To get an overview of the structure of the music industry

To gain an understanding of how the ‘big four’ operate, as well as the independent labels

To begin the record label group task

Audiences &

Institutions:

The Music Industry The aims of today’s lesson

You should all be able to:

Describe the main sectors in the music industry

Explain the difference between major and independent labels

Discuss the major labels using the terms oligopoly and conglomerate

Give detailed examples from one record label to back up discussion of how they operate

Audiences &

Institutions:

The Music IndustryBy the end of the lesson...

In pairsWrite down at least four different jobs you can think of in

connection with the music business e.g. concert promoter, manager, etc.

Industry OverviewThe Music Industry is made up of many people and organisations:

The composers, musicians, and performers

The companies and professionals who record and sell music (e.g. music publishers, producers, studios, engineers, record labels, retailers and online music stores)

Those that organise and present live music performances (e.g. booking agents, promoters, music venues, road crew)

Professionals who assist musicians with their music careers (e.g. talent managers, business managers, entertainment lawyers)

Those who broadcast music (e.g. radio and TV producers, presenters)

...and all sorts of other people (e.g. instrument manufacturers, music critics, etc.

Industry Overview

We can divide the music industry into key sectors:

It is a vast industry but is largely controlled by the record companies...

Technology DevelopmentTechnology

Development

PublishingPublishing

Broadcasting

Broadcasting

Live Events

Live Events

Recorded Music

Recorded Music

Industry Overview

The music industry is dominated by the ‘big four’ or the music majors (this is changing to the ‘big 3’ as we speak):

Market share data from 2005

(Until recently)

Industry Overview• According to an IFPI report published in August 2006 the big

four accounted for 71.7% of retail music sales

• This means that they operate in an oligopoly where a few companies control the market.

• These companies are designed to reach the maximum audience and therefore will also have subsidiary companies that will deal with niche tastes as well as mainstream. For example, Universal also own Verve which are a specialist Jazz music company

Industry Overview

Other than EMI , the majors are part of Conglomerates. Conglomerates are made up of numerous companies and are multi-industry, owning companies that are not part of the music industry.

For example Sony Corporation is a major conglomerate that owns Sony

Music – in pairs, list as many Sony products or companies as you can.

This makes these companies increasingly dominant.

Industry OverviewIndependents

•These companies operate separately from the majors and often specialise in music genres and may cater for niche audiences.

•Domino is now one of the most successful independent record labels in the UK.

•Artists include:

•Often, labels you think are independent are actually subsidiaries of a major label. Can you think of any labels that might be independent?

Before you get on to your group research tasks...

Here is your homework task tbd by Mon 19th March1. Do some research into the artists and bands you like – find out which

label they are with and if they are independent or part of a major label.

2. Select an artist/band from a major label to use for your first case study.

3. Select an artist/band from an independent label to use for your second case study.

4. Start a Prezi/Ppt./blog post in which to build up your case study information. Include the following information:

– Name the artist/band– State which label(s) they are with and if it is part of a larger group or

conglomerate– Give some examples of other artists/bands with the same label.

Group research task

1. Find your group2. Access my ‘Music Industry’ view on Mahara3. Download the relevant research task sheet for your

group (EMI / Sony / Warner / Universal / XL)4. Carry out the research (divide the work up between you)5. Create a presentation to show findings (Ppt. or Prezi).6. You will be presenting this to the rest of the class.

You should all be able to:

Describe the main sectors in the music industry

Explain the difference between major and independent labels

Discuss the major labels using the terms oligopoly and conglomerate

Give detailed examples from one record label to back up discussion of how they operate

Audiences &

Institutions:

The Music IndustryRecap...