The music business is not the same as it was 40, 30 or 20 years ago yet the majors still run their business as if it was. At some point the light bulb is going to turn on in some of these high powered executive offices. I read a recent article talking about the cost of breaking an artist in the pop genre figuring in around $1.5 million. $1.5 million to break and then the costs keep accruing to actually keep the act popular. Those cost are not met by high record sales anymore. Sure a lot of units are moving but usually at the cost of a digital download. When was the last time you heard about an artists selling 15 million records?
Tate Music Group has created a model that works. It allows the artists to retain all of the rights to their music while earning some of the highest royalties in the business on product sales. We have high level artists through our doors who can't believe our model and pricing charts.
Do you know the difference between TMG and other labels? The difference is that TMG is profitable. Billboard reported today that Warner Music Group's revenue dropped 3% in Q4, Live Nation's operating cost was at a loss of $54.9 million in 2009 and Universal Music Group's revenue dropped 8.2% in Q4. Tate Music Group is profitable and will be around tomorrow to support our artists in their careers.
With the downturn in the marketplace you can be sure to expect more mergers and acquisitions by companies in an attempt to produce stable earnings. Right now you can expect companies to conserve cash, cut costs and ride out the economic downturn. Our artists at Tate Music Group don't have to worry about TMG company wide layoffs, or our stability. The future is very bright for TMG and our artists and I believe in the near future some of the larger labels will adapt to our model.
Monday, March 29, 2010
Thursday, March 25, 2010
Why TMG's Contract Rocks and 360 Deals Suck
I found a great article on 360 deals written by someone that is paid to understand them better than anyone else. Bob Donnelly is an attorney with Lommen Abdo out of New York and he played a key role in sparking an investigation of Majorlabel "suspense accounts" which resulted in a settlement that paid artists $55 million in past-due royalties.
Donnelly writes in his article that artists should do a 180 on "360 Deals". Well what is a "360 Deal" some might ask. A 360 Deal is where the label owns a percentage of everything the artists is involved in. From touring, publishing, endorsements, merchandise, record sales, books, movies, fan clubs...EVERYTHING! The crooked aspect is that most labels demand that their percentage of earnings come out of GROSS revenues as well as cross-collateralizing where they will take positive earnings from one category and applying it as a record company expense that affects the artist's unrecouped balance in another category. Basically postponing the day when an artist actually receives a positive cash flow.
In the past record labels simply passed costs of doing business along to the artists in the form of artists royalty reductions. I wrote a blog about a band back in the early 90's that recorded 3 albums with Warner and still owes $400,000. Now the power grab is even crazier because these 360 deals are becoming the norm.
The points above are just the tip of the iceberg, but the important point I want to make is that it is imperative for the artist to retain ownership of copyrights and master recordings. Tate Music Group is a partner in the music business. TMG doesn't ask for ownership or a percentage of ownership of an artist's music rights. We want to partner with artists who are willing to work to take their music to the next level. Tate Music Group offers manufacturing, marketing, promotion and distribution outlets that will help an artists actually make money from the start. Making money from your product ROCKS!
Social networking is so important in today's music economy. There are tons of platforms to launch ones music out to the masses in companies like YouTube and MySpace. Even more so 95% of all digital downloads result from 3 websites (iTunes, Amazon, Rhapsody), and all three are a part of Tate Music Groups Distribution network.
Donnelly writes in his article that artists should do a 180 on "360 Deals". Well what is a "360 Deal" some might ask. A 360 Deal is where the label owns a percentage of everything the artists is involved in. From touring, publishing, endorsements, merchandise, record sales, books, movies, fan clubs...EVERYTHING! The crooked aspect is that most labels demand that their percentage of earnings come out of GROSS revenues as well as cross-collateralizing where they will take positive earnings from one category and applying it as a record company expense that affects the artist's unrecouped balance in another category. Basically postponing the day when an artist actually receives a positive cash flow.
In the past record labels simply passed costs of doing business along to the artists in the form of artists royalty reductions. I wrote a blog about a band back in the early 90's that recorded 3 albums with Warner and still owes $400,000. Now the power grab is even crazier because these 360 deals are becoming the norm.
The points above are just the tip of the iceberg, but the important point I want to make is that it is imperative for the artist to retain ownership of copyrights and master recordings. Tate Music Group is a partner in the music business. TMG doesn't ask for ownership or a percentage of ownership of an artist's music rights. We want to partner with artists who are willing to work to take their music to the next level. Tate Music Group offers manufacturing, marketing, promotion and distribution outlets that will help an artists actually make money from the start. Making money from your product ROCKS!
Social networking is so important in today's music economy. There are tons of platforms to launch ones music out to the masses in companies like YouTube and MySpace. Even more so 95% of all digital downloads result from 3 websites (iTunes, Amazon, Rhapsody), and all three are a part of Tate Music Groups Distribution network.
Thursday, March 18, 2010
Tech Buzz from SXSW
Many companies use SXSW's plattform to create buzz about their company or new products. One standout this year is Mobile Roadie. A recent article in Billboard by Antony Bruno highlighted the following.
"The company's offer is simple. For an upfront setup fee and monthly hosting cost, Mobile Roadie provides tools that let artists create their own iPhone or Android app without need for any programming skills. Clients upload their content and select features like fan chat and news alerts. Artists with apps on both devices need only update their content once, and the platform will automatically make the necessary changes.
The company is looking to expand, targeting hotels, authors, politicians and even conferences—basically anyone interested in developing a smart-phone app on the cheap. It has created an app for a SXSW karaoke party hosted by Mashable, a blog that focuses on Web 2.0 and social media news. It hopes to demonstrate how mobile apps can be used to connect to a shared experience and drive traffic to the Facebook and Twitter pages of those participating. Mobile Roadie also a finalist in the Accelerator contest."
"The company's offer is simple. For an upfront setup fee and monthly hosting cost, Mobile Roadie provides tools that let artists create their own iPhone or Android app without need for any programming skills. Clients upload their content and select features like fan chat and news alerts. Artists with apps on both devices need only update their content once, and the platform will automatically make the necessary changes.
The company is looking to expand, targeting hotels, authors, politicians and even conferences—basically anyone interested in developing a smart-phone app on the cheap. It has created an app for a SXSW karaoke party hosted by Mashable, a blog that focuses on Web 2.0 and social media news. It hopes to demonstrate how mobile apps can be used to connect to a shared experience and drive traffic to the Facebook and Twitter pages of those participating. Mobile Roadie also a finalist in the Accelerator contest."
Monday, March 15, 2010
TMG Artist John Pagliano Moving up the Charts
Tate Music Group recording artist John Pagliano has a hit single breaking at Mainstream Radio. “Denise’s Dream” taken from his Gone Away To Yesterday CD, is moving up on the charts of New Music Weekly, FMQB and on the Independent Music Network.
With just 5 weeks under the wings of National Record Promotions Larry Weir, John is sharing chart space with the best. Since Mr. Weir has been promoting "Denise's Dream" it has gained over 291 spins on 23 radio stations. It is charting #36 on AC/Hot AC Main Chart, #13 at AC/Hot AC Top 30 Indie Chart, and #56 at Hot 100 Singles Chart.
John understands that it takes a team of people to help make it in the music business. Just like music Great Jim Halsey states in his book "Starmaker", you have to build your Star team. John is doing that and seeing success from his determination and hard work.
With just 5 weeks under the wings of National Record Promotions Larry Weir, John is sharing chart space with the best. Since Mr. Weir has been promoting "Denise's Dream" it has gained over 291 spins on 23 radio stations. It is charting #36 on AC/Hot AC Main Chart, #13 at AC/Hot AC Top 30 Indie Chart, and #56 at Hot 100 Singles Chart.
John understands that it takes a team of people to help make it in the music business. Just like music Great Jim Halsey states in his book "Starmaker", you have to build your Star team. John is doing that and seeing success from his determination and hard work.
Letter From TMG Artists of the Year Chuck Tocco
Being Brought Before Great Men
I was thinking today about the scripture out of Proverbs 18:16 – A man’s gift makes room for him, and brings him before great men. I know God has blessed me with the gift of music, and I want to share this gift with the world. In doing so, I am not pursuing it for own personal gain, but for the advancement of the kingdom. I believe that God has brought me before great men, and for me that has been Tate Music Group. I knew that when I signed with Tate that I was making the right decision. I had prayed over this decision, and only being left with a feeling of peace. When signing the contract I read the “Mission Statement” and knew that they were Christ focused. This was the kind of people I wanted to partner with.
Tate as a company operates their business with an attitude of excellence. My experience all started with the director of acquisitions Brianne Webb who explained, directed, and gave me comfort about signing to the record label. I have worked side-by-side with my producer Jameson Reynolds, and watch him pour his heart and soul into my project. I saw the excellence of Janae Glass create a superb representation for the cover of my new release, “I Know That You Can Hear Me.” There are so many others who are working extremely hard to make this project a success. I can’t thank everyone enough for their dedication, and commitment.
During my visit to Oklahoma for the “Artist of the Year” contest I was able to get to know the staff, and their families on a more intimate level. I walked away from that experience feeling so excited about this new chapter in my life. Everyone I met was excited about their job, and their role in the company. There was no “I” in the vocabulary of anyone who I came into contact with. They all operated and functioned as a body, and they get things done with the highest level of excellence.
Many great artists are signing to the label, and having great success. If you feel God is leading you in this direction, pray about it, ask for God’s leading. Know that if you sign with Tate you’re not being scammed, but it’s an opportunity to make the vision God has placed in your heart become a reality.
Tate Music Group is quickly becoming recognized as one of the best record labels to partner with. Remember that the investment you are sowing into your ministry is small in comparison to the investment they are putting into you. They also, give you the opportunity to get that money back. Who does that? All you got to do is work hard, and be committed. Know that you are being brought before great men.
- Chuck Tocco
I was thinking today about the scripture out of Proverbs 18:16 – A man’s gift makes room for him, and brings him before great men. I know God has blessed me with the gift of music, and I want to share this gift with the world. In doing so, I am not pursuing it for own personal gain, but for the advancement of the kingdom. I believe that God has brought me before great men, and for me that has been Tate Music Group. I knew that when I signed with Tate that I was making the right decision. I had prayed over this decision, and only being left with a feeling of peace. When signing the contract I read the “Mission Statement” and knew that they were Christ focused. This was the kind of people I wanted to partner with.
Tate as a company operates their business with an attitude of excellence. My experience all started with the director of acquisitions Brianne Webb who explained, directed, and gave me comfort about signing to the record label. I have worked side-by-side with my producer Jameson Reynolds, and watch him pour his heart and soul into my project. I saw the excellence of Janae Glass create a superb representation for the cover of my new release, “I Know That You Can Hear Me.” There are so many others who are working extremely hard to make this project a success. I can’t thank everyone enough for their dedication, and commitment.
During my visit to Oklahoma for the “Artist of the Year” contest I was able to get to know the staff, and their families on a more intimate level. I walked away from that experience feeling so excited about this new chapter in my life. Everyone I met was excited about their job, and their role in the company. There was no “I” in the vocabulary of anyone who I came into contact with. They all operated and functioned as a body, and they get things done with the highest level of excellence.
Many great artists are signing to the label, and having great success. If you feel God is leading you in this direction, pray about it, ask for God’s leading. Know that if you sign with Tate you’re not being scammed, but it’s an opportunity to make the vision God has placed in your heart become a reality.
Tate Music Group is quickly becoming recognized as one of the best record labels to partner with. Remember that the investment you are sowing into your ministry is small in comparison to the investment they are putting into you. They also, give you the opportunity to get that money back. Who does that? All you got to do is work hard, and be committed. Know that you are being brought before great men.
- Chuck Tocco
What does it take to "Break" an artist?
What does it take to break an artist? That is the million dollar question, literally. John Kennedy, Chairman and Chief Executive of IFPI says that the cost of breaking an act is around $1 million. The term "Breaking" means to generate a hit that creates buzz and can build an artists domestically and then internationally.
There is a stipulation that artists can do this without the help of a label and as I'm sure there are successful artists out their that remain independent, Kennedy challenged anyone to name a new act that had broken through to become a major success without the support of a label.
Tate Music Group emphasizes the importance to stay busy as an artists. Booking events needs to be an artists number one priority from the start to the finish. The majority of sales and buzz comes from events. The more active an artists is allows TMG to create more opportunity through radio, TV and larger venues. Newspapers, radio stations and TV networks are interested in artists that are active. There is more news and greater interest to report on an active artists versus an artist that performs 6 times a year.
Local media will allow you to grow to a regional level and then to a national level. Tate Music Group believes with calculated risks and hard work a label can break an artist with a few hundred thousands dollars. We followed our formula and in less than a year we were able to break Jeff Chandler into a top ten chart position.
There is a stipulation that artists can do this without the help of a label and as I'm sure there are successful artists out their that remain independent, Kennedy challenged anyone to name a new act that had broken through to become a major success without the support of a label.
Tate Music Group emphasizes the importance to stay busy as an artists. Booking events needs to be an artists number one priority from the start to the finish. The majority of sales and buzz comes from events. The more active an artists is allows TMG to create more opportunity through radio, TV and larger venues. Newspapers, radio stations and TV networks are interested in artists that are active. There is more news and greater interest to report on an active artists versus an artist that performs 6 times a year.
Local media will allow you to grow to a regional level and then to a national level. Tate Music Group believes with calculated risks and hard work a label can break an artist with a few hundred thousands dollars. We followed our formula and in less than a year we were able to break Jeff Chandler into a top ten chart position.
Thursday, March 4, 2010
2nd Annual TMG Artist of the Year
Tate Music group held its 2nd Annual Artist of the year competition last Friday Feb 26th. It was a very successful event with $20,000 in cash awarded to our three finalists. It allowed Tate Music Group and the artists three days to discuss music, industry knowledge, share stories and most importantly bond.
After it was all said and done I enjoyed the music, the experience, the comradity with other TMG employees but most of all I enjoyed working with all of the artists. The most important rule in business (music business included) is to be nice. You never know who is going to be in a position to determine your future. Darin Rex, Jupiter Wind and Chuck Tocco are some of the nicest people I've ever met, and that was before we handed them their checks :). I can't say it enough but all of these guys made such a great impression with TMG, the companies we partnered with to organize the competition, hotel staff, wait staff ect.
Their professionalism will go a long way in their music careers. I know after leaving Tate Music Group that Saturday, our entire staff is more than willing to bend over backwards and go the extra mile for any of these guys and have a smile on their face when they do it. In general people want to help people they like.
The best business advice I've ever heard or could give is to "be nice".
After it was all said and done I enjoyed the music, the experience, the comradity with other TMG employees but most of all I enjoyed working with all of the artists. The most important rule in business (music business included) is to be nice. You never know who is going to be in a position to determine your future. Darin Rex, Jupiter Wind and Chuck Tocco are some of the nicest people I've ever met, and that was before we handed them their checks :). I can't say it enough but all of these guys made such a great impression with TMG, the companies we partnered with to organize the competition, hotel staff, wait staff ect.
Their professionalism will go a long way in their music careers. I know after leaving Tate Music Group that Saturday, our entire staff is more than willing to bend over backwards and go the extra mile for any of these guys and have a smile on their face when they do it. In general people want to help people they like.
The best business advice I've ever heard or could give is to "be nice".
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