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Music industry 2015
- 1. What is the Music Industry like? Who is in control? What does the future hold?
- 2. Overview Primary Activities Talent acquisition Contractual arrangement with artists and managers Marketing and Promotion Enforcement of copyright
- 3. Overview
- 4. Markets Recorded Music Wholesale to Distributors Retail Direct to consumers CDs/DVDs/ Vinyl Online Cellphones Licensing Film TV Radio Internet Cafes
- 5. The Majors • Major distribution, dominate the market Independents • Lack ability of major distribution Sub-Labels and Imprints • separate companies or division owned or distributed by the major labels Specialty Labels • non traditional distribution, focus on non mainstream. The Labels
- 6. Majors control approx 75% of the world music, an 80-90% of the US market… They have non-music related subdivisions, which you will realise as we go through the list… The Majors
- 7. Universal (owned by Vivendi, a French based company) ABBA Aerosmith Akon AmyWinehouse Backstreet Boys Black Eyed Peas Blink 182 Bob Marley The Cure Chamillionaire Cheryl Cole Eminem Enrique Iglesias Fall Out Boy George Michael Green Day Hoobastank Incubus James Blunt Jennifer Lopez Johnny Cash Kanye West
- 8. Sony Music Entertainment (US based subsidiary of Japanese company) AC/DC Avril Lavigne Beyonce Bob Dylan Britney Spears Fatboy Slim Foo Fighters MGMT Michael Jackson Good Charlotte Glee Iron Maiden JLS JustinTimberlake Kings of Leon Korn Madonna Whitney Houston Shakira Leona Lewis Susan Boyle Kesha
- 9. Warner Music Group (US based, owned by Time Warner) Bee Gees Gnarles Barkley Cher Phil Collins Death Cab for Cutie Dire Straits The Eagles Prince Prodigy Paris Hilton Jimi Hendrix Kid Rock Linkin Park Nine Inch Nails Notorious BIG Oasis Taylor Swift The Ramones Red Hot Chili Peppers The Pogues Paramore Nickleback
- 10. EMI Music Group $4b in debt (dissolved in 2012 with Music operations going to Universal and Music publishing to Sony – ‘back catalogue’, including Michael Jackson) Elvis Presley Pink Floyd 30 seconds to Mars Lily Allen AFI Beastie Boys Black Sabbath Coldplay Daft Punk Dizzee Rascal Duran Duran Gorillaz G Unit Jane’s Addiction Spice Girls Mariah Carey Snoop Dog TinaTurner TheWhite Stripes RobbieWilliams Sigur Ros McFly
- 11. Well Financed = better production, distribution, Marketing and talent acquisition Can offer artists stability, prestige, advances, top production resources. Advantages of Major Labels
- 12. An indie label is a record label that is independently funded and not connected to one of the Big Three major labels. Indie labels range from home based hobby labels to highly profitable, large businesses. Now some large indie labels are actually distributed by the Big Three. Independent Record Labels
- 13. Indie labels often face an uphill battle trying to get their music heard, as they typically have far fewer financial resources to promote their music. Despite the struggle, many labels have survived, and thrived, for years. Many other indie labels may not have lasted forever but had a tremendous impact on music both creatively and in terms of business. Independent Record Labels
- 14. Rough Trade – started in the back of a Notting Hill record shop (Antony and the Johnsons and The Strokes) Creation Records – started one of the biggest nineties acts Oasis, and the popular Primal Scream with a grunge / garage sound. Factory – put Manchester on the musical map. Had a distinct character and sound (Joy Division and New Order) and was quite unorthodox in it’s practise. XL Recordings – sounds like a who’s who of contemporary British sound. Dizzee Rascal, MIA, Vampire Weekend and recently signed Tyler the Creator. Warp – a Sheffield label with a popular techno sound e.g. Autechre but has signed other more indie bands eg. Grizzly Bear. Big importance on relationship with designers and visual stimulus. Domino – a South London label that has worked with The Arctic Monkeys, Franz Ferdinand. A rock influenced label which turns high profit due to headliners. Some British Independent Labels
- 15. Some American Indie Labels Fools Gold – pioneering Hip hop and techno sound (Kid Cudi, Duck Sauce, Danny Brown) Dualtone – Nashville based country folk label (Lumineers and Little Comets) as well as doing many tributes to legends like Johnny Cash. IAMSOUND – Hipster pop sound with a UK underground edge (Florence and the Machine, Little Boots, Io Echo) Mad Decent – pushing the geographic boundaries of electro. (Diplo, Baauer, Riff Raff.)
- 16. More creative - a find more new talent, creative tactics for marketing, build better brand loyalty Speed - not encumbered by long corporate approval process, can understand artists and trends faster Make better and more creative use of new media technologies Better regional connections Advantages of Independent labels
- 17. Which record label would you like to publish your work and why? Give detailed reasons and compare to other labels (Majors, Independents, etc.) Activity
- 18. What is wrong in the Music Industry?
- 19. Cost of CDs Marketing of music is so important in popular music. New releases need a music video andTV time, as well as radio time. Where do you think the money goes in a £ 9 CD?
- 20. Music CDs - the Cost Share of $15 US CD Retail Overhead 21% Distribution 5% Musicians Union 1% Packaging 5% Retail profit 5% Marketing Promotion 22% Artists Royalties 9% Publishing Royalties 5% Label Profit 10% label overhead 17% Note how much of the cost of a CD goes into marketing and promotion(this would include the video) How much goes to the artist in a £9 CD?
- 21. Either working in groups of two or as an individual you need to research one Major and one Minor label Provide a history of the label, profile of their image/style, case studies of some of the artists they promote, see if you can find out about their worth (££££) and how they made their money. Compare and contrast the way they market artists. Post to your blogs! Activity