Music Economies
Music Universe
what it use to be....
Intellectual Property
History
Copyright act 1709

Droit 'd Auteur

Berne Convention 1886

UK Copyright, Design and Patents Act 1988
“for the encouragement of learned men to compose and write useful books”.
Property Rights
Moral rights
It has been amended in the light of technological developments, as a result of European Community Directives designed to harmonise copyright laws within the EC and, more recently, as a result of the Gowers Review.  

 Music Copyright
Recorded Song

Composition

Recording
Performer
Owner
Authors
Lyrics
ownership
ownership
WHY DO WE NEED INTELLECTUAL PROPERTY

IP serves three principal functions: 

To incentivise knowledge (and hence wealth) creation; 
To accumulate knowledge in a culture; 
To protect a distinctive identity. 


KNOWLEDGE vs PHYSICAL PROPERTY

Knowledge is inherently non-rivalrous. That means one person’s possession, use and enjoyment  is not diminished by another’s possession, use and enjoyment.

By contrast, physical property  is typically rivalrous, with one person’s consumption preventing simultaneous consumption by another. 

Privatising property gives rights over it to a legal individual, creating a legal barrier which prevents others from accessing it.

IP confers a set of time-limited legal rights over the expression and use of certain ideas. 

Although the knowledge protected by the IP remains non-rivalrous, the legal force of IP rights prevents others from using it.
COPYRIGHT
Task
CPDA 1988

http://www.opsi.gov.uk/acts/acts1988/UKpga_19880048_en_1.htm

Q. What are the acts restricted by copyright? 
(Section 16)

Q. What is a Licensing body? 
(Section 116 - 117)

Q. What can they grant?

Q. What types of work can be copyrighted ? (In relation to music)
(Section 1)

Q. Who is legally the author in the case of a sound recording?
(Section 9)

Q. What is the length of copyright for a sound recording?
(Section 13)

Q. The length of copyright for musical composition 


related rights
70 years from death
70 years from recording
The Internet and copyright
Copying
Creative Commons
Digital Economy Bill

Tackling online infringement of copyright by:

    * placing obligations on Internet Service Providers to work with rights holders and, if necessary, to take technical measures against infringing subscribers

3 Strikes out policy

    * giving the Secretary of State the power to change copyright legislation to make it easier to protect copyright, as behaviour and technology develops.

Cultural ownership

"For centuries people have been speaking of talent and inspiration as gifts...this language must extend to the products of talent and inspiration too. Unlike a commodity, whose value begins to decline the moment it changes hands, an artwork gains in value from the act of being circulated—published, shown, written about, passed from generation to generation — from being, at its core, an offering."
• International music industry group the IFPI estimates that in 2009 "physical" music sales (CDs etc) were $11.6bn (£7.1bn), with digital sales of $4.2bn, making total sales $15.8bn.

• Compared with 2008, physical music sales declined 16%. Digital sales grew by 12%, but that was down sharply on 25% growth in 2008. The overall market declined 10%.

• The IFPI's digital music report says download sales of single tracks increased by an estimated 10% in 2009, to more than 1.5bn units. Digital albums grew by an estimated 20%. The best-selling track of 2009 was Poker Face by Lady Gaga, shifting a total of 9.8m units.

• Digital sales have grown by 940% since 2004, but the total music market fell by about 30% in that period.
Task
mapping exercise - using Prezi / mapping software / graphical representation

map what you currently use in terms of a music universe (in terms of potential revenue)

then create a second map and add what you think you will need to secure income for your project

new models

List some alternatives to revenue generation other than recording / licensing
Give examples if possible


Section 16
Q. What are the acts restricted by copyright? 

A. To copy/to perform in public/to broadcast

Section 116 - 117 – licence granted to agents – collection societies
Q. What is a Licensing body? 

A. An agent or collection agency such as PRS /MCPS/ PPL

Q. What can they grant?

A.  Authorise the acts restricted by copyright

Section 1
Q. What types of work can be copyrighted ? (In relation to music)

A  Musical / Dramatic / Sound recording / Broadcast.

Section 9 - Authorship
Q. Who is legally the author in the case of a sound recording?

A. Sound recording copyright relates to those who made the arrangements necessary to make the recording

Section 13 – Duration
Q. What is the length of copyright for a sound recording?

A. 50 years recently (last year) increased to 70 years through an EU directive

Q. The length of copyright for musical composition 

A. 70 years. The term starts from the point of death of the author.

Collection Agencies
Royalty and licence flow
PRS
Composer
Publisher
50%
50%
50%
PPL
Record Company
Performers

50%
50%
http://www.prsformusic.com/creators/membership/MCPSroyalties/mcpsroyaltysources/musicaudioproducts/Pages/musicaudioproducts.aspx
Publishing
Creative Commons
Task
List and map the relevant collection agencies for current and potential projects.

Bookmark  links
Apply if already appropriate
Do you fufill the joining criteria ?

Where do you imagine your music being played and therefore generating licenses from ?

http://www.ppluk.com/
http://www.prsformusic.com
http://www.creativecommons.org./about/licenses/
TASK
Choose a CC license that best suits your work currently.

Use the web code to embed into your reserach site
Contract Examples
Administration Deal

Single Song Assignment

Record Deals
Licensing Agreements

Single song / title agreements
Library Music deals
Record label deal or self release ?
Record Label deal
Self Release
Profile of label /Rosta
Benefits of promotion and marketing
Administration - PPL - MCPS
Can concentrate on artistic work
Distribution network - Retail featuring


Greater potential income
Royalty tracking and accounting
Rosta/genre development
Greater artistic control
Publishing deals harder to come by

Artist / Producers who write are more 
       favourable than pure song writers

Self Publishing now easier than ever


Basic Publishing split

Generally between 70 -80% 
in favour of writer

Split of Performance fees 
can vary 

List all the possible retail platforms and outlets that could sell your music

Investigate the appropriate distribution channels for these retail platforms

What other forms of experience/service/product/artifact could be generated by and through your music
Retail & Distribution
Traditional Model
Artist

Record Company

Distribution Company

Retail


Majors had own distribution arm
Indpendents would use specialist companies
Current Models
Artist

              Record Company

Distribution Company

                                        Retail


Artist sells directly
Artist uses distribution direct
Record company does direct retail
Digital
Physical
Genre specific distributors tend to have own digi delivery
Large aggregators not useful for small labels
Non editorial aggregators easily accessible
Charge for a normal distributor 15%
Flat fee for non editorial 

Download vs Streaming

DISTRIBUTION
Editorial

Non Editorial
Traditional type distribution
Sells on basis of potential
Marketing relationship with retail
Will take anything
Charges flat fees rather than %
No marketing relationship with retail
very few remaining
wont take on anything other than sure seller
one off releases rare - need to have rep
Typical charge  28%
Pressing & Distribution Deals
500 vinyl units break even
CD break even can be much lower 

Spotify
We7
Pandora
Itunes
Amazon
Boutique stores
The 'new' physical
Physical can work for:

Dedicated fan base
Format collectors
Statement of brand

Sell something else with the music 
T- shirts
Art
Hardware - buddha machine, music box
Novelty formats: cassette , 8 track
Merchandise - general tat

Beyond physical....
Sell a service or experience

Personalised Gigs
Exclusive access

RETAIL
Bundled services 
Streaming 
Bespoke physical
Artist Services
Apps


Futures Trends

Platforms
Online
Physical space
Hybrids ?  
APPS
The new album ?
    * Remix apps
    * Artist access
    * Instruments – simulation
    * Production tools  – Writing tools /Recording tools/instructional
    * Generative
    * Augmented/reactive
    * Music services
    * Radio feeds /interaction

Various platforms now offer pages /scenes within a app that allows for non-bespoke  artist apps (iLike) and small developer access (RjDj).

Other business models include MXP4 as a new segmented audio file for interactive and meta data purposes.


http://www.dittomusic.com/
http://www.spotify.com/en/work-with-us/labels-and-artists/artist-aggregators/
http://www.tunecore.com/
DIY distibution
Indie distibution
http://www.kudos-digital.co.uk/
http://www.pias.com/uk/
http://www.cargorecords.co.uk/contact
Services:
http://vimeo.com/9579602

Reverb Nation / Tunecore / music glue
How user generated content is being monetorised:

simon renoylds article - The Guardian
http://www.guardian.co.uk/music/musicblog/2009/dec/07/musically-fragmented-decade

musically fragmented decade - more music - harder to collate popularity as more and more fragmentation - driven by web based tools and more access to promotion and release

have we lost the filtering service of the previous physical music industry ?
Manufacture
Self Manufacture:
* Go direct to pressing plant - better for regular bulk
* More aspects to organise - transport - printing of artwork

P&D Deal
* All aspects of manufacture process taken care of
* Unlikely to make profit
TASK
Augmented Reality
Augmented Audio
Geo Tagging Audio
Networked interactivity