SONY MUSIC UK <ul><li>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. </li></ul><ul><li>Sony Music employ over 12000 people worldwide </li></ul><ul><li>across 70 countries . </li></ul><ul><li>Sony Music recorded a 2% rise in revenue in 2010 </li></ul><ul><li>with a profit of $1.81 billion dollars recorded. </li></ul><ul><li>Sony Music represents Local artist’s across 70 territories globally. Such as No Gravity (Poland), Sila (Turkey) </li></ul><ul><li>Sony represents some of the biggest international such as King Of Leon, Pink, Britney Spears, Michael Jackson and The Foo Fighters. </li></ul>
<ul><li>In It For The Money was formed in 2005 in Bridgwater and started life promoting show for international artists such as the Scissors Sisters and the Subways . </li></ul><ul><li>2006 it emerged into a record label. Which saw the label. Giving debut releases to Tiger Force, Blood Red Shoes and You Love Her Coz She’s Dead who all went onto to sign to bigger labels . </li></ul><ul><li>2008 saw the label branch into management with the signing of You Love Her Coz She’s Dead. </li></ul><ul><li>In It For The Money currently employs two employee’s. </li></ul>
Sony Music Subsidiaries <ul><li>Sony Music is made up of a number of subsidiaries. </li></ul><ul><li>Columbia Records who have acts such as Kasabian, ACDC, Bob Dylan, MGMT and The Vaccines . </li></ul><ul><li>Syco Music who have acts such Alexandra Burke, Susan Boyle, Leona Lewis and Olly Murs. </li></ul><ul><li>Syco Limited for The X Factor and Britian’s Got Talent. Simon Cowell is managing director for the company. </li></ul><ul><li>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. </li></ul><ul><li>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 . </li></ul>
What Does In It For The Money Have To Outsource? <ul><li>Producer and Recording Studio’s </li></ul><ul><li>Duplication – The making of CD and Vinyl. </li></ul><ul><li>Distribution – Companies responsible for getting IIFTM’s releases into shops and file downloading sites. </li></ul><ul><li>PR – Publications, Radio and Television. </li></ul>
How IIFTM Markets Artist’s With Limited Budget <ul><li>Online Blogs – Pop Justice </li></ul><ul><li>Regional and National Radio – NME Radio </li></ul><ul><li>Regional Press and National Press – Rocksound </li></ul><ul><li>Specialist TV Programmes – Skins, Lovestreams </li></ul><ul><li>Regional and National Tours </li></ul><ul><li>Social Networking Sites. </li></ul>
How Major Labels Market Artists as Independent <ul><li>Hadouken sign to Major Label EMI in January 2006 . </li></ul><ul><li>EMI set-up fake independent label ‘surface news records’ and finance the band to release two limited vinyl only singles. </li></ul><ul><li>Label bidding war starts creating even more buzz and hype around the band. </li></ul><ul><li>Hadouken officially announce that they have signed with EMI in May 2006 despite already being signed by the label in January. </li></ul>
Why IIFTM Branched Into Management <ul><li>Artists were being poached by larger labels as soon as they were becoming known or successful. </li></ul><ul><li>Upon Artist moving to bigger labels some would receive poor advice and get mistreated and left on the shelf. With no one independent of this process to advise and fight their corner. </li></ul><ul><li>Rising cost of duplicating physical release formats. </li></ul><ul><li>Impact of file sharing and illegal downloads of music. </li></ul>
How audience listen to music <ul><li>Ten years ago CD’s were the leading format and dictated how we all listened to music. </li></ul><ul><li>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. </li></ul><ul><li>Online retailers began offering legal downloading alternatives. Apple dominated this market with iTunes </li></ul><ul><li>Apple dominated the market for MP3 players with its iPod , released in late 2001. </li></ul><ul><li>MP3 blogs, aggregators and BitTorrent programs offered new ways to "own" music without actually paying for it. </li></ul><ul><li>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. </li></ul>
Music’s Lost Decade. Sales Cut In Half Over Last Decade <ul><li>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. </li></ul>
How The Industry Reacts <ul><li>Major Labels begun to sue listeners through the RIAA (Recording Industry Association of America). </li></ul><ul><li>The RIAA has settled 2,484 cases out of court, with the average settlement between $3,000 and $4,000 </li></ul><ul><li>Live Sector has grown from 2003 and each subsequent year. It continues to grow and at the end of 2010 had grown by 4.7%. </li></ul><ul><li>Vinyl sales continue to grow. Reaching 2.8 million units in 2009, up from 1.9 million in 2008, a record since SoundScan began tracking sales data in 1991. </li></ul><ul><li>Rock albums account for 70% of all vinyl sold </li></ul>
360 Degree business model <ul><li>Madonna signed a ground-breaking recording and touring contract with concert promoter Live Nation in 2007. </li></ul><ul><li>She was the first major star to choose an all-in-one agreement with a tour company over a traditional record deal. </li></ul><ul><li>It gives Live Nation rights to all her music-related projects - including new albums, tours, merchandise, websites, DVDs, sponsorship, TV shows and films. </li></ul><ul><li>The deal, reported to be worth $120m (£59m) over 10 years, ends her 25-year relationship with Warner Music </li></ul>
Major Labels begin to Implement 360 Degree Business Model <ul><li>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. </li></ul><ul><li>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. </li></ul><ul><li>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. </li></ul>
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