Music Industry G322
Terminology Test
6 mins- 6 words- offer an example if you can
Distribution
Portability Web 2.0
Consumption P2P
Streaming
Sony Music Entertainment EMI
Universal Warner
Industry Overview
The Music Industry is made up of many people from songwriters, producers, artists, managers, marketing, distribution etc. It is a vast industry but is largely controlled by the record companies
The music industry is dominated by the ‘big four’ or the music majors:
•
According to an IFPI report published in August 2007 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. Universal for example also own Verve
which are a specialist Jazz music company
Other than EMI the majors are conglomeratesthis means they are a multi industry company and own other companies that are not part of the music industry
EG?………………………………………………………..
This makes these companies increasingly dominant. They can also benefit from Horizontal Integration. This is where they canlink together their different companies in their portfolio and promote their products=Cross promotion
Guitar Hero
PS3
Guitar Hero Ring Tones on the Sony Ericcson
Music Rights Sony International
Read the Simon Cowell article fromYour booklet-how does this also showHorizontal integration
Vertical Integration
Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers
Can self distribute
Synergy
Using other companies/outlet to promote artists which are mutually beneficial to both companies. Sales of music through other avenues. Working in partnerships
Radio
TV
New Media
Film
Independents
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 longest running and most successful independent record labels in the UK.
Artists include: The Artic Monkeys and Franz Ferdinand
They don’t have the benefits of synergy and etc but offer artists better deals and are more like partnerships/freedom etc
Case Study
From the homework article:
How can you benefit from being an independent artist?
Homework
Select an independent British Record label and research the following:
Genre of musicLocationContact detailsPurchase/DownloadStreaming
What is the benefit of being signed to an indie label?
What is the benefit of a major?
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