2. • As of 2007, there had been 3000+ new labels
set up, which had released 30,000 products.
3. Primary activities
• Contract arrangements with the artists and their
managers
• Production process, manufacture, distribution
• Marketing and promotion of recorded music
• Enforcement copyright protection of sound
recordings
• The music industry in the US is centered in NY, LA
and Nashville.
4. Revenue
Recorded Music Global sales (2008)
$18 billion
U.S sales (2008)
Products: £5 billion
CD Streaming
Vinyl DVD’s Mobile/ringtones
Digital downloads Merchandise
5. Music Channels
Wholesale:
Recorded Music To distributors
Listening: Direct customers:
Film Internet • Bricks and mortar
TV Background music (shops) • Online
Radio
• Cell phones
6. Label types
• The ‘Majors’ – major distribution; dominant
type
• Independents – lacking major distribution; can
be large or small
• Sub-labels & imprints – separate companies or
divisions owned or distributed by major labels
• Speciality labels - focused on non-mainstream
genres e.g. Jazz, classical, gospel
7. The Majors
• Divisions of a multi-national conglomerates
which actually have other non-music divisions.
• Majors control approx 70% of the world’s
music market, and 80-90% of the United
States’ music market.
Corporate Conglomerate
Media – TV, telecom
Music group
Gases, water, other
Record Music Distribution non-music activities
labels Publishing
Group
8. Labels; owners and sub-companies
• Universal – French global telecom/entertainment
(Vivendi)
– Island Def Jam Music Group
– Interscope Geffen
– Polydor
• Sony – Japanese Electronics
– RCA
– Columbia
– Jive
• Warner Music – Publicly traded, U.S based
– Atlantic
– Roadrunner Records
– Warner Music International
9. Advantages of major labels
Scale
• Well financed = can afford better production,
distribution and marketing.
• Industry perks = can offer artists stability,
prestige, advance and top production
resources.
10. Advantages of in independent labels
Vision and knowledge
• More creative:
– Can find more raw talent
– Can use creative development, marketing and
financing tactics
• Speed:
– Not encumbered by long corporate approval
– Can understand artists
11. Record label activities
Internal
• Talent development
• Artist product marketing
• Legal
• Providing a service to the artist
External
• Sales and distribution
• Marketing and promotions
• Proving a service to distributors and retailers
