Understand why industries change, what the trajectories of change are, and how the music industry coped with radical change.

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1 Boston University - Questrom School of Business QST MK435 The Music Industry & Instructors: Ben Laski Tel: ben@laskico.com Steph Mirsky Tel: steph@4fini.com COURSE OVERVIEW: Introduction to The Music Business & will initially provide a survey of the music industry, highlighting those areas where music and business intersect. The focus will be on developing a foundational understanding of the structure and areas of the music industry. By analyzing how the industry underwent extreme change and what opportunities arose from the changing landscape in the discovery and consumption of music, students will be able to better understand emerging trends in the industry and how to apply them. Introduction to Music Business & will also heavily discuss music marketing an overview of key music marketing principles, terms, and practices, which together form the foundation for all music marketing plans. From there, students will dig into the key areas of opportunities for musicians, including publicity, advertising, promotion (online and traditional), digital distribution, touring, licensing/synch, and radio. Students will learn what companies and partners to work with to reach their core fans, how to communicate with them, and the ways to leverage the changes and new opportunities that the Internet offers to marketers. The information in this course can form the basis for a full marketing campaign, or be immediately implemented into a new marketing and promotion campaign. Overall, Introduction to Music Business & will assist students with the development of businessrelated knowledge and skills necessary for effectively maintaining a professional music career. The course will serve both the student wishing to increase his/her understanding of common business practices related to the music industry, and the student who is considering further study of music business/management. COURSE OBJECTIVES: Develop an understanding of the fundamentals of the recorded music industry, as well as learning the difference between the record business and the music industry as a whole. Understand why industries change, what the trajectories of change are, and how the music industry coped with radical change. Recognize whom the middlestream artist is, what they represent, how a changed industry supports this new model, and developing strategies that connect all sects of the industry to provide a foundation for success. Analyze the ways in which customer needs and wants influence the industry and how labels and bands create and capture value for customers Understand music distribution pricing models, why records cost what they do, and who takes a piece of what. Gain a firm understanding of the foundational best practices involved with all successful music marketing campaigns. Develop an integrated approach to music marketing in the focus areas of Press/Promotion, Advertising, Publicity, Digital Retail Distribution, Touring, and Licensing. Understand online music distribution and retail: the terms, deals, formats, options, and key companies to work with.

2 Understand how music licensing and supervision work and how it can be used to break an artist REQUIRED MATERIALS: Passman, Donald S. All You Need to Know about the Music Business **ALWAYS get newest edition** ISBN-10: King, Mike. : Press, Promotion, Distribution, and Retail ISBN-10: X Industry Newsletters: billboard.com, digitalmusicnews.com, and ADDITIONAL MATERIALS: SUGGESTED MATERIALS: Shep Gordon, They Call Me Supermensch Derek Sivers, Anything You Want Keith Richards, Life GRADING: Participation/attendance 25% Case Study 15% Mid-Term Exam 20% Final Project: Integrated Marketing Plan 40% ATTENDANCE: The class will meet once a week for 3 hours in the evening. Attendance at all sessions (lectures, guest speakers, excursions) is mandatory. You will be expected to be punctual. You will be penalized for unexcused absences or being tardy. Absences for notified legal, medical, or religious reasons will be excused at the discretion of the instructor, but communication, if at all possible, in advance of the absence is expected, and should be via . BOSTON UNIVERSITY STATEMENT ON PLAGIARISM BE SURE TO READ AND COMPLY WITH BOSTON UNIVERSITY'S UNIVERSAL ACADEMIC CONDUCT CODE. It is available at: bu.edu/academics. CLASS ASSIGNMENTS 1. MID-TERM EXAM: 4 6 short answer questions on larger picture concepts (ie. What did Napster really do to the industry, what evidence is there of future disruptive technologies, what will a record label s role be in the future? etc.) 2. CASE STUDY: Topic to be determined but here is a sample from a previous semester: To Stream Or Not To Stream? If you were a new musical artist would you allow your songs to be streamed or would you hold out? How would you attract attention to the fact that your songs are available or not available on streaming services? Would you chose one style of streaming such as Spotify/Apple Music over Pandora? What would you do in order to generate income from streaming and is the current streaming model sustainable for artists? If you decide not to stream, how would you make your music available to your fans and potential new fans? 3-5 double spaces pages. 3. FINAL PROJECT: Students will select a band or artist and create a complete marketing plan using the concepts studied in the course over the semester. The goal of the project is to assess if the students are able to take what they have learned in the course and apply it to a specific artist in a real world manner (ie. developing a marketing plan that is correct for that specific type of artist based on what the current market is yielding).

3 PART I: PROPOSAL: Students are to select an unsigned or signed artist of their choice and provide the following outline as to why they chose the artist and what direction they would like to take the band or artist. (1-2 pages) I. Brief description/bio of the band/artist II. What type of record label do they want to be on? Major, independent, or DIY? Why? Specific scene/genre? (Indie Rock, Hip-Hop, Pop Punk, EDM, etc) III. What market trends are benefiting the development of this artist? Are changes in technology and how fans consume music going to influence the artist/band's development? Is the artist/band s genre growing? Is it a touring band/artist or more based more on YouTube videos, or music placed on TV shows, movies, and commercials, or other ways to get a buzz and following After handing in the proposal, the professor is to read through the student s reasoning and provide them with a general marketing and development budget for the record. Budget should be largely based on the student s choice of record label (major vs. independent or DIY) and overall goals (radio/top 40 push vs. middlestream development). PART II: INTEGRATED MARKETING CAMPAIGN: PUTTING IT ALL TOGETHER SECTION 1. PROJECT DESCRIPTION Developing the band/artist as a brand cultivating an image Focusing on the niche and entering the middle stream SECTION 2: IDENTIFY THE TEAM OF PLAYERS What label is current for your band/artist? Which manager is the best strategic choice for your band/artist? (can suggest a few) Why? Which agent is the best strategic choice for your band/artist? (can suggest a few) Why? Is a publishing/synch company deal the right move? SECTION 3: PREPARE FOR THE NEW RELEASE Working within the budget What is feasible? What is effective? What is right for the band/artist? Will there be a pre-order? Is the band ready for that? What is the lead up press for the record? How are you going to take this product to retail? digital and physical What is your video and single roll out strategy? What creative branding or sponsorship is right for this release? What touring is right for the band/artist?

4 CLASS TOPICS CONTENT Course Overview; Why are you here? JAN 16 Review the syllabus, the assignments, the rules, the goals and expectations. Learn more about the background and interests of the instructor and the students. VIDEO: Welcome to the Music Business - You're F%*@ed JAN 23 JAN 30 FEB 6 MAJOR EVENTS THAT CHANGED THE INDUSTRY Napster Arguments Surrounding Illegal Downloading WHY INDUSTRIES CHANGE: WHAT DID NAPSTER AND ITUNES REALLY DO? Trajectories of Change Radical Change Evidence of Radical Change in the Music Industry Economic Effects of These Trends RECORD LABELS OF THE RECORDED MUSIC BUSINESS Major Labels Major-Distributed Independents True Independents RECORD DEALS: WHAT ARE BANDS GETTING INTO? Masters Royalty Calculations Advances and Recoupment 360 Deals WHY LABELS ARE STILL IMPORTANT: SIGNALING AND SCREENING / IT S ALL A GAME Risk assumption My A&R s a computer Everyone is in bed together Economies of Scope Is there an alternative to a record label? WHY LABELS ARE STILL IMPORTANT: VALUE CREATION Perceived value of the market place Intangible value of a band s brand THE TEAM OF ADVISORS: REPRESENTATION Manager Agent Attorney Topic Overview Document All You Need To Know Part I: Your Team of Advisors Part II: Record Deals (Broad-Stokes through Real-Life Numbers And Loan-out, Independent sections) It Takes a Village to Break an Artist VIDEO Downloaded: The Story of Napster A&M Records, Inc. v. Napster, Inc. 239 F.3d 1004 (2001) How Industries Change by Anita McGahan Topic Overview Document Citigroup grabs control of EMI Universal Completes EMI Divestments, Sells Last Two Assets RIAA Adds Digital Streams To Historic Gold & Platinum Awards The Music Biz in 2013: In Flux, Disruptors Disrupted A Stream of Music, Not Revenue The Myth of DIY & The Madness of Traditional Release What Future for Record Companies Post- Internet? A2IM Disputes Billboard/SoundScan's Label Market-Share Methodology Nielsen Entertainment & Billboard s 2013 Mid- Year Music Industry Report

5 CLASS TOPICS CONTENT FEB 13 Feb 20 Feb 27 THE RISE OF THE MIDDLESTREAM Time-series analysis of historical Soundscan data Winner Takes All vs. Long-Tail is either accurate? Definition of the middle stream STRATEGIES FOR THE MIDDLESTREAM Customer s don t buy that which they don t know about Customers don t like risk Customer s won t buy what they don t understand Customer s won t buy that which isn t available INTRO TO MUSIC MARKETING An Integrated Approach to Marketing Creating a Marketing Plan that Works Defining Your Goals Finding Your Audience and Defining Your Audience Budgeting understanding the artist s stage SOCIAL MEDIA Building the conversation with fans Don t stretch yourself too thin focusing efforts Understanding the beauty of geo-targeting ONLINE & MOBILE MARKETING The Mobile Revolution Video Marketing / The Internet Killed the Video Star CASE STUDY: TO STREAM OR NOT TO STREAM The Promise of Digital Technology by Anita Elberse The Long Tail by Chris Anderson Topic Overview Document Chapter 1: Creating a Marketing Plan The New Deal: Band as Brand The Recipe For Success: Old School vs. New School The Ups and Downs of Band/Brand Relationship Chapter 7: Advertising Chapter 8: Publicity MAR 6 MAR 13 Spring Break PUBLICITY Outlets - National, Regional, Local, Specialized Online Press vs. Traditional Press The Art of the Press Release Who to Hire and When to Hire an Independent Publicist ADVERTISING Print Advertising Options: Consumer, Trade, Co-Op Print Media Advertising: Radio and TV Online Advertising Chapter 6: Online, Mobile, and Video (Social Media Video Marketing) Social Media Band Camp MAR 20 Mar 27 MID-TERM EXAM DIGITAL DISTRIBUTION BASICS FINAL PROJECT PROPOSAL (DUE)

6 Terms, Formats, DRM, Metadata, UPC Understanding Online Music Retail Models and Pay Rates: Permanent Downloads, Streams, Advertising DIGITAL MUSIC PLATFORMS Marketing at content interaction level Online music retail models and outlets Spotify, Apple Music, Pandora What do they have to offer? Digital music sites marketing initiatives Chapter 3: How To Sell Your Music Online: Digital Retailers and Distributors I Run an Indie Label. And Here s What Spotify, Rhapsody, & Zune pay us APR 3 APR 10 APR 17 APR 24 PUBLISHING, LICENSING & MUSIC SUPERVISION What is publishing? What is music supervision? What is the creative process? How do you license a song? TOURING TOURING 101 Key Players in the Touring Business Roles of Band s Team Members Band Riders Merchandise Tour Support from a Label TOUR MARKETING Promoting the Show: Working with the Venue Promoting the Show: Press and Social Media Promoting the Show: Retail TBD REVIEW Answer final questions about course / final project Discuss career questions with the students Movie & Pizza Night FINAL PROJECT DUE All You Need To Know Part V: Touring Part VI: Merchandising (only Tour Merchandising section) Chapter 8: Making The Most of a Tour ARTICLE: "No Money, Mo Problems: Why Even Successful Bands Struggle Financially." Booking 101: Intro to Music Venues Backstage Pass: Lifecycle of Your Concert Ticket Chapter 9: Radio Promotion All You Need To Know Part III: Music Publishing (only Publishing Overview and Sources of Income sections) Pat VII: Motion Picture Music (Licensing Existing Recordings and Music Supervisors sections) Advertising IS The New Radio! Beyond Just Music Licensing in Advertising Chapter 11: Timing Is Everything! FINAL PROJECT DUE VIA