Re: Music Business Law
One-Stops are special distributors. They are distributors that handle all labels. They buy from other distributors in order to sell to smaller stores. They are basically another middle man. They distribute to independent stores, chains usually get the stuff from other distributors.
Music clubs- usually cut out the retailer and distribute directly to the customers through the mail. They used to distribute only one record company and then switched do multiple companies. Because of Internet stores these have become less important
Rack Jobbers- are like vendors and have their own designated areas within a retail store and sometimes have their own section in the store with a cash register. They fill their own racks and bins. It would be like an H&R block in Wal-Mart.
Retail Stores- they stock a large variety of inventory from different record companies. Small stores are disappearing except for used stores and “Niche” stores. A niche store is a retailer that caters to specific genres.
Price Discounts- Deciding discounts usually depend on what sort of discounts the retail store gets from the distributor.
Retail Chains- tend to be more efficient and profitable. Can distribute between stores. There tends to be the same selection throughout the nation. This makes it harder to find local bands. Retail stores used to be able to return records for 100% refund. This way if records weren’t selling a retailer could sell back stuff that isn’t moving without having to buy the records.
Cutouts- are records that didn’t sell. The record companies sell these at low prices. Cheap classical music and closeout bins include these cutouts. These can also be records that were produced for a very cheap price. These are usually the original masters and are repackaged or re-released. K-tel is an example of one of these labels. Many times these are sold directly to consumers through TV. Adds.
National Association of Recording Merchandisers- is the international trade organization for music recording merchandisers.
Research Development- market research is knowing what customers want to buy and how much they’ll spend and where the consumers are located.
Charts- in times past were frequently inaccurate with their data collection.
Broadcast Data Systems- is owned by Billboard and tracks airplay of songs using computers. The computer is given a digital signature of each song it tracks. Machines then tabulates how many signatures it is given to provide accounting for airplay.
Mediabase 24/7- uses some of the same techniques by BDS. Collected within 15 minutes of airtime and posted within 2 hours of the broadcast hour. Monitors hundreds of stations. It also monitors oldies and in-studio shows using human listeners.
Sound Scan- is used to generate the Billboard charts. It uses a computer network linked to record retailers, rack jobbers, and internet. Only about 65% of the total data is collected. Rankings were not only quantified with numbers sold but also with airplay.
Album Vuts- difficult to track airplay since an entire album is never played together on air. The Billboard Air Play Monitor tries to improve data in this area by identifying songs.
Other publications such as the Gavin Report, Radio, and Records are similar to the Billboard charts.
RIAA- most representative trade association. This group determines whether an album goes “gold.”
The RIAA is involved with anti-piracy. The movers behind Napster and mp3.com.