Two Events Roll The Rock Industry!
KEVIN KLINE BENEFIT PERFORMANCE AT SSC!
Kevin Kline, Jared Sakren (Artistic Director for Southwest Shakespeare Company (SSC)), and myself at Mr. Kline's special benefit performance for SSC at the Mesa Arts Center on April 14, 2012.
The evening was one of the most memorable experiences I have ever had in the theatre! Mr. Kline answered questions for a good hour after his performance and was thoroughly charming and funny. He recounted stories from his film and stage career including snippets on Meryl Streep, Will Smith, Kenneth Branagh and others.
Just a wonderful, wonderful night at the theatre!
Thomas and Aubuchon Disbarred!!
Thomas and Aubuchon Disbarred!!
Just read in the paper that Andrew Thomas and Lisa Aubuchon were disbarred by the State Bar of Arizona! This is a tremendous victory for the legal profession. The actions of Thomas and Aubuchon in bringing baseless charges against goverment officials was one of the most egregious abuses of prosecutorial power that I have ever witnessed. If they had not been disbarred, the ethics rules would have been a laughingstock. Good job State Bar of Arizona!!
And the noose continues to tighten on Arpaio.
KEVIN KLINE AT SOUTHWEST SHAKESPEARE CO.
KEVIN KLINE
KEVIN KLINE, the Academy Award, Tony Award, and SAG Award winning actor, will be performing with the Southwest Shakespeare Company on April 17, 2012 at 7:30 p.m. at the Mesa Arts Center!
This is a very special and unique opportunity to meet one of the truly accomplished actors of our time!
BROADWAY BOUND - NOT SO FAST
Broadway Bound - Not Necessarily
Over the last few weeks, I have read a variety of articles regarding the state of theatre on Broadway. One of the major stories continues to be the ongoing saga of "Spider-Man". A variety of sources have commented on the weekly box office grosses of this mega-musical. The general box office grosses are in the range of $1.2 million per week.1
However, the "running costs" (what it costs to run the show for a week) are approximately $1 million dollars. In other words, this musical is doing top box office but is barely making money! It will take decades for the musical to reach "recoupment".
Another interesting article commented on how producers will fight to keep a show on Broadway - even if the show is barely making money, or losing money. 2 Why? Because the longer the production runs on Broadway, the greater its cachet on the road. And tours of a major Broadway musical can generate significant revenue for the producer and the investors.
The de-emphasis of Broadway is indicative of a broader trend across the entire entertainment universe. A record deal with a major label is no longer the sole dream of a musician. In motion pictures, a film can make significant money in the marketplace without a major studio supporting it. So too theatre - cities like Las Vegas and Branson, Missouri support first-class "sit-down" productions and can generate Broadway-like grosses. Broadway will never lose its preminence and prominence for theatre, but it is not the "Holy Grail" anymore.
2. "Broadway Musicals Hang On For Payoffs Beyond Weekly Gross", Healy, Glen, New York Times, March 20, 2012, Pg. 1, Arts.
PERFECT STORM FOR RECORD INDUSTRY
COPYRIGHT DEVELOPMENTS
"Perfect Storm" for Recording Industry
As if the assault of technology on the recording industry wasn't enough, there is now a "perfect storm" brewing that could very well be the death knell for what we now think of as a "record company".
Larry Rohter of The New Tork Times has published a series of reports on developments within the recording industry. Initially he reported on the controversy over the royalty rate to apply to downloads of songs1 - if it is considered a "sale", the royalty is 12%; if it is considered a "license", the royalty jumps to 50%. Litigation is already underway to force a ruling. A determination that a download is considered a "license" would force the record companies to pay millions of dollars to their artists. If a court should rule that it is a license, I would not be surprised to see the major record companies file for reorganization (bankruptcy).
On top of that, now comes the possibility that ALL copyright holders, INCLUDING musicians, will be able to reclaim their copyrights in their original creations. Under Section 203 of the Copyright Act, an author can terminate the grant of his copyright to a third-party once thirty-five (35) years have passed from the date of the transfer. Section 203 went into effect on Jan. 1, 1978. Consequently, the first year that copyrights will be able to be terminated is Jan. 1, 2013. The author must give notice of his intent to terminate the copyright grant two (2) years prior to the first date that the copyright can be terminated. Thus, the wave of notices being served on record companies.
For the recording industry, it means that recording artists can reclaim the ownership of the original masters of their albums. Larry Rohter, in his article reporting on the possible effect on record companies2, gives some examples of artists that can reclaim their works: (i) CARS - The Cars; (ii) DARKNESS ON THE EDGE OF TOWN - Bruce Springsteen; (iii) THE WALL - Pink Floyd; (iv) OFF THE WALL and THRILLER - Michael Jackson; and (v) PURPLE RAIN - Prince. Doesn't take a genius to see the value in those recordings!
Litigation has begun - Victor Wilis of the Village People has brought suit to terminate the copyright grant on, among things, "YMCA".3. The record company is arguing that the recordings are "works made for hire", which are specifically exempted from Section 203. "Work for hire" means that the author did the creative work at the direction and pay of another. The record companies will have to show that, among other things, the musicians worked hours that were set by the record company, paid paychecks, took out taxes, and in general, were employees. Anyone who has dealt with musicians knows that none of the above applies.
Legislative action is also being considered. Mr. Rohter reports on efforts by Rep. John Conyers of Michigan, to reform the law to remove the ambiguity regarding the "work for hire" exception.4. The litigation and possible legislation will have many ramifications, within and without the entertainment industry. I will certainly give updates on this situation.
1. "Suit Hints at a Bigger Payday for Older Artists", Sisario, Ben, NY Times, 3/28/2011, Pg. B-1).
2. "Record Industry Braces for Artists' Battles Over Song Rights", Rohter, Larry, NY Times, 8/16/2011, Pg. C-1).;
3. "A Village Person Tests the Copyright Law", Rohter, Larry, NY Times, 8/17/2011, Pg. C-1).
4. "Legislator Calls Fro Clarifying Copyright Law", Rohter, Larry, NY Times, 8/29/2011, Pg. C-1).
JOBS, JOBS, JOBS
All graduates entering the job market are facing daunting challenges - and the entertainment industry is no different.
A recent New York Times article1 commented how traditional entry level positions in the film industry have become scarcer - at time when film schools are being inundated with applications. For example, the film school at USC has received 4,800 applications for the 300 slots available. And that was on top of the 2,800 applicants for the year before.
The article made a couple of key points: (i) be aware of cost, e.g., USC costs $1,360.00 per credit; and (ii) be prepared - know the "business" as much as the "show".
And young, aspiring filmmakers in Arizona actually have a job-helping jewel right in their backyard - "The Film School @ Scottsdale Community College" (the "Film School")! People do not realize that the Film School is consistently ranked among the top 15 films schools in the country! And, the cost for in-state residents is $75.00 a credit!
Where Arizona so often lags behind the country in seeing the benefits of a vibrant entertainment industry, the Film School is truly cutting edge.
1. "For Film Graduates, An Altered Job Picture", Michael Cieply, NY Times, July 5, 2011, B-1.
DOWNLOADS - "Sale" or "License"
DIGITAL DOWNLOADS - A "LICENSE" OR A "SALE".
This seemingly innocous distinction has the potential to cost the record companies literally millions of dollars. The issue concerns the computation and payment of royalties for music downloads. See "Suit Hints at a Bigger Payday for Older Artists", Sisario, Ben, NY Times, 3/28/2011, Pg. B-1).
The article uses Eminem as an example. Under his recording agreement, If a "download" is considered a "license" the royalty to Eminem is 50%; if it is a "sale", the royalty is only 12%.
Obviously, the difference between the two rates can result in millions of dollars being owed to Eminem and other artists.
This will be a case to monitor and I will give you updates as I receive them.
ARTLINK - RIP
The real kicker is that ARTLINK wasn't even around to accept money from the City of Phoenix!
ARTLINk will now fade into obsolescence and obscurity, as the various artistic communities take control of their own promotion and marketing.
It is a real shame, but so typical of Phoenix and Arizona, that a once vibrant organization is taken over by people whose only agenda is self-aggrandizement and self-promotion. RIP ARTLINK - we are sorry to see you go!
FILM TAX CREDIT PROGRAMS
I have received an overview of the Film Tax Credit programs available in each state.
Although the Tax Credit programs are under fire across the country, some states are fighting to continue them. For example, Michigan, a leader and one of the most active in promoting their program, has a bill before its legislature to continue the program. Despite the "knee-jerk" reaction of "why give money to Hollywood", Michigan and other states are realizing the economic benefits that have flowed into their respective states as a result of their programs.
Recently, former Gov. Bill Richardson of New Mexico, wrote an op-ed piece for the New York Times ("There's No Business Like Show Business") discussing the benefits that New Mexico received as a result of their program.
Unfortunately, the Arizona legislature is too busy demonizing the Latin-American community, reducing workers rights, and returning women to the kitchen and undercutting their health, to pay attention to "silly" things such as jobs, tax revenues, and economic growth.
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