While some people are now becoming familiar with the name “MeMpHiTz,” courtesy of his hosting duties on BET’s music video program, The Deal, the Memphis, TN native has been making significant contributions to the music industry behind the scenes for a few years now. When Mickey “MeMpHiTz” Wright isn’t interviewing some of hip-hop and urban music’s most significant artists in front of the camera, chances are that he’s attending to his music duties as the CEO of his fledgling record label Hitz Committee Entertainment, home of artists such as Huey (”Pop, Lock and Drop It”), Trai’D, Derty, and K. Michelle.

A&R Department got the opportunity to converse with the executive that signed chart-topping singer/songwriter T-Pain to Jive Records, and who has helped produce hits for artists such as Youngbloodz (“Damn”), J-Kwon (“Tipsy”), and UGK (“International Player’s Anthem” featuring Outkast). For our interview, MeMpHiTz took time out of his busy schedule to discuss with us his approach in signing talent as an A&R, the old school versus new school mentality, the digital era, and the future relationship between labels and artists. 

Were you nervous bringing an artist like T-Pain to Jive Records since he didn’t have a conventional sound and image?

No. I was excited ‘cause I’m not a conventional A&R. I don’t … I know what A&Rs in the past consist of and what they’re looking for, and what it’s supposed to look like, and what it’s supposed to sound like. That’s the exact opposite of what I usually look for in an artist.

Being the host of BET’s show The Deal, which highlights a lot of up-and-coming and emerging artists, what is your assessment of the next generation of talent?

That they’re more in tune with the digital world than the old-school audience is or the old-school era is. It’s almost like the older school era they’re set in their ways; it’s like “This is how it was. This is how it was when we flourished. And this is how it should always be, and anything different than this, I am not gonna have anything to do with it.” Whereas, the newer generation coming up is sorta like, it’s like generation now—it’s like “We want it right now. What if we don’t wanna hear your album; we just want that song.” So it’s kinda like you can be stuck in your ways of the old-school era of how it used to be and you can try to run that on this younger era if you want to, but you know, it’s your decision because you know … yeah it’s the internet’s fault that it’s like it is now, but hey, it’s here. So, I just think this younger crowd is more in tune with this digital era and they’re gonna continue to feed people, feed generation now, and generation now just wants what it wants right now; not saying that they don’t want albums, but you can just look at album sales right now man and tell. Unless you’re a superstar, you’re not really selling any albums. You might sell some albums later on in your career if you keep on, just continue to hit people with things that they want, they start to get a love for you, but that’s artist development without the label doing it. The new era is their own artist development; they’re doing their own artist development and then these labels are jumping on later. It’s kinda like, they’re just more in tune with the internet, more in tune with the digital—how digital works—all the different technologies, when the older era is kinda just like “I ain’t with it.”

How come artists that acquire success selling ringtone songs have a difficult time finding success with their album sales?

Because the audience doesn’t know them yet, or the audience doesn’t … this is what it is: the audience doesn’t know them yet; the label has probably not put enough time in this artist to do the artist development—what I was talking about—to make people … if people buying your album that means they have a certain liking towards you, and not just your song. So if you have any kind of personality or anything that people need to know about, or any type of artist development, it’s really the labels job or your teams job to figure out what’s interesting about you that would make people be more into you than they would be, or as into you as they are into your songs.

If established acts are currently having a difficult time selling records, why don’t labels go in a completely different direction and take chances on signing new artists since they’re not getting sales results anyway? 

I mean I think they are taking chances, it’s just like the deals are changing. It’s kinda hard for a lot of these labels to sever ties with these artists that came from the older era and that were selling records at one-point. It’s hard to just totally shut them away because you know they’re real artists, and the artist development was put in them to grow the fan base that they have at this moment or whatever they grew when they were doing what they were doing. But now as these different younger artists are coming out with these different songs all over the map and having the clubs rockin’, I mean, you just can’t fight the music. If somebody in Timbuktu has a song, and he made a song in his basement and it’s just working, I mean, you can’t really do anything about that, it’s kinda like, it is what it is.

Soulja Boy Tell’em and Asher Roth were discovered on the internet by Mr. Collipark and Scooter Braun, respectively. Is the internet the new medium for A&Rs and music executives to discover talent?

It’s a way. It’s definitely a way. You still got some places that, you know, people just not on the internet. That don’t mean they not making hot music; it just might not be the way you find them. But like I said, this younger era knows about this internet, and they know how to get seen and heard now, and that’s what they’re doing. So yeah, if an A&R is up on his game and he’s trying to go where the game is going, instead of being where the game is at, yeah, he probably wanna check out the internet ‘cause it’s probably up there, somewhere.

It’s almost like the older school era they’re set in their ways; it’s like ‘This is how it was. This is how it was when we flourished. And this is how it should always be, and anything different than this, I am not gonna have anything to do with it.’ Whereas, the newer generation coming up is sorta like, it’s like generation now—it’s like ‘We want it right now. What if we don’t wanna hear your album; we just want that song.’ So it’s kinda like you can be stuck in your ways of the old-school era of how it used to be and you can try to run that on this younger era if you want to, but you know, it’s your decision because you know … yeah it’s the internet’s fault that it’s like it is now, but hey, it’s here.

Who are some of the newer artists that impress you?

Ummm. The newer artists that are out or the newer artists that are coming?

Both.

Well, I’m not gonna give you the ones that’s coming ‘cause that means somebody might steal ‘em [laughs]. Well, you know, of course Soldier Boy. Of course, like I said, I gotta go with my man T-Pain, the newer era. Flo Rida is out there doing his thing. Plies. You know they got their own audience and they’re killing the game and people are trying to figure them out, but some people just get it and some people just don’t. So those are a couple of artists. Rick Ross. All those people they winning because they get it. They know what time we’re in. You can’t just be in the studio making music for yourself, and then come up and think people just gonna jump on it because you got an album coming out. It don’t work like that. You gotta know where we are, you gotta know where you at, and I feel like those are some of the artists that knows what’s going on right now.

Rap music has always been regional with the East Coast, West Coast, South, and Mid-Western states having a period of dominance. What type of sound do you think is next?

I think it’s just gonna be a blend of what’s already been here because that’s the only thing it can be. I mean, whatever’s been here it always goes and re-morphs into something else, so it’s kinda like sound shifting. You might hear Crunk mixed with lyricism. You might hear some East Coast tracks with down South lyrics, I don’t know. It’s just always changing. I don’t really know what’s next until I hear it.

As a music executive, what factors do you look for when signing new talent?

The artist’s drive level. Does the music sound good. What kind of work ethic do they have. Like I said, it’s not as much about look with me but I gotta see that I can be able to do something.

What are some of the challenges that your label Hitz Committee Entertainment faces in the current climate of the music business?

Trying to come up with the music that’s gonna compete. That’s really … I think it comes all down to the music, and then second to the music is how are you gonna sell it, or how are you gonna make it appealing to people to wanna buy. So, that’s all I really need ‘cause I’m kinda confident in my talent searches or when I’m looking for something, or when something runs into me or I when run into something; I’m kinda comfortable with that feeling that goes off in me when I think I’m connecting to something real—so that’s cool. Now making sure the music is competitive—because it’s still … it’s music, but in this music business this is a competition—so you’re making sure your music is competitive, making sure your music is good, making sure your music is appealing to a crowd that wants to buy it, and really that’s it. And making sure that my artists are developing in a way where people are gonna love them as much as they love their music.

It seems like new artists in the rap category have a more difficult time breaking into the mainstream as opposed to other genres. Why is there a difference in transition? 

I think because people feel like all rappers are talking about the same thing. And then when you do have … when it’s so saturated and then you do have a new rap artist that’s coming with something new, it’s kinda like, “ah, I heard that before,” or either they [fans] don’t wanna get into their story as much because they either look like or sound like something that people have already heard. Now if you got something totally … every couple of years you know, something comes out of the blue and it’s like, this is different from anything we’ve seen in a long time and people buy into it, you don’t know why, people just … they were hungry for something, they don’t know. Right now I feel like people are being … the audience is being pacified but that always happens. The audience is pacified with hot songs for a little while and then all of a sudden every couple of years a hot … a real, genuine hot artist comes along and people buy into that art, and you know, it just is what it is. It always happens.

What types of changes do you see occurring in the music business in five-years?

Way more 360 deals. I mean, way more deals with newer, younger artists that’s coming by way of … you know ‘cause now labels are kinda being like … it’s almost like labels are going at these artists like it’s a singles deal until proven different. So it’s gonna be a lot of … they gonna be attached to everything because you just don’t know. You don’t know when it’s a … these days they’re not just gonna sign an Eminem because—no they might because still labels is doin’ that, but I’m talking about the ones that’s kinda connecting more to the digital era. It’s like, you’re not gonna just go out and sign an Eminem as fast as Jimmy Iovine would’ve 5-6 years ago. It’s just not gonna happen. It’s kinda like, do you have something that can work right now? And if you’re … singles deals with options, like if you can prove that you can do it again, do you really have material? After listening to the artist’s whole package, is this an artist that sounds like it’s something that’s gonna come and go, or this something real? They’re more like testing the water. It’s almost like they’re sticking their foot in the water and seeing if it’s hot or cold, and then it’s kinda like, before they get into putting both feet in. It’s like testing signs.

What do you think the music industry needs more of and less of?

Way more artist development. It needs way less—and artist development as in videos, good shows, good showmanship. Just like, the label actually putting time into the artist enough to develop them where people like them—that’s what we need way more of that. Way less of … stubbornness. Stubbornness toward the digital era.

In 2003, Curtis “50 Cent” Jackson emerged on the national music scene becoming an instant success after the release of his seminal debut album, Get Rich or Die Tryin’, which propelled the emcee to superstar status. While Dr. Dre and Eminem received face time for their involvement in the development of 50 Cent’s career, Queens, NY native, Michael “Sha Money XL” Clervoix, was the architect behind-the-scenes hatching an industry takeover, as he served as co-executive producer of the rapper’s first two LPs, in addition to his former duties as the president of G-Unit Records.

Sha Money XL’s management firm, Money Management Group, has listed various artists and producers as clients, including but not limited to, Llyod Banks, Tony Yayo, Young Buck, Hi-Tek, and Jake One. His penchant for production and the need to provide aspiring producers with an outlet to be discovered led to the formation of the One Stop Shop Producers Conference, where beatmakers convene for a few days of networking, exposure, and professional advice. Fortunately for A&R Department, we got the opportunity to speak with Sha Money XL to talk about 50 Cent’s forthcoming album, the changes in mixtape marketing, his up-coming 3rd annual One Stop Shop Producers Conference (May 9th – May 10th in Phoenix, AZ), and the overall business of music production as a whole. 

As an executive producer of 50 Cent’s upcoming album, what can be expected from Before I Self-Destruct?

I mean, honestly man, this s——t is gonna be up there with Get Rich or Die Tryin’. He’s taking it back and the concepts … of the songs, the pouring his heart out, giving you his real blood on the table. And I mean honestly, the beats are amazing, the concepts are incredible. It’s just gonna be a f——in’ incredible album. That’s what I really can say. I can’t [get] into too much detail about giving it up ‘cause you know people are still studying him—but I’m talking about hooks, concepts, rhymes—I mean his blood is in the pen. He’s writing it with blood, you know what I mean, so he’s really gonna give you all of him.

At first, 50 Cent and G-Unit used the physical mixtape as an outlet to market themselves, now the same can be said about their use of the internet. What’s the difference of marketing strategy between the two mediums—of the physical product versus the internet?

Honestly, I think the mixtapes are still important for the hoods, for people who don’t have internet, you know what I mean; people that just … that’s still poppin’ in damn near, you know, music in their headphones, radios, or whatever… You’re dealing with stronger impressions in one shot by having a mixtape available up there too, so I wouldn’t eliminate the mixtape at all, I’ll just keep it on both formats where you’re virally there and in the streets with DJ Whoo Kid and the Green Lanterns, you know. But it’s definitely a different thing, but um, honestly, 50 conquered … we was the number one dudes to conquer it and use the mixtape to our advantage, and now 50’s doing the same thing virally with thisis50 being the number one website out right now.

On the topic of mixtapes, how did the Feds investigation of DJ Drama impact the mixtape business?

It got everybody scared. Whoo Kid, everybody fell back. They took damn near three to six months off, and just really kinda just didn’t go as hard as they normally would. So I mean, it made everybody scared, and a lot of guys were just doing things recklessly in business and it made them be more cautious on how they conducted their business.

What’s your opinion about producers being as visible as the artists that they produce nowadays. Is that a conflict of interest?

It’s more about raising the awareness of the art, you know what I mean. You got people that’s now not appreciating our art and ready to just take it for free, and download it for free, and find places to get it for free. The more people, the more superstars, the more people are … more visual, and more known, and more … become a likeness, the better it is for hip-hop. It’s all about generating money. If someone’s going to come to the club just because a super-producer like Don Cannon is there, then so be it. Let it be that.

But what about the music itself, like the actual art of the music?

I mean, producers are—before you hear the rap you hear the beat. So it has to stand for something; when you do the breakdown sheet it’s 50/50. So the artist is what draws the hit vocally, but the music is what makes the people move.

Being a producer yourself, what separates a successful producer from the rest?

A successful producer is the one that’s consistent with hits—very consistent.

So you think it’s just a consistency thing?

I mean, it’s right back to what your first question was about it—the likeness. Swiss Beatz was real consistent with making dope beats but at the same time here was a dude that was cool to be around, cool to hang out with, cool to even have him doing background ad-libs on your song, cool to just have him in your video, so with that there’s a consistency in music, but then also the character of the producer.

I’m quite sure there are producers that you’ve come across that are talented but might not necessarily be successful. What correlates a person from going from being talented to being successful?

Their reach. Some people are talented but too ignorant, too good, or too into themselves to want to send their beats via e-mail; don’t want to stand in front of places to politic … their ego gets in the way, period; and you know, they’re too talented—they get endorsed in other things that distract them from the focus. I know a lot of talented dudes that it’s either the alcohol, it’s either the laziness, it’s either the fact that they feel everybody should follow them because they’re that dope. And they just—it’s the ego that’s pretty much your biggest enemy.

Presently, a record can be made without the artist or producer ever being in the room together. How has e-mailing tracks back and forth affected the recording process and overall sound of albums?

Well, it depends. With us, we initially two-track the track, so of course the MP3 is not a higher-quality of … so with that said, it’s just the foundation. We go get the vocals from the guy right after, and actually make the real record once it’s said that we’re gonna make this a record on the album. Some producers don’t really matter in the studio because they have no input to add—50 don’t need no input, you know, unless it’s Dr. Dre with some vocal stuff, but normally some of these guys are just … some guys do need it, some guys are real good with it, you know, like working in the studio with Pharrell or somebody like that would be useful ‘cause he can hear things and things like that, but these days the artists got their craft down pat, the producer got their craft, it’s just a mesh once they hear it, and if it’s that mesh they go right to it. Now mixing is another stage. I think a producer should be present for a mix because how they make the drums and all the sounds identify within the mix, it’s important to have him there when you put it up on the big board.

There’s a conference for every industry—there’s a conference for porno; there’s a conference for technology; there’s a conference for hair; there’s a conference for vitamins; there’s a conference for every industry. We never had one, so I’m creating that so these guys can know there’s one place you can go once a year and be able to talk to everyone, meet everyone, know how to network, and then further your career in this conference.

Having success within the G-Unit camp, what made you venture out to create the One Stop Shop Producer’s Conference?

What made me do it is basically the fact that I know I can’t manage everybody out there. I’m more of a giver than a receiver so … I like to help people, you know what I’m sayin’. With that said, it’s like, I just feel the need to help these guys get in this industry and get their weight pulled and politic because it’s very important for them.

What are the benefits of attending a conference like One Stop Shop Producer’s Conference?

One of the benefits is you got people from B and C markets that don’t go nowhere, or no producers, industry people who actually buy music are in their cities, so you are basically taking all this Fed Ex bills and all these times when you e-mail and trying to find A&R’s, managers, executives, and the dope producers, and you’re investing in yourself and flying somewhere. There’s a conference for every industry—there’s a conference for porno; there’s a conference for technology; there’s a conference for hair; there’s a conference for vitamins; there’s a conference for every industry. We never had one, so I’m creating that so these guys can know there’s one place you can go once a year and be able to talk to everyone, meet everyone, know how to network, and then further your career in this conference.

The advancement in technology has changed the landscape of all aspects of the music industry. What do artist, labels, managers, etc., have to do to compete in the current marketplace?

Man, they got to be fully competitive. They got to be where 50 Cent is—he’s a competition beast. They got to be able to shoot some viral videos, be able to hold and engage in conversations, keep these peoples engaged in the website, and all of that. It’s a lot to it, and it’s not an easy task, but I’m telling you, it’s an important thing for them to do that; and it takes a lot of things. Some of it is not even worthy to give up because you don’t want everybody on your blueprint.

When searching for new production talent what are some of the things you look for?

I look for consistency—I hear the first beat, if it sounds hot and the second one sounds dope, then I’m into you. I star you on my Gmail and then I start getting into you. If I hear one beat that’s good, and then the other one is terrible and then the other one is terrible, it’s hard for me to get into you—I look for the consistency. And I say to you, when I ask for the beat, “I need beats for 50,” so if you’re sending me beats for 50 and it’s moving like f——ing a Justin Timberlake song or some s——t, like, it don’t equate to what your ear should be as an A&R-producer, if you can’t send a beat that really makes sense … for 50, that means you don’t really have an ear for the actual artist, so it kind of deters me from wanting to [keep hearing ?] multiple e-mails from you.

As a producer, manager, and business executive, what are some important factors that make your enterprise viable?

My social upkeep. Ain’t nobody in this industry that don’t tell you they don’t speak to me at least once a month. I’m … in the mix; I go out; I go to clubs; I listen to radio; I listen to mixtapes; I’m online; I’m checking everybody’s blogs out; I’m completely in touch. I don’t move away from this shit at all. I got my wife telling me to get the f——k off the computer sometimes. I’m totally engaged.

With the success of the Norwegian production team, Stargate, do you think more international producers will compete for projects in the urban genre of American music?

Why not? Music is music, no matter where you’re from. I got my boy Tommy D. from Norway whose beats are f——in’ fire, and I’ll take it all day.

So you believe that there’ll be more of an influx of international producers competing with American producers?

I don’t mind, as long as we can get in Europe and make some money out there too and sell some beats, I’m all for it.

One of the most critical areas of the music industry and the segment that can have the most adverse affect on the progress of a project or a person’s career is the legal sector. With all of the negotiating, legal wrangling and subtle details that go into a contract, having knowledgeable legal representation is imperative. Oftentimes, employing a skilled attorney can be the difference in the advancement of business.

What better person to discuss the specifics of entertainment and music law than prominent lawyer L. Londell McMillan. Adept at the art of making a deal, L. Londell McMillan has effectively navigated his way through the music business, becoming a legal power broker (he spearheaded the high-profiled contractual releases of Prince from his deal with Warner Bros. Records and The Lox from their deal with Bad Boy Records) and representative to many notable figures, including but not limited to: Prince, Stevie Wonder, Michael Jackson, Usher, Kanye West, and Spike Lee.

Currently a partner at international law firm Dewey & LeBoeuf, where he heads the Entertainment, Media and Sports Group, and co-owner and Executive Publisher of The Source magazine [post-bankruptcy], Mr. McMillan shared his views with A&R Department about everything from negotiating record contracts to 360 deals to the overall state of the music industry.

After getting Prince and The Lox out of their legal contracts with Warner Bros. and Bad Boy Records, respectively, you’ve become sort of the go-to guy when artists are dissatisfied with their record deals. What can artists do to protect themselves in the beginning of their deals so that it doesn’t get to a point where someone like yourself enters the picture to re-negotiate the deal?

First, artists has to know what they really want, and appreciate that they’re an artist, a creative person, and a business at the same time. Their talents and their creativity is commoditized in a business industry that we know as the music industry or entertainment business—and the brand business now. So the first thing is to appreciate that when you enter into any kind of agreement that it is binding and you need to be thoroughly aware of what you’re entering into, and you should understand the consequences of it. You gotta make sure you know what you want before you ask for it because a lot of times artists want to be famous, they don’t necessarily want to sign contracts. And then in order for someone to invest in their talents and distribute their product, the company that’s investing and distributing want a contract so that once they make the person famous they can’t just walk away. So they have to really know what they want, appreciate that these agreements can have long standing consequences, and they want to understand the terms and conditions of the agreement—and ask around, shop around. Their first couple of agreements are the most important, so don’t be as excited to get in the game without understanding the price of the fame.

What’s the difference between negotiating a contract for Kanye West, the superstar, versus Kanye West, the budding producer/artist?

They differ in many ways including the amount of money usually that’s being offered, but often, what you call the leverage. The leverage is essentially “can you dictate terms of conditions of a contract, or will these terms and conditions be dictated to you.” Can you use the value of what you’re client is offering to get shorter term contracts, more creative control, more money, and possibly even more ownership, more insurance, more security, better travel, better accommodations. Essentially any and everything that’s important to your client is enhanced by the status that they have, and you wanna make sure you know the status, and you wanna know that that status will get you specific results. You can’t try to get something that’s too far outside of reality or you’ll lose an opportunity, but you can’t short change your client as well. So, in addition to knowing the legal way to go … to be a good lawyer you also have to know what the business is, and be as up on what the business value of your client is as much as what the legal terms of agreements should look like.

How do you feel about the multiple rights or “360 deals” that record labels are employing? And who really benefits? The artists or the labels?

My initial reaction was not favorable because I thought that these companies are now acquiring too many rights with too few resources and too little expertise, because you go to a record company to help build your record and your music publishing career. Many of them don’t have expertise in all these other areas such as management, such as touring, such as branding, such as film, such as entertainment. But they want to gobble these rights because they’re losing money, and their view is they’re making these investments … make you famous and they want to share in the fame. So … but, if it’s the only way that you can get to the marketplace then you gotta look at your options, and you gotta say “ok, it may not be the most ideal, but if this is the only way that I can play the game and my alternatives are not many,” then you got to take the best hand your dealt. So, the answer is if you got other options that make more sense, then obviously you play to your strength, but if that’s the only way that you can move forward then you wanna make sure that you enter into those agreements very carefully, and you try to reduce the amount of control, the length of time, and increase the resources that come your way for entering into those kind of deals.

Recently, superstar artists like Madonna, Jay-Z, Snoop [Dogg], and U2 have all left the major record labels for other major companies. What type of effect do you think those moves will have on the music industry?

I think what they’ll do is just popularize things that Prince and I have been doing for so long, which is appreciating that when you are an artist that create a product, you already have an existing brand, you already can connect to your consumer base, they’re already checking for you. You really then can go out and become the vehicle to drive the traffic and the commerce for your art, your talent, and your performances. And so I think it’s just gonna highlight that there are alternative ways to do things other than just going to the record company or the film studio, and that you can look at building strategic partners in different ways.

Will large companies like Myspace, MTV, and Live Nation pose a legitimate threat as competitors to major record labels?

Absolutely in one way, but they can also pose a viable strategic partner for record labels in another way. So, right now you’re at a place where it’s all fair and love. Any and everybody can make a deal if you got the right product and you got the right leverage. So whether it’s Warner Bros. reaching out to Myspace or whether it’s Jay-Z, or Madonna, or Prince, or Stevie Wonder, whomever it is, if you can create the right business opportunity and make the right deal then you’re gonna be in a position that’s gonna be better than your competitor.

How has the new 360° business model affected the way deals are negotiated?

Well, in a major way because you’re now not negotiating just a music recording and music publishing agreement, you’re now negotiating a multifaceted agreement and the way record companies have traditionally negotiated with artists has always been from a top-heavy position where they operated in a certain way, with certain kinds of—what you call business customs and norms. Those business customs and norms in music were not always consistent with the same business customs and norms in film for example, or for television for example, or for modeling for example, or for internet for example. So the term—a term in music was always done in these options where the record companies get one album plus they have unilateral options and they benefit for like maybe up to 6, 7 albums. That could go on for anywhere from 6 years to 20 years. That’s effectively a 20-year contract. But in the film industry—as opposed to the music industry—an actor doesn’t go enter into a deal with someone for 20 years; they’re usually doing it for picture by picture. So the way things are different is you’ve gotta now understand that you’re negotiating a deal for someone that basically is in different industries with one company, on one group of people. That’s a very complex set of arrangements and you just gotta be extremely knowledgeable. So a lot of that business is still in its infancy, and if you’re walking into that without someone who really understands each one of those industries, you can get hurt… you gotta be careful not only who your lawyer is in terms of whether or not they have a big name, or whether or not they’re well known, or whether or not they have connections, because many lawyers are connected but they’re connected to the record company. You want someone to be connected to your interest, someone that’s going to protect your interest if you’re an artist. You wanna understand where their sensibilities are, what their history has been, but you also don’t want someone that’s not gonna be able to make a deal. You want someone that’s got enough independence to work zealously for you, but you want someone who also has the kind of temperament to not make anything personal and get a deal done.

Based on the overall state of the music business, what type of changes would you want to see occur?

I’d like to see artists make more money from what they create; I’d like to see more artists development, and connection of the creative art form back to the people; I’d like to see a new music business model that is less complicating—less controlled in the hands of just a few corporations; I’d like to see a fusion of hip-hop in all forms of music worldwide; I’d like to see how hip-hop has influenced all parts of—not just me—I’d like for everyone to see how hip-hop has influenced all parts of the globe, and appreciate what we really had created, and for people to really just use that as a model for other business opportunities and creative endeavors. 

Are there any immediate things that the music industry needs to do to regain consumer confidence and make people want to purchase music again?

Yes. First thing they have to do is to get back to the basics of making great music, and not just putting out fillers and fluff, and signing friends who don’t have talent—that’s the first thing—get back to the music business. Second is understanding that the business has changed and the way we communicate and the way we relate to the ultimate consumer has changed, and they want their experience in many different kind of ways and we’ve gotta be responsive to that. So, on the creative side get back to just making great music and on the business side to realize that they’re no longer just in a power position, they have to be creative and strategic and smart, and get their business hustle up. And they can’t just sit back and say they’re one of the five major 50,000 lb. gorillas that you gotta come see. They gotta get out here in the arena, in the marketplace, and do business! And a lot of people are gonna lose jobs because they lost the ability to do business. They’ve only been put in positions because of friendships and they haven’t been able to compete in the marketplace. So you’ll see the companies that will stay around will be the ones that are nimble, quick, smart, and able to put together a team of people who know how to do good business.

…you gotta be careful not only who your lawyer is in terms of whether or not they have a big name, or whether or not they’re well known, or whether or not they have connections, because many lawyers are connected but they’re connected to the record company. You want someone to be connected to your interest, someone that’s going to protect your interest if you’re an artist. 

Quincy Jones has lobbied for President Obama to create a position in his Cabinet for Secretary of the Arts. Do you think a position like that would make a positive impact on the music industry? 

Absolutely. Arts is very, very important in many ways beyond hip-hop. Arts is a form of developing young peoples creative and cognitive development. And arts will also showcase throughout the world one of the greatest exports that we have in America, which is our talents, and our performances, and our creativity.

As an advocate of artists’ rights, and a person that has championed reform in the music industry, what are the difficulties of creating a labor union to act on behalf of artists?

The labels and the managers, who should be supportive of artists but often are working in hand-in-hand—the labels, the managers, and even most of the lawyers.

Now that recording artists are diversifying into different businesses and fields, how important is it for their legal representatives to be equally diverse in their knowledge of those respective fields?

It’s pivotal. And part of the reason most artists I think have not achieved their potential is because their managers and lawyers have been as limited as they are, and were just focused in one area, and you have to have expertise in multiple areas or be willing to develop a team for your client with expertise in other areas and you serve as the generalist. But many people are uncomfortable doing that, so you wind up not maximizing the potential of the people in your organization.

A lot of people—both in and out of the music industry—complain about the quality and diversity of music in the marketplace, putting the blame solely on the artists, record labels, and music executives. Is it fair to target them exclusively, or are there other factors worth considering?

Well, I think that it’s … there is other factors involved including radio. I think radio can be a stronger advocate for a broader diversity of musicality based on what they play. I think it’s the consumer. I think the consumer can start to support artists that showcase music in a broader way. I do think it’s the label and the record company that help develop artists so that they can pull out the best in the artists, because the artists should grow over a course of time. An artist on their fourth album shouldn’t be sounding the same as they did on their first album. They should show some growth while keeping that common thread that made them successful in the first place. So I think that it’s an evolution, you should always grow and recreate yourself—that’s why the artists that have lasted the longest and have made the most money over the course of time have been artists who have kind of recreated themselves and not got lost at the same time.

Prior to the recession, the music industry was already struggling. With the current state of our economy, what type of affect will it have on the music business?

Independent record labels and urban artists have had successful relationships with one another in the past, but as Hip-Hop and R&B transitioned into the mainstream, the thought of an artist signing with an indie didn’t sound quite as appealing as it once did. But things have suddenly changed and Koch Records is a major reason for the resurgence of artists seeing the value in signing with smaller record labels.

In the past five years, the label has produced some of urban music’s most recognizable hits: “Sexy Can I” (Ray J); “Baby Girl,” “We Fly High,” and “Byrd Gang Money” (Jim Jones); “We Takin’ Over,” “I’m So Hood,” and “Brown Paper Bag”(DJ Khaled); “Walk It Out” (Unk); and “Blow Your Mind” (Styles P). A&R Department decided to speak with the man responsible for putting out those records, Alan Grunblatt, Executive Vice President of Koch Entertainment, to get his perspective on Koch’s position in the marketplace, the business model of the label, and the current landscape of the music industry.  

 How has Koch positioned itself as a credible competitor to major labels despite not having as many resources?

Our sort of theory is Koch is really the equal of the major labels. We’ve broken Jim Jones, along with DJ Khaled; Ray J. So really there’s no difference between us and the majors; there’s no difference in the resources between us and the majors. It’s just purely a definitional thing.

What is it about Koch that has attracted so many commercially viable artists to sign with your label?

We don’t really over A&R the projects with them. We do a lot of deals with the artists’ labels and stuff. And like ninety percent of the cases we really rely on the artists themselves to A&R the project. A lot of artists really like that and seems to be working out.

So I guess that falls into the type of business model that Koch employs?

Everybody has the same model in terms you need hit records to sell albums. How that relates to what the artists makes and stuff like that is sort of over-exaggerated because you’re spending so much to break these records and what it really does is it enables the artists to make so much more money on the other side. We certainly allow artists to have a lion’s share of the proceeds and to make a bigger profit, but it’s just really in today’s climate the promotional and marketing dollars are so expensive that that’s really the key point of the focus on it.

Has the rise in digital distribution affected the way your company approaches selling records?

Yeah sure, because it makes it more of a hit driven business. See album sales are really struggling, but if you have a hit, you can sell millions and millions of singles on iTunes. And that certainly changes … It made us more hit driven as opposed to signing like more culty kinda album artists.

Where do you think labels need to exert their resources in order for a project to see positive results?

You gotta get on the radio. Get radio going and get a video going.

You think at this point that’s still the primary focus?

Absolutely.

What about online?

You know online’s important but it’s really … it reflects radio and video. The artists who purely break online is not as big as everybody thinks—in my opinion. It’s part of the marketing mix but the most important things are having a hit record and having a video on.

I would say, depending on the advance, if an artist scans 25,000 units that can be a successful project. You know 25,000 units sold is a quarter of $1,000,000. That’s a significant amount of money; multiply that by ten that’s $2,500,000. 

Since the needs of your label differ from that of the majors, how does Koch assess a successful project?

I mean it’s a tricky question because that depends on how much the deal is. But I would say, depending on the advance, if an artist scans 25,000 units that can be a successful project. You know 25,000 units sold is a quarter of $1,000,000. That’s a significant amount of money; multiply that by ten that’s $2,500,000. If you have ten projects like that…

It seems that part of Koch’s appeal with artists has been due to the label’s creative flexibility as well as the potential for your artists to reap larger financial earnings from album sales. What is your view of the 360 deals?

It’s not something we really do because on the hip-hop side it’s very hard to take an artist’s touring income away from him and stuff like that. We like to do our deals, we like the artists to have other lanes to make money. So sort of like, it makes it a healthier relationship for us…

With record sales down, artists and labels are trying to find different opportunities to compensate for the decline. What are some of the ways that Koch is generating ancillary revenue?

I mean really it’s the digital side: CDs, iTunes, ringtones. Those are the main things. Sure you know like we work your music into movies, video games, stuff like that. But for us it’s really CD sales, digital singles, and ringtones. That’s what we really focus on.

Many of the urban acts on your roster already have a respectable name in the marketplace with an established fan base due to either their current or former affiliations with major labels. Is that part of your organization’s strategy?

You like to sign an artist with some base, as opposed to somebody who’s brand new. I mean, like even Unk who was a new artist was part of Big Oomp Records, had a big club buzz when we signed him. So we like to have the artist have something going on. Like, we’re never going to sign an artist cold like that. That’s not our philosophy. It’s not so much purely … like, they don’t really have to have records out, but there has to be a reason for us to sign them besides the quality of the record.

Is it a cost effective thing also?

For us it is, otherwise it would be way too expensive. Otherwise you would have millions and millions of dollars in making a record and we can’t afford that … Jim Jones is my partner; Cameron Giles was my partner. My successful deals was always … The best deals I ever did was I had Ruthless Records with Easy-E, Eric was my partner; I had Suave House with Tony Draper, Tony was my partner; I signed Three 6 Mafia, Hypnotize Minds was my partner. That’s how I really like to do it. This way you don’t have to worry about stuff. You get the record and then you deal with it. Hey look, it’s certainly working, like Cash Money is a great … Wayne’s the number one artist in America and that’s their example, and I’m sure Universal is very, very happy that they deal with Slim and Baby like that. So that’s our preference if we can, but sometimes it’s difficult to do that. But that’s how we really prefer it.

When artists and record labels are in need of a hit song, one of the people they call to deliver the feat is the Chattanooga, Tennessee born Adonis “A.D. The Phenom” Shropshire. A member of Sean “Diddy” Combs’ production and songwriting team “The Hitmen,” and writing partner of Brian-Michael Cox and Kendrick Dean, Adonis has emerged as a top-notch talent known for his impressive resume of chart topping singles for many of today’s popular R&B/Pop artists: Usher & Alicia Keys (“My Boo”); Beyonce featuring Diddy and Ghostface Killah (“Summertime”); Ciara (“And I”); Diddy (“I Need A Girl” Part 1 & 2); Chris Brown (“Say Goodbye”); Danity Kane (“Ride For You”). With over 50 million records sold and a few Grammy awards under his belt, including “Album of the Year” honors for his credits on Mariah Carey’s “The Emancipation of Mimi,” the illustrious songsmith spoke candidly with A&R Department about the elements of writing a smash record, how to earn song placements, and the role of management. 

What would you say are the fundamental elements of songwriting?  

Melody, lyric, concept of the song, and simplicity of the song. I think all four of those things play an impactful part into making a hit record. Like, you can have a song that…remember when SWV had “Weak” out, a lot of girls didn’t know what the hook was saying, they just knew the melody: “I get so…[sings melody]. So the melody won that battle. As long as two of those four things work—it will always work.

So would you say that consists of, let’s say—a formula? 

Different writers have different formulas. I think whatever works best for the results that you get. I know some writers like to write with the music playing the whole time—they just keep looping the music. I can’t write like that. That’ll make me keep starting over…‘cause once the music has got past the part that I wrote—then it’ll keep going; and then once it goes back—then I’ll have to start over again, so I feel like that stagnates the writing process for me. So I don’t write with the music on at all. And some writers like to use paper and write everything down. I can’t. I feel like that slows me down, so I just go in the booth and go off the top of my head. So there’s different processes people use, you know. 

What would you say is the most important aspect of getting a song placed?

Presentation. How fully complete the song sounds. How well you prepare the song for playing. Vocals shouldn’t be all loud and you can barely hear the beat or vice-versa—there shouldn’t be loud music and you can barely hear the vocals. You should really take time and make sure that your record is presented the right way so that the label or the artist—whoever’s listening—can feel like…you respected their craft enough to come with your stuff ready to listen to.

You should really take time and make sure that your record is presented the right way so that the label or the artist—whoever’s listening—can feel like … you respected their craft enough to come with your stuff ready to listen to.

How important is management? 

Extremely important. Management can be the sole thing that causes you to be a superstar or the thing that causes you to be a nobody—no matter how talented you are. Management is supposed to be the person that gets your talent to the masses. So, it don’t matter if you can rap better than Jay-Z. If your management can’t put you in front of somebody who can recognize that, then you’ll always just be the hottest n—a on the block. 

In terms of creating songs, when you’re collaborating, how does each contributor’s personality factor into the creation of a song?

It’s hard sometimes to write records with people when you have different processes. So what you do is…you both abandon your processes—separately—and try to find a common ground. For instance…like I said, I don’t like to write with paper and I don’t like to write with the music on. But if I work with somebody who likes to do both of those then what we would do is, I would go in the booth and get behind the mic, they would sit in the control room, and whatever I say they’ll write it down and then we’ll record it immediately. So then that way we both feel comfortable about the way that we’re working. I don’t feel like I’m having to write lyrics down and slow up, and they don’t feel like they’re having to move too fast. You just find a common ground that works for the song, because the important thing is the song—it’s not the people. Any two people can write a song. The important thing is the song. You never want to lose that that’s the reason why you’re there. 

What should songwriters do to ensure they’re financially compensated appropriately for their contribution to a song? 

That comes from your management. It’s crazy ‘cause labels and management of other artists would do whatever they need to do to make sure that their client’s career goes as well as possible. And the object of labels is to spend as little money as possible and make as much as possible. So if they can get you to do something for them for free, they’re gonna do it. They’re gonna ask for little to no money. They’re gonna ask that because…especially the state of the industry right now, they not trying to spend no paper that they don’t have to spend—like no excess paper. So, you have to make sure that your management is in pocket and that they demand certain things from you, and if the label really wants to work with you or wants work from you, they’ll do whatever they feel like they need to do to make sure that you’re taken care of so that they can get what they need from you.

How has the landscape changed for songwriters now that everything is going digital? Does that change anything?

Nah, nah. Media is media. The only thing that changes is the way we make money. Not necessarily how much money we make, just the way that we make money. I think good music will always prevail—whether they’re making CDs or whether they’re making digital iPods or whether they’re making…whatever, you know…phonographic ends. Good music will always prevail. We’ve gotten so…to where we think “ah man, the industry’s messed up. Records ain’t selling like they used to.” Yeah, ‘cause records ain’t good like they used to be! We had classic joints back in the day like “Diary of a Mad Band,” Boy II Men’s “II.” Them joints came out in like the same year, almost. You know what I’m sayin’. How you got two classic albums like that come out in the same spot by rival groups? ‘Cause they were taking their time making records. Like, we [music industry] weren’t just trying to hurry up and get a song on the radio—and trying to get ringtones. I believe that’s what messed us up. We started thinking all this fast money is quick. But then we lost track…we lost sight of the long money and that’s why we’re suffering.

 Adonis is currently in the studio working with his new girl group “Melrose,” and has already received records from A-list producers Danjahandz, Rodney Jerkins, Swizz Beats, and Brian-Michael Cox.

Now that digital media has commanded a significant amount of attention and market share in the music industry, social-networking sites and multimedia applications such as Myspace, imeem and iTunes have become primary sources for artists and labels (both major and independent) to market their music to a larger and more targeted audience. While major record labels continue to grapple with the changes in audio formats, other businesses are benefiting from the restructuring of the industry. 

One company taking advantage of the opportunities made available by the evolution of digital media is Digiwaxx: a service-oriented, membership-based web application that enables record labels and artists (large or small) to distribute and promote their music electronically to a distinct selection of DJs, tastemakers, and musical influencers worldwide. In this inaugural issue, A&R Department converses with the company’s chief architect, Corey “CL” Llewellyn, to gain his perspective about technology’s influence on the music business and the effects it will have on the future of recorded music. 

As a business, what are the benefits of operating in the digital form? How can artists benefit from the digital form?

The number one benefit is that you’re now borderless in the amount of people you can reach. The internet and technology has made it seamless to communicate with people across the world and to broaden your brand, your music, whatever, internationally in the drop of a dime—instantaneously. The value comes from being able to connect with a bigger demographic than you would normally be stuck to off the jump. You’re now, versus working in your city, your town, your reach, you’re now reaching out beyond where anybody else can fathom. That’s the most beautiful thing about the internet—instantaneous communication. The world is just in your reach…The internet is breaking down those boundaries in that communication is allowing people to look at things in a different way. It’s bringing the world together as one. People are creating new communities, new friends, dealing with new people and new places that they would’ve never dealt with before just because they didn’t have access to it.

The popular theory in the music business is that the internet and digital music are the reasons for the decline in record sales. As a leader in the digital community, what’s your view?

It has played a part in it because anytime you can take a CD and everybody rips it, you’re losing money. I think that we all know it’s a problem. I think the way to solve it is that we have to press our government and worldwide organizations to put regulations on it. It’s also us taking personal responsibility for what we do. If you rip a record or get it off of Limewire, you’re taking money out of an artist’s mouth. Second, it shouldn’t be allowed by law. We should be trying to focus on solutions and that solution is to say, “you have to go to the government.” Start off wherever you can: your district, town, state, federal, and worldwide organizations, and press them to put bigger and better sanctions and regulations on what can be done regarding the internet. It should be programs in place now. The technology world makes too much money off of protection encryption, file sharing formats, all of this stuff for it not to be regulated. If there has to be worldwide laws out there that prevent people from…that make it mandatory for people to use certain codes and encryptions so that people can’t download, share, and have certain permissions with music, I’m all for it. At the end of the day, we’re killing our industry and we’re taking food not only just out of the artist’s mouth, but a whole industry’s mouth. We’re killing the industry! I can honestly say—record labels are out of the door.

What’s your forecast of the music business in five years?

The music business in five years will be run by either a combination of advertising companies, technology companies, and independents. Period! I don’t think there’ll be no place for a major label. They’ll probably be winding down, and that they’ll maybe have a couple of 360° deals. I’m saying, if it doesn’t change with the regulations—all of this is dependant on that—then there’ll be no place for a major label. People will get money from a company that says, “I have a new jacket that I’m going to be promoting from Pierre Cardin, give the budget to this marketing company,” this marketing company is going to say, “we’re going to sign this new artist who has a hot album, we’re going to put that $1.5 million that we’re going to spend on the advertising of this product, put this artist along with this product, and we’re going to sell both of them.”

Sort of like Jay-Z’s “Kingdom Come” album with Budweiser. 

Imagine if Jay-Z signed with Budweiser and they spent all that money.

He said that none of the money spent on “Kingdom Come” came out of the marketing budget. 

That’s exactly where it’s going to go. That’s exactly where I see it going.

But do you think that an artist has to have that level of recognition?

Absolutely not. That’s why it’s marketing. Marketing is about taking new products, new things and figuring out a way to sell it to the masses. If they put it in a commercial—that song, being that it’s hot enough—people will take to it and want it anyway.

We’re killing the industry! I can honestly say—record labels are out of the door.

In your opinion, what are the cons of the digital music phenomenon?

I don’t know if it’s so much of a con, but it completely levels the playing field. There’s no distinction between a major artist and an independent artist damn near anymore right now. Yeah, you got guys like Baby Boy Da Prince that are signed, and then you got cats that are maybe just as popular online that don’t got a deal. We’re getting to a place where it’s almost transparent. Like, “Ok, you’re signed to Universal Republic. Ok, I’m signed to myself, but we’re both at the same show.” The only difference is that you may get an advance because you’re signed and they have to pay you, and I may be getting $7, $8 or $9—can’t even say that anymore. I may be getting 75¢ on the $1 or you may be getting way less than that.

Do you feel that music on the internet has hurt radio, which used to be the lead medium for promoting new music?

No. Not yet.

Are radio and DJs still important in promoting music in the digital era?

Yeah, definitely. It still reaches the masses. Radio is free. Everybody doesn’t have the internet yet. It is important because millions of people still listen to it. Yeah, iTunes, iPods and Zunes, and people are listening to internet radio stations—right now that stuff is still not as relevant as radio is. It’s too many millions of audience members and people listening. I do think that those other genres are growing in popularity obviously, but it’s just not at where radio is at yet.

Part of the pleasure in purchasing physical music used to be the experience itself—going to the store, purchasing the CD, tearing off the packaging, reading the booklet, examining the artwork, then listening to the music. Do you think the immediate access of digital music removes the experience for consumers, subsequently eliminating the interest to physically purchase music at retail outlets? 

Of course. You don’t get that same experience going through music on your computer. It changes it. I still go to music stores when I can. I still like that experience. I still like just flipping through music. But to me it is somewhat pointless unless you’re getting old music, and that’s just how I feel. But I do still see the excitement coming across people’s faces. But then you got a lot of people that don’t go to stores at all. So I would say yeah, it’s definitely changing it. It’s still some left—a nostalgic feeling of going to the store. But yeah, it’s changing. People aren’t going to be doing that in five years.

Will physical music product ever regain its leverage in the marketplace?

I think it’s going to go away. I think that people are going to be focusing on buying hard drives, the only physical thing they got. Meaning, whatever size Zune player you have, whatever size hard drive you have, gig, megs, terabytes, whatever it is—