MUC110 LEC1. Overview of Recorded Music Industry


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Overview of the Recorded Music Industry

MUC110 LEC1. Overview of Recorded Music Industry

  2. 2. U.S. RECORDING INDUSTRY Overview • 3000+ Labels; ; • 30,000 new releases per year Primary activities: • Talent acquisition through A&R (Artist & Repertoire); • Contractual arrangements with recording artists and their managers • Prod ction manufacture, distribution Production, man fact re distrib tion • Marketing and Promotion of recorded music • Enforcement of copyright p py g protection of sound recordings g • In the U.S. the Industry is centered, primarily, in NY, LA, and NASHVILLE with activity in Atlanta and Miami also Miami, also. © 2007
  3. 3. RECORDED MUSIC INDUSTRY REVENUE RECORDED Global Sales: MUSIC $18 Billi Billion 2008 US Sales: $5 Billion Products: 2008 CDS Vinyl DVDs Downloads D l d Streams g Mobile/Ringtones Merchandise © 2007
  4. 4. RECORDED MUSIC CHANNELS WHOLESALE: RECORDED To Distributors MUSIC RETAIL: LICENSING: Direct to Consumers Film TV •Bricks and Mortar Radio •Online Internet I t t •Cell Phones Background Music © 2007
  5. 5. Label Types • The Majors: major distribution; dominant market share • Independents: lacking major distribution; can be large or small, “Major Minors” • Sub-labels & Imprints: separate companies or divisions owned or distributed by major labels • Specialty labels: non-traditional distribution; focused on non-mainstream genres (i.e. classical, gospel) Distribution channels & market share define record label types yp © 2007
  6. 6. The Majors • Divisions of an Multi-national conglomerates, which usually have other non-music divisions. • Majors control approx. 70% of the world music market, and 80-90% of the United States music market. • Universal– Universal Music Group is a subsidiary of French Global Telecom/Entertainment company (Universal/Vivendi) • Sony Music Entertainment— American-based subsidiary of Japanese Electronics Company • Warner Music Group– Publicly traded, U.S. Based • EMI Music Group– Privately held, British-based Global Music Group © 2007
  7. 7. Major Music Company Corporate Structure Corporate Conglomerate Media-TV, Telecom Music Group Gas, Water, other Music non-music Record Publishing Distribution activities Label(s) Company p y © 2007
  8. 8. VIVENDI/UNIVERSAL MUSIC GROUP Island Def Jam Music Universal Motown Group Records Interscope Geffen Decca A&M Records Deutsche Grammophon p Lost Highway Verve Records GRP MCA Nashville Impulse! Records Mercury Nashville Mercury Records M R d Polydor © 2007
  9. 9. SONY Arista Zomba Label Group Arista Nashville Legacy Bluebird Sony Latin BNA Records Label Masterworks Burgundy Records Provident Label Columbia Group Columbia Nashville RCA Epic RCA Nashville Jive RCA Victor J Records Sony Wonder Verity Group y © 2007
  10. 10. WARNER MUSIC GROUP Atlantic Reprise Records Asylum Rhino Bad Boy B dB Roadrunner R R d Records d Entertainment Rykodisc Cordless Sire Recordings WB Nashville East West WB records Elektra Warner Music Intn’l Lava Word Records Maverick M i k Nonesuch © 2007
  11. 11. EMI MUSIC GROUP Angel Manhattan Astralwerks Mute Blue Note Parlophone Capitol Virgin Capitol Nashville EMI Classics EMI CMG EMI Records EMI Televisa Music © 2007
  12. 12. ADVANTAGES OF MAJOR LABELS: Scale WELL FINANCED: Can afford better… • Production • Distribution- major networks • Marketing • Talent Acquisition • And, sometimes, manufacturing • INDUSTRY PERKS: Can Offer artists… • Stability • Prestige P ti • Advances • Top production resources op p oduct o esou ces © 2007
  13. 13. Advantages of Independent Labels: Vision & Knowledge g MORE CREATIVE: • Can find more raw talent • Can use creative development, marketing and financing tactics • Can build better brand loyalty among fans y y g • SPEED: • N t encumbered b l Not b d by long corporate approval processes t l • Can understand artists and trends faster • REGIONAL CONNECTIONS: • Better regional connections for publicity and sales © 2007
  14. 14. Record Label: Key Activities Internal: • Talent Development • Artist P d t M k ti A ti t Product Marketing • Legal • Providing service to the artists External: • Sales & Distribution • Marketing and Promotions • Providing service to distributors and retailers © 2007
  15. 15. Record Label: Departments SPECIAL MARKETS INDIE RADIO PROMOTER PRGRM DIRECTOR A&R PRODUCT MKTG- PRESS ARTIST DEVELPMNT NOTE: This is a sample organizational chart. Depending on the size of the Record Label, the departments may be combined or organized in a different configuration. © 2007
  16. 16. Record Label Business Structure: Key Functions Leadership/Vision Talent Marketing & Admin Manufacturing Aquisition Sales Product Pressing A&R Management g Business Affairs Packing Marketing Legal Inventory Promotions Management Sales/ Accounting Distribution Royalty/ Creative Creati e Affiliate Services Management © 2007
  17. 17. Record Label Business Structure: Department Heads CEO/President CEO/P id t (Chief Executive Officer) General COO CFO CTO Counsel C l Administration Technology Legal Finance Human Information Affairs Accounting Resources Mngmnt Business Marketing & g Online Affairs Aff i Sales Security © 2007
  18. 18. For Educational Purposes Only Please do not copy or distribute © 2007