Universal Music Group Case Study


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Universal Music Group Case Study

  2. 2. Background It was founded in:  1934 when British Decca launched an American Decca Records  In 1989 the Music Entertainment Group formed  Then in 1996 the first UMG was created from the Music Entertainment Group  In 1998 the second UMG was created from PolyGram The Headquarters are in Santa Monica, California USA  Its key people are Lucian Grainge who is the Chairman and CEO and Max Hole who is the chairman and CEO of the international Universal  It has a revenue of $4,449 million  Income of $140 million as recorded in 2010
  3. 3. Labels under Universal They have 38 sub labels outside of the United States and 10 inside the US - some include:  Universal Republic Records  Motown Records  Universal Music Group Nashville  Mercury Records  Decca Label Group  Interscope  The Verve Music Group  AT&M  Universal Music UK  Capitol Records  Virgin Records  Def Jam  Island
  4. 4. Divisions  Universal music group has many divisions – its most famous is the Universal Music Publishing Group which is the second largest music publishing company in the world.  On 21 September 2012 the sale of EMI to Universal Music Group was approved in Europe and the US by the European Commission and Federal Trade Commission.
  5. 5. Artists on Universal Some artists signed to Universal include:  Taylor Swift  Lady Gaga  Florence & The Machine  Lil Wayne  Bombay Bicycle Club  Eminem  Lana Del Ray  Justin Bieber  LMFAO  Keri Hilson  U2  Kid Cudi  The Chemical Brothers  Enrique Iglesias  Prince  Rihanna  Stereophonics  Nicki Minaj
  6. 6. Lady Gaga  Gaga is signed to Def jam – a label under universal  Rolling stone named her the ‘queen of pop’  She has been known for her outrageous outfits including the meat dress which she wore to the MTV music awards in 2010  Her albums mostly have positive reviews  It has been said that she has a unique place in pop music  She is often in the news with a new outfit, album, single, stunt which gains universal a lot of publicity
  7. 7. Lady Gaga  She has donated to numerous charities and attended many campaigns  She calls her fans her little monsters and got a tattoo of it in dedication to her fans  Gaga is a supporter of anti bullying and strongly believes in it  Gaga is a positive influence as she has been seen as a role model, selfesteem booster for her fans, fashion icon and someone who changed the music industry
  8. 8. Justin Bieber  Bieber was discovered from his videos on YouTube in 2008  His first album went platinum and won many awards  In 2011 Bieber made statements saying he was against abortion  His neighbours in Calabasas accused Bieber of reckless driving and speeding  His tour bus was raided on two occasions and a stun gun and marijuana was found  In 2014 Bieber was arrested for driving under the influence and without a license Also in 2014 Bieber assaulted a limousine driver  Whilst was living in America he slated the health care system  In 2013 he was charged with vandalism in Brazil   Also in 2013 he upset Australian authorities over graffiti Bieber is a negative influence on teens and the music industry as it gives the label bad reputation and give a bad influence on his fans.
  9. 9. Some controversy with Universal • In 2006 an investigation was taken place in New York which claimed that universal bribed radio stations to play songs from performers under universal labels – in settlement the company paid $12 million to the state. • In 2007 Universal were accused of abusing the Digital Millennium Copyright act as they forced YouTube to take down videos which involved Universal’s music • In 2011 megaupload published a music video called the mega song with artists including Kanye west, Alicia Keys and Snoop Dogg but when it was uploaded to youtube universal requested for it to be taken down. Megaupload said that the video didn’t breach any agreements an all the artists signed agreements so requested an apology. Universal said the takedown wasn’t under the digital millennium copyright act and eventually was posted back on youtube.
  10. 10. Vevo • Universal co-developed VEVO which allows free ad supported streaming of music videos at a higher quality than those on Youtube