Final business report on Roadrunner Records

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A Market Analysis for
Logan Collins
Full Sail University
Project & Portfolio II: Business and Marketing
7/29/21

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EXECUTIVE SUMMARY
This analysis looks at Roadrunner Records’ current market. It looks at the at the impact
COVID has had on Roadrunner Records’ revenue. This report includes ways on how Roadrunner
Records’ can increase the awareness of their label and increase revenue.

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OBJECTIVE
Roadrunner is looking for the next step in keeping their company up to date with trends
and how to expand to newer/younger audiences to lead to increase in revenue in their streaming
and concert departments.
RESEARCH METHODOLOGY
I found my sources online. They are external and both qualitative and quantitative. It was
gathered over the period of a week. They are all recent, made in the past two years. It was
troublesome to find evidence that had the numbers I was looking for and supported my theory.
RESEARCH AND KEY FINDINGS
Roadrunner records is a music label that gains its revenue from concerts, streams, and
merchandise. It is for fans of heavy metal, hard rock, and rock music and lifestyle, Roadrunner
puts on high energy, interactive concerts with relatable artists. Anyone that attends one of
Roadrunner’s concerts will be able to spend one on one time with their favorite artists for far
more less than artists on bigger labels.
Before the pandemic bands would tour around their home countries, but when concerts
stopped, they had to find new ways to interact with fans. At the beginning of 2020 Roadrunner
Records’ revenue was 59.7 million, but it decreased to 52.7 million by the end of 2020.
Roadrunner has opportunities to sign new and upcoming artists, as well as new products and
services. However, the fact that their revenue has dropped compared to past years and deals with
artists are pricier could hurt them.

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TikTok has 689 million monthly active users, while 70% of American teens have an active
account on TikTok. TikTok bases
its algorithm off user interactions,
like video likes and shares,
accounts followed, and videos
created. Runtime, sounds, and
hashtags also play a role in what
videos reach who. When users
watch specific videos, they are
more likely to see similar videos
in the future. (Mullery, 2021)
Because of TikTok many creators have been able to gain traction and advance further in
their careers. Some bigger examples of this
would include Ashnikko. Ashnikko saw her
song “Stupid” reach 1 billion views in three
weeks on TikTok. This success then went to
gain 16 million streams on Spotify and
reached the top of music charts. As for
musician Lil Nas X, he took his music to
TikTok in the format of a meme. His song,
Old Town Road, generated thousands of
views on his music video. Since then, Lil
Nas X now has two Grammy awards.

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CONCLUSIONS
Current market trends suggest that expanding to hotter social media sites would help
Roadrunner Records help gain a new level of reach to newer and younger audiences, which in
return would drive an increase in revenue from their streaming and concert departments.
RECOMMENDATIONS
My findings show that to capitalize on this opportunity Roadrunner should use a tactical
plan. Roadrunner should create videos of their top 3 artists and two more underground artists that
include behind the scenes, as well as have them participating in trends. This is attainable because
this social media platform is free and easy to use. It is also relevant because it is one of the
largest and most popular social media apps now, and there is already a space for alternative
creators on the app. I recommend that they have these artists post at least three times a week, a
month prior to their event. In doing this Roadrunner would be able to educate more people on
their brand and what they do and generate more fans, that would in return bring more revenue.

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REFERENCES
7 most-followed singers that got famous From TikTok (2021 UPDATED). Gemtracks Beats.
(n.d.). https://www.gemtracks.com/guides/view.php?title=singers-that-got-famous-from-
tiktok&id=341.
Mullery, S. (2021, April 12). How the Tiktok algorithm works in 2021. Tinuiti.
https://tinuiti.com/blog/paid-social/tiktok-algorithm/.
Novak, T. (2020, May 21). The rise of TikTok and understanding its parent Company,
ByteDance. Turner's Blog. https://turner.substack.com/p/the-rise-of-tiktok-and-
understanding.
Roadrunner records. Discogs. (n.d.). https://www.discogs.com/label/34268-Roadrunner-
Records.
Strapagiel, L. (2019, April 9). How TikTok Made "old Town road" become both a meme and a
banger. BuzzFeed News. https://www.buzzfeednews.com/article/laurenstrapagiel/tiktok-
lil-nas-x-old-town-road.
APPENDICES