Changes

Common persons and music industry professionals are always talking about how much the music industry has changed within the last two decades. People often mention a decline of record sales, the impact the internet has had on the industry and the amount of iconic record companies that have closed their doors over the years. This conversation also contemplates best practices for artists and songwriters in terms of securing income for their craft.

The recent changes that have occurred within the entertainment and music industry have occurred among music industry executives. There have been many changes at the major record labels, publishing companies and performing right’s organizations. Recently there has been many promotions, promoting current executives to higher ranks within the industry.

Courtney Lowery is among one of those that earned a promotion. Lowery was promoted to the VP of Publicity at Epic Records allowing him to specialize in the design and implementation of global media campaigns including digital, print, social media and new technologies. Further changes in the industry include industry veteran founding MRKT Music, a music label and label services provider. The company will partner with Nile Rodgers’ Sumthing Distribution for all physical releases. More information relating to personnel changes can be found at www.billboard.com, visit this link.

One of the ground shaking changes includes the resignation of two Universal Music Group (UMG) executives in one week. One of those executives is Rob Wells, president of global digital business, that is leaving to pursue entrepreneurial endeavors.  Following the announcement, UMG decided to reassess their digital media and marketing plan. Changes are expected to occur transitioning the company from a one size fits all imprints to allowing each imprint to be individually branded. To read more about the upcoming changes at UMG, click click. 

Streaming Royalties

Royalties are the payments made to an artist/writer for the use of a song. Royalties have long been of concern to artists, writers, publishers and record labels; the constant changes in the business have caused individuals to pay more attention to the changes in royalty rates.  Streaming services have introduced new concerns regarding fair compensation and royalty rates.

It is important that artists and writers understand the royalty system and how to monetize their content outside of record sales.  One of the best way to ensure an artist/producer receives the proper royalties are to register with a Performance Rights Organization such as ASCAP or SoundExchange. These organizations collect and distribute royalties on behalf of the content creator for services such as music streaming.

Services such as Pandora and Spotify have repeatedly made the news for their streaming royalty practices.  Several artists and record labels disagree with Spotify’s pay structure and have opted against their content being available on the service. On the other hand, industry execs and artists are looking forward to the addition of a streaming service from iTunes.  Apple direct licenses with labels the pay rates are expected to be higher than current streaming services. Apple’s newest streaming service could easily become a favorite among industry execs eliminating competition in the market.

Peoples, G. (2014, Aug. 6). This Music Royalty Cheat Sheet Can Help You Understand a Complicated System. Retrieved Aug. 7, 2014, from http://www.billboard.com/biz/articles/6207107/this-music-royalty-cheat-sheet-can-help-you-understand-a-complicated-system.

 Royalty. (n.d.). The American Heritage® New Dictionary of Cultural Literacy, Third Edition. Retrieved August 10, 2014, from http://dictionary.reference.com/browse/royalty

The Payout: How iTunes’ Royalty Rates Will Work. (2013). Billboard, 125(35), 25.