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Universal music group

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  • 1. Learning Objectives
    • To consider the differences between independent labels
    and
    conglomerate labels
    - To be able to analyse in the exam the benefits and limitations of each
  • 2. Notes for case study
  • 3. In groups of 4 you will adopt the role of a music institution. Some will be a conglomerate (Universal) and some will be an independent music company (Domino).
    A new artist called ‘@ for Ampersand’ has requested that you produce and distribute the music for them. In your group you will have 3 mins to argue that you are the best institution for the job.
    Step 1 Research your institution (notes in lessons)
    Step 2 Plan your speech
    Step 3 Write your speech and assign roles / sections to speak.
    EVERYONE in your group must say something
    EVERYTHING you say must be true and accurate.
    Task
  • 4. Universal Music Group
    A global conglomerate
  • 5. The largest of the ‘big four’ labels
    Responsible for 30% of world music sales
    Based in the US with offices worldwide
    Owned by Vivendi (French media conglomerate)
    Merged with BMG Music Publishing in 2007
    Many subsidiary companies including Island Records Group, Decca, Polydor and Mercury
    Revenue $5.87 billion in 2010
    Key facts
  • 6. Universal is the biggest of the four major record labels, responsible for 29% of the music sold in the world.
    A global conglomorate
    Has access to a global market – targets international audiences and manages artists with global appeal.
    Is this always beneficial?
    In summary…
  • 7. Often the ‘majors’ or ‘conglomerates’ brand their output
    as ‘independent’ by setting up or acquiring a separate company.
    This is done by buying local record labels who sign local artists their marketing of global acts.
    What is the benefit of selling music that is made ‘independently?
    • Being ‘outside the mainstream’ localizes the product and seems more personalised
    • 8. It suggests that you able to offer something that is ‘alternative’ in some way (unlike all the others)
    Independent Music Companies vs Conglomerates
    in addition to
  • 9. How do the majors operate?
    Song writing and publishing
    Major labels operate a vertically integrated business model, where the owner has acquired companies which play different roles in the process of creating, promoting and selling music.
    Recording
    Promotion & marketing
    Licensing (to film/TV/mobile) e.g. Universal Pictures
    Distribution e.g. Vivendi Distribution
    Retail/exhibition
    e.g. Virgin radio
    Hardware e.g. Sony DVD players
  • 10. What might be causing conglomerates like Universal Music Group to be loosing money?What are they doing about it?
  • 11. Universal includes marketing and distribution branches which exist in order to
    aggressively maximize catalogue repertoire
    according to their website.
    This means that branches of the company work hard to make sure that as much money is made from each artist as possible.
    A vertically integrated company
  • 12. Vivendi: stakes in music, film, TV, mobile, gaming and advertising.
  • 13. Universal Music Publishing Group
    A music publisher owns the copyright for music and lyrics and can licence them for use in film, TV, advertising, mobiles etc. as well as for other artists to cover.
    UMPG is the largest in the world, with over 1 million copyrights.
  • 14. In the computer room, use your blog to record your own research into the 6 ways in which Universal Music Group make their money (revenue).
    You will find all the information you need on their website:
    Task – period 5
  • 15. To understand how Universal Music Group makes use of
    ‘Synergistic Marketing’
    and
    ‘Secondary Licensing’
    Learning Objective
  • 16. A type of energy drink, made by Universal Music Group?
    ‘Cross-Promotion’ of media products for example the release of certain products simultaneously.
    The type of energy created when a record label takes over a small independent label
    What is Synergy?
  • 17. A type of energy drink, made by Universal Music Group?
    ‘Cross-Promotion’ of media products for example the release of certain products simultaneously.
    The type of energy created when a record label takes over a small independent label
    What is Synergy?
  • 18. Synergy and synergistic practices
    What it means and how it relates to the music industry…
  • 19. Definition:
    The integration (combining) of institutions for mutual benefit.
    For example the release of certain products simultaneously.
    The industry calls this: ‘Cross-Promotion.’
    Synergy
  • 20. Example:
    A film may be released at the same time as an associated CD soundtrack to produce maximum revenue.
    Synergistic Practices
  • 21. Definition:
    The integration (combining) of institutions for mutual benefit. For example the release of certain products simultaneously. ‘Cross-Promotion.’
    Synergistic Practices
  • 22. Definition:
    The integration (combining) of institutions for mutual benefit. For example the release of certain products simultaneously. ‘Cross-Promotion.’
    eg. Who had heard of ‘The Rembrandts’ before the series ‘Friends’ made the song so memorable?
    Synergistic Practices
  • 23. Sony has a franchise in the music and film and game console industry.
    It is easier for them to use synergistic practices to promote and sell their products because they are vertically integrated.
    The potential for internal synergy is enormous!!
    Vertical Integration
  • 24. ‘Quantum of Solace’ (Sony Pictures 2008)
    Soundtrack by Sony:
    ‘Another Way to Die’ Alicia Keys’ – distributed by J Records (a subsidiary of Sony Records)
    DVD and BlueRay Disk released film in HD
    Console Game available on Sony Playstation 3
    - Funded by ‘Sony Entertainment’
    Internal Synergy
  • 25. How is it an advantage to the music industry?
    The music is more saleable because the audience is attracted to elements they recognise from the films.
    The film is advertised by the music.
    Everyone’s a winner!
    Synergy
  • 26. Sony Pictures could join with Sony Online Games to produce a ‘tie-in’ game/film to produce a greater market exposure for both products.
    Sony Music could then release the soundtrack for both.
    How could this work for a record label promoting a new music artist?
    How does it work?
  • 27.
  • 28. Girls Aloud – produced by Polydor Records (subsidiary of Universal Records)
    Sang the soundtrack music to St Trinians – produced by Universal Pictures
    http://www.youtube.com/watch?v=prKPXggt0t0&feature=fvst
    Case Study: Universal Music GroupGirls Aloud
  • 29. Music was used in a diet coke advert
    http://www.youtube.com/watch?v=iUW8GrOIZcQ
    Homework:
    Create 2 more case studies on artists represented by Universal who have used synergistic marketing to promote their albums
    Case Study: Universal Music GroupDuffy
  • 30. Universal Music Publishing Group
    A music publisher owns the copyright for music and lyrics and can licence them for use in film, TV, advertising, mobiles etc. as well as for other artists to cover.
    UMPG is the largest in the world, with over 1 million copyrights.
  • 31. Universal Music Publishing Group
    What do they do?
    • concerned with the development, promotion and protection of the interests and rights of songwriters and composers.
    • 32. manages the rights in the music
    • 33. enables the music to reach its many audiences by..
    encouraging record companies to record and release material and licensing works using synergistic marketing (i.e. agreeing the use of music in a film or advert) and print (sheet music).
  • 34. Production:
    Signed to Island Records after
    takeover by Universal .
    Worked with songwriting
    & production company
    Xenomania, Jay-Z’s production
    company Roc Nation and several other producers and writers.
    Artist case study: Sugababes
  • 35. UK, Europe, Asian and US tours for new album
    Theme song for Powderpuffs Girls Movie
    ITV teen drama Girls in Love theme song
    Tracks on soundtracks for Love Actually andSex and the City
    Boots Christmas TV advert– Girls
    http://www.youtube.com/watch?v=HgduIknGejU
    Images licensed to Mattell for Barbie dolls
    Promotion & secondary licensing
  • 36. None of the original line-up remain – critics say they are now ‘more brand than band’ (The Independent)
    New album Sweet 7 has sold relatively poorly in the UK and Europe – launch week is significant for sales.
    Rumoured that Roc Nation has dropped the group from a contract due to poor European sales
    Sweet 7 entered UK album charts at #14 March 2010 – first single had been released August 2009.
    US release uncertain due to poor
    European sales
    Sweet 7 and brand controversy
  • 37. Create 2 more case studies on artists represented by Universal to include:
    Artist who has used synergy to promote their album
    Artist who has sold ‘secondary licensing’ to help promote their music
    Post on blog
    Homework: for next Tuesday

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