|
Production Company Deal,
Record Company Deal – What’s the Difference? (And the History of How Each
Came to Be)
by Darcie-Nicole Wicknick
With the climate of the recording industry as
temperamental as the San Andreas Fault, dissecting and negotiating the
perfect deal can seem daunting: Traditional label deal? Production company
deal? Independent label deal? What’s better for burgeoning
artists whose mission is to gain a widespread audience for their music?
Darcie-Nicole Wicknick sorts it out in this two-part article. Here in Part
One, Wicknick explains the difference between a record label and a
production company, and the evolution of each.
The Traditional Way
In the formative years of
the music industry - and until recently, in fact – the most clear cut method
for global exposure was to try to garner attention via touring and demo
recording, acquiring a manager and/or entertainment attorney to “shop” your
demo, inviting the all-important A&R rep or label talent scout to your big
show (or appearing in label showcases or televised talent competitions), and
waiting for the big break.
For vocalists, another method was to serve as a longtime touring and/or
recording background vocalist, as Mariah Carey did for Brenda K. Starr, and
waiting for a big break as a soloist. All in all, a long journey of tireless
dedication with no end in sight.
The role of the
Producer
Historically, in the
mainstream recording industry the role of the producer on a major-label
recording was simply as the director – similar to the role of a top director
in the film industry. It was a very specific job and often had little to do
with composition. Prior to the early 1990’s, producers were called to work
on recording projects for their specific touch. People like Quincy Jones,
Mutt Lange, Arif Mardin, Bob Weir, and Phil Spector were known exclusively
for their realization of the instrumental landscape through the masterful
arrangement, project management, and mechanical engineering of music. Rarely
would a producer have a production company as it is known today.
Boutique labels like Stax,
early Motown, Sun Records, Blue Note, and Decca might be considered early
models for what is known today as the production company. These labels were
hinged upon the consistency of the orchestrated sound of the music they
released.
Even major labels like
1940’s Columbia Records and 1960’s Atlantic Records carefully selected their
chief producers, essentially creating executive positions in production, in
order to ensure a standard of the “sound” of that particular label. They
also hired only their favored songwriters, instrumentalists, and background
vocalists.
Many producers, like
Quincy Jones and Phil Spector, unequivocally were composers as well.
However, their talents in that regard were always deemed as separate (as
they should be – see
Publishing and Royalties 101 article in
the Features section of this site). But it certainly didn’t
hurt that they were jacks of many trades.
The new way: The Modern Production Company,
and the New Producers
By the early 1990s,
particularly in the realm of R&B and Hip-Hop, with home-recording technology
on the rise with portable multi-track recorders, sampling machines, improved
polyphonic keyboards, the Macintosh computer, the MPC and drum machines, and
the advent of MIDI, the term “producer” came to mean something else. The
track makers or “beat” makers (who are really composers) could create an
entire instrumental foundation for a singer or a rap artist in the home
studio.
Out of this phenomenon,
the composer became a one-stop shop. He or she would compose the
instrumental, record all of the parts, arrange the song, edit the tracks,
hire the singers, rappers, and additional instrumentalists, sometimes write
the lyrics (or collaborate), engineer the finished product, and often mix
and master the recording. Coupled with this surge, independent pressing
companies, like Rainbow Vinyl, Discmakers, and Oasis, came into the
forefront. Thus, the person known as producer would absolutely produce--meaning,
actually create---the record, in the true sense of word.
The
more savvy producers knew that they were also songwriters and kept those
roles defined and the money matters separate. But as home recording
opportunities opened even further throughout the 1990s, and with so many
independent recording operations popping up, signing fledgling talent, and
creating simple demos (which could be sold as mix tapes or compilations), the
roles became increasingly blurred. The term “Producer” in some musical
genres came to mean the person in charge of the whole kit and caboodle.
[Note: the most common
question I get as a consultant from “producers” and “beat makers” is “how do
I negotiate for my 1-4 points on my beat?” I have to go into much detail
about the fact that they are also composers – which many contemporary
producers don’t know and they advertise they are selling their beats for
$50! Please read
Publishing and Royalties
101!]
Production companies expanded exponentially, adopting many of the functions
previously reserved for record labels. An independent production company
often found itself in charge of A&R, artist development, songwriting,
publishing, administering and song plugging a catalog, film scoring,
advertising, and of course, recording. Typically, until very recently, the
production company would then build relationships with record companies,
under the auspice of its recording prowess, hit making potential, roster,
and definitive sound.
The benefit of production
companies became increasingly evident as major labels invested less time and
financial resources in artist development. Production companies were seen as
valuable because they worked out all the kinks with the artists. Trusted
producers became the new liaison for getting new talent to the major labels
– a role in which high-powered managers and lawyers traditionally held rank.
To top it off, they came with songs...What a bonus! (For those of you who are
wondering, we’ll examine the concept of “ghost producers” in
Part 2 of this article.)
Given all that, today the
production company can be as powerful as a major label. More on that in a
bit.
The Record Company
A record company, whether
a major label or an independent, has one sole, three-part purpose: make records,
break records, and sell records. Record companies were led by music-loving and inexorably
shrewd visionaries such as Ahmet Ertegun, Berry Gordy, Sylvia Rhone, Clive
Davis, and Walter Yetnikoff, whose commitment to the pairing of exceptional
music, long-term deals, and lucrative marketing never waned. Prior to the
Disco era, the music came first, and investing in artists to garner
incredible results mattered.
We could spend a lifetime discussing the historic pitfalls and
corporate-favored record contracts that the major labels are known for. For
now, let’s just discuss the actual function of a record company:
In a nutshell, the label:
1) decides who is on the label’s roster; 2) selects the songs that will
appear on each album; 3) determines through survey and assessment what songs
will be pushed as singles 4) finances the recording, pressing, and promotion
of records (including tour support, music videos, and marketing) 5)
ascertains the release date, target markets, and distribution methodology;
6) gets the records to consumers via distribution; 7) oversees the product
development strategy and artist branding (both audio and visual) 8) manages
the accounting and business affairs for each record; 9) assists in the
negotiation of mutually-beneficial relationships for the artist’s record 10)
acts as the artists’ employer and 11) pays the bills – if only for a little
while… because in the end, it’s the artist
who really foots the bill.
After the Disco Disaster
of 1979 and the near-complete dissolution of the record industry as we know
it, the major record labels got really skittish about all these cool cat
execs making label decisions. (What I am about to tell you would filter down
over time to impact the DJ and the function of the Program Director with the
compression of the radio industry.
See
Radio in
Space article).
Labels began bringing in
heavy hitting accountants and lawyers and putting them into senior executive
positions. This was the beginning of the end for artist development,
although many major labels, particularly those under WEA
(Warner-Elektra-Atlantic family including A&M, Giant, and others) and Sony
(CBS, Epic, Columbia, DefJam, and smaller affiliates) maintained artist
development well into the 1990’s.
The Imprint Deal AKA
The Joint Venture
As production companies began to acquire more opportunity to set up shop in
a way that mimicked and challenged the “big label” power in the recording
quality, the relationship between production companies, and the moguls
behind them, with major labels became attractive to both parties. The
producers were viewed as a new resource for artist development, songwriting,
and product, as supernova producers such as Andre Harrell, Jimmy Jam and
Terry Lewis, Devante Swing, Jermaine Dupri, Puff Daddy (P. Diddy), and
Babyface began to develop longstanding relationships with major labels.
With single deals, EP
deals, or demo deals on the rise in the 1980s and 1990s, particularly in R&B
and Hip-Hop, new producers could bring attention to themselves and their
artists, for whom they would negotiate these deals with major labels. Once a
producer was proven, he might be offered a joint venture deal for a
particular artist or album. Or, he might be offered what is known as an
imprint deal, where the entire production company is signed to a deal with
the major label, and everyone on the roster is subject to exclusive release
by the major label. Examples of the imprint deal include Bad Boy (previously
assigned to Arista Records) Jive Records (formerly Zomba Entertainment, now
assigned to BMG) and LaFace (assigned to MCA). With joint venture and
imprint deals alike, the production company gains access to the benefits of
major label resources (more on that in Part 2 of
this article, next time).
As major record labels began to close or merge into conglomerates, many
production companies with leverage, now fueled by platinum selling hit
records
(and carefully-constructed entering contracts) could opt out of their
relationships with a failing label and become a mega indie label known as a
mini major, similar in size and success to that of Motown – the leading
predecessor for this model.
Post 1980's: The
Producer as Artist
Since the late 1980’s,
many producers are they, themselves, artists: those who not only produce
records, but also establish themselves as artists (many under joint venture
deals). Such producer-artists include Quincy Jones, Kanye West, Dr.
Dre, and Pharell (from The Neptunes). Some artists have gone on
to produce others, often developing radically successful production
companies. These include, among a host of others, ?uestlove of the Roots,
Madonna, P. Diddy, Patrice Rushen, Andre 3000 from Outkast, Wyclef Jean
from The Fugees, Queen Latifah, Chuck D. of Public Enemy, Donnie Wahlberg
of NKOTB, Will.I.Am from The Blackeyed Peas, and Prince.
So how do you decide? In
all of the above models, preparation, artist leverage, knowledge of your
rights as a songwriter (especially if you are a lyricist), and thorough
representation are critical. In Part Two of this article, coming next month,
we will examine this in-depth.
In the meantime, I hope
this overview and historical business perspective has been helpful. This is
the foundation for the expedition we will take next time.
Darcie-Nicole Wicknick is a freelance music
business consultant and the founder of AskDarcie Music Business Consulting.
She can be reached through her website at
http://askdarcie.tripod.com .
Part 1
Part 2
Part 3
Back to Feature Articles
Home |
