You Need to Know About the Music Business

407 Pages·2014·2.95 MB·English

by  Donald S. Passman

All You Need to Know About the Music Business
Donald S. Passman
Copyright
All You Need to Know About the Music Business
Copyright © 1991, 1994, 1997, 2000, 2003, 2006, 2009 by Donald S. Passman
Cover art to the electronic edition copyright © 2010 by RosettaBooks, LLC
All rights reserved, including the right to reproduce this book or portions thereof in any form whatsoever.
First electronic edition published 2010 by RosettaBooks LLC, New York.
ISBN ePub edition: 9780795309779
Did You Know That…
Most record deals don’t require the record company even to make a record, much less to release it?
You don’t have to register in Washington to get a copyright?
If we write a song together, and you write only the lyrics and I write only the music, each of us owns a piece of
the music and each of us owns a piece of the lyrics? And that neither of us can use just the music, or just the
lyrics, without paying the other?
Prior to 1972, the United States had no law prohibiting the unauthorized reproduction of records?
Some (cid:999)lm music composers can’t even write music, much less create the arrangements for each instrument of an
orchestra?
A brain surgeon and a rock star have something in common?
To my precious Shana,
and our boys, Danny, David, Josh, and Jordan
Acknowledgments
PLEASE READ MY THANK-YOUS. I KNOW IT’S A BUNCH OF PEOPLE YOU’VE PROBABLY
NEVER HEARD OF, BUT THINK HOW MUCH YOU’D WANT OTHER PEOPLE TO READ IT IF
YOUR NAME WAS HERE.
No creative work is ever the product of one person alone (no matter how tempting it is to
believe our own hype), and I want to acknowledge and thank all the following people for
their inspiration and help:
Payson Wolff and Bruce Ramer, my mentors and spiritual brothers.
Bea Shaw, my mommy, who helped edit the (cid:999)rst edition, and who paid for my (cid:999)rst soft-
drink stand.
Snuff Garrett, for believing in me early on.
Mike Gorfaine and R. Diane McKain, for their invaluable advice on film and TV music.
Gregg Harrison and Gene Salomon, for their input, and for always making me look good.
Rob Light, for help with the touring section.
Ed Ritvo, for the confidence to do all sorts of things.
Steve Bigger and Larry Apolzon, for help with protecting the rights in group names.
Chris Castle, for help with the classical music chapter.
Dave Dunton, Dominick Anfuso, and Wylie O’Sullivan, for getting this book into the
hands of readers.
Alan Garner, for his extraordinary communication skills and advice on conversation,
books, and salesmanship.
Kim Mitchell, my incredibly indispensable assistant.
Jules Levine and Corky, for having bulldogs.
In addition, the following people (in alphabetical order) generously gave the bene(cid:999)t of
their expertise: David Altschul, Jill Berliner, Don Biederman, Kevin Breen, Nancy Chapman,
David Cohen, Gary Cohen, Glenn Delgado, Bruce Eisenberg, Steven Fabrizio, Gary Ford,
Russell Frackman, Dell Furano, Steve Gawley, Neil Gillis, Mark Goldstein, Lauren Gordon,
Trudy Green, Je(cid:1009) Hill, Zach Horowitz, Cathy Jacobson, Howard Kaufman, Larry Kenswil,
Steve Lyon, Jay Morgenstern, Jay Murray, Michael Ostro(cid:1009), Ed Pierson, Peter Reichardt,
Bruce Resniko(cid:1009), Jack Rosner, Tom Ross, Joe Salvo, Rose Schwartz, Joel Sill, Patricia Smith,
Lon Sobel, Sandy Tanaka, Lance Tendler, Ray Tisdale, Tracie Verlinde, Wayne Volat, Lenny
Waronker, and Ron Wilcox.
FOR THIS SEVENTH EDITION, special thanks to (alphabetically): Robert Allen, Christos
Badavas, Nancy Chapman, Kyle Funn, Susan Genco, Peter Grosslight, Rand Ho(cid:1009)man, Mike
Huppe, Robert Kraft, Michael Kushner, Dina LaPolt, Peter Lubin, Craig Marshall, Bob
Philpot, Richard Poirier, Jon Potter, Andrew Ross, Bruce Scavuzzo, Steve Schnur, Cary
Sherman, Michael Simon, John Simson, Lisa Thomas, and Luke Wood.
But most especially, thanks to all the garage bands—you’re the lifeblood of our business.
Introduction to the Seventh Edition
Welcome, welcome. The music industry has been through a few million changes since we
last met. Piracy is still running rampant, CD sales are dying, and digital sales aren’t making
up the loss from CDs. Record companies are losing money, (cid:999)ring people, and generally
panicking. On top of that, the world economy is sucking the big one. Just the things you
need for a fun picnic.
But there’s some good news on the horizon. Digital delivery of music is becoming a larger
percentage of the business (okay, so part of that is because CDs are dying so fast that
they’re a smaller percentage of the total, but there are a lot more digital dollars coming in).
Demand for music is at an all-time high (even if the pirates are supplying a lot of it), and
we’re seeing new ways to deliver music (such as the Internet and cell phones), which
means music is now accessible to people who’d never go into a record store. It also means
artists can get directly to their fans in ways never before possible.
As these new ways to exploit music arrive, you might wonder how artists get paid. Well,
my friend, you’ve come to the right place. The book in your hands has the latest scoop on
all these new-fangled gizmos. And at no extra charge (if you act RIGHT NOW), there’s an
update of what’s happening with traditional music business deals—recording, songwriting,
merchandising, touring, and so forth.
One of the biggest changes since the last edition of this book is the advent of “360 deals.”
For the (cid:999)rst time in history, virtually all the record companies are insisting on a piece of
artists’ income from nonrecord sources. In other words, record companies want to share in
artists’ earnings from songwriting, touring, merchandising, fan clubs, and so forth. Why
would the companies do such a thing? Why would artists agree? Since digital distribution is
easier than ever, do artists need a record company at all?
Right this way, folks. All the secrets are revealed just inside the tent.
P.S. Congrats if you read this. It means you’re a real Go-Getter, since most folks skip the
introduction to books.
IMPORTANT
The materials in this book represent the opinions of the author and may not be applicable
to all situations. Many circumstances appear similar, but di(cid:1009)er in respects that may be
legally signi(cid:999)cant. In addition, laws and customs change over time, and by necessity of the
lapse in time between the writing and printing of this book, some aspects may be out of
date even upon (cid:999)rst publication. Accordingly, the author and publisher assume no
responsibility for actions taken by readers based upon the advice o(cid:1009)ered in this book. Each
reader should use caution in applying any material contained in this book to his or her
speci(cid:999)c circumstance, and should seek the advice of an appropriate professional. (Author’s
note: Use your common sense and be careful!)
Contents
1. First Steps
PART 1
Your Team of Advisors
2. How to Pick a Team
Getting Your Team Together
Business Philosophy
Hiring a Team
Changing a Team Member
Cocktail Party Talk
3. Personal Managers
Role
Commission Overview
Negotiating the Manager’s Deal
Picking the Right Manager
4. Business Managers
Role
How to Pick a Business Manager
Business Manager Checklist
Fees
Your Half of the job
5. Attorneys
Picking a Lawyer
Fees
Conflicts of Interest
Attorney Checklist
6. Agents