1. Discuss the issues raised by
media ownership in the
production and exchange of
media texts in the music
industry?

2. Institutions and Audiences –
what you must know
• PRODUCTION (how is music made using
technology – “means of production”)
• DISTRIBUTION platforms (proliferation of formats
– CD, radio, mobile phone, MP3, computer, TV etc)
• MARKETING (advertising, PR – role of A&R)
• EXCHANGE (downloading, CD shops, online
shops like Amazon)
• At local, national and international level
• As well as British audiences’ reception and
consumption (e.g. Hertfordshire data)

3. Consumer has more control
Media is more “democratised” but
“big 4” still have huge power
Who “owns” music – the artist or
the consumer?

4. • Pros and cons of illegal downloading
• Pros and cons of the “big 4”
• In any music essay you must include:
– Marxist theory
– A paragraph on EMI (or XL)
– Detailed reference to more than one musical
artist (e.g. Master Shortie, Lily Allen, Koopa,
Justin Bieber, Rihanna, Rebecca Black, Arctic
Monkeys…)

5. “It’s a trend…about a new
democracy of ideas and
information, about changing
notions of authority, about the
releasing of individual
creativity”
Alan Rusbridger, Editor-in-chief of The Guardian

6. Downloading
• History of (e.g. Napster….illegal vs legal (Apple
dominating market)
• Stats (your own, from BPI, Hertforshire etc) – how many
download, how much does this cost the industry….
• What effect has it had? Reduced power of the “big 4”
(use EMI as a case study) – given more control to
consumer (Marx) – but “big 4” still dominant
• Is it wrong? Quote Billy Bragg (music industry healthy,
just the “big 4” who are suffering) from Panorama?
• Can it be stopped (Digital Economy Bill – is it fair that
parents are punished for their children downloading)?
• INCLUDE EXAMPLES FROM YOUR OWN
EXPERIENCE

7. COUNTER
ARGUMENTS
1. The artist does not get
paid for his or her
work.
2. Quality of music
reproduction lower.
3. Not “tangible” (e.g.
don’t get artwork).
4. Weakens record
labels as have less
money to put into
finding new artists.
5. Too much musical
output – quantity over
quality.
6. Opens your computer
up to viruses.
AGAINST
1. The artist makes money in other
ways – most money goes to the
record label anyway.
2. It’s free!
3. Artwork (and lyrics) can be
downloaded.
4. Music choice is greater than ever
– artists are just using new
technology to bypass the record
labels, which gives them more
creative freedom.
5. More choice is a good thing and
we have easy access!
6. So do lots of other internet based
systems.

8. Multi –nationals .. A reminder.
• Large profits:
• ‘The big four’ accounted for 71.7% of the global retail music sales:
• Universal Music Group — 25.5%
• Sony BMG Music Entertainment — 21.5%
• EMI Group — 13.4%
• Warner Music Group — 11.3%
• independent labels — 28.4%

9. Other reasons for multi-national
ownership of the music industry.
• Experimental: They can afford to experiment with new ideas,
genres, artists. Mainly because they buy out smaller independent
companies.
• Competition: can’t afford to be left behind and be taken over.
• Takeovers: Can afford to take over any direct competitors (e.g..
Sony and Bertelsmann)
• Public perceptions and image: can develop a ‘brand loyalty’.

10. Criticisms of multi national ownership
• Creates Monopolies.
• When a single media organisation dominates production and distribution in a particular industry. The
music industry is controlled by the ‘big four’.
• Exploits the consumer.
• For many years the music industry was accused of exploiting the consumer particularly over the price
of CDs. In the modern music consumer world, music can be obtained digitally for free, forcing the
music industry to create on line music stores.
• Is culturally imperialistic.
• The idea that one culture can dominate and dictate to other cultures. This can be said of the music
industry whereby in recent years US influenced music controls and dictates the market.
• E.g: Estelle ‘American Boy’
• Doesn’t allow smaller independent media companies to flourish.
• The Smaller independent companies cannot compete with the big four, many of whom end up being
bought out.
• Suppresses ‘creative freedom’ for the artists.
• Many artists have complained that their record label dictates their creative output, not giving them the
freedom to make the music they want to make. This is particularly true in the mainstream pop market
where ‘the brand’ is very important.

11. Support for the multi nationals
• Creates more consumer choice.
• Monopolies have more money and greater power than smaller companies and are
therefore able to offer more.
• Established brands are maintained as the ‘status quo’.
• Customers have confidence in well known brands
• Saves smaller labels from going under.
• Investment from large companies can save small companies who cannot afford to
compete.
• Creates advancements in media technology. A number of smaller companies merging
under the one can afford to become more technologically advanced.

12. • In pairs or groups of 3, research any
recent music news that you think you
could reference in your exam:
– Artist?
– Record label?
• Present back to the group at the end of
the lesson.

13. Defining “Institutions”
• Who are “institutions”? The Record Industry as a whole,
which includes:
– Record labels (e.g. EMI)
– Retail outlets (e.g. HMV)
– Internet sites (e.g. youtube, spotify)
– Media (e.g. TV)
– Technology providers (e.g. Apple)
– Government too (e.g. Digital Economy Bill)

14. EMI
-EMI is one of the world's leading music companies, home to
some of the most successful and best known recording artists,
songwriters and music catalogues.
-EMI has two operational divisions - EMI Music and EMI Music
Publishing.
-- EMI Music deals with the artists and the promotion of music
-EMI Publishing looks after the rights of songs. Every time a
song is played on radio or used on TV for example the
publishing company ensures that the artist gets paid. This is a
successful source of income for the company and they look
after acts on other record labels as well as their own.
-EMI is the only privately owned major music company

15. EMI Record Companies Owned
-EMI have bought out and also own lots of other record
companies:

16. EMI Artists

17. History – Key Developments
-The Electric and Musical Industries Ltd formed in March 1931 from the
merger of the UK Columbia Graphophone Company and the
Gramophone Company, famous at the time for its record label
"His Master's Voice". From its beginning, the company was involved in both
the manufacture of recording and playback equipment and the provision of
music to play on its machines
-In 1931, the year the company was formed, it opened the legendary
recording studios at Abbey Road, London.
-EMI released its first LPs in 1952 and its first stereophonic recordings in
1955 (first on reel-to-reel tape and then LPs, beginning in 1958).

18. History – Key Developments
-During the late 1950s, 1960s and early 1970s, the company
enjoyed huge success. The groups and solo artists signed to
EMI and its subsidiary labels -- including Parlophone, HMV,
Columbia Graphophone and Capitol Records -- made EMI the
best-known and most successful recording company in the
world at that time, with a roster that included scores of major
pop acts of the period including the Beatles, the Beach Boys,
the Hollies, Cilla Black and Pink Floyd.

19. History – Key Developments
-Pop star Robbie Williams signed a 6 album deal in
2002 paying him over £80 million ($157 million),
which was not only the biggest recording contract in
British music history, but the second biggest in music
history
-In May 2006, EMI attempted to buy
Warner Music Group, which would have reduced the
world's four largest record companies (Big Four) to
three; however, the bid was rejected

20. EMI and New Media
Technology
- 1993: EMI Music's first websites went live
-1998: EMI streamed the first complete album over the internet,
Mezzanine by Massive Attack.
-1999: EMI was the first company to release a digital album
download, David Bowie's …Hours.
-2001: EMI launched the first internet video single.
-2007: EMI became the first major music company to make its

21. What is the government doing to
combat illegal downloading?
• Digital Economy Bill to help “protect” music
artists – comes into effect last year but is under
review because it could “harm citizens”
• Net Police to cut people off or limit the online
service of families caught – if this fair and how
will people react to it?
• Is it fair to blame the an industry (the internet)
that is arguably keeping the music industry
alive?
– Look at BBC blog commentary and Panorama extract
• http://news.bbc.co.uk/panorama/hi/front_page/newsid_8570000/8570394.stm
• http://www.bbc.co.uk/iplayer/episode/b00rl4dl/Panorama_Are_the_Net_Police_Comi
ng_for_You/

22. Extended Conclusion
Illegal downloading, fuelled largely by a young audience,
has contributed to falling music sales, affecting the
financial performance of record labels and outlets
especially. The government and music industry have
responded, trying either to stop illegal downloading or
develop alternative revenue streams to it by targeting
young audiences. These have had mixed success – it
seems that illegal downloading will continue to remain
popular with young people. Illegal downloading, as well
as the rapid development of convergence technology,
has given consumers much more control over what
music they consume and how they consume it; it has
also meant that they increasingly have the ability to
become, in Marxist terms, the producers, marketers and
distributers of music with more control over the dominant
ideology. Despite this power shift, old hierarchies remain
largely in place – the big four record companies continue
to dominate musical output. Creativity has therefore,
despite the hype, not necessarily been democratised.