May Industry Wrap-Up

Spotify Launches “Spotify Codes”


Remember the QR Code Craze? Sure you do! It took place a couple of years back when we began seeing these funny little squares with unique black and white patterns in them all over promotional materials, from the subway to magazines. People could use their mobile device to scan the QR code and it’d offer them some sort of exclusive content. Marketers saw this as a fun new way to connect with consumers, but ultimately the process involved proved to be just over the line of effort that most consumers were willing to put into connecting with a campaign.

Flash forward to present day, and we see Spotify has announced a new in-app feature called “Spotify Codes”, allowing music fans to scan said codes to share music with friends. It’s being rolled out globally and is about more than just sharing your favorite playlist with a like-minded pal. Music Ally points to the strong potential for artists to market their music using Spotify Codes: “Flyers, posters, billboards… perhaps even TV advertising – something that would take Spotify Codes into the territory traditionally occupied by Shazam.”

A strong and thoughtful point, indeed. Indie artists of all genres can direct potential fans directly to their latest releases using traditional DIY promotional tactics simply by including their unique Spotify Codes within their visual assets. It’ll be very interesting to see how artists get creative with sharing these codes, and of course, how fans react and engage. Get started using them today with instructions via Spotify here.

Amazon Prime Offers Live Streaming Concerts


Is there anything Amazon Prime can’t deliver us? Well, up until this month, you could technically put “concert experiences” in that category (which seems reasonable enough), but alas, the online retail giant continues to out-do itself. In May, Amazon announced that it has begun offering tickets to concerts to its members. Not just any concerts, but a series of live events, with tickets being offered exclusively via the platform to Prime customers, featuring internationally recognized artists playing in small, intimate settings.

While concerts are being booked for Prime members in the UK right now, it has hopes to add U.S. concerts by the end of 2017. Additionally, Prime members out of the market for these experiences can catch recorded and streaming versions of these concerts so fans can get in on the fun from home. (Kind of a different version of those home concerts we’ve written about in the past.)

Amazon’s attempt to attract older, mainstream music fans who consume music – and live music for that matter – differently than the typical 20- or 30-something music obsessives is a great thing for independent artists who are hoping to reach similar crowds. Additionally, this move shows Amazon taking a step to connect artists with fans further, “combining customer data, billing relationships, content and services, infrastructure and consumer hardware.”

It will be interesting to see how this plays out in the near future – not just what new ways Amazon offers experiences exclusively to Prime members, but also how they bring independent musicians and bands into the fold.

Facebook Rights Manager Helps Artists Collect Ad Revenue


Good news for music creators looking to benefit monetarily from Facebook videos: the social media giant has updated its “Rights Manager” feature, allowing artists to generate revenue from pirated videos that had mid-roll ads placed within them. If an artist’s song is being used in a video across Facebook (with or without permission), they can now get a cut of that sweet, sweet ad money previously reserved for the video creator.

Facebook pays 55% of ad revenue to rights holders (much like YouTube), and until now, its Rights Manager could only successfully notify a rights holder when their music was being used in a video somewhere on the platform – giving them the option to take the video down or leave it up as a means of promotion. Similar to YouTube’s Content ID (which you can take advantage of using TuneCore’s YouTube Sound Recording revenue collection service), artists can “claim ad earnings” and even choose where the 15 to 20-second ad is inserted in the video.

Any new revenue stream for artists is viewed as a win for TuneCore and the greater independent music community. It will be exciting to see how this adds up for those who get their songs featured in videos across Facebook, and it’s definitely a step in the right direction in honoring copyrights. Artists can sign up for Rights Manager via Facebook here.

April Industry Wrap-Up

Facebook Launches ‘Chat Extensions’ That Encourage Music Sharing

As both streaming music and social media use has evolved over the years, it became pretty obvious pretty quickly that people love to share whatever new music they’re digging with their networks. Spotify was an early player in this arena by connecting social profiles to their platform so that users can see in a feed what the folks they follow are listening to at any given time of day. On top of this feature, users have always been able to send music directly to one another via a built-in messaging app.

As the social media giant Facebook looks to appeal to more and more businesses that use the platform for leads and engagement with customers, they’ve announced the introduction of ‘Chat Extensions’ within their messenger platform. The primary function of this launch is to offer the ability to perform actions within Facebook Messenger without switching apps.

For Spotify, this means the launching a new ‘bot’ that includes search, recommendations, and the ability to share 30-second song clips as well as launch Spotify from the app to hear full songs. Friends now have more options for sharing and discovering music within their chat windows. Facebook has revealed that a similar launch to support Apple Music integration is on the way, too.

As Facebook continues to beef up its music department in general and looks to innovative streaming platforms for partnerships, indie artists of all genres can feel good about new ways for fans to be sharing their tunes with friends.

A Month of Updates From Spotify

It’s hard to get through one of our ‘Monthly Industry Wrap-Ups’ without breaking recent news related to streaming giant and our friendly partner Spotify! This month, Spotify re-structured its multi-year license agreement with global music rights agency Merlin – which represents independent music companies like Beggars Group, Secretly Group, Domino, Sub Pop, and others.

The big story from this signing is that the updated agreement allows these labels to ‘window’ releases for Spotify Premium users only – a tactic used by major label groups to limit access to a release for usually up to two weeks. The significance of windowing is that it allows releases to only be made available to users that contribute higher streaming rates, (when you’re a ‘freemium’ Spotify user, you are using an account that gets served ads and each time you play a song, it pays out less than that of Premium subscribers’ streams who pay a monthly fee).

Spotify and other streaming platforms are required to sign licensing agreements with both independent and major label groups. But what’s new here is the apparent bargaining scraps indie labels have when it comes to keeping up with the majors. As a distributor that sees its artists getting signed to indie labels on a regular basis, it’s encouraging to see that they’re able to take advantage of opportunities offered by streaming platforms like Spotify.

Additionally this month, Spotify rebranded their “Fan Insights” – data about who is listening to artists, from numbers of monthly listeners to cities they’re being streamed in most – as “Spotify For Artists”. It’s available to all artists and managers, and is designed to be a ‘one-stop shop’ that allows you to track growth, update creative profile assets, and feature particular songs and playlists. Here at TuneCore, we’re always excited to see more data and insights being offered to artists to help them make business and branding decisions. If you haven’t already, head over to Spotify’s site to take advantage of these updates.

Google Play Music Gets Cozy With Newest Samsung Galaxy Model

As competition for subscribers and listeners continues to heat up among music streaming platforms, so too does competition among mobile device manufacturers. Nowhere is that more obvious than between Apple’s iPhone and Samsung’s Galaxy. As each company strives to attract brand loyalty to their respective operating systems, Samsung announced that its latest model, the Galaxy S8, has made Google Play Music its preferred music player.

That means those who pick up the newest Galaxy S8 will get the opportunity to use Google Play Music with enhancements just for them. One of these is an increase in cloud locker storage, with Samsung users being able to upload up to 100,000 tracks that can be streamed from anywhere (up from 50,000 for other users). Also, Samsung promises that it’s choice music player will support Samsung’s smartphone assistant, Bixby, “once support for voice commands is actually ready to roll out.”

It remains to be seen how many Galaxy S8 users will adopt Google Play Music over a preferred service, but it’s no doubt that Samsung will do what they can in collaboration to make it more attractive. For independent artists, it’s just another push for a platform that is carrying your releases already (unless, of course, you still need to add your music to Google Play!), and it may in turn end up being a great excuse for you to be promoting your Google Play links, as well.

TuneCore Social Pro Has Arrived!

Last October, we announced the exciting launch of TuneCore Social – an all-in-one platform designed especially for artists who want to reign in control of their Facebook, Twitter, Soundcloud and Mixcloud profiles and have an easier place to plan, schedule, publish and engage with their fan base. The service is free for any and all TuneCore Artist who currently has a release distributed with TuneCore.

Today, we’re thrilled to expand on those efforts and offer TuneCore Social Pro, an upgraded, premium version of TuneCore Social that allows users to schedule an unlimited amount of social posts per month (including media posts), add other artists to their account for social profile management, share social media reports, and access more comprehensive social media analytics, stats and audience insights.

The coolest part? TuneCore Social Pro includes a mobile app!

When an artist signs up for TuneCore Social Pro, they’ll be able to post or schedule posts to Facebook, Twitter and Instagram, check their TuneCore balance and trend reports – all from their mobile devices!

For $7.99/month (or a discounted annual fee of $85.99), TuneCore Artists can sign up for TuneCore Social Pro, download the app on their Android or iOS devices, and get a huge jump on managing their social media strategy.

TuneCore Social Pro is an all-in-one platform designed exclusively for TuneCore Artists who want to reign in control of their Facebook, Twitter, Soundcloud and Mixcloud profiles and have an easier place to plan, schedule, publish and engage with their fan base – not to mention have a high level view of important analytics that can impact decision making.

Offering a premium version of TuneCore Social is just another way we’re looking to make the lives and careers of independent artists easier. We know how important getting the word out about your music is and we’re always here to help by providing valuable tips and advice for doing so – now we’re giving you the social media management tools to take it one step further.

4 Major Live Music Trends Changing The Industry This Year

[Editors Note: This blog was written by Rachel Grate and originally appeared on the Eventbrite Blog.]

 

We’re just one month into 2017 (ed. – this was originally published in February of 2017), and it’s already proven to be a year of big changes — and the live music industry is no exception to the rule.

To stay on top of your game in a shifting landscape, you need a firm grip on the music trends that will shift the landscape in 2017. But don’t take it from us — take it from the nineteen industry pros we interviewed, including Newport Folk Festival, Afropunk, National Sawdust, and more.

Here’s how tastemakers predict the live music industry will change in 2017 — and how you can use those trends to protect your business.

1. Activism will revive the live music community

“Music has recently been more about escapism than activism,” says Jay Sweet, festival director and talent buyer for the Newport Festivals Foundation. But with major political changes coming in 2017, fans may be looking to their favorite artists to take a stance. “I’m excited because I think this could be the year where musicians could… try to affect positive change through music,” Sweet says.

Matthew Morgan, the co-founder of Afropunk, believes fans will look to live music as an opportunity to make sense of the world around them. “We’re in line for some really great art over the next four years, [and] what we’re doing is going to be even more important,” Morgan says. “So many people are looking for things that are positive, that give them something meaningful in their lives.”

“We’re in line for some really great art over the next 4 years.” — Matthew Morgan of @afropunk

In this quest for self-expression, fans and artists will use live performances as an opportunity to build community around shared causes. “Festivals are a place for people to congregate safely — a place to share a common, collective experience,” Sweet says. It will be up to independent promoters and producers to create these safe spaces for activism.

2. Immersive theater will influence live music performances

From popular events like The Speakeasy in San Francisco to the topic of breakout HBO show Westworld, immersive theater made a big splash in 2016. These shows make audience members a part of the performance, and this year, we’ll see their influence begin to make live music performances more multidimensional.

“The world of immersive theater is about to explode,” says Nick Panama, the founder of Cantora. “We’ll be seeing a lot more experiential storytelling, and its influence on live music.”

Panama predicts live shows will expand the storytelling from the music itself to other senses. Instead of relying solely on audio cues or a screen behind them to tell a story, performers will begin to activate the entire room or stadium with immersive sensory details. Using a variety of new technologies, fans will become part of an alternate reality for the duration of the show.

3. Venues will band together to establish more sustainable economics

With rising rent prices in cities across the country, venues are facing a serious financial challenge in 2017.

“Venues will either buy the land they sit on, or they’ll move,” says Brendon Anthony, the director of the Texas Music Office. “We’re not going to see our favorite venues in the same place unless they own the land. The venues that are iconic and last [will] need to control their rent.”

“Venues will either buy the land they sit on or they’ll move.”@Brendon_Anthony of @txmusicoffice

But venues may not be able to crack the code to sustainability on their own. Venues will have the most success if they band together to protect their businesses.

“There are real ways venues can work together to make their margins a bit easier to handle,” Anthony says. In Texas and other states, for instance, venues, bars, and restaurants are all taxed in the same way, even though venues have to put more of their money back into infrastructure. There could be a way for venues to reduce their tax rate, “but for that to happen, venues would have to define what being a venue means, and then go to work to lobby as a group for the change.”

Fighting for this recognition won’t be easy, but it’s the best way for rooms to protect their business. Venues in the UK have already seen success with this strategy, led by the Music Venue Trust and their annual Venues Day, aimed at raising awareness and advocating for venue rights. Venues in the states will need to follow suit, banding together to protect the future of live music in their respective cities.

4. Brands will become even more intertwined with artists

Sponsors spend $1.4 billion on the music industry in the United States each year, and that number is only going up. Instead of investing in large activations or stages at festivals, our experts predict that brands will focus more on building relationships with specific artists in the next year.

Mark Monahan, the festival director of Ottawa Bluesfest, has seen this shift firsthand. “In the last few years, most sponsors want to activate around artists,” Monahan says. “Five years ago in the festivals space, that was a nonstarter. Artists are recognizing the role sponsors play in helping to fund festivals, and are more willing to participate in auxiliary activities.”

Currently, most of these artist activations look like meet and greets, or small, private shows with festival headliners. But these activations will need to evolve and become more natural to succeed in 2017. It is likely we’ll see more activations like last year’s Lady Gaga’s Dive Bar Tour, sponsored by Bud Light. The series focused on one of the most important roles a brand can play for an artist: delighting fans by bringing them in more direct contact with their idols.

But this integrated relationship between artists and brands could be in conflict with another trend — that artists are more openly expressing their political beliefs.

“I’m hesitant about what the branded content space is going to look like in the next year,” Gaston says. “If artists get more politically involved, will that impact how brands interact with artists? It’s going to be really tricky if that spending shifts, especially since brand dollars have become more important to the bottom line for both artists and labels.”

TuneCore Partners With Lyric Financial to Launch New Service That Empowers Independent Artists

First-Of-Its-Kind Integrated Financial Tool Gives Members Ability to Easily Request Advances on Future Earnings

New York, N.Y. – April 13, 2017 – TuneCore, the leading digital music distribution and publishing administration provider for independent musicians, today announced the launch of TuneCore Direct Advance. A unique collaboration with Lyric Financial, the leading financial services and technology company serving the global music industry, the innovative new service offers U.S.-based TuneCore artists automated advances on their future distribution sales revenue.

With many independent artists and labels operating as small to medium-sized businesses with sometimes minimal resources, TuneCore Direct Advance is a valuable new offering that allows them to take advances on future earnings to help fund new projects and further their careers. From recording new material to purchasing new equipment to funding a tour, TuneCore Direct Advance provides a simple way for artists to access advances at their convenience, 24/7 and on their own terms. In addition, this new advance model does not require artists to pledge ownership of their music, which is often the case with many competing services. With TuneCore Direct Advance, independent artists can have full control of their finances while still maintaining total creative control of their music.

“This is a one-of-a-kind integrated offering that gives artists a hassle-free, reliable way to access their future earnings quickly and easily, eliminating the difficulty often associated with obtaining advances,” says Scott Ackerman, CEO at TuneCore. “We are deeply invested in the careers of our artists and are committed to ensuring they have the tools and resources needed to succeed.”

TuneCore Direct Advance is the latest addition to the company’s comprehensive array of artist tools and services that are made to help them build successful music careers. The new service is available for U.S.-based TuneCore artists that meet certain eligibility requirements, including sales history and earning thresholds.

Qualifying customers can request a cash advance directly from their TuneCore Balance Page, and for a low, one-time fee, they will quickly and easily receive the money through PayPal or ACH (Automated Clearing House). The advance is repaid directly from future sales and automatically deducted from streaming and download earnings. Since this service operates as an independent process, artists avoid additional, time-consuming tasks often associated with obtaining advances, including registration and negotiations.

Based on direct feedback from customers, TuneCore recognized the need for a service that gives artists easy access to future sales income.

“As an artist for more than 20 years, I know firsthand the need for a money advance to cover anything from production to personal expenses,” says Lito MC Cassidy, TuneCore Artist. “For the first time in my career, I not only feel in full control of my money but also relieved to know that by simply choosing the amount of money I need, I can receive an advance in seconds.”

TuneCore Direct Advance was developed in partnership with Lyric Financial Founder and Chief Executive Eli Ball to give independent artists the ability to budget and access their royalties and licensing income at their convenience.

“For the last two years, we have worked to automate what has historically been a cumbersome manual advance process in the music industry,” says Ball.  “TuneCore Direct Advance is a simple, easy-to-use application that provides creatives with a clear view of their current and forecasted earnings, allowing them to request advances in less than a minute. These basic tools will be invaluable to any music industry professional in budgeting and managing the ups and downs of their cash flow. The deal we have announced today with TuneCore is a huge validation of the platform we have all worked so hard to create.”

###

About TuneCore:

TuneCore brings more music to more people, while helping musicians and songwriters increase money-earning opportunities and take charge of their own careers. The company has one of the highest artist revenue-generating music catalogs in the world, earning TuneCore Artists $836 million from over 57.3 billion downloads and streams since inception. TuneCore Music Distribution services help artists, labels and managers sell their music through iTunes, Apple Music, Spotify, Amazon Music, Google Play and other major download and streaming sites while retaining 100 percent of their sales revenue and rights for a low annual flat fee. TuneCore Music Publishing Administration assists songwriters by administering their compositions through licensing, registration, world-wide royalty collections, and placement opportunities in film, TV, commercials, video games and more. The TuneCore Artist Services portal offers a suite of tools and services that enable artists to promote their craft, connect with fans, and get their music heard. TuneCore, part of Believe Digital Services, operates as an independent company and is headquartered in Brooklyn, NY with offices in Burbank, CA, Nashville, TN and Austin, TX, and global expansions in the UK, Australia, Japan, Canada, Germany, France and Italy. For additional information about TuneCore, please visit www.tunecore.com or https://youtu.be/1Kuu_tZ1In0

About Lyric Financial:

Founded in 2007, Lyric Financial is a financial services and technology company that provides innovative financing solutions to the global music and entertainment industry.  The company’s latest innovation, a virtual ATM platform called SNAP*, empowers creatives to tap into their catalog earnings in less than a minute. Based in Nashville, TN, for more information about Lyric Financial and their virtual ATM products please visit lyricfinancial.com.

For media inquiries, please contact:

TuneCore: Alisa Finkelstein, MWW PR

212-827-3753

afinkelstein@mww.com

 

Lyric Financial: John Vlautin, SpinLab

818-763-9800

jv@spinlab.net

Part 2: The Artist & Manager Relationship – A Look At Recording Industry Management Agreements

[Editors Note: This is a guest blog written by Justin M. Jacobson, Esq. Justin is an entertainment and media attorney for The Jacobson Firm, P.C. in New York City. He also runs Label 55 and teaches music business at the Institute of Audio Research. Read the Part One of this two-part installment here.]

 

We will continue from our prior installment on “The Artist & Manager Relationship.” We will now explore some additional contract clauses included in most management agreements as well as a few negotiation tactics for these clauses.

Another essential matter that needs to be ironed out is the “term” that the artist is signed to the manager. Typical language outlining the term and options is below:

Term – The term of this agreement will be for an initial period of one (1) year commencing on the date hereof (the “First Contract Period”) plus the additional “Contract Periods” if any, which Term may be extended by Manager’s exercise of one or more of the options granted to Manager below.

Options – Artist hereby irrevocably grants to Manager three (3) separate consecutive options to extend the Term for a “Second”, “Third”, and “Fourth” Contract Period. Each such option consist of one (1) year each and will be exercised automatically by Manager at the end of the then current Term unless Manager gives Artist written notice to the contrary no later than thirty (30) days prior to the date that the then current Contract Period would otherwise expire.

A typical management agreement term can last for as little as 1 or 2 years. But, it can be for as long as 5 or 6 years, or even more. The terms of an agreement are traditionally structured with a minimum of one year followed by several options for additional years. Sometimes, the “term” is based on “album cycles” rather than specified calendar years. In this situation, the “term” starts with the commencement of recording the album and lasts until the end of the tour or associated promotional activities for that album. This time period could end up lasting longer than one calendar year. Similar to the language above, usually the options are automatically exercised by the manager. This provides the manager with the right to choose to terminate the agreement by providing notice to the artist.

If they do nothing, than the option is exercised and the agreement continues. Ultimately, this is a point that should be negotiated between the parties as the agreement could require mutual approval to exercise an option or it could include a set milestone that must be reached for an option to be exercised (i.e. artist must earn $10,000 during the one year term for the option to be exercised or obtain a recording/distribution agreement).

Other possible limitations on the term of the agreement could be that if the artist doesn’t earn a specified amount in a given time frame, then the artist is free to terminate the agreement. If this option is selected, a manager should ensure that any offers that the artist turns down as well as those that are accepted are included in this total amount. This protects the manager as an artist cannot simply turn down valid offers to reduce the income earned in order to get out of the contract. Conversely, an artist should insist that for an offer to count toward this minimum, it must be similar to those the artist had previously accepted. This prevents a manager from simply providing nominal or unsatisfactory offers in an attempt to continue extending the management arrangement.

Since a manager is entitled to receive compensation for any agreement entered into or substantially negotiated during the term of the agreement, a “sunset” clause can be included to reduce the amount that a manager is entitled to after the expiration of the term of the agreement.

Typical language for a “sunset” clause is as follows:

Following the expiration or termination of the Term hereof, Artist agrees to pay Manager for a period of three (3) years a commission of fifteen percent (15%) from any contracts entered into during the Term and all renewals, extensions, additions, modifications, amendments, substitutions or supplements of all contracts, engagements and commitments entered into or substantially negotiated for during the Term hereof. Subsequent to the termination of this first three (3) year period, there shall be modifications downward of Manager’s commission percentage in the following manner: (i) a reduction to twelve (12%) percent for the second three (3) year period subsequent to termination, (ii) a reduction to ten (10%) percent for the third three (3) year period following termination, and (iii) Subsequent to the end of the third three (3) year period the Manager shall no longer be entitled to receive commission.

A “sunset” clause is used to reduce a manager’s commission in the years following expiration of the term of the management agreement. This clause reduces the percentage the artist owes to the manager over time and eventually extinguishes this obligation entirely. This is important for an artist who is leaving one manager and signing with another, as the new manager would typically want their standard commission rate (15-20%) and your prior manager would still be entitled to their percentage under the “sunset” clause (15-20%). This situation severely limits the amount an artist earns; and, therefore, it is prudent to ensure that the prior manager’s percentage reduces and eventually ends at a specified time.

Another method an artist can utilize to potentially terminate a management agreement early is the inclusion of a “Key Man” clause. This clause protects a musician’s relationship with a particular individual by stipulating that the personal manager (the “key man”) must represent the musician or else the musician may terminate the contract.

This applies if the “key man” is deceased, terminated or otherwise is no longer affiliated with the management company that the artist is currently signed to. The particular individual needs to be listed by name in the agreement for this clause to be operative. However, the inclusion of this type of language does not obligate the artist to leave the management company; it just provides the artist with the opportunity to do so if they choose.

A standard “key man” clause could reads as follows:

During the Term, John Doe shall be primarily responsible for Manager’s activities under this Agreement. Notwithstanding the foregoing, it is understood and agreed that John Doe may delegate day-to-day responsibilities to other employees of Manager provided John Doe remains primarily responsible for the activities and services provided by Manager. Notwithstanding anything to the contrary contained herein, in the event that John Doe shall cease to be employed by Manager or shall cease to be primarily responsible for Manager’s activities hereunder (“Key- Man Event”), Artist shall have the right to terminate the Term of this agreement effective upon the date of Artist’s notice to Manager of such Key-Man Event.

Overall, a personal manager is an essential member of your music business team and one that can truly make or break your career. They can be a driving force behind your success or a stumbling block to your advancement; consequently, the negotiation of a written management agreement helps to ensure that an initial managerial arrangement doesn’t have a negative impact on an artist’s career going forward and that all parties fully understand what they sign and feel protected.

This article is not intended as legal advice, as an attorney specializing in the field should be consulted. Some of the clauses have been condensed and/or edited for content purposes, so none of these clauses should be used verbatim nor do they act as any form of legal advice or counseling.