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Sony h/usic Entertainment and the Evolution of the Music Industry A. J. Strickland The Ilniversitg of Alabama Andrew Pharaoh 2015 Undergraduate, The Universitg of Alabama d d A t such a pivotal time for music, it's more ffi imRortant than ever to develop a fertile,d \ creative environment that generates the highest quality of artists and music, while seeking to fully exploit the many opportunities that new digital services and products provide in reaching audiences around the world."r The remarks of Sony Music Entertainment CEO Doug Morris in 2011 illustrated an accurate under- standing of the environment of music sales. Morris, a globally influential executive and music innovator, agreed to join Sony Music Entertainment as chief executive officer effective July 1, 201l. In a time of great change in the music marketplace, it was abso- lutely necessary that Sony take active steps to remain competitive. Morris took the job graciously, but he placed himself into a business whose margins were becoming thinner and thinner. With a declining industry that had been made less lucrative by the wide availability of substitutes, Morris was forced to develop a strategy to contend with industry change and unfavorable competitive forces in 2014. F"$$ST#ffiV #ffi S#NY f'1U$$* ffiNTKreT&!Iq P--$ffiNY American Record Company, the company that would laterbecome Sony Music Entertainment, was founded in 1929 and then acquired by Columbia Broadcasting Company in 1938. In March 1968, Sony, at that rime Seth Kennedg 2014 Llndergraduate, The Universitg of Alabama a Japanese company, began a joint venture with the American company CBS to form CBS/Sony Records Inc. In September 1976, Sony introduced the optical digital audio disc, now known as the compact disc (CD). In 1983, CBS Inc., as an American company, allowed introduction of the CD to American markets. In January 1988, CBS Records Inc. was absorbed, and in January 1991, the new company was renamed Sony Music Entertainment Inc. In August 2004, Sony BMG Music Entertain- ment was established as a new joint venture with Ber- telsmann AG. Later, in August 2008, Sony acquired BMG's 50 percent stake in Sony Music Entertain- ment and began operation once again as Sony Music Entertainment, a wholly owned subsidiary of Sony Corporation. In July 2012, Sony/AIV Music Publish- ing, a joint venture between Sony and the Michael Jackson Family Trust, along with a consortium of other investment firms, bought the publishing arm of the EMI Group, which solidified Sony's position as the world's largest music publisher. #VffiRV!HW ffiT THffi ML,}$$T il N,EM M$TruV Before the 1900s, music and entertainment media had a strong emphasis on performance. If theater, magic, or music was wanted in a certain venue, individuals Copyright O 2014 by A. J. Strickland. All rights reserved. who could perform the arl personally were found and paid to do so. At the beginning of the 20th century, music began to become ownership-driven. .

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