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BoA's crisis???


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#1 mlyap7_boa

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Posted 02 February 2010 - 07:22 PM

Okay so I was reading some unpleasant news at Soompi & I actually haven't read anything about it here so far so I thought of sharing the info & gather some opinions as well...

It seems that BoA is undergoing a financial crisis you can say, she is owing SM & Avex money due to "failure" of her recent works I believe. Which is one of the reasons IDENTITY was self produced. There was no money to hire songwriters or so. & also the reason to the recent lack of promotion. I dunno how true this is but here are some of the stuff I quoted from the members at Soompi.

Identity Album vs. general music laws
Ok so lets talk contractual issues here, again. In my Songwriting for Business handbook by Jason Blume -songwriter for singers like Nsync. It speaks in the earlier chapters much of what you said.

IN fact, there are NO Ifs about it. The book states that an artist or songwriter must always recoup his/her advances spent from the previous job. This is general for all record labels. So for instance, if a persons last project costed him/her $500,000 and the royalties earned are usually 50% against profits. The first 50% is the PUBLISHERS share. It does not count towards recouping any losses. (pg 30)

So a person must learn $1,000,000 to recoup costs. The publisher will subtract advances owed for the next project.
That means if Avex wanted to give BoA $500,000 for the next project in line, she still needs to earn $1,000,000 and thus.. there are no advances left! (But a debt)

This is true even if an artist has made tons for a record label in many previous years.

THUS, BoA’s newest CD, sans songwriters is ..drum roll please….. SELF FUNDED!!

It is most likely an early decision for this CD to be a self production because there’s no budget to hire songwriters, despite what some of you may think. It is great for her to do this herself, and YES I believe shes musically gifted. But if you look at the contract side of it, it was very much an early decision.

Avex most likely did not put a cent into this CD. Remember she has to recoup expenses, unless she already paid her debts from her bank in advance. While this affects BoA greatly, the song writers Bloodshy and Avant, Sean Garrett won’t be too affected for long. It’s a shame they didn't make a penny (but owe 200,000 a track –typical cost for Britney song producers)
BUT.. They can easily make 1-3 tracks for a big artist like Lady Gaga, or anyone who they usually work with and recoup that money in a couple months.

The royalty rate from Jan 1, 2006-2007 each unit generates 9.10C PER SONG (Up to 5 minutes) pg.31

So if her RECOUPABLE royalties are 9c a song, she might be getting only $1.17 or so a CD.

Because Avex isn’t helping BoA on this album, ie its self funded, I hope you hardcore fans can actually go out and buy it. But that won't be enough. It is not enough for just the hardcore fans to buy BoA's album.

So as you can see, its a rich get richer, a poor get poor schematic. From this one can learn that its imperative, if not mandatory to keep the production of CD costs down to a minimum, and be a sniper when it comes to promotion. Only spend on good promotion, don't waste time on useless random websites that will surely rot..

Due to the recoupable fees that BoA owes, she'll be self funding her CDs without promotion for the next couple of years, until something will break through for her.

Note: these are general laws for all music publishing under ASCAP. I can't imagine the rates for Japanese laws are any better than American.

Summary for the lazy:
BoAs album was over budget for US, no royalties produced, yet a debt.
So therefore shes back in Japan for her new Japanese album which has NO promotion, and NO songwriters .. you wonder why its self produced? thats why


Avex trax published Best and USA
It was a combo deal, remember? Avex did put a lot of money on that and she did perform her US songs in Japan, so there was a deal that went on.The Best and USA album did not really sell that well, despite it having an enormous amount of great tracks on it. (Certified GOLD 145K, but according to how much she spent on producers..its not much)

She still needs to recoup losses from her album failure BoA us album +Best and USA. I think its agreeable that her last album sales plummeted and thats why theres not enough funding going on.

And what I put was a sample rule statement, not a precise calculation.

But I think I could of made it clear that she owes SM much more than Avex, who did fund the majority of the costs associated with the USA album. I think thats a crap deal if you ask me, because there was no promotion. (NO promotion no sales!=no recoup of advances)

Sorry for any confusion.


Yea so why don't discuss about this matter hear to...

Those were quoted from Danzo@soompi.com so credits to him... :lol:

Edited by mlyap7_boa, 02 February 2010 - 10:16 PM.


#2 evilcommunikev

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Posted 02 February 2010 - 07:52 PM

=-=""""""""" poop ... BoA is going straight down hill? I, and probably many others, just thought that it's just a regular low popularity period that every artist goes through every so often...damn ... but really, the US album failed pretty badly[/u], I don't know who was responsible for the production, hopefully not mainly BoA, but it really wasn't a great one. The US album contained too much of "Asian supposed American stereotypes" that don't really work well at all. Plus all of her live performances, as I noticed repeatedly, had bad stereo system to support her that really brought the energy of every single performances down by a lot. Bump Bump was apparently a failure too, I previously said that it was most likely due to the fact that the production was focused exceedingly on the MV, but never really considered the live performance part of it...
Hopefully this new album will turn out much better T.T

BoA FIGHTING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

#3 Kwcty6888

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Posted 02 February 2010 - 07:58 PM

Ah, I saw this on soompi too. I think this is too depressing to think about >_> Whatever happens happens, so I'm not gonna worry about it too much for now. There's nothing we can do anyway except support her the best way we can right?

#4 mlyap7_boa

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Posted 02 February 2010 - 08:01 PM

^ Yea there ain't really much we can do now... :lol:
As fans, we should just give our best support...

#5 hinachan

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Posted 02 February 2010 - 08:20 PM

I'm waiting for korniceman3000 to get in on this, since he has a lot of knowledge about the business side of music.

If what's being said at Soompi is true, I wouldn't be surprised. That's why I get so frustrated at fans who act as if all that matters is that THEY like the songs BoA puts out, and they don't care about sales. Because poor sales hurt BoA, and it's selfish not to think about what she wants and needs.

She wants to have continued success.

She needs to have continued success, or else she might ultimately get dumped by Avex.

We fans always buy her albums, but BoA needs to come up with songs that the people like, or else she's in trouble. :lol:

#6 Airforce

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Posted 02 February 2010 - 08:43 PM

Artists don't make money from CD sales nowadays, it's all made by live performances and private performances to high rollers

#7 hinachan

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Posted 02 February 2010 - 08:52 PM

Artists don't make money from CD sales nowadays, it's all made by live performances and private performances to high rollers

Live performances often lose money--you have to pay for musicians, venues, lighting, etc. They recoup the money lost by selling merchandise.

But CD sales are still very important, for the reasons given in the OP. :lol:

#8 boaislove

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Posted 02 February 2010 - 08:58 PM

^Yes.

For now, I don't want to frustrate and stress myself out for something that hasn't been confirmed and replied to with a thorough explanation/support.

Either way, whether this is really happening or not. It is a FACT that this is the moment when she needs our support the MOST.

#9 mlyap7_boa

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Posted 02 February 2010 - 08:59 PM

Live performances often lose money--you have to pay for musicians, venues, lighting, etc. They recoup the money lost by selling merchandise.

But CD sales are still very important, for the reasons given in the OP. :lol:


Yea that's true...
I think endorsements & such are important which BoA hasn't been gettin much lately... :lol:

Edited by mlyap7_boa, 02 February 2010 - 09:00 PM.


#10 Airforce

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Posted 02 February 2010 - 09:26 PM

live performances incl. sales of merchandise at the venue. But I mean nobody really buys CDs nowadays like they used to cos everything can be downloaded, unless you're a hardcore fan of course. Poor Boa :lol: I hope she gets back on her feet seriously!

#11 saoji

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Posted 02 February 2010 - 09:31 PM

I don't think BoA herself is in financial crisis. Since 10 years of work and success, she's really not poor.
Even if she doesn't sell as big as before, it makes money.

And Avex and SM are very big company's.
They have a lot of artists if they want to recoup money for their failure, or bad invests.
They make money all time.

Since it's BoA who produced this album means it's her who invested money on this, so the biggest part of sells will be in her pocket.
We must buy it :lol:

#12 dreamsicles

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Posted 02 February 2010 - 09:35 PM

live performances incl. sales of merchandise at the venue. But I mean nobody really buys CDs nowadays like they used to cos everything can be downloaded, unless you're a hardcore fan of course. Poor Boa sad.gif I hope she gets back on her feet seriously!


yea.

this is the time when she needed support from us fans most. we wouldnt want to see her 9 years of hard work go down the drain.
Lets hope this album really can turn the tide for her.

But imo, the lack of promotion part that might be the cause of the US album failure might be because of SM internal problems back then that could not let the promotion continue.

all in all, BoA definitely needs all the support she can get now.. this is more than just downhill periods of someone music career.

BoA Hwaiting!!!!!!!!!

Edited by dreamsicles, 02 February 2010 - 09:36 PM.


#13 mlyap7_boa

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Posted 02 February 2010 - 09:44 PM

live performances incl. sales of merchandise at the venue. But I mean nobody really buys CDs nowadays like they used to cos everything can be downloaded, unless you're a hardcore fan of course. Poor Boa :lol: I hope she gets back on her feet seriously!


That is so true & saddenin...
Sales a decade ago were so nice to look at whereas now, it's hard to even reach 500k for your album sales...

I don't think BoA herself is in financial crisis. Since 10 years of work and success, she's really not poor.
Even if she doesn't sell as big as before, it makes money.

And Avex and SM are very big company's.
They have a lot of artists if they want to recoup money for their failure, or bad invests.
They make money all time.

Since it's BoA who produced this album means it's her who invested money on this, so the biggest part of sells will be in her pocket.
We must buy it :D


She definitely ain't poor but if this goes on, she can't keep fundin everythin & keep producin her albums or maybe I'm wrong. Now that I think abt it, she is really rich...
& right you are, the money from the sales of this album will all go to BoA which will be helpful... :lol:


yea.

this is the time when she needed support from us fans most. we wouldnt want to see her 9 years of hard work go down the drain.
Lets hope this album really can turn the tide for her.

But imo, the lack of promotion part that might be the cause of the US album failure might be because of SM internal problems back then that could not let the promotion continue.

all in all, BoA definitely needs all the support she can get now.. this is more than just downhill periods of someone music career.

BoA Hwaiting!!!!!!!!!


I'm with you Dave!!
BoA Hwaiting!!

#14 Cori

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Posted 02 February 2010 - 10:04 PM

The reason this is not news is because Danny (Danzo) is asumming. Although it gets him far because he is initially going some where with the situation, however, I can't find sources to back it up. Also, I would much rather sum something up into "Lets help BoA get to the top!" on the news then talk about how much money is in her checking account and break it down, that stuff if pretty personal.
I find it fine to talk about on the forums though. Some people dont know the ugliness of the music business and think that downloading music doesn't hurt the artists' pocket, but it does. This is why staff has actually thought of getting rid of the downloads section. But, im not going to sugar coat things right now people. If you haven't noticed, BoAjjang is going under with BoA. Simple as that. The download section is the only thing that is keeping this site affloat...sadly.
THIS is why we encourage purchasing the album. THIS is why we link yesasia and cdjapan so much though out BoAjjang.
BoA needs our help and we need BoA's help.
But the only people that can help both of us is the fans.

#15 mlyap7_boa

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Posted 02 February 2010 - 10:14 PM

^ I thought so too & I understand very well abt everythin you said...
Which is actually why I simply brought out the topic to let people know the situation now, it ain't pretty... :lol:




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