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The Recording Industry  

General Comments

Talent

Production

Distribution

Retail

General facts

• The recording industry is a very unpredictable business.
• Rock music accounts for 60% of the total sales of the record industry.
• Not counting performers, there are only about 15,000-18,000 people in the entire industry.
• The industry is hard to break into but the rewards come fast; age is important - since most popular music is performed and purchased by young people, many top executives, manager, and producers as also young; as one gets older, it becomes more difficult for advancement.
• The record companies are the star makers .
• The recording industry is an international industry dominated by conglomerates (see PLAYERS section).

Talent

Performers start out as a beginning act (bars, clubs, etc.)

Odds of success are 1500 to 1 for a beginning act.

If talented and lucky, the act will be noticed by and A&R (artist and repertoire) scout from a record company, an independent producer, an agent, or a manager.
 
A demo tape will be made and if approved by a recording company, a master tape will be made.

If all goes well, the act is signed to a contract by a recording company.

• A new artist will receive a royalty rate of 7-9% of the suggested retail price of a CD or tape; really successful performers get 15% or more.
• Personal appearances
• Tours
• Royalties as a songwriter if you personally wrote some of your tracks

• Artists and repertoire
• Talent scout
• Artist development: designed to further the career of a group or performer
• Agent
• Personal manager

• Very difficult to get started
• Many A&R start in the promotion department
• Others start off in the A&R department as secretaries or clerks and work their way up
• Essentials: a good ear and a knowledge of what will sell and how to sell it

Activities include: recording, mixing, publicity, advertising, promotion, merchandising, packaging, and business related activities
see PLAYERS below for the recording companies that dominate production

Career Paths

Advertising and merchandising

• Aid sales by planning media campaigns and displays in stores

• Take courses in business administration and mass media.
• Start with a nearby branch office of a major label or independent distributor,  OR
• First gain experience at an ad agency that has a record label as an account then move to the recording company

upward mobility: advertising department employee -- more important and lucrative accounts -- management and administration.

• Lawyers, accountants, market researchers, financial analysts, and secretarial and clerical staffs

One of the most common routes to top management is through the production department.

Getting Started:

• Volunteer at a local recording studio.
• Take courses in mass media, business administration, and music.
• Must have some knowledge about sales, accounting, and the legal aspects of production.
• Start out in an entry-level position (mailroom, etc.) in a recording company and work your way into the A&R (talent) department.
• Try to gain experience as a demo producer then as a staff producer.
• Try to learn as much as possible about the recording industry in general.
• Upward mobility: producer -- staff producer -- executive producer (administrator) -- independent producer (if desired) -- start your own label.

Getting Started

• Volunteer at a local recording studio.
• Take courses in multitrack engineering and sound production.

Upward mobility: beginning audio engineer -- staff engineer -- senior supervising engineer.

• Responsible for getting new releases played on radio stations.

• Responsible for getting new videos on MTV.

• Take courses in business administration and mass media.
• Start by locating a nearby branch office of a major label or independent distributor.
• Do whatever is necessary to meet the local manager: send a resume, telephone, appear in person.
• Your goal should be an entry-level position as a local promotion person or sales representative.
• Upward mobility (promotions): smaller market -- larger market.
• Upward mobility (sales): salesperson -- regional manager -- sales director.
• Another common route to top management is through the sales and distribution department.

• Responsible for getting press coverage for new performers and new releases.

• Take courses in journalism and/or public relations.
• Entry-level positions available at small recording companies.
• Publicists can also works as independents hired by an artist as manager or agent.

• Responsible for getting album from record company to retail outlets.
• There are independent distributors and branch distributors (linked to one of the recording conglomerates).
• One of the common routes to top management is through the sales and distribution department.

• Obtain an entry-level position/internship working with sales and distribution.
• The function of sales and distribution is two-fold: they sell the company's products and ensure that tapes and CDs get to the stores.

Retail

• Presenting the album to the customer.
• Trend: consolidation into multi-media superstores.

No major leading companies because of the increasingly large number of stations and the duopoly rule

• One company can only own 2 AM and 2 FM stations in a single market and 20 of each in all markets

• An average of 14 full-time per station
• Competition is tight but do-able, especially for young, experienced people

Programming

• Talent (in front of microphone)
• make an audition tape (5-15 minutes)
• upward mobility -- better time slots or bigger markets
• very competitive

• Easiest to land first job in this area
• Extensive upward mobility
• Better accounts, sales manager, general manager

• To gain experience, volunteer at your college station or get an internship at a local station.
• Small market stations are easier to get into and gain a wide variety of experience.
• Accept any job offered, even if it is not exactly what you want to do; you can move between departments later.