OVERVIEW:
RECORDED MUSIC INDUSTRY
                   © 2007 musicbizclasses.com
U.S. RECORDING INDUSTRY Overview
• 3000+ Labels;
              ;
• 30,000 new releases per year

Primary activities:
• Tal...
RECORDED MUSIC INDUSTRY REVENUE


  RECORDED           Global Sales:
    MUSIC             $18 Billi
                     ...
RECORDED MUSIC CHANNELS

                    WHOLESALE:
 RECORDED          To Distributors
   MUSIC


                    ...
Label Types
• The Majors: major distribution; dominant market share

• Independents: lacking major distribution; can be la...
The Majors
• Divisions of an Multi-national conglomerates,
  which usually have other non-music divisions.

• Majors contr...
Major Music Company Corporate Structure

              Corporate
             Conglomerate                Media-TV,
      ...
VIVENDI/UNIVERSAL MUSIC GROUP

Island Def Jam Music   Universal Motown
Group                  Records
Interscope Geffen   ...
SONY
Arista               Zomba Label Group
Arista Nashville     Legacy
Bluebird             Sony Latin
BNA Records Label ...
WARNER MUSIC GROUP
Atlantic        Reprise Records
Asylum          Rhino
Bad Boy
B dB            Roadrunner R
            ...
EMI MUSIC GROUP
Angel                Manhattan
Astralwerks          Mute
Blue Note            Parlophone
Capitol          ...
ADVANTAGES OF MAJOR LABELS:
Scale
WELL FINANCED: Can afford better…
• Production
• Distribution- major networks
• Marketin...
Advantages of Independent Labels:
Vision & Knowledge
                g
MORE CREATIVE:
• Can find more raw talent
• Can use...
Record Label: Key Activities

Internal:
•   Talent Development
•   Artist P d t M k ti
    A ti t Product Marketing
•   Le...
Record Label: Departments


        SPECIAL MARKETS




                                                      INDIE RADIO
...
Record Label Business Structure: Key Functions

                  Leadership/Vision


 Talent      Marketing &    Admin   ...
Record Label Business Structure: Department Heads

                CEO/President
                CEO/P id t
              ...
For Educational Purposes Only

Please do not copy or distribute




                            © 2007 musicbizclasses.com
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MUC110 LEC1. Overview of Recorded Music Industry

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Overview of the Recorded Music Industry

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Transcript of "MUC110 LEC1. Overview of Recorded Music Industry"

  1. 1. OVERVIEW: RECORDED MUSIC INDUSTRY © 2007 musicbizclasses.com
  2. 2. U.S. RECORDING INDUSTRY Overview • 3000+ Labels; ; • 30,000 new releases per year Primary activities: • Talent acquisition through A&R (Artist & Repertoire); • Contractual arrangements with recording artists and their managers • Prod ction manufacture, distribution Production, man fact re distrib tion • Marketing and Promotion of recorded music • Enforcement of copyright p py g protection of sound recordings g • In the U.S. the Industry is centered, primarily, in NY, LA, and NASHVILLE with activity in Atlanta and Miami also Miami, also. © 2007 musicbizclasses.com
  3. 3. RECORDED MUSIC INDUSTRY REVENUE RECORDED Global Sales: MUSIC $18 Billi Billion 2008 US Sales: $5 Billion Products: 2008 CDS Vinyl DVDs Downloads D l d Streams g Mobile/Ringtones Merchandise © 2007 musicbizclasses.com
  4. 4. RECORDED MUSIC CHANNELS WHOLESALE: RECORDED To Distributors MUSIC RETAIL: LICENSING: Direct to Consumers Film TV •Bricks and Mortar Radio •Online Internet I t t •Cell Phones Background Music © 2007 musicbizclasses.com
  5. 5. Label Types • The Majors: major distribution; dominant market share • Independents: lacking major distribution; can be large or small, “Major Minors” • Sub-labels & Imprints: separate companies or divisions owned or distributed by major labels • Specialty labels: non-traditional distribution; focused on non-mainstream genres (i.e. classical, gospel) Distribution channels & market share define record label types yp © 2007 musicbizclasses.com
  6. 6. The Majors • Divisions of an Multi-national conglomerates, which usually have other non-music divisions. • Majors control approx. 70% of the world music market, and 80-90% of the United States music market. • Universal– Universal Music Group is a subsidiary of French Global Telecom/Entertainment company (Universal/Vivendi) • Sony Music Entertainment— American-based subsidiary of Japanese Electronics Company • Warner Music Group– Publicly traded, U.S. Based • EMI Music Group– Privately held, British-based Global Music Group © 2007 musicbizclasses.com
  7. 7. Major Music Company Corporate Structure Corporate Conglomerate Media-TV, Telecom Music Group Gas, Water, other Music non-music Record Publishing Distribution activities Label(s) Company p y © 2007 musicbizclasses.com
  8. 8. VIVENDI/UNIVERSAL MUSIC GROUP Island Def Jam Music Universal Motown Group Records Interscope Geffen Decca A&M Records Deutsche Grammophon p Lost Highway Verve Records GRP MCA Nashville Impulse! Records Mercury Nashville Mercury Records M R d Polydor © 2007 musicbizclasses.com
  9. 9. SONY Arista Zomba Label Group Arista Nashville Legacy Bluebird Sony Latin BNA Records Label Masterworks Burgundy Records Provident Label Columbia Group Columbia Nashville RCA Epic RCA Nashville Jive RCA Victor J Records Sony Wonder Verity Group y © 2007 musicbizclasses.com
  10. 10. WARNER MUSIC GROUP Atlantic Reprise Records Asylum Rhino Bad Boy B dB Roadrunner R R d Records d Entertainment Rykodisc Cordless Sire Recordings WB Nashville East West WB records Elektra Warner Music Intn’l Lava Word Records Maverick M i k Nonesuch © 2007 musicbizclasses.com
  11. 11. EMI MUSIC GROUP Angel Manhattan Astralwerks Mute Blue Note Parlophone Capitol Virgin Capitol Nashville EMI Classics EMI CMG EMI Records EMI Televisa Music © 2007 musicbizclasses.com
  12. 12. ADVANTAGES OF MAJOR LABELS: Scale WELL FINANCED: Can afford better… • Production • Distribution- major networks • Marketing • Talent Acquisition • And, sometimes, manufacturing • INDUSTRY PERKS: Can Offer artists… • Stability • Prestige P ti • Advances • Top production resources op p oduct o esou ces © 2007 musicbizclasses.com
  13. 13. Advantages of Independent Labels: Vision & Knowledge g MORE CREATIVE: • Can find more raw talent • Can use creative development, marketing and financing tactics • Can build better brand loyalty among fans y y g • SPEED: • N t encumbered b l Not b d by long corporate approval processes t l • Can understand artists and trends faster • REGIONAL CONNECTIONS: • Better regional connections for publicity and sales © 2007 musicbizclasses.com
  14. 14. Record Label: Key Activities Internal: • Talent Development • Artist P d t M k ti A ti t Product Marketing • Legal • Providing service to the artists External: • Sales & Distribution • Marketing and Promotions • Providing service to distributors and retailers © 2007 musicbizclasses.com
  15. 15. Record Label: Departments SPECIAL MARKETS INDIE RADIO PROMOTER PRGRM DIRECTOR A&R PRODUCT MKTG- PRESS ARTIST DEVELPMNT NOTE: This is a sample organizational chart. Depending on the size of the Record Label, the departments may be combined or organized in a different configuration. © 2007 musicbizclasses.com
  16. 16. Record Label Business Structure: Key Functions Leadership/Vision Talent Marketing & Admin Manufacturing Aquisition Sales Product Pressing A&R Management g Business Affairs Packing Marketing Legal Inventory Promotions Management Sales/ Accounting Distribution Royalty/ Creative Creati e Affiliate Services Management © 2007 musicbizclasses.com
  17. 17. Record Label Business Structure: Department Heads CEO/President CEO/P id t (Chief Executive Officer) General COO CFO CTO Counsel C l Administration Technology Legal Finance Human Information Affairs Accounting Resources Mngmnt Business Marketing & g Online Affairs Aff i Sales Security © 2007 musicbizclasses.com
  18. 18. For Educational Purposes Only Please do not copy or distribute © 2007 musicbizclasses.com

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