This is an overview from the Pacific Music Business Camp kickoff class that introduced students to some of the fundamental players, concepts and conventions within the music business.

2. Who’s Who?
 Dana Myers – entertainment lawyer and criminal
attorney, music manager, Pacific alumni
 Keith Hatschek – program
director, author, producer, engineer, musician

3. What’s Wrong with This
Graphic?
Source:
Nielsen/
Soundscan

4. Out with the Old, In with
the New
 Traditional record sales are only a small part of
overall MUSIC industry today
 Some artists, songwriters, managers, concert
promoters are all still making money – how?
 Success no longer requires major corporate backing
 But it can be a useful add-on if done strategically
(Examples: Macklemore & Death Cab)

5. Why Clout Matters
 What is clout?
 Who has it?
 Who doesn’t
 How to get it
 What it will allow you to do

6. New
Models/Metrics
 Amanda Palmer – Kickstarter
 Jay-Z + Samsung – Instant Platinum
 Justin Bieber – Beliebers “fanatic fans”

7. Sources of Income
 Live shows
 Have a Billboard – BoxScore data
 Recorded music
 Merch
 Other

8. Where Does the $$ Go?
 Solo artist, house concert, no band, use your parent’s car – you
keep 100%
 That is not the norm!
 Expense areas
 Manager
 Venue share
 Agent
 Attorney
 Sound & Lights
 Roadies
 Food, instruments, insurance, marketing, promotion, videos, et
c.
 What else can you think of?

9. Gross vs. Net
 Total revenue from a gig, album, tour, or other event
is called the “gross” earnings
 What the artist puts in her/his pocket after all
expenses have been paid is the “net”
 Many artists have earned millions and been forced
into bankruptcy due to poor management, under
what conditions artists are eventually paid
 Never be afraid to ask, “What do you expect I will
net from this opportunity?”

10. Live Revenue Splits
 Bruno Mars - $65 ticket
 Venue/Promoter = 38% ($24.70)
 Artist = 34% ($22.10)
 Ticketmaster = 10% ($6.50)
 Facility fee = 8% ($5.20)
 Opening act = 7% ($4.55)
 Taxes = 3% ($1.95)

11. CD Sales Split – Traditional
retail
 J. Cole Born Sinner - #1 on Billboard 200 this week
 SRLP $16.98 (consumer pays)
 Published Price to Dealers $12.05 (Target pays)
 Price paid by Distributor $8.45 (UMGD pays)
 Label pays out
 $1.25 to artist
 $1.00 to songwriters
 Rest goes to pay off album’s cost
to produce and market
(aka “recoupment”)

12. Merch Madness
 Survey of class – how much does stuff cost?
 $__ is a great price on a concert tee!
 Revenue split
 Sales tax withheld
 Venue share (for allowing you to sell it)
 Merch share (for bankrolling your inventory)
 Artist share – what you get to keep (minus your merch
table staff payroll)

13. Forbes 2012 Top Earners
 Dr. Dre $110MM
 Roger Waters $88MM
 Elton John $80MM
 U2 $78MM
 Take That $61MM
 Bon Jovi $60MM
 Britney Spears $58MM
 Paul McCartney $57MM
 Taylor Swift $57MM
 Justin Bieber $55MM
 Toby Keith $55MM
 What does this mean to
You?

14. DIY Artist Model
 Do-It-Yourself (DIY) Artists take control of their
own careers
 This means:
 Creative control
 Learning the business aspects
 Building relationships
 Learning by doing! (Make that CD, book a show, hand
paint your t-shirts, make your EPK, etc.)

15. DIY Benefits
 You’re the boss!
 You learn what works and why
 What doesn’t work and how to improve
 You keep any earnings (but need to reinvest)
 Fun, rewarding, empowering

16. Music Biz Camp Goals
 This week you will study and learn:
 Production techniques
 Concert production and marketing
 Social Media for artists
 PR and Marketing
 Copyrights and “Wrongs” – protect your music
 Live Sound
 Careers in the Music Industry
. . . And make new friends while having fun!