Podcast Summary
Navigating the Complexities of the Music Industry with Ernest Jackson: The music industry is a complex web of players and revenue streams, but a determined team can help a struggling artist find success.
The podcast "Here and Now Anytime" from NPR and WBUR offers a refreshing and unexpected perspective on news stories in just 30 minutes each day. The hosts are reviving a forgotten song from the 1970s by a struggling singer named Ernest Jackson, and they've decided to become his record label. In episode two, they fly to Baton Rouge to present him with a contract, but they soon realize that the music industry is more complicated than they anticipated. They aim to get Ernest's song, "Inflation," onto every music platform and make him a star, but the process involves many players who each take a fraction of the revenue. This episode highlights the challenges they face in the music business and their determination to help Ernest succeed.
Starting a Record Label: More Than Just Releasing a Song: To start a record label, register with official music rights organizations, record a song, and determine ownership of the song's rights.
Starting a record label involves more than just releasing a song. Jen White from 1A, a podcast that provides news and stories, decided to start a label, Planet Money Records, and release an old recording by using the expertise of a veteran music lawyer, Don Passman. While they had the recording ready, they discovered that being a label involves registering with official music rights organizations, recording a song (which they already had), and figuring out who owns the rights to the song. The distribution of rights can be complex, as songs are split up into shares, with the songwriter usually getting the most. Don Passman, who has represented big names like Stevie Wonder, Taylor Swift, and Adele, emphasized that while they were doing something unusual, there was nothing wrong with their approach. The process of becoming a label involves formalizing the business and determining ownership of the song's rights.
Navigating Music Ownership and Record Deals: Musicians need to understand complexities of music ownership and record deals, including potential involvement of multiple parties and unequal financial arrangements.
The music industry can be complex when it comes to song ownership and record deals. In the discussion, it was mentioned that a group of musicians, including Ernest, had written and performed a song together called "Inflation." While Ernest wrote the song, the others played together regularly and considered it a band project. However, technically, none of them owned the song. If the musicians wanted to proceed with a record deal, they would need to negotiate an equal share. The music lawyers suggested contacting all the old band members to ensure a smooth deal. However, if the musicians were difficult and wanted a piece of the song, a deal would need to be made. The typical record deal for an established musician is that the artist gets 20% of what a song makes, while the label gets 80%. This seemed unfair to the musicians, who wanted to do a nice thing for Ernest. They decided to act as both the record label and the publishing company, which would give them more pots of money to pull from if the song made money. However, the deal was criticized as being unfair to the record label, as they would be doing all the behind-the-scenes work and taking on the legal and financial risk. Despite this, the musicians were determined to give Ernest a larger share of the money than he would get from a typical record deal. Overall, the discussion highlighted the complexity of the music industry and the importance of understanding the various roles and financial arrangements involved.
Renting a Song for Streaming: A Unique Business Model: By renting a song from an artist and distributing it across streaming platforms, a team can help the artist gain exposure and potentially earn modest profits from royalties, with revenue ranging from a third of a penny to a full penny per stream.
In the modern music industry, artists often don't receive significant financial gains from record labels upfront, but instead earn royalties based on the number of streams their music receives. In this unique deal, our team is renting a song from an artist named Ernest called "Inflation," and we're distributing it across various music streaming platforms. Our goal is to reach a million streams to make a modest profit. The revenue from streaming platforms pays out between a third of a penny and a full penny per play, and the artist typically receives around 80% of that amount. Our initial calculation showed that we would make $4,000 if a million people listened to the song. However, the revenue is split among various parties, so the actual profit would be less. Despite the modest potential earnings, we aim to reach this goal to help Ernest gain exposure and potentially build a successful music career.
Our perception of value is based on collective agreement: The value of money, creative work, and life experiences is subjective and shaped by societal norms and agreements
Our perception of value, whether it's the value of money or the value of creative work, is based on collective agreement and understanding. On the Code Switch Podcast, conversations about race are ongoing and relevant, providing new perspectives and stories every week. In the world of finance, a dollar may seem like a fixed value, but it's actually a construct that we collectively create and agree upon. Similarly, in the music industry, the value of a musician's contribution to a song is not always equal, and the concept of "session musicians" allows for a flat fee for their services. And in life, sometimes we receive unexpected rewards or benefits, like a "Lenya," adding a little extra joy to our experiences.
The need for clear communication and contracts in music industry: Clear communication and detailed contracts are crucial in the music industry to avoid confusion and ensure fair compensation for all parties involved.
The importance of clear communication and contracts in the music industry was highlighted in this conversation. The guitarist, Freddy, initially thought the process of releasing a song for Ernest would be simple, but the need for a waiver and potential contracts complicated matters. Freddy was surprised by the sudden need for legal paperwork and expressed reluctance to sign without consulting his lawyer. The band, who assumed they had sent a fee with the waiver, later discovered they had not, leading to confusion and dissatisfaction. Kinney, the keyboardist, emphasized the significance of ownership and control over their musical contributions. While they might have been considered session musicians, they believed their unique contributions merited a larger share in the publishing rights. The experience underscores the importance of clear communication, detailed contracts, and a shared understanding of roles and compensation in the music industry.
Two Types of Royalties: Sound Recording and Publishing: Musicians can earn royalties from both the recording and publishing of a song. Publishing royalties can generate substantial income, but artists should negotiate shares among themselves to ensure fairness.
When it comes to owning rights to a song, there are two distinct types of royalties: one for the sound recording and another for the song's publishing. The sound recording royalty is a straightforward copyright on the recording itself, while the publishing royalty is more complex. This publishing royalty can generate significant income if the song becomes a hit, and artists in the know often aim to secure a piece of this pie for themselves. However, it's essential to note that this doesn't come at the expense of the songwriter's earnings. Instead, it's an additional revenue stream for the musicians involved in the recording process. Despite the potential for substantial earnings, music lawyers often advise against labels getting involved in determining the song's shares. Instead, the band should negotiate among themselves to ensure everyone is satisfied. Ultimately, the goal is to create a fair agreement that benefits all parties involved.
Royalty split and financial challenges in the music industry: Band agreed on royalty split, Ernest received largest share, spent over $10,000 on lawyers' fees, hoped for hit song to cover costs, announced single 'Inflation', aimed for 5,000 streams in first week on Spotify.
The music industry involves complex royalty structures and significant financial investments, even for independent artists. In the discussed scenario, the band agreed on a split of royalties from various sources, with Ernest receiving the largest share. The public performance royalty on the underlying music composition was highlighted as an example, with Ernest getting 67.5%, the band 17.5%, and the record label 15%. The band had already spent over $10,000 on lawyers' fees and was hoping for a hit song to cover these costs and more. The release of their single, "Inflation," was announced, and they encouraged listeners to stream it on various platforms to help build its popularity. Reaching 5,000 streams in the first week on Spotify was a key goal to qualify for promotional opportunities. Despite the challenges and expenses, the band, led by Ernest, remained optimistic and committed to their music.
NPR's Diverse Podcast Offerings: NPR uses podcasts like 'Planet Money' to explore topics beyond news, acknowledges team contributions, and promotes other podcasts for political and diverse content.
NPR is using various podcasts, including "Planet Money," to engage listeners with different topics beyond just the news. The team behind "Planet Money" discussed their process of producing a podcast about a song called "Inflation" and encouraged listeners to stream it. They acknowledged the contributions of several team members and thanked consultants like Robert Smith. Additionally, they promoted the NPR Politics Podcast for political news coverage and the "here and now anytime" podcast for stories on various topics beyond politics. Overall, NPR is using podcasts to provide diverse content and engage listeners in various aspects of life.
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