CNBC runs a show called Biography, which highlights business geniuses such as Bill Gates, McDonald's, Marriott... On my way home for the holidays I was searching the TV late at night trying to find something on and I came across Biography when it was featuring Richard Branson.
Branson created Virgin Records among many other businesses. He has a great inspirational story about overcoming naysayers and at the end of the day "just making it happen".
If you didn't know the full story on Branson I do suggest looking him up. He started out without so much as a high school education and built Virgin Group into one of the biggest and most successful business ventures in Britain.
Virgin was built as a discount store and label like many of the Virgin group brands. Branson said that they look at a business and determine ways to do it better and offer more.
I immediately thought of Tate Music Group during this story. TMG is not the norm but unlike the norm at this time we are profitable. TMG can offer our artists benefits that they can't likely find anywhere else. We strive in offering our artist top of the line options which we are growing every day. Just last week we rolled out the ability to participate in Nationwide TV commercials. 30 second spots for our artist, highlighting the album and their single.
When you look at TMG and compare us to other labels you can see that we've taken the most successful bits and pieces from other companies and instilled it into our business model. In doing so we have completely thrown away the practices that don't make money.
Bransons story is inspirational and I always like to hear success stories from the underdog. His story, much like anyone else's that has risen to the occasion highlights a never say die attitude.
We all could use a little bit more of that in our lives.
Tuesday, December 29, 2009
Tuesday, December 22, 2009
Competition Commission Clears the Proposed Merger of Ticketmaster and Live Nation in the UK
The Competition Commission has decided to clear the proposed merger of Ticketmaster and Live Nation in the U.K. The Commission decided that the merger of these two companies will not result in a "substantial" lessening of competition in the market.
A statement from both Ticketmaster and Live Nation indicated that they were optimistic there will be a successful outcome in the US.
The goal of this merger is to create a new kind of live entertainment business for the entire sector.
The push back from other ticket brokers and event promoters is that the merger will give Ticketmaster and Live Nation the power to increase ticket prices, or harm its competitors in different parts of the supply chain. The Commission disagrees and states that they would suffer significant short term losses in pursuit of very uncertain long term gains.
We will have to wait and see how this turns out.
A statement from both Ticketmaster and Live Nation indicated that they were optimistic there will be a successful outcome in the US.
The goal of this merger is to create a new kind of live entertainment business for the entire sector.
The push back from other ticket brokers and event promoters is that the merger will give Ticketmaster and Live Nation the power to increase ticket prices, or harm its competitors in different parts of the supply chain. The Commission disagrees and states that they would suffer significant short term losses in pursuit of very uncertain long term gains.
We will have to wait and see how this turns out.
Monday, December 21, 2009
Increase your Impressions
The strategy in place at Tate Music Group to market and promote an artist has a lot to do with increasing the artists impressions. TMG is able to do this based around events. Which is why it is important that the artist communicate with their TMG Marketing Rep regarding any and all performances scheduled (big or small).
Impressions are references to the artist, album or single. Tate Music group increases an artists impressions by sending out press releases and media blitzes about two weeks prior to all events listed on the artists calendar. These impressions hit a 50 mile radius of where the event is scheduled to take place. TMG notifies all media (TV, Radio, Newspapers, magazines...) of the event and the artist, hoping to draw published highlights. I tell the artists I represent that the more these news makers see your name the more likely they are to print the story.
Tate Music Group has added another avenue to increase the number of impressions an artist can receive by the new video commercials we are now producing, designing and airing on major music TV networks. This gives an artist optimal opportunities to create a buzz around every single event they play.
As you can see utilizing TMG's marketing strategy of creating multiple impressions over a long relationship with TMG is beneficial and gives the artist the best opportunity for success. Our business plan and contract illustrates that Tate Music Group is interested in creating a long term commitment to developing a music strategy. Overall with all things considered this is the absolute best opportunity for the artist and the label. Everyone wins!
Impressions are references to the artist, album or single. Tate Music group increases an artists impressions by sending out press releases and media blitzes about two weeks prior to all events listed on the artists calendar. These impressions hit a 50 mile radius of where the event is scheduled to take place. TMG notifies all media (TV, Radio, Newspapers, magazines...) of the event and the artist, hoping to draw published highlights. I tell the artists I represent that the more these news makers see your name the more likely they are to print the story.
Tate Music Group has added another avenue to increase the number of impressions an artist can receive by the new video commercials we are now producing, designing and airing on major music TV networks. This gives an artist optimal opportunities to create a buzz around every single event they play.
As you can see utilizing TMG's marketing strategy of creating multiple impressions over a long relationship with TMG is beneficial and gives the artist the best opportunity for success. Our business plan and contract illustrates that Tate Music Group is interested in creating a long term commitment to developing a music strategy. Overall with all things considered this is the absolute best opportunity for the artist and the label. Everyone wins!
Thursday, December 17, 2009
TMG Artist Receiving National TV Exposure
Tate Music Group Now offers a brand new service to all TMG artists. We are now creating and producing Viral Commercials that will help promote the artist, album and single.
Viral videos in themselves can be used in a number of ways to promote an artists music, from being uploaded to their MySpace page, to being played before a performance, and even going straight to YouTube and other video sites. Tate Music Groups team of Multimedia Producers will build the Viral Commercial around the artists music, using their photos and album artwork to capture potential consumers and build excitement and visibility for the music.
Not only do we hand over the video to our artist in order for them to use as they see fit but Tate Music Group also guarantees National and Regional TV exposure on major music TV networks (MTV, MTV2, VH1, CMT, BET, FUSE...). TMG is running national and regional commercial spots based around album release dates, events or for a blanket periods of time.
This is a huge game changer as it allows TMG to guarantee National TV exposure to any artist who wants to take advantage of this option.
Viral videos in themselves can be used in a number of ways to promote an artists music, from being uploaded to their MySpace page, to being played before a performance, and even going straight to YouTube and other video sites. Tate Music Groups team of Multimedia Producers will build the Viral Commercial around the artists music, using their photos and album artwork to capture potential consumers and build excitement and visibility for the music.
Not only do we hand over the video to our artist in order for them to use as they see fit but Tate Music Group also guarantees National and Regional TV exposure on major music TV networks (MTV, MTV2, VH1, CMT, BET, FUSE...). TMG is running national and regional commercial spots based around album release dates, events or for a blanket periods of time.
This is a huge game changer as it allows TMG to guarantee National TV exposure to any artist who wants to take advantage of this option.
Proposed Merger Draws Cooncern from Congress
The proposed merger between Ticketmaster and Live Nation has members of congress, public interest advocates and ticket brokers concerned.
These groups have teamed together to launch a site www.ticketdisaster.org outlining areas the merger could have a negative affect on. Key bullet points such as the increase in concert ticket prices and further promoting competitive practices in the entertainment business. US Rep. Bill Pascrell Jr. (D-NJ) said "these web sites will give the fan, the ticket buyers, the information they need to understand how they will be affected by the proposed merger as well as give them the chance to voice their opposition to the pending deal to the U.S. Department of Justices antitrust authorities."
The merger between the two companies is somewhere in the range of $2.5 billion.
These groups have teamed together to launch a site www.ticketdisaster.org outlining areas the merger could have a negative affect on. Key bullet points such as the increase in concert ticket prices and further promoting competitive practices in the entertainment business. US Rep. Bill Pascrell Jr. (D-NJ) said "these web sites will give the fan, the ticket buyers, the information they need to understand how they will be affected by the proposed merger as well as give them the chance to voice their opposition to the pending deal to the U.S. Department of Justices antitrust authorities."
The merger between the two companies is somewhere in the range of $2.5 billion.
Monday, December 14, 2009
Does the old business model of Record labels still work?
Tate Music Group is debt free! Those are the best 6 words any artist could ever hear about their record label. Debt free means TMG is FREE in a sense. We are not tied to a line of credit and nobody controls us because they have lent us money. I once heard "those that control debt control everything". Pretty scary considering government actions over the last several years, but that is a different topic all together.
British private equity group Terra Firma wants to bring in outside investors to help EMI which is struggling with $4.2 Billion of debt. If you don't recall Citigroup Inc. bankrolled the buyout of EMI in 2007. There are fears now that EMI could default on interest payments to Citigroup, Inc (www.billboard.biz). Not only are they billions of dollars in debt but there are fears that EMI can't even make interest payments on their debt. Pretty scary considering EMI's status in the music industry.
In most of my blogs I talk about how TMG is reinventing the music label business model. TMG wants to partner with the artist, where other labels want to find one breakthrough artist and sign them to a 360 deal. The business model of other labels does not allow them to develop talent. I've spoken to a few artist signed to major deals only to be dumped after a month. Tate Music Group allows artist to develop their talent and honestly take advantage of the "Snowball" affect. Generally we start locally, grow regionally before the artist hits nationally. TMG is proving this model works every day we stay debt free and our artists make money!
British private equity group Terra Firma wants to bring in outside investors to help EMI which is struggling with $4.2 Billion of debt. If you don't recall Citigroup Inc. bankrolled the buyout of EMI in 2007. There are fears now that EMI could default on interest payments to Citigroup, Inc (www.billboard.biz). Not only are they billions of dollars in debt but there are fears that EMI can't even make interest payments on their debt. Pretty scary considering EMI's status in the music industry.
In most of my blogs I talk about how TMG is reinventing the music label business model. TMG wants to partner with the artist, where other labels want to find one breakthrough artist and sign them to a 360 deal. The business model of other labels does not allow them to develop talent. I've spoken to a few artist signed to major deals only to be dumped after a month. Tate Music Group allows artist to develop their talent and honestly take advantage of the "Snowball" affect. Generally we start locally, grow regionally before the artist hits nationally. TMG is proving this model works every day we stay debt free and our artists make money!
Wednesday, December 9, 2009
A Not So Funny Warner Bros Royalty Statement
I was reading Billboard the other day and noticed this article regarding Warner Music Group and one of their artists. Until now I'm not sure anyone has ever posted their quarterly royalty statement on the web for all to see, especially a royalty statement from a Major.
Tim Quirk, a singer from the 90's alternative band "Too Much Joy" posted his statement in his blog the other day titled "My Hilarious Warner Bros. Royalty Statement", www.toomuchjoy.com. His frustration came from the fact that Warner Bros. wasn't reporting digital earnings to him. The problem has since been fixed but if you take a look at the blog and the statement you will see how thin the quarterly statement is from a Major.
Another point to make and we try to emphasize all the time when artist first come to TMG is that Majors want to own you. They want a 360 deal, meaning that they make money off of everything. TMG operates completely different, and we are educating the market and the artist that our way is the best way for all parties involved. TMG doesn't own or want any portion of an artists copyrights, publishing rights, performance rights etc... TMG's contract clearly states that we want to be the sole manufacturer of the product we are marketing and promoting.
The discouraging aspect to artist that sign with Majors or other labels is that there is usually a balance owed in full before the artist sees any profit from their hard work. At the bottom of Quirks statement Warner Bros. states that there is a "BALANCE ENDING UNRECOUPED of $395,214.00". Quirk later states in his blog that he never expects to have that balance paid off in full. That statement speaks volumes, honestly they recorded three albums from 1990 - 92, that's almost 20 years ago and they still haven't made a dime from the record company. Unfortunately there are thousands of artists in the same position as "Too Much Joy".
Tim Quirk, a singer from the 90's alternative band "Too Much Joy" posted his statement in his blog the other day titled "My Hilarious Warner Bros. Royalty Statement", www.toomuchjoy.com. His frustration came from the fact that Warner Bros. wasn't reporting digital earnings to him. The problem has since been fixed but if you take a look at the blog and the statement you will see how thin the quarterly statement is from a Major.
Another point to make and we try to emphasize all the time when artist first come to TMG is that Majors want to own you. They want a 360 deal, meaning that they make money off of everything. TMG operates completely different, and we are educating the market and the artist that our way is the best way for all parties involved. TMG doesn't own or want any portion of an artists copyrights, publishing rights, performance rights etc... TMG's contract clearly states that we want to be the sole manufacturer of the product we are marketing and promoting.
The discouraging aspect to artist that sign with Majors or other labels is that there is usually a balance owed in full before the artist sees any profit from their hard work. At the bottom of Quirks statement Warner Bros. states that there is a "BALANCE ENDING UNRECOUPED of $395,214.00". Quirk later states in his blog that he never expects to have that balance paid off in full. That statement speaks volumes, honestly they recorded three albums from 1990 - 92, that's almost 20 years ago and they still haven't made a dime from the record company. Unfortunately there are thousands of artists in the same position as "Too Much Joy".
Wednesday, December 2, 2009
How to Gain Exposure
I am asked more often than not by new aspiring artist one question, "how can I gain exposure"? Usually following that question are questions like "how can I get my song on the radio", "how do I book large concerts, tours or festivals", and "how can I sell a bunch of CD's"?
Two answers satisfies basically any questions regarding anything to do with the music business. The secret is to work harder than anyone else and to book as many gigs as you possibly can. Do not turn anything down. Jim Halsey has a great real life situation in his book "Starmaker" that drives home a great point. You never know who is going to be in the audience! You can show up and have 6 people in the audience and one of those people could be Chuck Tilley (one of the largest Christian entertainment buyers in the US).
An active event calendar drives larger events, tours, radio, highlight articles (exposure), and CD sales. Jim Halsey has the Oak Ridge Boys booked for 130 - 190 shows a year. The majority of their income comes from the merchandise table at their events. The exact same is true for a band that is starting out. They need to be as active as possible and move as much merchandise as they can at the back of the room. Those two aspect specifically, will draw the attention of industry pros.
I want to close with the fact that this info is not a new marketing plan by any means. We are not reinventing the wheel and this is not my brilliant idea to gain exposure. Every successful artist, every industry pro that we talk to here at Tate we always ask the same question. "What is your secret to success, what sets you apart from others." Everyone from Kenny Rogers, Neal McCoy, Jim Halsey, the Oaks, Jim Mazza, Dolly Parton, Chuck Tilley... They all work harder than anyone else!
Two answers satisfies basically any questions regarding anything to do with the music business. The secret is to work harder than anyone else and to book as many gigs as you possibly can. Do not turn anything down. Jim Halsey has a great real life situation in his book "Starmaker" that drives home a great point. You never know who is going to be in the audience! You can show up and have 6 people in the audience and one of those people could be Chuck Tilley (one of the largest Christian entertainment buyers in the US).
An active event calendar drives larger events, tours, radio, highlight articles (exposure), and CD sales. Jim Halsey has the Oak Ridge Boys booked for 130 - 190 shows a year. The majority of their income comes from the merchandise table at their events. The exact same is true for a band that is starting out. They need to be as active as possible and move as much merchandise as they can at the back of the room. Those two aspect specifically, will draw the attention of industry pros.
I want to close with the fact that this info is not a new marketing plan by any means. We are not reinventing the wheel and this is not my brilliant idea to gain exposure. Every successful artist, every industry pro that we talk to here at Tate we always ask the same question. "What is your secret to success, what sets you apart from others." Everyone from Kenny Rogers, Neal McCoy, Jim Halsey, the Oaks, Jim Mazza, Dolly Parton, Chuck Tilley... They all work harder than anyone else!
Tuesday, December 1, 2009
Kenny Rogers and Neal McCoy visit Tate
We were very blessed these last two weeks to have to music superstars visit our facilities, talk to the staff and meet with Tate Exec's.
The week before Thanksgiving Kenny Rogers, Jim Mazza, Jim Halsey, Sherman Halsey and others visited Tate for a potential business relationship. Kenny was great! He met with staff posed for pictures before and after meeting with our executive committee on a possible business venture. Yesterday Country great Neal McCoy did the same.
TMG has grown so quickly and honestly turned the music industry inside out, that it is a great blessing that some of the industry greats are taking notice. It's funny to see that their proven strategy for success matches our business model. From Kenny Rogers, to Neal McCoy to Jim Halsey who manages the Oak Ridge Boys all say that booking gigs should be the primary focus of every artist. A full event calendar will open the doors to everything else!
The week before Thanksgiving Kenny Rogers, Jim Mazza, Jim Halsey, Sherman Halsey and others visited Tate for a potential business relationship. Kenny was great! He met with staff posed for pictures before and after meeting with our executive committee on a possible business venture. Yesterday Country great Neal McCoy did the same.
TMG has grown so quickly and honestly turned the music industry inside out, that it is a great blessing that some of the industry greats are taking notice. It's funny to see that their proven strategy for success matches our business model. From Kenny Rogers, to Neal McCoy to Jim Halsey who manages the Oak Ridge Boys all say that booking gigs should be the primary focus of every artist. A full event calendar will open the doors to everything else!
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