BELMONT UNIVERSITY (Update 08/19/08)

MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS

COURSE SYLLABUS

Course Title: Survey of Music Business / Section: 04

Semester: fall 08

Instructor: Dr. Wacholtz

Instructor Contact: Office: Room 224 (MBC) Phone 460-5437

Instructor Office Hours: Monday, Wednesday, Friday-10am-11pm-Tuesday 11am-12:30.

Course Credit: 3 Hrs.

Class Meeting Times: MC 200b MWF @ 2pm

Final Exam: Monday, December, 15 at 2pm http://www.belmont.edu/registrar/final_exam_schedules/index.html

Course Description: This course is a general overview and a study of the major functional areas of the music business. Attention is given to the theoretical foundations and practical application of current business practices in the music industry including supporting organizations and the revenue flow from music consumer to creator. (www.belmont.edu/catalog/undergrad2007jun/cemb/courses.html)

Course Outcomes: At the end of this course, the student will be able to:

· Identify the process and key participants of how commercial value is created within the revenue systems/ecology of the music business system

· Identify and examine the foundations of copyright law and the representative licenses needed for the monetization of the music revenue streams

· Examine and identify the basic deal structures and terminology within the revenue systems/ecology of the music business system

· Apply basic calculations representative of the revenue systems/ecology of the music business system.

Performance Tasks (PT): During this course, the student will:

1. Identify and diagram the basic music business revenue streams and relationships

2. Identify typical agreements, personnel, and terminology used within the music business

3. Define applicable copyright law within the music business

4. Compute calculations pertaining to studio production budgets, record royalty payments, concert promotion, and basic publishing/songwriter shares, and mechanical royalty calculations under the statutory and controlled composition deductions

5. Compare and evaluate the possible effects of new technologies, Internet marketing, and other emerging trends on the existing revenue model

Assessment Tools:
During this course, outcome mastery will be evaluated by multiple-choice tests based on the lecture and all assigned readings. Additionally, a portion of each multiple-choice test will consist of diagramming and calculations presented in the multiple-choice format. Additionally, a short four page essay will be assigned to measure your comprehension, application and analysis of an approved topic that evaluates and compares the traditional value chain, or revenue flow with new emerging models, or a discussion of the value and implications of free versus compensated music.

Testing & Assignments:

*Activity*	*Credit*	*Purpose/Description*
1. Comprehensive Tests (5)	60%	Four chapter exams and one Final exam will be given. Exams primarily cover lecture and readings assigned. Each exam is scored for 100 points and is comprised of 50 or more questions consisting of multiple choice/essay/short answer/diagramming, or any combination thereof.
2. Research Paper/essay	10 %	A four page paper that will demonstrate the student’s assimilation of knowledge gained from original research, lectures, and assigned readings. Must be written in APA or MLA style using a minimum of 5 verifiable reference sources and 10-12 point font/single spaced.
3. Final Exam	30 %	A comprehensive test comprising multiple-choice questions that will measure the depth of the student’s knowledge base gained from lectures and readings. The final exam is typically 100 comprehensive questions (or more) in accordance with the final exam schedule at the assigned time and place—NO FINAL EXAM will be given at any earlier time.

***There are NO MAKE UP EXAMS for any tests! At the instructor’s discretion, students with a test absence will have the final exam count double, triple or more: depending on the number of missed exams. Exception are only made for official Belmont University Absences. There is NO policy for not taking the final exam for this class.

Research Paper: Each student will prepare a short four page research paper (11-12 point font—single space!) on an topic of interest present in written format and approved by instructor at least one month prior to final exam. The format is either APA, or MLA format at student’s discretion. Final paper is to due by “dead day”- before final exams start. Topics should relate to class discussion and overall MB model presented in class, but should narrow down to one aspect that might be covered in detail—per the student’s interest. Paper must cover or incorporate projected or actual effects of new emergent technologies on the topic presented as well as speculative solutions.

Optional Extra Credit: Industry Interview/industry paper: (5 total points added to final grade)

Interview: Student will interview an industry person of interest. Students must first prepare a short 2-3 page overview of the industry applicable of the interviewee prior to interview. Typical source is Billboard magazine or other trade periodicals. Expected questions of the interviewee are

1. Background

2. How they started/overview of industry/job

3. Describe daily job functions/what skill sets are most important for success

4. Advice for young person entering the industry right now

Paper should begin with overview of position/job type using lecture and book readings. Conclusion should reflect a summary and an application guide based on advice from interview. The content of the “pre-interview research should be integrated (and cited/footnoted) into the research as appropriate and relevant for a total of 2-3 pages (11-12 point font—single space). The interview should be recorded if possible—but ask for permission to record first. Extra credit paper is due on the “dead day”--the day before final exams begin. Full credit is NOT guaranteed for any submission. Paper must be at a high level of writing that is exampled by no 1) misspellings, 2) good argument/logic, 3) good development-paragraph structure (topic sentence & content flow), logic, and4) overall application to course content.

Course & Classroom Policies:

Attendance & Participation: Class attendance follows university policy as stated in the current Undergraduate Bulletin. Class participation is expected; attendance and absence will be noted. Belmont University is committed to the idea that regular class attendance is essential to successful scholastic achievement. When the number of absences for any reason exceeds four times the number of scheduled class meetings per week (25% of meetings during summer term), the student is involuntarily dropped from the course with a grade of “WF” – Belmont University Catalog. Class participation is expected; attendance and absence will be noted.

Grade Evaluation: As per CEMB policy, the grade assignment scale for this course is:

A=94, A=90, =B+87, B=84,B-=80, C+=77, C=74, C-=70, Final grades below 70 % will not apply to the major. D+=67, D=64, D-=60, F=< 60

Honor Code: It is the responsibility of each student to abide by the Belmont University Honor Code. “In affirmation of the Belmont University Statement of Values, I pledge that I will not give or receive aid during examinations; I will not give or receive false or impermissible aid in course work, in the preparation of reports, or in any other type of work that is to be used by the instructor as the basis of my grade; I will not engage in any form of academic fraud. Furthermore, I will uphold my responsibility to see to it that others abide by the spirit and letter of this Honor Pledge.”

Accommodation of Disabilities: In compliance with Section 504 of the Rehabilitation Act and the Americans with Disabilities Act, Belmont University will provide reasonable accommodation of all medically documented disabilities. If you have a disability and would like the university to provide reasonable accommodations of the disability during this course, please notify the Office of the Dean of Students located in Beaman Student Life Center (460-6407) as soon as possible.

Week to Week Content: TENTATIVE CLASS SCHEDULE (Subject to change). Occasionally, class may get behind or ahead of this schedule—and thus—dates may change accordingly.

wednesday- aug 27

Creative Systems-22

Songwriters-22

Vocalists-22

Musicians-23

Producers-23

Engineers-23

Songwriters-22

Vocalists-22

Musicians-23

Producers-23

Engineers-23

Friday- aug 29

Business Systems-24

Publishers-24

Recording Studios-24

Labels-24

Promotions-25

Publicists-25

Managers-26

Booking Agents-26

Promoters-26

Mass Media-26

Click Media-26 Click Media-26

Associated Career-26

Monday-September 1-Labor day holiday

Wednesday-September 3-

Types of Business-28

Sole Proprietorship-28

Partnerships-Joint Ventures-28

Corporations-28

Entrepreneurship-29

Revenue Streams-30

Songwriting/Music Publishing Revenue Stream-30

Record Label Revenue Stream-30

The Management /Touring Revenue Stream-31

Friday-September 5

Financials-32

Capturing emotions As Sellable Products-32

Launching the Products-32

Event Marketing-33

monday-September 8

The New Music Business-33

Summary-35

Study Guide-37

Wednesday-September 10

Copyrights-40

Historical Perspective-43

Statute of Anne-43

Friday-September 12

Constitution (Article1, Section 8)-45

Exclusive Rights-45

Reproduction-copies-45

Derivative Works-45

Distribution-45

Public Performance-45

Public Display-45

Digital Transmission (Audio-Public Performance by Digital Transmission)-45

Types of Copyright Ownership-45

Phonorecords-46

Sound Recordings-46

monday-September 15

Act of 1790-47

Act of 1831-47

Act of 1909-47

Act of 1976-48

Act of 1992-49

Act of 1993-49

Act of 1995-50

Act of 1997-50

The DMC-50

wednesday-September 17

Acts of 1998-50

Sonny Bono-51

Supreme Court Decision on Peer-to-Peer File Sharing-53

Act of 2004-54

Notice of Intention-54

Neighboring Rights-54

GENEVA (1)-55

GENEVA (2) (Phonograms Convention)-55

PARIS-55

BRUSSELS-55

THE BERNE CONVENTION-55

WIPO-56

Not Protected-56

Poor Man’s Copyright-57

Friday-September 19

A Work-For-Hire-57

Authorship-58

Fixation Process-58

Publication-58

The United States Copyright Office-59

Certificate of Registration-59

Registration Process-59

Electronic Registration-60

Collaboration Team-60

Co-Songwriting-61

Musical Arrangements-61

Sampling-61

Fair Use Rights-62

Compulsory Mechanical License-62

Recapturing Assigned Copyrights-62

Key Definitions 62

Summary-63

Study Guide Copyrights-66

Test One – Monday September 22

Wednesday-September- 24

review of test

Friday-September 26

The Song Business-72

Entertainment as Emotional Communication-73

Stimulus-Response Relationship-73

Cognition-73

Expression of Creativity-73

Construct Theory-73

Historical Perspective-76

Songwriting as a Profession-77

Pitching Songs to Publishers-78

Career Song-79

What to “Look For” in a Music Publisher-79

Professional Songwriting Organizations-80

What Publishers “Look For” in Songwriters-80

monday-September 29

Types of Publishers-81

Major Publishers-81

Independent Publishers-81

Specialty Publishers-81

Foreign Publishers-81

Vanity Publishers-81

Departments-82

Acquisitions-82

Legal-82

Administration-82

Royalty Department-82

Creative-82

The National Association of music publishers (NMPA)-81

Songcasting-83

wednesday-october-1

Splits and Shares-83

Value of Copyright Ownership-84

Business Equity of the Copyright-84

Single Song Contracts-85

Types of Deals-85

Work for Hire-85

Staff Writer-85

Co-Publishing-86

Sub-Publishing-87

Shark Deal-88

Certificate of Registration-88

Certificate of Recordation-88

Friday-october-3

Licenses-90

Mechanicals-90

Sync (Synchronization)-90

Blanket (Public Performance)-90

Print-90

Transcription-90

Artist Line-90

The Harry Fox Agency-90

Mechanical Licenses-91

Holds and First Use Rights-91

The Statutory Rate for the Mechanical Licenses-91

The controlled Composition Clause 91

the Compulsory License-92

Cover Tune Mechanicals Compulsory License-92

Foreign Mechanical Royalties-93

Indirect Royalty “Splits”-93

Recoupment-94

Memorandum Opinion On Ringtones-94

SoundScan-94

Sync (Synchronization) License-94

fall break monday-wednesday oct 6-8

friday-October-10

review of previous material

Monday-october 13

Performance Rights Organizations-95

ASCAP-95

BMI-95

SESAC-96

Affiliation/Membership-96

Blanket License-96

Blanket License Fees-97

Direct Payments-97

Collection Procedures-97

The Fairness in Music Licensing Act-98

In The Pipeline-98

Payment Rates and Schedules-98

Print License-98

Transcription License-98

Best Efforts-99

Wednesday-october-15

Termination of Contract-99

Reassignment Process-99

Single Song Contract Negotiation Points-100

Additional Terms-103

Summary-104

Study Guide-Music publishing-105

Test # 2 friday- october 17

monday-october 20

Review of test

wednesday-october-22

Mega Entertainment Industry-114

Historical Perspectives-114

Traditional Mega’s-114

Bertelsmann, AG-114

The Walt Disney Company-115

EMI Group, PLC-115

Sony Entertainment-116

TimeWarner-116

Vivendi/Universal-117

Mega Entertainment-Divisions-117

Media-Entertainment Distribution-118

News Corp-118

Comcast-119

Viacom-119

360-Music -Entertainment Corporations-119

LiveNation-119

Labels-120

Major Labels-120

Affiliate Labels-121

Independent Labels-121

Vanity labels-121

Specialty and Virtual Reality Labels-121

Promotion Branding Labels (PBL’s)-121

Friday-october-24

Important Historical Record Labels-121

Columbia Records-121

RCA Records-121

Capitol Records-121

Warner Bros. Records-122

Motown Records-122

A&M Records-122

Creative Business Milieu-123

Five Functions of Successful Labels-124

Find and Signing Talent-124

Creating Product-124

Distribution-124

Promotion-124

Publicity-124

What Artists look for in Labels-124

What Labels look for in Artists-125

Getting Noticed-125

Digital Discovery-126

Showcases-126

Pitch Memo-126

Deal Memo-126

monday-october-27

Types of Deals-127

The 360 Deal-127

Traditional Major Deals-128

Development Deals-128

Indie Label Deals-128

Vanity Label Deals-129

Shark Deals-129

Royalty Points and Packaging Fees-129

Recording Label-Recoupment-130

wednesday-october-29

Record Label-Breakeven Points-130

Record Label-Profits-130

Marketing Plans-131

Marketing Plans-Product Platforms-131

CD’s-131

Digital Downloads (P2P)-131

Marketing Plan-Price-131

Suggested Retail List Price-131

CD’s-Brick and Mortar Retail-131

Digital Downloads iTunes, etc.,)-132

Marketing Plan-Promotion-132

Radio-133

Marketing Plan-Promotion-Continued-133

Clear Channel-133

Cox Radio-134

NPR-134

Advertisment-134

Music Videos-134

Internet and Cell Phones-134

Marketing Plan-Publicity-134

Stories and Interviews-134

Appearances-134

Tour support-134

Internet and Cell Phones-135

Marketing Plan-Placement/Distribution-135

Traditional-135

One-Stops-135

Mass Merchandisers-135

Rack Jobbers-135

Record Clubs-135

Television-PI (Per Inquiry)-136

Digital Music Distribution-136

Internet Websites-136

Cell Phones-136

Satellite Direct Distribution-136

Top Retail Outlets-136

Friday-october-31

Digital Rights Management (DRM)-137

Synergy of Social Website Distribution-137

www.myspace.com-137

www.facebook.com-137

Synergy of Digital Distribution-Cell Phones-137

Apple’s iPhone-137

Rhapsody-137

Synergy of Legal & free digital distribution-137

www.Spiral Frog.com-137

www.qtrax.com-137

www.hulu.com-138

Label Administration-138

Chairperson of the Board or C.E.O.-138

President-138

Vice-Presidents-138

Administrators-138

Departments-139

The Legal Department-139

Personnel/Payroll/Royalty-139

Artists and Repertoire (A&R)-139

Development-140

Creative Development-140

Artist Development-140

Product Development-140

Marketing & Sales-140

Free Goods-140

Promotional Copies-140

Recording Industry Association of America (RIAA)-141

The International Federation of

the Phonographic Industry (IFPI)-141

Piracy-141

monday/wednesday-november 3-5

Sample Recording Contract-141

Exclusive Services-142

Term-142

Recording Commitment/Delivery-143

Recording Procedure-145

Grant of Rights-147

Marketing Restrictions-148

Advances-149

Recording Fund-149

Royalties-151

Accounting-153

Notices-154

Licenses for Musical Compositions-155

Events of Default-157

Injunctive Relief-158

Collective Bargaining Agreements-158

Warranties and Representatiions:Indemnities-159

Approvals-161

Videos-161

Marketing & Publicity-162

Group Provisions-163

Definitions-165

Assignment-168

Assignment of Publishing Interest in Recorded Songs-168

Merchandising-169

Confidentiality-169

Miscellaneous-170

Contract Terms-172

World Charting Companies-174

Summary-176

Study Guide-labels-178

Contract Study Points-185

Friday-november-7

Creating Magic-187

Recording Variables-187

The Recording Team-187

Type of Session-187

Stages of Sessions-187

The Recording Team-187

Producers-188

Independent-188

Label Staff-189

Major Artist Producer-189

Musicians-189

Garage/Jam Band Musicians-189

Working Musicians-189

Road and Event Musicians/Artists-189

Studio Musicians-189

Audio Engineers-191

Entry-Level-191

Second Engineers-191

Staff Engineers-191

Major Artist/Independent Engineers-192

Signal Flow-192

Basic Tracks/Tracking-192

Overdubbing-192

Mix-Down-192

Recording Artists-193

Royalty Artist-Studio-193

Virtuosos-193

BGV’s (Background Vocals)-193

monday-november-10

Types of Recording Studios-194

Master Studio-194

Project Studios-194

Demo Studios-194

Post-Production Studios-194

Computer Based Studios--194

Scheduling Sessions-194

Unions-194

The American Federation of Television and Radio Artist (AFTRA)-195

The American Federation of Musicians (AF of F)-195

Types of Sessions-195

Master-196

Low Budget-196

Limited Pressing-196

Demo-196

Non-Union-196

A.F. of M. Recording Scales -196

AFTRA Recording Scales-197

Non -Union Recording Sessions-199

wednesday–november-12

Stages of a Recording Session-199

Pre-Production-199

Basic Tracks-199

Overdubbing-200

Mixdown-200

Mastering-200

Recording Budget-201

The Recording Budget Chart-202

Production Budget-203

Promotion Budget-203

Publicity Budget-203

Friday-november- 14

BreakEven Point-203

Lowering the Cost of Production-204

Computer Based Recording Budget-204

Key Studio Terms and Equipment-205

Summary--211

Study Guide-The Recording Business-212

Test # 3 Monday-november 17

wednesday-november-19

review of test

Friday-november 21

Marketing Cultural Icons-222

Non-Label Artists-223

Fame-223

Image-224

Shameless Self-Promotion-224

Selecting a Manager-226

Types of Managers-226

Heavyweight/Heavy Hitter-226

Middlewieght-227

Lightweight-227

Selecting a Manager-227

monday-november-24

Management Duties-227

Non-Management Duties-228

Artist Management Relationship-228

Power of Attorney-228

Commissions-229

wednesday-november-26

Termination of contract-229

Management Team-229

Booking Agents-230

Talent Buyer-230

Attorneys-230

Business Financial Managers-230

Road Managers-231

Stage Manager-231

Promotion-Artist Perspective-232

Publicity-Artist Perspective-232

Public relations-232

thanksgiving vacation break november 27-28

monday-december-1

review of previous material

wednesday-december-3

Electronic Press Kits and Bio’s-233

TV Appearances-233

Publicity Budgets-233

Stage Names-234

Tour Support-234

Promoters-235

Selecting a Promoter-236

Selecting an Act-236

Tour Question-236

Bid Sheets-237

bid Sheet Example-238

Types of Concert Promotion/Artist Deals-239

Straight Guarantee-239

Guarantee Plus a Percentage of the Net (Gate)-239

Guarantee Versus a Percentage of the Net-239

Guarantee Plus a Bonus-239

Concert Promotion Process-239

Virtual Corporations-240

Deposits-240

Profit Margins-240

Guarantees and Splits-240

Sponsoring Radio Station-241

Risky Business-241

Merchandise-241

Rider-241

IATSE-242

Roadies-242

Friday-december-5

TicketMaster-242

Serious Music Market-242

PollStar & SoundScan-243

BillBoard Magazine-243

PREDICTING CHANGE-243

CREATIVE DESTRUCTION-245

A Business Perspective-245

The New Music Industry-245

New Business Models-246

Music as a public utility-246

Free Music-246

Artist as Free Agents-246

360 Entertainment Corporations-246

ARTIST MANAGEMENT-CONTRACT TERMS-247

MANAGEMENT-CONCERT PROMOTION TERMS-249

SUMMARY-250

Study Guide- 253

test # 4 monday december-7

final exam week december 10-17