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Revisiting The New Rules Of Engagement

July 2, 2009/by bossross

In August 2007 MusicRow released a special report entitled Embracing Change: The New Rules of Engagement. Its content was the result of a series of think-tank sessions with Jim Beavers, David Gales, Scott Heuerman, Todd Cassetty and David Ross—tech devotees with group experience in virtually all aspects of the music industry. Now, two years later, the report’s business model predictions have become reality.

1. Redistribution of Risk and Reward
2. Artist Development Costs Must Be Flexible and Scaleable
3. Balance of Power Will Be Redefined
4. The Artist Is A Brand
5. Profitability—the new No. 1 Party. In Nashville people are obsessed with getting a No. 1 radio hit, when good business demands profits be the goal.

A copy of the full 2007 report can be downloaded here.

In this model labels create value for many revenue streams, but only benefit from record sales.

In this model labels create value for many revenue streams, but only benefit from record sales.

The new model demands a redistribution of risk, reward and roles. Revenue from all streams is aggregated and divided accordingly.

The new model demands a redistribution of risk, reward and roles. Revenue from all streams is aggregated and divided accordingly.

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bossross
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https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png 0 0 bossross https://musicrow.com/wp-content/uploads/2019/03/MusicRow-header-logo-Mar19B.png bossross2009-07-02 09:47:532009-07-02 09:47:53Revisiting The New Rules Of Engagement
0 replies
  1. Big kenny
    Big kenny says:
    July 2, 2009 at 3:09 pm

    Very cool approach and thought processes.

    This should also then help encourage dollars back into artist development, where the real risk remains!

    “May music and entertainment continue to grow through all of the ups and downs to be the great healer, lifter and common denominator for us all!!”

    Yeehaw,
    bk

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  2. Pat McMakin
    Pat McMakin says:
    July 6, 2009 at 2:19 pm

    Any thoughts as to how a record producer would be paid in the new model. Lot’s of discussion on the subject without many conclusions. Also brings into question things like union musicians being paid fairly for the value they add to the recording.

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  3. David M Ross
    David M Ross says:
    July 6, 2009 at 3:46 pm

    Depending upon the situation, producers might share more risk up front for a larger back end payment…or vice versa

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  4. Ed Benson
    Ed Benson says:
    July 9, 2009 at 7:47 am

    I’m still amazed at how accurately you guys soothed what has become increasingly obvious – the creative artist is the center of the new music business universe. Branding is critical for sure. We should have seen this coming long before we were forced to adjust while off-balance with declining record revenues, but with bright, young committed minds, I believe the industry can find new platforms and avenues to future profits. Thanks to MR for your leadership in challenging conventional thinking.

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  5. Amber Jacobson
    Amber Jacobson says:
    July 9, 2009 at 12:09 pm

    I am curious as to where some of you see web companies and new media in this model?

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Trackbacks & Pingbacks

  1. Unopened : Ben Ward Music says:
    July 8, 2009 at 6:01 pm

    […] Because there is an audience for them.” – Scott Borchetta, President/CEO Big Machine Records, Think Tank: A Music Row Special Report, August […]

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