Experts on the Value of Business Plans

Welcome back to this month’s entry of SHOWBIZ OVERDO™. The focus for today’s discussion will be expert views on the value of business plans. Two very successful experts in the industry are Andrea Cockerton and PhD Carl Schramm. We will focus on what are some of the critical and key components that investors are looking for when reviewing a business plan. Andrea Cockerton is from the United Kingdom and is an independent pitch expert and advisor. Throughout her career she has worked with three hundred and fifty entrepreneurs in the world of business. Her expertise revolves around “venture funding and business critical ideas.”

Andrea Cockerston’s success throughout her career has allow her to be able to hold entrepreneurial workshops, network events for businesses in the United Kingdom and has also helped large companies develop key talks in order to successfully impact the business world. One of her suggestion that I’ve considered for my own plan is when Andrea mentions that it is important to ask for money from investors and bankers before there is no cash left. Andrea states, “Going to investors at too late a stage is a risky strategy. Better is to look at the long-term objectives.” Carl Schramm is a PhD economist and also a former President and CEO of the Ewing Marion Kauffman Foundation in 2012, which is a private philanthropic foundation.

The Economist magazine named Schramm the "evangelist of entrepreneurship". The most critical and key component that Carl Schramm is looking for in a business plan is the characteristics of the entrepreneur. Carl Schramm believes that entrepreneurs must be outsiders, and capable of asking the hard questions. The entrepreneur usually has worked in multiple places in the world, and been involved with a start up company. Also the entrepreneur has worked in multiple industries and has had a job that he or she did not like. The most valuable point that I’ve gained personally for my own business plan is that Carl Schramm does not believe in sticking to business plans.  It is important to be able to adapt to changes and respond intelligently. He believes that business plans get out of date quickly, and things never go as planned. Especially working in the entertainment business.

Netflix Originals Taking a Stand!

Welcome to November’s entry into the Showbiz Overdo. Each month we select a new topic and have a discussion regarding the entertainment industry. This month we have a list of original programs distributed by Netflix. Show’s such as Hemlock Grove, House of Cards, Borgia, and Orange is the New Black showcase Netflix as a production company. Netflix has become a household brand in the United States and their now reaching for a global market. Just recently Netflix has expanded their market to most European countries including here in Germany. Although the film selection that Germany has compared to the American archive is vastly different. It’s safe to say that Netflix is becoming a driven force for online media consumption.

One area that separates Netflix from their competitors is their ever-expanding archive of original television series and films. Just this year Netflix has released Penny Dreadful, From Dusk Till Dawn, The Killing, and Peaky Blinders as the latest Netflix Original series. The brand itself is starting to build a reputation. Some of the most successful products that Netflix has to offer come from their in house productions. Original content adds to the exclusivity, uniqueness, and customer satisfaction. Customers are able to create brand loyalty with Netflix because they are aware that they will only see certain shows if they are willing to have subscription to Netflix.

Netflix also understands that they can target different genre’s to gain a following from a wider variety of audiences. So each original series targets a different genre. If you are currently a fan of Netflix Originals then rest assure knowing that Netflix plans to release several new series and films over the course of the next few years. Whatever your preference in genre, Netflix has comedy, animation, drama, thrillers, and documentaries, talk shows, crime drama and superhero. Yes this is true, Netflix has even teamed up with the Marvel Universe and will be developing a series based off of the comic book character Daredevil that is scheduled to be release in 2015. Netflix Originals are gradually becoming the best product Netflix has to offer.

Comic Book Industry Trends - Digital Comics

Today we will be focusing on how digital comics have become a successful trend within the comic industry. Digital comics have been around for a few years, but recently the market has proven to be profitable for comic book developers. The great news is that digital comics are not destroying the market for printed comics. Instead it is allowing developers to distribute their material more cost efficiently. Many new developers have the option of entering the industry online, and then expanding into print once they have build up enough recognition.

One of the most amazing benefits of creating a digital archive is the potential to offer older catalogues. When a comic book company such as Marvel offers digital comic books online, they also have the ability to offer older material that was sold in the past. With the different advancement in technology, readers also have the ability to access their digital material on multiple devices. Outside of Dark Horse virtually every single comic book publisher has signed on to the comiXology platform for distribution. Since then, the comiXology application was able to become the third highest grossing app on the iTunes store in 2013.

Digital comic book industry is allowing ambitious independent creators to create new business models. Companies such as Monkeybrain Comics had a great level of success publishing their comics as a digital only imprint. Monkeybrain was eventually able to secure a deal with the traditional publishers for the printed versions as well. Digital comics are also more flexible when it comes to creation. Printed comics always needed to be 20 pages. Now that the comics can be developed digitally, the developers can use as many pages that they feel necessary to build a storyline. I think this is great for the comic book industry, and I am looking forward to seeing what new trends develop. Many publishers have stated that the digital comic’s are basically untapped market. Industry observer Rob Salkowitz stated “We are in the midst of the “dawn of a golden age” for digital comics.” I am feeling inspired.

References:

Digital Comics: Adding Readers and Flexibility (PublishersWeekly.com) http://www.publishersweekly.com/pw/by-topic/industry-news/comics/article/58631-digital-comics-adding-readers-and-flexibilty.html

Legal Issues in the Entertainment Business

Today’s journal entry will be about three different types of current legal liabilities that are associated within the entertainment industry. The first controversy that I will be discussing is about Hip Hop Icon Jay-Z and his battle with sound engineer Chauncey Mahan over the rights how his music. Sound engineer Chauncey Mahan is suing Jay-Z to be a joint author of 45 of Jay-Z songs. Jay-Z has hired Andrew Bart at Jenner & Block who has an outstanding reputation as an attorney. Jay-Z has filed a motion to dismiss Chauncey Mahan’s lawsuit arguing that he should have filed in a timely fashion. Most of these songs were recording over 14 years ago during Jay-Z’s early part of his career. The defendants argue that Chauncey has plenty of notice through copyright registration certificates, album liners notes, and more that he was not the co-author. They say if he had a problem with that he should have said something about it back then. I agree, I think he should have filed sooner. I would like everyone to be paid what he or she deserves. However if he felt that he was the co-author and he was not properly being attributed. It should not have taking him 14 years to make up his mind and file against Jay-Z. It seems a little be out of spite if you ask me.

Second discussion is about Dr. Noam Lazebnik and Apple’s lawsuit over the final season of Breaking Bad. Apple advertised to their customers that they would be selling the final season of Breaking Bad for $21.99 for high definition and 13.99 for standard definition. The season pass was supposed to include the entire season five of Breaking Bad. However, when AMC announced that they would be splitting the final season up between the fall 2012 and the spring 2013. Apple had to explain to their consumers why they had to purchase two seasons passes for the fifth season. Apple apologized and began to refund their customers who purchased the second season pass. But Apple disappointed many other customers like Lazebnik who purchased the first eight episodes and then was told that they would also have to purchase the second half of the season when it was release the following year. Apple argues that Dr. Noam Lazebnik didn’t actually read the statement about the season pass because his son-in-law purchased the season pass with his credit card. Apple also contended that it never made any explicit promises that Season Five purchasers would be all 16 episodes. They have even passed the buck pointing fingers at AMC. Personally, I feel that Apple should be responsible for their part. Apple advertised a season pass, so their customers should have been able to get the season pass. Breaking Bad is not the only television series that has spread their episodes across the fall and spring seasons. Apple should have been aware once they realized they only had eight episodes that the season was incomplete. They advertised a season pass, so the must deliver what they promised.

The last controversy is about Disney’sopposition to Deadmau5 trademark. Deadmau5 is an EDM musician and he is currently registering his signature logo as a trademark. Disney has recently filed formal papers opposing the attempted registration. Disney argues that the caricature of a mouse with black ears, black face, white eyes, and white mouth is nearly identical in appearance to the Disney’s mouse ears marks. Deadmau5 argues that consumers will not confuse a musician logo with a cartoon character. However the Deadmau5 logo does look similar to Disney’s iconic Mickey Mouse logo. I believe that it will be interesting to see whether Disney is able to oppose the registration. The Disney brand is associated within several different industries including music, film, and television. Deadmau5 might have to change the color or shape of the logo to successfully register the trademark.

Intellectual property can create serious legal issues for any type of company or brand in the entertainment business. Whether the controversy is about musical rights, false advertisement, or trademark registration. A business owner must be weary when dealing with different legal liabilities. Depending on the issue, a legal battle can cost a company millions of dollars in court fees and settlements. It is extremely important for entrepreneurs to be aware of the many potential problems that might arise when creating future business plans. Any miscalculations can become disastrous.

Watching a interview with Former Label Head Michael Mauldin

Today I watched an interview with the former head of Columbia Records, Michael Mauldin. He managed several successful artists during the golden age of hip-hop. Many of the artists that he worked with are still making music today. In this interview Michael Mauldin spoke about his many experiences and discoveries. He managed several highly successful artist including, Destiny Child, The Fugees, Alexia Keys, Bow Wow, Jermain Durpri, and many others. I felt that the interview was very insightful. It is important for me to learn from people who have more experience.

As an artist manager is it vital to find an artist that has star power. Throughout Michael Mauldin’s career he has worked with many of today’s elite artist in the music industry creating tours including TI, T-pain, Jay Z, P-Diddy, Wycleff Jean, The Brat, and Maxwell to name a few. Today, live performance is stronger than ever. So it is vital for an artist to be able to deliver a performance. He spoke of how critical it is to plan touring, marketing, and promotion in advance when handling an artist career. Especially when dealing with an artist’s career today because of the Internet and album leaks. He stated that the launch is the most critical moment for an artist.

The record business is dwindling down, and it is important to make sure that money is being spent the right way. It takes a lot of money, and today record labels don’t have the money to launch an artist successfully. This is why it is important for managers to start building relationships with other companies looking to market their brands to the hip-hop community. The hip-hop industry has become more of a culture and lifestyle. So it is important to understand everything that is going on in business. The more that you know the more opportunities will become available. In his final remarks he spoke of how it is important to handle business, but we must remember music is about the art.

Negotiation Tips for the Entertainment Business

There are many aspects must be considered when dealing with negotiation in the entertainment business. Publishing and Intellectual Property are two of the most important areas to understand. When dealing with publishing for music, movies, books, and other forms of intellectual property, seeking legal advice is crucial. Many decisions are involved with licensing, and contracts. That is why independent artist, filmmakers, and musicians must learn how to become the businessman to maximize revenue. Even though most artists prefer focusing on their creativity, artist endeavors are extremely risky, especially at the negotiation table. While dealing with negotiations, we have to remember to be aggressive, persistent, focused, committed, and creative without coming across as annoying.

Four of the key steps in planning model for negotiation model begins with having a strategy. Creating a strategy involves research. We must understand the situation in which we are involved. The more that we understand the situation, the more successful our strategy plan will be. Second is style, we have to be able to create a style that does not offend the other party, and still maintains a strong presence at the negotiation table. Next, we need to have a list of affective questions. Once the other party member realizes that you have questions that pertain to the information discussed, it gives them a better impression of your knowledge and inquisitiveness. The fourth strategy to understand is when to create a block. A block give you more time for questioning, and later scheduled sessions. If you are working with a legal representative, they will create strategies for blocks and share the information with you. You must also have plan incase the other party member has a block as well.

One must keep in mind, that there are no defined steps to take when entering the entertainment business. This is why it is extremely important to fully understand the deals, legalities and contracts. If a filmmaker does not understand the deal with the distributor, then they could ultimately watch their film flourish and not see any profit. Most distributors are smart and perceptive and understand the legal side of the business more than a filmmaker does. It is vital for a new filmmaker or writer to research the background of the distributor before entering a negotiation. It is also important to search the contract for fees and out clauses that are heavily in the favor of the distributor. Pay attention to the maximums for advertisement, and the length of the contract. Try to make your contract for two years with automatic extensions as long as they make a certain return on investment. Do not fall for the normality.

Preparing an opening statement in a negotiation is crucial. Having an opening statement allows you to persuade the other party member to see the situation from your perspective. The elements of a persuasive negotiation argument are being detailed, multidimensional, balanced, focused, and appropriately emotional. Once you possess these elements, you are able to exhibit passion, truthfulness in your statements. In addition, the other members recognized how prepared you are on the law, and are better able to respect your perspective. As long as you remain intelligent with your negotiation, you should maintain a comfortable position. Remember to separate the problem from the people by using objective criteria’s, concentrate on maintaining mutual benefits, and always abide by the BATNA. You can find these examples explained within the following web links I have provided.

Entertainment Industry Business Potential

Greetings family and friends, welcome back to the Showbiz Overdo. Today I just watched the latest video with Lisa Chamblee about the Entertainment Industry Business Potential. Lisa Chamblee has performed in various fields within the music industry. She entered the industry as a Recording Engineer and has since worked as a music producer, studio designer, and many other positions throughout her 11-year professional career.

One point that I felt Lisa hit the nail on the head was her ability to create a comfortable environment. I have worked with several independent artist throughout my career and the one thing that I noticed was congruent was the fact that artist crave comfortable environments for creativity. Personally I agree, I am a writer who requires a quiet setting within a relaxed atmosphere as well. Lisa has identified the very essence of what makes most artists satisfied. It is clear that she understand the bigger picture. She also goes on to explain some useful tips for industry professionals to build great relationships.

One of the important factors that she pointed out was created a good online presence. Word of mouth the most effective form of marketing. However, a good online profile can open many doors as well. The key is having a big picture perception. We as industry professionals must know how to effectively communicate with our clients and customers. Lisa Chamblee stated that we must be able to manage our analog version of self so we are also able of handling the consequences of our digital persona.  

When you are starting out in the industry you will often do work for free. The one problem that you will continue to have is that everyone who hires you will expect you do work for free. This is why your references, referrals, and relationships are important. The idea is to spread word of mouth about how good of a professional you are. At the same time you must let each new client know that you have a price, and each project is prices differently. It is severely important to know your limits and range of capabilities.

Nobody wants to advertise certain qualities and be unable to perform. The more people that you work with the greater your experience level, and level of exposure becomes. After a certain amount of experience you are able to figure out how to service your clients, and you will be able to build trust off of your referrals. The more people that you work with the better, as you continue to expand your network people will spread your brand.