StarterStarter

If 14-25 year olds are no longer If 14-25 year olds are no longer buying music then why do the buying music then why do the BRIT awards still take place?BRIT awards still take place?

StarterStarter

Re- Read the challenge of Illegal Re- Read the challenge of Illegal Free pages form the BPI booklet.Free pages form the BPI booklet.

Discuss findings with your partner.Discuss findings with your partner.

Panorama- The Net Police

Watch this BBC Panorama Watch this BBC Panorama documentary’ on downloading documentary’ on downloading ‘Are the Net Police Coming’.‘Are the Net Police Coming’.

https://www.youtube.com/watch?v=gwoPTYTLcRghttps://www.youtube.com/watch?v=gwoPTYTLcRg

Make notes on:Make notes on: The impact on consumersThe impact on consumers The impact on the industryThe impact on the industry The impact on artistsThe impact on artists

The Digital Economy Bill- 2009The Digital Economy Bill- 2009

Pros:Pros: Decrease in illegal file-sharing.Decrease in illegal file-sharing. Long run more money into the industry.Long run more money into the industry.

Cons:Cons: Infringement of civil liberties. Not all IPs got Infringement of civil liberties. Not all IPs got

involved- loss of internet freedom.involved- loss of internet freedom. Criminalisation of Internet use.Criminalisation of Internet use.

Conglomerate ownership of musicConglomerate ownership of music

Aims: Aims: To examine the pros and cons of To examine the pros and cons of conglomerate ownership of the industry.conglomerate ownership of the industry.

Music Industry-Music Industry-Traditional Business ModelTraditional Business Model

Demo/ discovered playing live.Demo/ discovered playing live. New artist gets signed.New artist gets signed. Money is invested in promoting them- music Money is invested in promoting them- music

videos, radio airplay etc.videos, radio airplay etc. Song is play listed on radio and music TV Song is play listed on radio and music TV

channels.channels. Song has be made available via music retailers Song has be made available via music retailers

(HMV etc).(HMV etc). Revenue is distributed between record Revenue is distributed between record

company, artist, distributor/manufacturer company, artist, distributor/manufacturer and retailer.and retailer.

Who are the significant companies Who are the significant companies in the music industry?in the music industry?

Think: Think: What do these companies have in What do these companies have in common?common?

What is a conglomerate?What is a conglomerate?

They are huge established companies that produce a variety They are huge established companies that produce a variety of goods and services across different global territories.of goods and services across different global territories.

As a multi-national they employ thousands of people and As a multi-national they employ thousands of people and have huge marketing and advertising budgets.have huge marketing and advertising budgets.

Multi- nationals sole aim is to make lots of money and to get Multi- nationals sole aim is to make lots of money and to get BIGGER. They do this by ruthlessly buying out the opposition!BIGGER. They do this by ruthlessly buying out the opposition!

- They are mostly US owned.- They are mostly US owned.

Multi –nationals oligopolies in music.Multi –nationals oligopolies in music.

What is an oligopoly?What is an oligopoly?

‘‘The big 3’ account for 71.7% of the global retail music sales:The big 3’ account for 71.7% of the global retail music sales:

Universal Music Group — 39.5% Universal Music Group — 39.5% Sony Music Entertainment — 35.9% (incl EMI)Sony Music Entertainment — 35.9% (incl EMI) Warner Music Group — 11.3% Warner Music Group — 11.3% Independent labels — 28.4% Independent labels — 28.4%

Discuss: Discuss: What are the pros and What are the pros and cons of multi national cons of multi national

conglomerates ownership of the conglomerates ownership of the music industry ?music industry ?

Multi nationals- prosMulti nationals- pros Creates more consumer choiceCreates more consumer choice. . Monopolies have more money and greater power than Monopolies have more money and greater power than

smaller companies and are therefore able to offer more.smaller companies and are therefore able to offer more.

Established brands are maintained.Established brands are maintained. Customers have confidence in well known brands.Customers have confidence in well known brands.

Saves smaller labels from going under. Saves smaller labels from going under. Investment from large companies can save small companies Investment from large companies can save small companies

who cannot afford to compete.who cannot afford to compete.

Creates advancements in media technologyCreates advancements in media technology. . A number of smaller companies merging under the one can A number of smaller companies merging under the one can

afford to become more technologically advanced.afford to become more technologically advanced.

Multi nationals-consMulti nationals-cons Create Monopolies.Create Monopolies. When a single media organisation dominates production and When a single media organisation dominates production and

distribution in a particular industry. The music industry is distribution in a particular industry. The music industry is controlled by the ‘big four’.controlled by the ‘big four’.

Exploits the consumer.Exploits the consumer. For many years the music industry was accused of exploiting For many years the music industry was accused of exploiting

the consumer particularly over the price of CDs. In the modern the consumer particularly over the price of CDs. In the modern music consumer world, music can be obtained digitally for free, music consumer world, music can be obtained digitally for free, forcing the music industry to create on line music stores.forcing the music industry to create on line music stores.

• Doesn’t allow smaller independent media companies to flourish.Doesn’t allow smaller independent media companies to flourish.• The Smaller independent companies cannot compete with the The Smaller independent companies cannot compete with the

big four, many of whom end up being bought out. big four, many of whom end up being bought out.

• Suppresses ‘creative freedom’ for the artists.Suppresses ‘creative freedom’ for the artists.• Many artists have complained that their record label dictates Many artists have complained that their record label dictates

their creative output, not giving them the freedom to make the their creative output, not giving them the freedom to make the music they want to make. This is particularly true in the music they want to make. This is particularly true in the mainstream pop market where ‘the brand’ is very important.mainstream pop market where ‘the brand’ is very important.

Downloading V the multi-nationalsDownloading V the multi-nationals

Watch this discussion with Watch this discussion with John Kennedy the John Kennedy the chief executive of the BPI.chief executive of the BPI.

http://www.youtube.com/watch?v=upmprBC2HiMhttp://www.youtube.com/watch?v=upmprBC2HiM Make notes.Make notes.

Downloading and the music industryDownloading and the music industry

Assessment: Assessment: How has the music market in the UK How has the music market in the UK

changed in the last few years? changed in the last few years?

Write 500 words minimum in your analysis.Write 500 words minimum in your analysis.

Your class notes.Your class notes. Include data points from the BPI findings.Include data points from the BPI findings. Your in class survey and other research data.Your in class survey and other research data. Notes from class including documentaries ( The Notes from class including documentaries ( The

Sound of Song, Net Police, Downloaded) and Sound of Song, Net Police, Downloaded) and interview with John Kennedy.interview with John Kennedy.

Research

Research: Find an article on one of Research: Find an article on one of the big 3 music conglomerates.the big 3 music conglomerates.

Summarise it into at least 6 points.Summarise it into at least 6 points.

TaskTask In groups put yourself in the perspective In groups put yourself in the perspective

of a record company/multi national CEO.of a record company/multi national CEO. You are being asked by the government to You are being asked by the government to

generate a possible solution to the issue of generate a possible solution to the issue of illegal downloading.illegal downloading.

Consider:Consider: The benefits for the consumer.The benefits for the consumer. How the artist will benefit.How the artist will benefit. The practicalities of your idea. Will it work.The practicalities of your idea. Will it work. Is it ethical/legal?Is it ethical/legal?

Quick Research Task.Quick Research Task.

From record company you are given find out From record company you are given find out the following: the following:

- When were they founded?- When were they founded?

- What other media industries are they involved with?- What other media industries are they involved with?

- Who are their biggest selling artists?- Who are their biggest selling artists?

- What larger multi-national owns them?- What larger multi-national owns them?

- How do they use new technology?- How do they use new technology?