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Tim Land

on 17 February 2014

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Transcript of Funding

Music Economies
Music Universe
what it use to be....

Intellectual Property
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

IP serves three principal functions:

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

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.
CPDA 1988


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
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.
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
Record Company
Creative Commons
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 ?
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

Record Company

Distribution Company

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

Record Company

Distribution Company

Artist sells directly
Artist uses distribution direct
Record company does direct retail
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

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
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
Hardware - buddha machine, music box
Novelty formats: cassette , 8 track
Merchandise - general tat
Beyond physical....
Sell a service or experience

Personalised Gigs
Exclusive access
Bundled services
Bespoke physical
Artist Services
Futures Trends
Physical space
Hybrids ?
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.
DIY distibution
Indie distibution

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

simon renoylds article - The Guardian

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 ?
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
Augmented Reality
Augmented Audio
Geo Tagging Audio
Networked interactivity
Economics of live music
The future of the music industry ?

Reversal in recorded / live music economies

Alternative to online/digital experience

Live music becoming the focal point of an artist

Social impact of live music upon communities

Economy of access
Making money from live music

1000 venue capacity equation

Dedicated fan base - consistent giging

Logisitics and overheads

Indie route


Arts funding
Touring Logistics
Live performance technology

Performance tools
Innovative concepts

Audience interaction through technology

Collective performance networks
Create a wish list of potential gig /exhibition venues for your project.

What method would you use to develop live shows - DIY, Agent, Self prommotion

Describe or propose a technical solution for your live project or / and enhancement through innovative technology.
Presentation techniques

Present through blog

Use presentation tool - Powerpoint / Prezi

Have a narrative / structure
Overview of fund distribution
Arts Councils
Local Government
Lottery Funding
European Funding
British Council
Regional Arts centres
and Programmes
"The arts in England are funded through a wide variety of sources, which include earned income, Government subsidy, private donations and business sponsorship. Through this mixed economy, England occupies the middle ground between heavy dependence on the State - as in European countries such as France and Germany - and almost entire reliance on private investment, as in the USA."

European Cultural Foundation
"40% of graduates entering the arts are working unpaid"

"internships privilege those who can afford to work without being paid, who can rely on kindly relatives for free accommodation"

Guardian 2/3/10
Working in the Arts in the current economic climate
Networking is key
Be it working within Arts organisations
or being successful in application
Structural funds
Trans-national funds
Funding is big business
Most Arts organisations have dedicated funding officer
Funding services aggregate opportunities for fee
Training and seminars in application and bidding
Remember -
Funding needs to find recipients

Organisations need to to allocate their funds in order to fufill their own funding allocation
Riverfront Centre - Newport
Chapter Arts - Cardiff
Alnofini - Bristol
Etc. - UK
Artist in resident schemes:
Wales Arts International
Main distribuitor of funding

Seperate Bodies for England and Wales
Will support individual artists
The National Endowment for Science Technology and the Arts

Doesn't have a specific focus on music making but supports the tech around it:

Online music companies using technology innovation

Does have specific support for Films, Games and Fashion
Arts and business network
Is framed differently to endorsement and adverstising
but still has commercial explotation as an aspect
Redbull Accademy
Network to join arts projects with business funding

Has case studies on web site - useful source for partnering
Foundations and companies
operating under charity status
Princes Trust
Arts Communites
Organisations that offer space, support, education
Department for Culture, Media and Sport
Welcome Trust
Pharmaceuticals - they have money.....

Arts Awards that:

"stimulate interest, excitement and debate about biomedical science through the arts
* examine the social, cultural, and ethical impact of biomedical science"

Music and perception studies can make use of this
These aim to address economic imbalances in disadvantaged areas of the European Union and are provided direct to specific geographical locations in the EU.
The Trans-national Funds - to support co-operation projects or exchange activities
involving organisations or individuals from several EU countries
Recipients likely to be large adminitritive organisations
such as local Government and established charities
Many arts centres offer residential schemes
to support artists

This can include workshop and accomadation space
Creative Enterprise Toolkit
Funding Programmes
Identify potential funding opportunities for your work or programmes that may support an area of study

This research can be placed in your business portfolio as a means of revenue
What is funding ?
Public and non commercial funding

as opposed to
the commercial markets
The term marketing means to take to market therefore is concerned with ‘how to sell things’.

As the relationship between consumer and producer have built up marketing theory has extended to not just how to sell but what to make in the first place – what does the market want and how can we make them want it.

The cyclic qualities of demand and supply have become very much dominated by marketing theories and strategies.

The creative industries are very much part of this cycle as well.

In the music industry marketing tends to refer to the concepts used by business selling services or products. As musicians we tend to distance ourselves from this as we perceive ourselves as artists not driven by a market. The reality is that we are very much part of a economy in our artistic pursuits and art devoid of an economic model to support such endeavours are few and far between.
Major acts have the same marketing strategies applied to them as mainstream brands. They implicitly understand the consumer cycles and how to target their market. The artist themselves and their aesthetic qualities is sometimes less important as the machine of ‘what is new’

Most mainstream consumers would probably listen to a number of bands quite happily as long as they are being told ‘this is the next big thing’. This is part of a consumer behaviour pattern known as maximising – needing to know that what you are getting is the best available.

Powerful marketing campaigns reinforce this belief and carefully strategise releases to create the hype and attention necessary to launch major acts.
4 P's
* Product:
The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.

* Pricing:
This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention.

* Placement (or distribution):
Refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This third P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.

* Promotion:
This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company
Classic supply model
4 C's
Customer orientated model
The 4 P's reworded but to give more focus on the consumer. This demonstrates the way marketing has shifted from mass market to niche markets with the advent of online consumerism.
Focusing on consumer demands -
there are three ways of doing this:

Customer driven approach

Identifying market changes

Product innovation approach
Applied to music
The huge choice in available music
Particpatory way that new technology allows customer interaction
Shifts in cultural , political and economic cycles
The 20 year cycle in pop.
Reactions to main stream styles
Technology driven music (creation/distribution and consumption)
Computers / MIDI / MP3 / Web / Mobile
Customer Relationship Mangement
Originally a label for software tools it now generally describes a business strategy. Most often seen in online business with use of automation and organisation of sales activities.
See amazon / ebay / itunes - anything that knows what you've bought and what you might like to buy
Contemporary Marketing
Guerilla marketing:
Unusual tactics to cause attention. Also the use of sabotage and direct attack on competitors

Cause related marketing:
Using a good cause to associate your brand with socially desirable ends.

Viral Marketing:
Use of social media /networks to spread brands under the guise of content.

Releasing company news to imitate grassroots popularity

Stealth Marketing where consumers do not realise they are being marketed to
How could you describe your project in terms of the marketing mix?

Detail the 4 attribuites, what can they offer that is new or better ? Why would they appeal to a consumer?


Create a persona for you project - consider these aspects:

Age / Gender
Background (Home/ Work/Family/Life Style)
Needs Goals / Aspirations
Media Technology Usage Music? TV? Web? Print?
Marketing Mix
A technique used to develop products and understand buyers is personas.

Used by business and politics to identify a type of person that they may appeal to.

Detailed profile information is created by various techniques to build up a representation of the person.

This is often carried out for User Centered Design approaches - for creating software or other human computer interface products.
Tools are now everywhere

Big media still requires traditional pathways

Avoidance of spam and appropriate etiquette is key

Dialogic vs phatic communion - conveying information vs social grooming/tasks
Crowd Funding
Not public funding as such but public investment
Cases against crowd funding
Full transcript