Amy Macy

Label operations

Every record label is uniquely structured to perform at its best. Often times, the genre of music along with the “talent pool” of actual label personnel dictate the organization and inner-workings of the company. As talent is signed to a label, the “artist” will come in contact with nearly every department in the process of creating a music product for the market place.

Timeline
of the “artist” as they come in contact with every department

A typical record label has many departments with very specific duties. Depending on the size of the label, some of these departments may be combined, or even outsourced, meaning that the task the department fulfills is hired out to someone not on staff of the label. But the end result is the same—to create a viable music product for the marketplace. In the following structure, there is usually a general manager or senior vice president of marketing who coordinates all the marketing efforts.

Getting started as an artist

As talent is being “found” or developed, the first contact with a record label is usually the artist & repertoire department. The A&R department is always on the hunt for new talent as well as songs for developing and existing artists to record. But before the formal A&R process occurs, the talent has to be signed to the label.

  Figure 4.1 Typical record label structure

Business affairs

The business affairs department is where the lawyers of a label reside. Record company lawyers are to negotiate in the label’s best interest. Most often, new talent will have a manager and lawyer working on their behalf, with the contract in the middle. Clearly, the label wants to protect itself and hopes to reduce risk by maximizing the contract.

A contract may take months to negotiate. Depending on the agreement and nature of the deal, the artist/manager/lawyer may sign a contract a year or more prior to street date of the first release

  Figure 4.2 Business affairs quote

Besides being the point person for artist contracts, label lawyers negotiate and execute many other types of agreements, including:

  License of recordings and samples to third parties

  Negotiate for the right to use specific album art.

  Point person when an artist asks for an accounting or audit of royalties

  Renegotiates artist contracts

  Contractual disputes such as delivery issues

  Conflicts with contract such as being a guest artist on a project for another label

  Vendor contracts and relations

Once an agreement is reached, the accounting department will distribute “advances” to the artist, as outlined in the contract.

Often times, the accounting department falls within business affairs, since the two are related regarding contractual agreements and financial obligations. The accounting department is the economic force driving all the activity within the record company. It takes money to make money, and the accounting department calculates the budgets for each department as it aligns with the forecast of releases. Most record label accounting departments have sophisticated forecasting models that calculate profitability. Each release is analyzed to determine the value of its contribution to the overhead of the company. This analysis is examined in the profit & loss (P&L) statement, which acts as a predictor equation as to the break-even of a release and its future value over time. (P&L is discussed at great length in another chapter.) Additionally, the accounting department acts as an accounts payable/receivable clearinghouse, managing the day-to-day business of the company.

Artist & repertoire

The A&R person’s job is “to direct the long and complicated creative process with the artist: choosing a producer, finding the right studio, deciding which songs you’ll record, finishing the record with an engineer, sequencing the record, and then mastering it,” according to Madelyn Scarpulla (2002).

The A&R process, from securing the talent to finding the musical content, can take months. Ideally, masters should be delivered 4 months prior to street date.

The ultimate job of the A&R department is to acquire masters for the label to market. To do so, labels obtain masters in several ways. As in any business, labels need to manage risk. Repackaging and remastering previous recordings is the safest way to produce a master—by creating compilations of known artists with successful sales histories. How it is marketed eventually determines its success, but the label knows what it has from the start. A successful example of repackaging would be the Beatles #1 reissue—still the number one selling artist on the EMI roster.

Purchasing a master already produced is another way to manage risk. Many artists will work in conjunction with producers to create a recording, with the idea that the master will be marketed and purchased by a label, and that the artists will secure a recording contract. Again, the label knows what it’s selling, since it has the final product in hand. An example is Matchbox Twenty, produced by Matt Serletic.

  Figure 4.3 Artists and repertoire quote

The riskiest of masters is that of signing an unknown artist (Hull, G., 2004). Record labels must feel that the talent warrants a contract, with an ear in the creation of the master. Labels take many approaches to this process. But each project has similar determining qualities, such as which songs should be recorded, how many songs will be included, and who will produce the sessions. Along with the artist, the A&R department designates a producer or producers for a project. Trust is placed in the producer, who needs to be compatible with the artist and hold the same vision that the record label has conceived for the act. Various projects are pivotal on who produces. Some producers are very “hands on” with regards to the creative input, by sharing the co-writing role or playing on the master itself. These producers tend to lend credence to the project and assist its marketability. A current example is Alicia Keyes and Ludacris’ debut releases, both produced by Kanye West, who became a notable producer on Jay-Z’s albums, and who has become an artist in his own right.

Other artists may need less of a heavy hand, but more like subtle guidance from both the A&R department as well as the producer. Songwriting artists have a unique quality, since both the content and the creation are open to direction. And these artists can have strong ideas as to their music and how they want it produced. But A&R representatives can take very active roles in the direction of the project, by aiding the songwriting process and nurturing the recording through the entire timeline. It all depends on what the label is looking for in the final product.

Artist development/relations

Sometimes called the product development department or product managers, this department manages the artist through the maze of the record company and its needs from the artist. Madelyn Scarpulla describes them as, “the product manager in effect is your manager within the label” (Scarpulla, M., 2002). Artist Development specialists hold the hand of the artist, helping them clarify their niche within the company. Artist development usually cultivates strong relationships with the artist and artist manager, with other departments in the company looking to artist development as a clearinghouse, and helping to prioritize individual department needs with the artist. In some situations, the artist development person is in charge of the imaging and works with creative services early in the project, whereas the artist relations person is the post-release contact liaison at the label for tour support, and so forth.

Once a contract is signed, an artist usually assigned an AD representative 12 months prior to Street Date

The artist development/product manager has been compared to the hub of a wheel where the spokes are the various marketing and development functions that occur within a label. Everything is funneled through the AD. Artist Development not only manages the artist through the process, such as the delivery of the recording, photo and video shoots, and promotional activities, but also looks for additional marketing opportunities that maximize the unique attributes of the act.

Creative services

Depending on the company, the creative services department can wear many hats. Artist imaging begins with creative services assisting in the development of style, and how that style is projected into the marketplace. Special care is taken to help the artist physically reflect their artistry. Image consultants are often hired to assist in the process. “Glam Teams” are employed to polish the artist, especially for high-profile events such as photo and video shoots, and personal appearances.

As the A&R process evolves, a photo shoot is needed to represent the content of the recording. 6 months prior to Street Date

The creative services department often manages photo and video shoots, setting the arrangements and collaborating on design ideas and concepts with the artist. Once complete, images are selected to be the visual theme of the records and the design process begins. In some cases, creative services contain a full design team that is “in-house” and a part of label personnel. Such in-house teams can ensure quality and consistency in imaging of the artist, and that the album cover art is the image used on promotional flyers, sales book copy, and advertisements. When there isn’t an in-house design crew, design of album cover art and support materials is farmed out to outside designers. Interestingly, the use of subcontractors can enhance unique design qualities beyond the scope of in-house designers, but there can be a lack of cohesive marketing tools if not managed properly.

Publicity

The priority of the publicity department is to secure media exposure for the artists that it represents. The publicity department is set into motion once an artist is signed and helps define the message that will represent the artist. The biography of the artist via an interview is created. Other tools such as photos from the current photo shoot, articles and reviews, discography, awards and other credits, are collected into one folder, creating a press kit for each artist. These press kits are tools that are used by the publicity department to aid in securing exposure of their artists and are often sent to both trade and consumer outlets.

Creating a press kit for advance awareness occurs shortly after photo shoot; 5 months prior to Street Date

Pitching an artist to different media outlets can be a challenge. As an artist tours, the ideal scenario would be that the local paper would review the album and promote the show. Additional activities would be to obtain interviews with the artist in magazines and newspapers. Booking television shows and other media outlets falls to the publicity department as well. Since label publicists work with more than one act at a time, on occasion, artists will hire their own publicists to focus on them and assist in creating higher profile events for the act. These publicists try to work with label publicists to enhance in-house efforts and build on relationships already established.

  Figure 4.4 Publicity quote

Amy Willis, Media Coordinator at Sony Music Nashville, says the publicist should be a first-rate salesperson with good time-management skills, and also needs to be creative and flexible.

Radio promotion

In most record companies, the number one agenda for the promotion department is to secure radio airplay. Survey after survey continues to conclude that music consumers learn about new product and artists via the radio. Typically, radio promotion staffs divide up the country into regions, and each promotion representative is responsible for calling on specified radio stations in that region, based on format. Influencing the music director and radio programmer is key in securing a slot on the rotation list of songs played. These communications often take place on the phone, but routinely, radio promotion staffs visit stations, sometimes with the artist in tow, to help introduce new music, and secure airplay.

Depending on the genre, the 1^st radio single needs to be released to garner airplay and create demand. Artist visits with radio can enhance airplay. 3 months prior to Street Date

With the consolidation of radio stations continuing, developing an influential relationship with individual stations is getting harder and harder. But there still exists a level of autonomy within each station to create its own playlist as it reflects their listenership. To strengthen the probability of radio airplay, promotion staffs conceive and execute radio-specific marketing activities such as contests, on-air interviews with artists, listener appreciation shows, and much more. Independent radio promotion will be addressed in Chapter 8.

Sales and marketing

The sales and marketing department sell product into retail and create visibility of the product at the consumer level. If all the other departments have done their job correctly, selling the music to retail should be easy, since there will be a pent-up demand for the release. But to ensure sales success, the sales and marketing department must create awareness to the gatekeepers.

By visiting retail buyers, artists can assist in the set-up and sell-through of their record. Solicitation process begins 2 months prior to Street Date

Within the majors, the distribution company is part of the conglomerate, and is currently a vital conduit within the vertical integration of entertainment companies. Independent labels look to their distributors with the same vitality, but the enhanced financial relationship is not as prevalent. In either scenario, the sales departments of these labels look to their distributor not only as their partner, but also their first line of customers. The distribution company needs to be well-informed as to new releases and the marketing plan that goes with them so that they can represent the product to retailers. To do so, sales departments educate their distributor by often visiting distribution offices, sharing with them detailed marketing plans for upcoming releases.

  Figure 4.5 Marketing and creative services

The second line of customers is retail. Sales departments continue the education process by informing retailers as to new releases and marketing plans. In tandem, record label sales representatives, along with the distribution representative, will visit a specific retailer together (and on occasion, may bring an artist by to visit with the retail buyer). In the standard retail visit, the amount of music that is to be purchased by the retailer, along with any specific deal and discount information, is discussed. Co-op advertising is usually secured at this time as well, with pricing and positioning vehicles along with other in-store marketing efforts concluded.

New media

Although not always freestanding, a burgeoning entity is the New Media Department. Often housed within other departments, New Media is responsible for the “face” of the label, designing and maintaining the label’s website and the image it wants to project. But it can be a retail site, and/or a B2B exchange, along with other job responsibilities that are synergistic to the entrie label, both interal and external. A thorough examination of the internet is discussed in Chapter 14.

  Figure 4.6 Timeline

Glossary

A&R department – Charged with finding new talent for the label and helping that talent develop.

Artist development – Sometimes called the product development department or product managers, this department manages the artist through the MAZE of the record company and its needs from the artist.

Business affairs department – Where the lawyers and accountants reside at a record label.

Creative services department– In charge of imaging, graphics, photos and design.

Promotion department – Secures radio airplay.

Publicity department – Secures media exposure for the artists and writes materials such as press releases, bios, and so on.

Sales and marketing department – Sells product into retail and creates visibility of the product at the consumer level.

Bibliography

Hull, G. (2004). The Recording Industry, Routledge, p. 139.

Scarpulla, M. (2002). www.starpolish.com. A&R.

Scarpulla, M. (2002). www.starpolish.com. Product Manager/Marketing Department.