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LOU LEVY PUBLISHERS ROUND TABLE 1998

Part 6: Don't They Teach This In School?

Leeds Levy: But my question is, where are they training the executives for tomorrow? If our industry ends up being run by -- I mean, I've got nothing against MBAs or accountants as long as they're music publishers first, but if you've got someone coming directly from Diet Coke to EMI Music, I think that's going to be a problem for our industry. Where is the mentoring going to come from?

Leeds LevyBV: There's not much of a training ground.

BJP: I would probably agree, but I'd also say that a lot of kids coming in now think they're at level ten already. It's like you're a basketball coach with players who are so talented, but they're just uncoachable -- you understand what I'm saying? You have to show yourself worthy of being trained, or usually they'll sort of let you just be there -- "Oh, he's okay, he's finding some cool stuff."

LL: He's a great player but he'll never be a great coach.

BV: It's interesting -- especially at record companies, youth is being hired over experience. If you don't have the experience to guide the youth, you have nothing.

LL: But experienced executives don't guide the youth, they don't want to guide the youth. They're protecting their gigs, keeping everything close to the vest.

Big John PlattBig John Platt: No one wants to reach out and say, "This is how you should do this." They'll just watch you fall rather than try to catch you. If that's going to change, I think it has to start with every individual looking in the mirror and saying, "I'm not going to be that way." Most people don't learn from the mistakes of others -- although successful people do. My writers and I will be in my office till all hours of the night just talking, because I want them to understand what this business is really about. You've gotta be able to talk their language, because sometimes if you tell someone to do something, they're not gonna do it. You've got to tell them in their way, and creatively push them. But there is definitely a gap between the older executives and the up-and-coming ones.

LL: They do have mentoring in Nashville, and from my experience, Nashville's community of executives is the best-trained, across the board. They have a thing called Leadership Music Nashville where they give you one-on-one contact with more experienced executives: imagine sitting with Clive Davis all day talking about different situations -- it's almost like the Castle sessions, except with executives. Nashville has always tried to reinvest in their executive talent as well as their musical talent.

Part 7: The Ever-Changing Biz/Pay For Play

JA: How do you think the business will be affected by the Universal/Polygram merger [which will consolidate MCA and Polygram Publishing]?

Barbara Vander LindeBarbara Vander Linde: I think that kind of situation makes things better for smaller companies, because a lot of writers won't want to be folded into a huge roster. When you're number 70 on a writer list of 150, how much attention will you get? I think that's why so many writers don't want a co-pub deal, because they feel like they're doing it all themselves.

AB: John, how does it work at EMI? You must have a ton of writers, does EMI really sign the amount of acts that we perceive they do?

BJP: It seems that regardless of what we have, everyone seems to get taken care of. It never seems like too much. Some people have five writers, I have 15 or 20, but it doesn't seem like a lot. It's probably a little different for the alternative bands, because you're talking about bands where you might not have to deal with them day-to-day.

LL: I'm more concerned about pay-for-play at radio, quite frankly. It's starting now in country, but it's going to happen in pop and R&B. It's already expensive to promote in radio anyway, and I've got to assume that record companies are going to come to publishers and say, "If your song is played on the radio, you earn money, so we think you should contribute to this promotional campaign." You guys are worried about songwriters cutting in -- I'm worried about record companies!

BG: Hasn't that happened already?

Leeds LevyLeeds Levy: Yes, for independent promotion money, and in the scheme of things, that was a relatively manageable amount of money. But one radio network is talking about a campaign for $20,000 or $40,000 for just their network of country stations -- and from there you go to how long they'll play it, and how many spins you're guaranteed. Then you get other radio station chains saying they'll cross it over to pop radio, guaranteeing you this much play, and at the end of the day you're talking about something like $150,000 that you didn't have to spend before. Maybe it will make the record companies shift their priorities and figure that, since they can't get anything played on MTV anyway, they might as well spend $150,000 on pay-for-play instead of a video.

What really concerns me is the long-term effect distorts the marketplace -- what you hear on the radio is not what people want to hear, and they won't even get to hear what they might want to hear. They're being fed songs because a broadcaster made a deal with the record company that paid the most. It's just a matter of time until the record companies, particularly the indies, come to us with their hands out.

Anyway, I hope that the internet will open up a new channel that will not be as constrained as either MTV or radio as we know it. The internet doesn't care how old you are, what color you are, what car you drive, where you live or anything -- and if people can be reached with some entertainment that they like, they may click and buy.

I hope it will make for a much broader consumer base for music. Record companies have narrowcast their research down to who the consumers of certain records are going to be -- and yet they still get blindsided by several records a year where they have no clue who buys them. The best example of that is Titanic: Sony couldn't give that record away internally -- every label turned it down, and finally Sony Classical said, "Okay, we'll pay the $700,000 -- and maybe we'll sell 300,000 copies." [The album has sold over 10 million units in the US alone.] I think there is a lack of understanding of who buys records, who potentially can buy records, and how to reach the people who may want to buy a record.

BJP: I don't know what you guys think about this, but I think there might be a scam being run with the record and publishing companies with a major Los Angeles radio station. All you've got to do is get a song played on that station, and you can get a record deal, a publishing deal -- and six weeks later the station may drop the record, but you've cashed in, and everyone's gotten their kickbacks. I know it's happening. I hear this station mentioned so much: someone says, "I hear this station' s [playing] it" and all the sudden everybody goes crazy. I think there's a big scam going on, and it won't come out until there's another Hit Men or something. Hell, I was a DJ, I know that if you play something enough times you'll get requests for it.

It seems so easy -- let's talk hypothetically: I'm a manager, I go to the radio station, "I've got this band" -- who's a decent enough band -- "play this record for six weeks and I'll give you $100,000." I can get the $500,000 publishing deal, the $350-400,000 record deal, and after that, $100,000 is nothing!

LL: That's nothing compared to Europe. I remember, if you had a summer record that you wanted to get played in the South of France, you made a deal with a radio station and gave them half the publishing. So we did that and we thought it would be a big hit, but we wound up getting no airplay because the publishers of the B-side gave them 100% of the publishing and received all of the radio play!

Part 8: The Other

JA: What is the biggest misperception that writers have about music publishers, and vice-versa.

AB: The first one's easy -- the bank one.

LL: That we're banks, parasites, insurance agents...

BV: That we don't do anything.

Antony BlandAntony Bland: They're also wise to the fact that a lot of publishers and label people tend to be reasonably young kids that kinda look like them and act like them and have the same musical opinions as them -- and they're deliberately planted there to win these bands over. I think the bands are getting smart to that and they don't trust anyone anymore. But then again, can we trust them or their managers?

JA: Do you ever feel like a plant?

AB: No, and I think I'm maybe too honest with the artists when I say, "This is what I am, this is what Chrysalis is, this is what we're prepared to do for you." I try not to slag off other companies --

LL: He leaves that to me! (laughter)

AB: Because you can't say that EMI and Warner/Chappell and Rondor and Windswept and Peer and whoever else don't do anything for their writers, because obviously they do.

LL: I also appreciate it from the writer's perspective: It's essentially a private business, they struggle, there's overwhelming frustration -- I don't think I could do it, quite honestly. Even if you're an A&R person who doesn't have the authority to green-light a project -- at least he's got a paycheck for the moment, the writer's completely out of a job.

BV: That's like when songs get put on hold. This is this writer's livelihood: a major label CEO will hold a song for a year or two years, sometimes, and even then there's still no guarantee that it's ever going to come out. And maybe the contemporary feel of that song has expired -- you have to invest more money to demo it again, maybe the trend has changed --

BJP: If someone holds a song too long, nobody'll want it. I went through that recently, where two people wanted a song, one wanted to keep it on hold, the other wanted to cut it right away -- and I went with the cut. You know how people act when they want something -- they'll reach out. Puffy will call up and say "Yo, this is my song, isn't it?" I know he's interested -- and I want my songs placed on projects where the passion is. "Come on! Let's do this!" That's passion.

Part 9: The Numbers

BJP: But I think some of the misperception is just lack of education. And not knowing what the numbers are. A lot of writers think if they sell 500,000 records they should get $2 million -- they don't know that they only generated $350,000. It's a penny business -- and those pennies do add up to dollars, but you've gotta know what the pennies are.

That's what I like about publishing: if you're smart, you know the numbers -- hell, you'd better know the numbers! -- and to me, it's a safer bet working with songwriters and publishing than records. Because a songwriter could have a song on, say, the next Celine Dion album, but if that album catches a brick, that's okay, because they have songs on nine other projects. There are more chances with a songwriter than with an artist -- at a major label, if you put the record out and it only sells 50,000 copies, the band gets dropped and you're fired! With publishing, well, that project didn't do that well, but we've got this song placed on this movie and we've got this cut in French -- there are so many opportunities to generate money if you take advantage.

BV: I think it's the more creative job.

Leeds LevyLeeds Levy: Unfortunately, I think writers have heard more negative stories about publishers than positive ones, so there's probably some validity for a writer to have misconceptions about what a publisher can or can't do. I'm a businessperson: sometimes I'm an investment banker, sometimes an A&R person, an agent, a psychiatrist, it all depends. Not all experiences are the same, and there's no one more anonymous than a music publisher. We are at the very low-profile end of a very high-profile business, and what you hear are the horror stories.

AB: I think one thing that is always discounted is the actual amount of time we put in -- it's always about how much money and did you get this or do this, the actual time you're taking away from other writers or artists that you're developing, especially new artists.

BV: I could have become a psychiatrist and made a hell of a lot more money. It's all the same skills!

Part 1 | Part 2 | Part 3 | Part 4 | Part 5
Part 6 | Part 7 | Part 8 | Part 9


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