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Music industry

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Music industry

  1. 1. MUSIC INDUSTRY A change of tune….
  2. 2. AGENDA Timeline Value Chain: Before How is the money distributed? Value Chain: After Who keeps the cyber money? Trends in the Industry Value Chain: After Conclusion
  3. 3. Music Industry: Timeline
  4. 4. Music Industry: Timeline
  5. 5. Music Industry: Timeline
  6. 6. Music Industry: Timeline
  7. 7. Music Industry: Timeline
  8. 8. Major music markets
  9. 9. Value Chain: Before SW Production and Content Providers Distributors Service •Record Labels • Mastering Studios • Record Labels • Music Producer • Retailers HW Risk!!!Record labels invest in their top artists, it is hard to predict the next “HIT”
  10. 10. Content Providers Contract between artist and Record Label • New Artists  Select producer, recording studios, additional musicians and songs to be recorded • Established artists Label less involved in the recording process 9.55% 15% 18.13% 25.61% 31.71%
  11. 11. Production & Services Use numerous different technologies • Main mixer • Outboard effects gear • Recording device Record Mixing Labels Enginners Mastering Individual Studios Producers
  12. 12. Distribution 1. Major Label vs. Independent 2. Sub-distributors 3. National, regional or international 4. Niche distributors 5. Printed or sheet music distributors Chains Record Distributor’s Consumers Labels Sales Reps Independent Stores
  13. 13. Music Industry RolesComposers Music Publishing Lyricists Companies Record Retailers Consumers Companies Performing artists Distributors Promotional Channels Right Agencies How are the Copyrights moving??
  14. 14. $$$ Chain: Before $15.99Artist Label Retail Misc. CD10% 60% 29% 1%$1.60 $9.60 $4.64 $0.16
  15. 15. Want to go online? SW Production and Content Providers Distributors Service HW
  16. 16. Value Chain: After SW Production and Content Providers Distributors Service • Record Labels • Web-based and • Record Labels • Individual Artists proprietary tools • Online Channels WEB 2.0 HW
  17. 17. Skipping the Gatekeepers
  18. 18. $$$ Chain: After $9.99Artist iTunes Label Album14% 30% 56%$1.40 $3.00 $5.59 “Artists may earn less from an album sold on iTunes than from a CD”
  19. 19. Control Chain: After
  20. 20. Record Labels: Change Or Die
  21. 21. Trends in the Music Industry• Value is in the artists brand, not record label – social networks• Move from full-length album to singles – Promotion in spurts around album release or constant promotion with constant releases? – Kanye’s Good Friday• Revenues coming from sponsorships, licensing, and live performances
  22. 22. Trends: Content is• The cream rises to the top• Need to be a true entertainer and performer, not just on record• Music more prevalent than ever before – easily transferable and transportable – easier to find niche market content
  23. 23. Trends: Costs in the Online Age• Recording costs near zero• Distribution costs near zero• Marketing & promotion costs go up – Need to break through the noise
  24. 24. Trends: Piracy Effects• Free music leads to more sales?• Value in building a community
  25. 25. Trends: Music as a Service• Radio is no longer the main discovery tool for new music• Streaming vs. Subscription• Ownership vs. License
  26. 26. Trends: Via Mobile
  27. 27. Conclusions

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