Entertainment Industry Facts and Figures

Question 1

size of global media

Answer 1

2 trillion dollars ($2T) includes music industry

Question 2

Nature

Answer 2

Integrated
ubiquitous
part of global media

Question 3

Majors

Answer 3

a. Universal Music Group (30%)
b. Sony Music Group (19%)
c. Warner Music Group (18%)
d. Indies (28%)
e. Artist Direct (4%)

Question 4

Indies

Answer 4

Independent labels (not affiliated with a music group)

Question 5

Artist Direct:

Answer 5

Unaffiliated artists (no label)

a. Used to be 0%; in a year, it went up by 33% (streaming, etc.)
b. i.e. Chance the Rapper

Question 6

Beachhead

Answer 6

Establish “beachhead” you can move from in regards to music

a. Most people start in music business around 20s
b. i.e. Being in a band, write lyrics, etc.

Question 7

Regional Music Industry

Answer 7

i.e. SXSW

Question 8

Bankrupt artists

Answer 8

Toni Braxton: $10 mil net worth; $50 mil debt
David Crosby: Bankruptcy in ‘85
Marvin Gaye: $13 mill in debt ($30 mil mansion in ’96)
Wayne Newton: Bankruptcy in ‘92 $22 mil in debt
Willie Nelson, Isaac Hayes, Cyndi Lauper, LaToya Jackson, etc.

Question 9

Business Principles

Answer 9

Make it easy for people to do business with you
Do every job and gig as if it were for the kingpins of the music industry
Keep track of money. Keep debts to a minimum
Cultivate a good reputation
Ask for advice and feedback

Question 10

Business Entities

Answer 10

C Corporation: Taxed separately from owners
S Corporation: Shareholders take income from company and are taxed on it individually
Limited Liability Company (LLC)
-Entity is financially at risk, not you personally
-You have a bank account that is “at risk” money