BA(Hons) Music Entrepreneurship
ARTIST INCOME STREAMS
ARTIST INCOME STREAMS
Recommended Standard Entry Requires: UK Level 3 qualification or above
You now have the opportunity to experience some of the core material featured in our BA(Hons) degree courses. This will give you the chance to experience what it’s like to study online through our virtual learning environment, Canvas.
Individual Modules are exactly the same content as our BA(Hons) degree courses and are each worth 20 credits. If you wish to progress onto the full degree then these could transfer.
You will be able to experience studying with DIME ONLINE in cost effective bite-size chunks. Expert instruction focusing on specialist areas.
• Each module worth 20 Credits at Level 4
• Credits can be transferred onto the full BA(Hons) degree course
• Join DIME ONLINE’s learning community
• Modules are exactly the same as the BA(Hons) degree
• Detailed material for professional development
• Experience Canvas – our online virtual learning environment
• Expert one-to-one instructor feedback
The aim of this module is to enable you to:
• Recognise and reproduce the various income streams available to the commercial musician in the current music industry environment
• Appraise the commercial opportunity presented by various income streams in relation to an individual musical act
Start Date: 29th January 2018 Duration: 15 weeks Cost: £700
Indicatively, this module will consist of:
• 28 hours of lectures (14 x 2.0 hours)
• Small groups/individual tutorials (10 hours)
• Forums/online peer chat/master-classes (10 hours)
The artist manager (or self-managing artist) will need to have a clear sense of where the act’s income streams are derived from and how to maximise income and minimise expenses. Additionally, investigation into the ethics of management is considered in this module as well as the commercial and personal relationship between act and manager. You will study historical instances of disputes between act and manager, as well as systems for resolving disagreement. The module also explores examples of long-term model partnerships, financial modelling, forecasting and cash flow management. During this module you will be empowered to communicate in an authoritative way with finance professionals such as accountants, banks and third-party investors.
Knowledge and Understanding • Knowledge of the key income streams available to an act in the digital age.
• Understanding of how the potential exploitation of the streams could be maximised and managed.
Intellectual Skills • Develop cognitive and analytical skills needed to understand how income streams can be managed individually and collectively, within the context of a business plan.
Practical Skills • Conduct a project and submit findings intelligible to expert and non-expert audiences, articulating the rationale behind a financial strategy, within the context of a business plan.
Transferable Skills • Business planning.
• Financial management.
• Entrepreneurial – making a case for investment.
On completion of this Module you should be able to:
Assessment Criteria. To achieve the learning outcome you must demonstrate the ability to:
Identify and describe income streams available to contemporary commercial musicians.(Music Entrepreneurship LO 1, 6)
Provide a comprehensive overview of the key income streams available to a contemporary artist.
Create a business strategy that maximises the commercial potential of an individual act utilising a range of income streams. (Music Entrepreneurship LO 1, 3, 6)
Devise and explain a business strategy applicable to an individual artist incorporating multiple income streams.
Summative assessment (case study) You will be asked to undertake a case study of 1,500 words on the subject of ‘Identifying and Exploiting Artist Income Streams’.
Introduction (500 words) will consist of a ‘map’ showing an overview and explanation of the income streams available to contemporary professional recording artists.
Income stream exploitation (1000 words) Following a hypothetical scenario (e.g. an artist or band playing city hall-sized venues with album sales of around 30,000 in the UK), you will use a basic research-based approach to formulate a strategic plan for maximising the earnings of the act. This will include a 12-month projected cash flow with a critical summary. The summary will detail a management strategy to maximise the income streams over the course of a 12-month period and should support all assertions, arguments and conclusions with appropriate references and evidence.
Scheme of Work
Artist Income Streams
1 Introduction To The ModuleAn outline of the scheme of work, final assessments (including essay and practical exam), independent study tasks and expected learning outcomes. The lecture will look at the module content to be covered and the importance of knowing current income streams and future revenues through the growth of technology and the opportunities it brings.
Role Of The ManagerThis session will outline the role and responsibility of the manager and their relationship between the artist and the music business and what skills and virtues make good artist.
2 Management AgreementsThis session will discuss the main contract clauses that make up an artist management agreement and frame them in context to the relationship between manager and artist. We will concentrate on how managers earn income from artist activities as well as the financial implications in the event of contract termination.
3 Legal Case StudiesResearching the relevant legal cases from the music business where artist and management have entered into legal dispute, we will be able to explore the legal precedents and the legal outcomes from these cases that have shaped the contracts and relationship between artist and manager,
We will look into case studies such as Elton John v Dick James Music, Joan Armatrading vs Stone, Robbie Williams vs Nigel Smith, Gilbert O’Sullivan and Management Agency and Music Limited (MAM), Seal v. Wardlow, Holly Valence v Scott Michaelson.
Some of the contract terms require basic knowledge of contract law so this will be covered to help put music business agreements into context with the wider governing laws.
4 The RecordThis lectures looks in detail at the income that artists receive from sales of recorded music. It is the revenue stream that is most commonly known by the public and assumed to be the biggest earner for artists.
Here we will look at how record companies pay out to artists, the royalty rates that they are offered within the recording contract and the royalty they will actually earn in reality. Within this we will discuss the record label deal appraisal that attempts to forecast the profit and loss to the label if signing the artist, the artist advance, and how this is negotiated, and the breakdown of a CD sale as well as a download sale from the sales of recorded music.
Areas explored are as follows:
• Advances• Royalty rates• Recoupment• Recording income stream
5 Collection Management OrganisationsTo understand the role of CMO’s and their complex history, as well as their financial value to copyright owners. The lecture will explore the money flow through the industry and how CMO’s collect and pay-out income to artists, songwriters and musicians and the importance of copyright ownership in participating in these income streams.
The lecture will cover the following elements:History and function of UK collection management organisations (Collection societies) Performance royalties: PRS for Music, PPL, VPL,Mechanical royalties via MCPS (PRS4MUSIC) Featured and non-featured performers income streams International CMO’s.
6 The Song• To understand publishing revenue streams to help in contract negotiations.• To understand the importance of songwriting splits to artists, and the politics involved.• To learn how a song earns money in the industry for both writer and publisher.• To understand how mechanical copyright payments are calculated.
The Song: Publishing IncomeWe should start to form an appreciation of the importance of music publishing. This lecture attempts to explain the role of the music publisher so that students can understand their relevance to the artists career, their changing role and business model moving towards more artist development, artist services and rights management organisations. This will be a brief overview to set the scene for income streams available to artist from publishing.
The following will be covered:• The role of music publishers.• Publishing income streams from music performance.• Songwriting splits.• Syncronisation fees.
7 Live TouringOne of the main revenue streams for successful international artists is the live tour: their earnings from tours will dwarf record sales by comparison. For those artists that are beginning their career it is extremely hard and usually costs a considerable financial investment before an artist can enjoy revenue streams. This lecture looks at how income can be generated and maximised to help build an artist’s fan-base and sustain live touring.
This lecture looks at the income streams available to artists from small regional ‘grass roots’ tours to international headline stadium tours, including PRS income, merchandise sales, ticket sales, corporate concerts and more. We will look at some of the costs involved that help make tours successful. Touring is tough physically, but also tough strategically and financially, and so it is of paramount importance that a manager can understand the finances that surround putting an artist on a tour. We will discuss the various income streams and the various financial structures and deals associated with the live sector
8 Formative Assessment
9 Licensing & SynchronisationMusic licensing and synchronisation is now a major focus for record companies as well as artists as they strive to earn a living with a backdrop of declining record sales and record deals. There are more television networks, film studios, online services and websites all wanting music to support their show, movie or brand campaign.
This lecture explores the wider music and media industries and the revenue streams generated from music licensing. We shall research and analyse brand case studies and examples of major music licensing campaigns that have benefited both artist and brand. Also, during the lecture we shall look at compilation albums, their validity in todays digital a la carte consumption trend, and analyse how artists get paid from licensing their songs for compilation use.
Areas covered will include:
• Gaming.• License Fees.• TV advertising.• Blanket Licenses.• Compilation royalty payments.
10 Online & Digital IncomeWith this lecture will explore the fast growing and changing landscape of online opportunities and revenue streams.
During the decline of physical music sales, the industry was looking upon digital formats and services as the salvation and solution to plug the financial hole left by music piracy and lower CD prices - and therefore lower profit margins. Unfortunately, we’re now seeing digital downloads in decline and, although streaming services are on the increase, streaming services have not matured enough in the market to replace physical ownership of music.
This lecture researches the main digital channels to market and traces where the digital revenue comes from for artists. We shall discuss the current debates surrounding the payment structures and the fairness to the music creators.
This lecture looks at the various ways an artist earns income from digital sources. We shall begin by looking at the global trends for digital consumption and the services that are leading the way. We will also look at and list the various digital services on offer that relate to an artist before delving in to the detail of how income is generated and accounted to the artist.
The lecture will cover the following:
• Digital music market overview.• Ad revenue.• Google analytics.• PRS & PPL online rates.• Streaming business models.
11 Ancillary IncomeThis lecture will explore the various ancillary income streams available to the artist. These income streams, traditionally, were exclusively available to the artist without any other music organisation expected to share in them. Due to the decline in record sales over the years and the threat to the record companies business model, things have started to shift.
11 (cont... ) This lecture explores some of these ancillary revenue streams and the kinds of percentages you, as a manager, might need to negotiate or concede on in order to get the record deal you want for your artist. Every artist contract and deal is different so the lecture cannot give a generic answer or exact figures to how much artists receive, but we can look at some case studies of the income that artist have earned in some of these areas which include, but not limited to:
• E-commerce• Corporate concerts• Brand product placements• Mobile bundles• Artist brand product lines• Brand endorsements and advertising
12 Revision Week
13 Summative Assessment
14 Fundraising & InvestmentStarting out in any business requires a level of funding and investment. This is also true and applies for performers and songwriters. This lecture introduces students to the funding and investment that is available in the creative industries including loans, grants, scholarships, investment and donations. Key to this lecture is researching how to access money from various governmental sources, the creative industries, banks and venture capitalists and the help that is available for entrepreneurs and new business start-ups.
The lecture will cover:
• Creative Industry’s contribution to the UK Economy.• Crowd funding websites - such as Kickstarter and Pledgemusic – will be discussed and researched to analyse the effectiveness of these sites in helping artists raise money from the public.• Various funding sources available
15 Cash flow Forecast and Financial ModellingTo be successful in the music business is to earn money in order to sustain a career. We shall look into business trading structures, cash-flow, accounting and the various outgoings that are common to all people and businesses in order to help manage the income and outgoings and to forecast and protect for the future.
Areas covered will include:
• Tax: Income tax, corporation tax, capital gains tax and VAT.• Legal business structures.• Record keeping.• Cash-flows and financial modelling.• Finance software.
Terms & Conditions applyIf you wish to apply for the full degree course and use your credits after completing any of the individual modules, then you will still need to meet the full application criteria. Further details here www.dime-online.org/do-i-qualify
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