March 25, 2007
CD Sales, Slip Sliding Away - Another 20%!
From The Wall Street Journal!
First Some Highlights from the Wallstreet Journal Article:
"One week, "American Idol" runner-up Chris Daughtry's rock band sold just 65,000 copies of its chart-topping album; another week, the "Dreamgirls" movie soundtrack sold a mere 60,000. As recently as 2005, there were many weeks when such tallies wouldn't have been enough to crack the top 30 sellers. In prior years, it wasn't uncommon for a No. 1 record to sell 500,000 or 600,000 copies a week."
"The music industry has been banking on the rise of digital music to compensate for inevitable drops in sales of CDs. Apple's 2003 launch of its iTunes Store was greeted as a new day in music retailing, one that would allow fans to conveniently and quickly snap up large amounts of music from limitless virtual shelves."
"It hasn't worked out that way -- at least so far. Digital sales of individual songs this year have risen 54% from a year earlier to 173.4 million, according to Nielsen SoundScan. But that's nowhere near enough to offset the 20% decline from a year ago in CD sales to 81.5 million units. Overall, sales of all music -- digital and physical -- are down 10% this year. And even including sales of ringtones, subscription services and other "ancillary" goods, sales are still down 9%, according to one estimate; some recording executives have privately questioned that figure, which was included in a recent report by Pali Research."
"Meanwhile, one billion songs a month are traded on illegal file-sharing networks, according to BigChampagne LLC."
Now our view at What's Out Next:
The reason that the CD sales suck are for the following reasons:
One - The business has been run by accountants. One of the greatest record labels ever created was A&M Records. To look at the record industry's downfall, look at the birth and death of A&M. Started by Herb Alpert and Jerry Moss in 1962, after spending the 1980s having its records distributed through BMG, A&M was sold to PolyGram in 1989 for a reported $500 million. Following the buyout, A&M became one of PolyGram’s strongest and most dominate imprints, while continuing to be independently managed.
A&M under Universal and Interscope In 1998, PolyGram was bought out by Seagrams and folded into its Universal Music Group. The consolidation of these two music giants triggered a shake up of labels. Subsequently, A&M was reduced in size and stature, and merged into Universal Music Group’s Interscope Records division (which at this time also absorbed Geffen Records.) A&M closed its doors at the Chaplin lot in early 1999. During the farewell celebration, the company’s staff placed a black band over the A&M sign indicating the death of the company. Most of the company’s workforce (some of whom had been with the company for a decade, or more) were let go, while many of its artists were dropped. Alpert and Moss sued Universal Music Group in 2000, claiming that they had violated a contractual agreement that stated A&M Records would be allowed to retain its corporate culture.
The first multi-platinum A&M Records release under Universal Music Group and Interscope Records was Sting’s 1999 album Brand New Day. In addition to Sting, in the time since A&M’s restructuring, the company has continued to attain success with releases by its few retained mainstay acts, such Sheryl Crow and Bryan Adams—as well as by newer acts like The Black Eyed Peas and Pussycat Dolls.
Two - There is no artist development. Labels only care about how much they sell and don't give a damn about follow up sales. The film business does a better job of this.
Three - One Track Sales, Lake of Time! - The the iTunes Music Store works great, it encourages SINGLE SONG SALES and reduces the sales of complete albums. While most fans will support their favorite group, the money is not in the music sales, the money is in the live performance. Am I right? Look at the Eagles and The Rolling Stones, they do it for the MONEY HONEY!
It's all about still being crazy enough to care about the business and build brands, not just one hit wondors. No worries, we are just crazy!!
Still Crazy After All These Years, Originally Released by Columbia
Records in 1975
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Posted by mitchsantell at 05:13 PM
Chic & Good Times!
(Bernard Edwards, Nile Rodgers and David Bowie in 1979)
What inspires us most at What's Out Next are those who came before us who made a real impact on the music business. The best bass player I ever heard was Bernard Edwards. There is no one finer. When you go back and listen to the magic that Nile, Bernard and Thompson made, it was pure magic. The sad thing is the passing of two of the three founding members. Now onto our history lesson!
Chic is an American band that was formed in 1975/76 by guitarist Nile Rodgers and bassist Bernard Edwards. They are best remembered for their disco songs, including "Dance Dance Dance (Yowsah, Yowsah, Yowsah)" (1977), "Everybody Dance" (1977), "Le Freak" (1978), "I Want Your Love" (1978), "Good Times" (1979), and "My Forbidden Lover" (1979).
Bernard and Nile had former 'Labelle' and 'Ecstacy, Passion & Pain' drummer Tony Thompson join the band. And they performed as a trio doing covers at various gigs for awhile. But they needed a singer to front the band.
And that singer was Norma Jean Wright, who sang lead on their demotape and on all the songs on their first, selftitled, album (1977). Right after the sessions ended for their debut album Chic began to work on Norma Jean's selftitled debut solo album released in 1978. This album contained club hit 'Saturday.' To facilitate a separate but parallel (to Chic's) solo career for their lead singer Chic had agreed to sign her to a separate contract and label from the band. Unfortunately the legalities of this contract eventually forced Norma Jean to leave the band in mid (1978). But not before taking part in the sessions for Chic produced Sister Sledge album We Are Family.
But before that, the immediate success of their debut album and the hits "Dance Dance Dance (Yowsah, Yowsah, Yowsah)" (1977) & "Everybody Dance" (1977), sent Chic out on the road. They performed as a quartet (Nile, Bernard, Tony & Norma Jean) up until February of (1978) but Nile & (Ber)Nard thought that their live performances would improve both in sound and visuals if they added another girl to front the band. Norma Jean suggested her friend Luci Martin and she became a member in late winter/early spring of 1978.
At the same time, Edwards and Rodgers composed, arranged, performed, and produced many influential disco and R&B records for both established artists and one-hit wonders, including Sister Sledge, Sheila and B. Devotion, Diana Ross, and Debbie Harry. Chic also helped introduce the world to a up-and-coming young vocalist named Luther Vandross, who sang on one of Chic's albums.
In the 1980s, the band struggled to obtain airplay and sales and eventually disbanded. Rodgers and Edwards separately produced records for a wide variety of artists. Rodgers was largely responsible for the breakthrough success of Madonna in 1985 with her Like a Virgin album. In the early 1990s, Rodgers and Edwards regrouped and worked on new material (Single Chic Mystique and subsequent album Chic-ism, both of which charted). Edwards died in 1996 in Japan, but Chic continued to tour with new musicians. Thompson passed away in 2003.
In addition to defining the disco sound, Chic helped to inspire other artists to forge their own sound. For example, The Sugarhill Gang used "Good Times" as the basis for their hit Rapper's Delight, which helped launch the Rap/Hip-hop music format as we know today. And the group Queen got the inspiration for their hit single "Another One Bites The Dust" from Chic's familiar bass guitar riffs.
It's all about Good Times!
Risque by Chic was the first track on their third album, Good Times released January 1, 1979.
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Posted by mitchsantell at 04:31 PM
Next? Ringtones Need A License!
According to Susan Butler at Billboard........
The Copyright Office has decided that compositions used for ringtones may be subject to a compulsory license. The decision is a victory for record labels that want to offer ringtone operators the master rights and publishing rights as one package.“This decision injects clarity into the marketplace -- clarity that will help satisfy fans’ hunger for the latest hits from today’s best artists by affording record companies and ringtone providers the ability to move new offerings quickly and easily to consumers," says Steven Marks, executive VP/general counsel for the RIAA. "Ultimately, we’re all seeking a vibrant mobile market. This decision helps us further that goal.”
Last month, the Copyright Royalty Board (CRB) referred the question about ringtones and compositions to the Copyright Office for a decision. The CRB wanted to know whether compositions used for ringtones -- monophonic (single melody line) or polyphonic (melody and harmony) -- or for master ringtones (taken from a master recording) fall under the compulsory license provisions of section 115 of the Copyright Act. If so, the CRB would determine rates through its rate-setting proceeding. If not, then publishers would be free to withhold permission to use the compositions unless labels or ringtone providers negotiate a license and a royalty rate for each use.
Under section 115, anyone, like a record label, may obtain a mechanical license or a digital phonorecord delivery (DPD) license to record and distribute "phonorecords" of compositions that were previously recorded and released in the United States. The rate is set by statute, which is periodically adjusted through a copyright tribunal proceeding.
In its 35-page opinion, the Copyright Office concluded that ringtones and master ringtones are "phonorecords" under copyright law. As a result, delivery of ringtones by wire or wireless technology makes them a digital phonorecord delivery.
As long as the ringtones are merely excerpts of a larger musical work or from a preexisting sound recording, then the composition used for the ringtone is subject to the compulsory license, the decision says. For the composition to fall under the compulsory license, the ringtone may not recast, transform or adapt it -- or include additional material -- in such a way that it becomes an original work of authorship (i.e., a derivative work). If it does, then a license must be negotiated with the copyright owner.
"We are disappointed in the Register's decision, which could hurt songwriters significantly and represents an unprecedented broadening of the compulsory license for musical works," says a National Music Publishers' Assn. spokeswoman. "Of particular concern is that copyright owners who have negotiated ringtones licenses in the free market for years will now be subject to government regulation. We see no justification for this, and are currently reviewing our legal options."
The decision also makes the portion of a composition that has been recorded only as a ringtone subject to a compulsory license as well. "If a newly created ringtones is considered a derivate work, and that work has been first distributed with the authorization of the copyright owner, then any person may use the statutory license to make and distribute the musical work in the ringtone," the opinion states.
Briefs from interested parties arguing what statutory rates should be for ringtones and other formats are due to be filed with the CRB in mid-November.
At What's Out Next, we say "hey man, give this a go!" Who knows dear friends, a legal license may very well be the last DJ you'll ever need.
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Posted by mitchsantell at 04:20 PM
March 22, 2007
Starbucks Is The Last Retail Record Store, Ask Paul McCartney and Mitch Santell!
Howard Schultz, chairman of Starbucks, waved to Paul McCartney announcing his next Album would be sold through Starbucks!
"The last great record store in America is Starbucks!" Who said this? Me, Mitch Santell., CEO and Founder of Movie Capital Limited, "bridging the gap between film and muisc." ™ Starbucks has all the quality of a local Mom and Pop record store. Their help is friendly, the coffee is fresh and hot, there is always music playing and Starbucks has create a great sense of community." In contrast to those other arrangements, the deal for Mr. McCartney’s next album, expected in early June, does not restrict it to just one retail chain; Starbucks said the album would be sold at other outlets.
Still, the deal does signal that another nontraditional company is nudging its way into the music distribution system that has long been dominated by traditional record corporations. “It’s a new world now,” Mr. McCartney, the former Beatle, said yesterday during a video chat with Howard Schultz, Starbucks’s chairman, conducted in front of thousands of people attending the shareholders’ meeting. “People are thinking of new ways to reach the people. For me, that’s always been my aim.”
According to Jeff Leads, who writes for the New York Times:
Mr. McCartney’s deal comes at a time when his music has been meeting with mixed results. His 2002 “Back in the U.S.” live album, which followed an extensive concert tour and included performances of the Beatles’ hits, has sold 994,000 copies domestically, according to Nielsen SoundScan data. His last album of new pop songs in 2005, “Chaos and Creation in the Backyard,” sold about 533,000 copies.
According to other sources:
The announcement was made at the annual company shareholder meeting in Seattle, Washington. McCartney appeared on a live video feed from London to be present for the meeting and the announcement.
"For me, the great thing is the commitment and the passion and the love of music, which as an artist is good to see," said McCartney, who seemed very optimistic about signing up with the label. "It's a new world now, and people are thinking of new ways to reach the people and for me that's always been my aim."
McCartney's new album is due out this summer and will be available in most stores. His album will be the first released under the Hear Music label. Starbucks and Concord have high hopes for the label in their joint venture.
"Having the honor of releasing an album by Paul McCartney as our first project under the Hear Music label is in a word, remarkable," Ken Lombard, president of Starbucks Entertainment, said. "This demonstrates how Hear Music can present even the most successful recording artists of all time with unique opportunities to reach existing fans, as well as a new audience of listeners."
Starbucks released news of its new label in early March. It's decided to sign both popular and new artists to its label. They plan to distribute the productions throughout their retail stores and music retailers.
Starbucks executives suggested they could do better by capitalizing on the coffee chain’s audience of loyal latte drinkers.
Our take at What's Out Next, is that we are not amazed, we knew it was a matter of time before this would happen!
"McCartney" Chart Information
U.S. Release Date: Apr 20 1970
U.S. Chart Entry Date: Dec 31 2002
U.S. Chart Peak Date: May 6 1970
U.S. Chart Peak: 1
U.K. Release Date: Apr 17 1970
U.K. Chart Peak: 2
Charted for: 47 weeks
(Click on the bold word TIME above and hear
Maybe I'm Amazed)!
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Posted by mitchsantell at 10:47 AM
March 20, 2007
It's All On The Tape!
Music has an amazing way of taking you back to another time. When Fleetwood Mac was in the studio back in 1976 working on Rumors released in 1977... they had no idea what a blockbuster the album would be. Going through an unbelievable amount of pain and drama, Fleetwood Mac would go on to produce an album that had so many hits on it that some Executives within the music industry simply wanted to call the album "Fleetwood Mac's Greatest Hits!"
What most of you don't know who are out there in the digital music space is this amazing fact. Rumors was recorded on good old Ampex 456 Tape. Two inches wide and a standard for 16 and 24 track recording, the feel off this tape had a warmth that is hard to match today.
Here is a little known fact about that album. Ready? Back in 1977 when Rumors was recorded they had a "safety back up" of the drum tracks. (This was also on 456 tape). By the time they got down to the final mix of the album, they noticed that all of the "high end" on the drum tracks including the high-hat could no longer be heard. It had rubbed off of the tape.
Lindsey Buckingham and Richard Dashut, the producers on the record knew they had a huge problem on their hands. What did they do? Using two multi-track recorders they had the original safety track playing in one ear and the original finished track in the other. This was painstaking work as they had to match the finished track with the safety in order for the tracks to work.
At What's Out Next, we know what dreams are made of and we are still in awe of the magic that was created. Now that is magic to our ears!
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Posted by mitchsantell at 12:34 PM
March 12, 2007
The Legacy Of Capitol Records!
Songwriter Johnny Mercer created Capitol Records in 1942 with Hollywood music store owner Glenn Wallichs and movie producer Buddy DeSylva. According to Stephen Fratallone's 60th anniversary tribute article, "Like Mercer's musical genius, Capitol Records was new, fresh and revolutionary. He wanted to form a record company where music that was recorded and the artists who recorded it were treated differently. He wanted to give new artists and veteran artists alike the freedom to grow and to expand their artistic palette. Capitol Records provided a competitive alternative to the three major record companies of the day -- Victor, Columbia and Decca -- all established in New York. With his new record company, Mercer helped to change the sound of American pop music and the way it was made. In her autobiography, It Might As Well Be Spring, singer Margaret Whiting, a close personal friend of Mercer's and one of the first singers to record on the new label, wrote that he "was a man bursting with talent and always looking for a place to channel his energies. This idea of a record company seemed ideal." Mercer took his idea to one of his best friends, Glenn Wallichs, the owner of Music City, the biggest record store in Los Angeles situated across from NBC. Wallichs loved the thought of being a part of such a venturesome endeavor. It was agreed upon that Wallichs would run the business while Mercer would find the artists and supervise their artistic output. All that was needed to set Capitol Records into motion was financial backing. Mercer looked to Buddy DeSylva, who, besides being a great songwriter in his own right, had become head of production at Paramount Studios. He had hired Mercer to do the score with Victor Schertzinger for The Fleet's In, a musical with William Holden, Dorothy Lamour, Eddie Bracken and Betty Hutton. DeSylva was also excited about Mercer's new project and quickly wrote him out a check for $25,000. Capitol Records was now in business."
By 1946 Capitol has sold 42 million records and was established as one of the Big 6 studios. In 1950 Capitol built its own studio on Melrose Avenue in Hollywood. In 1955, EMI acquired Capitol Records for $8.5 million. The Electric and Musical Industries (EMI) company was created in Britain in April 1931 by the merger of British Gramophone Company and the Columbia Graphophone Company. In November 1931 it had opened one of the world's great recording studios in North London at 3 Abbey Road. By 1955 Capitol was the fourth largest American record company, emphasizing popular music with Nat King Cole, Stan Kenton, Peggy Lee, Dean Martin. Frank Sinatra made 19 albums with Capitol 1954-62, with arrangers Axel Stordahl and Nelson Riddle. EMI decided to build a new studio in Hollywood that would be state-of-the-art equivalent to its Abbey Road studio in London.
The present Capitol Tower building was constructed in 1956 at 1730 Vine Street near Hollywood Boulevard. According to James Bayless, "In February of 1956, Capitol Records reached a long planned-for goal when West Coast operations were consolidated in a new combined studio and office building in Hollywood. The building is unique in a number of ways. It has already become a Hollywood landmark as it is the world's first office building in fthe form of a round tower. Now widely known as the 'Capitol Tower', the building was designed by Welton Becket, noted architect, and is a modern, striking, earthquake-resistant reinforced-concrete structure. It is 13 stories tall and 150' high, the maximum building height permitted in Los Angeles. The decor is in keeping with the outward appearance of the building. The ground floor, the only rectangular part of the building, is actually a separate structure which surrounds the tower and was joined to it after the entire tower was completed. It houses the Recording Department offices, tape-to-disk dubbing rooms, and three recording studios which were designed to be as modern and striking as the building itself."
I had to good fortune to watch Nik Venet, my mentor and partner produce The Chicago Conspiracy Trial at Capitol Records in front of a live audience. Those were the days!
Mary Hopkin's first single was Those Were The Days, released on Apple Records on August 30, 1968
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Posted by mitchsantell at 04:01 PM
March 07, 2007
Charlie Chaplin, Master Composer!
Back in 1943, actor Charlie Chaplin, age 54, marries 18-year-old Oona O'Neill, daughter of playwright Eugene O'Neill. Chaplin had a habit of marrying younger women--his first three wives were also teenagers when he married them. The couple spent most of their marriage outside the United States after being denied re-entry to the United States by immigration officials in 1952. Chaplin, an English citizen, was suspected of communist ties. The couple did not return to the United States for 20 years. Instead, they settled in Switzerland, where they raised eight children.
One of Mr. Chaplin's most amazing gifts was the beautiful music he composed for his films. We tip our What's Out Next! hat to you Charlie. Sometimes to look at What's Out Next, you have to look at what came before. Every time I see Charlie Chaplin or hear his music, it simply makes me smile!
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Posted by mitchsantell at 12:52 AM
March 04, 2007
The Power of Artist Development
The Original Ode Label from 1971
Ode Records was a record label started by Lou Adler in 1967 after he sold Dunhill Records to ABC Records. Between 1970 to 1976 Ode was happily distributed by A&M Records. One of the artists at Ode was Carole King. Yesterdday, we did a tribute to a brand new artist Elly. To prove the point of how important it is to support an artist, Carole King Released an album called NOW THAT EVERYTHING'S BEEN SAID. The result? A commercial failure. Next? Carole King Released a follow up album in 1970 called WRITER. The result? Another commercial failure.
The Original Album Photo for Tapestry
Ms. King, a true artist kept going and in 1971 Released TAPESTRY. The result? The album went all the way to Number 1, produced 4 Grammies and remained on the Billboard Top 200 Album Chart for over 5 years.
The album sold 10 Million copies in the United States and sold an estimated 22+ Million world wide. As the crowing point to this album, Rolling Stone magazine rated Tapestry #36 on their "500 Greatest Albums of all time!"
It's not to late to go back and do it right! Support those artists both established and new!
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Posted by mitchsantell at 09:53 PM
March 03, 2007
The Power of New Talent
17 Year Old Elly
Elly is only 17 years but our prediction here at What's Out Next is that she has a bright future. How bright? You'll have to wear sunglasses to see it! Elly is the discovery of George Landress. If you don't know George he has as much passion for new talent as he does the music business. Mr. Landress has worked with a who's who of the music business and you can see his full credits here.
Yesterday I asked George about Elly and he stated that "It's time that young pop talent start to put out positive and upbeat messages." We applaud both George and Elly for sharing their passion with us.
Artist Development is the key to long term careers and until more professionals take on the "approach" and "passion" that George Landress has, we will continue to see one hit talent. Don't just sit there, go help some talent!
As Elly would say, is it something about you?
Check out Elly's my space now!
Copyright © 2007 Ambience Music Group. All Rights Reserved.
Posted by mitchsantell at 02:14 PM
March 02, 2007
ASCAP Is Doing Things Right!
The most common question that I receive each and every day is: "Mitch, how do I move my music career forward?" My answer is a question. Ready? Does your net-work? The most common mistake that new people to the music business make is not networking and being mentored by other professionals. This is an important first step. If you look right now at the Billboard Top 100 chart, you'll notice that most of the bigger hits (with real sales) were written by by more than one songwriter. I strongly urge collaboration.
ASCAP which stands for The American Society Of Composwers, Authors and Publishers puts on an event that started last year. The 2007 ASCAP I Create Music Expo is especially amazing because ASCAP is going to allow those who participate in their expo to attend the 24th Annual Pop Music Awards that is being held at the World Famous Kodak Theatre right in the heart of Hollywood!™
So don't just walk, you need to RUN to this event to help you make your dreams come true!
Direct from their web site....
The 2007 ASCAP "I Create Music" EXPO — the only national conference dedicated to songwriting and composing — is gearing up to be another one-of-a-kind, must-attend event for music creators across all genres and those that support them. Building upon the success of the sold-out 2006 EXPO, ASCAP has developed a wide array of exciting new opportunities in creating a bigger, more comprehensive and interactive EXPO for 2007.
So simply run to the ASCAP web site and sign up before the conference is sold out! (Click on the ASCAP Graphic at the top of this posting and it will take you to the page)!
Artist: Hinkel Title: Not A Life-Saving Device
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Posted by mitchsantell at 01:42 PM
