Some Thoughts About The Music Industry

This morning I was spurned into tweeting a lot about the music industry because of the article below:

Agnes Siap Go International Lewat Perusahaan Michael Jackson... de.tk/jFnjN

I think Agnes has good potential to break international markets; I really think she can. But some details of the article piqued my attention because they seemed incorrect. So I did some digging, and eventually spent the day tweeting about the music industry in general.

The tweets are as follows:

• Agnes, sorry to disappoint, but Sony/ATV is a music publishing company, not a recording company.


• Sony/ATV is a publishing company, and EMI is a recording company. you know, the EMI which is drowning away already.


• Sony/ATV as a music publishing company will manage composers and offer songs to recording companies. They don't release records.


• now the international recording arm of Sony is Sony Music Entertainment. Notable artists: Beyonce, Shakira, Usher, Michael Jackson


• EMI is also an international recording company, home to The Beatles, former home to The Rolling Stones. Currently in financial trouble.


• but yes, Sony/ATV is partly owned by the Michael Jackson Family Trust. The other partner is, obviously, Sony.


• oh, apparently Citibank took over EMI from Terra Firma 2 days ago. Eventually, they will sell it again.


• the other two international recording companies - or simply Major Labels - are Universal Music Group International and Warner Music Group


• Major labels have the reach, knowhow, power and money to make the Justin Biebers of the world.


• Think of major labels as startup incubators, investing money in new talent. Unfortunately, not all investments will succeed


• Major labels also put up a lot of money upfront for production of the album, for promotion/advertising; money that might not recoup


• so naturally, major labels would spend more investment on Justin Bieber than, say, The Mars Volta. More chance of recouping investments


• the thing is, with a tech startup, you have some degree of measurability on the chances of success. music? not so much.


• eventually Citi will sell EMI, most likely to Warner Music Group


• And like many international companies, major labels have become stuck in bureaucracies and financial statements - and less about the music


• anyway. actually, the best way for an Indonesian artist to 'go international' is sign with one of the major labels based in Indonesia.


• the major label will have the reach to distribute music globally, easier in these digital times. And they'll spend money for marketing.


• but before anything else, the major label has to be convinced that it is a good investment to release your music.


• just to add: signing with the local company of the international label is not enough - you have convince the international HQ as well.


• but if you manage to make a deal with a major label, it will save you the hassle of dealing with each & every country for distribution deals


• ok, just to clarify. The 4 major labels as we know them, are not labels. they are marketing and distribution companies.


• under these so-called major labels, reside many record labels, that use them for marketing and distribution internationally.


• but here's the thing: you can do marketing and distribution yourself in this internet age. Many companies can give you the reach you need


• with luck, skill and good music, your Youtube clips and free downloads will spread globally.


• the thing is, the difference between internet sensation, and global sensation, is money to burn on marketing.


• and the major labels will NOT spend on something they cannot control, or doesn't have a large chance of success.


• so as an artist, you have to think like a businessperson. which is better for you. A contract signed is only the first step.


• but i'll admit: it would be easier for an Indonesian to go over to the US and sign with a record label there to go international


• now what is an indie label? by traditional definition, it is a label which is INDEPENDENT of the major label system.


• I'm pretty sure many will disagree with that definition of indie label. Agreed, the definition has evolved to many other things as well.


• So, in the traditional sense, Musica and Aquarius are independent labels. No connection to the international companies.


• but now I like to think as indie labels as startups. Doing everything by themselves, with a certain level of idealism to their product.


• the good thing about being an indie label, is you can finance your albums of choice, then make distribution deals with other companies.


• for music distribution, you can produce the albums (and the CDs) yourself and ask another company to spread them to stores


• the downside of that is you spend your own money for producing the CDs. Still costs money.


• Even if you can produce your album with virtually no money, it will still take money to print the CDs and distribute them.


• you can also partner with one of the recording companies and ask them to print the CDs and distribute, for revenue share.


• for distribution deals, usually you have to spend marketing money yourself. upside is, you can negotiate for higher revenue share.


• there's also something called master licensing. your recording master is licensed by the label for marketing and distribution.


• upside is, the label has no say whatsoever in your music. the downside is, it's a simple yes or no. no in-between.


• for a master licensing deal to work, the label needs to be convinced that it's a good business case to spend money on it.


• it all goes back to the artist. if you want to make money from playing/selling music, you must study the industry.


• sorry to say, aspiring musicians: you cannot rest your future on a few good songs. You have to make a business plan for it.


• today is a good time as ever to make money from music. but it cannot be made by popularity of the song alone.


• you have to be able to look at your music from a business perspective. major label, indie label, distribution deals.. all choices.


• so I'd recommend to any artist that they need to learn the business side of the industry. Or even, partner with someone who understands it.


• you can make money from: songwriting, album sales, shows/performances, making ad jingles, and so on. Think about it.


• if you want to read more about the music industry and where I think it will go, look at my Barcamp presentation here http://de.tk/ifhXs


• RT @lowrobb: Anyway, I made a 15 slides Music Entrepreurship presentation a while a go http://de.tk/7DmQ8


• oh, ternyata Agnes kontrak sama AMI/Sony-ATV. Bukan EMI. then who the hell is AMI?


• AMI is Associated Music International Ltd. apparently. I won't give you the site URL because Chrome considers it a malware site.


• investigasi makin dalam, ada press release dari AMI di websitenya Agnes agnezone.com/news/119-agnes…


• kalo baca press release di sini agnezone.com/news/119-agnes…, jelas dinyatakan bahwa yg ditandatangan adalah kontrak publishing, bukan rekaman.


• I'm happy for Agnes in signing with an international publisher, but it's totally different with signing an international record deal.


• that said, there are international publisher offices in Jakarta that can sign her for international songwriting contracts.


• there are several Indonesian composers signed to these international publishers already (whether or not the material is used elsewhere).


• RT @lowrobb: Music industry working on global copyright database -http://lwrb.in/i2YyEq


• So we don't misunderstand: music publishers represent composers/songwriters. record labels sign artists for releasing albums.


• if you are an artist who is a songwriter/composer also, you need contracts with both publisher and record label.


• in simplest terms, a music publisher's job is to sell songs to the record label so that its artists can sing them (among other business).


• di Indonesia ada perwakilan UMG Publishing Group, Warner Chappel, Sony ATV, Peer Music, EMI Music Publishing, dan ... satu lagi lupa.


• 6 perusahaan music publishing itu adalah yang paling besar di dunia. Nah AMI, berdasarkan press release itu, bagian dari Sony/ATV.


• jadi ga perlu jauh2 ke UK untuk sign international music publishing deal. Di Jakarta juga bisa.


• I repeat: kontrak dengan music publisher cuma 1/2 perjalanan. harus kontrak dengan record label juga (atau produksi dan distribusi sendiri)


• nah kalo mau international record deal, baru paling ideal ke UK atau US... emang pusatnya di sana.


• ok thanks koreksinya @santarully. International music publishers di Indonesia: SonyATV, Fuji Pacific, Peer Music, UMG, Warner Chappel.


• Agnes itu kontrak rekaman dengan Aquarius. Gue nggak tau detil kontraknya gimana, tapi kalo mau rilis album int'l, pasti Aquarius ikut andil


• @jokoisme intinya sih, Agnes kontraknya sama AMI/SonyATV itu sebagai pencipta lagu. bukan sebagai artis utk rilis album.


• @jokoisme ya go internationalnya bener sih, tapi bukan untuk rilis album... labelnya nggak jelas siapa...


• @Hotmanism yah, mudah2an sih dapet label barunya cepet yah...


• @jokoisme ya selama nggak ada di atas hitam dan putih sih... yang ada baru press release dari AMI itu. nggak ada yang dari sebuah label


• @jokoisme sisi positifnya adalah, mungkin aja lagu2 ciptaan Agnes akan dipakai artis2 US dan UK... sebuah kebanggan juga kok


• @jokoisme you're welcome :) mudah2an Agnes cepet dapet deal label juga, takutnya Agnes dan fansnya kecewa kalo nothing happens. thanks :D


• DISCLAIMER: gue ngetwit soal Agnes ini supaya lebih jelas aja ya; bukan mau ngejatuhin ato gimana. supaya tidak terjadi salah kaprah.


• @dreaddaddy biasanya sih wilayah berlaku udah jadi standar kontrak major label ya. bisa Indonesia doang, bisa global.

Let me tell you this: I have nothing against Agnes Monica. She is a beautiful, talented artist and I think it's about time the world knew about her. I am just worried that the media is overblowing her 'go international' announcement yesterday into something it's not. Agnes and her fans deserve better than that, and I am hoping the tweets above will provide some insight into the music industry. I trust that her management team knows all this already and have made the necessary steps.

There are many cases where internationally-known music artists began as songwriters/producers/industry workers for other pop stars, before becoming the pop stars themselves. These names will be familiar: Kanye West, OneRepublic, Ne-Yo, Lady Gaga, John Legend... the list goes on. Let's give support to all our Indonesian musicians to make sure they find their way to international markets, whatever that may be.