Music Industry G322
6 mins- 6 words- offer an example if you can
Sony Music Entertainment
The Music Industry is made up of many people from songwriters,
producers, artists, managers, marketing, distribution etc. It is a
vast industry but is largely controlled by the record companies
The music industry is dominated by the ‘big four’ or the music majors:
According to an IFPI report published in August 2007 the big four
accounted for 71.7% of retail music sales
This means that they operate in an oligopoly where a few companies
control the market.
These companies are designed to reach the maximum audience and
therefore will also have subsidiary companies that will deal with niche
tastes as well as mainstream. Universal for example also own Verve
which are a specialist Jazz music company
Other than EMI the majors are conglomerates
this means they are a multi industry company and
own other companies that are not part of the music industry
This makes these companies increasingly dominant.
They can also benefit from Horizontal Integration. This is where they can
link together their different companies in their portfolio and
promote their products=Cross promotion
Ring Tones on
Read the Simon
Cowell article from
Your booklet-how does this
is the degree to
which a firm owns
suppliers and its
Can self distribute
Using other companies/outlet to promote artists which are mutually
beneficial to both companies. Sales of music through other avenues.
Working in partnerships
These companies operate separately from the majors and often specialise
in music genres and may cater for niche audiences.
Domino is now one of the longest running and most successful
independent record labels in the UK.
Artists include: The Artic Monkeys and Franz Ferdinand
They don’t have the benefits of synergy and etc but offer artists better
deals and are more like partnerships/freedom etc
From the homework article:
How can you benefit from being an
Select an independent British Record label and
research the following:
Genre of music
What is the benefit of being signed to an indie label?
What is the benefit of a major?