Recording Industry - Part I

Scope of The Record Industry

Historical Background
1877 Edison invents Phonograph
1894 First commercial recording released in U.S.
1921 100,000 records are produced for sale in U.S.
1924 Bell Laboratories develop electrical process for recording increasing audible range from 100 to 5,000
Hz. Bass instruments can now be heard
1930s Singles are first marketed by Decca, Albums
1940s Recording begins to increasemore music released weekly than ever before
1948 Colombia releases first 33 1/3 RPM
1950s Cover record concept appears, Record Club begins (1955), Rack jobbing begins (1957), Stereo
introduced (1958)
1970s Independent producer rises to greater importance, 16 and 24 Track Consoles introduced with synths,
computer-assisted mixing, and digital recording, sophistication of music increases
1980s CDs gain market share, video changes marketing for artists, continue in technology growth
1990s New copyright laws due to technology increase, high quality home-recordings made possible, better
in store sampling units, electronic music files appear for sale in addition to traditional sales, DAT (Digital
Audiotape) Hardware approved for use in USA, recorded music finds new means of exploitation through
the use of multimedia
2000s Government cracks down on label co-op ad rates and lowers price of CDs, web technologies (such as
Napster and MP3) scare labels with threat of piracy, iPod and iTunes spur major labels to experiment with
new forms of distribution, internet radio
Labels
Major Label
Account for 80 90% of all recorded music sales
Advantage in costly marketing/promotions
Sometimes out of touch with musical trends
Independent Label
Last to get paid
Trendsetters (Next Band To Break Attitude)
Lifeblood of the business
Most Majors started as independents (Island, Chrysalis, Virgin, Geffen,
Artista, Sire)
Exhibit Creative leadership and determination
Specialty Labels
Only appeal to certain types of audiences (i.e. Classical, Gospel etc)
D.I.Y. (Do It Yourself)

Record Company Structure
Executive Office (CEO, COO, CFO, General Manager)
Founder, usually Lawyers or Producers
Strong leadership and vision
Art of the deal
Artist and Repertoire (A and R)
Find New Acts
Remains involved after artist is signed
Large label, breaks into teams such as Artist Development, A&R
Administration, Artist Relations, and Production (Video/Audio)
Distribution/Sales
Convince retailers to buy records
Explore effective ways to place more product into retail outlets

Record Company Breakdown (Cont.)
Marketing (Usually Divided Into Several Areas of Specialization)
Radio Promo
Heart of Marketing, Airplay and Charting (critical to success), Interviews, Giveaways,
Promotional Appearances, Contests
Video Promo
Video Airplay for Artists (VEVO, YouTube, Babel etc)
Publicity
Media Exposure (TV, Magazines, Reviews, Syndicated Radio, Etc.)
Advertising
Work closely with distribution and sales departments, cost shared between retailer and
label
Creative Services
Design and produce any marketing materials for campaign such as posters, Point of
purchase materials, ads, album artwork, and window displays
Production Department
Organizes all various steps in creation of the final product that will be sold to consumers,
oversee deadlines/hiring
Product Management
Coordinate and oversee all aspects of current release, including tours, packaging,
advertising, publicity, promotions, and sales
Special Products
Handle all incoming requests for licensing, find new ways to repackage or redesign
masters company already owns
Record Company Breakdown
International Department
Global nature of business
Ensures effective international sales and communications
Business and Legal Affairs
Larger Labels have separate departments (Business and Legal Affairs,
Licensing, Copyright etc)
Negotiate and draft agreements
Range From Artist Recording Contracts to Licenses issued by and to the record company
for use of copyrighted materials
Accounting
Assist with Recording Budgets, inventory and manufacturing costs
Publishing Affiliates
Labels may try and persuade artists to stay in-house for publishing
All labels own or control at least two publishing companies
ASCAP and BMI
Some indie labels will have exceptions

Record Costs and Breakdowns
Example of Cost of CD and Breakdown of
Payout
Tough Business, especially today
NARAS
National Academy of Recording Arts and
Sciences
The Recording Academy
Telecast Grammys Annually
Full Membership Limited to Industry Professionals
ONLY
Associate Members
Indirectly involved in record production
Students
Applications Accepted at NARAS Regional Offices
References
All content in this lecture is created by Henri
Benard and various referenced websites
contained within the slides. This information is
intended only for use by students enrolled in
MUC109 at Mesa Community College. No
unauthorized use shall be granted.
Henri Benard 2014