Thinking Different(ly): Creative Music in the Digital Economy Presentation for the Royal College of Music - Jan 15, 2013

1. Thinking Different(ly) -
Creative Music In the
Digital Economy
Eric Jensen
Royal College of Music
Stockholm, Sweden
January 15, 2013
http://ewjensen.com
eric@ewjensen.com
Thursday, January 17, 13

2. Eric Jensen Berklee College of Music
http://ewjensen.com Jensen Sound Productions
Liquid Audio
eric@ewjensen.com
Thursday, January 17, 13

3. Musical entrepreneurship
Music industry business rules
- tapping multiple income
streams
A look toward the future...
Thursday, January 17, 13

4. “I saw the angel
in the marble
and carved until
I set him free.”
- Michelangelo
Thursday, January 17, 13

5. “You can be the most creative
software designer in the world. But if
you don’t know how to make money,
you’re never going to have much of a
business or a whole lot of autonomy.”
- Jason Fried co-founder and CEO, 37signals
Thursday, January 17, 13

6. “This changing landscape is not
necessarily bad news for
musicians... There have never
been more opportunities for a
musician to reach an audience,
and that is what we have
always wanted to do.”
- David Byrne
Thursday, January 17, 13

7. You are the CEO of
your music career
Thursday, January 17, 13

8. If you are not proactively
overseeing your career...
...someone else is
doing it for you
Thursday, January 17, 13

9. Why do artists struggle
with “The Business”?
Thursday, January 17, 13

10. Negativity Bias
Complex business
rules, capital intensive
and...
We work differently...
Thursday, January 17, 13

11. Making a great product
Thursday, January 17, 13

12. Identify need/problem
Create an innovative solution
Check business model
Execute
Thursday, January 17, 13

13. Artists often create the product
first and then figure out how to
make money with it later....
photo by Giovanni Gallucci
Thursday, January 17, 13

14. Neara Russell
Thursday, January 17, 13

15. Music publishing
company at age 15 ASCAP Plus Awards
Presidential Scholarship Two self-produced
albums
2010...Neara moves to Los Angeles...
Yamaha endorsee - since 2005
2013
Touring, session work,
Keys/vocals/programming,
teaching, income from
Hollywood Records artist music libraries and
Bridgit Mendler
concert works...
Keys/vocals/programming,
Sony Music artist BC Jean
Thursday, January 17, 13

16. “This play-along “Joy Luck” compilation
gets its inspiration from there being a
need for a modern jazz-based trio “music
minus one” offering that was --- relevant
to the playing challenges and issues that
today’s students and professionals
encounter every day in their musical lives.”
- Peter Erskine
Thursday, January 17, 13

17. Thursday, January 17, 13

18. Seth Godin on Business
Models
1. What compelling reason
exists for people to give
you money? (or votes or
donations)
2. How do you acquire
what you're selling for
less than it costs to sell
it?
Thursday, January 17, 13

19. “Creating value” with music
Creative Product or Business to
Collaboration Experience Business
Licensing/
Sideman Recordings
advertising
Session By-products
Business
musician Performing
partnerships
Composer Teaching
Record deals
Thursday, January 17, 13

20. Seth Godin on Business
Models
3. What structural insulation
do you have from
relentless commoditization
and a price war?
4. How will strangers find
out about the business and
decide to become
customers?
Thursday, January 17, 13

21. Following the money up to the
top of the chain can give you a
better sense of where you fit in...
...and show you new ways to
create value
Thursday, January 17, 13

22. Disruptive innovation
Thursday, January 17, 13

23. A disruptive innovation can
ultimately take over a market that is
currently successful
Identify emerging disruptive trends
and plan accordingly
Disruption creates new markets and
opportunities within existing
markets
Thursday, January 17, 13

24. Frank Briggs
Artist www.frankbriggs.com
Educator
Producer
and...he is looking toward the future
Thursday, January 17, 13

25. HTML 5: Responsive Design
Tablet sales expected to
exceed 100 million in 2013
Web or Apps?
How About Both.
Years of educational
material in an immersive,
interactive experience
Innovative business model
Thursday, January 17, 13

26. Thursday, January 17, 13

27. Network of Los Angeles
session musicians created
by drummer Blake Paulson
Founded in 2007, the
team has grown from 3
musicians to 13 with
backups and an extended
network of strings, horn,
singers, and specialty
instruments.
Thursday, January 17, 13

28. The Backliners simplify
booking for artists and
labels and also create
connections between
musicians and help to
balance road work and
session gigs.
Thursday, January 17, 13

29. Thursday, January 17, 13

30. Thursday, January 17, 13

31. Thursday, January 17, 13

32. SIX DISTRIBUTION MODELS
1. 360° Deal
2. Standard Royalty Deal
3. License Deal
4. Profit-Share Deal
5. P & D (or M & D) Deal
6. Self-Distribution
Thursday, January 17, 13

33. money.futureofmusic.org
FMC has identified 42 unique revenue
streams for musicians (see handout)
Thursday, January 17, 13

34. Thursday, January 17, 13

35. Thursday, January 17, 13

36. Digital streams are
beginning to generate real
money...
SoundExchange is sitting on
approx. $300 million in
undistributed royalties
Thursday, January 17, 13

37. “For me, music is becoming
dematerialized, a state that is
more truthful to it’s nature, I
suspect. Technology has
brought us full circle.”
- David Byrne
Thursday, January 17, 13

38. Putting a bucket under every
drip...
Thursday, January 17, 13

39. Every recording embodies two copyrights
Underlying
composition Sound recording
(music + lyrics) SR
PA
Recording
Who gets the
Who gets the
licensing revenue?
licensing revenue?
• Songwriters/ • Performers
Composers • SR Copyright
owner (usually a
• Publishers record label)
This slide is recreation of a FMC image
Thursday, January 17, 13

40. Composition Copyright
Mechanical Royalties from record sales for
composition used in sound recordings. Paid
to publishers/composers
Performance Royalty for public performance
on radio, television, live venues, etc.
Thursday, January 17, 13

41. Sound recording
copyright
Artist Royalty - paid to recording artist by
the record label based on contract terms
Digital streams (Pandora, satellite radio, etc.)
generate royalties distributed to label,
performer and sidemen
Licensing sound recording
Thursday, January 17, 13

42. Sync licenses
A sync license is a separate license for
synchronizing a recording with film
Must be negotiated separately with
publisher(s) and record label
Music supervisors prefer to work with
people who control both copyrights
Thursday, January 17, 13

43. Production Music
Libraries
Mitch Coodley: The Buzz
Working guitarist with:
Gary Burton, Pat Metheny, Mike
Gibbs, Donald Byrd, Ben. E King,
Michael Urbaniak, Jerry Bergonzi.
Thursday, January 17, 13

44. Production Music
Libraries
Artistry is not just self-expression.
It's feeling filtered through
discipline.
You always need to answer the question
about your music: "Why does anyone
want to listen to this?"
Thursday, January 17, 13

45. Production Music
Libraries
If you are expecting to make a living you
need a large audience or plenty of clients.
You must be pleasing people, not only
yourself.
That doesn't just mean you give people what
they want. In some cases you show them
something they didn't know they wanted,
because it's so novel, well-crafted, fresh,
evocative, original, and compelling. But your
product must sell.
Thursday, January 17, 13

46. Production Music
Libraries
The entire music industry has discovered and
flooded the world of licensed music. 10 and 15
years ago production music composers and
companies delivered most of the licensed music
on TV. Now we have to compete with every
commercial artist and act.
Thursday, January 17, 13

47. Production Music
Libraries
The opportunity is there for an artist,
composer, or band to have music licensed and
performed on TV, if they understand why certain
tracks get used, and by whom. Keep in mind
that there are dozens of major publishers that
understand this and A&R their writers with
licensing in mind. So one needs to have serious
quality on all levels and pay attention to trends
and specific usage situations.
Thursday, January 17, 13

48. Thursday, January 17, 13

49. Tom Strahle
Session Guitarist
Justin Bieber
Taylor Swift
Marco Antonio Solis
Taboo (Black Eyed Peas)
Pitbull
T-Pain
music for TV/Film -
NBC, CBS, MTV, Lifetime
Thursday, January 17, 13

50. Guitarist - Composer - Songwriter
Church Musician - Teacher - Clinician
My income has shifted radically from gigs and a few
sessions, to half royalties and gigs/sessions; overall more
than doubling in the last five years
One new stream has been YouTube & blog advertising
revenue. While little more than a trickle at this point, I
know others who have been able to quit their day gigs
because of this revenue
Thursday, January 17, 13

51. Special Payments
Profit-sharing fund establish by the
American Federation of Musicians
for musicians’ work in TV and film
Sidelining: Playing a musician “extra” in
a television or film production. Eligible
for Special Payments
Thursday, January 17, 13

52. Endorsements and
Sponsorships
“If you’re good, and can teach/play and/or
have a name gig, manufacturers will usually
give you free or discounted instruments and
accessories and may even contribute to
clinics and master classes.” - Frank Briggs
Thursday, January 17, 13

53. Moonalice
Thursday, January 17, 13

54. Thursday, January 17, 13

55. Grants and
Fundraising
Platforms
Thursday, January 17, 13

56. Community Initiatives
Thursday, January 17, 13

57. Thursday, January 17, 13

58. “You have something
very special to offer that
nobody else can. And
that is something very
beautiful that you can
bring to the world....it is
your own voice.”
- Award-winning producer,
composer, and songwriter
Daniel Indart
Thursday, January 17, 13

59. Daniel Indart Selected music credits...
Producer Kingpin
Composer Ricky Martin The Sopranos
Songwriter Placido Domingo CSI
Educator Quincy Jones The Sentinel
Sons of Anarchy
Weeds
Dexter
..over 1,000 commercials
Latin Music Specialists (LMS)
Record label and licensing
company
Professor of Music Entrepreneurship and
Production, Shepherd University
Thursday, January 17, 13

60. Daniel Indart
Originally from South America
After college produced music for Latin pop and
advertising markets
Developed record label and music licensing arm
Expanded to multiple cities
Television and film work has led to broader media
production and business opportunities
Thursday, January 17, 13

61. Daniel Indart
Vision for music
Cross-functional learning
education: environment...
Multiple career skillsets -
Music is one piece of Scriptwriting
the larger storytelling Digital animation
Web design
industry
Film production
Thursday, January 17, 13

62. Ken Rosser
Freelance guitarist and full-time guitar instructor at GIT
(Musicians Institute) in Hollywood who has worked with
artists ranging from Smokey Robinson, Todd Rundgren, The
Grandmothers, Sussan Deyhim, Samite, Billy Higgins to John
Cage and Glenn Branca.
I believe the days of the well-rounded freelancer are on the wane and
stylistic specialists will be the ones in higher demand in the future.
Musicians who can double in software-based skills will have an advantage.
There will always be a demand for someone to play a solo guitar rendition
of ‘As Time Goes By’ for your wedding reception but the musician of
tomorrow will follow that up with running the DJ/Dance set from their
laptop.
Thursday, January 17, 13

63. Find your niche
Think like an
entrepreneur
Develop multiple
skillsets & look toward
the future
Master the rules of the
Music Business
and most important...
Thursday, January 17, 13

64. Thinking Different(ly) -
Creative Music In the
Digital Economy
Eric Jensen
Royal College of Music
Stockholm, Sweden
January 15, 2013
http://ewjensen.com
eric@ewjensen.com
Thursday, January 17, 13