Industry information that you can actually use December 2003
UNI label caught in drug/racketeering scam. Pays $53 Mil in damages.
Punk rocker gets a street named after him. Makes Bush wait in line.
Major Labels to give health care to artists they dump.
Holiday thoughts from a Jewish Buddhist
And our big story…
A new Moses Avalon book is planned.
DISCLAIMER: This is not news. News is allegedly objective. This is anything but. This is about interpreting the news into information that you can use. Facts may occasionally be exaggerated to make a point. The key to predicting the future is in learning from our past. In real terms, this means understanding how the big players evaluate their mistakes and their recent acquisitions. Let's take a look. But first…
HOLIDAY SNAPS
I wish to take a second on behalf of myself and my small staff at the Moses Avalon Company to wish everyone a happy and healthy holiday and New Year. This year was our best yet and through some interesting controversies we managed to do one or two things effectively:
--We helped to educate many on the complications of Digital Distribution, including Apple.
--I personally went on Bill O'Reilly's "No Spin" zone and unspun him on the subject of the Grammy's being a "left wing conspiracy."
--Our mailing list expanded by over 2000 names.
--We referred over $175,000 in work to various production companies and attorneys.
--We helped some short-slighted folks reimburse hundreds of thousands of dollars to artists and small labels.
--We delivered over 100 consultations, 13 newsletters and three very successful Confessions Workshops. All of which helped to educate thousands of artists and lawyers about the realties of this business.
And we're just getting warmed up. Next year we hope to do even better by assisting with a program that will bring affordable legal assistance and health-care to every musician.
We're really proud to have you on our mailing list and want you to know that without your desire to share your experiences (negative and positive) and make this a better industry, we would not be able to provide the excellent service of keeping you informed and leveling the playing field in the music business. God bless each and every one of you. Have a happy and safe holiday.
Your friend,
Moses Avalon
For those who missed it, I went on Bill OReilly's "No Spin Zone" on Friday, December 5th and debated with him about whether the Grammy nominations were politically motivated to the left.
Bill tried to suggest that ALL Grammy noms were liberals by design. As proof, he offered the fact that "Gammy darling" Eminem's yet-to-be-released rap song, which talked of preferring the president be dead instead of putting the picture of dead presidents on money, was somehow anti-patriotic. I deferred to the First Amendment. To my knowledge, no one ever committed murder cause a pop song told him to do it. Oh, except for Charlie Manson who killed Sharon Tate (a liberal). Oh yeah, and Mark David Chapman who killed Lennon (a liberal). And didn't the Regan guy, who liked Jodi Foster, also say a pop song inspired him to attempt his shooting of the ex-president? Then there is Son of Sam and his talking dog. I believe he quoted Dylan when he was arrested and he was a Democrat. And a Jew. Humm, maybe Bill has a point. Dylan, Lennon, they are leftists too, right? And they all have won Grammys. Is it a conspiracy after all?
And I thought liberals were famous for being conspiracy nuts. This goes to show you that paranoia knows no political leanings. Bill is one of us now.
Thank you for all the post broadcast letters of encouragement and commentary many of you sent me. To answer a few brief questions I've been receiving: no it will not be re-broadcast, I don't have copies. But fret not, the summery above is all you need.
After about a year of negotiations, a deal has been inked to create a third tell-all Moses Avalon book. In this one I'm hoping to get some big people to give us inside dope on what the biggest pitfalls are behind the glass of the recording and music business. It should be out in mid-2005.
WORKSHOP BLUES
Because of this and one other (non-music related) book that I will be writing over the next 12 months, this next Confessions of a Record Producer Workshop in January 2004 will be the last one for a while. So if you've been putting it off till I come to your town, now is the time for you to come to me in LA. The deadline for early bird registration is December 16th. After that you will moan and pay regular rates. We can assist you in hotel accommodations, if needed.
If you wish to reserve a seat for the next one on January 24 & 25th in LA at the Musician's Institute, you can get the jump on others by sending an email to MosesAvalon1@aol.com or go to the home page of www.MosesAvalon.com and click on the top link.
And now, the "news."
PUNK ROCKER GETS A STREET NAMED AFTER HIM Skips line ahead of George W. Bush
Joey, we hardly knew ya. But now, future generations will ask, "Mommy who was Joey Ramone and why do we live on his street?"
Although no bronze statue is planned, this month, New York's East Village corner of Second Street and Bowery will be named after the King of Punk, Joey Ramone, departed lead singer and song writer of the Ramones, and his 70's Punk band that many say defined the sound of Punk music.
"Joey Ramone Place," as it will be called, is a stone's throw away from the famous CBGB's night club where just about every band in New York plays and is booed off the stage at least once in their career. The area is also once famous for where a person can score some of the best smack. However, these days some of the one bedrooms on that street are going for well over $2000 a month. What would Joey say about that?
The designation process took a relatively short time to funnel through the NYC red tape. Joey died less than three years ago of Cancer at age 49. By interesting contrast, the White House recently received a letter from the New York City Department of Parks saying that naming a street after George W. Bush would take slightly longer and referenced the time and circumstances of a snowball melting. They added that the application for a tree naming near Central Park's Sheep's Meadow (where many dogs do their business) could be expedited.
All fun aside, we at the Moses Avalon Company applaud this dedication and wish all Ramones fans (of which I am one) and George W. Bush fans, well on this holiday.
UNI IMPRINT IMPLICATED IN DRUG/MONEY LAUNDERING SCAM
Move over Morris Levy and Berry Gordy. There's a new bust coming to the Music Sleaze-Bag Hall of Fame and you guys may have nothing on him: Lyor Cohen, head of the Island Def Jam Music Group.
Lyor was forced to testify in what many are calling one of the ugliest legal hassles in the history of the music business: Conspiring with Platinum rapper Ja Rule, his alleged connection to mob money and a deliberate attempt to block the sales of Ja Rule records by Ja Rule's former label TVT.
Island Def Jam owned 50 percent of Ja Rule's record label, Murder Inc. which is under investigation for money laundering with one of New York's most infamous drug dealers.
With the success of Ja Rule's recent string of hits, his old label, TVT, decided to release recordings that Ja Rule had made while under contract with them. This is a real payday for a label who invests millions in developing artists, only to have the artists jump ship and have hits on another label.
Lyor took issue, killed negotiations with TVT and sabotaged the record's release. TVT had no choice but to sue. In addition to being head of Island Def Jam, Lyor also served on the executive board of Murder Inc. But, under oath claimed he couldn't state with clarity exactly what his job at the label was.
Final verdict: Island Def Jam will pay $53 million to TVT. Lyor was found personally liable for $3 million. The judge in the case said that Lyor was, morally reprehensible.''
It should be noted that Lyor Cohen is only one man and not representative of Island as a label. After all, no man is an island. ;-)
One hears bits and pieces of stories like this but rarely do we get such a detailed account of the efforts some will go through to compete in this business of music. For full details go to: aol://4344:30.LH0A5oKZ.7265715.754950088
UNION GETS LABELS TO COUGH UP CASH FOR ARTISTS THEY CAN'T SELL But How Much New Care Will Artists Really See? Will non-superstar artists finally get some decent health care? According to AFTRA (the union that protects pop singers) the answer is "yes." A new collective bargaining agreement reached between AFTRA and the RIAA requires labels to pay for health benefits for as long as an artist remains on the label, even if their CD is a flat-out bomb. In fact, even if the CD is NEVER released. But how much of the new health benefits will artists really see and how will it affect artist development in these tight economic times?
The new agreement requires RIAA affiliated record companies to make a minimum contribution to AFTRA's Health and Pension fund, each year, even if an artist they poured millions of dollars into earned back zilch. This is better for AFTRA artists than the old agreement which only required labels to make contributions for artists that earned royalties.
AFTRA will not disclose the exact amount of the minimum payment but says it's about $1000 a year for "basic coverage." For artists who earn over $10,000 a year in royalties, labels will make a contribution of about 10% of all that artist's royalties up to a cap of $12,000. This extra contribution will extend health care to the artist's family ("family coverage") as opposed to just the artist as an individual.
Major labels--who are required by law to negotiate with unions--walked away from the negotiating table holding ground on a few key points, mainly, the right to NOT pay an artist as a performer when his video airs on MTV. This seems like a double-standard against recording artists: other AFTRA signatories, like TV Networks, are required to pay residuals directly to an actor whenever a TV show they appeared in is rebroadcast. But labels pay an artist nothing when their video airs hundreds of times a month on music-video networks.
An AFTRA representative interviewed for this piece said the Union would be getting around to fixing the music video performance fees "problem" in next year's re-negotiations. (MTV has been on the air for 25 years.) Another item that was put on next year's negotiation slate was having the rights to masters that the label doesn't release reverting back to the artist.
While AFTRA feels that music video performance royalties (which would pay millions directly to artists) is not a priority worth fighting for at this time, they're still calling this new "health care" deal--where major labels will pay hundreds-of-thousands to AFTRA Heath and Pension Fund directly--a "quantum leap" for artists' rights.
SWEET DEAL FOR THE JAKE
How profitable will this deal be to the not-for-profit organization? Considering--from an actuarial point of view--the fact that most new artists while signed to major labels are between the ages of 19 and 28--very profitable. Surveys of recording artists indicate that a significant minority of new artists have children to support and, a vast majority seem to live well with numerous health-compromising life-style choices.
Also, AFTRA's health plan is structured with tiers. The more contributions a singer's employers make, the more coverage the singer receives. AFTRA would not disclose the amount of cumulative contributions required in order for a member to be eligible for basic health care or the family plan, but a more forthcoming AFM (American Federation of Musicians) executive said that $1000 would probably be enough to qualify for basic coverage.
There's just one problem: the major label contributions to AFTRA's plan are done per artist, not per person. Meaning that the money will be split among ALL singers in a group. In other words, if there are four singers in one group, the label contribution is split four ways (about $250 each). So, unless an album does very well or the singers in a group have performance income from other sources--a condition that is normally disallowed on a major label's exclusive recording contract--eligibility for the more lucrative "family plan" will be completely out of reach and even basic coverage almost unobtainable with an act that has multiple singers.
Based on the all assumptions above my experts agree that less than 15% of the signed recording artists on majors will actually be in a position to receive the health care benefits off this plan. Most of these 15% are earning good money and already have health plans that they pay for themselves or through the AFM or SAG.
In truth, although this new plan is a step in the right direction, it's also fair to say that there will be more money going into AFTRA Health and Pension Fund, via this deal, than going out. It also just might be the bargaining chip the fledgling union has been looking for to get the respect of SAG (the more powerful Screen Actor's Guild) with whom they have been trying to merge for over three decades.
QUESTIONS REMAINING
Some questions of this new deal that still remain unanswered:
1) What is AFTRA's audit rate? Since qualifications for the family plan are dependent on royalty reporting, how often do they audit labels to ensure that accurate reporting is made? And, along these lines, does an AFTRA artist have the right to DEMAND that AFTRA audit on their behalf, if they feel shut out of benefits due to under reporting by labels?
2) Will this deal hinder artist development? If labels are looking at minimum payments regardless of artist performance, will this create a new and additional barrier for labels to drop an artist? For a major, probably not-- $1000 does not really effect their financial picture, but what about smaller RIAA affiliated labels whose advances are around $30,000? Surely this will have an impact on them.
3) Can Royalty Artists strike if labels don't make the contributions? Since major label contracts have "suspension" clauses that can be executed the minute an artist acts uncooperative, have artists, in essence, waived their right to strike the minute they sign an AFTRA contract?
4) After several Attorney Generals fining labels $120,000,000 this year, combined with record-breaking sales slumps (no pun intended) how much head-banging are labels going to take before THEY go on strike? (Read Ayn Rand's, "Atlas Shrugged" for the answer.)
The new deal has yet to meet with board approval but is expected to be voted in this month. Comments on these questions are welcome. Please send them to MosesAvalon1@aol.com.
For less info on this important new deal go to: www.aftra.com
JEWISH BUDDHIST GIVES THOUGHTS FOR THE HOLIDAYS
A friend forwarded a whole list of witticisms of Yiddish Zen. If you like them feel free to do the same. Here are a few thoughts for the holidays.
--Wherever you go, there you are. Your luggage is another story.
-- Drink tea and nourish life. With the first sip, joy. With the second, satisfaction. With the third, Danish.
-- Zen is not easy. It takes effort to attain nothingness. And then what do you have? Bupkes!
HAPPY HOLIDAYS!!!!!!!!
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