Music industry notes

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  • 1. Major labels 1988–1998 (Big Six)1. Warner Music Group2. EMI3. Sony Music (known as CBS Records until January 1991 then known as Sony Musicthereafter)4. BMG Music5. Universal Music Group6. PolygramMajor labels 1998–2004 (Big Five)1. Warner Music Group2. EMI3. Sony Music4. BMG Music5. Universal Music Group (Polygram absorbed into UMG)Major labels 2004–2008 (Big Four)1. Warner Music Group2. EMI3. Sony BMG (Sony and BMG joint-venture)4. Universal Music GroupMajor labels 2008–2011 (Big Four)1. Sony Music Entertainment2. EMI Group3. Warner Music Group4. Universal Music GroupMajor labels since late 2011, if approved (Big Three)1. Sony Music Entertainment2. Warner Music Group3. Universal Music Group (EMI recorded music division to be absorbed into UMG, pendingapproval by antitrust regulators)Record companies and music publishers that are not under the control of the big three aregenerally considered to be independent (indie), even if they are large corporations with complexstructures. The term indie label is sometimes used to refer to only those independent labels thatadhere to an independent criteria of corporate structure and size, and some consider an indie labelto be almost any label that releases non-mainstream music, regardless of its corporate structure.Music collectors often use the term sublabel to refer to either an imprint or a subordinate labelcompany (such as those within a group). For example, in the 1980s and 1990s, "4th & Bway" wasa trademarked brand owned by Island Records Ltd. in the UK and by a subordinate branch, IslandRecords, Inc., in the United States. The center label on a 4th & Broadway record marketed in theUS would typically bear a 4th & Bway logo and would state in the fine print, "4th & Bway™, anIsland Records, Inc. company". Collectors discussing labels as brands would say that 4th & Bwayis a sublabel or imprint of just "Island" or "Island Records". Similarly, collectors who choose to treatcorporations and trademarks as equivalent might say 4th & Bway is an imprint and/or sublabel ofboth Island Records, Ltd. and that companys sublabel, Island Records, Inc. However, suchdefinitions are complicated by the corporate mergers that occurred in 1989 (when Island was soldto PolyGram) and 1998 (when PolyGram merged with Universal). Island remained registered ascorporations in both the US and UK, but control of its brands changed hands multiple times as newcompanies were formed, diminishing the corporations distinction as the "parent" of any sublabels.In September 2006, Steve Jobs announced that iTunes owned 88% of the legal musicdownload market.iTunes had 10,152,284 downloads a day on average
  • 2. A report released by the IFPI in 2009, stated that 95% of music downloads areillegal (International Federation of the Phonographic Industry)Even legal music downloads have faced a number of challenges from artists, record labelsand the Recording Industry Association of America. In July 2007, the Universal MusicGroup decided not to renew their long-term contracts with iTunes.In January 2005, downloaded tracks outsold physical singles for the first time in UK musichistory[citation needed], prompting The Official UK Charts Company to begin to incorporatedownloads for the first time into the UK Singles Chart________________________________________________________________________AdeleIn the months leading up to the European release of 21, Adele embarked on a promotionaltour across Europe, performing on the UKs Royal Variety Performance on 9 December2010, the finale of reality singing competition The Voice of Holland on 21 January 2011,and on BBC Radio 1s Live Lounge on six days laterAdele performed "Someone Like You" at the 2011 BRIT Awards ceremony, which was wellreceived and resulted in an incremental sales increase for both 19 and 21.For the North American release of 21 on 22 February, Columbia Records executives usedthe "long tail sales theory" to shape its marketing campaign, which, according to Columbiasenior VP of marketing Scott Greer, entailed "building a critical mass throughout Februaryin order to reach all those people who bought 19."Key to this was the record companyapproaching internet and media partners Vevo, AOL and VH1 to begin promoting Adelesold and new songs.21 album, Japan, Russia and Spain, highest position was in top 4, the rest of the worldNumber 1._____________________________________________________________________Two years ago sales of singles soared to an all-time record of 152.7m units.There has, unsurprisingly, been a fall in sales of albums – down from 133.6m units to128.9m two years ago.U.S Market Share (2005) World Market share (2005)
  • 3. Worldwide MusicIndustry Revenues(2006 - 2011)2006 ($60.7 billion), 2007 ($61.5 billion), 2008 ($62.6billion), 2009 ($65.0 billion), 2010 ($66.4 billion), 2011($67.6 billion)Worldwide LiveMusic / ConcertRevenues (2006 -2011)$16.6 billion (2006), $18.1 billion (2007), $19.4 billion(2008), $20.8 billion (2009), $22.2 billion (2010), $23.5billion (2011)Worldwide DigitalMusic Revenues(2006 - 2011)$2.9 billion (2006), $4.5 billion (2007), $7.0 billion (2008),$10.7 billion (2009), $12.9 billion (2010), 14.8 billion (2011)US MP3 Player RetailSales, by Brand,February 2007 (%market share)Apple (73.7%), San Disk (9%), Creative (3.3%), Microsoft(2.3%), Samsung (2.2%), Other (9.5%)Digital Music % of2008 Total MusicSales20%Global single trackdownloads in 20081.4 billion units globallyThe value of the music market in the current day is $4.6 billionThere has been a 1000% increase in value of the digital music industry since 2004.
  • 4. Other services, such as VEVO and MTV, arealso commanding significant audiences.Record labels have taken different approachesto licensing online music video services, somepartnering with YouTubethrough VEVO and otherswith MTV and by launchingartist-branded websites. Michael Nash, executive vice president, digital strategy andbusiness development, Warner Music Group, says: “We offer consumers artist- brandedchannels on YouTube. In a world where over half of the active rosters are signed toextended rights agreements, it is extremely important for us to have a strong marketingpartnership with our artists.”The introduction of new legislation and a landmark court decision on The PirateBay in 2009 helped make Sweden a positive case study for digital music. Yet 18 monthslater, lack of active copyright enforcement threatens to reverse the gains the market hasmade.
  • 5. In the UK, forexample, HarrisInteractive found that 76per cent of all musicobtained online in the UKin 2010 was unlicensed. The surveyfound that the majority of unauthorised downloading was coming from P2P networks butthat music piracy through cyberlockers is on the rise, e.g. Mediafire, Zippy, RapidShareand DropBox.Limewire down, BitTorrent upDespite variations by country, there are some common trends across markets. Thepopularity of Limewire, appears to be in decline after the US court injunction in October2010. On the other hand, usage of BitTorrent is growing across most markets, indicatingthat P2P networks are still a significant source of pirate content.Nearly one in four active internet users in Europe visit unlicensed sites monthly.The Nielsen Company_____________________________________________________2010 Beats By Dre, had sold 1m pairs of headphones in two years. In January, the LosAngeles Times reported that Beats’ fourth quarter retail sales were $50m. Lovine isreluctant to confirm the figure.For most people, high fidelity in music went out with the hi-fi, sacrificed for the portability ofthe Walkman, Apple’s desirable iPods and the tinny MP3 format used by countless peer-to-peer websites, mobile phones and also-ran digital music players.After just a couple of months since the company purchased Beats Audio andbegan bundling headphones with all new smartphone releases, HTC hasdecided to scrap the idea.Says one HTC exec: "An accessory like the headphone doesnt factor in when someone isbuying a smartphone. If they want a Beats headphone, theyll buy it directly."
  • 6. HTC spent $300 million last year to acquire the majority stake in Beats. Beats has beenpanned by many as a gimmick, and real audiophiles say the software and hardware is nobetter than the regular audio seen in most smartphones.The company does include Beats Audio support into all their new devices, and the tech isintegrated into the music apps.HTC says starting with the launch next week of the One X, there will be no more bundlingfor the immediate future, although execs have not completely shut the door.________________________________________________________________________Iggy Pops new album has been rejected by his record label, forcing the singer to release ithimself. Virgin EMI turned down the collection of cover versions and French chanson, soPop has put it on sale via digital retailers.The Official Streaming Chart will launched on monday the 14th of May 2012, billed as thefirst chart to rank audio streams from both ad-funded and subscription services in the UK.Music streaming has grown significantly in the past 12 months with 2.6bn audio streams inthe UK in 2011. Revenues from streaming services increased by 30% to £35m in 2011 butremains a fraction, at just 4.5%, of total music industry revenues.
  • 7. HTC spent $300 million last year to acquire the majority stake in Beats. Beats has beenpanned by many as a gimmick, and real audiophiles say the software and hardware is nobetter than the regular audio seen in most smartphones.The company does include Beats Audio support into all their new devices, and the tech isintegrated into the music apps.HTC says starting with the launch next week of the One X, there will be no more bundlingfor the immediate future, although execs have not completely shut the door.________________________________________________________________________Iggy Pops new album has been rejected by his record label, forcing the singer to release ithimself. Virgin EMI turned down the collection of cover versions and French chanson, soPop has put it on sale via digital retailers.The Official Streaming Chart will launched on monday the 14th of May 2012, billed as thefirst chart to rank audio streams from both ad-funded and subscription services in the UK.Music streaming has grown significantly in the past 12 months with 2.6bn audio streams inthe UK in 2011. Revenues from streaming services increased by 30% to £35m in 2011 butremains a fraction, at just 4.5%, of total music industry revenues.