Sony Music Entertainment is the second largest global recorded music company of the ‘big four’ major companies and is controlled by Sony Corporation of America, the United States subsidiary of Japan’s Sony Corporation.
Sony Music employ over 12000 people worldwide
across 70 countries .
Sony Music recorded a 2% rise in revenue in 2010
with a profit of $1.81 billion dollars recorded.
Sony Music represents Local artist’s across 70 territories globally. Such as No Gravity (Poland), Sila (Turkey)
Sony represents some of the biggest international such as King Of Leon, Pink, Britney Spears, Michael Jackson and The Foo Fighters.
Sony Music is made up of a number of subsidiaries.
Columbia Records who have acts such as Kasabian, ACDC, Bob Dylan, MGMT and The Vaccines .
Syco Music who have acts such Alexandra Burke, Susan Boyle, Leona Lewis and Olly Murs.
Syco Limited for The X Factor and Britian’s Got Talent. Simon Cowell is managing director for the company.
Syco accounted for 40% of all Sony Music UK profit in 2006 . By 2008 , it was reported that Syco accounted for 70% of profit at Sony Music UK.
Gareth Gates, Steve Brookstein, Bianca Ryan, Angelis, Leon Jackson, Same Difference, George Sampson, Rhydian, Paul Potts, Escla have all been signed and subsequently dropped by Syco within the last 10 years .
Ten years ago CD’s were the leading format and dictated how we all listened to music.
At the end of 1999 Shawn Fanning started a Web-based program called Napster that enabled users to share MP3 files. This changed the way music was listened to and purchased.
Online retailers began offering legal downloading alternatives. Apple dominated this market with iTunes
Apple dominated the market for MP3 players with its iPod , released in late 2001.
MP3 blogs, aggregators and BitTorrent programs offered new ways to "own" music without actually paying for it.
January 2011 HMV announce it will be shutting 60 of its stores over the next 12months in response to declining sales as their shares drop 20%. The company has admitted it was having trouble meeting the terms of a bank loan.
Music’s Lost Decade. Sales Cut In Half Over Last Decade
Total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009, according to Forrester Research. In 1999, that revenue figure topped $14.6 billion.
Madonna signed a ground-breaking recording and touring contract with concert promoter Live Nation in 2007.
She was the first major star to choose an all-in-one agreement with a tour company over a traditional record deal.
It gives Live Nation rights to all her music-related projects - including new albums, tours, merchandise, websites, DVDs, sponsorship, TV shows and films.
The deal, reported to be worth $120m (£59m) over 10 years, ends her 25-year relationship with Warner Music
Major Labels begin to Implement 360 Degree Business Model
The ‘music industry’ has at last awoken to acknowledge the existence of ‘new’ music distribution networks such as the World Wide Web and P2P. It has also begun to realise that quashing these technologies by imposing crippling Digital Rights Management on digital recordings may not be terribly effective, and so a new business model has been proposed – the 360-Degree record deal.
The new form of record deal is in many respects very similar to the classic deals of the 20th century, but this time around the labels want to also take a sizeable cut of the artist’s live performance, publishing and merchandising earnings.
Independent Labels were the first to introduce this type of deal at the start of the decade almost 10 years before the Major Labels begun to implement the deal into their organisations.