Acquisition Strategies in the Multinational Recording Industry

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Acquisition Strategies in the Multinational Recording Industry

  1. 1. Acquisition Strategies in the Multinational Recording Industry Patrik Wikström Jönköping International Business School
  2. 2. 1888-1920 1888 1894-1901 1888 1896
  3. 3. 1920s
  4. 4. 1930s Internal Centralized Hierarchical External Aggressive Conservative 1929-34 1931 1931 1929
  5. 5. 1940s 1945 1945 1942 1947
  6. 6. 1950s
  7. 7. # of new acts on the year-end-charts Dowd (2004)
  8. 8. Industry concentration Dowd (2004)
  9. 9. 1950s 1955 1961 1961-2 1953
  10. 10. 1960s
  11. 11. Labels-to-firm ratio Dowd (2004)
  12. 12. 1970s
  13. 13. Internal Decentralized Multi-label External Partnerships “ Progressive” 1970s
  14. 14. 1970s “… as I speak, black music and country music appear to be two primary growth areas in the coming year. If that perspective changes by the time you leave this room, I can still assure you Columbia Records will have a major entry into whatever new area is broached by the vagaries of public tastes”. (Arthur Taylor president CBS in 1973) 1977 1972
  15. 15. 1980s 1979, 83-86 1988
  16. 16. 1990s 1995 1998-9
  17. 17. 1990s
  18. 18. Market shares, single sales, Sweden
  19. 19. Industry concentration
  20. 20. Labels-to-firms-ratio
  21. 21. # new acts on the year-end-charts
  22. 22. Global sales of recorded music
  23. 23. 2000s 2004 2000 2004 2007
  24. 24. Conclusions & Looking forward
  25. 25. Internal Centralized Hierarchical Internal Decentralized Multi-label Internal Centralized? Label groups 1930- 1970- 2000-
  26. 26. Atlantic Records Group Independent Label Group Warner Bros. Records Word Entertainment Interscope/Geffen/A&M Island Def Jam Music Group Universal Motown Records Group Decca Label Group
  27. 27. Internal Centralized Hierarchical External Aggressive Conservative Internal Decentralized Multi-label External Partnerships “ Progressive” Internal Centralized? Label groups External Outsourcing “ Upstreaming” 1930- 1970- 2000-
  28. 28. “ 360  business model” Record sales Concerts Merchandise Licensing Sponsorships Etc… “ All-rights/Full-service”
  29. 29. Warner Music Group’s latest acquisitions, partnerships, and JVs <ul><li>A: Zebralution, DE – Digital distribution platform (Feb ‘07) </li></ul><ul><li>JV: Brand Asset Group, US – Artist development services (Jun ‘07) </li></ul><ul><li>A: Non-Stop Music, US – Production Music (Aug ‘07) </li></ul><ul><li>A: Taisuke, JP – All-rights/Full service (Sep ‘07) </li></ul><ul><li>P: Zazzle, US – Merchandise retailer (Oct ‘07) </li></ul><ul><li>JV: Kaiku, FI – All-rights/Full service (Oct ‘07) </li></ul><ul><li>A: Camus Production, FR – Tour Production, promotion and production company (Jan ‘08) </li></ul>
  30. 30. Patrik Wikström Media Management and Transformation Centre Jönköping International Business School Jönköping, Sweden [email_address]

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