Music Biz Academy Digest - Issue #38 - June 25th, 2002
An update from http://www.musicbizacademy.com.

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THE MUSIC BIZ ACADEMY
http://www.musicbizacademy.com

The Musician's Online Directory:
http://www.musicbizacademy.com/directory

The Academy (Articles and Tips)
http://www.musicbizacademy.com/articles

The Bookstore
http://www.musicbizacademy.com/bookstore

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Welcome, subscribers to the June 25th edition of the Music Biz
Academy Digest!


IN CASE YOU MISSED IT....
Without a doubt, the biggest story to report to our readers is
the final decision over webcasting royalty rates issued by
Federal copyright regulators last Thursday. While many are
calling the decision a 'victory' for webcasters, in reality it
isn't quite all it's cracked up to be. In fact, it may be a
disaster for independent radio on the web. Let me explain:

The original proposal by the Copyright Arbitration Royalty Panel
(CARP) would have required Internet broadcasters to pay 0.14 cent
for each song streamed to each online listener. Thursday's
decision by the U.S. Copyright Office cut that rate in half,
setting it at 0.07 cent (that's about 1/14th of a cent) per song
stream. That doesn't sound like much, (which is why some are
reporting it as a 'victory for webcasters) but it adds up very
quickly.

For example, Live365.com, the largest independent radio presence
on the Internet, currently operates some 30,000 stations.
According to a statement by it's vice president John Jeffrey,
under the new rates, Live365.com will be forced to shell out
approximately $100,000 per month in new fees. This is in addition
to performance rights fees that are already being paid to BMI,
ASCAP and SESAC.

In ADDITION to this, webcasters must pay this new fee RETROACTIVE
to October of 1998! SomaFM, an independent webcaster already
shutting their doors, estimates this would leave a station with
1,000 listeners with a $500,000 dollar bill due to the RIAA by
October of this year.

Look at it this way - under the new scheme, the RIAA will earn
.70 for every 1000 song plays. Webcaster Spinner.com states that
it streams more than 22 million songs every week on it's 150+
music channels. If my calculations are correct, that means the
RIAA would receive $15,400 PER WEEK just from from Spinner.com.

You would think that the RIAA would be satisfied with this
decision, but they are not. The fee, they say, is too low.

Hmmmm.

The first of the new royalty payments (including retroactive
payment) is due from webcasters on October 20th, 2002.

It will be interesting to watch and see how this changes Internet
radio over the next six months. Some small webcasters are
already closing up shop.

For more on this development, see the following:

SUMMARY OF THE DETERMINATION OF THE LIBRARIAN OF CONGRESS ON
RATES AND TERMS FOR WEBCASTING
http://www.copyright.gov/carp/webcasting_rates_final.html

WILL LOWER ROYALTY RATES SAVE ONLINE RADIO?
http://www.mtv.com/news/articles/1455363/20020621/index.jhtml

WEBCASTING FEE COMPROMISE RULING PLEASES NONE
http://geek.com/news/geeknews/2002june/gee20020621015083.htm

BIG NAME MICROCASTERS PULL THE PLUG
http://www.theregister.co.uk/content/6/25840.html

CUT IN WEBCAST ROYALTY RATES ANGERS BOTH SIDES
http://www.siliconvalley.com/mld/siliconvalley/3513708.htm


David Nevue
Editor, The Music Biz Academy
http://www.musicbizacademy.com/internet/index.htm
http://www.mp3.com/davidnevue


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THE INDIE MUSICIAN'S PDF POWER PACK!
http://www.musicbizacademy.com/bookstore/index.htm
Get three of our best-selling books for one low price! Set
includes 'How to Promote Your Music Successfully on the
Internet', 'The Indie Bible' and 'Music is Your Business' - All
for only $49.95 emailed to your inbox!


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Latest Additions To The Academy
http://musicbizacademy.com/articles/
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HOW TO ACCEPT CREDIT CARDS ON THE INTERNET
(AND INCREASE YOUR CD SALES!)
http://www.musicbizacademy.com/internet/ecommerce.htm
To run a successful business on the Internet, credit card
acceptance is an absolute must. Unfortunately, accepting credit
cards typically means setting up a merchant vendor account with a
bank and incurring additional monthly costs. A tough call for
most musicians. Here are some tips that will get you up and
running fast, without the huge expense or hassle.


TEST YOUR KNOWLEDGE: RECORD DISTRIBUTION
http://www.musicbizacademy.com/knab/articles/distributiontest.htm
Here is a test that will give you some very important clues about
the types of deals that exist between labels, distributors and
music retailers; as well as some insights into the preparation
plans for marketing music products.


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MUSICDISTRIBUTION.COM
http://www.musicdistribution.com/
MusicDistribution.com aims to help you find the best places to
promote, sell, and distribute your music on the Internet.
Includes our top 10 list, music promotion tips, and
recommended resources.


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Recent Additions/Updates to the Musician's Directory....
http://www.musicbizacademy.com/directory
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COPYRIGHT AND PUBLISHING Q&A BY NANCY REESE
http://www.musesmuse.com/pubq-a.html
This copyright Q&A archive is, without question, the most
complete and informative data repository we know on the subject.
If you have any questions at all about the legal side of the
music business, chances are you will find the answer here. Topics
include demo/recording agreements, pitching & representation,
licensing, collaboration, registration of works, performing
rights organizations, work for hire, publishing Agreements and
many more. There is a lot of information to sort through here,
but it's well worth the time.


LAW ARTICLES FOR RECORDING ARTISTS AND SONGWRITERS
http://www.ivanhoffman.com/recording.html
Here are a few articles from Ivan Hoffman, Attorney At Law, on
issues that effect the recording artist and songwriter. Articles
include The Six Potential Traps In A Recording Contract,
Recording Contract Royalties, Owned and Controlled Licenses,
Contract Exit Strategies and others.


PROSHIP ENTERTAINMENT
http://www.proship.com/
Are you a musician looking for some adventure? If so, Proship
Entertainment might be just the "boat" you're looking for.
Proship provides entertainment for over 50 luxury cruise ships -
with each crew ship able to accomodate up to six or seven bands
at a time. Proship is looking for a variety of musical styles to
entertain their guests. There are a number of "perks;" You'll get
to visit exotic locations (Hawaii, the Caribbean, Alaska...), and
all airfare, accomodations, and on-board meals are paid for by
the cruise line. Proship provides work year round, and all
contracts run from 1- 6 months


RAINMAKER PUBLICITY
http://www.rainmakerpublicity.com/
RainMaker specializes in generating buzz for your band by
promoting your new release, gigs, tours, setting up radio
interviews, pitching feature stories to magazine editors and
setting up in-store performances. For example, for a local CD
release, RainMaker pitches your CD to local press (including
fanzines, magazines, and newspapers), local college and
commerical radio, and e-zines and online sites. RainMaker also
offers extensive national promotion services as well as tour
support. Their rates are extremely reasonable (running $45/hour
as of this writing) and they do accept credit cards. Check out
their huge, overwhelmingly positive list of testimonials from
clients.


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Contests, Competitions, and Opportunities
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WINDRIFT MUSIC SONGWRITING COMPETITION 2002
http://windriftmusic.com/contest_2002.html
Windrift Music and Sonic Foundry (Sound Forge/ACID), are
sponsoring the 2002 Songwriting Competition. Prizes include
$1000 in cash, Sound Forge 5.0, Make Your own demo CD, 50
CDs courtesy of Windrift Music, 1000 promotional Flyers of CD and
more. The deadline is June 30th, 2002. $10US/16CDN entry fee.


B.E.A.M. GRANT PROGRAM HELPS UNSIGNED MUSICIANS
http://mi2n.com/press.php3?press_nb=33162
Making a living in the music world can be a tough goal to
achieve. Many talented musicians go unnoticed because they don't
have the resources needed to display their talents. To help make
some of these life-long dreams come true, Jim Beam® Bourbon will
award another $100,000 in grant money in 2002 to unsigned artists
through the B.E.A.M. (Benefiting Emerging Artists in Music)
program. Final grant deadline is August 30th.


THE INTERNATIONAL SONGWRITING COMPETITION
http://www.songwritingcompetition.com/
Enter YOUR SONGS now to WIN over $50,000 in prize money and
merchandise and have your music heard by the music industry's
top professionals! Categories include: Pop, Rock, Country, Folk,
R&B, Hip-Hop/Rap, World Music, and Lyrics Only. Entrants may
submit multiple songs in as many categories as they wish. $54,000
in cash and prizes will be shared by 27 winners. There is a $30
entry fee. All entries must be postmarked by September 30, 2002.


101 ONLINE MUSIC PR SOURCES - FREE TO TWO WINNERS EVERY MONTH
http://www.bob-baker.com/buzz/onlinepr.html
Bob Baker is giving away copies of his new music publicity
resource. "Some professionals hide their secrets, but not Bob,"
says Jeffrey P. Fisher, author of Ruthless Self-Promotion in the
Music Industry. Fisher is referring to Bob Baker's "Online Music
PR Hot List," a new downloadable book that reveals 101 places to
submit press releases, get reviewed, uncover PR connections and
promote your music on the Internet. Every month, Baker will give
away two copies of this new online music PR directory.


U.K. BROADCASTER SEEKING MUSIC VIDEOS FOR SKY TV
http://www.waterfall-studios.com/
Waterfall Studios is seeking seeking interesting or unusual music
videos from around the world to feature in a SKY TV series. The
series, 'Showcase TV' is broadcast throughout Europe. Artists
seeking exposure for their videos are welcome to submit their
material to Waterfall Studios, 2 Silver Road, Wood Lane, London
W12 7SG. They require Digibeta or BetaSP formats, (NTSC, PAL or
SECAM) although they can also accept U-MATICS. Further questions?
email James Weston at james@...


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Articles From Around The Net....
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NET RADIO GOING OFF THE AIR
http://www.theregus.com/content/6/25325.html
Webcasters were killing their shoutcast daemons - possibly for
the last time - after the US royalty arbitrator yesterday upheld
the RIAA's demands for back payments on per-song mechanical
copyright and onerous reporting requirements. The fact that the
Library of Congress reduced the royalty demand is almost
incidental. Webcasters already pay performance rights to ASCAP,
the BMI and SESAC (the European ASCAP) agencies. Now they have to
pay a punitive per-song fee - 0.07 cents per listener* - to the
RIAA too, a fee that US radio broadcasters don't have to pay,
backdated to November 1998.


I WANT MY ONLINE MUSIC
http://www.osopinion.com/perl/story/18303.html
I always thought the phrase "cut off your nose to spite your
face" was too overused and overrated --but with the hoopla over
swapping music files in full swing, I have no problem picturing
music industry execs, including the very vocal Hilary Rosen,
sitting around the conference table sans noses, congratulating
themselves on thwarting so-called pirates like Napster.
Yet common sense and hard evidence shows that they're inflicting
the greatest damage on themselves.


LET THE MUSIC PLAY: MY FAVE FILE-SHARING SOFTWARE
http://www.zdnet.com/anchordesk/stories/story/0,10738,2871586,00.html
File-sharing fans may have heard that Morpheus has recently come
out with a new version of its software, after its previous
upgrade was justifiably maligned as a big step backwards. Well, I
have some bad news for you: The new version is no better.
But there are still plenty of good file-sharing programs out
there. I've rounded up three of my current favorites from ZDNet
Downloads, including one that I've just come across. And all of
them are free.


EVERYTHING IS BUSINESS
http://www.globalexpressmedia.com/feat-everything_is_biz.shtml
There's an old saying that goes "If you're going to be in the
music biz, do it for the love of the music, not for the
money—because there isn't any". But wait a minute—that can't be
right—the music business is a multibillion dollar industry (it
says so in the music magazines so it must be true). Sure it's
true, but for many musicians, substantial profit is out of reach.
Article by David Holmes.


ANDY ALLEN TALKS ABOUT INDEPENDENT DISTRIBUTION
http://www.musician.com/feature/showfeature.asp?feature=6&cat=theindustry&subcat\
=distribution
Andy Allen, President of Alternative Distribution Alliance, talks
to Musician.com about how ADA chooses label product to
distribute. He also compares independent and major distribution,
and discusses how a label gets the best out of their distributor.


NEW RATES COULD MUTE NET RADIO
http://zdnet.com.com/2100-1106-938073.html
Federal copyright regulators on Thursday set new royalty rates
for online radio companies, halving previously proposed fees that
had drawn bitter criticism from Net companies. Under the new
rates, Web companies would pay 0.07 cent, or about a fourteenth
of a cent, every time they played a song online for a single
listener. Even with the dramatic drop in fees, Webcasters said
the decision could cripple many businesses. "It still looks
pretty oppressive," said Rusty Hodge, who operates SomaFM, a
popular San Francisco-based set of electronica stations. The
amount his stations would have to pay is "still way more than our
revenues are," he said.


THE RIAA STRIKES BACK
http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=208392
The music industry may have won the battle against Napster, which
recently filed for bankruptcy as part of a plan to sell its
assets to Bertelsmann. But the victory comes in the midst of a
larger war. The Recording Industry Association of America has
begun aggressively pursuing companies whose employees have
created mini-Napsters by downloading tunes onto company servers
and sharing them with folks in the cubicles next door. "We think
this could be a significant problem," says RIAA President Cary
Sherman.


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Featured Music Industry News
http://www.musicbizacademy.com
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JMM: MUSIC WILL EXTEND HOME NETWORKS BEYOND THE PC
http://mi2n.com/press.php3?press_nb=38161
Jupiter Media Metrix (NASDAQ: JMXI), the leader in Internet and
new technology analysis, today reports that although the ability
to share Internet access across several PCs will dominate the
home networking market in the near term, music will emerge as the
surprise killer application. According to an upcoming Jupiter
Research Home Networking Report, one-third of broadband users are
interested in installing a home network to listen to PC music
files on a home stereo.


NIELSEN/NETRATINGS: LAUNCHYAHOO.COM #1 MUSIC DESTINATION
http://mi2n.com/press.php3?press_nb=38255
Yahoo! Inc., a leading global Internet company, today announced
that LAUNCH, Your Yahoo! Music Experience, was once again ranked
the No. 1 Internet music destination in the U.S., according to
the Nielsen//NetRatings' MarketView report issued in June 2002.


RATES SET FOR ROYALTIES ON INTERNET MUSIC BROADCASTS
http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020620/ap_wo_en_po/us_intern\
et_radio_1
In a victory for Internet music broadcasters, the government on
Thursday decided that songs delivered online will be charged
royalty fees at a rate that is half of what was originally
proposed by an arbitration panel. Webcasters will be charged at a
rate that amounts to 70 cents per song for each one thousand
listeners, the U.S. Copyright Office announced on its Web site.


PHILIPS' BLUE LASERS SHRINK DISCS
http://zdnet.com.com/2100-1103-937790.html
Consumer-electronics giant Philips is demonstrating a prototype
miniature disc drive that uses a coin-size disc capable of
storing nearly twice as much data as a standard-sized CD.
The drive uses 3cm discs that can store up to 1GB of data.
Typical CDs, measuring 12cm in diameter, can hold up to 650MB of
data. The prototype drive measures just 5.6 by 3.4 by
0.75cm--suitable for use in portable devices such as digital
cameras, handhelds and cell phones--but the company is continuing
to work to shrink the drive.


MUSIC INDUSTRY WINS FIGHT AGAINST AUDIOGALAXY
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/06/18/BU1\
30973.DTL&type=tech
Two music industry groups claimed a quick victory over popular
song- swapping program Audiogalaxy Inc., which agreed to stop all
illegal file sharing to settle a 3-week-old copyright
infringement suit. Audiogalaxy, based in Austin, Texas, also
agreed to pay an undisclosed sum to the Recording Industry
Association of America and the National Music Publishers'
Association. The deal allows Audiogalaxy to continue to operate
by only offering songs that are authorized by artists and
songwriters.


CALIF. BILL SEEKS TO RESOLVE RECORDING INDUSTRY SPAT
http://money.iwon.com/jsp/nw/nwdt_rt.jsp?section=news&news_id=reu-n18363038&feed\
=reu&date=20020618&cat=INDUSTRY
One day after the Dixie Chicks settled a major lawsuit with their
record label, a California legislative committee moved a bill on
Tuesday designed to encourage other angry music stars to settle
similar gripes with the industry as a whole. The state Senate
Judiciary Committee passed a modified version of a bill
introduced by state Sen. Kevin Murray which would set new limits
on the contracts that the recording industry signs with its top
performers.


WEB MUSIC, CD DISTRIBUTOR TO MERGE
http://www.bizreport.com/article.php?art_id=3519&PHPSESSID=fb49ff89a7a4f2bc16bf6\
7f4061dbcc3
Liquid Audio Inc., which developed key aspects of Internet music
delivery, is merging with Alliance Entertainment Corp., a
privately held company that distributes CDs and other real-world
media to stores. "Combining the two businesses enables us to
provide a unique solution for both content owners and retailers
of home entertainment products as we see their digital and
physical delivery needs converging," said Alliance's president
and chief executive, Eric Weisman.



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Recommended Resources
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HOW TO PROMOTE YOUR MUSIC SUCCESSFULLY ON THE INTERNET
2002 Edition!
http://www.musicbizacademy.com/bookstore/htpromotemusic.htm
Learn the marketing and promotion methods that one musician uses
to bring in over $4000 a month in income from the Internet! There
are no 'pipe dreams' sold here. The author details step-by-step
how he finally said good-bye to his day job and starting spending
more time on his music. Download Version Available for only
$14.95!


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 - 2002 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 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
Bible. This fantastic new musicians 'black book' contains 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 $24.95!


MUSIC IS YOUR BUSINESS
http://www.musicbizacademy.com/bookstore/musiciyb.htm
This great offering from music biz consultant Christopher Knab is
now available in PDF format! Find out why so many musicians fail
and how you can get the 'edge'. Learn how to attract
distributors, radio play, and how to create a demand for your
music. Music Is Your Business includes excellent flowcharts and
graphs, demonstrating in simple terms how the industry operates.
Sample artist bio, fact sheet, and checklists for jump-starting
your career and/or running your own record label! PDF Edition
only $19.95!


THE INDIE MUSICIAN'S PDF POWER PACK!
http://www.musicbizacademy.com/bookstore/index.htm
Get three of our best-selling books for one low price! Set
includes 'How to Promote Your Music Successfully on the
Internet', 'The Indie Bible' and 'Music is Your Business' - All
for only $49.95 emailed to your inbox!


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Services
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GET REPRESENTATION
http://www.musicbizacademy.com/representation.htm
The Music Biz Academy has partnered with NOMA music, a very
well-established song placement and promotion agency, to help you get
your music heard. The mission statement of NOMA Music is threefold:

1) Placing bands, songwriters, instrumentalists, and solo artists
with established record labels.
2) Placing and licensing songs and music into television, film,
commercials, video, and animation projects.
3) Representing up and coming film and TV composers.

NOMA works with a large network of over 400 production companies.
Recent successes include client song placement in MTV's 'The
Osbournes', FX's 'The Shield', an NHL Hockey video, and three songs
in the upcoming film 'Employee of the Month' starring John Doe from
the band X. NOMA provides an aggressive program to get your music
into the right hands.


GET YOUR MUSIC ONLINE!
http://www.musicbizacademy.com/cdstreet.htm
We've partnered with CDStreet to offer one of the best deals on
the net for musicians looking to sell their music via the web.
CDStreet simply takes 20% of your CD price. If you sell a CD for
$12.99, you keep $10.39. If you need to ecommerce enable your web
site (as in, you need a shopping cart), you can use CDStreet to
do that as well. Visitors can rate your music, post reviews, get
news and information and listen to and purchase your music. Very
highly recommended, with lots of buzz on the ‘street’. There is a
one-time $29.95 set up fee, but no recurring or hidden charges. A
fantastic deal on a high-visibility, high-class web site.


MUSIC CAREER CONSULTING
http://www.musicbizacademy.com/consulting.htm
If you'd like some help getting your music career off the ground
or preparing for that next step, contact our expert music
consultant, Christopher Knab. Chris has been called "One of the
Most Influential People in the Northwest Music Industry." by
Seattle's Rocket Magazine. He is owner of FourFront Media and
Music, a consultation service based in Seattle that helps
musicians develop marketing and career plans.


RADIO & RETAIL PROMOTION
http://www.musicbizacademy.com/radiopromo.htm
If you're looking to promote your music either via radio or
through retail, we've teamed up with a radio promoter who has
quarterbacked campaigns for RadioHead (before they were stars),
Lit (Malicious Vinyl), and others. Our contact will help arrange
on-air interviews, CD reviews, and create a custom campaign
custom designed for your music.


ART DESIGN - CDs, Posters, One-Sheets, and Web Sites
http://www.musicbizacademy.com/artdesign/
In this business of music, image means everything! You know it,
we know it, the music industry knows it. Our hand-picked graphic
designers will help you make a powerful statement about your
music! Whether you need art design for your CD package, or just a
quick logo, it's all here. Check out the very cool one-sheet
designs, the perfect item to make your press kit stand out!


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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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