1. Issues if Media Ownership
US Recording Industries
3000+ labels
30000 new releases per year
Primary Activities
- Talent Acquisition through artist and repertoire
- Contractual arrangements with artists and managers
- Production, manufacture and distribution
- Marketing +promotion of recorded music
- Enforcements of copyright protection of sound recordings
- The US industries are primarily based in New York, L.A. and Nashville.
Recorded Music Industry Revenue
RECORDED
MUSIC
PRODUCTS: GLOBAL SALES:
- CD's - Downloads
- Vinyl - Streams
$18 billion
- DVD's - Ringtones US SALES:
- Merchandise
$5 billion
2. Recorded Music Channels
RECORDED
WHOLESALE:
MUSIC
- To distributors
LISENCING: RETAIL:
- Film
Direct to consumers
- T.V
- Bricks and Mortar (HMV)
- Radio
- Online
- Internet
- Cell Phones
- Background Music (in a shop)
RECORD LABEL TYPES:
The Majors: major distributors, dominant market share
Independents: Lacking in major distribution, can be large or small, “Major
Minors”
Sub-labels + Imprints: Separate companies or divisions owned or distributed
by major labels
Speciality Labels: Non-traditional distribution; focused on non-mainstream
genres (i.e. classical, gospel etc.)
3. THE MAJORS:
- Divisions of a multi-national conglomerate, which usually have other non-
media divisions.
- Majors control approx 70% of the world’s music market and 80-90% of the
US music market.
UNIVERSAL (Island def jam music / Polydor / Decca)
SONY MUSIC ENTERTAINMENT (Epic / RCA / Artista)
WARNER MUSIC GROUP (Asylum / BadBoy / Rhino)
MAJOR MUSIC COMPANY CORPRATE STRUCTURE
CORPRATE CONGLOMERATE
MUSIC GROUP MEDIA T.V. TELECOM
RECORD LABEL(s) DISTRIBUTION GAS, WATER, OTHER NON-
MUSIC PUBLISHING MEDIA ACTIVITES
COMPANY
ADVANTAGES OF:
MAJOR LABELS:-
Scale
Well financed; can afford better
Production
Distribution
Marketing
Talent acquisition
And sometimes; manufacturing
4. Industry perks: can offer artists....
Stability
Prestige
Advance
Top production
INDEPENTEND LABELS:-
Vision and Knowledge
More creative
- Can find more talent
- Can use creative development, marketing + financing tactic
- Can build better bend loyalty among fans
Speed
- Not encumbered by long corporate approval processes
- Can understand artists and trends faster.
RECORD LABEL: KEY ACTIVITIES
INTERNAL
- Talent development
- Artist product marketing
- Legal
- Providing service to the artist
EXTERNAL
- Sales and distribution
- Marketing and promotions
- Providing service to distributions and retailers
