Inside Record Labels

There is a lot of work involved with signing, recording, promoting, publicizing, and selling music. The following introduction to the way major labels and independent labels setup the business of music marketing is broken down by departments. As you will see, the larger record labels have the luxury of having many different departments and dozens of employees to carry out the many responsibilities involved in running a label. And, the smaller companies, that have the same work to do, have to be quite creative and energetic to get all that work done.


Major Label Departments
What are the key departments at a record label, and what are those departments responsible for? Let's take a look.

For starters, the CEO of a major label will generally oversee the business affairs of all the affiliated labels under their corporate umbrella. Each major label will have its own President who is responsible for all the label activities. For example, at Warner Brothers, there is a president for Warner Brothers Records, a president for Reprise Records, a president of Atlantic Records, etc.

Every department at a major label is usually run by a Senior Vice President, in charge of one of the following:
The Business Affairs Department takes care of label finances; bookkeeping, payroll, et al.
The Legal Department handles all contractual issues and other legal responsibilities.
The A&R (Artists and Repertoire) Department locates and signs new talent. They work with the artist in song selection, choice of producers, recording studio selection and they communicate with the label's Business Affairs Department to make sure all the paperwork and accounting issues involved with the actual recording of an act's record are setup properly. In short, The A&R Department can serve as a liaison between an artist and all the other departments at the label.
The Art Department supervises all product design jobs, (CD, Tape, Vinyl cover art etc), trade and consumer press advertising, retail sales posters and flats, and other needs of the print media.
The Marketing Department is responsible for creating the overall marketing plan for every record the label is releasing. They are also involved in coordinating all the promotion, publicity, and sales campaigns that the label is committed to.
The Publicity Department arranges for any feature stories, interviews, or record reviews in local and national newspapers, magazines, web-zines, as well as the broadcast opportunities for such coverage on radio stations and television. They may also co-ordinate any of these publicity opportunities with an artist's own Publicist.
The New Media Department produces and promotes the music videos for the label's artists that are shown on MTV, VHl, etc. This department also oversees some promotions and marketing opportunities on the Internet that use the audio and video technologies available from online hardware and software sites that support music..
The Artist Development Department usually oversees the career planning of artists signed to the label. This department coordinates a consistent marketing and promotion presence for an artist throughout their career with the record label. The Artist Development Department has changed over the last decade. Many labels no longer have such a department. Others have changed the name to Product Development and concentrate more on "breaking," or promoting artists quickly in order to try to speed up the return on their financial investment. The pressure to return a profit to shareholders has changed the face of the music business dramatically in recent years, so the emphasis has been more on Product Development, and securing a hit as fast as possible.
The Sales Department oversees all the retail activities of the label, and concentrates on building relationships with the key record store chains and other mass-market retailers. The Sales staff coordinate their efforts with the major label's distribution company, as well as communicating regularly with the Promotion and Publicity departments at the label.
The Label Liaison is the person who coordinates the business of the major label's distribution company with the needs of their parent record labels. Street dates, (the date that a new release goes on sale at music retailers), must be approved by the label's distribution company
The Promotion Department's primary goal is secure radio airplay for their company's new releases. These days that means not only traditional FM radio stations, but select Internet stations and satellite radio as well. Their ability to get songs played on the radio is central to the success of the whole company. The Promotion department is closely connected to and constantly communicating with other departments within the label to make sure that all strategies being used to market and sell an artist's record are working together properly. Soliciting videos to MTV, VH1 and other music oriented television networks and programs may also be the responsibility of this department. At some labels this job is a separate department, or part of the New Media department.
Every department at a record label plays an essential role in the success or failure of the company. They are team members, working together toward the goal of selling their records and CDs as one lean, mean machine.


Inside an Independent Record Label
Independent record labels come in all sizes and shapes. The large, well-funded indie labels are organized by departments much like the major label operations described above. The more money a label has the more they people they can hire to handle the various responsibilities of a label. Smaller, grass roots or garage labels organize the work of promoting, selling and publicizing their releases by wearing as many different hats as they can. These smaller labels have an awesome task marketing their records because there may be only two or three employees, including the label owner, doing the A&R scouting, calling radio stations about airplay, working with a distributor (if they even have one), checking with the music retailers, and coordinating the publicity and new new media efforts, as well as dealing directly with their artists and bands helping them find gigs and put tours together.

Running a record label is a very expensive and time-consuming job. One of reasons so few independent labels succeed is related to the issues I have just outlined. It takes a lot of money, and a lot of time to operate a legitimate record label. The more research and planning a young label does before jumping into the world of music marketing, the higher the likelihood that they will survive, and perhaps even prosper in a very competitive business.

Media executives see digital revenues on the rise

About 94 percent of media executives polled say they expect an increase in digital revenues this year, according to a survey of media and communications executives by KPMG.

More than a third of those media executives believe that their digital revenues will increase more than 10 percent. About three-quarters believe overall revenues — both digital and traditional combined — will be higher a year from now. That’s more optimism than in the past from executives who have seen their traditional media businesses eroded by the internet. In the past, media executives have seen an unrelenting decline of their businesses because the digital side of the business was so small.

The 94 percent expecting an increase in digital revenue compares to just 83 percent in 2010. About 37 percent expect their companies to grow digital revenues by over 10 percent, compared to 31 percent in the 2010 survey.

The survey results come from the annual Communications and Media Industry Business Climate Survey by KPMG, the audit, tax, and advisory firm. Companies interviewed include newspapers, magazines, internet publications, cable TV companies, and other media and communications firms.

The respondents this year said that the important drivers for their revenue growth over the next three years are increasing broadband access speeds, new distribution methods, social media platforms and online advertising. The toughest challenges are maximizing digital media revenue growth, managing subscriber growth, and managing customer churn.

“It’s clear from our survey that communications and media executives are more optimistic and their companies are placing bets that now is the time to position and invest for growth, despite an uneven economic recovery,” said Paul Wissmann, KPMG’s National Sector Leader for Communications and Media.

In an interview, Wissmann said the survey did not focus on the erosion of traditional revenues for the media. But digital media such as tablet apps offer hope that traditional media can be competitive in the new era of competition.

The executives are investing in technology and products through both organic growth and deal making. About 21 percent of those surveyed see a 7 percent to 10 percent increase, compared to 15 percent in 2010. About 20 percent see a 4 percent to 6 percent gain.

Mobile commerce and other new convergences of business opportunities are expected to have the greatest positive impact on the business. About 47 percent expected a 1 percent to 5 percent growth rate for the industry in the next year, while 32 percent expect growth of 6 percent to 20 percent.

“Communications and media companies are sensing industry momentum that is the result of leaner organizations coming out of the recession, combined with the opportunity offered by the development of — and users’ rapid adoption of — innovation such as tablets, high-speed wireless access and social networking platforms,“ said Carl Geppert, KPMG’s national account leader for communications and media.

Social media is scoring high in strategy for media companies. In the survey, 43 percent ranked new distribution methods as the top business driver. About 37 percent said that online ads were in the top three drivers. And 75 percent said that cloud computing would have a slight to moderate transformational impact on their businesses in the next few years.

Seven of 10 executives believe their companies will be involved in a merger or acquisition during the next two years. About 58 percent will likely be a buyer and 10 percent will be a seller. The reasons include access to new tech and products, product synergies, and access to new geographic markets. Wissmann says that media companies feel a need to grab market share through deals or get left behind in the shift to digital services.

Some 47 percent of media companies expect their headcount to rise over the next year, lower than the 57 percent in the previous year. In fact, looking back, only 34 percent said they actually increased headcount in the past year. About 41 percent said they reduced headcount in the past year, while 23 percent said they expect to cut headcount in the next year. About 22 percent said their headcount has reached pre-recession levels, while 35 percent said their headcount would return to pre-recession levels over the next 30 months. And 34 percent said headcount would never return to those levels.

Some two-thirds expect the U.S. economy to improve within the next year, but they believe a full national economic recovery has been pushed out until 2013. Last year, respondents said the recovery would take hold by 2012. The survey was conducted from May to June and it includes responses from 101 executives at communications and media companies. About 66 percent are from companies with revenues exceeding $1 billion, and 34 percent are from companies with revenues in the $100 million to $1 billion range.

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Website Design for Musicians

It would be wise for any musician to take full advantage of the promotional and marketing power that the internet can have, and in order to do this, you need a website. True, you can have MySpace accounts and pages on other similar sites, but there is something more legitimate and professional about having your own site. This article will show how any musician can design their own website to feature, promote, and even sell their music.

The first thing that you need for a music website is a domain name, provided that you already have some hosting to put it on. It would be a good idea to try and get a domain name that is, or is close to your own name, or whatever name you or your musical group go by. This will help with search engine rankings later on.

Once you have a domain to locate the site, you will need some sort of content management system. The days of putting together websites one page at a time are over, now there are free software programs like WordPress that will allow you to create professional looking websites that can be updated easily even by people who are not familiar with website design.

A WordPress setup will let you choose the name of your site, and again, it should be the name of your musical group or your name as a musician. You want people to be able to search for your name on an engine and find you as one of the first results, and this will help with that.

There should be plenty of themes you can choose from for the look of your site, and with some modification, you can have one that is basically unique. You should try to modify it a little bit because that will make it look more professional.

The most important thing on a music website will be to have samples of your music in an easy to access part of the site. You want people to be able to listen to your music right away, as that is what they are there for. As a secondary feature, you can add in all the text and pictures you want to complete the information available about you.

These days, having your own website is easier than ever, and there is no reason not to have one if you are a musician. They are the best way to promote yourself and they allow you access to the world music market. The internet should continue to connect musicians to their fans around the world and keep growing with time. Make sure that you are a part of it.

The Dark Secret on How to Sell Songs Online Part I

This is an article to familiarize everyone in the music business with the questions of how do I sell beats online, how do I sell songs, how do I make money with tracks, as well as how to sell instrumental songs. The music industry has changed greatly since the explosion of the internet. Power is now in the hands of individual producers and bands to make a living with their songs with a little hustle, know how, and a plan. We need to take a look about how companies work in order to formulate an approach to garner the attention of decision makers. This will be the first in a series of articles to get you on your way.

Before a band can be signed to a major label, they must be discovered. This means companies are looking for something at the time which is usually based on current needs. The process may take place with a scout or an intern, which I have done, and will present an A&R with a demo after viewing a live show. Now before the A&R heads to the show they will do a little legwork about the possible band. If he likes what he sees, he takes this project back to his department and staff for approval and to contract the band when all agree.

The way you look at a Major Record Label is like a Big corporate bank or loan shark. They are corporate minded and corporate motivated. It is not like the days of Motown, when talent was hard to find and a real possible band or song was a diamond in the rough. They would put all their money and heart into developing a band maybe even selling the house. These days, record companies want to see that you are drawing money. Better yet, they want to know that you are already making money selling cd’s or selling tickets to shows. They want to see a possible business partner already in action. This is the way Rocafella records or Cash Money Millionaires started. They were already a working team unit hustling hard and making money long before they caught interest from a label. Record companies want to tap into possible businesses. If signed, they may furnish you with a budget to record an album or cover your overhead, but this is not free money. You will pay this back out of your royalties. It is very possible to go platinum and still owe the record company money after costs for for music videos, promotion and marketing, buybacks and freebies, and recording cost and advances are recouped. On the other hand, if you are an independent label working out of your garage or basement selling only 10,000 CD’s, that is is $100,000 in your pocket. Not bad and not hard to do and you can now quit your day job cause you are making more than your average physician or attorney for doing something you like.

In order to sell songs online publicity is still rule #1

When deciding to sell songs online you must still maintain and off line approach to getting publicity. You must still be out there getting your songs heard by sewing up your home town. These are the people who know you and are closely familiar with you. Classmates, church members, and community organizations and activities are the way to start building your fan base. Become a hometown hero first to look for your major support, and then branch out from there. Enter as many contests, talent shows, and parties that you can to hone your craft. If you can not do this, then do not think you will have it all of a sudden and step on stage at Madison Square Garden, because it won’t happen. You must video tape yourself and see how you look on stage to fix your show and compare your show to what you see on real live shows of major bands with charisma. Overcoming these fears early is a major step toward your career path. Attend open mics, jam sessions, and wherever else you can find the opportunity to be heard, and there you will find the first people to sell songs to.

Establish a following to sell songs to rule #2

Getting fans on your own is an important part. Major record companies like to pick a band and artist who have already establish a following. This does not just mean having a Myspace with 20,000 friends, but having true fans. These are the ones who support you, comment on your songs and raise you up by talking about you and spreading the word. Word of mouth is still the best form of viral promotion. Create or do something that gets people talking. Set up parties do an open mic, collaborate with a non profit and start to build an email list of possible fans to let them know what is going on with your songs.

Give away freebies in order to sell songs online #3

To sell songs, even the major record companies give away thousands of cds in order to sell millions.

In order for you to get recognized by a label you have to treat yourself with discipline like a label or business. You must be out there performing to be seen, working your craft, and laying down the foundation to build a fan base. Just because a record label signs you does not mean fans magically appear. They will never do this. People are grinding for years before you ever see them in the spotlight

Ads On Youtube Videos

YouTube has been the premier video site on the web for some time now. Other sites may compete with its quality or special features, but no one can match its user base and traffic, which make it the most profitable video site to be a part of. One of the reasons that YouTube is so great, is that they look for ways to let video producers make money off their uploads, and this includes letting the owners of commercial music videos profit from them. Although some people see it as a bad thing that YouTube is trying to legitimatize the online music video business, it will be a benefit to everyone in the long run.

Advertisements in general get a bad rap. People see them as annoying and unnecessary, and they sometimes are, no doubt, but well targeted ads can be both enjoyable and necessary. Advertisements are how people are alerted to the existence of products that they may need or want. More importantly, they allow for many great products and services to be completely free to the consumer, and this includes sites like YouTube and the video content found within.

If you cannot deal with advertisements, the only other option is to deal with actually paying money instead. True, there are illegal methods of getting things online, just as many music videos were illegally uploaded to YouTube and provided for free, but this is a short term gain which usually translates into a long term loss.

If sites like YouTube are forced into banning copyrighted content because the makers of it are not profiting, this helps no one. Just like how torrent sites and the early file sharing sites were shut down eventually, video sites may be shut down if too many lawsuits are filed against them. If advertisements are a way of getting copyrighted content like music videos and films online without having to pay, this benefits everyone.

Makers of music videos and films will not be able to continue to make their products if they are making no money from them. Advertisements allow them to make money while keeping it so viewers everywhere can watch their content without paying. Its essential to the internet that most information be free because most people would not want to deal with paying money to a site to be able to view it.

Music videos with advertisements on YouTube will create a situation where it can be profitable to make them, even beyond the promotional benefits. Anytime you have a profitable product, you will have more competition to produce it and higher quality results over time. For the good of future musical content, viewers should want video producers to profit from their work.

The more that YouTube enables producers of content to profit, the more high quality content will be produced. It benefits everyone for music video makers to profit, and YouTube should put as many commercials on their site as they need to while still maintaining a pleasant experience for the viewer.

Musical Opportunity in New Digital Media

Something very beneficial to all composers and makers of music has been going on as of late. The combination of the internet and decreasing costs of producing various forms of digital media has given rise to whole new areas of demand for music. This is obviously a good thing for the people who make it, but it does not necessarily mean that they will be able to find work and make a living by their art all of the sudden.

New art forms like web videos, visual music, video comics, flash animations, and so on all need music to complete their effects. Composers and producers should be able to step in and fill this void, but there are a few things working against them along with all of these benefits.

One major point is that as it has become more practical to make high quality music on your own, the number of musicians out there has also risen. This means that composers who want to get their music in films or videos face more competition.

It is also a challenge for those composers to become known to the people who need the music. With so many people producing so many types of media, making the right connections can be daunting.

Sites such as thing one can help with these facts, and over time, it should become easier to deal with these problems. In the general sense, it cannot be seen as a bad thing that there is so much more demand for music out there, and more ways of fulfilling that demand should appear.

As things progress, video content and other forms of media that make their way online with continue to require music, this means that composers may find themselves more and more in need if they can master some basic marketing techniques and make their name stand out enough to be seen.