MUI 221 COTTRELL TEST 1 (LECTURES 1-4)
How big is the global media industry? - Answers :$2 trillion dollars
What does the global media and entertainment industry consist of? - Answers :gaming,
advertising, films, media ownership
What is an entertainment conglomerate? - Answers :a group of diverse companies
under common ownership and run as a single organization (Amazon, Disney, NBC,
Sony)
what portion of the global media industry is the global recorded industry? - Answers :2%
($18.9 billion)
What are the major music labels and what are their percentages of revenue? - Answers
:1. Universal (31%)
2. Sony (22%)
3. Warner (18%)
4. Indies (27%
5. Artists Direct (3%)
What is the problem with streaming? - Answers :decreases value of recorded product
What is an example of a regional music industry? - Answers :SXSW (South by
Southwest), conference allowing for easier discovery for independent artists that attend
the convention
What is the beachhead strategy? - Answers :industry business will establish a
stronghold within the business, then gradually graduate to larger areas maintaining
original stronghold and becoming larger
What is the equation for profit? - Answers :assets - liability
what is the nature of business? - Answers :you, as an individual, are not your business.
The business is separate. Important to combine music and business together.
Why do artists go bankrupt? - Answers :they become precarious and lost in never
seeing a time where they don't make money, they become careless and oblivious to a
changing industry, they lose their money
What are the business principles? - Answers :1. Be easily associable
2. Do every job like it was for the kingpins of the industry
3. Keep track of $, keep debts to a minimum
4. Cultivate a good reputation
, 5. Ask for advice and feedback
What does it mean to be on "spec" - Answers :a person is working on a project
speculatively and won't receive a fee unless the client agrees and is happy to license or
buyout the recording. Can help provide opportunity to up and coming composers and
producers and an opportunity to secure specific work, you just won't necessarily get
paid
What are works made for hire? - Answers :work created based off terms of their
employment, created under the direction of someone else normally stated in a contract.
Studio owns the copyright, creator can never reclaim copyright for them-self. NOT for
songs, for TV shows/film scores
What is a c corporation? - Answers :Large, established company with many employees,
large "ca$h" flow, and unlimited shareholders. Double tax, corporate tax on profit then if
you draw a salary there is a personal income tax.
What is a S corporation? - Answers :Strict guidelines per the tax code. Maintains limited
liability, meaning if I invested 10,000$ and I am in debt $11,000, I only owe $10,000.
Income is passed to shareholders without being taxed, avoiding paying both corporate
and personal tax. Owners pay themselves salary + receiving dividends from any
additional profits
What is a LLC? - Answers :A way for a musician to register as a business, a form of
ownership that provides limited liability and tax benefits and places fewer restrictions on
members & eligibility requirements. protects owners personal assets against lawsuits
involving band/oneself. income and expenses are 'pass through entities'
What is important about Article 1 section 8 clause 8? - Answers :"promote progress of
science and useful arts by securing for limited times to authors and inventors the
exclusive right to their respective writings and discoveries"
All of the things listed have commerce value
what is the Copyright Act of 1976? - Answers :A law that recognizes the rights of an
individual creator (in any medium) from the time he or she has created a work IF it is
fixed in a tangible medium of expression. Protects a creative work for the lifetime of that
author plus 70 years. (Effective 1/1/78) This act has been amended at 50+ times.
What are the bundle of rights? - Answers :1. Right to reproduce and make copies
2. Right to distribute
3. Right to perform publicly
4. Right to display
5. Right to make derivative works
6. Right to perform by means of digital audio transmission (only sound recordings)
How big is the global media industry? - Answers :$2 trillion dollars
What does the global media and entertainment industry consist of? - Answers :gaming,
advertising, films, media ownership
What is an entertainment conglomerate? - Answers :a group of diverse companies
under common ownership and run as a single organization (Amazon, Disney, NBC,
Sony)
what portion of the global media industry is the global recorded industry? - Answers :2%
($18.9 billion)
What are the major music labels and what are their percentages of revenue? - Answers
:1. Universal (31%)
2. Sony (22%)
3. Warner (18%)
4. Indies (27%
5. Artists Direct (3%)
What is the problem with streaming? - Answers :decreases value of recorded product
What is an example of a regional music industry? - Answers :SXSW (South by
Southwest), conference allowing for easier discovery for independent artists that attend
the convention
What is the beachhead strategy? - Answers :industry business will establish a
stronghold within the business, then gradually graduate to larger areas maintaining
original stronghold and becoming larger
What is the equation for profit? - Answers :assets - liability
what is the nature of business? - Answers :you, as an individual, are not your business.
The business is separate. Important to combine music and business together.
Why do artists go bankrupt? - Answers :they become precarious and lost in never
seeing a time where they don't make money, they become careless and oblivious to a
changing industry, they lose their money
What are the business principles? - Answers :1. Be easily associable
2. Do every job like it was for the kingpins of the industry
3. Keep track of $, keep debts to a minimum
4. Cultivate a good reputation
, 5. Ask for advice and feedback
What does it mean to be on "spec" - Answers :a person is working on a project
speculatively and won't receive a fee unless the client agrees and is happy to license or
buyout the recording. Can help provide opportunity to up and coming composers and
producers and an opportunity to secure specific work, you just won't necessarily get
paid
What are works made for hire? - Answers :work created based off terms of their
employment, created under the direction of someone else normally stated in a contract.
Studio owns the copyright, creator can never reclaim copyright for them-self. NOT for
songs, for TV shows/film scores
What is a c corporation? - Answers :Large, established company with many employees,
large "ca$h" flow, and unlimited shareholders. Double tax, corporate tax on profit then if
you draw a salary there is a personal income tax.
What is a S corporation? - Answers :Strict guidelines per the tax code. Maintains limited
liability, meaning if I invested 10,000$ and I am in debt $11,000, I only owe $10,000.
Income is passed to shareholders without being taxed, avoiding paying both corporate
and personal tax. Owners pay themselves salary + receiving dividends from any
additional profits
What is a LLC? - Answers :A way for a musician to register as a business, a form of
ownership that provides limited liability and tax benefits and places fewer restrictions on
members & eligibility requirements. protects owners personal assets against lawsuits
involving band/oneself. income and expenses are 'pass through entities'
What is important about Article 1 section 8 clause 8? - Answers :"promote progress of
science and useful arts by securing for limited times to authors and inventors the
exclusive right to their respective writings and discoveries"
All of the things listed have commerce value
what is the Copyright Act of 1976? - Answers :A law that recognizes the rights of an
individual creator (in any medium) from the time he or she has created a work IF it is
fixed in a tangible medium of expression. Protects a creative work for the lifetime of that
author plus 70 years. (Effective 1/1/78) This act has been amended at 50+ times.
What are the bundle of rights? - Answers :1. Right to reproduce and make copies
2. Right to distribute
3. Right to perform publicly
4. Right to display
5. Right to make derivative works
6. Right to perform by means of digital audio transmission (only sound recordings)
