We are asked all of the time why we require an artist investment on initial projects. Our main reason is that we need the artist to have some skin in the game. I've said it before and I will say it again "Free has no value". When a person doesn't have anything to loose they generally don't give 100%. This business is way to hard for someone not to give it everything they have.
Case in point EMI just released their annual numbers and they reported a net loss of $800 million. They LOST almost a billion dollars. EMI has some of the largest artist in the world and a portfolio to go along with it. But once again, the old way of doing things is not the way the industry works today. The large labels used to own everything therefore all of the money would filter back to them. That is not the case in today's market. More money is being spent but it is divided to many more ententes than ever before.
Take a look at EMI's annual report on Billboard.com
Thursday, August 19, 2010
Friday, August 13, 2010
Warner Music to Negative
Associated Press
S&P cuts outlook on Warner Music to 'negative'
Associated Press, 08.13.10, 12:38 PM EDT
NEW YORK --
Standard & Poor's Ratings Services lowered its outlook on Warner Music Group's rating to "negative" from "stable," citing a continued decline in revenue and profit due to light album releases and ongoing challenges with the music industry's shift to digital distribution.
The company's "BB-" rating is three notches into junk status.
Standard & Poor's said that despite Warner Music Group's vigilant cost-cutting measures, it will be less confident about the company's outlook "until there is an indication that digital sales can resume at healthy growth rates and eventually offset physical CD sales declines."
The ratings agency said that even though Warner Music Group's album release schedule is weighted toward its fiscal fourth quarter, ending Sept. 30, it believes the company's fourth-quarter revenue could decline by a high-single-digit to low-double-digit percentage. It added that visibility into fiscal 2011 is uncertain.
Warner Music last week posted a wider loss as digital download sales growth slowed further in its fiscal third quarter. Revenue from digital sales of recorded music grew just 3.7 percent to $169 million. Sales of downloads from Apple Inc.'s iTunes store are slowing as the market matures, especially in the U.S. Sales of physical CDs and vinyl records declined 25 percent to $350 million.
Warner also suffered from fewer big releases, as its top-seller, the soundtrack to the latest in the "Twilight" movie saga, compared poorly to prior-year releases such as Green Day's "21st Century Breakdown."
Shares of Warner Music Group were down 2 cents at $4.28 on Friday afternoon.
S&P cuts outlook on Warner Music to 'negative'
Associated Press, 08.13.10, 12:38 PM EDT
NEW YORK --
Standard & Poor's Ratings Services lowered its outlook on Warner Music Group's rating to "negative" from "stable," citing a continued decline in revenue and profit due to light album releases and ongoing challenges with the music industry's shift to digital distribution.
The company's "BB-" rating is three notches into junk status.
Standard & Poor's said that despite Warner Music Group's vigilant cost-cutting measures, it will be less confident about the company's outlook "until there is an indication that digital sales can resume at healthy growth rates and eventually offset physical CD sales declines."
The ratings agency said that even though Warner Music Group's album release schedule is weighted toward its fiscal fourth quarter, ending Sept. 30, it believes the company's fourth-quarter revenue could decline by a high-single-digit to low-double-digit percentage. It added that visibility into fiscal 2011 is uncertain.
Warner Music last week posted a wider loss as digital download sales growth slowed further in its fiscal third quarter. Revenue from digital sales of recorded music grew just 3.7 percent to $169 million. Sales of downloads from Apple Inc.'s iTunes store are slowing as the market matures, especially in the U.S. Sales of physical CDs and vinyl records declined 25 percent to $350 million.
Warner also suffered from fewer big releases, as its top-seller, the soundtrack to the latest in the "Twilight" movie saga, compared poorly to prior-year releases such as Green Day's "21st Century Breakdown."
Shares of Warner Music Group were down 2 cents at $4.28 on Friday afternoon.
Labels Shut Down Street Teams
Rock label Epitaph Records recently sent out an email announcing that its street team would cease to exist on August 24. This closure comes a few months after the somewhat abrupt closure of Warner Brothers Records Street Network. Both labels gave no reason for the closing and didn't respond to media requests for answers as to why they would shut down.
In the music market we are currently in the internet is king. Social networking is where an artist or a "Street Team" has to be savvy these days. The labels didn't respond as to why the street teams were shut down but I assume we can all come to a conclusion it was based around money. Your typical label still doing business as they did 10, 20 or even 30 years ago is loosing money. The top 4 will tell you that people aren't spending as much money on music these days and that simply isn't true. Consumers are spending more if anything it just isn't all going to the same 4 places it used too. The money these days is spread out to so many different vendors most labels feel the pinch big time.
In the music market we are currently in the internet is king. Social networking is where an artist or a "Street Team" has to be savvy these days. The labels didn't respond as to why the street teams were shut down but I assume we can all come to a conclusion it was based around money. Your typical label still doing business as they did 10, 20 or even 30 years ago is loosing money. The top 4 will tell you that people aren't spending as much money on music these days and that simply isn't true. Consumers are spending more if anything it just isn't all going to the same 4 places it used too. The money these days is spread out to so many different vendors most labels feel the pinch big time.
Monday, August 9, 2010
1,000 True Fans
"The long tail does not raise the sales of creators much, but it does add massive competition and endless downward pressure on prices. Unless artists become a large aggregator of other artist's works, the long tail offers no path out of the quiet doldrums of minuscule sales.
Other than aim for a blockbuster hit, what can an artist do to escape the long tail?
One solution is to find 1,000 True Fans. While some artists have discovered this path without calling it that, I think it is worth trying to formalize. The gist of 1,000 True Fans can be stated simply:
A creator, such as an artist, musician, photographer, craftsperson, performer, animator, designer, videomaker, or author - in other words, anyone producing works of art - needs to acquire only 1,000 True Fans to make a living.
http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php
Other than aim for a blockbuster hit, what can an artist do to escape the long tail?
One solution is to find 1,000 True Fans. While some artists have discovered this path without calling it that, I think it is worth trying to formalize. The gist of 1,000 True Fans can be stated simply:
A creator, such as an artist, musician, photographer, craftsperson, performer, animator, designer, videomaker, or author - in other words, anyone producing works of art - needs to acquire only 1,000 True Fans to make a living.
http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php
Friday, July 23, 2010
TMG Highlights OK Talent
Sunday July 18th a little over a hundred people gathered that night to see what Tate Music Group had to offer from their own Oklahoman artists. Halie Hanson, Chris Crawford, Jeff Hill, Ahsley Windham and Scarlitt Redemption came through to entertain the show and stomp their performances. Each artist had a different musical style and their own way to relate to the audience.
TMG Marketing reps always emphasize the importance of performing. At that time it is the artists greatest opportunity to capture a crowd and entertain them. The transitions from song to song are just as important as the song itself. The entire package needs to be at the same level and that is what the 5 artists did last Sunday night. I was so proud that Tate Music Group was so well represented.
TMG looks forward to creating more showcases for our artists around the country.
TMG Marketing reps always emphasize the importance of performing. At that time it is the artists greatest opportunity to capture a crowd and entertain them. The transitions from song to song are just as important as the song itself. The entire package needs to be at the same level and that is what the 5 artists did last Sunday night. I was so proud that Tate Music Group was so well represented.
TMG looks forward to creating more showcases for our artists around the country.
Thursday, July 22, 2010
The Mistake Authors and Artists Make
THE MISTAKE AUTHORS AND ARTISTS MAKE
by
Richard Tate
My wife and I traveled for over 25 years speaking, singing, and conducting seminars and conferences across the US and even overseas. We averaged about 40+ events per year for a quarter of a century. Much of what Tate Publishing and Tate Music Group does for authors and artists is a direct result of our experiences, both good and bad. They say no teacher is more effective than experience and we can certainly vouch for that. Many horrible hotels, hours and hours in a car with kids asleep in the back seat, endless hours in airports, small record and book sales and low payment for services and work, work, work. When I was in the Marine Corps back in the 60’s one of our officers made a statement to us during an especially difficult time. “No one ever drowned in sweat,” he screamed. How true that is.
The sad issue today is that many new authors and artists think that because they have a good book or great music that it should just “happen” for them and that it is the total responsibility of the publisher or label to do all the work. It takes work, persistence, and lots of effort by the author or artist along side their publisher and label. Trust me, it is all worth it and Rita and I have a million good memories as a result of those years and made a fine living on the road. You can too if that is your dream, if you are willing to work with your team.
Last fall I was outside our house standing in the driveway talking with my son Ryan, who is the effective President and CEO of our companies, about TMG issues when my cell phone rang. The voice on the other end was our good friend and country music legend, Kenny Rogers. He was calling about his upcoming trip to our location and wanted to go over a few things with me and Ryan. Here is the “kicker” to the conversation. I said, “Kenny, you sound a bit tired my friend!” He replied, “Just a bit Richard. We have the Fiftieth Anniversary tour coming up in January with Dolly Parton and I have been working ten hours a day on the phone and on the computer calling venues, newspapers, radio and TV stations, and promoters working to get the crowds out. I have been doing this for half a century and it is still a lot of work.” Kirk Webster, who works with us out of Nashville and manages Dolly Parton, told me at our dinner there recently, “Richard, I have never seen anyone work harder than Dolly. She is after it hours and hours every day to stay successful.” Lee Greenwood who is a new part of our music and publishing family and the author of “God Bless the USA” told us in the conference room at his last visit that he worked for years and years in every kind of venue that would book him, large or small before his career took off and he became the legend he is today. Two time country music artist of the year Neal McCoy is doing several projects with us. He was Entertainer of the Year TWICE and said to me his bus one night after a packed out show, “It took me 13 years Richard before I had a hit. 13 years of any and every kind of gig until things took off. I work harder today than ever to keep us on the road doing what I love.” We love our relationship with the Oak Ridge Boys and their long time manager Jim Halsey. I was visiting with Joe Bonsall when the “Boys” were here recently and I asked him (they still do over 100 shows a year) what he would tell some of our new and aspiring authors and artists. He did not even hesitate. “They have to be willing to work. They have to be willing to sing or speak to 5 just like they would to 5,000. Most people think they should get their break because of the record label. Not so. It takes the label and the artist working hard every day. You don’t deserve that booking, you have to work for it and it HAS to be about your music or the message of your book first of all.”
Our marketing and publicists work hard to make each artist and each author as successful as possible. But, the biggest mistake I see authors and artists make is to think they deserve it and it should just “happen.” It takes hard work even after you have become a legend in the industry. Just ask Kenny Rogers.
by
Richard Tate
My wife and I traveled for over 25 years speaking, singing, and conducting seminars and conferences across the US and even overseas. We averaged about 40+ events per year for a quarter of a century. Much of what Tate Publishing and Tate Music Group does for authors and artists is a direct result of our experiences, both good and bad. They say no teacher is more effective than experience and we can certainly vouch for that. Many horrible hotels, hours and hours in a car with kids asleep in the back seat, endless hours in airports, small record and book sales and low payment for services and work, work, work. When I was in the Marine Corps back in the 60’s one of our officers made a statement to us during an especially difficult time. “No one ever drowned in sweat,” he screamed. How true that is.
The sad issue today is that many new authors and artists think that because they have a good book or great music that it should just “happen” for them and that it is the total responsibility of the publisher or label to do all the work. It takes work, persistence, and lots of effort by the author or artist along side their publisher and label. Trust me, it is all worth it and Rita and I have a million good memories as a result of those years and made a fine living on the road. You can too if that is your dream, if you are willing to work with your team.
Last fall I was outside our house standing in the driveway talking with my son Ryan, who is the effective President and CEO of our companies, about TMG issues when my cell phone rang. The voice on the other end was our good friend and country music legend, Kenny Rogers. He was calling about his upcoming trip to our location and wanted to go over a few things with me and Ryan. Here is the “kicker” to the conversation. I said, “Kenny, you sound a bit tired my friend!” He replied, “Just a bit Richard. We have the Fiftieth Anniversary tour coming up in January with Dolly Parton and I have been working ten hours a day on the phone and on the computer calling venues, newspapers, radio and TV stations, and promoters working to get the crowds out. I have been doing this for half a century and it is still a lot of work.” Kirk Webster, who works with us out of Nashville and manages Dolly Parton, told me at our dinner there recently, “Richard, I have never seen anyone work harder than Dolly. She is after it hours and hours every day to stay successful.” Lee Greenwood who is a new part of our music and publishing family and the author of “God Bless the USA” told us in the conference room at his last visit that he worked for years and years in every kind of venue that would book him, large or small before his career took off and he became the legend he is today. Two time country music artist of the year Neal McCoy is doing several projects with us. He was Entertainer of the Year TWICE and said to me his bus one night after a packed out show, “It took me 13 years Richard before I had a hit. 13 years of any and every kind of gig until things took off. I work harder today than ever to keep us on the road doing what I love.” We love our relationship with the Oak Ridge Boys and their long time manager Jim Halsey. I was visiting with Joe Bonsall when the “Boys” were here recently and I asked him (they still do over 100 shows a year) what he would tell some of our new and aspiring authors and artists. He did not even hesitate. “They have to be willing to work. They have to be willing to sing or speak to 5 just like they would to 5,000. Most people think they should get their break because of the record label. Not so. It takes the label and the artist working hard every day. You don’t deserve that booking, you have to work for it and it HAS to be about your music or the message of your book first of all.”
Our marketing and publicists work hard to make each artist and each author as successful as possible. But, the biggest mistake I see authors and artists make is to think they deserve it and it should just “happen.” It takes hard work even after you have become a legend in the industry. Just ask Kenny Rogers.
Wednesday, July 14, 2010
Justin Bieber Label Support
I want to start this blog off with a disclaimer so people know that I am not sitting around listening to Justin Bieber songs and watching YouTube videos all day long. I happened to catch a special this morning before heading into work that I found interesting titled "Justin Bieber, My World" on E.
It was interesting because some established artists believe that Bieber is probably the last discovered talent (by a label) that will happen in the music industry. The industry is changing so much and so many platforms are avaialable that artists do not need label support in the same way that they used too.
One of the comments Justins manager made was that everyone in the music industry knows that your label doesn't kick in until you have something going on. Keep in mind that they are signed by Island Def Jam. This is a great point to make about industry norm and the Tate Music Group model. TMG will help our artist promote, distribute and market their album from the start. Regardless if you have 1 event booked or 1000. Our marketing staff works with you to increase your exposure by helping publicize the events you have, securing promotional materials, partnering to book events and giving you the label support you need.
It is probably safe to say that everyone knows Bieber was an internet sensation. After signing with Def Jam his manager and mom started posting videos of him singing, interacting and performing. They wanted to use the internet to make it seem like the fans discovered Bieber. By the time he released his album he already had a fan base. The rest is history.
Again I mention this because it is an interesting piece and talks in depth about using the internet to market music. They didn't poor a bunch of money into it at all. Literally they posted a bunch of home videos that captured an audience. Anyone can use that marketing approach.
It was interesting because some established artists believe that Bieber is probably the last discovered talent (by a label) that will happen in the music industry. The industry is changing so much and so many platforms are avaialable that artists do not need label support in the same way that they used too.
One of the comments Justins manager made was that everyone in the music industry knows that your label doesn't kick in until you have something going on. Keep in mind that they are signed by Island Def Jam. This is a great point to make about industry norm and the Tate Music Group model. TMG will help our artist promote, distribute and market their album from the start. Regardless if you have 1 event booked or 1000. Our marketing staff works with you to increase your exposure by helping publicize the events you have, securing promotional materials, partnering to book events and giving you the label support you need.
It is probably safe to say that everyone knows Bieber was an internet sensation. After signing with Def Jam his manager and mom started posting videos of him singing, interacting and performing. They wanted to use the internet to make it seem like the fans discovered Bieber. By the time he released his album he already had a fan base. The rest is history.
Again I mention this because it is an interesting piece and talks in depth about using the internet to market music. They didn't poor a bunch of money into it at all. Literally they posted a bunch of home videos that captured an audience. Anyone can use that marketing approach.
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