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Music Business

Digital Handbook
Table of Contents
Berklee Online’s Music Business Offerings 5

Building Your Brand with PR, Radio, and Digital Media 6

How Convergence Has Changed the Supply of Media Content 9

The Development of Modern Music Industry Revenue Streams 13

Show, Don’t Tell: Data Visualization and Infographics 27

Essential Framework to Creating a Successful Marketing Campaign 40

Music Business Degree Handbook 2


Begin a new musical journey.
Berklee College of Music was founded on the revolutionary
principle that the best way to prepare students for careers
in music is through the study and practice of contemporary
music. Berklee Online extends that tradition to serve an even
wider audience, for a fraction of the cost. Alumni of Berklee
College of Music and Berklee Online have collectively won
more than 250 Grammys and Latin Grammys. This free
handbook features educational content from inside some
of the required and elective courses within Berklee Online’s
undergraduate Music Business major as well as from Berklee
Online’s Master of Arts in Music Business degree. The material
from these degrees highlight what you need for success in the
music industry of tomorrow: versatility.

Study from anywhere, on


your schedule.
Berklee Online offers you the opportunity to obtain a degree
in your own rhythm. With access to Berklee’s acclaimed
curriculum from anywhere in the world, you’ll be able to
participate in award-winning online courses, multi-course
certificate programs, and earn a Bachelor of Professional
Studies degree. All of Berklee Online’s courses are accredited
and taught by the college’s world-renowned faculty, providing
lifelong learning opportunities to people interested in music
and working in the music industry.
Earn your bachelor’s and your
master’s degrees online.
Berklee Online’s degree programs are the most affordable
and flexible option for earning your music degree from
Berklee College of Music. Apply today and receive an
admissions decision within two weeks.

Degree Highlights
ÎÎ Less than half the cost of campus tuition

ÎÎ Financial aid available

ÎÎ Part-time and full-time study

ÎÎ Transfer credit from other institutions

ÎÎ Credit issued for prior learning

ÎÎ Berklee degree completion opportunities


Berklee Online’s Music
Business Offerings
Berklee Online’s Music
Business Offerings
Undergraduate Degree: Graduate Degree:
Bachelor of Professional Studies Master of Arts in Music Business
in Music Business Innovation is shaping many areas of the music
Sharpen your knowledge of the concepts, business, including management, marketing,
skills, and methodologies needed to succeed licensing, distribution, touring, and more. The
in today’s evolving music business. You will Master of Arts in Music Business program
study how the music business currently prepares you to be a leader in the growth
operates and where the business is headed in and success of the evolving music business
the key areas of music publishing, licensing, by connecting your passion with advanced
law, management, touring, marketing, and knowledge and skills in the key sectors of
entrepreneurship. Through hands-on instruction the industry.
from Berklee College of Music’s award-
Throughout the program, you’ll learn from
winning music business faculty and industry
industry professionals and undertake in-depth
professionals, this degree will prepare you for
analyses of factors, both internal and external,
a variety of music business-focused careers,
that influence the industry—from technology
including artist manager, booking agent, music
and data to policy, law, and finance. Coursework
publisher, business manager, concert promoter,
prepares you to complete a culminating
music supervisor, label operations manager,
experience that allows you to define your unique
entrepreneur, and more.
contribution to the music industry and advance
business opportunities that present innovative,
viable solutions in the marketplace.

The program is designed to be completed


in one year. You will complete 12 courses at
a recommended pace of three courses per
semester over four 12-week semesters. But you
are welcome to study at your own pace as well.
Throughout the program, you will participate in
a community of highly engaged and motivated
peers and faculty committed to high-level
learning and collaboration.

Learn More & Apply


Building Your Brand
with PR, Radio, and
Digital Media
By Shain Shapiro

Excerpted from the undergraduate course


International Music Marketing: Developing Your Career Abroad

What comes to mind when you refer to one of your favorite


artists? Even if it’s their music, which is the primary point of
reference, there is always a visual element that complements
that—Björk’s extravagant outfits, Slash’s long hair, hat, and
sunglasses, and Daft Punk’s futuristic costumes are but a few
examples.

When trying to build a successful career as a popular artist, your


public image—your brand—plays a major role and ultimately
defines how you are going to be perceived by the public.

Music Business Degree Handbook 6


WORKING WITH PR, RADIO, AND DIGITAL MEDIA

Any public performer has a public image associated with


their art and it’s very difficult to separate them from each
other. So every time that art gets exposed, the public image
gets exposed too. Therefore, the public image becomes an
inseparable part of the artist and, in some cases, becomes
art itself.

Here are some of the steps you'll take when building


your brand:

THE GOLDEN RULES FOR DRAFTING AN ARTIST BIO


ÎÎ Write a captivating press story ÎÎ Keep it real: include quotes.
that grabs readers from the start. ÎÎ Keep it concise!
ÎÎ Talk about the music. Describe it. ÎÎ Adjectives: don’t over-do it.
Make it sound exciting.
ÎÎ Be original.
ÎÎ Avoid too many artist references/
ÎÎ Check out the Why I Deleted Your Band’s
influences.
Promo Email Tumblr and cross-check your
ÎÎ Nobody cares about the band’s language!
background, such as how they met, etc.

ASSETS, ASSETS, ASSETS


So what are the assets your media pack needs to contain? Here are the most common ones,
and remember, refer back to your checklist! It goes without saying—though I will say it—that all
assets need to be the highest quality possible.

ÎÎ Bio ÎÎ Music videos (on average, three for


ÎÎ Press release every album release)

ÎÎ Sales sheet (for the distributor) ÎÎ Video teaser

ÎÎ Promo photos (max five) ÎÎ SoundCloud links

ÎÎ Single cover ÎÎ YouTube links

ÎÎ Album cover ÎÎ Promo CDs

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WORKING WITH PR, RADIO, AND DIGITAL MEDIA

GOLDEN RULES OF CONTACTING A JOURNALIST


You only get one chance to pitch something, so you need to be able to impress quickly.
Be very careful with what you choose to include in your communication. Here are a few
things to consider:

ÎÎ Include the music link first. ÎÎ Always be polite.


ÎÎ Don’t forget to mention release and ÎÎ Don’t demand coverage.
tour dates. ÎÎ Ask for their opinion (they love that).
ÎÎ Include a link to a spectacular artist photo. ÎÎ Give them time and pitch well
(Do NOT send the 1 million GB pic in the in advance.
email itself!)
ÎÎ Understand the editor’s point of view.
ÎÎ Use an intuitive email subject.
ÎÎ Develop the relationship over time.
ÎÎ Use a few press quotes.

Understand that this is a two-way relationship. Editors want


page hits and visitors, so that their website becomes (or
remains) popular and is able to generate more advertising
money. The content you are offering needs to satisfy that need.
Promo CDs need to be sent to long-lead press (for example,
monthly music magazines) at least three months prior to an
album release. If a publication runs the story, link back to them
in a social media post. Feel free to thank them, talk about your
experience doing the interview, or pull out a phrase that you
liked that they wrote about you.

Dr. Shain Shapiro is the founder and CEO of Sound Diplomacy. He has worked in the music
industry for nearly 20 years, including roles as the European Representative of the Canadian
Independent Music Association, and as UK Press Manager for One Little Indian and FatCat
Records. He is also an internationally published music journalist, writing for Timeout, VICE, and
others. He holds a PhD from Birkbeck, University of London.

Music Business Degree Handbook 8


How Convergence Has
Changed the Supply of
Media Content
By Jeanine Cowen

Excerpted from the undergraduate course


New Media Economics: Music, Mobile, Gaming, and Online Markets

Creative individuals have long partnered with business


entities, financial firms, publishers, and distributors at a
multitude of stages within the content creation process. It
is only in the past few decades that it has become easier
for artists to create an independent path through the maze
of crafting a fiscally sustainable career. But easier does not
always mean better, for every artist. Understanding the ebb
and flow of market strategies and alternative finance models
is requisite knowledge for creative individuals working in the
new media economy.

No longer do the firms producing and distributing media


content have the sole voice in how that content is supplied to
audiences. Narrow or misguided distribution plans can too
easily miss intended audiences and potentially doom that
particular content to obscurity.

Music Business Degree Handbook 9


HOW CONVERGENCE HAS CHANGED THE SUPPLY OF MEDIA CONTENT

Convergence
Through convergence, potential content consumers now
have more than one way to access the same content and
experience it, whether it be in a large media room or on a
small, personal mobile device.

Challenges
The array of devices and online platforms mean that content
suppliers must take these modes of distribution into account
during the production phase. Media firms need to proactively
produce content with those end experiences in mind. Missteps
in this area can turn away a loyal audience, pushing them to
seek other alternatives.

Opportunities
Convergence now enables firms to reach potential audiences
that they may not have had access to through traditional
mediums. Convergence also allows potential audiences to
experience more than one content option, where traditional
media distribution methods required audiences to make
choices based on programming schedules.

But traditional firms have also realized the flexibility of


new media platforms as avenues to reintroduce or revive
older content. The digital remastering, reformatting, and
repurposing of pre-existing content has allowed media firms
to re-introduce material to the marketplace.

Such activities greatly extend a media material’s longevity and


its potential for generating additional revenues. For example,
with on-demand firms such as Netflix and Amazon Prime

Music Business Degree Handbook 10


HOW CONVERGENCE HAS CHANGED THE SUPPLY OF MEDIA CONTENT

providing 24-hour access to many types of movie and series


genres including classics, younger audiences can easily binge
on iconic television series from past decades such as Friends,
The X-Files, and Battlestar Galactica (both the original and
remake series).

Partnerships vs. Independence


While digital convergence has, in many cases, made the actual
production of content easier, there are no guarantees of
success with consumers. Depending on target audiences and
intended markets, the production and distribution of media
content can be financially risky. Depending on the size and
scope of the project, accessing the value of potential partners
is one way to reduce and spread some of this exposure.

Easier Is Not Always Better


As emerging technologies have lowered entry barriers for
most media and entertainment sectors, the balance between
cost and quality has become more apparent. Lower cost
equipment and tools may provide that initial entry and
introduction of creative intent, but the varying levels of digital
quality available often affect the consumer experience. For
example, costs for broadcast news collection and reporting
have been greatly reduced as mobile reporters have begun
using cellular technology for live transmissions. However,
the quality and reliability of these cellular feeds is contingent
on network availability and strength at the point of origin.
Consumers often experience buffered, choppy, or low-
resolution reports as well as dropped transmissions during live
news broadcasts.

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HOW CONVERGENCE HAS CHANGED THE SUPPLY OF MEDIA CONTENT

Expertise vs. DIY


Having access to cheaper equipment and easy-to-use software
doesn’t ensure the success of a media project. Expertise in the
creation, design, and development of a media form will greatly
enhance its potential to reach the appropriate audience.

Financially stronger firms may be able to leverage greater


technological assets such as labor expertise, special effects,
and sound design to produce richer media content.

DIY can be easy and inexpensive but generally involves an


increased amount of trial and error. The learning curve is high
but the end result can be successful in its own right. Partnering
with firms and individuals with expertise can increase the
chance for successful outcomes.

Jeanine Cowen is Vice President for Curriculum and Program Innovation at Berklee College of
Music. She is a frequent lecturer on the topic of music technology and new media industries. She
is an active composer, music producer, and technologist, working primarily with sound and music
for visual media.

Music Business Degree Handbook 12


The Development of
Modern Music Industry
Revenue Streams
By John Kellogg

Excerpted from the graduate course


Music Business Revenue Streams

The generation of revenue from music has taken many


forms since the royal class patronage of classical musicians
during the Age of Enlightenment, when musicians and
composers were paid servants, composing and performing
music specifically for powerful noblemen. But the invention
of the printing press allowed music to be duplicated and
widely distributed, setting off a chain of events that, over the
centuries, has significantly expanded the capability of music
to derive revenue from innumerable sources. From sales of
sheet music in the 1800s through the challenges brought on
by the growth of the piano-roll trade; various configurations
of recordings (vinyl singles, albums, cassettes, CDs, and
digital downloads); development of radio, TV, videos, Internet
streaming services, and mobile applications (APPS), and

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

music products to the ageless allure of live performances, this


durable industry, as a whole, has taken each turn in stride and
adapted to change in a triumphant manner.

While the history of the music business is marked with


tremendous successes and devastating setbacks over the
years, the power of music to speak to the masses worldwide
and create economic opportunity for those who create and
provide products or services for its dissemination has endured.
The technological innovations of the twenty-first century may
present unique challenges for those dependent on traditional
music industry revenue streams such as the sales of CDs, but
for those with an entrepreneurial spirit, keen knowledge of
current trends, and an abiding faith in the power of music, the
future is bright.

Primary Revenue Streams


An examination of the development of various revenue
streams in the music business requires a review of the
history of the intersection of musical art with commerce.
From the days of patronage through the present day,
one thing has remained constant: the ability of talented
performing musicians and composers to receive some form of
compensation for their work.

Over the centuries, technological advancement, changes in


laws and policy, and advancement of business interests have
all had a hand in forming the various revenue streams at play
in today’s music industry. The compensation and provisions
provided for musicians during the Renaissance pales in
comparison to the current touring business that exceeds
$25 billion in annual revenue. Musical instruments such as
drums, whistles, and flutes date back to the beginning of

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

human culture. During the Age of Enlightenment, the use of


instruments for solo—instead of just accompanying—purposes
caused craftsmen to give instruments their classical shape and
expand their offerings. Since that time, the musical instrument
industry has evolved into one which not only encompasses
instruments, but one that also consists of many other products
associated with creating music. With live performance and
musical instruments and products as a constant, other areas of
commerce tied to music began to evolve.

The enactment of the United States Copyright law in 1790


and printing presses capable of mass production during
the Industrial Revolution spawned a sheet music publishing
business in the nineteenth century that changed the revenue
prospects for both publishing companies and songwriters.

Copyright Act of 1790. Source: United States Copyright Office/Library of Congress

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

Thomas Edison’s invention of the mechanical phonograph


cylinder in 1877 was the genesis of what would become
the burgeoning business of the sale of music recordings
in the twentieth century, starting with the first mechanical
reproduction product: the piano-roll, a mechanism used to
control a player piano. Throughout the twentieth century, the
evolution of various configurations of recorded music, from
the hard lacquer 78 RPM singles played on the Gramophone,
to the turntable record player and later the compact cassette,
expanded the popularity and revenue-generation potential
of music. But it was the advent of the Sony Walkman, the
first personal portable music player, which changed the
commercial appeal of music and caused the music industry
to focus on providing music when and where you want it, a
manner of delivery that is even more popular today.

Primary sources of revenue for musical talent in the music


industry include:

ÎÎ Earnings that flow directly from their live musical


performances

ÎÎ Royalties from recording and composition copyrights

At one time, musical artists generated earnings primarily from


those sources. However, with the technological advances and
expanded reach of film, TV, the Internet, and other media
outlets, skilled musicians have experienced a growth in the
potential of generating significant proceeds from activities
ancillary to—or indirectly associated with—their success as a
recording or performing artist. Many of those recording artists
through the 1950s didn’t know the value of copyrights and the
primary source of revenue that could be derived from royalties
associated with owning compositions and recordings, so they
missed out on this valuable source of proceeds.

Music Business Degree Handbook 16


A CASE OF MISDIRECTED PRIMARY REVENUE

In 1955, four male New York City teenagers music company owner with reported ties to the
including Jimmy Merchant (pictured, far left) and mob. They were further infuriated when it was
Herman Santiago (second from left) performed revealed Lymon was receiving royalties for the
as the vocal group the Premiers. After auditioning song, even though he had made no contribution
for George Goldner, the owner of Gee Records, to its creation. They also discovered that Goldner
performing a composition written by Merchant only put Lymon’s name on the song in order to
and Santiago called, “Birds Sing So Gay,” Goldner market it as a song about a teenage boy’s ode to
recorded the song. However, shortly thereafter, a teacher. Although Lymon was credited as one
13-year-old Frankie Lymon (pictured, center) of the song’s writers, most of the royalties were
joined the group and replaced Santiago as the going to Goldner and Levy.
lead singer on the recording. Goldner changed
In 1964 Goldner signed over his interests in the
the name of the group to Frankie Lymon & the
song to Levy, claiming that he had mistakenly
Teenagers and the title of the song to “Why Do
taken songwriting credit for the song actually
Fools Fall in Love,” which topped the Pop charts
due to Levy. Subsequently, Goldner, Levy, and
in 1956, ushering in a new era of R&B and rock ‘n’
all members of the group, except Merchant and
roll music. Goldner credited himself and Lymon
Santiago died. Merchant and Santiago eventually
as the copyright authors of the song instead of
filed a lawsuit against the estate of Levy and
Merchant and Santiago who, therefore, received
companies he owned. They won their case for
no songwriter royalties. Each member of the
rightful credit as the sole songwriters of the song
Teenagers received only $1,000 total for the
and were awarded $4 million in damages.
subsequent 18-month concert tour.
Since that time, many music creators have made
For years, Merchant and Santiago complained
efforts to become aware of their rights and insist
about not being paid, but were intimidated by
on their fair share of these important earnings
threats of physical harm from Morris Levy, who at
directly related to copyright ownership and other
the time was an important music promoter and
primary income-generating activities.

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

Ancillary Revenue and


the 360-Degree Deal
The 1990s were a boom era for music creators,
record companies, and publishing companies. Direct
revenue generated from the sale and licensed use
of copyrights in sound recordings and compositions
was at an all-time high, primarily from the market
domination of CDs. Self-produced artists were capable
of extracting sizeable—sometimes seven-figure—
Drew de F Fawkes [CC BY 2.0 (https://
creativecommons.org/licenses/by/2.0)], advances from any of the six major labels, while artist
via Wikimedia Commons
rosters and employment at a number of record labels
Case Study: skyrocketed. During that same period, recording
Robbie Williams’ agreements provided labels the right to participate in
360-Degree Deal revenue solely generated from the sale and use of an
artist’s recordings while other income streams artists
British rocker Robbie Williams
reached stardom in the 1990s as a enjoyed—such as touring, publishing, merchandise,
member of the group Take That, but acting, sponsorships and endorsements—were off-
he experienced his greatest success
limits to the labels. What wasn’t expected, however,
as a solo artist after leaving the group,
becoming the best-selling British
was the impending decimation of the value of music
artist in the UK and best-selling non- primarily resulting from illegal peer-to-peer file-
Latino artist in Latin America. In other sharing programs like Napster, Kazaa, and other sites
words, Williams was one of the world’s
at the dawn of the new Millennium.
most famous artists outside the US.
Based on this success and dwindling
overall record label earnings as
Record companies quickly discovered that in order
Internet piracy continued to rapidly to stay in business, they would have to fashion a
shrink the pre-iTunes market for the new relationship with their artists and they did so
sale of recordings, Williams’ label,
by instituting the 360-degree deal. This new type of
EMI, entered into a groundbreaking
new deal with him. arrangement, also referred to as an All-Rights deal,
enabled the labels to start participating in receiving
In 2002, EMI paid Williams a $100
million advance in exchange for six proceeds being generated not just from the sale and
albums and an unprecedented cut use of their artists’ recordings, but also other income-
of his lucrative ancillary revenue generating artist activities that were deemed indirect
(continued on the next page) or ancillary.

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

streams from publishing, touring,


and merchandise. The deal set a new
path for label/artist relationships in
the post-Napster, pre-iTunes and
Acting Licensing
streaming music economy and was
touted as a way for artists of Williams’
stature to gain more control, while
providing more financial security for Sponsorship &
Publishing
Endorsements
labels. When Williams was signed,
EMI president Tony Wadsworth said,
“It means record companies and
Record Sales
Merchandise
artists are much more clearly on the & Streaming
same agenda. It may signal a change
Touring
in the business, as investments we
make in artists are realized in a greater
range of potential income streams
instead of solely recorded music
sales.” The labels’ rationalization for this change was based
In spite of Wadsworth’s optimism, on the rapid demise of their once profitable market
the deal failed miserably. Williams’ leader—the sale of CD albums—and the resulting
albums, Intensive Care and Rude Box
losses, which could not even be offset by an eventual
experienced dismal sales. However,
that did not discourage most major
rise in digital singles and album sales. Between 2000
labels from adopting the principal of and 2015, record label revenue was halved. Labels
the 360-degree deal, a model most began to realize their significant financial investment
labels still insist upon today. However,
in building the career of a successful new artist often
some question whether labels still
need the extra revenue, especially led to the artist having several ancillary earning
in light of the drastic increase in opportunities such as lucrative tours, TV and acting
earnings from streaming activities
roles, commercials, sponsorships, merchandise, and
and the difficulty they experience
in tracking and monitoring many of
publishing activities, all areas that the labels had
the artists’ ancillary income streams. previously not participated in. So, based on that
reasoning, labels not only wanted, but believed they
deserved, to participate in the fruits of the budding
artists’ careers, which their initial investment helped
create and having artists enter into 360-degree deals
with them was the way to make that happen.

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

Categories of Primary and


Ancillary Revenue Streams
and Related Benefits
While generating revenue is essential to establishing and
maintaining a career or business, there can sometimes be
other residual benefits we can accrue in addition to revenue.
Categorizing revenue and benefit streams requires you
to investigate the position of the individual party to which
these streams are associated. A party may have a number of
categories of primary and ancillary income depending on
several factors.

To put this into concrete terms: a live performer may derive


more income from the sale of CDs at a live performance than
their performance fee. In that case, is the performance fee or
money made from CD sales the primary source of revenue for
the artist? If a live promoter, like Live Nation, makes most of its
money from parking fees and concession sales at the venues
they own, is it the revenue they earn from ticket sales or the
sponsorships which are deemed primary or ancillary? What
about an independent live promoter, who rents a venue they
don’t own, makes most of his or her money from ticket sales
but additional substantial amounts from sponsors who support
the show? Is the sponsorship revenue deemed ancillary, when
without it, the show may not go on?

Music Business Degree Handbook 20


THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

As seen by these examples, the categorization of a party’s


primary or ancillary revenue may vary widely. Let’s look at
some categorizations of various types of revenue/benefits
one can obtain from several sources:

ÎÎ Live Performance ÎÎ Non-Featured Session ÎÎ Music Product Sales


Musician/Vocalist and Endorsements
ÎÎ Live Promoters
ÎÎ Acting ÎÎ Grants
ÎÎ Branding
ÎÎ Merchandise
ÎÎ Copyright
ÎÎ Crowdfunding
ÎÎ Social Media

The Importance of The Three


Big Ps in the Development
of Revenue in the Music
Industry
The Three Big Ps or principles for success in today’s and
tomorrow’s music industry are Powerful Product, Proper
Perspective, and Professional Attitude. Adherence to these
principles isn’t a guarantee of favorable outcomes, but
collectively, they do increase the likelihood of an eventual
breakthrough and success of your venture.

Powerful Product
For purposes of this discussion, powerful product may be song,
recording, live performance, app, software program, brand, or
other creative work that has a telling impact on an audience or
market. Most musical artists receive their first exposure from
the exploitation of an audio or video recording. While audio
recordings are no longer the primary revenue-generating source

Music Business Degree Handbook 21


THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

for most artists, they are still usually the first opportunity for artists
to build an audience and, as they say, the first impression is
always the most important. The key to success in this business is
to make your first impression an impactful one. Powerful product
not only moves an audience, it may create long-term asset value
that is a key to continued revenue-generation from the product
and, in some cases, one powerful product can lead to the
development of other powerful products.

Proper Perspective
Creating powerful product is essential, but it’s not the only
component of continuing success in the music industry.
Having powerful product without knowledge of the past or
the necessary skills to critically analyze the future of the music
business is analogous to putting the cart before the horse. Famed
astronomer and author, Dr. Carl Sagan once said, “In order to
understand your future, you’ve got to know your past.” The music
industry has unlimited opportunities for innovative growth and
development in the future that will only be exploited by those
that have a grasp on the significance of the past.

Currently, three major labels maintain a stranglehold on the


distribution of physical copies of music. But were you aware
that at one time in the 1990s there were six major labels that
shared in what has been deemed the Golden Age of recorded
music? Since then, several factors have contributed to the
rapid consolidation of the business through mergers and
acquisitions. A paradigm shift from the physical configurations
of music to the digital space has caused the demise of the
sale of CDs and ushered in an era of digital service providers
selling subscriptions and/or ads, which only provide access
to the music through specific devices. Knowing how these
changes alter the business of music creators and facilitators is
crucial to creating a viable future for all interested parties.

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

New and interesting revenue streams emerging from the


gathering and use of important data tracking trends in music
and social media activity are becoming the key to innovative
ideas, products, and services. Those with the proper perspective
will be the pioneers of the new digital music industry.

Professional Attitude
The final Big P is professional attitude. To achieve longevity
in the music business as an artist or business leader, it is
important to not only respect yourself, but the people
you come in contact with in all your business dealings. It
is becoming increasingly important for artists to respect
themselves by putting a priority on their physical health and
mental wellbeing.

Chester Bennington was an American songwriter and lead


singer of the group Linkin Park. Linkin Park’s first album,
Hybrid Theory, became an immense commercial success in
2000 and in 2005 was recognized with Diamond certification
by the Recording Industry Association of America (RIAA) for
selling 10 million copies. In 2004, the band collaborated with
JAY-Z, as one of the first real creative projects to materialize
after both artists’ work were incorporated into a mash-up. The
band’s subsequent albums continued the group’s success. In
2017 Linkin Park was about to embark on the North American
leg of a world tour when Bennington was discovered dead
by his housekeeper. The hanging death, ruled a suicide,
rocked a music world that had only two months earlier been
shocked at the suicide of Bennington’s close friend and star
performer, Chris Cornell. Both of these deaths forced the
industry to pay attention to the drastic increase in suicides
within the music industry.

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THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

Prior to Prince’s death from an overdose of Fentanyl on April


21, 2016, there were signs of distress in the health of the
pop music icon. Earlier in the month, he had cancelled two
appearances and, while flying back to his home in Minneapolis
after performing a rescheduled show, his plane was forced to
land in Illinois where he was hospitalized and received Narcan.
In the case of both Bennington and Prince, there was obviously
great physical and/or emotional pain, and for whatever the
reason, they did not receive the proper care that may have
saved their lives.

Over the past 20 years, several artists, including Michael


Jackson, and this course author’s client and friend, Gerald
Levert, have died as a result of what I call “the celebrity’s
cocktail”—a lethal mix of over-the-counter and prescribed
substances, which, when combined, most often result in
death. What does this have to do with professional attitude
and revenue streams? Plenty! Without the proper respect
and care for your own life, you cannot function at the job of
creating and performing for your fans. This isn’t an indictment
of the individuals named above, many of whom relied on
taking a celebrity cocktail to enable them to work through
both the physical and emotional pain they experienced as a
result of a hectic schedule of performance dates and other
career commitments that kept revenue streams flowing for
them and their associates. It is rather, a recognition that
their deaths robbed the world of their creative genius and
revenue channels that supported other people, including
their families, in spite of the fact that consumption of their
music experienced an increase immediately following
their deaths.

Music Business Degree Handbook 24


THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

When Pat Corcoran, Chance the Rapper’s manager, was asked


what is the most common mistake young managers make, he
responded: “There are times you have to grind and hit the
road for months at a time, but you have to remember that your
life matters too. Focus on improving the quality of your life
and the quality of your work will improve, too.” So, if you are
an artist or represent an artist, keep a professional attitude by
respecting yourself and your audience.

Not only do artists need to respect themselves, but those


who are responsible for managing their business must do the
same. Building relationships with people you do business with
is the key to a long and prosperous career. Someone once
said that in the music business, “you can’t make a living, but
only a killing. The key is to put as many killings together as
you can.” Basically, this means that you need to accumulate as
many hit records in a row as you can. This dire warning may
be true to an extent, but for music industry businesspeople,
another fundamental is treating everyone you meet with
respect and dignity. The recent #MeToo movement is a great
example. Women and men should always be treated with
respect, but the actions of some industry power players has
shown that isn’t the case in all too many instances.

Another well known saying is, “chances go around: you meet


the same people going up as you do going down.” I have
found it to be true that artists and businesspeople who have
let success go to their heads and disrespect their colleagues
have short-lived careers. However, those with a professional
attitude develop and nurture courteous and respectful
relationships that can lead to long successful careers which
foster steady, profitable revenue streams for themselves and
their artists.

Music Business Degree Handbook 25


THE DEVELOPMENT OF MODERN MUSIC INDUSTRY REVENUE STREAMS

The definition of primary and ancillary revenue streams in


the music business continues to evolve as new technology
emerges. While the recording artists’ primary source of
earnings for years emanated from recordings and live
performances, as technological advances led to the
development of movies, TV, and the Internet, additional
earning opportunities opened the way for new related
revenue streams.

John P. Kellogg Esq. is the Program Director for Berklee Online’s Master of Arts in Music
Business program, and the author and instructor of that program’s Music Business Revenue
Streams course. He is an entertainment attorney and the former Chair of the Music Business/
Management department at Berklee College of Music. Once a vocalist and songwriter with the
group Cameo, he is now known for writing best-selling books and academic articles relating to
the music business.

Music Business Degree Handbook 26


Show, Don’t Tell:
Data Visualization
and Infographics
By Liv Bulli

Excerpted from the graduate course


Data Analytics in the Music Business

Data visualizations have become an increasingly important


medium and even the simplest graphic can serve to elevate
and enhance your analysis and the story you are attempting to
tell with data. Some data visualizations even drive the story
for you.

It’s not the Pie Chart, It’s You


Employing data visualization isn’t technically a new
phenomenon. The first example of a graphical representation
of data was presented by William Playfair in the early
nineteenth century. However, with the rise of big data across
industries, it has become an increasingly important visual
medium for storytelling. In fact, here is a very basic “data viz”
on “data viz” to help illustrate the rise of “data viz” in recent
years, courtesy of Google’s Ngram Viewer:

Music Business Degree Handbook 27


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

A decade ago, few had even heard of the niche “data


visualization as art,” nor did graphics serve as a foundation for
entire publications such as Nate Silver’s Fivethirtyeight, “The
Upshot” from the New York Times, or the Pudding. Nor was it
taught as a separate subject within schools and universities,
even those that focus on design or computer science.

Today a large data visualization community exists,


communicates, and collaborates on platforms like Twitter and
Reddit. Books and resources are published at a rate that can
barely keep up with the thirst for knowledge on the topic. You
are likely to come across infographics and data viz in your
daily consumption of broadcast news and journals. Charts
and graphs have become the purview of journalists, business
analysts, and marketers alike.

Anyone who is trying to make sense of data, which is most of


us these days, is likely to have dabbled in the art of designing
a graph. Keep in mind that reading and creating charts is not
necessarily intuitive, and that our general introduction to them is
pretty basic unless we study in a relevant field. In addition, there
are countless examples of terrible—not to mention, inaccurate—
data visualizations that enter the mainstream and exacerbate the
issue. Also note from our graph that the term “data visualization”
still remains an extremely small fraction of the English corpus.

Music Business Degree Handbook 28


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

We Are Not Yet Data Literate


The pie chart gets a bad rap, especially after data visualization
grand master Edward Tufte denounced its efficacy as a chart
and claimed that the only design worse than a pie chart was
several. Research indicates that humans do have a hard time
interpreting the proportions of a pie chart, yet we are drawn
to them as a medium. Others have argued the pie chart does
indeed have an appropriate time and place; we use pie charts
to illustrate parts of a whole.

Simply put, data visualization is the presentation of data and


information in the form of a chart or diagram. It is a particularly
valuable medium for sharing insights. Research shows that
the human brain is able to interpret information and patterns
presented in visual form, far faster than if it is shared as written
text or communicated verbally. We are also likely to retain that
information for longer.

Really this debate is a can of worms we don’t need to open


just now. What we can (or should) all agree on, is that a pie
chart should never add up to anything other than 100 percent
or a meaningful whole. Yet . . .

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SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

And a pie chart that makes up more than a whole is not the only
way to skew data graphically. You might cherry-pick your data
points to suit the story you are trying to tell . . .

Or exaggerate a trend by starting your Y-axis at an arbitrary (or


not so arbitrary, depending on your motive) number, rather
than at zero. Or otherwise manipulating the intervals of data
represented without explicitly stating so and having a legitimate
reason to do so.

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SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

And while the above are real examples of presenting data in a


certain way with the intention to mislead, an inaccurate chart
isn’t necessarily made with underhanded motives. A flawed
chart or interpretation of a chart can simply be the result of an
error in calculation. These are just a few examples of how this
can all go wrong.

There are countless ways to skew and manipulate data either


to suit your needs, or that can be chalked up to human error.
Looking at a particular subset of data can obscure the big
picture and trend.

And in addition to this, keep in mind that data literacy is


still in its infancy. It will likely take at least a generation
where this exists as a mainstream medium before reading
charts becomes second nature, if not longer. The idea that
computational thinking as a skill needs to be taught at the
same level as reading, writing, and math is becoming more
and more common.

This is why it is essential to adhere to the fundamental


principles of data visualization and graphics when using
this medium. Even as we begin to experiment and stretch
the limits of conventional chart types and data visualization,
this requires thoughtful consideration of how a chart will be
interpreted, both at first glance, and following some level
of scrutiny.

So what are some of these fundamental rules and definitions?


Read on!

Music Business Degree Handbook 31


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

From Bar Charts to Box Plots:


The Fundamentals of Data
Visualization
The advantages to data visualization and information graphics
are many. Presenting data in visual manner can reveal
patterns and trends in large amounts of data. As opposed to
spreadsheets containing potentially millions (if not billions)
of rows of data that are pretty much impossible to digest
with the human eye, our data can be condensed into a
relatively small space: bitesize graphics that are easy to share.
What’s more, data visualization, when done well, can be an
extremely powerful and persuasive medium that can help
tell a compelling story or share ideas, whether that is as a
standalone graphic, or accompanying text.

For these reasons and more, we want to learn more about how
to employ data visualization as a tool. That doesn’t necessarily
mean that we need to be able to build complex interactive
graphics using terabytes of data to get our point across (though
some of the tools we will explore that have been developed in
recent years do make that an easier task than it once was).

Music Business Degree Handbook 32


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

The previous graphic from the data visualization blog


Information Is Beautiful aims to explore the financials of
streaming services as this relates to artists and compares this
data across major platforms.

The amount of data used in this graphic is fairly limited. Yet,


the graphic tells a powerful story about which services provide
the most value back to artists, how much activity an artist will
need to see on a specific platform in order to make a living
wage, and how these platforms net out in terms of audience
and reach.

For instance, while YouTube comes out as paying the least


amount of money per play to artists, their user base and
audience reach far exceeds that of every other service. Sure, it
can take more than 2 million plays to make a living wage from
your YouTube account alone, but then again there are more
than one billion users on the platform you could potentially
reach, most of whom are using it for free. And this is just
one of many tidbits we can decipher. This fairly simple, but
well-designed graphic tells us an awful lot about how royalty
payments shake down across platforms and why that is.

In fact, the founder of Information Is Beautiful, data journalist


David McCandless, has shared some insights on what
makes for good information design. He sees a successful
data visualization as a combination of four elements –
Interestingness, Integrity, Form, and Function.

Music Business Degree Handbook 33


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

Simple diagrams will more than suffice as long as they are:

ÎÎ Meaningful and relevant to an audience

ÎÎ Factual, honest, and accurate

ÎÎ Pleasing to look at (in other words beautiful)

ÎÎ Useful and easy to interpret

Or, put in visual form:

relevant
meaningful
new

interestingness

proof of
concept experiment
ugly

truth easiness
consistency successful usefulness
integrity useless information rubbish function
honesty useability
accuracy design fit

boring
eye-candy sketch

form

beauty
structure
appearance

Music Business Degree Handbook 34


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

Now that we have established how to think about information


design, we can walk through the process of designing a data
visualization and cover some of the basic rules.

It might behoove us to start by thinking about our audience


and objective. What story are we looking to tell? What ideas
do we want to communicate, and who are we trying to reach?
For what it’s worth, this is the first question we need to ask
ourselves regardless of what medium we are using to tell
a story, whether it be writing an article, shooting a film, or
choreographing a ballet.

Once we have defined our argument and our audience, we


can start to look for the right data. We’ll need to explore the
data we have available not only to determine what might be
relevant to our story, but also to see what patterns and trends
we might be able to spot. Does the data corroborate our story,
or do we need to reevaluate? What are some of the outliers,
and what do they tell us about the overall data set? What do
you want your audience to get from this data?

The next step is to choose the right chart type for your data
and story. There is a bunch of research done on the matter,
and plenty of guides and cheat sheets that experts have
developed to help you make the right choices, but according
to Stephen Few, the author of Show Me the Numbers and Big
Data, Big Dupe, there are a few fundamental principles we can
keep in mind.

Music Business Degree Handbook 35


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

The right chart will:

ÎÎ Clearly indicate how values relate to one another

ÎÎ Represent quantities accurately

ÎÎ Make it easy to see the ranked order of values

ÎÎ Make it clear and intuitive how to interpret the information

TIPS FOR PRESENTING DATA VISUALIZATION

Always scale to zero. Otherwise we risk exaggerating the


difference between values and this can be misleading to
our audience.

86 80

84 60

82 40

80 20

Not scaled to zero, these differences When scaled to zero we can see there is
appear staggering. only a small difference between values.

Music Business Degree Handbook 36


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

Never use 3D charts. The effect distorts the perception of


values, serves no purpose, and is distracting.

33%

33% 33%
33%
33%

33%

Keep it simple and reduce clutter. The more we can focus on


just the information we are trying to relay, the easier it is for an
audience to interpret the chart how it is intended.

40 40

35
30 30

25
20 20
15
10 10

0
Group A Group B Group C Group D Group A Group B Group C Group D

 

Music Business Degree Handbook 37


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

Provide ample and accurate context. We’ve seen examples


of how cherry-picking data points can severely distort the
interpretation of data.

 

Label well. Titles, annotations, or legends that help explain


your chart should be integrated as part of the chart as much
as possible. If the audience’s eye needs to travel far to
understand what data they are looking at, you will quickly lose
your audience and risk misinterpretation.

Series 1
80

60

Series 2
40

20

Music Business Degree Handbook 38


SHOW, DON’T TELL: DATA VISUALIZATION AND INFOGRAPHICS

Practice austerity with your color choices. Color is a


powerful tool in data visualization. Your color choices should
be analogous so as not to distract. Different colors can be used
to contrast values, to highlight and emphasize your point, but
never to “decorate.”

In addition, note that there are intrinsic interpretations associated


with color choices: red means loss; green means profit; pink is
female; blue is male. To make it even more complicated, these
associations are culture dependent and can vary. In other words,
you will need to think carefully about your color choices.

And last but not least, as Edward Tufte famously put it:
“Above all else show the data.”

Liv Buli is a data journalist and author, known for her work with Pandora Media and Next Big
Sound. She has spent most of her career working at the intersection of storytelling, data science,
and visualization, thinking about how best to tell stories with data and speaking at conferences
around the world. She is also the author of Penelope Pie’s Pizza Party, the first book in the Vizkidz
series: a collection of books that teach the fundamental concepts of data visualization and
analysis to children.

Music Business Degree Handbook 39


Essential Framework to
Creating a Successful
Marketing Campaign
By Mike King

Excerpted from the graduate course


The Business of Music Marketing

When discussing the most important facets of marketing, we


usually talk about goals, strategy, tactics, identifying who you
want to talk with, and creating a funnel to measure success.
However, a more complete framework, starting from the top,
would need to include the following:

1. The BIG Idea


What is it you want to do and what are your goals? Are you
working to launch a new artist’s career, or are you interested
in starting a new music management company? What are
you working to do, and how will you measure success?

2. Market Research
Once you know what you want to accomplish, determining
the opportunities in the market are critical. First-mover
advantage (being the first to create something in a
particular market) means there is less competition, but it

Music Business Degree Handbook 40


FRAMEWORK TO CREATING A SUCCESSFUL MARKETING CAMPAIGN

also means you could have a more difficult time gaining


traction for something consumers might be unfamiliar with.
Gaining an understanding of potential market size for your
idea, trends in the market, and buying habits of potential
consumers will all work towards validating your idea, as
well as set the stage for creating the strategy for your
marketing plan. For example, if your idea is to launch and
market a physical vinyl-only store in Keene, NH, you would
be well-served to understand the consumption habits of
the local community, the number of potential consumers in
the area, trends in vinyl, etc.

3. Competitive Analysis
Complementing the market research idea above, it’s
helpful to understand your competition as deeply as
possible. Who else is doing what you want to do? How are
they doing it? What opportunities are there for you to do it
better? Understanding how your competition prices their
offering, how they market, who they partner with, and how
they brand what they are doing provides you with solid
insight into how you can differentiate yourself. There are
a wide array of tools and services available to help with
determining what your competition is doing, and where
they are spending their advertising dollars (which is the
best indicator of what they are truly focused on).

4. Target Market
Knowing who your potential fans are, and targeting your
marketing appropriately to reach those who are most
predisposed to being open to your product is definitely
a best practice. Segmenting your market and identifying
appropriate outlets and techniques to reach the right

Music Business Degree Handbook 41


FRAMEWORK TO CREATING A SUCCESSFUL MARKETING CAMPAIGN

folks allows you to be more efficient with your marketing


effort and associated spend, and have the added layer of
potentially delighting prospective consumers, as opposed
to annoying those who have no interest, and will likely
never have an interest, in what you are doing.

5. Positioning
Once you have a handle on the market and on any
competition, you can work on positioning your product
or service. Creating a USP (Unique Selling Proposition)
based on opportunities you have discovered through
your research, or through surveying existing consumers
of your product or service helps to guide your marketing
messages, images utilized, and overall strategy. Your
marketing positioning and associated outreach should
also include best practices with behavioral marketing
techniques. Consumers are motivated by any number of
biases (confirmation bias, outcome bias, zero-risk bias,
and more).

Strategy and Tactics


All of the above flows into creating your strategic and
tactical marketing plan. Your strategy and tactics will
include everything from the operational aspects (pricing,
ecommerce and bundling options, website creation
and visibility, etc.) to the platforms and methods you
use to communicate, your social media plan, your
acquisition techniques, your image and copy choices,
content marketing, partnerships, paid and organic search
techniques, and much more.

Music Business Degree Handbook 42


FRAMEWORK TO CREATING A SUCCESSFUL MARKETING CAMPAIGN

6. Budget
How much do you have, and what is the most appropriate
way to spend? Online advertising provides marketers
with the ability to adjust campaigns midstream based on
results, and while it is important to align your marketing
spend against specific goals, a marketing budget should
be flexible to support changes in the market, testing, and
optimization of efforts.

Data and Analysis


One of the most critical aspects of marketing is to
effectively measure your efforts. A proper approach to
data and associated analysis includes measuring the
effectiveness of as many of your campaign ideas as
possible, including the results of A/B testing taglines,
images, overall advertising campaigns; traffic to your
website, lead and registration activity, and tracking costs
to your marketing efforts—cost per acquisition (CPA), cost
per click (CPC), cost per lead (CPL), etc. Again, online
endeavors provide marketers with a variety of tools to
measure their effectiveness, and the cycle of marketing
execution  testing variables  measuring results is a
great way to ensure that you are on track with reaching the
right people and validating your marketing assumptions.

Mike King is the author of several Berklee Online courses, including the Business of Music
Marketing, part of Berklee Online’s Master of Arts in Music Business program. Before coming to
Berklee, he served as the Marketing/Product Manager at Rykodisc and the Director of Marketing
and Managing Editor of Herb Alpert’s online musician’s resource, ArtistsHouseMusic. He is also
the Vice President of Enrollment at Berklee College of Music and Chief Marketing Officer at
Berklee Online.

Music Business Degree Handbook 43


How Berklee Online Works
Renowned Faculty Like-Minded Classmates
Berklee Online instructors have managed, Offering courses for beginners and
produced, and engineered hundreds accomplished musicians alike, our
of artists and records and have received student body comes from more than
numerous industry awards and accolades. 140 countries and includes high school
Each week you’ll have the opportunity students getting a jump-start on college,
to participate in a live chat with your working professionals, executives
instructor and receive one-on-one at industry-leading technology and
instruction and feedback on assignments. business firms, and members of
internationally known acts like Nine Inch
Award-Winning Courses Nails and the Dave Matthews Band.
Instantly access assignments, connect
with your instructor, or reach out to your Experienced Support
classmates in our award-winning online Every online student is assigned a
classroom. Study from anywhere in the Berklee-trained Academic Advisor.
world at a time that fits into your schedule. Each Advisor is passionate and
knowledgeable about music and here
Specialized Degree Program to support you throughout your online
No other accredited institution offers the learning experience.
acclaimed degree curriculum provided
by Berklee Online. Earn your degree
at less than half the cost of campus
tuition and graduate with a professional
portfolio that will prepare you for a
career in the music industry.

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