CMG Live! 6:30p-7p EST - Episode 01: 2012 Marketing

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Milton Bradley: The Answer to Unemployment?


Full Sail University's very own Ron Cook posted a recent blog entry that peaked my interest regarding entrepreneurship. Mr. Cook addressed the notion that in these tough economic times when unemployment is at record highs, you should employ yourself! Business program college graduates amass all this knowledge of how to run business the right way so that someone else can reap from their understanding.

It should be noted that part of Mr. Cook's job description is to consult with students regarding the plausibility of their business plans. Narrow focus that addresses a need that is not being met in the marketplace is key according to Professor Cook. Also, he says that seed investors should include family because if an angel investor has to ask you if any family gave to your idea and you say none have then why should a person that doesn't know you at all give one red cent? Moreover, Prof. Cook explains differentiation as something necessary and not cliché.

I agree with all points brought forth in this insightful article. I would even add a few things of my own. Today more than ever diverse revenue streams are needed to compete with the growing cost of basic necessities. Normal jobs by themselves will not fund retirement because social security may not even be there. Plus, to qualify for this government assistance you have to be worse off than any of us want to envision ourselves. Consequently, investing, learning the stock market, creating residual income, and understanding the world economy (not just domestically anymore) is a growing need.

Milton Bradley CompanyImage via Wikipedia
Schools do not teach things even as simplistic as Monopoly, why? Perhaps the AG student in the 1st grade would be better served playing a game from Milton Bradley than Activision or some other video game. These are the thoughts of an aspiring business owner. People around the globe 
love what the United States stands for with democracy and interestingly at its fundamental concept business wise the picture of what we as Americans represents can be seen in the simple form of a Flea Market. That is free enterprise at its finest.

References:

Cook, R. (2011). Cooking up an opportunity. FSO blogs EBMS. Retreived on
August 6, 2011 from
http://www.fsoblogs.com/ebms/2011/8/3/cooking-up-an-
opportunity.html
  

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Audiosocket: Spend Money, Make Money

Image representing Audiosocket as depicted in ...Image via CrunchBase

Have you ever wanted to license music quickly for a marketing project or promotional effort? Have you ever stolen the song elsewhere because of the time and process? Audiosocket makes it easy to license music the right way to use in almost any marketing avenue. Plus, did you kno
w you would share in the revenue created from the plays of the songs you decided to license? I thought that might get your attention.
Listen up! Audiosocket is not easy to get into if you are an artist that makes music. They screen everything and only have about 19,000 songs so far. However, if you are lucky enough to get content in the system, then with the right promotion your music can easily be licensed by businesses, film producers, record labels, or any other business looking to make a commercial of some sort. What is in it for them you ask? They make a small revenue off the song as you do each time it is played! An investment is measured by how long and how much you get back. Imagine spending money on licensing a song, then over time making back your money through your marketing of the song and actually making more money off licensing it than you spent on it originally!
The logo for the Billboard magazine.Image via Wikipedia
This is an amazing idea that could only be done legally if all the publishing houses were on board. Oh wait; Audiosocket took care of that according to an article by Anthony Bruno for Billboard where the company got BMI and ASCAP on board earlier in 2011. This idea is genius! Imagine all of those You Tube vids that use bootlegged content from your favorite artists, now using licensed material and promoting new artist’s music because it helps them make money instead of taking money from the artists. Could it be that music may have found a way to combat illegal downloads by helping people make money? My dreams have been answered…or have they? Only time will tell.

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Spotify: A Brand New World?

Image representing Spotify as depicted in Crun...Image via CrunchBase
Spotify comes to the U.S. It is like iTunes, meets Pandora, meets the Copyright Office, meets Harry Fox’s sample clearing agency. The revenue streams are vast with premium accounts that allow you to save playlists offline, bring up tunes on your mobile devices and home computer, as well as share via Facebook, Twitter, and instant messaging services. In addition, there is a copyright registration service for recording artists that charges $85 per submission that is user friendly, simple, and provides customer service for any concerns dealing with the copyright process. Subsequently, Harry Fox Agency has inked a deal with Spotify that will allow mechanical rights to be cleared as a new submission is distributed over the net.

Spotify serves quite a few purposes that can streamline promotional efforts on the web for artists. For instance, if I decided to release a new album, then I could upload the release on Spotify, get it copyrighted, any samples cleared, and start promoting the album via sharing it to Facebook, Twitter, vids via You Tube, and use the forums as an interactive review board for the tracks. Keep in mind Spotify pays only $0.0043 per play, so, other types of marketing will be necessary. The interesting thing on Spotify is the ability to market “leaked tracks” or “firestarter tracks” that lend themselves to build a following. Thus, Spotify can be used to get gigs, build tours, land interviews, and possible publishing/distribution deals to solidify more lucrative revenue streams via downloads, album sales, merchandise sold at venues, licensing opportunities, and more.

Some hail Spotify as the second coming, but I see it as just another tool or arrow in your online marketing quiver. It is very powerful as a sharing tool, but remember the times are circling back to the times of touring acts and bands. If you can find a way to be a touring act that never has to leave your home, then fine. But if you could do that then your garage would be large enough to sell enough tickets to make serious money. Until then, get on the road, get gigs, be willing to travel, and make money.

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Legal Corner: Interview with Entertainment Lawyer, Charles Blackmon


Interview with Charles Blackmon, Entertainment Legal Attorney


Hi Mr. Blackmon, I’ve already shared with you my plans to create an Entertainment Industry focused Business Plan/ Funds Raising company called B.E. nBusiness, and I have lined up a client looking to create a music production company in NC. My first question comes from them in reference to proper sample clearance. It doesn’t seem to matter if it is a drum break or royalty free cd with pre-recorded music; it all seems to need clearing if used to create something new. Radio play is the goal for many producers and clearing samples ahead of time seems to raise the asking price for a track when others are looking to purchase it.

What steps should a producer go through if they sample? Is there anything that doe not need clearance? Can a producer copyright material if they have a sample in the track, if it isn't cleared?

I know I just asked several questions, but please take me through the process because it is definitely a topic I will run into time and time again working with different clients based in intellectual property laws.

CHARLES BLACKMON’s RESPONSE:

Clarify the position on producers, which use 'samples' in their tracks; whether that's a pre-recorded loop or a drum break.

You are right; many producers use samples, which sometimes include drum breaks. Samples are portions of another song within a new song. A sample can either be taken from an actual sound recording or derivative of a sound recording.   A drum break, is a pattern of drum beats played as an instrumental during the break in a song and is often used as a "fill" in a song. Since the evolution of hip hop, producers to create a drum loop have used drum breaks.

The producer's first step to clear a sample is to identify who the owner/publisher is of the sampled work; one way of finding out such information is to check the jacket covers of the CDs. Second, a producer can contact the performing rights organizations (ASCAP, BMI, and SESAC) to obtain contact information on the writer/publisher. Thirdly, a producer can visit http://www.copyright.gov/ to conduct an online search of the Library of Congress' records; and fourthly, a producer can hire a sample clearance house to handle things.

If the musical work you seek to register with the copyright office embodies a "sample", copyright protection will not extend to the incorporated "sample" [the preexisting material]. The creative expression of the original work contributed by the author is independent of any copyright protection in the preexisting "sampled" material.  Therefore, you can seek copyright protection in a work that embodies a "sample", but the "sample" embodied in your work will not be copy written.

Disclaimer: The content of this article is only an opinion. Do not use the ideas outlined in this article as a substitute for legal counsel. 

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Music Industry Secrets Legal Corner Wrapup


Warner Music GroupImage via Wikipedia

Recently, in an article by Glenn Peoples for Billboard.biz he discussed the Warner Music Group buyout. The interesting key to his article was the understanding that it will be seemingly more difficult to figure out the financial solvency and track record for WMG moving forward. Similarly, crime bosses are notorious for laundering money through convoluted levels of money management. Subsequently, given the new ownership’s diversified money holdings, shareholders should be asking a lot of questions now or forever hold your peace. The wedding vows of steadfast shareholders (for better or for worse) will ring resoundingly in their minds for many years to come if something legally is not done in quick reaction to the outcry for more financial transparency. The problem is based on the fact that Access Industries is a privately held company. Many others and I believe that in a buyout of a company as financially tumultuous as WMG has been, the “private” part of any buyout partner should be stripped clean.


Image representing Viacom as depicted in Crunc...Image via CrunchBase

George Szalai wrote for Billboard.biz May 9, 2011 on the raise in average salaries for CEO’s of major companies and one in particular, CEO Philippe Dauman of Viacom. Philippe Dauman will be paid $84.3M as number one on the top 10 highest paid CEO’s. The interest I have in this number is the fact that a memom was handed out a few years ago stating the entertainment industry was on its knees. Although, I can state that Viacom in a bad economic downturn is doing relatively well in terms of financial strength through diversified holdings. Therefore, Viacom justifies its payout as a reward for holding the company afloat by Mr. Dauman at a time when they needed it most.


Sean Combs and his 2 of his children Justin an...Image via Wikipedia

Rounding off our legal article’s today has one from Erika Ramirez for Billboard.biz on May 17, 2011. Sadly, Nikki Minaj has left P. Diddy’s management group for that of “Hip Hop Since 1978” under the watchful eye of Kyambo Joshua. It should be noted that Young Money running mates Drake and Lil Wayne are already manage by Hip Hop Since 1978, so, this isn’t some shocking move by any means. This is a legally solidifying move for Young Money because now contractual obligation and negotiation can be done and managed to in a better unified fashion.




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U.S. Senate Introduces New Online Piracy Legislation

In an article May 12, 2011 by Georg Szalal for The Hollywood Reporter introduced legislation was depicted that would fight against websites offering pirated content. Senator Patrick Leahy of Vermont spoke on a bill targeting online piracy. The bill would expose movies, music, TV shows, and other copyrighted material or trademarked content.

The Act would bring under U.S. jurisdiction websites that exploit U.S. based Internet service providers, search engines, and ad placement services. The House of Representatives are also looking at creating a version of the bill.

In addition the National Music Publishers’ Association, the Independent Film & Television Alliance, and the National Association of Theatre Owners recently gave public acknowledgement and thanks to the recent Senate and House legislative move.

Consequently, there has been widespread support among unions, workers, and organizations involved in the production, sale, and distribution of creative media content for quite some time and now it is finally getting traction on Capitol Hill.

“To the camera crew, the makeup artists, the truck drivers and all the other hard-working middle-class Americans involved in the making of a motion picture or television show, digital theft means declining incomes, lost jobs and reduced health and retirement benefits for them and their families," said Michael O'Leary, executive VP, government affairs at the MPAA. "We look forward to working with the Senate Judiciary Committee and 
Senate Judiciary Committee confirmation hearin...Image via Wikipedia
in the House, chairman Lamar Smith and other leaders who are drafting their own bill to target rogue websites to ensure that the final legislation passed by both chambers and presented to the President provides adequate online protection of the American film and television community, an industry that supports 2.4 million American jobs."
Patrick Leahy speaks during the second day of ...Image via Wikipedia

Only time will tell if the legislation will in fact pass. Moreover, the bill in itself must be met with international compliance for it to have any far reaching success. Teeth added to the bill must be enforced and enforceable moving forward to win the growing fight of Internet piracy.


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Warner Music Group Buyout: The End or New Beginning


Warner Music Group Corp. and Access Industries announced the execution of a merger where Access Industries will buy WMG in an all-cash transaction for $3.3 billion! The purchase includes WMG’s entire recorded music and music publishing companies.
The purchase price is said to give stockholders a 34.4% premium over the average share price of $6.14.
Under the terms of the merger WMG’s Board of Directors approved the transaction and recommended that WMG’s stockholders approve the transaction.  In addition to stockholder approval, the transaction is subject to customary closing and regulatory approvals.  It is anticipated that the transaction will be completed in the third calendar quarter of 2011. 
WMG’s Chairman and CEO, Edgar Bronfman, Jr., said, “We believe this transaction is an exceptional value-maximizing opportunity that serves the best interests of stockholders as well as the best interests of music fans, our recording artists and songwriters, and the wonderful people of this company.  We are delighted that Access will be the new steward of this outstanding business.  They are supportive of the company’s vision, growth strategy and artists, while bringing a fresh entrepreneurial perspective and expertise in technology and media.  Most importantly, Access supports Warner Music’s commitment to our recording artists and songwriters who are the foundation of our current and future success.”
Len Blavatnik, Chairman and founder of Access Industries, said, “I am excited to extend my longstanding involvement with Warner Music.  It is a great company with a strong heritage and home to many exceptional artists.  I look forward to working closely with the many talented people within the company.” 
Jorg Mohaupt, Head of Media at Access Industries, added, “The music industry is at an inflection point where digital adoption is rapidly gaining momentum.  Warner Music, as one of the most progressive forces in the music business, is well positioned to capture this opportunity for music creation and distribution.”
Warner Music GroupImage via Wikipedia
Scott Sperling, Presiding Director of WMG, said, “It has been our great pleasure working with the extraordinary team at Warner Music over these past seven years.  The company has managed to significantly increase market share and profitability during our ownership period and consistently outperformed even during a challenging period for the industry. Len Blavatnik and Access are likewise deeply committed to the music business and we know that we will be leaving the company in good hands.”
Warner Music Group became the only stand-alone music company to be publicly traded in the United States in May 2005.  With its broad roster of new stars and legendary artists, Warner Music Group is home to a collection of the best-known record labels in the music industry including Asylum, Atlantic, Cordless, East West, Elektra, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner Bros. and Word.  Warner Music International, a leading company in national and international repertoire, operates through numerous international affiliates and licensees in more than 50 countries.  Warner Music Group also includes Warner/Chappell Music, one of the world's leading music publishers, with a catalog of more than one million copyrights worldwide. 
Following the closing of the transaction, WMG will become a privately held company and its stock will no longer be traded on the New York Stock Exchange.  The company will retain the Warner Music Group name and will continue to operate out of its current facilities.  
Warner Bros. RecordsImage via Wikipedia
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