MusicDish e-Journal - June 23, 2018
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Digital Music Forum East: The State Of Your Digital Union
The music industry is basically treading water against a mighty current and progressively being swept away
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2009-03-02
Comment | Email | Print | RSS

I recently had the opportunity to attend a portion of the Digital Music Forum East event last week, which was sort of a brainstorming pow-wow for music industry honchos who debated the best way to orchestrate a return to the industry's heyday (or at the very least stop the hemorrhaging they are currently experiencing).


SoundCloud Founder Alexander Ljung
In addition to the usual luminaries and speakers I'm sure you've all heard from at some conference podium, there were several notable German delegates at the conference, including SoundCloud Founder Alexander Ljung, Musicload's Joachim Franz, and Songbeat Founder Marco Rydmann who has been entangled in a lawsuit with Warner Music. Look for more information these gentlemen in upcoming issues...

Plus ca change, plus c'est la meme chose (The more things change, the more they stay the same)

Much of the talk today is the 'perceived' growing dominance of the internet in developing artists and selling music, whether it be the indie download-only album or a belated embrace by major labels. So the acknowledgment of the continuing and very 'real world' dominance by traditional media was perhaps one of the most surprising fact shared during the conference.

NDP Group's Russ Crupnick provided some statistics that would probably raise a few eyebrows, such as:
* 66% of music purchasers only buy CDs
* There are 20 million fewer CD buyers today than in 2006; and the majority of them have not shifted to digital alternatives such as downloads or subscriptions
* Broadcast radio is still the leading music discovery source, second only to TV

Though digital sales have been increasing in recent years, it's simply not enough to plug the hole left by declining CD sales. The music industry is basically treading water against a mighty current and progressively being swept away. Unfortunately, there are no indications that digital music will start picking up the slack anytime soon.

Initially, the problem was that there were no legal retail solutions. Then, it was the lack of broadband impeding the industry's growth potential, followed by the proclamation of all things mobile being the holy grail. But despite iTunes/Amazon/Napster/..., near-ubiquitous broadband wireless access through easy-to-use devices (iPod/iPhone), widespread adoption of DRM-free offerings and lots of apparent fan enthusiasm, the truth is that there hasn't been that much progress in recent years.

Forget 360 deal, Demand the "365 deal"

No conference these days would be complete without the '360 Deal' panel and Digital Music Forum was no exception. And largely due to the audience, the talk revolved around Bacardi & Groove Armada, Live Nation and deals around other established artists/brands. Not much on the emerging/indie artists, which should be of no surprise.

Of course, nearly any deal today is referred to as a 360 deal. So for the sake of this article, let's call it a deal where the label acquires control of the artist's work as well as a share in all revenue channels in exchange for all-in-one artist support under one roof.

Kelli Richards
So while Live Nation's deals with Madonna, Shakira, Jay-Z and Nickleback would be considered 360 deals, the Bacardi & Groove Armada is actually an example of the opposite -- what Kelli Richards of The All Access Group referred to as 'collapsed copyright.'

"Collapsed copyright means artists finance their own recordings, then license them for distribution, something that's been going on for years," notes Christopher Taylor Jones in SOCAN's Words & Music, referring to Nettwerk Music Group adoption of the model. "What's new about the formula is that if the artist/writer also owns the copyrights of the songs, the management company - in this case, Nettwerk - is then free to direct all aspects of music sales, licensing, marketing, promotion, even royalty administration."

Taking the Bacardi & Groove Armada case, while Bacardi would underwrite and release Groove Armada's EP, the duo will retain all rights to the works, with Bacardi having the option of licensing any tracks for their global ad campaigns. In a new twist, Groove Armada is paid a salary during the one year partnership. As such, the deal should really be called a marketing partnership of equals as opposed to a 360 deal. And by retaining complete control of their music, they are likely to benefit mightily from the exposure provided by Bacardi and opportunities for subsequent deals.

The fact is that it's pretty ridiculous to even speak of '360 deals.' The consensus among all of the panelists of "The Pros and Cons of 360 Deals" was that there is no template 360 deal. Each deal is taken on a case-by-case basis, thus the reference to 90, 180 or 270 degree deals. In the end, it depends on both what the artist and label can bring to the table.

Having said that, listening to Syd Schwartz (EMI) and Jeremy Welt (Warner Bros. Records) give their views in "The State of the Digital Union" should give one some hope as to changing attitudes within the major labels. I mean, these guys actually get it. To hear Syd speak of EMI as a music service company, disaggregating the 360 deal into an a-la-carte offering where artist/management could choose the areas in which the label is involved, is almost inspiring!

But perhaps the best quip came from Jeremy who explained that a 360 deal really meant a 365 deal... working closely with artist/management 365 days of the year, utilizing any and all available means to do what's necessary to achieve success.

Related News from Mi2N:
» Progressive Digital Music Start Ups Featured At Digital Music Forum East


Home » Insider Scoop » Digital Music Forum East: The State Of Your Digital Union
Permalink:http://www.musicdish.com/mag/?id=12352
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

Insider Scoop

» CISAC 2018 Annual Report

» Pop Artist Ava King Releases New Single

» Puma Unveils Drum Machine Inspired Sneaker

» Is Podcasting the New Radio?

» Streaming & Listening Diversity - Spotify Case Study

Insider Scoop Directory



» [2018-06-23] The 2018 MIDEM Silk Road International Music Alliance Signing; International Music Industries Signing Of A Mutual Resource Sharing Agreement With Shanghai Conservatory Of Music & The China Records Group

» [2018-06-06] Screen Music Connect To Explore The Music Of Film, Television And Interactive Media; Created By James Hannigan, Award-winning Composer And Game Music Connect Co-founder, Screen Music Connect Builds On The Success Of The Sold-out Game Music Conferences

» [2018-06-05] Fred Casimir To Develop BMG's Global Recordings Business; As Well As Building BMG's European Infrastructure, Casimir Was Instrumental In Developing BMG's Recordings Business

» [2018-06-03] 13 Music Label Sold To MTN; DSN Music Spins Off Record Label To Albuquerque Music Entrepreneur's New Group

» [2018-06-02] CISAC 2018 Annual Report; A Comprehensive Overview Of The Confederation's Work To Serve 4 Million Creators And 239 Authors Societies Across The World

» [2018-06-02] MusicDish Announces A Love Electric 2018 China Tour; The Tour Will Crisscross Through China With 12 Shows In 8 Cities, Including Guangzhou, Dongguan, Zhuhai, Shenzhen, Kunming, Jiaxin, Wuhan And Beijing

» [2018-06-02] Darcus Beese Named President Of Island Records; Renowned U.K. Music Executive To Join Universal Music Group's U.S. Label Leadership

» [2018-05-17] Avant-Garde Label Maybe Noise Launches In Beijing; The Official Launch Will Be On May 26 At Magnet Theater With A Performance Supporting Its First Vinyl Release: Png Z

» [2018-05-04] Award-Winning Lithuanian Rock Band Colours Of Bubbles "She Is The Darkness" 2018 China Tour; The Tour Will Kickoff In Shanghai Where The Band Will Represent Lithuania During The Country's Signing To The Silk Road Music Alliance

» [2018-05-01] Hollywood Heavyweights Launch New Christian Music Label; Their Debut Release, Firma Collective - Songs For Every Soul, Was Produced By Mgrdichian And Mixed By The Legendary Brian Reeves

» [2018-04-30] Pop Artist Ava King Releases New Single; Paris-born Ava King Decided To Move To Beijing Where She Wrote For One Of The Biggest Chinese Movie Production Companies, HuaYi Brothers

» [2018-04-27] NetEase Cloud Music Sign Distribution Partnership With B2 Music; Chinese Music Streaming Service To Release Billboard "Best Of Asia" Album Series
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

BWH Music Group Releases Hottest Album Of The Summer

Cinq Music Appoints Marcus Spence SVP Of A&R

Hybrid Studios Hosts Student Field Trip Day

Australian DJ Duo NERVO Enter Sports Arena With Unique Volleyball Partnership

2018 Summer Additions Come To Hybrid Studios

Plunky's "Love Makes Us Better" Video Is Cosmic Jazz-Funk

Deadline Looms - The 23rd Annual USA Songwriting Competition



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2018 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships