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Promotion and Distribution
   of Recorded Music

                      © 2007 musicbizclasses.com
Record Promotion
                   © 2007 musicbizclasses.com
Creating The Demand: The Team

        Marketing
                     Radio Promotion
Artist Development
Artist Relations
                     Promotions
Product Management

                     Sales

                     Publicity

                     Advertising
                                   © 2007 musicbizclasses.com
Creating the Demand: Publicity
PUBLICITY: The Publicity Team (aka Media Relations):
is responsible for procuring free placements of stories,
pitches and announcements in the Media
                                     Media.

Information is placed at:
               p
•Radio
•Consumer and Trade Magazines
•Newspapers
 N
•Internet
•TV (Cable, Network
 TV

Information includes: announcements, reviews, feature
articles, i t i
  ti l    interviews, t lk show performance appearances
                      talk h       f
                                             © 2007 musicbizclasses.com
Creating the Demand: Promotions

Promotions: The Promotions teams- Radio, Video,
New Media, General Promotions and Tour staff are
responsible for creating high impact programs for
diverse industry partners- radio stations, retailers,
websites,
websites TV productions

Tactics include:
  –Independent Radio Promotion campaign
  –Production and Promotion of Videos
   Production
  –Contests, Give-aways, In-Store Appearances
  –Promotional ringtones and downloads
  –Tour Support
                                          © 2007 musicbizclasses.com
Creating the Demand: Advertising

Advertising: The Advertising team is responsible
for purchasing ad space or making targeted media
buys.

Ads are placed in a variety of media including:
  –Print- Consumer and Trades journals, magazines,
      newspapers
  –Broadcast- TV Cable (Independents), Radio
   Broadcast TV,         (Independents)
  –In-Store Publications/Retailer Newsletters
  –Internet

                                           © 2007 musicbizclasses.com
Creating the Demand: Sales

Sales: The Sales team is responsible for working
with distributors to inform retailers about new
releases

Sales uses these tools to help encourage Sell-In:
  –Discounts
  –Promo Copies
  –100% inventory return policy
   100%
  –Retailer support $$


                                        © 2007 musicbizclasses.com
RECORD MARKETING TOOLS:
PRESS KIT

Offers a complete package about an artist and new release

Press Kit Elements:
•   Artist/Band Biographies & Background
•   CD/single
•   Digital Artwork Logo, Screen Shots, Head Shots
•   Testimonials: Industry Awards, Recognitions
•   Press Release
•   Press Clippings
•   “Cut-by-Cut”-Track listing with artist’s p
           y                 g               personal comments

• EPK:
     • Video Interviews
     • Video of Performances
                                                   © 2007 musicbizclasses.com
RECORD MAREKTING TOOLS:
PRESS RELEASE
Creates compelling, timely announcements about
artist/new release

Press Release Elements:
• A
  Answers the I
           th Important “W” questions-
                    t t         ti
  Who, What, When, Where, Why
• Headline
• Dateline
• Lead Paragraph
• Body Copy
• Company Boilerplate
• Contact Information
                                         © 2007 musicbizclasses.com
RECORD MAREKTING TOOLS:
ONE SHEET

Created b the R
C     d by h Record L b l to provide
                     d Label     id
a comprehensive snapshot of
information on a new release
                     release.

The One Sheet captures the most
important data of the upcoming release.
And helps “sell” retailers with an outline
        p
of the marketing support available.


                                 © 2007 musicbizclasses.com
One Sheet Elements:
• Album Art and Logo
• Storyline/Buzz about Record/Artists
• Artist’s Bio
• Promotion and Marketing Plans
                         g
• Key Selling Points and Sales Tactics
• Street date
• Contact Info
• Track Listings
• Tour Plans
• B Code
  Bar C d
                                 © 2007 musicbizclasses.com
Record Distribution
                  © 2007 musicbizclasses.com
Distribution

 What is Distribution?
   • the commercial sales process of moving
     goods from product manufacturers to
     end-consumers
        d

 Goals
   1)Sell maximum # of units (physical and
     digital)
       g )

    2)Service retail accounts for repeat business

                                      © 2007 musicbizclasses.com
Distribution

Moving product from Manufacturer to Consumer


   RECORD            DISTRIBUTOR          RETAILER
    LABEL


  Manufacturer         Manages and       Sells the product
   makes the          warehouses the      to consumers
    product              product



          INVENTORY MANAGEMENT AND CONTROL
                    IS THE FOUNDATION

                                          © 2007 musicbizclasses.com
Record Label Distribution Overview

• Labels    Create/Package Records:
    – Business objective: Create Marketing buzz and
      Branding and get consumers interested in the music

• Distributors   Move Records from Pressing to Stores:
                                               g
    – Business objective: Generate revenue from stocking
      Music Product in Retail stores (Sell In)

• Retail   Stock Records for Consumer Purchase:
   – Business objective: Generate revenue from selling
     direct to consumers (Sell Through)



                                             © 2007 musicbizclasses.com
Record Label Distribution Overview

  •Distributors are the middlemen between
  the labels and the retail outlets-
                            outlets

  –they exist because they have developed more
        y                  y             p
  efficiency in getting physical Records to record
  stores

•Every established distributor, whether local,
regional or national has a circuit of retail
            national,
outlets they service on a regular basis


                                      © 2007 musicbizclasses.com
Record Label Distributor Services
  1. Order (buy) Records from Labels
  2. Warehouse or store the records that are
     waiting t b shipped
        iti to be hi       d
  3. Track sales via invoicing and sales tracking
  4. Help develop marketing campaigns.
  4 H l d       l        k ti         i
  5. Employ a sales staff to pitch and inform retail
     stores about their inventory
  6. Deliver merchandise, set up displays and
     make sure that inventory is stocked
                               y
  7. Collect left over product that stores are
     unable to sell- “returns”

                                       © 2007 musicbizclasses.com
Distributor Types
•Main Distributor Types:

  – Major Label Distribution

  – Independent Distribution

  – Rack Jobbers

  – One Stops
    One-Stops

  – Online- Digital and Physical
    Online
                                   © 2007 musicbizclasses.com
Distributor Types

Major Label Distribution- Distributors
that are divisions or subsidiaries of Major
Labels.
Labels Usually manage their own label’s
                                     label s
music via Branch Offices across the U.S.



Independent Distributors- Distributors
               Distributors
usually sell smaller and independent
labels into stores– music chains and
mom-and-pop stores-
mom and pop stores generally focus on
a few genres--RED, ADA, IDC, RedEye,
Koch, Burnside, ThirtyTigers

                                     © 2007 musicbizclasses.com
Distributor Types

Rack Jobbers- Distributors that manage music sales
inside Large Retail Chains- have varying payment
agreements with retailers generally focus on Top 40 &
                 retailers-
Pop genres; often rent floor space from retailers-
Anderson Merchandisers, EDGE

One Stops- Distributors that services smaller retail stores
with access to larger distributors catalog- lower minimums-
SuperD, Caroline AEC/IDN
SuperD Caroline, AEC/IDN, Baker & Taylor

Online/Digital Distributors: Distributors that work
exclusively online/with digital formats Typically
                                formats. Typically,
independent–TuneCore, SongCast, The Orchard
Digital Retailers- iTunes, Amazon, ThinkIndie.com,
AmieStreet.com
Digital Platforms- Nimbit, Snocap, ioda
                                                     © 2007 musicbizclasses.com
Other Distributor Types:
D-I-Y:
• Consignment
• Record Sales at gigs
• Record Sales and Downloads via artists’ own
  websites

Miscellaneous:
• Record Clubs- Yourmusic.com
• Re-packagers- TV infomercials- Time-Life
• Cut Out Wholesalers- eBay
  Cut-Out Wholesalers eBay,
  MoonlightSales.com


                                     © 2007 musicbizclasses.com
Retail Music Environment
• 65% of all music sold is Physical Product- Primarily
                                    Product
  CDs
• Bricks-and-Mortar stores 85-90% of all Physical
                                              y
  Record sales are generated in retail stores
Store Types
•“Big Box”- Mass Merchandisers- Target, Wal-Mart, Best Buy
•Small to Mid Size Chain F Y E
 Small Mid-Size Chain- F.Y.E.
•Independent/”Mom and Pop”- Amoeba, Twist &Shout
•Non-Music w/related lifestyle inventory space



                                                 © 2007 musicbizclasses.com
Promotion vs. Publicity




Source: Record Label Marketing, Tom Hutchison

                                                © 2007 musicbizclasses.com
Media Examples




Source: Record Label Marketing, Tom Hutchison

                                                © 2007 musicbizclasses.com
FOR EDUCATIONAL
                                                  USE ONLY


                                                DO NOT COPY OR
                                                  DISTRIBUTE

Source: Record Label Marketing, Tom Hutchison

                                                                 © 2007 musicbizclasses.com

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MUC110 LEC4.Record Promotion and Distribution

  • 1. Promotion and Distribution of Recorded Music © 2007 musicbizclasses.com
  • 2. Record Promotion © 2007 musicbizclasses.com
  • 3. Creating The Demand: The Team Marketing Radio Promotion Artist Development Artist Relations Promotions Product Management Sales Publicity Advertising © 2007 musicbizclasses.com
  • 4. Creating the Demand: Publicity PUBLICITY: The Publicity Team (aka Media Relations): is responsible for procuring free placements of stories, pitches and announcements in the Media Media. Information is placed at: p •Radio •Consumer and Trade Magazines •Newspapers N •Internet •TV (Cable, Network TV Information includes: announcements, reviews, feature articles, i t i ti l interviews, t lk show performance appearances talk h f © 2007 musicbizclasses.com
  • 5. Creating the Demand: Promotions Promotions: The Promotions teams- Radio, Video, New Media, General Promotions and Tour staff are responsible for creating high impact programs for diverse industry partners- radio stations, retailers, websites, websites TV productions Tactics include: –Independent Radio Promotion campaign –Production and Promotion of Videos Production –Contests, Give-aways, In-Store Appearances –Promotional ringtones and downloads –Tour Support © 2007 musicbizclasses.com
  • 6. Creating the Demand: Advertising Advertising: The Advertising team is responsible for purchasing ad space or making targeted media buys. Ads are placed in a variety of media including: –Print- Consumer and Trades journals, magazines, newspapers –Broadcast- TV Cable (Independents), Radio Broadcast TV, (Independents) –In-Store Publications/Retailer Newsletters –Internet © 2007 musicbizclasses.com
  • 7. Creating the Demand: Sales Sales: The Sales team is responsible for working with distributors to inform retailers about new releases Sales uses these tools to help encourage Sell-In: –Discounts –Promo Copies –100% inventory return policy 100% –Retailer support $$ © 2007 musicbizclasses.com
  • 8. RECORD MARKETING TOOLS: PRESS KIT Offers a complete package about an artist and new release Press Kit Elements: • Artist/Band Biographies & Background • CD/single • Digital Artwork Logo, Screen Shots, Head Shots • Testimonials: Industry Awards, Recognitions • Press Release • Press Clippings • “Cut-by-Cut”-Track listing with artist’s p y g personal comments • EPK: • Video Interviews • Video of Performances © 2007 musicbizclasses.com
  • 9. RECORD MAREKTING TOOLS: PRESS RELEASE Creates compelling, timely announcements about artist/new release Press Release Elements: • A Answers the I th Important “W” questions- t t ti Who, What, When, Where, Why • Headline • Dateline • Lead Paragraph • Body Copy • Company Boilerplate • Contact Information © 2007 musicbizclasses.com
  • 10. RECORD MAREKTING TOOLS: ONE SHEET Created b the R C d by h Record L b l to provide d Label id a comprehensive snapshot of information on a new release release. The One Sheet captures the most important data of the upcoming release. And helps “sell” retailers with an outline p of the marketing support available. © 2007 musicbizclasses.com
  • 11. One Sheet Elements: • Album Art and Logo • Storyline/Buzz about Record/Artists • Artist’s Bio • Promotion and Marketing Plans g • Key Selling Points and Sales Tactics • Street date • Contact Info • Track Listings • Tour Plans • B Code Bar C d © 2007 musicbizclasses.com
  • 12. Record Distribution © 2007 musicbizclasses.com
  • 13. Distribution What is Distribution? • the commercial sales process of moving goods from product manufacturers to end-consumers d Goals 1)Sell maximum # of units (physical and digital) g ) 2)Service retail accounts for repeat business © 2007 musicbizclasses.com
  • 14. Distribution Moving product from Manufacturer to Consumer RECORD DISTRIBUTOR RETAILER LABEL Manufacturer Manages and Sells the product makes the warehouses the to consumers product product INVENTORY MANAGEMENT AND CONTROL IS THE FOUNDATION © 2007 musicbizclasses.com
  • 15. Record Label Distribution Overview • Labels Create/Package Records: – Business objective: Create Marketing buzz and Branding and get consumers interested in the music • Distributors Move Records from Pressing to Stores: g – Business objective: Generate revenue from stocking Music Product in Retail stores (Sell In) • Retail Stock Records for Consumer Purchase: – Business objective: Generate revenue from selling direct to consumers (Sell Through) © 2007 musicbizclasses.com
  • 16. Record Label Distribution Overview •Distributors are the middlemen between the labels and the retail outlets- outlets –they exist because they have developed more y y p efficiency in getting physical Records to record stores •Every established distributor, whether local, regional or national has a circuit of retail national, outlets they service on a regular basis © 2007 musicbizclasses.com
  • 17. Record Label Distributor Services 1. Order (buy) Records from Labels 2. Warehouse or store the records that are waiting t b shipped iti to be hi d 3. Track sales via invoicing and sales tracking 4. Help develop marketing campaigns. 4 H l d l k ti i 5. Employ a sales staff to pitch and inform retail stores about their inventory 6. Deliver merchandise, set up displays and make sure that inventory is stocked y 7. Collect left over product that stores are unable to sell- “returns” © 2007 musicbizclasses.com
  • 18. Distributor Types •Main Distributor Types: – Major Label Distribution – Independent Distribution – Rack Jobbers – One Stops One-Stops – Online- Digital and Physical Online © 2007 musicbizclasses.com
  • 19. Distributor Types Major Label Distribution- Distributors that are divisions or subsidiaries of Major Labels. Labels Usually manage their own label’s label s music via Branch Offices across the U.S. Independent Distributors- Distributors Distributors usually sell smaller and independent labels into stores– music chains and mom-and-pop stores- mom and pop stores generally focus on a few genres--RED, ADA, IDC, RedEye, Koch, Burnside, ThirtyTigers © 2007 musicbizclasses.com
  • 20. Distributor Types Rack Jobbers- Distributors that manage music sales inside Large Retail Chains- have varying payment agreements with retailers generally focus on Top 40 & retailers- Pop genres; often rent floor space from retailers- Anderson Merchandisers, EDGE One Stops- Distributors that services smaller retail stores with access to larger distributors catalog- lower minimums- SuperD, Caroline AEC/IDN SuperD Caroline, AEC/IDN, Baker & Taylor Online/Digital Distributors: Distributors that work exclusively online/with digital formats Typically formats. Typically, independent–TuneCore, SongCast, The Orchard Digital Retailers- iTunes, Amazon, ThinkIndie.com, AmieStreet.com Digital Platforms- Nimbit, Snocap, ioda © 2007 musicbizclasses.com
  • 21. Other Distributor Types: D-I-Y: • Consignment • Record Sales at gigs • Record Sales and Downloads via artists’ own websites Miscellaneous: • Record Clubs- Yourmusic.com • Re-packagers- TV infomercials- Time-Life • Cut Out Wholesalers- eBay Cut-Out Wholesalers eBay, MoonlightSales.com © 2007 musicbizclasses.com
  • 22. Retail Music Environment • 65% of all music sold is Physical Product- Primarily Product CDs • Bricks-and-Mortar stores 85-90% of all Physical y Record sales are generated in retail stores Store Types •“Big Box”- Mass Merchandisers- Target, Wal-Mart, Best Buy •Small to Mid Size Chain F Y E Small Mid-Size Chain- F.Y.E. •Independent/”Mom and Pop”- Amoeba, Twist &Shout •Non-Music w/related lifestyle inventory space © 2007 musicbizclasses.com
  • 23. Promotion vs. Publicity Source: Record Label Marketing, Tom Hutchison © 2007 musicbizclasses.com
  • 24. Media Examples Source: Record Label Marketing, Tom Hutchison © 2007 musicbizclasses.com
  • 25. FOR EDUCATIONAL USE ONLY DO NOT COPY OR DISTRIBUTE Source: Record Label Marketing, Tom Hutchison © 2007 musicbizclasses.com