Airforce Records
Subject To Change: A Complication Of Northwest Artists
Production Outline
Note: The original working title for this project was PDXplosion. It's final name was 'Subject To Change: A Complilation Of Northwest Artists.' This guide was scanned from the Original.
AIRFORCE Records opened it's doors in july 1995. As AIRFORCE'S majority owners, a plan has been set in motion never before seen in the Portland Northwest Region. AIRFORCE has set out to make a name for itself in the entertainment industry. As a record label, AlRFORCE'S primary focus involves the recording, marketing, and sales aspects of a ta|ent's future. AlRFORCE'S objective is to choose specific, marketable talents and sign them to a recording contract with our label. This is known as a "Production", or "Speculation" venture. This is how acts are signed to larger labels. AIRFORCE markets these unsigned acts to larger record labels, such as Capitol, Mercury, Sony, DGC, TIME-WARNER, and Electra for example.
ln order to receive the attention and support AIRFORCE needs for these ventures, AIRFORCE must be recognized as a respected independent record label. This respect is derived from reputation, including past project notoriety. In the case of PDXplosion I, AlRFORCE'S concept lies within community - outreach as well as exposure for the arts and music community.
By enlisting the talents of the Northwest's largest, best known acts for a compilation of this size, AIRFORCE feels that their goals can be reached. PDXplosion is a label launch for AIRFORCE Records. AIRFORCE Records have opted to sign two (2) musical acts previously unsigned to any other record label. These acts, consequently, also appear on the PDXpIosion compilation. These two acts will be AIRFQRCE'S primary focus for marketing after the PDXpIosion is completed.
Through AIRFORCE'S industry contacts, the compilation, as well as any records released by AIRFORCE RECORDS, will have the avenues needed for large label (or potential buyer) review.
This year, although only two (2) acts are signed, AIRFORCE has the potential, and the resources, to sign over as many as nine (9) more acts to be sold to a larger label. When one of the acts that AIRFORCE has under contract gets signed to a larger label, AIRFORCE receives monies for all aspects, including distribution, merchandising, and percentages of album sales.
Once AIRFORCE Records has launched it's name through the PDXpIosion compilation, AIRFORCE will be in a position to compete with other local independent labels as well as national major labels. With strong community support already in place, AIRFORCE Records can be a profitable, strong force within the music and entertainment industry.
AIRFORCE'S long-term agenda involves duplicating PDXpIosion annually. In the interim surrounding each PDXpIosion compilation, AIRFORCE RECORDS will release other artists, on the quarterly basis, for major label purchase consideration.
The advantage of producing acts in the interim is that momentum gained by the release of each PDXpIosion compilation will fuse into each of AIRFORCE signed acts. A much smaller amount of capitol will be necessary to successfully promote each of AlRFORCE'S interim acts. Our distribution entity will pay more money to record labels who release records regularly. In addition, much more attractive rates involving manufacturing can be attained by utilizing large volume orders.
Cost For Producing Interim Acts
COST FOR PRODUCING INTERIM ACTS
Recording Cost: 45 hours @ $20/per = $ 900
Manufacturing Cost: @ $ 1.40/per= $ 1400
Promotional Cost: Posters: $ 400
Tour Support: $ 200
Advertisements: $ 300
Merchandising: $ 800
TOTAL COST $ 4000
INCOME FROM INTERIM ACTS
(based on 1000 units)
Record Sales: 1000 units @ $ 8 = $ 8000
Merchandising: 200 @ $ 12 each= $ 2400
Total Income Per Interim Act $ 10400
Costs for Producing Interim Act $ 4000
Net Revenue per Interim Act $ 6400
The unit sales noted above are conservative. It is not uncommon for acts to sell 5000-l0000 units per release with the proper promotion and aggressive marketing approach that AIRFORCE RECORDS employs. This brings potential sales to the $36000 - 64000 mark per act.
Due to time constraints, AIRFORCE RECORDS will only release 4-5 interim acts per year. Conservatively, AIRFORCE forecasts $ 25600 - 32000 per year in interim revenues. In addition to income from interim acts, AIRFORCE will be actively marketing these interim acts to large Major labels for contract purchase, or "buy-out." Typically, Major labels compensate independent labels at the rate of 2% - 10% of the total value 4 of the record contract (a typical major label contract is $600000 - $3 million.) In this ever changing music industry, it is difficult to forecast which acts will gain nationwide notoriety. Fortunately, with AIRFORCE'S keen marketing approach and maximized use of existing resources, the probability of an AIRFORCE records act being purchased by a major label increases substantially.
OVERVIEW
Portland, Oregon is experiencing a renaissance. In the arts, in business, entertainment, and in sheer numbers, Portland is witnessing unprecedented growth that is attracting worldwide attention. Nike, Weiden & Kennedy, Gus Van Sant, Widmer, Full Sail, Coffee People, Oregon Ballet Theater, and Portland Institute for Contemporary Arts are all entities that are continually seeking national acclaim.
Portland is also home to one of the most vibrant and exciting music scenes in the entire United States. With over l00 venues for live music, Portland's music scene has spawned such nationally known and up-and-coming acts as The Spinanes, Pond, Heatmiser, Everclear, Super Deluxe, The Dandy Warhols, and The Five Fingers of Funk. It is no wonder that North By Northwest selected Portland over all other northwest cities as the home for their annual North American Music Seminar.
PDXpIosion
PDXplosion was created to celebrate Portand's coming of age in music, arts, and business. PDXplosion is a series of compact discs designed to showcase local bands and visual artists, as well as raise money to benefit local charities. The name PDXplosion is subject to change.
A Targeting a I2-30 year old demographic, PDXplosion was conceived by Portland's AIRFORCE Records, and is a joint venture between the following organizations:
1. KNRK - 94.7 Portland's New Rock Alternative Station
2. AHFA - Portland based non-profit Artists For a Hate-Free America.
3. White Horse Studio - Portland's world-class recording facility.
4. The Rocket - Seattle/Portland area Music Magazine. Circulation: 97,000
5. Willamette Week - Portland entertainment publication. Circulation: 110,000
6. Weiden & Kennedy
...and other local businesses to be announced.
The first compact disc of the series will be released in March 1996. A kickoff event at a large local venue will feature live performances by acts featured on the compact disc. This event will attract national publicity. A portion of the proceeds generated by the sale of the CD, and by admission to the event, will be donated to Artists For A Hate Free America who will, in turn, grant money to a local non-profit (most likely anti-violence related) and a local arts organization to be announced.
Talent
PDXplosion has enlisted the talents of Portland's best bands in a setting never before seen in our region.
Confirmed bands thus far include:
I. The Dandy Warhols (courtesy of Tim/Kerr Records)
2. Floater (courtesy of Elemental Records)
3. The Five Fingers of Funk
4. 90 Proof
5. The Living Daylights
6. 8-Foot Tender
7. Super Deluxe (courtesy of Tim/Kerr Records)
8. SpringTooth
9. The jimmies (courtesy of Schizophonic Records)
10. Fall From Grace
11. Ten Pound Rain
12. Everclear (Courtesy of Capitol Records)
13. Pilot (Courtesy of Tim/Kerr Records)
We have contacted Pond, Sweaty Nipples,The Spinanes, and Heatmiser as well as other local bands for their inclusion on the CD.
Bands have recorded at Portland's Source Studio and will be mixed at Whitehorse Studios by David Friedlander who has worked with REM, George {
Clinton, The Pointer Sisters, and was engineer for the artist formerly known as Prince for six years at the world-renown Paisley Park Recording Facility in Minneapolis, Minnesota. White Horse Studios has recorded top recording artists from labels such as Polygram, Geffen, Sony, and Windham Hill.
ARTWORK
We have contacted Port|and's nationally recognized Portland Institute for Contemporary Art (PICA) to help select an artist for the CompiIation's artwork.
PICA is a local arts organization that is being considered to benefit from the proceeds generated by PDXplosion. Weiden & Kennedy is providing an Award-winning designer for the art direction of the CD package and corresponding artwork for promotional material.
PROMOTION
KNRK, Portland's leading New Rock Alternative radio station has signed on as the number one sponsor for PDXplosion. They will act as key promoters for the CD and concert events. Additionally, they have expressed a strong commitment to play select tracks from the CD. KNRK's level of support includes the services of Mark Hamilton, their Program Director and events coordinator. Mark was formerly the Director for LIVE I05 in San Francisco, California. He mapped out and directed LIVE l05's version of PDXplosion's compilation. Distribution sales as of this date for LIVE I05's compilation are at l4,000 units and still selling. This event was held sixteen months ago, and demonstrates the possibilities of long term investment return with this type of project.
AHFA will use their resources to generate additional local and national publicity for the compilation and concert events. PDXplosion will be covered by
MTV Music Television, Rolling Stone Magazine, and the upcoming George Magazine among others.
We anticipate extensive regional coverage of the CD and Concert Events.
THE DISTRIBUTION
Distribution for PDXplosion will be through national distribution routes. ALLIANCE Distribution has committed as PDXpIosion's distribution entity. In
addition, other distribution companies such as RED and ADA have expressed interest in assisting PDXplosion's CD.
Alternative Distribution
In the same fashion as Blue Note/Capitol has done with Starbucks, several local and statewide businesses are being approached including Coffee People and Macheezmo Mouse Restaurants. These alternative distribution centers will feature counter displays, and will allow patrons to purchase the PDXplosion CD.
PDXplosion will also be featured on AHFA'a Web Site, accessed by thousands weekly, and will be advertised in numerous fanzines to generate mail
order sales.
THE CHARITY
Artists for a Hate-Free America is a Portland, Oregon based non-profit organization that raises money to support the people on the front lines in the battles against discrimination, violence, and censorship. AHFA raises awareness of these issues through art and the media. Founding members for AHFA include members of Pearl jam, REM, Neil Young, Bonnie Raitt, Gus Van Sant and others.
THE SPONSORS
PDXplosion has enlisted the services of a number of Northwest businesses in a number of capacities. Sponsors will receive special thanks in the Compact Disc booklet, a logo on all print advertising, and signage at the kick-off event. PDXplosion depicts a winning scenario for all parties participating.
Benefits include:
* National exposure for Portland bands
* Community outreach
* High visibility for sponsors
* Local non-profit organizations benefit from proceeds
* Public becomes aware of important issues
The numbers included in this business proposal reflect unit sales only. Investment return generated by concert ticket sales, merchandising, liquor sales etc. cannot be confirmed at this time. However, conservative estimates establish an additional $18,000 - $25500 in this area. Please refer to attached breakdown for further itemization.
Please note that the attached Profit/Loss Statement reflects that 7500 units are necessary for maximized investment return. lf additional units beyond 7500 are necessary, AlRFORCE's investment return increases beyond the 112% mark.
PDXplosion is structured to provide AIRFORCE Records with the credibility and exposure needed to launch a successful record label. This aspect of the music industry is a very lucrative one, however, it involves a certain level of risk as with all business ventures. AIRFORCE Records expects to compete with Tim/Kerr Records, a strong local independent record label with major label respect. AIRFORCE Records fills the gap left by Tim/Kerr records who primarily focuses on Industrial Rock bands. AIRFORCE Records and it's PDXplosion compilation possess the momentum, energy, community support, and direction to benefit everyone involved.