What They'll Never Tell You about the Music Business: The Myths, the Secrets, the Lies (and a Few Truths)

by Peter M. Thall

Overview

“For someone on the way up, this book is a must; for everyone else, it’s a bible.”—Danny Strick, co-President, SonyATV Music Publishing, Inc.
 
This completely revised and expanded edition of What They'll Never Tell You About the Music Business is a must-have reference not only for aspiring songwriters, record producers, and performing artists but also for record company executives, personal and business managers, agents, and attorneys. You’ll learn: 

*How the Internet has affected every aspect of the music business, from copyright and royalty issues to censorship

*How many musicians have seized do-it-yourself Internet opportunities to create successful business models

*How satellite radio, digital jukeboxes, and video games are affecting the music market

*How artists can maximize their chances for long-term financial health

*How the royalty pie is sliced—and who gets the pieces

*What snares and pitfalls to avoid when signing an employment contract
*And much more.
 
“The music business is complicated, and this book is very helpful in deciphering its pitfalls, opportunities, and challenges.”—Clive Davis, Chief Creative Officer, Sony Music Entertainment Worldwide
 
“Thall’s book simplifies a complicated business, and it provides the reader with knowledge that otherwise is available only to those on the inside.”—Scott Francis, President, Warner/Chappell Music and Chairman & CEO, Warner/Chappell Music U.S.
 
“Whoever reads this book is getting expert advice from one of the most respected and knowledgeable players in the music industry today. I wish this book was available when I was looking to begin my career in the music business.”—David Renzer, Chairman & Chief Executive Officer, Universal Music Publishing Group
 
"Intelligent and accessible--rich in references, but easily understandable."—David Geffen
 
“A clear contender for the one indispensable work on the topic, this book delivers the goods. There is no one involved in the music business who will not learn and benefit from this ambitious work.”—New York State Bar Association

From the Trade Paperback edition.

Product Details

ISBN-13:	9780823084395
Publisher:	Crown Publishing Group
Publication date:	06/28/2002
Pages:	288
Sales rank:	1,043,154
Product dimensions:	6.25(w) x 9.50(h) x 1.00(d)

Table of Contents

	Preface	ix
	Acknowledgements	xii
Chapter 1	Introduction	1
	Selecting the Right Attorney	2
	Personal Representation	3
	Deal Makers: Why You Need Them	4
	Deal Blockers: How to Get Past Them	5
	Staying the Course or Calling It Quits	6
Chapter 2	Investors: The High Costs of Low Finance	8
	The Costs of Being Heard	8
	Of Investors and Investment Agreements	9
	Should He Who Pays the Piper Call the Tune?	16
Chapter 3	Why Advances Seem a Lot Like Loans (and Vice Versa)	18
	A Sad Story and a Happy Story about Advances	19
	Is One Person's Money Another Person's Motivation?	21
Chapter 4	Some Unvarnished Truths About Royalties	23
	How the Royalty Pie Is Sliced and Who Gets the Pieces	24
	Diabolical Deduction Devices	29
	The Beat Goes On: Other Important Deductions	32
	Prepayment of Royalties	35
	The Myth of Royalty Escalations	36
	Free Goods	37
	Lost or Misplaced Royalties	38
	AHRA Royalties	40
	Accountings, Audits, and the Statue of Limitations	41
	The Effects of Digital Downloading on Pricing and Royalties	43
Chapter 5	Personal Management	46
	What a Personal Manager Should (and Should Not) Be Expected to Do	47
	Managing The Five Stages of an Artist's Career	48
	Choosing Your Manager	53
	Paying Your Manager	57
	The Term of the Agreement	62
	Extending or Terminating an Artist-Manager Relationship	62
Chapter 6	Managing Your Business--and Your Financial Future	68
	What a Business Manager Does	68
	What Kind of Business Is Being Managed?	72
	Money Means Options: Resisting the "Keep 'Em Poor" Philosophy	81
	Managing Your Money	82
	After You've Peaked: Catalogue Management	90
Chapter 7	When Your Job is More Than a Gig	92
	Term of Employment	92
	Duties	92
	Reporting Lines	93
	Confidentiality and Competition	94
	Stock Options	94
	Perks	96
	Termination	96
	Relocation and Re-relocation	99
	Visas	100
	Disability and Death	100
	Provisions That Survive Termination	101
	Vacations	101
	Employment Issues Specific to the Music Industry	102
Chapter 8	Record Producers: are They as Sharp as Their Points?	109
	How 25 Percent Can Equal 100 Percent	109
	Cross-Collateralization: It Does Not Apply to the Producer	111
	Some Points for Producers	112
	Producers and Neighboring Rights	120
Chapter 9	Getting Your Record Heard: A Practical Guide to Marketing and Promotion	122
	Marketing Tools	122
	The Goal-Oriented Campaign	123
	The Record Contract	125
	Record Companies Can Only Do So Much	129
	Victim or Victor?	130
	Television Campaigns	131
	Radio Promotion	132
	The Same Old Song (Only the Coda Is New)	136
Chapter 10	Touring Concerns	140
	The Club Tour	140
	The Grand Tour	141
	Tour Riders	143
	Foundations of Success: Team Planning	144
	Elements of Touring Agreements: Commonalities and Idiosyncrasies	153
	Owners and Operators: Who Nets the Net?	154
Chapter 11	Merchandising: Your Band; Your Brand	156
	Tour Merchandising	156
	Retail Merchandising	165
	Some General Considerations	169
Chapter 12	Audits: Truth or Consequences	174
	Examining the Audit	174
	Television Campaigns	179
	Interest Charges	179
	Statutes of Limitations	180
	Conducting Audits In Foreign Countries	181
	A Few Practical Suggestions	182
	The Right to Audit: A Contract Issue	184
Chapter 13	Music Publishing: The Odyssey of the Song	186
	What is a Music Publisher--And What Does It Publish?	186
	Copyright: A Bundle of Intangibles	188
	Financial Secrets and Realities	191
	The Administrating Function	198
	Foreign Taxes	199
	At-Source vs. Receipts Deals	199
	The Black Box Revisited	201
	Copyright Reversions	202
Chapter 14	The Pros and Cons of Being Your Own Music Publishing Company	203
	Self-Publishing	203
	Why Both Doing It Yourself?	208
	The Cost of Acquiring Copyrights	209
	Reversion of Copyrights	210
	The Value of the Copyright	211
	The Impact of Administrating Costs on True Earnings	213
	The Cost of Giving Away a Piece of the Publishing	213
Chapter 15	When Rodgers Meets Hammerstein: Determining Songwriter Credits	215
	Co-writing Agreements	215
	Co-writers Who Are Band Members	216
	How to Split the Splits	217
Chapter 16	Copyright Issues: A Sampler	220
	Copyright Infringement	220
	Realpolitik: The Impact of the Internet on Recording and Publishing Agreements	225
	Compulsory or Negotiated Licenses	227
	The Fairness in Music Licensing Act	228
	The Copyright Term Extension Act in Jeopardy	228
	MP3: How Two Letters and a Numeral Terrorized an Entire Industry	229
	Napster: A Seven-Letter Word for Revolution	230
	After Napster: Exit the Central Server	231
Chapter 17	Compliance with Copyright Laws in the World of Cyberspace	233
	Intangible Rights and the Internet	233
	Licensing from Music Publishers and Sound Recording Owners	234
	Copyright Law Provisions Applicable to the Internet	236
	Term of Copyright	239
	Sampling, Borrowing, and Stealing	239
	Rights Management	240
	Dangerous Language Alert	240
	Music Clearance: The Music Industry's Revenge	242
	International Issues: One-Stop Shopping	242
	What Is To Be Done?	243
Chapter 18	Internet Entrepreneurship	246
	Competing with the Big Boys	246
	Artist, Songwriter, Performer--And E-Commerce Expert?	247
	Making a Living	248
	Stealing and Protecting Against It	249
	Do's and Don'ts of Internet Entrepreneurship	250
	Manufacturing and Distribution	251
	Which People Should Do It Themselves?	252
	A Word of Warning--And Encouragement	253
Chapter 19	Urban Music: Hip-Hop	254
	Roots	254
	The Milieu	254
	Urban Music: The Producer's Cosmos	256
	Different Strokes for Hip-Hop Folks	256
	Hip-Hop and Pop Culture	260
	Business Management and the Management of Business	261
	The Changing Image	262
	Contractual Issues from the Hip-Hop World	262
	The Rap Coalition: Self-Help Exemplified	263
	Hip Hop Rules	264
Chapter 20	Classical Music	265
	A Little History	265
	Demise or Rejuvenation?	266
	An Essential for Success: Spirituality	268
	New Life for an Old Genre	270
	The Internet: Is It the Answer?	272
	The Role of Record Companies	274
	The Composer-Artist: Special Considerations	277
	Classical Management	278
	Presenting the Singer	281
	Music Education	282
	Index	285