An Unconventional View of Digital Publishing/Distribution From an Independent Music Professional: Ricardo Miranda

      As an audio professional creating musical content, it will eventually become important to actually publish and distribute those products if any type of success is desired. Therefore, it is necessary to both conduct independent research, and to consult with other professionals in your field who already have experience in this area. With this in mind, I recently contacted Ricardo Miranda, an independent dance music producer, songwriter, and arranger, who has been in the music industry for over 13 years. He created his digital label in 2007, Noble Square Recordings, as a result of his frustration with the fact that major vinyl distributers were closing down all over the world due to the rising popularity of digital music distribution. Since he has had quite a bit of professional experience with digital publishing and distribution, I asked him various questions on the subject for the purpose of concluding my research.

      First, I asked Ricardo about how he publishes and distributes his music as an independent label executive.  Currently, under his publishing company, Ricardo Miranda Music, as well as through outside independent labels, his music is distributed directly through the following distributors: Traxsource in the U.S.; Juno Records in the U.K.; Wasabeat in Japan; What People Play in Germany; and Groove Distribution, for vinyl, in the U.S. He was previously with ASCAP, but left recently due to a failure to receive all of his royalties, so his publishing company is temporarily unrepresented by any performing rights organization. However, his entire writer publishing is currently handled by PRS for Music in London.

      Logically, my next question for Ricardo was whether or not he had ever used any POD companies, such as CD Baby, TuneCore, or INGrooves, but he responded that he had not used one to date. Since he was able to make direct distribution connections really early on, with companies that were in their infancy stages at the time, he never had to use any aggregators before.

      My third question was about what Ricardo thought about the current digital music distribution platform, and today’s music content overall. He stated that he believed that a lot of music is really horrible today. His reasons are multiple, but his main thought was that people who are not really musicians or professional artists are making sub-quality music because of the ease and availability of programs and home audio equipment, without the benefit of true experience or skill. Furthermore, he stated that because these people are making such high volumes of sub-standard music so quickly, it almost downgrades the worth of other good records because it makes the shelf life of all records extremely short. Ricardo further elaborated that there are so many people putting out independent records daily, which are being bootlegged by the minute, so it is hard for independent music publishers to make any money off of their distribution of creative content. His last comment was that it is even harder when an aggregator has to be paid as the go-between, and the only way to really make any money now, would be to get involved with making music for movies, TV shows, commercials, video games, and other forms of media.

      When I asked Ricardo about his thoughts on major distribution outlets such as iTunes and Amazon, he stated that they are really profiting the most in his opinion, from aggregator fees and the fact that they are providing web space for a high cost in the music marketplace. He further stated that they are actually acting somewhat as record labels, except for the fact that they do not have to handle any of the creation/production side of musical content. His last comment was that they are almost like a mall, leasing space to business owners who can’t afford to set up their own freestanding storefronts, which makes it harder for independent business owners to successfully make money.

      Miranda’s final advice to other independent songwriters, producers, artists, and label owners in regard to producing, publishing, and distribution of creative content, was that digital sales are really not the best avenue for making money. He went on to explain that it does however provide an avenue for marketing and promotion of musical content, so you need to make strategic business decisions about which companies you will use for publishing/distribution, based upon your financial and/or media exposure needs. Despite the fact that he does not currently use POD/aggregator sites at this time, he still feels it is necessary these days for most people to distribute music. Out of the companies he researched recently, he found Symphonic Distribution to be the best choice in regard to services offered for the pricing structures available.

      Ricardo Miranda’s personal opinions about the current state of digital publishing and distribution are probably not the norm for most independent music professionals. However, it is always a good idea to obtain the pros and cons of all choices, before making a final decision about which direction to go in. At the very least, after your research has been conducted and opinions gathered, you should be able to make an educated and informed choice that should be a good fit for you in the end.

An Entertainment Industry Expert Consultation With Charles F. Matlock, Esq.

      When starting any business, it is prudent to consult with various experts in your field, but this is especially true for the entertainment industry, due to the many intricacies it holds. One of the most important experts an entertainment entrepreneur should consult with is an entertainment attorney. This is crucial in order to obtain expert legal advice that can protect you, and your business, from possible legal problems or disasters. In keeping with this suggestion, I recently contacted Charles Matlock, Esq., an Illinois entertainment attorney, who has been practicing law since 1996. Since AOAP is a new company, and there are other entrepreneurs who have either started, or are planning to start their own entertainment business also, I thought it would be a good idea to ask this attorney some questions about liabilities, resources, and general advice.

      My first question was regarding any general advice on things I should include, or not include, in my company business plan. Attorney Matlock stressed the importance of having a good entertainment lawyer review the plan in order to be informed of your legal boundaries. He stated that this was especially important because of the fact that entertainment companies generally deal with intellectual property (IP), and having an attorney who has a good grasp on law concepts relating to IP is critical because the lawyer can anticipate what could possibly happen. Attorney Matlock also suggested that the people who would have a working relationship with AOAP, such as engineers, songwriters, and sound designers, be included in the business plan. By identifying those individuals with impressive backgrounds and/or credentials who are key personnel for your business, this bolsters the credibility of the business as a whole in the eyes of prospective lenders and investors. Even if you are unable to list the names of these key resources, you should at least be able to specify what makes them unique, special, or an asset to your business. He said that this should help your business to stand out among many other similar companies in your area.

      My next question for Attorney Matlock was about industry liabilities that I would need to watch out for with a new entertainment company. The first thing he stated was that it is really important to have strong non-compete clauses and nondisclosure agreements, for employees or independent personnel working with the company.  Specifically, it would be smart to have legal documents that deal with nondisclosure and IP matters together, because of situations that can arise from those two matters. Matlock explained that there may be individuals who want to exclusively work for your business, and those who do not. Therefore, you might want to have an agreement that includes a “First Right of Refusal” concept, where you have the right to enter into a business transaction with the other party before anyone else can. He stated that this contractual right, or something similar, would protect you in situations where someone chooses not to exclusively work with your company.   

      Additional liabilities Attorney Matlock warned to watch out for, are liabilities incurred through people who enter or work in your place of business, due to wild/inappropriate behavior or unexpected accidents. Some people in the entertainment industry tend to have very colorful or interesting personalities, which could lead to incidents causing damage to the premises, or to the people there at the time. To protect yourself from this type of liability, he said it is critical to have good insurance for your business right from the start. The last liability Matlock mentioned, dealt with avoiding the possibility of going to court through the use of arbitration clauses in contracts.

      My third question was about suggested industry resources to use for my business. Attorney Matlock stated that it would be a good idea to establish relationships with unions such as SAG and AFTRA, and with entities that hold entertainment workshops and conferences that are in keeping with your intended purposes. He also suggested another organization called JAMS, which would be a good resource because they deal with dispute resolution.

      My final question to Attorney Matlock was whether or not he had any general advice for me as a new entertainment entrepreneur. He was adamant about the fact that I definitely needed to have more money than I would think that I needed, because things in entertainment are quite expensive. He pointed out the need to have money to pay for things such as equipment, location space, licensing, equipment infrastructure, sampling clearances/permissions, attorney fees, and other necessities. He stated that sometimes you can get items second hand or receive discounts, but not always, so you need to be prepared ahead of time to pay full price just in case. Attorney Matlock also suggested that you make the effort to surround yourself with people who have the utmost integrity, and to also try to pick seriously talented personnel and team members with great people skills. He also stated that as a business owner, it is important to know the extent of each person’s talent, and to only expect from them what you know they are able to offer.

      The advice given to me by Attorney Matlock was in response to specific questions I asked for my own entertainment business. However, his recommendations are excellent nuggets of wisdom from a seasoned expert that can serve as sound advice for any entertainment entrepreneur just starting out. Most importantly, take the necessary steps beforehand to protect your business from liability, by seeking legal counsel, and utilizing the appropriate entertainment resources available to you. 

Legal Pitfalls: Something Audio Production Companies Should Try to Avoid

      Companies that provide audio for media are in a separate category, because of the nature of what they do and how they do it. However, this does not exempt us from the fallout that result from lawsuits or legal controversies that might originate with the creators of such media. There exist various situations in the entertainment industry that can morph into legal disputes over things such as copyright or trademark infringement, and these disputes can possibly halt the work of an audio production company altogether. As such, it is important to examine a few recent entertainment legal controversies, in order to learn from the mistakes made by others, in order to avoid similar problems for your own business. I have found three different cases that are related to some of the areas Art of Audio Productions will provide services for, and hopefully, my description combined with commentary on each case will prove to be beneficial for my readers.

     The first case I found was about the 2013 lawsuit brought against Marvin Gaye’s family and Bridgeport Music. The composers of the song “Blurred Lines” (sung by Robin Thicke) commenced the suit in retaliation to the threat by the two parties to initiate litigation for copyright infringement, according to an online article by Forbes. The conflict occurred because the two entities that threatened litigation, both maintain that “Blurred Lines” is strikingly similar to, influenced, and/or inspired by both “Got to Give it Up” (by Marvin Gaye/owned by his family) and “Sexy Ways” (by Funkadelic/owned by Bridgeport Music). The composers standing accused, Pharrell Williams, Robin Thicke, and the rapper T.I., responded as a measure for protecting themselves through “declaratory relief”, where the matter will be decided through a judgment in court. The article written by Oliver Herzfeld is very thorough because it not only describes the controversy in detail, but it also explains the two different aspects of copyright infringement, and how it applies to this particular case.

      

      In my opinion, this is a very difficult case because I can definitely see how Bridgeport Music and the Gaye family could come to these conclusions, since the Thicke song is quite similar to those two songs in some ways. However, throughout the years many songs have sounded reminiscent of other previous songs, even without the intent of doing so because of how the human mind works. In contrast, there are also numerous cases of intentional theft of ideas and works in the music industry as well. The trick is in proving such with cases like this one, where it is not so blatantly obvious. The lesson to be learned from this case, for all songwriters, is to ask yourself if you are being even remotely inspired or influenced by someone else’s song. If so, you need to legally obtain the proper permission and clearance from the owner before releasing your version.

      Another controversy took place in 2013, over the alleged trademark infringement claim made by Wizards of the Coast, a gaming company subsidiary of Hasbro, against Sunstone Games. According to an article on GamePolitics.com, Simon Strange (Sunstone Games owner) was first sent an email in December 2012, which notified him that they believed his game, “Kaiju Combat”, was a trademark infringement upon Wizard of the Coast’s "Kaijudo". Strange did not hear anything more until March, when Kickstarter removed his Kickstarter campaign, at the request of Wizards of the Coast, for the same reasons stated in the December email. An email was also sent out to Strange’s campaign backers, which not only put backers in a bit of an uproar, but it also put a stop to all development of the game for a while. This setback was not permanent though, since the game is still in the process of being developed according to Sunstone Games. The article provides Strange’s response to the situation, where he stated that he could understand how important it is to defend one’s trademark. However, he also expressed that usage of the word Kaiju (which is a common name) in a game title should not be blocked for any game developer. Furthermore, that a suit such as this could tie up money that would otherwise be used for game development, because his company is small and relies heavily upon backers and sponsors for money to complete games, so there is not very much to use for lawyers and court costs.

      In my opinion, there was not much credence to this claim because Kaiju is a popular Japanese name that refers to strange or mythological creatures, such as its reference in the movie Pacific Rim or to the infamous creature named Godzilla. Logically then, how could such a name be trademarked by Wizards of the Coast just because it is a part of one of their brands? Apparently, this case did not have much to stand on for that reason, because the Sunstone game has continued development. The lesson to be learned here is that independent, small businesses need to be prepared for interruptions of work because of possible legal issues. If the media company is stalled because of a lawsuit, then the company providing the audio for that media will be stalled as well. It is an unfortunate domino effect that one needs to anticipate in business, and have a contingency plan or an alternate project to work on in place of the one that was halted.

      The final legal case I found in a BillboardBiz article was about an engineer who sued Tommy Lee (Motley Crue drummer) in December 2013, over a roller coaster drum-kit idea he claimed that Tommy stole from him. Howard Scott King was apparently an engineer working at a company and with the band agents in 1991, where he came up with the idea for Tommy Lee to continually play his drums while riding around a looped track that would even position him playing upside down at one point. He claimed that he submitted this idea to Lee back then, in the form of a proposal, but had never received any response to it. In 2011, he saw Lee perform this “drum ring” on tour, which prompted him to bring the lawsuit. However, he lost the suit because he failed to prove that he had come up with the idea on his own. He also lost because he did not take the proper steps beforehand to protect the idea before submitting the proposal, such as obtaining a non-disclosure agreement (NDA) or a promise not to use his idea without paying him first.

      I completely agree with the judge’s ruling, because King failed to legally protect himself adequately before handing over his unique idea, which was obviously not a very well thought out action on his part. The lesson for audio professionals in this case is very clear: an NDA is a very important tool to use in the sound design industry as well. Furthermore, failure to get one ahead of time could prove to be very detrimental for both your company and those you are providing services for.

      Each of these cases is unique, but they have one central basic lesson, which is to be prepared and properly covered legally at all times when it comes to intellectual property. This applies to all aspects of the audio industry, from songwriting, audio for video games, animation, film, etc. Taking steps to protect your business in advance is very critical for averting legal disaster later.

Duane Buford (former band member of Ministry) Talks About Artist and Product Management

      As a music professional and entrepreneur, I recognize the importance of consulting with and learning from those who have paved the way for others, through their own success. Obtaining sound advice from such experts is critical to your success in many ways. Consequently, I decided to interview Duane Buford, who is an award-winning composer, sound designer, entrepreneur, and former member of the well-known band, Ministry. Since he was once an artist in a famous band, and now functions in the role of product manager within his own company, he was a logical choice for acquiring practical knowledge on the subjects of artist and product management.

     

      Duane told me that he used to record and work on music at a studio located on North Halsted in Chicago, called Chicago Trax Studio. It was there that he made the connection with Ministry members, who heard his original music, liked it, and eventually asked him to join the group. His role as a group member included doing the programming for a couple of albums, and becoming the touring keyboardist from 1996 to 1999. According to Screenmag, Buford worked on commercials for advertising agencies like Leo Burnett, at a music house. Eventually this outside passion led to his exit from the group, and the creation of his business in 2003, DuaneBuford.com, which is a music for media business. According to Duane, there were no hard feelings about his leaving, because it was just time for him to move on so that he could pursue his personal endeavors.

     

      Duane spoke about the artist management experience he had as a member of ministry, which he says was an excellent one. There was one manager for Ministry, and some of the other bands he managed were extremely famous, large bands. Despite the fact that the artist manager had a large roster, he was very effective at his job because nothing ever faltered. Duane said that his income was never touched or short, because the manager was very professional and honest. Consequently, the band and the artist manager did not experience any legal issues or problems between them. For example, the backstage riders, tour accommodations, etcetera, were exactly the way that they should have been, and everything was always done to the letter. Duane stated the manager certainly earned his salary because all aspects were handled properly, such as contracts, touring, merchandising, and recording aspects; and he was excellent at planning and organizing. Additionally, the manager never had to control individual band member personalities or tempers, because there were rarely any issues at all. Furthermore, if anything did occur, the band handled the issue, so he never had to intervene or deal with any interpersonal issues.

    

      Duane’s position on artist management was that if an artist manager can bring something significant to the table, then the manager is definitely worth having and it will be beneficial for the artist. For example, many artist managers have been in the business for many years, and have consequently developed numerous lucrative relationships with various important people, and such a situation could possibly result in millions of dollars for both the artist and the manager.

      Now that Duane has been in business for himself for many years, he has learned quite a lot about product management.  Specifically, he talked about his firsthand experience with the five core competencies of product management. They are listed in the “Product Manager’s Field Guide” from Full Sail University as the following: 1) drive business results 2) deliver results through people 3) ensure market-driven direction 4) guide product “fit” and function and 5) manage multiple priorities. Duane’s insights on these topics are listed in the sections following below.

• Drive business results – Duane stated that in music, you never know what type of genre a specific client will need, whether it is a film score, vocals for a video game, or a 30-second song for a commercial. Therefore, he said that you have to know what each project will technically entail, and you must know what each project needs in order to deliver what the client needs.

• Deliver Results through people – Duane contracts out people for different projects and different reasons. He advised that you never hire your friends or romantic interests. Buford stated that it is important to get the right people to build your team and to ensure that it is an appropriate fit. He also advised that whomever you get, has to have a great attitude and an excellent work ethic.  Duane added that you must know whom you are working with, in anticipation of what they might or might not do.

• Ensure market-driven direction - At his level of work, Duane does not really deal with ensuring market-driven direction, so he had no comments on this particular competency.

• Guide Product Fit and Function – Duane basically stated that a fit would only come about if you were ready to do the job, and you have to be the appropriate musician for the project. He also added that you have to know your job in regard to music, music theory, composition, engineering skills, and the gear you are using. A great book Duane recommended that musicians and composers read is "Dance Music Manual" by Rick Snoman, because it teaches you how to become a self-contained musician.

• Manage Multiple Priorities – Buford explained that there was no one else to help him, so he was forced to do multiple things at once. However, he has attorneys and accountants he calls when necessary. He also uses Excel spreadsheets a lot, as well as his Smartphone and iPad, so he can stay connected when away from the computer. He advised that it is important to keep good documentation, and to keep it in one place such as the Cloud.  Duane also uses Google Drive, and in Gmail he separates his mail through labeling, so it stays organized for reference later. Additionally, he uses Outlook and Sky Drive, and he keeps his music cues where they can be accessed instantly anywhere, and at any time. For Duane, this is critical for managing multiple priorities successfully. Although time management has been a constant challenge for Duane, he advised not to let too many projects overwhelm your time and to try to stay organized. He said that you should work on the most important thing that needs your attention, and then work your way down to the less important things.

      In essence, Duane Buford is a jack-of-all-trades, definitely a leader in his industry, a great source for advice, and an excellent example for any entertainment business professional to study for multiple reasons. I encourage you to visit his website and to also search for other music professionals like him, in order to learn as much as possible about artist and product management, especially if this is your chosen career field.

Product Management Advice Applied to Song Production

      Art of Audio Productions (AOAP) currently only offers songwriting and vocal arrangement services for music geared towards youth. However, in the future I plan to have a “Song Production” department, which will handle the creation and production of all aspects of music products for young people. As such, it is important to consider the viability of the songs the company will sell, in terms of their marketability and ability to be sold successfully. Although AOAP will not be handing the product management of the songs produced, it is definitely something to consider as I enter the creative process. If AOAP will not be able to consistently create phenomenal songs, that are both marketable and appealing to its target market, then the company will have failed to meet this objective. Therefore, to help avoid disappointing both AOAP customers and young music consumers, it would be sensible to research aspects of product management, to include examining those who professionally manage music products on a day-to-day basis.

      In my research, I found not only information on product management, but also an interesting article on

Hypebot from a professional in this field. The article is about managing the product of music subscription streaming, written by Jon Maples, who is the VP of Product and Content for Rhapsody. In his article, he offers advice to two of his competitors concerning their strategy to obtain more subscribers. Maples points out to both Spotify and Rdio that they are making expensive mistakes with their recent advertising campaigns for television, which was a mistake that Rhapsody already made years ago with its Droga-5 bubbles ad. He basically states that by creating these types of ad campaigns, the selling of the service itself gets lost in the end, and consumers do not end up actually signing up for the service as a result. Specifically, to be successful, Maples asserts that the focus needs to be switched from the creative visuals and music itself, to actually explaining the services these music-streaming companies offer. As a veteran in his field, with over ten years of experience, it is logical to assume that he might be able to provide good advice based upon firsthand experience. Additionally, he also gives specific statistics about plays and follows for Rdio that seem to further prove his point. In a Geekwire article, Taylor Soper discusses Maples’ advice, and provides Rhapsody financial statistics from recent years that could also support Maples’ position as well.

      Now, how can this advice about product management be applied to the production of songs? I believe that the basic idea to take away from what Maples is advising, is that product management is successful when you stick to the basics of selling and promoting the product itself. For example, if AOAP intends to create a drum and bass song, then it should be evident that the song is actually a product that belongs in that category, and that it is appealing to the consumers who listen to that genre of music. With clear authenticity; great lyrics; phenomenal music; and quality, artistic production of songs; hopefully it should be relatively easy for a product manager to be successful and for numerous units to sell as a result, as long as focus remains on the appealing aspects of the songs and the artists singing them. It is easy to manage a product when it is obvious that it is more than just good!