Industry Liabilities

There is never a dull moment in the entertainment industry.  Over the past few months, there have been multiple reports of companies in the news for legal issues.  These companies included Groveshark, SiriusXM and Universal Music.  Groveshark was a well-known streaming site, accused of piracy and has been shut down.  Groveshark had a long history of distributing music from major companies without a license.  They had over 2,000 copyrighted sound recordings and damages estimated to over $400 million.  Groveshark has agreed with Sony, Warner and Universal and ceased all operations.  This is an ongoing issue in the industry, labels are having troubles controlling music from being leaked.  I feel that this is a major step to gaining control back, it sends a message to other companies that pirate music.

SiriusXM was in the news back in September for a copyright battle.  The case states that Sirius “violated the Turtles’ pre-1972 master copyrights by playing their music without licensing or paying performance royalties.”  The argument was that the master recording rights did not exist until 1972, so SiriusXM did not feel that they were in the wrong.  It was noted that each state had their own laws on master rights, this case took place in California.  Other companies like Pandora are fighting the same battle with paying master rights, this case is huge for artists and labels going forward.  According to the law, radio companies are not in the wrong,  but the artists should have the right to be compensated for their work.

Universal Music Group was in the news recently for cheating artist and classifying digital downloads as sales rather than licensing.  Licensing gives the artist and even split on their sales, while digital sales only gives the artist 15%.  According to Billboard, Universal came to a settlement of  $11.5 million and an increase of royalties for artists.  Although Universal still claims their innocence, I feel that the situation was handled correctly.  As mentioned earlier, artists are already being underpaid from laws and illegal streaming companies they should at least be able to trust their label.

Ted Talk: How Great Leaders Inspire Action Review

One company that I feel follows the “why, what and how” structure is Nike.  Nike specializes in everything that has to do with sports and physical activity.  In the video, Simon says people buy into why you do it, Nike’s focus are athletes.  This had led the company to creating a lifestyle brand.  Consumers purchase Nike products even if their not athletes.  They buy for comfort, style and general physical activity.  I feel Nike is in it for the “why” and it reflects in their continued success over the years.  We also see Nike displaying “why” with the people that endorse their brand.  They have Michael Jordan, LeBron James and Tiger Woods to name a few, which are all major athletes.  We see Michael Jordan shoes not only being used by athletes, but in fashion for all ages and genders.

When purchasing Apple products, I would consider myself closer to the late majority.  I did not buy my first apple product until I bought the iPhone 4s and did not have a MacBook until I attended Full Sail.  I thoroughly enjoy these products and will continue to purchase, but do not plan to be first at buying them.  When it comes to music, I have always been an early adapter.  Growing up, I was always the one that heard the new artist first and able to tell what the next hit song would be.  Unlike most people now, I still purchase CD’s during the first week of sales.  This year alone, I have already purchased 10 CDs.

One Million Cups Review

For the “One Million Cups” video presentation, I watched the pitch from the “Rally Makers” and “Live Music Tour.”  Rally Makers works with charities to make a sustaining impact into the community.  One of the components of the company was to collaborate with organizations and mentor them.  This gentleman had a well-prepared presentation.  He seemed to be comfortable throughout the presentation and was able to present without any note cards.  He always made sure to engage with the crowd by making eye contact.  Visually, I feel he should have used a PowerPoint slide.  He did a great job of drawing what the business was about, but I am not sure that everyone was able to clearly see it.  This could lead to the audience not fully understanding your business.  Next time I recommend using the projector screen.  As far as the business, I feel it is important to build more of a presence.  The presenter stated that if you want to get updates on the company follow them on social media “because they are not great at telling folks.”  Some investors are older and not involved in social media, it is important to consider all potential clients.  

Live Music Tutor was in the business of being an online music tutor.  They offered lessons on playing various instruments along with vocal training.  The speaker was well prepared, he was very comfortable and the presentation was clear and informative.  He began the presentation with a brief video description of the company and incorporated key information such as revenue streams, key partners and services offered.  Although he did a great job, there were areas I felt he could have improved.  The presenter had a stack of papers in his hand that were a distraction during his presentation; he also used the podium to lean on.  I suggest keeping his hands free next time and not leaning on the podium.  For the business, I suggest giving a trial session before making the customer commit.  This allows the customer to see if this is something they really want, and allow them to test the connection.

Overall, both were great speakers and had companies that could really make a difference.

Negotiation and Deal Making: Examples of Deal Tactics

 In “The Deal” with Alex Rodriguez, we saw a mutual benefit reached with his contract.  Rodriguez initially signed a 10-year $252 million contract with the Texas Rangers in 2001.  After two seasons, the Rangers told Rodriguez he would have to take a pay cut in order to get better teammates.  Rodriguez expressed his interest in a trade to either the New York Yankees or the Boston Red Sox.  Rodriguez gained interest from watching a playoff game between Boston and New York stating, “I want to be apart of this rivalry.”  Although Rodriguez was a short stop, he agreed to play third base for the Yankees.  The Yankees paid him $112 million for his remaining $172 million contract, the Rangers agreed to pay the rest.  What I learned from this negotiation always be flexible while negotiating.  Rodriguez was the best player in the league at the time.  If he had been stubborn about his position, the deal would not have gone through.  I can use this early in my career when looking to get my foot in the door.

On the Breakfast Club radio interview, Tyga a rapper with Cashmoney records, talks about how he has never received a check from the label but still fulfills the obligations of the contract.  He says that he only received a signing bonus and the company has paid advertising fees but has not received any money.  Tyga says he approaches his career as an independent artist, so he does not feel that the label is taking advantage of him.  This company has gained a bad reputation of not paying artist.  This is an example of how companies in the industry are using dirty tricks. This taught me to always read the details of contracts before signing them.  It is hard to believe that so many artists are having the same problem with this label.

In VH1’s behind the scenes about DMX, we see how position and interest made this deal come about.  The label of course, was looking to sign the next biggest artist, while DMX was an aspiring rapper looking for a deal.  Irv Gotti, DMX friend stated that rap needed the change and DMX was the change.  DMX rapped about real life situation, during a time when rap was flooded with rappers talking about extravagant lifestyles.  DMX provided what the label was looking for; the label manager stated he was “sold” when he heard the hunger in DMX’s voice.  DMX made a career of speaking his story, which is what he always wanted to do.  We saw this in his content throughout his career.  DMX even stopped doing drugs because he felt that he was doing what he loved.  This is truly an example of position and interest. This negotiation taught me that when both parties are on the same page the deal is easy to negotiate.

Rich Dad, Poor Dad

I have begun reading Guy Kiyosaki’s “Rich Dad Poor Dad” this month.  A while back, this book was recommended to me but I never got the chance to read it.  I was excited this month that it was a required text for the class.  I have always been huge on trying to find ways to increase my income and even manage money in business and life.  Growing up I was in a similar situation as Mr. Kiyosaki, I had my real dad and my step dad.  Both were very good men but had different approaches of becoming financially stable.  My real dad believed in having multiple streams of income, specifically with real estate.  My step dad on the other hand believed in multiple streams but stressed saving for the rainy day.  Both have shaped me to think a certain way and I have learned a lot from both.  The book helped me understand why just saving would not help me in the end.  Saving has been very beneficial to me and it is necessary to save.  For instance, during my undergrad it seemed like my car would always break down at the wrong time.  It would upset me until I would remember that I had money stashed away to take care of the repairs.  Saving was more of a relief, but after that money was gone, I was back to square one.  The book made me realize how valuable assets were.  My real dad is one to always treat himself, he has multiple cars, takes trips when he wants and seems to be happy with life.  He taught me to organize money using the envelope system, although he did not directly teach me to gain assets, after reading the book I realize that is all he has been doing.  He was similar to rich dad, leading by example.  In business, having the knowledge from both sides is going to take me a long way.  Gaining assets will help me grow my company and prepare me for the rainy days. So far, this book has taught me the importance of financially literacy.  I realize that it is not about working hard for money, but having the money work for you.

I look forward to finishing the book and learning to become financially stable!