To the Stars......And Beyond

"The items in the car lifted up, weightless, and Alan’s umbrella became airborne. Jonas reached for it, determined not to let his brother’s hopes be ruined.  His fingers closed around the heavy wood handle just as the car suddenly sped up into real time and hit the ocean water, sending Jonas into darkness."

Above is an excerpt from the brand new book entitled, "Of Nightmares" by Thomas Delonge and Suzanne Young.  In fact, this recently released novel is the first in a trilogy that follows the young protagonist, Poet Anderson, through the ever-changing landscapes of the dream world.  Additionally, this story comes with a companion piece, a 4-song EP that is to be played in the background as the readers immerse themselves into the Poet Anderson adventure. 

What makes this release so significant, as well as inspiring, is the fact that it is one of many releases from Delonge's transmedia company, "To the Stars."  In fact, the Poet Anderson franchise has already seen a short animated feature, three graphic novels and is expected to have a "live-action" short film released within the coming months.  Consequently, Delonge has found minimal time for anything else, but he is more than ok with that.  The aforementioned projects seem to be only scratching the surface of Delonge's epic plans for future works, which he has been continuously hinting at via his Instagram and Twitter accounts. 

As an individual that has been incredibly inspired by Delonge's music since my middle school years, I am intrigued with the way he has been conducting himself when it comes to the business side of the industry.  Consequently, he has realized that the trend of transmedia projects is the future for many artistic groups due to their inherent value as well as tangible elements that seem to have disappeared since the digital revolution.  To be honest, I am very intrigued by the concept behind transmedia elements because it breathes new life into the music industry and allows fans to connect with art projects in different ways.  I sincerely hope more artists follow the lead of Delonge and start innovating the way they release their future albums.  I believe it allows fans to feel more of a connection to the music and provides them with hope as well as inspiration.

Perhaps groups like Kiss (Graphic Novels) and Pink Floyd ("The Wall" Movie) had it right all along?             

Business Plan Advice

The development of a business plan can potentially be daunting in nature; however, it can be immensely rewarding in the end.  The overall concept begins to take form in this early stage of the process, and the author starts to understand if their idea is viable within the marketplace.  As I start on my business plan, it is important to analyze the wealth of advice there is from business professionals such as venture capitalists and angel investors.  Consequently, I have chosen to look at two very different business experts to achieve a broad range of information. Therefore, I decided to choose venture capitalist, Kevin O'Leary, and business development expert, Angelo Meneguzzi. 

Kevin O'Leary is best known for his role on the ABC hit show, "Shark Tank," but many people do not know about his impressive history in the world of business.  O'Leary started his first business, SoftKey Software Products, in his basement.  He eventually turned this small business concept into an empire and sold it to the Mattel Toy Company for an impressive $3.7 billion.  Today, O'Leary is a successful venture capitalist that looks for beneficial ways to invest his money.  I enjoy O'Leary's no "nonsense" approach on business and thoroughly enjoyed reading his tips for startup companies.  He states that all entrepreneurs need to get their "head out of the clouds" and make realistic financial goals for themselves.  Additionally, he states that the concept of a 9 to 5 for an entrepreneur is non-existent; therefore, you need to love what you do and have a good idea.  In fact, having a good idea is a top quality that O'Leary is looking for in a business plan.

Angelo Meneguzzi is a business professional in the technology sector with over 12 years of experience.  Today, Meneguzzi works in close collaboration with Internet start-ups and provides beneficial consulting to well-known brands/companies.  Meneguzzi illustrates why it is important to have a business plan in a simplistic yet effective way.      

   

“Benefits include: a heads-up to changes in the environments, better forecasting, opportunities to analyze situations before they become problematic.  Let me add this bit of advice: those who fail to plan, plan to fail - not original, but true just the same.” – Angelo Meneguzzi

The element of "forecasting" is so important in my opinion and allows a company to be prepared for the "unexpected."  In fact, I think this is what sets good companies apart from the great ones; the ability to forecast and see the "bigger picture."  I enjoy the business advice that I found from both experts, but it is Meneguzzi's take on why having a business plan is so important that truly resonates with me. 

It definitely places everything back into perspective.

References:

http://abc.go.com/shows/shark-tank/cast/kevin-o-leary

http://www.fastcompany.com/3032973/hit-the-ground-running/6-tips-to-startup-success-from-shark-tanks-kevin-oleary

http://www.bplans.com/ask-bplans/572/why-have-a-business-plan

http://bpexpertviews.blogspot.com/2012/08/andrea-cockerton-angelo-meneguzzi.html

Lights, Cameras, Accounting!

I love the look on people's faces when I discuss my immense passion for the world of accounting; their eyes become glazed over, or their faces shrivel up from their internal fear of numbers.  Luckily, I have learned over the past few months that this passion can open many doors to the entertainment industry.  In fact, film production accounting is the most recent opportunity that I am considering as I begin my journey into the professional world.  I came across an informative interview with David Melito, a current Hollywood production accountant, on Billfold.com.  This particular interview with Mr. Melito not only provides a great insight into this financial side of the industry, but it instills a sense of encouragement for my ambitious future. 

Success and Accounting 

Mr. Melito explains how important his role is during a production of a particular film.  Not only does he handle all of the money that is being paid out, but it is his duty to ensure the budget for the film is staying on track.  Consequently, the potential success of a particular production rides on Mr. Melito's analytical mindset and knowledge of accounting methods.  Let us think about this accounting role on a vast production like, "Star Wars.”  The sheer volume of money being paid out for a particular project like this is mind boggling to say the least. 

“Walk the Talk”

An additional resource that I found on this fascinating field is this blog post written by a former production accountant, John Gaskin.  In this beneficial piece, Mr. Gaskin explains that this area of the business is not overly competitive and has the benefit of not requiring any sort of CPA qualifications.  In fact, he discusses how this type of work can be very rewarding, and how accounting talents are welcomed due to the high amount of spending during any given production.

John Gaskin is also the author of the book, “Walk the Talk.”  This book discusses his personal experiences in the field of film production accounting and the steps one must take to enter this specific field.  You can find Mr. Gaskin’s book here.

Production Guild Insight

To offer a better understanding of this particular field, here is a video from the Production Guild that provides keen insight into the life of a production accountant.  In fact, it features one of the accountants for the new Star Wars movie, "The Force Awakens."

 Courtesy of "The Production Guild"

My Career

This is what excites me the most about this potential career within the industry.  Not only do I get to play to my strengths but I have the potential of working on amazing productions from around the world.  I look forward to seeing where I land in the next year or two!

Crowdfunding: The Royalty Way

Crowdfunding has become a significant resource for artists, musicians, and filmmakers alike.  Why take out a loan when you can have your fan base fund your projects for you?  Well, with the advent of companies such as Kickstarter, this strategic tactic is becoming a brand new trend within the entertainment industry.  Consequently, some companies are offering unusual incentives for these types of campaigns, and the North Carolina-based company Royalty Exchange is a perfect example of this realization.  This investment company has been providing accredited investors the ability to purchase the royalty rights to song catalogs that are placed on auction by artists and/or songwriters that want to earn quick revenue for upcoming projects.  Though the company is only four years old, they have sold over $2 million in royalties to eager investors that have been looking for investments that are not tied to the volatility of the financial market. 

So, are artists jumping on board with this type of crowdfunding source?  Actually, yes, and so are producers.  Let us look at an example of how one of these transactions work.  Click here to visit the Royalty Exchange homepage and scroll down to the bottom of the page to see examples of auctions that have been conducted via their company.

Let us take a closer look at Tommy Coster, who is a songwriter that has worked with big name artists such as 50 Cent, Dr. Dre, and Carlos Santana.  He is currently auctioning off his BMI songwriter's share for what appears to be his work conducted with 50 Cent.  Let us break this offer down:

For the past 12-months, Coster's share of royalties for this particular song catalog was $57,247.  The auction is set at a minimum sale price of $80,000 for a term of 2.25 years.  The expected rate of return on this investment is 30-33%, which is competitive in today's investment market.  With the previous year's performance of this specific song catalog approaching the $60,000 mark in royalties, this is quite an advantageous investment for any investor looking for something potentially "less" risky. 

Could this be the future of crowdfunding?  For big name artists, I would have to say no.  However, for producers and songwriters who are looking for some quick cash when business is slow?  Definitely!

For further information, check out this article from USA Today, and hear what co-founder Sean Peace has to say about the company's future. 

Live Events Review: Allen Stone & Timucua

There is nothing in life that is more enjoyable than sharing experiences with friends as well as strangers.  I have increasingly become aware of this realization over the past few years, and I have obtained a new outlook when attending live events.  I have attended two incredible events this past month, and their distinct differences are what make them so fantastic. 

On June 5th, I attended one of the best live performances I have ever witnessed.  Allen Stone, a soulful singer/songwriter from the Pacific Northwest performed at The Social, an intimate venue located in Downtown Orlando.  To begin, you must know that I am very biased when it comes to my all-time favorite concerts, but this performance was different and intriguing.  Allen Stone performed the whole set with passion as well as intensity, and I left the building feeling energized with a new outlook on life.  Additionally, I have never attended a concert where the whole crowd was singing, dancing, and smiling at the same time.  I honestly believe that everyone that night experienced something unique, and I am thankful that I got to be part of that.   

On June 11th, I attended the Jeff Rupert and Richard Drexler live CD recording at the Timucua White House in Orlando.  First, I must address how unique, warm, and welcoming this venue truly is.  When you arrive at Timucua, you get the feeling that you are attending a dinner party at a typical house, but this experience is so much more.  The Timucua venue is beautifully laid out with a stage, and three floors of comfortable seating.  Patrons that attend live events are encouraged to bring wine as well as food to share, which illustrates the welcoming nature of this community.  I decided to watch the performance from the third floor, which was equipped with comfortable couches.  The overall layout of the venue made this a unique experience, and the jazz music performed by Mr. Rupert and Mr. Drexler was second to none.  Consequently, I will attend a future event at Timucua due to its welcoming community and overall uniqueness. 

Upon analyzing these two events, I must say that I have little to no recommendations for the Allen Stone performance.  Some people may argue that the concert should have taken place at The Beachum next door, but part of this incredible experience was due to the intimate size of The Social. 

For Timucua, I would expand marketing to their target market throughout the Greater Orlando area.  The Timucua venue is a rare gem in this marketplace, but not many people are aware of its existence.  I would recommend placing event posters at local area museums, libraries, and coffee shops to increase awareness amongst the local demographic.  In fact, most of the income generated at Timucua is from its memberships and donations.  Therefore, raising awareness for the venue could be a positive endeavor in the end.  At this time, VistaPrint has full-page flyers (8.5" x 10.98") starting at $14.99 for a 25 count (Found Here).  It might be worth a test run to see if increased marketing helps bring in donations as well as new faces.  Additionally, there are releases on CDBaby that have been recorded at the Timucua venue in the past.  Therefore, it might be beneficial to have that type of information placed at the venue or even have a small merchandise table where patrons can purchase these particular items.  To conclude, I think it would be popular if Timucua held a catered, ticketed event, which included "big band" music and encouraged dancing the night away.  It is rare to see these types of events these days, and I think it would be popular.  Consequently, there would be some catering expense, but a lot of this cost would be absorbed by ticket sales:

Say the average dinner cost per guest is $25, so sell tickets to the event for $30 - $35.  Some additional catering pricing examples can be found here.

Though the aforementioned idea may never see the light of day, I do believe it would be a successful endeavor and a lot of fun.  Sometimes fresh ideas are great ideas!

Negotiating: The Power to Change the World

In analyzing videos on negotiations, it is interesting to see how some fundamental concepts are always being illustrated.  I think this is a great aspect to realize because it adds an element of continuity to the subject matter at hand.  Here are the following videos I watched on negotiations:

William Ury: The Walk from "No" to "Yes.”  Click here

Maria Ploumaki: The Art of Negotiation.  Click here

Real Men Real Style:  7 Ways to be a Better Negotiator. Click here

What I particularly love when listening to others speak about negotiating, is the common theme of human connectivity and how we present ourselves in these situations.  Many times, we want to react rather than act in certain types of situations, and it is this type of behavior that can be detrimental to the overall process.  The reason this type of behavior is damaging is because our reactions produce emotions and in turn make us blind to potential agreements.  In the video with Maria Ploumaki, she discusses how reeds are unusual plants in terms of how they bend in the wind but never break.  They are designed in such a way that they can mold themselves to the "unexpected," and it is this analogy that illustrates how we should carry ourselves throughout the negotiation process.  Additionally, these videos discuss how we should utilize perception in seeing any issue from the other side's point of view.  In the William Ury TED Talk, he explains how people tend to have this perception of the entire Middle East being very hostile.  He then goes on to discuss the "Abraham Trail Walk" he once experienced and how he met some of the most welcoming people in the world during this adventure.  It is critical that when negotiating, we remain kind to the people in the discussion but tough on the issue.  Think of what this world would be like if we all could understand the power of properly negotiating; it just might change the world. 

Streaming: Showing Growth, But Where Are the Profits?

They say change is ideal and required in order to progress forward, but could it become a hindrance to overall profitability?  In reality, progression should always be positive, but a recent financial report from Rhapsody, a well-known music based streaming company, has shed some light on the significant costs it takes to convert individuals into subscribers. This is an important trend to analyze for music industry professionals because streaming-based services has increased in popularity over the past decade and has been introduced as the next rung on the music distribution ladder.  This begs the question, if these companies keep losing money, how will they be able to survive in the coming years?

Click here to read the article.

When looking at the numbers, Rhapsody is looking strong with 2.5 million subscriptions reported in 2014.  Consequently, these numbers look great and speak to the popularity of on-demand streaming, but that growth is coming at a significant cost.  In order to obtain subscriptions, Rhapsody has reported that it lost $21.3 million in 2014.  These losses are stemming from the $8.53 cost to the company each time a subscription is acquired.  Before I proceed, it might seem like this post is out to get Rhapsody, however Spotify is illustrating similar losses, but on a much larger scale.  In 2014, Spotify reported $128 million in operating losses alone and there are no signs of this negative trend getting any better.

What does all this mean for the overall future of streaming?  That is hard to say, but the music industry professionals of today just cannot seem to get it right.  There is always a way to cut down on operating costs and these companies need to find the recipe to do just that.  Additionally, if I were running one of these companies, I would be very concerned over the new on-demand music services being launched by YouTube and Apple later this year, because they just might have the golden answer.