music industry
DESCRIPTION
Overview of the Music Industry - key focus on the four MajorsTRANSCRIPT
State of PlayWhat is the Music Industry like, who is in
control, what does the future hold?
Overview• US Recording Industry
• 3000+ Labels
• 30 000 new releases per year
• Centers of Production
• New York, LA and Nashville
• Primary Activities
• Talent acquisition
• Contractual arrangement with artists and managers
• Marketing an Promotion
• Enforcement of copyright
Overview
•Revenue
•Global Sales 18 billion (2008)
•US market 5 billion
•What do they sell?
•CDs, Vinyl, DVDs Downloads, Streams, Ringtones, Merchandise
MarketsRecorde
dMusic
Wholesaleto Distributors
RetailDirect to consumers
CDs/DVDs/ VinylOnline
Cellphones
LicensingFilmTV
RadioInternetCafes
The Labels• The Majors
• Major distribution, dominant the market
• Independents
• Lack ability of major distribution
• Sub-Labels and Imprints
• separate companies or division owned or distributed by the major labels
• Specialty Labels
• non traditional distribution, focus on non mainstream.
The Majors
• Majors control approx 75% of the world music, and 80-90% of the US market. All of these companies have non music divisions as well (TV/Magazines/Film.
• Universal (owned by Vivendi French based company)
• Sony Music Entertainment (US based subsidiary of Japanese company)
• Warner Music Group (US based, owned by Time Warner)
• EMI Music Group (British and in serious trouble 1.75 billion losses in 2009)
Vivendi/UniversalABBAAerosmithAkonAmy WinehouseBackstreet BoysBlack Eyed PeasBlink 182Bob MarleyThe CureChamillionaireCheryl Cole
EminemEnrique IglesiasFall Out BoysGeorge MichaelGreen DayHoobastankIncubusJames BluntJennifer LopezJohnny CashKanye West
Sony Music
Warner Music
EMI Music Group
Advantages of Major Labels
•Well Financed = better production, distribution, marketing and talent acquisition
•Can offer artists stability, prestige, advances, top production resources
Advantages of Independent labels•More creative – aim to find more
new talent, use creative tactics for marketing etc, build better brand loyalty
•Speed - not encumbered by long corporate approval process, can understand artists and trends faster
•Better regional connections
Activity
•Which record label would you like to publish your work and why. Give detailed reasons and compare to other labels (Majors, Independence, etc)
What is wrong in the Music Industry?