Happy New Year to everyone! The year 2018 was more than I could expect – full of interesting encounters, new, accomplished and yet unfilled challenges. Although there has been a pleasant hurry here, I was able to keep two-week break for the end of this year – for writing. You don’t believe how great writing can be. When you get peace of mind to think about things, structure them on paper and let you insights take over your mind.
I started writing an article series on Christmas holidays. I’ll publish it next year. The first one of these deals with the new roles of management in the streaming era.
Lectures and also mentoring are coming at least as much as last year. So will legal and operational assignments. However, this time I would think I would be able to reserve time for writing as well. To be honest, I wasn’t prepared to have so much lectures or other book-related tasks.
One interesting thing about last year is especially in my mind. I have been able to meet face to face surprisingly number of readers. Thank you for your courage to talk. Nothing is better than getting hear from you. It makes writing and everything else more tangible. Thank you also for the good tips I get through the year.
One more thing. Lectures have received many inquiries. Wherever you go, or hear me giving lectures nearby, feel free to contact me. I try to get you on the spot.
About publications. This family will get a new member next year. The Essence of the Music Business – Strategy has been in proofread for some time and I get corrected version next spring. I would think the novelty interests you, just because of its perspective. Stay connected as before and let’s continue from this.
There are only a few lectures to give and then it is Christmas. This year has gone a long way and a lot has happened. I have some good news. The third part of ‘The Essence of the Music Business’ will be completed on time, though I haven’t yet decided the publication date. So many things affect it, and it is not entirely in my own hands.
I’m coming to mentoring students next spring in various academies. This allows me to write more articles. I am sorry that I have not been able to write as much as I would have liked. This has been entirely due to the timetable of this autumn. When you are teaching, you are in a completely different mode than what is required for writing. When the legal mandates that I am getting relatively regular on it are still being added, it is difficult to split up to two. Those obligations go ahead of everything else. On the other hand, it keeps up-to-date on all developments in the field. I’ve got a lot of new topics that I can write about.
Below is student’s photo taken from this week’s lectures at Seinäjoki University of Applied Sciences.
Hope you are all well! I’ll keep informing when something new will come up.
It’s been a while since I was writing here last. Autumn has gone a long way and small holiday has been kept. I had promised to return when the promotion of the second book is about to end. Now is the moment. A few things have left unnoticed. Throughout the autumn I have received a lot of questions about my books. I am really grateful for that. The most common question has been the extension. Yes – The Essence of the Music Business gets the third part. It is titled as Strategy.
Feedback has come to direct requests to write about the things that are not immediately noticeable. This usually means strategic perspectives. I decided in the summer to face that challenge. This again is an indication of why reader’s feedback is useful. I got a point of view that would not come to mind immediately. I would like to highlight my supporter – The Association of Finnish Non-fiction Writers. They granted me a scholarship for half-a-year, which enabled full concentration. This also enabled me to do lecturing work in support of writing work. So I got reflections also from live situations, not just from the reader feedback. This contributed to the difficulty of the structure of the book and the selection of content, but it certainly brought elements that would otherwise have been ignored.
The most comfortable thing in this operation was and is that the basics are presented in the first two parts. I got straight to the point. Writing after that insight was essentially the choice of matters to be included, which makes it possible to write more of the sequel when a change in the field gives it the cause. Every writer would be happy about this kind of situation. What I am trying to say is that all of your feedback is valuable. It is much possible that some of them will have their own chapter in my production.
The Essence of the Music Business – Strategy will be released in spring or autumn 2019 – depending entirely on the completeness of proof-reading. I am pretty sure that this book is worth waiting for. When I was writing it, I had such insights that had not come to mind before. I got them all on the paper.
We had an interesting lecture on the strategic use of social media and the artist’s story at HEO on 23th of April. The first public lecture after the book release – yes it feels good again. The summer will be in the construction of a new book’s promotion. The Essence of the Music Business – Philosophy is scheduled for release in August. Lectures have been booked for the autumn season and more is coming. Some of these lectures are open to the public and will be further informed later.
There have been some inquiries whether I am doing any legal assignments. The answer is yes. The contacts are more than desirable – in other matters as well. I wish a joyful spring for everyone.
I want to tell you how I choose the contents of my books. There is a lot of literature on this subject, some of which are converging. It seems unnecessary to start dealing with these things with a great devotion because these subjects are already so well written. I leave some of the essential things to a lesser extent, but take the matter out. Instead, I try to bring my books to the situations where the most common problems occur. Surprisingly yes, they are pretty simple. We are dealing with the gap between theory and practice. It is often a question about experience and its amount. A few things can speak expertly, unless one has ever had one.
It can have an extensive knowledge of the industry, but ‘virginity’ is inscribed. This knowledge is not yet tested in practice. In accordance with this assumption, I try to bring readers to the situations where they most likely to end up with. It is my intention to confirm the information already available to them, but also to bring out the perspectives that are not immediately imminent.
Such a bi-directional rearrangement will help less experienced to get the basic knowledge of what you should at least know. On the other hand, it helps the more experienced to strengthen their own opinions on their own solutions. Behind the lines is therefore hidden a lot. I believe in learning by doing. Whenever one or two alarm clocks are entered in the text as it becomes appropriate, the reader will be able to evaluate their progress also in a busy schedule. That’s what this is all about.
It is completely different to do something for the first time as doing it a tenth time. It is also a different matter to be self-involved as to track the event from the page. In general, it is relatively easy to answer how a bid should be addressed. It sees it from the general level quickly, which conditions are appropriate and which ones do not. But when the same offer comes in a situation where you are responsible, it is not that easy. In such situation it will have to take a stand on the meaning of the agreement in many different dimensions. It will have to think about what the artist can do if she or he does not agree the offer. It will have to consider the consequences that will arise if one or more conditions are changed. It also has to consider the option of accepting an agreement as such, even if it may be possible for the artist to get a better offer next month. When your own contribution and related remuneration are added to calculation, we are already dealing with quite a large equation.
One task of the literature on this subject is to highlight the alternatives that would be available in that situation. However, it is not always advisable to copy all the solutions from the books, but to make your own applications. I try to include my books with the theme that enables the reader to reach essential points. Since there is so much information available about the subject, it is so easy to lose the story. There is no single correct decision, but every decision will have to take the responsibility. In some circumstances it may well be sensible to accept an unreasonably impressive condition if the contract otherwise balances this. In principle, however, it is not sensitive to act against the most influential laws in the field, such as transferring economic rights in the early stages of the career in exchange of having a bigger budget for the first album.
I usually highlight the situations that have repeated over years on several occasions. Even though the technology develops and, as such, issues change shape, it is often the same concern. From the side of the artist, they almost invariably return to their own freedom of choice and how to maintain it in a sensitive level. The artist has a dispositive power due to copyright for their own output. When it is meant to acquire a living, it is often necessary to transfer these rights. In order to succeed in that task, those rights must also allow to be engaged by other parties.
On the other hand, professional groups and businesses supporting the artist must be able to secure their share in the whole. Their rights, due to intellectual property rights, takes place behind the artist’s right. Since many sources of income in the industry allow accumulation of passiveincome, it is clear that rewards will be distributed in the long-term and with a delay. Well, intermediaries may change and often change during this progress. Here we come to the heart of the difficult matter. How long and how much the artist’s supportive action is relevant to justify the contribution from the artist’s rewards. Secondly, it is about the decision-making power as to how the related catalog should be organized if the parties are no longer in contact with each other.
Films provide a good and understandable example of this. Movie producers and its actors may set up a separate company for one movie only. When doing this movie, they work closely together. After the release and promotion, everyone continue their lives and work in other contexts. All the money produced by the film to its creators will be distributed in proportion to the shares that the parties have defined in their mutual agreement.
Almost every book of mine reflects on this problematic, at least in some respects. I believe that only internally strong organizations will endure a patina of time. If it is clear in advance that this will not happen, this should also be reflected in the artist’s actions and plans. Knowing to lock at the right time and knowing to keep the options open is a difficult equation to implement. I try to encourage everyone to make their own position first, but also to listen to more experienced people. In the next book, the same subject will be presented in another perspective. However, I will endeavor to take account of the issues already discussed when presenting a new one.
Here is the article on the transferred rights and contract types that I promised. During this holiday, I had just enough time to finish the text. This article continues in the next section with passive income and how the different contract types and transfer of rights are economically linked to it.
The artist has often no choice but to transfer some of the rights that are originally belonged to them in the pursuit of their business goals. In the implementation and organization of their business, the artist management (whether or not outsourced) is a responsible player in relation to granting the rights, or licensing of them. If the artist is not thinking to handle everything themselves, is the artist most likely to deal at least with the record companies, music publishers and booking agencies.
For the sake of clarity, the artists also work effectively in other relevant business areas, such as new media (ringtones etc.), sponsorship, and merchandising. However, in these business areas, there is no such solid linkage or great influence on the core business of the artist that it would require a great attention in this article.
This article is about assigning, granting or transferring the rights which term it then wants to use. The essential aspect of this action is its impact on the artist’s private life, decision-making power and economic conditions. Each transfer of rights restricts the artist’s position to some extent. The artist, though, should receive a financial compensation from certain admission. The transfer of rights is an important trading instrument for implementing the artist’s business and career plans. What they are searching for these interest groups is often capital, infrastructure and strategic know-how.
The artist management’s mission is to create and develop the artist’s business so that it serves the needs and the goals of the artist. The artist’s merchandise for all this is the attraction of one’s own pre-essence, the performances both live and a recording, and of course the music behind the performances. All of these activities are associated with the copyright dimension. This means that the factors of production require the artist’s consent to allow the manufacture of products. It is a completely an articulate matter, in which all the music business areas the artist has activities and aspirations.
Because the success of the artist cannot be predicted very well, it must be careful when it comes to assignment of rights. The content, strength, or the scope of these granted rights is of great importance in assessing the motives and commitment of each interest group or a partner that the artist would like to have. To counterbalance the transfer of rights, it would be good to have a margin, something in return. The transfer of rights, thus, must never be free of charge. The artist’s business plan and current popularity is the source that tells you what rights are relevant and which should be excluded. The main rule could be that no rights should be granted for any kind of void action, just as an option without the implementers.
The rights to be transferred are either fixed term, indefinite or permanent. The most intense right relates to music publishing, whose value as merchandise is superfluous to cover up. The right of the publisher is identical to that of the author (song-writer) – the copyright will continue to protect the compositions at least for seventy years beyond the life of the author. The publisher’s right is not an original as the author’s, but a derivative. It is generated by the correctly signed music publishing contract. This agreement transfers to the music publisher significant rights – originally belonged to the authors themselves. The contract does not restrict the artist, therefore, only for the duration, but also in fact. In order to be justified, the artist has to in some way make sure that the publisher makes its own contribution to the fact that the value of the relevant catalog increases as substantively as in the case of income streams. Otherwise the music publishing agreement is difficult to justify. The music publishing agreement entitles the publisher to as much as 50 percent of the copyright-related revenue of the songs. It should also be noted that the termination of the music publishing contract does not end the rights of the publisher to those songs that have been included as a part of the contract during the term of the agreement. Even if the active part of the parties’ agreement is terminated, the relevant rights of the publisher will remain in force.
A similar permanent right is also associated with the recording agreements. In these contexts, however, the right is far more limited and does not restrict the artist’s freedom of action to the same extent. In these contexts, the permanent rights relate to the phonograms and other recorded material that the artist has recorded to the company during the term of the contract. The record company obtains, under the terms of the agreement, and effectively by acting as a financial producer of the phonogram, the status of the producer which entitles the producer`s right to the legitimate period of protection. The record company usually receives the decision-making power over the phonogram as well as the music publisher gets with the music publishing contract.
This, however, affects the artist’s circumstances mainly through the possible non-competition clause of the agreement. In general, the artist is required not to record any songs that the artist has recorded for the company during the validity of the recording contract. The protection period is, according to established practice, five years. So nothing prevents the artist from recording the same tracks as in new versions, as long as five years have elapsed since the end of the contract. Such a ban aims at enabling the company to obtain a motivational exploitation right of the financial investment they have made. In this case, the artist does not have the same financial impact as in the case of the music publishing agreement. The company is required to pay royalty after the term of the contract as defined in the contract. The artist will not be left without compensation during the validity of this restriction. In the music publishing contract, the publisher does not perform anything for the artist, but becomes a part of the copyright revenue generated by the songs of the artist.
In two of the above examples, we are dealing with two fundamental concepts, a song and its performance. These two concepts must never be confused with each other. This is also the point where we get to the topic of this article. The term of the music publishing contract is not a synonymous for the terminology of the recording contract. Yet these two things are closely related. In case where the music publishing agreement concerns songs, the recording contract is in connection with the performance. The object of protection is therefore different aspects of the same thing. For those artists, who also perform the music they have made, this division is extremely important.
In addition to permanent rights, the artist transfers also fixed-term rights in order to implement their business plan. For example, the booking agreement gives the agency a right to convey performances to the extent specified in the contract. As has already been mentioned, the transfer of rights is often long-term, geographically broad and exclusive. As we can see, the artist has to deal with the contracts in several interconnected business areas at the same time. This uncertain situation will cause a headache while networking of contracts. The artist’s business areas are closely tied together. If some of the sub-areas do not function properly, it has effects on other the areas as well. It is therefore reasonable to have different exits in view of this opportunity. The artist is certainly not happy with the situation where the performances would be and records will sell, but the performances will not be on the calendar for some reason or another. If the situation is that the artist cannot match the current demand or demand is not even attempted to create, the artist will not want to adhere to a contract that, through exclusivity, prevents them from acquiring performances elsewhere. The same applies to other business areas’ contracts. Each agreement should have a future exit, if the parties intensify so that co-operation is no longer possible, or cooperation simply does not work. This is an expression of why each transfer of rights should be conditional, if only possible.
When designing the artist’s business plan, the risk management is extremely important. Where the business plan focuses on the maintenance and improvement of economic activity or earnings, the agreements are more concerned with the possibility that things will not go as planned. Therefore, mixed-type contracts should be avoided. It is not uncommon for the contracts to be negotiated enthusiastic about designing co-operation over the traditional business bargains. Where the artist’s interest groups (record companies, music publishers, booking agencies, external financiers, merchandising holders etc.) have a willingness to participate in the artist’s business in other areas than which is their heartland of competence, the artist may have a need to engage in motivated partners in all relevant areas. In an ideal situation, everything would remain in the hands of a competent, committed and trusted group, and there would be no disagreement between people over time. But this is rarely the case. It requires no more than one key player to change the organization, industry, or retirement and the whole operation gets a whole new direction.
Everything in the midst of the hurry easily forgets what this is all about. Due to the copyright dimension, it is about the transferring the rights of the artist and the consideration paid to the artist for these assignments. Each business area needs to be organized separately, even if the same operators take care of them. Every business area must also considerate as a separate unit. They must not be dependent on each other because the artist does not always grant equal rights to all their business areas or the reciprocal obligations are not at the same level.
Respect for the contract-type boundaries will come out well in the following example. The parties can make a very detailed contribution to the content of their cooperation. In such a situation, the parties will almost certainly have to resort to the basis and structure of a type of the contract that the industry is familiar with. If the agreement with the terms of the agreement resembles a recording contract, it will automatically become an impression of the exclusive right that is usually dealt with in that kind of contract. This makes it easy to imagine that the agreement will in other respects also be exclusive and constitutional. There is nothing wrong with this, if that really is the case. But if the parties have meant something else, it is not worth considering such an agreement. If the agreement refers to music publishing-related activities, it is already in dangerous waters. Even if the copyright is not in principle possible to transfer with the tacit approval, but with the express consent, it is still a risk. Terms of the music publishing agreement in a recording contract are incorrectly used in full code red. Any suggestion of the music publishing should not be conveyed to the impression that the artist, while entering into some agreement, also includes the music publishing rights. This is one more reason why each business are should have a separate agreement and a separate exit, says the business plan between the parties then whatever.
When you grant the rights originally belonging to you, do not grant them more broadly than the relevant business plan requires. Never give up rights unconditionally. If the promised performance of the counter party falls short, you must have a chance to react. With the utmost care you should be with the music publishing contracts, as they are final. Each song that is considered to be a part of the agreement under the music publishing agreement will give the publisher the status of the publisher and generally entitles them to administrate the songs and to receive 50 percent of the copyrighted turnover.
No matter how enthusiastic you are from a new partner, do not mix plans and agreements with each other. The terminology that goes beyond each business areas is to be critically addressed. This avoids imaginations that could infer that the rights would be extended more broadly than the original purpose. The same applies to the options. To be justified, the benefit of the option to the artist should be in some way realistic. If the artist agrees on an option that goes beyond the resources and willingness of the partner, the artist’s career in this regard may be stuck. Indeed, without the consent of the existing option-holder, the artist is unable to progress in these areas with potential other partners if the option is exclusive.
Mixed-type contracts can also pose problems in very good relationships. The management agreement between the parties may work flawlessly, but the prospective cooperation in production precipitates. If the agreement is principally in the exclusive domain, the productive parts of it may also be considered as exclusive. In such an imbalance, the management party hardly hesitates to withdraw from the production side of the plot, but if the disputes for some reason will arise, the contract and its contents will certainly have to interpret. Although some of the examples in this article are far-fetched, it is sensitive to keep contracts apart – even for the own peace of mind. When the unadjusted parts of any cooperation are easily removed, and no such confusion prevents going, it is easier to plan future.
The purpose of this article is not to comment on how the artist should organize their background organization and business. The purpose of this article is to clarify the significance and motives of granting rights. It is also important to understand that they not identical in all areas of activity. The artist’s business plan lives with a changing popularity. A joint business plan and the drawn up agreements should safeguard the position of all the involved so that it is able to focus on the essentials. If the parties have chosen a cooperating model in which, for example, the other party to the contract carries out both the artist management and the actual booking, each task has to be the subject of a different contract. If the management decides at some point to abandon the booking, or booking the management, this part is will be easier to unload and continue on what the remaining cooperation is going to be. If the artist’s record company and the music publisher are the same, then these issues should not be agreed upon in one agreement only. If such a crazysituation has happened, a special attention must be paid to the assignment and the determination of publishing rights. Particular attention must be paid to the ability of artist to change the record company or terminate the agreement. If the publishing rights are tied to the recording agreement between the parties, the publishing part of the agreement should also be terminated to that extent. Consequently, only those artist’s songs that are recorded by the artist during the validity of the contract could then include the publishing right. All new songs from the artist are no longer included in the same catalog. If the artist has entered into a house-writing agreement in connection with the recording contract, extends such a right to any material that the artist has created during the term of the recording contract. Where the publishing right of the previous example is tied to the albums actually recorded by the artist and their content, such a house-writing element makes it a vaguely challenging combination. At the end of the contract, it is difficult to decide which of the songs are covered by the publishing right or whether they are all included at all.
The main rule is that if the rights are to be transferred, they should be granted as narrowly as possible. These rights can always be expanded in the future, if there is a reason to do so. However, the artist is the party who needs proof that there is economic justification for each transfer of rights. The other half of the artist’s freedom is the exits. Although the music industry contracts are often long-lasting and include options, there must always be exits against them. The artist has to get rid of the contracts if the business plans behind them do not correspond to the reality.
When we are approaching the music industry as a business, we are dealing with quite an ingenious revenue generation model and logic. The strong role of the copyright and meaning of a ’footwork’ reach a whole different level than in many other branches. This fact easily fades out the true essence of it all what comes to an unacquainted viewer. The idea behind the music business is found beneath the surface. Instead of monitoring by eye, the focus should put more into tactics and strategies behind them – and even more into the core intentions that each operator truly is aiming for. The idea of everything is to get produced material along with immaterial elements into a profitable form for consumers to listen and watch.
People consume products of music for many purposes and reasons. More there is possibilities to enjoy the music – more roaring each prospective action may turn to. Music industry is known of its ability and willingness to drive new technology in to its own systems. Every new invention enables a new way to listen music.
The production of the master tape on the technical side is a one-time expense. This makes it possible for a licensee to produce music into different formats or products for sale. Booking studio, hire of personnel during the session and pre-production is a ’courier service’ with an intention to record a specific amount of performances for the album to be released in future. However, the production cannot be exploited without the relevant copyright assignments.
So the twist comes along with the copyrights and other immaterial property rights. At that point it is good to make a distinction between one-time expenses (cost-items of physical recordings) and recurring expenses (authorization of exploitation) while building a business around it. Compensation for these rights-transferring agreements is the cost-item which entitles the exploitation in a granted territory to the extent that is specified in the agreement. All commercial use of music requires a notification of copyrights in order to be exploited and used. This claim is usually regarded in royalties and other copyright compensations to the relevant rights-holders against which the right-holders grant all the respective rights and licenses. It is all natural that the existence of copyrights indirectly reduces the income of every manufacturer and operator who wants to exploit the music in itself or the music as in part of their own commercial operations. For the industry that share is an important cash-flow-channel, a reason to produce music.
Footwork, in turn, that non-profitable activity, is something that should not be neglected. Footwork is something that starts all. It is a way to get in. Everyone has heard about connecting and its meaning for career. This is one of the most misunderstood issues in the whole branch. It is – as usually associated – not ’connecting’ at all. Connections are the consequence. They happen as a result while working together for the joint destination. It all starts from the little circle and bubble grows bigger at the same time the operative environment gets larger. There are no short cuts on building your network. Meeting people at the parties and in other similar events is not so meaningful as people often tend to think. Initial meaning for networking is to get know each other via actual work, activity or common business, not only in Person. The ultimate goal for beginners is to be able to demonstrate their abilities in places where decisions are made and where the potential of one’s own talent can be more widely noticed. While working in that stage, it is easier to develop and learn. This is what the word footwork basically means – making itself, the matter and production public. Same applies to business. True connections are always earned in a way that everyone can see that. Usually the release is the moment that fulfills said requirement. Impartial feedback and approval of the audience and industry is what this is all about.
If every accomplished session is taken as an acquired connection, each release is then accounted as an existing resource. Discography or back-catalog is often comparable to money. Same happens with every accomplished and notified business. It is all about the release and results. From that moment it is not possible take that achievement away. After the release also the vital copyrights will be activated and all the potential input can be channeled to its makers in a way how the rights are originally granted, transferred or assigned. It is difficult to engage in sales without the production to the public.
The idea of the music business is to get the immaterial substance into a physical, profitable form. It is important to make a distinction between direct sales and indirect intention. Direct sales occur while money transfers from hand to hand and sales online with the physical downloadable package or streaming. Indirect intentions are the other source of income. It is more of a result of the public play and presentation for commercial purposes. It doesn’t matter if the sales or use happen directly or indirectly. This distinction is made to make it easier to understand the matter. It is the copyrights and its related rights which have an elementary role in pricing. The physical production of the record with the relevant prints is not necessarily a very expensive operation. As the technology is already at the high level, making music available to the public is also cheaper and easier than ever before.
Artist’s total income or turnover is a combination that is collected from the different sources. Availability, the other side of the coin, is dependent on how largely an artist and its production has been distributed all over and made available for the public. The artist receive incomes in royalties from the album and online sales, payments from their live performances and merchandising in their every available forms but also strict money from the advertisers and sponsors who wants to use their name, picture, music, physical presence, likelihood and success identified to the products and brands they represent. The artist can also generate revenue from the new media such as ringtones or synchronizing their music with the movies
Some artists, as we already know, also write the songs they perform as in whole or partly. Because of this they are entitled to receive payments while that material is played public. They are also entitled to obtain copyrighted mechanical fees – if someone wants to record the performances from those songs.
At its most authentic form music industry introduces itself when artist is having a show in front of the audience. Decreasing selling rates are not an indicator of a dying industry. Actually development and reality is heading to a whole other direction, the result is made from a growing number of sources with a less effort than before. Music as a phenomenon breaks customary barriers where ever it is possible. Origin of the song and its performer have no longer same role it used to have. Nowadays there are no requirements to born or move to the United States to become a world-known artist, manager or producer. At the same time when then technology reduces the margins, distribution becomes more easy and cheaper. That progress is a double-edged sword. Some of the artists benefit of this progress and others don’t. The fact is, however, that none of this changes the essence of the music business. Supply and demand goes the same way it has done for last 50 years. There has just become new ways and technologies to consume music. It is all about how the fans and listeners want to hear it. This is the request for which industry have to answer.
Singular songwriters are the production units of this branch. These operators by themselves or jointly bring forth the substance for the performers to record or to present it live. Technically production is provided by the composers, lyricists, arrangers, producers and the engineers. They create the facilities for the performing artists. Their asset gives the form to the substance in which it is possible to enjoy. At its most reduced form that outcome is provided by the performing artist while they are giving live sessions in front of the audience.
When the artists have made themselves known with the footwork in the contexts they have sought and organized their music to the world so that the most of the distribution channels make their music available to the public, we are dealing with the most significant level of artistry – the enjoyment of passive income. Turnover and its magnitude are not relevant here. It is important for the new material to be constantly released without any major effort. What it ultimately generates, depends on the reception of the audience.