The document summarizes key topics related to the sound recording and movie industries, including: - Piracy and its impact on the music industry. - The Jazz Singer, the first full-length sound film featuring Al Jolson, which established sound technology and popularity in films. - How aspiring filmmakers moved west to escape lawyers, take advantage of weather and varied scenery. - Studios make money from box office revenue, DVD/video sales, television/cable releases, foreign markets, merchandising, and independent film distribution.

1. The Entertainers: Ch 3 - Sound Recording and Ch 7 - Movies While these slides were created using material from the above textbook, they are not official presentations from the publisher, Bedford/St. Martin’s. In addition, many slides may contain professor’s supplemental notes on various media topics.

2. Piracy The Jazz Singer Business of Sound Recordings The Move West Larry Lessig Video: Laws That Choke Creativity Movie Economics: Ways Studios Make Money, The Blockbuster Obsession & New Online Trends

3. Changing Sound Recordings

4. Artist development (A&R agents) Technical facilities: technical production specialists Sales and distribution Direct retail Music clubs Internet sales Advertising and promotion Radio MTV Administrative operations Who Works In Music?

5. Annual Vinyl, Tape, CD, Mobile and Digital Sales p. 76

6. Business of Sound Recording U.S. Market Share of the Major Labels in the Recording Industry p. 96

7. Business of Sound Recording p. 98

8. Business of Sound Recording p. 99 Rapper Eminem 2009/2010 Court Case Over Digital Royalties

9. 10 billionth song sold by Apple's iTunes The Washington Post The Associated Press Friday, February 26, 2010; 7:18 AM NEW YORK -- Apple's iTunes has sold its 10 billionth tune. Apple said Thursday that its online music store crossed the threshold Wednesday when 71-year-old Louie Sulcer of Woodstock, Ga., bought "Guess Things Happen That Way" by Johnny Cash. iTunes had promoted the 10 billion mark and celebrated the milestone by giving Sulcer a $10,000 iTunes gift card. Introduced in 2003, iTunes became the top overall music retailer in the U.S. in 2008. Top 20 most downloaded songs of all time so far…

10. Piracy – the illegal uploading, downloading, or streaming of copyrighted material. “Our best guess is that for every legal song download there are 75 illegal downloads. --Gene Munster, music industry analyst, 2006 MP3 – enables music to be compressed into smaller, more manageable files.

11. Larry Lessig on Laws that Choke Creativity http://www.ted.com/talks/larry_lessig_says_the_law_is_strangling_creativity.html Highly recommended viewing…

12. “The movie is not only a supreme expression of mechanism, but paradoxically it offers as product the most magical of consumer commodities, namely dreams.” Marshall McLuhan

14. Though mostly a silent film, with only 354 words of spoken dialogue and a few songs, it established both the technology and popularity of sound. Some audiences stood and applauded when they heard the dialogue.“Wait a minute, wait a minute, you ain’t heard nothin’ yet.” –First words spoken by Al Jolson in The Jazz Singer

15. The Move West Aspiring filmmakers moved west for three main reasons: to escape Edison’s New York lawyers to take advantage of great weather to take advantage of varied scenery (mountains, ocean)

16. Movie Economics p. 240Market Share of U.S. Film Studios and Distributors in 2008

17. Movie Economics p. 239Top Movie Theater Chains in North America

18. Movie Economics Vertical Integration – studios dominate all three essential levels: production, distribution, and exhibition. Oligopoly – a few firms control the bulk of the business Synergy: The promotion and sale of a product throughout the various subsidiaries of the media conglomerate. Companies promote the new movie and: The book form Soundtrack T-shirts Web site Toy action figures Internet Movie Database (IMDB) All Time Top Gross List

19. Movie Economics: Ways Studios Make Money Six Ways to Make Money: Studios get 40% of box office revenue (the theaters get 60%) DVDs and rental “windows” Release on cable and television outlets, including pay-per-view, video-on-demand, premium cable Foreign markets Distribution of the work of independent producers and filmmakers, who need to hire the studios to gain wide circulation Merchandise licensing and product placement

20. Movie Economics 80-90% of newly released movies movies fail to make money at the box office As a result, studios hope for one major hit to offset the losses of the other films Studios are so desperate for the next blockbuster, they lose sight of (and funding for) other, worthy pictures. Characteristics of the “blockbuster”: Young adults are target audience Action-packed Big-budget releases Heavy merchandising tie-ins Possibility of sequels

21. Movie Economics – New Online Trends With broadband Internet, movie watchers likely to get films from the Web. More and more online portals to watch films Apple’s iTunes store began selling films in 2006, renting in 2008 Hulu: Free streaming TV and movie clips Netflix: “Instant watch” feature How often do you watch movies online?