for someone whose judgment is respected has already functioned for the publisher as a preliminary gatekeeper. The publisher's door is now open, at least temporarily. If a writer can develop these kinds of inside contacts, a good start has been made. But once

"inside," the material had better be there, or the inside contact will prove

valueless.

..•.•:if:

t: 1

1 r^^'

PERSPECTIVE

When it is said that a particular copyright is published, that term today has quite a different meaning than in the past. Years ago, a composer knew how necessary it was to locate a music "publisher" to accept mate- rial so that copies could be printed and placed in music stores for sale to the public. This simple pattern no longer prevails. In the popular music field, the great majority of new sorigs are not printed at all. They exist, at first, only in the form of professional copies (leadsheets) that are dis-

tributed in manuscript form without cost to artists and record producers. Music publishers, then, are not printers. When they believe that a distri- bution of printed editions of their copyrights might prove profitable, most publishers license others to provide these services.

The heart of the music publishing business today lies, not in the print business, as it is called, but in the record industry. A publisher's principal sources of income today derive from record royalties and from money received from ASCAP, BMI, or SESAC for performances of the publish- er's copyrights. Many individuals of long experience in the music business look upon publishing as the most lucrative source of income and certainly the steadiest. That is why just about everyone in the per- forming and recording fields is involved in some way in music publishing.

To gain a perspective on how this field has become the rich giant that it is, let's glance at how the industry developed historically:

50 CHAPTER FIVE

DEVELOPMENT OF MUSIC PUBLISHING

1640 — The first book published in America — and it happens to be a music book — The Bay Psalm Book, which first used musical notation in the edition of 1698.

1770 — The first native-born American composer, William Billings, gets his music published.

1790 — First U.S. Congress passes first copyright law.

1850-1900 — fiJIinstrel shows are widely popular and increase public interest in pop- ular music. Publishers begin to prosper

1890s — The player piano becomes popu- lar, creating a demand for player piano rolls. Large music publishing firms are estab- lished in the last two decades of the 1800s. Merchandising methods develop, and pub- lishers begin to discover that if enough people hear a good song, it will probably be a hit. The most effective song promoters now are the performers in various theatres and vaudeville houses that develop around the turn of the century.

1900 — Popular music publishing becomes big business. In this first decade, an esti- mated 100 songs sell a million copies or more within a one-year period. This occurs at a time when the population of the United States is about 90 million.

The U.S. Congress passes the historic 1909 Copyright Law which provides pub- lishers, for the first time, "mechanical rights"

in recorded music. Initially, this revenue derives largely from player piano rolls.

1920s — ASCAP, established in 1914, becomes a major force as a performing rights organization. For the first time in this

country, publishers and writers begin to receive income from performances of their music. Radio broadcasting begins and is initially fought by publishers. They believe radio hurts sheet music sales. Sound movies ("talkies") begin. Film producers negotiate fees for music synchronization rights. The Harry Fox Agency is estab- lished. Sheet music sales drop with the rise of radio. Publishers now close most of their branch offices to concentrate promotion efforts on the radio network broadcasting centers which, at this time, are New York City, Chicago and Los Angeles.

1930s — The Great Depression severely hurts the music publishing business, but increasing income from movie producers helps. The "Big Bands" develop and become the most important source for

plugs for new songs, particularly if the band has "a remote wire" for radio broad- casting. National Music Publishers' Association expands the Harry Fox Agency to include mechanical licensing of copy- rights.

1940s — During and after World War II, people spend larger shares of their in comes on music, instruments, records, movies. The LP record appears in 1948, now producing publishers' royalties on 10 to 12 songs per record, not just two. NAB forms BMI in reaction to increasing demands from ASCAP. The big band singers (Perry Como, Frank Sinatra, Doris Day, others) go solo and become the domi- nant source for introducing new songs.

1950s — Rapid growth of television kills live music on the radio. Disc jockeys become the new hit-makers. Rock and roll comes to dominate popular music, explod- ing the record market. BMI now dominates in capturing copyrights in the rock and country fields.

1960s — Increasing dependence of pub- lishers on radio to break new songs. The print business improves, particularly edi-

tions for the amateur and the educational field. Harry Fox Agency becomes a wholly owned subsidiary of NMPA.

1970s — Radio broadcasters shorten their playlists below "top 40, " forcing companies to promote airplay in secondary and tertiary markets. The print business in the pop song folio and educational field continues to grow, but inflating costs cause many publishers to quit all print activity and assign such rights to subpublishers and licensees here and abroad. Publishers' incomes from ASCAP and BMI continue to rise. Everyone in the music business con-

tinues the search for a music to succeed rock.

1980s — Old copyrights enjoy financial boom due to widespread popularity of CDs. Huge mergers and acquisitions dominate the publishing business and all the music industry. Music becomes an even more sig- nificant part of films, television programs and commercials. MTV begins broadcast- ing music videos 24 hours a day Increased music use via new media, particularly home videocassettes, computer games and video jukeboxes, exacerbates licens- ing problems but increases publisher revenues.

MUSIC PUBLISHING 51

TYPES OF PUBLISHERS

The music publishing business is a maze of subpublishers, licensees, publishing "groups," affiliates, administered companies, parent corpora-

tions and multinational conglomerates. When a small publisher starts to become successful, large firms take notice and offer to buy the company or at least get hold of a share of it.

Big firms seek to acquire smaller ones in the music field for many of the same reasons such transactions occur all the time in other indus- tries—among them, the notion that bigger is better, that they can be operated more efficiently, and the belief that parties to the deal will expe-

rience tax advantages. A particular advantage to small publishers in joining a publisher's "group," or otherwise connecting with a larger firm,

is found in increased opportunities to exploit foreign rights. All large

music publishers have member firms or licensees abroad, and these interlocking relationships afford opportunities for reciprocal sharing of

royalties in foreign territories. Music publishers have learned a valuable

lesson from the movie producers; they discovered decades ago that for- eign income may be as large, or almost as large, as money derived from domestic markets.

In recent years the publishing industry has consolidated its power through an unprecedented surge of mergers and large acquisitions. While proven to be a sound economic move for the buyers—like land, the value of old copyrights always seems to go up —many songwriters have felt lost in the shuffle. Some companies currently boast catalogs of more than 500,000 copyrights. Who can possibly effectively manage, much less exploit, such a catalog? Because in a hsing market the value of the catalog is based more on what the next buyer will pay, rather than on what the specific copyrights actually earn, the songwriter is often left

out in the cold.

Then there is the problem of the developing writer who is faced with fewer opportunities to find a publisher. A decade ago there were more than 30 major music publishers. Today there are fewer than ten, and these megapublishers are focused more on administration and collection than on development and exploitation. But new companies are rising to fill the void, and the giants are slowly returning to the fine old art of "song-plugging," not only to earn the kind of publisher's shares that

would justify their purchases, but also because the future of the industry depends on finding and publishing new material rather than making money off of the sale of rights to songs in existing catalogs.

FULL-LINE COMPANIES

Prior to the great expansion of the recording industry, many of the older music publishers included practically all types of music in their cata-

logs—classical, educational and pop. Firms with this broad a repertoire are scarce today, because the print business is so different from the business of hustling pop record releases. But a firm such as Warner- Chappell, for example, attempts to be active in all musical styles.

52 CHAPTER FIVE

Warner-Chappell owns or administers or subpublishes more than a mil- lion copyrights here and abroad through its subsidiaries. Each full-line firm has developed its own administrative structure, but Figure 5.1 shows a typical organization of this scope. Department names vary from company to company.

INDEPENDENT PUBLISHERS

If a firm is not affiliated with a huge international publishing organization such as Warner-Chappell Music Group or a record label, the industry often refers to such a publisher as an "independent." Independents range in size from the one-person operation to firms controlling multimil- lion-dollar catalogs. Many of the independents are members of the Association of Independent Music Publishers. Some publishing firms are prideful of their independence and are not actively seeking acquisi- tion by a large international publishing organization. Others, particularly

the small firms, try to build up their catalogs in order to become attractive to a prospective buyer.

RECORD COMPANY AFFILIATES

All record companies of any size own or control, or cooperate closely with, a minimum of two different publishing companies. Some of these affiliates function as if they were not dependent upon their alliance with their record company. Others are "front" organizations and are set up by record companies as a kind of depository for copyrights owned, partly owned or administered by their contract recording artists. Record com- panies find that they need a direct alliance with an ASCAP and BMI publishing operation in order to negotiate reciprocal contracts with their

artists involving both publishing and recording rights. Critics argue that these interlocking companies involve conflicts of interest. Others argue that such cozy arrangements restrain trade and may eventually be found in conflict with antitrust laws. Newer writers and unestablished artists are sometimes coerced into placing their copyrights with a record company publisher. Those that refuse to do so sometimes find it more difficult to get recording contracts. Yet another result of these sweetheart contracts

is to make it easier for an artist-writer to persuade the record company- publisher to accept more of the writer's songs for recording.

Many recording contracts contain a "controlled composition" clause which calls for a reduced mechanical payment by the record company on any song recorded by the artist which was also written by the artist. Most of these clauses reduce the label's payment to the artist and the publisher to 75% of the statutory rate, but many are even less. Record companies maintain that the clause reduces the likelihood of an artist recording an inferior original composition in order to generate more income, but the net result is that the record companies are able to cir- cumnavigate the mechanical rate set by Congress. .

Nonetheless, for most songwriters, a recording contract is the best way to promote their songs. Even with reduced mechanical payments,

MUSIC PUBLISHING 53

publishing/recording deals, when fairly handled, are still the most prof- itable arrangements for everyone concerned.

ARTIST-OWNED COMPANIES

Many recording artists who write their own material have formed their own publishing companies. The reason is simple: they see no need to give up the extra income to anyone else. All recorded music must be "published." As a matter of fact, it can be said that recording a song is one way of publishing it. If an artist does record, royalties to the publisher of the copyrights accrue from the outset of record sales. As a result, artists, usually with extensive assistance from their managers (and attor- neys) set up companies in their own names. Since most artists are largely concerned with recording and performing, their publishing activi- ties are almost always limited to their own compositions and they do not get involved in the print business or conventional distribution.

WRITER-OWNED COMPANIES

Hundreds of very small publishing operations are owned by individual writers. Most often, these small firms have been set up by writers who have been unable to get their music accepted by other publishers. Some writer-owned firms have been set up by those who have been contract composers, but who came to believe their material was not receiving suf- ficient promotion—so they go it alone. Still other writers have been cheated by publishers and do not trust anyone but themselves to handle the publication of their music.

Many writer-owned firms are one-person operations. Besides the attraction of being your own boss, the writer-owner knows that no one is going to "cook" the books, assuring a fair count. Yet another reason for the prevalence of so many writer-owned firms is that an individual can set up shop for an absurd amount of capital—perhaps less than $500. At the end of this book are recommendations on how to set up your own company. Also, see Figure 5.2, which shows how very small music pub- lishing firms can be structured.

EDUCATIONAL FIELD

Some publishers in the United States limit their catalogs to music intend- ed for use by students, schools and colleges. This field, until the 1970s, was not large. But early in that decade, gross sales grew tremendously. School bond issues were failing and school music budgets were cut severely, some programs even being eliminated because of the unwill- ingness of some communities to support arts education. But educational music publishers balanced off this reduction of sales with a variety of printed materials aimed at the amateur instrumentalist and singer. The biggest sellers in these kinds of editions are for piano, organ, and guitar. Part of these sales are known as "bench packs"—educational materials

54 CHAPTER FIVE

given by the equipment manufacturer to the customer upon sale of a new piano or organ. The instrument manufacturer pays the copyright owners for these materials. The biggest selling editions scored for schools are for mixed chorus, pop/jazz choir, football band, stage band, and "serious" concert band compositions.

While the number of school bands and choruses may shrink, the American Music Conference believes, probably correctly, that sale reductions in those areas will be balanced by the increasing market for amateurs who will buy "how-to" books and folios, as well as cassettes with film strips, or videos. Such audio/visual materials, when well pro- duced, are increasingly popular. Some school districts are using these A/V materials in place of full-time salaried live instruction.

SPECIALTY PUBLISHERS

Still other publishers maintain a policy of limiting their catalogs to just one kind of music. Some specialty publishers, for example those active only in the country field, are among the nation's largest. Most specialty houses, however, are relatively small, preferring to restrict their activities

to a field they understand best. Typical with these kinds of publishers are catalogs limited to one of the following: choral music, gospel, children's music and so-called "stage band" (big bands in schools and colleges playing pop and jazz music). One of the larger kinds of specialty houses publishes what is called "Christian music," which might be described as white gospel. These firms, many of them located in Nashville, prosper not only through large sales of their music on records, but also do a good-sized print business.

Included on the list of specialty publishers should be those who limit their catalogs to contemporary serious ("classical") and avant-garde music. Most of these kinds of publishers are subsidized by a foundation or university; some of them "publish" only privately distributed editions. Recordings of their music are also largely subsidized.

CONCERT MUSIC

Concert (or "classical") music is that repertoire generally associated with

opera, symphony, ballet, recital, choral and church music. Only a handful of publishers limit their catalogs to these fields. Representative concert

music publishers would include G. Schirmer, Peters and Theodore Presser. Such firms sometimes borrow the printing plates of classics from European houses, then sell the resulting editions under their own imprimatur.

Classical music publishers do not profit much from Verdi operas and Haydn symphonies, but make up for their marginal properties with an array of special editions of the classics for school orchestras, choirs, as

well as etudes for piano, organ, strings and voice. Besides maintaining catalogs of older music, nearly all of it from

Europe, these houses continue accepting losses in their publication of twentieth-century serious composers. We are indebted to them for this

MUSIC PUBLISHING 55

"public service," for they know at the outset that they will rarely recover their printing costs of contemporary serious music. Some of these losses are offset by offering dramatic works and extended pieces through rental of the parts rather than through printed editions.

SUBPUBUSHERS, LICENSEES

Most publishers, including many of the largest ones, find it necessary to farm out some of their services. Firms providing these services are called subpublishers, licensees or selling agents (application of these

terms is not always precise; many professionals use them interchange- ably).

The service most commonly assigned to an outside firm is "the paper business," as it is often called—the production and sale of printed edi- tions. Since few pop music publishers print and market printed editions of their copyrights, they license another company to do this for them. Among the largest publishers that include a big paper business in their activities are Charles Hansen, Hal Leonard, Inc., Columbia Pictures Pub- lishing and Warner-Chappell. A publisher not wanting to get into the paper business will normally strike a deal with a firm such as one of the aforementioned which provides for the licensee (the big firm) to bear the

full costs of preparing, printing and distributing the printed edition, then the licensee pays the licensor a royalty on sales, often in the range of 20 percent. In deals of this kind, sometimes the licensee is called a selling agent. A less common arrangement involves the copyright owner (prime publisher) bearing all preparation and printing costs, then paying the subpublisher or selling agent something near 20 percent on sales. These kinds of licensing deals are most common for melodic-type popular songs that have experienced success on a hit record, and the copyright owner believes it will be profitable to make the music available in printed form. The format for such editions is usually pop song folios where the royalties are shared among the copyrights included in a particular folio. Few hard rock "songs" can be effectively rendered in print, for their suc- cess is based more on the "sound" of the recorded performance rather than the musical content.

Publisher-subpublisher arrangements are also common in print edi- tions for the educational market. One of the largest licensee/selling agents in this field is Hal Leonard, Inc.

Foreign Territories—The publishing business is worldwide, and many American publishers experience a large percentage of their income from foreign territories. Some large companies have branch offices in foreign countries that function much like the American parent firm. First, they try to exploit the American catalog by getting cover records, selling printed editions and collecting performance royalties. This may involve the branch office arranging for translations of English lyrics into the indige- nous language. Second, branch offices usually involve themselves, not only in pushing the catalog of the home office, but exploiting new copy- rights on their own.

56 CHAPTER FIVE

An American publisher lacking branch offices abroad calls upon firms that do. Many publishers, large and small, retain the subpublishing ser- vices of such giants as Warner-Chappell and Screen Gems/EMI. While

royalty splits vary from country to country, the most common sharing between the prime publisher and licensee is fifty-fifty. Percentages usu-

ally relate to how the parties share the production and promotion expenses.

If an American publisher lacks foreign offices of its own and chooses not to license its copyrights through a large U.S. firm that does, it may seek out a foreign-based independent publisher. When this is done the latter is known as a subpublisher or licensee. Most of these deals are for

a period of about three years. The contract may be in the form of a part- nership or joint venture. The American company will expect the sub- publisher to exploit the American copyrights through arranging cover

records, providing printed editions and collecting performance royalties.

Even though the performing rights organization functioning in a given ter-

ritory may be forwarding royalty shares to ASCAP and BMI, the Ameri- can firm's subpublisher is usually expected to ascertain that performan-

ces are being fully licensed and money is paid for them. American firms usually contract for foreign subpublishers to cover

more than one country. For example, it is common for a subpublisher based in West Germany to cover all German-speaking countries in Europe. French-based subpublishers would probably service the French-

speaking territories in Africa. A Scandinavian subpublisher would probably request jurisdiction over Non/vay, Sweden, Denmark, perhaps

Iceland and Finland, too. The huge publishing mergers in recent years

have created multinational giant corporations which have far less need

to subpublish in foreign markets in the traditional sense, because they

already own complete publishing operations in most countries. For many of these companies, sub-publishing means merely shifting some of the rights to a particular composition from one of their subsidiaries to anoth-

er.

The Music Publishers' Forum, representing a number of independent

publishers centered in Nashville, recommends that subpublishers be lim-

ited to licenses covering performance, mechanical and print royalties.

The group believes that American publishers should wholly retain lyric

and video rights, jingle licenses and grand rights, or to at least be able to

approve and control these kinds of uses. Independent publishers lacking the resources to set up subpub-

lishing deals can retain the Harry Fox Agency to meet many of their basic needs for services in foreign territories. Fox offers more compre-

hensive services abroad, under certain circumstances, than it does do-

mestically.

ADMINISTRATION

Administration of publishing companies varies greatly according to the

size of the firm. Independent companies may have a small staff and each individual must perform a variety of tasks to keep the company

MUSIC PUBLISHING 57

functioning properly. For example, a small independent publisher might

be run entirely by the owner-songwriter and a part-time secretary. Con-

trast this type of operation with the management structure of a full-line publisher (Figures 5.1 and 5.2).

Large publishers will have a central administration comprised of a

president (or vice-president in charge of administration), department

heads and support personnel. Firms vary in the labels they apply to departments. Here follows a description of the administrative structure of

a typical major publisher.

BUSINESS AFFAIRS

This department is managed by an individual who supervises assistants handling receipts and disbursements, accounting, data processing, pay- roll, insurance and purchasing. Large firms would probably try to have,

as their business affairs head, a graduate of a university business school

with a master's degree (MBA). An individual holding down such a job would have comparable educational credentials or extensive experience

in business management. One of the most critical components of a busi- ness affairs department of a company today is computer-assisted research, particularly market research and cost accounting. Since com- puters are available at costs within reach of even smaller firms, their use

in the publishing business is almost universal. Managers can know, on a daily basis if need be, just where their company stands concerning royal- ties received and royalties paid out.

Except for smaller firms, all publishers have at least one employee who heads a department that handles copyrights. Larger firms would have several persons in this department. A qualified department head of copy- rights must know the essential parts of the U.S. Copyright Laws of 1909, the 1976 revisions, and basic international laws and agreements ("con- ventions") covering foreign copyrights. The firm's copyright department performs a number of essential tasks. Among the most important are:

1- Title search: Before a publisher accepts a piece of music,

the copyright department must first determine who really owns the work. The Library of Congress will assist in this research. Copyright ownership can get complicated. If the work has coauthors, what are their claims of ownership and are the claims valid? What if the work had been pub- lished before? What if the music or the words have been revised? How does a publisher determine if some of the rights have been assigned to another firm or individual or

estate? After the copyright department has performed this

research, questions remaining unclear are referred to a

58 CHAPTER FIVE

Fig. 5.1

FULL-LINE MUSIC PUBLISHER

ADMINISTRATION Business Aflairs/Operallons/Accounting

Copyrights/Licensing/Permissions

ACQUISITIONS

Contracting Writers

Purchasing Catalogs

PRINT PRODUCTION Editing, Engraving

Art. Copy, Printing

PROMOTION RECORDINGS

Contacts: artists, producers,

managers, musical directors

PERFORMANCES Contacts: producers, artists,

musical directors

ADVERTISING Print Ads

Convention/Store Displays

Direct Mail

Special Campaigns

DISTRIBUTION, SALES Rack Jobbers

Wholesalers

Retailers

Direct Mail

SUBPUBLISHERS, LICENSEES Domestic, Foreign

Fig. 5.2

WRITER-OWNED PUBLISHING COMPANY

1 DO-IT-YOURSELF _^x^ SUBCONTRACTED SERVICESJ

OFFICE 11 REGISTER FIRM NAME !

Secretarial, Bookkeeping |

MUSIC PRFPARATION | Leadsheets, Demos 1

1 DISTRIBUTION, sales"!

. 1 Domestic. Foreign |

MUSIC PUBLISHING 59

2- Register claims of copyright.

3- Record transfers of copyrigfit ownersfiip.

4- Form liaison with the Harry Fox Agency, particularly in respect to mechanical licenses and the determination of synchronization fees.

5- Keep records of subsisting copyrights and their pending expiration dates. Recommend renewal, extension, sale or abandonment of subsisting copyrights. In matters of this importance top management would, of course, be directly involved.

LEGAL AFFAIRS

Music publishers must have lawyers expert in copyright law and music publishing. They also need expert tax lawyers experienced in artist man- agement and the recording industry. Nearly all publishing transactions are based on contracts, and the ongoing services of qualified attorneys are essential in negotiating them. Small firms employ these specialists by the hour or day. Larger firms not only retain counsel part-time, as needed, but employ one or more lawyers on their staffs full-time.

OPERATIONS

After a copyright title has been cleared and the author is signed to a con- tract, and after the arrangers and editors have performed their tasks (assuming the work is printed), the music must go through a number of additional operations before it can be distributed and sold. Many firms group these activities, such as printing, warehousing, inventory control and shipping, under an "operations" department. Some of the tasks per- formed here may not be glamorous or high-paying. But jobs requiring fewer skills can provide good entry levels for persons wanting to learn the music publishing business from the ground up.

DISTRIBUTION

Publishers vary in how they handle distribution and sale of printed edi- tions. Some of the typical patterns:

• From the publisher to subpublisher (printer) to jobber to retailer to customer

• From print publisher to rack jobber to retailer to customer.

• From the publisher via direct mail to customer (educational field).

60 CHAPTER FIVE

Some subpublishers are licensed to handle everything for the prime pub- lisher—arranging, editing, printing, advertising, distribution. Such printers/ distributors may also work with rack jobbers who do the leg work, servic- ing a variety of retail outlets.

THE PROFESSIONAL MANAGER

Years ago, all publishers in the popular music field employed what were known at that time as song pluggers. Their place in the world of show business has been portrayed colorfully in the movies and other media, occasionally with accuracy. In the late 1940s, it became unfashionable to call these operatives song pluggers. Gradually, they came to be known as "professional managers." Since World War II, the professional manag- er has had to assume a role much broader in scope than song-plugging. Here are the principal responsibilities of the professional manager

—

1 - Discover and sign new writers

2- Maintain good worthing relationships with writers under contract

3- Persuade artists and producers to record the writer's music

4- Negotiate favorable rates when licensing uses of the writ- er's copyrights

5- Search out ancillary uses of those copyrights, e.g., jingles, merchandising tie-ins, etc.

Except for smaller, newer firms, most professional managers working for established publishers are individuals of long experience, lots of

"street knowledge," and form that indispensable link between the com- poser, the artist and, particularly, the record producer. Inexperienced

musicians should plan on several years of pavement pounding, listening and learning before attempting to fill the shoes of a professional manag- er. Still, small firms offer good training ground, and some versatile individuals managing small publishing firms rise fast.

ACQUISITIONS

Assuming the basic administrative structure is in place and functioning, the single most important enterprise of a music publisher is to locate new music and sign writers. This unending search for new talent and new materials makes the NFL draft and other talent-grabs seem like a friend- ly game of tag. For the music publishing business cannot manufacture its own raw material. Rather, publishers must discover talented writers among the hundreds of thousands of composers who think their music is just what the publisher wants.

MUSIC PUBLISHING 61

In searching for new material, a publisher will first turn to writers of recent success. Such composers are as sought after as recording stars. Songwriters with songs on the current charts can pick and choose their own publishers. Publishers are quick to search out the currently suc- cessful writers, often unknown to the general public, and attempt to persuade them to place their next new material with them. A variety of inducements are offered, and many successful writers change publish- ers frequently, ever seeking a better contract, stronger promotion, perhaps more congenial associates. A second source of good writers for publishers comes through the

recommendation of insiders, those in the music business whose musical judgment appears trustworthy or whose track record in the field has been impressive. A third source of usable new material are writers already under con-

tract. Professional managers often find it necessary to prod their own staff writers, urging them to keep turning out material for the insatiable market.

CRITERIA FOR ACCEPTANCE

In the popular music field and with the repertoire usually associated with it, successful publishers have developed criteria which often serve well in distinguishing acceptable material from the chaff. Most publishers, knowingly or intuitively, seem to judge material based on these criteria:

1- Does the demo "hit you?" If the music in the recording doesn't appeal to you in the first eight bars, that demo probably will never be heard to its end.

2- Has the composer been successful lately? Popular prefer- ences shift so rapidly, a publisher is safer going with a currently charted writer than with someone with an impres- sive history but no recent success.

3- What artists might record the song? What record producers can the publisher contact who might be persuaded to con- sider the song?

4- Does the material fill a current need in the catalog? Most publishers seek, over a period of time, some kind of bal- ance among the types of songs they accept. They have learned it is unprofitable to try to push, say, in one season, all country songs or all rock songs. Prudent publishers seek not only diversity, but balance. Someone might sub- mit a very attractive piece of material. But if that particular publisher is currently loaded with that kind of song, a good piece of material will probably be rejected.

5- Does the material appear to show inherent quality? What's

62 CHAPTER FIVE

this? Could it be tiiat hard-nosed publishers can be moti- vated by anything other than profit? Sometimes. Most of the decision-makers in the business love music. While

they can go broke if they pander too often to their own per- sonal tastes, many music publishers know that the best way to build a catalog of lasting value is to continue searching for, not just the surface appeal of a new song, but for music that seems to have inherent quality, music that might also appeal to listeners of the next generation.

6- When a publisher cannot manage to locate sufficient new material from the sources named above, the question may become, "Is this piece of material I just received about the best I can get my hands on right now?"

CATALOG PURCHASES

The sale of entire catalogs is common in the industry, for reasons described earlier. If the firm on the block is small and headed by a suc- cessful writer-manager, the buyer will probably seek to contract for the

ongoing services of the management team that developed the firm's early success. The price of the acquisition is usually based on a multiple of the average annual net earnings, over a three-to five-year period, of

the company being sold. This multiple is generally between seven and ten, but it can be much lower, depending on the demand and the remain- ing copyright life of the compositions being purchased. When the buyer is an existing music publisher, the costs of administering and exploiting

the new catalog (salaries, office expenses, recording sessions, etc.), are rarely figured in, as most large publishers can readily absorb these expenses.

When whole catalogs are bought up, the seller normally assigns all the rights of copyright and ownership, including subsisting contracts with

writers. This means that if the first publisher has contracted with a com- poser to publish that composer's music for the next several years, the

new publisher must honor that contract.

EDITING

Nearly all music submitted for publication needs to be edited. Very few

composers, even those classically trained, are familiar with the proper

way to prepare a manuscript for the printer. Unfortunately, in the popular field, editing standards of many publishers, including some of the major houses, are not high. Printed editions continue to be released that are

mistake-ridden. Even a simple leadsheet should be prepared by an arranger qualified in this specialized field. At this stage, the arranger-edi-

tor must correct errors in notation, perhaps even rewrite portions that do

not make good musical sense. Some editors are also qualified to polish lyrics, although this, too, is a specialized field that should be left to pro-

fessional lyricists or "lyric doctors."

MUSIC PUBLISHING 63

EDITIONS

VOICE Leadsheets (often called "professional

copies;" these are not for sale but are

given away to professionals) Voice-piano (includes ligatures and

chord symbols for guitar)

Mixed chorus (SATB, etc.), anthems cantatas, oratorios

Men's chorus, glee club, barbershop quartet, etc.

Women's chorus (SA, SSA, etc.) Classical songs, art songs

Pop choir or swing choir or jazz choir (with piano accompaniment, some- times also with bass, guitar, drums)

Folk songs (usually in folio editions) Hymns, gospel music, spirituals

PIANO Popular songs Easy piano arrangements of popular

songs, public domain material, classi- cal pieces

Classical (often graded from No. l-easy

to No. Vl-difficult)

Arrangements for piano—four hands Beginning piano student etudes, folios

Adult beginners' editions

Classical etudes—folio editions Jazz, jazz-rock arrangements—single

arrangements or folios

Classical music editions (solo recital pieces, transcriptions of orchestra

pieces, solo parts, concertos, etc.)

Improvisation study folios

ORGAN Folios for beginners (often included are

registration suggestions for electronic

organs, pipe organs)

Classical works (preludes, fugues, toc-

catas, chorale preludes)

Solos or folios of popular songs, classi-

cal music, material in the public domain

GUITAR Folios for beginners studying folk gui-

tar,classical guitar, jazz-rock guitar

Song folios—folk, pop, jazz-rock Classical pieces (issued separately or in

folios)

Group study editions (some with A/V materials)

ACCORDION Folios for beginners

Song folios—folk, pop, jazz Solo pieces

WIND, PERCUSSION INSTRUMENTS Beginners' folios (some with A/V materi-

als)

Standard solos (easy, medium, difficult) with piano

Popular song folios with piano

Study folios, exercises, etudes (stan- dard, jazz-rock)

Improvisation study folios

Ensembles (duos, trios, quartets, etc.); diverse instrumentation

STRINGS Beginners' folios

Adult beginners' folios

Etudes, various study folios for violin,

viola, violin-cello, double bass Ensembles (duos, trios, quartets, etc.)

BAND (Beginning ensemble methods (stan-

dard, jazz-rock)

Graded pieces, beginning to profession- al (standard, pop, jazz-rock, serious

concert band music) Marching band (often including marching

maneuvers, show ideas) Stage band, jazz-rock groups (graded

from easy to very difficult)

ORCHESTRA Beginning string orchestra study folios

Graded orchestra music (very easy to very difficult)

Concert folios (popular to classical)

String orchestra, single and folio editions (popular to classical)

Standard repertoire — overtures, sym- phonies, concertos, ballets, etc.

THEATRE MUSIC School operettas, musical shows Broadway shows (individual selections to

complete productions including music,

book)

Ballet scores and parts

SCORES Operas, ballets

Symphonies, symphonic poems, over- tures, etc.

Concertos

Cantatas, oratorios, etc.

Chamber music

64 CHAPTER FIVE

THE PRODUCTION LINE

If a publisher determines that a newly-acquired piece of music should be offered for sale in printed form, that music goes down a production line somewhat like other products, progressing from raw material to vendable commodity. Here is a typical line of production for a piece of printed music headed for the marketplace:

1- The publisher's acquisitions committee (or an authorized individual) determines that the piece of music should be accepted for publication and, in this instance, that it should be made available in at least one printed edition.

2- The publisher's copyright department determines that the title (ownership) of the music is clear (unencumbered), and a contract is negotiated with the author.

3- The publisher registers a claim to copyright with the Copy- right Office and places copies on file with the Library of Congress, per standard procedures.

4- The publisher's arranger (or a free-lance arranger) scores a piano-voice version of the music. The editor makes sure it is in acceptable form, then directs a copyist, autographer, or music typist to prepare camera-ready art.

5- After proofreading the above, the editor orders plates made and the printer (in-house or external) prints the music. First printings in the educational field are normally 1,000 copies.

In the case of popular song folios, a first printing may run 25,000 copies or more.

6- The printer (in-house or external) then ships and drop- ships copies of the music in accord with instructions from the publisher No set distribution patterns prevail, but two are fairly common. A publisher may ship directly to its job- bers and larger retail outlets. Or a publisher may assign to a subpublisher a license to promote, distribute and sell the entire edition.

7- h^eanwhile, the publisher or licensee's promotion/advertis-

ing people have been trying to generate sales across the land, even abroad. If they have been successful, pur- chasers put down their money and everyone is happy.

8- The publisher pays the author royalties based on sales vol- ume of the printed editions.

MUSIC PUBLISHING 65

TALENT DEVELOPMENT

Many publishers pride themselves in discovering raw talent and develop- ing it. Young writers lacking professional experience are signed to a contract, then put under the wing of an experienced professional writer.

The tutor may be the manager or perhaps another staff writer. As with Broadway musicals, whose producers may call in a "show doctor," music publishers sometimes employ what might be called "song doctors" to work with young contract writers whose material may lack professional polish.

This talent development can be most profitable when the publisher discovers a writer who also performs self-composed material. Some publishers attempt to develop, not only the composer's writing skills, but

the artist as a performer. Publishers appear to believe this kind of invest-

ment of their time and money may generate good dividends.

CONTRACTS WITH WRITERS

In the preceding chapter we discussed the AGAC contract, heavily weighted in favor of the writer. In the past at least, some publishers would not only refuse to sign it, they would require their writers to sign a

contract heavily favoring the publisher. This still goes on. In an ideal world, writer and publisher would work out a contract of equity—one that balances the interests of both parties. That would rarely occur in the real

world, because contract negotiations, by definition, are adversary rela-

tionships; each party normally goes for just about anything that can be won. But the draft that follows might serve as a model for two parties

coming to the table with about equal bargaining power. They give and take—and just might end up with something comparable to the following agreement:

66 CHAPTER FIVE

ASSUMPTIONS

Any consideration of contract negotiations requires knowledge of the background of ttie parties and their relative bargaining strengths. In this draft contract, we shall make these assumptions:

About the Writer—This is a creative person who writes both songs and instrumental pieces in the popular music genre. Prior to entering into these negotiations with our imaginary publisher, the

writer enjoyed some publishing success through modest sales of recordings of music, and has some music "in-the-trunk"—composi- tions not yet copyrighted or published, which could be assigned to

the publisher for the right kind of deal. Wanting to advance in this

career, not only as a writer but as a recording artist, the writer can

be persuaded to sign over all writing talents to the publisher exclu-

sively if the offer is good enough.

About the Publisher—The firm is well established and moderately successful, an ancillary operation of a parent record company with multinational distribution. The label's publishing wing has not yet

fully established its operations in foreign territories. The publisher

farms out all its printed music activity. The publisher has strong faith

in the potential earning power of the prospective writer and seeks

the writer's exclusive services.

DRAFT CONTRACT

I This draft is for study purposes only. The author recommends that

each party entering into contract negotiations retain legal counsel to

I recommend the actual language of any agreement.

AGREEMENT made (date) by and between

the Writer and

, the Publisher

1.0 Appointment. The Publisher appoints the Writer as a composer, Ijrri- cist, arranger, orchestrator, and/or music editor, and the Writer's services as a writer shall be rendered exclusively for the Publisher and no other publisher. Services performed iinder this agreement shall not be deemed to be work made for hire as defined imder United States copyright law.

2.0 Term. This agreement starts on (date) and ends on (date) .^ The Publisher is granted options to extend this agreement, by one-year increments of extension for addi-

1 - This kind of exclusive term contract in earlier times was often limited to one year Even

enterprising publishers are often unable to develop acceptance of a composition in the first

year of a contract.

MUSIC PUBLISHING 67

tional years, but not to exceed an aggregate total of years,2 on the identical terms and conditions of the initial term. The foregoing notwithstanding, the Writer retains the option to deny these extension options imless the Publisher has obtained, directly or indirectly,

commercially released recordings of the Controlled Compositions dur- ing the time period of . This shall be referred to hereafter as "The Recording Goal. "^

2.1 If the Publisher's parent recording company terminates the Writ- er's contract with it as a royalty artist, this Writer's contract shall be coterminous with that recording contract. ^

3.0 Assignment. The Writer assigns to the PubUsher all rights through- out the world in the compositions listed on Schedule A attached here.^ Throughout this contract the word "composition" shall include music, words and title.

3.1 The Writer also assigns to the Publisher all rights in the composi- tions created by the Writer during the term and under the conditions of this agreement. The foregoing notwithstanding, these works are offered to the Publisher on a first-refusal basis only. If the Publisher does not agree to accept them for pubUcation and exploitation within 60 days of their being offered, the Writer reserves the right to assign them to any other publisher.

All works hsted on Schedule A, together with aU works described imder 3.1 which the Publisher accepts, are referred to hereinafter as the Controlled Compositions.

4.0 Warranty. The Writer warrants that the Controlled Compositions are original, and as the sole author and composer, the Writer has not borrowed, paraphrased or otherwise used any other copyrighted mate- rial for them.

4.1 The Writer indemnifies the Publisher against financial loss if a copyright infringement action or similar action is adjudicated as merito- rious, or in a situation where any copyright infringement action is settled and made with the Writer's consent.

5.0 Royalties. In consideration of this agreement the Publisher agrees:

2-ln California a contract for personal services cannot normally be enforced for a period longer tfian seven years. In New York State there are precedents for contracts of this kind being enforceable for up to ten years. Five-year term contracts are probably the most com- mon today, whatever statutory limitations might prevail.

3-The AGAG contract allows the publisher one year to obtain a commercially released recording of the particular song under contract, unless the publisher pays the writer a sum of money to "buy" six additional months' time to attain that goal. Failing this, all rights to the song revert to the writer.

4-A reasonable "recording goal" might be getting record deals for one-half the Controlled Compositions. See 12.0 for the consequences of the recording goal not being reached.

5-While coterminous contracts are often inadvisable, in this instance the writer would want to be released from the publishing contract in order to be free to negotiate a new publishing deal with another record company.

6-This list would probably include all of the works the writer had "in the trunk" prior to sign- ing this contract which had not been previously published or othenwise encumbered by prior commitment. Some lawyers recommend their clients grant only administrative rigtits to a writer's available works composed prior to a term contract.

68 CHAPTER FIVE

8.0-A To pay the Writer $ in twelve equal monthly install- ments, and the receipt of the first installment is hereby acknowledged, as a non-returnable advance against royalties, and these payments shall remain the property of the Writer and shall be deductible only from payments becoming due the Writer under this contract.

8.0-B To pay the Writer one-haJf of the Publisher's net receipts from the United States and Canada generated by the Controlled Compositions through the granting of licenses, rights, permits to and for all media of communication now known or later developed. All monies due Writer from the Publisher are to be held in a trust account until paid.

8.1 The foregoing notwithstanding, the Writer shall not receive any of the Publisher's share of any income from any performing rights orga- nization anywhere in the world. The Publisher shall not receive any of the Writer's share of any income from any performing rights organiza- tion anywhere in the world.

8.2 The Publisher shall not grant any mechanical license at a rate lower thaji the prevailing statutory maximum to any individual or company with whom the Publisher has ajiy affiliation or financial interest.'''

8.3 To pay the Writer 10 percent of the wholesale price on the sale of all printed editions in the United States and Canada.

8.4 Royalties are to be paid for each separate Controlled Composition ajid the Writer denies the Publisher the right to cross-coUateralize roy- alties except to the extent required for recovery by the Publisher of all royalties advanced to the Writer. No cross-collateralization of any kind is permitted the Publisher in respect to any royalties or other pay- ments made to the Writer by the Publisher's affiliated record company. If a dispute arises between the parties, the royalties applicable to the disputed Controlled Composition(s) shall not in any way limit or delay payment of royalties due the Writer from any other Controlled Compo- sition.

8.8 Where a Controlled Composition has more than one author or com- poser, the share of royalties among them shall be apportioned in accord with Addendum No. attached here. When the Publisher engages an author or composer to function with the Writer as a cowrit- er, song "doctor," or arranger, the sharing of writers' royalties shall be apportioned in accord with the relative value and extent of the creative contributions of the Writer and cowriters and these apportionments shall be negotiated by the parties in good faith.

8.6 If the Publisher engages the Writer as an arranger, orchestrator, editor or copyist, the Writer will be paid the equivalent of AFM union scale for such services, and such payments shall be over and above all other advances and royalties provided for in this contract.^

6.0 Foreign Rigjits. The parties recognize that their relationships with foreign publishers, subpublishers, affiliates and licensees are presently

7-This clause prevents the publisher from offering anyone a "sweetheart" deal, and helps guard against the 3/4 statutory rate commonly found in "Controlled Compositions" clauses in artist contracts.

8-lnstead of this, the parties might negotiate a graduated royalty rate. See the AGAC for- mula.

MUSIC PUBLISHING 69

in flux, and the Writer and Publisher agree to determine, by mutual consent, the fair sharing of royalties and other income derived outside the United States and Canada on a territory-by-territory basis. These issues shall be negotiated in good faith, and the terms and conditions shall be set forth in addenda attached here.io

7.0 Promotion Expense. The Publisher shall be solely responsible for all promotion expense, including the production of audio and video demonstration tapes or discs.

7.1 If the Publisher engages the Writer to perform on any demo, the Writer shall be paid wages equivalent to applicable union scale.

7.8 If the ownership and copyright of any Controlled Composition should transfer from the Publisher and revert to the Writer, aU demos on that composition become the property of the Writer.

8.0 Right to Audit. The publisher grants to the Writer the right to engage a qualified accountant to examine the Publisher's books and related financial docimients, following receipt of reasonable notice. The cost of any such audit is to be borne entirely by the Writer except that, in respect to ajny royalty statement rendered by the Publisher, if the Writer is found to be owed a sum equal to or greater than percent! 1 of the sum shown on that particular royalty statement as being due the Writer, then the Publisher shall pay the entire cost of the audit, but not to exceed percenti^ of the amount shown to be due the Writer.

9.0 Creative Rights. The Publisher acknowledges that the Writer's repu- tation and potential income relate importantly to the originality and quality of the Controlled Compositions as weU as to their use. The Writ- er acknowledges, however, that the Publisher has the right to make unessential changes in the compositions and has the day-to-day respon- sibility of determining the best way to exploit the compositions. To balance these interests of the parties in this respect, it is agreed that the Publisher has the right to do any or aU of the following in this con- text only with the consent of the Writer, whose consent shall not be unreasonably withheld:

9.0-A Engage a lyricist to materially alter the Writer's lyrics or to write new lyrics.

9.0-B Make substantive changes in the Writer's music.

9-lf the income of the writer under this contract fails to aggregate a reasonable amount, the contract may not be enforceable in some states in that the publisher has the writer completely tied up as exclusive writing "property," thus denying the writer the opportunity of finding additional writing income outside. In California, there are precedents of courts refusing to enforce exclusive services contracts of this kind where the writer's annual writ- ing income failed to total $6,000.

1 0-The parent contract is left open-ended here to provide the parties an opportunity to remain flexible in response to rapidly changing foreign markets. While the parties might agree on a worldwide fifty-fifty split of income, equity might be better served by negotiating deals territory-by-territory.

1 1 -The AGAC contract calls for five percent here. Ten to 1 5 percent might be reason- able, at least from the publisher's point of view.

12-The AGAC contract calls for 50 percent here.

70 CHAPTER FIVE

9.0-C Grant a synchronization license for a Controlled Composition.

9.0-D Use the Writer's likeness, photograph, or name to exploit a product or service without the Writer's consent in respect to appropri- ateness and good taste and without paying the Writer a royalty commensurate with the exploitation value.

9.0-E License a Controlled Composition for use in connection with a broadcast commercial, print advertisement or merchandising of a product or service.

9.0-P Grant a Grand Right in connection with the production and performance of a Controlled Composition as a dramatic musical work.

10.0 liiinited Power of Attorney. The Writer appoints the Publisher as his/her attorney-in-fact to represent his/her interests, but only in respect to the Controlled Compositions. In this role the Publisher may negotiate and sign contracts, grant licenses, control trusts and other- wise act on behalf of the Writer.

The foregoing notwithstanding, the Pubhsher may sign contracts and other major documents only in those instances where the Writer is unavailable within a reasonable time to sign.

This limited power of attorney may not be revoked at any time except when the Writer reasonably determines that the Publisher has used this limited power of attorney improperly and against the Writ- er's best interests. ^^

11.0 Right of Assignment. The Publisher reserves the right to assign this contract to another fully qualified publisher capable of serving the Writer's interests in a professional manner. The Writer grants this right of assignment provided the assignee assumes all the responsibil- ities and obligations of the first publisher set forth in the present contract.

18.0 Reversion. If the Recording Goal is not reached, the Writer will grant the Publisher a "nm-out period" of six months beyond the ini- tial term set forth under 2.0. If, by the end of the run-out period, the Recording Goal has still not been reached, all rights in any Controlled Composition not released revert totally to the Writer.

13.0 Default, Cure. If either the Pubhsher or the Writer asserts that the other party is in default or breach of this contract, the aggrieved party shall provide written notice setting forth the nature of the dis- pute. The accused party is then allowed 30 days to cure the alleged default, during which period no default or other grievances shall be deemed incurable.

14.0 Arbitration. The parties agree to submit all disputes to the American Arbitration Association and be bound by and perform any award rendered in such arbitration.

Publisher Writer

County of — State of —

13-This limited power of attorney would be too constricting, in the view of most publish-

ers, and they would probably accept it only from a writer whose bargaining power was stronger than their own.

MUSIC PUBLISHING 71

SPLIT COPYRIGHTS, COPUBLISHING

In recent years, it is not unusual to find one-half or more of the songs on

the pop charts "published" by two to even four or more "publishers." In

reality, nearly all these split publishing deals are simply a number of per- sons or firms agreeing to share the publishing income, not the publishing

responsibilities. They are "copublishers" in name only, as a rule. In many cases, the rightful authors have probably had their arms twisted to induce

them to share the publishing income—^with a record label, record produc- er, attorney, or manager who wants to get in the act—and does—fairly or through coercion. Here is another manifestation of how irresistible music industry people find the music publishing business.

When the bundle of rights under copyright is split, administration of the property can be difficult. Where coauthors are involved and belong to the same performance licensing organization, ASCAP, BMI and SESAC will honor directions from the co-owners to divide performance royalties

due the publishers involved. Performance licensing organizations, how-

ever, resist splits requiring them to share with a competitor. In respect to mechanical royalties and synchronization fees, the Harry Fox Agency is accustomed to splitting monies in accord with instructions it receives from copyright proprietors.

Joint administration of copyright requires specific contractual arrange-

ments for sharing of synchronization fees. While synchronization rights

apply worldwide, differences of opinion prevail on how income from this source should be shared. In the past, most publishers have believed it

equitable to attribute 50 percent of synchronization fee income to the

United States, and the balance to foreign sources. Administration of copyrights outside this country should be assigned entirely to one co- owner or the other, because sharing of the responsibility leads to confusion and lack of control. This is particularly important, because in

some foreign countries a unilateral commitment by one co-owner may be binding on the other.

Where a work has two authors, and two publishers split the copyright, one writer's share comes from one publisher, one from the other. Unless otherwise provided in a joint administration agreement, mechanical roy-

alties will be equally divided by the two publishers, and each publisher will then be able to pay its writer only one-half of one-half of such income, or 25 percent net.

Joint administrations of copyrights have led to coercion and abuses in the past, particularly when not all of the parties involved have been made aware of possible side agreements or under-the-table deals. The "cut-in" is an example, where the copyright proprietor does not split own- ership, but cuts in someone for a piece of the pie. Under controlled circumstances, the cut-in can be fair and work even better than joint administration; a single administration is generally preferable to one that is shared. But a cut-in agreement should specify certain limitations: it should be limited to payments on mechanicals derived from a particular

record by a specified artist for a finite period. If a work is recorded but never commercially released, the cut-in deal should be automatically voided or the property fully recaptured.

72 CHAPTER FIVE

One final note regarding alleged coauthorship. For many years, song- writers have sometimes agreed to add the name of a recording artist to a song in the expectation that such flattery (and potential income) would induce the artist to record the song. Under the 1976 Copyright Act, any falsification of the actual writers of a copyright may constitute fraudulent registration. A word to the wise.

PROMOTION, ADVERTISING

POPULAR MUSIC

The main concern of a publisher of popular songs is getting music re- corded and broadcast. Such activities are not only profitable in and of themselves, but they acquaint the public with the music, and those peo- ple then frequently go out and buy printed editions. This, in turn, gene-

rates still more income. Publishers persuade artists and record producers to record their music

generally through direct, personal contacts. Even though the publishing

and recording industries are huge, much of the power and control lies in the hands of a relatively small number of "insiders"—the recording artists, record producers, established composers and important managers. Pub-

lishers place on their payrolls the kind of promotion personnel who know the insiders, the power brokers, understand their needs, keep track of market trends and changing tastes, then deliver "the right material."

Song Casting—One of the most critical functions of a publisher is to attempt to match songs with performers. A professional manager and staff analyze each song and search out those particular recording artists

they believe have a performing style that is "right" for the material. This is

often called "song casting" and it is as critical a task as casting a TV show or Broadway play. This matching of artist to repertoire used to be the principal concern of staff record producers, hence their appellation,

"artist and repertoire producers." Producers and publishers are, then,

engaged in essentially the same enterprise—casting songs and record- ing them. Those persons who know how to do this well are scarce, in high demand and well paid.

Ralph Peer II, who rose to prominence as vice-president of Peer- Southern, one of the largest popular music publishers, has said that the

song casting process often works in reverse for prestigious publishers:

record producers will contact the publisher, listing their current needs,

and ask the publisher to supply material the publisher believes "right" for

a particular recording project. A publisher enjoying this kind of prestige has a good share of work done by producers and artists who believe the firm has good casting judgment and strong material.

Experienced publishers understand that, at the outset, only a select

number of recording artists will even consider their material. This is because so many acts in popular music are "self-contained"—the indi- vidual performer or group uses only its own material. Rarely do self-con- tained acts accept outside songs. Accordingly, the smart publisher rarely

spends much energy trying to cast songs with an act already self-sup- plied.

MUSIC PUBLISHING 73

Cover Records—The publisher who has a self-contained act under contract understands, or should understand, that once the material is ini-

tially recorded by that act, the publisher's exploitation job has only begun.

Now the principal concern is getting cover records—inducing other artists to record the song. Whatever the size of a publisher's catalog, the long- range income of the firm largely depends upon the number of "covers" generated over the years.

Getting cover records will be very difficult unless the publisher has been discreet in the material placed in the catalog. This is why experienced pub- lishers generally pass on material that appears to be just "album cuts." The unending search is for potential hit material. Most recording artists already have available, from their own hands or from insiders and friends, all the album-cut material they believe they can use. Therefore, knowledgeable

song promoters generally limit the material they submit to songs they believe might make it as a single. Of course, no one can predict hit materi- al, but successful publishers guess correctly rather often.

Another aspect of promotion is the publisher offering services directly

to record companies. The two kinds of companies, their economic inter- ests almost identical, work out cooperative promotion campaigns for new material, frequently in connection with personal appearances of recording

artists.

As for advertising in the pop field, it is almost wholly addressed to the amateur musician, students and teachers. Print advertising addressed to professionals can hardly be said to exist. With professionals, it is a word- of-mouth type of promotion, quite often one-to-one contacts.

EDUCATIONAL FIELD

Promotion of printed music intended for student and school use is accomplished in two ways. First, publishers active in the educational field

spend most of their advertising budgets on direct mail campaigns. Music educators receive dozens of these promotional mailings every month. Printed samples of new releases are also included in these mailings in the form of "thematics," short extrapolations of themes from complete works. The educator, when "sold" by such mailings, proceeds to place an order either by telephone, or more likely, by mail.

A second promotional scheme involves publishers placing display ads in music education journals. Media of this type with the largest circulation include Music Educators Journal, NAJE Educator, the Instrumentalist, School Music and Down Beat. A unique promotional device used in the educational field is the "read-

ing clinic." Large retailers or an educational group will cohost day-long

readings of new publications. Educators attend these readings (school ensembles are used) and subsequently place orders with their dealers to cover their needs for the school year.

CLASSICAL FIELD

Publishers of chamber music, art songs, operas and ballets have their own ways of acquainting potential buyers with their music. Unlike the

74 CHAPTER FIVE

pop and educational fields that focus on new music, classical music pub- lishers are usually engaged in "reminding" customers, rather than promoting, the great music of the past. They periodically enliven their

catalogs with new compositions and arrangements, but the bulk of their sales comes from reprints and new editions of the classics. New serious works of any length are rarely printed, because anticipat-

ed sales would not usually produce enough money to cover costs of production. In lieu of direct sales, such works as new operas, ballets and symphonic works are made available through rental of the scores and parts for performance. In respect to dramatic musical works, publishers

often get additional income by charging performance fees. Dramatic

works by major contemporary composers produce fairly good income for

both publishers and writers. Classical music is also promoted through display ads placed in music

journals. A large part of the classical and semi-classical repertoire spills over into the educational field, and most publishers sell to schools and

colleges either the original scores and parts or arrangements scored

specifically for school use.

Income for publishers of classical music from recordings is negligible,

because most of the repertoire is in the public domain.

INCOME SOURCES One of the reasons publishing income can become large is that it is gen- erated from so many diverse sources. The most important ones are shown in Figure 5.4. Over the long term, the all-time money earner is probably the Broadway musical. If we were to aggregate the income of a dramatico-musical work such as South Pacific or A Chorus Line including grand rights, performance income of hits from the show, print rights,

movie rights, mechanical royalties, these receipts would probably exceed

all the money generated by the stage production at the box office. Not all publishers own these kinds of multimillion-dollar properties, but stan- dards of lesser value and current hits are in demand for merchandising tie-ins for such diverse uses as computer software, greeting cards,

Fig 5.3

PUBLISHER'S CASH FLOW

INCOME \ A OUTGO \ Broadcast Performances \ Non-broadcast Perfor- \ "\ Administrative Overhead \

mances \ Mechanical Licenses, Iran- \ "

\ Promotion, Promo Materials \

Royalties \ scriptions \

Synchronization Licenses / Commercials, Permissions / Jukeboxes, Printed Editions /

Grand Rights, / Foreign Rights /

w /

Legal Services, /

'" /

MUSIC PUBLISHING 75

apparel, posters, stationery, etc. Licensing fees, individually considered,

for uses of tfiis kind will rarely be high, but when aggregated, money from these ancillary sources can generate a respectable share of a pub-

lisher's annual income.

Except where a compulsory license is involved (Chapter 7), a publish-

er has the option of granting permissions-to-use either on a royalty basis

(a percentage on sales), or a one-time flat fee. The latter option will be

preferred where only small sums are involved, in that a one-time license fee is simpler to collect and does not require extended bookkeeping of

royalty fees.

PUBLISHER'S POTENTIAL INCOME SOURCES

TYPE OF MUSIC USE

1- Broadcast performances (TV,

radio, cable)

2- Non-broadcast performances (clubs,

hotels, stadiums, environmental music,

inflight music, aerobic and dance

studios, etc.)

3- "Mechanical" royalties (disc, tape

and CD sales)

4- Sheet music sales

WHO PAYS THE PUBLISHER

Publisher's performing rights

organization

Publisher's performing rights

organization

Record company

Publisher's licensee

5- Synchronization of music to film

or tape (movies, videos)

6- Special permissions, licenses

(merchandising deals such as

musical greeting cards, toys and dolls, lyrics used in books and

magazines, etc.)

7- Jukeboxes

8- Dramatic (or "grand") rights

9- Foreign rights

Movie and video producers

Music users

Publisher's performing rights

organization

Producer of the dramatic

performance

Subpublishers, licensees

abroad; reciprocating performing

rights organizations (through

ASCAP, BMI & SESAC)

Fig. 5.4

76 CHAPTER FIVE

NMPA

The trade association most representative of publishers in the popular music field is NMPA—the National Music Publishers Association. While its membership is relatively small, it provides important services for more than 4000 publishers who are not NMPA members. In recent years the NMPA has been active in campaigning for publishers' protection from home duplicating and piracy and in advocating restraints on those record labels which demand their artists sign controlled composition clauses. NMPA was originally set up to provide a clearinghouse for publishers

who were being asked for rights to synchronize their music to the then- new entertainment medium, "the talkies." In the 1930s NMPA added to its services the licensing of music for electrical transcriptions for radio broadcast. In 1938 it began to license and collect fees for "mechanicals." The organization NMPA set up to provide these services became known as the Harry Fox Agency. In 1969 the Harry Fox Agency became the wholly-owned subsidiary of NMPA.

HARRY FOX AGENCY

The Harry Fox Agency, through individual authorizations and instructions from its principals, acts in the following areas:

1- Licensing of copyrights for commercial records and tapes to be distributed to ttie public for private use

2- Collection and distribution of royalties derived from suchi licensing

3- Auditing tfie books of record manufacturers

4- Licensing of musical compositions for motion picture and television syncfironization

5- Licensing of tfieatrical motion picture performing rights in the United States only

6- Licensing the recording of music for other than private use, such as background music, in-flight music and syndicated radio services

7- Licensing music for television and radio commercials

The Harry Fox Agency does not act in the area of licensing public perfor- mance (except as indicated above), grand and dramatic rights, print rights and derivative uses (music arrangements). Further information on how the agency functions is found in Chapter 7.

MUSii^POPYRIGHT

Every serious student of copyright should acquire a complete copy of

the Copyright Act, together with other special publications and bul-

letins relating to copyright. These documents are available, without charge, from the Register of Copyrights, Copyright Office, Library of

Congress, Washington, D.C. 20559.

If legal advice or other expert assistance is required, the services

of a competent professional should be sought.

BACKGROUND

passed in 1976 (United States Code, Title 17 — Copyrights). That statute became generally effective in 1978. Until that time all U.S. copyrights were governed by the 1 909 copyright statute. However, the First Con-

gress had passed the first U.S. copyright law in 1790, based on the pow-

er given to Congress in Article I, Section 8 of the Constitution, which

states, "The Congress shall have power. ... To promote the Progress

of Science and useful Arts, by securing for Limited Times to Authors and Inventors the Exclusive Right to their respective Writings and Dis-

78 CHAPTER SIX

coveries. . ." Comprehensive revisions were enacted in 1831, 1870 and 1909. The copyright statutes have been based largely on British law (as was much of the U.S. Constitution), particularly the Statute of Ann, passed by the British parliament in 1710.

In 1955 the United States became a party to the Universal Copyright Convention and in 1989 joined the Berne Convention. Congress began

its efforts in 1955 to revise the 1909 Copyright law, a project that took

over 20 years to complete. From the outset, the goal of Congress was to seek a balance of interests between copyright owners and users. ^ This

search for balance and fairness was aided yet inhibited by the special interest groups that affect most legislation. Revising the 1909 law was a tough battle of opposing forces, not so much because of Congressional concern for the creators of "intellectual property," but because multibillion-

dollar industries, such as recording, radio and TV, were involved in seek-

ing to protect their economic interests. f\/lany members of Congress con- sistently sided with the arguments of the National Association of Broad-

casters, particularly in regard to the NAB's strong opposition to paying

performance fees for broadcasts of recorded music.

A strong lobby against the interests of copyright owners was the juke- box industry, which managed to escape with a license fee far lower than copyright owners believed they were entitled to receive. The legislative

battle ended 21 years after it began, with a "General Revision" of the

1 909 law. Although the 1976 Act represents the "letter of the law" for many prac-

tical purposes, it should be remembered that the battle of interests continues. For example, in 1989 the U.S. joined the Berne Convention,

an international copyright treaty, to enhance economic protection for American authors, composers and copyright owners around the world,

and the 1976 Act was amended to satisfy U.S. obligations under the treaty (see International Copyright, Appendix). Under Berne, jukebox

licenses between the user (jukebox operator) and the copyright owner

are now negotiated rather than statutorily mandated compulsory licenses. The 1976 Act has been interpreted in widely varying ways by different

courts, and it is well to remember that copyright law involves not only examining the "letter of the law," but developing persuasive interpreta-

tions of the statute.

In order to develop valid interpretations, however, it is necessary to

first be aware of the law's basic terms and provisions.

ESSENTIAL PROVISIONS OF THE COPYRIGHTACT

In passing the 1976 Copyright Act, Congress stated its intent was that implementation of the law ". . . would minimize any disruptive impact on

the structure of the industries involved and on generally prevailing indus-

try practices." ^

1-1976 Copyright Act, Chapter 8

2-lbid

MUSIC COPYRIGHT 79

A summary of the law's essential provisions:

1- The statute preempts nearly all other copyright laws — federal, state, and common law. This elimination of the crazy quilt of prior statutes was probably the most important gain for all con-

cerned.

2- Duration of copyright was lengthened and now conforms more closely to practices prevailing throughout most of the rest of the

world: life of the author plus 50 years.

3- Exclusive rights of copyright owners were clarified, strengthened

and extended.

4- Protection of copyright owners of sound recordings was clarified

and extended, but a performance right was specifically denied.

5- Public broadcasters, CATV companies and jukebox operators were compelled to start paying for the use of copyrighted music,

as were schools and colleges.

6- "Fair Use" was defined (though not as clearly as it should have

been) and extended in scope.

7- Policies and rates of music-use licenses were to be periodically reexamined.

8- Some kinds of mistakes on following through on formalities were treated more permissively.

TERMS DEFINED

An understanding of copyright is dependent upon awareness of how the current law defines its terms. Definitions which follow are, in most instances, quoted directly from Section 101 of the 1976 Copyright Act. (Language therein which does not relate to music has been deleted.)

"AUDIOVISUAL WORKS" are works that consist of a series of related images which are intrinsically intended to be shown by the use of machines or devices

such as projectors, viewers, or electronic equipment, together with accompanying

sounds, if any, regardless of the nature of the material objects, such as films or

tapes, in which the works are embodied.

The "BEST EDITION" of a work is the edition, published in the United States at any time before the date of deposit, that the Library of Congress determines to be

the most suitable for its purposes.

80 CHAPTER SIX

"COMMON LAW" is that body of "trade customs" and decisions made by courts over the years which, through widespread acceptance, have come to be recog- nized as fair and equitable.

A "COMPILATION" is a worl< formed by the collection and assembling of preex- isting materials or of data that are selected, coordinated, or arranged in such a way that the resulting work as a whole constitutes an original work of authorship. The term "compilation" includes collective works.

"COPIES" are material objects, other than phonorecords, in which a work is fixed by any method now known or later developed, and from which the work can be perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or device. The term "copies " includes the material object, other than a phonorecord, in which the work is first fixed.

"COPYRIGHT OWNER, " with respect to any one of the exclusive rights com- prised in a copyright, refers to the owner of that particular right.

A work is "CREATED" when it is fixed in a copy or phonorecord for the first time; where a work is prepared over a period of time, the portion of it that has been fixed at any particular time constitutes the work as of that time, and where the work has been prepared in different versions, each version constitutes a separate work.

A "DERIVATIVE WORK" is a work based upon one or more preexisting works, such as a translation, musical arrangement, dramatization, fictionalization, motion

picture version, sound recording, art reproduction, abridgment, condensation, or any other form in which a work may be recast, transformed, or adapted. A work consisting of editorial revisions, annotations, elaborations, or other modifications

which, as a whole, represent an original work of authorship, is a "derivative work.

A "DEVICE, " "MACHINE, " or "PROCESS" is one now known or later developed.

To "DISPLAY" a work means to show a copy of it, either directly or by means of a film, slide, television image, or any other device or process or, in the case of a motion picture or other audiovisual work, to show individual images nonsequen- tially

A work is "FIXED" in a tangible medium of expression when its embodiment in a copy or phonorecord, by or under the authority of the author, is sufficiently perma-

nent or stable to permit it to be perceived, reproduced, or otherwise communica-

ted for a period of more than transitory duration. A work consisting of sounds, images, or both, that are being transmitted, is "fixed" for purposes of this title if a

fixation of the work is being made simultaneously with its transmission.

To "PERFORM" a work means to recite, render, play, dance, or act it, either directly or by means of any device or process or, in the case of a motion picture or other audiovisual work, to show its images in any sequence or to make the sounds accompanying it audible.

MUSIC COPYRIGHT 81

"PHONORECORDS" are material objects in wfiich sounds, ottier than those accompanying a motion picture or other audiovisual worl<, are fixed by any

method now l<nown or later developed, and from which the sounds can be per- ceived, reproduced, or otherwise communicated, either directly or with the aid of

a machine or device. The term "phonorecord" includes the material object in

which the sounds are first fixed.

A "PSEUDONYMOUS WORK" is a work on the copies or phonorecords of which the author is identified under a fictitious name.

"PUBLICATION" is the distribution of copies or phonorecords of a work to the

public by sale or other transfer of ownership, or by rental, lease, or lending. The

offering to distribute copies or phonorecords to a group of persons for purposes

of further distribution, public performance, or public display, constitutes publica-

tion. A public performance or display of a work does not of itself constitute publication.

To perform or display a work "PUBLICLY" means 1) to perform or display it at a place open to the public or at any place where a substantial number of persons

outside of a normal circle of a family and its social acquaintances is gathered; or

2) to transmit or otherwise communicate a performance or display of the work to

a place specified by clause (1) or to the public, by means of any device or pro-

cess, whether the members of the public capable of receiving the performance or display receive it in the same place or in separate places and at the same time or at different times.

"SOUND RECORDINGS" are works that result from the fixation of a series of musical, spoken, or other sounds, but not including the sounds accompanying a

motion picture or other audiovisual work, regardless of the nature of the material

objects, such as discs, tapes, or other phonorecords, in which they are embodied.

A "TRANSFER OF COPYRIGHT OWNERSHIP" is an assignment, mortgage, exclusive license, or any other conveyance, alienation, or hypothecation of a

not it is limited in time or place of effect, but not including a nonexclusive license.

A "TRANSMISSION PROGRAM" is a body of material that, as an aggregate, has been produced for the sole purpose of transmission to the public in sequence

and as a unit.

To "TRANSMIT" a performance or display is to communicate it by any device or process whereby images or sounds are received beyond the place from which

they are sent.

A "USEFUL ARTICLE" is an article having an intrinsic utilitarian function that is not merely to portray the appearance of the article or to convey information. An article that is normally a part of a useful article is considered a "useful article.

82 CHAPTER SIX

A "WORK MADE FOR HIRE" is I) a work prepared by an employee within tine scope of his or her employment; or 2) a work specially ordered or commissioned

for use as a contribution to a collective work, as a part of a motion picture or other

audiovisual work, as a translation, as a supplementary work, as a compilation, as

an instructional text, as a test, as answer material for a test, if the parties

expressly agree in a written instrument signed by them that the work shall be considered a work made for hire. For the purpose of the foregoing sentence, a "supplementary work" is a work prepared for publication as a secondary adjunct

to a work by another author for the purpose of introducing, concluding, illustrating,

explaining, revising, commenting upon, or assisting in the use of the other works,

such as musical arrangements. . .^

Again, keep in mind that in a court of law, it is expected that creative attorneys will attempt to interpret definitions to suit their clients' interests.

As such, these and other definitions are not carved in stone from a practi- cal perspective, but serve to focus attention on important interpretive

issues.

SCOPE, COVERAGE

Copyright protection does not extend to ideas themselves, but only to the expression of those ideas. This important distinction prevents someone from legally protecting the idea of "reggae music," for example. A particu- lar expression (e.g., a reggae song by Ziggy Marley) may be protected, but the idea itself (the beat, the general concepts defining the genre, etc.)

cannot. This allows the normal development of musical forms, which typi-

cally involves heavy borrowing from other sources, but prohibits exploi-

tation of a particular artist's expression of an idea. Copyright protection subsists in original works of authorship. Such

works must be "fixed in any tangible medium of expression, now known or later developed, from which they can be perceived, reproduced, or oth-

erwise communicated, either directly or with the aid of a machine or device " "Works of authorship'"* include:

• Literary works

• Musical works, including any accompanying words

• Dramatic works, including any accompanying music

• Pantomimes and choreographic works

• Pictorial, graphic, and sculptural works

• Motion pictures and other audiovisual works

• Sound recordings

3- Op. cit., Section 101

4- Op. cit., Section 102

5-Op. cit., Section 104

MUSIC COPYRIGHT 83

The works listed above are subject to protection under the law even if unpublished, without regard to the nationality or domicile of the author. In

respect to published works, protection is accorded if 1), on the date of

first publication, one or more of the authors is a national or domiciliary of the United States, or is a national, domiciliary, or sovereign authority of a

foreign nation that is a party to a copyright treaty to which the United

States is also a party, or is a stateless person, wherever that person may be domiciled; or 2), the work is first published in the United States or in a foreign nation that, on the date of first publication, is a party to the Uni-

versal Copyright Convention^; or 3), the work is a Berne Convention work. Subject matter of copyright as listed above includes compilations and

derivative works. But it should be noted that protection here does not extend to any part of a compilation or derivative work in which such mate- rial has been used unlawfully. Also, copyright in compilations and deriv- ative works extends only to the material contributed by the author of such work (as distinguished from the preexisting material employed in the work) and does not imply any exclusive right in the preexisting material. The copyright in compilations and derivative works is independent of and does not affect or enlarge the scope, duration, ownership, or subsistence of any copyright protection in the preexisting material.

It can be noted here also that copyright does not extend to publications of the U.S. Government. An individual may quote from such publications without concern for copyright infringement.

EXCLUSIVE RIGHTS

Understanding of copyright is dependent on awareness of Section 106, which specifies how the Act vests five distinct exclusive rights in the author of a work. Subject to certain limitations, the 1976 Act states that the owner of copyright has the exclusive right to do or to authorize any of the following:

THE FIVE EXCLUSIVE RIGHTS

1- To reproduce the copyrighted work in copies or phonorecords.

2- To prepare derivative works based upon the copyrighted work.

3- To distribute copies or phonorecords of the copyrighted work

to the public by sale or other transfer of ownership, or by rent- al, lease, or lending.

4- To perform the copyrighted work publicly

5- To display the copyrighted work publicly.

These five exclusive rights constitute the heart of the statute.

84 CHAPTER SIX

LIMITATION OF RIGHTS, FAIR USE

If the law included only the foregoing information concerning the subject

matter of copyright and the listing of exclusive rights, a non-lawyer might

get along reasonably well under the 1976 Act. But much of the act, partic- ularly Sections 107 through 112, concerns the limitations of these rights.

Since the nineteenth century, the courts have held that certain kinds of

uses of copyrighted material are "fair," within reason, and not an infringe-

ment or materially damaging to a copyright owner. This tradition was validated and codified, to a large extent, in the 1976 law. This law

attempts to define what now constitutes fair use ^ and Congress, in pass- ing the legislation, attempted to reconcile the rightful interests of the

schools, libraries, churches and noncommercial broadcasters.

Notwithstanding the exclusive rights the law defines, the fair use of a

copyrighted work, including such use by reproduction in copies or

phonorecords, or by any other means specified by Section 106 of the law, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, "is

not an infringement of copyright." In determining whether the use made of a work in any particular case is a fair use, four criteria have been estab-

lished by prior court actions and are incorporated in the new law:

1- The purpose or character of the use, iricluding whether such use

is of a commercial nature or is for nonprofit educational purpos-

es.

2- The nature of the copyrighted work.

3- The amount and substantiality of the portion used in relation to the copyrighted work as a whole.

4- The effect of the use upon the potential market for or value of

the copyrighted work.

The "fair use" doctrine, a legal defense to a copyright infringement

claim, essentially allows minimal takings of copyrighted material for the

nonprofit furtherance of scholarship, research and the arts. Any substan-

tial taking, or a taking related to a commercial use, is likely to be looked

upon by the court as an infringement. Specific definitions of fair use and other exempt activities and perfor-

mances in Sections 107 through 112 of the Act will be of particular interest to schools, libraries, and other nonprofit organizations which have

enjoyed exemptions from licensing and payment for performances in the

past.

6- Op. cit., Section 107

MUSIC COPYRIGHT 85

Some analysts point out a potential conflict between First Amendment free speech rights and the fair use doctrine of copyright law. While copy- right law provides an incentive for authorship, some critics say it gives creators monopoly rights which may conflict with public interest in the dis- semination of information. A counter-argument runs that copyright pro- tection extending only to the expression of ideas (as opposed to the ideas themselves) allows free speech to flourish.

The late Professor Melville Nimmer of UCLA, a leading authority on copyright law, noted that the line between idea and expression might not be so easily drawn. As an alternative to an outright taking of copyrighted material, Nimmer recommended compulsory licensing when public inter- est conflicts with copyright law (see compulsory licensing). Are the idea and the expression of the idea merged in recorded music? This is the type of question which may lead to copyright litigation.

Fair Performances^ — The law identifies certain kinds of performances which are considered under the concept of fair use and are not infringe- ments of copyright:

1- The performance or display of a work by instructors or pupils in the course of face-to-face teaching activities of a nonprofit edu- cational institution.

2- Performance of a nondramatic literary or musical work, display of a work, by or in the course of a transmission, if a) the perfor- mance or display is a regular part of the systematic instructional activities of a governmental body or a nonprofit educational institution; and b) the performance or display is directly related and of material assistance to the teaching content of the trans- mission; and c) the transmission is made primarily for reception in classrooms or similar places devoted to instruction.

3- Performance of a nondramatic literary or musical work or of a dramatico-musical work of a religious nature in the course of religious services.

4- Performance of a nondramatic literary or musical work (other- wise than in a transmission to the public) without any direct or indirect purpose of commercial advantage and without payment of any fee or other compensation for the performance to any of its performers, promoters, or organizers, if a) there is no direct or indirect admission charge; or b) the proceeds, after deducting

reasonable costs of production, are used exclusively for educa- tional, religious, or charitable purposes and not for private financial gain.

7-Op. cit., Section 110

86 CHAPTER SIX

5- Communication of a transmission embodying a performance of

a work by the public reception of thie transmission on a liome-

type receiving apparatus, unless a direct ctiarge is made to see or hear the transmission, or the transmission thus received is

further transmitted to the public.

6- Performance of a nondramatic musical work by a vending estab-

lishment where the sole purpose of the performance is to promote the retail sale of copies or phonorecords of the work.

These definitions of fair use and exempt performances have new sig- nificance for schools and other nonprofit organizations which, in the past,

have enjoyed exemption from licensing and payment for performances.

work. This ownership includes the five exclusive rights under copyright.

Attorneys refer to these as the "bundle" of rights in copyright ownership.

Where there are multiple authors, these authors share ownership of

the copyright. In the popular song field, it is customary for the composer

(or composers) of the music to share ownership equally with the author

(or authors) of the words. Sometimes, however, multiple authors may set up, through a written agreement, disproportionate shares of ownership in

a work in which they collaborated. Example:

COMPOSERS' SHARE (50%) AUTHORS' SHARE (50%)

Ex. 1 One composer: owns 50% One author: owns 50%

Ex. 2 First composer: owns 25% First author: owns 25% Second composer: owns 25% Second author: owns 15%

Third author: owns 10%

Ownership Limitation — Ownership of copyright, or any of the exclu- sive rights under a copyright, is distinct from ownership of any material

object in which the work may be embodied, such as sheet music, discs or tapes. Transfer of ownership of any such material objects in which the

work is first fixed does not of itself convey any rights in the copyrighted

work embodied in these objects. (See First Sale Doctrine).

Collective Works — Copyright in each separate contribution to a collec- tive work is distinct from copyright in the collective work as a whole and

vests initially in the author of the contribution. In the absence of an

express transfer of the copyright, the owner of the copyright in the collec-

8- Op. cit., Section 201

MUSIC COPYRIGHT 87

tive work is presumed to have acquired only the privilege of reproducing and distributing the contribution as part of that particular collective work,

any revision of that collective work, and any later collective work in the

same series.

Film Music — Copyright in music, and accompanying words, written for theatrical films and TV movies is covered by the overriding copyright in the movie itself as a composite work. Such a work carries the © type of copyright notice, in that it is classified as an audiovisual work. However,

additional copyrights may preexist for music a film producer licenses for inclusion in this production. In this kind of situation, the two copyrights

coexist. The film producer would be required to obtain a synchronization license for use of the preexisting copyrighted music. But the complete

audiovisual work — the movie itself — would still have a blanket copy- right covering its component parts.

TRANSFERS, ASSIGNMENTS

While all five exclusive rights of authorship vest initially in the author or

authors of a work, the law states that any or all of these rights may be transferred or assigned to other persons. As a matter of fact, most origi- nal copyright owners find it necessary to transfer or assign some or all of their rights in order to generate income from their properties. While some writers own their own publishing companies and record labels, the great majority assign publishing and recording rights to others, usually through the granting of licenses (Chapter 7).

The law even permits subdivisions of individual rights. As explained elsewhere, this most often occurs with publishing rights, where authors are urged to "split the publishing" in order to land a record deal.

Recordation of Transfers — When copyright owners assign or transfer any of their copyrights, the action does not become valid until the parties (or their agents) execute a written agreement describing the action. This written instrument may then be filed with the Copyright Office in accor- dance with procedures set by that office. Filers must also pay the specified fee. Following these actions the Copyright Office issues a Cer- tificate of Recordation.

This recordation serves to provide all persons with what lawyers call "constructive notice" of the facts stated in the Certificate of Recordation.

Occasionally, a situation arises where two transfers are in conflict. In such instances, the one executed first prevails if it has been properly recorded and otherwise conforms to the regulations of the Copyright Office.

Termination, Recapture — In the case of any work other than a work made for hire, the exclusive or nonexclusive "grant of a transfer" or license of copyright or any right under a copyright, executed by the author on or after January 1, 1978, is subject to termination under conditions

cited in Section 203. The essential conditions cited there are:

88 CHAPTER SIX

1 - Termination of the grant may be effected at any time during a period of five years beginning at the end of 35 years from the date of execution of the grant.

2- // the grant covers the right of publication of the worl<, the period

begins at the end of 35 years from the date of publication of the work under the grant or at the end of 40 years from the date of execution of the grant, whichever term ends earlier.

3- Advance notice of intent to terminate must be in writing, signed by the number and proportion of owners of termination interests required under Section 203, or by their duly authorized agents, served upon the grantee or the grantee's successor in title. The notice shall state the effective date of the termination, which

shall fall within the five-year period specified in Section 203, and the notice shall be served not less than two or more than 10 years before that date. To be in effect, this notice must be recorded in the Copyright Office before the effective date of ter-

mination. An individual intending to file a notice of termination must comply with the form, content and manner of service pre- scribed by the Register of Copyrights.

4- Termination of a grant may be effected notwithstanding any agreement to the contrary, including an agreement to make a will or to make any further grant.

5- Upon the effective date of termination, all rights under this title that were covered by the termination grant revert to the author or authors.

6- Unless and until termination is effected under Section 203, the grant, if it does not provide otherwise, continues in effect for the term of copyright provided by law.

Section 203 offers further details describing the conditions under which

further grants or agreements may be made following the effective date of the termination.

The above section establishes the "outer limits" of copyright assignabil- ity by providing statutory termination guidelines. In practice, however,

writers and publishers may negotiate a shorter term (typically, one to five years) to balance the writer's interest in recapturing copyrights which

have not been effectively "worked" by the publisher against the publish-

er's interest in controlling the property long enough to promote it.

WORK MADE FOR HIRE *

The term "work made for hire" has special meaning under copyright law and is of overriding significance to composers, publishers and movie pro-

ducers. Whenever a composer is engaged on a work-made-for-hire basis, the employer is considered under the law as the author oi his ere-

MUSIC COPYRIGHT 89

ative work. And the "author," under copyright law, is thus the owner of

works.

This arrangement was first developed in the "Tin Pan Alley" days, when large publishing companies employed salaried songwriters to work in-house on a full-time basis. In recent times, however, songwriters typi-

cally operate as independent contractors with much less supervision. It has been retained for legitimate purposes primarily by movie producers

who need "authorship" rights in order to modify the film music at the last minute, without the writer's permission, to suit the overall needs of the

film.

Occasionally, an unscrupulous music publisher will attempt to secure

authorship rights in a work produced by a writer who is effectively working as an independent contractor. So, any unsupervised non-film songwriting

should not be done on a "work made for hire" basis without consulting someone familiar with publishing contracts. A composer in a strong negotiating position can circumvent the owner-

ship provision under work made for hire simply by signing an agreement with the employer that the work is not classified as work made for hire. But a large percentage of writers lack this kind of clout, and many pub- lishers and most movie producers will engage composers only on a work-made-for-hire basis.

The 1976 Copyright Act provides language attempting to describe (but not clearly defining) under what conditions certain "creations" are to be

considered works made for hire, but ambiguities in the language cause lawyers and the courts to draw different conclusions.

Some disputes center on this language (Section 101) of the Act: A work made for hire ". . . is a work prepared by an employee within the scope of his or her employment."

Bills are periodically introduced in Congress which attempt to clarify

the meaning of "employee" by, for example, attaching social security

benefits and withholding of taxes to the definition. The Supreme Court spoke to the question of when a situation is "scope of employment," list- ing no less than thirteen factors to be considered, in Community for Crea- tive Non-violence v. Reid, 490 U.S. , 109 S. Ct. 2166, 104 L. Ed. 2d 811 (1989). The case dealt with whether ownership of a sculpture rested with the sculptor or the group that commissioned its creation. Although

the original court decision found for the organization, that decision was reversed on appeal and the U.S. Supreme Court affirmed the reversal.

exclusive right "to prepare derivative works based upon the copyrighted

work." Since musical arrangements are usually considered "derivative"

(or "supplementary") works, it is clear that arrangers must first obtain per-

mission of the copyright owner before scoring their own version of the material. In actual practice, this permission is sought and granted only

9-Op. cit., Section 201 (b)

90 CHAPTER SIX

under particular circumstances. In the recording industry, publishers are

usually delighted that anyone is interested in recording the song in the

first place, and not only understand a special arrangement must be pre-

pared, but welcome the potential exposure. Most publishers issue a negotiated mechanical license (Chapter 7) to record one of their proper-

ties and, implicit in this license, is the "understanding" that the record

producer may create a new arrangement. This industry practice is not so much a specific "permission" to create an arrangement. Rather, it is a tacit agreement by the publisher not to raise any objection to it.

Even if such a tacit agreement were absent, copyright law provides

that when a publisher issues a compulsory license, that license "includes the privilege of making a musical arrangement" for the recording.

In respect to arrangements made primarily for educational use, many publishers give their approval by accepting the standard form, "Request

for Permission to Arrange." The fine print on this form states the publisher

owns the arrangement made and limits its use.

Arrangers' Rights — Most people in the music business understand that the role of the music arranger is often at least as creative, if not more

so, than that of the original composer of the song. Arrangers usually per-

form "works for hire" — a flat, one-time fee based on AFM scale for "orchestration," or whatever the traffic will bear. Except for work on music

in public domain, arrangers who work under such agreements enjoy no rights of copyright ownership, receive no royalties from record sales nor

share in income generated for composers and publishers from licensing

of performances of their arrangements.

Arrangements of Music in the Public Domain — A different condition prevails when an arranger creates an original chart of a work in the public domain. The arranger's publisher of such material demands and receives normal mechanical royalties from record producers, then usually splits

one-half of such receipts with the arranger. In respect to performance

income, ASCAP and BMI are accustomed to paying royalties to authors and publishers of arrangements based on works in the public domain.

Arrangers of P.D. works also receive royalties from their publisher's sale

of printed editions.

Arrangers are accorded more privileges in certain European countries,

e.g., France and England. There, arrangers are not always required to

secure publishers' approval to render new arrangements of copyright- ed material. Further, arrangers in some European countries are often ac- corded "parallel rights" which provide a share of royalties derived from

mechanical licensing and performances of their charts.

SOUND RECORDINGS

One potentially confusing aspect of the 1976 Act is that a musical work (the underlying song with lyrics) is categorically differentiated from a

sound recording (see definitions at the beginning of this chapter). The

record company typically holds the copyright in the sound recording.

MUSIC COPYRIGHT 91

while the publisher holds the copyright in the musical work. These two factions may be divisions of the same company.

Section 114 states that the copyright owner of a sound recording has these exclusive rights:

1 - The right to reproduce the copyrighted worl< — to duplicate the sound recording in the form of phonorecords (or copies of mo- tion pictures and other audiovisual works). Note that this right is limited to duplicating the actual sounds fixed in the recording.

2- The right to prepare derivative works based on the copyrighted material — to make and distribute phonorecords which are new arrangements or versions of the copyrighted work (sound re-

cording).

3- The right to distribute phonorecords to the public by sale or other transfer of ownership, or by rental, lease, or lending.

Performance Right Exclusion — The 1976 law specifically excludes performance rights in sound recordings. This exclusion is one of the most significant and controversial sections of the law. The issue was debated at length by Congress, but the strong lobby represent- ing broadcasters persuaded influential Congressmen to exclude payment of performing fees for sound recordings. The U.S. is out of step with other countries in this respect: over 50 Western countries have laws providing for collection of such royalties, or the broadcasters voluntarily pay them.

Congress did not solve this critical issue by simply excluding perfor- mance royalty payments for recordings; the Register of Copyrights was in- structed to study the issue, hold hearings of interested parties, then report

back to Congress as to whether the exclusion should be amended or elim- inated.

Early in 1978, the Register of Copyrights reported to Congress the results of that research, expressing the opinion that the exclusion of a performing right in sound recordings was not at all justified and that the 1976 Act should be amended accordingly. The research pleased musi- cians and record companies, because it included evidence, independent- ly gathered, that there was no credibility to the old argument from broad- casters that payment of a recorded music royalty would cause financial hardship.

AFM and AFTRA have lobbied strongly in favor of a performing right in sound recordings because such a right, even if coupled with a low licens- ing rate, would increase considerably the potential income of performers. Strong support for performance royalties from recordings also comes from RIAA.

Repeatedly since 1977, Congress has debated bills which would pro- vide for a performing right in records. Hopeful of eventual victory, perform-

ing artists and record companies continue their lobbying efforts.

EXCLUSION — The exclusive rights of the owner of copyright in a sound recording in respect to the preparation and reproduction of derivative

92 CHAPTER SIX

works do not extend to the making or duplicating of another sound re- cording that consists entirely of an independent fixation of other sounds,

even though such sounds imitate or simulate those in the copyrighted

sound recording. That is, imitations which mimic the original record are

legally permissible, but the imitative recording cannot simply use a dupli-

cate tape of the original. There may, however, be fair trade problems if

the mimicing recordings are marketed as if they are featuring the original

artists.

COMPULSORY MECHANICAL LICENSE One of the most important copyright provisions concerns the condi- tions under which a person is permitted to produce and distribute pho-

norecords of non-dramatic musical works. The law provides that copy- right owners of non-dramatic music have complete control over recording

rights of their properties until they license the material for the first record-

ing. But after this first recording is distributed to the public, they are

compelled by law to license any other person to produce and distribute

records of the copyrighted music. This provision stems in part from an

important goal in copyright law: the increased dissemination of works to

the public.

In the language of the law (Sec. 115), copyright owners become "sub- ject to compulsory licensing." This kind of licensing requires special

conditions, the most important of which are —

1 - A person may obtain a compulsory license only if his or her pri- mary purpose in making phonorecords is to distribute them to the public for private use. This sentence is very significant and clearly excludes from compulsory licensing all records that are

generally classified under the term, "transcriptions. " In the music

field, that term is applied, not to phonorecords intended for pur-

chase and use by the public, but to discs or tapes leased or sold for special uses, e.g., theme music for programs broadcast, wired music services such as f\Auzak, etc.

2- A person may not obtain a compulsory license for use of the work in the making of phonorecords duplicating a sound record- ing fixed by another, unless a) such sound recording was fixed lawfully; and b) the making of the phonorecords was authorized by the owner of copyright in the sound recording or, if the sound recording was fixed before February 15, 1972, by any person who fixed the sound recording pursuant to an express license for use of such work in a sound recording. (The purpose of this provision was to prevent pirates and counterfeiters from availing themselves of the compulsory license.)

3- A compulsory license includes the privilege of making a musical arrangement of the work to the extent necessary to conform it

to the style and manner of interpretation of the performance involved. But the law also states that the arranger shall not

MUSIC COPYRIGHT 93

change the basic melody or fundamental character of the work. Further, the new arrangement shall not be subject to protection as a derivative work . . . except with the express consent of the

4- The person planning to obtain a compulsory license must notify the copyright proprietor of this intention before or within 30 days after making, and before distributing, any phonorecords of the work. If the person cannot locate the owner of the work, "it shall be sufficient to file notice of intention in the Copyright Office.

Failure to serve notice or file notice forecloses the possibility of

a compulsory license and, in the absence of a negotiated license, renders the making and distribution of phonorecords actionable as acts of infringement.

Compulsory License Bypass — Compulsory mechanical license provi- sions in the copyright statute are so stringent, particularly in respect to

notice and accounting requirements, that the industry typically uses an alternative, the negotiated mechanical license. This alternative kind of

license is permitted by law^° and is explained in Chapter 7.

ROYALTY PAYMENTS "

After permitting the initial recording of a song, publishers are limited as a

practical matter by the statute as to what royalty rate they may charge record makers. The statutory rate provided in the 1976 Act was "2.75 cents, or one-half of one cent per minute of playing time or fraction there- of, whichever amount is larger" for each work embodied in a phono- record. This "statutory rate" today is much higher and rises periodical- ly. This is because the Copyright Royalty Tribunal is empowered to change the rate every two years based on the Consumer Price Index.

To be entitled to receive royalty payments under a compulsory license, the copyright owner must be identified in the registration or other public records of the Copyright Office. The owner is entitled to royalties for phonorecords made and distributed after being so identified, but is not entitled to recover for any phonorecords previously made and distributed.

Except as provided above, the royalty under a compulsory license shall be payable for every phonorecord made and distributed in accor- dance with the license. "For this purpose, a phonorecord is considered 'distributed' if the person exercising the compulsory license has voluntari-

ly and permanently parted with its possession." This language helps reduce the ambiguity prevalent until 1978 relative to liability for royalty payments. It appears that the manufacturer is not liable for royalty pay- ments on records returned to them which have not been sold, for such records did not leave the manufacturer's possession permanently, as the

law provides.

10- See the following chapter concerning distinctions between a compulsory and a negoti- ated mechanical license

11 -Sec. 115(c)

94 CHAPTER SIX

DURATION OF COPYRIGHT ''

SUBSISTING COPYRIGHTS IN THEIR FIRST TERM

Copyrights still in their first terms continue, under the 1976 law, for their

original 28 years (the length of the initial period described in the old law).

Within one year of the expiration date, the author may renew the copy- right for an additional 47 years, thus bringing the total protection period to

a total of 75 years.

DEFAULT — If the author fails to file such application for renewal and extension, the copyright in that work will terminate after the original 28

years.

SUBSISTING COPYRIGHTS IN THEIR SECOND TERM

The 1976 law describes specific terms under which a copyright may be extended if it is already in its second 28-year term. As Congress stated, the 1976 law creates here an entirely new property right. The 1909 law provided only 56 years of protection. The 1976 revision provides, in this instance, a total of 75 years of protection. The monetary value of many old standard popular songs is high and, for this reason, authors and pub-

lishers are joined in battle to establish claims on these 19-year bonus

periods.

AFTER 56 YEARS

Properties whose 56-year protection would otherwise expire under the 1909 law are, under the 1976 law, automatically granted copyright protec-

tion for a total of 75 years, except that, if a writer wants to recapture a

composition from a publisher, the writer may, within a five-year period fol-

lowing the original 56-year protection, set a termination date. This notice

of termination must be given to the publisher not less than two years nor

more than 10 years ahead of the termination date decided upon by the

author. Once an author has thus reclaimed the publisher-owned copy- right, ownership by the author is free and clear. Failure to exercise the

option to terminate within the five-year period will permit a copyright to

endure to the end of the period originally contracted between the author

and the publisher.

AFTER JANUARY 1, 1978

to a work from its creation and, except as provided under certain condi-

tions, endures for a term consisting of the life of the author and 50 years

after the author's death.

12-Chapter3of the/Acf

MUSIC COPYRIGHT 95

JOINT WORKS — Where two or more authors prepared a joint work (and did not do the work for hire), they enjoy copyright for a term consist-

ing of the life of the last surviving author and 50 years after such surviving author's death.

WORK MADE FOR HIRE — In a work made for hire, copyright exists for 75 years from the date of its first publication, or a term of 100 years from

the year of its creation, whichever expires first. Works made for hire are not included in the provisions concerning termination of grants for the 19-

year extension period.

WORKS "IN THE TRUNK" '^

Copyright in a work created before January 1 , 1978 but not theretofore in the public domain or copyrighted, subsists from January 1, 1978 and endures for the life of the author and 50 years after the author's (or coau- thor's) death. In no case, however, ". . . shall the term of copyright in

such a work expire before December, 2002; and, if the work is published on or before December 31, 2002, the term of copyright shall not expire before December 31 , 2027."

FORMALITIES ''

The term formalities is used around the world in reference to the specific actions a claimant must take to validate claim to copyright. These formal- ities include notice of copyright, deposit of copies and registration of claim to copyright. The 1 976 law is permissive in respect to some kinds of mis- takes in following through on formalities. After March 1, 1989 (the effec- tive date of the U.S. joining the Berne Convention), these formalities for U.S. works became almost entirely permissive. But to be on the safe side, claimants should put notice on copyrighted material.

NOTICE ON PRINTED MUSIC

The term notice of copyright refers to the public display of information concerning the date the work was published and who registered the claim. On printed editions, the law stipulates:

1- Notice may be placed on all publicly distributed copies. The notice imprinted should be the symbol © or the word Copyright or the abbreviation Copr. and the year of first publication of the work. The type of notice most often seen:

13-Sec. 303

14-Chapter4ofthe/^cf

96 CHAPTER SIX

2- In the case of compilations or derivative works incorporating previously published material, the year date of the first publica- tion of the compilation or derivative work is sufficient.

3- The notice must also include the name of the copyright owner A recognizable abbreviation of the owner's name may be used.

4- The position of the notice shall be affixed to the copies so as to give reasonable notice of the claim to copyright.

NOTICE ON PHONORECORDS 15

Whenever a sound recording protected under the 1976 law is published in the U.S. or elsewhere by authority of the copyright owner, a notice may be placed on all publicly distributed phonorecords of the sound recording. It is still prudent to do this. The form of the notice consists of three ele- ments:

1 - The symbol ® (the letter "P" in a circle); and

2- The year of the first publication of the sound recording, and

3- The name of the owner of the copyright in the sound recording. A recognizable abbreviation may be used. If the producer of the sound recording is named on the phonorecord labels or contain- ers, and if no other name appears in conjunction with the notice, the producer's name shall be considered a part of the notice.

Position of notice shall be placed on the surface of the phonorecord, or

on the phonorecord label or container, in such a manner and location as to give reasonable notice of the claim to copyright. A typical notice for a phonorecord —

Audiovisual works do not require the symbol ® but the symbol © because they are not considered phonorecords.

ERRORS, OMISSIONS

For works first published between January 1 , 1978 and March 1 , 1989, as

detailed in sections 401 , 402 and 403, omission of notice from copies or phonorecords does not invalidate the copyright in a work if:

1- The notice has been omitted from no more than a relatively small number of copies or phonorecords distributed to the public; or

15-Sec. 402

MUSIC COPYRIGHT 97

2- Registration for tlie worl< lias been made before or is made within five years after the publication without notice, and a reasonable effort is made to add notice to all copies or phono- records that are distributed to the public in the United States

after omission has been discovered; or

3- The notice has been omitted in violation of an express require-

ment in writing that, as a condition of the copyright owner's authorization of the public distribution of copies or phonorec-

ords, they bear the prescribed notice.

Also for pre-Berne works (prior to March 1, 1989), an error in the date

appearing in the copyright notice does not invalidate the copyright, e.g.,

1- When the year date in the notice is earlier than the year in which the publication first occurred, any period computed from the year of first publication under Section 302 is to be computed from the year of the notice.

2- When the year date is more than one year later than the year in which the publication first occurred, the work is considered to

have been published without any notice and is governed by the provisions of Section 405.

DEPOSIT'^ As noted, deposit of works in the Library of Congress and registration of

works are separate formalities, and the performance of neither act is a

condition of copyright. Yet, both are important. In respect to published

copies. Section 407 states that the copyright owner (or the publisher)

must deposit within three months after the date of publication, two com-

plete copies of "the best edition" of the work. In respect to sound record-

ings, the deposit shall include two complete phonorecords of the best edi-

tion, together with any printed material or other visually perceptible mate-

rial published with such phonorecords. Under Berne, notice of copyright

is no longer required in deposit copies.

Under certain conditions, deposits made prior to any attempt to regis- ter the work may be used to satisfy the deposit requirements called for when the author (or the publisher) undertakes to actually register the work. If the author desires to have the initial deposit satisfy the deposit

requirements specified on the registration forms, a letter must be enclosed with the initial deposit specifically directing the Library of

Congress to hold those deposits for later connection with the author's

registration application. If such a letter is not enclosed, the Copyright

Office will require separate, additional deposits of a work just as called for

on the registration form.

Congress has authorized modifications of deposit requirements from

time to time, at the discretion of the Copyright Office. While failure to

16-Sec. 407

98 CHAPTER SIX

deposit copies or phonorecords according to current regulations does not actually endanger the copyright, the government does have the authority

to demand copies and fine the laggard up to $250 per work and levy additional fines up to $2,500 for willful and repeated refusal to comply.

REGISTRATION '"

The law states that deposits and registration are "separate formalities," but this language can be confusing. The fact is that deposit can be made independent of registration, but registration of a claim to copyright must

be accompanied by the deposit specified on the application form. Also,

the law states that registration "is not a condition of copyright." But that

language, too, can be misleading. Registry is strongly advised because,

under certain conditions, an author's work left unregistered lacks certain

advantages the work would othenwise enjoy.

It is important to know that registration of copyright, except for nationals of Berne Union countries other than the U.S., is a prereq- uisite (Section 411) to undertaking legal action against an alleged infringer. Lacking correct registration, the aggrieved party, even a nation-

al of a Berne Union country, cannot collect statutory damages (but this condition does not extend to actual damages). Thus, registration is

encouraged, even for nationals of Berne Union countries.

Another disadvantage in failing to properly register a musical work is

that a copyright owner loses, at least temporarily, any statutory right to collect mechanical royalties under the compulsory license provision of the

law.

A work may be registered at any time during the term of the copy- right, whether it is published or unpublished. The registration may be made by the author or the publisher. The registrant must deliver the required deposit together with the application fee.

The material required to register a claim to copyright includes:

1 - In the case of an unpublished work, one complete copy or pho- norecord;

2- In the case of a published work, two complete copies or phono-

records of the best edition;

3- In the case of a work first published outside the U.S., one com-

plete copy or phonorecord as so published;

4- In the case of a contribution to a collective work, one complete

copy or phonorecord of the best edition of the collective work.

The acceptance of sound recordings, not just sheet music, in claims to copyright was a significant advance over the 1909 law. In the popular music field, thousands of songwriters lack the ability to render their mate-

rial in music notation. Now all they have to do is make a simple tape recording and submit it in lieu of sheet music. The acceptance of sound

17-Sec. 408

MUSIC COPYRIGHT 99

recordings also provides important advantages to persons desiring to copyright jazz improvisations, many of which do not submit to convention- al music notation.

If the Register of Copyrights determines that all legal and formal re- quirements have been met, the Register will send the applicant a certifi- cate of registration. If the claim is found invalid, the Register will refuse

registration and notify the applicant in writing of the reasons for such re- fusal. The effective date of copyright registration is the day on which an application, deposit and fee all have been received in the Copyright Office.

If the author or the author's publisher made a mistake in an original reg- istration of claim, or if either wants to modify it, the Register of Copyright has established procedures and set fees to accommodate these matters.

FEES ''

The Copyright Office demands fees for certain services, such as registra- tion of claims, recordation of transfers, etc. For current rates, contact the

The 1 976 Copyright Act provided for the establishment of an instrumen- tality of the Congress to serve that legislative body in matters concerning copyright. That instrumentality is the Copyright Royalty Tribunal. It is com- posed of five commissioners appointed by the President of the United States. They serve for seven years, but their terms are staggered. Unlike other federal regulatory bodies, the members select their own chairper- son. It is also to be noted that the Tribunal serves the Congress and is not part of the executive branch of the government.

The law sets forth in detail what the Tribunal is empowered to do and how it is supposed to discharge its responsibilities. In order to fulfill that man- date, the Tribunal must:

1- Make decisions that . . . will afford the copyright owner a fair return for his creative work and the copyright user a fair income under existing economic conditions.

2- Conduct hearings of interested parties, then set royalty rates for music uses.

3- Periodically adjust these rates to reflect the legitimate interests

of copyright owners and music users, inflation, and changing market conditions.

4- Determine equitable shares, then distribute royalties deposited with the Copyright Office to copyright owners or their agents.

5- Maximize the availability of creative works to the public.

18-Sec. 708

100 CHAPTER SIX

To learn the views of concerned parties, the Tribunal conducts exten- sive public hearings. It devotes much of its attention to testimony submitted by trade associations, artists' unions and guilds. Spokesmen for these organizations — usually represented by their respective presi- dents and attorneys — present their cases to the Tribunal in order to maximize their economic interests. CRT has been criticized for its alleged lack of expertise, inadequate

research and tardiness in discharging its responsibilities. The Tribunal admits to shortcomings, but insists they result largely from too small a

professional staff and inadequate funding from Congress.

ADVOCATES BEFORE THE TRIBUNAL

INTERESTED GROUPS, PERSONS REPRESENTATIVE ORGANIZATIONS

Composers, writers

Publishers

Performing artists

Record producers, manufacturers . .

Record merchants

Performing rights organizations

Radio and television broadcasters ..

Public broadcasters

Schools and Colleges

ASCAP BMI, AGAC, SESAC NMPA, ASCAP BMI, SESAC AFM, AFTRA, AGMA RIAA

NARM, NAMM ASCAP BMI, SESAC NAB PBS, others

NASM, MENC AMOA Various

Jukebox operators

Cable television, syndicators

The major issues facing the Tribunal are summarized here, together with positions traditionally taken by proponents and opponents.

ISSUES

High mechanical royalty

PROPONENTS

AGAC, NMPA, ASCAP BMI, SESAC

OPPONENTS

RIAA. NARM

High cable TV royalty ASCAP BMI, SESAC, NMPA, AGAC

Cable TV Program syn- dicators

High performance right

license

ASCAP BMI, SESAC, NMPA

NAB, schools and col- leges

High jukebox royalty ASCAP BMI, SESAC, NMPA

Jukebox operators

Performance right in phonorecords

AFM, AFTRA, RIAA NAB

MUSIC COPYRIGHT 101

INFRINGEMENT, REMEDY

Copyright infringement is very widespread, most of it going unnoticed and unpunished. Where infringement is "innocent" and of little or no financial consequence, courts may limit assessment of damages to as little as $100. Where a library or school is involved with an infringement arising out of a lack of full understanding of the law, sometimes no damages at all are awarded.

Remedies — When infringements go beyond "innocent" offenses, the law cites the following remedies available following a successful court action —

1- INJUNCTION — A temporary or final injunction can be sought from any court having jurisdiction to prevent or restrain infringe- ment of copyright.

2- IMPOUNDMENT — The court may order impoundment of arti- cles alleged to be involved with infringement. The impoundment can hold pending court determination of the merits of the claim of infringement. Impoundment could include printed copies, phono- records, masters, even duplicating, manufacturing and packag- ing equipment.

3- DESTRUCTION — The court could order, as part of a final judg- ment, destruction of inventories, e.g., printed copies, phonorec- ords, etc.

4- DAMAGES — If the infringer is found guilty, he or she is liable, except as the law otherwise provides, for

a- Actual damages suffered by the copyright owner as a result of the infringement.

b- Any additional profits gained by the infringer as a result of acts of infringement.

c- The copyright owner may elect to seek statutory damages instead of actual damages and profits for all infringements before final judgment is rendered, in a sum not less than $500 or more than $20,000 "as the court considers just.

d- In a case where the copyright owner sustains the burden of proving, and the court finds, that infringement was committed willfully, the court in its discretion may increase the award of statutory damages to a sum of not more than $100,000. " Less- er awards are made where the court finds the infringer was not aware and had no reason to believe that his or her acts constituted infringement.

e- Costs and attorney's fees may be recovered by the prevailing party, at the court's discretion. At today's legal rates, this amount is usually substantial.

102 CHAPTER SIX

/- Copyright owners may choose to sue for actual damages or statutory damages and may change to the latter course at any time before final judgment of the court. In the dynamic music market, successful artists with significant stakes at risk will seek actual damages. Multimillion-dollar cases are not uncommon.

RECORD COUNTERFEITING, PENALTIES

The 1 976 law imposed strong penalties for counterfeit use of the copy- right symbol® (P in a circle) on phonorecords. Owners of copyrights in sound recordings complained that the threat of fines and imprisonment

were not adequate deterrents. The criminals appeared to view threatened sanctions simply as "the cost of doing business." Subsequently Congress

strengthened the penalties by passing the Piracy and Counterfeit Act of

1982. This law made both piracy and counterfeiting a felony. Among its other provisions, the 1982 law provided a maximum penalty of a $250,000 fine and jail terms of up to two or up to five years. A person would experi- ence this maximum penalty if found guilty of illegally manufacturing or distributing within a 180-day period more than 1,000 tapes or records or more than 65 copies of a movie. Penalties are less severe (ranging from

a $25,000 fine or one year in jail, or both) if lesser amounts of pirated or counterfeit goods are involved — more than 100 copies but less than 1 ,000 records or tapes, and more than seven but less than 65 copies of movies. A repeat offender could draw the maximum penalty, whatever the amount of merchandise involved.

The trend in the United States and abroad is toward increasing penal- ties for copyright infringers.

CHANGING LAWS Laws governing copyright have never been able to keep abreast of changes in the way music is produced, communicated, bought and sold. This time lag is most hurtful to copyright owners in the matters of counter-

feiting, home taping, telecommunications, direct satellite transmissions, and the licensing of music videos. The 1976 Copyright Act fails to ade- quately deal with these issues.

As technological change thrusts new issues into the spotlight, two eco- nomic coalitions traditionally line up against each other, trying to per-

suade Congress and the courts to rule in their favor. On one side is "the creative community" — authors, composers, filmmakers and those who hold copyrights on their creations — publishers, record companies, movie producers, etc. Lined up against the creative community are the users of

copyrighted properties — broadcasters, hardware manufacturers, soft- ware merchants and the "consumer," who is understandably reluctant to pay for music uses and the royalties that may be demanded.

In the absence of all-embracing amendments to the 1976 Act, Con- gress has managed some progress by legislating controls in the least controversial areas. For example, in 1984 Congress passed Public Law 98450, which prohibits the rental of phonorecords without the permission

of the copyright owners of the sound recordings and the underlying

MUSIC COPYRIGHT 103

music. The passage of this legislation, in effect a modification of the First Sale Doctrine (see below), has strengthened the view that Congress may enact similar laws limiting the rental of home video products.

Although the Supreme Court has yet to rule on home audio taping, the high court has determined that home videotaping for "time shifting" purpo- ses constitutes "fair use." The Court also said it expects legislative clarifi- cation on issues related to copyright vis-a-vis home taping, but such Con- gressional action has been slow in coming.

First Sale Doctrine — The principle of "first sale" was carried over from the 1909 statute to the 1976 copyright law (Sec. 109(A) and Sec. 202). Simply stated, the first sale principle provides that copyright ownership is distinct from ownership of any material object (printed copy, phonorecord, videocassette etc.) in which the copyright is embodied. This provision, developed to facilitate dissemination of creative works, prevents copyright

holders from exercising control (other than control over duplicating) over

the product once it has left the distributors. This became the legal basis for the video software renfa/ business. Rentals reduce software sales, and the Motion Picture Association of America (MPAA), the group repre- senting copyright owners of most of the movies rented on video software, initially launched a vigorous campaign with the Congress and the public for modification of the First Sale Doctrine. MPAA and others have sug- gested that, to compensate copyright owners for financial losses, a royalty should be paid on home video rentals. This plea is similar to the one made earlier in respect to home taping (audio or video): copyright owners claim they are entitled to compensation for their losses through assessment of a royalty on raw tape and recording devices. The loudest voice raised against any royalties of this kind or any modification of the First Sale Doctrine has been a coalition of consumer electronics manu- facturers and video retailers. (See International Copyright, Appendix, for important ramifications of "First Sale" on worldwide distribution.)

Important Technology/Industry Developments — Another controversy has involved digital audio tape (DAT), which allows the user to make music recordings of master quality. The RIAA vehemently protested the large-scale introduction of DAT in the United States, reasoning that the lack of DAT pre-recorded cassettes meant that the machines would be purchased principally for counterfeiting purposes. The Serial Copy Man- agement System agreed upon by DAT manufacturers and the recording industry (which provided that copies could only be made from non-DAT sources) thus paved the way for the introduction of DAT to the U.S.

Another technology is Personics (named for the company which intro- duced it), which enables consumers to create high quality recordings of songs selected from an available roster at retail locations, a sort of "recording jukebox." While royalties are paid for duplication, this device

may reduce consumer purchases of entire albums, with corresponding decreases in publishing revenues. Personics argues that strict scheduling

and coordinating offerings with singles releases eliminate these issues. The Japanese karaoke, or vanity recording, is another development on

the U.S. music scene. Consumers sing over pre-recorded tracks of popu-

104 CHAPTER SIX

lar tunes, creating their own "hit" versions. Music industry concerns include the danger of piracy by using sing-along licenses as a front, and

the possibility that dealers will use original tracks, with the vocals elimi-

nated, rather than re-recording the underlying music (a duplication in

violation of copyhght). These fears are based on problems which have

surfaced in Japan.

RIGHTS IN NAMES AND TRADEMARKS Rights in trade names and trademarks are not covered under copyright law in this country, but such rights are related. Company names and pro- fessional names of performers cannot be protected under copyright law, but are covered under a broader branch of law concerning unfair compe-

tition. In some states it is a criminal offense to infringe upon someone else's name or mark.

Individuals seeking federal registration of a name or mark must apply to the U.S. Patent and Trademark Office. Before proceeding, write to the

Government Printing Office, Washington, D.C. 20402 for a pamphlet. Gen-

eral Information Concerning Trademarks.

Selection of a Name — A new performing group should select its pro- fessional name with care to avoid duplication and possible confusion with another group using the same, or similar, name. Since most performing

groups will have to register their professional names as "fictitious," they will discover at their own county and state government levels if any other group of performers has already registered the same name or a similar one (For details, see Chapter 26, Starting Your Own Business). To clear the uniqueness of the group's name on a national level, the group should inquire of such organizations as artists' unions, ASCAP and Bf\/ll. Librar- ies often have publications such as Index to the Trademark Register

which can be consulted. Additionally, the group's attorney can provide the

names of firms specializing in searches of this kind, and can offer guid- ance on time restrictions for any filing that might be required under the

recently revised Trademark Act.

Rights in a Name — Performing groups should, at the very outset, draw up a written agreement which explicitly states who owns the professional name, how the ownership is shared (including publishing rights), and under what circumstances shares of ownership end or are modified when individual performers join or leave the group. Signing a basic agreement

of this kind should help the artists avoid the kinds of costly lawsuits that

have hurt less organized performing groups.

A FINAL NOTE ON LAW

Just as knowing how the law protects you is vital to success in the music business, so is an understanding of when the law will not protect you. Copyright protection extends to "expressions" but not "ideas." Contract

law provides for remedies in fairly narrowly defined circumstances. Court

delays and attorneys' fees may effectively prevent access to a judicial decision on your issue.

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MUSIC RIGHTS —AN OVERVIEW Copyright law in the United States requires that a music user must obtain the consent of the copyright owner to make use of that property. This con- sent is customarily given through the granting of a license. In that there are many different kinds of music uses and applications, copyright law and industry practice have developed an array of different kinds of licens- es and use permits.

The music business is far too large and diverse for each copyright owner or publisher to even attempt to handle all these licensing grants in- dividually. As a consequence, it is standard industry practice for copyright owners — writers and publishers — to engage agencies to handle these tasks. Without these agencies, no copyright owner could possibly cover all uses of the owner's music around the world. Even if the whole ac- counting process could be computerized, the individual would have no

practical way to collect licensing fees and performance royalties. To handle these far-ranging business affairs, writers and publishers re-

tain agencies to help them by affiliating themselves with performing rights collecting organizations.

To assist in developing a comprehensive awareness of how music uses are licensed in the United States (and in many foreign territories).

108 CHAPTER SEVEN

the accompanying table is instructive. In the following pages, each of these kinds of licenses is explained.

For most composers and publishers, their largest source of In- come derives from licensed performances of their music. Practically all of this money comes to them from two American performing rights organizations, ASCAP and BMI; the third is SESAC.

In addition to their principal functions of licensing public performances of music and distributing performance royalties to their affilated writers and publishers, these organizations also distribute awards, lobby Congress, sue willful infringers, and promote music scholarship. They do not publish music;^ they do not promote individual copyrights.

The uses of the licenses shown in the chart should be distinguished from the forms these licenses take. For instance, BMI, ASCAP and SESAC typically issue blanket licenses to broadcasters and others so the user can access the entire catalog. Some entertainment companies who feel it is unfair to have to pay for the complete catalog when they are using only a small portion have attempted to change this practice by de- manding source licenses, which allow broadcasters to negotiate a single fee for both performance and synchronization rights. The source license bypasses BMI, ASCAP and SESAC by entailing direct negotiations be- tween users such as broadcasters and publishers, leaving the latter with less bargaining power and more accounting and monitoring responsibili- ties.

While the Supreme Court's position on blanket licensing has tradition- ally been that the performing rights organizations offer the only feasible, efficient way of handling the large flow of information, there is evidence that the courts may be becoming increasingly sympathetic to broadcast- ers' arguments against the practice and its inherent monopoly over song rights. In 1987, for instance, a lower federal court ruled that ASCAP must offer per-program licenses with surcharges for processing that are equiv- alent to blanket licenses in cost. The blanket licensing issue may produce widespread industry changes, as judges and lawmakers balance the con- cerned parties' interests. How much money do the performing rights organizations collect and

distribute? Their income has risen faster than the rate of inflation. This can be attributed to a number of factors: 1) increasing acceptance by music users that they must obey the copyright laws and pay up; 2) in- creasing efficiency of the collecting agencies; 3) rising licensing rates

imposed by the Copyright Royalty Tribunal; 4) more efficient, more com- prehensive collections from reciprocating foreign collecting organiza- tions.^

The three American performing rights organizations currently collect, from all sources, foreign and domestic, something in the range of half a billion dollars a year. ASCAP and BMI both hold back 17 percent to 19

1 - BMI did publish music for a while in its early history (1 940s), but no longer does so. Nei- ther ASCAP nor SESAC has ever published music.

2- Among the most lucrative foreign income territories are the U.K., France, Germany, Sweden and Japan.

MUSIC LICENSING 109

percent of their gross earnings for overhead, then distribute the rest to

their members and affiliates. SESAC distributes 50 percent of earnings. ASCAP and BMI like to take out full-page tradepaper ads stating they

lead the world. ASCAP's slogan "We've Always Had The Greats" might be compared to BMI's line "The World's Largest Performing Rights Orga- nization." An impartial judge would certainly agree that ASCAP has, by far, the world's strongest catalog of great standards — great music and big money-makers. BMI has a larger number of affiliates — both writers

MUSIC LICENSES

TYPE OF MUSIC USE TYPE OF LICENSE REQUIRED

1- Commercial broadcast of non-dramatic music

Performance license

2- Non-broadcast performance of non-dramatic music

Performance license

3- Phonorecord sold for private use Compulsory or "negotiated" mechanical license

4- Music video production used for broadcast or cable TV

Synchronization license and performance license

5- Movie, music video, other video software sold or rented to

individuals for home use

Synchronization license which Includes

license to mechanically reproduce

copies for sale

6- Motion picture for theatrical

exhibition

Synchronization license which includes

a right to exhibit (performance right)^

7- Broadcast commercial Special use permit

8- Merchandising tie-ins, computer software applications, etc.

Special use permit

9- Environmental music ("Muzak") Transcription license which includes the right of performance

10- Dramatico-musical production

(performed live)

Grand right or dramatic right

11- Public broadcasting station Negotiated license

12- Jukebox Negotiated license

13-CATV Compulsory license for some, negotiated for others

Fig. 7.1

3- Performing licenses for theatres outside the United States are often obtained by foreign

performing rights organizations directly from movie theatre operations. Costs of these kinds

of licenses are scaled to a share of the box-office receipts. ASCAP and BMI members sometimes share in this income through foreign performing rights organizations having re-

ciprocal arrangements with ASCAP and/or BMI.

110 CHAPTER SEVEN

and publishers. The two organizations do not agree on the relative size of their catalogs.

Which is the "best" of the organizations? There is no one correct an- swer: each individual artist should compare the organizations' current rates and policies on the issues of particular concern, then decide which seems to better meet the artist's perceived needs.

AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS

The first performing rights society in the United States was ASCAP. Its founders were inspired, in part, by the renowned Italian opera composer, Giacomo Puccini (1858-1924). Puccini was making a fortune in Europe with La Boheme, Tosca and Madama Butterfly. When he visited New York in 1910 he was astonished to discover that the Americans, unlike Europeans at that time, had no effective method of collecting fees for per-

formances of their music. His expressions of indignation over this injustice influenced a number of leading composers in the United States (Victor Herbert and John Philip Sousa among them) to organize a collect- ing agency for music performances. The organization they formed in 1914 was named the American Society of Composers, Autfiors and Pub- //s^ers (ASCAP).

In the early days of ASCAP's history, the organization had a difficult time of it. Music users were reluctant to start paying for music perfor-

mances they had traditionally enjoyed for free. Today, after decades of "educating" music users, the concept of payment of performance fees through music licensing organizations is now broadly accepted, although frequently with great reluctance by broadcasters, clubs, hotels, restau-

rants, theatres — wherever music is performed publicly. The United States Supreme Court, in stating its approval in 1967 of a lower court rul- ing, took the position that "... a central licensing agency such as ASCAP is the only practical way that copyright proprietors may enjoy their rights under federal copyright laws and that broadcasters and others may con- veniently obtain licenses for the performance of copyrighted music." In

this case, the lower court had pointed out that a single copyright owner

cannot deal individually with all the potential and actual users of a piece

of music and stated that a single radio station may broadcast as many as 60,000 performances involving as many as 6,000 separate compositions.

MEMBERSHIP

ASCAP's membership to the mid-1 940s, at least, was comprised largely of composers of Broadway shows and movie musicals. When BMI started attracting large numbers of new composers, ASCAP found it necessary to open its rolls to newcomers. It has grown today to over 45,000 mem- bers. New members are admitted to ASCAP if they have at least one song published and distributed, or one song commercially recorded, or

available on rental, or performed in media licensed by the society.

MUSIC LICENSING 111

Twice each year ASCAP conducts a general meeting in New York City for its members near the East Coast. Similar meetings are held every six months for ASCAP members located near the Los Angeles area. ASCAP also schedules an annual meeting in Nashville. ASCAP's board, com- prised of 12 writers and 12 publishers (three writers and three publishers

must be from the concert field), is elected by the general membership.

ASCAP maintains over 20 regional offices and has more than 700 individ- uals on its payroll.

Music users have, from time to time, looked on the practices of music

licensing organizations as monopolistic and unfair. Whatever the validity

of that view, the U.S. Department of Justice, in actions in 1941 , 1950 and

1960, entered into a court-administered control of ASCAP with ASCAP's consent. The arrangement is known legally as a consent decree and was undertaken in respect to the antitrust laws of this country."^ To this day, the

court-appointed judge supervises ASCAP's affairs, particularly in respect

to licensing music users and payments to ASCAP's members. ASCAP conducts a public relations campaign to create goodwill

among its members and the community. It offers prizes each year to com- posers and symphony orchestras. In addition to distribution of earned income, ASCAP has an extensive system of annual awards to its mem- bers in both the popular and standard fields.

ASCAP periodically hosts a variety of songwriter workshops to help unknown composers improve their writing, as well as their awareness of

how the music business functions. Additionally, ASCAP sets aside a large sum each year for its Standard

Awards which are given to composers of serious music to compensate

them for performances of their music that are not covered by normal sur-

vey techniques. ASCAP has a number of additional ways it honors achievements of

authors and publishers (whether or not they are members of the society). For example, since 1968, ASCAP has given its Deems Taylor Award Xo authors and publishers of outstanding books and articles on music.

Among the distinguished authors and musicians receiving this award have been Gunther Schuller, Irving Kolidin, Martin Williams, Alec Wilder,

Duke Ellington and John Hammond. This Handbook (2nd edition) was honored with the award in 1980.

PERFORMANCE LICENSING

The society licenses practically all radio stations and most TV stations, as well as broadcasting networks. It also has licensing contracts with MTV and pay-TV program suppliers such as HBO. In addition to agreements with various kinds of broadcasters, ASCAP licenses over 1 00,000 clubs, hotels, arenas, colleges, etc.

A prospective licensee is initially contacted either by a field representa- tive or by mail, in an attempt to educate the music user about the respon-

4- BMI is also under a consent decree, but it sets forth a different set of constraints.

112 CHAPTER SEVEN

sibilities that exist under U.S. copyright law. The prospective licensee gen- erally enters into a licensing agreement at that time. However, some music users refuse. If the party persists in using the property of ASCAP's members without permission, a lawsuit is brought in the names of speci- fic members for specific infringements under copyright law. Licensing or- ganizations almost always win these legal battles, whether through per-

suasion or through the courts — for a simple reason: the law is on their side.

Hotels, clubs and other facilities that present live music performances are normally asked to sign a one-year blanket license. The setting of the license rate takes into account 1) the seating capacity of the venue; 2) whether it charges admission; 3) its live music weekly budget; 4) the number of hours of musical entertainment provided. It may also take into account the estimated gross income of the facility.

Where a venue, such as a stadium or arena, offers musical entertain- ment only occasionally, performing rights organizations attempt to collect performance fees from the promoter or producer renting the facility. How- ever, where a facility offers entertainment on a regular basis, ASCAP and BMI will normally look to the management of the location to pay for the performance license.

It should be emphasized that performing artists themselves and their agents and managers normally are not expected to pay perfor- mance royalties to anyone. Rather, this responsibility and expense devolves upon either the venue management or the entertainment promoter or producer.

SAMPLING, ACCOUNTING

The applications submitted to ASCAP by writers and publishers applying for membership list the titles in the applicants' catalogs. In addition, dur- ing the course of their membership writers and publishers will supply the society with updating information on new works added to their catalogs. ASCAP receives cue sheets for both television films and programs and

theatrical films, which are used to assist in crediting television perfor-

mances. The society credits its members on the basis of a sample survey of

performances. This survey consists of a random sample of 60,000 hours of local commercial radio airplay, 30,000 hours of local commercial televi-

sion airplay, a census (i.e., complete count) of all performances on the

three major television networks (ABC, CBS, and NBC), a sample of per- formances on wired music services (e.g., Muzak) and airlines, and certain circuses and ice skating shows. In addition, a complete count of all per- formances in symphony and concert halls and a random sample of performances in educational institutions are also taken. Besides this sam- pling of performances in commercial media, ASCAP also conducts a smaller sample of performances on PBS (some 1 ,200 hours) and Nation- al Public Radio (approximately 600 hours). ASCAP includes cable television in its survey — taking a census of

performances on HBO (Home Box Office) and a sample of performances

MUSIC LICENSING 113

on such other cable services as Cinemax, Showtime/The Movie Channel,

MTV/Nickelodeon and The Disney Channel. In conducting its survey of network television performances, ASCAP

uses program logs submitted by the networks as well as cue sheets

which the society obtains from program producers. In addition, ASCAP makes audio tapes and videotapes of the networks in order to check on the accuracy of the performance information supplied.

The society's /oca/ television survey uses a combination of cue sheets

and TV Guide. In cities where ASCAP maintains field offices it will also tape television stations whose signals can be received by the field office. ASCAP conducts its local radio survey through tape recordings made

throughout the United States of actual on-the-air broadcasts by radio sta-

tions. The tapes are then sent to ASCAP's New York headquarters where a staff of experts listens to the tapes to identify the individual perfor-

mances which have taken place. In respect to cable TV, the main sources of performance information

are program guides furnished by cable services and cue sheets.

WEIGHTING PERFORMANCES

Licensing organizations use various formulas to calculate the relative

value, or weight, of sampled performances. As part of its calculation, ASCAP takes into account the following:

1- The medium in which the performance takes place (e.g., local radio, local television, network television);

2- The "weight" of the station on which the performance is carried

(each local radio and TV station has a weight which reflects its relative size in terms of the license fee it pays to ASCAP);

3- The weight of a TV network (the number of stations carrying a performance and the time of day a performance occurs);

4- The type of performance (whether it is a feature, theme, or background).

For many years, ASCAP has shown special deference to composers of serious music, regarding them and their works as valuable cultural as- sets. Accordingly, disthbution of revenues to serious composer-members and publishers of ASCAP is heavily weighted in their favor. The society uses a census technique in accounting for performances in the symphon- ic, concert and recital fields, and such performances earn five times as many credits as a work in the popular field.

Background music underscoring a film is credited on a durational basis.

Neither BMI nor ASCAP survey performances in such venues as clubs, hotels, skating rinks, dance schools, etc., because the cost of gathering such data would exceed the amounts that could be collected. Rather, the

114 CHAPTER SEVEN

money generated by licensing such venues is distributed to members based on radio and television performances.

INCOME, ROYALTY DISTRIBUTION

In recent years ASCAP's income has been around $250 million a year. Some 13 percent of this figure derives from reciprocating foreign licens- ing organizations. More than one-half of ASCAP's income from licensed performances comes from TV stations and networks. Radio generates about one-third of the total. Annual fees for broadcasters are calculated on one to two percent of the broadcaster's adjusted gross income. Agree- ments with music users provide a blanket license for unrestricted use of the society's entire catalog.

With TV and radio performances generating some 85 percent of ASCAP's total revenue from performances, it is easy to understand why copyright owners spend most of their promotional efforts trying to get per- formances broadcast. Nearly 15 percent of the society's income from performances is generated by non-broadcast sources, e.g., clubs, hotels, arenas, airlines, etc.

A member's share of the total royalties collected is determined by the number and kind of performances described herein. Royalties are paid quarterly.

Some songs have more than one writer, even more than one publish- er. If they do not all belong to the same performing rights organization, the parties will earn differing amounts. This is because ASCAP, BMI and SESAC use their own particular methods in determining royalty pay- ments.

Earnings of ASCAP members vary tremendously. Some do not receive enough to cover their annual dues.^ But the composers, authors and publishers of widely performed copyrights earn royalties year after year going into six figures. Some ASCAP members have become millionaires.

FOREIGN COLLECTIONS

The United States' adherence to the International Berne Convention is the latest and most significant development affecting foreign copyright royalty collections. Member countries treat foreigners as nationals for pro- tection purposes, observing minimum standards which raise the integrity of cooperative worldwide copyright enforcement (see International Copy- right, Appendix).

Prior to Berne, ASCAP and BMI helped maintain reciprocal agree- ments with foreign organizations. The foreign sub-publisher remains a dominant source of foreign collections.

While some publishers rely upon their subpublishers outside this coun- try to supervise collection of performance fees, ASCAP and BMI perform

5- If this occurs, ASCAP may drop a writer from its rolls. ASCAP's administrators prefer a roster of active, earning members.

MUSIC LICENSING 115

a valuable service to their members who might otherwise have no agency to collect foreign performance royalties.

ASCAP and BMI generally need to deal with only one licensing agency in each country; unlike the United States, most other countries have but one licensing organization. Difficulties with collections abroad often arise with the problem of identifying songs when they are broadcast in the na- tive language or when they are performed under a different title. In any event, foreign performance royalties for American writers and publishers are increasing rapidly as surveys and accounting procedures improve. Among the most lucrative foreign sources of income at this time are Canada, Japan, West Germany, the United Kingdom, Holland, Denmark, France, Spain, Switzerland and Italy.

BROADCAST MUSIC INC. (BMI)

BMI is structured differently from its chief competitor. Unlike ASCAP, which is owned by its entire membership, BMI is owned by its stockhold- ers, originally some 475 broadcasters in this country. While ASCAP's management is handled by a board of directors elected by its full mem- bership, the BMI board of directors is made up of its principal stock- holders, the broadcasters, who determine management policy. BMI critics allege that this structure excludes the voice of its writer members. BMI answers by pointing out that if its distribution to writers were not equi- table, it could not have attracted a membership about one-third larger than its principal competitor. When formation of BMI was first proposed in the late 1 930s, the prospectus distributed to investors stated that stock-

holders could anticipate no dividends. None has ever been paid. BMI, in this sense, is a "nonprofit" organization.

Where ASCAP has members, BMI has no "members," only writer and publisher affiliates. BMI accepts a writer-affiliate if that applicant has ". . . written a musical composition, alone or in collaboration with other writers,

and the work is either commercially published or recorded or othenwise likely to be performed." As for admission of new publishers, BMI literature states, in part, that affiliation with BMI ". . . will be of practical benefit only to a publisher who has the ability and financial resources to undertake broad-based exploitation of his works." BMI also requires that its publish- er affiliates ". . . satisfy reasonable standards of literacy and integrity." BMI does not charge its affiliated writers any application fee or dues. BMI publisher affiliates pay an application fee.

BMI describes its attitude toward proselytizing new members as "the open door." It uses a number of publications and public relations projects to increase awareness of the advantages of BMI affiliation. Like ASCAP, BMI offers awards to school composers, unknown writers and arts organi- zations such as symphony orchestras. Important among these goodwill projects are the Songwriters' Workshops conducted to instruct inexperi- enced composers in how to create, then place, their unpublished material. BMI also sponsors music business workshops in cooperation with universities.

BMI computer terminals help operators compile data concerning performance royalties

earned by writer and publisher affiliates.

BMI regional office, Nashville.

MUSIC LICENSING 117

LICENSING

BMI, like ASCAP, receives most of its income from broadcasters, particu-

larly from television. Since broadcasters own stock in BMI, a critic might assume it gives preferential rates to them. BMI vigorously denies this, cit- ing evidence that, from time to time, the organization has engaged in

strong adversary relationships with broadcasters when negotiating rates. Like its competitors, BMI licenses a great number of other music users,

from hotels to skating rinks, from symphony halls to ball parks. To avoid

separate dealings with the many thousands of music users, BMI conducts basic negotiations with established trade organizations. For example, it

periodically negotiates industry-wide rates with the American Hotel and

Motel Association. In the classical field, BMI negotiates with the American

Symphony Orchestra League. In respect to hotels, restaurants and clubs, BMI works out license fees based, in part, on the establishment's weekly

budget for music, e.g., the size of the orchestra, if any, the number of

hours the business caters to the public, its seating capacity, etc. Licenses

for theatres, concert halls, stadiums, etc., are based largely on the fre-

quency of their use and seating capacity. BMI continues to sign new licensees. College students have assisted

BMI in auditing unlicensed facilities and "live-logged" all music heard in a

club in a given evening of spot checking. These reports are turned over to

BMI field representatives who then call upon the establishment owner and seek to sign him. Reluctant proprietors almost always sign a license

once they learn the justification for collection of performance fees is now not only provided by statute, but widely accepted by music users. This

kind of acceptance is not universal, but the efforts of ASCAP and BMI have been remarkably successful in generating this ever-growing source

of income for writers and publishers.

SAMPLING, ACCOUNTING

Affiliates of performing rights organizations worry about whether perfor-

mances of their music are being accounted for accurately and fairly. That is their only hope of receiving their fair share of performance royalties.

BMI believes it achieves a fair and accurate accounting by using a combi-

nation of sampling and census techniques. In the radio and television

field it is not economically feasible, due to the large number of individual stations, to attempt to account for all BMI performances every day of the

year by each broadcaster. So BMI resorts to a sampling procedure. Every individual station is sampled once a year, for a logging period of about

three days. BMI reports that this technique generates about 80,000 sam-

ple hours each calendar quarter. Selection of particular stations to be

logged is made by an independent accounting firm, and the stations them- selves do not know when they are being scrutinized. BMI believes this system maximizes objectivity of its sampling process.

In respect to broadcasting networks, a census technique is used.

Broadcast network producers furnish BMI with daily logs or cue sheets of

all music broadcast by them, including theme music, cue music and

118 CHAPTER SEVEN

songs. Logging of broadcasts (by individual stations and networks) of movies and syndicated shows is cross-checked with the same computer- stored data used by the regional editions (over 100) of TV Guide maga- zine.

Following accumulation of data via these logging, or census, proce-

dures, the numbers are combined with information generated from the sampling process, and "weighted" in a manner similar to ASCAP's. The figures are then multiplied by statisticians who have programmed their computers to help determine the "total" performances for each piece of music. These accumulated and weighted numbers are then used by BMI in an elaborate formula to determine royalty payments to its affiliated writ- ers and publishers.

BMI, like ASCAP, does not sample or log performances in such li- censed venues as clubs, hotels, theme parks, etc. This is because both collecting organizations believe it would not be feasible economically to do so. BMI and ASCAP assume that performances in these kinds of venues are generally proportionate to broadcast performances.

In respect to concert music, BMI uses a census technique, drawing ev- idence of live performances of BMI composers' works by scrutinizing printed programs of concerts.

ROYALTY DISTRIBUTION

If a writer can get a satisfactory answer about an accounting of perfor- mances, the next question is, "So what is my fair share of the total roy- alties collected?" ASCAP and BMI try to cut the royalty pie fairly, because if their affiliates perceived inequities the organizations would suffer, not only loss of confidence, but defections to competing collecting societies.

BMI's standard contract with writers and publishers (Appendix) does not cite payment rates, but BMI distributes its current schedule to anyone who cares to inquire. When BMI rates change, a general mailing is made to all BMI writer and publisher affiliates. Payments are higher for songs that originate, for example, in a Broadway show or feature film. As a song's aggregate number of performances reaches certain plateaus, the copyright owners receive bonus payments from BMI, ranging from 25 percent to 1 00 percent.

Under certain circumstances, BMI pays bonuses of different amounts on all songs in its repertoire. Copyright owners who are presently mem- bers of a music licensing organization, or those who plan to join one, can get current distribution rates and bonuses by contacting ASCAP or BMI directly.

Established writers whose music appears on the charts have, in the past, been able to get advances on performance royalties from both ASCAP and BMI. Now they are only paid advances for logged perfor- mances. Both organizations structure their distributions, bonuses and royalty advances not only to attract new writers, but to discourage defec- tion of their present membership. In general, once an affiliate strikes a

relationship with one licensing organization, staying with that organization

may be wise, for a disruption in the flow of income from performances can be costly. Most ASCAP and BMI gains in membership occur through

MUSIC LICENSING 119

proselytizing of new writers and publishers, not from raiding each other's rosters.

FOREIGN COLLECTIONS

As outlined above, BMI has reciprocal arrangements with all of the impor-

tant music licensing organizations abroad. BMI receives performance

royalties from these foreign organizations, then pays BMI members their share, withholding five percent for servicing foreign accounts. Now that the music business is becoming more and more a worldwide industry with

hits developing in many different parts of the world, it is to be anticipated that writers and publishers everywhere will welcome the further develop-

ment of these reciprocating arrangements for collection of performance

royalties.

SESAC

SESAC (the acronym originally stood for Society of European Stage Au- thors and Composers, now known only as SESAC) is the third performing rights organization in the United States. Unlike ASCAP and BMI, SESAC is privately owned and has been in the hands of the Heinecke family since the organization was established in 1930. It represents about 1300 publishers who control compositions of over 2100 writers.

Unlike the distribution practices described for ASCAP and BMI, SESAC's owners retain one-half of the firm's income and distribute the other half to their affiliates. The organization is unique in the field in hav-

ing a number of preset royalty amounts it pays out when a composition in its catalog attains a certain level of "chart success." It also pays out what

is called "release" money, whenever a composition is released in some form for public performance and before it may have appeared on the charts. In the past, the SESAC catalog emphasized gospel music and other contemporary Christian music, but now the catalog represents all kinds of music, including jazz and pop. SESAC does not survey opera or concert performances. It does not

monitor radio performances, but relies on charts in Billboard, Cash Box and Radio and Records, as well as information from its affiliates. It does log TV performances on the networks, PBS and cable channels such as HBO and Showtime, utilizing free and cable TV guides and depending on their affiliates as well to alert them to performances. While SESAC does not use a weighting system as such, when using the three publications' charts, it uses the highest of the positions represented by those publica-

tions to determine the song's success. Allocations to affiliates are also

based on seniority of copyright in SESAC and the number of copyrights of the writer or publisher along with their growth and diversity, and the

volume of synchronization and recording for that particular affiliate as well

as publisher promotion. Despite its small size compared to its two larger

competitors, many domestic broadcasters find it advantageous to have a SESAC license.

120 CHAPTER SEVEN

SESAC does conduct song seminars for writers, and writer's showcas- es for its affiliates, offers legal consultation for contracts in person or by mail and helps pair up potential collaborators. It has reciprocal agree- ments with around 50 foreign performing rights organizations, relying upon each one to gather information on performance in its country, then converting payments to U.S. dollars and forwarding the appropriate amount to affiliates. Like ASCAP and BMI, SESAC operates under a court consent decree.

Unlike ASCAP and BMI, SESAC serves its affiliates by handling the li- censing and collecting of mechanical fees and synchronization rights, rather than using an outside collection agency. SESAC bases perfor- mance licenses on fixed fees instead of music user's income.

MECHANICAL LICENSES

As explained in the chapter on copyright, record manufacturers are re- quired to obtain a mechanical license in order to produce and distribute records and tapes to the public. This type of license is limited to those who intend is to make these records available only for private use — the kinds of records people buy and take home.

The copyright law sets forth procedures and fees for record producers to obtain a compu/sory mechanical license. But in actual practice, most li- censing of recordings for home use are negotiated mechanical licenses. Publishers and record companies bypass the compulsory licensing route and work out their own license. A negotiated mechanical license differs from a statutory compulsory license in three ways:

1- Tine royalty rate may be the same as the current statutory rate or it may be lower

2- Royalty accountings are usually quarterly rather than monthly

as required under a statutory license.

3- The statutory requirement of "notice of intent" to record the copyrighted material is waived.

Most publishers use the Harry Fox Agency, the mechanical collection arm of the NMPA, to issue their mechanical licenses. After publishers in- struct Fox what royalty to charge, he negotiates the license, collects the

royalties, takes out a service fee of about 3.5 percent and fonwards the

net balance to the publisher. These rates change periodically to reflect in- dustry conditions and the agency's performance. The Agency continues to be a very successful operation.

Royalty Rates — As noted in the chapter on copyright, the first change in the statutory rate for a compulsory mechanical license since 1909 oc- curred in 1978 when Congress voted an increase to 2.75 cents ". . . for each work embodied in a phonorecord or one-half cent per minute of playing time or fraction thereof, whichever amount is larger." This rate is periodically adjusted by the Copyright Royalty Tribunal. As of this writing,

MUSIC LICENSING 121

the prevailing rate is 5.7 cents per song. Adjustments in the rate are

scheduled in every even year during this decade.

Collection Services — Publishers choosing not to retain the Harry Fox Agency to collect royalties have alternatives. For example, a firm offering

licensing and collecting services for mechanical and synchronization

rights is AMRA (American Mechanical Rights Association) of New York. This association represents a number of foreign mechanical rights organi- zations, the largest of which is probably GEMA of West Germany. AMRA finances its operation with a five percent service charge on gross collec-

tions.

Another New York-based company is the Copyright Service Bureau Ltd. Since the 1960s it has offered services similar to AMRA and also of- fers copyright and accounting services for writers and publishers. Its

service fees vary.

Most publishers lack strong branch offices in foreign territories and

usually turn to Harry Fox's foreign service branch to handle their mechan- ical royalties abroad. Fox has reciprocal arrangements with most foreign

collecting agencies. They normally charge Fox about 15 percent for their collecting service. Fox takes off its own service fee, then forwards the net balance to the publisher client.

In respect to collecting performance payments in the Soviet Union,

until recent years this has been difficult. After joining the Universal Copy- right Convention in 1973, the Soviets changed their attitudes about copy- right protection. Representatives of VAAP, the Soviet copyright authority, periodically visit the U.S. and negotiate reciprocal (and increasing) pay-

ments for performances of American music in the U.S.S.R., and for Rus-

sian composers' music performed in the United States.

COLLECTION SERVICES

TERRITORY AGENCY

France, Belgium, Holland,

Luxembourg SDRM (Societe Pour L'Administration du

Droit de Reproduction Mecanique, based in France)

West Germany, Austria, Bulgaria, Ru- mania, Israel, Turkey, the Philippines

GEMA (based in West Germany)

England, Scotland, Ireland, South Africa

MCPS (London-based Mechanical Copy- right Protection Society of Great Britain)

Scandinavia NCB (Nordisk Copyright Bureau)

Spain SGAE

U.S.S.R. VAAP

Switzerland SUISA

Australia, New Zealand >4/S/Z Musical Copyright Agency

Japan JASRAC

Fig. 7.2

122 CHAPTER SEVEN

SYNCHRONIZATION LICENSES

A producer of theatrical motion pictures must acquire two kinds of licens- es in the United States. The first one is called a synchronization license. The term refers to the right to use music which is timed to synchronize with, or relate to, the action on the screen. Film producers ordinarily also

seek a performance license ior exhibitions in the United States.^ The producer who wants new music composed expressly for a film will

engage a film music composer to write the original score, often buying these creative services on a work-made-for-hire basis. In this circum-

stance the producer, or employer, not only owns all the rights to the orig- inal music, but is considered, under copyright law, the author oi the work.

Thus, the producer does not require a license of any kind from the com- poser of the music, since it is the producer's property.

If the film producer does not obtain the musical score on a work-made- for-hire basis, there are other ways to proceed. The producer may en- gage a film composer as an independent contractor, pay a fee, then ne- gotiate publishing rights to the music. If the composer retains all pub- lishing rights, the film producer must then obtain from the composer a synchronization license to use the music in a film.

Another source for film music is music already under copyright and

published. A film producer who, for example, wants to use an established pop song, must negotiate a synchronization license with the publisher.

Most American publishers handle these arrangements through the Harry

Fox Agency. After the publisher instructs Fox — the Agency does not make basic decisions in this regard — on what to accept and what to charge, Fox negotiates with the film producer for the music use and the

cost of the synchronization license.

Costs of synchronization licenses will be largely determined by the

market value of the music, whether the music is to be performed on cam- era or just underscored, whether it is to be sung, and the duration of the

performance in the film. When a producer does not know who owns a particular work, the Harry Fox Agency computer can not only reveal who publishes the music, but can call up on the same screen the licensing rates. If Fox doesn't have a record of the copyright, careful producers will

normally engage a copyright researcher or law firm to assist. It is very important for the film producer to obtain the broadest possible

synchronization license, since a movie originally planned for theatrical ex-

hibition in this country will probably be used later in foreign theatres,

television broadcasts here and abroad, cable TV and home video. The publisher may try to grant the film producer a limited license in order to maximize his profits later when the film is used in different media.

In respect to performance licenses for film music, conditions in this

country differ from those in Europe. It is customary for film producers to

acquire from publishers a performance license for theatrical exhibition of

a film in this country. But in Europe and most other countries outside the

6- For this license the film producer will normally go to the publisher (or the publisher's

agent) because a court decree has denied, to ASCAP at least, the right to require a perfor- mance license directly from movie theatres in the United States.

MUSIC LICENSING 123

U.S., each country's own performance licensing organization grants to theatres in that country a blanket license for the performance of music ac-

companying films. These licensing organizations generally derive their income from film music by charging a small percentage of the net box-of- fice receipts. Nearly all performing rights organizations outside this country

have reciprocal agreements with ASCAP and BMI wherein the former may grant licenses for music controlled by ASCAP or BMI. American com- posers sometimes receive substantial performance royalties from music they have scored for films which become popular in theatres abroad.

TV Movie Rights — A different set of licensing problems arise when a film is originally produced for television broadcast. The producer will cer- tainly go for the broadest possible synchronization license, in anticipation of the production being eventually rented or sold to other media and pos- sibly foreign territories. But in respect to a performance license, the producer will normally not need one for television broadcasts, in that the TV stations and networks already have a blanket performance license with ASCAP, BMI and SESAC, for all the music they broadcast. As men- tioned above, however, TV stations may increasingly turn to "direct" or "source" licensing to avoid paying for both performance and synchroniza- tion licenses.

New Use Rights — A film producer or TV movie producer frequently wants to use music already existing in a commercially released recording. One of the reasons this may appear attractive to the producer is that it is known beforehand how the music will sound and that it has been well re- ceived by the public. But obtaining permission to borrow a record for a film score can become a complicated, expensive process. Negotiations of this kind will involve not only the record company, but the performing artists, the artists' unions and music publishers. The record company con- tract with the artist may prohibit use of that artist's records in another medium. If so, special waivers and artist's compensation must be negoti- ated. Both artists' unions — AFM and AFTRA — will require new use payments. The music publisher will demand from the film producer a syn- chronization license and a performing license.

CABLE TELEVISION LICENSES

CATV (Community Antenna Television) systems (which pick up TV sta- tions' signals, boost them and wire the pictures into homes) are described in the 1976 Copyright Act as being in the business of offering "secondary transmissions" of "primary material." As such, cable operators are re- quired to operate under a compulsory license. These licenses are issued and administered by the Copyright Royalty Tribunal. Rates are deter- mined by an elaborate set of guidelines, including reports from the CATV companies on the number of channels transmitted, number of sub- scribers, and adjusted gross receipts. After deducting administrative expenses, the Tribunal then distributes this money to copyright owners. Rates set by the 1976 Copyright Act are periodically re-evaluated by the Tribunal, which is empowered by the copyright law to adjust them.

124 CHAPTER SEVEN

The CRT has the power to apportion this money among the five major groups representing copyright owners. The largest share, around 75 per- cent, goes to TV program syndicators; joint sports claimants are awarded around 12 percent; noncommercial broadcasters receive just over 5 per- cent; the three performing rights organizations share 4 to 5 percent. The smallest portion (about 3.5 percent) goes to commercial TV broadcasters.

Individual members of the groups representing copyright owners, such as the three American performing rights organizations, for example, are encouraged to negotiate among themselves for fair apportionments. When disputes arise (and they often do), the CRT is empowered to deter- mine fair shares.

Other Cable TV Licenses — Almost all cable companies offer, not only relays of conventional TV programs, but additional channels, as part of their standard service or for extra cost to their subscribers. Performing

rights organizations negotiate special licensing contracts with these pro-

gram suppliers, e.g., MTV, HBO and Showtime. These agreements are dis- tinct from tiie compulsory licenses the law requires for CATV companies.

In respect to music bounced off satellites and picked up by "earth sta- tions," copyright laws were clarified in the Satellite Home Viewer Act of 1988. Section 119 of the Copyright Act provides in general that secon-

dary transmissions of a primary transmission made by a superstation, or of programming contained in a primary transmission made by a network station, and embodying a performance or display of a work, shall be sub- ject to statutory licensing if the secondary transmission is made by a satellite carrier to the public for private home viewing, and the carrier makes a direct or indirect charge for such retransmission service to each subscriber receiving the secondary transmission.

The problem of satellite "footprints" transgressing international bound- aries has become a politically thorny issue in recent years. Some countries have not had laws prohibiting unlicensed re-broadcasting. Some unlicensed cable companies have been able to pick up American satellite signals and re-broadcast them in their own countries without pay- ing any fees. Now with the raised standards of the Berne Convention, it is hoped that creators will realize further protection against unauthorized us- ages in member countries.

VIDEO LICENSES

The music video market grew rapidly in the early 1980s and no industry standards were in place for licensing them. The matter was complicated by the failure of the 1976 Copyright Act to address the question.

Despite the initial skimpy guidance from copyright law, experienced

entertainment lawyers and industry leaders gradually formed a consen-

sus. Here is a summary of their views —

1- All videos, whether clips or albums, must be defined under copy- right law as "audio-visual works. " As such, they are like "little movies, " and producers must acquire synchronization licenses from music publishers or their agents.

MUSIC LICENSING 125

2- Performance rights in videos must be acquired from ttie pub-

iisher by ttie party wlio stiows the videos to the public. These

rights are most conveniently negotiated between the "shower"

and the publisher's performing rights organization. Where the video is shown through conventional TV, the broadcasters' blan- ket performance rights agreement is sufficient. Where the video

is shown on cable TV, the exhibitor (e.g., MTV, HBO, etc.) must negotiate performance rights with ASCAP, BMI or SESAC. If the video is shown in a club or similar venue, the venue's blanket performance license with ASCAP, BMI or SESAC will suffice.

3- Video software manufacturers must pay publishers (or their agents, such as Harry Fox) for the right to mechanically repro-

duce the videos as cassettes or discs for home use. Courts have held that this right is not automatically considered part of a syn-

chronization license, but must be addressed specifically. The

parties, or their agents, can determine through negotiation

whether the mechanical right is to be paid as a one-time flat fee

or as a royalty based on software sales.

TRANSCRIPTION LICENSES

The term "transcription license" is applied imprecisely to cover music

used by syndicated programs, Muzak, in-flight entertainment and "music

library services." These kinds of music users require a mechanical license

and a performance license. The two may be combined in one agreement or contracted separately.

A user seeking such licenses may negotiate directly with publishers or with the Harry Fox Agency or SESAC. In respect to the collection of per- formance fees, users work out agreements with ASCAP, BMI or SESAC.

Firms such as Muzak usually obtain a master or "block" license from the performing rights organizations with fixed annual fees based on their

current number of franchised dealers. The 3M Company license calls for a payment of five cents per selection for each copy of the tape that is sold

to users. This nickel includes two cents for the mechanical license and

three cents for the performance right.

A somewhat different kind of transcription license is obtained by pro- gram syndicators and broadcasters' library services such as described in

the chapter on radio broadcasting. These packages must negotiate for

transcription licenses with the Harry Fox Agency or directly with the music publishers. In respect to performance licenses, syndicators and produc-

tion companies involved in these kinds of services take care of them with

the performing rights organizations, thus relieving individual broadcasters

from the burden of negotiating separate performance rights for this partic-

ular music.

In respect to "in-flight entertainment," the supplier of the tapes and films

must obtain rights of synchronization and mechanical reproduction from

copyright owners. Negotiations may be directly with publishers or the Har- ry Fox Agency. Concerning performance licenses, in-flight program sup-

pliers normally negotiate directly with the performing rights organizations.

126 CHAPTER SEVEN

SPECIAL USE PERMITS — As explained in the chapter on publish- ing, music is often licensed for applications relating to various merch- andising tie-ins, such as posters, apparel, greeting cards, even computer software. Licenses of this kind are simply referred to as "permissions" or "special use permits." The publisher may settle for a one-time fee, or may prefer a royalty agreement tied to sales.

BROADCAST COMMERCIALS — For many publishers, the highest earnings from special use permits are generated from broadcast com- mercials. An advertising agency or sponsor who wants to use all or part of a pop standard is often willing to pay several thousand dollars for the privilege. These kinds of music licenses often include the right to alter the words and music to suit the needs of the advertiser.

In respect to music composed originally for broadcast commercials, the composer usually has the option of granting the advertiser a "buy-out" deal or, more likely, permitting unlimited performances of the music if the uses are confined to advertising.

JUKEBOX LICENSES

Since 1978 jukebox owners have been required to obtain a public perfor- mance license for music played on their machines. This is for nondramatic music only, and is applied to equipment where admission is not charged, directly or indirectly. As mentioned earlier, the original 1976 Act provision making this a compulsory license was amended by the en- abling legislation of the Berne Convention. These licenses are now negotiated between the jukebox operator and the copyright owner, often with the involvement of a performing rights organization.

A joint administrative committee handles the rebates and new jukebox registrations. The performing rights organizations continue to offer juke- box registration incentives, such as license rebates, as a way of enlarging the royalty pool. Because licensing fees are negotiated based on stan- dard rates recommended by the performing rights societies, those interested should contact BMI, ASCAP and/or SESAC directly.

DRAMATIC MUSIC RIGHTS

Study of copyright law in the United States reveals that the statute makes sharp distinctions between dramatic music and nondramatic music. Ac- cordingly, the licensing of rights differs markedly.

The term dramatic music includes, for example, operas, musical plays, musical shows and revues, in whole or in part. The term may also include music that did not originate in some kind of theatrical production but was written as part of a TV or radio show where the music was integral to the plot and where it contributed to carrying the drama forward. It is custom- ary to refer to copyrights in dramatic music as grand rights, and grand rights must be negotiated with copyright owners separately from nondra- matic rights, which are sometimes termed "small rights.

MUSIC LICENSING 127

In respect to Broadway musicals and similar productions, rights of au- thors, composers and lyricists are set forth in contracts based on regu-

lations of the New York Dramatists Guild. Under these kinds of contracts, the composers and lyricists retain all publication rights of their material,

and inherent in the right of publication is the right to collect both mechan-

ical royalties and synchronization fees.

In respect to performance licensing, a show's composers receive roy- alties from ASCAP, BMI or SESAC for performances of individual songs on radio, TV, clubs and restaurants, etc. But when a dramatic musical work is performed as a whole, or a substantial portion of it is performed — e.g., a scene including music and dialogue — grand rights must be li- censed. ASCAP does not involve itself in licensing grand rights of any of its repertoire. Its members usually assign that responsibility to one of the firms involved in grand rights licensing and rental of scores and parts.

BMI licenses with broadcasters include dramatic music rights, but BMI re- serves the right to negotiate special conditions for use of certain kinds of

dramatic performances. SESAC's standard contract with broadcasters excludes dramatic music. SESAC licenses such rights separately. When a Broadway musical becomes a hit, its writers enjoy income

from its performances long after its Broadway run. In this country there are hundreds of regional theatres offering performances of these beloved

shows. Each dramatic performance of this kind requires a license and royalty payment. Rates for one performance of an amateur or school pro- duction of a Broadway musical would range between $75 and $150. In addition, the show's book, score and parts must be rented from the li-

censing agency. Professional performances of Broadway shows (follow- ing a Broadway run) require a license involving a weekly minimum guar- antee against 10 percent of the box-office receipts. Professional productions also must rent the show's book, score and parts. The produc- ers are generally charged higher rates than those for amateur groups.

Performance licenses for touring companies vary. Some touring com- panies are under the aegis of the original Broadway producer; others are mounted independently.

In respect to music videos, questions arise concerning whether a dra-

matic treatment of a song may properly involve a grand right. Most songs treated in music videos are just songs; they were never part of a dramatic production until transformed by the video producers. But some attorneys argue that publishers could demand, if they so desired, the video produc- er to acquire a grand right when the original song is turned into a musical "drama." Jay Cooper, distinguished Beverly Hills attorney, suggests that it

is more consistent to limit questions of grand rights to live performances, and that publishers can learn whatever a song might be worth in the mar- ketplace through the standard procedure of granting a synchronization license for a music video.

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Individuals involved in the music and entertainment fields have devel- oped a large number of organizations to represent their interests. The number and kinds of representative organizations appear almost end- lessJ Here we have room to discuss only the larger organizations. They are structured in a variety of ways. Some, like the AFM, are real trade unions, connected with the AFL-CIO. Others are more accurately described as guilds. Still others are simply associations of independent contractors. If this were not complicated enough, we have entertainment industry "guilds" (for example, the New York Dramatists Guild) whose members may own the company with whom they are supposed to "nego- tiate" for their services.

The AFM, AFTRA, AGMA, SAG and AGVA are discussed below. The Songwriters Guild of America is treated in Chapter 4. Smaller unions and guilds are described at the end of the present chapter. When young artists start their careers, they are often reluctant to join

their respective unions, seeing such action as expensive and restrictive. But if the artist's services become in demand, opportunities will arise where union affiliation is not only advantageous, but imperative. Most

1-The following kinds of professionals are represented in some kind of organization: composers, arrangers, lyricists, instrumentalists, singers, playwrights, theatrical producers, directors, stage actors, screen actors, choreographers, dancers, scenic designers, scenery

builders, stagehands, electricians, personal managers, record producers, audio techni- cians, and educators specializing in the fields of music management, merchandising and recording technology.

130 CHAPTER EIGHT

employment available to artists above the "small-time" level is "union," meaning that if an individual wants to be a professional performer (or arranger, copyist, director, conductor, actor, dancer, etc.) those services

will be under the jurisdiction and control of a union contract. The arts organizations and industries employing artists have recog-

nized, often reluctantly, the jurisdictions of AFM, AFTRA and the other unions. But artists' labor organizations have experienced, in recent years, the same problems affecting the labor movement as a whole: loss of members, restrictive legislation, decreased bargaining power and loss of jobs through foreign competition and developing technologies. On the other side of the bargaining table, artists' unions face employ-

ers who are confronted with some of the same problems harassing labor — for example, inflation, foreign competition and the impact of changing technologies. Since both labor and management in the arts and enter- tainment fields share common problems, it appears their interests may be best served through negotiation rather than confrontation.

AMERICAN FEDERATION OF MUSICIANS (AFM)

The full name of the AFM is American Federation of Musicians of tiie United States and Canada. It is the oldest union in the United States rep- resenting individuals professionally active in the fields of entertainment

and the arts, its history dating from the nineteenth century. The AFM has always been the largest artists' labor organization; its membership cur- rently numbers under 200,000 musicians (some ten percent of them in Canada). Through the years, though, the AFM has been losing members — it represented more than 300,000 musicians in the 1970s — and some of its power. Why? A number of reasons have been advanced: 1) inability of the union to attract many of the new, young professionals; 2) state and national laws restricting certain kinds of collective bargain- ing; 3) continuing displacement of live performances with canned music;

4) increasing displacement of live musicians by electronic instruments;

5) continuing importation of music recorded abroad; 6) increasing preva-

lence of nonunion performances, live and recorded. The AFM's national headquarters is in New York City, and the union

has several hundred local offices.

AFM membership includes professional instrumentalists, conductors, arrangers, orchestrators, copyists, music librarians and proofreaders. The union maintains no jurisdiction over the professional services of composers (although practically all composers professionally active in film, television, radio, commercials and syndication are AFM members by virtue of their services as either conductors, instrumentalists,

arrangers or copyists).

If a musician sings professionally, it is not necessary to be an AFM member unless the musician also works professionally in one of the ca- pacities listed for regular AFM membership.

Unlike a number of guilds and professional associations in the arts, the AFM is a bona fide labor union: its members are employees and the AFM represents the interests of its members to employers.

UNIONS AND GUILDS 131

The AFM functions on two levels — local and national. The local offices of the union have jurisdiction over all union work for musicians which is not covered by national contracts. AFM national contracts embrace all services of musicians in the fields of recording, network broadcasting, theatrical film, television film and tape, "live-on-tape" net- work television, home video, syndicated programs and services, pay-TV, commercial announcements and contracts covering the taped music for certain traveling productions such as circuses and ice shows.

National contracts are negotiated by the union's National Contracts Division, which reports to the AFM Board of Directors. The National Con- tracts Division has a resident representative in New York City and Los Angeles. The division negotiates contracts, or revises contracts, with trade associations representing record manufacturers, network broad- casters, commercial announcement producers and film producers. Most of these national contracts have a two- to three-year term. AFM contracts, whether local or national, generally include agree-

ments on such issues as wages, hours, overtime, working conditions, orchestra size minimums, instrument "doubling," heavy-instrument cartage, "class" of venue, rehearsal fees, pay for leader and contractor, tracking scale, reuse and new use of recorded material. Contracts also stipulate that the employer will employ only AFM members, and agrees to pay the current surcharges for the AFM's Pension and Welfare Fund.

The AFM manages to negotiate reasonably satisfactory contracts, at least from the union's point of view, at the national level. But at the local level union control over wages and benefits is weak. This is largely because certain states invoke their right-to-work laws and, more signifi- cantly, because of the constraints on union jurisdictions imposed by the Taft-Hartley Law (1947). Under a National Labor Relations Board inter- pretation of this law, musicians are considered independent contractors, self-employed. As such they are prohibited from compelling purchasers of musicians' services to recognize the AFM as the musicians' collective bargaining agent. As a consequence, employers of musicians not under national contracts, (such as club owners, hotels, etc.) are not required to contribute to such employee benefits as unemployment insurance, F.I.C.A. and pension funds. Over a period of many years the AFM has urged its members to appeal to their representatives in Congress to modify the Taft-Hartley Law's limitation of musicians' rights.

Union Finance — The union finances its activities with new members' initiation fees, annual dues and "work dues." Musicians refer to the latter as a "tax." The amount of this tax varies from local to local and ranges from a one percent to about five percent assessment made against union scale wages earned by members; that portion of wages over scale is not taxed.^

A share of these monies collected by the locals is forwarded to AFM's international headquarters in New York City to finance the union's activi- ties throughout the U.S. and Canada.

Other Services — The AFM attempts to license and control talent agents through franchising them. This process is described in Chapter 9.

132 CHAPTER EIGHT

The union also seeks to protect its members from employers who don't pay union musicians what they are due.^ Slow-paying or nonpaying employers are sometimes sued by the union. More often, they are simply

blacklisted, in part through publication of the names of offenders in the musicians' monthly magazine, International Musician.

The AFM is active as a member of the International Federation of Musicians (FIM), an organization that attempts to foster cooperation and

reciprocal agreements among union musicians around the world.

AFM contracts covering the record industry are described in Chapter 17. In respect to AFM employment in film scoring, see Chapter 25.

AMERICAN FEDERATION OF TELEVISION AND RADIO ARTISTS (AFTRA) '

AFTRA is recognized as the union representing professional singers. It defines its jurisdictions as including "live and taped television, radio, tran-

scriptions, phonograph records and non-broadcast material." The union

has over 40 regional offices or "locals" and a membership of over 70,000. Like the AFM, AFTRA is affiliated with the AFL-CIO.

In addition to singers and actors, AFTRA's membership includes dancers, announcers, news reporters, sportscasters, sound effects peo- ple and "specialty acts." Among its membership are anonymous background singers and multimillionaire superstars.

Like the AFM, AFTRA is a real labor union: its members are employ- ees, and AFTRA's main business is working out labor agreements with

prospective employers. As with most national labor unions, AFTRA's leadership negotiates its national contracts with industry associations

representative of the major sectors of the entertainment industry — record companies, TV and radio networks, TV producers and producers of commercial spots intended for broadcast.

When a singer gets an opportunity to perform for the first time in a field where AFTRA has jurisdiction, the gig may be accepted without joining the union, because the Taft-Hartley Law initially excuses the per- former from this obligation. But the artist must join the singers' union

2-ln some cities, by mutual consent of the local and employer, the employer fonwards a check directly to the union office to cover all union wages, benefits and retirement funds.

Then, upon the musicians' authorization, the union deducts musicians' work dues, deposits

the benefits and all other special payments into their respective accounts, and writes a net

paycheck tor each musician employed on the date. Under different circumstances, the AFM will permit an employer to pay musicians through an artists' payroll service company, whose

services are available in large cities. AFM contractors sometimes use this kind of company to handle wages, tax accounting and benefit payments.

3-See preceding note.

4-ln Canada the comparable union is ACTRA, the Association of Canadian Television and

Radio Artists.

UNIONS AND GUILDS 133

within thirty days thereafter to continue accepting jobs under AFTRA jurisdiction. The union's initiation fee is high; 50 percent of it is forwarded

to AFTRA's national headquarters in New York City. Somewhat less than one-half of members' annual dues are also passed on to national head-

quarters to support the union's activities. Members' dues vary widely and

are determined by the individual's annual gross earnings on union jobs.

Most employers are required to make payments for AFTRA members' services directly to the union's local office, from where individual dis- bursements are subsequently made.

In respect to AFTRA's jurisdiction over professional singers, the union's contracts classify such artists as soloists, duos, or group singers.

Scales are highest for soloists and duos, second-highest wages are earned by soloists who "step out" of an ensemble momentarily for a fea- tured segment. Background singers are paid somewhat more when performing with duos and trios than they are in larger choral ensembles.

Of all the artists' performing unions, AFTRA has the most complicated schedule of wages. Particularly in the commercial spot field, union stew-

ards must be able to tell a producer what his costs will be for singers

relative to the intended market for the spots — whether they are for local, regional or national broadcast. AFTRA wages rise according to the potential size of the market. In the commercial production industry, it is

not unusual for large production companies and advertising agencies to have at least one full-time employee helping spot producers figure out

the correct AFTRA scales. The only safe solution is for the producer to get current AFTRA scales directly from the union. One of the most important components of AFTRA contracts is the pro-

vision for new use or extended use. As with most other artists' union contracts, when an AFTRA member performs on a tape intended for one particular medium, additional money is earned if that tape is later used in a different medium, e.g., when a commercial recording might be licensed for use in a movie or television show. AFTRA artists also earn additional wages in a situation where the use of a broadcast commercial extends beyond the initial term (often limited to thirteen weeks). If the spots are to

be broadcast beyond that initial period, AFTRA artists are paid for "extended use" of the material. Since many spot campaigns are broad- cast for long periods of time, even years after the initial use, earnings of

AFTRA members from this source can become very large. As with the AFM, AFTRA requires a union steward on the job to make

sure the producer meets all the obligations to the singers under contract. AFTRA is almost exclusively concerned with negotiating and implement- ing singers' activities covered by national contracts, particularly the

recording and broadcasting industries. The singers' union has minimal control over singers performing on local shows and commercials outside of the recording centers of New York, Los Angeles and Nashville. But AFTRA officers say they are gaining strength in some other large cities. AFTRA was the first talent union to provide its members with a pen-

sion and welfare plan. These benefits are funded entirely by assess- ments on employers.

In respect to AFTRA's involvement in the recording industry, see Chapter 1 7.

134 CHAPTER EIGHT

The "Four-A" Unions — AFTRA is a member of a loose alliance known in the industry as "The Four-A Unions." The term "Four-A" stands for "Associated Actors and Artistes of America;" all unions under this banner are affiliated with the AFL-CIO. This group includes Actors Equity Asso- ciation (AEA), American Guild of Variety Artists (AGVA), American Guild of Musical Artists (AGMA), Screen Actors Guild (SAG) and Screen Extras Guild (SEG). If a singer is already a member of one of the other Four-A unions, the AFTRA initiation fee and dues are lower than for artists without prior union affiliation of this kind. The Four-A's have helped reduce jurisdictional disputes among performers' unions, although each Four-A member organization requires performers to belong to its particular union when jurisdictions appear to overlap. The AFM also zealously guards its own turf. For example, a singer who also plays an instrument on a network TV show must belong to both the AFM and AFTRA. A movie actor who appears on a TV show must hold a SAG card as a film actor and an AFTRA card as a television performer. It should be noted that practically all SAG members of any stature find it necessary to be AFTRA members too, in that most actors work in both media.

AFTRA and SAG have worked together in defining their jurisdictions in the field of music videos: those shot on tape fall under AFTRA's juris- diction, those shot on film under SAG's. In the early history of this field, practically all videos were knocked out on shoestring budgets too small to permit the payment of union wages, particularly for singers, dancers and actors. Small, independent labels and the smaller production com- panies continue to produce their videos with nonunion (or partly union) artists and crews. But the larger firms increasingly use all union artists and production personnel.

For many years the Four-A Unions have seen the logic of organizing themselves into one entity. Such an action would benefit both employers and employees. Moves toward unification have already been made by SAG and AFTRA. In some markets the two unions share office space and office personnel.

AMERICAN GUILD OF MUSICAL ARTISTS (AGMA)

The American Guild of Musical Artists was organized in the 1930s to serve the interests of singers and dancers working in the opera, ballet, concert and recital fields. AGMA's membership also includes instrumen- talists who are active as soloists in the classical field. AGMA employment agreements are often negotiated for a particular

ensemble, such as the Met's chorus or the San Francisco Opera's corps de ballet. Such contracts cover the standard items in any labor agree- ment — wages, working conditions and benefits. Most AGMA contract negotiations are with nonprofit arts organizations which own the perform- ing group, e.g., the American Ballet Theatre Foundation, which owns and sponsors the American Ballet Theatre.

UNIONS AND GUILDS 135

AMERICAN GUILD OF VARIETY ARTISTS (AGVA)

AGVA represents singers, dancers, comedians, ice skaters, jugglers, magicians, etc. who perform live, primarily in such venues as clubs, casi- nos, resorts and fairgrounds. AGVA includes in its membership, not only the struggling regional performer, but world-famous artists drawing huge

fees performing live in Las Vegas and elsewhere.

ACTORS EQUITY ASSOCIATION ("EQUITY")

Professional actors, directors and stage managers in the United States are represented by the Actors Equity Association — which theatre peo- ple refer to simply as "Equity." A large number of Equity members are singing actors (or "actors who sing") in theatrical productions.

Equity is a trade union. For actors, directors and stage managers employed in the Broadway theatre. Equity negotiates with the League of New York Theatres and Producers Inc.

For many years, Equity membership was made up almost entirely of personnel working in New York City. Today, Equity has members all over the country. This has come about with the large growth of regional the- atres, dinner theatres and acting companies in residence on college campuses.

Of all the artists' unions. Equity enjoys the best reputation, with pro-

ducers at least, for being flexible about what an actor should be paid.

This is because Equity leadership has understood that one of the ways the union can foster increased employment opportunities for actors is to demand full Equity scale only from producers who can afford it. Since so many productions combine casts of professional, semiprofessional and nonprofessional actors. Equity often makes special concessions on wage scales. But if most of the cast is earning union wages, or adjusted union scale wages, it is referred to in the business as "an Equity show."

One of the reasons Equity has been relatively lenient with producers concerning wage scales (and even nonpayment of actors under certain circumstances) is that the union always has more members out of work than members working. But for the Broadway productions at least, actors and singing actors cast in a show that closes on opening night get at least two weeks additional salary, because producers are required by Equity to post a bond prior to opening for that kind of emergency.

Besides the contract Equity periodically negotiates with Broadway producers, the union extends to off-Broadway producers much lower scales. For actors employed in regional theatres and companies in resi- dence on college campuses. Equity covers their services with its so-called L.O.R.T agreement — the acronym for League of Resident Theatres. Many of these contracts are with nonprofit entities which are supported, at least in part, by colleges, states arts councils, the National

Endowment For The Arts, and private donations. Equity cooperates with producers and theatrical companies in pre-

senting talent "showcases," where unknown actors and singing actors find an opportunity to gain experience and recognition.

136 CHAPTER EIGHT

SCREEN ACTORS GUILD (SAG)

The Screen Actors Guild is probably the most widely known artists' union, in that so many of its members are world-famous performers. SAG has jurisdiction over all actors, singers and on-screen instrumental- ists who act in motion pictures, television programs and commercials, industrial films and filmed music videos. It is classified as a trade union, in that its members are employees whose services are rendered to employers through contracts negotiated by the union (guild). In Holly-

wood, the parent contract is negotiated with AMPTP — the Alliance of Motion Picture and Television Producers.

Like the AFM and AFTRA, the actors' union attempts to control behavior of actors' agents through a franchising system. Again similar to

the AFM and AFTRA, SAG contracts stipulate who is responsible for residual payments to actors when a production created for one medium is sold or licensed for exhibition through another medium.

INTERNATIONAL ALLIANCE OF THEATRICAL AND STAGE EMPLOYEES (lATSE)

lATSE is the union having jurisdiction over stagehands in the legitimate theatre and in the majority of motion picture and (filmed) television pro-

ductions. Many motion picture camerapersons and movie projectionists also belong to the lATSE.

UNIONS AND GUILDS 137

In the television field, lATSE is getting some competition from a rival union, NABET — the National Association of Broadcast Employees and Technicians. In respect to audio technicians working in recording studios

and broadcasting, no one union has managed to gain complete jurisdic- tion. Many employers of these kinds of technicians have been able to avoid union shop status.

It should be noted that open shop agreements generally stipulate that individuals employed in such a situation are subject to the collective bar- gaining agreement in effect between the pertinent union and the employer, and that in the event of a dispute, the terms of the collective

bargaining agreement would govern the employment of the nonunion employee.

OTHER UNIONS AND GUILDS

Dramatists Guild — The New York Dramatists Guild is a trade asso- ciation, not a labor union. It represents composers, lyricists and "book" writers active in the musical theatre on Broadway. The guild also in- cludes, as members, playwrights who write plays without music, or plays that use music only incidentally.

The Dramatists Guild is a division of the Authors League of America, which has two branches — the Dramatists Guild and the Authors Guild. The latter is a trade association of authors of books other than "books" for plays.

One of the principal concerns of the Dramatists Guild is the protection of the copyrights of its members. The guild requires that the ownership and control of the music, lyrics and book of a show remain in the hands of its authors and composers. The producer cannot claim publishing rights of this material. Guild members retain copyright in their material, including the licensing of performances of dramatic music (grand rights).

The guild also helps its members preserve the integrity of their works, in that producers and directors are not allowed to alter music, lyrics or the book to a show without the composers' and authors' consent.

Other unions and guilds related to the music and/or entertainment fields are the Writers Guild of America (west and east), the Directors Guild of America, the Producers Guild of America, the National Confer-

ence of Personal Managers, the Society of Stage Directors and Choreographers, and the United Scenic Artists.

Additional concerns relating to unions and guilds have to do with the employment of minors and the whole issue of immigration and work per- mits, where one country seeks to limit foreign artists from displacing its own citizens from job opportunities. Individuals needing definitive infor- mation on these kinds of problems are advised to search out current regulations and statutes through attorneys experienced in labor or immi- gration law.

MUSIC INDUSTRY CROSSROADS, Sunset and Vine, Hollywood. Dozens of music industry companies are housed in the two buildings shown above

(Motown building is at left).

, AGENTS, MANAGERS AND

ATTORNEYS

Once you give up your integrity, everything else is a piece of cake. J.R. EWING (TV's "Dallas")

Most professional artists find it desirable, even imperative, to call upon others to assist them in handling their business affairs and the develop- ment of their careers. Partly because of the "glamour" of the music and entertainment fields, performers of even modest success find themselves surrounded by individuals who claim they can help the artist find the path to fame and fortune. Curiously enough, some of them can. Many perform- ers of modest gifts have been brought from the unemployment line to at least temporary "success" through the efforts of clever management. Many others, obviously very talented, continue to flounder in the small- time for want of someone competent enough to guide their careers in the right direction.

A successful professional artist is generally surrounded with a com- plete retinue of assistants, probably including a personal manager, agent, business manager, road manager, attorney and publicist. The compe- tence of these individuals ranges from superb to zero. Some are mere hangers-on, possibly "groupie" graduates. Others may be wizards at han- dling money and negotiating contracts. As for their integrity, this array of music business personalities includes individuals with characters ranging from exemplary to crooked. Some are licensed and regulated; others completely lack credentials. Some have Master's degrees in business ad- ministration; others may have difficulty reading traffic signs. The services that support personnel render an artist overlap and intertwine. In this chapter the roles of agents, managers and music business attorneys will be defined as they relate to the arts and entertainment industries.

140 CHAPTER NINE

AGENTS

Agents go under various names. Many people refer to them as "booking agents," which most of them are. In California they are known today as "talent agents." Sometimes people in and out of the business use the term "manager" or "artists manager" interchangeably with "agent." In that these appellations are used most definitively in the state of California where a high percentage of agency work is conducted, the word "agent" will be used here the way California statutes define "talent agent" — that person who is in the full-time business of procuring employment primarily for performers, writers, producers and directors.

the talent agent has two kinds of clients. First, there is a roster of artists. The other kind of client is the buyer oi such talent — primarily pro- ducers, promoters and club owners. The talent agent's job is to deliver artists to talent buyers, to serve as the middle person — the negotiator — who knows, or should know, what an artist is worth, and must know what the buyer is willing and able to pay. If the agent prices the "merchandise" too high, the buyer won't deal. If the agent prices the merchandise too low, not only will there be a lower commission, but clients may be lost to other agents who are more aggressive.

The agents who are most successful over the long run have earned the respect and confidence of both buyers and sellers. It is the agent's task to obtain the highest possible fees for clients, and to work closely with the artist's manager if a top act is involved. If an agent can attract major artists, commissions may place the agent in an income bracket comparable to that of a star performer.

REGIONAL AGENCIES

An agent often starts out in a medium-sized city working alone, quickly discovers it is hard to be very effective that way, and connects with one or two other local agents. Perhaps three of them can afford to rent a modest office and hire a secretary. Agencies of this size handle most local book- ings. They try to persuade local club owners to try live music instead of a jukebox or videotaped entertainment. One of their greatest challenges is locating acts attractive enough to pull dancers and drinkers into local clubs. Most of the acts sending them demos are, at best, semiprofession- al — clearly not strong enough to justify the club owner paying them even union scale. So the agent keeps searching — for buyers and qualified tal- ents.

Until the agent can discover acts with some drawing power there will rarely be a chance to build the booking business above a minimum sur- vival level. But now and then, local acts create a following and start to command fees high enough to earn the agent a respectable income.

Agents with ambitions transcending the city limits search out contacts and joint bookings with national, and even international, agencies. Such deals ordinarily involve commission splits.

If a local agent learns the trade and develops national contacts, per- haps there will be a job with a large national booking agency. If the agent

AGENTS, MANAGERS AND ATTORNEYS 141

is aggressive, creative and persevering, there might be a bright future ahead. National booking agencies employ hundreds of people and oper- ate with offices in the major cities of the world. Agencies such as William Morris and ICM (International Creative Management) handle hundreds of artists and gross hundreds of millions of dollars a year. Such agencies generally take commissions of 10 percent of their gross. One of the principal reasons these large international outfits do well is

their power to package — they can pull together, for a television network or movie company, not only the star performers, but supporting players, writers, directors, composers, even choreographers. It is big business in this league, and major talents generally seek exclusive representation by one of these international firms. In addition to their ability to package, the big companies represent artists in all fields of entertainment — concerts, television, records, films, commercials and product endorsements. For rock tours, large agencies sometimes also join forces with other agencies to package the tour.

Major agencies rarely sign unknown talents; they are preoccupied booking their stars. Unknown acts must struggle along with local agents, usually until they achieve some success as recording artists. Some artists, e.g., songwriters, don't even need agents. They learn to

contact publishers directly. A songwriter who is also a performer usually requires a talent agent for represention.

NATIONAL FULL-SERVICE AGENCIES

Large talent booking companies are sometimes described as "full-service agencies." They generally demand that their artists grant them the right of exclusive representation in all fields. In the process of signing an artist, a large agency will submit a package of ten or more contracts for the signa- ture of the new client. Some of these agreements are form contracts used by that particular agency. Of the ten or more contracts submitted to pro- spective new clients, only four will have frequent application to a contem- porary recording artist or performing group:

1 - American Federation of Musicians Exclusive Agent-Musi- cian Agreement;

2- American Federation of Television and Radio Artists Stan- dard Exclusive Agency Contract;

3- American Guild of Variety Artists Exclusive Agency Con- tract; and

4- The talent agency's own "general services and materials agreement. " More often than not, this is broken down into two or more separate contracts which cover "materials,

services, TV and movie packages and other kinds of en- tertainment packages.

142 CHAPTER NINE

Most "general services and materials" agreements cover only those matters not covered by the union contracts listed here. They generally pro- vide that the agency serve as the artist's advisor and representative in respect to the artist's activity and participation in such fields as "merchan- dising, testimonials and commercial tie-ins." The general services contract that has been used by the William Morris Agency, one of the world's oldest and largest, provides that the artist's approval is required prior to the agen- cy committing the artist, that the agreement can be terminated if the agency can't find work for the artist for four consecutive months, that any disputes are to be referred to the Labor Commissioner of the State of Cal- ifornia, that the agreement shall not negatively affect any union contracts involving the artist, and that the agency has the right to assign the contract to a third party.

A full-service agency "general materials and packages" contract cov- ers the artist's involvement in non-musical creative properties (scripts, scenarios and packaged shows, e.g., for television and film). But it is standard practice in the industry for agreements of this kind to exclude professional activity as a composer. Accordingly, the artist's income from music publishing is also excluded. Agency representation for musical artists, particularly in rock, is usually restricted to matters relating to con-

certs and touring (and promotion of performance dates).

Changing Representation — Artists frequently change agencies in the hope that new representation will further their careers. Large agen- cies are often criticized for neglecting the individual artist unless that

person is a star of some magnitude. Many lesser names feel they get lost in the shuffle of a big company attempting to find work for its huge sta- bles. The major booking companies are aware of these negative views of their operations and attempt to offer each of their clients the personal at- tention of at least one particular agent on their staff who is assigned to keep the artist working and happy. The AFM agency franchise agreement requires that the firm name the specific individual agents who are to han- dle the affairs of the musician under contract.

Agents, like performers, are mobile. They frequently change compa- nies or break off and set up their own firms. If the agent has performed well and leaves the agency, this causes consternation in the company, because the firm loses continuity of contracts and probably a lot of good- will among talent buyers. The departure of a popular agent also is upsetting, to say the least, to the particular group of artists that agent was handling for the company. Often, personal relationships and confidences are built up between agent and artist. When the agent leaves, it is a com- mon occurrence for those artists to seek relief from their contracts with the company, declaring their intention of following that agent. The agency is reluctant to terminate a contract with a valuable client and might refuse a release. A court battle may ensue. In general, in these kinds of alterca- tions the courts have tended to find for the artist, recognizing that in the employment field, the element of personal relationships is entitled to spe- cial consideration. Many artists insist on inserting "key man" clauses into their agency agreements, allowing them to accompany their preferred agent should that agent depart the firm.

AGENTS, MANAGERS AND ATTORNEYS 143

REGULATION OFAGENTS

The public may have acquired its acquaintances with booking agents largely through watching show biz movies on the late show. Some of the colorful characterizations might lead one to believe that the only qualifica- tions needed by an agent are a tolerance for cigar smoke and a pair of alligator shoes. The field is still inhabited by Damon Runyan-type charac- ters. Many buyers and sellers of talent are convinced there is no such thing as an honest agent — that too many of them talk faster than they can deliver.

Statutory Regulation — Agents and artist managers proliferated early in this century with the rapid growth of the movie industry. In the early days, agents' abuses of performers were widespread: wages would be skimmed or never paid; collusion between agents and employers would occur. Artists would be dispatched long distances to jobs that never exist- ed. Because agents became particularly active in the early days of the film industry, California was one of the first states to attempt to regulate them. Following first attempts in 1913 to regulate employment agencies, California enacted its Labor Code in 1937. This code made a distinction between "motion picture employment agencies" and agents active primar- ily in booking vaudeville acts, circus performers and actors for the legitimate stage.

In 1943 California added a new category, "artist's manager." In 1967 California repealed substantial portions of its Labor Code. "Theatrical em- ployment agencies" and "Motion picture employment agencies" were eliminated as separate categories. But the "artist's manager" category was retained and placed under the jurisdiction of the Labor Commissioner of the Department of Industrial Relations. "Employment agency" provisions were shifted to the jurisdiction of what is now the Department of Consumer Affairs.

In 1978 California altered its artist's manager statute, the principal change being one of nomenclature: "artist's managers" were subsequent- ly to be known as "talent agents."

Because of widespread abuse of artists by agents in the past, Califor- nia laws today severely limit the activities of all persons involved in artist representation. Procurement of employment for artists and entertainers in California is strongly regulated by two state statutes — the Talent Agen- cies Act of 1 978 and the Employment Agency Act.

Simply stated, all persons engaged in the procurement, or attempt of procurement, of employment of an artist must be licensed by tfie state to do so. Any contract can be vitiated by the state where an individual en- gaged in procuring employment lacks the required state license.

Union Regulation — In addition to state laws governing persons en- gaged in agency activity, talent agents are restricted severely on a national basis by the various performers' unions and guilds. The organi- zations most involved here are the American Federation of Musicians (AFM), the American Federation of Television and Radio Artists (AFTRA), the American Guild of Variety Artists (AGVA), the American Guild of Musi-

144 CHAPTER NINE

cal Artists (AGMA), and the Screen Actors Guild (SAG). Artists' guilds and unions vary in what they require when they fran-

chise or license a talent agent. But the following requirements are typical of most agreements:

1- Maximum allowable commissions are stipulated. For ex- ample, AFTRA and SAG apply only a 10 percent ceiling on commissions applied to the artist's gross compensation. Artists are not permitted to pay both an agent and a man- ager more than an aggregate total of 10 percent.

The AFM allows a 20 percent commission on one-night gigs, 15 percent if the job runs two days, usually 10 per- cent on jobs running three days or longer Under certain circumstances the AFM will allow an additional 5 percent commission on engagements where the musician's wages equal or exceed twice the minimum union scale. Some- times the agent is exempt from these ceilings if only one other musical artist is under contract to the agent.

2- AFM, AFTRA and SAG generally franchise only those agents who agree to limit their professional activity to pro- curement of employment for artists. This constraint is designed to protect the artist from paying superfluous or excessive commissions. The disadvantage of this restric- tion is that some professionals are barred from acting as agents because they also participate in other entertainment industry enterprises such as management, production, pub- lishing, and recording.

3- Lengths of contracts are limited. AFTRA allows a maxi- mum term of three years. Under certain conditions, SAG limits its members to contracts of one year's duration.

Getting Started — Individuals wanting to get a career started in the tal- ent agency field often find it relatively easy. Sometimes, students can enter a talent agency as apprentices. Perhaps, after a short training peri- od, they may be put on as assistant agents. Artists' unions license all owners of each franchised agency, then permit sub-agents to work under an individual owner's license.

MANAGERS

The arts and entertainment industries engage a number of different kinds of managers. The most influential among them is the artist's personal manager. No facet of the business is so bereft of fully competent individu- als. The reason is simple: they are supposed to know everything and do everything. Personal managers are expected to perform tasks ranging from negotiating multimillion-dollar contracts to checking on the star's wardrobe.

AGENTS, MANAGERS AND ATTORNEYS 145

In the present chapter the discussion of personal managers is limited to how they are regulated by state statutes and artists' unions. In the fol- lowing chapter treatment is given, in some detail, to the manner in which management contracts are negotiated and how managers advance the careers of their clients.

REGULATION OF MANAGERS

Regulation of artist's personal managers is most strict in the state of Cali- fornia. Since many management contracts are negotiated there, an understanding of California's regulation of managers will be most useful.

Statutory Regulation — As pointed out earlier in this chapter, in Cali- fornia the only person allowed to procure employment for an artist is one who is licensed as a talent agent. While personal managers are sup- posed to be principally concerned with advising and counseling their clients about their careers, they often become involved, directly or indi- rectly, in procuring jobs for their clients. Procurement of employment is supposed to be the responsibility of talent agents, but personal managers can rarely separate themselves totally from the talent agent's activities.

The California statute does not permit a personal manager to become involved even indirectly in procuring employment for an artist. Rulings of the California Labor Commission have held that any such activity of this kind by an unlicensed person is against the law.

If the personal manager wants to stay within the law and remain in the management profession, a talent agent's license would have to be ob- tained. But then the individual would have to function under the constraints imposed by artists' unions on talent agents. If the manager decides against becoming a licensed talent agent, there are other options:

1 - The manager may voluntarily forego commissions on all employment procured by a talent agent. But California's Labor Commission has ruled this ploy is but a camouflage for what is really going on.

2- The manager may go into partnership with the artist. Both parties may find this unattractive, however, in that they are exposed to liability for their partner's actions.

3- The manager may "employ" the artist exclusively and sup- ply the artist's services to third parties. This might serve the manager's interests, but will seriously disadvantage the artist by imposing restrictions on the artist's activities that could go well beyond the terms normally encountered in a regular management agreement.

4- The personal manager might set up a corporation which would "deliver" the artist's services to third parties. Some lawyers believe it may offer the best insulation available from the constraints of talent agent licensing requirements.

146 CHAPTER NINE

Next to California, the state that hosts the greatest number of personal management contract negotiations is New York. That state offers a more congenial environment for these proceedings than California. New York avoids the issue of licensing personal managers, in that it defines theatri- cal agencies (booking agencies) as those which procure employment other than incidental to the manager-artist relationship. This would ap- pear to exclude personal managers, in that the procurement activity most of them engage in is incidental.

Union Regulation — Personal managers of good reputation could ob- tain a franchise from an artists' union, but they would then fall under regulations far more constricting than they could tolerate. The unions would impose a ceiling on their commissions, the term of their contracts with clients would be shorter, and they would probably be required by the franchise to engage in employment procurement activity full-time and not engage in other business activities concurrently. Few managers could function under these restrictions, in that it is the very nature of the busi- ness for them to be involved at any given time in a number of entertain- ment business activities, particularly publishing and recording.

The personal manager in California has one other option: to take out a union franchise, then ignore the union's restraints. This is a temptation, in that unions have rarely enforced these rules. But ignoring union rules can be risky; no one can predict when the union might start enforcing its fran- chising agreements. Some California lawyers have publicly stated, however, that they believe this union-ignoring ploy may still be the per- sonal manager's most attractive option to avoid the overriding power of the state's Labor Commission.

The end result of statutory and union constraints on personal man- agers is that, in California at least, many established and respectable personal managers opt against both state licensing and union franchis- ing,^ choosing instead to be guided by their own conception of ethical professional practices.

NATIONAL CONFERENCE OF PERSONAL MANAGERS

The recognized professional association in the field is the National Con- ference of Personal Managers. NCOPM has about 150 members in its New York City-based Eastern division, and about 100 in Los Angeles in its Western division. While NCOPM does not represent the majority of professionals in the field, it includes many of the most powerful ones. NCOPM has attempted to establish ethical standards of conduct for the

profession. Probably its greatest influence has been through NCOPM's promulgation of its "standard" contracts. An objective study of them could draw only one conclusion: they are heavily weighted in favor of the man-

1-Nelville L. Johnson and Daniel Webb Lang. "The Personal Manager in the California En- tertainment Industry," p. 1 75. Music Industry: Negotiations and the Law (Toronto 1 980: Board of Governors, York University).

AGENTS, MANAGERS AND ATTORNEYS 1 47

ager. There is even some legal speculation that they are so one-sided as to be ultimately unenforceable.^ NCOPM contracts, though not mentioning specific figures, recommend management commission fees of at least 15 percent.

For a different approach to the personal management agreement, see the following chapter.

ASSISTANTS TO MANAGEMENT

Few artists' managers attempt to travel regularly with their clients and assign such duties to a road manager. Road managers handle the trans- portation of people and equipment, arrange for meals and lodging, ensure

that adequate security is provided, hire tour accountants, supervise sound

reinforcement and lighting personnel, check box-office receipts and collect

performance income. Road managers who learn the business and know how to hustle often graduate to artist management jobs. Some have be- come producers.

Many young people break into "show business" by signing on as "road- ies," the label often used to describe persons hired to move and help set it up. While some roadies possess expertise in such areas as lighting or sound, the majority of them seem to learn what is expected of them on the job.

The people hired on as road crew members for lesser known acts usu- ally earn minimum salaries plus their travel expenses; Such acts have little difficulty locating an adequate supply of individuals willing to work for

low wages and high adventure. Today's top acts, though, tour with highly disciplined, well-paid crews.

Whether the individual is a recording artist or some other kind of pro- fessional in the field, when income reaches a respectable level, other support personnel will be required to advance that performer's career.

This is treated in the chapter on artist management.

ATTORNEYS

The first thing we do, let's l<ill all the lawyers. SHAKESPEARE, HENRY VI, Part 2

Act IV, Scene II

Entertainment business attorneys hold positions of great power in the in-

dustry. Part of this power has come about by default. In the earlier years of the business, most executives, agents and managers lacked the edu- cation and background to run big companies and handle the affairs of millionaire clients. Even today, executives lacking strong backgrounds in business management and business law keep their lawyers close at hand

2-Phalen G. Hurewitz. "Personal Management Agreement: Analysis and Commentary," p. 67, Representing Musical Artists: Legal, Business and Practical Aspects (USC Law Center 1975: Entertainment Law Institute).

148 CHAPTER NINE

to protect them against unwise decisions and flawed contracts. With the continuing expansion of existing entertainment companies, not to mention

ever more frequent corporate acquisitions and consolidations, the role of the entertainment attorney is more crucial today than ever before.

Law practices are often roughly divided into litigation services and transactional services. The litigators present their matters before a judge, while transactional attorneys spend much of their time negotiating con- tracts. Although there are firms which specialize in entertainment litigation,

most entertainment practice falls into the transactional category. The attor- neys must be keenly aware of current industry conditions so that they can negotiate favorable contracts for their clients.

As in the glamour fields of music, theatre and broadcasting, law schools are turning out at least twice as many graduates as seem to be needed. There are already about 726,000 lawyers in this country. In addi-

tion, there are some 121,000 students in law schools (of which over 40 percent are women). Despite the fact that unemployment (or underem- ployment) among graduates now emerging from law schools is estimated at about 30 percent, there is an actual shortage of lawyers fully qualified to practice in the entertainment field. Several dozen lawyers are well-in- formed on copyright, but some of these practitioners get their clients into trouble when they attempt to hold their own in negotiations with a publish- ing company or record label.

The most experienced lawyers in copyright are found in Washington, D.C., New York City and Beverly Hills. The best-qualified lawyers in gen- eral music business practice are found in the three recording centers in

the United States. In Canada, there is a handful of entertainment and sports industry lawyers practicing in Toronto and Montreal. Nationally, we probably have some 200 to 300 attorneys who limit their practice exclu- sively to music business matters, trademarks and patents (the prevailing

legal specialization).

DEFINITIONS — A lawyer is defined by Black^ as "a person learned in the law; as an attorney, counsel, or solicitor; a person licensed to prac-

tice law."

An attorney in fact (Black)^ is "a private attorney authorized by anoth- er to act in his place and stead, either for some particular purpose, as to do a particular act, or for the transaction of business in general, not of a legal character. This authority is conferred by an instrument in writing,

called a "letter of attorney," or more commonly a "power of attorney." An attorney at law (Black) is "an advocate, counsel, or official agent

employed in preparing, managing, and trying cases in the courts."^

3-Black's Law Dictionary, rev. 5th ed. (Chicago 1979: West Publishing Co.).

4-lbid.

5-ln Canada and the united Kingdom, appellations for legal practitioners differ from usage in the United States.

AGENTS, MANAGERS AND ATTORNEYS 149

RETAINING LEGAL COUNSEL

While lawyers expert in the entertainment industry are in short supply, it is

possible to locate a qualified legal counselor. How can a person go about this task? These questions might be asked:

1- What is the prospective attorney's reputation, and what is the source of your information? Is it objective? The fact

that a lawyer has passed the state bar examination and of- fers all the appearances of respectability is insufficient reason for complete trust. The law profession has its share

of charlatans. The great majority are trustworthy but check

out your prospective legal counsel with as many persons as you can.

2- Is the prospective lawyer sufficiently experienced in the

music field to look out for the musician's interests in pub- lishing, recording, performance rights and foreign rights?

3- Is the prospective lawyer well-informed in copyright?

Yet another way to check out lawyers is through the American Bar As- sociation. But asking the local ABA for referrals will rarely be helpful outside those cities where the recording industry flourishes.

In addition to negotiating contracts, an attorney often can provide tax

counseling, investment counseling, collect money, negotiate property set-

tlements and settle disputes. In the last mentioned role, lawyers generally

agree that the most skillful among them manage, whenever possible, to settle disputes without resorting to litigation.

As the role of the music attorney has significantly expanded in recent years, some clients retain attorneys primarily for their inside industry connections. It is now common for lawyers to perform tasks previously assigned only to managers, such as circulating demo tapes to labels; es- tablished lawyers are highly respected by A&R executives. Some law firms even have separate artist management departments. Before employ- ing an attorney, be sure to know precisely what services may be provided.

Payment Options — One of the universal complaints against lawyers is their cost. Fees are generally so high that many individuals in need of counsel have to forego the service. But when legal services are impera- tive, the client has a number of payment options.

The usual arrangement is paying an hourly fee. Before running up a bill, the prospective client should simply ask the lawyer, in an exploratory meeting, about the charges. If ongoing legal services are needed, the

client may place the lawyer on a monthly retainer. An alternative to these payment procedures is the contingent payment

plan, which is common in the entertainment industry. The client pays a relatively low hourly rate (often about one-half of the regular rate), provid-

ed the gross compensation payable to the lawyer in any calendar month is not less than a specified percentage of the client's gross earnings.

150 CHAPTER NINE

Some contingent fee arrangements call for no immediate monthly retainer fee, the lawyer's compensation being deferred until the client's income at- tains a prescribed level. In this kind of arrangement, the lawyer might, in addition, negotiate a percentage of the client's gross income, often set at 5 percent to 7.5 percent. Some lawyers charge as much as 15 percent.

Are contingent fee deals ethical? Yes, under certain conditions, accord- ing to the American Bar Association's Code of Professional Responsibility and opinions expressed by various state bar associations and state su- preme courts. But they are considered ethical, as a rule, only where a con- tingent fee arrangement is "to the advantage of the client" and where the client may otherwise have no way to get legal services or is unable to pay a fixed fee. When the client is a production company or film producer, the lawyer might "participate" — a term used in the industry to describe shar- ing in an investment in a project or a company. A "participating" attorney might charge no legal fee, but "take points" instead — receive a percent- age of the profits, if any. How much is a lawyer entitled to charge for services? State bar asso-

ciations publish guidelines for their members^. Professional ethics call for lawyers to follow them.

Legal Status — When an attorney accepts a client, one of the first tasks in many entertainment industry situations is to determine the client's legal status. In business and legal relationships, will the client be best served by being "self-employed," a partner, proprietor, independent con- tractor — or would interests be better served by forming a corporation or taking part in joint ventures? The client (the "client" may be a group of persons) will need the lawyer to explain the advantages and disadvan- tages of these options. And the music industry moves so rapidly, the legal status that worked well at the outset will almost certainly change with changing conditions.

Contract negotiations — As pointed out, nearly all significant events in the entertainment industry involve the negotiation of contracts. And that is the business of lawyers. The number and kinds of contracts commonly used in the industry is extensive. Typical agreements:

Composer with a publisher, coauthor

Performer with employer, agent, promoter, producer, con- tractor, performing group, lawyer, broadcaster, mer- chandiser, advertising agency, record company publisher

6-The California Bar's Rules of Professional Conduct are typical: "A member of the State Bar shall not enter into an agreement for, charge or collect an illegal or unconscionable fee

. . . when it is so exorbitant and wholly disproportionate to the service as to shock the con- science of lawyers of ordinary prudence practicing in the same community.

AGENTS, MANAGERS AND ATTORNEYS 1 51

Producer with a record company, performer, recording studio, production company, publisher, distributor, merchan-

diser, lawyer

Talent Agent with a performer, promoter, club owner, pro- ducer, production company, record company, film company,

lawyer

Artist's Personal Manager with an artist, record company, broadcaster, accountant, auditor, road manager

The Adversary Relationship — Individuals entering into contract ne- gotiations are, by definition, adversaries. They may be the best of friends. But once they start negotiating a legal agreement, the parties should

seek every legitimate advantage available. Contract negotiations need

not be unfriendly encounters, but the parties are advised by their attor-

neys, as a rule, to go for whatever they can rightly get.

Each individual entering into contract negotiations should have separate legal counsel. When one lawyer attempts to represent both parties, there may be difficulty serving them impartially. The American Bar Association's Code of Professional Responsibility and most state bar as- sociations' codes of ethics assert that lawyers should not represent

adversaries and should urge prospective clients to retain their own attor- neys.

Independent legal counsel is particularly important in situations where

collateral contracts are entered into simultaneously, e.g., an artist-manager

contract and an artist-manager-publisher deal. If one of the parties to these

collateral contracts happens to be a lawyer (very common in the industry), the potential exposures to conflicts of interest can be ovenwhelming. Dis-

putes can rise out of collateral contracts. When they do, courts have some- times found that a lawyer had taken advantage of the client's ignorance

and subsequently determined that one or more of the contracts was unen- forceable.

In light of this exposure of lawyers to potential conflicts of interest, they

sometimes prefer to loan one of the parties money to retain independent counsel. In such a circumstance, the lawyer would carefully document such a transaction, identifying the purpose for which the loan was made.

Extralegal Services — Clients frequently ask their attorneys to rec- ommend agents and managers. In that the good ones are in short supply, the attorney is usually hard-pressed to name qualified people. The client then often asks the lawyer to manage the career as well as the business. Lawyers frequently agree to do this, often protesting that the arrangement

is to be only temporary. But then an interesting thing often occurs: the

lawyer-manager starts making more money in that capacity than in just practicing law. This outcome is frequent when a lawyer agrees to admin- ister the client's publishing company A lawyer attempting to provide a client two different kinds of professional service is exposed to conflicts of

interest. Among the sharpest critics of these practices have been lawyers themselves.

AGENTS, MANAGERS AND ATTORNEYS 153

Bar associations state that lawyers shall not enter into a business

transaction with a client or knowingly acquire a financial interest in an

artist's enterprise potentially adverse to the client unless the transaction

... is fair and reasonable to the client and fully disclosed and transmitted

in writing to the client in a manner and terms which should have reason- ably been understood by the client . . . and the client Is given reasonable

opportunity to seek advice of independent counsel of the client's choice

on the transaction . . and the client consents in writing thereto/

If a lawyer provides extralegal services and enters into business or in-

vestment deals with a client, legal ethics demand that the responsibility assumed is always as a lawyer. A lawyer cannot ethically switch hats, cannot ethically operate a law practice and a publishing company or man- agement company as nominally distinct businesses, cannot ethically engage in extralegal activities to feed the law practice. If the lawyer offers extralegal services, ethics of the legal profession demand that all conduct must always be in accord with the ethical and legal constraints imposed on a licensed attorney-at-law.

Termination — The law provides that a client can discharge a lawyer at any time.^ But some courts have held that the discharge of a lawyer does not necessarily discharge a former client's liability. For example, dis- missing an attorney where a contingent fee arrangement is in place can become sticky for the client. In this kind of situation, the former client will probably have to continue paying the attorney, after disengagement, on earnings flowing from contracts negotiated before the parties went sepa- rate ways.

Whether or not a contingent fee is involved, a client who discharges a lawyer should send written notice of termination. Where the artist is re- taining a new attorney, the former attorney should be asked, in the notice of termination, to fonward all material in the client's file to the new lawyer. Bar associations view this kind of procedure as a matter of professional

courtesy.

BUSINESS MANAGEMENT TECHNIQUES

Authoritative studies have shown time and time again that some 90 per- cent of business failures result from poor management. Individuals planning careers in the music business as agents, managers, attorneys, entrepreneurs, etc., will probably increase their chances of success by studying business management techniques.

Dozens of books, hundreds of college courses treat the subject. While they differ in approach, it is interesting to observe that the most respected writers and teachers on the subject generally agree with this summary of what good management entails: Planning, Organizing, Staffing, Leading and Controlling.

7-Op. cit. "Ethical Constraints on Contingent Fee Arrangements," p. 15.

8-Code of Civil Procedure, Section 284.

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Management, too, is an art. MOZART'S FATHER (AND MANAGER)

In the preceding chapter, personal management was discussed only from the standpoint of regulation by state statutes and artists' unions. In this chap-

ter, financial relationships and the manager's functions in advancing the artist's^ career will be examined. This part of our study closes with an exami-

nation of the way the manager and client might negotiate an equitable personal management contract.

How important is a good manager? Ask a record company. Most labels today won't even sign an artist who lacks good management. They believe it just isn't worth it to invest their time and money in an artist whose career, even daily activities, are not thoughtfully planned. Record compa- nies are no longer prepared to tolerate irresponsible behavior of stars,

uncoordinated concert tours, inept promotional support, so often areas of

concern with artists lacking competent management. Some labels will help an artist locate a good manager. Undirected talent, unfocused careers are commonplace in the music business. These performers may get lucky and land on the charts for a few weeks. But they quickly fade into oblivion, like thousands before them who lacked firm, knowledgeable management.

At what point do artists need a manager? About the time they discover they can earn more than union scale; suddenly they are in need of some- one to handle their business affairs and develop their careers. This can be a difficult time, because they soon realize that it is often nearly impos-

1-ln this chapter, references to artists and stars is meant to include, not only performers, but other professionals who, from time to time, engage personal managers, e.g., writers, pro- ducers, directors, choreographers, etc.

156 CHAPTER TEN

sible to locate anyone qualified to do this. The reason for the acute short- age of fully qualified people is that artists' personal managers are supposed to know it all — both the artistic-creative aspects and business management.

DISCOVERING EACH OTHER

In searching for a competent personal manager, look for the person who —

- believes in the talent of the artist

- is well organized, systematic

- is straightfonvard and honest, and has a reputation to prove it

- is an effective communicator, writes well and is an articulate, persuasive oral communicator

- won't try to fake expertise, if lacking competence in certain fields; will hire outside experts when needed

- has good industry contacts; if not, is busy developing them

- shares the artist's long-term vision and career goals

If a personal manager with these competencies really wants to become a successful personal manager, it is possible. And professionals with this much on the ball will no doubt earn more money over the years than many of the artists they represent.

Successful personal managers have one other kind of expertise: they know how to spot a potential star. They cannot afford to invest their time and money in anyone who lacks what the manager views as the potential talent to reach the top. And until a manager's clients develop strong earn- ings, there won't be many dollars available to produce commissionable income — the manager's livelihood.

The Personal Relationship — Experienced managers and artists all agree on one issue: the relationship depends on strong personal ties of friendship and trust. If they are lacking, the relationship won't last, because the parties must work intimately together on both the personal

and professional levels. When a manager and artist are considering join- ing forces, they might well enter into a short term "trial" agreement and

simply "live together" for several months and try to find out if they can

work comfortably and effectively together. During this trial period, they

should search in each other for everything from horse sense to a capacity

to dream. Both may be needed. If the manager achieves the objectives outlined in the trial agreement, the contract is generally extended to full

term. A full term usually consists of five to seven years. A word of caution to the artist: be sure that the management agreement is non-transferable, i.e., the contract cannot be bought or sold.

ARTIST MANAGEMENT 157

THE FINANCIAL RELATIONSHIP

Established personal managers usually insist the artist agree in writing

that the manager be authorized to handle all the artist's money — what comes in and what goes out. Such a manager would relent on this impor- tant issue only if the responsibility for receipts and disbursements was handled by a business manager selected by the parties. If an artist is fearful of granting the manager complete control over the money, the artist should not sign with that person, for this kind of contract is based on

complete mutual trust.

Yet, many artists of stature insist the money be entirely handled by an independent third party — usually a business management firm. It is often a preferable arrangement where an act generates large sums of money.

ACCOUNTING

Whatever arrangements the parties agree upon for business manage- ment, the personal manager's first responsibility in this regard is setting

up the financial accounting. The astute personal manager will call in the accountants even in the formative stages of contract negotiations to

make sure the parties agree on how they are going to control "the count" and report the taxes. The difficulty here is that, even in the entertainment capitals of the world, there are few accounting firms fully knowledgeable

in these specialized areas of entertainment and communications indus-

tries. For example, a major recording star requires a financial advisor who understands international tax treaties and the exchange of foreign curren-

cies and fluctuating money markets. Lacking specialized knowledge, an act of international stature can have little confidence that the accountants

are sufficiently protective of the worldwide movement of royalties. While the personal manager should discover and recruit a qualified

accountant, the selection of that individual or firm should be approved by

the artist. A major act will also need auditors to periodically examine the books, not only those of the manager, but of the publisher and record com- pany. Contracts with these parties must specify under what conditions audits will be acceptable and precisely who will be liable for the auditing expense.^

The artist's lawyer will recommend that audits requested by the artist must be undertaken by an individual or firm independent from the man- agement firm.

CONTROLLING EXPENSE

It is not generally understood that a large percentage of working artists

incur expenses larger than their incomes. This may be true even of some of the artists the public thinks of as rich and famous. Since the "success-

2-When a major act audits a record company, the expense can run from $30,000 to as high as $100,000.

158 CHAPTER TEN

ful" artist will have to pay out 15 percent to 25 percent of the gross to a manager, another 10 percent or so to a booking agency, perhaps addition-

al fees to a business manager or accountant, the best hope of realizing a profit on what little is left is to exert stringent control over all other expens- es. That responsibility is supposed to devolve upon the manager. But the manager may be in the habit of spending too freely; it's someone else's money. The artist's attorney should impose spending constraints on the manager when the management contract is negotiated.^

The artist is often the one throwing money around and contributing more than the manager to unacceptable expense. If the artist holds the view that those royalties are going to keep rolling in forever, a seasoned manager might persuade the artist to accept a weekly allowance. Show business stories abound on how former stars went through millions only to end up financially destitute. An artist submitting to a modest weekly expense account would increase the chances of surviving the late lean years when fame and income have faded.

Loans, Investments — The entertainment industry is still overpopulated by artists and managers who have only a dim view of the realities of the rational business world. Despite the increasing numbers of persons work- ing in the field who demonstrate occasional periods of rationality, show business types, artists and managers alike, involve themselves in unse- cured loans, huge advances and wild investment schemes. These shenan- igans occur, however, among individual practitioners. The bankers don't participate, nor do the well-managed publishing and record companies.

But many personal managers find it necessary to loan an act money to keep it alive at least in its developing stage. The contract should state, however, that the manager is under no obligation to loan money or advance money to the artist, no matter how serious the crisis may be.

MANAGER'S COMMISSION

It is standard practice in the industry for personal managers to earn com- pensation for their services through commissions on the artist's gross

income. The equity of this practice is open to question, but managers who know how the business has operated in the past will rarely accept any oth- er arrangement. Their argument is a simple one — and persuasive: the manager may be the person principally responsible for the rise and fall of the clients' income. The manager invests time (and often personal funds) in getting a career off the ground, and is entitled to participate in the artist's

prosperity, should it ever come. The informed artist's point of view on this issue is set forth in the draft

contract appearing later in this chapter.

3-Suppliers often try to overcharge entertainment business personalities, apparently

assuming that such customers are not concerned enough to critically examine their bills.

ARTIST MANAGEMENT 159

Going Rates — In recent years, certain "going rates" have become rec- ognized in the industry for personal managers' commissions. They range

from a low of 1 percent to a high of 25 percent. Here are some of the factors influencing these rates:

1- The stature and track record of the manager. A manager with powerful contacts in the industry is worth 25 percent to an artist. If the manager has little or no track record, a much lower commission is likely.

2- The income of the artist. If the artist has a high income, the

manager will come out well even at a relatively low com- mission rate.

3- The extent of the manager's services. For example, if the

manager farms out all business management, accounting services, as well as promotion services, top commission

rates may not have been earned.

4- The sophistication of the parties. In most cases, the man- ager is experienced and knowledgeable. Most artists, at least early in their careers, are astonishingly naive. When the eager young artist hears "Just sign here, sweetheart. I'm going to make you a big star!" it may sound believable. Sometimes those TV late show movie scripts are not too far off the mark.

An Argument For Reasonableness — A powerful manager can often get a very high commission even from an act that may be struggling to pay its rent. But if that artist later develops high income, it may be tempt- ing to renegotiate those commissions and reduce them to a reasonable level. More likely, the successful artist will be ready to dump the former manager and sign with a less expensive one. The manager who was greedy in the earlier relationship may well have lost an opportunity to come into really good earnings. Managers are well-advised to keep their demands reasonable, because most artists are quick to discontinue asso- ciation with support personnel, particularly personal managers, who fail to treat them fairly. Wise managers often volunteer to reduce or eliminate commissions on specific projects or concert dates. Such gestures go a long way in establishing long term mutual trust and goodwill between manager and artist.

Commission Base — Personal manager's commissions are usually based on the artist's gross income from all activity relating to the enter- tainment industry. In this context, "income" includes, not only wages, but

whatever is of value that comes to the artist from the entertainment indus- try, directly or indirectly, including such sources as royalties, an interest in,

or ownership of, a production company, TV package, film, publishing or recording company, stock in a corporation, interest in a partnership, bonuses, even gifts.

160 CHAPTER TEN

The commission base can be more important than the commis- sion level. If the artist has a competent, aggressive attorney, and if the personal manager lacks the clout of the artist, the commission base can sometimes be limited to what can be called the adjusted gross income. An artist negotiating from strength should be able to convince the manag- er to accept a commission based on the artist's actual income, not on all the money simply passing through the accounts to support other persons and other activities, such as record and video production and tour support from the artist's record company. The pros and cons of this fundamental issue are set forth in the draft contract later in this chapter.

The Money Flow — The artist and manager may work together suc- cessfully for many years. But one day, the relationship will end. As difficult as it may be, they should anticipate the problems of disengagement. Like marriage, an artist-manager partnership is easier to enter into than to leave. When the artist and manager get divorced, they will suffer, not only the wrenching experience of ending a close personal relationship, they

will have to negotiate some kind of "property settlement." While a divorc- ing couple can eventually agree on "who gets the house, who gets the car," etc., the artist and manager have a much more complicated set of financial problems.

The essential difficulty here is that an established act has money flow- ing in from contracts the manager negotiated, and when the couple disengage (for whatever reason) that money continues to flow. Should the departing manager continue to receive commissions therefrom? Some lawyers make the argument that, unless negotiated otherwise, such commissions continue into perpetuity.

The hchest source of these funds usually comes from publishing and recording contracts probably worked out during the period of service of the departing manager. Nearly all personal management contracts state the manager is entitled to full commissions on this money, without diminu- tion, for the full term of those contracts. Part of the problem this creates

for the artist is encountered during the search for new management. If the artist's major source of income is already tapped for years hence by the

old manager, what has a manager to gain by signing on with an act so encumbered with prior commitments?

A Possible Compromise — If it is assumed the parties possess about equal bargaining strength, one of the simplest compromises avail- able is an across-the-board de-escalation of commissions over a year or

two following termination of the contract. Figure 10.1 shows how this might work: the old manager continues to enjoy 100 percent of commis- sions for the first six months following disengagement from the artist. Then follows a 50 percent reduction for the next six months. At the start of the second year following disengagement, the artist pays the former

manager only 25 percent of what would have otherwise been earned. After six months at this rate, all commissions to the former manager would end.

If the manager is negotiating from greater strength than the artist, the same de-escalation formula might still be used, but the percentages could be set higher and stretched out over a longer time.

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162 CHAPTER TEN

One clear advantage to this de-escalation plan the artist will discover when scouting for a new manager. If the new manager understands how these games are played, one of the first questions put to the artist is, "Are you tied up with your former manager for ongoing commissions?" The artist, with attorney nearby, can respond simply, "No more encumbrance here than usual; my former manager gets commissions on a diminishing scale for 18 months; then I'm totally unencumbered. As my old manager's commissions de-escalate, your commissions rise. Fair enough?"

The accompanying graphic also shows that the ne\N manager earns 100 percent commissions on all new deals set up for the artist. One final advantage of a de-escalation formula: if the second manager

accepts the plan suggested here, the parties should have little difficulty

negotiating a similar de-escalation plan for the second manager as well — when even the neiv couple finds it necessary to disengage.

PRODUCING THE ACT

Once the artist and manager have negotiated their agreement, one of the first tasks they face is packaging the act — creating the presentation of the artist to the public. As we all know, in a consumer-oriented economy the packaging of a commodity is often more important than what is inside.

Many artists of modest gifts seem to get by well in the marketplace large- ly because they are presented so attractively.

If an artist is already established with a defined public image and per-

sonal style, the new manager may not want to materially alter a presentation that has been working well. But when a manager signs on a relatively new act, both parties have a lot of work to do. Unless the man- ager is fully qualified, the best help the artist can afford must be engaged.

An objective appraisal must be made at the outset on these basic ques- tions: 1) Just what kind of performer or act do we have? 2) To what audience does the artist appeal? 3) Can that audience be expanded? 4) What must we do for the artist to fully exploit all the potential?

A useful tool for objective examination of an artist's performing strengths and weaknesses is videotape. The artist and coaches can use this medi-

um to guide their work and measure progress toward the creation of truly polished performances.

In addition to engaging voice coaches, choreographers, wardrobe con-

sultants, etc., the manager who takes the long view of the client's career will probably want to provide dramatic training, too. Nearly all musical per-

formers who reach national prominence eventually receive opportunities to play dramatic roles.

Some managers provide important assistance to their clients when they have the ability to identify good musical material. Few artists — including those who write much of their own — ever seem to have a suf- ficient supply of high-quality songs. The manager may have to take time listening to demos and helping search out usable songs. The act may also need "special material," songs and patter and routines created exclu-

sively for that artist. Practically all stars booked into Las Vegas consider

special material essential to a big-time presentation.

Coordinating The Elements — If the act has been fully prepared, the

ARTIST MANAGEMENT 163

next move is to place it onstage, under flattering lighting, in an appropri- ate setting. Now, a theatrical producer is needed; if the manager can't handle this task someone should be engaged who can. Major acts often tour with their own stage directors who supervise lighting, staging and sound.

If cast in a touring Broadway show, the artist will be part of a company that travels, not only with its own sets, but its own lights, control board, audio system^ even flooring.

Programming — Experienced managers representing powerful acts control the selection of opening and supporting acts, making sure that the

headliner comes on at the best possible time and under the most advan- tageous circumstances. From the early days of vaudeville, headliners insisted on warm-up acts to preheat the audience. This sequencing of

acts is called programming and the manager must control it when possi- ble. If the manager's client is to be introduced by an M.C. or some other person, the manager must make sure the introducer says the right things and says them briefly.

ADVANCING THE CAREER The manager's main responsibility is advancing the career of the artist, whose reputation — and income — depend upon how effectively this is done. A first-rate manager will design and execute a complete campaign for each artist, starting with people, with personalities, not organizations.

Top managers develop extensive lists of key personnel in the industry.

Most of these potential contacts will never be used. But when a manager must move quickly — which is most of the time — an up-to-date list of power brokers will prove essential.

Since the manager probably operates out of, or regularly travels to, one of the recording and publishing centers, it will become apparent who the decision-makers are in the most active companies, as well as the impor-

tant agents, promoters and industry lawyers. The music industry is a giant, but only a few hundred individuals have positions of real power. Many of this group of decision-makers know each other on a first-name basis. They rub shoulders together at industry conferences; they exchange informa-

tion; they return each other's telephone calls; they trade favors. They even exchange jobs. When a manager is negotiating with one record company, the competing record companies for that contract have probably heard,

privately, about what each side is offering. So the experienced manager discovers there are few secrets in the business at the top level. This inner

circle of powerful people know who the con artists are, who will keep an agreement, who can deliver. How does a new manager crack this inner circle? By demonstrating

credibility and competence. The artist's manager must also develop good contacts throughout the

country where clients will perform — the top disc jockeys in major cities, the important promoters and agents. Given time, a list can be developed

of key personnel in branch offices of record labels with whom clients are under contract.

164 CHAPTER TEN

It should be noted that, in the classical field, careers are often advanced most effectively by personal managers who also function as booking agents. Among the best known firms offering this kind of man- agement and booking service are Columbia Artists Management Inc. and ICM Artists, Ltd.

CARE AND FEEDING OF THE MEDIA %

In executing a campaign to exploit an artist, the manager must develop contacts (and friends) with the purveyors of mass communications — particularly the press and broadcast media. This would include music video stations (e.g., MTV), and networks, radio stations, wire service reporters, feature writers, syndicated columnists — and the "music press" — the writers and publications focusing on personalities in the music and entertainment fields. They are not difficult to contact, in that they are look- ing to artists, managers and publicists to feed them information.

Materials — When contact is made, the manager must feed these sources with appropriate material. This is usually done with press kits or "promo packs." They are expensive to assemble but essential to a public- ity campaign. Depending on budget and circumstances, promo packets will often contain canned press releases, 8 x 1 0-inch photographs ("glossies"

suitable for reproduction), perhaps 8 x 10-inch four-color photographs of

the artist in performance; sample records and tapes, including videotapes;

perhaps additional gift items and novelties. If a record company is involved, a major promotion will often include a material object (a novelty

of some kind) that ties in with a new record release. The manager or the artist's publicist will help in getting these kits and trinkets to the press, disc jockeys, radio program directors, perhaps to the employees of record distributors and retail outlets.

Interviews — Managers have learned one of the most economical techniques to generate strong publicity for a touring artist is to set up tele-

phone interviews in advance of the artist's arrival. Telephone interviews

can be used in large cities when an artist lacks time to cover all the major broadcasting stations.

As the artist travels across the country, the label's publicity staff will set up news conferences. Most reporters and camera people are dispatched to these events by their assignment editors; they will appear where they

are assigned to cover a story. But free-lancers and stringers can often be

persuaded to cover a press conference when free food and drink are announced as available following the press conference. When the budget allows, some press conferences are planned as press parties. Enterpris- ing publicists can often induce the press to show up for these happy hours even when the artist is relatively unknown.

In addition to news conferences, a manager or publicist can arrange for exclusive interviews. If a syndicated columnist or network TV host can be lined up, one interview or guest shot of this kind can yield more good PR than a hundred open press conferences.

ARTIST MANAGEMENT 165

Artists' managers rarely attempt to handle all the PR for their clients and often retain a publicity firm to assist. Services of these companies

can run from $100-a-week retainers to perhaps $6000 a month, depend- ing on the services required and the track record of the supplier. Competition among publicists is keen. In their effort to produce maximum attention, professional "flacks" will sometimes resort to outrageous public-

ity schemes. The media and the public may actually enjoy a crazy hype for a while, dllt it is the personal manager's responsibility to rein in PR types when they try too often, to substitute promotion gimmicks for cam- paigns based on something approximating reality.

Billing — From the early days of the entertainment industry, it has been standard practice for managers and promoters to control what pro-

fessionals call billing. Billing has to do with the size, emphasis and position of artists' names in print ads and screen credits. If an artist ranks as a "star," the name might be set above the name of the production — in large, bold type.'* If the artist is a "co-star," the name will appear below the name of the production, and in type smaller than that used for the star. If the artist is a "featured" player, the billing will be much less prominent and relegated to an inferior position in the layout.

As the manager's client gains prestige, attention must be given to the possibilities of negotiating for increasingly prominent billing. An astute manager will occasionally accept a lower fee for the client if the billing is strong.^

CONTROLLING PERFORMANCES

One of the personal manager's most useful services is controlling the client's performance opportunities. Once a career gains momentum, it is not unusual for the artist to receive more offers to perform than can be accepted. Both the agent and the manager are tempted to maximize income and accept every gig in sight. But it is the manager's responsibili- ty to limit the frequency of performances to avoid exhausting the artist's

energies and to avoid overexposure of the act. The manager will be par- ticularly concerned with travel times between engagements.

As important as determining the frequency of performances, is the selection of the kinds of engagement offers. The sharp manager under- stands the artist's unique identity and the nature of the artist's audience. Insensitive talent agents and promoters will offer the manager job oppor-

4-Similar billings are used for producers, writers and directors, etc. In complex productions such as theatrical motion pictures, these participants may all joust for good billing, further complicated by the rules of competing unions. Some participants are so prestigious (or have invested so much money) that they receive star billing — their names positioned above the title of the production.

5-Contracts often specify billings in terms of relative percentages. For example, it might be required that an artist's name never be printed less than 50 percent as large as the produc- tion title — or that an artist's musical director's name appear 25 percent as large as the artist's name. These kinds of billings can be readily observed on Las Vegas hotel billboards.

166 CHAPTER TEN

tunities from time to time that are totally unsuitable. The money might appear attractive, but placing an artist on a bill where the audience might have different tastes can do more harm than good for a career. In consid- ering potential concert dates for a rock performer, the manager will consider the importance of the market, e.g., whether local radio stations are playing the client's music, record sales in that market, the artist's

product presence in local record refail oijltets, etc. In addition to controlling the frequency ancj^kind of job d^-'ers to accept,

the manager must determine when the client is "ready." fy example, if the performer is primarily a singer and the job offer also requires acting, the manager, in consultation with the client, should try to determine before they sign, whether the artist can handle the role, whether the script is "right" and whether the production will be of respectable quality.

LANDING A RECORDING CONTRACT

Most young performers today find it impossible to graduate to the big time without a record contract. This has not always been true. In earlier decades, a performer might acquire a national following through such media as network radio, television, the movies, Broadway, even vaudeville in the old days. Most of our older stars gained fame and wealth through this kind of exposure. Today, they sell few records, but might get

$100,000 a week as Las Vegas headliners. The music business today revolves around recordings. A new act will

find it difficult to get jobs, for example, in broadcasting or film before mak- ing it on records. Personal managers of even limited experience understand this, and consider their most important responsibility is to somehow land record contracts for their clients. Many performers engage a manager primarily for tfiis purpose. Occasionally, the artist's attorney will recommend the engaging of the personal manager only if thie manag- er can, indeed, secure a record deal. No record contract, no personal management agreement. To most aspiring young performers, a personal manager has little to offer without delivering at this level.

Even if we assume the artist in question has great talent, the manager will usually have a difficult task gaining the serious attention of an estab- lished record company. The manager must somehow persuade a record company to invest very big money for production and promotion of a debut album of this unknown artist — just to get the recording career started.

Prospects for the manager's success in landing a record contract for a client will probably be determined by the answers to these kinds of questions:

• How strong are the manager's contacts in the industry?

• How strong is the manager's team (lawyer, accountant, support staff, etc.)

• How strong, how unique is the artist's talent? Is there star potential there?

•

ARTIST MANAGEMENT 167

Is the manager's approach timely? Is the label signing any-

one at this time? Is the record company undersupplied or oversupplied with artists who perform somewhat in the vein of the manager's client?

Does the record company believe in the manager? The label may love the artist but lack confidence in the manag- er's ability to deliver. ^

The Process — Let us assume that the manager is fully qualified and is respected in the industry, and rep/esents an artist who has star poten- tial. Here is the sequence of events that might yield the securing of a

record contract: [? ' >.

1- The manager makes a frontal attack on the label itself, almost always starting with the A&R department. If unable to gain the attention of the top decision-makers, the manager works on the next level down. Record companies are populated with employees trying to make points with the boss. If a label employee, in whatever position, can participate in

the company's-discovery of a new star, that employee believes it will be a personal career boost. Among the lower-level contacts the manager might pursue are promotion people and field personnel for the label. The alert ones are on the lookrfit for new talent.

2- The manager will try to work with the client's publisher. If the client doesn't have a publishing deal, the manager will aggressively shop for one. Major pubHshing executives have excellent contacts with label exec-

utives and independent producers.

3- The manager fails to reach the attention of record companies and focuses on independent produces and production companies. The best of these have direct contact wiAecord labels. The manager may deter- mine an offer from a record proouction company looks more attractive than signing directly with a label; the production company may be able to present its services and the artist's services as a package to some record company.

4- The manager arranges for third parties to catch the artist in perfor- mance — or watch a videotape demo. If some respected individual in the industry tells a friend (who tells a friend...) about a great new talent, the word may get back to a decision-maker at some record company. Word of mouth may turn out to be as effective as knocking on doors.

The Result — If the manager should fail to get the client a record con- tract after two or three years' effort, the artist may need to search for a place in some other sector of the entertainment industry. But let's assume the manager succeeds in persuading a record company to negotiate a contract. What is a "good" contract? How much dare be asked? Is the label excited and ready to get behind the new act with strong promotion and lots of money?

168 CHAPTER TEN

Let's assume the next step: the contract is signed; everyone is happy. At the moment, that is. Now the manager must badger the label to pro- mote the records. If the effort is halfhearted, the artist's records may never gain airplay or reach the retailers. At this moment, the manager's greatest service will be prodding the label to perform on the contract, to deliver what was agreed. Efforts in this direction can never stop.

Let's make one more assumption in this scenario: the record label ful- fills its promises of promotion and the records sell veiV well. Now the artist has so much money rolling in, it seerfis time to say to the manager, "My friends tell me your commission is out of line. I want to renegotiate our contract. Your new rate is now 10 percent, not 25 percent. If that is unacceptable, I will sign with this other management company that will probably do more for me — and for a lower commission than I've been paying you." This kind of scenario is not uncommon. Personal managers may struggle for years establishing an act. Their biggest problem may turn out to be success. When their clients start coming into really big money, they may defect to a manager who had nothing to do with build- ing the act to high income status. Why do otherwise bright people go into the personal management

field? Probably because the really competent managers continue to be in high demand, and they often seem able to develop sufficient loyalty among their clients to be in on the receiving end when careers prosper. These kinds of managers can easily become millionaires.

NEGOTIATING FOR APPEARANCES -^^

Once a manager has developed a successful artist, other talent buyers fall into line, seeking to cash in on the performer's growing stature. Gen- uinely successful performing careers today often follow this sequence of events:

1- The artist gains initial recognition as a live performer in one geo- graphic area, then signs with a personal manager.

2- Through competence, contacts, good luck and timing, the man- ager lands the client a record contract.

3- The artist's records gain airplay and the label helps undent/rite a concert tour. Other live performances ensue.

4- The successful recording artist and concert performer attracts the attention of TV network producers. They engage the artist.

5- The artist, now successful on records and television, may attract the interest of film producers and Broadway producers. The manager has a major star and high income. The big task now is to try to figure out how to keep all these good things happening.

ARTIST MANAGEMENT 169

DEVELOPING PERIPHERAL INCOME

Major stars receive additional opportunities to increase their incomes

from such sources as product endorsements, broadcast commercials and

merchandising deals. These offers will normally be received by the artist's

manager, who needs to know how to handle them to maximum advan- tage.

The field of product and service "merchandising" is bigger than most

people realize. For example, the NFL teams gross more from licensing the sale of football team souvenirs than they take in at the stadium box

office. In the music segment of the entertainment industry, major record-

ing stars may receive more income from merchandising deals of this kind than they do from record royalties.

Each music souvenir merchandiser is licensed by the artist's manager

to use the artist's name and image, then pays anywhere from three per- cent to 25 percent royalty (at retail) on each item sold. The manager may also receive invitations for clients to appear on broadcast commercials or

endorse products and services. The manager, in consultation with the client, must determine whether these kinds of offers might help or hurt the

artist's career.

In summary, it becomes evident that the personal manager is the key professional in the entertainment industry, often wielding more power and influence than any one person should be expected (or entitled) to handle.

All that is asked of the manager is omniscience.

THE PERSONAL MANAGEMENT TEAM

Earlier in this chapter, it was recommended that artists and managers delay signing a contract to join forces until they had gone through some kind of "trial marriage" — to discover, if possible, whether they could work closely together in an intimate, long-term relationship. If we assume the parties have done this and remain convinced they can develop a winning

team, they should both engage their own independent legal counselors and proceed to negotiate a contract.

If their attorneys are well-informed and aggressive, the artist and man- ager should negotiate for all they can get for themselves. Normal procedure is for one side to express demands — from a position, quite naturally, of maximum self-interest. The second party then counters with a position — similarly biased in that party's favor. At this juncture, the par- ties will need to negotiate compromises.

The draft contract that follows assumes the parties start their negotia- tions in the sequence just described. Where issues are particularly controversial, we shall articulate the opening position of each party. Then follows an articulation of an equity position — what might be a fair resolu- tion and balance of interests if the parties had about equal bargaining strength.

The equity positions expressed here are a consensus of opinion pre- vailing among a number of distinguished entertainment industry attorneys.

170 CHAPTER TEN

PERSONAL MANAGEMENT AGREEMENT

This draft agreement is for study purposes only. Its language should not nec- essarily be used verbatim in an actual contract. Each party involved in negotiations is urged to retain independent legal counsel to draft the actual

language of a contract.

The body of the draft contract uses the pronouns he and his rather than he/she and his/hers. This usage is for simplicity and is meant to include both men and women.

AGREEMENT made on (date) by and between , the Artist and , the Personal Manager (hereinafter called Manager).

WITNESSETH

Whereas the Artist wishes to obtain advice and direction in the advance- ment of his (her) professional career, and Whereas the Manager, by reason of his (her) knowledge and experience, is qualified to render such advice and direction, NOW THEREFORE, in consideration of the mutual promises set forth here, the Artist and Manager do agree: ^

DEJb'JJNlTiONS

Artist — The first party to this agreement who appoints the second party, the Personal Manager. The Artist may be one individual or more comprising the professional performing group. If more than one individ- ual signs this agreement as an Artist member of the performing group, then this Agreement shall be binding upon all such persons, individually and severally, and all of the representations, warranties, agreements and obligations contained herein shall be deemed to be individual, joint and several.^

This agreement covers aJl of the professional talents, activities and services of the Artist in all sectors and media of the arts and entertain- ment industry, as an instrumentalist, singer, actor, entertainer, composer, writer, editor, arranger, orchestrator, publisher, executive, producer, manager, audio technician, promoter and packager.

Personal Manager — is used here to describe the individual who advises and counsels and directs the Artist's career and manages the Artist's business affairs.

6-The Manager may require here that the members of the performing group are individually and severally liable for any claims against any other member of the group or the Manager.

ARTIST MANAGEMENT 171

Third Party — is any individual, company or corporation with whom the Artist and/or Manager do business relating to the agreement, e.g., talent agent, producer, publisher, record company, production company, promoter, business manager, accountant, auditor, imion or guild, broad- caster, merchant, advertiser.

Entertainment industry — is used here, not only in its generally understood meaning, but also includes all related aspects of literary activity, publishing, broadcasting, filming, telecommimications, promo- tion, merchandising, advertising, through all media of commimication now known or later developed, of the arts and entertauiment industry.

1.0 APPOINTMENT

Artist's Position — It is in the Artist's interest to place strong language in the agreement setting forth precisely what the personal manager is obligated to do. To offer "advice and counsel" is ambiguous. The Artist will seek a specific list of services to be rendered and require the Man- ager to use his "best efforts" to meet his responsibilities.

Manager's Position — The Manager will seek only a general statement regarding his appointment. He may not accept the language committing him to his "best efforts, "in that his com- missions under such language might not be automatic.''' He may prefer the expression "reasonable efforts. . .

Equity Position — The Artist appoints the Manager as his exclusive personal manager throughout the world in all fields related to the arts and entertainment industry. The Manager will offer the Artist advice and coimsel and will use his best efforts to advance the Artist's career.

The Manager accepts the appointment as set forth here and agrees that, in fulfilling the appointment, he will 1) make himself available to the Artist at reasonable times and places; 2) devote his best efforts to the Artist's affairs; 3) maintain an office and staff adequate to fulfill the appointment and his responsibilities thereunder.

1.1 Exclusivity — The Artist appoints the Manager as his exclusive personal manager and will engage no other personal manager during the term of this agreement. The Manager's services to the Artist are non-exclusive; he may manage other artists concurrently and carry on other business activities, at his sole discretion.^

1.2 Business Management — The Manager shall be in charge of the Artist's business affairs personally or, with the consent of the Artist, engage a Third Party as business manager.

1.3 Representation — The Manager shall represent the Artist's best interests with Third Parties and supervise agreements with them.

7-Joseph Taubman. In Tune With the Music Business (New York 1980: Law-Arts Publish- ers), p. 80.

8-The Artist may seek to limit the Manager's freedom here by requiring him to list his cur- rent clients and agree not to further obligate himself. This may help assure the Artist the Manager will have sufficient time to serve the Artist's best interests.

172 CHAPTER TEN

8.0 EMPLOYMENT

Artist's Position — Despite the language in most contracts of this kind, the Artist expects the manager to actively procure employment for him. This is the very reason most artists sign on with a particular manager

Manager's Position — The Manager will insist the agreement specifically excuse him from any obligation to procure employment for the artist. If the agreement is negotiated and "performed" in the state of California, the Manager will require extra-strong language here disavowing any hint that he is even to attempt to procure employment or that he will participate even indirectly in such activity.

Equity Position — The procurement of employment, or the attempt to procure employment for the Artist is not an obligation of the Manag- er, and the Manager is not authorized, licensed, or expected to perform such services. But the Manager recognizes that the obtaining of employ- ment is of the essence in advancing the Artist's career, and that the Manager shall, after consultation with the Artist, engage, direct and/or discharge such persons as talent agents, employment agents as well as other persons and firms who may be retained for the purpose of secur- ing engagement contracts for the Artist.

S.OikSSIGNMEMT

Artist's Position — The Artist will attempt to deny the Man- ager the right to transfer or assign the contract to a Third Party. The Artist enters into the agreement largely because of his feeling of confidence and trust in this particular Man- ager. The Artist could not be assured this same confidence and trust could be found in some Third Party who was allowed to take over the contract. To protect himself, the Artist will seek a keyman clause (below).

Manager's Position — The Manager will seek to avoid inclu- sion of a key man clause, arguing that he may become disabled or otherwise unable to perform. He may develop dif- ferent interests and want to be free to assign the contract. If the Manager is employed by a management company, his com- pany will probably insist it retain the right to assign the agreement.

Equity Position — The Manager is the key man in this agreement and is denied the option to assign this agreement to a Third Party with- out the prior written consent of the Artist. Any Third Party imder consideration in this context shall agree to assume all the responsibili- ties assigned to the first Manager and be fully qualified, in the opinion of the Artist, to perform in a manner and at a level comparable to the first Manager.

4.0 TERM, TERMINATION

Artist's Position — Unless the Artist is in an inferior negoti- ating position, he will seek an initial term of one to two

ARTIST MANAGEMENT 173

years. He seeks to avoid a longer first term in the belief that, should his career prosper, he will want to negotiate more favorable terms at the end of the first term — or seek to ter- minate his Manager and engage a new one willing to serve for a lower commission.

Manager's Position — It is in the Manager's best interests to negotiate a maximum term allowed by state statute for per- sonal services contracts. He seeks maximum assurance that he has the Artist tied up and can enjoy hi^ income for years to come. He wants to recover his investment made during the lean years of the Artist's career.

Equity Position — The term of the Agreement shall be for two years, provided the parties satisfactorily fulfill their mutual obligations. If either party has substantial cause to claim the other party has failed to perform \mder this Agreement, the claimant must send a written notice by registered mail, return receipt requested, citing specific reasons for the complaint, allowing the recipient of the written notice 30 days to cure and reasonably satisfy the complaint. If the aggrieved party does not receive a response that is reasonably satisfactory to the claimant, the claimant may then terminate this Agreement by sending written notice ten days in advance to the other party. ^

4.1 Options — The Artist grants the Manager options to extend the initial term of this Agreement to a maximum aggregate total of seven years, ^° provided the Artist's gross income from the entertainment industry during the preceding year(s) aggregates these totals:

(A) First term: $

(B) First Optional Extension Period of One Year (total of (A) and (B)): $

(D) Third Optional Extension Period of One Year (total of (A) through (D)):

(E) Fourth Optional Extension Period of One Year (total of (A) through (E)):

(F) Fifth Optional Extension Period of One Year (total of (A) through (F)):

9-The parties may prefer that this option to terminate not be allowed, and that all serious claims of failure to perform be referred to arbitration. But a powerful act may demand the right to terminate at any time, making the claim that the manager serves at the pleasure of the artist. But no prestigious manager would accept this, arguing that he would be too vulner- able to the artist behaving capriciously.

1 0-States have statues of limitation of contracts involving "personal services."

174 CHAPTER TEN

The foregoing notwithstanding, the Artist grants these extension options only on the condition that the Majiager fulfOls, in the initial term and optional extensions thereof, all his responsibilities and obliga- tions set forth herein. ^ ^

8.0 POWER OF ATTORNEY

Manager's Position — The Manager will attempt to get gen- eral power of attorney, including, among other powers, the complete and unrestricted right to 1) collect and disburse all the Artist 's money; 2) negotiate and sign contracts on behalf of the Artist; 3) engage and discharge personnel; 4) exploit the Artist's personality, name, likeness, photographs, which would include commitment of the Artist to product endorse- ments and commercial announcements; 5) exert "creative control, " including the selection or rejection of musical and hterary materials, record producers, staging and costuming.

Artist's Position — An experienced lawyer will seek to severely limit a grant of power of attorney. First, grant of general power of attorney is all-encompassing and affords exposure to conflicts of interest and abuse. The Artist will probably be most resistant to extending power of attorney to creative control. Unless the Manager is fully qualified to make artistic Judgments, for example, the Manager could impose poor decisions in such sensitive areas as selection of music to be recorded, the manner and style of presentation and the selection of record producers. Whatever resolution the parties make in regard to creative

control and constraints on decision-making, the Artist will probably demand that power of attorney be cancelable by the Artist at any time.

Equity Position — The Artist agrees the Manager may require limit- ed power of attorney from time to time for his convenience. Accord- ingly, the Artist grants limited power of attorney to the Manager to serve as the Artist's agent and attorney-in-fax3t in emergency situations only and denies the Manager this power without the prior written con- sent of the Artist 1 ) to accept any performing engagement on behalf of the Artist exceeding one week in duration; 2) to sign checks drawn upon the Artist-Manager's Trust Account with a face value greater than $1000 and of an aggregate monthly amount in excess of $5000 for all such draws; 3) to sign any agreement on behalf of the Artist that is of more than incidental importance or having a term longer than one month; 4) to engage or discharge support personnel; 5) to accept on Artist's behalf any product or service endorsement; 6) to limit the Artist's creative control over such matters as the selection of musical

11 -Whatever the circumstances of termination or disengagement, the lawyers will need to exchange notices of release. These releases may include executory provisions — require- ments for performance, payments, etc. following termination of the agreement.

ARTIST MANAGEMENT 175

and literary material; determination of the manner and style of perfor- mance, including staging and costuming.

The Artist may terminate this power of attorney at any time, with- out notice, in the event that the Manager misuses, in the sole opinion of the Artist, this power.

6.0 ARTIST'S RESPONSIBILrnES, WARRANTIES

6.1 Encumbrance — The Artist warrants that he is under no restric- tion, disability or prohibition in respect to the Artist's right to execute this Agreement and perform its terms and conditions. The Artist war- rants that no act or omission by the Artist will violate, to the best of his knowledge, any right or interest of any person or firm or will subject the Manager to any liability or claim to any person.

6.8 Commitment — The Artist will devote his full time and attention to the advancement of his career.

6.3 Ownership — The Artist warrants that, to the best of his knowl- edge, he is the sole owner of his professional name,^^

and that this warranty is restricted to adjudicated breaches.

6.4 Advice — The Artist will accept in good faith the advice smd counsel of the Manager, in recognition of the Manager's special knowl- edge and experience in the entertainment industry.

6.8 Income — The Artist shall encourage all agents and employers to make payments of all monies due the Artist to the Manager, or to a Third Pajty approved by the Artist and Manager.

6.6 Emplo3nnent — The Artist shall refer all offers of employment to the Manager, and the Artist shall not accept offers of employment with- out the consent of the Manager.

7.0 MANAGER'S COMPENSATION

Artist's Position — The Artist will seek to sign the Manager for a 10 percent to 15 percent commission. If this is unac- ceptable to the Manager, the Artist may offer to increase the rate as gross income rises.

Manager's Position — If the Manager is new at the game and anxious to get into the field, he might accept a commission as low as 10 percent, but try for 1 5 percent. An unknown manag- er will probably only be able to attract relatively unknown artists, so the parties must agree to struggle together in the early stages of their relationship. The astute manager who accepts a low starting income will seek commission increments when he can manage to materially increase his chent's income.

1 2-Courts have held that the legal ownership of a trade name ultimately resides, not with the person first using it, but is owned by the person or persons identified with the name when it acquires a "secondary meaning.

176 CHAPTER TEN

Equity Position — The Artist shall pay the Manager 15 percent of the Artist's gross income for the first year of this Agreement. "Gross income" shall include, without limitation, all fees, earnings, salaries, royalties, bonuses, shares of profit, stock, partnership interests, per- centages, gifts of vaJue, received directly or indirectly, by the Artist or his heirs, executors, administrators or assigns, or by any other person, corporation or firm on the Artist's behalf, from the arts and entertain- ment industry.

The comm.ission shall be 20 percent in the second year of this Agree- ment, provided the Artist's gross income for this second year increases

percent over the first year. If this Agreement is extended to a third year, the commission shall rise to 25 percent provided the Artist's gross income increases percent over the prior year.

8.0 COMMISSION BASE

Artist's Position — An unknown artist will probably have to pay an established manager on artist's unadjusted gross income. But an established artist with an aggressive lawyer may be able to obtain certain exclusives from that gross, such as those listed below.

Manager's Position — The Manager will fight for the broad- est possible commission base and seek to calculate his percentage on the Artist's unadjusted gross income. But if the Artist has superior bargaining power, "gross income" will probably become an adjusted gross income.

Eqiiity Position — The foregoing definition of the Artist's "gross income" notwithstanding, the following types of income shall be deduct- ed from the gross income for purposes of calculating the Manager's commission: 1) the first $25,000 aggregated income in any single year derived from the entertainment industry or $500 per calendar week, whichever is greater; 2) record production expense where a Third Paj?- ty provides same to the Artist; 3) record producers' fees, points and percentages where a Third Party pays the Artist for same; 4) perfor- mance, production and travel expense including salaries of support personnel connected thereto where a Third Party pays the Artist for same; 5) legal fees incurred by the Artist in dealings with the Manager and Third Parties in the negotiation and performance of agreements; 6) passive income — where the Artist receives money or other things of value from sources outside the entertainment industry or the Artist's income from investments inside or outside the entertainment industry. ^^

In any circumstances where the Manager has a financial interest with a Third Party or company with whom the Artist has any kind of business relationship, the Manager shall receive no commissions on any monies the Artist receives from such sources.^'*

13-A manager with a strong track record and powerful contacts will probably not accept these commission exclusions. If he did, he would demand a higher commission rate. The author's rationale for suggesting these exclusions is simple: most of these exclusions are not the Artist's income, but his overhead. The Manager is entitled to commissions on income, but not outflow.

ARTIST MANAGEMENT 177

Wlien this Agreement and all extensions thereof terminate, the Artist shall pay the Manager 100 percent of his commissions for a period of one year from all income generated by contracts and agreements set up by the Manager diiring the term of the agreement. For the following six months, the Manager's commission is limited to 50 percent of the Artist's commissionable income. For the subsequent six months, the Manager's commission is lim.ited to 25 percent of the Artist's commis- sionable income. Thereafter, all Manager's commissions on the Artist's commissionable income cease.

9.0 FINANCIALACCOUNTING

Within thirty (30) days following the execution of this Agreement the parties shall select, by mutual consent, a certified public accoimtant to provide accounting services.

9.1 Records — The parties shall exchange informal financial records of aU monies flowing through their hsinds that relate to this Agreement. The Manager's financial records shall account for all receipts, disburse- ments, conmiissions withheld, advances, loans and investments, if any. Copies of the parties' financial reports shaU be forwarded monthly to the accountant.

9.2 Audits — The Manager shall commission independent auditors, with the consent of the Artist, to conduct periodic audits of the Artist's

publisher and record company to determiine if these firms are fuUy pay- ing royalties due the Artist and paying in a timely manner.

9.3 Limitations — The Manager may not incur any expense on behalf of the Artist in an amount larger than $ for any one expense, without the consent of the Artist. The Manager may not incur monthly expenses on behalf of the Artist that exceed $ without the consent of the Artist.

9.4 Loans — The Manager is not expected or required to make loans to the Artist or advance the Artist money. The Manager shaU not make loans to any other person or invest the Artist's money without the prior consent of the Artist.

If the Artist asks the Manager to loan him money, and if the Manag- er voluntarily agrees to do so, the Manager shall be entitled to recover when due such loaned money together with reasonable interest. If such repayments to the Manager are not made when due, the Manager may recover the amount outstanding from the Artist's current earnings from the entertainment industry.

9.5 Overhead — The Manager's office overhead is not recoupable from the Artist, nor the Manager's travel expense within a fifty (50) mile radius of his office. The Artist shall pay the Manager's travel expense outside this radius when the Manager is requested by the Artist to travel.

9.6 liability — Neither party is liable to the other for debts and obli- gations they may incur that are not covered by the Agreement.

14-The attorneys will need to negotiate how commissions are to be paid, if any, where the Artist's services are provided by a corporation. The commission will be adjusted to reflect whether the Artist, in this circumstance, has a financial interest in the corporation, is only an employee, or both.

178 CHAPTER TEN

10.0 GENERALISSUES

The present Agreement constitutes the entire understanding between the parties, and no other agreement or commitment, oral or written, prevails between the psirties, and neither party may change or modify any part of the present Agreement without the prior written consent of the other party.

If one or more psirts of this Agreement is found to be illegal or unen- forceable, for any reason or by any person, the same shall not affect the vaJidity or enforceability of the remaining provisions of this Agree- ment.

10.1 Incorporation — If the Artist incorporates, he agrees to caiose said corporation to sign an agreement with the Manager which provides no less favorable terms than the first agreement.

10.2 Default and Cure — If either party claims that the other is in default or breach of this agreement, the aggrieved party shall provide written notice setting forth the nature of the dispute. The accused party is then allowed thirty (30) days to cure the alleged default, during which period no default or other grievances shaU be deemed inoirable.

10.3 Arbitration — The parties agree to submit aJI disputes to the American Arbitration Association and be bound by and perform any award rendered in such arbitration.

10.4 This Agreement is made imder the laws of the state of

IN WITNESS WHEREOF, the parties hereto have executed this Agree- ment as of the day and year first indicated above.

Artist

Personal Manager

ERT ION

A serious study of concert promotion should be preceded by a care- ful examination of the earlier material in this book, Chapters 9 and 10

in particular.

The promotion and production of live concerts employs large numbers of people and causes the flow of hundreds of millions of dollars. Those tak- ing part hope that the money will flow in their direction. It looks so easy: you rent a facility, hire a star, and collect the money. This get-rich-quick illusion has caused more bankruptcies than exploring for oil. Promoters and producers who know the concert field do well financially; those lack- ing competence do not survive in it. How big is the concert field? The grosses from the college concert

and entertainment field, along with the income from non-college-spon- sored concerts, add up to a billion-dollar industry.

GETTING STARTED

How does the aspiring concert promoter get started? Most professionals began simply by promoting and booking their own acts; others who go on to professional promotion work got their start working on a college campus entertainment committee. Many professional promoters paid their first dues putting on college concerts, shows, even lectures.

180 CHAPTER ELEVEN

Finding the Money — The independent promoter starting must, first of all, get in touch with some money, perhaps by spending personal funds or persuading outside investors to gamble. Early in this money-raising

state, the promoter must register a firm name with the county clerk, license the business and establish a business bank account. Assuming this preliminary homework has been done, an unknown concert promot- er will have to provide cash deposits or surety bonds or a letter of credit to guarantee hall rentals and promotional expenses, and may also have to come up with cash deposits (usually 50 percent) required by most agents at the signing of contracts for the performers.

The freshman concert promoter may establish a "limited partnership," assuming only part of the financial risk and consequently enjoying only a share in the profits, if there are any profits. Another option is for the young promoter to set up a corporation to finance concerts.

LOCATING COSPONSORS

Most promoters discover that the most efficient and profitable concert promotions are cosponsored, with two or more individuals or firms investing in the project.

Concerts on and off campus are frequently sponsored or cospon- sored by a local radio station. AFTRA frowns on its members becoming involved in concert sponsorship in the belief that such activity can be a

conflict of interest-. But radio stations and their employees find ways to ally themselves with live concerts, because such events are regarded by

them as excellent contacts with their broadcast audience. Concert pro- moters welcome cosponsorship of broadcasters, because the potential audience for the live event is comprised largely of the same persons who listen to broadcast music.

For many years, the most active cosponsor of concerts in the pop and rock fields has been the record industry. Label executives know that the successful promotion of a new album may depend upon coordination with a concert tour. But when record sales dropped in the late 1970s, record companies cut back on financial support of their touring artists. In

recent years, touring costs have become so high — necessitating, in turn, ticket price increases which discourage some potential concertgo- ers from attending — that some experienced observers predict that live concerts of recording artists may become a thing of the past. They believe a handful of superstars may still make it on the road, but that most other concert tours may phase out because of the increasing diffi- culty of breaking even on such ventures.

Record Company Cooperation — Despite the risks involved, record companies will probably continue to be important sponsors, or cospon-

sors, of live concerts. When a label does help underwrite concerts, it cooperates with the artist's management in producing and supplying promotion materials. Some labels maintain "college departments" to coordinate record company support of college-sponsored performances. Some record companies will buy blocks of tickets for concerts, then give

CONCERT PROMOTION 181

them away to individuals and firms who have influence, or so they believe, over the record-buying public — disc jockeys, media personnel, and employees of record distributors and record stores. In addition to spreading goodwill among influential people, giving away tickets helps fill the house, thus giving the impression to the audience that the event

is a huge success. This practice has been used for a long time on Broadway, too, and is known as "papering the house." A record company that is strongly supporting a particular concert may

send in one of its own publicists or product managers to assist. Yet another kind of promotional support involves the record company partici- pating in the expense of buying broadcast spots and print ads. In these efforts, the label and concert promoter may share such expenses with a local record retailer who wants to take part in the promotion.

An even more elaborate involvement by a record company occurs when the label itself sets up a complete national tour. When this is undertaken for a new act, the artists may be so broke that their record company must not only finance the purchase of equipment, but advance the group or artist funds for transportation, even hotels and meals. Labels may invest heavily to finance a national tour of an act it believes may make it. Despite these descriptions of extensive tour support, artists' managers complain that their clients never get enough of this kind of backing.

CORPORATE SPONSORSHIP

Evident to all is the increase in corporate sponsorship of touring per- formers. Firms such as Pepsi Cola or Schlitz beer are willing to spend $1 million or more for the right to associate their names and products with a star. These kinds of contracts may call for the corporation to underwrite entire tours.

Many of these endorsement contracts provide the sponsor the exclu- sive right to vend his products at the performances. For example, if Pepsi Cola is the sponsor. Coca Cola will be nowhere in sight.

If the concert venue is owned by a municipality, the sponsor (or any vendor) is expected to pay the city a share of its gross. Ancillary revenue included in the gross can be substantial. In fact, many artists now earn as much or more from the sale of T-shirts, jackets, programs and the like as they do from ticket sales.

Knowing the high profits possible from arena refreshment sales, some concession companies have expanded into concert promotion. Ogden Allied Leisure Services, for example, which controls concessions and other ancillary services in a number of halls and arenas, created Ogden Allied Presents to draw more business into those venues.

Another trend in cosponsorship is increasing involvement by the are- nas themselves. Companies such as Centre Management, which owns several facilities, has been successful with its concert promotion divi- sion, MusicCentre Productions. While large arenas are still the leading choice for major artists, many small and mid-size buildings have done well by promoting a variety of artists of lesser stature and occasionally accommodating the big act through a multi-night schedule.

182 CHAPTER ELEVEN

National Promoters — After a concert promoter has established a repu- tation in a particular area, "national promoters" (NPs) who need assis- tance in coordinating national tours will become aware of that success. Major acts and their agents usually prefer an NP to coordinate a whole tour as this arrangement affords greater continuity and smoother organi- zation. All NPs need the local expertise of individual area promoters to recommend appropriate venues, scale the house (set seat prices) and arrange local promotional tie-ins with radio stations and record stores.

NPs are usually compensated on a share of net receipts — box-office income less expenses. Local promoters' income usually comes out of the NPs share of income. Arguments often arise about "net profit." Con- tracts between NPs, local promoters and artists must be precisely drawn

to make sure "expenses" charged against gross income are allowable and accurate.

COLLEGE SPONSORSHIP

About one-half of the live concerts in the U.S. are sponsored or cospon-

sored by colleges and universities which, each year, set up student-run committees to handle the school's annual budget for campus-sponsored entertainments. Sponsoring, promoting and managing college concerts today is a big business. College students usually lack sufficient experi-

ence and knowledge in the field to handle these affairs by themselves. Increasing numbers of colleges find it necessary to bring in professional promoters and managers. Artists' agents are always relieved when a col- lege involves a knowledgeable professional to work with them in han- dling the endless details and large sums of money involved. But due credit should be given to these students, some of whom begin to learn the promotion-management-production field while in school, then go on

to find their places as professionals in the concert promotion or artist

agent-management fields.

MACA

Major facets of the music business have their own trade associations. The one most representative of concert promotion focuses on the col- lege field. It is NACA, the National Association for Campus Activities. It represents over 1000 colleges and offers associate memberships to agencies, managements, and individuals who supply related services or products. Every aspiring concert promoter should study NACA publica- tions, particularly Programming, NACA's magazine. NACA holds annual conventions which are attended, not only by col-

lege representatives, but by talent agents and performing artists from

both the pop and classical fields. Talent agencies and record companies

sometimes send their major stars to these conventions, and college pro-

moters attend workshops to advance their knowledge of booking and promoting campus entertainments. Probably the most useful function of these conventions is provision for attendees to negotiate cooperative

bookings of touring acts. NACA's national conventions include presenta- tion of "Campus Entertainer of the Year" awards. Major stars often put in personal appearances to accept these honors.

CONCERT PROMOTION 183

PREPARING BUDGETS Early in the cycle of events leading to a live concert, the promoter will

have formulated a budget. Inexperienced promoters not only will under-

estimate certain costs, they will overlook certain kinds of overhead. Even

if they follow the production management controls suggested here and budget expenses carefully, another danger area is optimism. Every year,

hotshot new promoters jump into the field, full of confidence that they will show others in the field how it should be done. They are optimistic beyond reason because they do not yet know enough about what they might encounter.

Before a promoter can start signing acts, an appropriate facility,

referred to in the trade as a "venue," must be located. Many communi- ties' most attractive venues are tied up by other tenants or other promot-

ers. Securing open dates can be difficult, and available dates are use-

less without the coincident availability of the acts the promoter wants. In

selecting a concert venue, the promoter can usually rent the facility for a

flat fee, or a flat fee plus a percentage of the gross. The landlord normal- ly furnishes the stage manager, box-office manager, maintenance crew,

security personnel and ushers. The promoter's second rental option is called "four-walling": the landlord furnishes the facility and the stage manager; the promoter brings in all other personnel — stagehands, ush- ers, security and box-office help — and foots the bill. A critical issue is the number of seats. A thousand-seat facility sold

out at $20 a ticket grosses $20,000, obviously. The promoter with a bud- get of $17,500 (allowing $2,500 for profit) will probably lose money because few halls sell out. Even if every seat is sold, unanticipated expenses may gobble up the profit margin. Few concerts in the pop-rock

^^-^^ *i»lj

•/-^i,*^ -^^mmR^

184 CHAPTER ELEVEN

fields can be put together and profit from a $20,000 gross. The promoter would be well-advised to first locate a 5,000 or 10,000 seat arena, book

a headline act, and pull together enough money to finance a sizable pro- motional campaign. A budget of this kind may be less risky than the one described for the 1 ,000-seat facility.

Whatever the potential gross a particular venue might yield, the expe-

rienced promoter budgets the package to produce at least a break-even

figure, not for an SRO audience, but for a 60 percent house — meaning that the promoter estimates that 40 percent of the tickets just won't sell.

Theatre managers have used this 60 percent house figure since the 1800s in planning budgets.

Let us invent a concert budget for our freshman promoter-producer:

SAMPLE CONCERT BUDGET

POTENTIAL INCOME

10,000 seats at $20 per seat

Maximum gross $200,000 Less 40% for unsold tickets -80,000 Gross income 1 20,000

ESTIMATED EXPENSE

Hall rental (includes box office.

ushers, stage crew) 10,000

Star act 58,000

Supporting act 6,500

Liability insurance 2,000

Surety bonds 500

Advertising, promotion (15% of the gross) 18,000

PA company 4,000

Lighting/staging company 4,000

Security company (rent-a-cop) 2,300

ASCAP and Bf\/ll performance licenses 300 Perquisites (special food, drink, etc.)

for the star 400

Cleanup 2,000

Unforeseen expense

(10% of estimated gross) 12,000

120,000

PROFIT/LOSS

Fig. 11.1

CONCERT PROMOTION 185

This young promoter is very fortunate — and probably set some kind of record for a first project: breaking even! Consider the things that were

handled wisely.

The promoter:

- hired a 10,000 seat arena, thus maximizing the potential gross

- spent a bundle on a big-name act — to assure strong tick- et sales

- was well-covered against damaging lawsuits by taking out an expensive liability policy

- budgeted 15 percent of anticipated gross revenue for advertising and promotion, an amount often recommended as a minimum by successful promoters

- budgeted $2,000 for cleanup, just in case the audience left more mess than the arena rental contract would normally take care of as routine maintenance

- budgeted 10 percent of the estimated gross revenue for unforeseen expense. (Astute promoters have learned this ploy from construction contractors, many of whom will pro- tect themselves against delays, strikes, inclement weather

andjust bad luck by adding on 10 percent to 15 percent for "unforeseen expense. ")

In addition to breaking even, a promoter this smart can probably look for-

ward to even making a profit next time around. The first venture pro- duced another bonus: the people involved — agents, managers, artists, security people — all discovered this individual to be a level-headed businessperson who treats associates fairly. Next time around, there may be somewhat lower fees and more complete cooperation from these people.

NEGOTIATING CONTRACTS The concert promoter is obligated to enter into a number of written agreements before the entertainment can begin. For example, contracts must be signed with venue managements, talent agents, merchandisers, perhaps with national promoters, with lighting and sound suppliers, insurance companies, transportation firms, even caterers, and there must be clear agreements with the city's police and fire departments.

In respect to security arrangements, the city or venue management will require the promoter to have a specified number of rent-a-cops on hand. Security requirements for classical performers, MOR artists and

186 CHAPTER ELEVEN

country acts will be minimal; for rock-and-roll and rap shows, where the potential for violence is traditionally much higher, the promoter's costs for security will run very high.

City and county fire departments impose strict controls on the promot-

er in respect to hall capacity and standees. Fire departments have been

known to close down performances where the promoter fails to control congestion of aisles or blocking of fire exits.

Signing Acts — Promoters normally contract for performers' services through talent agencies. Knowledgeable promoters try to work with agents of broad experience, who can be of invaluable service. Agents, in turn, prefer to work with seasoned promoters because they are more likely to share with them a successful experience. Agents will normally limit stars' bookings to promoters with good track records. Most stars are

in a position to pick and choose where they will perform and need not

take a chance on unknown concert promoters. But agents handling per- formers of lesser magnitude are frequently looking for concert dates, and

the less-than-famous promoters can work out satisfactory contracts with

them. Smart agents set artists' fees, whenever they can, to permit the

promoter to make money, too. Contracts must be mutually profitable, or the parties will shop elsewhere next time.

Promoters should make preliminary inquiry of agents concerning artists' usual fees and available dates. This information can set in motion

preparatory planning, such as placing a hold on a concert facility. After

the promoter has worked out a preliminary budget based on this informa-

tion, it's time to contact the agent and nail down a firm agreement. If an acceptable fee can be negotiated for the acts, the promoter can then pol-

ish the budget, double-check the estimated income and expenses, then

sign the contracts.

Some promoters permit themselves the luxury of booking the acts they personally prefer — if the price is within reach. Most experienced promoters favor their personal preferences, but are more likely to follow

the weekly fluctuations of the trade charts, regional sales and airplay — then do everything they can to book the acts that are the most recent

successes in their concert territory. If the promoter's cosponsor aids in

this research, they may develop a winning combination. Booking artists on the way down the charts has hurt many a promoter.

Once the promoter has signed the star act, there is pressure to accept a lead-off act or other secondary acts on the bill. Agents handling both the

star and a favored lead-off act will do all they can to get the promoter to

buy a package deal: "You can have my star if you'll give this new act a break and let them lead off." Or the promoter may hear this appeal from the record company: "We just signed the Hitmakers group and if you buy them for your next bill, we'll fly in our promotion people to help you really

push the date, for free. The act? Cheap!" Agents are on questionable legal ground when they attempt to coerce a talent buyer to buy one act if the buyer will just take one in addition. In the motion picture exhibition

business this is sometimes called block booking and has been judged ille-

gal, under certain circumstances, by the courts. But the practice, usually

disguised with ambiguous but persuasive language, continues.

CONCERT PROMOTION 187

Technical Riders — Once the promoter and agent have come to terms on the acts and the prices, stars, sometimes lesser names, usually make additional demands. Some concern an agreement describing the setup and expense for the sound system, lights, staging, etc. Details covering these items are attached as an addendum to the artist's contract in the form of what is usually called a "technical rider." Stars frequently specify the companies they want engaged to supply the sound reinforcement and staging. Others leave it to the promoter to engage the best local or regional suppliers and technicians. Audio and staging are usually deter- mined by the star act. Lesser names on the bill are accustomed to accepting whatever the star has demanded in technical services. The promoter has signed the acts and accepted the technical

demands, but is not yet through with commitment. During the years when big stars first became accustomed to being treated like royalty, they would add fine print to their contracts demanding their dressing rooms be lavishly supplied with special food and drink. The automobile chauffeured to transport the star could not just be a limousine, it had to be a particular model. When the concert business fell off sharply in the late 1970s, experienced promoters informed stars and their managers that they would have to hustle their own fringe benefits when they were unreasonable. Smart promoters today do all they can to make their artists comfortable. But only the inexperienced promoter will waste his time and money accommodating outlandish tastes.

PROMOTION, ADVERTISING

There are only a few superstars who will draw a SRO audience just by having their forthcoming appearance announced. These giant draws require the promoter to spend practically no money on advertising. That is fortunate, for 80 to 90 percent of the gross has undoubtedly been signed away to the visiting superstar. In a more common occurrence, the promoter signs the acts, then has to shout and scream to inform the pub- lic that there are tickets, lots of tickets, for sale. Some promoters prefer to personally handle publicity and advertising responsibilities. For some, it is just this "show biz" aspect of concert promotion that first attracted them to the field, and they seem to enjoy, even thrive, on the razzle-daz- zle role of the hustler, the "flack." The promoter's advertising agency might have personnel to assist in the publicity campaign. More likely, the promoter will hire a publicist or PR firm to organize a campaign that will persuade the public to buy the tickets. This process is aided by "promo kits" supplied by the managers of the artists (promotion materials are often supplied by the artist's record company).

Another useful kind of press is the interview: the star arrives; all news- papers and broadcast media in the concert territory are informed that at 2 p.m. in the Big Hotel The Star will hold a press conference. Reporters present may turn in interview copy; their editors may or may not print it. More effective is the "exclusive interview," where an individual reporter or

1-For additional information on promotion teciiniques, see Cfiapter 10.

188 CHAPTER ELEVEN

newspaper columnist will be offered the exclusive right to interview The Star, provided reasonable assurance can be offered that the story will be written and printed.

If the bill features pop recording stars, the promoter knows the most effective advertising will be on the radio — not just spot announcements but the supporting chatter of jocks who are always searching for some- thing musical to talk about.

Rock-pop audiences are less attracted to print media. Middle Ameri-

ca, accustomed to following the entertainment pages of daily newspa- pers, may never be aware that a particular rock star has been in town, come and gone, sold out. In lieu of extensive newspaper ads, rock pro- moters will focus their print ads on posters, locating them wherever young people gather — schools, college campuses, bookstores, record stores, etc. Record labels sometimes help promote a concert of one of their contract artists with special record store displays, sometimes taking

over whole windows to push the artist's latest release and local concert appearance. Some promoters learn that ad space bought in campus newspapers pays off, and the paper will usually run editorial copy, too.

Promoters and publicists may use gimmicks when they can attract attention no other way. Publicists representing major stars tend to shy

away from publicity gimmicks, having learned that the public is some- times quick to spot hype.

PRODUCTION MANAGEMENT The concert promoter is ultimately responsible, not only for booking the talent and filling the hall, but for every detail relating to the presentation of that entertainment. Anyone attempting to enter the field should first try to discover whether the aptitude is there — along with the will — to assume the management of a great variety of details. If the promoter's talents and inclinations lean mostly to actual promotion, an associate producer should be engaged to assume the responsibility for the man- agement of the performance itself. This kind of associate producer might be called the production manager or stage director. Any individual pre- suming to function in this capacity must be experienced, as an amateur or professional, in theatre and staging.

While some promoters and stage managers do an adequate job with minimum controls, many of the best of them rely heavily on lists of things to do. It should help to work up "control sheets" as written guides for

what to do and when to do it. The accompanying pages show the kind of production control sheets that can work efficiently in most situations.

These forms will be particularly useful for college promoters. The secret to effective concert promotion is to understand the impor-

tance of what might be called production back-timing. The technique is comparable to the ones used in the construction industry, where the con-

tractor schedules a sequence of events so that subcontractors arrive on

time with the necessary deliveries and workers. The College Production Planning form (Fig. 11.2) identifies the myriad

tasks that must be back-timed so that preparations for a performance

can unfold in orderly fashion.

CONCERT PROMOTION 189

COLLEGE PRODUCTION PLANNING

LEAD TIME CONTROL RESPONSIBILITYCONTROL NUMBER

6-12 months

3-6 months

3 months

2 months

6 weeks

4 weeks

3 weeks

1- Research history of college promotions in your area. What has worked well in the past?

2- Formulate budget for forthcoming school year; appeal for

funding.

3- Place tentative holds on performance facilities.

4- Make preliminary contact with talent agents to learn of ten- tative costs, available artists and dates.

5- Get school's approval of your plans. Submit bid for artist, specifying date and price.

6- Get acceptance, rejection or counter-offer from agents.

7- Negotiate contracts with agents. Pending formal execution of contracts, exchange written confirmation.

8- Confirm your hold dates on facility, then formulate a written agreement with the facility management.

9- Execute contracts with agencies, including technical riders.

10- Contact artists' record companies for help with promotion. Ask for press kits, promotional materials, money for block- ticket purchases, cooperative ads, even promotion person- nel.

1 1 - Formulate promotion budget and campaign. Get print and broadcast ad costs.

12- Contract for outside suppliers, as needed, for sound rein- forcement, lighting, security, caterers, etc.

13- Place printing orders for tickets, posters, banners, etc.

14- Line up cooperative ads with record stores, radio stations, etc.

1 5- Contract for ticket selling outlets.

1 6- Seek store displays ofposters, albums.

17- Deliver printed tickets to outlets. Set strict controls for accounting.

18- Line up student volunteers for ushering, ticket takers, set- ting up/striking stage, publicity, gofors, box office, etc.

19- Clear plans with fire department: size of crowd, control of

aisles, exits.

190 CHAPTER ELEVEN

20- Clear security plar)s with police, sheriff, rent-a-cop firm, campus police. Discuss liabilities with school's legal coun- sel.

2 weeks

1 week

3 days

21- Distribute promotional materials to print and broadcast media. Schedule press conference, interviews. Mount ban- ners, posters.

22- Reconfirm arrangements with outside suppliers (sound, lighting, transport, caterers, etc.)

23- Check ticket sales. Adjust promotion budget accordingly.

24- Call a production planning meeting with facility manager, stage manager, production director, student volunteers. Issue written instructions to everybody concerning their responsibilities, schedule, contingency plans.

25- Reconfirm everything! a. with artists' road managers regarding any changes

in time of arrival of personnel, equipment b. with outside suppliers

c. with facility stage manager d. with student crew chairpersons e. with ticket sellers (If sales are lagging, execute pre-

conceived last-minute promotion campaign.)

Performance 26- Call production meeting one hour prior to scheduled arrival Day of equipment and roadies. Everyone charged with respon-

sibilities relating to the production and performance attends this meeting and takes notes. Last-minute changes in plans discussed.

27- Set up. Confirm all personnel and equipment are arriving per plan.

28- Pick up money and unsold tickets from outlets. Deposit money in bank, deliver unsold tickets to facility box office for sale there.

29- Welcome the performing artists and their entourage. Con- trol issuing of backstage and auditorium passes. Save the best (free) seats for unexpected important guests.

Post Production 30-

31-

If agreed contractually, join the road manager for a count of receipts and unsold tickets shortly after the box office closes. Make agreed payment, then arrange for secure place to store cash overnight.

Feed your people after the show, at least your volunteers. They've earned it!

32- Confirm facility cleanup is proceeding per plan. Did the

place experience more than normal wear and tear? If so, discharge your contractual responsibilities.

CONCERT PROMOTION 191

33- Write a summary report, following a short meeting of your key personnel: what went wrong, what went well?

34- Thank the participants by telephone or letter for their coop- eration, particularly those who worked as volunteers.

35- Pay your bills promptly to assure goodwill for the school's Fig. 11.2 next venture.

College students who acquire experience promoting campus concerts may find work with fully professional promotion companies provided, of course, their track records as amateurs justify the confidence of potential

employers.

Control Sheets — As preparations for a performance unfold, persons in charge start accumulating voluminous correspondence and telephone

messages. Filing folders become unmanageable. To maintain control, promoters, stage managers and road managers might well pull all the

data relating to the performance itself together on one sheet, called a

"control sheet," which is commonly used by experienced promoters. Try the one shown (Figure 11.3) or prepare your own. Producers who favor assembling more detail than can be written on such a simple form will

prefer to prepare their own summary sheets, perhaps on legal-sized paper which can be duplicated to provide identical information for all key

production personnel.

ELECTRONIC TOURS

As pointed out earlier, some observers predict that rising costs may one day make concert tours and other live performances too expensive to bring off. Some crystal ball experts predict that most live performances will be displaced by what could be called the "electronic tour," where

major acts perform live in one location, then rely on electronic transmis-

sions, perhaps via satellites and pay-cable hookups, to venues spread

all over the country. With strong promotion, audiences could be generat-

ed to buy tickets to such "live" transmissions in theaters, arenas and sta-

diums.

All concert promotion is a matter of supply and demand: if the artist is

big enough, the pay-per-view audience could be substantial. Additionally,

electronic tours provide a potential for additional income from licensing

performance rights to such shows for telecasts sometime after the so-

called "live" performances.

One day the electronic tour may become economically feasible, not just for major acts, but for artists struggling for recognition. But before

the freshman promoter becomes glassy-eyed contemplating huge prof-

its, it might be well to remember that most music lovers will probably continue to prefer seeing and hearing artists in the flesh.

PRODUCTION CONTROL

PERFORMANCE FACILITY (name/address/telephone/manager)

PERFORMANCE DATE/TIME

PRODUCER/PROMOTER/AGENT(S)

FEATURED ARTIST(S).

Road Manager

STAGE (size/risers/pit/stairs/curtains/exits,etc.)

LIGHTING (spots/borders/foots/dimmer/voltage/supplier/operator)

SOUND (supplier/technician/description)

DRESSING ROOMS (number/size/fumishings/condition/location)

LOADING DOCK (access/parking/security)

UNION JURISDICTIONS

Fig. 11.3

THEATRICAL PRODUCTION

PERSPECTIVE

The theatre has formed an integral part of music for centuries. Many of the master composers have experienced their greatest success in the theatre: Mozart, Wagner, Stravinsky, Gershwin. In Western civilization, "musical theatre" can be said to have started in the Jewish synagogue and the Roman church; most religious ceremony would be unthinkable without music. Much religious pageantry, of itself, is choreographed music.

Musical theatre's earliest patronage, in addition to organized reli-

gion, came from the aristocracy who built and operated theatres right on their own premises. Later, men of wealth, e.g., the merchants of Venice, the Medici of Florence, became enthusiastic patrons of the arts. By the seventeenth century, public opera houses began operat- ing, selling tickets (at about 50 cents each) to cover production costs. In the eighteenth century Handel, years before he scored his biggest

hit, Messiah, was hustling around London, buying and managing the- atres, booking talent, scoring, producing, conducting operas, even doubling as a pit musician (keyboards) in his own theatre. Competing musical shows, particularly The Beggar's Opera, eventually drove impresario Handel out of the musical theatre business, while other pro-

ducers, whose ears were more in tune with current taste, established a musical theatre tradition in London that flourishes to this day.

194 CHAPTER TWELVE

By the nineteenth century, musical theatres in Europe and this coun-

try, including everything from grand opera to minstrel shows, were flourishing, selling tickets, turning a profit. Early in the twentieth centu-

ry, opera and ballet production costs began to exceed box-office income, and the musical patron, the big giver, reappeared to keep

these art forms alive. f\/leanwhile, imported European operetta was being transformed in this country into such forms as the musical revue,

musical comedy an6, since Show Boat {^ 927), the musical play. In our own time, it is musical theatre that keeps Broadway and most regional theatres from going into bankruptcy.

Today nearly all music-making is, at least in part, musical theatre.

The most obvious examples are music videos. Audiences expect to have the musicians engage the eyes as well as the ears. Even the

symphony conductor choreographs a "dance," consciously or uncon- sciously, in front of the orchestra to attract the admiration of the paying

audience. The concert violinist or pianist choreographs the stage movements to impress listeners — at least all the star recitalists do; their stage presence is one of the principal reasons they become rec- ognized as stars.

In the pop field, the working musician has learned how to appear attractive to the audience. A performer without a sense of theatre prob- ably will not graduate from the small time and may spend most of a professional life working Saturday nights at the Elks Club. All success-

ful performers understand "musical theatre," intuitively or through

training. In this sense, rock and roll has been musical theatre ever

since Elvis and the Beatles showed everyone how much fun it could be to watch music. Some popular performers are criticized for offering on/y theatre, not music.

Commercial musical theatre has even infiltrated schools and col-

leges. Witness the thousands of young baton twirlers performing to

adulterated rock charts played by their school marching bands. The

school and college sports programs are directly bound up with com-

mercial musical theatre — through the football stadium halftime shows and other pageantry.

People love to hear music with their eyes. The theatrical, even show

business ingredients, so pervasive in contemporary music, are inextri-

cably bound up with the music business and permeate music-making,

from saloon to university.

TYPES OF MUSICAL THEATRE

If we apply a more traditional definition to musical theatre, we still dis- cover a great variety of expression. That piece of territory in New York known as Broadway has seen the production of contemporary music's

most treasured repertoire; it has been the working place for dozens of

America's most gifted composers, lyricists, playwrights, producers,

directors and performers. Broadway would have collapsed had it not

been for the musicals that kept it alive after 1945. Some Broadway musicals have produced more profit through record sales and publish-

THEATRICAL PRODUCTION 195

ing income than they ever generated through ticket sales. Performance licensing of Broadway musicals has been producing excellent royalties from these shows since the 1920s. Stage musicals of genuine quality demonstrate a staying power unique in most popular music. As Lehman Engel points out in his books on the subject, the musical that lasts and experiences periodic revivals possesses two essential ingre- dients: a good book and memorable songs.

Broadway musicals have always been the most expensive kind of production to mount. In 1950, a sumptuous production cost $200,000. Today a producer may have to raise $5 million or more to mount a first- class Broadway musical, and for most shows the investors could not expect to break even with a 52-week run: many musical plays do not start turning a profit until they have run two, even three years.

The reason costs are now out-of-hand is that stage production is a handcraft enterprise in a mechanized age. No matter how carefully a show is budgeted, a producer cannot increase the "efficiency" of live singers, dancers and musicians. The live audience may total only 1000 per performance, not the 20 million available on television. Since the costs of live musical production will continue to rise with an inflating economy, this popular medium may suffer ultimate demise without sub- sidy. Of course, the Broadway musical has enjoyed special kinds of subsidy for years. Investors have risked their money partly in antici- pation that the Broadway run is but a preliminary phase of the potential profitable life of a musical through original cast recordings, perfor- mance licensing, perhaps even movie rights. Broadway producers with track records like Harold Prince raise money easily. Some of them. Prince included, have a stable of investors always waiting to risk their money. Profits from a hit show compare favorably with a hit record. An investor who placed $1,000 with Harold Prince in 1954 to help mount Pajama Game, then let the money ride on Prince's West Side Story and Fiddler on the Roof sa^N that $1,000 grow to $30,000. And Prince doesn't even let his investors read the book or hear the music before- hand.

The death of Broadway has been predicted since the 1930s, but this lively tradition refuses to attend its own funeral. While most of the hits of the 1980s were imported from England — notably. The Phantom of the Opera, Les Miserables and Cats — more recently, home-grown musicals have shown a decided resurgence. Ironically, that revitaliza- tion was aided in part by the very success of those overseas produc- tions. Encouraged by the amount of money to be made by a hit, inves- tors have been more willing to take risks on new shows than they were for many years. Along with the increase of traditional Broadway pro- ductions, an organization called New Musicals was founded early in 1990 by Harold Prince and producer Marty Bell. Based at State Univer- sity of New York at Purchase, the enterprise's objective is the creation of full-scale productions of new works by experienced musical theatre authors, to be seen on Broadway and/or the regional theatre circuit and even internationally. Partners, including Capital Cities/ABC, Columbia Artists Management and Jujamycn Theatres, provided nearly $10 mil- lion for the first season alone. Such financial health and production

196 CHAPTER TWELVE

activity augur well for the future.

As rising costs began to reduce the number of shows mounted on Broadway, producers in the 1950s began to develop a theatrical move-

ment that came to be known as off-Broadway. This movement away from New York's ten-block theatre district centered on drama, particu- larly experimental theatre. It had minimal impact on musical theatre — until 1967, when Joe Papp, noted producer of the New York Shake- speare Festival, purchased an about-to-be-demolished library and reopened it as the Public Theater. Dedicated to the production of new plays by American writers, the Public's first presentation was Hair, which became the first successful rock musical and moved to Broad- way six months after its premiere. Going the same route some years later was Two Gentlemen of Verona. Unquestionably, the Public's most spectacular success came with A Chorus Line, which opened in 1975 and went on to become Broadway's longest-running musical ever.

Concurrent with the off-Broadway movement, American universities

began to increase their musical show production. Other regions of this country and Canada began developing indigenous theatre. At last, Broadway lost its monopoly on professional musical production. The movement is usually referred to as regional tfieatre, and it includes amateur, semiprofessional and fully professional productions. Actors,

singers and dancers now use university and regional theatres to learn their craft. These establishments help fill the void left by the death of vaudeville in the 1930s where, as the show business expression has it, a performer found "a place to be bad." Schools, colleges and regional

theatres now offer about the only training ground for aspiring profes- sional singers, dancers, actors and writers. They spawn most of the new television performers, some of the writers and producers.

Regional theatres find particularly strong public acceptance for

plays, dances and shows designed for children. Some children's the- atres will break even at the box office. Regional theatres that focus on

the classics, on experimental, noncommercial productions may receive financial support from the National Endowment for the Arts to help them stay alive and well. A growing number of producing organizations have made a commit-

ment to develop new musicals. For many years the Los Angeles Civic Light Opera has not only mounted sumptuous productions rivaling Broadway's best, but has occasionally produced a new musical, run it several weeks and then sent it to Broadway. This reverses the tradi- tional pattern, of course. Not only is Los Angeles the home ground for many artists connected with the recording, broadcast and film indus- tries, but its theatre community is burgeoning, making it an ever more

important force in mounting original musicals. In the neighboring city of

Pasadena, for instance, California Music Theatre was founded to cre- ate original works as well as rejuvenate lesser known existing shows.

An organization devoted to the promotion of new musicals is the National Music Theatre Network, based in New York. The network offers an evaluation service for composers, lyricists and librettists, at a

nominal cost, and holds monthly readings of new works. Also interested in the creation of new musicals is the National

THEATRICAL PRODUCTION 197

Alliance of Musical Theatre Producers, an association of about 65 pro- ducing organizations to present theatre on a cooperative basis. Any number of member companies pool their artistic and financial resources for one production of a show, rather than staging several separate productions of that same show.

For several years, Broadway has also experienced some competi- tion from dinner theatres that have sprung up all over the country. While in the mid-1970s more professional actors found work in this medium than on Broadway, by the mid-1980s dinner theatres had be- gun to decline, due mainly to the increased competition they encoun- tered for patrons' entertainment dollars, as well as inflated food costs.

Dinner theatres find that their biggest draws are productions of hit Broadway musicals. The public does not ever seem to tire of yet anoth- er production of Camelot or Carousel. Only very rarely do dinner theatres invest in the production of original musical plays.

Many of these theatres started out featuring stars or semi-stars. Since then, rising production costs have caused most dinner theatres to abandon that policy and now cast leading roles with stars of lesser stature or talented college students. But the kids get paid, and in this sense, dinner theatres can be considered part of the professional the- atre.

These establishments rarely have a proscenium stage. They mount their productions in-the-round, use blackouts for curtains, employ a minimum number of dancers on their small stages and put up with duo- piano accompaniment or a tiny pit band. Despite these limitations, some dinner theatres turn out very attractive shows.

Another component of musical theatre is the summer theatre, so popular across the country. Cities with particularly successful summer theatres are Chicago, Kansas City, Houston, Sacramento and Dallas. They mount proven Broadway musicals almost exclusively. Many of these productions are first-class. They usually hire name artists for the leads, support them with the best local talent (professional and semiprofessional singers-actors-dancers), and employ a full pit orches- tra of AFM musicians. Many summer theatres break even, perhaps even turn a profit, at the box office during their seasons, which may run from two to six weeks. Productions are mounted in old movie houses, community arts centers, parks, theatres and even tents. These produc- tions offer short-term professional employment but some of their performing alumni go on to careers on Broadway, television, recording and film.

Another important part of musical theatre is touring shows. Most Broadway hit musicals develop at least one road company that starts touring just as soon as the investors believe the public has heard about its New York success. Major hits have more than one New York-mount- ed road company which not only prosper on tour, but produce a lot of employment for singers, dancers and musicians. Road companies gen- erally tour with their own musical conductor, perhaps a percussionist and one or two lead players, then fill in the pit orchestras with a dozen to three dozen local AFM members. The producer or musical director uses local AFM contractors, perhaps through the local promoter, to

198 CHAPTER TWELVE

engage the pit musicians. The AFM local sets minimums for local venues, which are generally scaled to the size of the facility. A 1,000- seat theatre would probably have an AFfvl local minimum of a dozen to 18 musicians. Arenas and stadiums in larger cities have AFM mini- mums of 30 to 45 musicians. These "casual" jobs provide considerable supplemental income for musicians across the country, many of whom are otherwise employed as music educators or as members of local symphony orchestras. A significant part of musical theatre in this country is found in Las

Vegas and other entertainment centers where gamblers' losses finance lavish entertainments. The quality of the arrangers and players working in Las Vegas ranks with the best anywhere. A number of them were first drawn westward in search of work in Hollywood, then moved to Las Vegas and accepted steady employment there in preference to intermittent jobs in the Los Angeles area.

Until the late 1980s Las Vegas employed more live musicians, arrangers and copyists than all of Broadway. But the increasing use of

prerecorded showroom music prompted an extended strike by local musicians — in which they achieved substantial severance pay, but the casinos retained the option of using prerecorded music. Headliners

continue to perform with their own music directors and nucleus of musi- cians, augmented by local instrumentalists.

Another component of American musical theatre is the industrial show. When new products are introduced or national sales campaigns are being organized, companies like Ford and IBM hire a producer or a production company to create commercial entertainment packages designed to motivate and instruct their sales staffs. These shows are not open to the public and are scheduled in major cities where the cor-

poration pulls in its regional sales force. Industrial shows often have big budgets and offer seasonal employment for composers, arrangers, copyists, singers, dancers and instrumentalists. Writers and producers

of industrial shows are usually found among the group that also pro- duces broadcast commercials. Several major cities have production

companies set up to turn out the kind of shows major corporations want, e.g., Detroit, Chicago, Los Angeles, New York and Philadelphia.

Many amusement parks around the country present musical stage revues, particularly during the peak summer and holiday seasons. These are usually original shows themed to each individual park, but can also feature Broadway or contemporary hit songs. Cruise ships also offer original musicals and abridged versions of Broadway shows.

Classical and modern dance is a part of American musical theatre. Resident and touring companies offer at least seasonal employment for dancers and musicians who are engaged to accompany them. Most professional dancers belong to AGVA or AGMA. Many dance compa- nies perform to recorded music, and the AFM has been unsuccessful in reducing this practice which limits live employment of union musicians.

Any list of musical theatre types should probably include the field of athletics. School and college musicians do not perform at basketball

and football games on a professional basis, but their directors do — as do many of the arrangers. School and college purchases of printed

THEATRICAL PRODUCTION 199

music, combined with the performance licensing fees paid by arenas, stadiums, etc., constitute a level of activity involving millions of dollars.

Any publisher or music licensing organization that ignores this impor- tant source is losing out on a lot of income.

Further music business interests are observed in professional foot-

ball. Some NFL franchises either employ their own professional bands or invite (sometimes pay) school and college bands to entertain the sports fans at halftime and during time-out periods. All non-school musicians performing at NFL games are comprised of AFM members exclusively (local area musicians). The real money is generated by television broadcasts of the music. Since most broadcasts are either regional or national networks (sometimes international), music perfor-

mance income to copyright owners from this branch of athletics is considerable. Publishers and composers struggle each week of the season to persuade NFL band leaders to broadcast their music.

PRODUCTION, PERSONNEL

For almost every theatrical production, everything begins and ends with one individual, the producer. Usually, all employment and all income is initially generated through the producer's imagination and money. In musical theatre, the producer's work begins with acquisition of a "property," which is just as bad a word as "product," the term used in the record industry. A theatrical property might only be an idea for a show, or it could be a novel or dramatic play that the producer feels might form a basis for a musical production of some kind. If the produc- er locates such a property and negotiates with its owner an option to produce it within a specified period of time, there will be the challenge of trying to interest composers, lyricists and "book" authors (the term "book" is used in the musical theatre to describe the scenario and dia- logue of the musical drama; it excludes music and lyrics).

Producers are not the only individuals seeking musical show proper- ties. An influential director or aggressive agent can also put together a package, then seek out a producer to assume the overall responsibility of pulling the production together and mounting the show. Composers afflicted by the Broadway itch continually search various sources — novels, plays, even movies, for properties that they believe might form the basis for musical treatment. If they are successful in securing an option on a property, they then can take it to a producer.

If the musical is heading for Broadway, the producer must negotiate contracts with the author of the book, the composer and lyricist, in accord with standards and procedures set forth by the New York Dramatists Guild. The Dramatists Guild is powerful in controlling what gets on Broadway; its membership includes practically all important playwrights, musical show book authors, composers and lyricists active on Broadway.

The producer negotiates contracts with the show's author, composer and lyricist which specify what these writers are to receive in respect to salaries, royalties and subsidiary rights. The typical producer-writer

200 CHAPTER TWELVE

contract provides an option payment to be made during the period the show is being created, with an additional advance payment during rehearsals. Once the show opens, the writers normally receive equal shares from a "royalty pool," explained in further detail below.

These contracts also provide that when the show's producer is about to engage a director, cast, conductor, dance director and design- ers for costumes, scenery, lighting and sound, approval for these artists must first be obtained from the author, composer and lyricist (either by unanimous or majority vote, depending on the arrangement made by the particular individuals involved). Further, the producer can- not pull out a song or add one without the approval of the writers.

Concurrent with the effort to raise money for the show and sign the writers, the producer prepares at least a preliminary budget. One of the largest components of weekly running costs will be rental of the the- atre. A producer schedules production time after estimating the date for opening on Broadway, then tries to locate a suitable theatre. Most Broadway theatres are relatively small; the producer of a Broadway musical must locate a house that provides more than 1 ,000 seats in order to have sufficient capacity to generate adequate weekly box- office income. Broadway theatre owners know from long experience that the life expectancy of a new musical ranges from three hours to several years. They, too, must gamble with the show. A theatre owner is reluctant to sign a rental agreement with any but a reliable producer and will be more willing to risk tying up the theatre if the producer has a good track record, if the show's writers are well-known, if the cast includes a star. The rental agreement calls for the producer to reim- burse the theatre owner for all of the theatre's operating expenses — fixed costs such as utilities, heat and air conditioning, and the salaries of ushers, box-office staff and other personnel — plus a rental fee of five to seven percent of the weekly box-office gross receipts. It is evi-

dent that a Broadway musical must do near capacity business to stay alive.

Typical weekly running costs of a full-line musical show will include most, possibly all, of the following:

1- Royalty payments of 4.5 percent to 6.5 percent of the box-office gross, to the author, composer, lyricist, direc-

tor, choreographer and designers, drawn from a "royalty pool. " The royalty pool is a complicated method of figur- ing that allocates a certain number of percentage points to each individual involved, with a guarantee of $400 to $750 per point plus an allotment of the profits as calculat- ed every four weeks.

2- Salary (plus a weekly royalty) for the star.

3- Salaries for leading players (actors, singers, dancers).

THEATRICAL PRODUCTION 201

4- Salaries for the stage manager and assistant stage man- ager.

5- Salaries (based on Actors Equity scale) for supporting actors, dancers, singers.

6- AFM scale for the pit musicians and any musicians that might appear on stage.

7- Salaries for union stagehands, electricians (including audio technicians), carpenters, wardrobe personnel.

8- Office expense of the producer Contracts typically pro- vide for $1,0.00 to $1,500 a week for this purpose plus one to two percent of the box-office gross for a manage- ment fee.

9- Salaries for production assistants; retainers to PR per- sonnel; fees (or percentages) to theatre party promoters.

Even if the show is a hit, the producer and the investors will not begin to get any of their investment returned until these weekly running costs are met. One of the reasons investors continue to put their money into this high-risk field is that income from subsidiary rights sometimes will not only help crack the production nut, but exceed box-office revenue.

Production of professional shows outside of New York is now exten- sive. Production overhead may include most of the salaries paid to persons connected with Broadway musicals, but the rates are below those in New York, particularly for stagehands and electricians. The "off-off-Broadway" producer is in a very different position from the pro- ducer who puts together the money to mount a Broadway show: most regional theatres and dinner theatres do not really "produce" musicals, they reproduce them, they work only with proven material. Box-office success is almost guaranteed when a theatre announces a forthcoming production of, say, an Oklahoma! or a Fiddler on the Roof.

Regional theatre producers often function in that gray area between the fully professional and the semiprofessional. Actors Equity regularly negotiates agreements with regional and community theatres which permit Equity-scale members to perform in the same cast with non- Equity members. AFM is less lenient, except that theatre minimums (size of the orchestra required by the AFM) are generally within reason. Regional producers often receive production money from city govern- ments, light opera associations and regional arts councils.

Producers of material defined by statute as dramatic music — musi- cal plays, operas, etc. — are required to pay performance royalties to the copyright owners. These kinds of performance licenses, known as "grand rights" (see Chapter 7), are required for both amateur and pro- fessional productions.

MUSIC RCHANDISING

Definition of Terms — Words such as "merchandising," "marketing," "promotion," etc., are not always used with precision in the music industry

or in music business education. Some colleges call their music indus- try curriculums "music merchandising," but offer a curriculum as broad as

one named "music business studies," or "music industry," or "music man- agement." To add to the confusion of terms, many persons in the busi- ness limit their use of the term "music merchandising" to the licensing and

vending of musical souvenir items such as posters and T-shirts. This chapter covers merchandising as it deals with the promotion

and retailing of music-related products, including sheet music, books, magazines, instruments and accessory equipment. (Chapter 19 cov- ers merchandising of recorded music.)

The dollar volume of music merchandising here and abroad runs into the billions. No precise figures can be cited because of rapid changes in these markets, and because the industry's research and accounting pro- cedures are often inadequate.

Effective merchandising is dependent upon close cooperation of man- ufacturers, wholesalers, distributors and retailers. These enterprises offer employment for many thousands of persons. Positions are usually filled by individuals trained on the job, because our schools and colleges have lacked, until recent years, educational programs adequate to pre-

204 CHAPTER THIRTEEN

pare people for this kind of work. Many of those who are active at the re- tail level of music merchandising are musicians who need to supplement their incomes. It is interesting to observe that often musicians entering this field as an option to performing full-time discover that music mer- chandising becomes their number one choice for making their living.

SELLING INSTRUMENTS, EQUIPMENT

Merchandising instruments and equipment is a major part of the music business, totalling over $3.7 billion annually in retail sales through music stores. In the United States there are more than 57 million amateur in- strumentalists. These performers all need to be supplied with equipment and accessories. The American Music Conference has accumulated es- timates of just who plays.

Instrument Number of

Amateur Players (in millions)

Percent of Amateurs

Median Age

Piano 20.6 36 29 Guitar 18.9 30 28 Organ 6.3 12 31

Clarinet 4.0 6 18

Drums 2.9 6 16 Trumpet 2.9 5 16 Flute 4.0 5 20 Saxophone 1.1 3 24 Violin 2.3 4 26 Harmonica 1.7 3 40

Due to the ongoing massive growth in the electronic keyboards catego- ry, current accurate information is not available.

Source: American Music Conference.

Sales to Schools — Most instruments and equipment are sold to schools for their bands and orchestras. According to the National Center for Education Statistics, 90 percent of U.S. high schools offer music cours- es. The same study estimates that 32 percent of seniors had enrolled in music courses during their four years. A separate study concerning the percentage of elementary schools

served by music specialists, also commissioned by the National Center for Education Statistics, revealed that 45 percent of the schools were served on a full-time basis, 39 percent on a part-time basis, and 16 per- cent of the schools were not served at all.

MUSIC MERCHANDISING 205

DISTRIBUTION METHODS

Once the manufacturer has produced, it is necessary to distribute the products to the retailer as efficiently as possible. To maximize profits,

some manufacturers sell directly to retailers. This is sometimes called a "one-step" distribution method. The manufacturer may have a field force of salespeople who take orders. Very commonly, the retailer simply phones in the orders to the factory.

Other manufacturers use the "two-step" method of distribution: the factory gets orders from independent distributors who sell instruments and equipment to retailers. Some manufacturers maintain regional ware- houses to move products closer to the distributors and provide faster service. Many smaller producers sell to dealers through independent "manufacturers' representatives," who typically handle a multitude of re- lated lines and perform some of the functions of a distributor without actually purchasing or warehousing the products themselves. Some manufacturers use both the "one-step" and "two-step" methods in differ-

ent parts of the country.

There are firms which manufacture not only their own brand names, but instruments and equipment "privately labeled." A typical example might be a "Sears" clarinet actually manufactured by C.G. Conn Ltd., now owned by UMI (United Musical Instruments).

Instrument manufacturing, the Selmer Co.

206 CHAPTER THIRTEEN

Sales Leaders — NAMM, AMC and other trade associations commis- sion research in an effort to determine sales figures and market trends. While precise figures are hard to come by, it is possible to list the relative rankings of instrument types by category, based on dollar volume. Pi- anos and portable keyboards continue as sales leaders, as do fretted string instruments, such as guitars.

1- Pianos 7- Woodwinds 2- Fretted instruments 8- Percussion 3- Portable keyboards 9- Organs 4- Synthesizers 10-Brasses 5- Accessories 11 -Strings 6- Electric pianos/electronic

keyboards

Growth Areas — The greatest sales increases are occurring today in portable electronic keyboards, synthesizers, sequencers and a variety of electronic instruments still under development that defy classifica- tion. With the increasing use of microchip circuitry and the interfacing with increasingly sophisticated computers, current "state-of-the-art" syn- thesizers will be outmoded by tomorrow morning.

Even composers can now invoke the aid, not only of computers, but electronic machines that can instantly print out whatever the composer can dream up.

Music Software and MIDI — Most music synthesizers and computers can be locked together by patching cords from a socket on the back of the equipment called a MIDI port. MIDI stands for Musical Instrument Digital Interface. This simple patching job makes equipment interface (hardware and software) easy and inexpensive. MIDI ports can offer di- rect connection to the digital signals that control the synthesizers. Several synthesizers can be played at once from a single keyboard, pro- viding, in the studio or live performance, multitrack layers of sound.

The MIDI port makes possible a hybrid instrument capable of playing a relatively new kind of software: prerecorded music on computer disks ("diskettes"). They are linked to songbooks of pop albums. When the customer buys the printed music, a diskette compatible with a home computer is included. To use the diskette, owners must hook up their computers with a keyboard synthesizer and their audio system. The computer "reads" the prerecorded music on the diskette, feeds the data to the synthesizer, then the keyboardist can experiment with original ar- rangements, e.g., orchestrating parts for different "instruments." In addition, as each song plays, the corresponding notes and lyrics appear in color on the computer screen. If the keyboardist plays a wrong note, it will show on the screen as a mistake — but the music continues uninter- rupted. Some software not only provides this kind of interaction with the screen, but permits the manipulator to add video-like graphics to the mu- sic images.

MUSIC MERCHANDISING 207

These kinds of software/hardware interfacings are emerging at costs low enough to generate large sales for merchants, not to mention in- creased opportunities for creative musicians, amateur and pro, to let their imaginations roam. Additionally, quick-minded music educators are

discovering infinite ways to use these emerging technologies in class- rooms, studios and rehearsal halls.

CHANGING MARKETS

The market for instruments and equipment is comprised of three groups of customers, the smallest of which is the professional musician. The next largest group is comprised of the amateur, the music hobbyist — children and adults. The largest part of this market involves schools and colleges which host some 100,000 school ensembles. These music en- sembles, in turn, have an aggregate membership of several million young musicians. Their instruments, equipment and music are bought by the schools themselves and the individual musicians' families.

The market is changing. Because of shaky financial support for music and the other arts, our educational system turns out fewer informed lis- teners and fewer performers. So millions of kids now make their own music outside of school, resulting in dramatic sales increases for guitars, electronic keyboards and drums. AMC figures do still reveal a constant if slow rise for sales of woodwind, brass and string instruments. With funds often lacking for school music instructors, kids (and their parents) are turning to self-teaching materials using music books tied with audio and video cassettes.

National Association of Music Merchants (NAMM) — The most repre- sentative trade association for people selling instruments, equipment and accessories is the National Association of Music fvlerchants (NAMM), comprised of more than 2600 music retailers and 1200 suppli- ers and distributors. NAMM helps its members increase their business by providing training programs, supporting private and public music edu- cation and by generally promoting the benefits of music making.

The NAMM trade shows held twice yearly showcase music instru- ments, professional audio equipment and the latest in music electronics and software. NAMM provides educational sessions, sales and manage- ment seminars, industry publications and market research studies to its members.

American Music Conference (AMC) — AMC is another important trade association representing the interests of instrument manufacturers, pub- lishers, distributors and retailers. AMC states its goals: "To encourage active amateur music making and music education for people of all ages." AMC's annual publication, Music USA, is the most comprehen- sive summary available of market sales and trends in the musical instrument field.

208 CHAPTER THIRTEEN

SELUNG PRINTED MUSIC

RACKS, LEASED DEPARTMENTS

Most printed music is sold from racks or sheet music departments locat- ed in stores engaged in other kinds of retailing. The biggest seller among printed music editions is the popular song folio. Like the growth in the early 1960s of rack locations for records, folios are showing a similar ex- pansion, including such locations as bookstores.

The second important retail outlet for printed music is found in sheet music departments located in record stores and music instrument-equip- ment stores. Record stores now regularly sell printed editions along with records, CDs, tapes and accessories. Sheet music departments are often leased from the "host" store. The floor space may simply be subleased, or the host may charge a minimum rent against a percentage of printed mu- sic sales. Many retailers find that about 40 percent of their sheet music customers are over 30 years of age, and this group of buyers demon- strates a preference for musical styles much broader than rock and rolll

The print music merchant not only carries pop song folios but a much more varied stock, e.g., pop standards, individual sheet music, public do- main folios, how-to-play books for children and adults and vocal group pop charts. The largest sheet music operations also carry various edi- tions of popular classics, e.g., Mendelssohn's Songs Wittiout Words, Mozart sonatas, and Hannon-Czerny-type etudes. Print music mer- chants buy from jobbers who carry a variety of music publishers' lines. Racks are sometimes serviced by jobbers in establishments lacking full- time clerks. Inventory control for a print music merchant is challenging because of the great variety and quantity of merchandise, but computers can ease this problem.

EDUCATIONAL FIELD

The sale of printed editions in the fields of educational music and serious music is markedly different from pop. The music education repertoire is now so diverse and voluminous, most educators prefer to patronize the large regional dealers who stock major editions (and a lot of minor ones). These regional operations — some states may only have one to three serving the whole area — are often staffed by professional musicians and music educators.

Publishers attempt to presell educational materials through print ads in music education journals and through direct mail campaigns. Print mu- sic merchants in the educational field conduct a large portion of their business by mail, often priding themselves in getting phoned-in orders in the mail within a day or two. New customers are expected to place their orders only through official school district purchase orders.

Merchants operating large educational music stores also stock various kinds of serious music and church music — anthems, chamber music, symphonies, concert pieces, solo songs and oratorios. Since nearly all of

MUSIC MERCHANDISING 209

the classical repertoire is in the public domain, a variety of editions is

available. When a community orchestra director or church choir director wants works outside standard repertoire, the dealer will have to contact

the publisher to supply them on special order. Only the largest music

stores have in stock a broad selection of classical music and church mu-

sic. The market is just too small for retailers to assign the floor space for such slow-moving merchandise.

Larger print music retailers also stock music library supplies and vari-

ous accessories, sometimes including school band supplies. Retailers sometimes promote sales by sponsoring annual reading sessions of new editions at a music camp or local college campus.

Music Books — The biggest market for books on music is in the ele- mentary educational field. Huge quantities are sold to schools every year, and some publishers specialize in just this one field. Perhaps the next biggest sellers among music books, over the short term, are the popular accounts of the life and times of rock stars. Apart from these

short-term sellers, the next largest market share is in music appreciation

and music theory. Jazz history books also sell well. The increase in record industry technology courses is generating a sizable market for

textbooks in that field. Interest in textbooks in the music business is also

growing.

Another popular type of music book addresses the amateur songwrit-

er. Only a few are quality publications, the remainder relying on the

appeal to unsophisticated readers who only want to learn how to get rich quick writing hit songs.

The book publishing industry includes certain scholarly books on music, of interest to musicologists and college students working on grad-

uate degrees. W.W. Norton is the leading publisher in this field.

Music Magazines, Trade Journals — The publication and sale of mu- sic-related magazines and trade journals is an important facet of the music business. Musicians who write well can often find employment in this field — as reporters, reviewers or critics. We have two basic categories of music magazines — "popular" and

"professional." The most widely used professional trade journal is Bill- board, which calls itself "the international newsweekly of music and home entertainment." It is to the musician what the Wall Street Journal is to the stockbroker, almost "required reading" for professionals. Bill-

boards charts, although often criticized, have great influence in the record and broadcast industries.

Radio and Records is the second major recording industry publica- tion. Its airplay charts are followed avidly by most radio programmers

and record industry people. A trade magazine of lesser influence and cir- culation is Cash Box, which began its career focusing, as its title suggests, on the jukebox industry.

We have several semipro magazines focusing on recording technolo- gy; they attract a readership of audio technicians and record producers

(or, more often, persons aspiring to careers in these fields). The two most widely read publications of this kind are Mix magazine and Record

210 CHAPTER THIRTEEN

Engineer/Producer. Certain publications, of narrower focus, might be classified among the trades: Broadcasting, Amusement Business, Ad- vertising Age, Upbeat and many others.

Outside the professional trades field are the "popular" music maga- zines. Their goal is broad circulation. Probably the best known are Rolling Stone, Spin and Down Beat (although their readerships do include some professionals). Musician, owned by the publisher of Billboard, attracts a sizable following of serious fans as well as amateur and professional songwriters and performers. Hard rock/heavy metal publications such as Circus and Hit Parader target young males, many of whom play guitar, drums and keyboards.

Established professional musicians receive International Musician each month, for free, if they are members of AFM, the musicians' union. Members of the National Association of Jazz Educators receive, with their NAJE membership, free copies of the NAJE Educator. Arts administrators value the official periodical of the American Symphony Orchestra League, Symphony Magazine. Another publication. Programming, is the -journal for college concert promoters and talent agents.

Two music journals of a scholarly nature should be mentioned: Notes, read by music librarians, and the Journal of the American Musicological Society. For a more complete listing of the leading music magazines, see the bibliography at the end of this book.

TYPES OF STORES

What kinds of merchandise do music stores sell? The figures that follow are based on estimates provided by Musical Merchandise Review, a trade magazine covering the musical instrument business.

AMERICA'S 10,000 MUSIC STORES

Percentage of Stores

Merchandise Sold Carrying the Merchandise

Guitars, Other Fretted Instruments 80% Amplifiers 75% Synthesizers 75% Band Instruments 50% Pianos 30% Printed Music 30% Instructional Videos, Cassettes and Records 30%

These estimates must be read with caution. At first glance, it would ap- pear that most stores carry just about everything. This is not true. There are very few music supermarkets. Stores tend to specialize in one area, say, pianos and keyboards, then they may offer printed music too, but only a few editions, not a full department. A band instrument store may

MUSIC MERCHANDISING 211

report on a questionnaire that it also sells instructional software. This will

signify the availability of video and audio learning cassettes or some "play-along" recordings for students of improvisation.

KEYBOARDS — By far the largest business in terms of dollar volume is done by the stores specializing in the sale of pianos and electronic key- boards. Music merchants generally group pianos and organs under "keyboards." These stores require large initial investments in inventory and a lot of floor space. They often advertise free lessons for their instru- ment buyers. Most instruments are sold to beginners and near-beginners. A keyboard store invariably offers instrument maintenance, with a pi-

ano technician on its payroll full-time, not only to prepare instruments for sale, but to provide tuning services to customers. Old-line piano mer-

chants were reluctant to add electronic instruments, often viewing them as just machines, not musical instruments. But their views were quickly modified as they observed the rapidly growing market. Traditional piano stores now offer a variety of electronic pianos and keyboards. As sophis- ticated electronic keyboards were introduced to the marketplace, traditional home organ sales began to decline. Electronic keyboards con- tinue to be the main growth area for keyboard retailers due to their affordability and appeal to amateur musicians of all ages. This addition has brought to their stores many young rock and jazz musicians who re- gard electronic keyboards as indispensable to contemporary music performance. Only the largest keyboard stores have on staff fully quali- fied maintenance personnel for the various electronic instruments. Repair services on this kind of equipment are usually farmed out; quali- fied personnel are hard to find in many areas.

Many keyboard merchants offer rental agreements as an alternative to outright purchase. The most common arrangement is for the merchant to place the instrument in the buyer's home and offer several weeks' free lessons if the buyer rents for at least six months. Also added to the deal is a purchase option which normally includes application of some or all of the rental fee already paid. Lending institutions sometimes cooperate with merchants in financing these plans, thus reducing the amount of capital a merchant would need to offer these options to customers.

COMBO (GUITAR, DRUM) STORES — Nearly every community has at least one merchant engaged in the business of selling guitars and drums. These stores frequently become a hang-out for young musicians active in rock, country and pop music performance. Stores selling guitars also car- ry amplifiers and speaker systems, even audio mixing panels and PA systems. All but the smallest guitar-drum stores employ audio mainte- nance personnel, or they may provide such service by leasing out the department to a separate operator. Maintenance of guitar amplifying equipment can become a large part of a store's operation, because few manufacturers yet build equipment rugged enough to accept the abuse inflicted during transport.

Stores vending percussion equipment are almost invariably operated by a professional drummer who moonlights. The proprietor not only has firsthand knowledge of the kinds of accessory equipment drummers

212 CHAPTER THIRTEEN

THE GENERAL MUSIC STORE

1 PROPRIETOR / MANAGER

PROMOTION/ADVERTISING

Print/Broadcast Media

Point-of-Purchase Aids

Co-op Ads, Direct Mail

School/Teacher Contacts

PERSONNEL

Record/Tape Sales Mgr

Audio/Visual Sales Mgr.

Sheet Music. Mgr.

Studio Teachers

Sales Personnel

Service Mgr,

Instrument Repair Mgr

FINANCIAL MANAGEMENT

Banker

Acountant/Bookkeeper

Credit Manager

Fig. 13.1

need, but can assist with maintenance. Finally, percussion merchants of- fer lessons on the premises to amateurs and beginning professionals. Musicians visiting the guitar-drum store find it perhaps the best place in town to hear word of auditions and potential jobs.

BAND, ORCHESTRA, INSTRUMENTS — Merchants of wind, string and brass instruments operate much like guitar-drum store proprietors. One important difference is their clientele. Most general instrument stores seek, and often obtain, the business of the local school band and orches- tra directors. The educational field forms a large part of the business done by music stores.

Instrument stores normally carry three grades of merchandise. The least expensive models are recommended to beginners and parents who are uncertain whether the youngster will stick with the newfound toy. All merchants carry school-grade instruments, too. These are ruggedly con- structed, provide acceptable intonation, and are the type of instrument the merchant will normally use for rentals. As with the rent-purchase deals described above for pianos, band instrument merchants some- times build up a very large rental business. This kind of operation can get out of hand. Quite a number of merchants have been so successful renting instruments that they become overextended financially through the need to maintain a large inventory. A balance of rentals and sales is necessary, not only to maintain an acceptable cash flow, but the confi-

dence of bankers. The third level of merchandise includes the first-line instruments de-

manded by the professional artist. This kind of equipment costs at least twice as much as the economy and student models.

One of the strongest attractions of a musical instrument store is its re- pair shop — if it is a good one. It not only produces a profit, but pulls potential purchasers into the store, too.

The accessory business also attracts many customers, and profit mar- gins on this kind of merchandise are higher than for instruments. But

MUSIC MERCHANDISING 213

pilferage by customers and employees is a major problem. It is partly con-

trolled by the proprietor who almost invariably doubles as a salesperson. The busy time for music instrument stores is from 3 p.m. to 9 p.m.; after conventional stores have reached the closing hour, music stores keep

busy into the evening offering music lessons. As all store owners will attest, their toughest problem is locating quali-

fied help. It is not easy to locate clerks and salespersons who are not only well-informed, but have the kind of temperament suitable for dealing with the public.

Nearly all instrument salespersons divide their time between greeting customers and giving music lessons on the premises. In the larger com- munities, most music instrument salespersons and teachers are AFM members, and the stores become a kind of meeting place for the profes- sional musicians in the area.

CONSUMER AUDIO EQUIPMENT STORES — There are three levels of audio equipment — professional, semiprofessional and equipment for the home. Most sound systems purchased for home use are sold through audio specialty stores, because only they can show the great variety of products on the market. Local department stores do have a small share of this market, but usually for "low-end" products, not state-

of-the-art equipment. The Electronic Industries Association believes that factory sales to dealers for all audio products total $9 billion.

The hottest selling product in recent years has been the compact disc player. CD equipment for the home, when first introduced, was priced out of reach for most potential buyers. Then prices dropped sharply, and the market expanded enough to reduce sales of conventional sound re- producing equipment. Most listeners agree that digital technology helps make the compact disc a listening experience of the highest fidelity.

Increasingly sophisticated technology continues to make possible im- provements in other kinds of audio recording/reproducing equipment, including the trend toward miniaturization of amps and speaker systems. Fortunately for the stereo merchants, audiophiles never seem quite sat- isfied with last year's equipment. As ever new components appear on the market, consumers step forth to spend their money.

As with record retailing, price cutting among audio hardware mer- chants is endemic, even epidemic. Big chains periodically cut their prices in apparent attempts to wipe out smaller competitors. Sometimes they succeed. The mass buying available to chain stores makes possible a retail pricing policy that the mom-and-pop stores cannot match.

Semiprofessional Equipment — Some electronics shops vend what is known in the trade as semiprofessional equipment. This includes, for ex- ample, four to eight track recording machines, comparable mixers, low cost equalizers, electronic echo devices, and high quality amps. This line of merchandise, priced about 25 percent to 50 percent higher than con- sumer-grade equipment, is being bought in quantities by songwriters, performers and demo recording studio operators. While the semipro equipment is not engineered to stand up under the extended periods of use in fully professional studios, its recording and reproduction specs

214 CHAPTER THIRTEEN

come close to professional hardware — and most people cannot distin- guish the difference in audio quality between these two grades of equipment.

Like other music merchants, audio hardware stores do not seem able to solve equipment maintenance problems. Equipment is now so sophis- ticated, the fix-it-type repair person must often fake expertise on the way through the electronic maze. Stores that operate their own repair depart- ments are regularly insulted by customers indignant about inadequate repairs. The sales business is so good, in-house repair departments of- ten refuse outside jobs, struggling even to keep the equipment they sell in working order. Some proprietors prefer to farm out maintenance to electronic repair companies which are more likely to staff qualified per- sonnel. This works well for the customer who is prepared to wait weeks to get equipment repaired.

Stereo stores rarely sell professional audio equipment, the kind re-

quired for theatres and arenas. Professional systems of this kind are sold, installed and serviced by "sound companies" specializing in this kind of business.

STRUCTURING THE BUSINESS Music stores (and other kinds of music and non-music business enter-

prises) are operated according to the way they have been structured financially. In this nation's economy, a business enterprise can be orga-

nized in one of three ways:

sole proprietorship

partnership

corporation

MUSIC MERCHANDISING 215

Each of these forms of ownership has certain advantages of operation,

as well as certain disadvantages. An individual contemplating investment in a music store or any other kind of business venture should consider the

pros and cons of these three options.

SOLE PROPRIETORSHIP — The principal advantage of sole proprietor- ship is that it is easy to set up and get under way. All the entrepreneur

really needs is some money (personal or borrowed funds), a great amount of energy — and a lot of nerve. The sole proprietor who wants to get out fast can do that, too; there is no need to call a meeting of the

board to make decisions. An entrepreneur may venture forth largely be- cause of a dislike of working for someone else, and a satisfaction in being the boss. The proprietor runs the show, and enjoys the advantage of all the profits; no need to share them with anyone.

That's the good news. Now for the bad news: the sole proprietor is per- sonally responsible for all financial losses the business may experience. If our Horatio Alger runs out of money,the creditors can take possession of

all personal property, including a home — whatever there is of value. The sole proprietorship has the omnipresent problem of limited capital. Even if

the business is going well, the single operator may find it difficult to raise enough money to expand the business. The one-person operation will also be deficient in management capabilities; no one person can do ev- erything well. A whirlwind salesperson-manager can pull the company under if unable to understand basic accounting principles. Finally, the sole

proprietorship may have to cease operations suddenly if the owner-man- ager becomes physically or mentally disabled or goes through divorce or has to move away.

PARTNERSHIP — Partnerships are another form of business owner- ship. They are defined by the Uniform Partnership Act as "associations of two or more persons who operate a business as co-owners by volun- tary legal agreement." General partnerships are established when all partners involved carry on the business as co-owners. Limited partner-

ships (not permitted in some states) are composed of one or more general partners and one or more limited partners. A limited partner is one whose liability to the company is limited to the amount that person has invested in it. Joint ventures are a third type of partnership and are popular with investors who join together temporarily to undertake a short-term business enterprise, such as producing a show.

Partnerships offer certain advantages of ownership. First of all, they are easy to form. The partners should negotiate, at the outset, a written agreement which defines shares of ownership and spells out each part- ner's responsibilities to the firm. Partnerships are also likely to have, in

the beginning, more working capital than sole proprietorships. It is also likely that a firm where two or more individuals are active in management will have people with complementary skills. For example, one partner may be tops in sales, another may be adept at accounting.

The principal disadvantage of this form of organization is that the part- ners may disagree on how to run the business. Add to this the possibility that the partners may develop personality conflicts. And if the partners

216 CHAPTER THIRTEEN

reach an impasse, it is difficult for them to dissolve the company; dis- putes may arise over disposition of inventory and how outstanding debts are going to be paid.

CORPORATIONS — Where sole proprietors and partners are people, a corporation is a thing. The impersonal aspect of a corporation was set forth in 1819 by the Chief Justice of the United States John Marshall who observed that a corporation is ". . . an artificial being, invisible, intangible,

and existing only in contemplation of law." Corporations are separate le-

gal entities and they offer a number of advantages. The most obvious one is that management may have more money with which to work, par- ticularly if the corporation is public, meaning its ownership shares may be sold with few restrictions through a mechanism such as a stock mar- ket. Corporations may also have a diversity of managerial talents and the financial capability to buy in large quantities, thus reducing costs per

unit of doing business. Also, a shareholder knows that personal liability to the corporation is limited to the value of the stock the shareholder

owns. Even if the company folds, shareholders' personal property is not usually vulnerable to claims against the corporation.

Of the three types of business organization, the corporate structure is

the most difficult to set up, the slowest and most expensive to get into

operation. Each state charters corporations according to its own laws, and state and federal regulatory agencies burden management with costly paperwork.

Another disadvantage for investors in corporations is that they experi-

ence double taxation: they pay corporate taxes plus personal income taxes on dividends received from the corporation.

FINANCIAL MANAGEMENT

As with many kinds of businesses, financial management of a music store can be more critical than developing sales. Large numbers of mer- chants enter the field with inadequate backgrounds in money manage- ment and accounting. Frequently, a merchant will appear to be doing

good business but may in fact be losing money and not even know it. The financial record keeping was inadequate — or the entrepreneur had the information but did not know how to interpret it. This is probably the num- ber one reason so many businesses fail.

Many stores, large and small, have "cash registers" which double as computer input terminals. The salesperson punches up the transaction — and all the merchant's record keeping is recorded instantaneously — daily journal, ledger, and inventory. This information is vital in planning

future purchases as well as in controlling the finances of the business.

The small merchant, new to the game, may tend to mix personal fi- nances with those of the business. This is unacceptable to the auditors

and tax collectors. The store requires its own separate bank account and accounting procedures, including a separate checkbook. All receipts

should be recorded and deposited daily. Small cash transactions are

handled via a petty cash account. All stores employing two or more per-

MUSIC MERCHANDISING 217

sons are required to maintain complete payroll records. Forms appropri-

ate for this are available in stationery stores.

Just as critical to complete record keeping are the merchant's balance

sheet and P/L statements (statements of profit and loss). The balance

sheet shows the financial condition of the store at a given time, usually

TYPES OF BUSINESS OWNERSHIP

13.8 Million Source: Internal Revenue Service

Fig. 13.2 Sole Proprietorships Statistics of Income Projections

/ ^ TYPES OF BUSINESS OWNERSHIP

ADVANTAGES

Sole-Proprietorship Partnership Corporation

1 . You are the boss 1 . Simple to organize 1 . Limited personal liability

2. Easy to form, easy 2. Complementary 2. Maximum capital- to dissolve management skills ization

3. You retain all 3. Expanded capi- 3. Lower cost per

profits talization per unit of unit of doing

doing business business

DISADVANTAGES

1 . Very hard work 1 . Unlimited financial 1 . Expensive, compli-

liability cated to form

2. Unlimited financial 2. Potential conflicts of 2. Legal restrictions

liability authority

3- Management deficiencies 3- Potential personality 3- Double taxation

4- Limited working capital conflicts 4- Impersonal, in-

sensitive

5- Potential lack of continuity

of operation

V Fig. 13.3 i

218 CHAPTER THIRTEEN

at the close of business on the last day of each month and the last day of the year. It lists the assets and liabilities of the business and the own- er's eQu/fy (sometimes called "proprietorship"). A P/L statement summarizes the store's operation over a given period

and shows how much profit or loss resulted. It shows how much mer- chandise was purchased and sold, the cost of the goods sold, the gross margin, various types of expense, any income other than that from sales, and the profit or loss for the period. Merchants do not need to be CPAs, but they do need to know how to interpret P/L statements, for they tell the proprietor not only whether the business is currently making money,

but these essentials:

Current ratio — Does the business have enough current as- sets to meet its current debts, with a margin of safety for possible losses such as inventory shrinkage or uncollectible accounts? While not a firm rule, a 2:1 ratio is often recom- mended.

"Acid-test ratio" — Similar to the current ratio, but here the inventory is not included in the current assets — only cash on hand, government securities, and receivables. It helps an- swer the question, "If all sales revenue should disappear, could the business meet its current obligations with the readi- ly convertible, 'quick funds' on hand?"

P/L statements also help the merchant know how many days' sales are tied up in accounts receivable. And the proprietor and any other in- vestors can learn from the reading of a P/L statement just what return is being realized on investment in the store. The formula:

Return on investor's equity = Net profit

Net worth

One of the most critical issues facing a music store — or any retailer — is inventory turnover, the ratio of the cost of goods sold to average in- ventory (the cost of goods sold divided by the average inventory). A merchant must know how fast the inventory is moving. Few expenses can be more costly than wasting floor space on dormant stock.

Inventory turnover is a clear indicator of merchandising efficiency. The faster the turnover, the less capital is required in proportion to sales.

Less money must be borrowed; new merchandise can be acquired and sold more quickly.

Individuals desiring further information on financial management may contact the National Association of Music Merchants regarding its "Cost of Doing Business" survey.

PROMOTION

The proprietor who has invested money in a music store is not really alone financially. The investment is backed up by the far larger resources

MUSIC MERCHANDISING 219

of manufacturers of the lines sold there. Manufacturers invest huge sums every year, not only in production, but in sales promotion and advertising. They know that their prosperity, their very survival, is dependent upon their franchised retailers. Musical instrument and accessory manufactur- ers do all they can to presell the retail customer. They try to implant their brand name in the customer's mind before shopping begins. Many cus- tomers are presold through national advertising campaigns shouting the merits of particular products. These national campaigns must be supple- mented and localized by the retailer. One sales promotion device is the co-op, i.e., cooperative ad: the

manufacturer and the merchant share the cost. Another cooperative ef- fort develops when the manufacturer supplies point-of-sale items for the merchant to display in the store — signs, banners, streamers, show cards, special display racks, window dressings, etc. Some stores regu- larly festoon their premises with these point-of-sale stimuli. Manufacturers normally supply these items without charge.

School and college musical directors are among the biggest buyers of instruments and equipment. Retailers find that these customers are often presold by contacts made by instrument manufacturers. Manufacturers display their wares to educators at professional meetings and conven- tions. These contacts sometimes develop direct factory sales that are credited to the teachers' local music store. Manufacturers often employ well-known performers as goodwill ambassadors to attend these con- ventions and music clinics, representing themselves, as is sometimes true, as users of the firm's instruments. Some firms supply the profes- sional services of these clinicians to schools for benefit concerts, further developing goodwill for the firm and its products.

Local instrument merchants supplement these national promotions with their own advertising. Well-established retailers set annual ad bud- gets. Small stores will advertise when they can find the working capital to do so. Larger advertisers employ advertising agencies to write and place ads. But most small ads are poorly produced and ineffective, whether handled by an agency or the retailer. Proprietors are well-advised to study advertising, if only to learn if their money is being wisely spent.

Music store sales promotion is often most effective through direct con- tact with potential customers. Retailers seeking sales to schools regularly dispatch field salespersons to call on educators. In smaller communities, it is the store owner who gets out and around the county drumming up business with schools and colleges. The objective is not only to sell to the schools but to create awareness among students that a particular store handles good merchandise and treats customers well.

Even more direct contact with potential customers occurs on the floor of the store when a family walks in to the shop. The youngster or the family may have dropped in to get something repaired — and left with a new Selmer alto. Many large sales develop through a store's offering music accessories. Accessories offer high markup, draw a variety of customers into the store and then cause them to return, for most acces- sories are expendable and need replacement.

While some merchants cater largely to young musicians and school sales, most retailers also seek the business of professional musicians.

220 CHAPTER THIRTEEN

They not only buy the higher-priced professional instruments and equip- ment, but they can be the store's most effective sales force — for nearly all professionals, even semiprofessionals, have pupils who need a rec- ommendation on where to shop. Professionals who frequent a music store also use them for communication centers ("I need a drummer for Saturday night. Know anyone who can do the gig?"); ("John Doe's re- hearsal band is meeting Tuesday night this week. Will you help pass the word?").

In stores of all sizes, it appears that the most successful music mer- chants are those who are visible in their communities. It behooves them to be on good terms, not only with their bankers, but with other individu- als and institutions in their area who help make the community a better place to live. The motivation may be altruistic. The result could mean more business.

ARTS ION

THE SERIOUS MUSIC MARKET

The operation of symphony orchestras, opera and ballet companies con- stitutes a very large portion of the music business. The pop field gets most of the publicity, but some segments of the serious music field have experienced more rapid growth in recent years than rock. The production and purveyance of serious music has traditionally been separate from pop. This is because the artists and administrators generally come from different backgrounds and pursue different goals. The production and consumption of serious music today is really big business, and the artists and managers in pop and serious music are, more often than not, engaged in very similar kinds of work. "Crossing the line" is an everyday occurrence. Individuals qualified to function in the world of 'art music" often end up in "commercial music." Some who start their careers in one of the pop fields may find themselves working for a symphony orchestra or perhaps in church music.

It is difficult to set forth precise definitions for such carelessly used terms as "popular," "classical," "art music" and "serious music." The con- fusion prevailed long before the 1924 premiere of George Gershwin's so-called "symphonic jazz" composition. Rhapsody in Blue. Disputes about the correct way to classify music will continue. But to provide a framework for an understanding of the present chapter, the terms "seri- ous music," "classical music" and "art music" will be used interchange- ably and include the repertoire generally associated with the symphony orchestra, opera, ballet, recital, modern dance, choral and church music.

It is customary to distinguish between pop and serious music by de-

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ARTS ADMINISTRATION 223

scribing the former as "commercial" or profit-oriented, and the latter as nonprofit. Here again we find a lot of "crossing the line." But to keep things simple, that customary point of view will prevail here in a discus-

sion of arts administration.

The quarter-century from the 1960s to the mid-1980s saw an unpre- cedented growth in the arts in America. The number of professional sym- phony orchestras and opera/music theatre companies nearly doubled in the 1960s, and in the 15 years preceding 1985, ballet and modern dance companies burgeoned from 30 to more than 150. In those 15 years there was also a dramatic increase in arts performances, employment of ar- tists and arts administrators, and attendance at arts events.

But that encouraging picture had changed by the end of the 1980s. Performing arts organizations continued to proliferate —there were near- ly 900 opera companies, more than 200 of which had high operating budgets, as well as 98 more middle-level symphony orchestras than had existed 20 years earlier. But a number of orchestras had experienced severe financial problems, some to the point of canceling seasons or declaring bankruptcy. These travails were due to such factors as fundraising difficulties—caused in part by government and foundation cutbacks and increased corporate takeovers—and a new toughness in contract negotiations between orchestra musicians and management.

Further, attendance at most arts events had declined. According to a survey called "Americans and the Arts," conducted periodically since 1973 by Louis Harris and Associates, attendance at opera and musical theatre had fallen 38 percent between 1984 an 1988; classical music concerts, 26 percent, and ballet, 25 percent. The primary reason given was a decline in leisure time, especially with the rise of two-income fami- lies. Other factors included the lack of nearby arts facilities and performances, high ticket prices and even difficulty in finding parking places. While these figures don't tell the whole story—they are based on a cross-section of only 1501 adults, and at least one other survey dis- putes the results (a Central Opera Service poll showed a 33 percent increase in opera attendance in that same time period), the study does provide an opportunity to compare results obtained by consistent meth- ods over an extended period of time.

Whatever the exact figures, arts organizations, especially orchestras, have begun aggressive marketing campaigns to replenish dwindling audiences. Their major targets are the "baby boomers," perceived to have larger discretionary incomes than other segments of the popula- tion. Marketing techniques include more emphasis on contemporary programming, singles concert and opera events, informal pre-concert lectures, and multi-media performances incorporating film clips and slide shows. The now-common use of English supertitles for operas has made that art form more accessible to audiences of all ages.

Though audience attendance may now be on a downswing, television viewing of the arts has increased. Indeed, the exposure afforded by the medium, particularly through the Public Broadcasting Service (PBS) and the Corporation for Public Broadcasting (CPB), was influential in the ear- lier amazing growth of interest in the symphony, opera and dance. There have been sponsored weekly radio broadcasts of the Metropolitan Opera

224 CHAPTER FOURTEEN

for decades, as well as of symphony orchiestras (San Francisco, Seattle, Los Angeles, Chicago, among others). Telecasts of the Boston Pops and Boston Symphony have drawn audiences of millions. Imaginative pro- ducers such as Emmy Award winner Allan Miller have found ways to make symphonic music look interesting on film and TV. Cable, too, has gotten into the arts act, with such channels as the Arts & Entertainment Network and Bravo.

This widely expanded exposure of serious music via radio and televi-

sion has increased the sale of symphonic, opera and ballet recordings.

Royalties from sales constitute a significant segment of the annual incomes of such orchestras as Cleveland, Boston, New York, Philadel- phia, Chicago, Los Angeles and even the Utah Symphony.

The familiar claim that record companies must continue to record only

European orchestras to make a profit is not necessarily true. The skill of American orchestras often makes possible the completion of master takes in one-half the time of most European orchestras. Thus, compa-

nies can still meet the much higher union rates in the United States. The AFM recording policy states that all members of the orchestra are guar- anteed payment for the first two hours of each recording session, but

that only those players whose services are actually required are paid for the entire session.

Some serious music recordings, particularly the repertoire called "con- temporary serious music," cannot profit or break even. An important group of recordings of this repertoire is found on the CRI label (Com-

posers Recordings Inc.). CRI limits its releases exclusively to contem-

porary serious music. A non-profit corporation set up by the American Composers Alliance (which is no longer associated with the label), CRTs growth can be attributed to its expanding foreign sales and to its rapidly

increasing number of record store outlets. It has a large standing-order

list of schools and libraries. Another such non-profit label is New World Records, which offers works by American composers and focuses on

serious contemporary music.

Innovative marketing methods have greatly expanded the sale of clas-

sical music. For example, the Metropolitan Opera Guild is now using a direct mailing list of 650,000 persons known to be lovers of opera. The selling campaign, part of "The Met By Mail" project, publicizes opera

videos, recordings on the Met's label, books and opera-related gifts.

As a rule, classical music recordings have not been big sellers. In the

1960s, Stravinsky complained that sales of records of works he had writ-

ten after 1920 rarely exceeded 5,000 copies. These pieces—even of the world-famous composer—lost money. But in 1977, when RCA released a recording of Stravinsky's Firebird baWeX suite (premiered in 1910), the

label was able to move 100,000 copies. Sales of serious music at this level were unheard of until the 1970s, when RCA and many other labels learned how to promote and package releases appealing to buyers who formerly limited their purchases to pop music. We now have the "cross- over" record in the classical field reaching expanded markets worldwide.

As pointed out in coverage of the recording industry, one of the strongest

markets for crossover records is with movie music—sound track music appeals to both classical and pop music fans here and abroad.

ARTS ADMINISTRATION 225

REPRESENTATIVE ORGANIZATIONS

The world of serious music and arts administration includes a number of important organizations that represent the special interests of profes-

sionals in the field. In respect to unions and guilds representing artists in the classical field, see Chapter 8. A number of other important organiza- tions—not necessarily "guilds," despite some of their names, are listed below.

College and church organists are represented by the American Guild of Organists. The special interests of composers in the classical field have been served, since 1937, by the American Composers Alliance. Its American Composers Edition serves as a music publisher for its mem- bers, making scores and parts available through loans, rentals and sales to colleges, universities, symphonies and opera companies. ACA mem- bers are affiliates of BMI, for ACA is a publisher affiliate of BMI. For many years, American composers have been active in the U.S. Section of the International Society for Contemporary Music, formerly called the League of Composers. Founded by Aaron Copland and other distin- guished American composers, this group has fostered public acceptance of contemporary serious music by offering concerts, goodwill and publici- ty. Another organization devoted to the promotion of contemporary music

is the American Music Center, which provides composers and perform- ers with assistance and information on career development, funding, performance and study opportunities and numerous other concerns; maintains a library of 27,000 scores available for circulation worldwide,

and sponsors an American Music Week each November. The professional organization most representative of opera is Opera

America, headquartered in Washington, D.C. It assists opera companies with audience research, fund-raising ideas, education and training of opera managers and stage directors, and sponsors a program designed to increase the development and production of new American operas. Another organization helpful to opera in the area of research is Central Opera Service, an arm of the Metropolitan Opera in New York City. Pro- fessional music critics have formed the Music Critics' Association, which includes in its membership a large number of major critics. The Ameri- can Council for the Arts (formerly. Associated Councils for the Arts) forms a useful clearing house for information and ideas relating to state and regional arts council activities. The country's only national all-arts advocacy organization, the American Council for the Arts publishes use- ful pamphlets and books on arts administration.

Arts administrators have organized the Association of Performing Arts Presenters (formerly the Association of College, University and Commu- nity Arts Administrators). Educators in that field are represented by the

Association of Arts Administration Educators.

An umbrella organization of broad scope is the National Music Coun- cil, chartered by Congress in 1956 to serve the interests of commercial and non-commercial music associations throughout the United States. It has some 50 member organizations which represent, in turn, an aggre- gate membership of some 1.5 million members. A partial list of its member-organizations indicates the scope of NMC: ACA, AFM, AGMA,

226 CHAPTER FOURTEEN

ASCAP, ASOL, BMI, CMA, MPA, NAJE, NASM, NFMC, NMPA, RIAA and SESAC. The National Music Council has been designated the offi- cial U.S. representative to the International Music Council, a UNESCO-sponsored organization of national and international music committees which holds a biennial general assembly to discuss issues of

musical importance. (The International Music Council has commissioned

a multi-volume book, The Universe of Music, which is expected to take

20 years to write—it is scheduled for completion in 1999!) AMERICAN SYMPHONY ORCHESTRA LEAGUE In the field of serious music, the largest audience is for symphonic mu-

sic. In the United States are found over 1,500 symphony orchestras, probably one-half of the world's total. Some two-thirds of these are band- ed together in the American Symphony Orchestra League. The ASOL, headquartered in Washington, D.C., is a nonprofit corporation with a

strong professional staff. ASOL's annual conventions draw 1 ,800 enthu- siastic delegates from all over the country. The organization receives most of its support from members' dues which, in turn, are scaled according to the size of the orchestra's annual budget. ASOL is research-oriented and serves as a data gathering, data distribution agency for its members who are interested in arts administration, audi- ence building and fund raising.

One of the most useful services provided by ASOL is educational. Each year, the league staffs and sponsors regional workshops. Profes-

sional managers, symphony board members, conductors and volunteer workers attend these meetings to learn from experts how to function more effectively in their own communities. In recent years ASOL has devoted increasing attention to the needs of orchestra conductors and

trustees. It offers annual workshops and symposia with leading conduc-

tors, and its Department of Trustee Services provides training programs

and services to orchestra trustees and presidents. ASOL also sponsors Orchestra Management Seminars where current and aspiring orchestra managers attend classes for eight days of intensive study on how to run a professional symphony orchestra. ASOL receives partial support of its educational activities from the National Endowment for the Arts. ASOL offers what it caJIs Service Memberships for conductors and

orchestra managers who want to exchange information concerning job openings in the symphonic field. ASOL does not run a placement ser- vice, but provides useful information to its members which often leads to employment. The league's publication, Symphony Magazine, published six times a year, provides timely information to professionals and ama-

teurs interested in the life and times of symphony orchestras. One of the most important components of the ASOL is its Volunteer

Council. The Council publishes each year the Symphony Gold Book, an invaluable collection of information on how volunteers can raise money, sell tickets and organize educational and community projects.

Orchestra Classifications—ASOL classifies orchestras by the size of their annual operating budgets and expenditures for artistic personnel. In

ORCHESTRAS BY CATEGORY

Orchestras having filed the comparative statistical report as of December 1 5, 1 989

4 ORCHESTRAS WITH BUDGETS IN EXCESS OF $1,000,000

Alabama Symphony Orchestra AL Atlanta Symphony Orchestra GA Austin Symphony Orchestra TX Baltimore Symphony Orchestra MD Boston Symphony Orchestra MA Buffalo Philharmonic Orchestra NY Charlotte Symphony Orchestra NO Chattanooga Symphony Orchestra &

Opera Assn IN Chicago Symphony Orchestra IL Cincinnati Symphony Orchestra OH Cleveland Orchestra (The) OH Colorado Springs Symphony

Orchestra CO Columbus Symphony Orchestra OH Concerto Soloists Chamber Orchestra PA

Dallas Symphony Orchestra TX Dayton Philharmonic Orchestra OH Delaware Symphony Orchestra DE Denver Symphony Orchestra CO Des Moines Symphony Orchestra lA Detroit Symphony Orchestra Ml Fairfax Symphony Orchestra VA Florida Orchestra (The) FL

Florida Symphonic Pops FL

Florida Symphony Orchestra FL Florida West Coast Symphony FL

Fort Wayne Philharmonic IN Fort Worth Symphony Orchestra TX Grand Rapids Symphony Orchestra Ml

Handel & Haydn Society MA Hartford Symphony Orchestra CT Honolulu Symphony (The) HI Houston Symphony Orchestra TX Hudson Valley Philharmonic NY Indianapolis Symphony Orchestra IN Jacksonville Symphony Orchestra FL Kansas City Symphony MO Kitchener-Waterloo Symphony ON Knoxville Symphony Orchestra TN Long Beach Symphony Orchestra CA Long Island Philharmonic NY Los Angeles Chamber Orchestra CA Los Angeles Philharmonic CA Louisville Orchestra (The) KY Memphis Symphony Orchestra TN Milwaukee Symphony Orchestra Wl Minnesota Orchestra MN Montreal (Orchestre symphonique de) PQ Music of the Baroque IL

Nashville Symphony Orchestra TN National Arts Centre Orchestra ON National Symphony Orchestra DC New Haven Symphony Orchestra CT New Jersey Symphony Orchestra NJ New Mexico Symphony Orchestra NM New Orleans Symphony Orchestra LA New World Symphony FL New York Philharmonic NY Oklahoma City Philharmonic OK Omaha Symphony Orchestra NE Oregon Symphony Orchestra OR Pacific Symphony Orchestra CA Philadelphia Orchestra (The) PA

Philharmonic Orchestra of Florida FL

Phoenix Symphony Orchestra AZ Pittsburgh Symphony Orchestra PA Portland Symphony Orchestra ME Puerto Rico Symphony Orchestra PR Rhode Island Philharmonic Orchestra Rl Richmond Symphony (The) VA

Rochester Philharmonic Orchestra NY Sacramento Symphony Orchestra CA Saint Louis Symphony Orchestra MO Saint Paul Chamber Orchestra MN San Antonio Symphony Orchestra TX San Diego Symphony Orchestra CA San Francisco Symphony CA San Jose Symphony Orchestra CA Savannah Symphony Orchestra GA Seattle Symphony Orchestra WA Shreveport Symphony Orchestra LA Spokane Symphony Orchestra WA Springfield Symphony Orchestra MA Syracuse Symphony Orchestra NY Toledo Symphony Orchestra OH Toronto Symphony (The) ON Tucson Symphony Orchestra AZ Tulsa Philharmonic Orchestra OK Utah Symphony Orchestra UT Vancouver Symphony Orchestra BC Virginia Symphony (The) VA West Virginia Symphony Orchestra WV Wichita Symphony Orchestra KS Winnipeg Symphony Orchestra MB Winston-Salem Symphony Orchestra NC

^ ORCHESTRAS WITH BUDGETS BETWEEN $240,000 - $1 ,000,000

Akron Symphony Orchestra OH Albany Symphony Orchestra NY Amarillo Symphony TX Anchorage Symphony Orchestra AK Ann Arbor Symphony Orchestra Ml Asheville Symphony Orchestra NC Arkansas Symphony Orchestra AR Bakersfield Symphony Orchestra CA Baton Rouge Symphony Orchestra LA

Bay Area Women's Philharmonic CA Bellevue Philharmonic Orchestra WA Binghamton Symphony and Choral

Society NY Boise Philharmonic ID

Boulder Philharmonic CO Brevard Symphony Orchestra FL Greater Bridgeport Symphony

Orchestra CT Canton Symphony Orchestra OH Cape Cod Symphony Orchestra MA Cedar Rapids Symphony Orchestra lA Duluth-Superior Symphony Orchestra MN Eastern Connecticut Symphony CT El Paso Symphony Orchestra TX Elgin Symphony Orchestra IL Erie Philharmonic Orchestra PA Eugene Symphony Orchestra OR Evansville Philharmonic Orchestra IN

Fargo-Moorhead Symphony Orchestra MN

Flagstaff Symphony Orchestra AZ Fresno Philharmonic (The) CA Green Bay Symphony Orchestra Wl Greensboro Symphony Orchestra NC Greenville Symphony Orchestra SC Harrisburg Symphony Orchestra PA Illinois Philharmonic Orchestra IL

Johnstown Symphony Orchestra PA

Kalamazoo Symphony Orchestra Ml

Lake Forest Symphony Orchestra IL

Lansing Symphony Orchestra Ml

Lexington Philharmonic Orchestra KY

Lima Symphony Orchestra OH Lincoln Symphony Orchestra NE Lubbock Symphony Orchestra TX

Mansfield Symphony Orchestra OH Mann Symphony Orchestra CA Midland-Odessa Symphony and

Chorale TX

Mississippi Symphony Orchestra MS Modesto Symphony Orchestra CA Monterey County Symphony Orchestra CA Napa Valley Symphony Association CA Nassau Symphony NY National Chamber Orchestra Society MD New Hampshire Music Festival NH New Hampshire Symphony Orchestra NH New Orchestra of Westchester NY Orchestra New England CT Owensboro Symphony Orchestra KY Pasadena Symphony Orchestra CA Peoria Symphony Orchestra IL Philharmonia Baroque Orchestra CA Reading Symphony Orchestra PA Redlands Symphony Orchestra CA Riverside County Philharmonic CA Roanoke Symphony Orchestra VA Rochester Symphony Orchestra MN San Diego Chamber Orchestra CA Santa Barbara Symphony Orchestra CA Sioux City Symphony Orchestra lA South Carolina Philharmonic & Chamber

Orchestra SC South Dakota Symphony SD Springfield Symphony Orchestra IL Terre Haute Symphony Orchestra IN Ventura County Symphony Orchestra CA Vermont Symphony Orchestra VT Virginia Beach Pops VA Waterloo-Cedar Falls Symphony

Orchestra lA

Western Piedmont Symphony NC Westfield Symphony Orchestra NJ Wheeling Symphony Orchestra WV

4 ORCHESTRAS WITH BUDGETS BETWEEN $140,000 - $240,000

Altoona Symphony Orchestra PA Annapolis Symphony Orchestra MD Bay Chamber Symphony Orchestra CA Beaumont Symphony Orchestra TX Billings Symphony Orchestra MT Breckenridge Festival Chamber

Orchestra CO Colonial Symphony NJ Dubuque Symphony Orchestra lA Fort Smith Symphony AR Fox Valley Symphony Wl

Great Falls Symphony Association MT Jackson Symphony Orchestra Ml Lafayette Symphony IN Macon Symphony Orchestra GA Mesa Symphony Orchestra Assn AZ Muncie Symphony Orchestra IN

Nashua Symphony Orchestra NH Nebraska Chamber Orchestra NE Oshkosh Symphony Orchestra Wl Greater Pensacola Symphony Orch FL

Prince William Symphony Orchestra VA

Richmond Symphony Orchestra IN Rogue Valley Symphony OR Saint Joseph Symphony MO San Angelo Symphony Orchestra TX Tacoma Symphony Orchestra WA Tallahassee Symphony Orchestra FL Traverse Symphony Orchestra Ml Waterbury Symphony Orchestra CT Yakima Symphony Orchestra WA

228 CHAPTER FOURTEEN

1989, the managers of orchestras long designated as "major"—those with annual operating incomes exceeding $3.4 million; "regional"

—

incomes between $950,000 and $3.4 million, and "metropolitan"—in- comes between $265,000 and $950,000—voted unanimously to reorga- nize. They felt that those appellations carried an implicit statement about the orchestras' relative success and quality rather than simply being an

indication of dollars and cents. The three designations were replaced by seven categories, ranging from "Orchestras with a total annual budget of

$8 million or more and artistic personnel expenses of $4.5 million and

above," to "Orchestras with a budget total of $240,000 to $399,000 and

artistic personnel expenses of $100,000 to $229,000." The other cate- gories remained the same: urban, community, college and youth.

The highest-budgeted orchestras—generally, those with annual bud- gets of $3.4 million and up—provide their 75 to 110 contract musicians with the primary source of the players' income. Among these orchestras are "the big five"—New York, Boston, Philadelphia, Chicago and Cleve- land (some music critics have stated that the "big five" should be re-named "the big six" to include the Los Angeles Philharmonic)—each of which has at least 100 AFM musicians under 52-week contracts. Sev- eral orchestras just below these ensembles provide contracts almost as attractive. It should be noted that all of these orchestras sign contracts

with some 60 percent to 90 percent of their musicians for salaries above the minimum union scale.

Orchestras that are unable to offer their musicians a sufficient annual

salary vie with each other for the best available players. While we have a surplus of qualified wind and percussion performers, the best of these

are sought after by orchestras that can offer only small annual wage guarantees. In order to attract the best musicians to these orchestras

with smaller budgets, communities have developed a technique of offer-

ing "security employment" as a sideline: the orchestras line up musical

work or extramusical jobs in their communities, full- or part-time, in order

to aggregate a respectable annual income for the musicians imported.

For example, a small community might line up a full-time job for a good

bassoonist who would work during the week as a piano salesperson, and would be available for evening rehearsals and weekend concerts with the community orchestra—which might be unable to pay anything at all for those musical skills. Another community might be able to pay an

imported bassoonist $5,000 a year as a musician, then line up a job for

that person with local industry. These moonlighting package deals may not have been the artistic goal of a Juilliard graduate, but they are more

attractive than abandoning professional music altogether. Among our orchestras in smaller communities, it is these kinds of arrangements that

make possible professional and semiprofessional ensembles of genuine quality.

FUNDING THE ARTS

It is not generally understood that even the best-managed arts organization cannot expect to break even at the box office. All sym-

ARTS ADMINISTRATION 229

phonies, opera and ballet companies, no matter how efficiently run, are unable to earn sufficient income to cover their expenses. Simply stated, all real arts organizations are dependent upon outside funding for sur- vival. This has been true at various times throughout history. Among the earliest patrons of the arts were the church and the nobility. Concurrent with patronage of this kind, artists occasionally earned part of their liveli-

hood from municipal and national governments. When public theatres and concert halls increased in number in the seventeenth and eighteenth centuries, money generated by ticket sales to the middle class helped support musicians. Concurrently, persons of individual wealth supported

the arts. In modern times, arts "societies" were formed by patrons to organize financial backing for orchestras and opera companies. Ameri-

can arts organizations for generations have enjoyed large gifts from wealthy individuals. But when the federal tax laws changed and limited unrestricted giving to arts organizations, our orchestras and opera com- panies began to experience serious financial difficulties. Today, the tax laws are such that large gifts from wealthy individuals are infrequent.

Performing arts organizations can manage to earn, on the average, only about 40 to 50 percent of their costs of operation. This means that symphonies, opera and ballet companies must raise, on the average, 50 to 60 percent of their budgets from sources other than the box office. If this were not difficult enough, the gap between earned income and over- head continues to widen, due to inflating costs. Ticket prices could be raised high enough to cover all overhead, but if they were, the Business Committee for the Arts has estimated that prices would then be out of the range of most patrons.

Offering more performances each season is not the answer either

—

for two reasons. First, most of our performing groups are already sched- uled to capacity. Second, when an arts group adds a performance, it in- creases its operating indebtedness. Here is a classic "Catch-22" sitution:

the greater the number of services provided, the greater the financial loss incurred.

In Europe, symphonies and opera companies enjoy large governmen- tal subsidies. This is such a strong tradition there that music lovers do not have to worry whether their symphonies and opera companies will survive from year to year. Governmental support of the arts in the United States has been near zero throughout most of our history, but in the late 1960s it increased measurably, and continued to rise through the 1970s. In the early 1980s, the impact of a more fiscally conservative administra- tion and Congress began to be felt in reduced federal funding for the arts, which continued to decline through the decade.

NATIONAL ENDOWMENTFOR THE ARTS The federal agency most directly concerned with helping the creative and performing arts in this country is NEA, the National Endowment for the Arts. In 1965 Congress established the National Foundation for the Arts and Humanities. Within the Foundation were established two agencies

—

the National Endowment for the Arts and the National Endowment for the Humanities. In 1966, Congress appropriated $5 million for these

230 CHAPTER FOURTEEN

agencies to "foster the arts." Congressional support of the NEA by 1990 had reached about $170 million.

The enabling legislation provided that NEA funds were to be allocated upon the advice of the National Council on the Arts, a group of 26 distin- guished citizens appointed by the president to oversee the affairs of NEA and NEH. All arts groups are hungry and, each year, some 20,000 of them (and individual artists) apply for federal support. Of this number, some 4,200 receive NEA grants each year. Several hundred orchestras and about 200 opera companies are eligible; such eligibility is deter- mined primarily by the size of operating budgets. Nearly all NEA grants are project-oriented and they are, for the most part, matching grants, meaning that $1 of federal money must be matched by $1 of local money. On the average, requests require six to nine months to process.

Individual states are eligible for block grants which they, in turn, may assign at their discretion.

Individual artists are also eligible for grants—in the range of $1 ,000 to $10,000. Individuals receive grants for such things as completing a com- position, expenses of music preparation and residencies in schools and communities.

In the early years of NEA, jazz artists complained that they were slighted in favor of classical musicians. In recent times, the NEA has been more responsive to these complaints. Today, it is possible for a jazz student or young professional to obtain an NEA fellowship to write or perform jazz, including short-term apprenticeship programs where the individual receives a stipend and expenses to travel with a jazz musician

to learn from a professional on the job. Also, established jazz profession-

als obtain short-term residencies in schools to bring jazz to students, and distinguished performers are honored with Jazz Master Fellowships.

NEA grants are intended to assist local arts groups in these ways:

1 - Expand the number and kinds of their programs.

2- Increase public accessibility.

3- Provide sustained professional opportunities for musicians.

4- Present gifted young American artists as soloists.

5- Foster better management capability.

Early on, NEA leaders were aware that the financial difficulties of arts organizations were due, in part, to inept management, and it has tradi- tionally given support to local groups that were attempting to improve

their planning, management, and control of finances. To assist arts groups in acquiring more sound management, NEA grants have gone to universities to support graduate study in arts administration. Federal

money has been available to help finance professional apprenticeship programs in arts management. A sizable portion of federal monies are assigned through NEA's

National Program Funds. NEA also provides Treasury Fund Grants. They

ARTS ADMINISTRATION 231

are intended for large awards for major projects. When a local individual or group gives money for a major project, a matching grant is made by the Treasury Fund. This arrangement has the effect of doubling the

amount of money available for large local projects. A third kind of NEA grant is known as a Challenge Grant. For every $3

raised locally, Challenge Grants add $1. These kinds of grants have been effective in encouraging strong local support for the arts.

In 1985 the NEA and the U.S. Information Agency launched a joint ini- tiative to increase American representation at international performing

arts events; the Rockefeller Foundation began contributing to the project three years later. Called the Fund for U.S. Artists at International Festi- vals and Exhibitions, the program improves and increases the role of American artists in international visual arts exhibitions and performing arts festivals throughout the world.

STATES ARTS COUNCILS

According to the NEA, community and regional arts councils increased in number from 150 to between 1,500 and 2,500 in the last 15 years; the NEA claims that it has been unable to keep more precise track because of the size of the country. Included in that total are, not only community

groups, but state and regional councils on the arts. Federal law requires NEA to assign at least 20 percent of its programming funds to states and territories on an equal basis and offer an additional percentage to region-

al organizations.

232 CHAPTER FOURTEEN

Some state legislatures began support of the arts with great reluc- tance. Pressure on politicians from their constituents changed that. Many states in the union assign tax dollars to help support artists and arts organizations. New York is far in front of the other states with an annual appropriation of some $59 million to its arts councils. New York began to appropriate far more (total) dollars for the arts

than any other state years ago, after a widescaled study of cultural and economic impact of the arts on the state. It showed the politicians that the great majority among the electorate favored generous support of cul- tural enterprises from tax money, and that every dollar spent in these ways redounded to the benefit of the state's economy. The results of this research appear to have convinced the New York state legislature that it is good politics to appropriate tax dollars for the arts.

Arts enthusiasts in other states have used similar evidence demon- strating the favorable economic impact of dollars paid out for symphonies, opera and ballet companies. For example, the millions spent each year for the Boston Symphony Orchestra produces healthy influences on the economy of the Boston area. About one-half of that huge budget will be spent around Boston through the wages paid the orchestra's artists and staff people. Other millions of that budget will be fed back into the local economy for transportation, utilities, advertising and equipment. Also, hundreds of thousands of concertgoers further feed the Boston area economy for such things as dinners out, taxicabs, even baby-sitting.

At present, the principal source of unearned income of arts groups comes from local private sources. Performing arts groups expend tremendous energy raising money. Their first concern is to sell tickets. The most successful efforts of this kind focus on generating subscription sales. Tickets may sometimes be more easily sold for individual perfor- mances, but most major symphonies, opera and dance groups now understand their energies are best spent seeking sales of a full series of

performances. Patrons who buy season tickets not only commit them- selves to more money, they are much more loyal and enthusiastic people than those who attend only occasionally. The subscriber feels like "a patron" of the arts, a supporter of the performing group who takes pride in its health and progress.

Where an individual ticket might cost $20 and a subscription series $160, how does a volunteer make such a sale? Danny Newman, public relations counsel and press representative for the Chicago Lyric Opera and former consultant to the Ford Foundation on audience development, recommends "the hard sell." He favors printed materials with pizzazz and pushy sales pitches by armies of volunteers contacting potential patrons by telephone and mail. Mr. Newman has been brought in to con- sult with many major arts organizations and his record of results is remarkable. Following adoption of Newman's sales promotional tech- niques, one symphony orchestra boosted its sale of subscriptions over 90 percent in a three-year period. Newman's book on the subject is rec- ommended (see bibliography).

Arts groups have, in recent years, adopted some of the ticket-selling techniques of professional sports. It is becoming standard practice for symphonies and opera companies to attempt to sell blocks of seats to

ARTS ADMINISTRATION 233

large companies. Executives are attracted to buying a box or even a larger section of seats for the season, not only for themselves, but to give to their customers and potential customers. Corporations are also attracted to creating an image in their communities of being involved in good works and cultural affairs.

As for individual gifts to arts groups, present tax laws make large gifts less attractive now than they once were. Efforts are less on the size of gifts and more on their quantity. Armies of volunteers are active each spring and summer drumming up small donations of $5 to $100 from persons of modest means, but who are interested in helping out the local performing group. The standard method is to sell "memberships" in the sponsoring society for annual dues of, say, $20. The money usually goes, not to run the society or club, but to help support performing ar-

tists. Those giving more than the minimum dues are listed in the program as "donors" or "benefactors" or "sponsors," depending on the size of their contributions. This appeal to individual vanity produces millions each season for the arts.

There are special techniques in seeking individual gifts. One was mentioned in an interview with the president of New York's Lincoln Cen- ter. He said he never expends energy seeking unrestricted gifts for Lincoln Center. Rather, he identifies the particular enthusiasm of a potential patron. For example, when he learns someone with money is an opera nut he'll ask for money for the Met, and not even mention the other performing groups connected with Lincoln Center. He finds that gifts come from particular arts lovers who will often extend themselves to support their personal favorite.

FOUNDATIONS, CORPORATIONS

At one time, foundations were a major arts funding source. They still are, but of diminishing significance. When the difficult economic period of the early 1970s hit such organizations as the Ford and Rockefeller founda- tions, their assets dropped to about one-half their former value, and grants were cut accordingly or remained level. But there are hundreds of foundations still making important grants to the arts. Everyone knows this, and these organizations spend much of their time receiving and pro- cessing pleas for money. Many of them are now contributors to the Foundation Center, a clearinghouse for information. The Foundation Center publishes a book. Foundation Fundamentals. This publication includes recommended procedures for locating information on founda- tions in a specific area and identifying their particular interests.

In recent years, there has been a significant increase in "community foundations," independent, community-based umbrella organizations for nonprofit, philanthropic endowments built by contributions from donors during their lifetimes or by bequests. Grants are determined by donor interest and assessment by foundation staff of community needs. Since the tax reform act of 1969, community foundations hold certain advan- tages over private foundations. For example, community foundations pay

234 CHAPTER FOURTEEN

no taxes; private foundations must pay two percent on investment income. Private foundations are also required to pay out each year a minimum amount of their earned income; community foundations face no such requirements. Because of decreasing resources and new tax laws, some private foundations have assigned all their assets to commu- nity foundations and have then gone out of business. Individual donors can experience a better tax advantage with gifts to community founda-

tions than when giving through private foundations. For these reasons, community foundations are growing at a more rapid pace than private foundations. Traditionally, they have favored health and welfare projects,

but that emphasis is shifting. More and more of their support is now going to the arts.

While during the early 1980s corporate giving was the fastest grow- ing kind of financial support of the arts, by the end of the decade con- tributions had leveled off. Two factors seriously affected corporate contri- butions: new tax laws which made donations to nonprofit organizations less attractive than in previous years, and the rise in corporate take- overs and leveraged buyouts; not only does the number of existing busi- nesses/potential donors decrease with each such transaction, but a key

corporate figure sympathetic to a particular arts cause may no longer wield the influence—assuming that person remains with the new compa- ny at all—^to affect contributions. When the arts groups complain about their lack of support from big

corporations, the problem is often not so much stinginess but the absence of solicitation. Some of the big outfits haven't ever been asked. And most of them will not give away their money until someone steps forth and helps them understand why they should.

In most communities, well-organized, comprehensive canvassing of corporations of all sizes generally turns out to be profitable. This is par-

ticularly true if businesses are asked to contribute to local rather than

national groups. They are more likely to fund an arts group that has a direct impact on their own community; to further its cause, members of that group may offer to give lunchtime or holiday-season performances on-site for employees.

About 125 major U.S. corporations have formed the Business Com- mittee for the Arts. This New York-based group assists corporations of all sizes in coordinating their support of the arts.

VOLUNTEER SUPPORT

Performing arts groups that are financially alive are the ones which have

developed the support of volunteer citizens who know how to ask for money. One standard procedure is to nominate wealthy executives in the community to the board, then persuade them to personally contact their

wealthy friends for donations. A symphony board member might never have heard of Bartok, but may have landed that prestigious spot on the board because people figured that person knew how to contact money sources.

ARTS ADMINISTRATION 235

Another way of raising money is universally employed by art groups: they enlist large numbers of socially-conscious citizens to get out in the

community and hustle donations, large and small. Symphony, dance and

opera companies who can organize several dozen committees to get on the telephone and follow up mail solicitations generally find that this

group of people becomes an irresistible force. The most effective cam-

paigns of this kind are not only carefully timed and organized, but each

solicitor undergoes special training—how to talk to people, what to say, how to "close the sale."

In addition to performing effective services in selling subscriptions,

committees engage in a great variety of fund-raising projects. Typical of

such undertakings are radio and TV marathon broadcasts, fashion shows, antique sales and auctions. These projects raise millions for the

arts. And to hear the volunteer workers tell it, taking part is also a lot of

fun. No arts enterprise anywhere could function 24 hours without the generous and enthusiastic efforts of its volunteer workers.

Funding sources for the arts include the American Federation of Musi-

cians' Trust Fund (Chapter 17). Each year, hundreds of communities

receive generous funding from this source for live music performances

ranging from soloists in hospital wards to cosponsorship of the Messiah.

The AFM not only provides money for union musicians' wages, but sup- port money for publicity, hall rentals, etc.

Any account of subsidies for the arts should include recognition of the

generous contributions of the artists themselves—composers, copyists, conductors, performers. In every community in the land, these individu-

als subsidize the arts through either working without fee or for fees

below professional levels. They donate their artistry to the cause because they love music and place that above demands for financial reward. Like the volunteer workers mentioned earlier, without these gen-

erous gifts of time and talent, the production and performance of the arts

would suffer greatly.

ADMINISTRATION

THE NEED

In interviewing America's leading arts administrators, one finds that they

are in agreement on how they define their work. They say that arts administration is "the art of losing money gracefully." Until recent years, the profession was unknown. If you had the responsibility of managing an orchestra or opera company, you learned on the job and muddled

through. This identical pattern prevails too often today in hundreds of

arts organizations. That is one reason most of them are in serious finan-

cial trouble. The blunt fact is that many of our symphonies, opera, ballet and modern dance companies are administered by well-meaning individ-

uals who have only a dim view of what they are really supposed to be doing.

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ARTS ADMINISTRATION 237

Probably the first organized movement to offer education for arts administrators occurred in 1969 when the National Endowment for the Arts gave UCLA's Graduate School of Business $10,000 to organize two

conferences, one on the west coast, one in the east to examine the

problem of how to prepare people to function as arts administrators. One of the fallouts of these conferences was the establishment of a masters degree curriculum in arts management at UCLA's Graduate School of Business. Today there are a number of quality educational programs in universities offering studies, mostly at the masters degree level, in arts

administration. UCLA now offers one of the best known entertainment management programs. Probably 2,000 graduates of various arts man- agement training programs are currently employed in the field. But there still is a shortage of individuals fully qualified to manage the affairs of arts groups, many of which have operating budgets in the millions. The ASOL states that there is an acute shortage of persons qualified to fill the job openings in this country for symphony orchestra management. William Dawson, former executive director of the Association of Perform- ing Arts Presenters, states that jobs await individuals possessing

"professional skills" in the field. One way to gain a perspective on the need for professional arts administrators is to look at the staff of a major

symphony orchestra. An organization with an annual budget in the range of $2 million to $6 million will have these professionals at work 50 weeks a year:

General Manager or Executive Director Assistant Manager Director of Development Assistant Director of Development Special Projects Coordinator

Two to four additional professional money raisers Director of Public Relations or Director of Press Relations

Assistant Public Relations Director

Publications Director

Art Director

Advertising Manager Development Manager Personnel Director

Road Manager or Stage Director Assistant Stage Director Property Manager Head Librarian Assistant Librarian

Controller or Accountant

Two to four assistants to the Controller (bookkeepers, etc.) Ticket Sales Manager Assistant Ticket Manager Volunteer Activities Coordinator

Office Manager Secretaries, stenographers, assistants

238 CHAPTER FOURTEEN

It is the responsibility of the general manager to see to it that these individuals understand their responsibilities and discharge them properly. If the manager's associates do function properly, that will leave the man- ager time to operate at a higher level—thinking, planning, budgeting, promoting, following directives from the board, raising money, handling finances, and creating an environment for the symphony that makes pos- sible ever finer artistic achievements, the reason for expenditure of all this

effort in the first place.

Management, too, is an art, as Mozart's father once said. First of all, it is the art of working with people effectively. Arts organizations are unique

in this respect, for they involve professionals and volunteers working side by side. The smooth cooperation of pros and amateurs is not achieved easily and some arts administrators never really get the hang of it. When an individual works for free, it isn't a good idea for the profes- sional manager to push that person around. Armies of volunteers, essential to all arts organizations, just won't work unless they believe wholeheartedly, not only in the artistic goals of the ensemble, but in its management.

In addition to possessing the ability to organize and motivate large numbers of volunteer committees, the arts administrator must be respon- sive to the policies of and instructions from the board of directors. ASOL's Ralph Black was fond of saying that the number one problem of professional symphony orchestras is not money, but weak boards. Helen M. Thompson, former staff head of the American Symphony Orchestra League, directed an ASOL study some years ago which showed that truly successful symphony orchestras enjoy the support of board mem- bers who really work at it. The second finding of the ASOL research demonstrated that the really well-run orchestras "had etched out a sound basic philosophy of the value of the orchestra as a permanent institution in the life of the community."

Assuming the manager and the board see eye to eye, the administra- tive head has these responsibilities:

1 - Supervise the work of the staff. Hire and fire.

2- Organize and supervise volunteers.

3- Direct long-range planning.

4- Raise money. This is a large part of the board's responsi-

bility, but it needs a lot of help.

5- Prepare budgets, including debt management, endowment funds, retirement plans, campaign funds and operations budgets.

6- Work with the artistic director in the conception and imple- mentation of programs—including casting, scheduling.

ARTS ADMINISTRATION 239

7- Negotiate contracts for professional services. Ttie most dif- ficult one may be witti tfie AFM, whose contracts normally run for two to three years. Dozens of contracts must also be negotiated with guest conductors and guest soloists. The manager who spends too much leads the organization deeper into debt. If too little, is spent, artistic standards may drop.

8- Supervise technical matters relative to performances, the

daily moving of artists and equipment; staging, lighting; booking transportation, hotels, meals for over 100 artists.

9- Handle press relations and public relations; keep the vol- unteers happy, the press happy, the politicians happy, the

school children and their teachers happy, the National Endowment happy, the board happy and, above all, keep the audience happy.

Since no individual knows how to accomplish all these things, it might be more instructive to list the specific skills and attributes required of a successful arts administrator.

The administrator:

- doesn'tjust like music, but loves music

has great energy and enthusiasm—the kind that makes others want to work, too

is an evangelist: developing a first-rate performing arts group is not a job, but some kind of religion

uses energy and time efficiently and knows how to organize the energies of others

knows how to run a meeting: starts on time, announces a specific agenda, keeps loquacious tongue waggers within bounds, prohibits digres- sions, encourages all points of view, summarizes decisions made and adjourns on time

keeps in mind long-range goals, but knows what is the most important thing to do Monday morning

can prepare a sensible budget, present it clearly and hold within it. Although not a CPA, can count and doesn't throw other people's money around

240 CHAPTER FOURTEEN

FINANCIAL MANAGEMENT

Management of arts organizations is difficult because many of tfiose in charge do not know how to handle money. They know there will never be enough so they limp along, improvising each day some kind of quick fix for impending disaster. But some arts groups manage their finances astutely. Those that do so start with a well-conceived financial plan. This

is a minimum requirement in avoiding serious fiscal difficulties. A finan- cial plan for an arts organization cannot be worked out like a commercial

business operation, because a symphony, opera or dance company has no easy way of calculating what accountants like to call "cost benefit ratios." This is a way of asking, "If we spend $1 ,000 here, what benefits will that money produce?" Since arts groups are nonprofit in nature, the decision about that $1 ,000 outlay must be calculated, not on what profit

it might yield, but by what it might produce artistically—and artistic

achievements cannot be listed on profit-and-loss statements. So the arts administrator must make many important financial decisions intuitively.

In many communities experts in financial management, insurance, advertising, printing, graphic arts and public relations volunteer their

assistance without cost to arts organizations. These are significant con-

tributions and help keep costs low. CPA's tell arts administrators that

their money problems don't stem particularly from a need for more fru- gality. Indeed, many arts groups can teach commercial concerns how to get things done at minimum cost. Rather, the accountants and other financial experts observe that it is the need for boards and arts adminis-

trators to carefully plan income, expense, debt management and budgeting. Lack of financial planning is at the heart of many arts admin- istration problems.

Arts administrators are indebted to the American Council for the Arts

for its leadership role in fostering better financial management in the arts. For over 15 years, ACA has been assisted by the Shell Companies Foundation in making available a series of publications for the arts. Of

these, one of the most useful is Financial Management Strategies for Arts Organizations ). Written by top executives in nonprofit organization

services at Peat, Manwick, r\/lain, this comprehensive guide covers such

topics as planning, budgeting, organization, information systems, fund

accounting and ratio analysis, and includes sections on federal grants

management and automating administrative systems. If an arts organization can learn good financial management, the

other essential component leading to success is an infusion of love.

Money and love. An unbeatable alliance.

THE RECORD INDUSTRY

1 CAPITOL RicA.

Courtesy Capitol Records, Hollywood

SmtPE OF THE RECORD INDUSTRY

I have learned from experience that it is easier to make a businessman out ot a musician than a musician out of a businessman.

GODDARD UEBERSON

The record^ industry overwhelmingly dominates the art and business of music today. Once a piece of music is composed, not much of impor- tance can happen to it in the marketplace until it is recorded. The lives and fortunes of composers, performers, publishers, agents and mer- chants rise and fall with the sale of music software. If records sell well, all other sectors of the business prosper. When records flop, everyone hurts.

For an understanding of how the record industry functions today, it will be helpful to consider how it grew to its present condition.

HISTORICAL BACKGROUND

1877 — Edison invents the cylinder phono- graph.

1894 — The first commercial disc record- ings appear in the U.S. martlet.

1900s — The Victor Talking Machine Co. is incorporated in 1901, develops 10,000 deal-

ers. At first, opera repertoire dominates.

Then dance music begins to sell well (on Victor and Columbia labels). 1917— the first jazz record is released.

1920s — By 1921, 100 million records are produced in the U.S. Large impetus from "commercial"jazz.

1924 — Bell Laboratories develops an electrical process for recording, increasing

244 CHAPTER FIFTEEN

audible range over the earlier acoustical

recordings to 100-5000 Hz. Bass instru-

ments can now be heard. Meteoric rise of radio popularity puts

recording industry into a tailspin.

1929 — stock market crash.

1930s — The Great Depression hurts'wl business, particularly the record industry.

Sales of discs and phonographs drop 90 percent over the 1927 peak year (total retail

sales in 1933: $5.5 million).

Jukebox industry grows large, helping

salvage the record business. By the la}

1930s, the jukebox operators were bu.

13 million discs to serve their machine.

Decca starts marketing low-cost cents) singles featuring artists such as Bit

Crosby, The frills Brothers, The Dorsey

Brothers, Guy Lombardo; sells 19 million records in 1939.

Dealers sell record players near coill to

encourage record sales. '

First "albums" appear by mid- 1930s, each

single 78 rpm disc within the binder selling

for 50 cents.

Department stores introduce record and

phonograph departments.

1 940s — Weekly volume of new records released in the early 1940s: 10 to 20 sin-

gles (78 rpm); by the end of the decade, 40

to 100 per week, depending on the season.

AFI\/I strike against record companies paralyzes the industry 1942-1945, damages popularity of big band recordings which, in turn, accelerates sales of records featuring

pop singers. Airplay not yet a major promotion factor

except big band remote broadcasts. Juke-

boxes help break new hits, particularly in the black music and country fields.

Late 1940s — one-stops come into being, mainly to accommodate jukebox operators. Rise of independent record labels, which

begin to dominate the R & B field. Prolifera- tion of distributors into smaller markets.

Average dealer markup: 38 percent.

1948 — Columbia introduces the 33.3 rpm LP, retailing for $5.79.

Race records (as they were then called),

C & W diverge from pop records.

1950s — Television rises rapidly, grabs a large share of the radio audience. Radio

loses advertising revenue. To economize,

stations drop most live music and turn to recorded music. Increasing popularity of TV also sharply reduces record sales from

1949 to 1954.

R & B andC & W markets become domi- nated by "independent" labels.

Interest in hi-fi increases buyers of l\/IOR

records.

Rock and roll craze begins in the mid-

1950s. "Cover record" concept initiated.

Record clubs begin in 1955. Columbia

starts, soon followed by RCA and Capitol. Rack jobbing begins in 1957.

Stereo is introduced in 1958.

Record retailing changes. Proliferation of

labels andjproduQjs burdens retailers with

huge ^^^ntories. Space demands force abandpfynat^S^ listening booths. Record

rm^ff^H-ygin concurrently with prolif-

'aB&fife-'- 'ill rack setups. Record

etailii^^^ '«)j-. {midst price cutting and

expar _ ^"^

first million-seller

rn's performance of 'erto For Piano and

Clas

(1959,

Tchaikovsky

Orchestra.

1960s — Social turmoil of the decade finds its "voice" in popular music, influences large

sales increases of rock, R & B, soul, coun- try records. Rock becomes the catalyst for Woodstock-type mass concerts.

NARIi/l formed in early 1960s by record

wholesalers.

Rack jobbers cut heavily into "mom and pop" retailing and become dominant in the market: record clubs cut further into con-

ventional retailing.

Beatles craze accelerates worldwide

interest in pop-rock music; sales boom ensues.

Record supermarkets and retail chains proliferate in response to decreasing profit

margins, growing inventories.

Major labels recapture some markets lost earlier to independents.

1970s -'^ Independent record producers

rise to^^ter importance. Sir/g^gongwriters become the super-

stars\^Wossover records become the superhits.

Sophistication of technology increases:

16 and 24-track consoles; synthesizers, computer-assisted mixing, digital recording.

Sophistication of music increases: rock

softens, classical influences on polyphony,

texture, instrumentation, form.

1980s — Technological change advances sophistication of recording/reproducing

equipment. Inexpensive keyboards and

SCOPE OF THE RECORD INDUSTRY 245

samplers enable a new generation of young producers to make records. Com- pact discs gain market share.

Video clips change record promotion methods, break new acts. Long form videos develop as take-home Consumer software.

New technologies further erode protec- tion of intellectual property. Sophisticated

in-store sampling units provide new vehi- cles for exposure and trial. DAT (Digital Audio Tape) hardware approved for con-

sumer use in the U.S.

V THE CHALLENGE

The production and marketing of prerfcc' ^if^usic is one of the world's major industries. How can a poijSorLara. i- ts complexities? Our approach will be to examine its major ^^o^ o, then set forth how the pieces fit together. One of the most direct ways^f understanding a complex topic is to articulate precisely what questions flteed to be- answered. Imagine this scenario: a room is fijjgd witK^e record industry's most analytical minds — artists, producers, managers, publicisj[fe and merchants. They are asked to identify the most significant prorf[ems facing the industry. After many hours together, they reduce their findings to the following:

1- How does the record industry deal with music videos? How will this kind of visual entertainment continue to affect the music business?

2- Musicians complain that too many records are lacking in artistic value, are burdened with redundancy, and bore all but undiscriminating audiences. Why do record companies spend most of their promotional dollars on mediocre product, neglecting much of the great music found in jazz, classical and popular rnusic?

3- Prerecorded music "T^rtftemain largely dependent on two kinds of promotion — primarily p^Hj^j^oadcasting but also videocasts. This restrictive promotional procOBifesults in large numbers of fine records never being heard. Where cwFwe find effective promotion aliernatives?

4- Merchants are burdened with an avalanche of new releases every week. How can record companies be persuaded to limit this supply and unclog the pipelines^ ' ^ .

5- Sometimes more itiu^fc software seems to be returned to distribu- tors than are being ordereV^or sale. How can this wasteful process be controlled? *, ^-^—

6- Slow-paying customers plague the industry at every level. How can we limit the practice of many companies which ties up pther firms' work- ing capital?

7- Royalty artists (and personal managers) continue raising their demands. What is a reasonable limit?

1-The terms "record," "album" and "single" have become generic audio cassette of an artist's music is still referred to as a "record."

a compact disc or an

246 CHAPTER FIFTEEN

8- Mechanical royalty rates are rising. How can a small label afford to stay in business with ever-rising costs?

9- Label-financed tours often cost more than they earn from record sales. What are some solutions to this problem (e.g., corporate sponsor- ship) and their implications?

10- Record and tape counterfeiters threaten everyone. What would it take to coordinate and finance an all-out war against the crooks?

11- Home taping threatens to cost copyright owners in this country as much as the sale of counterfeit records. Who has a solution to this prob- lem?

12- Many qualified outsiders se^careers in the industry, but find doors closed. How can they gain an opportunity to demonstrate their qualifications to share in this fascin^g jpusiness?

13- Classic Rock or Golden OI|ps music now dominates many FM radio station playlists. What will be tne impact on the music industry when new product cannot be exposed and promot^d as much as in the past?

Any person who has workable answers to these*^questions will find will- ing followers. The record businiess is now well-staffed with bright, talented individuals. But the problems they face have not been solved. There is

room for new ideas, new energy, new people.

MAJOR LABELS

Fifteen hundred recognized record companies operate in the United

States, releasing their merchandise on more than 3,000 different labels.

SCOPE OF THE RECORD INDUSTRY 247

They range in size from tiny independent operations to multinational cor- porate giants. Some are full-line companies handling all kinds of repertoire. Others specialize. Ownership and control of these labels often change. It is safe to assume that, whatever a label's name, someone else probably owns it. It is also safe to assume that, whatever the apparent native land of the label, it will have a large number of foreign subsidiaries and licensees covering most of the globe.

As with most business enterprise existing in the capitalistic societies, smaller firms get bought up by larger ones. Opinion varies on whether this international trend toward music cartels will eventually result in a gob- bling up of all little companies. The ne^d for efficient international distribution systems may accelerate th#tiuying up of small labels. But since a record company can ger^tsfted wi|h relatively small capitaliza- tion, and since the business offers at least fhe possibility of huge profits on small investments, independei^jentrepreneurs will continue to launch their own labels, perhaps even hop^g they will later be bought by some international giant.

Major labels, together with their subsidiaries, dominate the record busi- ness here and abroad, accounting for about 75 percent of worldwide sales. No agreement exists on just how large a record company must become before it can be ranked as a "major" label. The fact is the relative rank of record companies here and abroad changes with the coming and going of superstar acts and monster hits. When a firm gets lucky one year with a series of platinum records, those kinds of sales can elevate a label rapidly.

The reason companies own or control large numbers of subsidiary labels is to manage distribution. All major labels own or control their own distribution networks in the United States. Outside this country, they either operate their own distribution centers or license others. A second advantage major labels have over smaller firms is in promo-

tion. When a big firm releas!a|a new record, it can assign its entire field force and merchandising pwspnnel to that particular project. This may sometimes bring to bear 200^or more individuals actively working a partic- ular release at the same time. While major labels rarely assign their full energies to just one release,'' they have the advantage of shifting their field personnel whenever they find it necessary to push particular prod- ucts. The national impact oi^ this combined force can put over even a weak record. This issue J strongly disputed, some arguing that even heavily concentrated promjtion Qfinnot persuade the public to buy prere- corded music that doesn't actually have it "in the grooves." But certainly the powerful promotional forc|f of the major labels have much greater success with weak material than the smaller firms. Prominent artists are attracted to major labels primarily because of their powerful promotion departments and well-organized distribution networks. Artists are also attracted by the prestige of being signed by a major label. They would rather be known as "a Columbia artist" than as a "Smith artist."

Finally, major labels offer stability and longevity. This can mean that they are more likely to maintain inventories and continue distribution of records perhaps years after their first release. Smaller labels may find it impossible to offer such ongoing service.

248 CHAPTER FIFTEEN

INDEPENDENT LABELS

Today there is almost no such thing as a truly "independent" label. But over the years it has been common practice to classify all but the major labels as independents. For example, Arista is often classified as an inde-

pendent, even though this enterprising company claims its gross sales rank with the majors.

If labels must be classified, it would make more sense to simply describe them as small, medium and large. And even those rankings would change every year or so, for the record business is volatile.

Dependency — Most independent labels are dependent upon large record companies for: ^

1- Their initial financing.

2- Manufacture of their discs W)d tapes.

3- Distribution services.

sndtac

Large record companies frequently invest in an independent label when they have confidence in the firm's leadership. They may enter into a joint venture with a qualified independent producer and share in the capitalization needed to set up a small label. Or the large firm may wholly finance the new company, partly in anticipation of profits generated by distribution of the small label's products.

Independent labels are almost wholly dependent upon the major record companies for manufacture of their products. The majors either own or control nearly all the major pressing plants and tape and CD dupli- cating facilities. The independent label often has difficulty getting prompt production when the pressing plant's parent company has the facilities tied up with its own orders. This bottleneck has seriously hurt small labels when they develop a regional hit, then can't get records produced in vol- ume to fill the record stores with adequate stocks.

If an independent label pulls together adequate initial financing and a strong staff, it cannot go anywhere on a national basis without national distribution. The majors own or control national distribution branches, but there is a strong network of regional independent distributors.

Some major labels offer "custom labels" not only national distribution, but promotion services. This will sharply incrfese costs, but an indepen-

dent label may determine it is the best solution for its promotion needs. Since no independent label can afford itsjown national promotion staff, it

has only one other alternative: engage independent record promoters. Whether handled in-house or farmed out, distribution and promotion

are very expensive. But when an independent record company manages to produce a few hits, the high overhead becomes manageable. Many small firms have lived through high-risk periods to develop into very prof-

itable companies. Two labels that started very small and grew very rich before being bought out by major labels are Island and Chrysalis. From the outset, these companies exhibited creative leadership and determina-

tion. It turned out to be a winning combination.

SCOPE OF THE RECORD INDUSTRY 249

SPECIALTY LABELS

The specialty labels that have traditionally experienced the biggest gross- es are in the classical music field, e.g., Nonesuch, Deutch Grammaphon, Westminster, Odyssey and Angel. Since all the classics have already been recorded and rerecorded by the world's greatest artists, classical labels are largely concerned with selling from existing inventories, many of which contain huge backlogs. Larger classical labels such as Columbia will, from time to time, tape "new music," the works of "serious" contem- porary composers. Few such pressings return their production costs, but some of the larger companies apparently feel an obligation to the art of music to attempt to keep classical r^iMsic ali^e in a commercial world. Some specialty labels, particularly in the classical field of contempo-

rary music, release their records "privately." They eschew more conven- tional distribution channels and s«el(fco locate buyers of their sometimes esoteric product through the mail, aolNssed particularly to colleges and universities. This kind of label cannot break even and requires subsidy of some kind.

Other specialty labels limit their activities to certain ethnic markets.

They find ways to reach cultural enclaves or ethnic groups in particular parts of the country and work directly with retail outlets in such communi- ties. Another kind of specialty label is Folkways, which offers a variety of folk, blues, ethnic and jazz musics, selling mostly by mail to schools and libraries.

One of the most successful types of specialty label sells gospel music. Some people refer to this repertoire as "contemporary Christian music." Among the most effective promotional methods used by gospel record companies are the many personal appearances of their contract artists. Touring gospel singers draw large audiences and sell lots of tapes, CDs and records.

The 1980s saw the emergence of a new genre of mellow, acoustic or electronic instrumental music known as "New Age," epitomized by the Windham Hill label. The soothing ethereal recordings are sufficiently unobtrusive to be able to function as "aural wallpaper," yet musicianship standards are generally high, and the best New Age music does stand up to repeated listenings. ^ ^

RECORD COMPANY AjDMINISTRATION Most large record companies administer their affairs in a pattern like the accompanying graphic display (Figure 15.1). Firms will vary in how they label and group departments. But whatever their structure, they must handle the kinds of tasks described. In simpler times, large organizations

were managed in a structure that looked like a pyramid: underlings worked at the base of the triangular structure, reporting to their depart- ment heads who, in turn, would report to divisional managers who, in turn, would report to the boss perched at the apex. Modern business organizations rarely structure themselves in this way. As John Kenneth Galbraith puts it, large companies run themselves by committee. These committees can be conceived as circles; the circles interact.

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SCOPE OF THE RECORD INDUSTRY 251

Individual initiative and creativity are highly valued in the record indus- try, but no one makes any claim to omniscience. The wisest executives admit that a large portion of their success can be attributed to the fact

that they surround (insulate?) themselves with competent associates. As one senior vice-president says, "Not one of us around here knows enough. The record business changes so fast, about all we can do is get together about once a week and pool our ignorance." A professor of busi- ness administration might call this "dispersed decision encounters." The process is older than the Roman senate. Decision-by-committee is favored in modern organizations because, when a decision proves wrong, at least those who took part in it have managed to spread out the blame.

Some labels have an "executive committee" which is charged with the task of formulating basic company policy and making major decisions. An executive committee for a large labelmight include the CEO (chief execu- tive officer), the vice-presidents for Administration, artist and repertoire, marketing, distribution, the controller (or treasurer), and the house legal

counsel. The vice-presidents of the company's publishing wings and for- eign operations might be included in this decision-making committee.

Artist Relations — Companies like Warner Bros. Records, with a rep- utation for being "artist oriented," might have a vice-president for artist relations. That department would have broad responsibilities, which might

include talent search, contract negotiations, artist management and development, tour support and publicity. Other firms would disperse some of these responsibilities among other departments.

A&R Department — The artists and repertoire department is con- cerned in part with the discovery of new talent. A&R personnel listen to artists' demo tapes submitted to their label and attend club performances by unsigned acts. Most large firms appoint a vice-president to head record production, who usually assigns an outside producer to record the label's contract artists. Independent producers may be selected and supervised by the vice-president for A&R.

Creative Services — Large firms which follow the Warner Bros, model may have a vice-president for "creative services." This influential execu- tive supervises a sizable staff whose main responsibility is creating marketing campaigns. Such*a group of individuals first creates a market-

ing concept, conceives and executes graphic art, writes editorial copy, designs, manufactures and distributes "point-of-sale" stimuli — posters, banners, window displays, etc.

Business Affairs, Accounting — This department is usually staffed by MBA's, accountants, purchasing agents and data processors. They keep track of receipts, expenditures, payroll, royalties, purchasing, inven- tory and information handling. Many large firms assign their business affairs department to a vice-president who has the responsibility of nego- tiating artists' contracts.

252 CHAPTER FIFTEEN

Sales, Marketing — Record companies vary in how they group activi- ties promoting sales of their products. Some firms group all such activities under a "marketing department." Other firms separate "marketing" from "promotion." Still other firms will group these activities under "distribution and sales." Whatever the rubric, the people attempting to promote sales are engaged in advertising, promotion, publicity, public relations — what- ever Is needed to persuade the public to buy the product.

Promotion — Labels employ a promotion staff to get the greatest pos- sible exposure for their acts via radio and video airplay. Promo reps deliver new product to radio stations and closely monitor their playlists. Labels' promotional efforts are generally divided by radio format, i.e., the

record being worked at AOR stations is usually not being simultaneously promoted to country or black/urban stations. Often major labels have national, regional and local promotion staffs.

Product Management — Found in most medium and large record companies, product managers coordinate and oversee all aspects of a current release, including packaging, advertising, tours, publicity, promio-

tion and sales activities. This entails close liaison with personnel from other label activities, e.g., A&R, sales and creative services.

Distribution — Major labels own and control their own distributing branches. Smaller labels distribute their records through a network of independent distributors or through distribution organizations operated by

a major label.

Legal Department — Many firms have a legal department, staffed by a "general counsel" or head lawyer who supervises other lawyers who are on staff, retainer, or called in free-lance. The legal department is largely concerned with assisting in negotiating contracts with artists. These negotiations are headed by top officers in the company, some of whom are licensed attorneys themselves. Contract negotiations usually include, on the artist's side, the artist's attorney or manager or both. Many artists' managers are also attorneys. Legal departments of record compa- nies are usually staffed by lawyers who are specialists in copyright, music and entertainment law.

Operations — If a label has a department called "operations," it would place therein such functions as scheduling and maintenance of its record- ing studios, record mastering and manufacture, office maintenance, warehousing and shipping.

Video Department — Large firms often employ personnel to super- vise promo clip production, promotion and distribution. Actual production is usually farmed out to independent producers.

Publishing Affiliates — All record labels own or control at least two publishing companies — one connected with ASCAP and one signed with BMI. Labels with aggressive publishing wings seek to persuade.

SCOPE OF THE RECORD INDUSTRY 253

RECORD COMPANY CASH FLOW

PRODUCTION

ADMINISTRATIVE

OVERHEAD

PROMOTION Publicity

Airplay

Sales Aids

Advertising

Tour Support

MANUFACTURING Mastering/Pressing

Packaging/Shipping

ROYALTIES To Artists

To Publishers

Fig. 15.2

sometimes coerce, their contract artists to grant them publishing rights to the music the artist records for the label.

International Division — All but the smallest labels maintain an active international division, usually headed by individuals knowledgeable in international copyright law, foreign licensing techniques, etc. Since for-

eign business now accounts for over one-half of total sales, record companies continue to expand their international offices and liaisons with licensees outside this country.

PIRACY, COUNTERFEITING, BOOTLEGGING

Since the 1960s record piracy, counterfeiting and bootlegging have been a worldwide problem of ovenwhelming proportions. Some observers fear that copyright abuses of this kind may run legitimate companies out of business.

No accurate statistics are available on the financial drain caused by discs and tapes sold illegally. Probably the most comprehensive interna-

2-WIPO came into being in 1970 as a specialized agency of the United Nations.

254 CHAPTER FIFTEEN

tional studies of the problem are made by The World Intellectual Property Organization,^ headquartered in Geneva. WIPO's research shows that the worldwide sale of pirated, counterfeited and bootlegged merchandise

has a retail value exceeding $1 billion. RIAA provides a similar estimate. The seriousness of illegal record copying varies widely from country to

country. In some parts of the world no copyright laws exist; in other regions, the laws may be there but are not enforced.

In the United States progress has been made toward reducing, if not controlling, record piracy and counterfeiting. This progress can be attributed to stiffer legal penalties, increasing vigilance of the FBI in

searching out the criminals, a new alertness among record merchandis- ers in spotting illegal merchandise (much of it looks about the same as legitimate products), and the prosecution, fining and jailing of an increas-

ing number of offenders. But the most recent reports of the RIAA stress that the problem in this country is far from solved. At every record indus-

try meeting, leaders prod each other to reduce this problem which hurts

everybody in the business, particularly copyright owners.

To effectively limit worldwide record counterfeiting, it is generally

agreed these steps must be taken by every country genuinely interested

in controlling the problem:

1- Enlist the cooperation of record merchants who want to operate legitimately. Record company executives express the view privately that many record stores outside the U.S. aid the crooks by buying their merchandise to save a few

dollars.

2- Enact stronger copyright laws and impose more severe penalties.

3- Enforce such laws and prosecute offenders.

For years, record companies have been searching for a practical device that would provide a way for honest distributors, merchants and consumers to detect counterfeit merchandise. A variety of package-mark- ing or coding devices has been developed. Some labels have preferred to keep secret just what coding they use, to reduce the possibility of

someone coming up with a code-scrambling device to defeat the system. Some records are determined as honest merchandise through electronic "wands" or scanning instruments, now widely used by retail stores. Progress against piracy and counterfeiting was made in the U.S. in 1984 when an amendment was passed affecting the Generalized System of Preferences (GSP), legislation that provides preferential tariffs and duty-

free treatment to Third World nations, where many of these abuses occur. The amended law now provides that a nation which refuses to cooperate with the U.S. in crackdowns of pirating and bootleg operations will be

denied, at the President's discretion, future preferential treatment under

the GSP. This law helps induce Third World countries, out of self-interest.

SCOPE OF THE RECORD INDUSTRY 255

to cooperate more fully with efforts to control copyright abuses of this kind.

Home Taping — A problem related to counterfeiting is the widespread practice of home taping of audio and video recordings. Researchers have offered estimates of money losses attributable to audio-only home taping ranging from $700 million to over $2 billion at the retail level. Time Warner has estimated the loss totals an estimated $2.85 billion a year.

Opponents of the proposal to assess a royalty to compensate copy- right owners for these alleged losses take a different view: they produce research that purports to show that an avid home taper buys more records than most people who do not tape at home. Congressional stud- ies assert that home tapers usually copy their own recordings.

Austria was the first country to require a royalty to be paid on sales of blank tape and tape recorders. Other countries have since followed Aus- tria's lead. Revenues from audio levies are now over $15 million a year in France and Germany. Australia, Belgium, Hungary, Sweden and Non^/ay also require compensatory royalties on the sale of blank tape and/or recording equipment.

PERSONICS

In an effort to meet the challenge of home taping, the Personics company introduced an in-store taping system. Customers audition any of thou- sands of songs at a headphone-equipped listening post. They then select the tracks and sequence for their own custom-generated high quality cas- sette, created in the store in a few minutes. A sophisticated computer system tracks each song purchased on the system and accounts for roy- alties payable to the labels, artists and songwriters. In addition to plowing some of the money lost to home taping back into the industry, this approach offers exposure for new artists who aren't getting much radio airplay.

NARAS

The National Academy of Recording Arts and Sciences (NARAS) is known to the public through annual telecasts of its Grammy Awards. NARAS regular membership is limited to persons professionally active in the artistic, creative or technical side of the industry (composers, perform-

ers, producers, engineers, etc.). Associate membership is open to those in the recording field who are only indirectly involved in record production. Some of NARAS associate members are students planning professional careers in recording. Applications are accepted at NARAS regional offices, located in major cities. Grammy Award classifications and voting procedures change from

time to time, and information on current practices is announced in the trades and, occasionally, in the general press. Receipt of a Grammy Award is prized, not only for the prestige, but because the attendant national publicity often helps boost record sales.

RECORD MARKETS

RESEARCH METHODS

A record company must know who its customers are — who is currently buying, and who might be persuaded to buy what music in the future. The industry is fiercely competitive. It appears likely that the companies which have access to the best market research will lead the pack.

Musical tastes and trends change rapidly. Companies that move too slowly and cautiously may find themselves out of touch with their ever- fickle customers (often referred to in the industry as "The Street"). The rap phenomenon started in 1981 , for example, enabled many aggressive young labels to reap huge profits. This new urban music was generating excitement in clubs and street scenes long before radio and major labels took heed.

Despite the many studies that have been made by record companies, trade associations and professional journals, they do not always supply very accurate information on record buying. One of the reasons for this is that research methods used in the industry have sometimes been unscientific, ill-conceived and, occasionally, just plain phony.

Of all the "research" used in the record business down through the years, the "charts" have been most suspect. As for research of record "sales," data are generally imprecise and too often fail to make clear the distinctions between the figures for merchandise actually sold as com- pared to the huge amounts of unsold stock returned by dealers. And

258 CHAPTER SIXTEEN

when a chart or poll declares that one particular musical style outsells another, no one can really know what these figures mean because there is no consensus on just how various musical styles should be catego- rized. For example, it is not unusual for one record to be listed on three or more charts in the same magazine. Thus, its relative ranking becomes meaningless.

But recent research is more reliable and, consequently, more useful. Increasing numbers of qualified research analysts and scientific pollsters are involved. Their computers are beginning to spew out more credible data. The record industry is beginning to understand where it is, if not just where it might be headed.

THE CHARTS

Everyone in the record business who enjoys eating regularly follows the charts in the industry's trade journals. Profits soar or plunge, careers

flourish or collapse — in direct ratio to the relative altitude certain records reach on these weekly sales reports. Music people assess the validity of the charts something like politicians react to political polls: when you are riding high, your faith in the data is unbounded. But when you rank low, you tend to suspect the figures are not really trustworthy

and perhaps even rigged. The trade papers are aware of these suspi- cions and proclaim with vigor that their charts are objective, accurate and credible. But insiders believe ways can be found to hype the reports in one way or another.

Opinion varies as to the extent artificial influences may affect the validity of these reports. It may be that when a chart fails to be objective, the problem is not so much that the chart makers have suffered a lapse of morality. Rather, invalid charts, when they appear, more often result from carelessly assembled data or incorrect interpretation of the facts. Still, there have been instances where record companies have encour- aged radio stations to falsely report that they are playing particular tracks — a practice sometimes referred to as "paper adds" — or have con- vinced retailers to inflate their reported sales figures for priority titles.

Billboard publishes the most widely quoted charts and employs a large staff in its market research department. Every category of music

has its own chart, some more than one. Even foreign sales are listed, the data being supplied to U.S. publications by trade journals abroad.

Some charts indicate only airplay; others list only estimates of sales. Some charts combine these data and formulate overall rankings.

The trade papers gather most of their data by telephone, because they are in a hurry. While the telephone is faster than the mails, it risks

the inaccuracies inherent in verbal communication. The telephone researchers call their "reporting stations" (Chapter 19) and simply inquire what records are being added or dropped. Other chart researchers call up key retailers and rack jobbers and ask which records are selling well. Billboards Broadcast Data Services (BDS) system also enables comput-

ers in major and secondary markets to "listen" to radio stations 24 hours

a day. The computers are programmed to "recognize" and track only those songs actually played by the stations. As such technological

RECORD MARKETS 259

advances increasingly allow for more objective and accurate charts, the music industry as a whole should benefit.

The data are assembled, fed into computers — and the equipment spews out relative chart positions for the records that particular week. Not always scientific, but the industry lives and dies on what these charts show.

Experienced chart watchers note the entry level of new releases. If they first appear relatively high, that may indicate they will climb rapidly through the ranks. A record showing quick advancement is awarded a "bullet" by Billboard. A bullet means the record is gaining about five or six chart positions each week, and that is a fairly reliable indication that the record may climb to the very top.

Album Cuts — Promotion of singles is rarely a profit-making enterprise for record companies, because singles are used primarily to turn people on to buying follow-up albums; only they can generate significant profits.

Album charts must be determined largely by unit sales, for album airplay is difficult to identify. Researchers telephone key retailers and jobbers across the country to ask which releases are moving out of the stores. Some trades offer charts which purport to identify which songs get the most airplay whether they are from singles or album cuts. These kinds of data are useful, of course, to radio programmers who broadcast a mix of singles and album cuts.

Comparison of the Charts — Many people not only compare rankings of records between Cash Box and Billboard— which often differ marked- ly — but judge their discrepancies against one or more "inside" publications, e.g.. Radio and Records, which charts only airplay and not sales figures. Then they may compare these data with "tip sheets," which vary greatly in quality. Some of the latter even accept record com- pany advertising. The Gavin Report is perhaps the most respected among these so-called "inside" publications; it has a reputation for being objective. Another ratings service is "Confidential Report," published by

Billboard. "Confidential Report" cites sales statistics and lists the radio stations that are "on" a particular record. The publication calls reporting stations, one-stops, distributors and retailers for its information. It also invites its subscribers to rate a record "good," "fair," etc.

It must be emphasized that many bright people in the industry and broadcasting place no credibility at all in the charts, finding other means of determining what records are living or dying in the mar- ketplace.

Halfway between the chart believers and the cynics are those radio stations that depend on their own in-house research. Major stations employ people to call up local record stores and inquire which records are selling well. These stations believe localized information will be far more useful to them in local programming than any data reflecting tastes of national audiences.

Reliability of sales figures might be increased if all the chart makers would feed their data into a central computer bank, then appoint an impartial staff of analysts to tell the industry what all the figures mean.

260 CHAPTER SIXTEEN

While this kind of cooperation could increase comprehensiveness and

objectivity, competing chart makers are not likely to take part, for the

trade papers, particularly, know their existence is dependent upon their advertisers, the same people who buy the trade papers in the first place to read the charts.

RIAA

The most comprehensive market research in the record industry is car-

ried on (or commissioned) by RIAA, the Recording Industry Association

of America. The RIAA is the most representative trade association in the record manufacturing business and includes companies accounting for

85 percent to 90 percent of all records sold in this country. All major

labels are members of RIAA. The organization is well-financed, deriving its funding from members' dues, which range from about $100 to several

hundred thousand dollars a year, the amount being determined by a company's annual sales.

RIAA is best known to the public through its certification of records as "gold" or "platinum." When a label believes its sales justify such a certifi- cation, the RIAA conducts an independent audit (even non-RIAA members may request such an audit). If the audit shows a single record has actually sold 500,000 copies — counting extended play versions (e.g., maxi-cassette and CD maxi singles) as two units and normal cas- sette, vinyl and CD singles as one unit — the RIAA certifies the record as "gold." Gold album status requires the same sales figures plus a man- ufacturer's dollar volume of a minimum $1 million, based on a discount off list price. As record sales increased in the mid-1970s, the RIAA deter- mined that some distinction should be made for records which sold far more than the amounts qualifying them for gold status. Thus, the "plat- inum" record was established, and that status is certified when a single or album sells one million copies.

An album or single released after 1975 which has been previously certified platinum, is eligible for RIAA's "Multi-platinum Award": two mil-

lion or more units sold. It is in the self-interest of many individuals in the industry to report

maximum sales. Some insiders allege that reports of "sales," including data labels report to RIAA, are not only hyped, but sometimes wildly

inaccurate. Yet, RIAA does all it can to maintain the credibility of its summary reports. One kind of research the RIAA has commissioned concerns estimates

of how many copies of a record must sell to break even. Results from these studies have produced data that are depressing to anyone in the

music business. While the figures change from year to year, most RIAA

members report that about 85 percent of their releases fail to return their investments. Yet, some companies claim their track records are much better. Whatever the proportion of hits to flops, record companies that

survive do so because their hits yield sufficient profits to compensate for

the flops. One of the important services RIAA performs for the industry is the commitment of its resources to fighting record counterfeiting and piracy. The organization played a key role in ensuring that DAT (Digital

RECORD MARKETS 261

Audio Tape) players cannot be used to create second generation digital copies. DAT machines sold in the U.S. must include a "copy code scan- ner." This inaudible chip reads a "notch" encoded into prerecorded music to determine if the digital software is a copy or an original.

SOUNDATA

The Soundata Music Consumer Study tracks the behavior of active mu- sic consumers throughout the U.S. on an ongoing basis. It is a joint ven- ture between the Street Pulse Group, a research firm specializing in the music industry, and George Fine Research, best known for its work with CBS News and the New York Times poll.

Soundata's primary purpose is to provide numerical research data, thus enabling its clients to make more accurate music marketing de- cisions. Like RIAA-commissioned research (conducted by Chilton Re- search Services), Soundata determines the product and configuration of its respondents' music purchases. Data are collected via monthly diaries,

self-administered questionnaires and a quarterly telephone survey. Fur- ther information related to consumers' attitudes is obtained by monitoring

of concert- and film-going activities and non-music purchases.

RECORD CATEGORIZATION

As pointed out, there is no agreement on the categorization of different styles of music. This lack of consensus on classification makes it difficult, sometimes impossible, for one person in the field to know what the other person is really talking about. This is particularly apparent in understand- ing record charts. If a record ranks number 5 on the "Hot 100" chart, number 10 on "Adult Contemporary" and perhaps number 40 on the "Country" chart, what does it mean? In addition to an indication that the record is "crossing over," it also means that the trade paper could not, or would not, decide just what style of music the record really contained.

Whatever category is determined for a particular song or record, one certainty does prevail, however: the public doesn't care very much. For many years, the record-buying public has repeatedly demonstrated that it is attracted by the sound of the music, not its type. The clearest evi- dence of the public's disinterest in categories of music is the crossover record, where the release of a record aimed at one audience attracts, by accident or design, additional audiences. Nearly all superhits today are

crossover — or "multi-format" — records, achieving multimillion-selling status by picking up listeners crossing traditional lines.

While conceding that precise categorization of music is impossible, perhaps even undesirable, the following classifications may help clarify terminology which, in the past, has been used too casually.

Rock — Most studies show that rock continues to be the dominant musical style, although some research shows its market share is drop- ping. As the original rock and roll developed derivative styles, someone was always ready to offer ever-new labels — "hard rock," "soft rock," "acid rock," "country rock," "folk rock," "heavy metal rock," "alternative" or

"modern rock," and so on.

262 CHAPTER SIXTEEN

Country — Country includes what used to be called "country and western" music, country swing, bluegrass, "Nashville country," "L.A. country," pop country and popular songs with a country-type rhythm. Singing styles range from "straight Nashville" to pop, to "new country," a combination of country and traditional rock 'n' roll music.

Black — Under "black" we include the musical styles created and per- formed predominantly by black people, such as R&B, rap and dance/ disco. Most recordings of this kind tend to feature a free use of the human voice and vocal and instrumental improvisation. Contemporary music in these styles often employs a very active electric bass line and a strong back beat.

Adult Contemporary — This is a broad category flanked on the left by jazz and on the right by classical music. It includes "easy listening" and MOR ("middle of the road") as well as softer rock sounds. The "adult contemporary" format was named to reflect the fact that aging baby boomers who now desire quiet music had, still, grown up with rock music. To them, soft rock does not necessarily mean the pop music their parents still favor. This style stresses, for the most part, romantic songs and lush orchestrations.

Jazz — Since much jazz is now included under such classifications as "jazz-rock," "fusion," or "soul," about the only music that can now be categorized as "pure" jazz is predominantly instrumental, largely impro-

vised rather than arranged, and favors acoustical, not electronic, instruments. "Contemporary," as opposed to "classic" jazz, accommo- dates other related genres, such as New Age.

Gospel — Gospel is used as a generic term for music containing texts that make reference to the Christian faith. Some persons believe the term gospel should be applied only to the religious musical expres- sions of black persons. Others would include both "black" gospel and "white" gospel. Trade papers sometimes classify this repertoire under "inspirational music." Perhaps the most useful rubric for this repertoire is

"contemporary Christian music," which happens to be the name of the leading professional journal covering the field {Contemporary Christian

Music).

Classical — This is the repertoire originally intended for performance in concerts, operas, legitimate theatres, recital halls and places of wor- ship. Musicologists favor the term "art music" for this repertoire and contrast it to what they call "commercial music." In the record and broad- cast industries semiclassical, semipopular, "symphonic jazz" and light opera are sometimes included under the classical music category.

Other — Musics not falling under any of the categories defined above can be grouped under "miscellaneous" or "other," because their share of

RECORD MARKETS 263

the market is too small to figure importantly in research data. Here com- edy records, children's records, ethnic musics and educational materials can be included. As for movie sound tracks, they range in style from hard rock to symphonic and defy categorization, while original cast albums of musicals also cover a musical gamut from rock to opera.

STYLISTIC PREFERENCES

Because pop music is, to a degree, "disposable" by definition, acts — particularly in the rock field — can go from star to "has been" status, sometimes within the same year. Artists who attach themselves to musi- cal trends (or who are marketed that way by their record companies) are often washed up once the public tires of the trend. Very few of the disco stars from the 1970s, for example, are even recording today. Those active in the contemporary music scene are fighting a long uphill battle to come close to their previous sales figures and struggle to be perceived as credible or "relevant."

The "Classic rock" format has been embraced by former AOR radio stations who have found nostalgic programming to be an effective vehi- cle for delivering desirable baby boomer listeners to their advertisers. Ironically, the format found success with many younger listeners, not even born when most of the 1960s and 1970s music was originally released. Perhaps rock 'n' roll proved to be not as disposable as expect- ed. Acts such as the Beatles and the Rolling Stones created music that has lasted for decades. More recent artists such as Bruce Springsteen and Michael Jackson further contributed to rock's legacy.

Record people become indignant when anyone suggests they can "create" a hit just through promotion. On the contrary, they argue, "It's got to be in the grooves; we can't 'create' a hit." But a strong case can be made on the other side of this argument. Large numbers of very poor records reach the top of the charts, and the only reasonable way to explain these phenomena is to conclude that the promotion people on these records are more creative than the musicians.

Public tastes in music are more constant once we leave the rock field. Some performers remain top favorites for decades — Bing Crosby, Johinny Casti, Ella Fitzgerald, ttie Boston Pops.

Reaching the Buyer — How does a music lover find out which records to buy? If the labels could get a definitive answer to that question, their promotion budgets could be drastically reduced. Most research shows that the strongest influence on potential record buyers is broadcasting — radio and videocasts. Browsing through record stores and word of mouth are probably next in effectiveness in spreading the word. TV exposure is most effective with younger buyers, as is radio. Record buyers in their mid-twenties appear influenced some by newspaper ads and articles. This age group (and some older persons) are also turned on by the records they dance to in clubs. Enthusiasts of college radio believe that medium can break records and, if subsequently picked up by other media, can turn them into big sellers.

264 CHAPTER SIXTEEN

Configurations — Changes in technology and lifestyles have led to an ever-changing parade of audio media. In the 1980s cassettes became the leading format, and in the 1990s compact discs took center stage. Whether in tape or disc formats, digital playback media appear destined to push the older analog technologies into the recesses of entertainment

history.

Where Are the Innovators? — Large segments of the public get bored with the cliches of prevailing styles and search for "something new" in music. Young listeners have traditionally been most receptive to musical innovators, and their dance clubs are often the proving ground for new acts with something different to say. But many states have raised the legal drinking age and are thus excluding part of this young audience from clubs. As a consequence, we have fewer club attendees who are receptive to musical innovation. This may contribute to the difficulty of new music gaining recognition. With so much air time being devoted to familiar, older music, new artists are not receiving as much valuable radio exposure as they did in years past.

Ever since Elvis and the Beatles, the artists and the merchants have been searching for a style to succeed rock. The search goes on, but per- haps the future lies less in the creation of a new style than in the continual refinement and re-invention of rock itself. Technically, rock 'n' roll is an inherently limited music form. Yet the millions of fans who make rock the overwhelmingly most popular type of music do not seem to mind that they have heard it before, as long as the music is played with

the same raw, inspired energy at the heart of all good rock music, new and old.

DEMOGRAPHICS

Studies of stylistic preferences provide only one part of the information available to record companies from research. The age of record buyers is important to know, and recent studies have brought into question the old myths about kids dominating the market. Since rock and roll has had its most enthusiastic fans among teenagers since the 1950s, and because rock appears to have dominated the business ever since, industry leaders continued to assume that the kids bought the most records. They clearly did in the early periods of the development of rock and other so-called "contemporary" musics. A recent study by Soundata yielded the results shown in Fig. 16.2.

WORLD MARKETS

Until the late 1980s, the largest market for recordings had been the Unit-

ed States, which accounted for about 35 percent to 40 percent of the

world total. Today, the U.S. accounts for less than one-third of the world

record business — a second-place showing. The largest geographic market now is Western Europe, with Japan a distant third.

Music Buyers' Preferences % of Dollar Volume

Gospel 3% Ja"

Country 10%

Fig. 16.1 Source: The Recording Industry Association of America

Who Are Active Music Consumers? Age 12+ Made 3 or more purchases past 6 mos.

AGE OF RESPONDENTS Based on 1 865 respondents

25-34 28%

UnderlS 19%

45-t- 16%

35-44 17% Fig. 16.2 Soundata National Music Study

266 CHAPTER SIXTEEN

World Percent of Prerecorded Music Retail Sales

by Region

U.S. — 31%

Western Europe — 35%

Rest of world - 9%

Latin America - 2% Australia/New Zealand - 2%

Canada - 3% China - 3%

Japan - 1 5%

Fig. 16.3 Source: International Federation of the Phonographic Industry

Wynton Marsalis, leading young artist, has won Grammy Awards in both the classical and jazz fields.

ARTISTS' RECORDING CONTRACTS

AFTRA AGREEMENTS

All recognized, nationally-distributed record labels enter into a labor con-

tract with the American Federation of Television and Radio Artists (AFTRA) for the services of singers. This agreement, known as the AFTRA Code of Fair Practice for Phonograph Recordings, covers solo singers and vocalists who are part of recognized musical groups, from duos on up. The present contract covers essential concerns of AFTRA in respect to wage scales, overdubbing, working conditions, reuse pay- ments, royalty obligations and labels' contributions to AFTRA's Pension and Welfare Funds.

VOCAL CONTRACTORS

Where recording involves three or more AFTRA members, AFTRA requires a union contractor. That individual is usually a singing member of the group. The AFTRA Code defines contractors as ". . . those artists who perform any additional services, such as contracting singers, prere- hearsing, coaching singers, arranging for sessions or rehearsals, or any other similar or supervisory duties, including assisting with and prepara- tion of production memoranda." AFTRA makes no distinction in this respect between a vocal contractor and a vocal director. The AFTRA contractor is required to be present at all recording sessions, whether or not one of the singers, in order to supervise the adherence of the record producer to the terms of the Code.

268 CHAPTER SEVENTEEN

One of the contractor's important responsibilities is to keep track of overdubbing of voices. The practice is almost universal today, and it is the task of the AFTRA contractor to log these events, then charge the producer for them. AFTRA requires that when its members become involved in any form of tracking, they are to be paid for the session "as if each overtracking were an additional side." Producers sometimes find that extensive overdubbing can run their costs higher than they would have been if additional singers had been engaged in the first place. Voic- es are overdubbed either "live on tape" or through electronic means, such as tape delays. These techniques are sometimes used to change the timbre, resonance or intensity of voices. Sometimes the mixing engi- neer can cause one to four voices to sound like many more singers are performing. Since most tracking results in a net loss of employment for union singers, AFTRA attempts to control its use through assessing extra charges for such services.

In addition to a fee as one of the group singers, the contractor receives compensation per hour or per side of recording, whichever is higher. An AFTRA contractor is also required when the recording of a Broadway show involves a group of three or more singers.

For all sessions involving AFTRA-member singing groups, the con- tractor renders AFTRA's "Phonograph Record Sessions Report and P&W Report," which cites the record producer's name, hours of record- ing, the names of AFTRA members involved and wages due them. The contractor has the producer sign this form, then turns it in to the AFTRA office.

The record company or producer must also file with AFTRA, within 21 calendar days following the last recording session, a "production memo- randum" (known as "Schedule A and B") which sets forth the fees paid the singers.

Although lobbying efforts on behalf of recording artists continue. Congress has yet to require that performance royalties be paid to those singers whose records are broadcast. Performers enjoy more protection in this matter in Europe than they do in the U.S., where stronger broad- casting lobbies exert formidable influence.

SCALES

The basic AFTRA contract has remained essentially unchanged for more than a decade. Important changes are constantly occurring, however, with respect to current rates. The student is advised to contact a local AFTRA chapter for the latest rate sheets.

The "Schedule A&B Session Report" cited above must indicate which AFTRA members on the session were royalty artists and which were not. A royalty artist receives, not only AFTRA scale, but royalties based on the number of records sold. In respect to "self-contained" acts and all other royalty artists, their maximum wage per record side (not counting royalties) is three times the minimum AFTRA scale, irrespective of the number and length of the sessions required for that side. AFTRA requires that the record company provide to royalty artists, at least twice a year, (and to AFTRA upon request) "... a full and proper accounting"

ARTISTS' RECORDING CONTRACTS 269

of record sales in order to ascertain tlie royalties due the artists. Tiiese accountings are to continue so long as there are sales of the record. The AFTRA Code sets forth in detail its requirements regarding minimum wages. A producer or contractor should consult an AFTRA representa- tive for current details. There are several common classifications of employment and wages. For example, AFTRA classifies its members as 1, soloists or duos; 2, group singers; 3, soloists who "step out" of a group; 4, singers who record original cast albums (Broadway shows, etc.); and 5, choral singers recording or broadcasting classical or reli- gious music.

It wasn't until 1974 that AFTRA managed to negotiate a contract in- corporating the minimum royalty concept—a significant breakthrough in how extra wages were to be calculated for singers. AFTRA members started receiving additional wages based on records sold. In the past, artists other than royalty artists enjoyed no such additional rewards, no matter how successful a particular record became. When these extra payments were agreed upon, they became known as contingent scale payments. Here are typical payments under the current contract:

1- When an album reaches a sales plateau of 157,500, non- royalty AFTRA artists on that record receive a payment equal to 50 percent of their original wages (at scale) for those particular sessions.

2- When a single record attains sales of one million, non-roy- alty singers receive 350 percent of scale.

3- Singers recording original cast albums receive 70 percent of scale when sales of 460,000 are reached.

A record is considered for these payments for a period of ten years following its initial release. Payments are limited to sales in the United States which occur through normal retail channels. Sales through record clubs, premiums and mail orders are excluded. Also excluded from these calculations are records distributed for promotional purposes. In deter-

mining which record releases are subject to these payments, only the initial release of a record side in album form is included, not any subse- quent inclusions of that side in albums. As for singles, only the initial release is eligible for these payments, but if a single is later included in an album it is eligible. Also, a side first released in an album is eligible when it first reappears as a single.

In respect to the AFTRA Pension and Welfare Funds, record compa- nies are required to pay to participating AFTRA recording artists about 9 percent (the rate may vary) of their gross compensation for recording. The term, "gross compensation" is defined by the AFTRA Code in this respect as including even royalties paid AFTRA members by the record company. Payment into the fund is limited to the first $100,000 of gross compensation paid to the artist by the record company in any calendar year. The payment into these funds is also required in respect to the contingent scale payments described above.

270 CHAPTER SEVENTEEN

ACQUIRED MASTERS

When a singer records for one of the recognized labels, AFTRA has no difficulty controlling minimum wages and working conditions. But many records are made by very small companies and by independent record producers who then attempt later to sell or lease their master tapes to a third party. This practice is widespread in the music business, and full union control is difficult, often impossible. AFTRA and the AFM do what they can, however, to protect their members from unfair practices.

The rights of performers are often abused when a producer transfers rights in a master tape to another person. The first producer may have met all the provisions of his contract with AFTRA, but royalties on the first producer's record may continue to accrue and yet not be paid. Also, the third party acquiring rights to the master (and possibly including an inventory of merchandise unsold) is required to continue payment of singers' royalties on all sales the third party generates. A more complicated situation arises when the original master was

not recorded under the AFTRA Code. In anticipation of this kind of situ- ation (not uncommon), the AFTRA Code requires that when a record company acquires rights to a master from an outside source, before the record is released the company must furnish to AFTRA a warranty and representation that all performances embodied in the master were recorded "in the recording territory" (U.S., its territories and posses- sions), and that all artists have been paid the minimum rates then in effect under the AFTRA Code and that all payments due to the AFTRA Pension and Welfare Funds have been made. This warranty and repre- sentation is AFTRA's Schedule D. If the record company will not or cannot execute Schedule D, it has the option of filing AFTRA's Schedule A, described above.

If it is learned that these representations are false and the parties involved were not signatories to the AFTRA Code, the company acquir- ing the master must then make the minimum scale payments plus any applicable contributions due the AFTRA Pension and Welfare Funds. When a third party acquires interest in or ownership of a master

recording, the obligations for payment of royalties and contingent pay- ments are spelled out by AFTRA. But the courts have occasionally been unpredictable in their rulings on these matters. In an attempt to dispel all ambiguities, the AFTRA Code specifies that the obligation to pay AFTRA royalties devolves upon the transferee and, in turn, any subse- quent transferee, for sales made under such transferees or their li- censees.

Artists' unions do all they can to protect the interests of their members when master tapes recorded for one medium are transferred for use in another medium. Perhaps the most common occurrence of this kind involves a tape prepared for a commercial record and then transferred for use on television, where the on-camera artist lip-syncs the perfor- mance. Whatever kind of secondary use is made of a recording (called a "new-use" or "re-use"), AFTRA has set specific scale payments for its members so involved. The singers' union also permits transfers of use only when "the star or featured overscale artist," if any, grants permission.

ARTISTS' RECORDING CONTRACTS 271

In respect to the music video field, AFTRA has a separate agreement with the producers.

NONUNION RECORDING

While the singers' union comprises more than 40,000 members, the practice of nonunion recording is widespread. Aspiring young perform-

ers, eager to get their professional careers off to a quick start, often do

not take time to learn established professional practices. Some artists never do discover the advantages of collectivism, the concept of all

union activity.

A young performer who fails to convince a recognized record label to sign a contract may produce a master, perhaps even press a few hun- dred records and attempt to place them on the market. Rarely do such entrepreneurs adhere to AFTRA or AFM regulations or scales. Many "self-produced" performers, at the start of their careers, are not even aware of the artists' unions and their traditions. Occasionally, the per- former-producer-distributor- merchant experiences initial success in a limited geographic area. Some one-person record companies manage later to sell or lease their masters to an established label with national

distribution. At that point, either the original entrepreneur or the lessee

must meet the AFTRA obligations described above. Thus, the original entrepreneur saves no money in the long run by initially circumventing AFTRA and AFM, for their members must ultimately be paid for any record to take off in the national market.

A new trend developing abroad, which may eventually affect American industry practices, is the decreased emphasis on union membership, based on the idea that an adversary relationship between artists and record companies is bad for business. But it is important to remember that there is typically a pronounced disparity of bargaining power between any one artist and an entertainment conglomerate. Unions, therefore, remain key players in the entertainment business, providing an important

source of artists' rights protection.

AFM AGREEMENTS

PHONOGRAPH RECORD LABOR AGREEMENT

All record companies engaged in national distribution of their products have a contract with the American Federation of Musicians for the ser- vices of instrumentalists, directors, arrangers, orchestrators and copyists. Every two to four years, the AFM Executive Board empowers its National Contracts Division, or a special negotiating committee, to work out terms of the contract with recording industry representatives. The current contract is known as the Phonograph Record Labor Agree- ment. It governs wages, benefits and working conditions for all services

272 CHAPTER SEVENTEEN

of musicians working in the recording industry in the United States and Canada. The Agreement provides that

. . . only the services of members in good standing of the Ameri- can Federation of Musicians of the United States and Canada shall

be used for the performance of all instrumental music, and in copy-

ing, orchestrating or arranging of such music, in recording pho-

nograph records, and, in the employment of persons eligible for

membership in the Federation, only such persons as shall be mem- bers thereof in good standing shall be so employed.

In addition to wages paid for musicians' services, the contract also requires the employer to pay (amounts vary contract to contract) into the ARM Health and Welfare Fund (AFM H & W) and 10 percent of gross (scale) wages into the AFM-EPW, the Employers Pension and Welfare Fund.

The contract provides 200 percent of sideman's pay for the leader (musical director). Where a session calls for 12 or more musicians, an AFM contractor is required, and receives double sideman's wages. Musi- cians doubling on a second instrument are paid, with some exceptions, 20 percent extra for the first double, then 1 5 percent for each additional

double. The Agreement contains many other details covering rest peri- ods, meal breaks, restrictions on the use of electronic instruments where they displace conventional instruments, and surcharges for work per- formed after midnight and on holidays. Even cartage fees for heavy instruments are stipulated.

The Agreement requires that all music "prepared" for recording must be handled exclusively by arrangers, orchestrators and copyists who are members of the AFM. Since the AFM claims no jurisdiction over the work of songwriters and other kinds of composers, the Agreement does not cover their services.

Enforcement of the scales and working conditions stipulated in the Agreement can be generally managed with the well-established, recog- nized labels when they produce their own masters. But, as noted above, the practice is widespread in the industry for record companies to lease or buy "outside" masters. The Agreement deals with this problem in detail (Paragraph 18), but policing of these transactions is difficult, some- times impossible. Record manufacturers are prohibited from using acquired masters unless the music was recorded under the AFM con- tract and the scale wages it required were paid, or the musicians have been paid equivalent wages and the required contribution to the AFM Pension and Welfare Funds has been made. The company may satisfy its obligation in respect to acquiring masters by securing a "representa-

tion of warranty" from the seller or licensor that the requirements of the

AFM have been satisfied.

SPECIAL PAYMENTS FUND

When a record company signs the AFM Phonograph Record Labor Agreement, it must also simultaneously execute a Phonograph Record

ARTISTS' RECORDING CONTRACTS 273

Manufacturers Special Payments Fund Agreement. From the beginning, the AFM recognized that the increasing impact of recording technology was devastating to the music profession—except, of course, for the AFM members who, each year, earn at least part of their livelihood from recording. Knowing that nothing could prevent the rapid technological growth in the recording industry, the AFM managed to negotiate agree- ments with the record companies that return to union musicians at least a fraction of the income lost through the reduction of jobs performing music live. The Special Payments Fund Agreement also helps compen- sate, in a small way, for the failure of Congress to provide in the 1976 Copyright Act a performance royalty from recorded music.

Record companies make payments into the Special Payments Fund twice each year, the amounts being based on the aggregate sale of records in the company's catalog. The "royalty" due the fund is below one percent (each contract tends to vary the rate) of the suggested retail price of each record sold. Record companies are allowed discounts for packaging (up to 1 5 percent) and for free promotional copies distributed (up to 20 percent) and for records sold through record clubs (up to 50 percent). Companies must pay these royalties for a period of ten years dating from the initial release of a record.

All these royalties are paid by the record companies to the Administra- tor of the Fund. After expenses of administration are deducted, all funds are then paid to the musicians who, during the preceding five-year peri-

od, performed on any of the records covered by the Agreement. One musician in Los Angeles, particularly active as a wind player and arranger, has received checks of $50,000 or higher from the fund for five

years running. About a half-dozen "supersession" AFM members receive checks of $40,000 or more. Some 400 recording musicians receive checks of $10,000 and up. AFM members in the three major recording centers have received

about 70 percent of all payments from the Special Fund: Los Angeles led with 36 percent; New York came in second with 20 percent; Nashville's share was 13 percent. Chicago musicians ranked fourth.

The Special Payments Fund Agreement recognizes that, during the 10 years royalties must be paid, the ownership and control of a record

may change. In anticipation of these changes, the Agreement provides that "any such purchaser, assignee, lessee, licensee, transferee, or user

shall become an additional first party hereto," meaning that such persons must assume the obligations to the AFM of the company first producing the masters or records. Because of the extensive changes in the record industry—companies and ownership come and go—the control and col- lection of these funds by the AFM is difficult and cannot always be accomplished.

TRUST FUND AGREEMENT

Record companies must also enter into a Trust Fund Agreement with the AFM. Payments are made to the fund's Trustee and are based on record sales at percentages identical to those for the Special Payments Fund. Disbursements from the Trust Fund are different, however. The Agree-

274 CHAPTER SEVENTEEN

ment provides that the Trustee is obligated to use all monies collected, except for operational expenses, to set up performances of live music performed by AFM members. In actual practice, administration of these monies is shared by each of the AFM locals who parcel out jobs to their members, irrespective of whether the members are recording musicians, and pay them prevailing local union scales. AFM locals may use some of the money for these live performances to hire halls, finance publicity and print tickets, etc. Cosponsors may be used. The intent of the fund is to foster public understanding and appreciation for live music, and most performances are for schools, hospitals, religious organizations, cultural events and patriotic celebrations. If no admission is charged, the live performances may be broadcast. Established cultural organizations, such as symphony orchestras, opera and ballet companies often call upon the Trust Fund to finance, or partially finance, live music perfor- mances.

Recent contracts call for sharply reduced contributions by the record manufacturers to the AFM's Trust Fund Agreement and Special Pay- ments Fund. Each succeeding contract negotiation finds the union fighting to keep these programs alive.

NONUNION RECORDING

AFM and AFTRA have been trying to maintain strict union shops in the recording studios for decades, with uneven results. Following enactment of the Taft-Hartley law and "right-to-work" laws in various states, estab- lishment and maintenance of a strict union shop concept has been difficult. All professional symphony orchestra recording in the United States is under the AFM, as is most pop-type recording in the major recording centers. Union control is less strong in rock, soul and country fields. Particularly with younger rock bands, quantities of master tapes are produced every year, sometimes recorded by fly-by-night producers and "managers" who promise the kids they'll get rich quick. Most of these operators disappear shortly after sundown. The AFM, from time to time, activates a PR campaign to attract very young players ("Young Sounds of the AFM") with reduced fees and dues. As young musicians gain professional experience, they usually discover that working under the protection of AFM membership offers greater long-term rewards than a fast dollar picked up in nonunion sessions.

Another kind of nonunion recording, somewhat more legitimate, is the "spec" session. Producers will hire some musicians, pay them perhaps $20 per hour, then promise to make full payment later, "when the record sells," in an amount equal to AFM scale. Still other producers pay the musicians (union or nonunion) nothing up front, promising to pay full union scale later when the producer can raise the money. Both these kinds of spec recording are disapproved by the AFM, which does have a "demo" scale.

The most effective point of control is found with the independent pro- ducer when attempting to lease or sell masters to a record company. But if that record company is not a signatory to the AFM recording agree-

ARTISTS' RECORDING CONTRACTS 275

merits, or is a signatory but fails to adhere to those agreements, nonunion

masters can get produced and sold. But engaging in this kind of fly-by-

night activity is short-lived and rarely profitable. This follows because, should a nonunion record company experience temporary success, it will want to sign other artists, and all the established ones are AFM members recording under AFM contracts. The nonunion company will be unsuc- cessful in such attempts. Further, if the nonunion artist starts to ex-

perience success on a nonunion label, that artist will want to subsequent-

ly sign with a more stable company that can offer much better long-range opportunities.

One of the union's most effective means of controlling nonunion recording is to penalize its own members. Some locals assess union lawbreakers fines of $1 ,000, $2,500, even as much as $5,000 for sec- ond- and third-time offenses. In addition to heavy fines, most locals'

bylaws permit the union to expel a member who fails to follow AFM rules governing recording services.

ROYALTY ARTIST CONTRACTS

Every performer who understands the music business knows that a real- ly prosperous career is largely dependent upon obtaining a record contract. Therein lies the big money, the international reputation. Until a

performer becomes recognized as a recording artist, it is almost impossi- ble to attract enough notice to draw employment offers from concert promoters, major booking agencies, television and film producers. Occa- sionally, an artist will develop a satisfactory career in one area, for example, on Broadway, and never establish a career on records. But for

most performers, bypassing the prestige and potential income gained through recording is a rarity.

While the AFM and AFTRA contracts control wages and working con- ditions for backup artists, the individuals and groups whose names and sounds are used to sell records negotiate contracts for their services, not

through an artists union, but in direct negotiations with a record compa- ny. Such performers are known as royalty artists. The AFM defines such a performer as a musician

. . . who records pursuant to a phonograph record contract which provides for a royalty payable to each musician at a basic rate of at

least two percent of the suggested retail list price of records sold

(less deductions usual and customary in the trade), or a substantially

equivalent royalty, or who plays as a member of (and not as a side- man with) a recognized self-contained group . . . (which Is) two or more persons who perform together in fields other than phonograph

records under a group name (whether fictional or otherwise); and . . .

the members of which are recording pursuant to a phonograph record contract which provides for a royalty payable with respect to

the group at a basic rate of at least three percent . . . and all of the

276 CHAPTER SEVENTEEN

musicians of which are or become members of the American Feder-

ation of Musicians as provided in this Agreement.

The union used to require AFM approval of royalty contracts. Today it is more common for the AFM simply to require such contracts be "filed" with the union.

TYPES OF DEALS

In earlier times it was simple: a record company signed an artist, instructed one of its house A&R people to produce the records, and that was that. Today, that simple formula still prevails at times. More often,

though, the record company and the artist have a number of other options in working out a contract. These different kinds of recording

deals exist because of the presence, sometimes dominance, in the busi-

ness of the independent producer.

Here are the most common types of deals being made today in plac- ing an artist under contract:

1- The label signs the artist, then has one of its producers

handle the project in-house. The artist gets royalties, the

staff producer receives a salary, perhaps a royalty over-

ride.

2- The label already has the artist under contract, then retains

an independent producer (or production company) to deliv-

er a master tape. The record company assigns a production budget to the producer, possibly pays a produc-

tion "fee" up front, and negotiates a royalty of two percent

to five percent based on the retail list price of records sold

by the artist.

3- The independent producer and an independent artist strike

a deal, create a master tape, then try to induce a record

company to buy it. The label accepting the master pays the parties royalties based on records sold (the artist and

the producer had worked out beforehand how they would share these royalties).

4- A label shares its costs of producing a master tape with an independent producer or with an artist, perhaps both, in

some kind of joint venture (limited partnership). Royalties here would be shared in proportion to the financial commit-

ment of the parties.

5- An artist forms a production company to deliver a master tape to a label. The producer on the project might be on

the production company's payroll, or might be engaged

ARTISTS' RECORDING CONTRACTS 277

freelance just for tfiis particular project. The label pays the artist's company a royalty. The artist then pays the produc- er a share of those royalties.

6- A corporation has an employment agreement with the artist, then agrees to loan out the artist's services to a record company. The label pays royalties directly to the corporation. The corporation, in turn, pays the artist a salary, possibly a royalty override. This arrangement could provide a tax shelter for the artist, who might also receive from the corporation certain additional benefits, such as a retirement plan.

NEGOTIATIONS

Most record companies are very selective today in determining the tal- ent they want to sign. Unlike earlier times when a label would sign artists on a speculative basis to test public reaction, current practice is to limit signings to artists the label is reasonably certain will find strong public

acceptance. Today's conservative signing policies result largely from the

prohibitive costs of "breaking" new artists, which now start in the range of $250,000 for production and initial promotional expenses. A more normal procedure is for a record company to decide to go

after an artist and initially assume all production and promotion costs. The label will invite the artist and management to begin discussions about a possible contract. Following at least one exploratory meeting, a negotiating team would meet to hammer out the fine print of the agree- ment. This scenario typically develops after an artist with shrewd management has created a "stir" among industry insiders. In the most desirable situation (from the artist's point of view), several companies will bid competitively for a contract with the artist.

If the artist lacks management and legal counsel, established labels will insist the artist be represented by advisors, one of which would be an attorney. The negotiations for the label would be handled by a senior executive and the company's legal counsel. Sometimes a company's vice-president for "business affairs" or the A&R head is empowered to negotiate and finalize an artist's contract.

Both parties look upon the negotiations as an opportunity to maximize self-interests. The prevailing party will almost always turn out to be the one with the strongest negotiating position: in a word, clout. Compromise, however, is usually the key to an enduring, long-term rela- tionship. In the matter of one chief negotiating point, for example—the advance—a large advance might improve an artist's state of mind but substantially increase the record company's risk as well as raise the question that the artist lacks confidence in his ability to generate royal- ties. An effective negotiation might satisfy both parties by providing royalty rate adjustments or bonuses as certain sales levels (sometimes called "tiers") are reached.

278 CHAPTER SEVENTEEN

THE ISSUES

Properly drawn recording contracts will cover the following issues:

Term—Until recently, the standard length of an artist's recording con- tract would be one year, with four one-year options for the company to extend. More common today, at least with important artists, is a period without a time limit, but the length of the contract would be tied to the

timing of master tape deliveries and record release requirements. Expe-

rienced lawyers often attempt to negotiate contracts on a per-album

basis, for example, a three-album contract. If the first album does not sell

well, the parties are bound to each other for two follow-up releases which afford them an opportunity to amply test the effectiveness of their

alliance. A per-album deal often provides for delivery of a tape every six to nine months, the contract terminating after delivery of the third album.

But the parties could, of course, subsequently negotiate a new contract to extend their relationship.

In a three-album contract, should the label decline to release all three

albums, the contract should provide a penalty, normally a sum of money ("liquidated damages") payable to the artist. Well-drawn contracts provide

guarantees of artist's delivery and the company's release of the records.

Experienced lawyers try to get the label to guarantee release within 30 to

60 days following delivery of the master tape to the company.

Nashville entertainment lawyers say that labels try to sign artists for

much longer terms—up to eight or ten years (perhaps 8-10 albums), in the hope that agreements of extended length help assure the record

company periods of long control over music video rights. During downturn periods in the record business, companies some-

times revert to "singles deals" and the "EP (extended play) deal." EPs usually include five or six songs, and record companies lacking complete

confidence in a new artist may prefer to limit their risk and incur initial recording expenses, say, of $50,000, rather than the $100,000 it might

take to turn out a full album.

Exclusivity—Except in the fields of jazz and classical music, all recording contracts require the artist to record, during the term of the

contract, only for the label that has the artist under contract. But if the

artist also records from time to time in a capacity other than as a solo

artist or featured group, e.g., as a session musician or record producer,

the artist's lawyer will want the contract to permit such outside services

to enable the contract artist to maximize income.

The label's demand for the artist's exclusive services may extend to its claim on home video rights. The artist should not grant this extension without additional compensation. The label could reasonably demand, however, that it retain the right of first refusal on the artist's services in

video and film. In turn, the artist should deny any demand of the record company to be available for video recordings and filmed performances, except for video promo tapes. The artist would not only grant the latter right, but would probably insist the firm promise to produce and exploit

video promo tapes of respectable quality.

ARTISTS' RECORDING CONTRACTS 279

Royalties, Advances—Depending on how badly the label wants to sign the artist, the royalty offer will be in the range of 10 percent of

record sales based on the retail price. Major stars have been known to get 18 percent to 19 percent at retail. Sometimes a label will try to hold

the initial royalty below 1 percent, then index increments in the rate as

record sales rise. For example, the artist might receive 9 percent on the

first 100,000 sales, perhaps 10 percent on the next 100,000, then some-

thing like 12 percent If the record goes gold. Lawyers can persuade a

label to start the initial royalty rate higher on a second album, should

sales of the first album turn out to be satisfactory. In respect to royalty advances, there is no standard policy among

record companies. But it is common for a record company to estimate an artist's annual royalties, then advance one-half that amount. If a label is

particularly enthusiastic about signing an unknown artist, it will probably advance the performer sufficient amounts to sustain a respectable lifestyle until earnings can provide it.

Record companies generally hold back about 25 percent or more of

the royalties in a "reserve account"—in anticipation that some records "sold" will be returned by dealers for credit. The contract should limit this reserve account and specify the maximum time period such royalties can be held back.

Attorneys with special competence in tax matters may counsel their artist clients to accept only a prescribed amount of income from royalties

in a given year. Sometimes artists can gain certain tax advantages through deferred payment of royalties.

Production Budget MInlmums—Major recording artists can nego- tiate a big budget commitment from a label to cover recording production

costs. Less prominent recording artists would not be able to impose such

a demand. But a promising new artist would be well-advised, if negotiat- ing with a label of limited resources, to demand a minimum budget commitment or risk being caught in a low-quality project that could hurt a

developing career.

Many contracts describe a production budget as a "recording fund." An agreed sum is set aside for this purpose, with one-third to perhaps one-half of the amount being released to the artist (or the producer) at

the signing of the recording contract. The balance is released from the

fund following completion and satisfactory delivery of the master tape.

Should the production expense total an amount smaller than the record-

ing fund, some contracts allow the artist (or producer) to keep the difference, with the understanding that the entire sum is recoupable by the label from royalties accrued from sales of the record.

Creative Control—Recording stars often demand, and usually receive, control over such issues as the selection of songs to be record-

ed, the selection of a producer, and album graphic art. Less important

artists will probably have to accept the judgments of the company in such matters. The parties could compromise the question of who selects the record producer: it might be by mutual consent. The label will typical-

ly want a new artist to collaborate with a producer who has a proven

280 CHAPTER SEVENTEEN

track record, thus reducing some of the many uncertainties in developing a new act. As for the selection of songs, few labels would force a record- ing artist to record material the artist could not perform comfortably.

Commitment to Promote—A strong-selling recording artist will prob- ably be able to demand that the label commit sufficient money and personnel to fully exploit the records released. Most artists, including the big stars, regularly complain that the label is not providing adequate pro- motion. This promotion issue is the one that causes most recording contracts to break down. If the records don't sell, the label blames the artist; the artist insists the sales would have been just fine if the firm had done an adequate promotion job.

Charge-backs—Royalty contracts routinely include the stipulation that the record company does not have to pay the artist any royalties, except for advances that are negotiated, until the firm lias recovered, through a charge-back on the artist's royalties, all its out-of-pocket pro- duction costs. Production expenses that are considered legitimate to charge back include studio rentals, the cost of blank tape, union wages to AFM and AFTRA members, music arranging and copying expense. Such costs can easily total $200,000 and more. When a royalty artist completes a project, all the artist gets (except for advances on royalties) is union scale. No more money comes to the artist until the record com- pany has recouped its production costs. It is evident the records will have to sell well just for the parties to break even.

It is not unusual for an artist to complete a contract, have some good- selling records, but still not recover the label's expense of recording non-selling records under that contract. Labels rarely attempt to recover

this loss from an artist leaving the company roster. Sometimes, though, record companies will seek to minimize this risk by including a clause in the contract making losses accrued on previously unsuccessful records recoupable out of royalties on later albums (see Royalty Discounts). Advances to artists are not returnable.

Ownership of Masters—Experienced attorneys negotiate carefully for ownership of master tapes. Initially, the record company owns all rights. But when a contract is terminated, artists' attorneys often will try to negotiate transfer of ownership to their clients. If a firm believes an

artist's records will continue to sell well after the term of the contract,

they will be reluctant to release ownership of the masters. Master record-

ings of established artists have considerable residual value, particularly

when a firm repackages and/or reissues old records. Master tapes are often sold or leased to secondary labels for this purpose.

Reissues of old recordings have contributed significantly to the rapid

growth of the CD market, as consumers wish to listen to classics in this high-quality format. Most large record companies now have separate departments dedicated solely to reissues of their back catalogs. Under

these circumstances, ownership of masters has taken on new impor- tance.

ARTISTS' RECORDING CONTRACTS 281

PUBLISHING RIGHTS, "CONTROLLED COMPOSITIONS"

Where the artist composes original songs, many record companies will try to persuade that individual to place all of those songs with a publish-

ing company owned by or affiliated with the label. If the label's publishing wing cannot obtain full publishing rights, it will probably attempt to "split"

the copyrights in sonr« way, sharing the publishing revenue with the per-

former. If the label o| production company cannot "get a piece of the publishing," it may do even better by demanding a reduced mechanical rate, commonly 25 percent below the current statutory rate, for all works owned or controlled by the recording artist. Such works are called "con- trolled compositions," and the artist declining to accept this royalty

discount may fail to get signed. The worst abuse of "controlled composi- tion" clauses occurs where the label^r production company extends it to include all works scheduled to be recorded, leaving the artist to per-

suade outside publishers to go along with the 25 percent reduction.

These sections of recording contracts can rarely be avoided except by

major stars. For lesser names, this kind of discounted royalty rate looks

like a rip-off. The NMPA has vowed to continue to seek legislative relief from the controlled composition clause, which it considers as abusive.

VIDEO RIGHTS

Most recording contracts today include consideration of music video. In

the early period of music video history, labels and artists did not know how significant the genre would become, so they negotiated "wait and see" clauses. These clau^^s stated the parties would come to terms later, if and when videqe became "important." When it was discovered that videos could help sell records and even sell in cassette form for

home entertainment, the record labels hastened to renegotiate the ambiguous language of the earlier contracts.

During this transition period many labels demanded the exclusive ser- vices of their contract artists for any and all performances on videos

(clips, compilations and long forms), not offering to share any of the

potential profits from "videocasters" or cassette manufacturers, and even

charged to the artist's record royalty account all video production costs.

New acts and hungry acts bought these contractual terms, but the stars turned down these one-sided deals.

As the video industry matured, it became common for labels to negoti- ate more equitable video terms in their record contracts. A properly written recording contract will include agreement on the following issues

relating to videos:

1- Videos must be defined as "promotional" or "commercial." The

label is obligated to pay the artist royalties only on the latter, the rate to be negotiated. Promotional clips, compilations and video "albums" (or "long form"Qdeos) are to be defined in respect to their relative, average

lengths in order to further clarify the distinctions between promotional

and commercial videos.

282 CHAPTER SEVENTEEN

2- Video production costs may be handled in one of three ways: the label pays all; the artist pays all; the parties share the costs. Typically, the label "fronts" the total video cost, then recoups 50% out of royalties.

3- Recoupment of production costs is nes/tJMfttk^pending on which party financed the video. Any income gf^^^^^fst^ideo, such as software sales, should first help recoup J'^^^^^KosfS,Jhen be shared by the label and the artist. "^^BHT

4- If the artist owns or controls any of the music us^d on a v*ieo, the artist may waive licensing fees and, royalties on that material, provided the video is only for promotional purposes. But if the video is non-promo-

tional in nature, the artist-composer is entitle(;l to synchronization fees,

performance royalties and mechanm^cpyalties.

5- The artist is to have reasonable control over the selection of video directors and other production personnel.

6- Issues to be negotiated in good faith: selection of material, deter- mination of concepts, audio remixing/editing, supporting casts.

7- If the label refuses to produce a video, the artist reserves the right

to produce the video.

8- Copyright ownership of a video 's d^rH^^i^^ho paid for the production.

FOREIGN RELEASES—The - " / «.>!' lawyer should try to persuade the record company tc ,_ . y , ,y-.. foreign territories the record will be released. This is essential, tta^Hjfnore than half of the

world's supply of new releases are sold ou^l^ne United States and Canada. In addition to getting the label to list specific foreign territories,

the artist should try to get the label to effect these releases simultane-

ously with, or shortly after, the Americar> release, to maximize the effec-

tiveness of a promotion campaign.

The artist and a lawyer will want to carefully negotiate how royalties are to be paid on sales in foreign territories. Many labels pay only 75 percent of the domestic rate. When a sale takes place outside the U.S. or Canada, the artist is entitled to an accounting within six months.

Overseas, records are rarely sold on consignment. In the U.K. and Europe, a sale is a sale; you get paid for what is purchased. This makes accounting simpler and obviates the need for the label or its foreign licensee holding back royalty reserves.

Knowledgeable music business lawyers also Jtake care to have con-

tracts stipulate when royalties are paid. A contract permitting a six or twelve-month lag might cause serious financial loss if the country's infla-

tion rate were exceedingly high. Also, foreign royaiti© should be calculated and paid at the source, before licensees and the parent com- pany have imposed their discounts and service fees.

If the lawyers are not informed on tax treaties, they will need to call in

ARTISTS' RECORDING CONTRACTS 283

an accountant who is, in that the record business today is global, and tax treaties among nations impact directly on the artist's income."'

ASSIGNMENT—Contracts normally specify terms under which a label may assign a contract to another person. Recording companies, particularly the smaller ofe;?, fJ:i.>oge hands, change leadership, change direction, and maw^\'%^m^^j0 artist, perhaps even one with whom they are makihg^t^JaW^^j^yt ^^ch circumstances, the label may assign its contrac^^^Bt^^^3j^r_^n assigned contract can be to the advantage of an1|^^^^B||^^B|Hie initial firm is not experiencing success with that,^^^^|^^^^^Hriction develops between an artist and compafiy/rrfapHII^^^^^C^Bmes an artist signs with a label because of workina/p^!R«Ey»l|Pi|itf> one of that company's produc- ers. If this is themiation, J^Bjjsr^ -afl jjjry to get a key man clause in the contract, altbwing th^^^^HHgl^^l^ from the agreement if a favorite producer is no

RIGHT TO ATOJ^-The parties u ^ ^d^QQ the artist may, upon

proper written not«R demand to audit'^.c; tirm's books. Royalty state- ments are sent to tne artist semiannually. If they do not appear in order, an audit can be demanded.

Audits for major stars' can cost as much as $30,000 to $100,000. The artist's lawyer should seek a provision in the recording contract which requires the record compaay to pay the entire cost of the examination if the amount found to be owing exceeds, say, five percent of the amount actually paid. -

"";

Major music business lawyers reportthat audits rarely reveal the com- pany has cheated the artuSjEfLit discovery of royalties owed is a regular occurrence. Artists' managers fir-i music business attorneys usually rec- ommend record companiesshoirid be audited at least once every two years. ^

DEFAULT, CURE—If the parties have a serious disagreement, certain remedies are available, some m^re satisfactory than others.

Suppose the artist is' scheduled to delfver an album but decides to take a six-month vacation. The label has no firm grounds for suit, in that it will not be able to prove what it lost in record sales. But when the label believes the artist is not meeting contractual obligations, it has these remedies available: 1) it can suspend the artist; 2) it can obtain an injunction preventing the artist from recording for another company; 3) it can sue for damages.

Since recording contracts involve "personal services," few courts will tell an artist to pei*|Ma such services against the artist's will. If the record company enjoins SKtist from recording for a competing firm during a period of ^spiJ^' ^'^Ve^^^^

^^''®® options: I) to give up the battle and

1- United States L izens and'residents of this country are taxed on worldwide income, subject to tax treaty pfcvnions. Nonresident aliens and foreign corporations generally are subject to tax in the jurisdiction of the source of income. The purpose of tax treaties between nations is to avoid imposition of double taxation on the same income.

284 CHAPTER SEVENTEEN

not record at all; 2) to attempt to renegotiate the contract; 3) to admit

defeat and continue recording for the first company. Leading music business attorneys report that when a record company

and an artist have a serious disagreement over a contract, most firms will renegotiate. Neither party can prosper in the long run when compelled to work under a contract viewed as inequitable or unfair. That would be a poor climate for making music.

ARBITRATION—Many contraalp Jnclyde a compulsory arbitration clause calling for the parties to submit disputes to the American Arbitra- tion Association. Resolutions can be made much more promptly than through court action, but some record companies resist arbitration claus- es, holding to the view that these pro^edlngs tend to favor the individual as opposed to a corporation.

While rulings can be prompt through arbitration proceedings, their implementation may result in suits being filed anyway; if, for instance, one party refuses to abide by the decision of the arbitration board, the other party would file for breach of contract. Some settlements sought through arbitration can be strung out for a year or longer. Record compa- nies may prefer, in lieu of arbitration proceedings, to ask for a declaratory judgment \o determine if a contract has been breached; such a move is sometimes made when one side wishes to establish a precedent in the courts, which arbitration does not do.

ROYALTY DISCOUNTS

As with personal management agreements,, the royalty base is usually more important than the royalty rate. F6r decades, record companies have been getting away with certain limitations on the royalty base that knowledgeable artists' lawyers resist. Still, some limitations on the artist's royalties can be justified, at least from the record company's point of view.

Here are commonly seen limitations on the royalty base: 1- Breakage allowance—Some labels still offer royalties based on 90

percent of sales, a practice once justified, in that about ten percent of the old 78 RPM records would become damaged in transit. Now that records are released in more durable configurations, such as CDs, artists should not tolerate a breakage allowance.

2- Packaging discount—Labels often charge 10 to 25 percent to cover costs of producing album cover art. Cover art does not usually cost this much; the charge is assessed anyway.

3- Free goods—Companies usually discount royalties for free goods—given to distributors and retailers as incentives and quantity dis- counts (e.g., "Buy ten and we'll give you one free"). Some labels believe they must give away nearly one-half their singles to sell th^other half. Artists receive no royalties on promo copies.

4- Tape discounts—Profits on tapes are supposedly lower than on discs, and labels try to pay a lower royalty on them.

5- Record club sales—Labels usually offer to pay 50 percent royalty on their net receipts from sales through record clubs.

ARTISTS' RECORDING CONTRACTS 285

6- Merchandising—Some record companies attempt to tie up mer- chandising deals that may come to the artist. No respectable label should make any claim on artists' royalties from this source.

7- Cross-collateralization—All record companies seek the right to cross-collateralize an artist's royalties. If one record sells well, royalties from it are discounted to the extent necessary for the label to recoup its production costs on the artist's other records that may not have sold as well. Additionally, record companies also will try to charge to the artist's royalties all the label's out-of-pocket costs in producing videos for the

artist. If the artist has shared video production costs, the charge-back against the artist's royalties will be adjusted accordingly.

Another cross-collateralization privilege is sought when the label still has a loss under an earlier contr^^ct; while negotiating for a contract extension or revision, the label will attempt to encumber the new record- ing agreement by charging against royalties earned under the new contract to pay off the loss in the old contract.

The reader may come to share the views widely held by the industry's most prominent lawyers. At a UCLA Extension conference on recording contracts, music industry attorneys David A. Braun, Jay L. Cooper and Paul G. Marshall agreed that the royalty discounting policies of many record companies are indefensible, and that attorneys involved in these negotiations must be aggressive in protecting their clients' interests.

RO CORi CTION

It is said that movie-making is "the director's art." It can also be said that

creating sound recordings has become "the producer's art." It is rare to hear a successful record today that does not reveal the sure hand of a competent producer. Even if the song is great, the performance out- standing, these elements must be brought together and presented to the ear as one artistic whole.

The old label for a record producer was "A&R man." The term is usu- ally shortened now to just producer, but that person's number one challenge remains the same: matching artist to repertoire, seeking a union of the performer and the material. Today, there are record produc-

ers who know how to achieve this unity. An imaginative producer goes beyond this to contrive ways of producing a good master tape even with material that is less than great, with an artist that may not always shake the earth.

PRODUCING TALENTS

A number of different kinds of producers can be identified. Their modes of working vary from superbly organized to seat-of-the-pants. Most work- ing producers can be identified under one of the following:

288 CHAPTER EIGHTEEN

The Complete Producer — This type is rare, one that is qualified to handle all the important elements that make up record production — artistic, managerial and technological. Talents of this magnitude often

operate their own production company or record company or head a cre- ative department for a big label.

The Engineer-Producer — The competence of this person is much narrower than "the complete producer," for this is basically an engineer

(audio mixer) who is engaged to run sessions for an "executive producer" or creative director who may lack technological skills. The engineer-pro- ducer is most adept at "getting sounds" from the console, but may lack many of the other talents and skills possessed by the more versatile pro- ducer.

The Artist-Producer — This person is probably a performing artist or writer who makes it as a producer largely through empathy with the per- formers and the material. This producer may lack technological skills and depend wholly on the audio mixer for engineering judgments, and may have to rely on others to handle the managerial aspects of production,

such as contracts, budgeting, etc.

The Promoter-Producer — This person may lack musical sensitivity, may be terrified at the options offered by the mixing console, may not know the difference between a copyright and a birthright — but makes it as a "producer" because of an ability to raise money. The money forms a catalyst, drawing together diverse talents — artists, writers, mixers, etc. Master tapes get laid down here through a kind of committee action.

The Executive Producer — This appellation could be used, and often is, to identify the type of producer described just above (a money source). The distinction here may be that the real executive producer might well possess the musical sensitivity and know-how in the studio

that earns the respect of the other pros involved.

The Coproducer — This is a person who shares the responsibilities — either musical, technological or managerial — with other persons. Some are identified as coproducers who are performers on the sessions, and assume a leadership role during taping and mixdown.

The Line Producer — The term "line producer" is sometimes used to describe an individual working for a production company or record label. The line producer is often presented with a project already in place: the

act and the budget may have been set, and the line producer takes charge of the day-to-day activities needed to turn out a master tape.

The Non-producer — Sometimes an individual with money or some other kind of power insists on being identified on a record as the produc-

er, but does not function in any way, in the studio or during post-pro-

duction, as the real producer, except possibly to show up with the money — or take the star to lunch. In the record business, sometimes prestige can be bought.

RECORD PRODUCTION 289

THE INDEPENDENT PRODUCER

Since about 1960 the industry has seen wide variance in employment practices concerning producers. Until the advent of rock and roll, record

companies maintained a staff of full-time "house producers" who had strong control over who was recorded and precisely what material the chosen few were to record. In the 1960s, large numbers of rock stars composed their own songs and attempted to control the selection of material. They achieved this either by sheer weight of their influence or

by insisting they "produce themselves," or bring in their own producers from outside. Since that time, most firms, large and small, have used a mix of in-house and independent producers.

An independent producer today is sometimes a one-person company personally supervising every facet of production. More likely, there are perhaps one to four associates on the company payroll whose collective talents are sufficient to attract jobs from record labels. Between assign- ments the independent producer or production company helps pay the bills by engaging in related enterprises such as artist management, music publishing, perhaps even video production. A new kind of independent producer has developed with advanced

technology, making it possible for one musician adept at keyboard syn- thesis to handle every facet of production — composition, arranging, performing, mixing, editing, and production of everything up to tape mas- tering. This versatility is made possible through MIDI, "Musical Instrument Digital Interface," the system for patching together several pieces of equipment for recording or performance.

Getting Started as an Independent Producer — If you plan to develop a career as a record producer you will need determination, talent and luck. Before you get too far along with your plan, ask these questions —

1 Have you got the will? Can you hang in there?

Aro wni I niftoH in Inratinn artictQ \A/ith Qfar nnl2- Are you gifted in locating artists with star potential? Nei- ther you nor your acts will make a dime unless that potential is there. Can you persuade strong acts to sign exclusively with you?

3- Do you have a talent for picking songs with hit potential? If you do not, it is essential you associate yourself with people who do.

4- Can you evaluate the combined impact of the material, artist's delivery and production sound? That is what it takes to become a successful A&R (Artist and Repertoire) person.

5- Do you have access to lots of money? Do you know how to present a convincing plan to potential investors?

6- Do you know how to present your artists to potential buy- ers of master tapes? You have three ways to do this: present live showcases, present demo tapes (audio, per- haps video), or present master tapes.

290 CHAPTER EIGHTEEN

If you lack any of these abilities, you must locate associates who are strong in areas where you may be deficient. Translation: form an inde- pendent production company. Few individuals are talented enough to go it alone.

If All Else Fails — If an independent producer can't sell the master tapes, the next thought is likely to be, "I'll show the big shots. I'll set up my own label!" This is an excellent plan if that producer is determined to go broke in about one week's time. Even if investors can be found to partici- pate, it would be a very unwise move for a producer lacking a strong track record.

Here is the other side of the coin: if the producer is successful in some phase of the industry, can line up investors, then get strong acts under

contract, there is some chance of setting up a new label and making a go of it.

Another way to go is underground: Read Diane Sward Rapaport's book (see the bibliography to this volume) on how unknown acts, unheard- of producers and small investors can sometimes successfully launch small independent labels.

PRODUCTION DEALS

Record producers are employed in various ways. Here are the most often

seen working arrangements:

1- A record company engages a producer as a full-time employee, provides a weekly salary, perhaps a royalty override. Tfie label's head of A&R (the old label lingers on) assigns projects to the producer, who may have little to say about which artists or what music is recorded for the company.

2- The producer works as an "independent" — as an entrepreneur or for a production company. Labels that employ the producer assign a budget, "deliver" the artist, and expect completion of a master tape. The producer, who gets a production fee, often recoupable by the label from royalties, will receive an advance on royalties, as will the artist.

3- The producer "delivers" the artist and a master tape. The two invest their time and money on the project, then set about try- ing to sell the master to an established label. If they succeed, the parties negotiate a master purchase agreement that will provide the recoupment of all or part of the production costs as well as a royalty that is shared by the producer and the artist.

4- The producer's services are "delivered" by the artist who has the producer under contract. This is sometimes called an "all- in" deal: the artist negotiates, with the help of the artist's

manager and attorney, a package which involves a royalty and an advance on royalties. The artist then shares the advance and the royalties with the producer.

RECORD PRODUCTION 291

Established producers rely heavily on their attorneys in drawing up production agreements. But the producer will require legal counsel knowledgeable in this special area, since production agreements can be more complicated than artists' royalty contracts. Whatever agreement is worked out, the experienced producer will not actually start to work on the project until the document is signed.

ROYALTIES, FEES

Except on work turned out by a label's staff producers, all independent production agreements today provide a royalty for the producer. In this sector of the business, people often refer to a producer's "points," a term synonymous in this context with percentages. One point equals one per- cent. How many points can a producer extract from a company? It is always the same story when negotiating a contract: the party with clout prevails. A young producer just breaking in may get only one point. Most producers receive two to four points. A few superstars ask for and receive five and six percent on sales. Some contracts treat the producer better than the featured artist, who

must wait for royalties until the label has recouped its production costs. The artist will normally receive a royalty two to five times higher than the producer, but the producer may have a contract that requires royalties from sale number one. If this kind of immediate payment is agreed upon, it is likely the record company talked the producer into fewer points.

In addition to royalties, it is standard practice for the label to pay a production fee. Some producers are fortunate to get a few thousand dol- lars in front as their fee, one-half of which is normally paid before the first session begins, the other half upon delivery of the master tape. Some fees are not extra payments, but advances on the producer's royal- ties. Major producers can get tens of thousands of dollars in production fees, usually non-recoupable by the label from royalties.

THE THREE PHASES OF PRODUCTION

Professional record production is a complicated and expensive process. It can be most clearly understood by examining its three phases: Pre- production (planning), work In The Studio, and Post-Production activity. The accompanying chart sets forth sequences of events that will often typify a record label's in-house production and, by contrast, an indepen- dent production. While the two share some functions, they differ in significant ways.

292 CHAPTER EIGHTEEN

THE THREE PHASES OFRECORD PRODUCTION

PRE-PRODUCTION PHASE In-house Producer

1- Create the concept

2- Be assigned a budget 3- Be assigned an artist 4- Select ttie songs

5- Negotiate mechanical licenses

6- Engage the musical director, union contractors

7- Reserve in-house studio time

8- Schedule a house engineer

9- Confirm availability of any special equipment and instruments needed

10- Reconfirm all of the above

11- Rehearse the music

Independent Producer

Create the concept

Prepare a budget, raise the money Locate an artist, sign him

Select the songs

5- Negotiate mechanical licenses

6- Engage the musical director, union contractors

7- Book time in an independent studio 8- Engage a free-lance engineer, test

studio equipment, acoustics

9- Confirm availability of any special equipment and instruments needed

10- Reconfirm all of the above

11- Rehearse the music

IN-THE-STUDIO

In-house Producer

1 - Lay down basic tracks, vocals 2- Add sweetener tracks 3- Prepare final mixdown to two-track

stereo

4- Pick up W-4 forms from all employees

5- Sequence A and B sides 6- Pull out possible singles (in consulta-

tion with A&R) 7- Make cassette copies for artist, A&R

department and yourself

Independent Producer 1- Lay down basic tracks, vocals 2- Add sweetener tracks 3- Prepare final mix-down to two-track

stereo

4- Pick up W-4 forms from all employees

5- Sequence A and B sides 6- Pull out possible singles

7- Make cassette copies as needed

POST-PRODUCTION

In-house Producer

1- Supervise mastering

2- Obtain clearances from graphic artist,

photographer, liner notes writer

3- Turn over signed mechanical licenses to the company

4- Deliver W-4 forms to the company 5- Deliver lyric sheets and technical

credit sheets to the company 6- Confirm graphic art, liner notes are

being prepared

Confirm all bills have been paid

Reconfirm everything

Deliver master tape to A&R Try to get a few days off!

Independent Producer

1- Supervise mastering

2-N/A

3- File signed mechanical licenses for safekeeping

4- Deliver W-4 forms to your accountant

5- File lyric sheets and technical credit sheets for possible future reference

6- N/A

7- Confirm all bills have been paid

8- Reconfirm everything

9- Try to sell the master tape

10- Look for your next job!

RECORD PRODUCTION 293

PRODUCTION BUDGETING

Whatever deal a producer works out for employment, the responsibility of developing and controlling budgets will be a part of the job, whether the work is for a label or free-lance.

It is not possible initially to prepare a record production budget with precision, because many of the anticipated expenses can be only rough- ly estimated. At budget-writing time, the producer may not even know in which city the recording will take place. Perhaps a rhythm section must be flown in from Nashville. Will some of the songs on the album require an expensive complement of string players? All the budget-maker can do at the outset is identify expense parameters. After assembling all available data, costs must be specified in detail.

Budget Control — Well-organized producers work up budgets on some kind of summary sheet. If the budget control sheet provides suffi- cient detail, it can go a long way toward helping the producer and the client handle their finances. Figure 18.0 shows one kind of budget sheet. It may be used as is, or perhaps as a model for the person who prefers to set up one tailored to a specific situation. A budget control sheet will be misleading if it fails to reflect careful

research of current studio costs, and the latest union wage scales and surcharges. Experienced producers often call in their AFM and AFTRA contractors to help them pull together accurate figures.

Budgeting costs for taping singles is difficult enough, but when it comes to calculating the expense of recording an album, the producer enters high finance and maximum risk. Out-of-pocket expense of record- ing a quality master for an album today will start in the six-figure range.

Producers of rock albums often budget 10 to 20 hours of studio time per song. Some rock albums may clock 300 hours or more, including mixing, editing and mastering. Producers and other record executives worried about exorbitant recording costs should compare their figures with the studio time required by session musicians. These superb artists sight-read the charts and are able to perform an acceptable take on the second or third reading. Jazz album producers may let the machines roll and catch great performances the first time, entirely unrehearsed — improvised.

An even more impressive comparison of recording time for rock can be made with the classical field. A professional symphony orchestra of the second or third rank can record a 15-to 25-minute work, such as Stravinsky's Rite of Spring, in six to nine hours! Of course, the orchestra would have learned the piece a few seasons back — but such an achievement is still remarkable. New rock performers should learn how these other musicians get very

complex music satisfactorily recorded in just a few hours. If they were to record as efficiently — as, of course, some do — their take-home royal- ties could increase significantly per release.

RECORDING BUDGET ARTIST/GROUP^

PRODUCER

LABEL7CLIENT _

Contact

DATE

STUDIO

PROJECT NO.

ENGINEER Cost Per Unit

No. of Units

Total Unit

Cost

Sub- total

Extension

STUDIO Basic Rate

Outboard Equipment

Set up/strike

Basic Tracks

Overdubs

Vocals

Mixing/editing

Tape duplicating

Tape

Tax

ENGINEERS 1st engineer

2nd engineer

ARRANGING/COPYING Arrang- Music title ing

Copy- ing

10.

Union surcharges

ARTISTS Instrumen- talists

Sing-

ers

Solo-

ists

Rehearsals

Basic Tracks

Sweetening

Union Surcharges

EQUIPMENT Rentals

Cartage

Tax

MISCELLANEOUS (Payroll, tax, etc.)

UNFORESEEN EXPENSE (15% of total)

TOTAL PRODUCTION COST Fig. 18.0

RECORD PRODUCTION 295

High recording costs often result for one of these reasons:

1- The group is ill-prepared; it uses the recording studio for rehearsal, even for composition.

2- The performers can't read or can't blend or can't come up with the right style.

3- The producer can't decide what is needed.

4- The engineer can't come up with the right sounds.

5- One or more of the participants is in too deep; the tal- ent or the experience to compete professionally is lacking.

Some of these problems will remain, no matter how well-prepared the participants may be. But as artists' royalties continue to be gobbled by inflating costs, it should occur to more people in the industry that huge savings can be made right in the studio.

If the project in question is being handled by a recognized production

company, the record label will probably transfer the amount called for in the budget to that firm. But if the producer works alone as an indepen- dent contractor, the parties may find it more efficient for the label's finance department to set up a project draw account — encumber the money and make it available for the producer's expenses. Such an account is often called a "recording fund." As explained in Chapter 17, if the master tape is produced for an amount less than the fund, some con- tracts provide that the balance can be retained (by the artist or the producer, depending on their contract with each other) as an advance from the label against royalties.

Recording funds are more often overspent than underspent. Unfore- seen events, or just bad luck, cause many projects to get more expensive than planned. If the producer exceeds the budget by no more than 10 percent, there will probably not be a reprimand by the employer. If running over by more than 10 percent or so is anticipated, permission to do so should first be obtained from the employer, or the producer may have to eat the difference. When a project is nearing completion and has devel- oped momentum, most labels will permit reasonable budget overruns.

Whether the production money is transferred or kept in-house, the label will assign some individual to monitor the account. That person is charged with the responsibility of keeping track of this money flow on a day-to-day basis. The producer is asked to keep this budget monitor informed whenever expense is incurred. Some producers find controlling money flow distasteful and assign the

task to their accountants. This does not work well, because the producer is the only individual on the scene daily to observe where the money goes. It is a very real personal responsibility.

296 CHAPTER EIGHTEEN

CREATIVE CONTROL

Creative control refers to the right of the producer to make artistic judg- ments. The artist may have such high stature that creative control is relinquished to no one. It is more likely the producer and the featured

artist will share decision-making of this kind.

Probably the most controversial "call" in matters relating to producing

records is the selection of material. If the artist composes songs, the pro- ducer will want to hear everything the artist has in mind for the album. If

the producer feels some of the songs are weak, that view must be put across without being offensive.

The producer and the recording artist will be constantly pressured by

professional associates and friends, not to mention complete strangers,

to accept songs ". . . that will be just terrific for the date. Can't miss!" Pro-

ducers and recording artists must ward off these assaults, or they may end up with an album of "everybody's favorites." Selecting repertoire is

too serious a business to be influenced by this kind of favoritism.

With rock bands in particular, the producer, at the outset, will have the

group run through all the material it presently has available. The produc-

er has the difficult task of selecting the best material, rejecting the

weakest, without offending the writers in the process. Many groups are insensitive to audience endurance. Every piece seems to include a five- minute guitar solo. The producer must persuade the musicians that material of interminable length probably won't get on the air, even with

AOR stations.

The Professional Relationship — Unless the producer is new to the field and hard up for work, selectivity in assignments is important. Even if

a producer is desperate to get a new career off the ground, it won't fly very far unless there is a mutual respect shared with the recording artist,

and they discover early on that they can work together comfortably.

Record companies understand this, of course, and will not link a contract

artist and producer who have doubts, professional or personal, about their compatibility.

The experienced producer will meet with the act to learn these things

before signing up for the project. Preliminary meetings are critical with a

new artist or group, in that the artists probably have only a dim view of what lies ahead, are fearful of the outcome, and tend to look upon the

producer as the only person in the world who can lead them to the promised land.

Producers say they find that at least one-half their time must be spent

as resident psychologists, appraising the personality traits of the individu-

als, learning who they can come down on when necessary, who withdraws for hours when reproached. Producers skillful in human relationships also search for the group's resident comic. (If the stereotype holds, it is often

the drummer.) Usually the funny man in the group can be counted on to relieve tensions all around when it is three o'clock in the morning and everyone is getting surly.

After the producer and the act have selected the material, they must

lay out how each song is to be treated. Does this need strings? Is some

RECORD PRODUCTION 297

of the material going to be most effective when presented with complete simplicity? And so on. When these kinds of decisions are made, the producer engages

arrangers to score the charts. Producers with strong musical back- grounds will probably work with arrangers in sketching out the arrange- ments, to increase the likelihood that the producer's conception will be implemented.

If the act and the producer have reached a working understanding on how the material is to be treated, rehearsals normally follow, to make sure the music is prepared before going into the studio. Organized groups rehearse for free, of course. But if the charts call for added instru- ments such as horns and strings, established session musicians will expect to be paid, often at straight recording scale, just for rehearsals. It is to be hoped the producer figured this expense into the budget.

If the charts call for outside singers, the producer needs to know which AFTRA contractors can deliver what is required. If session singers are used, it is likely the contractor will either score the voice parts, or

work alongside the instrumental music arranger to assure coordination.

SELECTING THE STUDIO

There is an oversupply of good recording studios, many of which are going broke and are actively searching for producers with money to spend. The producer of long experience will have accumulated rate cards of good studios located in cities where recording might take place in the future. This kind of rate card is similar to those used by broadcast- ers to explain the various kinds of time costs for services. But rate cards

quickly become out-of-date; the producer could be in trouble with the budget if calculating studio expense on last year's data.

The producer has a more important decision to make than the cost of studio rentals: contracting for facilities where the artist wants to record. "Wanting" for most artists has more to do with subjective feeling about the recording environment than any technical appraisal of the equipment or acoustics. No seasoned producer will ever insist on recording in a room where the artist either does not feel comfortable, or has had unpleasant dealings with studio personnel.

In addition to the need for congenial atmosphere, the producer will make the studio selection where a good sound can be achieved and where the maintenance of the hardware is reliable. If a particular studio has a staff engineer who can meet those needs, that facility may be favored over one with more sophisticated equipment. The producer who brings in a free-lance engineer can expect an experienced mixer to adapt quickly to a new console. A producer who is particular about equalization and timbre will usually

go into a studio a day or two early with the engineer to check out the console, the monitoring system and the acoustics. Some conscientious producers even come in with graphic equalizers to check playback sys- tems. One who goes to this effort (not uncommon among top pros) will bring in a familiar tape and/or disc. If the playback does not sound exact-

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ly as it should, time will be spent with the engineer and a house engineer to adjust equalization of speakers and amplifiers. It is important to know precisely what sounds are coming over the monitors.

Seasoned producers are usually prepared for at least one disaster every 24 hours. One of their biggest problems is downtime in the studio. When the machines are not working properly, the loss is not so much in dollars as in momentum; the recording artists may be unable to regain what they had going prior to the equipment failure. Studio managers know how serious downtime can be and are quick to compensate for time lost when billing the customer.

The Recording Process — The producer just getting started in the field will learn early on that success is largely dependent on working well with studio personnel. As one successful producer put it, "Those people can help you or they can kill you."

As for the recording process itself, no book, no teacher can tell you how to pull great music out of a performing artist. This can be done only by gifted producers, most of whom rely heavily on intuition, instinct.

Producers find it easier to react to instinct and intuition when they ren- der "control sheets." Good memory is not sufficient to recall everything that goes on during a recording session. While practices vary, most pro- ducers keep a written record of what is laid down on each track. The forms used cite the artist, the date, the studio, song titles, "take" num- bers, timings and footage counts for the start and end of takes. Of course, if the recording process is digital with search-and-find capability,

location and level settings are readily recalled with the push of a button. Since so many master tapes are edited for application to videos, care-

ful record keeping during audio recording will make this transfer to video easier and less costly.

As the recording process goes forward, the producer will be chal- lenged from all sides. While the first concern will be the music, the producer is supposed to know enough about recording technology to work effectively with the engineer. The self-confident producer will encourage the engineer to contribute creatively to the recording process. When the producer cannot come up with a solution to a problem, per- haps the engineer can save the day. Usually the most successful producers take all the creative input they can find, whatever the source.

MASTER DELIVERY REQUIREMENTS

Even when the producer has survived production of the master tape, the job is far from over. If the producer has been retained by a record com- pany, the firm now imposes specific delivery requirements:

1- The master tape must be mixed down to two-channel stereo, and formatted for sides one and two of an album. The label will probably also expect the producer to pull out several bands for possible release as singles. If so, the singles must be edited to appropriate lengths.

300 CHAPTER EIGHTEEN

2- Letters of consent must be obtained from all individuals involved in the project, allowing the label to use their names and photographs in promoting the records. Release letters must also state that the artists are unen- cumbered by conflicting recording agreements with any other firm.

3- The producer must deliver letters of consent from all pho- tographers and graphic artists for use of their works.

4- The producer must furnish evidence that all copyrights are clear and the owners have granted mechanical licenses for each cut on the album.

5- Lyric sheets must be submitted. Labels want to see in writing whether the song texts are acceptable for radio broadcast.

6- A technical credits summary sheet is required — setting forth such details as the names of the engineers, where the master was recorded, who the arrangers and musical director were, the names of the union contractors, who mastered the tapes, and identities of artists' personal managers and booking agents.

7- A sign-off statement is required from the producer provid- ing evidence that the bills have been paid, and there are no liens or encumbrances that might prevent the label from releasing the record.

8- The producer must collect W-4 forms for every individual involved on the project to whom wages were paid.

The smart producer won't mail in the master tape, but will want to make an appointment with the person who set the job up, then walk in with the tape and present it personally. At the same time at least two or three cassette transfer copies should be delivered, so that the A&R peo- ple and other executives in the firm can hear the producer's work.

Assuming the label accepts the master, the producer will then be paid the other half of the production fee or advance on royalties. All of the responsibilities under the production agreement have been met, but the seasoned producer will want to take part in controlling mastering of the tape. It is customary for the record company to pay for mastering and all subsequent steps leading to manufacture of the recordings. But some companies will try to charge mastering to the artist's and producer's royalties. This is improper and should not be allowed. Some conscientious producers continue their post-production ser-

vices up to and including the checking on test pressings, to make sure all the effort invested in the project will be reflected in the ultimate sound of the music.

RECORD PROMOTION, DISTRIBUTION and MERCHANDISING

THE MARKETING PLAN

Record companies will go to extreme lengths to get the best possible sounds on tape. But to this point, all they really have is debt. The only way they can begin to recover their production expense is to get the word out — try to get people interested enough to buy the recording. It should be easy; millions of music lovers do this every week. For many people, recorded music is their first choice for entertainment. If the audience has the desire and the buying habit, why do record companies go through such agony in trying to get people to buy?

Agony it is, because everyone knows that the stakes are high. If you win, you win very big. If you lose, you can drop a half million dollars on one campaign. Worse yet, contract artists will defect if your marketing people cannot move a lot of records.

To understand how records are promoted, it Is important to remember the point made earlier: this is a mass market business. You must develop sales, not only nationally, but all over the world. Because of production and promotion costs going out of sight, a company has to move several hundred thousand records quickly just to break even.

302 CHAPTER NINETEEN

No one knows where the break-even line falls today. All top manage- ment can tell its promotion people is, "This time out, ladies and gentle- men, we have to sell more records than we ever thought possible before." Through most of the 1970s, many firms did just that. The gold record be- came so common, the "platinum record" was conceived. Then superhits began to go double, even "triple platinum." But these are the superhits of the superstars. Several major labels were asked what percentage of their releases paid their way. They gave very divergent estimates, ranging from Columbia ("Our creative people don't know; ask the computer guys.") to Elektra, a firm whose ads in the trades claim that practically everything it touches turns to gold. Many labels think they are holding their own if some- thing like 20 percent of their releases break even, with perhaps five per- cent earning enough money to finance their whole operation.

Personnel — With some labels, promotion efforts are supervised by a top officer of the company, probably someone holding a title such as "Vice-President, Marketing." No agreement exists on distinctions among such terms as "promotion," "marketing," "merchandising," "publicity" and "sales promotion." In practice, some of these labels are used inter- changeably. This accounts for the variance among record companies concerning department names and job titles. Whatever the label a com- pany attaches to a particular department, whatever job titles are used, everyone active in this general area has the same objective — to get people to buy records. Large labels might include in their marketing de- partment the following personnel:

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• Merchandisers — They conceive, then execute, sales cam- paigns and provide sales aids to distributors and retailers.

• Promoters — Located in the home office and in regional of- fices. Main task: get records on the radio.

• Publicists — They work mostly out of Los Angeles and New York City, trying to plant stories and "news" releases with print and broadcast media.

• Advertising Managers — They conceive, produce and place ads in print and broadcast media.

The Concept — The only hope a record company has of attracting at- tention with a new record is to conceive a unique marketing plan. This is difficult for a firm such as Warner Bros., which releases over 20 albums a month. That figures out to about one album per working day. Such a de- mand for fresh marketing ideas challenges the most creative staffs.

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 303

Whether the record company calls its marketing division "creative ser- vices" or "merchandising department," it attempts to put together a marketing campaign that ties in with the nature of the music and the style of performance. Conscientious merchandising people usually start their

thinking by listening to the music they are going to try to sell. At this early

stage, the company's marketing people try to come up with a "hook." Those invited to help conceive the marketing plan might include the pro- ducer, head of merchandising, the art director, and the heads of promo- tion and publicity for the label. This group might decide the whole cam- paign should be hung on one simple slogan.

Once this group invents the marketing concept, the head of merchan- dising directs the art department to render sketches; a photographer or painter is engaged, the copy is written and the "mechanical" (assembled graphic elements) is rendered.

Meanwhile, other merchandising people are trying to implement the marketing plan in the form of P.O. P. — industry shorthand for "point-of- purchase" stimuli. P.O.P. might include posters, banners, cutouts, stand-

ups, special display racks, window displays, flags and streamers, perhaps souvenir items the record merchant can give away to shoppers. Each of these P.O.P. items carries out the basic merchandising idea.

P.O.P.'s are very costly to produce, but record companies seem to be- lieve the investment in these sales stimuli pays off.

While the packaging art and P.O.P. are being produced, the firm's ad- vertising department is inventing print ads, perhaps broadcast spots, too. This advertising, properly conceived, will further bear out the marketing

approach being used for album art and P.O.P.

RECORD PROMOTION

Radio — Though radio is no longer the sole influence on record sales, sharing the spotlight now with MTV and other video resources, it is still a heavyweight medium for record promotion. With so many changes occur- ring in the radio/video industries — the sale of radio stations for tens of millions of dollars, for instance, along with the fragmentation of radio for-

mats and the escalating success of video — promoters have been forced to realize that they are in a business, and must therefore approach their jobs in a far more businesslike manner than was traditional. "Less flash and more substance characterizes today's radio promoter," according to a vice-president for promotion at Capitol Records; promoters are more con- cerned with facts and figures rather than simply trying to impress program directors with the "great new song" they have to offer. A promoter does not have to twist arms to persuade even major mar-

ket stations to go with a new release of a superstar. Such product is largely presold, and program directors will add a new release from an artist of international stature even before receiving word that other sta- tions are also going with the record. But new releases of a performer below superstar status require promoters to really hustle, because com- petition for airplay is fierce.

304 CHAPTER NINETEEN

Promoters always have a difficult time breaking new artists. While dis- covering and establishing new talent does remain an art form, the promoter's job has been made somewhat easier by two factors: the prolif- eration of formats and stations that "narrowcast," and the expansion of once-locked playlists by some radio stations.

Large record companies employ a staff of full-time people to handle promotion in-house. Outside promoters, known as "independent promot- ers," are also used routinely.

Reporting Stations — Knowledgeable promoters focus nearly all their attention on reporting stations. A reporting station is one that the trade papers and tip sheet publishers telephone each week to learn which records have been programmed. This is ttie information ttiat caus- es a particular record to land on the charts — or fall off and disappear. In the United States and Canada, there are 200 to 300 reporting stations (their number fluctuates). Their program directors are asked by the chart makers, not only what records (singles, album cuts) are on their playlists, but their "rotation" — how often particular records are scheduled in a 24- hour period. Reporting stations are also asked which records are "add-ons" for the week and which ones are being dropped.

Warner Bros. Records Creative Services department staff artist designing

album cover, sales aids.

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 305

If a new release can gain airplay on influential reporting stations, it may land a position on the cliarts. If that first appearance should occur, say, in the mid-range of a national chart, the promotion people may have a potential hit on their hands. At this point, most record companies accel- erate their efforts and instruct their promoters all over the country to intensify their campaigns, call on program directors, show them the charts and tip sheets, and try to persuade the station to add the record. The pro- moter is in a position to prove the claim — that the new release is starting to break nationally. The program director may now be persuaded. Many stations, too timid weeks ago to take a chance, decide to jump on the bandwagon, not wanting to miss out on a potential hit. The promotion campaign could start to snowball. When strong national airplay develops, a hit is born. It happens all the time.

Sometimes there is a catch to this. Occasionally we have "turntable hits": a record manages to get good airplay, but people just don't walk into the stores and buy it. No one has come up with a satisfactory explanation for the turntable hit phenomenon.

To gain the confidence of radio program directors, promoters must es- tablish a reputation for credibility. What the P.D. needs most is useful information, not fast talk. The station needs to know whether a new re- lease fits its programming and whether the record is gaining airplay elsewhere. If a promoter cannot provide these assurances to the station, there is one other hope: the music might appeal to the personal tastes of the P.D. or musical director. Occasionally, these decision-makers will pro-

gram a new release just because they like it, but few stations permit personal tastes to have too much influence on these important decisions.

Videocasts — The promotion of records is inextricably bound to "videocasts" — a term used here to cover all TV-related transmissions of music, including conventional TV, cable, pay-cable and direct satellites. Record labels learned years ago that sales could be increased by linking music to visual entertainment, whether the medium was a movie musical, a TV broadcast or a music video promotional clip. Record companies in- creased their video clip production in the 1980s, particularly in an effort to stimulate sales of rock records. Rock fans took to them enthusiastically when MTV and its imitators increased exposure to the clips via cable TV. Broadcasters and cable companies now transmit dozens of video clip shows, and the impact on record sales is clear: videocasts can not only increase record sales, they can break new acts, even prolong the chart life of new records.

Record promoters today, already burdened trying to influence radio playlists, are busier than ever trying to get their promotional clips video-

cast. They go after MTV and similar outlets because they have huge national exposure. Just as with radio, when they can't get "add-ons" by networks and major market stations, they work secondary, even tertiary, stations in smaller markets for video clip exposure.

The music video field is discussed further in Chapter 23.

Mailings, Telephone Follow-ups — Since only a small number of sta- tions can be reached by personal contacts, promoters mail free

306 CHAPTER NINETEEN

promotional copies to a larger number of outlets. Mailing out this many ifree records is extremely expensive, and experienced promoters use a

very select mailing list, one that includes mostly "reporting stations" or stations where the promoter has personal contacts.

Mail campaigns need to be followed up by telephone calls. ("Hello, Frank. Did my stuff come in? How'd you like it? What did you find time to listen to? What have you added? No? How about next week? So-and-so is breaking big in Toledo; you won't want to miss out on it. How can I help you . . ." and so on.) The success of this kind of telephone call follow-up depends, not only on the suitability of the records mailed, but the rapport

between the caller and the station programmer. Mailing free promotional copies of video clips is on the rise in an effort

to attract the interest of programmers; promoters also distribute loaned

copies. They follow up with telephone calls urging the clips be added or

placed in more frequent rotation.

Club Promotions — Dance clubs have sometimes been effective places to test new records. Prior to commercial release, record labels will sometimes remix to long versions of singles, favored by dancers, then get

them into clubs and test patrons' reactions. If the clubs report strong re-

sponse, the label will be encouraged to go into a general commercial

release. Most record labels supply clubs through companies which are in

the business of setting up record "pools" of new releases for their clients. If strong word of mouth develops through dance clubs, and if the same

release gains good airplay in that region, the single may be headed for the charts.

Another way dance clubs contribute to record promotion is by showing music videos of new releases. Clubs obtain most of their tapes through video distribution companies which act as liaison between record compa- nies and clubs. Dancers who become literally surrounded by the club's multiple screens and overpowering sound systems may be stimulated to later walk into a store and pick up a copy (audio or video) to continue en-

joying the music at home. While this kind of promotion often works well, the record companies

and video distribution firms are, at the same time, hurt by illegal copying of music videos by clubs. The practice is widespread and represents yet another example of copyright owners' vulnerability.

Campaign Management — Most labels assign one particular indivi- dual to manage a promotional campaign. That manager receives a bud- get from the company's promotion director, and is expected to develop

regional, then national airplay. The manager may also have the respon- sibility of assigning particular promotion personnel to certain geographic

areas and to coordinate the efforts of staff promoters working out of the

label's branch offices. The director of national promotion will put out the

word on timing of the campaign and how much attention and emphasis it is to receive.

This "campaign manager" is sometimes called a "tracker" because the

job's responsibilities include keeping track of which stations and video-

casters are adding or dropping the new release. If the tracker observes

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 307

good airplay developing in a particular geographic area, the tracker may double efforts there in an attempt to develop a regional hit. If a regional

breakout occurs, it can sometimes be built into a national one.

The tracker or project director also has the task of following the progress of a new release on the trade charts. The entry, rise and fall of a record on the charts provides guidance on how to spend (or withdraw) the money available for a particular campaign.

PUBLICITY

Many record companies have "publicity" departments separate from their promotion operation; others combine these two activities under a "mar-

keting" division. Some record companies handle their publicity activities in-house; others have a small resident staff and engage publicists and PR firms to help out. A small label may depend totally on an outside firm for PR.

Even the most imaginative publicist cannot catch public attention un-

less the public can be persuaded that something is happening — a new record is released, the artist is on tour, or a TV appearance is scheduled — whatever. When the publicist has no story, one may be invented. The job centers around the task of getting the artist and the records talked

about. Many merchants believe the most effective sales force is word of mouth. If the record buyer hears the talk and catches the music on the ra-

dio, the listener might enter a store and make a purchase.

ADVERTISING

Advertising can be an important component of record promotion. A vari- ety of media have been found effective — print, broadcast, point-of-sale, direct mail, "hitchhikers," and "specialty" campaigns. All advertising

seems to help sales, but the difficulty is measuring whether the resulting sales justify the expense. Now that records are a mass consumer prod- uct, large labels find it profitable, from time to time, to place ads in mass print media — magazines and newspapers. To justify the high expense, several records are pushed in one ad, thus pulling down the "cost-per- thousand" expense per record. Print ads in newspapers are often placed

by a local record store or chain. But all or part of such ads may be paid for by the record company. Sometimes record stores request that a label

finance a print media campaign in their area. Or, the label itself initiates

print ads, particularly when it is trying to coordinate advertising with the promotion of local concert appearances of a contract artist.

Opinions differ concerning the dollar return from records advertised on

radio and television. Among the most common and apparently effective types of broadcast ads are for reissues of repackaged records ("Mail

$8.95 to station XYZ and get your cassette of 25 country hits!") Purveyors of this merchandise have bought the masters at probably pennies on the

dollar, then get low-cost spots by offering the TV stations a percentage on the sales they generate.

308 CHAPTER NINETEEN

INTERNATIONAL PROMOTION

Multinational record companies may spend as much money and effort promoting releases abroad as they do in this country. This is justified, in that foreign sales aggregate over one-half of world sales.

Increasing numbers of artists are becoming international stars. They have had the good fortune of being with a record company that has a worldwide promotion setup, or one that licenses its foreign releases to others. A multinational entertainment conglomerate must determine, each time out, whether to have foreign releases occur simultaneously with the American release, or whether to test the record here before promoting it abroad.

Sometimes the record company does not have the option of delaying foreign releases: the star's contract may require, not only the simultane- ous release of the records abroad, but specific countries where the label must make the records available.

The big record companies maintain a number of regional offices in for- eign territories which have the responsibility of releasing and promoting the firm's records. Among the strongest European markets for breaking new American records are The Netherlands, the U.K., Germany and France. American firms with international operations know the special promotional techniques that are most effective in these countries.

Foreign promotions cannot be handled like those in this country. In all these territories, far fewer radio stations are available for record expo-

sure. The stations that do exist may be state-controlled and allow no advertising; time buys may be unavailable. The press in some countries look upon promotion campaigns that involve trinkets and other giveaways to media people as bribery to persuade writers to say nice things about a commercial release. On the other hand, a country like Japan is often ahead of the American promoters in hyping new records by showering gifts and favors on media personnel. Some record promotions are so heavily financed, the American pro-

moters fly in the foreign media people to cover press parties and other special events tied in with the campaign. These junkets for the foreign press are to the west coast ("Fly to Hollywood and meet the star!") for Japanese media, and to New York for European writers and broadcast- ers.

When a promotion campaign is financed at this level, it could be said that the record company is "manufacturing" a star — "inventing" success. It often works — for a while. But a "manufactured" career will not sustain for long unless the public hears some measure of talent behind the hype.

RECORD DISTRIBUTION

If the promotion people have created interest in a new record, the manu- facturer must find a way to get the product to potential customers — wherever they may be, at the right time and in sufficient quantities. This is a very difficult thing to do well, for the record market is unpredictable and

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 309

widely dispersed. After fifty years of trial and error, even major labels are

still trying to figure out a better distribution system. As for small labels, it

has been the lack of effective distribution that has caused so many to fail in the marketplace.

Until about mid-century, only a handful of companies were in the

record business. Each had its own procedure for delivering its products to customers. With the rapid proliferation of labels in the 1950s, newcomers

to the market often lacked an understanding of the essential need for a

national network of distributors to get their products to retail outlets.

Smaller labels would seek larger ones to distribute their records. Other

new labels contracted the services of the growing number of independent distributors which were setting up operations in most markets. Some of the distribution problems that have troubled the industry since the 1920s

remain today.

Record retailing has been plagued by price wars among merchants, and this impacts directly upon the distributors. Merchants fighting to re-

main afloat amidst irrational retail pricing competition appeal to their

distributors for better discounts to help them survive the competition. Dis-

tributors can respond to these appeals most often when they can sell at high volume. But when a merchant becomes too aggressive in buying and becomes burdened with expensive inventory, the distributor will soon hear a plea for lenient "return privileges."

Distributors try to strike a balance between overselling their accounts

or offering an undersupply. With the former, both parties suffer the incon-

venience and expense of "returns;" only the shipping industry profits with

returns. But when a distributor's customers buy too conservatively and a record hits suddenly, both parties miss out on sales when the merchan- dise is not available to the buying public. Smart distributors try to guide

retailers in their buying so as to minimize returns, because when mer- chandise flows in the wrong direction, everyone gets hurt.

MAJOR LABEL DISTRIBUTION

Large record companies handle distribution through their own branch of- fices located in major cities across the country. They distribute their number one label and affiliated labels. Some large firms also contract to distribute products of independent record companies.

Major label branch offices normally have two divisions. One handles regional promotion, the other concerns itself with distribution and sales.

Promotion people working out of these branch offices invest most of their

time pushing the company's main label. Of secondary concern is promo-

tion of the company's affiliated labels. If the company has agreed to also promote "associated" and independent labels, the promotion people try to

perform a respectable job for them as well. Branch offices of large record companies employ salespeople, too.

Some companies call them "merchandisers" or "route men." Their task is to call upon retailers, try to sell them, perhaps deliver the actual records,

help set up promotional displays and do what they can to help the retailer

310 CHAPTER NINETEEN

attract customers. Record route people work on salary or commission, or a salary plus an override. These are not the most glamorous jobs in the music business, but a number of ambitious merchandisers have graduat- ed to management positions and gone on up the corporate ladder.

Distributors or the home office set up sales contests from time to time to motivate their field forces. Winners sometimes enjoy not only a pair of theatre tickets, but occasional trips to Hawaii. Large labels also set up na- tional sales meetings for their distributors, usually paying their expenses for a weekend in Las Vegas or the Bahamas. Most of these meetings are about an equal mix of work and play. A record company's contract stars are asked to perform live for these select audiences of distributors, pro- motion people and salespeople. These meetings cost a fortune, but the labels find that offering their people this kind of motivation produces suffi-

cient action back home to justify the cost.

INDEPENDENT DISTRIBUTION, NAIRD

WEA, CBS, BMG/RCA and other multinational firms handle the prepon- derant share of record distribution. But they don't do it all. A share of the business is in the hands of independent distributors. They provide ser- vices for hundreds of independent labels. In cities where a major label lacks a branch office, an independent distributor accommodates its needs as well.

Independent distributors usually provide promotion services, too. Some independents are just order-takers. Others have a staff of enter- prising salespeople and merchandisers who call on record stores, deliver merchandise, set up displays, etc., much like the major label branch of- fices do.

Large independent distributors are confronted with pleas from new firms to take on yet another line. If they consider adding new labels, man- agement must determine whether it has the capacity to handle the increased inventory and the will to tie up additional working capital on un- proven suppliers. If they stocked every record that appears promising,

they would soon go broke. But if they fail to stock new product that sud- denly bursts wide open at the retail level, their local accounts will sometimes bypass the local distributor and buy directly from the record manufacturer. These kinds of management decisions have been poorly handled by many distributors. They are now out of business.

Since 1972, the interests of these independent companies have been represented by NAIRD, the National Association of Independent Record Distributors. The association was originally organized to set up a distribu- tion network and to form a unified voice in the industry for small labels and independent distributors. Its national conventions provide small firms

a convenient place for exchange of information and for the forming of dis- tribution arrangements for companies not affiliated with the major labels and their distribution networks.

Distribution Chains — As the less well-run independent distributors go under, their places are taken by yet other investors who believe they

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 311

can make it. In recent years, smaller distributors have been bought by distribution chains. As with other store chains, conventional wisdom has it that bigger is better; distributors linked together can buy more records at

a greater discount, then pass along these savings to their retailers — or put the money in their own pockets.

Because of strong competition from the huge international distribution

organizations, it appears that the little firms' best chance of survival is of-

ten to link up with a distribution chain.

One-Stops — One-stops are a special kind of distributor. They came into being in the 1940s mainly to accommodate the needs of jukebox op- erators. A one-stop is a distributor who handles all labels, including the majors. One-stops are set up to service not only jukebox operators, but

small rack jobbers and mom-and-pop retailers. Most of these customers place small orders, often dropping by to pick up the merchandise them-

selves. Because of the low volume of sales per customer, one-stops cannot offer as good a discount as a full-line distributor. But their cus-

tomers pay higher prices because they appreciate the convenience of a

one-stop operation.

Rack Jobbers — Rack jobbers are the individuals and companies that contract with retailers — department stores, discount stores, etc., for the

312 CHAPTER NINETEEN

RECORD DISTRIBUTION PATTERNS

MANUFACTURER

DISTRIBUTORS Branches or Independents

or One-stops

RETAILERS

RACK JOBBERS Jukeboxes

RECORD CLUBS

CONSUMERS

TV PACKAGERS

CUTOUT whole"=;ai FRR

Fig. 19.0

use of space to set up display racks of records which are intended to at-

tract retail sales from shoppers who pass by.

Record Clubs — In 1955 Columbia got the idea that records could be sold directly through the mail. It was right; the Columbia Record Club has been running well ever since. Shortly after CBS got started in the field, RCA (now BMG), then Capitol Records, followed in establishing record clubs (Capitol has since discontinued this kind of promotion). When record clubs began, retailers threatened court action, arguing that a big

company pushing sales of only its own label through the mail constituted unfair competition and restraint of trade. Columbia responded by expand-

ing its club offerings to include products from other labels. Record clubs

now offer for sale any record that proves sufficiently popular to earn a list- ing in their advertisements.

Club memberships are developed, as we know, through full-page ads in national magazines offering a starter supply of records below cost, to- gether with a commitment from the "member" to subsequently purchase several records per year at the regular price.

Clubs are reluctant to disclose their grosses, but retailers still believe

that record clubs cut heavily into their walk-in business. Still, most labels

don't view these different channels of distribution as cannibalistic.

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 313

MERCHANDISING AUDIO CASSETTES, COMPACT DISCS AND RECORDS

From the distributor or label warehouse, the goods flow to retailers. The retail merchandising of recorded music constitutes one of the largest seg- ments of the music business. Merchandising success depends importantly on how the retailer assesses buyer preferences, both as to configuration (tape vs. disc) and genre (jazz vs. classical).

RIAA has developed estimates indicating what kind of outlets account for the greatest number of audio cassettes, CDs and records sold:

Record stores:66 percent

Other stores: 20 percent

Record clubs: 10 percent

TV offers, direct mail: 4 percent

Source: Chilton Research Services

RACK JOBBERS

Before we discuss the conventional record store we will look at a different kind of supplier-merchant, the rack jobber, who moves about one-half of the audio records and tapes sold. Rack jobbers even serve some kinds of conventional record stores.

When the customer walks into a Sears store or a K mart, it is not pos- sible to know just by looking around whether that record selling area is a department of the store, whether it is space leased to an outside firm, or whether it is serviced by a jobber who supplies the racks and bins. Chances are, a rack jobber is servicing that record selling operation.

Jobbers work out various kinds of contracts with the store that supplies the retail space. Among the most common:

1- The jobber rents out space for racks and bins from the re- tailer for a flat monthly fee. The jobber offers complete servicing of the area and retains all the money collected from sales.

2- The jobber pays the host store a percentage of sales.

3- The jobber and store management work out a minimum lease fee, then if sales exceed an agreed-upon figure in any given month, the jobber pays the store an override.

Retailers like record racks on their premises because they can often make more profit per square foot of floor space from this kind of mer- chandise than they can from other lines. Merchants also benefit from in-

314 CHAPTER NINETEEN

creased shopper traffic generated by the high volume of record buyers. When rack jobbing of records was in its early stages (late 1950s, early

1960s), jobbers were content to lease small areas near checkout stands. These tiny displays had space to accommodate a very limited variety of records. Jobbers tended to display just the current superhits — and only some of them. The balance of the limited space was given to cutouts (overstock sale products). This limitation of space helped foster the hit records syndrome: only the hits were made available on the racks. Newer artists, lesser known records never got a chance to be seen or heard.

Rack jobbers continue these small operations in a variety of locations. But today, some installations rival in size the conventional record stores. When a rack jobber sets up a large number of racks and bins, the jobber needs clerks to assist customers and restock supplies daily. Where a rack setup of this size is in operation, it is practically indistinguishable from a leased department.^' When a jobber leases enough space for this kind of operation, the jobber has a major commitment of capital, and will proba- bly have a dedicated checkout counter and handle money separately. Leased departments are common in department stores and discount chains. Large retailers can demand hefty lease payments from the record merchant/jobber and. at the same time, are spared all responsibility of running the record sales department.

Large retailers and chains, obsen/ing the success on their premises of these record sales operations will, from time to time, decide to take over

the same space, install their own record department management, then pocket the percentage formerly kept by the rack jobber. Rack jobbers try to anticipate this kind of temptation by offering the store trouble-free, prof-

itable operations, sparing retailers the problem of trying to run a kind of

retailing they do not really understand.

Individuals who started out as rack jobbers or distributors are now also heavily involved in operating "standalone" retail outlets. The lines be- tween record distribution, jobbing and retailing are now blurred; some of the most successful merchants operate in all three areas. This blending of record selling operations was originally accelerated by the need of merchants to buy products at ever-higher discounts through

volume purchasing.

RETAIL STORES

Since the introduction of record racks and record clubs in the 1950s, the conventional retail record store has had some rough times. The small op- erators in the retail record business had a flowering of sorts in the 1960s

with the rise of rock and roll and folk-rock. Many of these stores became known as ^'head shops" and were patronized by what were called "hip- pies," young people on the prowl for new records, companionship and other sensory stimuli. Record head shops tended to disappear as the hip-

pie generation gradually dissolved into mainstream society. The only counterpart extant today for this kind of very small retail operation is the

"mom-and-pop" record store.

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 315

One type of relatively small record store does well when it is well-man- aged: the proprietor who locates in a special neighborhood, earns the confidence of a small but loyal clientele, and stocks the particular kind of music that appeals to that community. For example, one such operation does a strong business in Boston selling polka records.

Another kind of specialized record store is found in the inner city, where entrepreneurs catering to black music tastes find a ready market. Yet another kind of specialized record store is often found in shopping communities adjoining a large university where the market for classical music is strong. When staffed by knowledgeable clerks, such stores may do well. On the whole, though, the small record stores are disappearing. One

reason is that they cannot buy enough stock to receive an adequate dis- count from distributors. In turn, this means they cannot discount their retail prices to compete with larger stores. Another reason the small store rarely survives today is that many customers want to browse through endless bins of merchandise. Tastes are more diverse now; a customer may favor country music, but might stumble on something interesting to take home in adult contemporary or jazz. Only a retailer with a large in- ventory of diverse styles can attract this kind of customer.

Retailing today is much more complicated than in the past. Even retail operations of medium size are expected to stock cassettes, CDs and sin- gles in multiple formats, covering not only current releases, but past hits.

To further compound the retailer's inventory problems, the stock should cover all major styles, from pop to classical. The video explosion has dic- tated that many major retailers carry not only music video titles, but theatrical film releases as well. If this weren't enough, customers will also expect to find blank cassettes and a full line of accessories. Stocking, controlling and merchandising such a diverse inventory demands working capital more than 10 times greater than in simpler times. Record retailing today is big business.

Prices, Discounts — When a merchant manages to pull together enough working capital to set up a retailing operation, the problems have just begun. One of the greatest challenges is determining at what price the merchant can afford to buy — and then what kind of discounts can be offered customers. Distributors will romance the retailer with all kinds of discount offers, seeking to encourage greater and greater volume. But if the merchant is persuaded to buy 1 00 records at special discount on one release, the pool of money (called open-to-buy) available to buy other merchandise shrinks in proportion. As the old saying goes, the skill in bal- ancing these conflicting interests separates the men from the boys. When the retailer reduces cash through heavy purchasing, the next recourse is to persuade the banker to loan just a little more, then a little more. Credit at the bank and with distributors can soon become overextended and the aggressive merchant may have done better going into the fish business.

Many retailers complain that the record companies and distributors do not treat them well. Their complaints are voiced in the trades and at asso- ciation conventions. The most prevalent complaint is labels' discounting

316 CHAPTER NINETEEN

policies; to the merchant, they are generally considered inconsistent, in-

adequate, sometimes unacceptable. The distributors and manufacturers counter with the argument that the retailer gets a free ride in that most record buyers enter a store presold anyway, through radio and video air- play.

Point-of-Purchase Stimuli — Record companies often have great dif- ficulty getting their releases accepted for airplay by radio stations. Even when new releases do gain airplay in some parts of the country, label pro- motion people find it very hard to attract record buyers nationally, which

they must do to achieve an acceptable number of sales. Even if a new re- lease gets good national exposure on the radio, every label that can afford it develops a variety of wstva/ sales stimuli to attract customer inter-

est at the retail site. As explained earlier, this P.O. P. material assumes a variety of forms, ranging from posters to mobiles to souvenir trinkets

bearing evidence of some connection with the product being pushed. Retailers that have the space welcome these label-supplied sales

stimuli, because many customers are not "presold" when they enter the store. The merchant tries to provide a stimulating environment for poten- tial customers, hoping they will feel free to browse until they find what they want to buy. Experienced merchandisers have learned that the high-

est sales levels result from cooperation of the retailer, the distributor and the record company.

As music software retailing becomes a business of increasing risk, the smaller entrepreneur becomes easy prey for sale to a retail chain. The growth of record chain operations results from the same economic pres- sures already cited: to make a profit, the merchants must find ever new ways to buy cheaper, and the mass merchandiser is certainly in a better position to do this than mom and pop. Another advantage is that chain store advertising is far more cost-effective than a mom and pop's cam- paigns — which can rarely include an important medium such as TV. Chain store operators provide an additional advantage to their compo- nent units: when one store overbuys and gets stuck with inventory, it can often shift some of this product to another unit in the chain that may have run short. Chain store members help each other balance their invento- ries.

Returns — Distributors and sales personnel regularly pressure deal- ers to buy more stock than they believe they can move. This pressure assumes various forms. The record company or distributors will often of- fer merchants liberal merchandise return privileges. In the past, practical-

ly all records and tapes in this country were sold on consignment: if you can't sell the merchandise, return it for full credit. In the 1980s, most la- bels and distributors tightened their returns policies. The practice now is often one that requires the merchant to return the stock within a pre- scribed time limit and to return only a prescribed percentage of goods ordered. Labels' return policies accelerated the demise of vinyl products, especially singles. When record companies disallowed the return of vinyl 45s, many retailers were unwilling or unable to continue stocking them.

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 317

CUTOUTS, REPACKAGING

Record manufacturers find it impossible to estimate how many records to press. If they underestimate demand, customers will ask for the record and cannot be accommodated. If they overestimate demand, they will find their warehouses stocked with dead merchandise. Once the demand drops sharply, the manufacturer will stop production. The inventory re- maining is known as cutouts. Retail outlets cannot move this stock at normal prices, and the manufacturer finds it prudent to unload this mer- chandise at cost or below cost on buyers who specialize in cutouts. These cutout merchants buy up quantities, warehouse the records, then vend them to rack jobbers and other retailers at a very low price. Their cus- tomers, in turn, offer these cutouts at extremely low prices. Both parties

usually turn a profit, and the retail customer gets a bargain. Some record stores find that their profit margin from cutouts is better

than from conventional sales. Some cutout companies buy or lease old masters, then rerelease artists, or fallen artists, who still have loyal fans ready to gobble up ancient hits at bargain prices. For example, for years cutout merchants and repackagers were able to sell "rereleases" or "new" releases of the big name band hits of the 1 940s. Another perennial reper- toire comes from the early rock and roll hits. Reissues of country music continue to sell, through "new" releases, new packages or cutouts.

Perhaps the most successful merchandising of old repackaged hits is seen on television. Companies buy up or lease masters from record com- panies holding the rights to old hits, then repackage them under their own labels. These repackagers favor such titles as "Sinatra's Greatest Hits" or "The Best of Country Music." They produce low-cost, hardsell TV spots, obtain time on TV and cable and provide a mailing address and toll-free telephone number for viewers to place their orders. Some operators in this field manage to promote repackaging deals without clearly defined li- censing arrangements. But the 1976 Copyright Act made it easier to con- trol illegal or borderline operations of this kind.

NARM

The association most broadly representative of the interests of record sellers is NARM, the National Association of Recording Merchandisers. The organization's literature states that "Regular members include all cat- egories of phonograph record and tape merchandisers: retailers, rack jobbers, one-stops, independent distributors and other wholesalers. In 1 988, the NARM board of directors established a membership category for independent record retailers who obtain a majority of their income from one-stops. . . .Associate members include manufacturers and sup- pliers of phonograph records, tapes, compact discs, video software, accessories, and other types of product sold in what are primarily music outlets, suppliers of other goods and services utilized by record and tape merchandisers. . .(and) companies affiliated with the music industry in an array of different areas: trade press, other trade associations, BMI and ASCAP, etc."

318 CHAPTER NINETEEN

NARM issues a newsletter, reports on research which the organization sponsors, and offers articles on music business management and mer- chandising.

NARM assists its members by sponsoring seminars several times a year in various cities across the country where retailers, wholesalers and manufacturers can meet to address local issues.

Another important service is NARM's Recording Industry Internship Program which assists colleges in the education of their music business students for jobs in the recording industry. Since NARM does not offer these internships every year, interested colleges and students can get current information directly from NARM.

"Give the Gift of Music" — One of the most effective ideas NARM leadership has come up with in recent years is its Give the Gift of Music merchandising campaign. NARM conceived the promotion scheme in an effort to help its members sell more music merchandise as gifts during such heavy shopping seasons as Christmas, Valentine's Day and gradu- ation. The promotion campaign became a success nationally. NARM supplies merchants the Give the Gift of Music logo in all shapes, sizes and colors and provides ideas on how and where to use the logo and slo- gan in phnt ads, on TV commercials, decals and for imprints on products.

HOME VIDEO RETAILING — When MTV and its imitators started to broadcast record promo clips, no one anticipated the activity would break new acts, increase record sales, influence movie-making styles and, inci- dentally, revolutionize the entertainment industry. And when producers started linking videos together and packaging "long form" videos, it was discovered, again almost by accident, that viewers might want to take them home and see them again and again. When the video clips became popular, producers searched hastily for ways to sell the entertainments as software packages for home video use. Early on, software sales of video clips were slow. Some analysts believe that this kind of software will not fully realize its potential until we have more original programming, materi- al created specifically for the home video music lover.

Music videos were, at the start, largely limited to one musical style — rock — because MTV would not program much else. But MTV's second video service, VH1 and those that followed learned that other audiences could be attracted to video entertainments featuring pop music, adult con-

temporary artists, black, jazz and even classical music. How large a market share might music video cassettes and videodiscs

develop in the coming years? Here are two paraphrased quotations from music research analysts —

First Expert: "Music video software sales in the next five

years will surpass prerecorded music sales. No doubt about it!"

Second Expert: "Music video software? Investors are going to lose their shirts. Who buys or rents videos when you can see the same stuff on TV and cable — and for free?"

RECORD PROMOTION, DISTRIBUTION AND MERCHANDISING 319

How can we reconcile two such divergent "expert" opinions, both based on identical evidence. We cannot, of course. This sector of music mer- chandising is changing too fast to nail down.

Despite uncertainty about music videos, there is no doubt about the

young but already mature market for home video movies. They account for the great majority of video sales and rentals. In dollar value of annual

sales, videos designed for children come in second to movies. Music videos are next, followed by "how-to" videos and other miscellaneous

genres.

NARM has argued that the record merchants are most knowledgeable and experienced in marketing home entertainment software and should lead the pack in video retailing. But because music has failed to dominate

prerecorded video to the degree it has dominated prerecorded audio, an-

other type of retailer has emerged to merchandise video product. Hedging

its bets in the early 1 980s, NARM's leadership nurtured the creation of a sister organization representing retailers primarily involved with video, the

Video Software Dealers Association.

Though the thousands of video specialty stores have been effective de

facto rente/ libraries for videocassettes (and videodiscs), mass merchants such as K mart and some of the huge record chains sell the most home videos. Unlike video specialty stores, these retail giants can buy in suffi-

ciently large quantities to attain the maximum volume discounts. Some- times mass merchants use big video titles to entice customers into their stores where they will, presumably, make other purchases as well. Small- er market shares are held by various kinds of merchandisers, including

supermarkets, drugstores, bookstores, etc. Most of these retailers also

sell blank tape and accessories. As with audio, video merchandising is hit-driven. The rule of thumb is

that 20% of a store's inventory generates 80% of its business. But trim- ming the number of titles stocked can depress sales because customers

expect a good selection. With both audio and video, the retailer's ongoing

challenge is to stock enough of the hits while at the same time keeping a variety of slower-moving "catalog" product always available. And, always

keep open-to-buy, inventory and sales levels in balance. It's not an easy job.

FUTURE OF RETAILING

As entertainment delivery systems evolve, merchandising is adapting and

changing. Among the trends analysts see in the crystal ball:

•

Retailers are contmuing to specialize. Hardware will usual-

ly be mercharidised separately from its corresponding software.

Chiain stores will continue to gobble up smaller and less ef- ficient competitors.

Audio and video will be seen more and more as separate aspects of thie same industry

320 CHAPTER NINETEEN

• Retailing will be threatened, but not destroyed, by competi- tors promising to deliver similar entertainments by purely electronic means — whether coaxial cable, fiber optics, di- rect broadcast satellite, or whatever else may appear on the horizon.

The analog world is giving way to digital, and a whole new generation of electronic devices will merge computers with audio, video, data and graphics.

One of the most important areas of the record industry involves the oper- ation of recording studios, only a small portion of which are owned by record manufacturers. Except to industry insiders, the operation of recording studios is largely a hidden industry, most of the best of them remaining unknown to the public. But with several thousands of records, tapes and compact discs being laid down each year just in the United States, it is reasonable to estimate that the recording studio business

grosses several hundred million dollars a year. Though the industry is primarily based in New York, Los Angeles and

Nashville, there are professional studios across the country, with affili-

ates around the world, and creative resources everywhere. Thousands of individuals find full-time employment in this unique industry that requires the cooperative services of entrepreneurs, technicians, scien-

tists, designers, acousticians, managers and musicians. Here, art and technology must find accommodation.

While most sound recording studios limit their services to audio recording, in the major music centers it is now expected they will also offer film and television producers complete audio services for synchro- nizing sound with pictures. With the rapid expansion of various modes of video entertainment, increasing numbers of sound facilities in New York, Los Angeles and Nashville find it necessary (and profitable) to offer a complete range of recording services. Some studios are full production centers where audio is but one component of the operation. There are facilities which provide recording and processing for digital computer ani- mation and "visual synthesis." Musicians, audio mixers and video pro- ducers work side by side in these studios.

SMPTE (Society of Motion Picture and Television Engineers) hosts prospective members at Paramount Pictures Scoring stage, Hollywood.

SEMIPROFESSIONAL RECORDING

Recording occurs in every conceivable kind of environment, from the semiprofessional setup in a residential garage, to the 48-track monster studios which can now be found in dozens of cities in this country and abroad. As equipment has become more sophisticated, professional stu- dios were forced to raise their rates to amortize their investments. Hourly rental rates climbed out of reach for many potential users. In recent years, this has caused, not only an increase in home recording with amateur equipment, but a proliferation of what we can call semiprofes- sional recording. When a producer runs up a recording studio bill of thousands of dollars in a week or so, it does not take long to decide to arrest that outflow and divert it to setting up a personal recording opera- tion.

To accommodate the individuals who are attempting to do this, and to serve the investor who requires something better than consumer-quality equipment, manufacturers now have on the market an array of hardware that is called semiprofessional equipment. Most of this hardware is supe- rior to the best home-type machines, yet cannot perform or withstand the

STUDIOS AND ENGINEERS 323

constant use of fully professional equipment. The machinery we are dis- cussing here fills that middle gap and is priced well below fully profes- sional hardware.

Most of this kind of recording serves well those individuals who have no need for 16- or 24- or 48-track studios with their stratospheric hourly

fees.

Semipro setups are frequently used by songwriters, publishers, per-

formers and independent producers. Many of these individuals manage to amortize their investments after a year or so of recording their own material.

Semiprofessional recording, however, has its own problems. The AFM doesn't like it, because the union has no way of policing these opera- tions. The neighbors (residential and office) don't appreciate it, because few semiprofessional recording studios have adequate sound isolation. Sometimes the investors regret having entered the field, because they are often unwilling or unable to continue buying the ever-new equipment

the leading professional plants try to provide. But semiprofessional

recording will increase, not only because of the rising rental costs of con- ventional studios, but because it serves the needs of many individuals so effectively. A part of this phenomenon is the one-person synthesizer set- up, often the source of black/dance recordings now.

DEMO STUDIOS

One notch above the converted garage facilities are those studios, found in hundreds of communities, that specialize in demo recordings. Nearly all of them offer four- to eight-track equipment and a studio large enough to handle small ensembles. Since demo studios can offer hourly rates far lower than full commercial studios, they service the bulk of demo record- ing needs of writers and publishers.

Well-managed demo studios can profit. But financial difficulties occur when the small operator tries to keep abreast of the latest expensive equipment. When a demo studio operator leaps that gap between, say, a modest four-track facility to 1 6-track with all its attendant gadgetry, the overextended operator may soon find the fancy hardware in the hands of the bank, awaiting auction.

Some demo studios stay alive and prosper by becoming headquarters for small production companies, small labels, beginning publishers, even

artists managers and agents trying to get established. Whether or not these persons share ownership or management, the people involved often find it mutually advantageous to work together, sharing their exper-

tise and contacts. Another kind of recording operation might be called "in-house" stu-

dios, which have become increasingly popular with publishers, even advertising agencies. They are private operations, rarely open to the public, and are intended to serve the host company and its business associates. They range in size from 8- to 1 6-track and provide in-house production for everything from simple demos to master tapes.

324 CHAPTER TWENTY

INDEPENDENT STUDIOS

The step above the demo studio is the full-line independent studio, which has at least 24-track consoles and recorders, together with other outboard equipment sufficient to compete with plants operated by the major record labels.

To attract knowledgeable producers, the independent studio must have a lot going for it. First, it must be heavily capitalized in order to acquire adequate space, buy the latest equipment, and have enough cash to carry it over lean times when bookings are light. To compete today, an entrepreneur trying to set up a full-line independent recording studio should be able to locate at least $500,000, with more under the mattress readily available. Capital requirements make it difficult for even well-established studios to turn a profit.

A full-line independent studio will normally have one or two large rooms capable of handling a big studio orchestra, several rooms for smaller groups, mixdown and editing rooms, an acoustical reverberation chamber, equipment rack rooms, maintenance shop, traffic control office, and lockers for equipment storage. In New York City and Los Angeles, the largest independent recording studios also have movie projection equipment for synchronization of music to film. A studio with all the latest hardware is in trouble if it lacks good acous-

tics in two critical areas — the control rooms and the studios themselves. The science of acoustics has now advanced to the stage where qualified engineers can predict how sounds will behave in a given space. Unfortu- nately, investors continue to throw money away on bad designs. And where the designs were right, the construction may be faulty. When the elaborate RCA studios opened in Hollywood, they were replicas of RCA's outstanding facilities in Rome. But when RCA's Hollywood Studio A first opened, there was a blanket casually hung on the wall behind the mixing console. The acoustician had not bothered to design that surface properly to diffuse the sounds bouncing around behind the mixing console.

Modern control rooms are difficult to design, because proper balanc- ing of stereo is largely dependent on where the mixer sits in the room — and the producer, perhaps only three feet away from the mixer, hears a different balance. Further compounding these problems, engineers and producers forget sometimes that the programs they monitor over an elaborate speaker system have only slight resemblance to what the music lover hears on an inexpensive transistor radio.

Studios often sink or swim on whether the performing musicians feel comfortable in them. One essential acoustical requirement for orchestral playing and ensemble singing is that the sounds be diffused so each performer hears a fair amount of what sounds are occurring around him. The precise opposite circumstance occurs in tracking: very short rever- beration times are desired when performers are using earphones. They want to hear only themselves and the program coming over the phones.

Whatever the studio may offer in equipment and acoustics, many artists and producers tend to patronize those facilities where they like the atmosphere. Is the environment comfortable? Is the staff congenial? Is

pressure felt? One of the reasons smaller cities have prosperous studios

STUDIOS AND ENGINEERS 325

is that many artists feel more relaxed recording anywhere outside of New York City and Los Angeles. Anyone recording in the easy-going environment of Nashville favors the atmosphere of a more comfortable venue over the pressure cookers of New York City and Los Angeles. A studio can be well-equipped and offer a comfortable atmosphere,

but its profitability may depend merely on superstition. Many producers and recording artists refuse to book time in a studio that has not pro- duced hit records. They suspect that hits are really just "sounds," and what they must do is go to that studio which produces those sounds.

LABEL-OWNED STUDIOS

Most of the large record companies own and operate their own studios in Los Angeles and Nashville. Several continue to operate studios in New York. In the beginning of the industry, there were no independent stu- dios, and record companies built their own. The practice continues today with the older, larger companies.

The large labels want their own facilities because the best indepen- dent studios are often booked up, sometimes for months in advance. Few record companies can accept such delays, so they set up their own recording operation. Their traffic office reserves time first for the label's

own producers and artists. If any studio time remains open, it is usually made available for rent by outsiders. Physical facilities and equipment are generally equal to, sometimes superior to, what can be found in major independent studios.

STUDIO OPERATION

Label-owned studios and the larger independent studios maintain a full- time staff of perhaps 20 to 50 or more persons. The manager of a recording studio may be primarily a "credit manager" whose workday is often filled either trying to collect delinquent accounts or determining who should be extended credit in the first place. Studios in Los Angeles, dat- ing from the late 1960s, have had a communication network set up informally among themselves to share information on credit ratings of prospective clients. This seems to work better than more conventional credit rating sources.

Studios have traffic managers who book studio time. These individu- als are sometimes put under heavy pressure by producers who assert that, if they can't get into the studios in ten days, the world will end. Traf-

fic managers must sometimes schedule week-long sessions months in advance, booking time for acts, for example, that will be coming off the road and who are determined to lay down an album at a specific time of the year. Besides these long-range booking problems, the studio traffic department must be adept at estimating when a session may run over- time.

Studio profit depends on how closely contiguous hours can be booked. When sessions fail to start and end on schedule, serious finan-

326 CHAPTER TWENTY

cial losses can hit both the studio and the producer. Major accounts planning to record an album often "block book" studio time. The producer estimates how many days or weeks are needed to lay down 1 or more songs, then persuades the studio to reserve a particular room exclusive- ly for that project. In block booking, the artists can leave all their equipment in place overnight and not waste time the following day trying to rediscover the setup that worked well yesterday. Also, studios that block off a room for several days or weeks will offer the producer a much lower price for the project.

In addition to the traffic manager and credit manager a full-line studio will have a chief engineer, a staff of house engineers, mixers, editors, mastering engineers/technicians, perhaps a video/film projectionist/ technician, maintenance personnel, people handling setups and the movement of equipment. An office crew completes the staff of a full-line studio.

Few recording studios have sales departments or promotion people. Management finds that business comes or goes based largely on the word-of-mouth reputation of a studio. Ads do not help much.

CHANGING TECHNOLOGY

Recording studios continue their struggle to keep abreast of changing technology. They can't, of course, nor can anyone else. Increasing num- bers of their clients want digital recording. While the cost of some digital equipment is dropping, only heavily capitalized studios can keep up with every innovation. Studios often start out by leasing leading-edge gear,

because of the lower capital outlay — and because they want to turn in today's equipment as more sophisticated hardware becomes available.

It is not widely understood among non-engineers that some so-called "digital recordings" are not wholly digital; the recording machine may employ digital technology, but it is usually hooked up with analog micro- phones and consoles. The digital recorder, then, is really something of a sophisticated storage device.

A problem for studios is the continuing shortage of fully qualified main- tenance personnel. As the sophistication of hardware increases, so do the risks of equipment failure. This increases the danger of studio "down- time." Then everyone hurts. To reduce income losses due to downtime, studios must then increase their hourly rates. This Catch-22 situation is one reason a strong argument can be made for delaying acquisition of the most sophisticated new gadgets until they have demonstrated (in someone else's studio!) their reliability.

Studios unable or uninterested in converting to digital technology

often bridge the gap with "automated" consoles which are interfaced with computers. Recording technology schools understand that their gradu-

ates must now have at least basic computer literacy to work in today's studios.

Recording studios are also challenged by increasingly complicated

synthesizers. As is widely known, keyboard players often play several electronic instruments at the same time. Accustomed to doing this live.

STUDIOS AND ENGINEERS 327

when they walk into a studio they expect the engineer to accommodate their needs for recording. This task is often facilitated by use of the stan- dard instrument patching system known as MIDI (for Musical Instrument Digital Interface). Electronic keyboards and synthesizers now have "MIDI ports" for patching together several pieces of equipment for either live or recorded performance. Many MIDI-keyboard-based recordings are made in the control room now.

Engineers must also understand how to properly record synthesized percussion, various portable keyboards and experimental instruments defying classification.

In this age of the microchip, a sophisticated keyboard synthesizer called the Synclavier — the electronic black box — has emerged. This little gem consists of a 76-note piano keyboard, a computer terminal, a digital processor and a storage unit, with which an operator can create, store, retrieve and rearrange sounds almost at will. The results are then transferred to records, audio or television tape or movie sound tracks, with almost no loss in quality. Current tape systems, where the tape must be physically cut, leave small glitches in the sound. The Synclavier is not for the timid — in one recent year, the manufacturer. New England Digi- tal Corporation, sold about 130 units at prices ranging from $75,000 to

$250,000, depending on the configuration.

THE ARTAND SCIENCE OF MIXING

Whatever technology may be employed in the recording process, much more important to the final musical result is the person sitting at the mix- ing console. Almost no studio has a surplus of fully-qualified mixers, or "engineers," as they are usually called. Until recent years, these audio "engineers" were usually just handymen technologists, most of whom lacked formal training. They learned mixing hit-and-miss, on the job. Some of these individuals have learned more about mixing, through long experience, than most electrical engineers could aspire to know. They combine the talents of a competent technician with an intuitive ear for music. Still others in audio "engineering" come, not from the radio and TV repair shop fraternity, but from the musical world. Some of the musi- cian-mixers do a better job at the console than anyone else, for they may bring to the task a university-trained background in orchestration, arrang- ing and performance. These musicians then hang around enough recording scenes to learn how to mix and master.

Studios have difficulty finding mixers and engineers who are thor- oughly qualified and sufficiently versatile because, until recent years, there has been no place for them to adequately prepare. The difficulty is obvious: no other group of professionals is expected to be fully educated in two different disciplines — electrical engineering and music. Since this has rarely been possible, studios regularly hire individuals who approxi- mate these special qualifications. This compromise results in frustration among professionals — and a lot of wasted money and time in waiting for mixers and "engineers" to figure out how to perform adequately.

The mixers most in demand are those with the magic ears. They may

328 CHAPTER TWENTY

not understand how to trace a short in an amp or adjust the azimuth on a recording head, but they surely know how to lay down sounds. They ride those sliders with a sure touch, pulling from the console much more interesting sounds than the microphones deliver to it. In short, the top mixers are sensitive musicians, working their electronic wizardry like sound sorcerers — which they are. Besides being able to ride a console with sensitivity and even creativity, these artists have one additional attribute without which they would race screaming from the control room after the first hour: they possess a temperament that can handle high tension. Consider: this one individual has under control more than $500,000 worth of equipment; the act on the other side of the glass gets $50,000 a night to perform, and the record company plans to spend $250,000 promoting the record the engineer is mixing. The mixer has total control over the final result. The buck stops at the console. A nor- mal human being would soon be a basket case under this pressure. The top mixers feel the pressure, but they can handle it.

While the industry is surfeited with thousands of mixers, the musician- engineer who has "the ears" and a cool temperament is the individual most likely to find regular employment and high income. These musi- cians-artists-engineers are not in oversupply; they should be guarded by the Secret Service as national treasures.

Those less adept at mixing well will find work if they are thoroughly qualified to maintain audio equipment. Now that the equipment is becoming increasingly sophisticated, particularly the interface with com- puter technology, jobs coming down the line in audio engineering will be filled, more and more, not by talented fix-it people, but by graduate elec- trical engineers and computer scientists. Those who have these kinds of backgrounds are needed, not only to keep the hardware operating, but to design new equipment and installations. Electrical engineers engaged in studio design will be working with scientists specializing in electroa- coustics, even psychoacoustics.

Professional Associations — Individuals who are serious about getting into sound recording should be active in the professional associations serving this sector of the industry. The Audio Engineering Society (AES), for example, holds annual conventions in New York and Los Angeles which feature seminars on new recording technologies and displays of equipment manufacturers' latest audio products. AES has a committee dealing with the educational aspects of recording technology.

SPARS, the Society of Professional Audio Recording Studios, also concerns itself with educational standards for training audio technicians.

Its membership includes managers of major recording studios. Individu- als believing they may want to work in the audio departments of TV and film studios can learn more about this field from SMPTE, the Society of Motion Picture and Television Engineers (Chapter 25).

ENViRONMENfAL , MUSIC

A substantial portion of music produced today is not really meant for serious listening. Rather, it is intended to remain in the background of consciousness, providing an "extramusical" service. Background music drones on, as we all know, just about everywhere people can be found — restaurants, supermarkets, airports, even rest rooms. Some of these sounds are almost as interesting as the hum of the air conditioner (but usually provide less comfort).

Another kind of background music also goes largely unnoticed, but can be of real musical value: the music underscoring TV and film drama. This kind of music is discussed in Chapter 25. Here we will dis- cuss Muzak-type background music, which is sometimes referred to as "wired music service," "business music" or "environmental music."

APPLICATIONS

BMI defines background music as "unobtrusive accompaniment to work, shopping, conversation, dining and relaxation." Management has been convinced by wired music suppliers that appropriate music pour- ing over the house PA system puts shoppers in a buying mood, perhaps even a euphoric state which tends to reduce buyer resistance. Market research shows this to be true. Company managers believe that music piped into offices increases workers' productivity. We also know that the incessant drone of low-level music masks the distracting sounds of

330 CHAPTER TWENTY-ONE

office machines and uninteresting conversations. Studies of manufac- turing plants show that workers exposed to background music are more productive and happier than when the Muzak is turned off. f\/luzak salespersons used to claim their tapes were programmed so that just the right music was heard at certain times of the day. For example, just before lunch, when productivity tends to lag, Muzak programs tend more toward energetic music to give the workers a lift. Some environmental music suppliers provide their customers the

option of selecting their own programming. We know from the research of music therapists that the controlled "application" of music can modify human behavior. Now that the practice of music therapy is a recognized profession, if not a science, wired music service suppliers might be well advised to retain on their staffs licensed music therapists to lift their "sci- entific programming" above its present guesswork level.

In this context it should be noted that some environmental music sup- pliers, Muzak included, have experimented with using more lively, more interesting music in some installations. After decades of omnipresent "wallpaper music," this is an encouraging development for those who sometimes actually listen to the background tapes.

SERVICE COMPANIES

The "business music" industry in the U.S. is dominated by three large firms — Muzak, Audio Environments and the 3M Company. Many cities have smaller companies competing with "The Big Three," but they find it difficult to match the low rates and extensive repertoires of the larger firms.

Muzak, founded in 1934, is the acknowledged leader in the field. It is now owned by Field Corporation, a communications industry holding company, which is trying to upgrade the firm's reputation for supplying only dull music. Muzak claims to reach an audience of over 80 million persons each workday. While possessing a backlog of over 150,000 selections, Muzak says its "active" repertoire totals some 5,000 selec- tions.

Muzak and other firms of this kind use a number of different media for delivery of their programs. Some customers receive the music via satellite. Others rely on FM multiplex broadcast signals. Muzak's fran- chised dealers sometimes deliver the programs to their local customers via a tape subscription service.

Music libraries of this type tend to package their product in three- or four-hour tapes. When tapes are used in local areas, they are shipped like theatrical films: one customer is instructed to ship to the next- scheduled user. Broadcast subscribers receive continuous music.

Muzak contracts its services to about 186 franchised dealers who own a total of about 250 locations, often on contracts running 10 years with options to renew. Local franchise operators are, in effect, distribu-

tors who put salespersons in the field to line up users of the service — restaurants, retailers, hotels, offices, factories — wherever people gath- er. Hotel chains spend several thousand dollars each month for pro- grammed music services.

ENVIRONMENTAL MUSIC 331

Passenger airlines are constant users of these kinds of transcription

services for use in flight. The largest suppliers include Music in the Air, In Flight Entertainment, In-Flight Audio and Avicom. Each of these firms provides printed programs listing the artist, song, label and album title

for each selection. Air personalities (DJs) are often used to introduce

some of the programs. The major in-flight entertainment suppliers protect their tapes from

theft and copying by using a playback speed incompatible with standard equipment. Contracts negotiated in 1978 shifted music performance licensing to the music suppliers. Theretofore, performing rights organi-

zations negotiated performance licenses directly with the airlines.

Muzak, Audio Environments and 3M Company find themselves in competition with a large number of smaller firms offering similar ser- vices via leased telephone lines or exclusive FM broadcast channels. The Big Three lose some business to these smaller firms because of the latter's lower rates. The rates of some of these music supply com- panies should be low, because some of their programs sound like they were recorded on used typewriter ribbons. Where the recording quality is acceptable, the musical arrangements and performances are often third-rate. It is obvious that thousands of hours of these tapes have been laid down in makeshift studios by pickup bands populated by incompetent performers. Muzak now emphasizes that it uses modern multi-track recording facilities; such equipment not only provides high

quality results but produces a contemporary, sophisticated sound, therefore helping to dispel the commonly held perception that Muzak is dull, string-predominant, dated music.

Even well-performed, well-recorded background music is hated by most musicians, for they view it as the primary reason for the virtual dis- appearance of live music jobs formerly offered in hotels, restaurants and clubs. To many professional musicians, it is particularly galling to observe that even the recording jobs in background music often go to nonunion musicians or to Europeans.

PRODUCTION

Suppliers differ in how they obtain their master tapes. Muzak claims that all of its recording is under an agreement with the AFM and that it uses only AFM-licensed recording studios. Other background music suppliers

obtain their masters from two other sources, both lower in cost than

AFM scale. One is simply nonunion recording done in this country. For many years, some of the best AFM musicians have recorded these kinds of tracks for low hourly rates. Sometimes AFM members and non- AFM members will work side by side in these kinds of sessions. Musicians who accept these low wages sometimes find that on pay day their employers seem to have just left for Las Vegas, and the master tapes, recorded in Cleveland, are now in the hands of a firm in Toledo which claims they were imported from Germany.

More experienced musicians learn that recording sessions at AFM scale may be much less frequent than they would wish, but that most AFM locals and the international AFM representatives do all they can to

332 CHAPTER TWENTY-ONE

collect money due their members from the producers. A second source of miles of tracks is Europe. For decades, European

musicians have been willing to work for shamefully low rates, turning out hundreds of hours of tapes for use on the Continent and, particularly, for export to the U.S. European producers turn out not only background music tapes, but tracks for library services used by film producers and broadcasters. The AFf\/l and other AFL-CIO affiliates have sought coop- eration of various artists' unions in Europe to limit, if not eliminate, these kinds of abuses — fine artists practically giving away their talents for others to exploit. But this kind of international control appears unattain- able soon.

Whether background music is recorded under union or nonunion con- ditions, companies often engage the arranger-director as a producer to handle the project as a package. The packager, or producer, is given a lump sum, then pays for music copying, studio time, tape and musi- cians' wages. If any money is left, the packager may be paid for time spent writing arrangements and directing the session. The arranger- directors work with great efficiency, for every one-half hour of time saved means more money left for themselves. To effect maximum cost savings, many of these masters were recorded as they were read: the "rehearsal" became the take. Quite often, the only delays in the proce- dure were caused, not by the inability of the musicians to sight-read the charts, but by mistakes in the copied parts.

In respect to repertoire, background music services do not hire song- writers or other kinds of composers. The material is drawn entirely from music already published, mostly standards and near-standards. Singers are not hired either; practically all background music is instrumental. As for employment of arrangers and directors, the work invariably goes to those who write fast — and cheap. No conductors are hired; all ses- sions are directed by the arrangers, some of whom do their own copying when they have time.

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PERSPECTIVE

From the beginning of commercial broadcasting in the 1 920s, radio has had an enormous influence on the business and profession of music. It grew as did the popularity of phonograph records, and these two indus- tries formed the first mass media for sound. Music could now be delivered to audiences of millions—at the speed of light. The art and business of music was never again to be the same.

The early radio broadcasts were live, of course, often featuring opera stars and other artists in the classical field. The audio quality was poor and the broadcast signals were filled with static. But audiences loved the

novelty of radio and rushed out to buy the new crystal sets to receive the broadcasts in their homes. The first commercially licensed station went on the air in 1920. Entrepreneurs saw the potential of the medium, and within three years more than 500 stations were licensed to broadcast and the first radio network was formed.

It did not occur to broadcasters at the time that radio might become an advertising medium. But as the radio audience grew within a few years from dozens to millions, it was inevitable that business firms would step forth to sponsor programs if they could get their names men- tioned on the air. By the mid-1 920s, broadcast sponsorship was shared by stations, networks and advertisers.

336 CHAPTER TWENTY-TWO

As advertisers increased their dominance of program sponsorship, they pressured broadcasters for even larger audiences. A businessman or program director did not have to be exceptionally smart to figure out

that the quickest way to draw a large audience was to broadcast popular music. And so the earlier programs that often favored classical music were now more often pointed toward middle America and the music of Broadway and Tin Pan Alley. In addition to the programs that featured

stars of the Met and light opera, programming began to include vaudeville headliners. By 1926, it could be said that radio had become "show business."

Radio had developed an audience of millions, and neither broadcast-

ers nor sponsors felt the need for audience analysis or market research.

It was not yet known that within the "popular audience" were many small- er audiences comprised of persons with specialized tastes and identifiable buying habits. These significant discoveries were not made until much later in broadcasting.

Since World War II, the influence of radio over the music business has become so powerful, successful exposure via this medium can now "make" a song, a record or an artist. While publishers, record companies

and performers recognize the promotional power of music videos, most

new record releases must also gain radio exposure to go to the top of

the charts. So radio affects just about everyone in the music business.

To understand the great dependence of the music industry on radio

broadcasting, it will be helpful to summarize how the phenomenon devel- oped historically.

HISTORICAL DEVELOPMENT

1864 The basic theory of electromagnetism is set down by a British scientist,

James C. Maxwell.

1920 The first commercially licensed radio station goes on the air (KDKA,

Pittsburgh), broadcasting the presidential election returns (Harding vs.

Cox). At this time, only three stations are on the air

1922 The first sponsor's name is mentioned on the air The novelty of radio

quickly attracts larger audiences.

1923 Radio broadcasting booms. Now there are more than 500 stations licensed to broadcast. AT&T inaugurates the first radio network.

1926 Radio rapidly becomes "show business. " Stars of the Met and other

classical artists are featured. Vaudeville headliners begin to be pro-

grammed.

1930s In 1934, the FCC is set up by the Federal Communications Act. Broad- casting is turned over to "free enterprise" with minimum federal control.

During the Great Depression, when people cannot afford to buy records

MUSIC IN RADIO 337

or tickets to the movies, radio offers "free" entertainment to mass audi-

ences. Networl< stiows feature vaudeville headliners, movie stars and

name bands. Advertising revenue soars.

1941 Ttie FCC authorizes commercial FM stations, but development is delayed until after World War II.

1945 950 AM stations are on the air at the end of World War II.

1946 The post-war boom is on. 500 additional stations, AM and FM, go on the air.

1950s The rapid growth of television nearly kills network radio, rapidly wiping

out most live music and radio staff orchestras. As network programming fades, local stations take over, programming "electrical transcriptions"

and other kinds of recorded music. The disc jockey begins to dominate.

1960s The FCC authorizes multiplex broadcasting. The record business booms, largely due to the promotional medium of radio. FM stations increase in number and begin to attract special audiences.

1970s FM stations turn more toward the "middle" audience in quest of a larger market share. Most AM and FM programming becomes predictable, with few programmers risking innovation. But the medium continues to earn good money.

1980s FCC relaxes controls over programming. FM stations gain larger audi- ences. AM gradually turns to stereo broadcasting. Influence of programming consultants remains strong. Stations continue their search

for that magic music format that will beat the competition. Radio's once-

dominant power to influence record sales now shared by music video.

Alive and Well—As new modes of entertainment emerge, they are often perceived as threatening the very life of existing modes. Today radio broadcasting is more prosperous than ever, co-existing with TV and other entertainment forms that at one time were perceived as threaten- ing the very life of the medium.

TYPES OF STATIONS

AM/FM Stations—One way to classify stations is by their "carrier waves." AM stands for amplitude modulation, where the power or ampli- tude of the carrier wave varies but the wave frequency remains constant. FM stands for frequency modulation, where the carrier wave frequency varies but its amplitude remains constant. From the beginning, AM sta- tions have dominated radio broadcasting. But in the period 1970 to 1976, FM stations increased their share of the audience by 80 percent. The strong growth of FM, in the number of stations and audience size has continued, with the FCC giving the green light to construction permits for

338 CHAPTER TWENTY-TWO

several hundred more FM stations (both commercial and educational). Those who favor FM over AM broadcasting point out these advan- tages:

1- FM reception is almost free of electrical interference (static).

2- All stations within a reception range come in with equal strength.

3- Audio quality ("fidelity") is much higher than with AM.

4- More than one station can be assigned the same frequency, because FM signal coverage is much more limited than AM (FM reception is line-of-sight, as with television).

5- FM stations cost less to build and operate.

Since most radios now offer both AM and FM stations, listeners can pick and choose. Those preferring the best sound for music opt for FM, of course. Some AM stations choose not to compete for the music audi- ence and offer all-news or all-talk programming. Since the early 1970s, AM listenership has dropped by almost half. One of the steps being dis- cussed to improve AM's future is the promoting of the manufacture of higher quality AM receivers with stereo, but there has not been agree- ment on a single stereo standard.

EXTENT OF RADIO BROADCASTING IN THE U.S.

Commercial AM stations 4,953 Commercial FM stations 4,200 Noncommercial FM stations 1 ,393

Total number of stations 10,546

Commercial radio broadcasting annual revenues—$6.6 billion Public broadcasting annual income—$1.1 billion Radio sets—507 million, of which 137 million are outside homes

Source: Based on data from the FCC and Broadcasting/Cable- casting Yearbook.

Audience identification—For many years now, broadcasters have held the view that radio audiences can be identified and classified with con- siderable precision. Much of their research is convincing, at least to those who need convincing—the advertisers to whom the stations sell time. Demographic research, to a large extent, has in the past been able to help stations easily predict the types of audiences their programs will attract. But today, although radio is more research oriented, so many dif-

MUSIC IN RADIO 339

ferent tastes are being acknowledged and the pace at which those tastes are changing is so rapid, that such forecasts are no longer as suc- cessfully made.

In the contemporary arena there are a lot more choices of music for- mats than there were just a few years ago. Stations specialize or "narrowcast" a particular sound for their audiences. Radio stations adopt a supremely simple programming philosophy: to attract a particular seg- ment of the radio audience, broadcast its favorite music.

YOUTH MARKET

General characteristics of youth market stations:

1 - They seek listeners in ttieir late teens through the age, say, of 24. (Some radio stations extend this top figure to include "young marrieds;" others argue the latter are more appropriately includ- ed under "young adults" or even the "adult" market.)

2- 75 percent to 85 percent of their programming is derived from commercially released records dominated by rock and its derivatives.

3- They feature "personality-type" disc jockeys who seek a person- al rapport with listeners.

4- The commercials emphasize products and services of interest to teenagers and adults in their early twenties. Well-run stations aiming at youth capture a predominant share of the audience in many markets.

ADULTMARKETS

In the late 1970s, radio programmers began to lose faith in their ability to identify the makeup of their audiences. Curiously, this unsettling discov- ery was made at a time when audience research was becoming more extensive, more carefully controlled. The principal reason for this blurred audience profile was the phenomenon of the crossover record. A station could conduct a study and be led to believe it was drawing listeners pre- dominantly in the range, say, of 18 to 24 years of age. But the difficulty was that this group could not seem to decide just what kind of records it preferred.

It became clear that the crossover record audience was becoming dominant and that about the only thing that could be said beyond that was, when a music lover grows out of the teens, he/she shows a tenden- cy to prefer music that is softer than rock. This then opens up the entire range of musical styles, from pop to classical and all points in between. But stations know that their advertisers need more precise audience pro- files than that. So the station going after the post-teen audience then

340 CHAPTER TWENTY-TWO

attempts, as best it can, to carve out for itself an identifiable segment of adult listeners. This sorting out results in several categories of "adult"

radio station—among which there is a great deal of musical overlapping, to the point that even radio industry experts admit their inability to pro- vide clear-cut definitions:

ADULT CONTEMPORARY—This is a broad category which can best be categorized as "soft rock," with a mix of "oldies" and current songs by such artists as Linda Ronstadt, Barry Manilow, Stevie Wonder and Elton John. It has a mellow sound emphasizing, for the most part, romantic songs and lush instrumentation, often influenced by both jazz and classi- cal music. This music appeals to slightly more women than men, aged 25-54.

EASY LISTENING—This music is somewhat gentler than Adult Contem- porary, performed by such artists as The Carpenters and Johnny fvlathis; singers overlapping both categories include Barry Manilow and Barbra Streisand. The music is primarily instrumental rather than vocal, though, and is sometimes referred to as "Adult Hits" or "Beautiful Music." Its pri- mary audience is aged 55 and older.

MOR (MIDDLE OF THE ROAD)—While this category still exists under this name, it is now more commonly referred to as "Nostalgia/Big Band." There is some overlap with Easy Listening where artists such as Johnny Mathis, Steve Lawrence and Jack Jones are concerned, and again, the category favors instrumentals over vocals.

YOUNG ADULT—These stations seek a post-teen audience that favors soft rock and the various styles that are derivative of rock. Young adult stations use less flamboyant disc jockeys. This kind of station goes after the young couples who spend the most money on cars, homes, furniture, babies, insurance and food. Some stations say that they are "AOR," meaning their programs are dominated by album-oriented rock, by such artists as the Beatles, Rolling Stones and Led Zeppelin. The AOR classification is not consis- tently useful, however, because the distinction between rock on singles and rock on longer forms continues to change as artists and labels experiment with the market.

COUNTRY MUSIC

Country music stations initially programmed the type of popular music traditionally associated with Nashville, what oldtimers like to call real country. This repertoire is still widely loved and broadcast. But by the 1970s, the balance was shifting gradually to "pop country," "country rock," "L.A. country" and other stylistic mutations. Except for a few "hard- line" country stations, the broadcaster who goes after this market will program a great variety of music ranging from Nashville to pop.

Because country music audiences are diverse geographically and musically, the format continues to succeed in markets all over the nation

MUSIC IN RADIO 341

in all categories of stations, AM and FM, commercial and non-commer- cial. Whereas at one time the audience was made up predominantly of young married females, nowadays listeners comprise both sexes, rang- ing in age from 25 to 54. The number of country music stations has increased dramatically, rising from 81 in 1961 to more than 2,000, locat- ed mostly in the South Atlantic and West South Central states. According to one recent survey, country stations are the "second most likely to be profitable in the marketplace."

BLACK/URBAN

Some stations seek a predominantly black audience. While such stations are usually referred to as "Black/Urban" or "Urban Contemporary," there is no hard-and-fast agreement on what is the most appropriate label. Some broadcasters prefer "black music station." Other stations seeking a black audience program black gospel music and prefer the label "gospel station;" these are mostly daytime-only AM stations with weak signals. In the 1920s in the south there were a few stations that sought the black audience, but they were "underground." This was contempora- neous with (white) record companies discovering the large market for what were then called "race records." Stations outside the south began to cater to this black audience when migrations of this segment of the population accelerated during and after World War II.

Programming of black music increased during the "black revolution" period of the 1960s. Today, most urban centers have stations that devote a substantial portion of their music to black music. According to Radio and Records, only 357 stations, or three percent of the nearly 11,000 radio stations in the U.S., are programming either black or gospel music. Blacks represent 60 percent of the urban contemporary audience, with the remainder Hispanics and whites, depending on the demography of the particular market.

SERIOUS MUSIC

Many people in the music industry think of classical music as a money loser. Sometimes it is, but certainly not always. We have classical stations and "classical" stations. The "purist" sta-

tions eschew even the "light classics," nor will they broadcast what is known in the U.K. as "light music." Other so-called "classical music" sta- tions are permissive, define the term more loosely and include even Broadway show music. Stations holding mostly to standard classical fare apportion the repertoire approximately as follows:

1- Music to 1800 A.D.—5 percent

2- Music from 1800 to 1900 A. D.—90 percent

3- Twentieth century "serious music"—5 percent

342 CHAPTER TWENTY-TWO

Audiences are relatively small and advertising rates are correspondingly low. Demographic studies show that these audiences are predominantly well-educated, affluent, middle-aged, and just as snobbish in their prefer- ences as devotees of other styles of music. Announcers are often well-informed, educated in the classical music repertoire, and able to chat with their audiences about composers, works, artists and stylistic periods. Classical music stations find it advantageous to associate them- selves with the cultural life of their communities and with educational institutions. This factor contributes to building loyal audiences. The num- ber of listeners is small, however, and these stations struggle to stay profitable.

OTHERS

GOSPEL STATIONS—Stations addressing an audience attracted by music oriented toward religious faith and church activities are located predominantly in the "Bible Belt" section of the U.S. and its bordering states. Sometimes gospel stations are called "Christian stations." Gospel music is a style loved by blacks and whites, and some stations broad- cast this kind of music exclusively. Audiences are fiercely loyal and larger in number than is generally understood. Many gospel stations are low-powered and have comparatively small audiences. Black gospel sta- tions have no difficulty holding almost exclusively to the great supply of records available in this style. White Christian-oriented stations program

songs of Christian faith, gospel music, sermons and other Christian mes- sages. Because audiences are small, conventional advertisers do not often buy time on these stations. Sponsorship is more likely to come from a preacher or faith healer or conservative politician or publisher of

religious-oriented materials.

SPANISH-SPEAKING STATIONS—It used to be that a few stations located mostly in the southwestern United States and in Mexico targeted their programming to the Spanish-speaking audiences of just those areas. But over the past 15 years, Hispanic stations have grown from 30 or 40 to more than 237, covering markets from Los Angeles to Chicago to New York. The key word for the Hispanic market is growth. Estimates placed on Hispanic radio revenue approach more than $150 million annually. Some national radio spot sales agencies have even estab- lished Hispanic divisions to target this lucrative market. According to

reports, Hispanic programming mostly offers top 40 and news/talk, but syndicators are lining up to offer stations many forms of programming for the market.

NATIONAL PUBLIC RADIO—The FCC sets aside a segment of the FM broadcast band (88 to 92 megahertz) for schools, colleges, civic entities

and others who devote all or part of their programming to education, the arts and other kinds of nonprofit enterprise.

Most public radio stations are low-powered, 10 watts or less. They address a small audience in a limited geographic area. They do not accept advertising. Stations located on college campuses are often con-

MUSIC IN RADIO 343

nected with one or more campus departments, e.g., music, broadcast- ing, theatre. These stations are usually operated by students of the college, with or without faculty supervision.

Programming tends to lean to the personal tastes of the current group

of station managers. "Underground" music and lesser-known recording

artists are sometimes featured. Promoters and agents for them are often

well received by campus stations. While pop and rock are favored, most stations are also receptive to special programming which might include

chamber music, opera, electronic music, avant-garde, campus recitals and concerts featuring faculty and students. Stations also broadcast educational music programs, e.g., "Music Appreciation," "Understanding

Jazz," etc.

Many public radio stations—over 200 of them—are affiliated with National Public Radio, the equivalent of TV's Public Broadcasting Sys-

tem. NPR was incorporated in 1970. The network and its affiliates receive financial support from the Corporation for Public Broadcasting,

the National Endowment for the Arts, cities, and states arts councils and private donations.

Some public radio stations receive support from AFM locals which use this medium to foster "live" broadcasts of music and musicians. NPR has a long-standing agreement with the AFM, not only to pay union wages, but protect AFM members from unauthorized "new uses" of music origi- nally cleared only for NPR broadcasts.

NETWORK RADIO

The Federal Communications Act defines a network or chain as "the simultaneous broadcasting of an identical program by two or more con- nected stations." Today, the term network or chain is used also to describe two additional types of station "networks." One is typified by the radio chain where the parent firm owns several stations, maintains some managerial control, but where each station determines its own program- ming. Another kind of radio network is the regional chain. The network components are owned and operated separately, but they share part of their air time in cooperative advertising. A sponsor whose product or ser- vice has a potential market larger than local but smaller than national will

often contract with a regional radio network to broadcast ads. In the Unit-

ed States we have about 50 regional radio networks. The original concept of a radio network as defined by the Federal

Communications Act—linked stations broadcasting the same programs simultaneously—dominated the industry until about 1950. At that time, the networks were NBC, CBS, ABC and MBS. Star musicians and enter- tainers appeared regularly on radio network programs. To performers,

such appearances were second only to movies in prestige and impor-

tance. In the early 1950s, network television rapidly came to dominate broadcasting, and network radio quickly faded. Live music almost disap-

peared; staff orchestras were either cut in size or eliminated. Networks were suddenly reduced just to feeding their affiliates news, weather reports and soap operas.

344 CHAPTER TWENTY-TWO

This near-demise of network programming was countervailed, in part, by the increasing dominance of local radio station programming. Almost

overnight, recorded music became the dominant program material. All of the major networks active at the time television threatened their exis-

tence did manage to survive. In addition, we have today a variety of linkages, large and small. These networks share managerial responsibili-

ties, cooperate in sales campaigns and market research. They sometimes share syndicated programs.

Today, most networks utilize satellites to deliver their programming.

Some continue to rely on discs or tapes. The largest networks supplying programming today are Westwood One, United Stations Programming Network and Transtar. With current satellite technology, virtually anyone

with the resources can establish a network.

STATION MANAGEMENT

SALES

Sales personnel have the responsibility of selling time to local and

national advertisers. Rates are determined on a "cost-per-thousand"

basis. This information is shared with advertising agencies, clients and

prospective clients on a "rate card." Besides just selling air time, sales

departments get involved in developing advertising concepts for spon-

sors. They also become involved, when needed, in the actual production of advertisements and complete broadcast campaigns. No matter how large an audience the station programmers may draw, the operation can- not turn a profit without an effective sales department.

RADIO STATION ORGANIZATION

1 GENERAL MANAGERJ

ADMINISTRATION PROGFtAMMING SALES ENG NEERING

Business Affairs

Personnel. Payroll

Audience Research

Music Licensing

Traffic Management FCC Licensing

Community Relations

Program Direction

News Syndicated Programming

Music Library Services

DJs: Hiring/Firing

Spot Production

Local

National

Signal Control

Editing

Tape Transferring

Equipment Maintenance

Fig. 22.1

MUSIC IN RADIO 345

ENGINEERING

This department has these responsibilities:

1- Process the audio signals for transmission to the transmitter.

Historically, these signals were sent to the transmitter via leased

telephone lines. Today, with the advent of new technology, these signals are generally sent via microwave.

2- Maintain the equipment in the studio and at the transmitter

3- Operate the transmitter station, monitor and control the broad- cast signal per FCC regulations.

4- Assist in recording and rerecording program components— music, commercials, other announcements—and produce com- posite tapes (open reel and broadcast-type cartridges) for broadcast.

5- Evaluate, purchase, install and maintain equipment as needed.

OPERATIONS

Stations are run by a general manager, who delegates responsibilities to department heads, e.g., news, sales, engineering and programming, but is ultimately responsible for all of these operations. In addition, the gen-

eral manager is responsible for:

1- The station's FCC license and its periodic renewal

2- Office management and accounting

3- Personnel

4- Finance

5- Audience research (also a programming and sales function)

6- Relationships with advertising agencies and their clients

7- Music licenses with ASCAP, BMI and SESAC

8- Union negotiations and contracts

9- Legal matters

10- Community relations

11- Equal Employment Opportunity Programs and FCC Reporting

The general manager is also ultimately responsible for programming and promotion, but delegates this task to the program director.

346 CHAPTER TWENTY-TWO

MARKET RESEARCH

In the last 15 years, advertisers have acquired great faith in the value of market research. Since broadcasting is now the dominant medium for all advertising, radio and television markets are more intensively researched than any other. All radio stations are busily engaged in trying to figure out what people like to hear. If a station can manage to accurately count and diagnose its potential audience it will probably make money. A sta- tion that is unable to do so will have difficulty surviving.

DEMOGRAPHY

Audience research is based on demographic studies. Demography can be defined as the statistical science dealing with the distribution, density and vital statistics of populations. Stations and their advertisers are inter- ested in the location, age, sex, education, economic status and race of their potential audience. Above all, stations and their clients need to know how many people are listening to the station at various times dur- ing the day. When a radio station salesperson talks to a retailer of motorcycles, there is a need to be able to convince that merchant that at 5 p.m. during weekdays, the station can "deliver" 100,000 listeners who are 18 to 24 years of age, of medium income, prefer rock music and seem to be the kind of folks that like motorcycles. The salesperson asks the merchant to spend $10 per thousand to broadcast a sales message to those 100,000 potential customers. That may sound reasonable to the merchant. If it does, the salesperson will write $1 ,000 worth of radio spot

announcements concerning motorcycles. If the salesperson lacked this kind of specific demographic research data, there would be much less convincing information for the prospective sponsor to consider.

RESEARCH METHODS

Radio market research is based largely on polling samples of its audi- ence or potential audience. In this respect, it is much like political polling, where a candidate for national office may spend $100,000 or more to try to figure out reactions of the electorate. Nearly all polls are based on sampling. Most samples are so tiny (perhaps .01 percent of the total) that they are held suspect by many people. It appears absurd to argue that a poll of less than one percent of one percent of a total potential radio audience could in any way provide accurate information on the makeup of the other 99.99 percent. The question of the validity of this kind of market research rests on the quality of the sample. When the sampling is accumulated with careful scientific controls, data yielded from the research will prove to be remarkably accurate.

Companies sampling broadcast audiences assert their figures are in the three to five percent accuracy range. But not all market research is

this good or this useful to broadcasters and their advertisers. Research methods range from casual to scientific. The most trustworthy, systemat- ic methods used for broadcasters attempt to determine three basic sets of statistics:

MUSIC IN RADIO 347

1- Station Rating. This is determined by counting the percentage of the audience which is listening to a particular station at a par- ticular time. Example: if a station has a rating of 15.2 at noon on weekdays, that means that out of every 100 households con- tacted, 15.2 were listening to that station at noon on a weekday.

2- Sets in use. This is a count of the actual number of sets turned on in the homes sampled. Example: a 62.4 sets-in-use figure indicates that of 100 homes sampled, 62.4 had their radios turned on.

3- Audience siiare. This statistic indicates the comparative popu- larity of a program being broadcast at a particular time. Exam- ple: if a show has a 10.1 share, that means that, of the homes which had their sets turned on, 10. 1 percent were listening to that particular program at that particular time. The audience share is obtained by dividing the station (program) rating by the sets-in-use figure.

If a radio station can accumulate a large enough share of the available market, it has a reasonable chance of turning a profit. If it cannot man- age this, it may go under unless it receives income from sources other than its advertisers.

What is a profitable share? This may be shown by a market we'll name Averagetown, USA. Let's imagine that this city of opportunity com- prises one million radio listeners. It is served by 15 stations, AM and FM. A glance at Figure 22.2 reveals useful information. Perhaps the most critical data show each station's share of its own special "subshare" or "submarket," e.g., each station going after the youth market can see how it compares with the other four stations also trying to reach the kids. Three stations are scrambling for the adult market. Note that two of them are doing alright, but the third one is probably losing money—it just isn't making it in pulling a cumulative audience of only 30,000.

Averagetown's five most-listened-to stations, whatever their program- ming format, rank as follows: Rock (No.'s 1 and 2), Adult (No's 3 and 4), and Country (No. 5). This ranking of formats does not typify most Ameri- can cities of this size. But Averagetown does appear to have a relatively weak country music station. If an aggressive management took over one of the country stations, it might be able to increase its ratings enough to give the present top four stations a real scare.

Besides the factor of audience share, a station will make or lose money depending on its efficiency in management. But if we assume that all 1 5 Averagetown stations are equally efficient and have a payroll proportional to their size of operation, we can guess that only five sta- tions in the town are making money, with nine losing money, and one whose profit margin is in doubt. But it is like a horserace; the lead keeps changing. The ranking of Averagetown's stations six months later could flip-flop—those on top might be pushed under by former losers who have changed their programming or management or acquired a group of hot-

348 CHAPTER TWENTY-TWO

shot new salespeople. This accounts in part for why 15 stations would even attempt to share so small a market. If each of them shared equally in it, not one of them could make money. But entrepreneurs step forth periodically because they believe they have an opportunity to show their competitors how a radio station should really be run.

Individual stations generally call on independent research companies for studies which compare the performance of a number of stations in a given market. Several dozen firms offer this kind of service. Some func- tion regionally, others nationally. Among the most widely used firms that operate nationally are The Arbitron Company and Birch/Scarborough. Arbitron provides data for regional and local markets and uses controlled

samples of listeners, who are asked to maintain weekly diaries of the stations they listen to. These diaries are periodically collected and ana-

lyzed, and the results mailed to subscriber stations. Birch/Scarborough

uses a different method for its audience measurement services, calling randomly selected telephone numbers for a given market and polling households directly. In addition to gathering information on what these

households listen to. Birch researchers ask demographic and psycho-

graphic questions pertaining to incomes, occupations, expected future

purchases, etc., and incorporate these data in their ratings research

AVERAGETOWN, USA

RADIO AUDIENCE SHARES OF 1 MILLION HOMES

15-Station Battle

Type of Station Cumulative Share of Special Share of Station Profit/

Audience Market Total Market Rank Loss

Youth Market 175,000 35% 17.5% 1 P 150,000 30% 15% 2 P 75,000 15% 7.5% 6 ? 50,000 10% 5% 7 L 50,000 10% 5% 8 L

Totals 500,000 100% 50%

Adult Market 150,000 50% 15% 3 P 120,000 40% 12% 4 P 30,000 10% 3% 10 L

Totals 300,000 100% 30%

Country Market 85,000 85% 8.5% 5 P 15,000 15% 1 .5% 12 L

Totals 100,000 100% 10%

All Others 40,000 40% 4% 9 L 30,000 30% 3% 11 L 10,000 10% 1% 13 L 10,000 10% 1% 14 L 10,000 10% 1% 15 L

Totals 100,000 100% 10%

Fig. 22.2

MUSIC IN RADIO 349

reports to subscriber stations. This gives the stations an overall picture of listeners' preferences as well as a profile of the audience.

In addition to data bought from independent research companies, individual stations conduct their own market research. Controlled research is expensive to undertake, and a station will engage in it to the extent that its resources permit. Large stations in major markets have complete research departments, possibly headed by a Ph.D. in psychol- ogy or statistics. These expensive research operations focus their full attention on what all the figures might mean for just that particular sta- tion. Station research personnel often make large numbers of telephone calls at random, inquiring if the listener has the radio turned on, to what station, how often, his or her age, sex, musical preferences, etc. Other telephone calls are made to local record distributors and retail stores, inquiring which records are selling best. It is likely the station's ads will be "keyed." For example, a store might advertise a new product only on the radio and only on one station in the market area. It is a simple matter to determine the efficacy of those advertisements by asking the mer- chant how many customers appeared to inquire about that particular product.

A radio station gets additional information on its audience size and preferences through incoming telephone calls. Disc jockeys sometimes encourage listeners to call in to express their views. Another audience information source comes from fan mail. Analysts must be cautious in interpreting incoming calls and fan mail, because they may not be reli- able indicators of audience opinion.

DATA INTERPRETATION

It is one thing to accumulate the research data. It is quite another matter to interpret their meaning. The accuracy and usefulness of audience research information is widely disputed. Questions commonly raised:

1- How good was the sample? Did it typify the market?

2- How weak, how strong was the program preceding/following the program being measured?

3- How strong, how clear was the station's signal at the time the sampled audience was listening?

4- How strong were the competing programs?

5- What was the influence of publicity?

6- What was it that most attracted listeners—the music, the disc jockey, a prize contest?

It is evident to experienced audience researchers that their data must be interpreted with great care. Programmers and sales personnel must know what they are talking about if the station is going to accumulate a profitable share of the market.

350 CHAPTER TWENTY-TWO

Influence on Music Sales—We have abundant evidence that radio exposure helps sell recordings. But we also know that a radio station's audience size for a particular kind of music programming does not nec- essarily translate into record sales. For example, "adult" radio listeners

often favor adult contemporary, but they do not buy as many records in this style as the size of their radio audience would suggest.

PROGRAMMING

INFLUENCES

How does a radio station determine what kind of music it will put on the air? With great difficulty. Most research shows that about 20 percent of the stations change their programming formats every year. Almost one- half of those who do shift to a different programming emphasis will turn around within 18 months and change again. Competition for ratings (and profits) is fierce.

What are the factors that cause a station to change its format—or stick with what it has? These elements can be listed:

1- Inertia. When a station is reasonably satisfied with its share of the market, it tends to continue its programming format. Why abandon a win- ning formula?

2- Competition. There is room in any given area for only a limited num- ber of stations to share a particular segment of the available audience. If, for example, a station has grabbed the country music audience in a small market, another station will be ill-advised to change its moderately successful rock format and switch to country. Unless management has a lot of money for experimentation, it will tend to determine its program- ming format in accord with the strength of competing stations.

3- Trade charts. Most stations read the trade paper record charts each week to learn what records appear to be gaining or falling in national popularity. Much less known to the public, but influential with radio man- agement are certain tip sheets, e.g., the Gavin Report. Stations do not agree on the usefulness of record charts in determining playlists. There

is also disagreement on the objectivity of some of the trade charts. Most charts purport to show the extent of airplay records receive, the

number of records distributed and sold, the rate of rise or fall of individu- al records, and the geographic location where records may be breaking or fading from popularity. Stations lacking their own research resources tend to rely heavily on their favorite charts. Stations with their own research departments tend to use national charts only to corroborate

their own local research.

4- Record promoters. Program directors receive weekly visits from record promoters. These efforts rarely influence programming policy, but record promoters do influence how station programmers make up their

MUSIC IN RADIO 351

playlists. If this were not so, the record industry could not function as it

does today. Program directors are probably influenced most by those

promoters who have credibility—an6 good records. Experienced P.D.'s have learned not to succumb to the pitch of the fast talker. But program-

mers can be strongly influenced by a promoter who is persistent, particularly if that promoter has the kind of records the station is seeking.

5- Change of management. A station will often change its programming format when new management comes in, or when a station changes ownership. New blood may bring new ideas.

GATEKEEPERS

Those who determine what radio stations will broadcast are perhaps the most powerful individuals in the music industry. They are the gatekeep-

ers. Those they let pass may prosper. Those denied rights of passage will probably never rise from obscurity in the popular music field.

Who are these decision-makers? Until the late 1950s, most of the records that got on the air were selected by the disc jockeys. Following

the payola scandals, station management attempted to isolate their employees from the blandishments and bribes of record promoters.

Opinion varies on the extent of payola today. Most observers believe

that whatever payola exists is offered by the smaller labels. Medium and large-sized stations rarely risk the consequences of accepting payola,

now a federal crime. Large stations go to considerable effort to inform their employees about company policy. One Los Angeles station, for example, has a simple policy regarding payola: the air staff cannot

accept gifts of $25 or more from record companies, promoters, etc. If an

employee does receive a gift at Christmas or another occasion, a report

must be filed with the corporate office. Policies change from station to

station, but generally, if an employee is found to be accepting elaborate

gifts, drugs or sexual favors, immediate dismissal may be expected.

Most radio stations will have their programming controlled by one or more of the following types of gatekeepers:

STATION MANAGER—Very small stations have tiny staffs. The boss may make up the station's playlist, or may delegate all or part of this responsibility to a disc jockey. Station managers in larger stations would

have only indirect influence on determination of weekly playlists.

PROGRAM DIRECTOR ("P.D.")—Larger stations generally assign pro- gram directors the responsibility of making up the playlists. This is their

principal concern, together with the selection and scheduling of on-the-

air personalities. Even in major markets, some program directors will also take their turn on the air or cover for a jock who is ill.

MUSIC DIRECTOR—If a station lacks a staff person bearing the title "program director," the selection of the weekly playlist is assigned to the

music director. Larger stations sometimes have two persons sharing this

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responsibility. Record promoters soon learn who the real gatekeeper is, and they focus their efforts accordingly. Most music directors set aside

one or two days a week to either meet record promoters in person or

take their telephone calls. The music director is also responsible for lis-

tening to new releases, reading the trade magazines and tip sheets to keep up with national trends, calling retailers about sales and tracking

the station's own research (if it conducts any). All of this research is then

pulled together, with the music director and program director meeting to

decide what the station will add to its playlist for the coming week.

DISC JOCKEYS—While larger stations usually deny their disc jockeys the privilege of selecting their own playlists, some air personalities are so popular and powerful that they persuade management to let them select,

or at least share in the selection of, the records they broadcast. Some big name jocks insist on full control of their playlists. Small stations often lack research staffs, even music directors. In these kinds of limited oper-

ations, the disc jockeys share in whatever needs getting done, from

selling spots to sweeping out the studio. The small station's weekly

playlist might be improvised day to day, even hour to hour. For this rea-

son, record promoters from The Big City frequent these local precincts,

knowing that they might place a record on the local air for the price of a

one-martini lunch. This kind of payola would not be likely to cause hyste-

ria in the halls of the FCC.

PROGRAM CONSULTANTS—Stations that can afford it will call in, from time to time, independent programming consultants to advise them. A station that has been unable to increase its audience share, no matter

what it does with its programming, turns to outsiders, hoping that a more

objective viewpoint may identify what the station might be doing wrong.

MUSIC IN RADIO 353

Programming consultants who have developed a reputation for raising stations' ratings can charge handsome fees for their advice, some of which may turn out to be correct. Some stations may assign to an out- side consultant or production company the entire responsibility for making up its playlists and creating an "image" for the station.

PROGRAM CONTENT

Most radio stations devote 75 to 85 percent of their broadcast time to music. The only kind of commercial station not following this program- ming policy is the all-news or all-talk station. Practically all music broadcast is prerecorded. Most of it derives from commercially-released recordings originally licensed for private use in the home. Almost no radio staff orchestras exist today. Here and there a radio station might feature a local instrumentalist or small combo. A handful of stations try to maintain one low-budget live music show each week, perhaps, to offer air time for local artists trying to put together performing careers. But these last vestiges of live radio music, admirable as they may be, are exceptional in radio broadcasting. As a matter of fact, most of the radio stations built since about 1960 do not even have studios that can accom- modate more than a three-piece band, if that.

Everyone seems to know about "Top 40 Radio." This is curious, because it can hardly be said to exist today. Several surveys show that the length of the average playlist among stations seeking the rock audi- ence is below 30 records. In fact, formats in general have changed a great deal over the past few years. But most programmers agree that mainstream formats, which try to be all things to all audiences, are out. Audiences have become bored and fragmented, and are looking for alternatives, as easily verified by the success of such formats as Album- Oriented Rock, all Beatles and New Age.

"Reverse Programming"— Most radio stations discovered in recent years that radio audiences tend to leave on a particular station provided they don't hear a song they dislike. This complacency and inertia among listeners is caused, in part, by the reluctance of a listener to bother to move to the set and punch a selector button. With car radio listening, station switching is a very different matter, because the buttons are so easy to reach. The bulk of the radio audience seems prepared to leave a set droning on as long as it doesn't become annoying. Many listeners will explore the radio dial, not for a particular station (most will not care which station it is), but for a style of music they like. Studies repeatedly show that the listener will not move off a station unless a record comes on that is different in musical style, inconsistent with the other music the station typically programs. When the listener notices the station is play- ing a song different from what is familiar or pleasing, that listener may then punch out, searching for another station that is more consistent, less disturbing.

Radio programmers therefore do everything they can to avoid upset- ting their audience. This, then is reverse programming. A station determines, not so much what it believes its audience will like, but what it

354 CHAPTER TWENTY-TWO

will not dislike. This programming philosophy, when carried too far, can result in a station's sound being so predictable, so unimaginative, that listeners interested in newer artists and occasional innovation may tend to favor a station that takes some chances. The conservative approach to programming (avoiding, at all costs, listener alienation) works only for stations that are interested mostly in maintaining their present audience share. It would be unwise to adhere to such a constricting policy for a sta- tion that is trying to find new listeners.

While some stations permit their staffs the occasional luxury of broad- casting personal favorites, most profit-making broadcasters do every- thing they can think of to identify what the potential audience wants to hear, then provide it, 24 hours a day.

Few stations conceive of their establishments as art centers. Rarely does management believe it has any special obligation to educate the public to "good" music. The station's FCC license states that its obliga- tion is just "to serve the public convenience and necessity." This would exclude any feeling of obligation to push Stravinsky or Bach.

The concept of programming based on non-alienation has led to seg- mentation and categorization of radio stations. Nearly all broadcasters have figured out just what share of the market they want to go after—oldies, classics, AOR, etc., then hold to it as consistently as they can, so that the potential audience will eventually discover them because they offer not only what the listener likes, but predictable music.

This is all very neat. But the fundamental problem of all radio broad- casting is the changing of public tastes and how to keep up with it. Enterprising radio programmers have the choice of simply reacting to these changes or attempting to influence them.

The phenomenon of the crossover record will increase its influence on radio programming. But it appears unlikely that we will see the success- ful emergence of the anything-goes station, throwing together records from all styles in an effort to grab everybody who likes music. Stations will continue to try to maintain their own identities, their own personali- ties.

Record Clustering, Pacing—Whatever the dominant type of music pro- grammed, stations often cluster X\ne\r songs, then cluster their commercials. Some studies show that this pattern of grouping tends to hold an audience more effectively than a pattern of announcement-song- commercial then announcement-song-commercial- and so on. One typical example of clustering is the playing of "sets" of music, such as six songs in a row or 30 minutes of non-stop music.

Programmers hold different views on how to pace records. Some believe that in a three-record cluster, audiences will favor a sequence of tempos, say, slow-medium-fast. Others prefer to alternate solo artists with groups. Some stations now use technology to pace and rotate their music. With a personal computer and specific software, a station can program its entire library on disc, solving rotation worries and maintain- ing a consistent air sound.

Stations using cluster programming, then "back announcing," create in that format a span of air time for the disc jockey to speak continuously

MUSIC IN RADIO 355

for awhile, thus affording an opportunity to chat about several records and invest some personality into the reading of commercial copy or in recommending a particular sponsor whose products we should not do without. This kind of "personality radio" seems to appeal to many lis- teners. With all the music being canned, about the only element of spontaneity and personality a station can provide is through its disc jock- eys.

Commercial Loading, Day Parting—Stations must pay attention to what is often termed "commercial load," the proportion of their broadcast time given to spot announcements. Too many spots turn off listeners; too few reduce income. Broadcasters search for a sensible balance. One Los Angeles station recently decided to take a novel approach to com- mercials: it is selling and airing fewer of them, only four per hour. The strategy seems to be paying off, at least so far, for sales have outpaced projections. The advertisers are happy with this arrangement because their commercials do not get buried and therefore can make more of an impact, and of course, the listeners are happy because they get to hear more music.

Programming consultants usually recommend a station show consis- tency of programming style throughout each 24-hour period. Other programmers believe more in "day parting." This term describes a kind of programming that divides the broadcast day into such segments as "morning drive," "midday," "evening drive," etc. The day parting theory holds the view that particular DJs, particular musical styles, are best suit- ed for listeners as they drive to and from work.

SYNDICATION

Independent production companies package complete programs, then license or sell them to stations. Such programs are said to be in syndi- cation, and the packagers of them are called syndicators. The producer of syndicated programs determines a format for a show or series of shows, engages the announcers, then lays in the music tracks, inter- views—whatever is to go into the programs. Most of the music used by syndicators is lifted from commercially released records. Special new music is rarely used because its cost is considered prohibitive. Syndica- tors draw upon music library sources when needed. These services, most of which date back to the early days of live radio drama, offer a complete catalog of music "cues," ranging from a symphonic passage to the sound of rustling leaves. Much of the music derived from library ser- vices has been recorded in Europe at rates well below those current with the AFM, but more music using synthesizer sounds is recorded here now. A radio station or a radio chain can order prepackaged programs

delivered on open reels or discs or by satellite transmission. The shows provide time for insertion or addition of commercial messages by the local station. Syndicated program material can range in length from 30 seconds to several hours. It can be an individual, one-time program or series. Most syndicated programs are based on a single concept. The concept may feature one artist, or it might be based on a particular style

356 CHAPTER TWENTY-TWO

of music or one composer, or be in historical format, e.g., "The History of Rock and Roll."

Production companies are now producing more and more specials fol- lowing the precedent set in the 1950s by television "spectaculars." Stations leasing or buying special syndicated programs believe their cost is offset by their quality, and they offer useful vehicles for the station to attract attention.

Radio programming has become imitative and conservative. Whether the ideas come from the station or from independent producers, broad- casters may need to take more chances, engage in experimentation, reach out for audiences that have long since become bored with pre- dictable, formula programming.

AUTOMATION

Increasing numbers of radio stations have turned to automated program- ming. Automated stations use programs that have been syndicated by an independent production company, then leased or sold to individual stations or radio networks. Automatic equipment is available that will accept, not just a 30-second spot announcement, but a whole stack of

Automated radio: operator can interrupt taped program with local spot announcements.

Control 16 Processor by Broadcast Electronics Inc.

MUSIC IN RADIO 357

program cartridges which may run, unattended by station personnel, not just for one program, but continuously all day and all night. It is theoreti- cally possible for a station to stay on the air for days at a time without any human being entering the studio.

Stations turn to automation in an effort to make more money. Certainly these broadcasting robots do not demand high salaries; they have no union minimums; they don't complain about working conditions; they don't talk back to the boss, and the only thing they demand for nourish- ment is a fresh stack of tapes. A station may turn to automation for reasons unrelated to rising costs.

Management may have tried various programming formats and been unable to dent a local market. An absentee owner might prefer to entrust what the station broadcasts to a recognized producer rather than local decision-makers.

Automated radio broadcasting lias distinct disadvantages, and most stations believe they outweigh the savings in operating costs. Auto- mated programming denies a station flexibility in scheduling, not only in program content, but with commercials. Automation can lock you in for hours, if not days at a time; it lacks spontaneity. Audiences sometimes perceive they are being fed canned fare and may resent it.

Semi-automation—Stations wishing to avoid the canned effect of 100 percent automated programming use what can be called a semi-automa- tion technique. Their program directors and disc jockeys design their own programs locally, using commercially-released recordings as their principal content. They write scripts which introduce the records and jin- gles a day or two before air time, and try to make the canned copy sound spontaneous when heard on the air. The announcers then record the material on tape cartridges, the end of the "carts" being encoded with a signaling device (inaudible on the air) which causes the next-scheduled cartridge to start broadcasting. This sequence of carts contains almost everything to be broadcast—music, jingles and commercial announce- ments. Such semi-automated stations interrupt the canned material only for news and weather announcements. "Air personalities," which many DJ's prefer to be called, then, are no longer jockeying discs at all, just punching start-and-stop buttons activating the equipment. A sad portrait for those who used to think of a disc jockey's job as having something to do with glamour and excitement.

Cable Radio—Some experts predict that delivery of recorded audio entertainment may eventually bypass many AM and FM stations and be delivered into homes by cable, much like TV cable. Cable radio technol- ogy now available can deliver a pure signal, in stereo, to any subscriber willing to pay for it. We can anticipate the availability of digital cable radio, for receipt of

even higher quality sound.

**'

Have you seen Michael's new song? EXCITED YOUNG FAN

For a full understanding of the present cfiapter the reader might well review

Chapters 6 and 7 (video copyright and licensing); Chapter 17 (video issues in recording contracts); and Chapter 19 (video promotion, distribution and mer- chandising).

This summary chapter focuses on jobs in TV music, delivery systems and video production.

Definition of Terms — The term "telecommunications" is used today in two contexts. The word is used in a narrow application by telephone equipment manufacturers to define their instruments and communica- tions services. Webster states that the term "telecommunications" is also properly used in the generic sense, to cover "communication over dis- tances," including conventional TV broadcasting, cable TV, and video. As used here, the term "videocast" describes any telecast of a music video.

RECORD PROMO CUPS

The music business has been totally involved with the telecommunica- tions industry from the beginning. In the 1950s, the "music-vahety show"

360 CHAPTER TWENTY-THREE

was popular and offered jobs for instrumentalists, singers, arrangers and directors. But that kind of program lost much of its audience with the increased interest in dramatic shows and sitcoms. The steadiest employ- ment for musicians in TV has been in scoring commercials and under- scoring dramatic action (these topics are covered in the two chapters fol-

lowing).

The most far-reaching development in telecommunications for musi- cians occurred in the 1980s — with music videos. Their rapid rise in popularity can be partly attributed to cable television. After years of transmitting only standard TV broadcasts, cable TV systems began to develop original programs supplied by independent producers.

Kamikaze Capitalism? — In 1981 Warner Amex came up with an absurd idea: cable operators should start telecasting video promo clips 24 hours a day, seven days a week, even if everyone involved loses money on the deal. This kind of self-destruct planning could be called "kamikaze capitalism." Warner Amex named the idea "MTV." A few cable operators tried this approach, and MTV lost millions. At the start. But then the programs caught on, built an enthusiastic audience, and started to turn a profit — for MTV, the cable operators, and for the record companies that soon fell in love with the promotional value of this kind of exposure. MTV quickly inspired a great many other music video telecast- ers and, as we all know today, the nutty, money-losing idea revolutionized the music business.

Listening With the Eyes — From the beginning, music, dance, drama and ceremony have been closely connected. People have always tend- ed to "listen" with their eyes. Record companies and filmmakers have been turning out visual interpretations of songs for decades. In Europe and Australia, where promotion of records was limited by the scarce number of radio stations, filmed entertainments much like today's videos have been used for a long time. But in the 1980s, record labels and inde- pendent producers developed a relatively new style of music dramatization. Most of the early videos were based on rock-and-roll records, and the visual entertainments invented to accompany the sounds reflected the energy, craziness and sometimes the vulgarities of the music. So the young fans took to the rock videos enthusiastically. Music videos became so popular that their fast-paced, sometimes spec- tacular style was borrowed for TV commercials and theatrical movies.

After MTV gained large audiences of rock fans, some videocasters discovered the medium could also attract viewers preferring other musi- cal styles, from folk to classical. The record companies made similar observations: a medium initially used only to promote rock records could often be effective in generating sales of other styles.

An entertainment form born of telecommunications burst out of its original territory and is now seen, as we all know, in supermarkets, theme parks, movie theaters, on airplanes, in sports arenas and concert halls. If that weren't enough, videos increased their sales in the form of

home video software.

MUSIC IN TELECOMMUNICATIONS 361

STATIONS AND NETWORKS

Ninety-eight percent of American homes own at least one TV set, and most of them are in color. The most puzzling statistic to understand is that the average household has the magic box turned on more than seven hours a day. The three major commercial networks still dominate conventional broadcasting, though not as decisively as they had for most of the years since television's invention, and the most watched TV stations tend to be affiliated with one of them.

Audience preferences change from year to year, and programmers invoke the aid of everything from scientific research to sheer guesswork

in trying to figure out just what might win wide audience support. About

38 percent of TV viewership is of situation comedies; 22 percent sus- pense/mystery shows; 12 percent straight drama; 12 percent feature

films. The remaining t6 percent is of news, musical/variety and miscella- neous categories.

Despite the decline of network television, the most-watched programs are still delivered to homes via affiliates of the major commercial net- works. When a new show bombs, network executives have been known to wait as long as one day to cancel the show and slam a quick fix into the ailing time slot. And the advertising revenue just keeps rolling in.

The incredible success of commercial television can be attributed to two factors. First, it delivers a variety of entertainment and information into homes 24 hours a day, seemingly without cost to the viewer. But the more fundamental reason is not just that it is an entertainment medium. Rather, it is because TV is a magic selling machine.

The function of the entertainment segments of the programs is not to entertain, but to lure the viewer to watch the commercials. As with radio, advertising rates for TV are determined by the size and demographic makeup of audience a station or network can deliver. Audience mea- surement techniques for TV are more sophisticated, and probably much more accurate, than those available for radio. Advertisers can know before they spend their money what their "cost-per-thousand" will be to

EXTENT OF TELEVISION BROADCASTING IN THE U.S.

The Number of Stations Licensed by the FCC

Commercial Noncommercial Total Number

VHF UHF VHF UHF

543 501 126 207 1377

COMMERCIAL TV BROADCASTING REVENUES — $23 billion PENETRATION OF ALL AMERICAN HOMES — 98 percent HOURS WATCHED PER DAY BY AVERAGE TV HOUSEHOLD — 7.1

Source; Figures based on National Association of Broadcasters and Broadcasting/Cable- casting Yearbook.

362 CHAPTER TWENTY-THREE

deliver a commercial message. Early in the 1950s, advertisers learned that selling via TV was generally more effective and relatively less costly than print media.

Commercial TV stations and networks take in about $23 billion a year in time sales. Many more dollars are spent each year to produce the commercials and program material filling these time slots. A sizable chunk of this production money goes to musicians, entertainers, their managers and agents.

STATION ORGANIZATION

Most television stations lead two lives. One is a station's local existence in its own community. Its second level of existence is as a network affili- ate. This bifurcation can most clearly be observed in a station's sales department. The vice-president for sales assigns salespersons to either local advertising or national accounts. Some personnel function at both levels. A large station will have at least a half-dozen salespersons calling on prospective local advertisers and negotiating with advertising agency media buyers. Others in the sales department will handle national sales accounts, usually brought to the station by national advertising agencies

which buy time and assist in scheduling broadcast campaigns. Stations affiliated with networks periodically negotiate how much air time should be shared with the network, how much should be withheld for local adver- tisers, and what proportion of time should be used for national spot advertisers whose ad agencies buy time directly from local stations.

Station sales departments sometimes get involved in conceiving, even producing, ad campaigns for sponsors. However, when production begins to get elaborate, the salespeople leave such problems to an

agency or to the station's programming personnel. Television programming departments are headed by a director of pro-

gramming in larger stations. But in most stations, the great bulk of station-generated program production occurs in the news department. Now that most people favor broadcast journalism to print media as their news source, audiences have grown large enough to enable most news shows to turn a profit. Other than news, local station program production

TELEVISION STATION ORGANIZATION

\ GENERAL MANAGER | 1 1

ADMINISTRATION

Finance/FCC Licensing/Public

Relations

Office Manager, Research Direc-

tor, Personnel Director, Controller

PROGRAMMING

Network Feeds/News/'Syndi-

cated Shows

Progrann Director, News Direc- tor, Traffic Manager, Talent

SALES

Local/National

Sales Manager

Sales Staff

J ENGINEERING

1 Cfiiel Engineer 1 Audio Tecfinicians 1 Video Technicians 1 Maintenance Technicians

Fig. 23.1

MUSIC IN TELECOMMUNICATIONS 363

is normally limited to low-budget children's programs, audience game shows, talk shows, perhaps an occasional local talent show, and public

service shows. The use of music in local station programming is minimal.

Orchestras larger than quartets are rarely hired. If music is needed in

connection with locally produced shows, canned music tracks are used.

The engineering department of a TV station functions somewhat like its counterpart in radio, except the task in television is more than twice

as complex — because the engineering department must have experts in both audio and video. In addition to maintaining increasingly sophisti-

cated audio/visual equipment, each station needs a staff of engineers to

handle film and tape transfers. The engineers must know how to operate and maintain complicated electronic tools which generate, manipulate,

record and play back images and sound. Engineers also assist in rack-

ing filmed and taped material for intercutting with network feeds, etc.

Anyone who has witnessed the master control room of a large station, with its elaborate mixing consoles, equipment racks, multiple screens

and supporting hardware can well appreciate that engineers perform

complicated tasks to keep the station on the air.

The office operation of a television station is comparable to that of a large radio station or other business concern which must find efficient

ways to handle departments such as personnel, accounting, research, legal affairs and community relations.

CABLE TELEVISION

Industry analysts predicted that cable TV would grow rapidly in populari- ty because it could offer over 100 channels and cater to smaller audiences of select tastes. This kind of programming is sometimes referred to as "narrowcasting." Cable TV programmers have reduced conventional TV watching, but "narrowcasting" has not been a panacea. Most people spend relatively little time watching channels of narrow

interest. Failing to capture large numbers of special audiences, cable operators now try to attract about the same mass audience that is accus- tomed to conventional TV. The larger cable operators already have corporate ties with TV broadcasters and program production companies. These interlocking relationships allow cable operators to fill much of their program needs within their own "families."

Pay television channels such as HBO draw a share of the TV audi- ence, but premium-pay movie channels of this kind are running out of

feature films; Hollywood studio vaults are about empty, and annual pro-

duction of new films, 200 or so a year, is inadequate to meet the demands for theatrical exhibition, telecasts and cable. So pay-channel firms such as HBO find it necessary to produce some of their own movies, usually in cooperation with Hollywood studios or independent

producers.

Just as cable TV eroded the market share of traditional broadcasting, a variety of newer media threaten to further splinter the marketplace:

• Prerecorded videocassettes and videodiscs have stolen some view- ing hours—certainly slowing the growth of pay TV during home video's growth phase in the 1 980s.

364 CHAPTER TWENTY-THREE

• Pay-per-view programming, a variation on traditional pay TV, deliv- ers a specific program for a separate fee. Though initially slow to catch on, this potentially lucrative medium has offered everything from live concerts to movies not yet seen on any other form of television.

• Cable TV is further threatened by the development of direct broad- cast satellites, which may eventually bypass, not only cable TV, but most other media in delivering entertainment directly to the home.

• The next decade and beyond will see the involvement of telephone companies (telcos) in the delivery of entertainment. The FCC, broadcast- ers, cable system operators and phone companies are struggling over exactly how and when the newest technologies will enter the majority of U.S. homes. Such technologies include the utilization of fiber optics to replace existing coaxial cable, and high-definition television (HDTV).

EXTENT OF CABLE TV IN THE U.S.

OPERATING SYSTEMS 9,300 INDUSTRY'S ANNUAL REVENUES $14 BILLION SYSTEMS ORIGINATING THEIR OWN PROGRAMS 4,400 SYSTEMS OFFERING PAY CABLE 7,400 Source; Figures based on data from Broadcasting/Cablecasting Yearbook

PRODUCING SHORT-FORM VIDEOS

Most record companies lack video directors in-house and engage inde- pendent directors and production companies. Once a label decides to produce a video, the next step is to propose a budget, then form a com- mittee to come up with a concept for the visual entertainment. While situations vary, it is common for a large record company to have an executive heading up the label's video production. Smart ones know their limitations and gather around them several individuals to help cre- ate ideas for visualizing the master audio tape.

Video production decisions are often shared among the aforemen- tioned label executives, the A&R department, the artist and/or artist's management and, most importantly, the outside video director. The cre- ative director will probably dominate this production committee and help those involved settle on the concept for the production. Most video direc- tors have backgrounds directing films and/or TV commercials. The recording artists hope that the director cares about the music and is sen- sitive ^o how the sounds might be most artistically fused with the visual events. All concerned hope, or should hope, that the final result man- ages to avoid the many cliches and excesses which so often plague the medium.

The video director will want to engage, early on, a writer, production designer and, possibly, a choreographer. A video "storyboard" is created, similar to the storyboards created for TV commercials (Chapter 24), and a shooting schedule is set. The accompanying chart shows the three phases characterizing most short-form video production.

MUSIC IN TELECOMMUNICATIONS 365

SHORT-FORM VIDEO PRODUCTION The Three Phases

PRE-PRODUCTION PHASE 1- Audio master tape is completed. Record company negotiates a synchro-

nization license with the music publisher for the video

2- Label determines a production budget, negotiates with the artist for possi-

ble sharing of costs

3- Budget is set and label engages a free-lance video director

4- Director, label and artist develop a concept for the video

5- Director engages a writer, production manager, possibly a choreographer,

supporting cast, director ofphotography

6- Director, writer and production designer lay out a storyboard

7- Sets are designed, constructed or rented; costumes are designed, execut-

ed or rented

8- Soundstage is booked; production manager engages production personnel

(gaffers, stagehands, etc.)

9- Production manager rents equipment as needed (cameras, lights, dollies)

10- Director orders audio click tracks to aid rehearsals and taping synchroniza-

tions

11- Production manager takes out accident, health and liability insurance

12- All of the above are reconfirmed

ON THE SOUNDSTAGE

1- Director rehearses the performers' lip-synching, stage movements. Chore-

ographer rehearses dancers

2- Director rehearses camera movements, approves lighting, plans special

effects

3- The production is shot

POST-PRODUCTION PHASE

1- Production manager orders return of all rented equipment, sets, costumes;

orders sets struck, soundstage cleared

2- Director supervises all post-production work, including editing, processing

of visual effects, computer graphics, opticals; edits- final master, orders

copies made 3- Production manager 1) obtains releases from all performers, artists and

creative personnel; 2) gets signed W4 forms from all personnel; 3) satisfies all union contractors; 4) authorizes payments to all personnel

4- Director delivers video master to the record company

5- Director and production manager confirm all bills have been paid

6- Director and production manager reconfirm everything

7- All concerned look for their nextjob!

Record company seeks airplay, attempts to recoup production costs through non-videocast performances and from sales/rentals of home video products.

366 CHAPTER TWENTY-THREE

Budgeting — Even low-cost videos incur expenses more diverse than those for turning out an audio master. Typical budget items: fees for director, production designer, writer, choreographer, production manager; wages for grips, gaffers, electricians, carpenters, sound operator, special effects personnel, video mixers/editors and talent (actors, dancers, extras); expenses of set construction, costume design and construction, equipment cartage and rental, location rental, soundstage rental, audio/video film/tape lab costs, post-production editing, processing,

insurance and transportation.

Artistic Control — Differences may arise over "artistic control." The director may want one thing, the artist something else. The artist's recording contract, when properly drawn, will articulate who decides how the videos are to be handled, particularly in respect to style, content and choice of director. Smart artists will usually defer to the judgments of directors of proven ability.

PRODUCING VIDEO ALBUMS, TV MUSICALS

Production of video albums is similar to TV musicals, so we consider them together here.

Take a careful look at Fig. 23.2. It provides graphic representation of

how musicians and other personnel work together in this sector of the telecommunications field. This flowchart shows a huge payroll, and pro- ductions on this scale are economically feasible only for network shows,

video albums and cable TV specials. It is probable that part, possibly all, of the costs of such productions is borne through exploitation of "after-

markets," e.g., home video software, theatrical showings, foreign exhibitions, etc.

MUSIC IN TELECOMMUNICATIONS 367

The Production Line — A program (or series) of this kind requires the services of a large number of talented artists and business people. Here is a typical sequence of activity, which we might call the music produc- tion line:

1- The producer contracts the director, writers and performers.

2- The producer schedules a series of meetings to decide what music is

to be programmed and who is to perform it. These decisions are made by the individuals invited to the production meetings: musical director, writers, choreographer, featured performers and art director. Star performers will probably bring along their own personal musical directors, perhaps their personal managers.

3- The musical director meets with the special material writers, music

coordinator and featured artists to set music routines — style, key, sequence, length, etc. The music is then sketched for full scoring

later.

4- The music coordinator, often doubling as the rehearsal pianist, will rehearse the featured performers, using musical sketches, confirm-

ing keys, routines, etc.

5- The musical director hires arrangers to score the charts for the orchestra. This person is usually too busy attending production meetings to write many of the charts.

6- If background singers are to be used, the musical director will proba- bly hire a choral director to score the charts for the singers, hire the

singers and rehearse them separately from the orchestra.

7- The arrangers hire copyists or a music preparation company to extract the parts for the instrumentalists and singers, run off multiple copies as needed, bind the scores, set up the books and deliver them to the studio for rehearsal and recording. The supervising copyist will attend the recording sessions, serve as music librarian,

and will almost certainly be called upon to correct mistakes in the parts, even re-orchestrate a passage if need be.

8- Meanwhile, the musical director has hired an AFM contractor to engage the individual musicians who are to comprise the studio orchestra. The contractor and supervising copyist develop a list of "doubles" — the musicians in the orchestra who will be required to play more than one instrument. The contractor then notifies the dou- bters what additional instruments to bring to the sessions. This is

particularly critical for woodwind players and percussionists.

9- The orchestra will prerecord most, if not all, of the show. Prerecord-

ing may be done to provide accompanying music for dancers. Featured singers may prerecord their voices too, particularly if they are called upon to dance when they sing.

10- After preliminary rehearsal, the background singers join the orches-

tra to record their tracks. l\Aeanwhile, the audio engineers have been busy trying not only to record the best possible orchestra-choral sounds, but coordinate live recording with prerecorded tracks. They are assisted in this effort by music cutters or editors. Final master tapes are produced which now include, not only music, but dialogue and sound effects.

368 CHAPTER TWENTY-THREE

TV/VIDEO PRODUCTION

Wdeo albums, TV musicals, Award Shows, Specials

ARTISTS

BUSINESS MANAGER Music Rights

Budget Control

Logistics/Facilities

Payroll/Taxes

MUSIC COORDINATOR Special Material Writers

DIRECTOR

ORCHESTRA CONTRACTOR AFM Steward

WRITERS

ARRANGERS Copyists

CAST

VOCAL CONTRACTOR AFTRA Steward

TECHNICAL DIRECTOR A/V Technicians

CHOREOGRAPHER Dancers

VISUAL ARTS Art Director

Costume Designer

Fig. 23.2

MUSIC IN TELECOMMUNICATIONS 369

JOBS IN TV MUSIC

Creation of video albums and TV musicals requires a large number of artists and production personnel. Among the most important —

Executive Producer — This is the individual in charge of the whole undertaking and the one who then delegates responsibilities to his asso- ciates. An executive producer might well be the person who has the financial backing for the program or the network support, or may control a star who is to be featured.

Producer — The day-to-day management often falls to the producer, perhaps the most ambiguous title because it can apply to a senior deci- sion-maker (as well as to a more minor functionary) who handles many of the decisions relating to concept, budget, casting, writing and filming.

Associate Producers — Musical-variety shows have two to six indi- viduals who execute the decisions of the producer and often make important decisions on their own in respect to such matters as minor casting, stage direction, scheduling, equipment rentals, filming remotes, rerecording, rehearsals, liaison with contractors — and anything else needed to keep the producer from going crazy. These helpers are called associate producers or production assistants. Some associate producers are merely gofors; others wield important responsibility.

The organization most representative of video producers is MVPA, the Music Video Producers Association. MVPA claims its major goals are to exchange technical information, standardize production bidding proce- dures and formulate guidelines for fees and payment schedules.

The Director — The director must possess strong administrative skills and talent for creating imaginative "visuals." Videos now lead movies in visual production values, the pace being set by short-form promotional clips. Besides skillfully moving performers and cameras, the video direc- tor today will use a variety of mechanical and optical effects, multiple images, jump-cut editing, perhaps computer-generated graphics. The old-fashioned movie directors are left well behind.

Featured Performers — Singers, instrumentalists, actors and dan- cers who are cast as featured artists are engaged by the producer. The individual doing the hiring first tries to sign the stars, then contracts for

the supporting cast.

l\/lusical Director — This person shares, with the producer and the director, the task of selecting material for the production, e.g., songs,

dance music, underscoring, special material. The musical director also engages arrangers, retains an orchestra contractor, conducts the orches- tra and confers with the audio technicians. If background singers are used, this person will engage a vocal contractor.

370 CHAPTER TWENTY-THREE

Special Material Writers — Many shows engage composers and lyri- cists to prepare special routines for featured artists. Quite often these

writers will prepare elaborate medleys, portions of which may include new music, new lyrics, bridges, patter, etc. These writers are hired by the producer or director or musical director. Many writers of this kind of spe- cial material learn their craft through experience on Broadway.

Music Coordinator — These persons assist the musical director in setting up music routines for featured artists. Sometimes they help in locating obscure copyrights. They may assist communication among the musical director, arrangers and the orchestra contractor. Most music coordinators have backgrounds as rehearsal pianists. If they do, they are

called upon to help featured performers learn the charts. They may have participated in laying out sketches for the arrangers, setting keys, repris-

es, etc.

Music Editor — These individuals, sometimes referred to as "music cutters," are required whenever prerecorded music is intercut with either live music or newly-recorded tracks. They work with the other sound technicians in mixing music with dialogue and sound effects.

Songwriters — Except for the individuals hired to write special materi- al (see above), songwriters and lyricists are not hired for TV shows. Rather, the songs used on programs are selected from material already

available on the market or about to be released. A songwriter's entree to television is through a publisher.

Composers — Those qualified to underscore drama or those who are able to compose effective music for dance routines are consistently required for television. Musicians with these qualifications come from the ranks of established composers who perform most of their services for dramatic TV shows and feature films rather than variety shows.

Arrangers — Musical directors arrange music for their shows when they have time. But most of the scoring is done by free-lance arrangers hired by the musical director. All arrangers working on network shows are AFM members. Most of them work for AFM scale, which is high. The busiest arrangers can handle a variety of styles and they survive in this

competitive field by being able to do top work, fast. Instrumentation,

style, keys, overall length of charts are usually determined "by commit-

tee." This decision-making group will often include, besides the arranger,

the music director, music coordinator, the star and perhaps the star's

own musical director.

Copyists — Major shows use a great quantity of music, nearly all of which is in manuscript form. The musical director or the arrangers hire copyists to extract the individual parts. Because of the volume of work

and pressure of time, arrangers usually engage a supervising copyist who in turn hires other copyists to assist in meeting deadlines. All net-

MUSIC IN TELECOMMUNICATIONS 371

work TV shows use AFM members exclusively for copying, proofreading and library work. Much of this work is assigned to music preparation ser- vices, firms that assume the full responsibility of getting the music ready for performance.

Orchestra Contractor — This person is hired by the musical director to engage the individual musicians comprising the studio orchestra. The contractor is the union steward for the AFM and is responsible for seeing to it that the terms of the contract between the producer and the AFM members are carried out. In addition to engaging each instrumentalist (only AFM members are used) and supervising adherence to AFM work rules, the contractor is responsible for making out the payroll, calculating wages, deductions and benefits. Finally, this individual must see to it that paychecks are available when due. The contractor also assists the union in collecting AFM fees for its members for reuse and new use of music recorded for the show.

Orchestra Musicians — These artists are hired by the orchestra con- tractor with the advice and consent of the musical director. These musicians are drawn from a select pool of artists who can play nearly any style, at sight, without mistakes. First readings often sound as good as actual takes. Most delays are to correct errors in the score or parts and to make adjustments suggested by the sound engineers.

Vocal Group Director — When background singers are used, the musical director hires a vocal group director to engage the individual singers. This person is usually one of the singers in the group. The vocal director may also be the vocal arranger, cooperating with the orchestra arrangers in laying out the charts for the singers. In addition to directing

the group, this person doubles as the AFTRA union steward, and in that capacity, performs tasks for AFTRA quite like those performed by the AFM counterpart: seeing to it that the singers are paid, that fringe bene- fits are covered, work rules followed, and fees for reuse or new use are paid the AFTRA members.

Background Singers — The vocal contractor hires singers from a select pool of artists who are able to sing, almost at sight, any style from Renaissance polyphony to blues. All singers hired for network shows are AFTRA members. Most of them have studied voice extensively and probably started acquiring their skills in ensemble performance at an early age in school and church choirs.

Background singers for TV can be classified in two groups. "Off-cam- era singers" can perform as described above, but may not have the physical appearance required by the producer to sing and move on cam- era. These singers are heard, not seen. The second group might be called "camera-ready" singers. Besides possessing the musical talents described above, these artists have the physical appearance acceptable for on-camera exposure. They understand stage movement and can respond quickly to instructions from the director or choreographer. A

372 CHAPTER TWENTY-THREE

select number of this group are also trained as dancers, the performers who are known affectionately on Broadway as "the kids in the show." Some of these "kids," Broadway alumni, are pushing fifty, but they main- tain an appearance acceptable to the producer. These versatile artists are the first to be called and the highest paid of their kind.

Choreographer, Dancers — Most of the top choreographers and dancers come from Broadway. The most versatile among them are quali- fied to perform, with very limited rehearsal, dance styles ranging from classical ballet to jazz.

Audio Technicians — After a slow start, TV networks are beginning to catch up a bit with the sophisticated kind of audio mixing associated with the recording industry. Two or more audio technicians are used on TV musical shows to supervise microphone movement, mixing, remixing, equalization, and all the other maneuvers understood by the individuals in this elite fraternity. Some of the audio technicians possess strong musical backgrounds. Others have strengths, perhaps even university degrees, in electrical engineering. Producers put together a combination of such talents to get the sounds they want.

Production IVIanager — All TV musicals and video albums employ a production manager, who might be called a "line producer." This individu- al handles business affairs, budget control, logistics, facilities and equipment rentals, accounting, payroll taxes and insurance, aided by production assistants and associate producers.

Musical productions of this scale require the expert services of many other artists and technicians, but they relate only indirectly to music: scenic designers, lighting directors, costume designers, etc.

PERSPECTIVE

We lack agreement on who first thought up the idea of using music to sell things. It may not be unreasonable to imagine that, when the Indians sold the island of Manhattan for $24, they might have brought along a few tom-toms to help put the deal over. Probably the first memorable use of "commercial music" was the radio "jingle," "Pepsi-Cola hits the spot/Twelve full ounces/That's a lot." The early jingles jangled, and the "jingle" label is still used by the American Federation of Musicians and first-generation advertisers who created the monotonous commercials in the early days of broadcasting. The public simply calls them com- mercials, of course. Advertising agencies and broadcasters call them "spots."

As pointed out in the chapters on radio and television, it would be diffi- cult to exaggerate the importance of broadcast commercials in the field

of advertising. With radio, it is sounds that sell. In TV, it is pictures and sounds that move the goods and services, and musical sounds can often be more effective sellers than verbal ones.

Advertisers continue to experiment with different kinds of spots. One season, "testimonials" are in high fashion. Another season, comedy spots are in vogue. Whatever the changing fashion, one type continues to hold favor over the years — the commercial with music.

Current thought holds that audiences may receive a musical commer- cial with less resentment, but a better reason is that ad copy that is sung is easier to remember than copy that is spoken. Yet another advantage of the musical spot is that audiences learn a sponsor's theme music and

374 CHAPTER TWENTY-FOUR

remember the tune and the association long after the broadcast is over. When an advertiser can find a composer to write music that stays in the listener's mind, and if the listener associates the music with the product,

that sponsor is fortunate indeed. This happens often. Music also enhances the pictures and acts as a "clutter-breaker" to sort out the jum-

ble of spots. Sponsors continue to pay for music in advertising, knowing

that it is money well spent.

Influences on Style — Sponsors and ad agencies expect the musicians they hire to be up on current styles. The most effective spots seem to use about the same kinds of music selling well in record stores, although the decision to use a certain type of music should spring, ideally, from

the concept that shapes the particular spot. As for TV commercials, many of them employ the visual effects now commonplace with music videos. Some advertisers believe that these kinds of high-energy, fast- paced production styles hold viewers' attention, but slower-paced spots

sometimes make a very effective contrast. Now that so many TV shows are taped on VCRs for time shifting,

viewers tend to use their remote control devices to bypass commercials

by "zipping" (fast-forwarding through them), "zapping" (switching to

another channel) or muting them (using the "mute" button to punch out

annoying music and shouting announcers). Advertisers experiment with

black and white spots, shaky hand-held camerawork and flashing visuals

to grab the attention of viewers who may be zipping through a block of commercials. One advertising agency executive said that his clients are searching for unusual sounds to put in their spots that will "rivet the ear

and stop the zap." In fact, he said, the line between music and sound

effects has blurred, so that sounds made by musical instruments are now being combined with non-musical instruments. In response to this new emphasis on unusual sounds, "sound design boutiques" employing "sound specialists" have sprung up in creative centers across the coun-

try for sponsors who want a distinctive sound to go with their pictures. Another problem for advertisers is "clutter," i.e., the crowding together

by broadcasters of many short spots (some, only seven seconds) during a commercial break. Studies show that viewers tend to forget the com- mercials that run in the middle of a long string, thereby destroying the

effectiveness of those spots. In the advertisers' search for an answer to

clutter, they are relying on the increased use of what one advertising

executive called "thoughtful advertising" — cutting through to the thought. "If you could do the whole spot just with pictures and music, no

words at all, you'd have a gangbuster spot because it would stand out

from the clutter," he explained. It would also get the attention of the dis-

tracted viewer, who would be forced to look up at the screen to see if something had gone haywire with the TV set's sound.

Jobs — Writing music and lyrics for commercials is an exciting compro- mise between the worlds of composition and commerce and one of the most lucrative forms of music employment available; therefore, the com-

petition for jobs is ferocious. At the national level, sponsors and agencies

are willing to pay fees large enough to attract hit songwriters and alumni

MUSIC IN ADVERTISING 375

from Broadway. Commercials were a starting point for such successful musicians as Jim Webb, Roger Nichols, Barry Manilow and Paul Williams; indeed, one of Williams' most popular and enduring songs, "We've Only Just Begun," was first heard on the bank commercial for which he wrote it.

Additionally, the spot field at the local level affords good opportunities for talented, but unknown, writers to break into the commercial field.

MUSIC USES

The musical commercial described above can be called "thematic;" the composer's goal is to form in the listener's mind a memorable associa- tion of the melody with the product. When the melody includes words identifying the product name, it is even more memorable, often insepara- ble in the listener's mind. Advertisers call this phenomenon "product identification."

Another use of music with commercials involves underscoring dramat- ic action. Many commercials are conceived as little plays, and music is used to help create the appropriate mood or perhaps to punch up action. If the minidrama is comedic, the music may be scored in a style associ- ated with movie cartoons.

Sometimes commercials will simply borrow music from another source. The melody may already be familiar to the listener, but the origi- nal words are discarded and new language is written to convey the advertising message. If the producer wants to borrow a copyrighted melody, permission must be obtained from the copyright owner to alter the material and use it for advertising purposes.

Another type of musical commercial might be called "starbased." A well-known person offers, by acting or singing or dancing, a "testimonial"

for the sponsor. The advertiser assumes the audience will be persuaded to buy the same product the star "uses." Original music is composed for the star, but if the artist has a pop, rock or country hit, that recognizable

tune might be sung with modified lyrics, as mentioned above. Music on commercials is sometimes sung by amateurs when an

advertiser wants to give the impression that ordinary people, "just folks,"

use the sponsor's product. This amateur-type of singing commercial developed in the 1960s concurrently with the popularity of folk and rock styles. Sponsors attracted to this kind of natural singing have included Coca-Cola, Pepsi-Cola and McDonald's.

Music budgets for commercials range from $65 for a "needle drop" to perhaps $100,000 or more for an elaborate national campaign. One of the reasons the spot business is so good for musicians is that even hometown local sponsors like to massage their egos by purchasing their own theme music or product logo. Many composer-directors of limited experience break into the music spot business through low-budget jobs sponsored by the local furniture store or car dealer. That is true of local radio advertising. In local TV, custom music is rarely bought, because the small-budget sponsor must assign the dollars to production of the visuals. If the local TV advertiser wants music, "needle drops," from a

376 CHAPTER TWENTY-FOUR

Stock music house which supplies radio, TV and films, will probably be used. If an advertiser also uses local radio spots, portions of the audio

tracks may be lifted and transferred to video use, thus drawing extra mileage from the money originally invested in custom music for the radio campaign.

Nearly all local broadcast spots have limited budgets for music. But

national campaigns often spend huge sums for custom music. Not long ago, the majority of network campaigns were produced in New York, where most national advertising agencies had their headquarters; these giant firms controlled most advertising in this country. Now, though, the

creative thrust has shifted, and the hot creative centers include San Francisco, Los Angeles, Minneapolis, Seattle and Chicago.

STATION LOGOS

One of the most widely-used types of musical commercial is the station logo or "ID." Most radio stations and many TV stations hire an indepen- dent production company to create for them a musical "trademark" or fragment of sound which is used whenever the station announces (or shows on the screen) its call letters. Most station logos feature a small vocal ensemble. Electronically synthesized sounds are used (at a cost

far less than a full orchestra), but are often supplemented by live drums,

guitar, flute, saxophone or strings. Logos are often 10 seconds long, but vary in length from a few seconds to thematic types of extended dura- tion. The latter, sometimes called "image-type" logos, function more as theme songs and can be broadcast full-up or in the background for voice-over announcements. Wealthy stations often use a whole series of

musical IDs, played frequently enough for the listener to learn to associ- ate the music with the station and its call letters. For many years, the center of production of station logos has been Dallas, Texas, particularly T.M. Communications Inc. and Jam Creative Productions.

THE AGENCY ROLE

Most advertising is handled through advertising agencies. These firms range in size from one-person, office-in-your-hat operations to super

giants like J. Walter Thompson, whose annual billings in broadcast media alone total over $1 billion. Most sponsors prefer to place their radio and TV spots through ad agencies because, theoretically, the ser- vice doesn't cost them anything. Except for an agency fee for production services, the sponsor does not normally pay its ad agency to service the

account and place its business — the ad agency receives nearly all of its fees, not from the sponsor, but from the medium in which it places its client's advertising. These fees are actually called commissions, the standard rate being 15 percent. For example, if the ad agency places $1 million worth of business with CBS-TV, the network discounts the billing

to the agency $150,000. When an ad agency undertakes to produce for its client a series of commercials, it will be billed, say $100,000 in pro-

duction costs for such items as studio rental, actors, composers, etc.

MUSIC IN ADVERTISING 377

The agency, in turn, bills its client for that $100,000 and adds 15 percent for its commission. The sponsor and the agency may agree, before start- ing a relationship, that certain kinds of services are noncommissionable.

The 1 5 percent figure has become negotiable in the face of competition from "creative boutiques," which sell many of the services offered by a large agency, but without the high overhead costs.

Sponsors retain ad agencies on the theory that companies that spe- cialize in marketing know more about how to sell things than the manufacturer. Many small and medium-sized sponsors maintain in- house "advertising agencies" where their own employees conceive, pro- duce and place the company's advertising. But even in-house "agencies" will often retain an external agency to assist it in spot production and media buying.

An advertising agency — a competent one, that is — offers important services to the sponsor who wants to use broadcast media. Probably the most valuable of these is creativity, that much-abused word. That term, freely translated, when used in this context, means that the sponsor leans heavily on its ad agency to conjure, invent, borrow or steal ideas to sell things. People in music and advertising often use the word "concept" to describe an advertising approach or selling angle. Some people use the word "hook" in the same way. Most ad campaigns seek some unify- ing ingredient or premise.

An advertiser determines what can be spent in one year for advertis- ing, then retains an ad agency to offer advice on what part of that ad pie should be sliced for broadcast commercials. Once the radio and TV ad budget is agreed upon, the agency uses that money to implement the campaign. If the ad agency is very large, it will have on its staff a radio/TV production department and its own in-house staff of writers. Large agencies also often have, in-house, their own small recording stu- dios. While it is rare that even the largest agencies will attempt to record masters involving music in-house, they will often use their own facilities to produce demos and voice tracks.

The ad agency's next task is to farm out what it cannot handle in- house. This would normally include rental of filming studios, set design,

acting, music and editing. Even the largest agencies will normally go out- side their own shops for music. Many agencies do retain on their creative staffs individuals with some competence in music, particularly in the composition of lyrics and other kinds of copy intended for musical setting. But even here, professional composers find that a high percent- age of agency-written "lyrics" or music texts are pretty awful. We hear their awkward efforts even on network spots — unnatural accents, too many words, almost unsingable phrases. These writers receive these assignments because they are cheaper — they are already on the agen- cy's writing staff. But many of these copywriters lack qualifications to write words for music.

After the production work is completed, the agency has the responsi- bility of recommending to its client how and when the spots should be placed. Once the client and the agency agree on these matters, the agency instructs its "media buyer" to purchase the time and the spots go on the air. If the campaign appears to be selling effectively, the sponsor

378 CHAPTER TWENTY-FOUR

will be advised to stay with whatever happens to be working. If the results of the broadcasting campaign are disappointing, the sponsor may change the commercials — or it may fire the agency. Accounts come and go. Alliances in advertising survive only as long as the sponsor is satisfied with the results.

In addition to serving their advertising clients in traditional ways, some large agencies are involved in outside work, e.g., production of music

videos for record companies. Since videos have re-energized commer- cial TV music, they offer a fertile field for ad agencies' creative talent to explore.

ADVERTISING MARKETS

The kind of music that is right for a commercial will depend heavily on the target customer. Advertisers attempt to focus their messages on definable groups of potential customers. As in the record business, these groups are called "markets." Identification of these advertising markets is

achieved, or at least attempted, through the same kind of demographic research conducted by radio and television stations. As a matter of fact, sponsors, ad agencies and broadcasters cooperate in this research for

they share the same goal, maximum profit. This shared research pro- duces data similar to, but not identical with, the categories used in the

recording industries. Sponsors of broadcast commercials try to reach

one or more of the markets described on the following pages. Children — Affluent societies provide children with spending

allowances, and advertisers try to influence young buyers almost from

infancy. Advertisers also try to persuade children to encourage their par-

ents to patronize the advertiser. A good example is McDonald's hamburgers. That firm addresses much of its advertising to kids, believ- ing the youngsters can often persuade their parents where the family should go to eat.

Youth — The 12-to- 19-year-old group has billions to spend. Advertis- ers go after not only this money, but show keen interest in trying to establish habits among teenagers that may well stay with them as they mature into adulthood. Among the strongest believers in this indoctrina- tion theory are automobile manufacturers.

Yuppies — All research indicates that the biggest spenders are the young homemakers. Over half of such American households have two wage earners, a market which overlaps what advertisers call "young, urban professionals," or "yuppies." Having two wage earners in a house- hold creates more "discretionary" income for the variety of goods and

services needed by those homemakers. From the mid-1970s, advertis-

ers, including publishers and record companies, observed that the

number of teenagers was dropping and the size of the young adult and middle-aged populations was growing; indeed, many yuppies also com- prise the market known as "baby boomers," whose upper age range is the 40s. The music industry and the advertisers continue to adjust their use of music in response to what we might risk calling "maturing musical taste." Advertisers have found that "New Age" or "Adult Contemporary" music may fit the bill.

MUSIC IN ADVERTISING 379

Geritol Set — As the population ages, the mature adult — say, age 50 and older — is becoming not only the fastest-growing age group, but also one of the most affluent. Mature adults have identifiable spending tendencies, e.g., blood tonics, laxatives, etc. But many seniors also have the time and money for cruises, plane trips and the like. Advertisers with such products and services use the kind of music — sometimes MOR ("Middle of the Road") — that tends to attract their money.

Females — Girls and women spend most of the money advertisers try to attract. Commercials addressed primarily to females, e.g., cosmet- ics, undergarments, household cleaners, infant care, etc., account for

the largest share of the total advertising dollar. Men have traditionally produced most advertising campaigns. While their prevailing views of females may horrify liberated women, the male animal believes the most direct approach to attracting female spenders is through sex appeal.

When ad agencies order music for "the female market," they usually ask for "something sexy." While composers have never been able to precise- ly identify just what degree of eroticism their creations might conjure, it is generally understood that what the sponsor wants is something that sounds soft and pretty.

Working Women — The number of women in the work force has cre- ated an attractive market for consumer goods and services. Putting the emphasis in their commercials on time-saving, practicality, economy and getting ahead on the career track, advertisers generally rely on the same "New Age" and "Adult Contemporary" music they use to appeal to the more general "Yuppie" market.

Macho — Advertisers believe in stereotypes in both males and females. Since men buy most of the cars, trucks, stereos and beer, advertisers believe that "masculine-sounding" music will appeal to male vanity and attract increased spending among those of the male persuasion. Here the advertiser orders up music nearly the opposite from the soft-and- pretty formula used for females. For the macho market the music will be strong and forceful. Composers respond with big brass sections and male glee clubs singing energetically about the glories of Goodyear Tires. Sex-oriented commercials, male or female, may sound silly, but they sell.

Ethnic — Racially or culturally identifiable market segments show up in demographic studies. About 15 percent of the broadcast audience seems to be black. Advertisers try to buy music that is particularly appealing to this minority. The larger racially or culturally identifiable groups (particularly blacks and Hispanics) are often a lucrative enough target to support their own ad campaigns. Frequently, advertisers hire boutique agencies specializing in addressing a particular ethnic group.

As budgets permit, customized music is created for the ethnic market. In many cases, the mainstream signature music is retained, but perhaps arranged to accommodate new lyrics.

Affluent — Fewer listeners are in the upper-income brackets. But when they spend, they spend big. Banks, insurance companies, steel merchants and computer companies try to gain the attention, not of the mass audience, but the purchasing agents, investors and managers within the mass who make the decisions regarding big spending. Adver-

380 CHAPTER TWENTY-FOUR

tisers believe, probably correctly, that this more affluent element in the broadcast audience is attracted by the sounds from big studio orches- tras. Big ensembles just sound "richer."

Institutional — Large corporations spend millions on commercials in an attempt to inculcate in the public consciousness an image of the firm as an "institution." Advertisers seek to relate the corporate name with goodness, power, patriotism, stability. Producers engage large orches- tras and choruses to help conjure up such aural images. LCD — Advertisers aim most of their commercials toward the lowest

common denominator (LCD), or mass audience. Research has shown that the bulk of the audience appears to be unsophisticated, and adver- tisers generally assume that the mass audience is gullible. This accounts not only for much of the simple-minded copy we hear, but some of the lightweight music scored for the mass audience.

SPOT PRODUCTION

All advertising is concerned with persuasion. Since more than 90 per- cent of all TV spots are now 30 seconds, or less, in length, skill is required to make the "sale" — fast! A number of theories have been pro- pounded on the art. But all of them are related to the most widely accepted advertising formula, known in the industry as AIDA. That label should be easy for musicians, at least for those who have heard of Verdi. AIDA is an acronym for —

A Attention I Interest

D Desire A Action

WRITING COPY

Some of advertising's best writers not only agree with the AIDA philosophy, they make practical use of it — and go on from there. Addi- tionally, top writers make these recommendations:

1- Mention ttie sponsor's name as otten as you dare.

2- Be economical with words. In radio, let the music say it, in TV, let the pictures "talk.

3- Use simple language.

4- Express one idea — again and again.

Another school of thought, born of this age of clutter, is that the body of the commercial should interest the viewer and pique curiosity, while

the name of the advertiser is shown or mentioned only once at the end of the spot. In other words, sometimes less is more.

MUSIC IN ADVERTISING 381

One of the things done least well by advertising agencies, as pointed out, is writing copy to be set to music. It is astonishing how often even national accounts will accept music that is almost halted in its flow by the

awkwardness of the words being sung. In preparing ad copy or lyrics for singers, the minimum requirement is to come up with language that per- mits a natural musical scan. Without this, the composer will have to set the words to unmusical rhythms.

SCORING MUSIC

If the copywriter submits lyrically-conceived texts, the melodic rhythm

almost sings itself. Too often, agency copywriters lack musical sensitivity, and the composer must adjust the text to permit a rhythm that not only makes musical sense, but is naturally singable. Before starting to invent a melody, the composer must first scan the text to discover its natural speech accents. This should be accomplished by speaking the text aloud and observing on what syllables the speech accents in a phrase naturally occur. For example:

SPOKEN ACCENTS U Our

MUSICAL ACCENTS- Our

I U pro-duct

n pro-duct

U U / U U is de - pen-da-ble

J J J J J >

is de - pen-da-ble

All texts for musical setting should be scanned in this manner to make sure they can be sung naturally. A number of additional guidelines will be found useful by composers

trying to get established in the commercial field. For example, words ending with consonants require tones of short duration:

2 J

4 Tine

J J J

ver-y best

Its

J J J

guar-an-teed

Words ending on vowels can have tones of long duration:

4 It's

all

for

you

J J

Try our

J J

co-la

382 CHAPTER TWENTY-FOUR

When creating music for commercials, the most successful com- posers in the field appear to follow these guidelines:

1- Melody should be simple, singable and memorable.

2- Harmony should progress, give a feeling of drawing the music forward. Stylistic consistency is essential.

3- Rhythm should be conceived in the musical style the pro- ducer ordered.

Clients are not always articulate when it comes to musical sounds. So the smart composer will arrive for a briefing session armed with exam- ples. This can be a list of adjectives describing types of music, e.g., "Airline: confident, inspiring, soaring. . ." or some actual sample tracks, either original or taken from current on-air notables.

Instrumentation was once determined largely by budget constraints. With the rise of electronically synthesized music, however, choices have become more flexible, more open to a broad range of styles and sounds. Unlike much popular music-making, just about everything is written out for commercials. Improvisation is limited to appropriate liberties taken by the rhythm section. The arranger's main goal is to have the "front line" stay out of the way of the singers. The sponsor wants to hear the text, not the background. The cardinal rule for all arrangers scoring back- grounds for singers is: stay out of their way. When in doubt, simplify.

Melodies appropriate for commercials have limited compass, usually one octave to an octave and a fifth. The key for the singers must be very carefully determined. All else is sacrificed to provide the most comfort- able, effortless tessitura for the lead singer An easy working range for singing groups in the commercial field:

Women

SAFE COMPASS <

Men

PRODUCTION COMPANIES

Commercial production companies specialize in radio or television, rarely both. Total production costs for national spots using music run from $30,000 to $300,000, with some going higher. These firms are typi- cally staffed by a producer (or producer-director), a director (or director-cameraperson), office personnel and sales staff. The produc- tion company will sometimes contract for audio and video technicians

MUSIC IN ADVERTISING 383

through a technical production house. An art director and perhaps a graphic artist will be engaged freelance, as will musicians.

Production companies lease or own their own studios, which must provide room for at least single-camera film (or videotape, for smaller budget operations), sophisticated lighting, scenery/prop/graphics produc-

tion, and film and tape recording facilities. Almost all commercials today are edited on videotape at a videotape post-production facility. Wages and rental of facilities run to hundreds, sometimes thousands of dollars per day, depending on the extent to which the production company farms out part of the work. These are essentially video production facilities. Music is rarely recorded in them.

Companies outside of New York, Chicago and Los Angeles are typi- cally smaller operations which serve local, regional and, occasionally,

national accounts. They would probably have, in-house, a staff of two to five persons. Companies with small staffs may have modest TV filming studios or, more likely, they will rent shooting stages. Audio is recorded in recording studios, then later synchronized with tape or film.

Production companies specializing in radio commercials operate in dozens of cities, because their accounts are usually local and regional, not national. Radio spot firms range in size from one-person operations

to an in-house staff of five to ten. Many have their own recording studios or ally with a recording studio by sharing offices and staff. These firms often have studios big enough to handle small choral/instrumental ses- sions. When a sponsor wants something on a grander scale, producers rent independent recording studios. In smaller markets, there is often a close relationship between the local radio stations and production com- panies. In fact, very often the local radio station is the production studio

for local producers.

Firms involved in production often offer their clients complete pro- gramming services in whatever musical format the station wants — Top 40, MOR, Country, etc. In addition, full production houses also offer their clients music library services which include "commercial beds." They are 30- or 60-second music tracks that are arranged for use with whatever

ad copy the station or advertiser wants. These are original music tracks and are offered in a variety of musical styles. For example, the library would contain solid, dignified-sounding music for such sponsors as banks and insurance companies. When a station needs music back- ground for a store advertising clothing for teenagers, it can select from the library any number of Top 40-type beds. The necessity of keeping music beds up-to-date with changing musical styles opens up another avenue for employment opportunities in music. However, most of this updating takes place in major production areas, such as New York City.

Library services also include a selection of "neutral" tracks for spon- sors not seeking a particular musical trademark or association. These commercial beds are often arranged in three segments: a 60-second bed would open with perhaps a 20-second "front" which establishes the tone of the commercial. A "bridge" follows, where the music is less full in orchestration and less active in texture. This provides a musical back- ground ("bed") that makes it easier for the listener to understand the ad copy. This copy can be read live by the disc jockey, or it can be prere-

384 CHAPTER TWENTY-FOUR

corded. Following this middle section, the remaining time, perhaps 10

seconds, is where the bed rises up, so to speak, offering a musical reprise of the front. This end section is often called the tag, a term bor- rowed from vaudeville. Tags return to the "up full" sound of the front.

Production companies can be engaged to add singers and custom copy to the front and tag sections of canned tracks of this kind. This radio commercial format was widely used in the 1950s through the early 1970s. Since the format became so predictable, more imaginative producers and advertisers now prefer a less pat format and have experimented with a variety of sequences of copy, music, reprises, cold copy, and musical trademarks.

Commercial producers, whether supplying custom spots or library ser- vices, regularly offer their clients "lifts." These are usually 10-second extrapolations from 60-second spots which were initially scored in antici-

pation of a short section being lifted from the full-length commercial.

These lifts provide the sponsor with the option of buying 10-second time segments and having available spots of the appropriate length — with minimal additional production cost.

ARTISTS AND FEES

The creative and performing artists engaged to produce commercials range in talent from minimal to brilliant. A correlation is often found between the level of competence and the size of the market. Since job opportunities are extensive even at the local level, producers and musi-

cians of modest gifts often get hired — because they are aggressive or because they work cheap, perhaps both. Too many small market spots are of low quality, either for the reasons just cited, or because the local production personnel lack experience or sensitivity; they tolerate weak material and unprofessional performances because they may not know better. Still, most top people making it in major markets learned their

craft in small ones, then developed the competence demanded in major markets.

In fairness to the individuals producing spots in small markets, it

should be emphasized that they are usually compelled to try to turn out

good work on shoestring budgets. Many a sponsor is willing to hire up to three artists, provided "You can make it sound like John Williams."

Sponsors and agencies are accustomed to paying "creative fees" for

music and texts. While some composers charge no creative fee — only for their arranging, copying and conducting, it is not uncommon for a spot composer to get paid a creative fee (for one piece of material) of

$500 or more for a local campaign. At the national level, creative fees vary widely, from $2,000 to perhaps $15,000 for a "buy-out."

Composers generally work for ad agencies on a buy-out basis: as employees performing "work for hire," they give up all copyrights in their

work. For a while, increasing numbers of agencies had contracts with their creative people which provided that the composer retained copy- right in the music and assigned rights for use into perpetuity to the

agency or the sponsor for advertising purposes only. This kind of con-

tract left the composer free to seek exploitation of the material in other

MUSIC IN ADVERTISING 385

media, particularly the pop song field. But agencies have begun to real-

ize that there is gold in publishing and are now trying to procure the publishing rights to music. The composer with enough clout doesn't let them do that. The lesser-known composer has no choice.

Returning for a moment to budgets for small markets, advertisers will often seek package deals. A composer-arranger scratches around for an assignment and discovers a prospective client who has, say, $1 ,800 for a musical spot. The musician agrees to take on the complete package for that fee, and composes the music, perhaps the text too, scores the arrangement, extracts the parts, rents the studio, engages the perform-

ers — and delivers the master tape to the client. If this packager could get away with using just one singer and a three-piece band, or better yet, one MIDI player who sounds like a three-piece band, there might be a few hundred dollars left for the two-weeks' labor. Or if the job was bud- geted carelessly, and ran overtime in the studio, the packager could end

up in the hole. In national campaigns, package deals are less common. But here, instead of one individual taking on the whole project, an ad

agency will engage a music production house for a flat fee. This kind of

company often figures its budgets on two levels: "above the line" costs (creative fees, "talent") and "below the line" costs (out-of-pocket expens-

es such as studio rentals, scale payments to union artists, music copying, tape, etc.).

Many music production firms are owned, or partly owned, by the com- poser. Such houses will offer a client, for one lump fee, composition, text,

arranging, orchestration and musical direction. Such fees for national

accounts range from $5,000 to $1 5,000 or more for one job. A producer or agency may locate a naturally gifted songwriter to do

the creative work for a campaign. Some of these individuals may have attracted the attention of producers through their songwriting success on

pop records. Many are musical illiterates and are helpless without the aid of competent arrangers. They will often sing their tunes into a tape recorder, then hire an arranger to pull the music off the tape and render it

in correct music notation. The leadsheet thus produced is then turned over to the arranger-orchestrator-director who is hired to score the music for the recording session.

ARTISTS' CONTRACTS

Singers, instrumentalists, arrangers and copyists employed on national

spots are members of their respective unions. The total dollars earned by AFM members working in the spot field exceeds what union musi- cians earn scoring TV movies and theatrical motion pictures. No other field of employment is more lucrative, hour for hour, for musicians than

working on commercials. The national contract covering AFM members in this field embraces radio and TV commercials, as well as commercials on in-store videos and in movie theaters. The contract also governs the employment of AFM instrumentalists, musical directors, arrangers, orchestrators, music librarians and copyists. As with certain other AFM contracts, "leaders" (musical directors, conductors) receive double scale.

Instrument doublers make 30 percent extra for the first double, then 15

386 CHAPTER TWENTY-FOUR

percent for additional doubles. If the orchestra contractor is an individual

other than the leader, the pay is double scale. MIDI instrumentation is

treated, not as instrument doubling, but as overdubbing: the musician

charges scale for each of the different parts that are played.

The employer (who may be the advertising agency or the spot pro- ducer) must also pay into the AFM/EPW (Employers Pension and Welfare Fund). Some locals add surcharges for the benefit of their mem- bers working in the spot field. For example, if the producer records his

spots in Los Angeles, Local 47 tacks on a surcharge for the employer to

pay into Local 47's own Health and Welfare (H&W) Fund. Nearly all instrumentalists and copyists work for scale, as do many

orchestrators and leaders. However, with major national accounts, most

orchestrator-leaders either charge well over union scale or earn extra

money by charging a creative fee. The AFM contract stipulates that the employer is responsible for

additional payments to the musicians for uses of the music follow- ing the initial 13-week period covered by the basic fees. For such

extended use (starting with the 14th week) or for each spot dubbed into

a new commercial or used in a new medium, each AFM member who was employed on the original project receives a good-sized additional payment. National advertising agencies and their sponsors are accus-

tomed to paying these extended use (or "new use") payments, and musicians lucky enough to land this kind of work make very big money over the years. But at the local and regional levels, circumvention of

extended use and reuse payments is common. Many local spots are straight buy-outs by the sponsor or the ad agency for all services cre-

ative and artistic. While this is convenient for all concerned, it yields far

less income in the long run for the musicians. Many AFM locals simply fail to police and enforce their contracts; many just look the other way when their members record local spots.

Concerning singers on commercials, AFTRA claims jurisdiction. The firmness of AFTRA control over spot singers relates directly to the size of the intended market: agencies and advertisers generally adhere care-

fully to union scales for national campaigns and most regional campaigns. AFTRA control over singers and singing actors in small mar- kets is spotty at best, frequently nonexistent.

As with standard recordings prepared for commercial release to the

public, AFTRA has set, in the spot business, special scales for group singers (two or more), group singers who "step out" from groups, solo- ists, and leader-contractors.

As with the AFM, one of the most critical tasks AFTRA has is obtain- ing reuse payments for its members who have recorded spots that stay on the air beyond the initial 13-week contract period. Responsibility

for payment of reuse fees may rest with different people, depending on the terms of the initial contract for the union artists — and sometimes upon who can be located to meet their obligations to the union. As with the AFM, AFTRA artists may well receive more income via re- use payments than they do from the initial recording sessions. When singers receive conflicting calls for jobs, they will opt for the work that

appears most likely to stay on the air beyond 13 weeks. Top singers in

MUSIC IN ADVERTISING 387

the major production centers can earn huge incomes through extended

use payments, sometimes aggregating over $200,000 a year just at AFTRA scale.

The singers who get hired to record national spots are usually drawn from that select pool of vocal artists described earlier. In addition to

being able to sing almost any style and sight-read like demons, spot singers must excel at clear diction. The sponsor's first concern is not bel canto, but clarity of language. The composer may have scored music comparable to the Hallelujah Chorus, but the account executive may demand it be discarded in favor of a unison jingle if the listener can't make out the words.

Much of the foregoing account describes spot production at the fully professional level — legitimate, unionized and above board. But the fact is that a high percentage of local market spots are produced without

regard for AFTRA, AFM and SAG. The composer-director may be an AFM member, the players may also be union musicians, the singers may be AFTRA members. But the whole project may be produced and broad- cast without ever satisfying union requirements for scales, particularly,

reuse payments. On the other hand, the composer-director may pay the equivalent of union wages to the musicians, but sign no AFM or AFTRA contracts, thus avoiding the responsibility of paying reuse fees.

PRODUCTION SEQUENCE

The process of producing a broadcast commercial is very involved. Here is how the events might fall in place for a network television commercial where the budget for music is large. We will assume the advertising agency retains a production company to assist.

1- The sponsor instructs its advertising agency to come up with a TV campaign for a new soap.

2- The account executive notifies the boss that the account is ready to spring for a sizable amount of money. The agency head notifies the agency's creative director. These two call a staff meeting to discuss the objectives of the campaign and search for ideas for a hook on which the

campaign might be hung.

3- The agency decides upon a concept and calls a production meet- ing. Agency staff attending: creative director (chairperson), writers, TV producer, art director, and the account executive.

4- The creative department creates a storyboard for the sponsor's (client's) approval. A TV storyboard is a visual representation, measur- ing perhaps 24" x 36", which shows rough drawings of the sequence of events scheduled to occur on the screen. That is the visual compo- nent. The aural components are indicated (dialogue, music) below each picture on the storyboard as captions, enabling the viewer to per- ceive an approximation of how the eyes and ears are engaged in the 30-second spot.

388 CHAPTER TWENTY-FOUR

5- The sponsor likes the storyboard and accepts the advertising con- cept for the campaign.

6- The agency develops a detailed budget to cover cost of produc- tion. The sponsor says it's too high. The agency says, "But Mr. Doe, wait till you hear the music!" Mr. Doe says, "So let me hear it."

7- The agency's creative director or house producer contacts two or three "music houses" (production companies) and/or recognized com- mercial music composers and invites them to submit appropriate music. Composers and houses will compose soap-selling music — good, clean sounds — on a demo tape, on spec. This means they may even pay for out-of-pocket expenses of recording the demo. Some ad agencies will pay for costs of demo production. The agency creative group selects its favorite from the spec demos submitted.

8- The sponsor hears the proposed music, complaining that "The music sounds too thin," but likes the singer and the tune. After receiving agency assurances that the final production will be fully satisfying, the sponsor approves the music and the production budget.

9- The agency contacts a casting agent or casting director who may issue what is known in the trade as a "cattle call" for actors and actress- es, according to the specifications that the agency supplies. Or the agent may simply select from casting books half a dozen 8" x 1 0" glossies of actors and actresses who might look right for the cast. Calls will be made to the agents representing the artists, asking them to send videotapes of their client's work or inviting the prospects to a casting session, which some members of the agency's creative department may attend. If a casting session is held, it is videotaped. The agency creative depart- ment, some other agency personnel and sometimes even the sponsor will either review the individual casting tapes provided by the artists'

agents or watch the recorded casting session and make their talent selections.

10- The producer negotiates with the agents for acceptable fees, then gets the sponsor's approval of casting.

11- Meanwhile, back at the agency the creative department has rejected five versions of the script. The creative director gives final approval to the script recommended by his staff.

12- The producer notifies the composer that the sponsor and agency people liked track three on the demo best, and they settle on a creative fee for music. The composer accepts the fee, and asks to retain all pub- lishing rights exclusive of the advertiser's uses of the music. The agency, well aware of the value of holding on to music publishing rights, balks on this point. The composer, who has an established track record for inno- vative work, remains adamant. The agency eventually agrees to the composer's proviso.

MUSIC IN ADVERTISING 389

13- The producer tells the composer that there is a production bud- get for a 20-piece orchestra and five singers and can they record tomorrow morning? The composer-musical director offers an opinion, unsolicited, on the mental capacity of the producer, offering two alterna-

tives. One, they can record not before the day after tomorrow. Or, two,

makes a suggestion on what the agency can do with its commercial. The producer opts for the former.

14- The composer reserves Wondersound Studios for day-after- tomorrow, and is guaranteed a favorite engineer who can handle 24 faders on the Studio A console.

15- The musical director calls up an AFM contractor and AFTRA con- tractor to engage the performers, telling the AFM contractor that the two percussionists on the date will be expected to bring every instrument they

can think of short of cannon traditionally fired in the 1812 Overture. Agreed.

16- Six hours before the recording date, the composer calls the music preparation service to pick up the score and deliver it, all parts copied, to Wondersound, Studio A for the orchestral recording session at 9 a.m., and the vocal recording session at 10:00 a.m. in Studio B. Any questions? Just one: does the composer understand that AFM copying scale is double after midnight? Understood, and the music preparation service will bill the producer accordingly. But right now, more urgent is the need to call a messenger service to pick up the score and deliver it to the copyists.

17- Our musical director-composer retires for four hours sleep.

18- The morning of the date, the orchestra starts reading through the chart. The only delay is to correct some wrong notes, which the compos- er-arranger insists are the fault of the careless copyists. After the

engineer gets an acceptable balance of the instruments, the musicians

record Take One. Takes continue for the one hour budgeted.

19- As the orchestra is finishing the final takes, the singers arrive. The AFTRA contractor-vocal director rehearses the singers. For the rest of the hour budgeted, the artists record takes with the pre-recorded

orchestral music, then leave for their next session down the street.

20- The musical director, producer and account executive select the best take and instruct Wondersound to deliver three 15 i.p.s. copies to the agency by 5 p.m. that same day.

21- The producer meanwhile has filmed all the visuals, processed the opticals, created a final edit, then proceeded to lip-sync the actors

with the musical track. Following adjustments in the answer print, the complete commercial is ready for duplication and distribution to broad- casters.

390 CHAPTER TWENTY-FOUR

22- The agency's media buyer has secured air time for broadcast of the campaign on all the major commercial networks. For this big-budget campaign, the agency buys most of its exposure in prime time.

23- The agency files work reports with all the unions representing the singers and musicians. After volunteering the view that the artists are highly overpaid, the agency, working through a talent payroll ser- vice familiar with all the current rates, issues the payroll checks for distribution.

24- The campaign was a success and the agency picks it up for an additional 13 weeks national exposure. Knowing that this now entitles the singers and musicians to reuse payments to cover this extension, the agency contacts the talent payment service and sends them the informa- tion about the media buy (where and when the spots will play, and for how long). The talent payment service issues the checks.

POSTSCRIPT — In rare instances, the wise and/or powerful composer who has been able to retain publishing rights to the music (limiting the sponsor's music rights to use in advertising) finds a lyricist to set new words to the music, then submits it to a putDlisher. A publisher accepts the song, in the hope that it can get a free ride based on the current pop- ularity of the music generated by the broadcast campaign. Everyone is happy, even the sponsor, who now enjoys additional identity through the popularity of the pop song version of the theme music.

University of Miami School of Music students in a jingle recording session.

FILM RING

Many musicians consider film scoring as their ultimate professional goal. This may be because of the so-called "glamour" traditionally associated with Hollywood. The term "film" includes not just movies, but TV shows on film or tape. Business ("industrials"), educational and documentary films may also require "film" scoring. Under the term "scoring" we include composition, arranging, orchestration, copying and recording. Profes- sionals use the expression "film scoring" in reference to the preparation and recording of dramatic music intended to synchronize with action on the screen.

It is a cliche to say that, when an underscoring job is well done, it should go unnoticed by the audience. This is often true. But under some circumstances, that assertion makes as much sense as suggesting that the theatre audience enjoying a performance of the Swan Lake ballet should take no notice of Tchaikovsky's music. As a matter of fact, film composers have saved many a weak scene. The artistic contributions of our best movie composers often surpass those observed on the screen. As for public acceptance, it is not unusual for a movie sound track album to turn a bigger profit than the film itself. And some of the music scored for TV dramas will probably be remembered longer than the programs.

392 CHAPTER TWENTY-FIVE

CANNED TRACKS

Before considering film and TV film underscoring, let's look at how music is used in educational films, documentaries, and movies produced for business and industry. Thousands of these films are turned out every year, and practically all of them use only canned music tracks. The reason is simple: low cost. A producer can underscore complete productions with "cues" (or "bridges") lifted from a canned music library (professionals use the term "cue" to describe the musical fragments scored to accompany dramatic action. They range in length from a few seconds to several min- utes). Use of canned cues often creates an inartistic, even clumsy result, for the music, even when carefully selected, may not really match the pic- ture. Most canned tracks sound like what they are — stuck on, cheap.

Library services (you can buy the whole catalog or pay for individual "needle drops") classify cues in predictable ways, e.g., "chase," "ro- mance," "comedy," etc. Even "neutral" bridges are available. Length of these fragments is rarely critical, for the director can instruct the audio mixer to fade out the music whenever the director wishes. Library-type material is often prepared by composers with MIDI studios, who produce music for shows and commercials, relaxing the need for importing most such music from Europe.

SCORING MOVIES, TV DRAMA

Theatrical movies and TV films rarely use canned tracks today, and the production of original, custom music to underscore these media provides high-paying jobs for hundreds of skilled musicians. The first music heard by the public on a sound movie sound track occurred in 1927 when vaudevillian Al Jolson broke into song in the middle of a film titled The Jazz Singer. The public loved it, and very quickly the producers began adding music and audible dialogue to their movies. At first, they simply borrowed music from other sources — Broadway, Beethoven, Liszt, Tin Pan Alley. Producers also had classical composers score original music. The list includes nearly all prestigious composers of this century with the exception of Stravinsky and Schoenberg: Erik Satie, Darius Milhaud, Arthur Honegger, Paul Hindemith, Dmitri Shostakovich, Serge Prokofiev, Mario Castelnuovo-Tedesco, Virgil Thomson, Ralph Vaughan Williams, Ernst Toch, Aaron Copland and Leonard Bernstein. This distinguished group produced a Pulitzer Prize (for Virgil Thomson's score for Louisiana Story) and an Academy Award Oscar (to Aaron Copland for his score to r/ie Heiress). This particular group of composers has worked at film scor- ing only sporadically; most movies have been scored by composers who work in the field full-time.

The period of the 1930s and 1940s is known to film music buffs as "The Golden Age." All the major studios in Hollywood — MGM, 20th Cen- tury-Fox, Paramount, Columbia, Universal, Disney, Warner Bros, and RKO — had composers on salary full-time. Each major studio had a staff orchestra of almost symphonic proportions. Composers and producers in this Golden Age required these huge ensembles because the preferred

FILM SCORING 393

musical style was neo-romantic. Producers would instruct their com- posers that they wanted music to sound like Tchaikovsl<y, Rachmaninov or Debussy. Leaders in the neo-romantic style were Alfred Newman, Franz Waxman, Bronislau Kaper and Miklos Rozsa (although the latter broke nineteenth century bonds in such period pictures as Ben Hur). These scores sound European because most of these composers were either from Europe or trained only in European styles.

CHANGING STYLES

Tastes began to change after World War II. In the 1950s, a number of first-rate film composers began to abandon the musical cliches to experi- ment with more contemporary American sounds. The leaders in this break from European romanticism included Hugo Friedhofer, David Raksin, Jerome Morros and, later, Bernard Herrmann, Alex North and Henry Mancini.

Composers of both the European and American traditions were influ- enced, until the 1960s, by techniques exploited by composers scoring music for movie cartoons, e.g., Popeye the Sailor, Mortimer (later changed to Mickey) Mouse, and Disney's Silly Symphonies. Producers wanted their composers to use a technique known as "catching action": if Mickey Mouse slipped on a banana peel, the composer was expected to underscore the action with a trombone glissando. When the Good Guy discovered The Bad Guy lurking in the shadows, the orchestra was expected to play what is still known in the business as a "stinger," a sforzando chord. Remnants of the old Mickey Mouse style of scoring remain here and there, but a film composer using it today can sound silly, because audiences have long since memorized these cliches.

Many of the early comedies, usually two-reelers, underscored the entire movie with a popular song droning in the background, even under dialogue. Of a higher artistic order was the practice in the 1930s of hiring Broadway and Tin Pan Alley composers to write songs for feature films. Some of these early "Hollywood musicals" spawned a fair share of the standards we know today.

The discovery by film producers of the value of a good popular song occurred in 1949, when the main theme from The Third Man film, featur- ing a zither, hit the pop record charts. The message was not lost on other film producers who searched for "film composers" who could turn out hits which could be incorporated into their feature films. Unfortunately, many of these songs had nothing to do with the film itself. Nevertheless, some producers continue to include seemingly pointless songs in their films in the hope that, if the movie bombs at the box office, they might recover some of their production losses through exploitation of the score on a pop sound track recording. They are sometimes right.

Composers of the old school were horrified at this pop invasion and complained that the art of film scoring was getting lost. To some extent, they were correct. To compound this gross affront, the older film com- posers began to lose a lot of scoring work to the pop songwriters.

With the pop invasion, movie "composers" began to be classified in

394 CHAPTER TWENTY-FIVE

one of two categories — those fully qualified to underscore drama on film, and the pop songwriters, most of whom had not even heard of a click track. But by the 1960s, a third type of film composer emerged — com- prised of a handful of artists who could not only underscore film drama appropriately, but also invent attractive melodies that could be pulled from

a sound track and popularized on hit records and sheet music. This kind of versatility was new to the movies, but hardly unknown in traditional music — Mozart, Verdi, Bizet and many other theatre music composers knew how to underscore drama, then follow with a popular-type song as the occasion might demand.

Composers who have enjoyed the greatest popular acceptance of their underscoring and melodic inventions since around 1960 include Maurice Jarre (for "Lara's Theme" from Dr. Zhivago), Francis Lai (theme from Love Story), John Barry (for the pop hit from Born Free), Bill Conti (theme from Rocky and numerous TV themes) and Giorgio Moroder (co-writer of "Take My Breath Away" from Top Gun). Two other film composers, Henry Mancini ("Moon River" from Break-

fast at Tiffany's) and particularly Michel Legrand (e.g., theme from Summer of '42, "Windmills of My Mind", etc.) have managed to under- score their pictures with beautiful melodies when the occasion calls for them, yet hold the respect of musicians of sophistication.

One of the most significant stylistic turns in the evolution of film scoring began in the 1950s with the introduction of jazz elements. Probably the first feature film score to show clear signs of jazz influence was Alex North's music for A Streetcar Named Desire in 1951 . One of the earliest extended uses of jazz in a feature-length theatrical film occurred in 1955 with Elmer Bernstein's Ttie Man Witfi Tfie Golden Arm. Bernstein used ingenious combinations of symphonic and jazz-like elements to score this film concerned with drug addiction.

Further impetus to the use of jazz underscoring came from television. In 1 959, movie producer Blake Edwards hired film composer Henry Mancini to score his new TV whodunit, Peter Gunn. It was agreed that Mancini would use a "big band" instrumentation playing driving jazz. It was particu- larly appropriate for this series, because the big city chase scenes seemed to call for the frenetic energy of jazz. It worked so well it became one of the great classics of TV scoring, and TV and movie producers began an earnest search for jazz composers. Another TV series about that time. Route 66, with a superb jazz-oriented score by Nelson Riddle, gave further

impetus to the increasing popularity of jazz elements for underscoring con-

temporary drama. Only a handful of the first generation movie composers

could (or would) make the transition from European romanticism to Afro- American styles. So a new generation of film composers emerged who could do both dramatic underscoring and contemporary jazz. Some came off the road from name bands and found new homes (big ones) in Holly- wood. Lalo Schifrin, European-trained but very creative in jazz styles,

could not only handle dramatic underscoring, but occasionally score an

entire film using improvised jazz (7/76 World of Insects). For this film he

brought to the scoring stage just some sketches, tone clusters and 1 2-

tone rows, then instructed his small chamber orchestra to improvise freely on these fragments.

FILM SCORING 395

Gunther Schuller suggested in the 1950s that we might think of the classical tradition as one stream, jazz a second stream — and when the two flowed together, forming a confluence, we could call the result "Third Stream" music. Whatever its aesthetic validity, the best film composers today borrow naturally, without inhibition, from the whole world of music — western, eastern, Afro-American — and it seems to come out "American."

Most of the best of the "second generation" of film composers (Henry Mancini, Nelson Riddle, Lalo Schifrin, Earle Hagen, Michel Legrand) con- tinued to score movies and television. But in the late 1970s, a "third generation" of movie music writers emerged. This group includes such outstanding creative talents as Dave Grusin, John Williams, Jerry Gold- smith, Patrick Williams and Quincy Jones. Each of these composers has had extensive musical training, acquired through college studies or with private teachers. John Williams' score for "Star Wars" became extremely popular in the film and a hit on records. The "Close Encounters of the Third Kind" and the "Raiders of the Lost Ark" series, as well as the other "Star Wars" and theme from "Jaws," sold records in great numbers, too.

Over the past decade or so, the practice of including potential hit songs in sound tracks evolved to the point where "song scores" are now quite prominent. Many of these scores' sound track albums have been gigantic hits, netting tremendous profits for the films' producers. Some song scores have actually worked rather well in a dramatic sense. The music for Dirty Dancing — which sold more than 3 million sound track albums — is one example of the effectiveness of this approach when the purpose of including a song (or songs) is to serve the dramatic needs of the picture.

The contemporary school of film composition employs the same stylis- tic approach for feature films as for movies produced for television. Most of the composers work in both media, but they generally prefer theatrical film scoring because they are allowed more time to write and it pays much better. However, one well known composer favors television scor- ing because the tight schedule allows no room for "second guessing" by the shows' producers and, the medium provides an excellent living. The average fee for scoring a one-hour TV drama is about one-fifth to one- tenth the fee for a major motion picture score, although ASCAP and BMI royalties help to narrow the gap somewhat.

The word which best describes film music after 1980 is "eclectic." Music written for films during the 1980s covered the entire spectrum of music

styles. While symphonic and jazz scores were still very much in evidence, it was not uncommon to hear rock, Latin, pop, country and New Age scores. The stars of film scoring in the 1980s included Bill Conti, James Horner, Bruce Broughton, Alan Silvestri, Giorgio Moroder, and Mark Isham, among others.

These amazingly versatile composers can score a period movie or a contemporary urban drama, creating music appropriate to the dramatic purpose. Some, such as Alan Silvestri and Maurice Jarre, seem to be equally comfortable writing full symphonic scores or totally synthesized scores. Furthermore, most film composers today often include an exten- sive arsenal of electronic (MIDI) instruments as a significant section of the big studio orchestra. Jerry Goldsmith was a pioneer in this approach

396 CHAPTER TWENTY-FIVE

of combining electronic instruments with the traditional symphonic orchestra long before the MIDI standard was adopted in 1983. The com- bination of acoustic instruments and electronic equipment can create a powerful effect in films, producing exciting sounds that may even save a borderline film.

As production costs continue to rise, producers are more frequently asking their composers to score for smaller orchestras. One of the devices resulting, in part, from budget pressure, is the increasing use of

sound synthesizers. Other electronically-generated music machines are being used more and more to substitute for entire orchestra sections, par- ticularly strings.

The use of synthesizers to replace acoustic instruments in film scoring has caused much heated controversy among musicians. Acoustic instru- mentalists feel that they — and a sizable chunk of their incomes — are being displaced by machinery, while synthesizer players argue that it

takes the same amount of artistic sensitivity to operate the equipment for the best musical effects, and that it is time for musicians to become as "technology literate" as the rest of society.

While this chapter is directed to the scoring of feature films and prime- time dramatic TV, it should be pointed out that daytime dramas (soap operas) have been placing increasing emphasis on original music along with their customary libraries of pre-recorded themes and melodic frag- ments. The amount of music varies from soap to soap — one show might record new music three times a week, while another, once every two to three years. Styles incorporate the same wide range as features and nighttime TV, created by composers who are every bit as inventive as their better known, higher paid counterparts; one multiple Emmy Award-winner, for instance, re-orchestrated a Beethoven string quartet to underscore a chase scene! A soap's music director is often required to become, literally, a one-person band — composing, conducting and playing the music, perhaps joined by a few more instrumentalists. The music director usually has one or two assistants, along with a music engineer and may, occasionally, assign orchestration to non-staff per- sonnel. While there are, therefore, not a great many job opportunities to be found in the daytime genre, there are still more than existed even a few years ago.

THE CRAFT

MUSIC APPLICATIONS

Those who underscore films use many of the techniques employed for centuries by opera composers. But the unique time-lapse illusions in cin-

ema art challenge the creative powers of film composers well beyond the more familiar techniques of scohng music for the theatre. Here are the ways film composers use music:

1 . To imply a period in history or a geographic location for a scene

FILM SCORING 397

2. To suggest a dramatic mood or atmosphere. These tech- niques can intensify a mood or suggest a relaxation of tension

3. To "punch up" scenes by synchronization of action and music

4. To provide dramatic unity, e.g., the use of leit motif (identi-

fying musical fragment); this device has been used in the movies since the 1930s

5. To provide an element of comedy, ranging from satire to slapstick

SPOTTING THE FILM

Before the composer starts scoring, a private screening is arranged. The first look the composer has of the movie is usually in the company of the director, the film editor, and often the music editor. The producer may also attend to offer opinions. (In TV, the composer usually meets with the pro-

ducer rather than the director. Most TV directors have little to do with the music or any other phases of post-production.) The director and composer watch the film roll by and discuss where underscoring might be appropri-

ate. Just as important, they also discuss where music should not be used. The music editor listens to this conversation and makes notes and com- ments on where the other two professionals have decided, at least tentatively, the film should be underscored. The producer has hired this particular composer to score the picture because of well-known qualifica-

tions and a track record. A climate of confidence already exists, and composers rarely encounter strong disagreement (though it does happen)

on how the movie should be scored. The composer on a major film will usually want to view the picture several times before scoring starts. Tradi-

tionally, many established composers had access to a Moviola, which is a cinema projector that can be started and stopped, and reversed, frame by frame if necessary, so that the composer could study particular scenes in

detail or in slow motion. However, composers today use a video cassette

recorder to view or study the film. The videotape copy of the film normally has a SMPTE time code and a feet and frames reference for film footage conversion (which includes four numbers: hour-minute-second-frame)

burned into the picture, or the tape is "striped" with SMPTE code so that the code numbers can be read on a synchronizer/SMPTE code reader. This time code provides precise reference points to the composer for criti-

cal timings.

CUE SHEETS

Like the composer, the music editor has traditionally worked with a Movio-

la. However, most music editors now use video/SMPTE technology to gather the timing information needed to write cue sheets for each reel of

398 CHAPTER TWENTY-FIVE

film. Most cue sheets contain the name of each scene calling for music, net film footage, and timings to one-tenth (or even one-hundredth) of a second. Another column on the cue sheet will provide space for indication

of click tracks. The click track enables the composer to sync music to film with mathematical precision. Theatrical film moves through the projector at a rate of 24 frames per second, or 1440 frames per minute. The editor or composer divides the metronome tempo into 1440; the result is known as a "frame-click tempo." For example, if the tempo is M.M. 144, 1440 divided by 144 = 10. This results in a need for the cutter to prepare a 10-

frame click track. In the past this was achieved by punching holes in a length of film which corresponded to the length of the cue. These punch- es caused an audible click when they moved over the audio head of the projector. Today, click tracks are normally generated by a digital metronome or a computer. The sound of the clicks is conveyed to the conductor and key musicians in the orchestra via head sets.

Computer-assisted Synchronization — A number of computer- assisted synchronization methods are now available, as well as service companies that will aid composers in laying out whole movie scores with appropriate clicks, meters, bars and tempos. With digital metronomes and computers, systems can even determine clicks for rubato (speeding

up/slowing down) passages. This is called a "variable click track," and it

can identify those split seconds in the score when the music must "catch" the action. One of these music editing firms, The Music Design Group, uses a system that transfers the film to videotape, using a synchroniza-

tion scheme which transfers film feet and frames to the standard SMPTE time code. The picture is electronically synchronized with multitrack recorders, thus eliminating the standard sprocketed recorders othenwise

used in recording to film. Two of the most widely used programs for film synchronization and

music editing functions are the AURICLE (IBM) and CUE (Macintosh) pro- grams. These are very powerful computer applications which make short work of tasks which were in the past extremely tedious and time-consum-

ing. Computer-assisted synchronization systems can be used in each

stage of the scoring process — setting up cue sheets, composing, "scor- ing" (sound recording) and editing.

Whether a film composer-conductor uses the old Moviola, optical click-

track system or computer-assisted methods, it should be pointed out that

some distinguished composers, John Williams among them, rarely use click tracks at all, preferring to conduct to film without elaborate timing

devices. Often they use a system of "streamers and punches" as timing

guideposts. The "streamer" is a straight line which takes two seconds to traverse the screen from left to right, while a "punch" is the flash of light

produced by punching a hole in the film every three frames. Such com- poser-conductors leave precise synchronizations to the ingenuity of their

music cutters. Music editing can make or break a film's score. The editor often must

make copies of cues (to use pieces of them again in the film), and cut down existing cues when the picture is re-cut after it has been scored. This happens frequently.

FILM SCORING 399

Finally, it must be noted that many low-budget films provide no budget at all for music cutters and expect composers to deliver a fully syn-

chronous score, whatever system is used for timing music to picture.

Composers just breaking in to the profession often must function as the

music editor on their projects.

COMPOSITION

The standard contract for a full-length feature film provides that the com-

poser shall write the music and get it on tape in 10 weeks. In actual prac-

tice, the producer is more likely to give the composer three to four weeks

to complete the job. Some composers work under six-week deadlines, which may or may not include recording. In Europe, the composer has tra- ditionally been expected to present a completed score to the copyists. In

the United States, film composers normally compose orchestral sketches, perhaps three to eight lines per system (system being a way of noting measures of music on the written score), then turn over the sketch, with

indications for instrumentation, to an orchestrator to render the full score.

This practice developed because producers were always in a hurry, and

still are. They have been willing to pay the extra costs of dividing the writ-

ing of movie scores between two persons. Bernard Herrmann, often

named as one of Hollywood's finest film composers {Citizen Kane. Fahrentieit 451), believed the farming out of orchestration was an abomi- nation and always insisted on doing his own.

RECORDING TO FILM

Unlike the tracking techniques and split sessions used to record commer-

cial records, feature films are commonly recorded all at once, "live," with

the full orchestra present. Most feature films are recorded on movie "scor-

ing stages." These facilities are huge, upholstered barns, cluttered with a

big projection screen, discarded equipment, dusty chairs and an AFM contractor leering at a watch. Besides a half-acre of musicians, sound

stages are attended during scoring sessions by audio technicians, a

music librarian, the music editor, assistant directors, the composer's

agent, the producer's girlfriend, and the head copyist who sometimes has the appearance of being on the threshold of nervous collapse. But failure

on the film scoring stage is rare. Occasionally, a film director will throw

out a complete score, fire the composer and engage another one to redo

the job. More likely, this high-tension environment proceeds with efficien-

cy — because the stage is inhabited by pros. The only delays, as a rule, in scoring movies are similar to the ones afflicting most other recording

sessions — clams in the orchestra parts or equipment malfunction.

THE FINAL MIX

Following the music scoring sessions, which last for several days on

major films, the music tapes are combined with dialogue and sound

effects in "dubbing" sessions. This final phase of sound synchronization.

400 CHAPTER TWENTY-FIVE

called "re-recording," is mostly concerned with setting relative sound lev- els, making choices of playing, not playing or recutting music and sound. These dubbing sessions are attended by the composer, music cutter, sound effects person, and one to three recordists (mixing engineers). At very elaborate dubbing facilities, the remixing setup calls for up to seven

technicians at the huge console (and over $700 an hour rental fee). All film directors attend these sessions to make sure the sounds they

require are sufficiently prominent. Not infrequently, the composer ap- proaches despair when music gets lost befiind shouting dialogue or screaming sirens.

Underscoring TV drama is handled differently from films produced for theatrical exhibition. Many TV producers would use canned tracks exclu- sively if their contract with the AFM permitted it. Others would pay for a few hours of new recording for a series, then use and reuse the same few musical fragments throughout the run of the series. It has been the task of the music cutter over the years to take these various musical sources,

then lay them in as appropriately as possible in subsequent shows in a series, trying to make them fit, not only new timings, but different dramatic situations. Skillful cutters camouflaged these deceits very well sometimes.

But even lay listeners learned to recognize musical cues as a series pro-

gressed in its first run. These music patchwork jobs can become glaringly apparent when a viewer watches reruns of favorite shows.

HIRING PRACTICES

AFM CONTRACTS

If TV audiences tired of continuous reuse of music on a TV series, the practice was particularly obnoxious to the musicians who lost out on a lot of recording work. Some years ago, the AFM finally managed to negoti- ate a contract with TV producers that imposed significant limitations on the extent to which TV music could be reused. For example, a minimum number of initial recording hours was stipulated for creation of a music library of tracks for a particular series. A minimum-sized orchestra was agreed upon for dramatic underscoring. Tracks recorded for a particular

dramatic series could be used only for that series in that TV season. The series' opening theme (main title) had to be re-recorded each season. This contract increased, not only the employment opportunities for studio musicians, but affected artistic improvements in the application of music

to TV drama. The musicians' union does not set scales for composition, leaving that

issue to be negotiated between the composer and the producer. But the AFM does set minimums for all other persons engaged in music prepara- tion — arrangers, orchestrators, copyists, proofreaders and librarians. In the film field, scales are high. Union musicians earn premium rates for services performed after 8 p.m. and on holidays. Music preparation peo- ple earn the same fringe benefits as instrumentalists.

Musicians working in film receive additional income once a year from

the AFM Theatrical and Television Motion Picture Special Payments

FILM SCORING 401

Fund. This fund derives its income from producers and movie studios that sell exhibition rights to their movies to television networks.

PACKAGE DEALS

In the film scoring fields, producers require the services of composers, orchestrators, arrangers, music editors, music supervisors, copyists, librarians, instrumentalists and recordists. Until 1957, all of these services could be provided by the major film studios which retained these artists and technicians on staff, most of them full-time. But when the staff musi- cians were let go by the film studios in 1957, producers had to engage all their musicians on a free-lance basis. To make this situation manageable, producers would often negotiate "package deals" with independent con- tractors. This practice prevails today in the background music field and in the scoring of some theatrical films. Music packagers are not as widely used in television. Some composers of electronic scores agree to pack- age deals because they, in fact, function as the composer, orchestrator, copyist, instrumentalist and recordist.

Producers like package deals because the system transfers their financial risk to the independent contractor. The background music firm or movie producer usually budgets a set figure for music. That money must cover all music production costs — composition, orchestration, arranging, copying, proofreading, library services, conducting, instrumentalists,

instrument cartage, studio or sound stage rental, tape, mixing and editing. The producer will contract with a composer-director to assume all these responsibilities and expenses for a lump sum. A composer-director anxious to break into the field, or one who is

already established but needs the work, is often delighted to receive an offer of, say, $20,000 to score a picture — and pay all the other music costs. The score might be well-received, but unless the composer-pack- ager uses a very small orchestra or pays less than AFM scale, that person would have to be very efficient on the sound stage to come out well financially. Package deals for $20,000 for a picture look good until the bills come in. Some packagers learn how to budget their time and expenses and come out well on these deals. Many manage to pay full AFM scale and have enough left over for themselves to compensate for several gruelling weeks of composition and orchestration. Recognizing that some independent pictures are produced for a total cost that's less than the music budget for a blockbuster, the AFM has come up with a two-tier scale for motion picture work. Producers of music for low budget films are allowed to hire musicians at a significantly lower scale than that required for a high-budget film.

Well-established composers are less likely to accept package deals where they are expected to assume full responsibility for all music pro- duction costs. Big-name studio composers practically never do.

COMPOSERS-CONDUCTORS

In the field of underscoring movies and TV drama, there are many employ- ment opportunities for the fully qualified professional. But there are no openings for anybody but the expert, seasoned pro. While some feature

402 CHAPTER TWENTY-FIVE

films are still recorded in New York, most American-made movies are scored in Los Angeles. A handful of pros with firmly established track records land their picture jobs without the help of an agent; the producer

simply engages the composer directly. But the great majority of the com- posers are hired through film composers' agents. For many years, three or four such agents have controlled most of the best film and TV scoring. Three well-known TV/film composers — Dave Grusin, Patrick Williams and Tom Scott — say they get their picture assignments because of their reputations; their agents do not actually find them jobs but assist in draw- ing up contracts with producers and help keep their business affairs in order. Producers are accustomed to negotiating with composers' agents and place trust in their judgment.

As there are so few agents, the young composer often finds it extremely difficult to acquire the services of an established agent. Thus,

the composer must function as an agent and contact directors, produc- ers and anyone else who might be a potential employer. A composer has a good chance of securing an agent after achieving several scoring credits.

Patrick Williams has estimated that about 200 film composers are making it in Hollywood. Half of those may need to fill out their work- weeks with other kinds of creative work, particularly in the recording industry.

As pointed out earlier, top film composers sometimes get so busy they find it necessary to call in helpers to meet deadlines. These assistants include, not only arrangers and orchestrators, but composers. They are paid by the musician whose name goes on the screen credits. Purists are bothered by the ghost-writing phenomenon, but this is the route many have found to break into broadcasting and film scoring. Yet another way of cracking these high-paying media is to be an advanced student of a busy composer. Not infrequently, teachers farm out some of their time- pressure work to their best students who then later begin to locate scoring jobs in their own names.

Of interest to aspiring film composers is a fascinating and invaluable book by Robert Faulkner entitled Music on Demand: Composers and Careers in the Hollywood Film Industry (see bibliography). Faulkner exam-

ines in depth the career paths which have been taken by various Hollywood film composers. This should be required reading for anyone

interested in pursuing film composing as a career.

ARRANGERS-ORCHESTRATORS

As outlined above, the busiest studio composers find it necessary to farm out some or all of their orchestration. Under pressure of time, or possibly because the producer has provided funds to pay for orchestration in addi-

tion to composition, studio composers will entrust completion of their sketches to arrangers and orchestrators who understand how the com- poser wants the music to sound. All arrangers and orchestrators used in

these secondary capacities are selected by the composer, never by the

producer or director. The use of orchestrators is much more common in feature film work than television.

FILM SCORING 403

MUSIC SUPERVISORS

With the rise to prominence of song scores, many film producers now hire a music supervisor. In some situations this individual functions much like a record producer or an A&R executive with a record company. Some- times this person is responsible for putting together only the songs which are used in the sound track, while in other instances, the music supervi- sor is in charge of every facet of the score, including hiring a composer for dramatic scoring.

COPYISTS

Copying of vocal and orchestral parts for network television and theatrical films scored in this country is performed exclusively by AFM members for union scale. Copyists are engaged by the composer, sometimes by the orchestrator. In the film and TV fields, it has been traditional to schedule composition and scoring sessions within a time frame calculated to pro- duce in all concerned a maximum level of panic. Last-minute scoring sessions are the rule. Also standard in the business is the tendency for composers to begin their assignments several hours beyond the last pos- sible minute. Thus, the copyists consistently work under intolerable time pressures. Since many scores cannot be copied by an individual in the time available, it is common practice for head copyists to turn over some or all of the work to a music preparation service. When television shows or films are being recorded, the supervising

copyist is expected to attend the sessions to serve as music librarian and, more importantly, be available to correct errors in the extracted parts dur- ing the recording.

ORCHESTRA MUSICIANS

Instrumentalists hired to score theatrical or television films produced in the United States are members of the American Federation of Musi- cians. As in the field of background music library services, the number of movies produced in the United States that are scored and recorded by nonunion musicians has increased, due to MIDI studios and computer one-person bands. Except for low budget package deals where the com- poser serves as the AFM union steward, film musicians are engaged by the orchestra contractor. The contractor and the composer-conductor together prepare a first-call list of players, with a supplemental list of second- and third-choice players, should their favorite musicians not be available.

In New York and Los Angeles since the 1930s, the artists getting this high-paying work are selected from a relatively small pool of musicians. One Hollywood film music contractor draws from a pool of approximately 1 ,000 players, while another maintains an active list of 500. These musi- cians have earned reputations over the years for being able to play almost anything placed before them perfectly at sight, and they often make the music sound better than it is.

404 CHAPTER TWENTY-FIVE

Musicians who want to break into the studios are rarely accepted when they make a frontal attack on the inside pool of players. Those that have spent years earning their reputations resent newcomers bursting upon the scene without paying their dues. But when a new player earns credentials by first establishing a good reputation, not just with contrac- tors or conductors, but with the players themselves, there will be a much better chance of being recommended for recording sessions. A reputation-building medium for winds and percussion derives from

the various rehearsal bands widely popular in New York and Los Ange- les. The inside players are always alert to evaluate the newcomers. Another pipeline to the inside is through the teachers of unknown play- ers: f\/lusicians too busy to accept all the offers they receive may recommend their most advanced students for studio and symphony jobs.

String players, almost without exception, are current members or alumni of symphony orchestras. A high percentage of them are former concertmasters or first-desk players. Besides competence in standard orchestral playing, these string players understand jazz phrasing and the kind of "popular" style characteristic of what is sometimes called "the Hollywood Sound" — beautiful tone, romantically expressive, perfect intonation, entirely relaxed. As for double-bass, most studio players have, in addition to extensive traditional backgrounds, ability to play jazz, perhaps even rock, and often the electric bass. But when a really funky. Fender bass line is required, specialists in the rock or R&B fields are added.

Brass players making it in the studios originally came from theatre orchestras and symphonies. In the 1940-1960 period, many brass play- ers came off the road from name bands. In more recent years, some brass players have come from the nation's leading university concert bands. Some today come from top conservatories such as Juilliard, Eastman and Curtis. All brass players, whatever their backgrounds, are expected to handle not only "legit" music, but any other style from coun- try to rock. When brass players take their chairs in the studio or on the scoring stage, they already know among themselves who is expected to play lead, which chair, if any, is "the jazz chair," what horn player will play the lyrical solos. Even among this prestigious clique of superb artists, some players enjoy a special additional prestige. Most trumpet players are expected to play trumpets in Bb, C, or perhaps even the piccolo trumpet in D. Most double on fluegelhorn. Hornists and trombonists are sometimes called upon in big film scores to double on Wagner tuba, euphonium or tenor tuba, even contrabass trombone.

Studio woodwind players are an elite breed, most of whom have backgrounds in professional symphony orchestras. Some of the saxo- phone players are aging alumni of the big band era who have acquired, along the way, the additional skills of "legit" performance styles often called for in film scoring. Since the 1960s, increasing numbers of these players have been graduates of university concert bands and orches- tras.

It is generally known that woodwind and saxophone players are expect- ed to be competent doublers on clarinet and flute, perhaps even double

FILM SCORING 405

reeds. But this demand for doubling is less common in scoring feature films and TV movies, where the music directors prefer to engage special- ists on each instrument. Another reason woodwind doubling is less common in film scoring is that the union rates for this kind of versatility are very high; it is almost as cheap to hire extra players.

Many woodwind and brass players now double on MIDI controllers such as the EWI (Electric Wind Instrument) and the EVI (Electric Valve Instrument). Composers are asking for these instruments more and more because of their versatility and the seemingly infinite number of colors and effects which are possible. They are particularly popular in TV scoring. Nyle Steiner, the inventor of the EWI and the EVI, is one of the busiest studio players in Los Angeles.

Studio percussionists usually come from wide backgrounds which would include extensive study and experience in styles ranging from jazz and Latin to symphonic and rock. When a particularly authentic rock or "black" sound is wanted, sometimes specialists are brought in. The use of electronic drum sets and MIDI percussion has become widespread and most working commercial drum set players now own an electronic setup. If the timpani work is extensive, many contractors will engage a player with solid experience in symphony work. While nearly all studio percussionists play mallet instruments, contractors will sometimes try to hire special artists to handle elaborate solos.

Keyboard players are expected to be able to play traditional and current styles, sight read and improvise. Some pianists are hired for their special ability to play "comp" piano; others are known as jazz soloists or "legiti- mate" players. The use of MIDI Keyboard Controllers (synthesizers) has become so prevalent that it is now rare to find a working studio keyboard player who does not own an extensive (and expensive) collection of syn- thesizers and related gear.

MUSIC EDITORS

Film music editors, or music cutters, have acquired their skills on the job. Some started out as film editors who then turned to music cutting. Others may have been composers or orchestrators in the early days of filmmak- ing, then switched to music editing, out of frustration or choice. The best music cutters are amazingly versatile, possessing great musical sensitivi- ty, a keen ear for balance, an awareness of how music can make or break a scene, all combined with a knowledge of the special technology used in synchronizing music tracks to film or tape. Since no schools exist for the training of music cutters, they are products of the film industry itself. Like so many artists and artisans in film, music cutters learned their craft, their art, as apprentices to older masters.

SOUND MIXERS

During the period when film scores were precisely synchronized with action, all recording was done on scoring stages on movie studio lots.

406 CHAPTER TWENTY-FIVE

These facilities are set up, not only to handle huge orchestras, but large

movie screens on which the film is projected during synchronization ses-

sions. This practice prevails today. But many films, particularly those where little or no music is precisely synchronized with action on the

screen, are recorded in conventional recording studios, usually without

movie screens. In this kind of situation, precise timings and other syn-

chronizations are made by the music editor whose work can be done at a later time in a small editing studio.

Sound engineers tend to specialize in the movie and TV field or the record industry, because techniques in these areas are somewhat differ-

ent. A recording engineer for film, for example, tends to record "live" with all of the orchestra present more than would his counterpart in the record

industry. Many of the best recording engineers (in both industries) were

highly skilled and sensitive musicians before they pursued sound engi-

neering.

SMPTE — Technicians wanting to inform themselves about recording techniques in film and TV often participate in SMPTE, the Society of Motion Picture and Television Engineers. In addition to serving as an

information exchange, SMPTE attempts to standardize recording and synchronization techniques to enable its members to move comfortably to

jobs in either medium.

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Hope is the thing with feathers, that perches in the soul, and sings the tune without the words, and never stops at all.

EMILY DICKINSON

The world of work is full of square pegs in round holes. This pervasive mismatch of people and jobs is particularly apparent in music and music- related employment. Students, parents, teachers and counselors sometimes hold distorted views of the field. Their information, what little is available, may be inaccurate and out-of-date. The goal of this volume is to provide a comprehensive account of music career options and set forth precisely how aspirants may .qualify for a career in music.

The U.S. Department of' Labor lists over 20,000 different occupational titles. Its Bureau of Labor Statistics publishes each year its Occupational

Outlook Handbook which attempts to calculate what jobs might be in de- mand in future years. But the government, the MENC, NASM, AFTRA and AFM have been negligent in informing people concerning career op- portunities (or lack of them) in music. While some parts of the field are tremendously overcrowded, there is an actual shortage of qualified peo- ple in other areas. A complete inventory of music-related occupations reveals an astonishing diversity. The individual searching for employment in music will discover a very large number of career options. To provide a perspective, we shall group them as follows:

Creative Careers Teaching Careers

Producing/Directing Careers Music-related Careers

Performing Careers

410 CHAPTER TWENTY-SIX

Choosing the right career goal can be the most important decision in a person's life. Before proceeding to examine the options available, look at the accompanying summary (Fig. 26.1 ) which outlines the stages the pru- dent individual could go through in planning and developing a career.

CAREER PLANNING AND DEVELOPMENT

DISCOVERING YOURSELF

DEFINING GOALS

GETTING PREPARED

FINDING WORK

CLIMBING THE LADDER

RETIREMENT

Fig. 26.1

Self-appraisal of temperameru. ^alent

Professional assessment oUvojctemperament, talent

Personal needs, preferences ,'

Investigation of career options ^ Short-term employment objectiW^ Long-term car^jer goals

Education: training ^

Apprenticeship, worklSfXperience

Diplomas, degrees, licenses, union affiliations

% Surveying the job market, current, potential

Predicting entry: time, place, pay, status

Breaking in: auditions, demos, letters, resumes, interviews

Self-employment options

Planning advancement: status, income, power Vertical vs. horizontaljob change Quitting vs. hanging on Attainment of career goals

Realization of personal goals

Periodic reassessment of goals

When, how Estimated financial requirements

Anticipated income; preparing for inflation

CREATIVE CAREERS Professional Songwriter

Composer of Shiow Music Composer of Dramatic Music Composer of Educational Materials Composer of Ctiildren's Music

ComoQser of Serious Music Arrant^Orchestrator Music Editor Music Copyist

PROFESSIONAL SONGWRITER

CAREER DESCRIPTION — The professional songwriter spends about half the time composing, focusing creative energy on one market — the record business. The other half of the songwriter's workweek is usually spent promoting — trying to persuade performers and producers to record the material. Most songwriters have difficulty gaining acceptance and find

it necessary to support themselves with other kinds of employment which may or may not relate to music. Genuinely talented songwriters, once they

CAREER OPTIONS 411

obtain initial acceptance, usually discontinue moonlighting and devote their full attention to writing and promoting their songs. When this hap- pens, they often find themselves increasingly involved in such related

activities as music publishing, record production, perhaps even artist man- agement or show production.

Professional songwriters geirrerally find it necessary to live and work in

a major recording center where they can make direct personal contacts with publishers, recordjM-'^ducers aTM recording artists. The real pros write, not just dozei^ "^>|6, but hundreds, knowing that prolific activity is required to sust^^^ luii-fime songwriter career. As for working condi- tions, they are \6^iti^ "w^ :--" sets t^^<he; •'<?, vacation pehods, usually writes at home, andjBifmit protest"^ pconf^s to the kinds of individ- uals desirable to ^^round — musiqians and show people. Unlike most other professionals; the #r|er need not clutter the workweek with "the public," amateurs, ajjoupresg^Je^i^onsor sponsors' spouses.

QUALIFICATIOKlS, PREPARAlfON — Since the publishing/recording business requires hundrjdfeQJ ngw songs every week, it is a common oc- currence for untalented, ilnftpa^ed songwriters to get heard — initially. But such individuals experience only brief acceptance and are soon dis- placed by those who are genuinely qualified. Aspihng songwriters can usually discover whether or not they possess genuine creative talent by offering songs to performers and producers over a period of time. If they

follow the "getting started" procedures outlined in this book, they should

learn, with persistent effort, whether song users judge them as really tal- ented. If aspirants find no acceptance after two or three years' effort of

this kind, the message becomes clear: they do not have what song users want.

Assuming for the moment that the aspirant has demonstrable creative talent, a key requirement is to learn the craft. Chapter 4 treats this topic at

length. ^ If the aspirant is talented and competent, professional success will also

depend on the rig h| kind of temperartient.^ Uhless the aspirant is so cre- atively gifted that songji^rs beat a path to the door, certain personal traits will be required to^urviv*^ the field. The essential personal at- tribute is determination. The yNuXer mi^st,):^ strongly motivated to write songs and then more sl|!^s and tl^rj get out on,the street and push the material unrelentingly, d^ aftefdS^'Even established pros rarely enjoy the luxury of sitting at l^ipie wait! rglor the telephone to ring. Songwriters

learn that the world must be continuously reminded that they are still alive, still producing. Anotlfer desirable personality trait is infinite pa-

tience. Some top writers waited years for recognition. A less patient temperament might have given up.

EMPLOYMENT PROSPECTS — If the aspirant is genuinely talented, professionally competent, has the temperament described and is persis-

1 - Throughout this chapter we shall refer repeatedly to individual temperament, for it is probably the dominant factor in a person's makeup determining success or fail- ure in professional life. An individual must have the "right" temperament to make it in most fields of employment.

412 CHAPTER TWENTY-SIX

tent, the chances of experiencing professional success are good. But if

there's a shortfall in even one of these areas, the songwriter should forget

the first-choice career plan and turn to something else. Songwriters are employed almost exclusively by publishers. If a partic-

ular publisher believes in a writer, the publisher will normally contract for

the writer's services for a year or mor^-on an exclusive basis, meaning

that the individual can write only for that particular publisher. An advance on royalties is common, ranging ffbm a i^ittance to a weekly draw suffi- cient to keep the writer alive. The standard corttract provides that all royalty advances and salaries based on^pptential royalties are fully re-

coupable by the publisher from royalti.et-*he Ittiter earns under the

agreement. ^ ^ * ^ Publishers often prefer to cohtract for writers' services on a work-

made-for-hire basis. Review Chapter 4 to leaw how this kind of contract can be very inequitable.

Writers who fail to get signed initially by a puWi^er may hustle direct contacts on their own with recording artists and record producers, but this is really jumping the gun. Writers cannot enjjiiroyalties from records or

printed music until a publisher has c6nUacm6 for the material. Writers concerned with composing musical shows would not approach a publish-

er, but a show producer. Writers talented in creating "special material" would contact performing artists, artists' managers and producers.

COMPOSER OF SHOW MUSIC

CAREER DESCRIPTION — A small group of professional composers devotes most of its creative efforts to writing music for shows. Years ago,

this would mean only the kind of creative work involved in mounting a Broadway production. Today, in addition to the dozens of composers working on such projects, additional show-writing opportunities occur not

only off-Broadway, but "off-off-Broadway" -^ in regional theatres, dinner

theatres, children's theatre and industrial shows.

Show music composers ^ork differently than pop songwriters. The lat- ter are free to invent whatever material they think might appeal to record

producers. But show music composei*s' normally start work only after a producer or writer has presented them with a script defining the nature of

the show, the scenario, dialogue afd4early on, the "book" for the produc-

tion. The composer works sometimes on a daily basis with the show writers and producers, searching for music arfd lyrics that enhance the

show and move it forward. Sho\«Nmusic conposers often work steadily on a project for several months, even a year or more, shaping, then reshap-

ing the music to fit the script which is also probably undergoing constant

rewriting. Completed, polished songs may have to be thrown out and new ones hastily inserted. Casting may change, and the composer may have to rethink just what type of material will best suit the new actor or actress. Show music composers may be handed a lyric and be asked to come up with the music in two or three days, even overnight. Absurd as it sounds,

some great standards that were composed overnight have emerged from Broadway hits; Stephen Sondheim wrote the music and lyrics to "Send in

the Clowns" in just one evening! On the other hand, Rodgers and Ham-

CAREER OPTIONS 413

merstein {Oklahoma!, South Pacific, Carousel, The Sound of Music, etc.) were known for working and reworking music and lyrics on just a handful

of songs for a year or more until they attained their artistic goal. Com- posers and lyricists of stature are almost always called upon to serve as

consultants to the producer in such matters as casting, dialogue, staging

and orchestrations. Show music composers/lyricists are, then, men and women "of the theatre," and their work starts and ends with what works on-stage. ^ • Some show music com^sers are occasionally called upon to write,

not just show songs, but instrumental music, dance music, even dramatic music to underscore ^ge Jfton. For example, the master show music composer, Richard Rodgers, was called upon to compose dramatic ballet music. Slaughter on Ten^ Avenue, for one of his Broadway shows. A composer able to handl^Joiverse assignments of these kinds rises above

the ranks of "songwgter" and becomes a "composer's composer." It is more common in most ^ows, hqwever, to expect the composers-lyricists working on the project to be engaged only for songs, not dramatic music.

QUALIFICATIONS, PREPARATION — Show music composers must possess the same qualifications cited above for songwriters, plus one more: a sense of theatre. Composers lacking that sense remain just pop songwriters; they will not experience success in theatre music. Show composers are often expected to work well with collaborators, particularly

lyricists. While Broadway has had a few masters who could write words and music, e.g.. Cole Porter, Irving Berlin, Stephen Sondheim, most

shows are created by a kind of committee involving composers, lyricists, playwrights and directors. Choreographers and lighting directors also

have their say. The creative artist who is comfortable only when working alone is better off staying away from the theatre. How does an aspirant prepare for this level of composition? Unless

gifted with bountiful natural talent and polished with private instruction,

such a composer would have to spend at least four to six years beyond high school studying music, probably in a university. The aspirant might major in composition and minor in theatre — getting fully involved in writ- ing shows for campus productions, as did Stephen Sondheim, Oscar Hammerstein, Cole Porter, Richard RdClgers*and many others. The "com- plete" show music composer woiid become immersed not only in the Broadway repertoire, but also study the great "show music" composed by earlier masters such as Mozart and Wagner, not to mention Stravinsky

and Copland in this century. Once the aspiring composer explores theatre music at this level, the study of art and craft becomes a lifelong pursuit.

What kind of temperament must a composer have to work profession- ally in the theatre? Already mentioned was the need for an ability to collaborate artistically; a "loner" cannot make it in this environment. Also, the show music composer must be able to endure the sudden rejection of material without experiencing total collapse of ego. The aspirant must have unlimited patience — willing to work on one project for a year or two, then see the show fold after one performance. The composer must then decide whether to risk another huge disappointment, try again and

come back. The aspirant must also possess sufficient aggressiveness to

414 CHAPTER TWENTY-SIX

search for show backers and producers. Creative musicians working in the theatre must hustle their own financial support and convince in- vestors that the project is as good as the composers believe it is. In this aspect of a theatre composer's career, there is little room for modesty. Self-confidence and drive are as important to professional success as the musician's creative prowess.

EMPLOYMENT PROSPECTS — There is no such thing as an "employ- er" or a "job" for show music composers. Rather, they work on projects, perhaps for long periods without compensation, in the hope that, along the way, they can locate a financial backiftc. Despite the hit-flop ratio of musical shows, every season "angels" emerge, money in hand, ready to sink up to several million dollars into an unthecVunproved musical dream. A show composer may struggle for years and never find financial backing or a receptive producer. Still, writers new and old continue to make their way in the theatre.

Elsewhere in this volume are described potential income sources for show music. Since royalties for show music from records and print media can be huge, it is this pot-of-gold that attracts every year still more show music composers who are determined to follow the rainbow. Since the re- wards are great, composers always seem willing to endure long periods of starvation waiting for that hit. Individuals engaged in this long-odds game must have outside income of some kind. Fortunately for those who love good musical theatre, there seems to be an unending supply of cre- ative artists who are willing to keep knocking at the stage door.

COMPOSER OF DRAMATIC MUSIC

CAREER DESCRIPTION — Large numbers of musicians develop full- time careers composing background music for television and movies. These composers are given a script, then sit with the film director (or pro- ducer in television) and music cutter to determine where music should be underscored and just what kind of music would be appropriate for the dramatic situation. Background music composers must write at top speed. Producers may demand a score for a 30-minute TV episode, even a one-hour show, in one week or less. Movie producers may require the music score be written and recorded for a feature film within four to six weeks. Even well-established composers in this field experience feast and famine; they may make weekly visits to the unemployment office for a while, then suddenly be called upon to turn out a 13-week TV series in three months and work on a film score concurrently. Hot and cold, rich and poor, that is the pattern. Generally, TV and film composers must lo- cate in Los Angeles, New York or a major foreign production center to find work in TV and the movies. Some composers who prefer to write for the theatre and other dramat-

ic media do not attempt to crack the inner circle of movie composers and instead focus on writing ballets and operas. Professional work of this kind is almost invariably performed on commission, and the composer can live anywhere. But most dramatic music composers in the field of ballet and opera are employed as theory and composition teachers by universities.

CAREER OPTIONS 415

QUALIFICATIONS, PREPARATION — The musician aspiring to a profes- sional career scoring dramatic music must possess outstanding creative talent. The aspirant must also be highly sensitive to dramatic values, tone painting and how music can enhance theatrical experience. As for musi- cal style, many film and TV producers today prefer rock-flavored scores for contemporary drama. Historical drama and exotic settings require, of course, music appropriate for particular times and places. Composers hired to score high-tension dramas find that they can get away with a lev- el of dissonance, including atonality, that many concert audiences even today find unpalatable. Today's film and TV composers must not only have strong backgrounMs in ajlnphonic music and rock, they are expect- ed to draw from the best of jazz and electronic sounds.

Aspiring composers in ^is field must know the great music of the past and present, in order to score appropriately for any historical period. While most of our leading film music writers are amazingly versatile, they tend to be hired to score in a style in which they are particularly adept, becoming known for that style no matter how wide-ranging their compos- ing assignments might actually be. For a contemporary romantic comedy, many producers would like to have Henry Mancini, if they could meet his price. Producers of high adventure films or space-age thrillers might try to hire John Williams, renowned composer for movies of this kind. Jerry Goldsmith seems to excel in underscoring psychological thrillers and mystery dramas.

Most successful film composers today use electronic instruments and computers in all phases of their work, from demos for directors to the final recording itself. Even in scoring sessions employing a full symphony or- chestra, it is not uncommon to see two or three electronic keyboard players. The aspiring film composer should be thoroughly versed in elec- tronic (MIDI) music techniques.

EMPLOYMENT PROSPECTS — The most readily employable com- posers of dramatic music today are those adept at scoring for synthe- sizers and other electronic instruments. When one player can perform the entire score with no other help, many producers find the potential cost-saving irresistible. Also, many composers have broken into the film world by first working as orchestrators for established composers. For additional kinds of employment prospects in underscoring drama, review Chapter 25.

COMPOSER OF EDUCATIONAL MATERIALS

CAREER DESCRIPTION — When schools and colleges accelerated their music education programs following World War II, publishers be- came increasingly involved in attempting to supply the print-music needs of school bands, orchestras and choruses, as well as the requirements of the individual student in search of learning materials. This print music market expanded in the 1960s to involve several hundred composers-ar- rangers-editors in the publication of music education materials. Nearly all professional composers in this field come from the teaching profession.

416 CHAPTER TWENTY-SIX

Most of these pros write music only part-time and continue to hold their teaching jobs nine months a year.

This division of professional activity has developed for two reasons.

First, few educational field composers can earn enough at it to support themselves; it may yield very respectable royalties but usually not enough to justify quitting a teaching post. The second reason composers in the educational field generally continue to divide their time between compos- ing and teaching is that their jobs in schools and colleges keep them aware of this changing profession and the changing market for education- al music. Further, these composers are able to maintain their contacts with potential customers through educatl<||ial organizations, clinics and conventions.

The most successful composers of educational materials usually con- centrate on the particular medium that they know best: band directors tend to compose mostly band pieces; choral directors generally limit their creative projects to choral repertoire. Our best educational field com- posers do not limit their creative work to the educational market, but are active in the general field of serious music, enjoying performances of their

compositions by professional symphony orchestras, ballet and opera companies.

How do most educational field composers function? Simply by scoring what they believe is their best work, making a demo tape with a school group, fonwarding the score and demo to a publisher — then crossing their fingers. Publishers usually have knowledgeable chief editors who are adept at determining if a particular score shows promise. Works ac- cepted usually receive a first printing of 1 ,000 copies in the instrumental

field, and some composers receive advances on royalties. The standard royalty in this field is usually 1 percent of sales at the retail price.

The largest market is in the school band field. An average five-minute concert band piece may retail for $35. Thus, if the first edition (1,000 copies) sells out, the composer receives $3,500 in royalties. A composer who can turn out several dozen reasonably good sellers can earn a re- spectable income and could devote full time to this activity.

QUALIFICATIONS, PREPARATION — An individual who wants to be- come a professional composer specializing in the educational field will almost certainly major in music in college — and probably go on to gradu- ate school for a masters degree, perhaps a D.M.A. (Doctor of Musical

Arts) degree. The aspirant should have several years of experience with school ensembles as a director. Also important: familiarity with the reper- toire of the past and present which has been found suitable for educational purposes. Such experience and study may help avoid at least the most common cliches which infect this repertoire. The aspirant would, in the course of ongoing study and directing experience, become thoroughly familiar with the performance capabilities of amateur musi-

cians at various grade levels, then score music to accommodate the needs of particular segments of the market. Besides understanding the craft, let us hope that the aspirant is also creative, capable of composing music of substance and meaning. Music scored for schools and colleges need not be as banal as much of it has been in the past.

CAREER OPTIONS 417

EMPLOYMENT PROSPECTS — If a composer heading for specializa- tion in the educational field is really talented, creative, knows the craft, and can produce acceptable demo tapes, publishers will be receptive. That is, if the composer follows certain procedures. The first step is to ad- dress a specific market and medium. If the work is intended for high school concert bands of average ability, everything should be scored ac- cordingly. Assuming the composer has written for an identifiable segment of the market, the aspirant then writes publishers active in that area, in-

quiring for that firm's guidelines for submission of unsolicited manuscripts.

Publishers welcome this preliminary contact and are much more recep- tive to scores that conac in wj|jch conform to their requirements. A letter accompanying submisSoh ofThe full score and parts should offer a de- scription of the piece and state for whom it is intended, together with any other information pertinenfto the composition which the publisher might

need to know, such as whether the piece is already covered with registra- tion of claim to copyright.

All educators complain they have difficulty locating a sufficient number of high-quality works for students to study, so the field is open to persons with real talent in this area. Few composers in the educational market will die rich, but large numbers of them will receive good royalty checks every quarter from their publishers to supplement their incomes.

COMPOSER OF CHILDREN'S MUSIC

CAREER DESCRIPTION — It rarely occurs to musicians that they might develop a career creating music just for children. When mass production of printed and recorded music accelerated after World War II, one of the new markets discovered was in the area of music addressed to young children and kids up to the age of about nine to twelve years. The Walt Disney people led the way in marketing special music of this kind, discov- ering that families attending movies such as Snow White and the Seven Dwarfs became very interested in preserving some of those pleasantries by taking home, not only records of the movie score, but all kinds of print- ed arrangements of the songs. Since the Disney company showed the way, other publishers imitated them, for example with music for nursery rhymes and Tubby the Tuba-type of children's music. This special kind of repertoire has, in intervening years, grown to sizable proportions. Publish- ers and record companies now employ composers adept at serving this special audience.

A composer seeking a professional career writing children's music must understand how to score ideas in a simple style, yet avoid the sim- plistic: a composer might "write down" for kids, but shouldn't get caught at it. Competition in the field is strong, and even the simplest nursery room songs should reveal at least a hint of charm, if not originality. Song texts are essential to most music appealing to children. If not adept at compos- ing lyrics, the composer will need to locate someone who knows how to handle song texts without sounding totally vacuous. Also, the aspiring composer in this field needs to know how limited in range melodies must be for young voices. One aspect of composing music for kids spills over into the educational

418 CHAPTER TWENTY-SIX

field. A portion of this market includes material that helps young children learn to count, to spell, to recognize the names of animals, etc., often cor- related to music books, lavishly illustrated, with sound recordings. Composers interested in this kind of writing and production are involved, not just in entertainment, but in education.

QUALIFICATIONS, PREPARATION — Aspirants may find work in this field with no more qualifications than those cited above for popular song- writers — natural creative gifts. A professional arranger can always be called in to bail out the illiterate composer who is not informed in the craft. But it is more likely that publishers and regprd producers, given a choice, will prefer to look at the music submitted by musicians who know how to score what they invent. Competition in the field from genuinely profes-

sional composers will probably make it increasingly difficult for the ill-prepared to compete.

EMPLOYMENT PROSPECTS — Most income in this field derives from records and printed music which follow release of a successful musical

film or TV program. And some of this work is rendered by songwriters al- ready hired by the film producers. Music publishers and record companies

then follow up the film with special editions aimed at very young audi-

ences. The composer aspiring to work in the children's music field, once qualified, should seek contact directly with those publishers who address most of their energies to this particular market. The quickest route to dis- covering just who these publishers are is to examine the children's section of a music store. Music discovered there will not compete with Beethoven's Ninth Symphony, but royalties it generates for composers will

certainly help pay the rent.

COMPOSER OF SERIOUS MUSIC

CAREER DESCRIPTION — Musicians who aspire to professional ca- reers as composers of serious music generally view themselves as functioning outside the music "business," believing they can spare them-

selves direct confrontation with the commercial world. This may be possible for the composer who is fortunate enough to marry into wealth. But most composers in the so-called classical field bump up against the rude realities of the marketplace, sometimes more often than their coun-

terparts in popular music. If gifted with both abundant talent and the right

temperament for such a career, the serious music composer should be- come acquainted with the professional lives of Bach, Handel or Chopin — not to mention Schoenberg and Bartok. Each of these composers discov-

ered that he had to devote much of his time hustling for jobs, commissions and students. In the late twentieth century, only a handful of

composers devote their full workweek to composing. Either through choice or financial necessity, nearly all composers divide their time among composing, teaching, performing — and job hustling.

Practically all serious music composers find that about the only place

they can find steady employment is on the teaching staff of a conservatory

CAREER OPTIONS 419

or university (in recent decades, Schoenberg, Bartok, Harris, Piston, Hin- demith, Persichetti, Crumb, Foss, Schuller).

Once a composer starts to acquire a good reputation, commissions fol- low. It is not uncommon for a high school band or community symphony orchestra to commission a composer to write a piece for it, paying a com- mission of, say, $500 to $5,000. Sometimes a commission looks large, but if it does not include copying and reproduction of the parts, the com- poser may pay out more for these services than the fee received to compose the music. A composer of national and international reputation could live fully off commissions alone, for musicians of this stature receive more requests to compose than they can accept. But the composer aspir- ing to this high station may have to wait a lifetime to reach these heights.

Composers of even modest reputation enter composing contests. They come along all the time, and an energetic composer can often earn several modest sums a year this way. Certain contests of this kind can lead to a national reputation; through them composers develop offers of commissions, even teaching jobs.

QUALIFICATIONS, PREPARATION — To find this kind of employment, the aspirant must be highly motivated and determined. Let us hope for talent as well. But how can the really first-rate serious music composer be identified today? There is no consensus on this question. With the aban- donment of most of the nineteenth century tradition, the adoption of atonality and serialism, not to mention sound synthesis — critics, musicol- ogists and audiences do not agree at all on precisely which composers are outstanding and which ones just hide their limitations behind compo- sitional systems and bleeping oscillators.

As it turns out, the composers who manage to achieve more than re- gional reputations are those who discover how to attract attention. Sometimes this attention is generated by using outlandish tricks (quartet for strings and cement mixer) — or "composing" pieces that are silent musically (John Cage). Or a composer may attract attention through trick- ing critics (garnering rave reviews for a piece that was deliberately performed backwards).

Other serious music composers get their music played because they appear as soloists or conductors. If they are really good at either, they give the impression of being first-rate at anything musical.

How does a serious music composer prepare for a career? Practically all of them today who get teaching jobs must have an earned terminal de- gree from an accredited university. Of these, the most useful is the D.M.A. — Doctor of Musical Arts, the degree now most often awarded to musicians planning professional careers as composers-teachers. Some older, more traditional universities award the Ph.D. as the terminal degree in composition. Most advanced degree candidates serve as teaching as- sistants to the faculty under which they are studying or teach music in a school to support themselves financially during the arduous period of graduate study. Whatever the work/study combination the degree candi- date can set up, honest teachers admit that the years of advanced study in composition do not have much to do with teaching "composition" as a creative act. Rather, advanced study focuses on developing the student's

420 CHAPTER TWENTY-SIX

craft — through extensive exercises, performances, and study of master works.

EMPLOYMENT PROSPECTS — The musician aspiring to employment as a composer of serious music cannot expect to earn a living scoring masterpieces. As outlined above, the aspirant will almost certainly find work, early on, primarily as a teacher of theory and composition in a col- lege or university. As a potential pedagogue, the aspirant should know that the supply of qualified, certified teachers has often exceeded de- mand. The job shortage has been particularly acute at the college level. And at post-secondary teaching levels, there has been a large surplus of applicants in the theory and composition fields, with even an oversupply of composers holding the D.M.A., Ph.D. and Ed.D. degrees. Still, those who are sufficiently motivated will continue their quest for employment as serious composer-teachers.

How does the aspiring composer-teacher land the first job? In these ways: 1) developing a good reputation with influential musician-teachers;

2) joining the College Music Society and following up its job-opening no- tices; 3) registering with the alma mater's placement bureau; 4) attending professional meetings; getting acquainted, setting up performances of new work, seeking publicity; 5) registehng with teacher employment ser- vices; 6) persevering for at least five years. If this combination of strategies yields no employment, consider the alternatives open to com- posers cited in these pages. Many composers have musically-satisfying careers writing only part-time, knowing that rent money has to come from second and third-choice professional activities.

ARRANGER-ORCHESTRATOR

CAREER DESCRIPTION — Thousands of creative musicians earn most of their incomes as arrangers. They accomplish this in diverse ways, ranging from writing leadsheets to scoring motion pictures. Hundreds of arrangers make their living working for songwriters and publishers, turn- ing out leadsheets and song copies. The AFM has scales covering this kind of work but they are often ignored because the union has few oppor- tunities to police this kind of employment.

Publishers engage arrangers full-time or free-lance to score various editions particularly for the educational field. Astute publishers hire only

specialists for this kind of work — choral arrangers for vocal editions, jazz specialists for jazz charts, and so on.

The largest number of professional arrangers work for performers. Nearly all professional performers use custom arrangements exclusively. Unlike earlier decades in the pop field when "stock" arrangements were widely used, in recent years professional soloists or ensembles have un- derstood they must depend on themselves or outside arrangers to chart music for live or canned presentation. This has resulted in widespread employment for arrangers.

Nearly all arrangers are employed free-lance; few are retained on reg- ular salaries. Their services are considered, under copyright law, as work

CAREER OPTIONS 421

done for hire; they receive one flat fee, in front, and do not receive royal- ties on copies or records sold.

Arrangers and orchestrators usually work under absurd deadlines largely because composers and producers fail to hand over the scores with reasonable lead time. It is a very high pressure field. Panic-type time

schedules are regularly relieved, however, with intermittent periods of

idleness, if not starvation. But musicians attracted to the arranging field

appear to love their work and manage to survive careers which are a mix of great artistic satisfaction and trips to the unemployment office.

While many musicians manage to work quite steadily just in the ar- ranging field, a much larger number work as part-time arrangers, dividing their professional efforts among such related fields as composition, direct- ing, producing and performing. Others are working at least part-time in

such fields as publishing and management.

QUALIFICATIONS, PREPARATIONS — To qualify as a professional ar- ranger, the individual should have thorough training in music theory.

This learning can take place through private study, but college training

may be preferable. The advantage of formal training is that the student can measure progress against other students — whether well ahead of peers, or swamped by competition that is just too tough. Also, formal schooling may be less costly than several years of private lessons. For- mal training will include studies in sight singing and ear training which are

sometimes difficult skills to pick up outside of school. An arranger's ear must be as finely tuned as that of a composer. Actu-

ally, nearly all professional arrangers qualify as composers, too. An arranger is expected to work fast and be able to knock out a score overnight, when necessary.

Besides schooling in music theory, the best training for aspirants is to

write — and write and write — then hear the score in rehearsal. Then rewrite. Then rehearse the revision — and on and on over several years of experimentation, trial and error. All good writers, whether they create

prose, poetry or music, recommend two basic activities: read a lot and write constantly.

EMPLOYMENT PROSPECTS — The aspiring professional arranger need not starve throughout the learning experience. All arrangers who eventually make it as pros begin to pick up small jobs early on — first for free, then maybe for a few dollars for one of their charts — if they'll copy off the parts and run the rehearsal. Really talented arrangers attract at-

tention quickly, and they begin receiving requests for their work, often

from those with inability to pay much. But outstanding talents can break

in. Employment prospects for them are generally good, provided they are prepared, at least early in their careers, to fill out their workweeks with other jobs. Top arrangers working in the record field for stars or busy

record producers earn big money. If they manage to keep abreast of ever-changing musical styles, their careers can last longer than the artists

for whom they write. A lot of arranging is done without regard for AFM scales. But in records

and film, all arranging-orchestrating and copying are written (theoretically)

422 CHAPTER TWENTY-SIX

for AFM scale. Top arrangers usually charge over scale, knowing that they must get their fees in front and not expect any royalties, no matter how creative their work may be.

MUSIC EDITOR

CAREER DESCRIPTION — Several kinds of music editors can be identi- fied. The professional who lays music tracks to film is identified as either a music editor or music cutter, as explained earlier. Career opportunities

for this kind of professional are described in this chapter under Music Ser-

vices. Career opportunities for writers about music, e.g., critics and journalists, are described later in this chapter under Words and Music. Here we shall discuss only the kind of music editor who prepares music manuscripts for publication.

All publishers of printed music require professional editors, because even skilled composers and arrangers are rarely knowledgeable concern- ing precisely how scores and parts must be edited before the music is printed. In the popular field, most publishers contract with one of the ma- jor printing houses to handle their music editing and paper publishing.

Music print publishers engage editors on staff and free-lance to rewrite the composers' or arrangers' scores so that they conform in content and style to the standards this country inherited centuries ago from master European engravers and printers. Regrettably, many publishers today have abandoned (or were never aware of) the art of music publishing known in earlier times. Only a handful of master engravers are left in this country, and this shortage of skilled craftsmen accounts in part for the far more prevalent music printing practices involving manuscript autography, music typewriting and photographic platemaking techniques.

Whatever technique is used to prepare music for the printer, the music editor must first perform the tasks of correcting, proofreading and pasteup for the platemaker's camera. This kind of work is drudgery to many music writers and they rarely stay with music editing jobs unless at least part of their work can involve actual rescoring, arranging, and even original com- position. The music editors who are most in demand are almost always qualified as composers and arrangers, too. Many editors specialize in just one field, such as choral music or piano music.

After acquiring long experience, the editor is sometimes elevated by a publisher to the status of executive editor or editor-in-chief. This individual

is normally employed full-time on the publisher's staff — and may even own part of the company. In larger houses, the executive editor is largely concerned with passing judgment on acquisitions. Most publishers re-

ceive large quantities of manuscripts, particularly in the classical and educational fields. It is the task of the executive editor to evaluate the

scores submitted in respect to musical quality, style and market suitability. Publishing decisions will be based on those judgements.

QUALIFICATIONS, PREPARATION — To qualify for a job as a music ed- itor, the individual should undertake a complete musical education in

theory, history, literature and performance practices. This broad back-

CAREER OPTIONS 423

ground is most readily available in universities with strong music depart-

ments. Most editors major in music theory and composition and aspire to

careers as creative musicians. When this admirable goal cannot be fully attained, musicians find that they can still remain fairly close to their first

career choice by seeking employment as editors of other composers' works.

EMPLOYMENT PROSPECTS — Can an aspiring music editor find em- ployment? It will be difficult at the outset. For many musicians, particularly composers and arrangers with good educational backgrounds, music

editing is a fallback position; they enter the field as a second career

choice, or, more commonly, as one component of a combination career. Nearly all free-lance editors earn part of their incomes from compos-

ing, arranging, copying, performing or teaching.

Editors-in-chief of major houses are sometimes among the high salary earners in the corporation and may also enjoy stock options and other benefits.

MUSIC COPYIST

CAREER DESCRIPTION — Many musicians break into the composing and arranging fields as music copyists. Other musicians develop satisfy-

ing, well-paying careers just in the copying field itself. There is an actual

shortage of fully-qualified musicians who have the knowledge and skill re- quired of professional copyists. Since practically no school or college

teaches professional music preparation (the term includes extraction of

parts, duplication, collation, score preparation and other music library ser-

vices), the aspirant must acquire the knowledge and skills with only

informal help.

QUALIFICATIONS, PREPARATION — All professional copyists are also arrangers. They will have studied music theory just as professional ar-

rangers, for the two professions have much in common as to craft. Good self-study books on copying are available, too. The aspiring copyist will

also learn from the ease with which musicians read the completed work.

Working copyists not only turn out legible parts, their manuscripts are usu-

ally beautiful to see. Assuming legibility and appearance are in hand, the

critical issue with music copying is accuracy. Professional copyists are ex-

pected to make no mistakes, and they are also expected to correct the errors in the scores they work on — scores which every copyist knows are replete with composers' carelessness, not to mention whole sections of

scores left incomplete by the composer or arranger. The experienced pro- fessional copyist may not be able to reach the composer-arranger to answer questions about illegible notes or incomplete sections. The copyist must then have sufficient skill and knowledge to correct, then complete the

score without guidance. Copyists who must run to their employers every 16 bars or so become an annoyance. Next week, the composer-arranger will try to call in a copyist who can simply figure the music out.

424 CHAPTER TWENTY-SIX

EMPLOYMENT PROSPECTS — A large part of copying is done outside AFM jurisdiction — for prices ranging from free to union scale. But in the film, show, and recording fields, practically all copyists are AFM members working for union scale. AFM copying scale now is very high, and fully qualified copyists can earn good money — sometimes more than ar- rangers.

Copying jobs exist everywhere. But the aspirant must sniff them out

and make the service known to every composer-arranger who can be located.

With the development of powerful computer programs for musical com-

position, many music copyists are "retooling." Computer-generated scores and parts are quickly becoming commonplace. The aspiring music

calligrapher would be well advised to become proficient in using these tools.

Most copyists supplement their income as performers. Others may also be active in music publishing, merchandising, as an agent or manag-

er. These kinds of combination careers can often yield, in the aggregate,

satisfactory incomes.

PRODUCING-DIRECTING CAREERS

Music Director-Conductor Theatrical Producer-Director

Record Producer Video/Film Producer-Director

MUSIC DIRECTOR-CONDUCTOR

CAREER DESCRIPTION — All musical performers — soloists and en- semble artists — require musical direction. In the pop field, the individual serving as musical director may not be a conductor but simply a per- former in the group who assumes a leadership role. Musical direction of groups of this kind is sometimes shared, but dividing this important re-

sponsibility usually leads to difficulties. As for soloists, when an artist reaches star status, the artist usually finds it necessary to employ a musi-

cal director, at least for appearances on tour. These individuals are

almost invariably rehearsal pianists-accompanists who assist the artist by selecting material, arranging it, conducting rehearsals and live perfor-

mances. Many of these pianist-conductors are not trained baton twirlers

but manage to make sufficient hand gestures from their position at the pi-

ano keyboard to cue the musicians. Stars' musical directors-accom-

panists are usually displaced when the star records, as most record pro- ducers install their own people on those occasions. Some jobs for musical directors in the pop field are found in major

cities, conducting shows. Other musical directing jobs are available in the

field of industrial shows. Broadway, off-Broadway and regional theatres,

particularly dinner theatres, employ musical directors, most of whom are actually orchestra conductors.

Musical directors for movies and TV are almost invariably hired first as

CAREER OPTIONS 425

composer-arrangers; they then are expected to conduct their own music when their scores are recorded; the musician who is only a conductor rarely finds employment in these fields. This same pattern prevails in the field of syndicated music and library services: musical directors are usu-

ally serving the producers as triple-threat artists, composers-arrang-

ers-directors.

Some musical directors are engaged by arts centers and community centers as artistic directors. They may not only conduct rehearsals and performances, they are likely also to function as organizers and supervi-

sors of artistic and educational programs for these entities.

The conductors best known by the public, of course, are those en- gaged as musical directors of symphony orchestras and opera com- panies. Symphony orchestras in the United States are classified by the American Symphony Orchestra League according to the size of their op- erating budgets. Major orchestras normally contract for a conductor for

terms of one to five years. Some are called "artistic director." It is custom- ary for musicians holding these posts to assist management in selecting, then contracting guest conductors and guest soloists, selecting programs,

working with orchestra managers in planning operating budgets, and hir-

ing and firing musicians. Artistic directors also become involved with the major orchestras in ne-

gotiating recording contracts for their ensembles. Because of the heavy

responsibilities assumed by these kinds of musical directors, they require at least one assistant conductor. Some of the major orchestras have two or more assistant conductors who help the artistic director by conducting performances for school children and pop concerts.

Assistant conductors also are often assigned many of the summer concerts. Musicians who serve time as assistant conductors often gradu- ate to roles of principal conductors and music directors of orchestras and

opera companies.

Music directors and assistant directors have such heavy responsibili-

ties, they rarely find time for any other professional employment, save for

the guest conducting of other symphony orchestras. In addition to their di-

recting, they must meet with the various committees charged with the

responsibility of raising money for operations. An important part of this as- pect of the work is fostering goodwill among the individuals and corporations and foundations who pledge money to support the artistic goals of the ensemble. Some conductors find these fund-raising meetings and social contacts distasteful and refuse to take part. Musical directors

of this temperament don't hold jobs for long. Thousands of musical directors are employed by churches. These

professionals are usually organists, many of whom serve double duty as choir directors. Large churches sometimes call their musical directors

"ministers of music." A person serving in such a capacity usually directs two to four choral groups for the institution and may also assist in direct- ing youth activities. Where the largest churches pay their musical directors full-time salaries, smaller institutions do not, expecting them to

fill out their incomes through such activities as teaching. Salaries for mu-

sical directors in the religious field compare with those for school teachers.

426 CHAPTER TWENTY-SIX

QUALIFICATIONS, PREPARATION — All really successful musical direc- tors share a common attribute: as personalities, they have a com- manding presence. They know how to lead, either intuitively or through training. This leadership quality is not limited to musical matters but ex-

tends to relationships with the variety of human personalities they work with in rehearsal and performance.

Musical directors achieve dominance and control over those working under them in a variety of ways. Some win over their performers through respect: the conductor is so obviously talented that the musicians follow

without question. Others may possess a particularly clear baton tech- nique and the ensemble responds with precision. Other leaders dominate their musicians through fear, even abusive behavior. Many famous con- ductors have used such techniques with great success. Lesser numbers of conductors win their allegiance through charm and friendly encourage- ments. Leaders of this kind of temperament may achieve good results in minor posts. But it is rare for personalities of this kind to achieve recogni-

tion and prestige at anything like the national or international level. In the musical directing field, nice guys may not finish last, but they remain rela- tively unknown outside their own communities. Many of the leading conductors of the world have been despots. They were also great leaders and superb musicians.

Nearly all successful musical directors have had very extensive school- ing, often a combination of formal education and private instruction. Since musical directors must be well-informed on all aspects of music, their ed- ucation, at least through the baccalaureate degree level, will be broad. Post-baccalaureate study may include emphasis in performance, compo- sition or conducting.

Choral conductors are invariably voice majors or thoroughly prepared,

through practical experience as singers, to understand the challenges

singers face in tackling vocal music.

In the pop field, directors are almost invariably performers, too, and are usually involved in composition and arranging. A high percentage of pop music directors are occupied much of the time rehearsing and directing performances of the music they themselves have scored.

The best environment for an aspiring musical director is a first-rate uni- versity with a strong faculty and a variety of performance groups. Additionally, most conductors start early, usually while still in college, to direct a church choir or jazz band or pop chorus or whatever group they can get their hands on; some major cities, such as Los Angeles and New York, also have youth or training orchestras which can offer the talented

novice conductor opportunities to practice the craft. The aspiring musical director who waits until after college to start along the chosen path is al- ready too late; competitors have leaped ahead.

EMPLOYMENT PROSPECTS — Job prospects for musical directors can be compared with those found in other aspects of the arts and business: there is plenty of work available for top people. In the classical field we have a worldwide shortage of first-rate symphony and opera conductors. Organizations here and abroad outbid each other for the top musical di- rectors. The field is so understaffed, most conductors of high reputation

CAREER OPTIONS 427

hold down at least two conducting posts. At the level below the top 100 conductors in the classical field, we

have thousands of musicians who believe they are qualified for top jobs. A variety of reasons might account for their inability to crack the big time. They may lack forceful personalities. They may lack enterprising man- agers or agents. They may have a reputation for being unable to work well with musicians or sponsoring boards. And they may lack the music directing talent required by our leading arts organizations.

Some conductors who languish in small communities conducting un- known ensembles go through their whole careers never discovering that they simply lack the special talents the big jobs require. Still others do not aspire to glamorous posts and prefer to serve smaller communities where the salaries are lower, but so are the pressures.

Musical directors in the popular field experience employment opportu- nities in sharp contrast to the serious music field. Nearly all musical directors in the pop and pop-related fields rise or fall, not on their abilities as conductors or leaders. Rather, it is their ability to please their employ- ers as writers. A musical director who is a really competent composer and arranger can usually find work — and the ability to rehearse and con- duct groups is a minor consideration. Employers tolerate incompetent leadership qualities and baton techniques when the musical director is a whiz at writing music.

In the pop field, young musical directors usually start out earning no more than the other performers in the group they direct. When the group goes union, AFM scales generally call for the leader to receive double sideman's scale. When a record producer or music library service (syndi- cator) production house hires a musical director, the director will probably be paid AFM scale (double sideman's wages), then be paid again for any arranging. In TV and film scoring, the conductor usually works for AFM scale, but makes the real money as a composer-arranger. Unlike the huge fees commanded by conductors in the classical field, such rates are unheard of in popular music.

RECORD PRODUCER

CAREER DESCRIPTION — The work of the various kinds of record pro- ducers is described in detail earlier in this book, and will not be restated here. Individuals employed as record producers function at a level and in a manner that reflects their particular competence. Some producers are successful largely because they are very good at locating the right musi- cal material, then matching it to the right artists. This is why the old label for these practitioners was "artist and repertoire producers." Some producers are masters of the control room. Others know how to

raise money, then hire outside experts to arrange the music, mix the sound and supervise post-production. Still other producers are master musicians who make it in the field because they are creative and capture artistic performances on tape.

Most record producers don't have "careers." They just get jobs. Over half of the work is performed free-lance. The nearest thing approaching steady employment is found with major labels which hire staff producers

428 CHAPTER TWENTY-SIX

and place them on full-time salaries. Producers float from job to job pretty much like recording artists; they get return engagements when their records sell. If they produce a string of flops, their telephones stop ring- ing. Greater employment continuity is found among staff producers, but even here, a label won't retain a house producer beyond a year or so un- less sales from the producer's output are sufficient to at least cover the

salary.

Independent producers often own their own production companies, and they stay in the field as long as they can turn out at least occasional hits. One good hit may keep them afloat for a year or so. But without peri- odic successes in the marketplace, independent producers are forced to change directions or fold.

QUALIFICATIONS, PREPARATION — An individual aspiring to a career in record production should not expect to follow an orderly path. Nearly all producers who make it discover that they must first become recognized in an allied field — such as songwriting, arranging, sound mixing or musical direction. In addition to the competence in one or more of these facets of music, the record producer usually possesses some kind of leadership ability and a temperament that mixes well with artists, technicians and ex- ecutives. Though perhaps lacking the charisma often associated with big-name conductors, the producer at least handles the job in a manner that elicits cooperation from co-workers. Also, the producer must remain stable when others on the project are disintegrating through frustration or fatigue. The producer has the additional worry of staying within budget. Budget panics are endemic with record production, and the individual in charge is responsible for keeping costs under control. So the record pro- ducer must be a kind of miracle man, possessing strong musical ability, technological know-how, business sense, magic ears, and the stability to remain rational under great pressures — all the while serving as referee in conflicts of ego that threaten working relationships.

EMPLOYMENT PROSPECTS — Since no one possesses all these tal- ents, those that come close find themselves in high demand. Investors, labels and artists are always searching for record producers who can pull all the elements together, get them on tape and on the charts. Producers possessing the essentials of the art and craft will work and prosper, through in-front fees and points (royalties). But even the most successful producers have spotty careers. They work steadily, sometimes frantically, ifor a few years, then fade. Why? Most often because they cannot adjust their ears to changing tastes. When an established producer starts to slip, it is this very phenomenon, omnipresent in the field, that opens up work for newcomers — or for producers seeking comebacks. Labels experi- ment continually, ever searching for the commercial combination of producer-material-and-artist.

Because of the absence of employment continuity, nearly all record producers maintain other irons in the fire, just as most musicians do. They may write songs, own part of a publishing company, manage artists, function as agents, write arrangements, produce shows — whatever maintains their close contacts with music and records.

CAREER OPTIONS 429

Staff producers earn regular salaries; the best of them also have con- tracts providing royalties based on sales of records they produce. Some producers become wealthy through royalties. Some contracts provide for a royalty "override" — meaning that royalties don't start until royalties from the producer's records have first covered an amount equal to the annual salary. Some producers do not start receiving royalties until the la- bel has recovered its out-of-pocket production costs. Some independent producers are given all their production expenses by a record label and receive a flat production fee plus royalties, or possibly no fee, just royalty

income.

The producer of serious music must possess many of the same qualifi- cations as the pop record producer, plus a few more. This professional has to be as good a score reader as the conductor and know details of the score being recorded. Ideally, the producer in the booth should be the

twin of the producer on the podium, so close must they understand each other and the musical interpretation the literature requires.

To qualify to produce classical music recordings, the musician must have training identical to the kind described above for serious music con- ductors. Additionally, the producer must have knowledge of technology, perhaps even acoustics, sufficient to give direction to the mixing and mastering technicians. Few record producers possess all these talents. Those who come closest are the ones the major labels call for repeatedly in this highly specialized work.

THEATRICAL PRODUCER-DIRECTOR

CAREER DESCRIPTION — The theatrical producer-director is one of several types of "hyphenates," a term used in the industry to describe in-

dividuals whose talents may include everything from writing scripts and music to turning out complete productions. Hyphenates are active on Broadway, in Hollywood films, and music video.

Theatrical producer-directors usually work free-lance or get hired through an independent production company. On Broadway, they spend most of their time searching for "properties," show-biz talk for a script or, more commonly, a book or play on which a script might be based. Simul- taneously, theatrical producers are searching for money to stage their properties. On Broadway, the hit-to-flop ratio is at least as bad as one-to- ten. But, each year, enterprising producer-directors find "angels" anxious

to spend their millions and get into show business.

QUALIFICATIONS, PREPARATION — Producer-directors who have lo- cated what they think is a strong property and willing backers will be actively searching for "bankable" stars whose marquee value will help sell tickets. Many successful producer-directors have emerged from the field of choreography and dance; their names alone attract investors and star performers. Some producer-directors of high achievement started their careers as songwriters, e.g., Rodgers and Hammerstein.

Producer-directors in the movie field work much like their brothers and sisters on Broadway: they must find properties, investors and strong per-

430 CHAPTER TWENTY-SIX

formers. In respect to music videos, that medium draws its producers from Broadway, Hollywood, commercials, college and community the-

atres, and left field. With a little luck, the producer-director turning out musical productions

and videos will have some competence in music. Since no producer-di- rector can know it all, the smart ones engage specialists to cover all the

bases.

EMPLOYMENT PROSPECTS — Beyond what has been stated above, it is not possible to generalize about job openings in this field. About all

that can be said is that an individual who approximates the kind of versa- tility the field demands will attract the attention of employers. Only a few producer-directors are hired on yearly contracts with predictable

salaries. Producers and directors don't get jobs. Rather, they take on

projects; most of the time they have to invent their employment. Even

established professionals in the musical theatre experience feast and

famine.

As with the field of recording, the musical theatre continues to draw

artists and investors because of the omnipresent possibility that they

might share in a hit. Whether or not a producer or producer-director has

invested in a show, this key person invariably shares in the royalties that

accrue from a successful production. On Broadway, this sharing is guar- anteed by contracts negotiated through the Dramatists Guild and can

aggregate more royalties than a million-selling record album.

VIDEO/FILM DIRECTOR

CAREER DESCRIPTION — Some versatile artists who experience suc- cess in both the fields of music and theatre may turn to directing videos, TV musical shows, and filmed musicals. Producers and directors who graduate to these levels of employment will have spent years in related

activities such as songwriting, live musicals, record production, and com-

mercials. Many directors, of course, have little direct knowledge of music.

They pick up what musical knowledge they have as they go along — and are smart enough to rely on specialists to fill in the gaps.

QUALIFICATIONS, PREPARATION — If the ultimate goal is directing movie musicals, the aspirant may find a good way to learn the craft is di- recting low-budget videos. Developing a respectable track record in this

arena may lead to opportunities for more elaborate projects. Many film producers and directors become involved in movies first as screenwriters.

Many movie writers come to believe that film directors have, in the past, destroyed their work and henceforth demand the right to direct their own

scripts. If a person manages to succeed as a writer-director, the veteran

may graduate to the status of a "triple-hyphenate," a writer-producer-di- rector.

EMPLOYMENT PROSPECTS — Though supply exceeds demand, there is always room for a hustling, talented director in tune with contemporary

taste. But it is easy to fall from favor after a flop or two.

CAREER OPTIONS 431

PERFORMING CAREERS

SINGER

CAREER DESCRIPTION — In the field of popular music, singers find ca- reers, not only as soloists and recording artists, but as group singers, on commercials, and as "production" singers, singing actors or singing dancers. As most singers have already discovered, a career often starts at school or college where the individual can learn quite early whether audi- ences respond well. In the pop field, these amateur and semiprofessional beginnings are often combined with instrumental performance or songwrit- ing, sometimes both.

Steady employment in the singing field is almost unknown. Performers bounce from job to job, hoping that, over a period of time, work will come their way often enough to form reasonable continuity.

Professional singers practically never sit down very long in one city; their lives are filled with almost incessant travel. The longest engage- ments occur when an artist remains in one location for a month or two to complete recording an album. Stars who play Las Vegas are booked in for two to four weeks. But most other singing jobs in the pop field are strings of one-nighters or week-long engagements.

Singing careers that go anywhere invariably involve a mix of live ap- pearances and recordings. Established recording stars also appear, occasionally, as we know, on television, sometimes in commercials and films. Few experiences are more exhausting than constant traveling, and a professional singer's first concern, under these strains, is to stay healthy. The second concern is, or should be, finding a competent per- sonal manager. Third priority is the ongoing search for good material.

Even singers who write most of their own songs must somehow find outside sources to feed their acts. Non-writing singers never stop search-

ing for good songs. Writers and publishers know this and follow singers around constantly, leadsheets in hand, trying to persuade them they have just what the artist is seeking. Successful singers are also plagued with enthusiastic, even overbearing fans who want to get to them. These mul- tiple pressures can debilitate a performer and only the hardy can survive.

But those attracted to the field seem to sustain themselves on the ap- plause and adulation of their audiences — not to mention their money.

Even singers with competent managers must give some attention every few days to business affairs, if only to define acceptable parameters for

their managers. Also, singers must work constantly with arrangers and musical directors to assure themselves that their performances are pre-

sented in the most effective way. Major artists must also find time for costume fittings, makeup jobs and lighting tests. All touring artists find it difficult, often impossible, to locate edible meals while traveling, and must guard their health against junk food and too many calories.

QUALIFICATIONS, PREPARATION — To qualify for a successful career as a professional singer, it is helpful for the aspirant to be able to sing. But any audit of the field will reveal that dozens of non-singers manage to

432 CHAPTER TWENTY-SIX

make a living as "singers." Individuals with no recognizable musical talent sometimes win an audience. This usually occurs when the public becomes attracted to a performer, not for singing ability, but because of the individu- al's personality. This is the only way to explain the great popularity of such "singers" as Dean Martin, Cher, even Louis Armstrong. Some performers can sing well and also be appealing personalities,

e.g., Neil Diamond, Dolly Parton. Still others have superb vocal instru- ments but lack charismatic personalities — Jack Jones, Ella Fitzgerald. But if an aspiring singer lacks both good singing ability and a winning per- sonality, the aspirant would be well-advised to shift professional goals. Even a wizard of a manager cannot sell a performer lacking strong audi- ence appeal.

In classical music, most artists who qualify for work have spent several years studying voice in college or with outside teachers. College music majors often pursue the masters degree, majoring in voice or, perhaps, choral music. A graduate school singer whose goal is teaching may go for the D.M.A. (doctor of musical arts) degree.

Should the "legitimate" singer aspire to opera, the performer may opt, not for a university degree, but a music conservatory diploma. The latter provides concentrated training in performance and eschews most liberal arts courses. Opera students must acquire facility in several foreign lan- guages, with French, Italian and German being the most important.

EMPLOYMENT PROSPECTS — The job outlook for singers ranges from grim to excellent. Unfortunately, the fewest opportunities lie in tfie fields

for which universities and conservatories are turning out the most stu- dents — opera, concerts and recitals. While the solo recital field is about dead, some 200 to 300 professional singers find at least seasonal em- ployment. In New York City, we have about a dozen artist "managers" who provide employment to classically trained singers in opera, recitals, community concert series and with symphony orchestras. The employ- ment prospects for the thousands of university graduates, fresh from four to eight years of study, are particularly grim. New York's artist managers are unable to keep busy the artists already in their stables and have al- most no interest in auditioning new artists.

In the field of opera, artist managers place some of them; others are in such demand, they book themselves — opera companies outbid each other for their services. Unfortunately, only a few trained singers qualify

for leading roles with good companies. Thousands of university gradu- ates aspiring to careers in their fields are disappointed each year, turn to school teaching, voice coaching or church choir jobs.

Churches offer many jobs to trained singers who can also direct choirs. Jobs in this field pay from $25 to $500 a week and up. Some singers who are unable to develop the performing careers they had planned turn to school teaching, then pick up singing jobs at weddings and funerals. Practically all of this work is nonunion.

Musical theatre sometimes offers an employment option for trained singers, particularly if the auditioners are young, of the right physical size

and shape, and able to act and/or dance. While New York producers au- dition and hire many new singing actors each season, more extensive job

CAREER OPTIONS 433

opportunities are found in the dozens of regional and dinner theatres sprinkled across the land. Most of these jobs are under Actors Equity As- sociation (AEA), which sets scales and working conditions for singers performing in musical shows and plays.

Aggregate wages paid Equity actors and singers by regional and din- ner theatres exceed wages to union members working on Broadway. Aspiring singers sometimes begin their professional careers as non-Equi- ty supporting players in regional and dinner theatres, then graduate to leading roles and Equity wages. The best of these go on to Broadway. When it comes to job prospects for straight pop singers, we have yet

another set of conditions. The difficulty here, as pointed out, is that large segments of the public fail to distinguish between the truly gifted singer and the non-singer who gets by just on personality — or sex appeal or publicity. The aspiring pop singer, rarely bothering to get objective ap- praisal from a qualified teacher, may not know the quality of the "instru- ment." Despite this lack of resources, the singer may insist on trying to crack the entertainment business.

The only way to test personal appeal is to expose the artist repeatedly before all kinds of audiences, even for free, for at least two or three years. If audiences have not demonstrated a strong favorable reaction, and if no artist's manager has stepped forth enthusiastically to take the career in hand, the performer should probably change professional goals. A pop singer wastes an important opportunity by bypassing a test in

the local community. It is risky to ignore local receptivity, make a fancy demo, then descend on big city record producers. Producers don't need the aspiring singer who has not yet proved something with the hometown audience. If the home folks don't respond, who will?

In addition to these recommendations, a pop singer today has one oth- er way to break in that beats them all: composing songs. Since the Beatles in the mid-1960s, the preponderant number of new singing artists breaking big in the business have been performing composers. These artists may not be either great singers or top composers, but the combi- nation enchants audiences and these versatile artists sell most of the records today.

INSTRUMENTALIST

CAREER DESCRIPTION — Among the recognized professions, music is unique. Unlike such fields as medicine, law and engineering where one can easily define a "professional," in music professional musicians in- clude individuals whose talents and employment are worlds apart. At one end of the scale there is the saloon musician who plays for tips and drinks. At the other end might be the studio musician who earns $100,000 or more a year. In between these two extremes lie about 400,000 other instrumentalists whom we might classify as professionals or semiprofessionals.

The semiprofessional musician tries to keep employed full-time at a non-music job and picks up occasional playing gigs when possible. The semiprofessional usually works for very low wages and accepts long hours and low pay because music is an avocation, even recreation. Most

434 CHAPTER TWENTY-SIX

semiprofessionals lack the talent, training, opportunity or ambition to be-

come full professionals. But then there are some amateurs and semipros whose talents equal those of top performers, but who prefer non-music careers.

When going beyond the ranks of the semipro to examine the careers of individuals who consider themselves professional musicians, one finds that the majority of them are occupied only part-time as instrumentalists. Even musicians who say they are employed as instrumentalists "full-time" average only three to four hours per 24 and fill out the balance of their workweek with other professional activities.

Practically all professional musicians do at least some teaching. Ac- complished musicians often have more students waiting for openings than they can accept. Student fees not only offer income to supplement playing jobs, but can often provide at least minimum sustenance during periods when the musicians cannot find playing jobs.

The working hours of a full-time professional may average only three hours a day, but most musicians are busy at least 40 hours a week. Be- sides setting hours aside for teaching, professionals usually engage in regular daily practice, continuing throughout their careers to polish their

skills, expand their repertoire. In addition to these musical activities, a large percentage of professional musicians are actively employed partly or entirely outside of music. From choice or necessity, many pros moon- light (more often, daylight) at jobs whose hours can be flexible, thus providing release time for them to accept whatever music jobs come along. For this reason, many musicians combine music careers with side- line work in sales, e.g., real estate and insurance.

Many professional musicians manage a different kind of moonlighting: they accept every attractive playing job that comes along, then fill in the balance of their workweek in music-related employment such as compo- sition, arranging, copying, perhaps artist management or record production. Many professional musicians work fairly regularly as instru- mentalists, while filling their daytime hours as music merchants — selling instruments, equipment, etc. Thousands of musicians combine playing and non-playing careers and enjoy double incomes.

Playing jobs vary widely in prestige and pay. Employers seem to find an endless supply of musicians who will perform long hours for low wages — apparently because many performers think of their pay as sec- ondary to the pleasure of performing, whatever the circumstances. It is

this avocational, unprofessional attitude of musicians that makes it impos- sible for the AFM to control a lot of musical employment. Also, many musicians do not understand the advantages of what unionists call collec- tivism. So musicians outside the AFM usually accept work for shamefully low rates, rarely graduating to professional fees and professional working conditions.

Another aspect of union vs. nonunion employment is found among AFM members who will accept jobs below union scale whenever they be- lieve they can get away with it. These individuals try to have it both ways — and often do. The extent of union control of professional musicians varies greatly among AFM locals. Critics of the AFM argue that the union could do a better job of controlling professional employment if it would

CAREER OPTIONS 435

make lesser demands upon the employers. AFM officials counter with the argument that musicians, despite periods of training comparable to medi- cal doctors, are still asking hourly wages (except in recording) that are generally lower than those for union plumbers and truck drivers.

An important consideration for those planning careers as performers is the matter of travel. Most musicians must move around a lot. It can be fun when they are young, but become intolerable after several years of the gypsy life. Another important concern is the seasonal aspect of most per- forming careers. Many symphony, opera and dance company musicians are laid off in the summer months. Broadway pit musicians know only seasonal employment, which generally means the life of a particular show. Instrumentalists working clubs on so-called "steady engagements" are delighted when a job extends beyond a few weeks.

Another unattractive aspect of the performing instrumentalist's career

is being called upon to perform music the musician doesn't like. Many symphony musicians suffer greatly when recording commercial jingles or country music. The jazz musician often feels pain when working a rock or country music date. Even in the symphonic field, most orchestras today vary their repertoire with a pop series each year. They will program just about anything that will sell tickets, and the symphony musicians who spent 15 years learning how to play Mozart are uncomfortable with their assignments.

QUALIFICATIONS, PREPARATION — Aspiring musicians rarely have a clear understanding of what is required of them to succeed as profession- als. Many music teachers also lack adequate information. The difficulty here is the distinction among the variety of playing careers available. The semiprofessional or part-time professional may have little or no training but sufficient natural talent to get occasional jobs. But the young instrumental- ist who has ambitions for a full-time, fully professional playing career must qualify at an entirely different level. First, the performer must be endowed with outstanding musical talent. Instrumental study should begin in early

childhood and continue throughout the career. Until recent decades, many performers in the serious music field as-

pired to careers as solo recitalists and concert artists. Those who did not attain those goals usually ended up as section players in symphony or- chestras.

To qualify for the concert and symphonic field, students today will usu- ally complete at least the masters degree, often the doctorate, in performance (conservatory graduates normally complete a "diploma" pro-

gram). Whatever amount of formal training the musician might undergo, the working professional must be familiar with performance practices of both serious and popular music. Even symphony string players today, the last group to enter the twentieth century, are now called upon to perform in pop, if not jazz, styles. Practically all symphony orchestras have a pops series where travelling artists bring in charts ranging in style from blues to country. And musicians in the theatre and recording fields are expected to be able to perform any musical idiom in the correct style. The old days of the "classical" and "jazz" musician are about gone. All pros now must cross the line.

436 CHAPTER TWENTY-SIX

Young musicians, particularly from the folk, country, soul and jazz fields, often ask if they really have to be good readers. We still have non- readers in these fields, some of whom are financially, occasionally artistically, very successful. But their success is often based more upon their personality, composing, or strong natural talent. The great majority of full-time professional instrumentalists are expected to be musically lit- erate and read at sight what is placed before them.

Whatever professional goal the musician aspires to, whatever the level of talent and training, to build a career with continuity the instrumentalist will discover the field demands a particular kind of temperament. Besides having a personality that helps work well with others, the real pro must be willing to work very hard for long years and persevere during periods of disappointment. Just "liking music" is not enough. Most truly accom- plished professional artists reach their goal through a love, even a passion, for music-making.

Yet another personal attribute is essential for the instrumentalist who strives for the highest-paying fields, particularly symphony and studio work: strong nerves. Young musicians shooting for the big time are gen- erally unaware of the working atmosphere in the recording field particularly, which is one, not of just high tension but sheer terror. Those jobs demand perfection in performance. There is minimum tolerance for error and none whatever for carelessness. A top studio player is allowed an occasional flub, but is subject to being quickly displaced, sometimes forever, by a competitor who can demonstrate even greater reliability. Nerves of steel come in handy, but before the faint-of-heart abandon their dreams of the big time, it should be reassuring to remember that artists of international stature — musicians, dancers, actors, have told us that con- trolled tension aids artistic performance.

EMPLOYMENT PROSPECTS — While there are thousands of unem- ployed and underemployed musicians, the truth is that there is a scarcity in some areas. Employment prospects depend, not only on a musician's talent and training, but the particular instrument:

Keyboard Players — There is a daunting oversupply of first-rate con- cert pianists and recitalists. Conservatories and colleges continue to turn out thousands of these artists, but their employment prospects are not just poor, they are almost zero. Even the old strategy of "buying" a New York Town Hall debut rarely works anymore. There is also an oversup- ply of piano teachers in most communities, except those who have ac- quired the innovative pedagogical techniques of group instruction. Most communities have an abundance of restaurant, club and saloon pianists. But where are the pianists who play really artistically, even in one style? Traveling extensively in this country and Europe, one can be continually astonished to rediscover just how incompetent most working pianists are — they may know the popular standards, but they play the wrong chords, wrong tempos, wrong style, wrong melody, can't improvise cre- atively, and would be hard-pressed to get through an easy piece of Cho- pin. Conservatories and universities have graduated tens of thousands of "pianists," but very few of them even approach the level of versatil- ity and competence required of the working professional keyboard artist.

CAREER OPTIONS 437

There are M.A.s and even D.M.A.s who, if asked to improvise "Happy Birth-

day" in two different keys, would risk cardiac arrest.

Our schools do graduate good pipe organists, but many of them would stand dumbfounded in front of a modern electronic organ or keyboard synthesizer — standard hardware today for keyboard players. In the the- atre music field, there is a shortage in most communities of keyboard artists who can sight-read a traveling Broadway show book, handle the written-out parts and also play comp style. In the recording field, there are brilliant keyboard artists, but an actual shortage in most cities of musi- cians who can handle such diverse styles as jazz, pop and rock. Even more scarce are those pianists who can handle these styles and Mozart or Chopin or Gershwin's concert pieces. If a keyboard artist seeks work in the recording field (and even in pit orchestras), employability will be in- creased by facility in at least some of the less sophisticated performance synthesizers. Many keyboard players work regularly now just specializing in performing real-time synthesis.

Finally, keyboardists can often find employment as accompanists. Some pianists consider accompanying second-class employment, but re- ally competent performers are often in demand by soloists in both the classical and pop fields.

Guitarists — There is a huge oversupply of amateur and semiprofes- sional guitarists who want to become full-time professionals. Many of these individuals do not understand the difference between an amateur and truly professional performing artist. Most of them have been misled by the rock guitarists whose entire repertoire consists of three chords. There is an actual shortage of guitarists who can perform artistically, even in one style, and fewer guitarists who can negotiate, at a fully professional level, three or four of the basic musical styles. Probably less than 10 per-

cent of guitarists can read music at a level expected of other professional musicians. Any guitarist who is a good reader and who can perform artis- tically in the basic idioms of jazz, blues, rock and country will probably have to engage a telephone answering service to handle the job offers. This kind of competence and versatility is in demand everywhere, from the neighborhood saloon to the big-time recording studios.

Percussionists — Even before rock and roll, the world was oversup- plied with drummers. But still today, there is in most communities an undersupply of fully competent, versatile percussionists. Directors and contractors can rarely find a drummer/percussionist who can really read well and who can handle, not only conventional percussion, but mallet in- struments and timpani. Many drummers play great jazz or rock or Latin rhythms, but don't really know how to play concert or show music.

Few percussionists take the time to seriously study the art of timpani tuning and playing or know much about non-western musics. The percus- sionists who can do most, or all of the basic musical styles well, and are good readers, are rare in most areas and in high demand. Percussionists who are the next most active group are those who come closest to the prowess and versatility of the "complete professional percussionist." Drummers who are unwilling to undertake this level of training will contin- ue to compete with thousands of other drummers of like mind. Competi-

438 CHAPTER TWENTY-SIX

tion among "average" musicians will always be great. Wind Instrument Players — The bloated school band programs of re-

cent decades have produced a large surplus of good wind instrument performers. There is even an oversupply of fully-qualified wind players with masters, even doctors degrees. When an opening is advertised by a professional symphony orchestra on, say, clarinet or trumpet, it is not un- usual to see 100 applicants seeking to audition. A respectable percentage of that group would have professional experience that would qualify them for serious consideration. In the recording studios, there is a great abun-

dance of wind players scrapping for those high-paying jobs. One area of wind playing is not over-crowded, as a rule: saxophone players who can really play the clarinet, flute and, perhaps, a double-reed instru- ment. Extensive woodwind doubling is expected in the show music field and in recording. Woodwind doubling by saxophone players is much less common in film scoring. Since it takes a lifetime to master even one instrument, it is understandable why top doublers are so scarce. Those that come closest to really playing several winds get a lot of work — and when they do, they earn, through their doubling ability, 25 percent to 100 percent above basic scale.

In any discussion of career opportunities for wind players, mention must

be made of the hundreds of jobs open for them in military bands. For cur- rent enlistment information, inquire of your local military recruitment offi-

ces.

String Players — In this country there is a serious shortage of top pro- fessional string players (violin, viola, cello, double bass). Proof of this is

readily observed with a glance at the "Help Wanted" ads in the Interna- tional Musician, official journal of the AFM. When the school band movement swelled following World War II, kids took up the flute and trum- pet, not the violin and cello. This national shift away from strings cut off much of the supply, and practically all major orchestras now outbid each other for the services of string players who can meet the stringent de- mands of symphonic playing.

Conservatories continue to accept and graduate performers who be- lieve they are headed for a career as a solo concert artist or recitalist. Teachers warn their students that the field is difficult to crack. But they should not say that employment prospects are poor, they should say that they are about zero. Booking agents already have overcrowded stables of fine concert artists, and they rarely take a chance on a newcomer. So the thousands of disappointed solo artists, some of them outstanding tal- ents, look around for a line of retreat.

Hundreds of string players find full- to part-time employment in Ameri- ca's many symphony orchestras. For details, review Chapter 14.

Performers heading for careers as soloists in the classical field will find

it difficult to break in without the aid of an agent or manager. Concert

agents and management companies most active are listed in the annual directory of Musical America. That useful publication also includes the

names and addresses of symphony orchestras and opera companies here and in Europe.

The most direct route for an instrumentalist in any field to find work is through establishing a reputation for being able to handle whatever op-

CAREER OPTIONS 439

portunities come along — and a reputation for being better qualified than the competition. An instrumentalist of genuine ability becomes known throughout the musical community very quickly. That person is almost im- mediately conspicuous — and other players, directors and contractors mark that musician as the one to call. Jobs can be scarce, but when they come along the really good players are in demand. A musical reputation can work even more quickly the other way around:

less talented performers, weak readers, undependable musicians, earn overnight reputations, too. They may never learn why the telephone does not ring, for who wants to notify an individual that he/she can't cut it?

Musicians who want to earn a full-time income just from playing their instruments will have to struggle in a vastly overcrowded field.

TEACHING CAREERS

Studio Teacher College Music Instructor

School Music Educator Music Therapist

Music Education Supervisor

Every musician is a teacher. Composers, performers, directors — all those who make music are involved, directly or indirectly, in teaching oth- ers to do what they do. No other sector of the music profession includes within its ranks so diverse a group of individuals, ranging from the inspir- ing master teacher to the outright charlatan. This disparity in quality of music teaching will probably continue because practitioners are not ex- amined, except in grades K through 12, for their qualifications, nor are thjey licensed.

STUDIO TEACHER

CAREER DESCRIPTION — The l^nd is populated with neighborhood music teachers who offer "Lessons in Your Home or Mine on Accordion, Violin, Piano and Voice." Perhaps five percent of these practitioners are really qualified at the professional level. The others should be avoided by the serious student. Quite another kind of private teacher is the real pro

who is an active performer or writer engaged in teaching as a sideline. Practically all active professionals teach at least part-time. The best of them fill every vacant hour in 40- to 60-hour workweeks and experience excellent income. Others, unable to stand an unending stream of kids passing through their studios, will accept only a limited number of pupils.

Fully professional teachers are able to demonstrate artistic perfor- mance to their students, with teacher and student often performing side by side during the lesson. Some teachers have developed new pedagog- ical techniques in group teaching. Those who have mastered this kind of pedagogy claim that they can teach a group of three to five students more effectively than one-to-one.

440 CHAPTER TWENTY-SIX

QUALIFICATIONS, PREPARATION — Genuinely qualified music teach- ers have completed four to eight years of college-level music study, are competent writers or performers themselves, possess sound pedagogical techniques, and know how to motivate students. Persons so qualified have no difficulty finding students.

Unfortunately, students and parents often are unable to distinguish be- tween the dilettante and the fully professional teacher. This often accounts for the hordes of talented kids whose families dump thousands of dollars into music lessons only to have their offspring come up several years later with minimum competence. Fraud is presently widespread. "Consumers" may well need protection in this field.

EMPLOYMENT PROSPECTS — How does a qualified musician build up student clientele? By building a strong reputation in the community, first

as a musician, second, as a teacher. Students will find such a person

over a period of time. That musician will also become known to school music educators and they will make recommendations to their pupils.

SCHOOL MUSIC EDUCATOR

CAREER DESCRIPTION — Music teachers employed in grades K (kindergarten) through six have responsibilities different from those work-

ing in junior and senior high schools. Most school districts try to finance a sufficient number of general music teachers for the lower grades to pro- vide at least some music listening and participation for every child: singing, movement to music and improvised performance on simple rhythm instruments and toys. Innovative music educators discovered some years ago that many students could be taught academic subjects, including reading and arithmetic, through music. Teachers skilled in these techniques are in demand.

Teachers in the junior and senior high schools divide into two groups. One teaches mostly "general music" — music appreciation, music read- ing, perhaps some singing. The second type of music educator at this level is generally either a choral director or instrumental music director.

Choral directors in many schools will be in charge of developing mixed choruses, boys' glee club and girls' glee club.

Since the late 1960s, students have pressured their teachers to direct

"show choirs." Some of the most popular show choirs, particularly in high schools, rehearse and perform pop standards, sometimes current pop tunes, then choreograph their movements and stage their performances (shows) with costumes, special lighting, sometimes even scenery or rear

projections. Few show choirs are content with just piano accompaniment; most of them also use percussion, bass and guitar. Joint programs with

the high school's "stage band" are common. Students and parents in many communities get as turned on by these activities as they do by the school's athletic teams.

Some choral directors feel that the show choir is commercial and unre- lated to "music education." Some of these same critics, however, have organized "jazz choirs" or "jazz choruses." They generally disdain straight

CAREER OPTIONS 441

pop music and search for charts that are more jazz- or blues-oriented. Some groups of this kind even get into singing jazz improvisations. Jazz- type singing groups also use rhythm section accompaniments. These kinds of contemporary choral activities have attracted large numbers of aspiring music educators who favor twentieth century repertoire.

Students who get turned on to band music in high school and junior college often decide that their best opportunity to become professional musicians is to major in music education with a concentration in instru-

mental music pedagogy. They have observed at firsthand the kind of work their high school band director performs and that is what they want

most to do: direct a concert band, marching band, pep band, and, proba-

bly, what educators call a "stage band." From August through November, high school band directors' lives are generally consumed by charting, ar- ranging and rehearsing their football bands. During these frantic weeks,

music educators often feel they are not so much musical directors as drill sergeants, arrangers, copyists and entertainment directors for the

school's athletic department. Following football season, these teachers

must hastily prepare a Christmas program, then springtime music festi-

vals involving their concert bands and stage bands. When summer vacation finally arrives, they may spend a week or two with their families, then use the balance of the "summer off" trying to get equipment repaired

and shows planned for the fall football season.

While bands dominate music education, some teachers have the added responsibility of organizing and directing string ensembles and or-

chestras. If the community lacks a strong "feeder" program, high school

instrumental directors find it necessary to start string players from

scratch. High school music educators are accustomed to 60-hour work-

weeks, but many appear to thrive on their heavy loads.

Music Education Supervisor — Most school districts employ at least one "music supervisor" to administer K-12 educational programs in their districts. The general practice is to hire one supervisor for choral, and one supervisor for instrumental music programs. The role of the supervisor is

to guide formulation of educa- tional policy, assist school principals in hir-

ing new teachers, fight for and control music budgets, and offer pedagogical guidance to the music educators employed in their districts.

Music supervisors also administer acquisition and circulation of central

music lending libraries for their districts. These individuals are also in-

volved in organizing music festivals, reading clinics and contests. Some supervisors are employed, not for the school year, but on 12-month con-

tracts.

QUALIFICATIONS, PREPARATION — Except for the field of music thera- py, school music teaching is the only kind of employment where applicants are required to have a college degree in music. School music

teachers (grades K through 1 2) in practically all states are also required to have a teaching "certificate" or teaching "credential." Some states will automatically certify a teacher in a particular music teaching field if the

teacher holds a baccalaureate degree in music from a state-accredited

college or university. Other states require that college graduates in music

442 CHAPTER TWENTY-SIX

also successfully pass a state-administered certifying examination. Types

of teaching certificates vary from state to state, but usually include "gen-

eral music certificate," "elementary school certificate," "general secondary

credential," "choral music certificate," "instrumental music certificate," and

"junior college music teaching certificate." In addition to a college degree and teaching license, those who do

most of the music teacher hiring (school phncipals, usually) look for one

or more of these qualifications or attributes: a good reputation as a teach- er; high grades in college and on the certifying examination; outgoing

personality — and an applicant who works cheap. Many principals will hire a low-cost teacher over a teacher of long experience because they

want to (or must) keep down their payroll expenses. For this reason, fine teachers of long experience sometimes find it more difficult to change jobs than teachers fresh out of college who will accept minimum salaries. This practice saves money, but deprives students of the best instructors.

EMPLOYMENT PROSPECTS — Until about 1970, a reasonably talented college student majoring in "music education" could expect to find a full-

time teaching position upon graduation. There were more job openings in many fields, including music, than qualified applicants. But since that time, the employment prospects for school music teachers have changed radically, and no improvement is anticipated in the near future. A handful of top universities with distinguished track records of turning out fine

teachers continue to place most of their graduates. But even they, and

nearly all the other post-secondary institutions offering music teaching de-

grees, have difficulty placing their students. Jobs that are open now usually occur in rural communities with poor school financing histories — or inner-city ghettos where most teachers find teaching very difficult.

Pressure on school budgets will probably continue the trend in most

states of decreasing employment opportunities for individuals seeking teaching jobs in music and the other arts.

COLLEGE MUSIC INSTRUCTOR

CAREER DESCRIPTION — Before describing careers in college and university music teaching, the junior colleges should be discussed. Most

junior colleges, or community colleges, offer such courses as music ap-

preciation, music theory, class piano, perhaps class guitar, band and

"stage band." Junior colleges that offer a two-year "associate in arts" de-

gree in music may also offer such courses as music arranging, music history — and music business courses. Individuals aspiring to employ- ment in one of these junior colleges are usually required to teach about

20 contact hours a week, almost double the teaching load of music in-

structors in four-year colleges and universities. Because of this extremely

burdensome schedule, few junior college music teachers have adequate time to prepare for their classes as well as rehearsals, and they are

among the most overworked teachers in the music education field. Quite a different kind of employment is found at four-year colleges and

universities, where full-time music faculty members average about 12 contact hours a week. Practically all music instructors at this level special-

CAREER OPTIONS 443

ize in one particular aspect of music, and most, if not all their teaching

and directing responsibilities relate to that specialty, e.g., theory, choral

music, instrumental music, applied music instruction, music history, per-

haps jazz education. They may only teach three or four different classes or ensembles a week, but their "off time" is filled with preparation for their

hours in the classroom or rehearsal hall. Most university-level music

teachers claim to have a workweek that averages well above 48 hours.

Teachers who have attained higher academic rank, e.g., associate or full professor, are normally assigned somewhat lighter teaching loads. But

the senior professors are often even busier than their colleagues of lower

academic rank — engaged in research and other creative activities such as writing music, articles and books.

QUALIFICATIONS, PREPARATION — Practically all states require that their junior college teachers have not only a masters degree in music

from an accredited institution but, in addition, a junior college teaching

certificate. Musicians applying for "the choral job" or "the band job" at a

particular junior college are expected to have established reputations in

their field of specialization. Such reputations are usually acquired first at

the high school level before the aspirant is considered for a faculty posi-

tion in a junior college. Prospective faculty members are normally hired by the junior college president, upon recommendation of the resident mu-

sic faculty.

Four-year colleges and universities normally hire only those individuals

who have earned a terminal degree in music, e.g., D.M.A., Ed.D. or Ph.D. Some prestigious schools occasionally hire faculty members who lack a terminal degree, but whose reputations as performers, composers or scholars are equal in prestige to a doctor's degree. Many colleges and universities will not consider prospective faculty who lack publications; ei- ther music compositions/arrangements or writings about music or

music-related topics are considered "publications." These same institu- tions tend to waive this requirement when they are evaluating prospective members for their "applied music" faculty.

EMPLOYMENT PROSPECTS — During the 1960s, when college enroll- ments more than doubled, quite a number of additional instructors were

hired. When college enrollments tapered off, then leveled or dropped in the mid-1970s, teaching job openings fell sharply. In some colleges and universities, funding for new faculty positions was halted. Some institu- tions were even forced to fire tenured instructors. The number of music

majors in American colleges was also influenced by increasing aware- ness that many college-level music studies appeared to lead to no job. But the individual aspiring to college-level music teaching now would be mistaken to conclude that no career opportunities exist. While we are oversupplied with aspirants holding even doctoral degrees in theory, his-

tory, musicology, piano, and choral directing, some colleges and universities have difficulty finding fully-qualified instructors (with doctor-

ates) in certain specialties. Though the job picture is far from promising,

the areas of specialization that are least crowded include ethnomusicolo-

gy, music therapy, jazz education, electronic music, pop choral music,

444 CHAPTER TWENTY-SIX

improvisation, sound synthesis, recording, and the music business. If more of our colleges and universities decide to change their curriculums in response to the radical changes in the music profession since the de- velopment of mass media, musicians aspiring to college teaching in the areas just listed will be in great demand. But even they will probably be expected to earn doctoral degrees — and "be published" or have re- spectable track records as professionals in contemporary music and the music business. This development is incredibly slow in coming. We may continue to limp along until sufficient pressure comes from students who seek an education that relates to what is really going on in the outside

world of music-making.

MUSIC THERAPIST

CAREER DESCRIPTION — Another kind of music educator is a music therapist. The National Association for Music Therapy Inc. defines the profession as involving "the use of music in a prescribed manner to help individuals with emotional and/or physical disabilities function more suc- cessfully in the world in which they live." Music has been used from the beginning of time to change human behavior or heal. But following World War II, the trained music therapist became a recognized professional.

Since about 1950, qualified music therapists have been using musical techniques therapeutically in a prescribed scientific manner. A variety of techniques are employed. The National Association for Music Therapy (NAMT) lists these examples: "Group ensembles using folk or traditional instruments, orchestras and bands, choruses, individual instruction, rhythmic activities, music theory and composition instruction, general mu- sic. Participation can be either passive or active, but active involvement

usually develops as the therapy sessions progress."

QUALIFICATIONS, PREPARATION — To qualify as a professional music therapist, the aspirant must graduate with 128 semester-hours credit in a university accredited to offer this specialized curriculum. The National As- sociation of Schools of Music (NASM) accredits qualifying universities which offer four-year degrees in the field (some universities offer masters and doctors degrees related to therapy). Candidates should possess strong motivation for a life of teaching, even healing. Because of the na- ture of the therapists' clientele, therapists must possess a lot of self-con-

fidence, emotional stamina, patience and perseverance. Love of people

would certainly be helpful.

EMPLOYMENT PROSPECTS — NAMT believes that employment op- portunities are presently good for fully qualified therapists and that the field will continue to grow. Among the employers of music therapists: psy- chiatric hospitals, mental retardation centers, physical disability hospitals,

physical disability schools (for the blind, deaf, etc.), community mental health centers, day care centers, special education schools, nursing homes and special service agencies.

Part of the therapist's training occurs in the senior (or fifth) year of uni-

versity study when the candidate interns in an institution and gains clinical

CAREER OPTIONS 445

experience under the supervision of a registered music therapist. Upon completion of an accredited course of study and the internship, the thera-

pist can become a "registered" music therapist (most employers hire only registered music therapists). Professionals in the field generally earn

salaries comparable to public school teachers but rarely enjoy privileges

of tenure.

MUSIC-RELATED CAREERS

Some of the careers listed here relate directly to music, others only indi- rectly. Some are open to trained musicians; others offer employment opportunities to non-musicians. The more prevalent music-re/afec/ ca- reers are discussed in the pages following.

WORDS AND MUSIC

LYRICIST — Individuals who are talented in expressing themselves lyri- cally can develop careers writing words to songs. It is not possible to

describe a typical career for a lyricist because no two are alike. The first difficulty in attempting to make it as a lyricist is the same one confronting the pop singer: almost all of us think we can do it. This conceit among songwriters, particularly lyricists, is reinforced every day by the quick pop-

ularity gained by songs lacking even basic craftsmanship, let alone any

artistic quality. Employment prospects of lyricists aspiring to full-time ca- reers are not promising for anyone lacking distinctive creative talent with

words. Unless writers are richly endowed, their careers may sustain conti- nuity of income only if they become professionally active also as a composer or in some other music-related work such as publishing, pro- ducing, artist management, etc. Given talent, the songwriters who enjoy careers with continuity are the ones who really work at it.

Some lyricists are discontented with just churning out words for pop songs and aspire to writing for the musical theatre. If these writers have a

genuine sense of theatre and a love for what takes place there, they will

probably associate themselves with other creative talents of similar tastes

and professional goals. This often occurs, as it did with Cole Porter,

Richard Rodgers and others, when the writer is still in college, where stu- dent-written shows provide vehicles for novices to learn their craft. When a writer has a feeling for how a song can contribute to the

progress of the drama on stage, the writer will probably take the next step and become involved in collaborating with others in writing the "book" for shows, a term used on Broadway for the text of a musical play. Among the most distinguished (and wealthy) lyricists who also wrote (or helped write) books for successful Broadway shows were Ira Gershwin, Oscar Hammerstein II and Alan Jay Lerner. The field of writing for the profes- sional musical theatre is very difficult to break into, but the rewards,

artistic and financial, can be rich indeed.

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CAREER OPTIONS 447

MUSIC-RELATED CAREERS

WORDS AND MUSIC Librettist

Lyricist

Playwright

Music Critic/Journalist Writer/Editor

MUSIC SERVICES Music Coordinator Music Copyist Music Cutter/Editor Music Librarian Talent Coordinator

MANAGERIAL/EXECUTIVE Artists' Personal Manager Artists' Agent (Talent Agent) Arts Administrator

Artists Union Officer

Audience Research Director Broadcasting Executive

Company Manager (TV, Theatre) Concert Promoter

Development Director (Arts) Educational Director

Entertainment Director

Film Producer

Home Video Producer Market Research Director Orchestra Manager Personnel Director

Product Manager (Records) Production Manager Professional Manager Program Director Programming Consultant Project Director

Publisher

Record Company Executive Record Producer Recording Studio Manager Road Manager Stage Manager Talent Agency Manager Talent Coordinator

Television Producer

Traffic Manager

BROADCASTING/ADVERTISING Account Executive

Composer/Lyricist

Creative Director

Disc Jockey Graphic Artist

Music Librarian Musical Director

Producer/Director

Program Director Program Supervisor Publicist

Research Director

Salesperson

Spot Producer/Director

Ticket Sales Manager/Agent Visual Synthesist

Writer

BUSINESS/MERCHANDISING Broadcasting Station Broker

Concert Promoter Music Merchant/Salesperson

Music Rights Manager Music Wholesaler/Distributor

Publicist

Talent Agent Ticket Sales Manager

MUSIC PRODUCTION [Theatre, Film, Telecommunication] Audio Technician/Engineer

Choreographer/Dancer

Costume Designer Director

Floor Manager Lighting Designer

Music Coordinator Orchestra Contractor

Producer/Executive Producer

Property Master

Scenic Designer

Singer/Actor

Special Material Writer

Stage Director

Stage Manager Talent Coordinator

Technical Director

Theatrical Producer

Variety Artist

Visual Synthesist

Writer/Composer/Lyricist

SCIENCE AND TECHNOLOGY Audiologist

Equipment Designer Equipment Maintenance Technician Instrument Designer/Manufacturer

Piano Tuner/Technician

Record Mastering Technician Sound Engineer/Technician Studio Designer/Acoustician

LEGAL SERVICES Copyright Researcher Copyright Lawyer Entertainment Business Lawyer Paralegal

ARTS/GRAPHICS Commercial Artist Graphic Artist

Theatrical Scenic Designer Music Engraver Music Calligrapher

448 CHAPTER TWENTY-SIX

CRITIC/JOURNALIST/EDITOR — Some of history's most distinguished musicians have used their creative energies, not just for composing, but in writing about music. While few musicians have managed to perform these two tasks as well as Richard Wagner, today hundreds of creative persons have fashioned rewarding careers as music critics, journalists and editors. Those who follow these paths find that their work schedules are filled with attending concerts about eight nights a week, their work- days occupied in reviewing endless stacks of new recordings and books on music. The most conscientious critics make an effort to study new scores before attending premiere performances; some try to attend re- hearsals and recording sessions to inform themselves on how creative and interpretive artists prepare new works or rework old pieces.

To qualify as a music critic in the classical field, the individual should have a thorough musical education, acquiring this through formalized uni- versity-level study or through individual effort. Our most distinguished critics have grown into their work after long years of observation and study. They not only develop penetrating insights on compositions and performances but manage to write in a style that communicates effective- ly with a broad general readership. But many professional critics lack these qualifications and inflict their incompetence on ignorant editors and a gullible public. It is not unusual for a newspaper to ask a general-as- signment news reporter to cover concerts and review recordings. The smartest among this group of fakers are those that avoid writing about the music itself and focus on the composers' or performers' personalities or personal habits. Other music critics, not qualified to write about music or perhaps more interested in its personalities rather than technical as- pects, tend to focus on the words to songs, for if they have any right at all to comment about a performance, it might be that they may know some- thing about language. Critics of this stripe are more accurately described as journalists or reporters, and they are particularly active in the pop-rock and jazz fields. Some of these reporters are very good writers and they accommodate the interests of music lovers who enjoy reading about the performers' personalities and the show-biz aspects of music.

What about careers in writing about music? Major newspapers and most popular magazines employ one or more critics or music journalists. We have a shortage of fully qualified, versatile music critics who can write well. Those aspiring to the field will probably have to begin their efforts to break in to full-time professional writing by volunteering occasional re- views for neighborhood newspapers, perhaps college newspapers or small magazines. Really good writers-about-music will probably attract a responsive readership and perhaps graduate to more prestigious, better- paying media.

Only about 100 critics are employed full-time in the United States, and only the major papers offer really top salaries. But the great majority of critics and music reporters are rather poorly paid and earn salaries com- parable to most other journalists, which are not high. Some "stringers" work for shamefully low free-lance fees. Critics and music reporters, even if employed full-time, often find it necessary to moonlight in other fields, such as teaching. Some are college students who get started in the field by reviewing concerts and records for their campus newspaper.

CAREER OPTIONS 449

An individual more interested in journalism than music criticism may be able to land a job on a newspaper in an editorial capacity. Some of these jobs carry the title, "music editor" and, as such, usually provide full-time

employment for the person hired. Most newspapers receive dozens of publicity releases every week from publicity chairpersons of performing groups, and most newspapers assign their "entertainment editor" or mu- sic editor to select the pieces most deserving of publication. This gatekeeper is also expected to edit, even rewrite these canned articles coming in from outside writers, most of whom are amateurs. This kind of editorial work can be drudgery for the person who aspires to being a mu- sic critic. But until that more prestigious position can be attained, writers on music will usually find it necessary to serve some time in more humble tasks such as rewriting other writers' work. Sometimes a small salary is partially compensated when the music writer is granted a by-line — but it's hard to eat modest notoriety for breakfast.

Individuals wishing to pursue the various kinds of employment avail- able in writing about music can obtain further information from the Music

Critics Association.

MUSIC SERVICES

MUSIC EDITOR/MUSIC CUTTER — Full-time careers can be developed in the field of music cutting, also called music editing. As explained in the chapter on film scoring, music cutters are the individuals who are respon- sible for selection, timing and synchronization of music tapes to TV or movie film. Cutters also find work editing music for radio and TV commer- cials. Career opportunities increased with the development of music videos. While many videos hold entirely to the audio master tape, others call for music editors to change the sound tracks to fit the action called for

in the script.

Those qualified to work as music cutters have usually acquired their craft and art as apprentices, working alongside other more experienced cutters who, themselves, learned in a master-apprentice relationship over

many years. Some good cutters are expert musicians. Others are simply very sensitive to how music can enhance dramatic events and do expert work without having acquired formal musical training. The individual seek- ing a career as a music editor should expect to follow the time-honored

apprenticeship-type training, perhaps getting started on amateur movies,

educational or sales films.

Supply and demand for music editors is presently in about equal bal- ance. More jobs may come along with the growth of music videos and the need for music editing of A/V learning materials, now popular on video- cassettes. For further information on music editing careers, contact the

Motion Picture Editors Guild.

MUSIC LIBRARIAN — Librarians are employed in a variety of settings in contemporary music. The most familiar is the individual working in college and public libraries as a music specialist. Some of these jobs involve little more than clerking. At the other end of the scale are the trained music

450 CHAPTER TWENTY-SIX

catalogers and researchers who apply knowledgeable judgments and perform sophisticated, occasionally even scholarly tasks. All but the

smallest libraries employ paraprofessionals and professionals. For the

former, college degrees are sometimes required. Individuals aspiring to

careers as fully professional music librarians should plan to acquire a

baccalaureate degree in music, preferably with a concentration in music

history and literature. Then they should plan on a masters degree in li-

brary science, preferably from a university with a well-respected

curriculum. Few libraries will consider applicants lacking these creden- tials.

Very few radio stations today employ music librarians. The station's

music director now does much of the work that a music librarian once did — and more. The music director, usually under the supervision of a pro- gram director in larger stations, is responsible for listening to weekly

releases from record companies, talking with record promoters, conduct-

ing research about listener preferences in music, and cataloging the

station's compact discs, cartridges, cassettes and tapes for airplay. The

music director and program director together make the decision about the station's playlist. At smaller stations, these two jobs are held by the same person.

To qualify for a job as a radio station music director, the aspirant

should be knowledgeable about recorded music, recording artists, demo-

graphic research methods and the vagaries of public taste, as well as be

computer literate. Aspirants possessing some of these qualities may per- form in the job quite well without any special music training. The individuals who accept these jobs should have one additional personal at- tribute: the ability to handle continuous pressure from record promoters

— and still make objective judgments about what to broadcast. Another kind of music service that offers some career opportunities is

in the field of music preparation. This is the appellation commonly used in

reference to the companies that offer mass-produced music copying, mu-

sic duplication, music writing supplies and music library sen/ices, including

delivery of scores and parts to customers. Music preparation companies

are located in all major recording centers and employ copyists, proofread-

ers, arrangers, orchestrators and clerical help. All but clerical helpers and

delivery people are AFM members who work for union scale. Proprietors of these service companies are the supervising copyists, and invoices to

their clients (arrangers, composers, producers) include a surcharge for su-

pervision, amounting to at least the AFM minimum (usually 25 percent). Persons seeking a career in the music service field will normally start out

as free-lance copyists, develop a reputation for dependability and good

work, then get hired by an established company. Most are employed, how-

ever, on a piece-work basis — being called in when outside help is needed to meet deadlines. Many individuals in this field also work free- lance elsewhere in music or music-related fields.

SCIENCE AND TECHNOLOGY

SOUND ENGINEER/TECHNICIAN — Individuals employed in the techni- cal aspects of sound reinforcement, recording and broadcasting are

CAREER OPTIONS 451

generally referred to as "engineers." Some are, but many in the field are more accurately called technicians. The appellation audio "engineer" is more accurately reserved for university graduates who hold degrees in electrical engineering or, perhaps, physics, audiology, acoustics or com- puter science. These engineers or scientists engage in such work as research and development of audio equipment, studio and equipment de- sign, record mastering, equipment maintenance and sound mixing. Most of these scientists and engineers are employed full-time by equipment manufacturers, sound reinforcement companies, recording studios, radio and TV stations and film studios. Some engineers are assigned only one type of work, e.g., design or maintenance or audio mixing. In smaller firms, audio engineers perform a variety of tasks.

Employers also hire audio technicians who may or may not have done university-level study of electrical engineering. Many audio technicians and mixers are simply talented, self-taught handymen who, through years of apprenticeship, earn job assignments that involve sophisticated tech- nology. Many of these largely self-taught technicians do more effective equipment maintenance work than graduate engineers. Most engineers and technicians are attracted to these music-related jobs by their love for music and some of them hold college degrees in music or have studied music informally. The art of sound mixing demands considerable musical knowledge and the ability to make sensitive aural judgments.

To qualify for employment as a sound engineer, university degrees in electrical engineering and music would be ideal, but few professionals are so prepared. With the increasing sophistication of audio equipment, employers more and more require, not just audio technicians, but sound engineers and computer scientists. Engineers believing they may find employment in broadcasting will usually have to qualify for an FCC oper- ator's license.

Individuals who want to go to the top in recording technology and sound engineering should not only study as much music as they can, but go on to at least some studies in acoustics. Such persons would be called upon to design and build state-of-the-art recording studios and then perhaps displace those who, in the past, have faked their way in such enterprises and wasted much money on poorly-designed facilities. The professionals who come closest to this kind of preparation will be in high demand and enjoy good earnings.

INSTRUMENT DESIGN/MAINTENANCE — From earlier times, the in- ventors and designers of musical instruments have held a distinguished place in the history of the art. While the basic design of most acoustic mu- sical instruments was set centuries ago, scientists and technicians continue, not only to improve instruments, but invent new ones. Persons interested in the physics of sound, acoustics and electronics manage to develop music-related careers. While it cannot be said that there is a big demand for instrument designers, positions can be found for qualified persons with manufacturing companies, particularly those involved in de- veloping ever-new electronic instruments.

As for careers in the field of instrument maintenance, there is a short- age in most communities of competent instrument repair technicians. It is

452 CHAPTER TWENTY-SIX

simply impossible to find sufficient numbers of real craftsmen. Qualified repair technicians can just about choose where they want to live, then knock on the door of the nearest instrument repair shop and go to work the same day.

Other jobs await qualified maintenance personnel in school systems,

colleges and universities, not to mention the armed services. Persons as- piring to such careers can acquire their training in some junior colleges and some universities. It is more common, however, for aspirants to learn their craft as apprentices to masters.

Repair technicians often specialize in keyboard instruments. Many communities lack fully qualified piano technicians/tuners. The best of them have been factory-trained or learned their craft as apprentices. For-

tunately, piano tuners today do not even have to have a true sense of

pitch. Tuning can be accurately handled with the use of electronic pitch-

measuring machines which are readily available with piano repair kits.

Piano technicians are almost always independent contractors working out

of their homes; they set their own hours and vacation periods. The com- petent ones are in demand and make good livings.

There is also a shortage of electronic keyboard maintenance person-

nel. Persons knowledgeable in the technology of electronics are usually

so busy repairing amps, speakers and tape recorders they cannot find

time to fix electronic organs, electric pianos and keyboard synthesizers.

Those who acquire competence in repairing electronic keyboard instru- ments will be able to find steady employment at good pay. And those with musical backgrounds will, on most jobs, be able to do a better job than

just straight technicians.

With the proliferation of lower-cost electronic musical equipment of all

kinds, it is safe to predict that steady employment at good pay will be available to those who take the time to educate themselves in electronics and music. This is clearly a growth area of employment.

MANAGERIAL/EXECUTIVE

Individuals not involved directly in music-making can develop successful

careers in the business and managerial sectors of the arts and entertain-

ment industry. Dozens of options await them. The simple truth is, the music business has never had an adequate supply of people who are qualified to run things.

It is not possible to predict career patterns in music and arts manage- ment. The person who aspires to become an artists' manager may start out in music publishing and end up in record production. The individual who initially wants to run a talent agency may experience greater success as a TV executive. Rapid change is so pervasive in the music business, it is rarely possible, even desirable, for a manager or executive-type person

to hold with one job throughout a career. Fast learners who are quick on their feet will seize career opportunities as they develop. The most cre- ative executives won't wait for job offers; they will create their own opportunities.

CAREER OPTIONS 453

QUALIFICATIONS, PREPARATION — Until recent years, most music business jobs have been held by individuals who walked in off the street and learned on the job. Practically no musicians were available who had sufficient backgrounds in management, so the big firms turned to ex- salesmen, lawyers and accountants for their leadership.

In recent years, some of the people with these kinds of backgrounds have been joined at the middle management level by a new kind of pro- fessional: the college or university graduate who has gone through an educational program that integrates music and business and the record-

ing arts. These graduates are the ones described earlier as "the new professionals." Several dozen colleges and universities in the United

States and Canada now offer these kinds of curriculums, and their gradu- ates are finding their places in the arts and entertainment industry.

A profession directly related to music business management is arts ad- ministration. Educational institutions have only recently begun to develop

degree programs leading to professional employment in that area. The

early leaders in the field have been UCLA, the University of Wisconsin- Madison, Yale and NYU. Persons considering arts administration should inquire directly of these institutions and others that may interest them, be- cause curriculums in arts administration are now proliferating. Most of these degree programs are at the masters degree level.

How does one qualify as an arts administrator? A masters degree will probably help. For a fuller answer to this question, review Chapter 14. Of

all the music-related career options available, arts administration may present one of the greatest challenges to an individual's versatility and

imagination — and the field offers a unique opportunity to achieve some- thing that might turn out to be important.

EMPLOYMENT PROSPECTS — Those who take the time to prepare themselves in business and music will be among the most sought-after executives in the decades ahead. A clear indication of this is the track record of schools offering music business studies. The good ones are placing an impressive percentage of their graduates in beginning and

middle management positions. Their success in placement is far greater than colleges turning out graduates trained for traditional music employ-

ment.

Fast talkers and off-the-street types will continue at least for a while to

find work. But the music business is now so large and diverse, increas- ing numbers of organizations will refuse to turn over their affairs to

dilettantes. Too much money is now on the line. Seat-of-the-pants opera- tions and uninformed decision-making can no longer be tolerated in this

huge industry. Those hoping to land managerial-executive positions in the

field will have to have first-class credentials in the decade ahead.

BROADCASTING/ADVERTISING

The fields of broadcasting and advertising in the United States are so closely allied that they will be considered here as inseparable. A person aspiring to a career in either of these fields will very likely become profes- sionally involved with the other. Even so-called "public broadcasting,"

454 CHAPTER TWENTY-SIX

although nonprofit, is dependent upon large corporations which grant

money to PBS and local nonprofit stations in the form of "institutional" ads — prominent corporate name identification at the beginning and end of programs.

In broadcasting, the most accessible entry-level employment is found

in radio, as an "air personality." Translation: disc jockey.

DISC JOCKEY — The individual who masters the ceremony of getting records identified and on the air is the key figure in radio broadcasting.

With nearly 11 ,000 stations on the air, we have over 25,000 DJs working full-time and another 5,000 or more performing part-time. As explained in

Chapter 22, disc jockeys in major markets are often confined to introduc-

ing records and making commercial announcements, these proceedings

interrupted by ad-lib comments by the jock about the entertainment, the performers, or most anything that might engage the listeners.

In addition to time on the air, the DJ is usually occupied in a variety of

tasks relating to the operation of the station. Most station managers try to

increase their community visibility by encouraging their air personalities to

become involved in such activities as being an MC for shopping center openings and judging beauty contests. Many jocks are involved in pro- moting, even sometimes acting as MC for rock concerts. Some DJs assist their station's PR activities by involving themselves in charities and other public services.

Disc jockeys in smaller markets are often called upon to perform every

conceivable task at their stations, from making up playlists to sweeping

out the studio. In many markets, jocks assist in writing and producing commercials and may even sell spots. A station with a limited budget will also require its DJs to run the audio engineering board concurrently with

physically handing the discs and tapes.

QUALIFICATIONS, PREPARATION — Some disc jockeys get started with little or no professional training. Some self-taught air personalities (or on-the-job apprentices) rise to the top of their profession. But the life

expectancy of a disc jockey can be short, comparable to that of a profes-

sional athlete or ballet dancer. DJs may tend to lose touch with their lis- teners, stations often make changes in search of bigger audiences, and the best air personalities sometimes move up to become program direc- tors, even station managers.

While it is not difficult to get some kind of modest start as a disc jockey, individuals planning a career in broadcasting should take time out to earn

a college degree or two in broadcasting, communication, or an allied field

such as music, theatre, perhaps even journalism. The quality and useful-

ness of curriculums in these disciplines varies widely across the country.

But a graduate of even a second-rate institution will be at least in a com-

petitive position with the tens of thousands of other aspiring broadcasters

pouring out of our colleges who hold at least a baccalaureate degree. Those who qualify themselves with a good education will almost certainly rise faster in their broadcasting careers than others whose backgrounds may limit their potential for leadership roles.

CAREER OPTIONS 455

EMPLOYMENT PROSPECTS — Most DJ jobs are landed through the submission of airchecks accompanied by the individual's resume. A home tape recording won't do: a station manager wants to hear how the individual sounds on the air during an actual broadcast. Airchecks sub-

mitted for audition should have most of the music edited out, retaining

only a few seconds to enable the auditor to hear how the performer gets in and out of the music.

Those seeking their first job and those changing jobs can learn of

available openings by word of mouth and through trade magazines.

Jocks change jobs as often as musicians. The disc jockey just start-

ing will find opportunities on very small stations for some kind of tryout, partly because such stations (even some larger ones) pay their inex- perienced DJs only the minimum wage. Students working for free on a

campus station will leap at the chance to get started as a professional on a commercial station. Of course, top DJs in major markets can earn

$100,000 a year and more.

BROADCAST PRODUCERS/DIRECTORS — Career opportunities in ra- dio and telecommunications for producers and directors are so diverse,

they defy generalization. The easiest to describe is the radio program di-

rector; that job is covered in Chapter 22. Hundreds of openings come along every year. Most radio P.D.s gain their background as DJs, and

may continue as on-the-air personalities with reduced schedules. In con- sultation with the station's general manager, they hire and fire disc

jockeys and, on large stations, the P.D. may also participate in engaging and disengaging other on-the-air types such as news reporters.

Radio P.D.s can perform their jobs well without strong musical back-

grounds, depending on their musical intuition to help them come up with playlists appropriate for their markets. Program directors who demon- strate strong leadership qualities may eventually grow into radio station general managerships.

In respect to telecommunications, musicians who aspire to leadership roles will discover a variety of opportunities. Individuals with imagination

may find their entre via involvement with music videos. Low-budget videos offer entry-level positions for producers, writers and directors who

can figure out how to turn out low-cost masters that look like a million dol-

lars.

Producers and directors in radio and telecommunications often gain

middle and upper management positions following success in sales. Em-

ployers appear attracted to persons who have proved their abilities in the business side of the industry.

Jobs for energetic producers and directors occur with radio stations

and networks, program syndicators, telecommunications, record label

video departments, and independent production companies.

BUSINESS/MERCHANDISING

Thousands of careers in the music business are available for individuals

who prefer to involve themselves in the marketing of goods and services

456 CHAPTER TWENTY-SIX

relating to the industry. Even live music is a "product" which must be ad- vertised, packaged and sold. Music merchandising is a multibillion-dollar enterprise and talented persons will probably be able to develop full-time careers in it — if they apply their energies in the right places.

Career patterns cannot be described here, because products and mar- kets change overnight. Jobs come and go; merchants sink or swim. Even in periods of economic depression, employers will always take on an em- ployee who can sell — if not on salary, at least on commission. The music industry requires peddlers as well as top executives.

Most music merchants, whether working as employer or employee, en-

joy satisfactory careers because they know how to hustle; they do not wait for the telephone to ring or for the unemployment check. They are out on the street, on the telephone, ever searching for something to buy or sell. But work in this field can be frustrating, exhausting, sometimes frightening. The strongest operatives survive, because ever-new opportu- nities come along.

QUALIFICATIONS, PREPARATION — Until recent years, a music mer- chant or talent salesperson did not require a university diploma to succeed in the music business. Such a person could often make it, at least for a while, just being "street smart," quick on his feet. But as the

music business tends more and more toward large corporations, even in- ternational conglomerates, the person who wants to rise to the top may find an acute need for a strong academic background. Corporate boards no longer want to entrust the buying and selling of merchandise and mu- sicians to mom and pop. The small community will still need the small businessperson. But the big money prizes are now going to the mer- chants and agents and promoters who are informed in such fields as market research, advertising, accounting and finance.

EMPLOYMENT PROSPECTS — Individuals who are fully prepared and motivated for work in contemporary business will find good career oppor- tunities. Particularly employable today are persons with strong university

training in music and business. Those who go on to earn the M.B.A. de- gree start at high salaries, particularly if they graduate from a prestigious

school of business such as those at Stanford and Harvard. Whatever the educational background, a musician-merchant's ultimate

achievements will probably be governed more by imagination and drive. Armed with these two attributes; the aspirant will create "luck." As more than one person of achievement has expressed it, "The harder I work, the luckier I get."

LEGAL SERVICES

Each year the music business requires the services of more and more le- gal experts, because every aspect of the industry involves copyright law and the negotiation of contracts. While all law schools train their students in contracts, it is often impossible for an attorney in general practice to be

sufficiently well informed to handle certain kinds of music business con-

tracts. In the field of copyright, the attorney lacking expertise often gets in

CAREER OPTIONS 457

over his head and is unable to counsel clients adequately. For these rea-

sons, increasing numbers of lawyers now specialize in entertainment law and copyright.

Music business specialists are often hard-pressed to keep abreast of

the complexities of the industry. In the copyright field, lawyers, clients and

adversaries continue to do battle over the meaning of the fine print. Despite the increased demand for music business attorneys, most law

schools still do not offer specialized training in the field. However, law stu-

dents wanting to study copyright will find an outstanding curriculum at

NYU. Also, use and UCLA give special attention to entertainment law.

Record industry students, Berklee College of Music, Boston

458 CHAPTER TWENTY-SIX

What are the employment prospects? The brightest, best-informed en- tertainment attorneys have plenty of clients and high incomes. Those of considerable experience often get full-time positions as legal counsel for

such firms as publishers, record companies and film studios. Others go into artist management. But our law schools turn out about twice as many lawyers as we can accommodate. Attorneys of lesser talents (or ambition or luck) may find it necessary to go into some field other than law. But this kind of second-choice career may not be bad, for in our complex society, it is to everyone's advantage to possess an understanding of law.

The individual who is attracted to the law may not be able to gain ad- mission to a good law school or lack sufficient funds to complete the education. Such a person can often find employment as a copyright re- searcher, music rights agent or as a paralegal. Still others may already be working in some aspect of the music business and attend law school con- currently. Upon admission to the bar, persons of this kind of background would probably find themselves more readily employable than their com- petitors.

For an extensive treatment of the role of lawyers in the music busi-

ness, review Chapter 9.

ARTS/GRAPHICS

Creative persons in the aural and visual arts have often worked in close alliance. Some have been talented in both fields, e.g., Schoenberg and Gershwin were good painters; Stravinsky worked closely with Picasso in stage design and costuming. Today, musical performers must be attrac- tively staged and costumed. Music merchandise must be packaged to sell. These circumstances create many career opportunities for talented individuals interested in graphics and other visual arts. Record compa- nies alone require the services of hundreds of giaphic artists they employ on staff or free-lance. Printers and commercial art companies employ artists who have a feeling for music and how visual impressions — pack- aging and displays — can mov^ people to buy music.

In the video field alone, many^^raphic and scenic artists find challeng- ing employment as production designers. Artists who bring a musical sensitivity to these assigr^ents may develop the most successful ca- reers in this part of the industry.

STARTING YOUR OWN BUSINESS

Many persons of independent mind do not choose to work as an employ- ee and prefer to "go it alone." They become entrepreneurs of one kind or another. As suggested repeatedly in this book, if you can't find a job, cre- ate your own! Now you may not be able to set up your own TV network or movie studio, but it is possible, with a limited amount of capital, to start your own music-oriented company, e.g., a production firm, concert pro- motion organization, management company or publishing business.

The type of music business easiest to get started and least expensive to finance is publishing. This fact is reconfirmed all the time by hundreds

CAREER OPTIONS 459

of new firms being set up, usually by songwriters frustrated after repeated turn-downs of their material by others. They decide to strike out on their own.

Here is a step-by-step approach to setting up a publishing company in the popular music field.

1- RESEARCH — Study this book and publications concerning busi- ness management found in most libraries.

2- ACQUISITIONS — You have to acquire "properties" before you can start publishing. In addition to your own copyrights, search out other qualified writers and gain their confidence and assistance in your publish-

ing plans. Retain a lawyer to assist in drawing up contracts. Use the guidelines listed in Chapter 5.

3- STRUCTURE YOUR FINANCING — You have three basic op- tions in structuring your company and its capitalization, as explained in Chapter 13. Once you have determined whether you will be organized as a sole proprietorship, partnership or corporation, you know what working capital you will have and you can now tentatively select a firm name.

4- CONTACT ASCAP, BMI OR SESAC — Request an application for affiliation as a publisher. The organization may ask you to supply your first choice and alternate choices for your firm name. The licensing orga- nization will not accept into membership a firm with a name identical to or similar to an established publishing company. AFFILIATE with one of these organizations (requirements are explained in Chapter 7).

5- REGISTER YOUR^fIRM NAME — Call on your county clerk and recorder's office and s^ffch the records to learn if your choice of firm

name has been previouay registered in the county. Duplications will not be accepted. Unless yqu identify the company with your own full legal name, you will be required to register a "fictitious firm name" (some coun-

ties use the term, "trade name"). For example, if your name is John Doe, the county will record your firm as "John Doe DBA Hit Publishing Compa- ny" (DBA is an acronym for "doing business as"). The county clerk will also require this filing to be published in a "le^al newspaper" in the coun-

ty. Procedures and applicable fees vary county to county.

6- ESTABLISH YOUR COMPANY BANK ACCOUNT — Your bank will not open your account until your firm name has been published as described above. Do not commingle personal funds with your company account, even if you are the sole proprietor. Commingled accounts make difficult problems in accounting and tax matters.

7- BUSINESS LICENSE — If you limit your firm's activities just to publishing, you will not require a business license, for the U.S. Constitu-

tion guarantees citizens the right of a free press. But if your company should branch out into artists' agency work, most states would consider

that as a kind of employment agency, and nearly all states license and

regulate employment agencies.

460 CHAPTER TWENTY-SIX

8- ARRANGE OUTSIDE SERVICES — Since most new publishing companies start on a shoestring, proprietors generally do not attempt, at the outset, to handle everything themselves. Outside companies are available to handle just about any service a business needs — mail han- dling, telephone answering, secretarial, bookkeeping, accounting, etc.

Many small publishers in New York, Nashville and Hollywood share a small office (perhaps three to six firms) along with the costs of rent, a sec- retary, etc.

9- PREPARE YOUR MATERIALS — A songwriter sometimes man- ages with leadsheets and demos prepared by amateurs. But now that you are a publisher, everything you present to a producer or artist must be prepared by qualified professionals.

10- YOUR FIRST SUCCESS — The essence of the publishing busi- ness in the pop field is getting material recorded and released. When you accomplish this feat with your first song, it can be said that you have real- ly become a publisher. While you may grant a recording license under the compulsory licensing provisions of the 1976 Copyright Act, it is much more common for publishers and record companies to negotiate directly, settling on mutually agreeable terms. Most publishers use their own me- chanical license form.

11- FORMS, CONTRACTS — Copyright forms are readily available, without cost, from the U.S. Copyright Office. When you negotiate writers' publishing contracts, retain a qualified music business attorney — or use the draft contract discussed in Chapter 5 as a basis for your discussions with an attorney less experienced in the music field.

12- SUBPUBLISHING — If your firS!;Wc«lpd song hits, you may want to publish it in printed form. You WiH probai^ license a music print- ing company to handle this for yQ4-^^a^ Cha|Mer|&. Also, reread there how to set up subpublishing deal^^^p^d throughpcensing agreements with firms active internationally.

13- YOUR SECOND COMPANY — Just as soon as your first compa- ny gets underway, establish a second one so that you can accommodate properties from writers aftUated either with ASCAP or BMI. Except for the preliminaries outlined here, Je proceduresjp/ setting up a second firm are the same as your first ventufe. -"*"U^'^-

14- CONTINUITY — Once your new firms start to get their copy- rights licensed and recorded here and abroad, don't sit waiting for royalty checks. Real profitability comes along when a firm can achieve continuity year to year, building catalogs of hundreds, eventually thousands of songs. So the search for new writers and new properties goes on and on. That is the publishing business.

•fiU

EVELOPMENT Eighty percent of success is stiowing up.

WOODYALLEN

rec(3rdlng and broadcasting industries since iple are drawn to music and want somehow

fesston. But many of these dreams are ill-de- attracted by the alleged "glamour" and big entertainment fields, but have no clear idea of Most teachers and counselors also lack cur-

DEFINING GOALS

Recent studies reveal that music is one of the most frequently named career goals. This pervasive enchantment with the world of music came with the rapid growth of

1950. Millions of young to become part of thes fined. Aspirants appe money of the music how they might breal rent information.

The world of mu^'apd entertainment^itias always had a certain mys- tique. Most of those -who are yisible in thesl^fields seem to be rich and famous. Producing and selling music dan bei^ enjoyable and profitable,

but here we are more concerned with what goes on backstage, off-cam- era. Here we uncover thousandgj^^j^diwJuate no one has ever heard of, most of them employed quite regularly, earning respectable incomes — and probably enjoying what they are doing.

Landing a Job Vs Building a Career — It is important to distinguish between a "job" and a "career." To borrow from Gertrude Stein, a job is a job (is a job). But a career, properly defined, is more likely an ongoing series of jobs, which, if related, add up to an employment sequence that has continuity and development. Unfortunately, large numbers of musi- cians simply bounce from job to job, giving little thought to how their pat- tern of employment might develop into a career offering a potential for planned growth and advancement.

From upper right, clockwise: National Academy of Recording Arts and Sciences (NARAS) Grammy; Academy of Motion Picture Arts and Sciences (AMPAS) Oscar, the Country Mu- sic Association Award; the Antoinette Perry Tony Award of The League of New York The- atres and Producers. Center: Academy of Television Arts and Sciences (ATAS) Emmy award. Used with the permission of the copyright owners.

CAREER DEVELOPMENT 463

Using Counselors — Early on, it was recommended the career seeker search out the best available counseling. Despite the reports of unsatis-

factory experiences many individuals have had with professional coun- selors, they are probably the most competent persons in the community

to offer professional help, what can be called structured intervention.

Most counselors have information concerning career options and statisti-

cal projections of employment prospects. One of the useful services a qualified counselor can offer is assisting aspirants in finding out who they are. Counselors can offer a battery of aptitude tests, interest mea- surements and temperament tests. The objectivity and value of these tests and measurements remainj^spute, but they are almost always somewhaLbelpful, and careerjej^^ should avail themselves of every possible opportunity to find ^^^ where they may excel and just what makes them tick.

For people out of high school and-dbllege, counselors are available

through state employment services. In larger communities, professional career counselors, independent of government, are available, with pay-

ment of a fee.

Discovering Yourself — Concurrently with defining career goals, you should try to define yourself— analyze not only your interests, but par- ticular temperament and personality. Along with this personal discovery should come measurement of aptitudes and talents. In addition to doing all you can to discover who and what you are, you should obtain outside appraisals from qualified professfonals. Probably more than one-half the work force is miscast. Whole lifetimes can be spent in frustration and failure. While many diffetei^citee* may be identified for these unsuc- cessful lives, very often tb|g|GfflKa|^d off wrong, before they knew who they were or measuredjheirtalentS' or considered whether they could meet the competition. Well-planned careers do not always work out, ei- ther. But if the individual proceeds sensibly, with all available information,

at the very least that pecion has reduced the probability of failing in a

chosen field. Many students have<iise«[ a form, Discovering Yourself, devised here

particularly for people i^ter^ted in careers in the arts and the music

business. If the reader uses the form (Figure 27.1) it should be remem- bered that there is no "passing" or "failing" score. Rather, the reader's

answers should be interpreted and evaluated in light of the information

set forth in these pages concerning music-related careers and the kinds

of talents and personalities that have been found appropriate in pursuing certain careers. For example, if the individual's answers show a dislike for travel, and fear of not always having a steady job, that person would

be unhappy and unsuccessful attempting to build a career as a perform- ing musician. On the other hand, if the individual discovers that the high- est priority is being free to create, and there is little concern about job security, that person might be a strong candidate for building a career as

a composer or record producer. Besides seeking to understand one's own interests and value system,

it is equally important at this early stage to conduct an inventory of per-

464 CHAPTER TWENTY-SEVEN

sonal strengths, weaknesses and talents. The accompanying form (Fig- ure 27.2) can assist the individual in these assessments; they must be rendered as objectively as possible to be useful.

DISCOVERING YOURSELF Effective career planning should begin with careful self-ap- praisal. What is important to you? What makes you most effec- tive? What kinds of talents do you have? Place a number from 1 to 10 in the appropriate spaces below. Think of number 1 as "low," "little" or "poor," depending on the nature of the category. Use a number 5 for "average." Number 10 means "high," "a lot" or "very important." After you have indicated your own ap- praisals, seek outside professional opinion to learn if others view you as you see yourself.

MY VALUE SYSTEM

MY ESTIMATE

Need for respect from others

Need for prestige, status

Need for audience approval

Desire for peace of mind

Need to be liked

Desire to be loved

Need for artistic freedom

Concern for heaitt)

Desire for leisure time

Desire to have children

Importance of artistic achievement....

Importance ofjob security

Importance of money

Tolerance forjobs demanding travel

Desire for personal development

Desire for artistic development

Fig 27.1

OUTSIDE ESTIMATE

CAREER DEVELOPMENT 465

MY STRENGTHS, WEAKNESSES, TALENTS

This form can be revealing for both musicians and people in business. Use the one-to-ten numbering system described for Figure 27.1

Motivation, ambition

Self-confidence

Creative talent

Performing ability

f\/lusical knowledge

Business sense

Effectiveness as an

oral communicator

Effectiveness in written

communication

Ability as an organizer

General leadership ability

Musical leadership ability

Capacity to accept direction .

Ability to work with others

Understanding of the music

profession

Understanding of the music

business

Emotional stability health

Intelligence

Capacity for musical growth .

Capacity for personal growth

Personal habits

Ability to adjust to change

Today

My Estimate

Outside Estimate

When Fully

Developed

My Estimate

Outside Estimate

strongest personal attribute M My strongest talent

466 CHAPTER TWENTY-SEVEN

Inaccurate talent appraisals are readily available. For example, a mu- sician who works every Saturday night at the local American Legion Hall can offer a "professional" opinion, but may have no idea what level of tal- ent is required in the recording studios. The local singing teacher may hold an advanced degree in music, but not know what would be expect- ed of voice students seeking work in broadcast commercials. Many of our university professors of music composition do not know the level of talent (and craft) demanded of film composers.

If the aspiring musician discovers, through systematic appraisal of temperament and talent, that qualities are missing to make it in music, there still are scores of career options in music-related fields.

CLIMBING THE LADDER

No two persons hold the same views on just what constitutes "suc- cess." To most persons, the professional who earns a good living has achieved "success." But in the arts, many individuals place a higher val- ue on personal fulfillment, artistic idealism. They refuse to be seduced by the dollar; they won't go "commercial," preferring to hold to their con- ception of artistic integrity, whatever the consequences. Psychologists would describe this kind of idealist as one who is more concerned with "psychic rewards" than financial security.

How many people in the world of work are happy with what they do for a living? Many surveys have been made; most of them indicate that more than halfo\ those interviewed stated they were unhappy with their jobs. Unhappiness over low pay was rarely the number one concern Those interviewed have most often complained they felt trapped in their jobs, and that they had little confidence they had a chance to "get ahead." A majority of those asked stated that, if they had the opportunity, they would change their line of work. Those planning a career related to the arts know at the outset that they are engaging in a high risk enter- prise. But while careers in the arts, particularly music, often provide only

minimum security, many aspirants would not give up the personal re- wards the field offers to trade for more stable employment. One of the great things about a music-re/afeof career is that the individual, through careful preparation and planning, can often have it both ways — person- al satisfaction and employment continuity.

As the individual contemplates climbing the music career ladder, it will be helpful to be aware of the following:

1 - Most music-related careers are combination careers; most people work at more than one job at the same time.

2- Most people experience serial careers; they move from job to job, not necessarily because they quit or get fired, but because of the nature of the profession. Typical example: a person starts out as a "gofor, " then begins to get a few music copying jobs, and may then progress to arranging, composing, perhaps get into the publishing business and eventually become involved in artist management and

CAREER DEVELOPMENT 467

record production. Each job helps the individual prepare for the next step up the ladder

3- The music business offers decreasing opportunities for the ill-prepared. The jobs offering the best potential for ad- vancement go more and more to the well-educated, gen- uinely competent individuals.

4- Males still dominate the business. Women, with some no- table exceptions, are under-recognized, under-utilized and underpaid, at some levels of the business.

5- Young people tend to dominate the creative and perform- ing aspects of popular music. Persons of more mature years tend to dominate the field of serious music, music teaching, the business and managerial facets of both pop- ular and serious music.

6- All professions, all fields are characterized by rapid change. But in music, career opportunities change every day. Newjobs, new opportunities keep coming along.

7- Music-related careers often lack employment continuity. But working musicians, at least union musicians, can usu- ally earn more per hour than can those in any of the other arts and more than those in most other lines of work.

FINDING WORK

Career counselors and research experts declare that, at any given mo- ment in the US, there are at least one million job openings of all kinds. The person pounding the pavement searching for work scoffs at such a figure when unable to discover even one opening. The one million figure, although a rough estimate, can be understood by polling several hun- dred music and entertainment industry employers. Most complain they cannot find really qualified employees, and insist the openings are there for individuals of demonstrated ability. Surveys show that many compa- nies would either offer jobs, or create new positions, for people who could produce more, sell more, write better, work harder, or manage more efficiently.

Most jobs in the music business are never advertised or made known to outsiders. In this field there is often no need to place ads in the trades for help. Applicants line up immediately when word hits the street that some job may be coming up. So who gets the call? As with most fields of endeavor, what really counts in the music business is word of mouth. In short, "Who do you know who could cut it? Who might be ready for this job?" The individual who is prepared, has built a good reputation, and has a network of supportive contacts — that person wins in the end.

Networking — Most career counselors urge job hunters to develop what is often called a "network" of personal and professional contacts. It takes time to develop a strong supportive group of people who will speak well

468 CHAPTER TWENTY-SEVEN

of you, but nothing could be more valuable in building a career. An effec- tive network need not be limited to persons of high influence; the best contact a person might have could turn out to be a casual acquaintance in a laundromat who mentions so-and-so's band is looking for new peo- ple.

Another major influence on career development is the matter of hu- man personality. Most jobs are won or lost, not so much based on intelli- gence and skill, but on such personal considerations as dependability, flexibility and congeniality. Research in the field of counseling has re- vealed that career problems are "people problems." Can you be counted on? Can you work effectively with others, or does your network of con- tacts report back that you are difficult to get along with, that you are not always dependable? It is people, then — their word about you — that can thrust you forward or hold you back.

The Value of Research — If your network of contacts is working for you, not against you, job opportunities are bound to come up. Before try- ing to get an interview, research carefully your prospective employer. Fo- cus your fact-finding on trying to discover what the employer needs most. Present yourself as a solution to the problem. An employer, per- haps having just fired your predecessor, is really searching for a replace- ment that will solve problems the other person left behind. For example, your chances of getting hired might hinge largely on your perceived abili- ty to "follow through" — filling the shoes of the person fired whose most annoying shortcoming, perhaps, was never finishing an assignment. In- dividuals who get hired, get promoted, and earn the most generally ap- pear to have their egos under control and expend their energies trying to make the boss look good.

The Resume — Job hunters automatically assume that they must mail out a lot of resumes in order to gain the interest of prospective employ- ers. But the usefulness of circulating dozens, perhaps hundreds, of re- sumes is very limited: many studies show that only a tiny share of jobs are landed through submission of such documents. Dozens of books on the subject are readily available, and one of the best of them is Richard Bolles' What Color Is Your Parachute? Recommended.

In the arts and entertainment industry, presentation of even well-writ- ten resumes is particularly limited. The reasons are clear: 1) most music business jobs are discovered by word of mouth; 2) most music-related jobs are obtained by such means as demo tapes and auditions. But where a more traditional job is sought in the business sector of the in- dustry, a well-conceived resume might help gain an appointment for an interview.

Resume writing techniques are covered in other books, so here, infor- mation on that subject is limited to what might be especially useful in seeking music business-related employment —

1- Address your resume only to the individual with the author- ity to hire you.

CAREER DEVELOPMENT 469

2- Everything you put in the document should focus on one thing: helping attain the reader's goals.

3- Keep in mind that all the resume can really do is describe your past. The reader must guess what your past might in- dicate for your future and your usefulness to the company tomorrow.

4- Cite no negatives; don't use such words as "fired," "didn't like my boss.

5- Use colorful terms to describe jobs you have performed. If you ran errands, don't say you were a "gofor" Try "produc- tion assistant.

6- Don't list references, but be sure to state they are avail- able.

7- Get it all on one page.

Gaining interviews — All resumes should be accompanied by a cover letter requesting an interview or audition. Again, you must "translate" your aspirations to solving your potential employer's perceived needs.

Also:

1 - Emphasize "you, " not "I. " Your first sentence, or at least your first paragraph, should state precisely what you can do to help fulfill the employer's needs.

2- The letter should be perfectly typed, with correct spelling, grammar and punctuation. Get it all on one page; the read- er is too busy to read your life's story.

3- Your final sentence should specify just what action you want the reader to take.

If your resume and cover letter hit the prospective employer right, you may be invited for an interview. In that case, intensify your research on what the company is looking for and what you might expect from the par- ticular interviewer. Don't go in cold. The best books on how to handle yourself in job interviews generally agree on the following —

1- Dress right, in line with other employees at the firm work- ing at levels near the one you might be assigned.

2- Your interviewer may not know how to go about his task. Be helpful; raise appropriate questions, if necessary, to de- liver useful information about yourself and what you might do for the firm.

470 CHAPTER TWENTY-SEVEN

3- Don't get too cozy, too breezy. Be respectful, yet congenial.

4- Learn what the job normally pays, then ask for a little more (not a lot more).

5- Focus on how you believe you can help solve the inter- viewer's needs.

6- Immediately following the interview — the same day — mail to the interviewer a thank-you letter for the opportuni- ty provided for you to learn more about the firm. Your com- petition probably won't think of doing this. Your thoughtful- ness might favorably impress the interviewer

7- Attend as many job interviews as you can; such experi- ences often tend to reduce nervousness and increase ef- fectiveness.

Applying these suggestions should be helpful, but successful inter- views often depend on intangibles. For example, if the conversation af- fords you an opportunity to suggest a new idea for the company (usually hard to do), that one contribution might yield a job offer. Or if you and the prospective employer get into discussing a mutual acquaintance, a per- sonal consideration of this kind might help create an atmosphere of trust. A job offer could follow.

It makes little difference in the music business at just what "level of entry" the newcomer breaks into the field. Associates will quickly assess competence and that person's career will rise or fall accordingly. The business changes so rapidly, anyone with real talent will climb the lad- der. But to continue to climb and not fall back, the individual will certainly have to possess more than raw talent. As has been stressed time and again here, artistic and financial success in the music business are pos- sible, even likely, when you, the aspirant, can present this package to the world:

• You have genuine talent.

• You have the right temperament.

• You get the important information.

• You work with qualified associates.

• You have the will to win.

Hang in there.

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472 APPENDIX

THE CANADIAN MUSIC INDUSTRY

By David P. Leonard, President, Trebas Institute of Recording Arts, Montreal

INTRODUCTION

Throughout the history of the music recording industry in the twentieth century, Canada has made significant contributions in the creative, tech- nological and business areas.

In 1899, Emile Berliner, credited with inventing the flat record and the gramophone machine, became the dominant figure in the recording busi- ness in Canada. He set up pressing and distribution facilities in Montreal for Berliner affiliated companies worldwide. In 1920, radio station XWA (now CFCF) in Montreal became the first radio station in North America to run scheduled broadcasting. In 1925, the first electronically recorded discs were issued by Berliner — another first for Canada. In 1929 it became RCA-Victor. From 1918 through the sixties, the Compo Compa- ny in Montreal, established by the Berliner family, was a major recording, pressing and record distribution organization.

Canada has provided the world with major recording artists including Paul Anka, Burton Cummings, k.d. lang, Gino Vannelli, Neil Young, Gor- don Lightfoot, Anne Murray, David Clayton Thomas (Blood, Sweat and Tears), Joni Mitchell, Hank Snow, The Band, and members of The Lov- ing Spoonful (ZaI Yanofsky), Loverboy, the Archies, Baron Longfellow and jazz pianist Oscar Peterson.

Canadian record producer Jack Richardson has produced major acts including Poco, Bob Seger and Alice Cooper. Canadian record producer David Foster has written songs and produced recordings for Lionel Richie, Chicago, Kenny Rogers and himself. A world-class recording facility, Le Studio, near Montreal, has attract-

ed the Bee Gees, Cat Stevens, the Police, Rush, David Bowie, and other recording artists in recent years.

David Greene, a Toronto-based recording engineer, works regularly in New York and Los Angeles with major artists on their sessions.

THE RECORD MARKET

The Canadian record marketplace (radio broadcasting and record sales) has always been dominated by imports from the U.S. Consequently, American popular music in all its forms has had a major influence on the Canadian music industry and the public at large.

In 1968 the federal government of Canada established the Canadian Radio-Television and Telecommunications Commission (CRTC). The CRTC under the Broadcasting Act is responsible for the regulation of all broadcasting in Canada — AM and FM radio, television, cable and pay

CANADIAN MUSIC INDUSTRY 473

television. The CRTO has no authority over the activities of the recording industry, but its function in broadcast regulation does have an indirect effect on that industry. One of the best-known CRTC regulations is the requirement that AM stations ensure that 30 percent of all musical selec- tions broadcast in any given day be Canadian. There is a similar requirement for FM stations, but the percentage figure varies from sta- tion to station and is generally less than 30 percent. In 1984 the CRTC licensed the music video pay television service Muchmusic, which was initially required to ensure that 10 percent of all video clips broadcast on any given day are Canadian. This requirement rose on a yearly basis to 30 percent in 1989. In 1987, the CRTC licensed a similar French-lan- guage music video pay television service, Musique Plus.

PERFORMING RIGHTS AND MECHANICAL LICENSING ORGANIZATIONS

In Canada, until 1990, there had been two performing rights societies — Composers, Authors and Publishers Association of Canada Limited (CAPAC) and Performing Rights Organization of Canada Ltd. (PRO Canada) — whose origins may be traced to ASCAP and BMI, U.S., respectively.

CAPAC was formed in 1 924. The aim of the Association was to pro- mote professional interests of music composers, lyric writers and their editors. Its essential role was to collect and distribute fees on public per- formances of the music owned by these persons. Composers, authors or editors cannot, by their own means, supervise the performances which can be made of their works, look after collection of fees and institute law- suits every time their requirements are not met. Thus, they created this Association to be able to collect money in compensation for the public performances of their works. CAPAC collected fees in the form of licenses, from venues where

there are public performances of members' works. The monies thus col- lected were then distributed to the members and to those of affiliated associations, according to the performances of their works in such places, in conformity with the distribution regulations passed by the board of directors of CAPAC. The only deductions made were the costs of administering the Association, in the order of 18 percent.

Formed in 1947 as BMI Canada Ltd., its name and identity as an inde- pendent Canadian performing rights society was changed in 1976 to Performing Rights Organization of Canada Limited. PRO Ltd. was a Canadian not-for-profit performing rights society, collecting license fees from the "users" of music on behalf of 23,000 Canadian composers, authors and music publishers, and thousands of foreign copyright own- ers whose works are licensed in Canada by PRO Canada.

Aside from its main role of collecting license fees and paying perfor- mance royalties, PRO Canada had, since the 1940s, assumed as part of its mandate the role of promoting and encouraging the use of Canadian music. Each fall PRO Canada sponsored an annual awards dinner, the only event in Canada that specifically honors composers and music pub-

474 APPENDIX

lishers. PRO Canada had, for more than 20 years, sponsored — without charge — talks and music-industry panels across Canada as part of its Speakers Program.

The PRO Canada awards program included the presentation every two years of $10,000 to Canadian orchestras for the imaginative pro- gramming of contemporary music; $8,000 presented annually in its Young Composers Competition; and $2,500 annually to a law student for a paper dealing with copyright as it applies to music.

Fifteen to twenty percent of PRO Canada's gross revenue covered its operating expenses. The balance was distributed to its affiliated com- posers and publishers.

In 1990, CAPAC and Pro Canada merged to form one performing rights society, the Society of Composers, Authors, and Music Publishers of Canada (SOCAN).

The Canadian Musical Reproduction Rights Agency (CMRRA) is the Canadian equivalent of The Harry Fox Agency, a mechanical licensing agency.

RECORD PRODUCING ASSOCIATIONS

Canadian Independent Record Producers Association (CIRPA)

CIRPA was incorporated in 1975 to represent the interests of indepen- dent producers in the recording industry. By 1979 it was apparent that not only producers, but labels, managers and studios could benefit from representation. Thus, CIRPA's mandate shifted to include all sectors of the recording industry.

CIRPA is governed by a board of directors which meets regularly to review the organization's development and to set objectives for future progress. While the organization must stand, first and foremost, for the rights of its members, it also recognizes the importance of other indus- tries and that, for the benefit of Canadian artists, all sectors must work together to accomplish common goals. To that end, CIRPA initiated the formation of two additional but overlapping organizations —

The CIRPA/ADISO Foundation

The CIRPA/ADISQ Foundation was set up in conjunction with CIRPA's counterpart organization in Quebec, I'Association du disque et de Industrie du Spectacle Quebecois (ADISQ), to administer and develop the Canadian Record Catalogue — a complete listing of Canadian recordings designed to assist many sectors of the industry including record retailers and radio programmers. Developed from a highly sophis- ticated database which could become a blueprint for any cultural industry in the world, the Catalogue is available in print or on microfiche. On-line services provide a wealth of information which can be tailored to sub- scribers' specifications. The board of directors of the Foundation is comprised of three CIRPA members, three ADISQ members and a sev- enth member who is appointed by the other six.

CANADIAN MUSIC INDUSTRY 475

Foundation to Assist Canadian Talent On Records (FACTOR)

FACTOR was established in conjunction with several broadcast compa- nies to provide direct assistance to a wide range of industries that

support musical talent. The present program offers interest-free loans to eligible companies and artists for the production of Canadian recordings.

Future programs include a demo grant fund, tour support, and music video production. FACTOR'S board of directors is comprised of three members of the broadcast industry who have contributed to the Founda- tion, two members of CIRPA, a representative of the Canadian Music Publishers Association (CMPA) and a seventh member, chosen by the

other six.

Copyright in Canada is regulated by the Bureau of Intellectual Property of the Canadian Government's Department of Consumer and Corporate Affairs, in Ottawa. The Canadian Copyright Act was enacted in 1924 and was not modified until 1988. The statutory mechanical rate established in 1924 was two cents per song, for each recording sold, up to the first five minutes, and one-half cent additional for each minute over five minutes,

per recording. Synchronization rights and grand rights are negotiable.

For pop and rock concerts, venues pay one percent of gross box-office

receipts per annum, through SOCAN to copyright owners, for performing rights in venues exceeding one hundred-person capacity. For serious

music concerts, the fee is one-quarter of one percent. As of this writing, there is no statutory mechanical rate. However,

CMRRA and the major record manufacturers have negotiated a five-and- one-quarter-cent per-song rate up to five minutes, plus 1 .05 cents per

each additional minute paid by manufacturers to CMRRA. CMRRA divides 95 percent of its income with its 20,000 members.

The Copyright Tribunal is the Canadian government body which regu-

lates the fees that the SOCAN performing rights society may charge broadcasters and venues on behalf of its members and affiliates.

THE RECORD COMPANIES

The Canadian recording industry is dominated by multinational record

labels known worldwide — A&M, CBS, Capitol, MCA, Polygram, RCA and WEA. Quality Records, founded in 1950, is a totally Canadian record company which not only distributes American labels (such as Motown) but also releases Canadian artists on its own Quality label. Like

several of the other majors, Quality, for a generation, has had its own

record manufacturing plant and national distribution system. Island

Records and Virgin Records also have offices in Canada.

A number of smaller, totally independent, Canadian labels have been successful including Alert, Anthem, Aquarius, Attic, Boot, Ready and

True North. With the exception of self-distributed Boot Records, these

476 APPENDIX

independent record companies' products are distributed through the major record companies. A number of independent national and regional record distributors and

rack jobbers exist including A and B, Kelly, Handleman, Roblan and Sound and Sight. A unique organization, World Records, coordinates the production

(from concept to finished product) of more than 1 ,200 custom record albums annually for clients — which include individual record producers, artists, managers, schools and other institutions — who want a custom record produced and cannot obtain, or do not want, a record deal with a major label. Some of World Records' clients include major artists of major labels.

The Canadian Recording Industry Association (CRIA), the equivalent of the Recording Industry Association of America (RIAA), is an associa- tion of major record companies which, among other things, is responsible for (a) tracking recording music sales by category of music and recorded format and (b) certifying gold (singles: 75,000, albums: 50,000) and platinum (singles: 150,000, albums: 100,000) recording units sold.

The Canadian Academy of Recording Arts and Sciences (CARAS), the equivalent of NARAS in the U.S., was established in 1975 as an industry association whose goals are to foster the development of the Canadian music and recording industries and to contribute towards high- er artistic standards. Membership is open to anyone working in industry-related fields. CARAS is responsible for producing the annual Juno Academy Awards telecast. In 1989, the organization launched an Academic Support Program which provides scholarships for study in accredited music industry arts programs throughout Canada.

The following table illustrates the origin and/or affiliations of Canadian record productions as a percentage of the total of Canadian-produced recordings released in the U.S. and listed on Billboard charts during a recent one-year period.

% CIRPA member producers 60 CRIA members 20 Multinationals outside Canada 10 International independent deals 10

1 00%

The above indicates that the majority of record deals between produc- ers/artists and labels is not done through the major Canadian labels but directly with head offices of multinationals in the U.S. and access points other than Canadian majors.

One reason for this may be that, in the case of the majors in Canada, ultimate decision-making is vested in the U.S. head office, although sev- eral Canadian major head offices maintain that they have ultimate decision-making power. Canadian artists and producers have always felt that a significantly larger percentage of record company profits ought to go towards development of new Canadian recording projects and not be returned to head offices in the U.S. In recent years the commercial

CANADIAN MUSIC INDUSTRY 477

potential of Canada's most creative artists has been increasingly recog-

nized. Therefore, major record companies are becoming more receptive

to investing seed money in new recording artists, provided the artist can demonstrate backing by solid professional management. The implemen- tation of the Free Trade Agreement between Canada and the U.S. in 1990 will definitely impact the creative and business aspects of the

Canadian industry, although it is premature to predict in which ways.

ARTIST MANAGEMENT

There is a paucity of professional artist managers in Canada. However,

the handful who do exist can compete with the best anywhere. They include Bruce Allen Management (Loverboy, Bryan Adams), Leonard Rambeau (Anne Murray), Early Morning Productions (Gordon Lightfoot), Terry Flood Management (April Wine, Corey Hart), SRO (Rush), Feidler and Finklestein (Carol Pope, Rough Trade, Murray McLaughlin).

CONCERT PROMOTION

Three concert promoters handle most of the large pop music concerts

across Canada. This includes the major international recording acts as

well as those of Canadian origin. They are Concert Productions Interna- tional (CPI), Toronto; Donald K. Donald Productions, Montreal, and Perryscope of Vancouver.

NATIONAL TRADE PRESS

RPM Music Weekly and The Record are national weekly trade papers covehng news events and providing record charts. Canadian Musician and Music Express are national bimonthly and monthly magazines, respectively, geared toward the professional and semipro musician.

There are also several audio and audio/video monthly magazines.

GOVERNMENT CROWN CORPORATIONS

There are two major Crown Corporations (federal government-operated organizations) that merit special mention. The Canadian Broadcasting Corporation (CBC) is the national radio (AM and FM) and television net- work which produces original dramatic, musical, documentary, comedy and news programs through the radio and television stations that it owns and operates across the country. The objective of the CBC is to produce and air programs that express the unique character of Canadian culture

and which are not likely to be produced and distributed by the commer-

cial broadcasters because they may lack commerciality. The National Film Board of Canada was established in 1939 by John

Grierson, the father of the documentary film, as a propaganda measure

478 APPENDIX

to promote Canada worldwide. It has since developed an international reputation for producing some of the world's most creative documentary films on every subject imaginable. The NFB has won the Oscar many times in Hollywood for the best documentary production. NFB produc- tions are distributed worldwide and are often aired on the CBC television network.

The Canada Council is the government agency which funds the arts nationally, including symphony orchestras, opera companies, theatres, ballet companies and individual artists. A special program of funding called "Explorations" is available, on a competitive basis, to individual

Canadians who wish to explore a specific aspect of their art form for a specified period of time with financial assistance from the Canada Council.

The Canadian Film Development Corporation was established a few years ago to develop a private, commercially-viable film industry by pro- viding government funds to aid film producers in their productions as well

as provide tax benefits to private film investors. A similar setup has been suggested for the music recording industry, but it has not materialized.

THE FRENCH CANADIAN MUSIC INDUSTRY

The province of Quebec, with a captive audience of nearly five million French-speaking people, has created the setting for a unique, totally

integrated, complete and independent music (recording) entertainment industry with its own songwriters, publishers, recording artists and per- formers, radio and television broadcasters, theatres, concerts, managers, promoters, television and record producers, fan magazines,

trade papers and magazines {Radio Activite and Musicien Quebecois),

record charts, record labels and distributors, recording studios and industry associations (ADISQ). A large recording industry produces and synchronizes French language sound tracks to the major American tele-

vision programs and feature films that are shown in the Province of Quebec. French language recording artists from Quebec get exposure in France as well as at home. Internationally-known French artists like Charles Aznavour and Michel Legrand have produced recordings in major Quebec recording studios.

AN INDUSTRY IN ITS INFANCY

Because the best creative talents (composers, performers, record pro- ducers, sound engineers, managers) tend to leave the country in search

of the major music/recording centers such as New York, Nashville, Los Angeles and London, the Canadian music/entertainment industry is left

with a dilemma — how to develop a viable industry of its own. One way is through an organized, intensive development of its human resources. In 1979, the Trebas Institute of Recording Arts was founded as a nation- al professional training organization. Its goals are to improve the

music/recording industry in Canada by developing its human resources.

CANADIAN MUSIC INDUSTRY 479

Trebas campuses are located in Montreal, Ottawa, Toronto and Vancou- ver. In 1985, Trebas opened a campus in Hollywood, California.

THE FUTURE

As the technology of communications (recording equipment, electronic music instruments, video communications and telecommunications) increases in complexity, people will have to learn to adapt to these changes. The legal system (in terms of copyright) will have to respond to these new developments. The antiquated distribution system of recorded music will also change radically, as information (music and pictures) increasingly moves through wires and through the air — not via tradition- al transportation systems. Industry ethics should become a more important issue in the years ahead. The future success of the music/recording industry lies in the ability of its leadership to sense, nur-

ture and develop every category of its human resources and to identify how these resources can be sculptured into the world mold that is known as the art, science and business system of the music/recording industry.

D.P.L

480 APPENDIX

INTERNATIONAL COPYRIGHT

For over a century, countries of the world have been making attempts to bring their copyright laws into some kind of uniformity. Artists, publishers and governments have long recognized the advantages that would accrue to the benefit of all if uniform, reciprocal protection could be developed for intellectual properties. While this ideal goal may never be reached, significant progress toward worldwide agreement on copyrights has been made in the twentieth century.

Protection against unauthorized use of musical works in a particular country still depends basically on the national laws of that country. But special difficulties arise when nationals of one country seek protection of their works around the world. In the last 100 years, a number of interna- tional treaties have been developed which offer, in some instances, generally good protection internationally. The U.S. Copyright Office urges composers and publishers who wish copyright protection in a par- ticular country to first find out the extent of protection for foreign works available in that country. If possible, this information should be acquired before the work is published anywhere, since protection may depend upon the particular situation prevailing at the time of first publication. While nearly all developed countries adhere to at least one international copyright agreement, the U.S. Copyright Office warns that ". . . some countries offer little or no copyright protection for foreign works under any circumstances." One major country. The People's Republic of China, did not participate in international copyright protection until 1980. While China has not joined any copyright union, in that year it negotiated a trade agreement (most favored nation status) which included reciprocal copyright protection with the United States.

The USSR joined the Universal Copyright Convention in 1973.

THE BERNE CONVENTION

The first significant international copyright agreement was reached in Berne in 1886, where the Swiss government hosted a convention of prin- cipal European countries. This agreement together with subsequent "Berne conventions" comprise the International Union for the Protection

of Literary and Artistic Works, better known as the Berne Union. It is ad- ministered by the World Intellectual Property Organization (WIPO).

Generally, each member nation agrees to minimum levels of copyright protection abroad and also agrees to treat nationals of other countries as nationals of their own, for copyright purposes. The Berne countries have periodically held meetings to revise and update their agreements in response to changing international conditions and developing communi- cations technology.

The first such meeting occurred in Paris in 1896; at the next, in Berlin in 1908, the Berne countries completely abandoned copyright "formali- ties" except those required for a country's own nationals (in this context, "formalities" includes such things as copyright notice, registration, depo-

INTERNATIONAL COPYRIGHT 481

sit and fee). The Berlin meeting also brought about an expansion of pro- tected works to include the artistic field, including music.

The Rome revision (1928) recognized the growing importance of radio broadcasting. In addition, Rome gave recognition to the "moral rights" of authors, namely, the right of authors to object to a "distortion, mutilation

or other alteration" of their work, even after a work has been assigned to

another person. The moral rights of authors has been a distinguishing feature of the Berne Union.

Membership in Berne is open; a nation wishing to join need only notify

the Swiss government of its intent to adhere (a Union member may with- draw just as easily). Each Berne Union member is privileged, also, to adhere only to the particular portions of the conventions to which it has

committed itself. Thus, any person testing a particular issue will find it

necessary to first learn precisely which conventions (comprising the

Union) have been subscribed to by a particular country.

The United States did not join the Berne Convention until March 1

1989, in part because of the "moral rights" provision; some publishers, film producers and broadcasters had traditionally lobbied against con-

straints upon the alteration and revision of copyrighted works. Accord-

ingly, the U.S. has chosen not to adopt this provision, as it conflicts with

the standard film industry practices described throughout this book (see

"Work Made for Hire"). Upon joining Berne, the U.S. amended its own Copyright Law to satis-

fy its obligations under the treaty. Mandatory notice of copyright was abolished, though voluntary use is still strongly encouraged. Notice for

works published before March 1, 1989 remains unchanged. Registration

is a prerequisite to an infringement action for U.S. works under Berne,

although recordation of a transfer is not. Jukebox licenses are no longer

compulsory and are now negotiated between the interested parties — the user (the jukebox operator) and the copyright owner. A convenient summary of the highlights of U.S. Berne Convention adherence can be found in Copyright Office Circulars # 93 and 93a, or the entire Copyright

Law since Berne is available in Circular # 92. In general, protection under the Berne Union is extended without for-

malities to works by nationals of any country on the sole condition that

first (or simultaneous) publication takes place in a country that belongs

to the Berne Union. Before the U.S. joined, many American nationals sought Berne Union protection by arranging a simultaneous publication

in Canada, a Berne member. Now, protection is automatic upon publica-

tion in the U.S. (or any other Berne country).

The Berne Union requires that, in respect to publication, works be "issued and made available in sufficient quantities to the public," but does not consider performances and broadcasts as publication.

The Berne Convention was almost exclusively a union of European countries. In 1888, two years after the Berne Union was organized. South American countries met in Montevideo, Uruguay. In the following

482 APPENDIX

year, this meeting resulted in the Montevideo Treaty of 1889. But wide- spread adherence of other countries did not follow, and the [Montevideo Treaty is no longer in force.

1902 saw the enactment of the Mexico City Treaty, which adopted the Berne Union concept of granting protection for authors according to the law of the territory where protection was claimed. The Mexico City Treaty differs from Berne, however, in respect to its requirement of registration

and deposit of copies in the country of origin as well as in all countries where protection of the work is desired. While this treaty still governs copyrights between the United States and El Salvador (and between El Salvador and the Dominican Republic), it remains limited in importance

because copyright agreements between most American countries (Cuba, Mexico and Venezuela excluded) and the U.S. are governed by the Buenos Aires Convention of 1910. Besides the U.S., members of the Buenos Aires Convention include Argentina, Brazil, Chile, Columbia, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Haiti, Hon-

duras, Nicaragua, the Republic of Panama, Paraguay, Peru, and Uruguay. The essence of this convention is expressed in the fact that compliance with the copyright law of the country of first publication quali-

fies the work for protection in the other member countries. The Buenos Aires Convention includes one additional stipulation to secure copyright: each work must carry a notice indicating that property rights in the work are reserved. This requirement lias been traditionally satisfied by American nationals with the inclusion of the words, "All rights reserved" as part of the copyright notice. The Buenos Aires Conven- tion otherwise does not require any formalities except for those required

by the country of origin.

THE UNIVERSAL COPYRIGHT CONVENTION

While the Buenos Aires Convention governs U.S. copyright relations with most American nations, the treaty is unlikely to attract additional mem- bers because of the establishment of the Universal Copyright Con- vention, which the United States joined in 1955. Initial meetings to set up

UCC were sponsored by the United Nations in 1952 and took place in Geneva. The treaty came into force September 16, 1955. The UCC, as revised in Paris in 1971, took effect July 10, 1974, and was significant in that it gives the copyright owner the exclusive right to broadcast the copyrighted work (the Universal Copyright Convention should not be confused with the Uniform Commercial Code, which is also commonly referred to as the UCC). One of the advantages of the Universal Copyright Convention is that it

reduces to a minimum the formalities for securing copyrights among par- ticipating countries, although the Berne Convention reduces them even more. As a general rule, the UCC requires a participating country to give to foreign works the same protection it offers to the works of its own nationals. To qualify for protection under the UCC, a work must have been written by a national of a participating country or must have been published for the first time in a UCC country.

INTERNATIONAL COPYRIGHT 483

The UCC requires that if formalities are required by a country, then compliance may be had if all copies bear the copyright symbol ©, the name of the copyright proprietor and the year of first publication — in such a manner and location as to provide reasonable notice of claim to copyright. Further formalities can be waived or added by a member country for its own nationals and for works first published in its territory. Consequently, nationals of the United States were required to follow the formalities set forth in the 1976 Copyright Act, until the U.S. joined the Berne Convention.

One of the goals of the sponsor of the UCC, the United Nations, was to attract a maximum number of adherents. To this end, the number of exclusive rights UCC grants to its members were held to a minimum level of "adequate and effective protection." The treaty's language here states that such protection includes ". . . basic rights insuring the author's economic interests, including the exclusive rights to authorize reproduc- ing by any means, public performance and broadcasting." It is important to note that this protection extends to works, not only in their original

form, but to any form which is recognizably derived from the original. An important aspect of UCC is that it provides contracting states the

right to grant exclusive rights of translation to foreign authors for a period of seven years. It should be pointed out that U.S. law and the Buenos Aires Convention give translation rights to authors without time limitation.

The UCC had, as one of its goals, the avoidance of competition with other prevailing international copyright agreements, particularly Berne and the inter-American treaties. In respect to the Buenos Aires Treaty, the UCC language provides that, where there is a difference of provi- sions, "the most recently formulated convention" shall prevail.

BILATERAL COPYRIGHTAGREEMENTS

In addition to conventional, multinational copyright treaties, the United

States has a number of bilateral understandings with other nations. Both the 1909 and 1976 U.S. copyright acts provide for the President of the United States to set up special copyright agreements by proclamation. Prior to this country's joining of UCC and Berne, such bilateral arrange- ments were the primary method for U.S. nationals to obtain copyright protection abroad.

In general, these treaties extend to foreign nationals the same protec- tion their countries offer American citizens. But foreign nationals are required, whatever their domestic statutes may provide, to adhere to the copyright formalities stipulated in the U.S. Act of 1976, unless they are

from a Berne Union country.

GENEVA PHONOGRAM CONVENTION

When the Berne and UCC convention countries met in Paris in 1971 to revise their respective agreements, their governing bodies developed a new convention governing copyrights in phonograms (records and

484 APPENDIX

tapes). It is officially known as the "Geneva Convention of October 29, 1971, for the Protection of Producers of Phonograms against Unautho- rized Duplication." The Convention defines phonograms as ". . .any ex- clusively aural fixation of sounds of a performance or of other sounds." The phonogram "producer" is deemed to be the person who first fixes such sounds, and the intent of the convention is to protect producers. This includes protection against importation of unauthorized phonogram copies as well as against unauthorized local manufacture. Signatories to

the Convention are required to offer such protection in at least one of three areas of law: copyright, unfair competition, and penal sanctions.

To qualify for protection, the producer must print a notice on all auth- orized phonograms or their containers. The form of the notice is iden- tical with one stipulated in the American Copyright Act of 1976: the sym- bol®, the copyright proprietor's name and the date of first publication. But, as with UCC, the notice is required only of member nations which call for copyright formalities as a condition of copyright. All formalities

required by the Phonogram Convention are deemed fulfilled by use of the notice.

The United States ratified the Geneva Phonogram Convention in 1973, and the 1976 Copyright Act expressly includes its provisions.

\-ia

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486 APPENDIX

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502 APPENDIX

ASCAP WRITER APPLICATION

W APPLICATION FOR WRITER-MEMBERSHIP

IN THE

AMERICAN SOCIETY of COMPOSERS, AUTHORS and PUBLISHERS One Lincoln Plaza. New York. NY 10023 FULL D STANDARD D AUTHOR Q

I hereby apply for membership as a ASSOCIATE D POPULAR PRODUCTION D COMPOSER D in the American Society ol Composers, Authors and Publishers II elected, I agree to be bound by the Society's Articles ol Association, as now in effect and as they may be amended, and I agree to execute agreements in such form and for such periods as the Board of Directors shall have approved or shall hereafter approve for all members

The following Inlormation la aubmltlad In aupport ol Ihit tppllcallon:

1. Full Nam*: Mr. Mlu Mr*. M*.

(First Name) (Middle Name or Initial) (Last Name)

2. P*«udonyin*, I) any (no mora than lour)

3. Horn* AddroM:

n (Street) (City) (State) (Zip Code) (Area Code & Tel #)

Busin*** Addn*s (II lam* a* abova, will* "aam*"):

D (Street) (City) (State) (Zip Code) (Area Code & Tel. f)

Pleat* ct<*ck to wlilch addrau your mall It to b* «*nt.

4. Data ol Birth:

Plactol Birth:

5. CItlzanof:

6. Social Sacurity «:

7. I am D , or hav* b**n D , a writar or publlih*r m*mb*r or alllllat* ol ASCAP, BMI or SESAC, or ol a loralgn parformlng right* Itewiilng organization (Chack on* ol appllcabla)

M you have ch*ck*d on* ol th* bo>*> alMV*, pisaa* ltd* Ih* n*m* ol Ih* organization with which you ware afllllatad, ralatlonahip, and tho period ol your alllliatlon. and attach a copy ol your r*l*aa* II appllcabi*:

II publi*h*r m*mlMr or alllllat*. pi**** ll>t llrm nam*

8. I hav* G , do not ha«* D , a retatlva Oncluding broth*r, ilitar, huaband, wlla, cMM or any othar r*latlon) who la afflilatad with mi oiganlzallon ral*rT*d to In ll*m 7. (CiMCk th* appllcabla box)

II you aniwarad allIrmathwiy, plaaaa giv* th* nam* ol any (uch person, relationship to you and organization with which afllllatad:

t. I hav* a, hav* not D, p*ld * record company or publlahing company to hava th* worfca which lorm th* baala for my mambarahlp put>llah*d or r*cord*d. (Ch*ck th* appllcabla box).

If you hav* answ*r*d y** to th* almv*, pi**** Indlcat* which works ware Included and to whom payment was mad*:

10. Th* musical works of which I sm composer or author are listed on tlM oppodt* page. I r*pr***nt that th*re are no axisting ssslgnm*nti or llc*ns*s, direct or Indlrsct ol non-dramatic performing rights In or to sny of th* works so llat*d, axcapt with publl*h*ra ol such works. II than are asslgnmsnts or llcans** othsr lh*n with publlsti*re, I hav* *ttsch*d tru* copto*. I hav* r*ad th* SocMy's Artlcl** ol Assoc!stton and make this appllcaton with lull knowl*dg* ol th*lr contwit*.

I warrant and represent that all of the information furnished in this application is true I acknowledge that any contract Ijetween ASCAP and me will be entered into in reliance upon the representations contained in this application, and that the contract will be subject to cancellation if the information contained in this application is not complale and accurate

Signature Date

APPENDIX 503

ASCAP AGREEMENT WITH WRITER OR PUBLISHER

AGREEMENT made between the Undersigned (for brevity called "Oumer") and the AMERICAN SOCIETY OF COMPOSERS, AUTHORS AND PUBLISHERS (for brevity called "Society"), in consideration of the premises and of the mutual covenants hereinafter contained, as follows:

1. The Owner grants to the Society for the term hereof, the right to license non-dramatic public performances (as hereinafter defined), of each musical work:

Of which the Owner is a copyright proprietor; or

Which the Owner, alone, or jointly, or in collaboration with others, wrote, composed, published, acquired or owned; or

In which the OuJner now has any right, title, interest or control whatsoever, in whole or in part; or

Which hereafter, during the term hereof, may be written, composed, acquired, owned, published or copyrighted by the Owner, alone, jointly or in collaboration with others; ur

In which the Owner may hereafter, during the term hereof, have any right, title, interest or control, whatsoever, in whole or in part.

The right to license the public performance of every such musical work shall be deemed granted to the Society by this instrument for the term hereof, immediately upon the work being written, composed, acquired, owned, published or copy- righted.

The rights hereby granted shall include:

(a) All the rights and remedies for enforcing the copyright or copyrights of such musical works, whether such copyrights

are in the name of the Owner and/or others, as well as the right to sue under such copyrights in the name of the Society and/or in the name of the Owner and/or others, to the end that the Society may effectively protect and be assured of all the rights hereby granted.

(b) The non-exclusive right of public performance of the separate numbers, songs, fragments or arrangements, melodies or selections forming part or parts of musical plays and dramatico-musical compositions, the Owner reserving and excepting from this grant the right of performance of musical plays and dramatico-musical compositions in their entirety, or any part of

Nuch plays or dramatico-musical compositions on the legitimate stage.

(c) The non-exclusive right of public performance by means of radio broadcasting, telephony, "wired wireless," all forrru. of synchronism with motion pictures, and/or any method of transmitting sound other than television broadcasting.

(d) The non-exclusive right of public performance by television broadcasting, provided, however, that;

(i) This grant does not extend to or include the right to license the public performance by television broadcasting

or otherwise of any rendition or performance of (a) any opera, operetta, musical comedy, play or like production, as

such, in whole or in part, or (b) any composition from any opera, operetta, musical comedy, play or like production

(whether or not such opera, operetta, musical comedy, play or like production was presented on the stage or in motion

picture form) in a manner which recreates the performance of such composition with substantially such distinctive

scenery or costume as was used in the presentation of such opera, operetta, musical comedy, play or like production

(whether or not such opera, operetta, musical comedy, play or like production was presented on the stage or in motion

fiicture form); provided, however, that the rights hereby granted shall be deemed to include a grant of the right to

icense non-dramatic performances of compositions by television broadcasting of a motion picture containing such compo-

sition if the rights in such motion picture other than those granted hereby have been obtained from the parties in interest,

(ii) Nothing herein contained shall be deemed to grant the right to license the public performance by television

broadcasting of dramatic performances. Any performance of a separate musical composition which is not a dramatic

performance, as defined herein, shall be deemed to be a non-dramatic performance. For the purposes of this agreement,

a dramatic performance shall mean a performance of a musical composition on a television program in which there is a

definite plot depicted by action and where the performance of the musical composition is woven into and carries forward

the plot and its accompanying action. The use of dialogue to establish a mere program format or the use of any non-

dramatic device merely to introduce a performance of a composition shall not be deemed to make such performance

dramatic.

(ui) The definition of the terms "dramatic" and "non-dramatic" performances contained herein are purely for the

purposes of this agreement and for the term thereof and shall not be binding upon or prejudicial to any position taken

by either of us subsequent to the term hereof or for any purpose other than this agreement.

(e) The Owner may at any time and from time to time, in good faith, restrict the radio or television broadcasting of

compositions from musical comedies, operas, operettas and motion pictures, or any other composition Ix^ing excessively broad-

cast only for the purpose of preventing harmful effect upon such musical comedies, operas, operettas, motion pictures or

c-om'positions, in respect of other interests under the copyrights thereof; provided, however, that the right to grant lunited

licenses will be given, upon application, as to restricted compositions, if and when the Owner is unable to show reasonable

hazards to his or its major interests likely to result from such radio or television broadcasting, and provided further that such

right to restrict any such composition shall not be exercised for the purpose of permitting the fixing or regulatmg of fees for

the recording or transcribing of such composition, and provided further that in no case shall any charges, free plugs or

other consideration be required in respect of any permission granted to oerform a restricted composition; and provided

further that in no event shall any composition, after the initial radio or television broadcast thereof, be restricted for the

purpose of confining further radio or television broadcasts thereof to a particular artist, station, network or program. The

Owner may also at any time and from time to lime, in good faith, restrict the radio or television broadcasting of any compo-

sition, as to which any suit has been brought or threatened on a claim that such composition infringes a composition not

contained in the repertory of Society or on a claim by a non-member of Soci««v that Society does not have the right to

license the public performance of such composition by radio or television broadcasting.

2. The term of this agreement shall be for a period commencing on the date hereof and expiring on the 31st day of

December, 1995.

3. The Society agrees, during the term hereof, in good faith to use its best endeavors to promote and carry out the

objects for which it was organized, and to hold and apply all royalties, profits, benefits and advantages arising from the

exploitation of the rights assigned to it by its several members, including the Owner, to the uses and purposes as provided

in its Articles of Association (which are hereby incorporated by reference), as now in force or as hereafter amended.

504 APPENDIX

4. The Owner hereby irrevocably, during the term hereof, niilhorizes. empowers and vests in the Society the right to enforce and protect such rights of public performance under any and all copyrights, whether standing in the name of the Owner and/or others, in any and all works copyrighted bv the Owner, and/or by others, to prevent the infringement thereof, to litigate, collect and receipt for damages arising from infringement, and in its solt* judgment to join the Owner and/or others in whose names the copyright may stand, as parties plaintiff or defendants m suits or proceedings, to bring suit in the name of the Owner and/or in the name of the Society, or others in whose name the topynght may stand, or otherwise, and to release, compromise, or refer to arbitration any actions, in the same manner and to the same extent and to all intents and purposes as the Owner might or loiild do. hiul this instrument not b*'en made

5. The Owner hereby makes, constitutes and appoints the Society, or its successor, the Owner's true and lawful attorney. irrevocably during the term hereof, and in the name of the Society or its successor, or in the name of the Owner, or otherwise, to do all acts, take all proceedings, execute, acknowledge and deliver any and all instruments, papers, documents, process ana pleadings that may be necessary, proper or expedient to restrain infringements and recover damages in respect to or for the infringement or other violation of the rights of public performance in such works, and to discontinue, compromise or refer to arbitration any such proceedings or actions, or to make any other disposition of the differences in relation to the premises.

6. The Owner agrees from time to time, to execute, acknowledge and deliver to the Society, such assurances, powers of attorney or other authorizations or instruments as the Society may deem necessary or expedient to enable it to exercise, enioy and enforce, in its own name or otherwise, all rights and remedies aforesaid.

7. It is mutually agreed that during the term hereof the Board of Directors of the Society shall be composed of an equal number of writers and publishers respectively, and that the royalties distributed by the Board of Directors shall be divided into two (2) equal sums, and one (1) each of such sums credited respectively to and for division amongst (a) the writer members, and (d) the publisher members, in accordance with the system of distribution and classification as determined by the Classification Committee of each group, in accordance with the Articles of Association as they may be amended from time to time, except that the classification of the Owner within his class may be changed.

8. The Owner agrees that his classification in the Society as determined from time to time bv the Classification Com' mittee of his group and/or The Board of Directors of the Society, in case of appeal by him. shall be final, conclusive and binding u[)on him.

The Society shall have the right to transfer the right of review of any classification from the Board of Directors to anv other agency or instrumentality that in its discretion and good judgment it deems best adapted to assuring to the Society s membership a just, fair, equitable and accurate classification.

The Society shall have the right to adopt from time to time such systems, means, methods and formulae for the establish- ment of a member's status in respect of classification as will assure a fair, just and equitable distribution of royalties among the membership.

9. "Public Performance" Defined. The term "public performance" shall be construed to mean vocal, instrumental and/or mechanical renditions and representations in anv manner or by any method whatsoever, including transmissions by radio and television broadcasting stations, transmission by telephony and/or "wired wireless", and/or reproductions of per- formances and renditions by means of devices for reproducing sound recorded in synchronism or timed relation with the taking of motion pictures.

10. "Musical Works" Defined. The phrase "musical works' shall be construed to mean musical compositions and dramatico-musical compositions, the words and music thereof, and the respective arrangements thereof, and the selections therefrom.

11. The powers, rights, authorities and privileges bv this instrument vested in the Society, are deemed to include the World, provided, however, that such grant of rights for foreign countries shall be subject to any agreements now in effect, a list of which are noted on the reverse side hereof.

12. The grant made herein by the owner is modified by and subject to the provisions of (a) the Amended Final Judg- ment (Civil Action No. 13-95) dated March 14, 1950 in U S. A. v. ASCAP as further amended by Order dated January 7, 1960, (b) the Final Judgment (Civil Action No. 42-245) in U. S. A. v. ASCAP. dated March 14, 1950. and (c) the pro- visions of the Articles of Association and resolutions of the Board of Directors adopted pursuant to such judgments and order.

SIGNED. SEALED AND DELIVERED, on this day of..

Owner -l

AMERICAN SCX:iETY OF COMPOSERS. AUTHORS AND PUBLISHERS.

Society

APPENDIX 505

BMl WRITER APPLICATION

A WRITER APPLICATION

APPLICATION WILL NOT BE ACCEPTED UNLESS ALL QUESTIONS ARE FULLY ANSWERED Date;

PLEASE PRINT Mr.

1. FULL LEGAL NAME: Ms. Miss (First Name) Mrs.

(Middle Name or Initial)

D D

HOME ADDRESS: (Check one address to which all mail is to be sent)

(Street) ^

(City)

BUSINESS ADDRESS; (If same as above, write "same")

(Zip Code) (Phone Number)

(Street)

4. DATE OF BIRTH; _

(City)

(Month) (Day) (Year)

5. LIST ALL PEN NAMES WHICH YOU HAVE USED OR WILL USE AS A WRITER;

(Zip Code)

CITIZENSHIP;

(Phone Number)

(Country)

6. Are you now or have you ever Ijeen a writer-member or writer-affiliate of BMI, ASCAP, SESAC or any foreign performing rights licensing organization? If so, slate name of organization and the period during which you were a member or affiliate:

7. Is your spouse, parent, brother, sister, child or any other relative a writer-member or writer-affiliate of any organization specified in Question 6? If so,

give name, relationship to you and organization:

8. COMPLETE THE ENCLOSED CLEARANCE FORM listing one composition written by you, either alone or in collaboration with others, which is commercially recorded or being performed or likely to be performed and return it to BMl with the application. A supply of clearance forms for reporting other songs will be sent to you when the processing of your application has been fully completed.

9. SOCL«iL SECURITY NUMBER; (If no Social Security Number is listed, application WILL NOT BE ACCEPTED. Foreign nationals should request Form 1001 from BMI for completion.)

I warrant and represent that all of the information furnished on this application is true. 1 acknowledge that any contract consummated between me and BMI will be entered into in reliance upon the representations contained in this application, and that the contract will be subject to cancellation if any question herein contained is not answered fully or accurately.

SIGNATURE; (Full Ugal Name in Ink)

(If applicant is under 18 years of age, the parent or legal guardian must sign t>elow

and on both copies of agreement)

Guardian Signature;

BMI Writer Administration

320 West 57th Sh-eet New York, NY 10019 212-586-2000

BMI Writer Administration

10 Music Square East Nashville, TN 37203 615-259-3625

BMl Writer Administration

B730 Sunset Blvd., 3rd Floor West

Los Angeles, CA 90069 213-659-9109

PLEASE RETURN APPU(L\TION, AGREEMENTS AND CLEARANCE FORM TO THE BMI OFFICE FROM WHICH THEY WERE RECEIVED.

FOR INTERNAL BMI USE ONLY DATE RCVD: _

CODE Na: DATE: STATUS: JINGLES

TV THEATRE CONCERT JAZZ

D.OFC: ENTERED BY:

VERIFIED:PERIOD: nfn TAF-

506 APPENDIX

BMI WRITER AGREEMENT

Rffi!

A BMI - 320 West 57th Street, New York, NY 10019 • 212-586-2000 • Telex 127823

Dear

The following shall constitute the agreement between us:

1. As used in this agreement:

(a) The word "period" shall mean the term from to

, and continuing thereafter for additional terms of two years each unleaa terminated by either party at the end of said initial term or any additional term, upon notice by registered or certified mail not more than six months or less than sixty (60) days prior to the end of any such term.

(b) The word "works" shall mean:

(i) All musical compositions (including the musical segments and individual compositions written for a dramatic or dramatico-musical work) composed by you alone or with one or more collaborators during the period; and

(iil All musical compositions (including the musical segments and individual compositions written for a dramatic or dramatico-musical work) composed by you alone or with one or more collaborators prior to the period, except those in which there is an outstanding grant of the right of public performance to a person other than a publisher affiliated with BMI.

2. You agree that:

(a) Within ten (10) days after the execution of this agreement you will furnish to us two copies of a completed clearance sheet in the form supplied by us with respect to each work heretofore composed by you which has been published in printed copies or recorded commercially or which is being currently performed or which you consider as likely to be performed.

(b) In each instance that a work for which clearance sheets have not been submitted to us pursuant to sub-paragraph (a) hereof is published in printed copies or recorded commercially or in synchronization with film

or tape or is considered by you as likely to be performed, whether such work is composed prior to the execution of this agreement or hereafter during the period, you will promptly furnish to us two copies of a completed clear-

ance sheet in the form supplied by us with respect to each such work.

(c) If requested by us in writing, you will promptly furnish to us a legible lead sheet or other written or printed copy of a worL

3. The submission of clearance sheets pursuant to paragraph 2 hereof shall constitute a warranty by you that all of the information contained thereon is true and correct and that no performing rights in such work have been granted to or reserved by others except as specifically set forth therein in connection with works heretofore written or co-written by you.

4. Ejuxpt as otherwise provided herein, you hereby grant to us for the period:

(a) All the rights that you own or acquire publicly to perform, and to license others to perform, anywhere in the world, any part or all of the works.

(b) The non-exclusive right to record, and to license others to record, any part or all of any of the works on electrical transcriptions, wire, tape, film or otherwise, but only for the purpose of performing such work publicly by means of radio and television or for archive or audition purposes and not for sale to the public or for synchronization (il with motion pictures intended primarily for theatrical exhibition or (ii) with programs Histrihuted by means of syndication to broadcasting stations.

(cl The non-exclusive right to adapt or arrange any part or all of any of the works for performance purposes, and to license others to do so.

APPENDIX 507

f>. (a) The rights granted to us by sub-paragraph (a I of paragraph 4 hereof shall not include the right to perforin or license the performanre of more than one song or aria from a dramatic or dramatico-niusical work which is an opera, o|)eretta, or musical show or more than five minutes from a dramatic or dramatico-musical work which is a ballet if such performance is accompanied by the dramatic action, costumes or scenery of that dramatic or dramatico-musical work.

(b( You, together with the publisher and your collaborators, if any, shall have the right jointly, by writ-

ten notice to us, to exclude from the grant made by sub-paragraph (a) of paragraph 4 hereof performances of works comprising more than thirty minutes of a dramatic or dramatico-musical work, but this right shall not

apply to such performances from (i) a score originally written for and performed as part of a theatrical or tele-

vision film, (ii) a score originally written for and performed as part of a radio or television program, or (iii). the

original cast, sound track or similar album of a dramatic or dramatico-musical work.

to another performing rights licensing organization), provided that within ten (10) days of the issuance of such

license we are given written notice of the titles of the works and the nature of the performances so licensed by you.

6. (a) As full consideration for all rights granted to us hereunder and as security therefor, we agree to pay to you, with respect to each of the works in which we obtain and retain performing rights during the period:

(i) For performances of a work on broadcasting stations in the United States, its territories and pos- sessions, amounts calculated pursuant to our then current standard practices upon the basis of the then current performance rates generally paid by us to our affiliated writers for similar performances of similar compositions.

The number of performances for which you shall be entitled to payment shall be estimated by us in accordance with our then current system of computing the number of such performances.

It is acknowledged that we license the works of our affiliates for performance by non-broadcast- ing means, but that unless and until such time as feasible methods can be devised for tabulation of and payment

for such performances, payment will be based solely on broadcast performances. In the event that during the period we shall establish a system of separate payment for non-broadcasting performances, we shall pay you upon the basis of the then current performance rates generally paid by us to our other affiliated writers for similar performances of similar compositions.

(ii) In the case of a work composed by you with one or more collaborators, the sum payable to you hereunder shall b: a pro rata share, determined on the basis of the number of collaborators, unless you shall have transmitted to us a copy of an agreement between you and your collaborators providing for a different division

of payment.

(iii) All monies received by us from any performing rights licensing organization outside of the United States, its territories and possessions, which are designated by such performing rights licensing organization as the author's share of foreign performance royalties earned by your works after the deduction of our then cur- rent handling charge applicable to our affiliated writers.

(b) We shall have no obligation to make payment hereunder with respect to (i) any performance of a work which occurs prior to the date on which we have received from you all of the information and material with respect to such work which is referred to in paragraphs 2 and 3 hereof, or (ii) any performance as to which a direct license as described in sub-paragraph (c) of paragraph 5 hereof has been granted by you, your collaborator or publisher.

7. We will furnish statements to you at least twice during each year of the period showing the number of performances as computed pursuant to sub-paragraph (a I (i) of paragraph 6 hereof and at least once during each year of the period showing the monies due pursuant to sub-paragraph (a) (iii) of paragraph 6 hereof. Each state- ment shall be accompanied by payment to you, subject to all proper deductions for advances; if any, of the sum thereby shown to be due for such performances.

8. (a) Nothing in this agreement requires us to continue to license the works subsequent to the termination of this agreement. In the event that we continue to license any or all of the works, however, we shall continue to make payments to you for so long as you do not make or purport to make directly or indirectly any grant of performing rights in such works to any other licensing organization. The amounts of such payments shall be calculated pursuant to our then current standard practices upon the basis of the then current performance rates generally paid by us to our affiliated writers for similar performances of similar compositions. You agree to notify us by registered or certified mail of any grant or purported grant by you directly or indirectly of performing rights to sny other perform- ing rights organization within ten (10) days from the making of such grant or purported grant and if you fail so to inform us thereof and we make payments to yoii for any period after the making of any such grant or purported grant, you agree to repay to us all amounts so paid by us promptly on demand. In addition, if we inquire of you by registered or certified mail, addressed to your last known address, whether you have made any such grant or purported grant and you fail to confirm to us by registered or certified mail within thirty (30) days of the mailing of such inquiry that you have not made any such grant or purported grant, we may, from and after such date, discontinue making any payments to you.

(b) Our obligation to continue payment to you after the termination of this agreement for performances outside of the United States, its territories and possessions shall be dependent upon our receipt in the United

508 APPENDIX

States of payment! designated by foreign performing rights organixationa as the author's share of foreign perform-

ance royalties earned by your works. Payment of such foreigii royalties shall be subject to deduction of our then

current handling charge applicable to our affiliated writers.

performing rights licensing organization other than BMl for or baaed on United States performances of one or more of your works during a period when such works were licensed by us pursuant to this agreement, we shall

have the right to withhold payment for such performances from you until receipt of evidence satisfactory to us of

the amount so paid to you by such other organization or that you have not been so paid. In the event that you

have been so paid, the monies payable by us to you for such performances during such period shall be reduced

by the amount of the payment from such other organization. In the event that you do not supply such evidence

within eighteen (181 months from the date of our request therefor, we shall be under no obligation to make any payment to you for performances o' <>uch works during such period.

9. In the event that this agreement shall terminate at a time when, after crediting all earnings reflected by statements rendered to you prior to the effective date of such termination, there remains an unearned balance of advances paid to you by us, such termination shall not be effective until the close of the calendar quarterly period during which (a I you shall repay such unearned balance of advances, or ibl you shall notify us by registered or certified mail that you have received a statement rendered by us at our normal accounting time showing that such unearned balance of advances has been fully recouped by us.

10. You warrant and represent that you have the right to enter into this agreement; that you are not bound by any prior commitments which conflict with your commitments hereunder; that each of the works, composed by you alone or with one or more collaborators, is original; and that exercise of the rights granted by you herein will not constitute an infringement of copyright or violation of any other right of, or unfair competition with, any person, firm or corporation. You agree to indemnify and hold harmless us and our license's from and against any and all loss or damage resulting from any claim of whatever nature arising from or in connection with the exercise of any of the rights granted by you in this agreement. Upon notification to us or any of our licensees of a claim with respect to any of the works, we shall have the right to exclude such work from this agreement and/or to withhold payment of all sums which become due pursuant to this agreement or any modification thereof until receipt of satisfactory written evidence that such claim has been withdrawn, settled or adjudicated.

11. (a) We shall have the right, upon written notice to you, to exclude from this agreement, at any time, any work which in our opinion (i^s similar to a previously existing composition and might constitute a copyright infringement, or liil has a lille or music or lyric similar to that of a previously existing composition and might lead to a claim of unfair competition, or (iii) is offensive, in bad taste or against public morals, or (iv) is not reasonably suitable for performance.

(bl In the case of works which in our opinion are based on compositions in the public domain, we shall have the right, upon written notice to you, either (i) to exclude any such «ork from this agreement, or (ii) to classify any such work.' as entitled to receive only a fraction of the full credit that would otherwise be given for performances thereof.

(c) In the event that any work is excluded from this agreement pursuant to paragraph 10 or sub- paragraph (a) or (b) of this paragraph 11, all rights in such work shall automatically revert to you ten (10) days after the date of our notice to you of such exclusion. In the event that a work is classified for less than full credit under sub-paragraph (bl (iil of this paragraph 11, you shall have the right, by giving notice to us. within ten

(10 1 days after the date of our letter advising you of the credit allocated to the work, to terminate our rights

therein, and all rights in such work shall thereupon revert to you.

12. In each instance that you write, or are employed or commissioned by a motion picture producer to

write, during the period, all or part of the score of a motion picture intended primarily for exhibition in theaters,

or by the producer of a musical show or revue for the legitimate stage to write, during the period, all or part of

the musical compositions contained therein, we agree to advise the producer of the film that such part of the score as is written by you may be performed as part of the exhibition of said film in theaters in the United Stales, its territories and possessions, without compensation to us, or to the producer of the musical show or revue that

your compositions embodied therein may be performed on the stage with living artists as part of such musical show or revue, without compensation to us. In the event that we notify you that we have established ,i system for the

collection of royalties for performance of the scores of motion pictuie films in theaters in the United Slates, its ter-

ritories and possessions, we shall no longer be obligated to take such action with respect to motion picture scores.

13. You make, constitute and appoint us, or our nominee, your true and lawful attorney, irrevocably during the term hereof, in our name or that of our nominee, or in your name, or otherwise, to do all acts, take all proceedings, execute, acknowledge and deliver any and ail instruments, papers, documents, process or pleadings

that may be necessary, proper or expedient to restrain infringement of and 'or to enforce and protect the rights

granted by you hereunder, and to recover damages in respect to or for the infringement or other violation of the

said rights, and in our sole judgment to join you and/or others in whose names the copyrights to any of the

works may stand; to discontinue, compromise or refer to arbitration, any such actions or proceedings or to make

any other disposition of the disputes in relation to the works, provided that an) action or proceeding commenced

bv us pursuant to the provisions of this paragraph shall be at our sole expense and for our sole benefit.

APPENDIX 509

14. You agree that you, your agents, employees or representatives will not, directly or indirectly, solicit or accept payment from writers for composing music for lyrics or writing lyrics to music or for reviewing, publish-

ing, promoting, recording or rendering other services connected with the exploitation of any composition, or

permit use of your name or your affiliation with us in connection with any of the foregoing. In the event of a violation of any of the provisions of this paragraph 14. we shall have the right, in our sole discretion, by giving you at least thirty (30) days' notice by registered or certified mail, to terminate this agreement. In the event

of such termination no payments shall be due to you pursuant to paragraph 8 hereof.

15. No monies due or to become due to you shall be assignable, whether by way of assignment, sale or power granted to an attorney-in-fact, without our prior written consent. If any assignment of such monies is

made by you without such prior written consent, no rights of any kind against us will be acquired by the assignee, purchaser or attorney-in-fact.

16. In the event that during the period (a) mail addressed to you at the last address furnished by you pur-

suant to paragraph 19 hereof shall be returned by the post office, or (b) monies shall not have been earned by

you pursuant to paragraph 6 hereof for a period of two consecutive years or more, or (c) you shall die, BMI shall have the right to terminate this agreement on at least thirty (30) days' notice by registered or certified mail

addressed to the last address furnished by you pursuant to paragraph 19 hereof and, in the case of your death,

to the representative of your estate, if known to BMI. In the event of such termination no payments shall be due

you pursuant to paragraph 8 hereof.

17. You acknowledge that the rights obtained by you pursuant to this agreement constitute rights to payment of money and that during the period we shall hold absolute title to the performing rights granted to us hereunder. In the event that during the period you shall file a petition in bankruptcy, such a petition shall be filed against

you, you shall make an assignment for the benefit of creditors, you shall consent to the appointment of a receiver or trustee for all or part of your property, or you shall institute or shall have instituted against you any other

insolvency proceeding under the United States bankruptcy laws or any other applicable law, we shall retain title to the performing rights in all works for which clearance sheets shall have theretofore been submitted to us and shall subrogate your trustee in bankruptcy or receiver and any subsequent purchasers from them to your right to

payment of money for said works in accordance with the terms and conditions of this agreement.

18. Any controversy or claim arising out of, or relating to, this agreement or the breach thereof, shall be settled by arbitration in the City of New York, in accordance with the Rules of the American Arbitration Associa- tion, and judgment upon the award of the arbitrator may be entered in any Court having jurisdiction thereof. Such award shall include the fixing of the expenses of the arbitration, including reasonable attorney's fees, which shall be borne by the unsuccessful party.

19. You agree to notify our Department of Performing Rights Administration promptly in writing of any change in your address. Any notice sent to you pursuant to the terms of this agreement shall be valid if addressed to you at the last address so furnished by you.

20. This agreement cannot be changed orally and shall be governed and construed pursuant to the laws of

the State of New York.

21. In the event that any part or parts of this agreement are found to be void by a court of competent juris-

diction, the remaining part or parts shall nevertheless be binding with the same force and effect as if the void

part or parts were deleted from this agreement.

Very truly yours,

BROADCAST MUSIC, INC. ACCEPTED AND AGREED TO:

Assistant Vice President

510 APPENDIX

BMI PUBLISHER APPLICATION

BMI Publisher Administration

10 Music Square Eisl

Nashville, TN 37203 615-259-3*25

BMI Publisher Administratio

320 West 57th Street

New York, NY 10019 212-586-2000

BMI Publisher Administration

8730 Sunset Boulevard, 3rd Floor West

Los Angeles. CA 90069 213-659-9109

NOTE: ALL QUKSTIONS MUST BH .XNSWLRliD APPLICATION MUST BE- SIONLI) ON LAST PA(il-: AND KinURNLI) TO THL BMI OFI-ICL FROM WHICH IT WAS RLCLIVLD Wll H A %2f>m CHEiCK OR MONLY ORDLR l-OR ADMINSTRATION ILL. (NOTE£: THIS AMOUNT IS NOT RETUNDABLL. I

1. NAME OF YOUR PROPOSED PUBLISHING COMPANY: (In order to eliminate confusion if is necessary to reject any name identical witEi, or similar to, that of an established publishing company. Also, any name using INITIALS as part of your company name cannot be accepted.)

1st Choice: .

2nd Choice:

3rd Choice:

4th Choice: .

5th Choice:

2. BUSINESS ADDRESS:

Zip Code

AREA CODE TELEPHONE NO.

3. COMPLETE THE ENCLOSED CLEARANCE FORM Usting one composition owned by your publishing company which has been commercially recorded within the past year or is likely to be broadcast or performed in concerts

or otherwise publicly performed and return it with the application

IF CUE SHEETS ARE NECESSARY, PLEASE SUBMIT

FOR INTERNAL BMI USE ONLY

PFQ(iF«!TNAMF'"| fASt,\irF (Oa(«)

FOR BY

a CHECK D CASHIERS CHECK a MONEY ORDER

Tn Acnr.

|D««1

VIA MEMO^ELEX

UNCLES

THEATRE

CONCtRT

IA2Z 2H7

CODE NO. (Dar)

D OFC.

PERIOD

APPENDIX 511

4. COMPLETE A, B QB C TO INDICATE HOW YOUR COMPANY IS ORGANIZED:

A. INDIVIDUALLY OWNED:

Name of Individual

Home Address

Date of Birth

Soc. Sec. No.

. Zip Code .

Are you now or have you ever been a writer-member or writer-affiliate of BMI, ASCAP, SESAC, or of any foreign

performing rights licensing organization? If so, state name of organization and the period during which you were a

member or affiliate.

B. PARTNERSHIP

List all Partners

*lf not available, request

form S.S.#4 from IRS.

*Fed. Tax Acct. No.

Name Home Address & Zip Code Soc. Sec. No. Ownership

C. FORMALLY ORGANIZED CORPORATION : *If not available, request

form S.S. #4 from I.R.S. (Complete only if corporation is now in existence) State in which incorporated

*Fed. Tax Acct. No_

List All Stockholders

PHOTOCOPY OF CERTIFICATE OF INCORPORATION MUST BE SUBMITTED WITH THIS APPLICATION

Percentage

Home Address & Zip Code Ovynership

List all Officers

Name Home Address & Zip Code Office

Held

512 APPENDIX

5. UST ALL EXECUTIVE EMPLOYEES, FOR EXAMPLE: professional manager, contact man, etc.

Position

Home Address & Zip Code Held

6. If any owner, stockholder, officer or executive employee has been or is connected with any record company, publishing company, songwriters agency, or any other organization engaged in the solicitation, publication or ecploitation of music, please give the following information:

If Publishing Position Years of Name of Individual Name of Company Co., is it BMl? Held Association

From To

NOTICE

IT IS ACKNOWLEDGED THAT ANY CONTRACT CONSUMMATED BETWEEN APPLICANT AND BMI WILL BE ENTERED INTO IN RELIANCE UPON THE REPRESENTATIONS CONTAINED IN THIS APPLICATION AND THE REPRESENTATION THAT ALL OWNERS, INCLUDING PARTNERS, ARE OVER THE AGE OF EIGHTEEN. THE CONTRACT WILL BE SUBJECT TO CANCELLATION IF ANY QUESTION HEREIN CONTAINED IS NOT ANSWERED FULLY AND ACCURATELY OR IF THE TRUE NAME OF EACH OWNER, STOCKHOLDER, OFFICER AND/OR EXECUTIVE EMPLOYEE IS NOT REPORTED IN QUESTIONS 4, 5 and 6 HEREOF

Signature . SIGN IN INK

(Please print name of person signing)

APPENDIX 513

BMI PUBLISHER AGREEMENT

AGREEMENT made on between BROADCAST MUSIC, INC. ("BMI" I, a New York corporation, whose address is 320 West 57th Street, New York, N.Y. 10019 and

a doing business as

("Publisher"), whose address is

WITNESSETH: FIRST: The term of this agreement shall be the period from

to and continuing thereafter for additional periods of five (5) years each unless

terminated by either party at the end of such initial period, or any such additional five (5 1 year period, upon notice

by registered or certified mail not more than six (6 1 months or less than three (3 1 months prior to the end of any

such term.

SECOND: As used in this agreement, the word "works" shall mean:

A. All musical compositions (including the musical segments and individual compositions

written for a dramatic or dramatico-musical work) whether published or unpublished, now owned or copyrighted by Publisher or in which Publisher owns or controls performing rights, and

B. All musical compositions (including the musical segments and individual compositions

written for a dramatic or dramatico-musical Work) whether published or unpublished, in which hereafter during

the term Publisher acquires ownership or copyright or ownership or control of the performing rights, from and

after the date of the acquisition by Publisher of such ownership or control.

THIRD: Except as otherwise provided herein. Publisher hereby sells, assigns and transfers to BMI, its successors or assigns, for the term of this agreement:

A. All the rights which Publisher owns or acquires publicly to perform, and to license others to perform, anywhere in the world, any part or all of the works.

B. The non-exclusive right to record, and to license others to record, any part or all of any of the works on electrical transcriptions, wire, tape, film or otherwise, but only for the purpose of performing such

work publicly by means of radio and television or for archive or audition purposes and not for sale to the public or

for synchronisation (1) with motion pictures intended primarily for theatrical exhibition or (2) with programs

distributed by means of syndication to broadcasting stations.

C. The non-exclusive right to adapt or arrange any part or all of any of the works for per- formance purpoaes, and to license others to do so.

FX)URTH.-

A. The rights granted to BMI by subparagraph A of paragraph THIRD hereof shall not include the right to perform or license the performance of more than one song or aria from a dramatic or dramatico- musical work which is an opera, operetta, or musical show or more than five (5) minutes from a dramatic or dra- matico-musical work which is a ballet if such performance is accompanied by the dramatic action, costumes or scenery of that dramatic or dramatico-musical work.

B. Publisher, together with all the writers and co-publishers, if any, shall have the right

jointly, by written notice to BMI, to exclude from the grant made by subparagraph A of paragraph THIRD hereof performances of works comprising more than thirty (30) minutes of a dramatic or dramatico-musical work, but this right shall not apply to such performances from ( 1 ) a score originally written for and performed as part of a

theatrical or television film, (2) a score originally written for and performed as part of a radio or television pro-

gram, or (3) the original cast, sound track or similar album of a dramatic or dramatico-musical work.

C. Publisher retains the right to issue non-exclusive licenses for performances of a work or

works (other than to another performing rights licensing organization), provided that within ten (10 1 days of

the issuance of such license BMI is given written notice of the titles of the works and the nature of the perform- ances so licensed by Publisher.

HFTH: A. As full consideration for all rights granted to BMI hereunder and as security therefor,

BMI agrees to make the following payments to Publisher with respect to each of the works in which BMI has performing rights:

( 1 ) For performances of works on broadcasting stations in the United States, its terri- tories and possessions BMI will pay amounts calculated pursuant to BMI's then standard practices upon the basis of the then current performance rates generally paid by BMI to its affiliated publishers for similar performances of similar compositions. Hie number of performances for which Publisher shall be entitled to payment shall b: esti- mated by BMI in accordance with its then current system of computing the number of such performances.

It is acknowledged that BMI licenses the works of its affiliates for perform- ance by non-broadcasting means, but that unless and until such time as feasible methods can be devised for tabula- tion of and payment for such performances, payment will be based solely on broadcast performances. In the event that during the term of this agreement BMI shall es ablish a system of separate payment for non-broadcasting per- formances, BMI shall pay Publisher upon the basi:i of the then current performance rates generally paid by BMI to its other affiliated publishers for similar performances of similar compositions.

514 APPENDIX

(2) For performances of works outside of the United States, its territories and pos- sessions BMI will pay to Publisher all monies received by BMI in the United States from any performing righu licensing organization which are designated by such organization as the publisher's share of foreign perform- ance royalties earned by any of the works after the deduction of BMl's then current handling charge applicable to iU affiliated publishers.

(3) In the case of works which, or rights in which, are owned by Publisher jointly with one or more other publishers who have granted performing rights therein to BMI, the sum payable to Publisher under this subparagraph A shall be a pro rata share determined on the basis of the number of publishers, unless BMI shall have received from Publisher a copy of an agreement or other document signed by all of the publishers providing for a different division of payment.

B. Notwithstanding the foregoing provisions of this paragraph FIFTH, BMI shall have no obligation to make payment hereunder with respect to ( 1 I any performance of a work which occurs prior to the dale on which BMI shall have received from Publisher all of the material with respect to such work referred to in sub- paragraph A of paragraph TENTH hereof, and in the case of foreign performances, the information referred to in subparagraph B of paragraph FOl'RTF.F.NTH hereof, or (2 I any performance as to which a direct license as de- scribed in subparagraph C of paragraph FOURTH hereof ha« been granted by Publisher, its co-publisher or the writer.

SIXTH:. BMI will furnish statements to Publisher at least twice during each year of the term showing the number of performances of the works as computed pursuant to subparagraph A(l) of paragraph FIFTH hereof, and

at least once during each year of the term showing the monies received by BMI referred to in subparagraph A(2) of

paragraph FIFTH hereof. Each such statement shall be accompanied by payment of the sum thereby shown to be

due to Publisher, subject to all proper deductions, if any, for advances or amounts due to BMI from Publisher.

SEVENTH:

A. Nothing in this agreement requires BMI to continue to license the works subsequent to the

termination of this agreement. In the event that BMI continues to license any or all of the works, however, BMI shall continue to make payments to Publisher for so long as Publisher does not make or purport to make directly or in-

directly any grant of performing rights in such works to any other licensing organization. The amounts of such

payments shall be calculated pursuant to BMI's then current standard practices upon the basis of the then current

performance rates generally paid by BMI to its affiliated publishers for similar performances of similar compositions. Publisher agrees to notify BMI by registered or certified mail of any grant or purported grant by Publisher directly or indirectly of performing rights to anv other performing rights organization within ten (10) days from the making

of such grant or purported grant and if Publisher fails so to inform BMI thereof and BMI makes payments to Publisher for any period after the making of any such grant or purported grant. Publisher agrees to repay to BMI all amounts so paid by BMI promptly on demand. In addition, if BMI inquires of Publisher by registered or certified mail, addressed to Publisher's last known address, whether Publisher has made any such grant or purported grant and

Publisher fails to confirm to BMI by registered or certified mail within thirty (30) days of the mailing of such inquiry that Publisher has not made any such grant or purported grant, BMI may, from and after such date, discontinue making any payments to Publisher.

B. BMI's obligation to continue payment to Publisher after the termination of this agreement

for performances outside of the United States, its territories and possessions shall be dependent upon BMI's receipt

in the United States of payments designated by foreign performing rights licensing organizations as the publisher s

share of foreign performance royalties earned by any of the works. Payment of such foreign royalties shall be subject

to deduction of BMI's then current handling charge applicable to its affiliated publishers.

C. In the event that BMI has reason to believe that Publisher will receive or is receiving pay- ment from a performing rights licensing organization other than BMI for or based on United States performances of one or more of the works during a period when such works were licensed by BMI pursuant to this agreement, BMI shall have the right to withhold payment for such performances from Publisher until receipt of evidence satisfactory

to BMI of the amount so paid to Publisher by such other organization or that Publisher has not been so paid. In the event that Publisher has been so paid, the monies payable by BMI to Publisher for such performances during such period shall be reduced by the amount of the payment from such other organization. In the event that Publisher does

not supply such evidence within eighteen (18) months from the date of BMI's request therefor, BMI shall be under no obligation to make any payment to Publisher for performances of such works during such period.

EIGHTH: In the event that this agreement shall terminate at a time when, after crediting all earnings reflected by statements rendered to Publisher prior to the effective date of such termination, there remains an un-

earned balance of advances paid to Publisher by BMI, such termination shall not be effective until the close of the calendar quarterly period during which (A) Publisher shall repay such unearned balance of advances, or (B)

Publisher shall notify BMI by re^stered or certified mail that Publisher has received a statement rendered by BMI at its normal accounting time showing that such unearned balance of advances has been fully recouped by BMI.

NINTH: A. BMI shall have the right, upon written notice to Publisher, to exclude from this agreement,

at any time, any work which in BMI's opinion (1) is similar to a previously existing composition and might consti-

tute a copyright infringement, or (2) has a title or music or lyric similar to that of a previously existing composi-

tion and might lead to a claim of unfair competition, or (3) is offensive, in bad taste or against public morals, or

(4) is not reasonably suitable for performance.

B. In the case of works which in the opinion of BMI are based on compositions in the public domain, BMI shall have the right, at any time, upon written notice to Publisher, either ( 1 ) to exclude any such work from this agreement, or (2) to classify any such work as entitled to receive only a stated fraction of the full credit

that would otherwise be given for performances thereof.

APPENDIX 515

C. In the event that any work is excluded from this agreement pursuant to subparagraph A or B of this paragraph NINTH, or pursuant to subparagraph C of paragraph TWELFTH hereof, all rights of BMI in such work shall automatically revert to Publisher ten (10) days after the date of the notice of such exclusion given by BMI to Publisher. In the event that a work is classified for less than full credit under subparagraph 8(2) of this paragraph NINTH, Publisher shall have the right, by giving notice to BMI within ten (10) days after the date of BMI's notice to Publisher of the credit allocated to such work, to terminate all rights in such work granted to BMI herein and all such rights of BMI in such work shall revert to Publisher thirty (30) days after the date of such notice from Publisher to BMI.

TENTH: A. With respect to each of the works which has been or shall be published or recorded com-

mercially or synchronized with motion picture or television film or tape or which Publisher considers likely to be performed, Publisher agrees to furnish to BMI

(1) Two copies of a completed clearance sheet in the form supplied by BMI, unless a cue sheet with respect to such work is furnished pursuant to subparagraph A(3) of this paragraph TENTH.

(2) If such work is based on a composition in the public domain, a legible lead sheet or other written or printed copy of such work setting forth the lyrics, if any, and music correctly metered; pro- vided that with respect to all other works, such copy need be furnished only if requested by BMI pursuant to sub- section (c) of subparagraph D(2) of this paragraph TENTH.

(3) If such work has been or shall be synchronized with or otherwise used in connec- tion with motion picture or television film or tape, a cue sheet showing the title, composers, publisher and nature and duration of the use of the work in such film or tape.

B. Publisher shall submit the material described in subparagraph A of this paragraph TENTH with respect to works heretofore published, recorded or synchronized within ten (10) days after the execution of this agreement and with respect to any of the works hereafter so published, recorded, synchronized or likely to be per- formed prior to the date of publication or release of the recording, film or tape or anticipated performance.

C. The submission of each clearance sheet or cue sheet shall constitute a warranty by Publisher that all of the information contained thereon is true and correct and that no performing rights in any of the works listed thereon has been granted to or reserved by others except as specifically set forth therein.

D. Publisher agrees:

(1) To secure and maintain copyright protection of the works pursuant to the Copy- right Law of the United States and pursuant to the laws of such other nations of the world where such protection is afforded; and to give BMI prompt written notice of the date and number of copyright registration and/or renewal of each work registered in the United States Gtpyright Office.

(2) At BMI's request:

(a) To register each unpublished and published work in the United States Copy-

right Office pursuant to the Copyright Law of the United States.

(b) To record in the United Sutes Copyright Office in accordance with the

Publisher obuined the right to publicly perform and/or the right to publiah, co-publish or sub-publish any of

the works. • , • • _

ments referred to in sub-section (b) above.

E. Publisher agrees to give BMI prompt notice by registered or certified mail in each instance

when, pursuant to the Copyright Law of the United States, ( 1 1 the rights granted to BMI by Publisher in any work

shall revert to the writer or the writer's representative, or (2) copyright protection of any work shall terminate.

ELEVENTH: Publisher warranto and represento that:

A. Publisher has the right to enter into this agreement; Publisher is not bound by any prior

commitmento which conflict with its undertakings herein; the righto granted by Publisher to BMI herein are the sole

and exclusive property of Publisher and are free from all encumbrances and claims; and exercise of such nghto wiU

not constitute infringement of copyright or violation of any right of, or unfair competition with, any person, firm,

corporation or association.

B. Except with respect to works in which the possession of performing righto by another person,

firm, corporation or association is specifically set forth on a clearance sheet or cue sheet submitted to BMI pursuant

to subparagraph A of paragraph TENTH hereof. Publisher has exclusive performing nghto in each of Ae works by

virtue of written granto thereof to Publisher signed by aU the authors and composers or other owners of such woric.

TWELFTH:

A. Publisher agrees to defend, indemnify, save and hold BMI, ito licensees, the advertisers

of ito licensees and their respective agento, servanto and employees, free and harmless from and against any and all

demands, loss, damage, suito, judgmento, recoveries and costo, including counsel fees, resultuig "o™ ««>y claim ot

whatever nature arising from or in connection with the exercise of any of the righto grantod byPublisher in this

agreement; provided, however, that the obligations of Publisher under this paragraph TWELFTH shaU not apply

to any matter added to, or changes made in, any work by BMI or ito licensees.

B. Upon the receipt by any of the parties herein indenmified of any notice, demand, process,

papers, writ or pleading, by which any such claim, demand, suit or proceeding is made or commenced against them,

or any of them, which Publisher shall be obliged to defend hereunder, BMI shall, as soon as may be practicable, give

Publisher notice thereof and deliver to Publisher such papers or true copies thereof, and BMI shall have the right to

participate by counsel of ito own choice, at its own expense. Publisher agrees to cooperate with BMI in all such matters.

516 APPENDIX

C. In the event of such notification of claim or service of process on any of the parties herein indemnified, BMI shall have the right, from the date thereof, to exclude the work with respect to which a claim i* made from this agreement and/or to withhold payment of all sums which may become due pursuant to this agree- ment or any modification thereof until receipt of satisfactory written evidence that such claim has been withdrawn, settled or adjudicated.

THIRTEENTH: Publisher makes, constitutes and appoints BMI, or its nominee. Publisher's true and lauful attorney, irrevocably during the term hereof, in the name of BMI or that of its nominee, or in Publisher's name, or otherwise, to do all acts, take all proceedings, and execute, acknowledge and deliver any and all instruments, paper*, documents, process or pleadings that may be necessary, proper or expedient to restrain infringement of and/or to enforce and protect the rights granted by Publisher hereunder, and to recover damages in respect of or for the in- fringement or other violation of the said rights, and in BMI's sole judgment to join Publisher and/or others in whose names the copyrights to any of the works may stand, and to discontinue, compromise or refer to arbitration, any such actions or proceedings or to make any other disposition of the disputes in relation to the works; provided that any action or proceeding commenced by BMI pursuant to the provisions of this paragraph THIRTEENTH shall be at its sole expense and for its sole benefit.

FOURTEENTH:

A. It is acknowledged that BMI has heretofore entered into, and may during the term of this agreement enter into, contracts with performing rights licensing organizations for the licensing of public per-

forming rights controlled by BMI in territories outside of the United States, its territories and possessions (herein- after called "foreign territories" I . Upon Publisher's written request, BMI agrees to permit Publisher to grant per- forming rights in any or all of the works for any foreign territory for which, at the time such request is received, BMI has not entered into any such contract with a performing rights licensing organization; provided, however, that

any such grant of performing rights by Publisher shall terminate at such time when BMI shall have entered into such a contract with a performing rights licensing organization covering such foreign territory and shall have notified Publisher thereof. Nothing herein contained, however, shall be deemed to restrict Publisher from assigning to it* foreign publisher or representative the right to collect a part or all of the publishers' performance royalties earned

by any or all of the works in any foreign territory as part of an agreement for the publication, exploitation or repre-

sentation of such works in such territory, whether or not BMI has entered into such a contract with a performing rights licensing organization covering such territory.

B. Publisher agrees to notify BMI promptly in writing in each instance when publication, ex- ploitation or other rights in any or all of the works are granted for any foreign territory. Such notice shall set forth the title of the work, the country or countries involved, the period of such grant, the name of the person, firm, corpora- tion or association entitled to collect performance royalties earned in the foreign territory and the amount of such share. Within ten ( 10 1 days after the execution of this agreement Publisher agrees to submit to BMI, in v/riting, a list of all works as to which Publisher has, prior to the effective date of this agreement, granted to any person, firm, corporation or association performing rights and/or the right to collect publisher performance royalties earned in any foreign territory.

C. In the event that BMI transmits to Publisher performance royalties designated as the writer's share of performance royalties earned by any of the works in any foreign territory, Publisher shall promptly pay such rovalties to the writer or writers of the works involved. If Publisher is unable for any reason to locate and make payment to any of the writers involved within six (6) months from the date of receipt, the amounts due such writers shall be returned to BMI.

FIFTEENTH:

A. Publisher agrees that Publisher, its agents, employees, representatives or affiliated compa- nies, will not directly or indirectly during the term of this agreement:

(1) Solicit or accept payment from or on behalf of authors for composing music for lyrics, or from or on behalf of composers for writing lyrics to music.

(2) Solicit or accept manuscripts from composers or authors in consideration of any payments to be made by or on behalf of such composers or authors for reviewing, arranging, promotion, publication, recording or any other services connected with the exploitation of any composition.

(3) Permit Publisher's name, or the fact of its affiliation with BMI, to be used by any other person, firm, corporation or association engaged in any of the practices described in subparagraphs A(l) and A(2) of this paragraph FIFTEENTH.

(4) Submit to BMI, as one of the works to come within this agreement, any musical composition with respect to which any payments described in subparagraphs A(l) and A(2) of this paragraph rlFTLENTH have been made by or on behalf of a composer or author to any person, firm, corporation or association.

B. Publisher agrees that Publisher, its agents, employees or representatives will not directly or indirectly during the term of this agreement make any effort to ascertain from, or offer any inducement or con- sideration to, anyone, including but not limited to any broadcasting licensee of BMI or to the agents, employees or representatives of BMI or of any such licensee, for information regarding the time or times when any such BMI licensee is to report its performances to BMI, or to attempt in any way to manipulate performances or affect the representative character or accuracy of BMI's system of sampling or logging performances.

C. Publisher agrees to notify BMI promptly in writing ( 1 ) of any change of firm name of Publisher, and (2) of any change of twenty percent (20%) or more in the ownership thereof.

D. In the event of the violation of any of the provisions of subparagraphs A, B or C of this paragraph FIFTEENTH, BMI shall have the right, in its sole discretion, to terminate this agreement by giving Publisher at least thirty (30) days' notice by registered or certified mail. In the event of such termination, no payments shall be due to Publisher pursuant to paragraph SEVENTH hereof.

APPENDIX 517

SIXTEENTH: In the event that during the term of this agreement (1) mail addressed to Publisher at the last address furnished by it pursuant to paragraph TWENTIETH hereof shall be returned by the post office, or (2) monies shall not have been earned by Publisher pursuant to paragraph FIFTH hereof for a period of two consecutive years or more, or (3) the proprietor, if Publisher is a sole proprietorship, shall die, BMI shall have the right to terminate this agreement on at least thirty (30) days' notice by registered or certified mail addressed to the last address furnished by Publisher pursuant to paragraph TWENTIETH hereof and, in the case of the death of a sole proprietor, to the representative of said proprietor's estate, if known to BMI. In the event of such termination, no payments shall be due Publisher pursuant to paragraph SEVENTH hereof.

SEVENTEENTH: Publisher acknowledges that the rights obtained by it pursuant to this agreement constitute rights to payment of money and that during the term BMI shall hold absolute title to the performing rights granted to BMI hereunder. In the event that during the term Publisher shall file a petition in bankruptcy, such a petition shall be filed against Publisher, Publisher shall make an assignment for the benefit of creditors, Publisher shall consent to the appointment of a receiver or trustee for all or part of its property. Publisher shall file a peti- tion for corporate reorganization or arrangement under the United States bankruptcy laws, Publisher shall institute or shall have instituted against it any other insolvency proceeding under the United States bankruptcy laws or any other applicable law, or, in the event Publisher is a partnership, all of the general partners of said partnership shall be adjudged bankrupts, BMI shall retain title to the performing rights in all works for which clearance sheets shall have theretofore been subm'itted to BMI and shall subrogate Publisher's trustee in bankruptcy or receiver and any subsequent purchasers from them to Publisher's right to payment of money for said works in accordance with the terms and conditions of this agreement.

EIGHTEENTH: Any controversy or claim arising out of, or relating to, this agreement or the breach thereof, shall be settled by arbitration in the City of New York, in accordance with the Rules of the American Arbitration Association, and judgment upon the award of the arbitrator may be entered in any courl havin-; juris- diction thereof. Such award shall include the fixing of the expenses of the arbitration, including reasonable attorney's fees, which shall be borne by the unsuccessful party.

NINETEENTH :

Publisher agrees that ix shall not, without the written consent of BMI, assign any of its rights hereunder. No rights of any kind against BMI will be acquired by the assignee if any such purported assign- ment is made by Publisher without such written consent.

TWENTIETH: Publisher agrees to notify BMI's Department of Performing Rights Administration promptly in writing of any change in iu address. Any notice sent to Publisher pursuant to the terms of this agree- ment shall be valid if addressed to Publisher at the last address so furnished by Publisher.

TWEINTY-FIRST: This agreement cannot be changed orally and shall be governed and construed pursuant to the laws of the State of New York.

TWENTY-SECOND: In the event that any part or parts of this agreement are found to be void by a court of competent jurisdiction, the remaining part or parts shall nevertheless be binding with the same force and effect as if the void part or parts were deleted from this agreement.

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed as of the ilay and year first above written.

BROADCAST MUSIC, INC.

By Assistant Vice President

By (Title of Signer)

518 APPENDIX

BIBLIOGRAPHY

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5 "Career Programs in Higher Education," MUSIC EDUCATORS JOURNAL, special issue on music careers Oct., 1982 (Reston, VA 1982: MENC).

6 JAZZ INFLUENCE ON ART MUSIC TO MID-CENTURY, Ph.D. dissertation (Ann Ar- bor 1966: Univ. Microfilms).

7 MUSIC BUSINESS HANDBOOK AND CAREER GUIDE, 5th Ed. (Los Angeles 1990: Shenwood Publishing Co.).

8- Lee Eliot Berk. LEGAL PROTECTION FOR THE CREATIVE MUSICIAN, rev. ed. (Boston: Berklee Press).

9- Henry Campbell Black. BLACK'S LAW DICTIONARY (Chicago: West Co.). 10- Richard Bolles. WHAT COLOR IS YOUR PARACHUTE?, rev. ed. (Berkeley: Ten Speed

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12- Clive Davis. INSIDE THE RECORD BUSINESS (NY 1975: Ballantine). 13- R. Denisoff. SOLID GOLD: THE POPULAR RECORD INDUSTRY (New Brunswick

1981: Transaction Pubs).

14- Paul Dranov. INSIDE THE MUSIC PUBLISHING INDUSTRY (Elmhurst, IL: Music Busi- ness Publ.).

15- John Eargle. SOUND RECORDING (NY 1980: Van Nostrand Reinhold Co.). 16- Electronic Industries Assoc. CONSUMER ELECTRONICS ANNUAL REVIEW (Wash-

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REERS IN THE RECORDING INDUSTRY (NY 1985: U. Prof Amer.). 21 MUSIC ON DEMAND: COMPOSERS AND CAREERS IN THE HOLLYWOOD FILM

INDUSTRY (NY 1983: U. Prof. Amer). 22- Leonard Feist. POPULAR MUSIC PUBLISHING IN AMERICA (NY 1980: National Mu-

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24- Charles Gillet. THE SOUND OF THE CITY (NY: Dutton). 25- Earle Hagen. SCORING FOR FILMS, rev. ed. (NY 1989: Alfred Publishing Co.). 26- Harold Koontz and Cyril O'Donnell. ESSENTIALS OF MANAGEMENT (NY 1986: Mc-

Graw). 27- Dennis Lambert with Ronald Zaikind. PRODUCING HIT RECORDS (NY 1980: Schirmer

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28- Legalvision Inc. THE ENTERTAINMENT BUSINESS VIDEO PRIMER SERIES, 5 video- cassettes (NY: Legalvision Inc.)

29- Alexander Lindey. LINDEY ON ENTERTAINMENT PUBLISHING AND THE ARTS, 4 vols. (NY: Clark Boardman).

30- Marquis. MUSIC INDUSTRY DIRECTORY (7th ed., Chicago 1983: Marquis Who's Who Inc.)

31- George Martin. ALL YOU NEED IS EARS (NY 1982: St. Martins). 32- Michael Meyer and John David Viera, editors. ENTERTAINMENT PUBLISHING AND

THE ARTS (NY: Clark Boardman Co.). 33- Ellen J. Miller. VIDEO: A GUIDE FOR LAWYERS (NY: Law-Arts). 34- NATIONAL DIRECTORY FOR THE PERFORMING ARTS AND CIVIC CENTERS, 3rd

ed. (NY: Wiley-lnterscience).

35- NATIONAL DIRECTORY FOR THE PERFORMING ARTS/EDUCATIONAL, 3rd ed. (NY:

APPENDIX 519

Wiley Interscience). 36- Dick Netzer. THE SUBSIDIZED MUSE: PUBLIC SUPPORT FOR THE ARTS IN THE

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39- NYU Law School. COMPLETE GUIDE TO THE NEW COPYRIGHT LAW (Dayton 1978: Lorenz Press).

40- Henry Pleasants. SERIOUS MUSIC — AND ALL THAT JAZZ (NY 1969: Simon and Schuster).

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42 LEGAL AND BUSINESS ASPECTS OF THE MUSIC INDUSTRY: MUSIC, VIDEO- CASSETTES, AND RECORDS (NY 1980: Practising Law Institute).

43 LEGAL AND BUSINESS PROBLEMS OF THE ADVERTISING INDUSTRY 1989: PATENTS, COPYRIGHT, TRADEMARKS, AND LITERARY PROPERTY (NY 1989: Practising Law Institute).

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1985: Billboard).

50 MORE ABOUT THIS BUSINESS OF MUSIC, rev. ed. (NY 1989: Billboard). 51- Alan H. Siegel. BREAKIN' INTO THE MUSIC BUSINESS (Port Chester, NY 1986: Cher-

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52- Martin E. Silfen. COUNSELING CLIENTS IN THE ENTERTAINMENT INDUSTRY 1987: A Course Handbook, vol. 237, (NY 1987: Practising Law Institute).

53- Marlin Skiles. MUSIC SCORING FOR TV AND MOTION PICTURES (Blue Ridge 1976: Tab Books).

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JOURNALS, MAGAZINES, NEWSPAPERS

Advertising Age Down Beat Overture Amusement Business Entertainment Law Reporter Programming Billboard The Gavin Report Radio and Records Broadcasting The Hollywood Reporter Recording Engineer/Producer

Bulletin of the Copyright Society International Musician Symphony News Cash Box Journal of f^usic Therapy Up Beat Cinemascore: The Film Music Mix Variety

Journal Music Retailer Video Marketing Newsletter

520 APPENDIX

PROFESSIONAL ORGANIZATIONS

AAAA Associated Actors and Artistes of America Actors Equity Association ("Equity") AES Audio Engineering Society AFM American Federation of Musicians of thie United States and Canada AFTRA American Federation of Television and Radio Artists AGAC American Guild of Authors and Composers AGMA American Guild of Musical Artists AGVA American Guild of Variety Artists Alliance of Motion Picture and Television Producers AMC American Music Conference American Association for Music Ttierapy American Chioral Directors' Assoc. American Composers Alliance American Council for thie Arts American Music Center American Record Producers Association American Women in Radio and Television AMOA Amusement and Music Operators Assoc. AMRA American Mechanical Rights Assoc. AMS American Musicological Society ASA Acoustical Society of America ASCAP American Society of Composers, Authors and Publishers ASOL American Symphony Orchestra League Assoc, of Arts Administration Educators Assoc, of Independent Music Publishers Assoc, of Performing Arts Presenters (formerly Assoc, of College, University,

and Community Arts Administrators) Authors Guild

Authors League of America

BMI Broadcast Music Inc. Business Committee for the Arts

California Copyright Conference Central Opera Service Chamber Music America CLGA Composers and Lyricists Guild of America CMA Country Music Association Inc. CMS College Music Society Country Music Foundation Inc.

Directors Guild

Dramatists Guild

Early Music America Electronic Industries Association, Consumer Electronics Division

Gospel Music Association

Harry Fox Agency

lATSE Inter Alliance of Theatrical and Stage Employees IFPA Inter. Federation of Phonogram and Videogram Producers Independent Label Association Institute of Audio Research Inter. Assoc, of Auditorium Mgrs. Inter. Confederation of Societies of Authors and Composers Inter. Federation of Musicians Inter. Rhythm & Blues Assoc. Inter. Society for Contemporary Music Inter. Society of Performing Arts Mgrs. Inter. Tape/Disc Association MEIEA Music and Entertainment Industry Educators Assoc.

APPENDIX 521

MENC Music Educators National Conference Metropolitan Opera National Council Motion Picture Assoc, of America Motion Picture Editors Guild

Mu Phi Epsilon Music Critics Association Music Library Association Music Performance Trust Funds of the Recording Industries

Music Publishers Assoc, of the U.S.

Music Teachers National Association

Music Video Producers Assoc.

NAB National Association of Broadcasters NABET National Assoc, of Broadcast Employees and Technicians NACA Nat. Assoc, for Campus Activities NAIRD Nat. Assoc, of Independent Record Distributors and Manufacturers. NAJE National Assoc, of Jazz Educators NAMM National Assoc, of Music Merchants NARAS National Academy of Recording Arts and Sciences NARM Nat. Assoc, of Recording Merchandisers Nashville Music Association Nashville Songwriters Assoc. International

NASM National Assoc, of Schools of Music NAMT National Assoc, for Music Therapy NATAS Nat. Academy of Television Arts and Sciences National Academy of Popular Music and Songwriters Hall of Fame National Alliance of Musical Theatre Producers

National Assembly of States Arts Agencies National Assoc, of Negro Musicians National Assoc, of Teachers of Singing

National Conference of Personal Managers National Council on the Arts National Federation of Music Clubs National Music Council National Music Theatre Network

National Opera Association NAVAS National Academy of Video Arts and Sciences NEA National Endowment for the Arts NMPA National Music Publishers Association

Opera America

People-To-People Music Committee Phi Mu Alpha Sinfonia Piano Technicians Guild

Practising Law Institute Producers Guild of America

Radio and TV Registry Recording Musicians Assoc.

RIAA Recording Industry Assoc, of America

SAG Screen Actors Guild SESAC (formerly "Society of European Stage Authors and Composers") SMPTE Soc. of Motion Picture and Television Engineers Society of Advertising Music Producers, Arrangers and Composers Society of Composers (formerly "American Society of University Composers")

Society of Singers

Society of Stage Directors and Choreographers Songwriters Guild of America, The SPARS Society of Professional Audio Recording Studios

Video Software Dealers Assoc.

Young Audiences

522 APPENDIX

GLOSSARY

-A-

AAAA. Association of Actors and Artistes of America. Above-the-line. Special production expenses, e.g., salaries for featured artists, creative

fees, above-scale wages. Contrasts with below-the-line expense.

Account executive. Liaison person between an advertising agency and one of its clients. Acoustic instrument. A natural-sounding instrument, as contrasted to one using an ampli-

fier or computer technology.

Adult Contemporary. Soft rock music genre popular with Baby Boomers, emphasizing ro-

mantic songs and lush orchestrations.

AES. Audio Engineering Society. AFM. American Federation of Musicians of the United States and Canada. Aftermarket. Income sources available for exploitation following first exposure of a tape or

film.

AFTRA. American Federation of Television and Radio Artists. AGAC. American Guild of Authors and Composers. AGIVIA. American Guild of Musical Artists.

AGVA. American Guild of Variety Artists. Airplay. Radio broadcast of a commercially-released music recording.

AM station. Radio station using an amplitude modulation signal. AMC. American Music Conference. Angel. Financial backer of a Broadway show.

Annual billing. Amount invoiced time buyers for the calendar year by broadcasters. AOR. Album-oriented rock. Arbitration clause. Provision in a contract requiring the parties to submit disputes to an im-

partial arbiter, usually the American Arbitration Association.

Arbitron. 1 . The Arbitron Company, one of the two largest suppliers of radio and television

ratings research. 2. Electronic device attached to a home TV set to inform researcher what stations are turned on at a particular time.

Arms length. 1 . A relationship between two parties not on close terms. 2. A relationship other than one between, e.g., a lawyer and client, or between a person and a trustee;

other than a fiduciary relationship.

A&R producer. Artist and repertoire (records) producer. Art music. Repertoire associated with opera, ballet, symphony and chamber music. Often

used interchangeably with "classical" music and "serious" music.

ASCAP. American Society of Composers, Authors and Publishers. Assignment. Turning over of a contract or copyright to another person's control or owner-

ship.

Audience share. Comparative popularity of broadcast program, determined by dividing the

program rating by the number of sets in use at a particular time.

Automated radio. Station whose programming is almost entirely on prerecorded tapes, the

tapes being controlled for broadcast by a sophisticated transport system that requires

minimum attention from an operator.

-B- Baby boomers. Consumer market comprised of approximately 76 million Americans born

between 1946 and 1965, avidly courted by entertainment media and advertisers be-

cause of their large discretionary incomes.

Back-announce. In radio broadcasting, the accumulation of a group of announcements fol-

lowing several uninterrupted playings of recorded music.

Bed. (Advertising) Musical background for a commercial announcement.

Bel canto. Fine singing; the Italian tradition of classical vocal production.

Below-the-line (expense). Predictable costs in production budgeting, e.g., union scale

APPENDIX 523

wages, equipment and facilities rentals, etc.

Belt. To sing a pop song or show tune with gusto, utilizing chest-tone resonance.

Berne Union. Chapter 6.

Beta (Betamax). A type of videocassette recorder-reproducer. Bio. Slang for "biography" — a written summary of an individual's professional bacl<ground. Birch/Scarborough. One of the two largest suppliers of radio ratings research. BMI. Broadcast Music Incorporated.

Board. Synonym for recording console.

Boilerplate (Slang). Time-tested language placed in contracts by lawyers for extra legal

protection.

Book. In a musical play, the scenario and dialogue for a production.

Breach. "The breaking or violating of a law, right, or duty, either by commission or omission"

(Black's Law Dictionary). Breach of contract. "Failure, without legal excuse, to perform any promise which forms the

whole or part of a contract." (Black's Law Dictionary).

Bridge. Musical phrase in a song following the "hook," sometimes called "release" or "B

phrase."

Buy-out. Purchase of rights in a property, as opposed to taking a percentage.

c- Camcorder. One-piece video camera/recording machine.

Camera-ready. All elements in graphic art assembled in final form, ready for the platemak-

er's camera.

Canned. Prerecorded or filmed, in contrast to "live."

Canned release. Copy written for the press. Canned spot. A prerecorded broadcast commercial. Canned track. Prerecorded segment. Casting couch (Slang). Office furniture used ostensibly by a producer or casting director to

"audition" a performer's "talents."

Catch action. Compose a musical cue to synchronize with specific action on the screen. Cattle call. Producer's announcement of open auditions.

CATV. Community Antenna Television.

CD. Compact audio disc.

Charge-back. An expense assessed by a record company against an artist's royalties.

Chart. 1 . Musical arrangement. 2. Trade paper list of records currently most popular on ra-

dio or in record stores.

Clam. Wrong note in the copied parts or a note performed incorrectly.

Classic jazz. The "pure," traditional jazz sound: predominantly instrumental, rarely vocal,

largely improvised rather than arranged, performed primarily on acoustic, not electronic,

instruments.

Classic rock. The enduring music of such rock and roll trendsetters as Elvis Presley and

The Beatles, originating in the 1950s and 1960s and still popular today.

Classical music. The repertoire associated with symphony, opera, ballet, chamber and

some choral music. Click track. Audible guide used by musicians scoring music to aid synchronization with film.

Close-miking. Recording with a microphone close to the sound source.

Cluster programming. Radio broadcast of several records uninterrupted by announce-

ments.

Clutter. The airing in rapid succession of many short spots during a television commercial

break.

Cold. In advertising, copy read without musical introduction or background.

Collective work. Chapter 6.

Commercial bed. See "bed."

Comp style. An improvised piano accompaniment often characterized by syncopated, block chords.

524 APPENDIX

Competent party. Of sound mind and body; not demented or othenwise unable to act re-

sponsibly.

Compressor. Electronic sound device that limits the dynamic response to create a more

constant, even dynamic level.

Compulsory license. Chapters 6, 7.

Consideration. "The inducement to a contract, the cause, motive, price, or impelling influ-

ence which induces a contracting party to enter into a contract. The reason or material

cause of a contract." (Black's Law Dictionary).

Contingent scale payment. Royalties on record sales paid to certain AFTRA members. Contractor. In unions, the steward who hires performers, supervises their working condi-

tions, and confirms they are properly paid.

Controlled compositions. See chapters 4, 6, 7.

Cost-per-thousand. The expense of delivering a commercial message to 1 ,000 readers,

listeners or viewers.

Coterminous. Two or more contracts that end on the same date. Country. Music genre traditionally associated with Nashville, now ranging from country/west-

ern and bluegrass to pop-flavored styles.

Cover record. Song that has been re-recorded by other artists after a first recording by the

artist who introduced it. CPB. Corporation for Public Broadcasting.

Creative director. 1 . In an advertising agency, the individual in charge of creative advertis-

ing concepts, supervising writers, graphic artists and audio-video producers. 2. Person in

charge of creative services for a production company or record label.

Creative fee. Money paid a composer or copywriter by an advertising agency, producer or

production company.

Creative services. Division of a record company that provides marketing concepts, graphic

art, sales aids, editorial services and advertising materials.

Cross-collateralize. Shift of royalties earned by one property to the credit or debit of anoth-

er property, resulting in a net total of royalties earned by all of them.

Crossover record. A record focused on one market segment that achieves sales in one or

more additional markets.

CRT. Copyright Royalty Tribunal.

Cue. Short musical passage composed to accompany dramatic action or underscore dia-

logue.

Cure. Satisfy a complaint or resolve a dispute concerning a contract.

Cut-in. Owner of a property shares ownership.

Cutter. Film (or tape) editor of music recorded for synchronization with film or videotape.

-D- DAT. Digital Audio Tape.

Day parting. See Chapter 22.

DBS. Direct broadcast satellite.

Deal breaker. Issue which, if not settled, terminates contract negotiations.

Decay. Diminution of sound pressure (audible volume).

Default. Failure to perform under a legal contract.

Demo. Demonstration record. Demography. The statistical method used in researching the characteristics of populations.

Digital recording. Audio or video recording made with aid of digital computer technology.

Discharge. To void a contract, cause it to be non-binding.

Double. The second (sometimes third) instrument a union musician is called upon to play.

For example, a flute is a common double required of saxophonists.

APPENDIX 525

Downtime. A period when recording or filming equipment is not functioning properly, thus unusable.

Dramatic music (dramatico-musical). Music closely related to drama or a scenario, partic-

ularly opera, a musical play, ballet, narration.

-E- Easy Listening. Primarily instrumental music genre, gentler in sound than Adult Contempo-

rary.

Echo-send. Electronic control on a recording console to direct sound to a reverberation

chamber.

Electronic publishing. Communications system delivering information to computer termi-

nals and TV screens. Engineer. University graduate holding a baccalaureate degree in a field such as electrical,

architectural or civil engineering. Often used (incorrectly) in reference to an audio mixer

or sound technician.

EP. Extended play record.

EPW. Employers Pension and Welfare Fund of the AFM. EQ. Abbreviation for equalization.

Equity. Actors Equity Association.

Executive producer. Top administrator and/or financier of a production.

Executory, executory provision. A requirement of performance to be rendered following disengagement from (termination of), a contract.

Exploit. In the entertainment field, to promote, advertise, publicize and advance an artist or

a property.

Extended use. A prerecorded tape or film used for a period longer than the one initially paid for.

-F- Fader. A recording console control used to effect changes in sound level. Fair use. Chapter 6.

FCC. Federal Communications Commission.

Fiduciary. 1 . A person who manages money or other things of value for another person and in whom the second party has a right to place trust. 2. A situation or relationship be- tween persons where one acts for another in a position of trust. Ex.: a lawyer or agent

acting on behalf of an artist.

Find. To decide and declare.

Finding. "The result of the deliberations of a jury or a court." (Black's Law Dictionary). First-call musician. Performer a contractor prefers to hire above all others available.

Flack. A publicist. Flat. A natural sound, without coloration or alteration of highs and lows. FM radio. Radio broadcasting using a frequency modulation signal. Four-walling. Producer rents a performance facility where the landlord offers only the

venue — no stagehands, ushers, box-office help. Franchised agent. A talent agent or booker licensed by an artists' union or guild. Front line. Melodic instruments in a band or orchestra, as opposed to the rhythm section.

-G- Ghost writer. A writer or composer who does work for hire under the name of another writer

or composer.

Glissando. The musical effect produced by playing a series of instrumental notes in quick

succession without performing each individually.

Grand right. Performance right in dramatic music.

Graphic equalizer. A sound control that provides adjustment of a signal over a broad range of frequencies.

526 APPENDIX

-H- Harmonizer. A signal processing device that creates delay effects and changes the pitch of

a sound without affecting its tempo.

Head. Start of a tape or film reel.

Head set. Earphones. Hook. 1

. (Song) Memorable melodic (or lyrical) phrase. 2. (Advertising) Campaign slogan or

concept.

House agency. Advertising department within a company. House producer. One of the company's salaried staff employees. H&W Fund. AFM's Health and Welfare Fund. Hyphenate. Artist providing multiple services, e.g., producer-director, singer-songwriter.

-I-

ID. (Station) See "station logo." Immaterial. "Not material, essential, or necessary; not important or pertinent." (Black's Law

Dictionary).

In-house. Done within a company, itself; not hired out. Institutional ad (or spot). A commercial announcement intended to impress the public with

a firm's or organization's merit.

Intellectual property. Ideas translated from people's minds to tangible creations such as songs, writing and other forms of communication.

Interactive TV. Permits viewer to change the picture or add to it. I.p.s. Inches per second, referring to tape-reel speed.

-J- Jingle. Original term for a broadcast commercial containing music. More common today is

the use of the term "commercial" or "spot."

Joint venture. A business partnership of limited duration set up for a limited purpose.

-K- "Key man" clause. Contractual provision that if an artist's business representative or

record producer leaves a particular company, the artist may follow that individual without legal or financial reprisals.

-L- Leadsheet. Music manuscript containing the melody for a song, its text and chord symbols. Legal consideration. "One recognized or permitted by the law as valid and lawful; as dis-

tinguished from such as are illegal or immoral." (Black's Law Dictionary). The term is sometimes used as equivalent to "good" or"sufficient" consideration.

Legit. Slang for "legitimate." Style of music or performance in the classical, formal tradition.

Library service. A collection of a large quantity and variety of recorded passages which are available for use in productions not using original or "custom" music.

Lift. In broadcast commercials, a short taped segment drawn from a longer one. Limiter. Signal processing device that reduces peaks but affects overall dynamics less than

a compressor.

Line Producer. Chapter 18.

Live-on-tape. A television production performed live, with TV recording occurring at the same time for later editing prior to broadcast.

Local. 1 . Branch office of a national union or guild. 2. A market or audience contained within the area of one city.

Logo. A musical or visual symbol used repeatedly in an effort to reinforce public recognition of a product or organization.

LV. Laser video.

APPENDIX 527

-M- Market. A particular group of buyers (or a type of audience) that can be identified by demo-

graphic research and/or analyses of preferences.

Master purchase agreement. A contract used by a record company to obtain exclusive rights in a master tape recording which has been produced by another person, such as

an independent producer.

Mastering. The process of transferring sounds on tape to a lacquer disc for the purpose of

manufacturing records.

Material. "Important; more or less necessarily; having influence or effect; going to the mer-

its; having to do with matter, as distinguished from form." (Black's Law Dictionary).

M.D. Music director.

Mechanical license. Legal permission given by a publisher to a producer to make a com-

mercial recording of the publisher's copyrighted music.

Mechanicals. 1 . Royalties paid by a record manufacturer to the owner of a music copyright.

2. Overlay of elements comprising graphic art assembled for the printer's camera.

Media buyer. Salaried employee who contracts for print ad space or broadcast time buys. MENC. Music Educators National Conference. MIDI. Musical Instrument Digital Interface.

Mix. To combine and equalize, into one or two channels, a larger number of separate tracks

of recorded sounds.

Mixer. Recording technician who operates a console. Often referred to (incorrectly) as an engineer.

MOR. Middle of the road type of music, now more commonly referred to as "Nostalgia/Big Band," which favors instrumentals over vocals and is somewhat similar to Easy Listen-

ing.

MPA. Music Publishers Association of the U.S. MSO. Multiple system operator, a type of cable TV company. Music coordinator. Production assistant keeping track of musical elements.

Music cue. Short musical fragment used to bridge dramatic scenes or provide musical

background.

Music cutter. Same as film music editor. Music house (or music supply house). A company of composers and arrangers offering

creative services (and recording) for buyers of "custom" music.

Music preparation. Music manuscript proofreading, extraction of parts from the score, col-

lation, reproduction, score binding and delivery.

Music supplier. See "music house."

MVPA. Music Video Producers Association.

-N- NAB. National Association of Broadcasters.

Narrowcasting. Contrasts with broadcasting: program material produced and delivered to

audiences of special tastes.

National account. Customer of an advertising agency or production company that advertis-

es nationwide.

National Contracts Division. Group of AFM officials charged with negotiating agreements for musicians' services with producers of movies, network television, broadcast commer-

cials, and syndicated programs.

NAVAS. National Academy of Video Arts and Sciences.

NCOPM. National Conference of Personal Managers. Needle drop. Brief recorded passage (orchestral or a sound effect) drawn from a transcrip-

tion library which a producer uses for a dramatic program or broadcast commercial.

Negative cost. Expense of producing a movie or TV show and delivering it to a customer;

excludes costs of promotion.

Negotiated license. In the record industry, a right to record worked out between a music

528 APPENDIX

publisher and a record producer. Contrasts with a statutory compulsory license.

New Age music. Mellow, mostly acoustic instrumental music with an ethereal, soothing quality, popularized in the 1980s.

New Country music. Music genre which combines elements of country and rock and roll. New use. Application of recorded music tape or film to a medium different from the one

originally intended, e.g., a record album to be used in a film.

Nielsen rating. Share of the broadcast audience drawn by a particular program or network,

according to A.C. Nielsen, a research company.

NMPA. National Music Publishers Association. NPR. National Public Radio.

-o- O&O station. A radio or TV station owned and operated by a commercial broadcasting net-

work.

Off-Broadway. Low-budget, often experimental, professional theatre, produced in New York City venues, but outside its Times Square theatre district.

One-stop. Record distributor/wholesaler offering a large number of record companies' mer- chandise to retailers and jukebox operators.

Opticals. Visual effects created for film or videotape.

Outboard equipment. Recording hardware external to the recording console which is patched into it to enhance the mixer's options of controlling sounds.

Overcall album. Record requested by label which was not covered by initial contract.

-P- Package deal. Combined goods and/or services delivered under one price tag. Pan pot. Recording console control (fader) used to place a signal to the left, right, or center

of the stereo image.

Paper business. Printed editions sector of a music publishing company.

Paper the liouse. (Concert promotion) Issue free tickets to ensure a full audience for a per-

formance.

Pass on. Make a negative judgment; to turn down, reject. Pay TV. Cable television delivery system.

Payola. Money or other compensation illicitly given disc jockeys in return for playing particu- lar recordings.

P.D. 1. Program director. 2. Public domain.

Performance right. Chapters 6, 7.

Phonorecord. Same as phonograph record, CD or prerecorded tape. Playlist. Radio station's recorded music schedule for broadcast.

P.O. P. Point-of-purchase (merchandising aids).

Power of Attorney. 'An instrument authorizing another to act as one's agent or attorney; a letter of attorney." (Black's Law Dictionary).

PPV. Pay-per-view TV.

Production manager. Business affairs head for a production.

Promo kit. See promo pack. Promo pack. Package of promotional materials. Punch in. Interrupt taping or filming with insertion of new (or additional) material. Punch up. Add emphasis to music or script. PVC. Prerecorded videocassette.

-R- Rack jobber. An individual or company which contracts with retailers for the rental of space

for record display racks, so as to attract record sales by shoppers who are passing by. Rack up. TV film and tape presets which may then be called up by a technician for broad-

cast.

Record (album, single). Generic term for compact disc, audio cassette or vinyl recording.

APPENDIX 529

Release phrase. See "bridge."

Remedy. Solve a problem or cure a default under a contract.

Rhythm & Blues. Predominantly black music genre featuring a lead vocalist backed with harmonizing singers, piano, bass and drums, with harmonic structure adapted from pop-

ular and blues forms.

Rhythm section. The "motor element" of a band or orchestra, normally comprised of piano, bass, drums and guitar.

-s- Sampling. 1 .(Music performances) Technique used by music rights organizations to esti-

mate total performances by examining a limited number of performances. 2. (Music

recording) The digital taping of a sound or series of sounds from already recorded mate-

rial, for insertion to a new recording so as to enhance that recording's sound; the source sound can be inserted unchanged, or transformed by synthesizer or other electronic

equipment.

Scale. Specified minimum union wage.

Scaling the house. Determining what quantity of available seats in a performance facility

are to be priced the least expensive, the next least expensive, and so on.

Score (a film). Compose, perform and record music to synchronize with a motion picture.

Second engineer. Assistant to the head audio engineer. Secondary transmission. Cable TV broadcast of an originating program source, such as

from a commercial television station.

Sel sync. The ability of a tape recorder to record on one track at a time in synchrony with

previously recorded tracks.

Self-contained group. Small ensemble that writes its own material, or an organized en- semble that performs together regularly without outside members.

Selling agent. Person or firm offering printed music or merchandise for sale at the retail lev-

el, under a royalty contract or for commission.

SESAC. Performing rights organization known originally as the Society of European Stage Authors and Composers.

Session musician. Instrumentalist employed in recording studios.

Shop tapes. Submit audition tapes to potential buyers. Sideman. An instrumentalist other than the leader or contractor. Slate. Chalk board ID of a filmed or videotaped segment.

Small right. Performance right in nondramatic music.

Song score. A film sound track comprised primarily of songs which have the potential to be hits.

Spec, Speculation. Employed without assurance of getting paid.

Special material. Music, lyrics, dialogue, patter specially written for a particular artist's per-

formance.

Split copyright. Copyright proprietor shares his or her ownership with one or more per-

sons.

Split publishing. One party shares his or her publishing rights with one or more persons.

Spot. 1 . A broadcast commercial announcement. 2. Theatrical spotlight. 3. To place in a particular position, as in "spotting" a film — deciding precisely where a film should be un- derscored.

Station logo. Broadcast station's musical signature, identification.

Steward. Hires performers and supervises enforcement of their union contract with the pro-

ducer.

Stinger. Accented chord played by an orchestra to underscore a dramatic moment on the

screen.

Stock arrangement. Published edition; not a custom chart.

Storyboard. Series of sketches showing sequence of events for film or video.

Strip show. A series of weekly broadcasts scheduled several times a week at the same hour each day.

530 APPENDIX

Studio musician. Same as session musician. Subpublisher. Firm affiliated with a prime publisher in providing publishing services here,

perhaps abroad.

Supervising copyist. Copyist who directs the services of additional copyists working on the

same job. Sweep weel<. Seven-day period during which research firms collect data concerning broad-

cast audience size.

Sweeten. Record additional sounds by overdubbing.

Synchronization license. Chapter 7.

Synclavier. Sophisticated keyboard synthesizer incorporating a computer terminal, digital

processor and storage unit, with which an operator can create, store, retrieve and recre-

ate musical sounds.

Syndication. Non-network broadcasts of programs which individual stations schedule to

use at times convenient to them.

-T-

Tail. End of a tape or film reel.

Take. One version of a recorded performance, as in "The second take was best."

Teaser announcement. Brief press release providing preliminary information about a forth-

coming event.

Technical rider. Addendum to a performance contract stipulating requirements for staging,

sound reinforcement, equipment, etc.

Telecommunications. Production and delivery of all modes of televised entertainment and

information.

Term. The time interval embraced by a legal agreement.

Tessitura. Prevailing pitch and range of a melodic line.

Tight. Slang for a well-rehearsed, cohesive performance.

Time-buyer. Advertising agency employee who purchases time on a broadcast station or

network for a sponsor.

Time shift. Capacity of a VCR to record a TV program off the air and move its playback to a time more convenient for the viewer.

Tin Pan Alley. The business of popular music, most prevalent in the 1920s in New York.

Also, style of popular song of that era, usually sentimental, with a verse and chorus form

in which chorus predominated.

Track. One recorded portion of combined tracks, as in "24-track" recording; the sound on

one track, as in "the bass track."

Tracker. Record label employee following the progress of a record release — airplay, chart action, sales, etc.

Tracking session. Taping session following the recording of basic tracks; overdubbing.

Trading fours. Jazz musicians taking turns improvising alternate four-bar phrases

Transcription. Chapter 7.

-u- Underscore. To place recorded music behind a movie or TV program.

Union steward. An agent who supen/ises the employment of union artists and provides liai-

son for them with their employer.

Up-front payment. Money advanced prior to completion of a job or production.

Up full. Background music crescendo to foreground.

-V- VCR. Videocassette recorder.

VDP. Video disc player.

Venue. Place of performance or trial.

Videocaster. One who broadcasts, cablecasts or telecasts videos.

Videotex. Information system for viewers to call up data on video screen.

APPENDIX 531

VJ. Videotape jockey.

Voice-over. Language spoken by an actor or announcer who is not seen on the screen.

-w- Weighting formula. Evaluations of a performing rights organization used in determining the

relative value of various kinds of music performances, in order to judge what royalties

are due a writer or publisher.

\Nork made for hire. Chapter 6.

-Y- Yuppies. Nickname for desirable consumer market known as "young urban professionals."

532 APPENDIX

INDEX

Actors Equity Assoc. (Equity), 134, 135, 201 Adult contemporary music, 262, 340 Adult radio markets, 339-340 Advertising, Ch. 24

agency, 376-378

markets, 378-380

record promotion, 307 scoring music, 381-382 spot production, 380-390

Agents, agencies, Chs. 9, 24, pp 140, 143 AM radio, 337-338 Amer. Arbitration Assoc, 284 Amer. Composers Alliance, 225 American Council for the Arts, 225, 240 Amer. Fed. of Musicians (AFM),

Chs. 5, 6, 8, 9, pp5, 6, 9, 10, contracts, contractors, 267-271 , 275-276, 385-387, 400 environmental music, 331-332 EPW Fund, 272, 386 Health and Welfare Fund, 272, 386 International Musician, 21

musical theatre, 197-199, 201 scales, wages, 385-386 Special Payments Fund, 272-273 Trust Fund Agreement, 273-274 videos, 346-347

American Federation of Television and Radio Artists (AFTRA), Ch. 8, pp 130, 132-134, 267, 382 agencies, 141, 143-144

agreements, 133, 267-271, 386 contingent scale payments, 269 contractors, stewards, 267-268 videos, 371-372

Amer. Guild of Musical Artists (AGMA), 134, 143 Amer. Guild of Variety Artists (AGVA), 134, 141, 143 American Music Center, 225 American Music Conference, 204, 206-207, 213 Amer. Soc. of Composers, Authors and Publishers (ASCAP), Ch. 7

applications for membership, 110, 459, 460 copyright, 90, 104, 459-460 funds disbursement, 113-114

licenses, 111-112

publishing, 49-50, 52, 56, 75 Amer. Symphony Orchestra League (ASOL), 5, 226-228, 237-238, 425 Arbitron, 348 A&R producer, Ch. 18, p. 251 AOR radio market, 340 Arranger, 90, 370, 378, 385, 420-422 Artist

agent, Ch. 9

contracts, Ch. 17 management, Ch. 10 royalties, 268-270, 279-285

Arts administration, Ch. 14 Arts funding, 228-235 Assoc, of Arts Administration Educators, 225 Assoc, of Performing Arts Presenters, 225, 237

APPENDIX 533

Athletics, 198-199

Attorney, Ch. 9, pp 456-458

Audience research, 338-339, 346 Audience share, 347 Audio Engineering Society, 328 Audio Environments, 330-331

Audio technicians, Ch. 20, p. 372 AURICLE computer program, 398 Automation (radio), 356-357

Bacharach, Burt, 31

Background music, Ch. 21 Background singers, 371-372

Beatles, 8, 13, 14, 28, 194, 263, 264, 340 Berlin, Irving, 31, 32,413 Berne Convention, 78, 83, 95, 97, 98, 114, 480 Billboard, 44, 209, 258-259

Birch/Scarborough, 348 Black music, 262 Blanket license, 108, 112

Bowie, David, 14

Broadcast Music Inc. (BMI), Ch. 7

agreements with affiliates, 506, 513 American Composers Alliance, 225 applications for affiliation, 115, 459, 460, 505, 510 copyright, 90, 104

environmental music, 329 publishing, 49, 50, 52, 56, 75 record companies, 252 royalty distribution, 118

sampling, accounting, 117-118

Broadway theatre, Ch. 12, pp 127, 135, 137, 269, 412-414, 429-430, 445, 459-460 Buenos Aires Convention, 482 Bullet, 259 Business Committee for the Arts, 229, 234 Cable radio, 357 Cable TV, 113, 123-125, 339-340

Calif. State Univ. at Northridge, 30 Calif. Talent Agencies Act, 143

Canadian music industry, 472 Canned tracks, 392 Careers, Chs. 26, 27 Cash Box, 209, 259 CATV, 123-124 Central Opera Service, 223, 225 Challenge Grants (NEA), 231

Children's music, 417-418

Classical music, Ch. 14, pp 54-55, 73-74, 262, 269, 278, 293, 341-342, 418-420

Click track, 398 Clubs, 306, 312 Clutter, commercials, 350 Commercial announcement, Ch. 24, p. 355

artists, 384-385

jobs, 374-375

production, 380-390

Compulsory license, 92-93, 120 Computers, 14, 18, 206, 372, 398 Concert promotion, Ch. 11

Conducting, 424-427

Controlled composition clause, 36, 52 Contracts

AFM, 131,239,271-275,281

534 APPENDIX

AFTRA, 133, 267-271 , 386-387 agencies, 141

artist-manager, 169-178 artist's recording, 166-168, 275-285 Broadway, 199-200

concert, 185-187

negotiations, 150-151, 277 writer-publisher, 35, 40, 65-70

Cooper, Jay, 36, 1 27, 285 Copyright, Ch. 6

arrangements, 89-90

deposit, 97-98

derivative work, 80 duration, 94-95

essential provisions, 78-79

exclusive rights, 83 fair use, 84-86

First Sale Doctrine, 1 03 formalities, 95-99

forms, 486 infringement, 101-102

international, 480 notice, 95-97

ownership, 86-87

publishing, 57, 59, 71-72

registration, 98-99

royalty payments, 95 Royalty Tribunal, 93, 99-100, 124-125

scope, 82-83

sound recordings, in, 90-92 termination, 87-88

terms, 79-82

transfers, 81 , 87 Cornyn, Stan, xix

Corp. for Public Broadcasting, 223, 343 Counterfeiting, 102, 253-255 Country music, 263, 340-341

Cover record, 73 CRI, 224 Cross-collateralization, 285 CUE computer program, 398 Cues, Cue sheet, 397-398 David, Hal, 31

Day parting, 355 Demo, 40, 323 Demography, 7, 264-265, 338-339, 346 DAT, 103,260-261 Digital technology, 326-327 Dinner theatre, 197, 201

Disc jockey, 352, 454-455 Dramatic music rights, 126-127 Dramatists Guild, 127, 137, 199 Dubbing, 399-400

Easy listening music, 340 Educational field

careers, 439-444

composer, 415-417

instrument sales, 204 printed music sales, 208-209 publishing, 53-54, 73

Electronic Industries Assoc, 213

APPENDIX 535

Ellington, Duke, 28

Environmental Music, Ch. 21

Exclusive rights, 83 Fair use, 84-86

Federal Communications Comm. (FCC), 336-338, 342, 345, 354 Film scoring, Ch. 25

composers, 392-396, 401-402, 414-415 craft, 396 cue sheets, 397-398

Golden Age, 392-393

jobs, 401-406

package deals, 401 synchronization, 398

FM radio, 337-338 Foreign territories

collections, 114-115, 118, 121

licenses, 122-123

musicians, 332 publishing, 55-56

record companies, 253 record contracts, 282 record markets, 264, 266 record promotion, 308

Four-A unions, 134 Fox, Harry Agency, 50, 56, 76, 120-122, 125

Gavin Report, The, 259, 350 Geneva Phonogram Convention, 483 Goldsmith, Jerry, 395 Gospel music, 262, 342 Grammy, 255 Graphics, 458 Hammerstein II, Oscar, 31, 412-413, 445 lATSE, 136-137

Industrial shows, 198

In-flight music, 331

Instrumentalists (career) 433-439 Instrument merchandising, 204-207, 210-213

International Music Council, 226 International Society for Contemporary Music, 225 Jagger, Mick, 14

Jam Creative Productions, 376 Jazz, 262, 230, 394-395

Jingle. See Commercial. Job interviews, 469-470

Jukebox license, 126 Karaoke, 103-104

"Key man" clause, 142, 283 Lawyer, 148

Legrand, Michel, 9, 394 Leonard, David P., 21,472 Levey, Debra, 23 Licensing, Ch. 7

Lyricist, 445 Managers, Chs. 9, 10, p. 60, 452-453

Mancini, Henry, 394-395

Marketing, markets, Chs. 19, 23, p. 456 Master delivery requirements, 299-300

Mechanical

license, 92-93, 120-1

rate, 1 20

royalties, 34

536 APPENDIX

Media, 164-165, 187-188 Merchandising, Chs. 13, 19, p. 169 Messinger, Gloria, 23 Mexico City Treaty. 482 Mickey Mouse music, 393 MIDI, 206, 212, 289, 327, 392, 395-396, 403 405 Mix, 209 Mixing, 327-328, 399-400, 405-406 Moog, Robert, 18 MOR (Middle of the Road), 8, 340 Moviola, 397 Mozart, Wolfgang Amadeus, 10, 394 MPAA, 103 MTV, 318, 360 Music

bridge, 392 commercial scoring, 381-382 conductor/director, 424-427 copyist, 403, 423-424 critic, journalist, 448-449 cue, 397-398

cutter, 370, 405, 422-423, 449 director, 272, 351-352, 369, 424-427 editor, 370, 405, 422-423, 449 executive, 452-453 librarian, library, 392, 449-450 licensing, Ch. 7 markets, 261-263 merchandising, Chs. 13, 19, p. 456 publications, 73, 209 publishing, Ch. 5 stores, 210-220 therapist, 444-445 Video Producers Assoc, 369

Muzak, 125, 330-331 NABET, 137 NARAS, 255 National

Academy of Recording Arts/Sciences, 255 Conference of Personal Managers, 146-147 Contracts Division (AFM), 131 Endowment for the Arts (NEA), 229-231 Music Council, 225-226 Music Publishers Assoc. (NMPA), 76, 281 National Musical Theatre Network, 1 96 Public Radio, 342-343

National Association for

Campus Activities (NACA), 182 Music Therapy (NAMT), 444

National Association of

Broadcasters, 78 Music Merchants (NAMM), 206, 207 Recording Merchandisers (NARM), 209, 317-319 Schools of Music, 30, 444

Needle drop, 375-376 Networking, 467-468 Networks, 343-344 New Age music, 249 New Musicals, 195 New use rights, 123, 270, 386 Newman, Danny, 234

APPENDIX 537

Nonunion recording, 271 , 274-275

Off-Broadway, 1 97 One-stop, 311

Opera America, 225 Orchestrator, orchestration, 420-422

Package deal, 401 Papp, Joseph, 196

Partnership, 215-216

Pay cable, 363-364, 370 P.D., 351

Performance

license, Ch. 7

right exclusion, 91-92

rights, Ch. 7

royalties, Ch. 7

Personal manager, Ch. 10

Personics, 103, 255 Playlists, 350-351

Pleasants, Henry, 11

Point-of-purchase, 303, 316 Presley, Elvis, 13, 14, 194,264 Preston, Frances W., 23 Prince, Harold, 195

Printed music, 62-64

Producer

record, Ch. 18

video, 364-369

Production

back-timing, 188

budgeting, 183-185

management, 188 record, Ch. 18

sponsorship, 180-182

theatrical, 429-430

Professional

manager, 60 organizations, 520

Program consultants, 352-353

director, 351 , 455 Promo clips, 360 Promotion, Ch. 19

records, 252 songs, 218-220

Public Broadcasting Service (PBS), 223

Public Theatre, 1 96

Publicist, publicity, 164-165

Publisher evaluation, 37

Publishing, Ch. 5

acquisitions, 60-62

artist-owned company, 53 catalogs, 62

contracts, 35, 65-70

cover records, 73 editions, 62-63

foreign, 55-56

full-line companies, 51 , 58

houses, 11, 12, 51-56

income, 74-75

independent, 52

538 APPENDIX

song casting, 72 specialty, 54 subpublishers, 55 writer-owned company, 53, 58

Rack jobber, 1 3, 208, 311,313-314 Radio, Cii. 22

AM, 337-338 audience research, share, 346-350

automation, 356-357

commercials, 359 consultants, 358 FM, 337-338 gatekeepers, 351-353

history, 341

markets, 339-343

networks, 348 programming, 353-355

programming consultant, 352-353 promotion, 303-308

record promotion, 303-305 station management, 344-343 station rating, 347 syndication, 355-356

Radio and Records, 209, 259

Record/recording

advertising, 307 budgets, 293-295

charts, 258-260, 350 clubs, 306, 312 company administration, 249-253 counterfeiting, 102, 253-255

contracts, Ch. 17

cutouts, 317 distribution, Ch. 19 engineer, Ch. 20, pp 450-451 industry, Ch. 15

labels, 246-249

markets, 261-263

merchandising, Ch. 19

nonunion, 271, 274-275

piracy, 253 production, Ch. 18, pp 427-429

promotion, Ch. 19, pp 350-351

publicity, 307 returns, 316 sales, 203 semiprofessional, 322-323

stores, Ch. 19

studios, Ch. 20, pp 297-299

technology, 326-327

tracking, 306-307

Regional theatre, 196, 201

Reporting stations, 347 Resume, 468-469 Reuse, new use, 270, 386 RIAA, 5, 103,254.260 Riddle, Nelson, 394-395

Road manager, 147 Rock, 261

Rodgers, Richard, 28, 31, 412-413

APPENDIX 539

Rolling Stone, 7, 21

Royalties

artist, 268-270, 279-285

Broadway, 200 collection services, 121

cross-collateralization, 285 producer's, 291

writer's, 114, 118, 120-121

Royalty artist, 268, 275-285

Sampling, 112-113,117

Schoenberg, Arnold, 18, 418-419

Scoring, (Film and Television) Ch. 25, pp 381-382

Screen Actors Guild (SAG), 134, 136, 144

Serious music, Ch. 14, pp 341-342, 418-420

Session (studio) musician, 433 SESAC, 49, 75, 108, 119-120, 122, 125-127 Singer, 431-33

SMPTE, 328, 397-398, 406 Soap opera scoring, 396 Sole proprietorship, 21

Song casting, 72 Songwriter, Ch. 4

breaking in, 42 career, 41 0-41

collaboration, 31-32

contracts, 35, 40 craft, 30-31

demos, 40-42

income, 33-35

promotion, 43-46

Songwriters Guild of America, 38-39

Soundata, 261 , 264-265

Sound engineer, Ch. 20 Spanish-language radio, 342 SPARS, 328 Special Payments Fund (AFM), 272-273

Spots (See commercial)

States arts councils, 231-232

Station I.D./logo, 352 Station manager, 351

Statute of Ann, 78

Storyboard, 387 Streamers and punches, 398 Studio musician, 403-405

Studio operation, Ch. 20

Subpublisher, 55 Symphony orchestras, 226-228, 425 Synchronization license, 122-123

Synchronization to film, 397-399

Synclavier, 327 Syndication, 355-356

Talent agent, Ch. 9

Teacher

college, 442-444

school, 440-442

studio, 439-440

Technical rider, 1 87

Technician (career), 451-452

Technology, 326-327, 364 Telcos, 364 Telecommunications, Ch. 23

540 APPENDIX

cable TV, 363-364

definitions, 359 dramatic scoring, Ch. 25 jobs, 369-370

MTV, 360 production, 364-369

promo clips, 359-360 stations, networks, 361-353

video albums, 366-368

Television. See Telecommunications Tessitura, 382 Theatrical producer, Ch. 12

3M Company, 330-331 Tip sheets, 259 TM. Productions, 376 Tracker, 306-307

Trademarks, 104

Transcription license, 125

Trebas Institute of Rec. Arts, 21 , 472, 478 Trust Fund Agreement, 273-274 Unions, Ch. 8

Universal Copyright Convention, 78, 482 University of Miami, 30 Video, Ch. 23

album production, 366-378

directors, 364, 369, 430, 455 home video retailing, 318-319 jobs, 369-370

license, 124-125, 127

MTV, 318, 360 production, 364-368, 455 promo clips, 305, 360 recording contracts, 281-282

rentals, 103 Software Dealers Assoc, 319

Vocal contractor, 267-268

Vocalist, 267-269, 431-433

Warner-Chappell Music Group, 50-51, 55-56

Wholesalers, Chs. 13, 19

Wilder, Alec, 31

Williams, John, 395, 398 WIPO, 255 Wired music service, Ch. 21

Women in music, 22-23 Work made for hire, 82, 88-89, 95, 122, 384 World markets, 264, 266 Young adult radio market, 340 Zavin, Theodora, 23

Zapping, zipping, 374

APPENDIX 541

THE AUTHOR —

Dr. Baskerville received a Ph.D. in music from UCLA. Background: staff composer-conductor for NBC-Hollywood; arranger for Nelson

Riddle, Paramount Pictures and 20th Century-Fox; television producer for the BBC-London; conductor at Radio City Music Hall; trombonist with the Seattle Symphony, Los Angeles Philharmonic and NBC-Hollywood staff orchestra; execu- tive vice-president of Ad-Staff, Inc., producer of award-winning broadcast com- mercials; executive editor of Tor Music Publishing Co.; president of Shenwood Re- cording Studios, Los Angeles (subsequently operated by Warner Bros. Records). The author served as consultant to companies in the entertainment industry,

such as Walt Disney Productions, and to research and marketing firms such as Vidmar Communications, Inc., Los Angeles. As an educator, from 1969 to 1983 Dr. Baskerville directed the music manage-

ment program at the University of Colorado at Denver, where he became profes- sor emeritus. He has been a guest lecturer, consultant or clinician at USC, UCLA, Chicago Musical College, Hartt School of Music, The Ohio State University, Uni- versity of Miami, and Trebas Institute of Recording Arts, Canada. The author has been a featured speaker at national conventions of the Music

Educators National Conference, College Music Society, National Association of

Jazz Educators and the National Association of Schools of Music.

ASCAP AWARD PRESENTATION — The author (right) receiv- ing ASCAP's Deems Taylor Award, given each year for outstand- ing books on music. The presentation is by Academy Award-win- ning songwriter Hal David, representing ASCAP (American Soci- ety of Composers, Authors and Publishers).

Notes