Recipe for musical success

By VIKKI BLAND

Record company manager Mark Ashbridge is no Tommy Mottola.

Unlike the long-time boss of Sony Music in the United States, Ashbridge has never earned a salary of $US10 million, divorced diva Mariah Carey, paid for Celine Dion's honeymoon, been called the devil by Michael Jackson, or signed Jennifer Lopez to a recording contract.

But he does know a thing or two about managing music. Ashbridge is managing director of Festival Mushroom Records New Zealand (FMR), an Australasian-owned recording company which last year scored one of the largest-ever licensing deals on behalf of a New Zealand band.

D4, a garage grunge band on the FMR label, signed with United States-based Hollywood Records - part of the music publishing arm of The Walt Disney Company - last November, for a figure likely to be in the millions.

The deal closely followed similar D4 licensing coups for FMR in Japan, the UK, Europe, Australia and New Zealand.

Hollywood Records has since pumped 100,000 D4 debut albums into the American music market and supported a string of highly visible public appearances there.

Michael Glading, chairman of the Recording Industry Association of New Zealand (RIANZ), says he believes the deal is one of the largest in New Zealand music history in terms of cash up-front.

"It's been the biggest deal FMR has ever had - and it's been quite a ride for four boys from Auckland's North Shore," says Ashbridge, who's recently back from the US.

"What the deal [with Hollywood Records] shows is that the New Zealand music industry can make records and transport them to the world [providing they have] the correct business infrastructure surrounding the right band with the right album," he says.

But how does a recording label determine the right band and the right album? "Gut feel," says the former DJ. "You need management expertise, of course, and a very careful marketing strategy."

Glading, who in addition to chairing RIANZ is also managing director of Sony Music in New Zealand, says the importance of business management in music is "much overlooked. It's a key factor to success which record companies and artist aren't always in control of".

He says, despite the somewhat scurrilous reputation of the music business, professionalism is growing.

He says there "isn't much money in New Zealand music for the corruption and greed which has victimised artists like Billy Joel" - United States singer/songwriter Joel has successfully sued managers twice for mismanagement of his music.

Glading says Sony New Zealand's international distribution network is a key to its success. "I wouldn't go as far as to say we're doing better than other companies - but our distribution network is mapped out, which can be a plus and a minus."

If you're wondering how a New Zealand artist signed to Sony Music could ever be considered a minus, Glading points to solo artist Bic Runga. "She's amazingly good. She's had support from Sony all over the world, but there are not millions of record sales - yet."

His inference is that New Zealand artists do just as well, sometimes even better, by signing with smaller or more focused recording companies with unique international contacts.

Ashbridge says that it's hard to turn a good band or artist into a profitable investment. "To make money, you need to go global. But you can't just pack a band on a plane, get them a gig and expect things to take off from there. The answer for us is to sign an artist or band long-term.

"We build a relationship over three to four records and approach their progress with a strategy based on precisely what they have to offer." He says one of the major challenges of music industry management is to understand the nature of musicians.

"You have to go for long-term love, not a short term fix. Musicians want support. For example, with D4, there were bigger US labels interested, but Hollywood Records were passionate about D4 and D4 had a really good feeling about Hollywood Records."

So, all you need is love? If only. Ashbridge says once the relationships are there, a number of strategic business requirements need checking off. "You need to be confident but accept there are successes and failures in this business. For New Zealand music to succeed internationally it has to offer something unique.

"In this business, there are no sure-fire formulas to follow."

But risk management is important. FMR gathers international feedback through demonstration tapes before artists overseas, and sets budgets relative to what it thinks they can achieve.

FMR recently spent $25,000 marketing Kiwi pop artist Carly Binding internationally. "She's in the US. She's meeting contacts. But this is just phase one. Further phases cost a lot more. It took six months of work to get D4 through [the international barrier.] We pay for it all," says Ashbridge.

He says recording and management require substantial capital, and loss expectations must be built into business plans.

Glading says this has become more important as the music industry continues its slump. Sony New Zealand is viable but not growing. The whole music industry is under attack.

Sony Music US lost $US132 million in the first six months of its current fiscal year and total industry album sales have dipped 11 per cent from 2001. One reason for this is the way the music business has been stung by the internet.

"Young people have grown up believing music should be all but free thanks to the internet and music sharing software like the now-banned Napster," says Glading. "You know in your bones that distributing music via the internet makes sense, while at the same time it's turned out to be the greatest way to pirate music known to man."

* New Zealand Music Month starts tomorrow and is kicked off tonight in Auckland by the New Zealand Music Awards.