Music Biz Academy Digest - Issue #20 - October 3rd, 2001
An update from http://www.musicbizacademy.com.

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IT'S ALL THE RAGE....
Good afternoon, fellow musicians! The buzz this week? MP3.com
dropped a bombshell on it's artists, reducing it's pay-for-play
rates nearly 75% in many cases. Many musicians were calling for
lawsuits, petitions and boycotts against MP3.com, but the fact
remained that from the very beginning, MP3.com made it clear that
they pay-for-play model could be reduced - or dropped altogether
- at any time. The new payback model pays a meager one half cent
for each unique play of an artist song per day. That means for
1000 unique plays, an artist makes $5 in 'royalties'. Previously,
artists getting 1000 plays might make $15-$20 depending on a
variety of formulas.

Though the drop on payback rates was a shock for many, MP3.com is
trumping other, more positive developments for it's artists,
including a new 'Premium Artist Service' model that will costs
participating artists in the neighborhood of $5 a month as
opposed to $20 per month. The new Premium Service model, which is
proported to include three different 'tiers,' will offer added
value to existing artists, including free enrollment in MP3.com's
music licensing program, two months of free audio hosting, and
special PAS only discounts. See http://www.mp3.com/premium/ for
details.

What's our take on all this? Well, it's typical MP3.com - a
business idea trying to survive, to move forward as a new,
healthy model that will generic revenue. As money dries up for
dot.com businesses, it's only natural that we'll see further
changes as MP3.com tries to become leaner, meaner, and more
focused on delivering quality music to it's customers.

Many musicians are concerned that MP3.com, recently acquired by
Vivendi Universal, is trying to push independent artists out,
making more room for it's own established artists. Is that what
is really going on here? It's hard to say, but our gut, and our
contacts in the industry, suggest it's not. MP3.com insists they
are dedicated to their artist community, and frankly, at least so
far, we believe them.

When all is said and done, MP3.com still offers more for
independent musicians that most services of it's kind. It offers
traffic in huge quantities, the opportunity for exposure to
thousands, and attractive artist sites that you, as the artist,
have nearly complete control over. You can create digital CDs and
sell them at no cost to you. You can market yourself to your
hearts content, and you don't have to be a Premium Artist Service
member to do that.

Now, before you accuse us of kissing up to MP3.com, let's make
this clear - we didn't appreciate the way in which the new
changes were handled. The changeover, drastic as it was, was
communicated to artists only a week before the event. And our
gratification at seeing MP3.com's own SOPHIE was going to host a
live Q&A forum about the changes was turned to annoyance when she
answered very few questions and provided only scant 'company'
answers. This only perpetuated the idea that MP3.com was turning
their nose up at the artist community (Fortunately, she has since
gone back, following up, and provided more substantial answers).

That being said, when all is said and done, MP3.com still offers
more exposure and flexibility to online musicians than most.
Don't forget the big picture. If you're going to be really
successful marketing your music online, don't depend on MP3.com,
or any other single site. YOU care more about your music than
anyone else. So, get out there and promote it. Not only on
MP3.com, but you should have your own web site, and be marketing
your music through other distributors such as CDBaby.com,
Amazon.com, CDStreet.com, Javamusic.com, Ampcast.com,
Vitaminic.com and others.

You can do it. We have faith in you. Get to it.

End of rant.


SUPPORT YOUR HOST!
MusicBizAcademy.com is free, the articles and directory are free,
but please show your support by trying out our music and support
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Stop by and check out a few tunes.


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Latest Additions To The Academy
http://musicbizacademy.com/articles/
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WHY YOU HAVE TO PROMOTE TO RADIO
http://www.musicbizacademy.com/articles/radio/index.htm
One of the most misunderstood facts of marketing a record is that
you must promote it to radio. Notice I did not say SEND it to
radio, I said promote it. Sending your release to radio, and
getting them to play it, are two separate things.


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The Music Business 101 'Insider'
http://musicbizacademy.com/knab/
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Recommendations by music business consultant, and instructor,
Christopher Knab...

SMALL RECORD LABELS SAY RADIO TUNES THEM OUT
http://www.latimes.com/business/la-000074454sep16.story
It's a safe bet that most radio listeners have never heard of
rock singer Matthew Harrison. The owner of tiny Third Monk
Records, which released Harrison's album, says there's a simple
reason: The company can't afford the hidden costs of obtaining
radio airplay.


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Recent Additions/Updates to the Musician's Directory....
http://www.musicbizacademy.com/directory
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ABOUT.COM: MUSICIANS' EXCHANGE
http://musicians.about.com/mbody.htm
About.com's Musicians' Exchange pages are among the best on the
net when it comes to keeping your pulse on what's going on in the
music biz. The site covers everything from todays music related
headlines to articles that specifically relate to the cares and
needs of independent musicians. The Musicians' Exchange features
easy to use navigation and numerous topics of interest, including
information on promotion, legal, gear, labels, producers, and
organizations. A good solid resource for musicians seeking
information on almost any topic.


MULTIMEDIA REPRODUCTION SERVICES
http://www.multimediarepro.com/
MRS offers a service most manufacturers do not - offset printing,
rather than screen printing, direct onto CD. That means that your
CD has a near photo-quality image, not the grainy, screen print
look you're used to seeing. We asked for samples and they sent
them to us promptly, and they were very impressive. Best of all,
their prices for complete packages were extremely competitive,
and their response to our queries was fast and friendly. In
addition to CD replication, MRS offers business card CDs,
cassette duplication, and video duplication. Definitely worth a
look.


SOUNDWERKS
http://www.soundwerkz.com/
Soundwerks is an artist development company located in
Jacksonville, Florida, that specializes in finding, screening and
developing quality unsigned talent for the music industry.
Soundwerkz is consulted by members of WEA, Sony and Universal
label groups, producers, promoters, managers, attorneys, agents
and media outlets. Services include contract consultation,
personal representation, demo shopping, production services,
license administration and web site design.


U.S. COPYRIGHT OFFICE HOMEPAGE
http://lcweb.loc.gov/copyright/
The U.S. Copyright Office has recently updated their web site to
make it much more user friendly. You'll find all the forms you
need, details on copyright basics, as well as the latest news on
copyright law. Get all your forms here.


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Articles From Around The Net....
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SMALL RECORD LABELS SAY RADIO TUNES THEM OUT
http://www.latimes.com/business/la-000074454sep16.story
It's a safe bet that most radio listeners have never heard of
rock singer Matthew Harrison. The owner of tiny Third Monk
Records, which released Harrison's album, says there's a simple
reason: The company can't afford the hidden costs of obtaining
radio airplay.


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Featured Music Industry News
http://www.musicbizacademy.com
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SONY: DOWNBEAT FOR A NEW ONLINE MUSIC BATTLE
http://www.cnn.com/2001/TECH/industry/09/27/sony.music.battle.idg/index.html
The battle over online music could soon be hitting consumers at
home. Large music companies are still fighting to prevent pirated
copies of their songs from appearing online -- and the latest
move could prevent consumers from playing their legally bought
CDs on their PCs. On Tuesday, Sony confirmed that it had
incorporated copy-protection software in promotional CD copies of
the Michael Jackson single "You Rock My World." This made it
impossible for radio producers to play the CD on PC CD-ROMs or to
rerecord the single.


MUSICNET READY, BUT WILL IT PLAY?
http://www.wired.com/news/business/0,1367,47151,00.html
MusicNet gave its technology platform to its distribution
partners on Thursday, moving a step closer to offering the first
music industry-endorsed alternative to Napster. Analysts believe
that new commercial services like MusicNet face several hurdles,
not the least of which is convincing users to pay a fee after
getting music for free on Napster and copycat services for years.
"Free and unlimited is a difficult thing to compete with;
however, I think we are offering things that consumers will
like," said Richard Wolpert, MusicNet's strategic adviser. At
launch, subscribers will be able to choose from about 100,000
tracks, company officials say.


UNIVERSAL MUSIC TO MODIFY CDS TO CURB PIRACY
http://www.latimes.com/business/la-000076983sep26.story?coll=la%2Dheadlines%2Dbu\
siness
Vivendi Universal disclosed plans Tuesday to combat piracy with
CDs that resist digital copying. Universal Music Group will
modify an undisclosed number of new releases in the fourth
quarter to prevent "ripping," or using a computer to record
compressed digital versions of the songs on a compact disc.
Several labels have been experimenting with various types of
anti-copying software, and Universal officials declined to say
which technology they planned to use.


EMI PROFIT TO SLIDE 20%
http://europe.cnn.com/2001/BUSINESS/09/25/emi/
EMI, the biggest music publisher, warned on Tuesday profit for
the year would slide 20 percent as conditions in the industry
deteriorate. The world's third-largest record company, with
artists such as Radiohead, Janet Jackson and Mariah Carey on its
roster, said it has seen a "marked deterioration" in conditions,
particularly in the U.S. and Latin America. EMI's stock plunged
more than 26 percent after the warning.


NAPSTER'S COST OF LIVING: $100 MILLION
http://news.zdnet.co.uk/story/0,,t269-s2096140,00.html
Bertelsmann's quest to keep the controversial Napster alive has
cost the media giant more than $100m--and it could become even
more expensive. Napster's deal with music publishers announced
earlier this week will cost the company $36m up front--$26m to
settle the publishers' ongoing lawsuit, and another $10m as an
advance on future licensing fees. That money, sources close to
both companies say, is coming from Bertelsmann's pockets.


NAPSTER, MUSIC INDUSTRY STRIKE A DEAL
http://seattlep-i.nwsource.com/business/40105_napster25.shtml
Edging closer to legitimacy, Napster Inc. yesterday tentatively
settled a lawsuit filed by music publishers and struck a deal
that could lead to legal and fee-based song distribution online.
Under the proposed settlement with the National Music Publishers'
Association, Napster will pay $26 million for past unauthorized
use of music and $10 million down payment on future royalties.
The deal also sets up terms under which songwriters and music
publishers can license music to Napster's fee-based service,
which is now expected to be launched by the end of the year.


REALNETWORKS UNVEILS ITS NEW MEDIA PLAYER
http://c.moreover.com/click/here.pl?e25034057&e=6454
RealNetworks Inc. will announce details behind its latest
streaming media software today, a product that executives and
analysts are calling one of the most important in the company's
seven-year history. RealOne, as the new offering will be known,
combines many of the features of existing products -- including a
player for watching and listening to Internet broadcasts and an
integrated RealJukebox music service. It also includes a built-in
browser for Internet searching.


PRESSPLAY, MUSICNET STILL AIM TO LAUNCH THIS YEAR
http://www.billboard.com/billboard/daily/article_display.jsp?vnu_content_id=1060\
567
While the major labels' digital music subscription offerings may
not be coming together as quickly as was originally anticipated,
representatives of Pressplay and MusicNet say the services are
still on target to launch before the end of the year, Billboard
Bulletin reports.


POLICE FIND EUROPE'S LARGEST COVERT PIRATE MUSIC CD PLANT
http://mi2n.com/press.php3?press_nb=27713
Police in Germany have seized the largest underground pirate CD
plant to be found in Europe in an action welcomed by the
international recording industry today. Raids on the plant near
Cologne last week uncovered CD manufacturing equipment with an
estimated production capacity of more than one million illegal
CDs a year. The plant was producing CDs by top international
artists, as well as German repertoire and pirate compilation
albums for the Dutch market. Pirate bootleg copies of the recent
Madonna 'Drowned World' tour were found at the site.


POOR OUTLOOK FOR PAID-FOR ONLINE MUSIC
http://news.bbc.co.uk/hi/english/sci/tech/newsid_1556000/1556097.stm
As the major record labels prepare to roll out online
subscription services, a new report suggests young people are not
yet ready to pay to download music from the internet.
Researchers found that 62% would continue to access MP3 music
files for free and had no plans to stop.
To compete, the new commercial services would have to offer much
more than what people can already get for free, said the report
by the digital research company Webnoize.


9TH CIRCUIT IS SICK OF HEARING NAPSTER TUNE
http://www.law.com/cgi-bin/gx.cgi/AppLogic+FTContentServer?pagename=law/View&c=A\
rticle&cid=ZZZWYJ2LTRC&live=true&cst=1&pc=3&pa=0&s=News&ExpIgnore=true&showsumma\
ry=0
Like cops raiding a late-night litigation dance hall, the 9th
U.S. Circuit Court of Appeals on Tuesday pulled the plug on any
further noise by lawyers in the contentious Napster case.
Once a high-profile battle predicted to define the boundaries of
copyright law for the information age, it has now come to this:
The 9th Circuit ordered that lawyers "refrain from filing any
further papers in the office of the clerk of this court bearing a
caption in any of the [related cases]."


MP3.COM ARTISTS RUSH TO ASSIST VICTIMS THROUGH MUSIC, DONATIONS,
COMPASSION
http://mi2n.com/press.php3?press_nb=27463
Even before the dust had settled during Tuesday's terrorist
attacks on U.S. soil, members of the MP3.com artist community
pulled together to provide aid and comfort to victims and their
families. Utilizing MP3.com message boards, emails and web pages,
artists rushed to motivate others to donate blood, compose songs
and organize benefit concerts. A wide variety of suggestions were
discussed for contributing to relief efforts.


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Recommended Resources
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HOW TO PROMOTE YOUR MUSIC SUCCESSFULLY ON THE INTERNET
http://www.musicbizacademy.com/bookstore/htpromotemusic.htm
If you want to sell your music on the net in any form, this book
will teach you how to design and market a web site that will SELL
YOUR MUSIC and bring in that extra income you need to boost and
financially support your music career! The author is currently
making over $4000 a month selling music related products and
advertising on the internet. 'How to Promote Your Music
Successfully on the Internet' shows you exactly how he did it,
step by step! Download Version Available for only $14.95!


MUSIC IS YOUR BUSINESS
http://www.musicbizacademy.com/bookstore/musiciyb.htm
Used as the official textbook for the Art Institute of Seattle's
Audio program, this invaluable book is filled with insights into
the music business and tactics for marketing your music. It
includes examples of industry marketing documents, a sample of an
artist bio and fact sheet, and checklists for starting your
career and running your own record label. Available in hard copy
for $34.95!


THE GUERRILLA MUSIC MARKETING HANDBOOK
http://www.musicbizacademy.com/bookstore/guerrillamusic.htm
This guide to independent music success features over 175 ways to
thrive and prosper with your own band or record label. Download
Version Available! The PDF version of this great book is now only
$29.95!


THE MUSICIAN'S ATLAS - 2001 Edition
http://www.musicbizacademy.com/bookstore/musiciansatlas.htm
Created by The Music Resource Group, this 368-page volume
provides access to over 15,000 music businesses and key industry
contacts in more than 25 categories. Current names, phone and fax
numbers, e-mail and website addresses, detailed submission
policies and the styles of music preferred is just some of the
information you'll find on every page of The Atlas. Available in
hard copy for only $24.95!


THE INDIE CONTACT BIBLE
http://www.musicbizacademy.com/bookstore/indiecontactbible.htm
Need to create some BUZZ about your music? Looking for reviewers?
Radio station contacts? Promotion services? Then grab The Indie
Contact Bible. This fantastic new musicians 'black book' contains
350 pages filled with contacts with publications and radio
programmers all over the world. These are people who actively
look for music to review! Download or Hard Copy Version Available
for $19.95!


101 MUSIC BUSINESS CONTRACTS
http://www.musicbizacademy.com/bookstore/101contracts.htm
Can’t afford a lawyer? That’s OK. We’re here to help, with 101
Industry Standard Contracts available for instant download, or on
CD, or printed in a binder just for you. All for less than what
you would pay an Entertainment Lawyer for 15 minutes worth of his
time.


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ALSO FROM MIDNIGHT RAIN PRODUCTIONS

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THE FREE SHEET MUSIC GUIDE
http://www.freesheetmusicguide.com

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http://www.sheetmusicaddict.com

WHISPERINGS: SOLO PIANO RADIO
http://www.mp3.com/stations/whisperings

Thanks for your continued support of The Music Biz Academy!

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The Music Biz Academy Digest is brought to you by The Music
Biz Academy (http://www.musicbizacademy.com) . It is a resource
designed for musicians promoting or selling music on the
internet. Each week we feature news, articles, and reviews
related to the art of online music promotion and music related
product sales.

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