Music production is evolving. Upcoming artists are turning from record companies to the Internet for financial support from investors. But what does this mean for music licensing and music copyright? soundlounge explores the changing world of making music.

It’s a lifestyle that millions aspire to. Private jets, five-star hotels, adoring fans and a top music production team. But it seems that for an increasing number of upcoming artists the reality of forging a career in the industry is far from the glamorous existence of times past. Like many other sectors, the music production industry is being forced to adapt to a changing economic and social climate. Gone are the days when a talent for singing or instrumental skills was enough to get a band noticed let alone to the top. Now artists are increasingly adopting a head for business and taking an entrepreneurial attitude towards their profession.

A recent article in The Times newspaper explores the impact of this growing structure within the music market citing the emergence of websites such as sellaband.com and slicethepie.com. Unveiled in 2006, sellaband.com supports upcoming bands by encouraging them to sell ’shares’ in their group to investors. Bands which successfully sell 5,000 parts are then rewarded with their own producer, studio time and support from industry experts to help them record an album. Similarly slicethepie.com allows bands to raise money directly from music fans and gives them the chance to be involved in the music production process. Fans who invest in their band or artist can earn money reviewing tracks as well as enjoy perks such as free album copies, their name on album sleeves and a share in the financial returns from record sales. Slicethepie.com has also essentially created a stock exchange of its own, allowing investors to trade shares of their music between other holders within the market domain.

Although slightly different in their processes, both websites hark the dawn of a new ‘free-market’ approach to music where fans have a different kind of control over the success of their favorite artists. Speaking to The Times, Martyn Shone, guitarist for UK band Honey Ryder revealed he and the band’s singer Lindsay O’Mahony had been selling shares for £3,500 each. “Shareholders receive a dividend on future profits on CDs, downloads and licensing deals,” he told the newspaper.
So what does the introduction of these new approaches mean for UK music as a whole? It may be wrong to claim they represent the development of a new platform within the music industry. Rather, they are almost like an online casino where venture capitalists can gamble over the possible success or failure of a particular band. Despite this, it would be a mistake to ignore the impact that this kind of music production will have in the future. Honey Ryder told The Times that much of their group’s revenue will come from songs being played on television and film soundtracks. But could selling off music rights on a shares basis complicate the business of music licensing and music copyright clearance?

Currently, the principle contractual rights owners of a song are the publishing companies who own the intellectual property rooted in the musical composition and whoever owns the master sound recordings – be it the record company, studio or musicians themselves. These new business models raise interesting questions regarding who would hold sway if a large number of people each owned a ’slice’ of a song. Could a situation arise whereby 100 stakeholders needed to be consulted on the terms of a deal or licensing agreement? And on whose shoulders should the final decision-making rest? Have we solved the problem of music investment only to be faced with another – namely one of who has ultimate control over a piece of music?

Whatever the future holds for the industry, it is important that artists continue to look carefully at their contracts to ensure they retain the moral right and absolute consent for any secondary clearance of rights, such as synchronisation for advertising or film. Without this, companies such as soundlounge that facilitate and place music in advertising may find it harder to reach a deal for a desired song – and bands could miss out on additional revenue streams and new platforms to make themselves heard by a wider audience.

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Music Production in a Changing World is a post from: soundlounge

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In the summer of 2007, dance duo Groove Armada sent shockwaves through the music production industry by opting out of a deal with a traditional record label. In April 2008, the duo, who have become a household name thanks in part to the use of their music in commercials, instead signed-up with Bacardi making them the first mainstream group to turn to a major brand for investment. Considering the majority of digital music is downloaded for free, through the expansive networks of user to user file shares – it is not difficult to imagine that as record companies’ profits suffer amid the current economic squeeze, the emerging trend of band-brand partnerships will continue to develop.

The one-year deal has sparked a mixed reaction from fans. Although the majority are in support of the partnership and feel the pair is a good brand fit, some have expressed surprise that the group would choose to associate so freely with such a major commercial corporation. But speaking to the BBC, the band’s Andy Cato defended the move. “You’ve always needed big business to get your music out there,” he explained. “That help used to be major record labels, now it’s all kinds of different things. If you say one corporate pound is any more or less corporate than another, then you’re wrong,” he added. “What is a record label if it’s not a commercial brand?” So how long will it take for other global brands to become the major investing foundation of the music industry? In some ways the ball has already started rolling.

In 2005, Toyota launched its own hip-hop record label Scion, while two years later coffee giant Starbucks unveiled the Hear Music label that produced the debut album of all-female group Antigone Rising. But while these are still relatively small endeavours in terms of music production there is clearly further scope for brands to seize the opportunities to work with the industry. These possibilities hail an exciting time for music production. The sound of the brand is becoming an increasingly important part of its promotion, a fact demonstrated by the success of the strategic use of music in commercials such as M&S and Sky HD But if brands want to make a success of their partnership with an artist or band they must have a good understanding of what their music represents and how their talent developed.

Throwing money at a project is far from enough, with brands instead needing to spend time working hard with those who have managed to get the best out of the musicians in the past. Brands must ensure they are seen by fans as a facilitators, helping groups and singers achieve things which are just not possible with a traditional record label. By working hard at aligning themselves with an artist, a brand can help ensure that the confidence of both the fan base and consumers of their products is in no way compromised. To form an alliance of this sort and find a “brand fit” between a sound and a product is no random act. It is a careful balance between the rigours of science and the art of creativity which can be used to make certain that music and brand complement each other and thus trigger success for both parties.

To start to unravel any of these complicated issues we only need return to the original reason why anyone would choose a brand rather than a record label to promote them. Fans are no longer listening to a good piece of music and heading out to the shops to buy it – they are instead logging onto the internet and downloading it for free. If fans are not prepared to pay, then, just like any other business, music production will become harder to maintain and artists will be forced to look elsewhere for support and sponsorship.

However the future of the music industry evolves, it certainly looks to be an exciting one –meanwhile, it’s important to recognise that the sound of the brand is seldom about sponsoring a pop star or rock group or even an promotional event. Corporations are turning to support from “sound of the brand” consultants, like soundlounge, to provide them with a complete and integrated understanding into how their musical investments can be maximised by resonating honestly with the fan and the consumer

Have you noticed any other band-brand partnerships? Which ones work? Which ones don’t? Share your thoughts.

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Investing In The Sound Of The Brand is a post from: soundlounge

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