This analysis report for Atlantic Records was completed in February of 2022. The analysis was compiled through the use of initial company research, SWOT and STEEPLE analysis, and other external sources. 

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A Market Analysis for
Atlantic Records
Venisha Brown
Full Sail University
Project & Portfolio II: Business and Marketing
27 February 2022

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EXECUTIVE SUMMARY
This report explores the growing independent artist segment and its effects on the
recorded music industry. Atlantic Records, a major provider in recorded music and distribution,
stands directly in between the major threats that could potentially affect their competitive
advantages. This report details the threats towards record labels and provides valuable insight on
the effects that the growing trend will have on the industry, as well as, opportunities and
recommendations to overcome these threats.

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OBJECTIVE
The purpose of this analysis for Atlantic Records is to explore the growing trend of
independent artistry and identify gaps between the company's current business practices and the
future of music recording and publishing.
RESEARCH METHODOLOGY
The information contained in this report is mostly from external, secondary sources
from the internet and online databases. The information was obtained during February of 2022,
and is as current as, 2022.
RESEARCH AND KEY FINDINGS
Atlantic Records, founded in 1947, is a pioneer in recorded music production and has
quickly become an entertainment industry success through artists such as Aretha Franklin, The
Rolling Stones, and Otis Redding. Atlantic was purchased by Warner Bros. Records in 1967,
now Warner Music Group. The label is home to popular artists such as Ed Sheeran, Bruno Mars,
and Cardi B (Ingham, 2021).
Atlantic Records is on the verge of a public relations crisis, due to the online backlash
being faced from the company's past and present artists. Several of the label’s artists have openly
expressed their grievances with the company. Recently, Atlantic Records hip-hop artist, NBA
Youngboy took to social media, and his 10 million followers, to express his dissatisfaction with
the record label (Blanchet, 2022). The rapper made two separate posts to his Instagram page
(@nba_youngboy), one stating “don’t sign to Atlantic” and the other, “don’t sign to Atlantic
unless you want to be a slave.”

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This is not the first-time artists have publicly criticized the label; In 2010, a dispute
between the label and hip-hop artist Lupe Fiasco, led hundreds of fans to protest in front of the
label’s office (Brown, 2020). Additionally, Atlantic rapper Meek Mill (@MeekMill), voiced his
concerns with the label to his 11 million Twitter followers. In a series of tweets, the rapper states,
“they outsmarting young black kids taking advantage and calling it business! Other artists speak
up and tell the truth while you are winning not when you down” (Mahadevan, 2022).
Forbes Business Council member, Justin Grome, explains the reasons behind many artists
dissatisfaction with their record labels. “360 deals mean record labels own everything associated
with you and your name. Money is often one of the most important things for labels, and
sometimes they are in control of how you spend your earnings, too” (Grome, 2021). This has led
to a growing trend of independent artistry. As explained by music industry veteran and CEO, Lee
Parsons, “What we’ve seen in the last few years is that artists who are signed to record labels are
realizing they don’t see much money. Artists are looking at independent companies and methods
for ways to keep a lot more revenue” (Wang, 2018).
According to The Raine Group’s independent artists sector analysis, “The fastest-
growing segment of the music industry is the independent artist sector, defined as the revenue
generated by the master recording of all artists not signed to a major or to an independent record
label” (The Raine Group, 2020). The report also suggests that advancement of the digital
ecosystem allows artists to “no longer be reliant on CDs and legacy physical production supply
chains to reach their legions of fans worldwide” (The Raine Group, 2020). The chart below, from
The Raine Group’s analysis, demonstrates the actual revenue generated by independent artists in
2019 and estimates for 2020.

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In response to the growing sector of independent artists, more companies are updating
their business strategies to target these independent artists. In April of 2021, SoundCloud
launched Repost by SoundCloud, a marketing and distribution platform, for independent artist.
(Stassen, 2021). Repost by SoundCloud has also developed partnerships with other entertainment
companies, including Nappy Boy Entertainment and CAD Management, to create “promising
independent artists” (Stassen, 2021).

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With the independent artists sector growing, “major record companies now struggle to
ink deals with artists in accordance with the contracts these companies were once able to get
signed” (Ingham, 2019). This had led to “the amount of money labels are paying to sign and
develop artist mushrooming, while increasingly eating into these companies’ potential profits”
and “advances paid to ‘hot’ artists are anecdotally cranking up as labels behave in a more fiscally
competitive manner” (Ingham, 2019). The chart below, from the International Federation of the
Phonographic Industry (IFPI), demonstrates the growing increase in record label artists spending
between 2008 and 2017, note that in 2017 the overall artists spending was up nearly 30% from
the previous year.

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The chart below, from Midia Research, represents and compares the average annual
income percentages between independent and label artists. The data suggests that “independent
artists earned an average of $12,860 a year off music, and label artists earned an average of
$23,913. About three-quarters of independent artists earned less than $10,000 a year from music,
compared to 61% of label artists” (Daniels, 2019). The findings in this data also suggests that
“being signed to a label, while it can be beneficial for sales and distribution, doesn't guarantee
financial success” (Daniels, 2019). Diego Farias, CEO of Amuse, states that the growing
independent segment is “something happening that’s going to impact the industry profoundly”
(Daniels, 2019).

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CONCLUSIONS
Atlantic Records may need to make significant adjustments to their business model and
strategies to remain competitive in a quickly evolving industry. With threats of customer
disloyalty and public backlash, and the growing segment and opportunities for independent
artists, Atlantic Records must act quickly to address areas of dissatisfaction and make necessary
changes to appeal to the market.
RECOMMENDATIONS
Based on the research findings, Atlantic Records could consider a few different options.
One of the most effective strategies, that may increase the company’s profit margin, is to develop
an initiative aimed at developing and assisting independent artists. By the end of 2022, The
company should have a plan in place establishing their reach into the independent artist
segment. In this plan, the company should have established which partnerships with additional
entertainment companies, including talent management companies, music producers, digital
service providers, and other creators, will help to build a program that renegotiates
ownership, control, and territory in favor of the artists.
This recommendation is strategic, as the future of the changes in the industry are unclear,
however, expanding into a quickly growing segment with the proper knowledge and tools, will
give the company an advantage over competitors. It is recommended that another analysis report
be conducted with quarterly reviews of the changes in the industry and segmented market.

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REFERENCES
Blanchet, B. (2022). YoungBoy never broke again calls out label amid claim he's being
blackballed: 'they not gone support you' (update). Complex. Retrieved February 27,
2022, from https://www.complex.com/music/youngboy-never-broke-again-calls-
out-label-being-blackballed-not-gone-support-you
Brown, P. (2020,). 15 times rappers have fought to leave bad contracts. Okayplayer.
Retrieved February 27, 2022, from https://www.okayplayer.com/music/rappers-
bad-contracts.html
Daniels, M. (2019). Why independent musicians are becoming the future of the music
industry. Forbes. Retrieved February 27, 2022, from
https://www.forbes.com/sites/melissamdaniels/2019/07/10/for-independent-
musicians-goingyour-own-way-is-finally-starting-to-pay-off/?sh=7b96fff014f2
Grome, J. (2021). Council post: Independent artist or record label deal: The entrepreneurial
differences. Forbes. Retrieved February 26, 2022, from
https://www.forbes.com/sites/forbesbusinesscouncil/2021/04/12/independent-
artist-or-record-label-deal-the-entrepreneurial-differences/?sh=7b8c6b9137ea
Ingham, T. (2021). Warner Music Group. Music Business Worldwide. Retrieved February 6,
2022, from https://www.musicbusinessworldwide.com/companies/access-
industries/warner-music-group/
Ingham, T. (2019). Record labels are spending more and more on signing (and paying)
artists... Music Business Worldwide. Retrieved February 27, 2022, from
https://www.musicbusinessworldwide.com/record-labels-are-spending-more-and-
more-on-signing-and-paying-artists/

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Mahadevan, T. C. (2022). Meek Mill airs out Atlantic Records over alleged label tactics
involving Roddy Ricch and Rick Ross. Complex. Retrieved February 13, 2022, from
https://www.complex.com/music/meek-mill-calls-out-atlantic-records-label-tactics-
roddy-ricch-rick-ross
The Raine Group. (2020). Defining and sizing the music industry’s fastest growing sector. The
Independent Artist Sector. Retrieved February 27, 2022, from
https://www.musicbusinessworldwide.com/files/2020/03/The-Independent-Artist-
2020.03.14-vEXTERNAL.pdf
Stassen, M. (2021). Soundcloud's repost partners with Linda Perry, T-pain's nappy boy
entertainment and others to develop 'promising independent artists'. Music Business
Worldwide. Retrieved February 27, 2022, from
https://www.musicbusinessworldwide.com/soundclouds-repost-partners-with-linda-
perry-t-pains-nappy-boy-entertainment-and-others-to-develop-promising-independent-
artists/
Wang, A. X. (2018). An indie music expert explains why artists are turning away from record
deals. Rolling Stone. Retrieved February 26, 2022, from
https://www.rollingstone.com/pro/news/ditto-music-lee-parsons-interview-749510/