MUM 221: Arts Management: the for-Profit

Rm: Fuller 418

Instructor: Gabe Herman
gherman@hartford.edu
Spring 2013, Tuesday, 4:50 – 7:20pm

If you need to contact me, please email me at my University email address:

gherman@hartford.edu
If you have an emergency, you are welcome to contact me:
Fuller, 3rd floor office opposite water fountain near bathrooms Phone # 5317
Office Hours to be held by appointment: 2-4pm Mondays and 11am-1pm Wednesdays BY
APPOINTMENT

Objective: To gain a better understanding of the inner workings of the for-profit sector of the
modern music industry through class discussion, guest speakers and assigned reading.

Required Text: Donald Passman, All You Need to Know About the Music Business
Steve Knopper: Appetite for Self Destruction

Suggested Reading:
Music Industry Publications: ie: Billboard, Rolling Stone…(These are all
free to you through the Allen Library).
Krasilovsky, This Business of Music
Rappaport, How to Make and Sell Your Own Recordings
Dannen, Hit Men
This Business of Touring

Additional text and resources will be given during class in addition to these
readings.

Content: This class is driven by participation, discussion and group project. For each class
reading assignments will be given from the required text. It is the responsibility
of each member of the class to complete the reading assignment and be prepared
to contribute insightful thoughts and ideas during class discussions from both
these readings as well as from an industry publication of your choice.

Throughout the duration of the class, guest lecturers may present a series of open
conversations and lectures based on their personal experience within the music
industry. You are required to actively and intelligently engage these speakers in
these discussions as part of your class participation grade.

A final project will be assigned to the entire class where each student will
develop a product or service that will address a need within some facet of the
music industry. At the culmination of the semester, the class will present their
work to each other for a grade.

A cumulative Mid Term and Final Exam will be given.

 There will be opportunities for extra credit assignments and activities throughout
the semester. Special workshops will be offered throughout the semester outside
of scheduled class time aimed at looking at some critical topics relating to the
music industry and how to survive in the business as well as student moderated
discussions on special topics relating to current issues within the industry. While
these workshops are not mandatory, they are a chance to widen your
understanding of related topics discussed in class as well as an opportunity to
participate in industry-related discussions with your peers.

Evaluation: Students will be assessed on their performance within a group setting as well as
graded on individual participation in class discussion and activities. Attendance
is mandatory for this course and will factor into your final grade.

Class Participation 20%

Mid Term 20%
Final Project 30%
Final Exam 30%

Attendance: ATTENDENCE IS IMPORTANT! Students who miss more than 3 classes will
be administratively removed from the class. Attendance is of the utmost importance as in-class
content will be directly related to your ongoing group assignments, exams, as well as your class
participation grade.

Academic Honesty Policy: As stated in your student handbook…

A. All students are expected to observe generally accepted principles of scholarly writing in all
examinations, compositions, papers, essays, tests, quizzes, reports, and dissertations whether
written in the classroom or outside. Sources of information used by a student in the preparation
of work submitted as a basis for credit, or for a grade, or to satisfy graduate or undergraduate
thesis requirements shall be clearly indicated in some conventional manner, such as by the use
of quotation marks, footnotes, and bibliography.
B. Students are forbidden to submit as their own any project, paper, or creative work that is in
whole or part the work of another.
C. The use of a term-paper writing service is prohibited. Also prohibited is the use of term papers
obtained from the Internet, in whole or in part.
D. All examinations and quizzes are to be completed without reference to books or notes except
when the instructor of a course shall have given explicit authorization for an “open-book
examination” or some other specified sort of assistance. Except as authorized by the instructor,
no student is to give or receive assistance in the completion of an examination or a quiz.
E. Other examples of academic dishonesty include, but are not limited to, the falsification of
academic documents, such as transcripts, registration materials, withdrawal forms, or grade
reports, as well as the unauthorized reading, removing, or copying of any academic document
or record maintained by any member of the faculty or administration.

Any student who is found to be in violation of the University of Hartford Academic Honesty
Policy will be given a grade of ZERO for that assignment and/or the student may be
administratively removed from the class.
Course Outline:

Week 1: Jan 22 Introduction to the for-profit business sector as well

Review class assignments as a brief history of the recording industry. For-
Profit vs. Non-Profit capitalism. Review Syllabus
and discuss class assignments.

Week 2: Jan 29 General discussion of various types of business

Industry paper entities: Corporations (class A-C), LLC,
Partnerships

Week 3: Feb 5 Structure of Corporation: Establishment, execution,

Industry paper hierarchy, legal requirements & termination.
Designate project groups Corporate Growth…what are the signs of healthy
markets? Who’s lacking? What are the key
elements that determine corporate success?

Week 4: Feb 12 Introduction to Personal Management and Business

Industry paper Management. Support staff for product/artist
development.

Week 5: Feb 19 Introduction to Record labels: Indie to Majors.

Infrastructure, clientele and just what are they
selling?

Week 6: Feb 26 For-Profit music industry entities: Publishing

Industry paper Companies: ASCAP, BMI Harry Fox and Basic
Copyright Law.

Week 7: March 5 Midterm

Week 8: March 12 Television Film and Web…they need music, how

Industry paper do they get it?

Week 9: March 19 Multi-Media and audio…Video games, Web

Industry paper Development, Animation and interactive media.
Class Company Mergers?
Spring Break March 23-April 1

Week 10: April 2 Touring and Merchandising: A look at additional

Industry paper forms of capital available to professionally touring
artists and their support teams.

Week 11: April 9 Endorsements, Music Videos and special

Industry paper appearances, Advertising and commercial media.
Scheduled review times with instructor for final
project.
Week 12: April 16 Digital distribution & Music Industry Commerce.
Scheduled review times with instructor for final
project.

Week 13: April 23 Group Presentations

Week 14: April 30 Group Presentations; Review for final exam

FINAL EXAM : Will be given on the day designated by the academic calendar.

ASSIGNMENTS

Industry papers: A one-page summary and response to a current article in one of the
approved trade publications is required on a weekly basis. During class,
a brief oral presentation of these will be made by a randomly selected
batch of students. Each presentation will be followed by a short question
and answer/discussion period, during which students will be asked to
compare their topic to a historical event in the music industry and use the
comparison to provide insightful commentary on how the current event
might impact the future of the industry. Questions from the rest of the
class are encouraged during this discussion.
Or,
You may write a one to two page research summary of a historical event
or technological invention that played an important role in the overall
evolution of the music industry. Subjects are to be taken from the music
industry timeline distributed on the first day of class. During the
presentation, students will be responsible for relating the historical event
within the context of the era, citing other significant events that were also
happening at that time, as well as provide information about who was
involved with the event, who it impacted, and how it laid the groundwork
for future innovations.

Papers are to be typed and double-spaced. Length is not as important as

content. Eight industry papers are due throughout the semester. Be sure
to check the syllabus for due dates. No late assignments will be
accepted!

Final Project: You are responsible with designing a For-Profit company that will
identify a specific and currently unaddressed need within the Music
Industry and develop an innovative business that will offer a proposed
solution. You must work individually initially. By the spring break, you
will have the opportunity to merger your company with other companies
in the class to help widen your appeal and marketability. Your business
Must have a clearly documented mission statement which will outline
your company’s immediate and long-term goals. You are required to
provide a business plan showing the financial details of your initial
investment, ongoing costs, as well as developmental upkeep and fiscal
growth over a period of at least 5 years in the form of an Excel
Spreadsheet. You must provide documentation that cites your research of
specific trends in the Music Industry as well as historical precedents that
back up your data for expected growth and success. (For example: If
 tomorrow, Christina Agulara suddenly starts wearing shorty-pajamas on
stage and it becomes a fad amongst the pop world, then how will past
industry trends impact the way your company, which specializes in
celebrity attire, handle the trend today?)

If your company makes a product, detailed drawings or models will be

required to demonstrate your vision of how the final product will be
experienced by your consumers/clientele. If your company is responsible
for a service, or set of services, then specific documentation must be
provided illustrating a clear description of what you are providing, as the
END USER would experience it.

Along with your completed assignment, you will need to complete the
proper documentation for your company including articles of
incorporation (if necessary). If your company is a sole proprietorship,
partnership or LLC you will need to include the proper documentation
required as per your state or origin.

In addition to formal documentation, this project will also be graded on

the following key elements:

Organization: Project is presented in an easy to read and navigate manner.

Clarity: Documents are written intelligently and are without spelling
errors.
Creativity: Product/Service shows a well thought out and a creative
approach to the needs of the music industry
Profitability: Could this plan be executed as presented and realistically return
a profit?
Punctuation: All documents for this assignment must be turned in on time.
NO LATE PROJECTS WILL BE ACCEPTED

At the culmination of the class, each company will briefly present their
work for peer evaluation. Presentations should be developed that
show informative details of your product or service as well as
deep consideration for the main attributes of your company and
how it will make a pofit. More credit will be given to
presentations that utilize multi-media formats in their delivery.
(ie: powerpoint, graphs, charts, etc…)

Everyone will have weekly opportunities to meet with the instructor to

discuss strategy, fiscal evaluation, as well as other areas of
concern. It is your responsibility to make these appointments
with me via email or in person at least a day in advance.

Each Student will have the opportunity to meet with me to discuss the status of your project at any
time. There will be scheduled meeting dates at the end of the semester to ensure that you are up to
speed and are prepared to turn in your best possible work.
 HOW TO COMPOSE A BUSINESS PLAN 1

Step One: Market Research

1. Define your product by means of another existing and similar product.
a. How do they compare?
b. Can you see any competition from this product?
c. What are the sales figures for this endeavor to date?
d. Who does the existing product service and how is it similar or different from
your product?
e. How has this company approached marketing their product?
f. How long has this product been on the market?
g. How much does this product cost?
h. How does the market expect this product will change over the years (from your
perspective)?
i. How can you utilize the weaknesses of the existing product in your marketing to
create a separate market for your product or service?
j. Consider other options for comparisons.

Step Two: Financial Obligations

1. Define your fixed costs
a. Rent
b. Materials
c. Talent/Workforce
d. Travel
e. Utilities
f. Insurance
g. Equipment
2. Define your variable costs
a. Heating bill
b. Electric Bill
c. Materials for restock
d. Seasonal flux to handle holidays

Step Three: Fiscal Outlook

1. Define the overall costs and then calculate:
a. Business/month for first year
b. Expected gross
c. Calculated Net
d. Show deficit to overcome

2. Estimate the rate of growth and calculate:

a. How long till break even
b. When will first profits happen
c. How long a growth trend can be sustained
d. When the company will need to look for expansion to meet fiscal needs
e. How fixed costs will change to reflect growth

3. Calculate Doomsday and Miracle Scenarios.

a. One year
b. Three year
c. Five year
d. Ten Year