Market Analysis Report

1. Market Analysis Report For
Def Jam Recordings
Vincent Harris
Full Sail University
Project & Portfolio II: Business and Marketing
August 29th
, 2019

2. Executive Summary
This is a market reportfor Def Jam recordings. This report will show the
currentrevenue status of Def Jam recording and their competitors. This report
will show how Def Jam can continue to increase their revenue by properly
executing whatthey are already doing. At the end of the analysis, this reportwill
show recommendations that will increase the audience of def jam records and
move them upon the ranking chart.

3. Objective
 To research, plan, and execute ways to increasethe profit and success of
the label as a whole.
 To increase downloads and streams
 To reach a larger audience
Research Methodology
The information in this report was gathered from using external and secondary
research found online. All info was collected in the month of August, 2019. There
is a combination of qualitative and quantitative research. Financial Information is
as current as 2019. Information on consumers, streaming and downloads arealso
current. All information was found to make accurate suggestions.

4. Research and Key Findings
Def Jam Recordings is an American
record label focused predominantly on
hip hop, pop, and urban music, owned by
UniversalMusic Group. Originally created
and founded by RussellSimmons. Def Jam averagerevenue is $21.4 million
dollars. Overall, def jam recordings comes in at #4 under the umbrella of
UniversalMusic Group (parentcompany).
Def Jam Records caters to the Hip Hop/urban music community. Its target
market is mainly African Americans, of all religions, between the ages of 19 and
34. Black listeners comprise 46% of the hip-hop radio audience, Hispanics make
up 25% and the remaining percentage is bi-racial, white or Asian,
(Brandongaille.com, 2015).
Streaming and downloading music has become the most popular way to
music consumers. Notonly is convenient, but it is also affordable. With
companies like apple music, that offers a fee of $5.99 a month to have
unlimited and immediate access to all music, streaming and downloading
music is the number way music consumers gettheir music. According to
research, 25.4% of US-based streams acrossaudio and video platforms wereof

5. hip-hop music in 2018, up from22.0% in the prior year.
(Musicbusinessworldwide.com, 2019)
There are numerous music labels that closely competes with Def Jam
recordings such as Capital Records, Republic Records, and InterscopeRecords.
Collectively, these labels make up a revenueof over $300 million dollars.
Onemajor weakness of Def jamrecordings is a lack of uniqueness in all of the
artist that are signed to the label. Another weakness is the constant changein
leadership of the label. However, there are still somestrengths that allows Def
Jam to be the fourth most successfullabel under UniversalMusic Group. One
being, the ability to expand their brand outside of music.

6. Conclusion
Based on research, Def Jam records will be always be a top contender when
it comes to its competitors. Def jamrecords is on the a continued path to success.
Some of today’s mostsuccessfulartistaresigned and producing music under the
Def jamrecords umbrella. However, there is roomfor improvement. Streaming
and downloading music has contributed to the overall success of the music
industry. Especially Def Jam, because of artist such as Rihanna and Jay-Z. In the
future Def Jam should really focus on increasing their audience.
Recommendations
Based on research, moving forward def jamshould focus on expanding their
audience. The major competitors of the label are those that cater to more than
one genre of music. Def Jam should increasethe number of features their artist
appear on in different genres of music, especially pop music and country music.
Research has shown that thoseare the two mostsuccessfulgenres of music.
Expanding their audience can lead to major increases in revenue. Building
relationships with other labels, preferably the 3 labels that ranks beforedef jam,

7. can increasethe number of fans of the artiston Def Jam. For example, If Jay-z
collaborates with a pop artist for a song that will gain the attention of the
audience that follows that artist. New genres of music, leads to audience
expansion, which leads to increasein revenue.
I would also recommend that the label continue to not spend money on
physicalCD distribution. Research has proved that downloading and streaming
music has been much more successfulthan physicalCD distribution. This is way
that Def Jam can save money, that also contributes to the increase of money the
label possesses.
In the future, it is recommended to track the labels monthly revenue,
especially after expanding the music genres. This will help to determine if the
suggested plan has produced result.

8. References
/@iamjustinpatton. (2018, November 08). TheRelationship Between Hip-Hop And
Politics. Retrieved from https://medium.com/@iamjustinpatton/the-relationship-
between-hip-hop-and-politics-e5ff5b355e53
Gaille, B. (2015, August10). 25 Good Hip Hop Demographics. Retrieved from
https://brandongaille.com/25-good-hip-hop-demographics/
How hip-hop is introducing children to coding and technology. (2017, August23).
Retrieved fromhttps://www.economist.com/prospero/2017/08/23/how-hip-hop-
is-introducing-children-to-coding-and-
technology?zid=319&ah=17af09b0281b01505c226b1e574f5cc1
Ingham, T. (2019, January 06).More than 1/4 of all music streamed in the USA
last year was hip-hop. Retrieved from
https://www.musicbusinessworldwide.com/more-than-1-4-of-all-music-
streamed-in-the-us-last-year-was-hip-hop/

9. Marie, E. (2019, July 30). Katy Perry Copied Christian Rapper's Track To Create
"Dark Horse," Jury Finds. Retrieved fromhttps://www.hotnewhiphop.com/katy-
perry-copied-christian-rappers-track-to-create-dark-horse-according-to-jury-
news.86940.html
Staff, P. (2018, February25). 'TheBig Payback'Explains the Economics of Hip-
Hop's Explosive Growth. Retrieved fromhttps://www.popmatters.com/134972-
the-big-payback-explains-the-economics-of-hip-hops-explosive-growth-
2496097260.html