Deal Makers

This past weekend, I had the chance to interview Andre Devond, the CEO and Founder of Solid Video Productions.  He works with professional, digital, commercial, online, and high school video productions.  I interviewed him because he introduced me to audio mixing and we have worked together on many occasions. I also chose to interview him because I hope to create a joint partnership with his company and my overdub production company.

We talked about how he uses the five core concerns with his clients and employees.  His status is high due to the fact that he is the only private video company in Wilberforce, Ohio, and he has connections with NewsCenter 7 WHIO-Dayton.  His autonomy is great because he is his own boss.  He started his company in 1995 and since then, he has the freedom to run his business his own way.  With affiliation, he is treated like a professional amongst his colleagues.  Devond mentioned that he shows appreciation to his employees by telling them they are doing a great job when the project is complete but he would not mention it during the project.  He said that he does this because if he shows appreciation during the project, that could lessen the drive within his employees to complete their portion of the job.  He also shows appreciation to his clients by giving them discounts and notices on his services.  He believes that his role is fulfilled when the final product is a success for the client.

Andre Devond mentioned that he separates the problem from the people by making it his problem.  For example, if a client has an issue with making it to the video shoot, Devond will go out of his way to find transportation for the client.  I believe being flexible with my customers and my business is an advantage to negotiating with other companies.

Hooray! Buying Music is Awesome Again!

From the past few years and from the past blogs of mine, I have talked about how music sales have dropped due to free downloading markets.  There is finally some good news in the music industry.  According to the Kings of A&R webpage, consumers are starting to buy music again.  On the Market Watch page from the Wall Street Journal, CD buyers have increased by 2% compared to the 78 million from last year.  I believe that this is great news because it felt like I was the only one who still bought CDs.  This is also great because CDs have a better listening quality than MP3s.  Some people predicted that CDs would be obsolete but people still like the CD format familiarity.

Paid downloads have also increased in sales.  Market Watch states that internet download music sales have increased 45% in 2011.  And on the other hand, P2P file sharing has decreased 13% from last year.  The music industry is offering more music outlets like Spotify and Pandora so consumers will not have to steal music or share hard drives.  On Mashable’s webpage, it states that after Limewire was shut down, file sharing has decreased in the past year.  The Market Watch also states that in the UK, they have made music file sharing illegal and people will be fined as if it was fraud or human trafficking.

The music industry is still in the rough end, but it is shedding light on sale increases.  This gives me hope for my business in the music business.  Like Adele or Katy Perry or Kanye West, I want to give the consumer what they paid for, which is good quality music.  With that being said, I want to set goals and check statistics on how much money I’m making from CDs and artists coming to record at my studio.

Views on Music Finances

As I seek more information on entrepreneurship and music, one question always comes back to mind: where will the money come from?  Since I am not a wealthy billionaire with a mansion on the mountainside and 25 nice cars, I will need to find other ways of increasing my budget.  As I prepare the numbers for my overdub studio, I realize that I need to sell my worth to other businesses and the people who are interested in music.

One way I could find money for investing into my studio is to try out a bank loan.  Banks these days are having rough times and they will not invest their money to a business that could possibly not succeed, especially if it is music related.  I read an article on theguardian.com that in the U.K., most banks will not fund independent studios or music groups due to being too risky.  This article was startling because even though this was in the U.K., it is still the same type of problem in the U.S.  I need a niche to get over the fact that it is a studio.  It would also help if I can improve my credit score.  Although I don’t have any outrageous account charges, I still have plenty of college loans to pay back.

My other options to funding my studio are to go to a finance company, use kickstarter.com, or ask other people.  With a great business plan, a music finance company would understand my case.  However, I have a few partners who would be interested in starting this business with me.  Kickstarter is a great way to express my idea for building my business to the world.  It could possibly help me with raising money and communicating with potential clients.  Once I know my market niche and options, it should be easier to find studio funding.

RIAA Knows Your Music

The Recording Industry Association of America (RIAA) is one of the major trade organizations in the music industry.  This association keeps sales records of a majority of music released from major record labels.  They also control legalities and policies of artists and record labels.  The RIAA plays a major part of the four major music companies of the world such as EMI, Sony Music, Warner Music, and Universal Music.  This organization is important to the music industry or my industry because piracy is rampant today and it is important to receive earnings from music record sales.

The RIAA consists of a Gold & Platinum Program, which recognizes artists and songs that have sold millions.  I read on their news page that digital singles have doubled compared to last year.  The biggest single sellers were Adele, Lady Gaga, and Lil Wayne.  I see this being an improvement in the music industry because consumers are still buying music instead of downloading it illegally.

I also read on the RIAA news page that they recently announced, with the International Intellectual Property Alliance, that China, Russia, and Canada are the worst offenders in copyright infringement.  It bothers me that they put this on their page because the U.S. is just as bad with copyright infringement.  Although some major share filing companies, for instance Megaupload, have been shut down, there are still plenty of file sharing applications for illegal music use.

In the future, I tend to fill out an application and join the Recording Industry Association of America. I have their RSS feed in my Google Reader because it is important to stay updated on record sales of today’s artists.  On Twitter, I am following the Senior Vice President of RIAA, Jonathan Lamy, Vice President, Cara Duckworth Weiblinger, and Director of Communications, Liz Kennedy.

Passion in Music

I have a passion for music in general.  Whether it is listening to it or making it, I love music.  I love music so much, I would do it for free for the rest of my life, if that were a choice.  I watched a lecture from Benjamin Zander on Ted.com and he talks about how anyone can have a passion for classical music and how one’s passion can influence others.  There are a few points in his speech that sparked my mind and my interests in my life.

One point Zander mentions is that we can’t just think about our visions step by step but we must think about the vision in the long run.  I took this to heart because it feels that I have looked at my dream step by step and not looking at the whole picture.  My dream is to not only share my productions, but peoples’ voices with the world.

Another point from his lecture was about the job of being an orchestral conductor.  He states, “He depends, for his power, on his ability to make other people powerful.”  As a producer and engineer in my company, I want my customer to feel like they have the power when I provide my services.  If singers come into my studio, I want the singers to leave with a powerful product in hand.  If voice actors come in my studio, I want the voice actors to leave with confidence that they have given a powerful performance.  Saying this leads to another point Zander mentioned stating, “…who am I being, that my players’ eyes are not shining?”  If my clients are not confident in what they are doing, then I’m not doing my job.

Although he specifically talked about classical music, but I feel that this could apply to any music genre or any passion in general.  I have put in a lot of time in my education and experience to build an opportunity for others with talents in entertainment to express themselves behind the microphone.  As I learn more about the industry, I hope to reach my dreams using my passion for music.

Lecture from EMI Music Publishing

Last week, I attended a lecture at Full Sail University about music publishing and artist management at EMI Music Publishing.  The lecture featured Bridget Unger, the Director of Music Resources, and Joya Nemley, the Manager of Global Services.  They both talked about how to succeed in the music business.  They mentioned some points of interest that I wanted to discuss about my movement into the entertainment industry.

One pointer that Bridget Unger talked about was building a positive working relationship with other professionals in the music business.  I read on the Billboard website that Unger has done so much with licensing music and has become an important player within EMI.  Also during the lecture, she talked about how she used her personality and experiences to build relationships to get into the depths of the music industry.  The shocker of the article and the lecture was that she did all of this in her late 20’s.  That gave me inspiration to keep working and connecting with others to achieve my goals.  I just turned 26 and while I continue to build connections while I reside in Orlando, Florida, I am building knowledge on how to run my own business when I return to Ohio.

Another tip that Bridget and Joya both mentioned in the lecture was to show out to your audience.  In a Under30CEO article, it mentions that the new entrepreneur should give an impact to their costumer and the stockholders.  Unger and Nemley both stated that one should represent their brand by being on time and going above and beyond with one’s work.  I am usually prompt with my work but it is always good to over the limit.

I have learned a few lessons from this lecture like understanding that this is a business and being your own brand.  However, these two points are very relevant with what I’m going through with my time learning the entertainment industry.  Overall, Bridget Unger and Joya Nemley gave me a reality check in moving forward into the entertainment industry.

Customer Satisfaction in Music

In the music industry, customer satisfaction is a very crucial factor to a record label and its artists.  For example, when a customer buys a compact disc or downloads the album from an online store, the customer wants an album with full quality from the artist.  In the past years, the music business is in a state of crisis due to customers only buying singles instead of the whole albums.  Also, there are many websites to download torrents and free music.  I could easily say that customers may stop downloading free music if they were getting a great product from the artist and the label, but that is not the case.  The price of compact discs has risen up to $20 and hiking up the prices would lower the gratification of the customer.  But according to an article in Muzak, playing music in a retail setting would increase the customer’s satisfaction.  I understand that prices must be raised to have a profitable business, but music retailers should add more content to the products for customers.

According to an article in Media Journal, there are different aspects of how customer satisfaction is distinguished within having a physical product, file sharing, or downloading from online stores.  For instance, with productivity, file sharing takes away the value of the product.  With pricing, buying music online preferred rather than at a retail store.  With the customer in mind, buying music online is easier than going to the retail store.  It saves gas and the hassle of not having the product at the store.  However, actually having a physical music product feels like one owns a piece of the artist’s life.  I would prefer that record labels give the customer more than just the music product.  For instance, merchandise like artist t-shirts or ticket giveaways would entice the customer.