question What's the Relationship between Zimdaansaal Artists and Zim Celebs TV?

[Bla Jedza]

Looking at things from a music business standpoint what's the usual arrangement between Zimdancehall artists who work with Zim Celebs TV?

 

[Queen]

How do record labels deal with dividends?

 

[Black Panther]

How do record labels deal with dividends?

The board of directors and shareholders preferences is paramount to the decisions made by the management of a record label when it comes to how the profits of the record company are taken into account.

Sometimes the shareholders will favor the pro-growth strategy whereby the record label will not pay cash dividends but instead will carry on with the confidence that the record company is better off reinvesting its profits into the business of music.

Alternatively, the shareholders of the record label can be tendentious towards the idea of profit-sharing. This means the shareholders will be inclined towards distributing the profits that the record label makes to its shareholders based on the ownership structure.

At the end of the day, it's up to the owners of the record label to decide on whether the record company should reinvesting its profits into the music business or whether the record company should systematically pay a cash dividend to its shareholders.

Pro-Growth Dividend Policy For A Record Label​

Pro-growth dividend policy for a record label means the record company will be interested in reinvesting its returned earnings towards the growth of the record company in relation to the business of music.

The advantages of doing so are that the record label will have even more sufficient capital to invest into its artists and explore into new markets if there are any e.g. signing new and upcoming artists who aren't affiliated to any record label.

When it's all said and done the main advantage of pro-growth dividend policy for a record label is that the shareholders will not have the privilege to receive cash dividends but instead, they might be delighted to witness the growth of their record company.

Profit-Sharing Dividend Policy for a Record Label​

If the shareholders of a record label agree towards the initiative of profit-sharing of all revenue generated by the record label this means that the record company will have to pay out cash dividends to its shareholders.

The advantage of this in the interest of shareholders is that they will have reasonable capital to diversify their portfolios outside the scope of the music industry.

The opportunity cost of paying cash dividends is that the record label could have used that money to expand the operations of the record company in the business of music.

N.B. When everything is all said and done in the world of investing, best believe receiving dividends can be like collecting interest on money in a bank account. That's all I can say for now.

 

[Bla Jedza]

Some Zimdancehall artists get busy touring so how would they balance out work and starting their own record labels in Zimbabwe?

 

[Black Panther]

Some Zimdancehall artists get busy touring so how would they balance out work and starting their own record labels in Zimbabwe?

If you are a very busy Zimdancehall artiste that get booked a lot and does music shows frequently but has the ambition to start a record label.

You have to understand that it will be in your best interest to make time for both your creative process as an artist and the management of your record label.

In most cases as a Zimdancehall artiste, you will not be there for the day-to-day running of the record label.

Hence, it makes sense for you to hire a professional business manager to act in your interests as a CEO for your record label.

The most important thing is also to make sure that the person you hire to be a CEO for your record label isn't your manager too.

You don't want an individual who does multiple jobs, but instead, you want an experienced business person who has knowledge about the music industry and is prepared to focus on the employee's obligation of running your record label efficiently.

The Role of the Business Manager or CEO For Your Record Label​

The main role for a business manager or CEO for your record label is mainly the development and planning of your record company's long term strategy with the purpose of creating shareholder value in the same process.

The business manager or CEO of your record label will also act as a liaison between you as the board member and the grievances that other employees have, including the artists signed to your record label.

Finally, another role that the CEO of your record company will have is to hire necessary members of staff and to make sure these members of staff are working towards your interests as the record label owner.

In a nutshell, the CEO of your record label you can think of them as your right-hand person because when you are a very busy Zimdancehall artiste they are the ones who are holding it down for you whilst you are touring and making appearances all over the world.

They play a crucial role in the success of your record label.

 

[Queen]

How do Zimdancehall record labels recoup music business costs?

 

[Bla Jedza]

How do Zimdancehall record labels recoup music business costs?

What does the process of "recouping cost" even mean in the first place?

 

[Black Panther]

What does the process of "recouping cost" even mean in the first place?

In the music business, the term "recoup" is usually used to say a record label needs to "recover" the costs of production and promotion of an album or song before making any future payments to the artist or the band.

For example, every record label (or record company) will have a financial plan (i.e. a financial budget) for each artist on its roster.

And a record label will in most cases fund an artist's project (or a single) based on what they think is sufficient during the status quo.

If a record label thinks the artist has great potential to capture the market they are more likely to increase the budget for that particular artist only.

However, to be profitable a record label has to meet its financial obligations and increase its revenue in the same process.

N.B. The financial obligation is to provide monetary support to the artist. From there the revenue stream comes from all the sources of income after the same project has been launched. And these include digital downloads, music streaming services, videos and so forth.

For instance, if a record label spends $100 000 on a project. Chances are they will not pay the artist any royalties until the same project has grossed not less than $100 000. If the project meets that threshold then the artist will start to receive royalty payments.

And that whole process of waiting for a project (or a single) to be successful is what people refer to by saying the record label has to recoup or recover all its costs in the business of music.