The music industry

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The music industry

  1. 1. STATE OF PLAY What is the music industry like, who is in control, what does the future hold?
  2. 2. The US Music Industry What does it cover? • 3000+ Labels • 30,000 new releases a year Where are they based? • New York, LA and Nashville What do they do? • Talent acquisition • Contractual arrangement with artists and managers • Marketing an Promotion • Enforcement of copyright
  3. 3. The US Music Industry Money • Global Sales 18 billion (2008) • US market 5 billion What do they sell? • CDs • Vinyl • DVDs • Downloads • Streams • Ringtones • Merchandise
  4. 4. How Does it Work? Recorded Music Wholesale to Distributors Retail Direct to consumers CDs/DVDs/ Vinyl Online Cellphones Licensing Film TV Radio Internet Cafes
  5. 5. The Labels The Majors • Major distribution, dominant the market Independents • Lack ability of major distribution Sub-Labels and Imprints • separate companies or division owned or distributed by the major labels Specialty Labels • non traditional distribution, focus on non-mainstream
  6. 6. The Majors Majors control approx. 75% of the worlds music, and 80-90% of the US market. All of these companies have non music divisions as well. Universal (owned by Vivendi French based company) Sony Music Entertainment (US based subsidiary of Japanese company) Warner Music Group (US based, owned by Time Warner) EMI Music Group (British and in serious trouble 1.75 billion losses in 2009)
  7. 7. Vivendi/Universal ABBA Aerosmith Akon Amy Winehouse Backstreet Boys Black Eyed Peas Blink 182 Bob Marley The Cure Chamillionaire Cheryl Cole Eminem Enrique Iglesias Fall Out Boy George Michael Green Day Hoobastank Incubus James Blunt Jennifer Lopez Johnny Cash Kanye West
  8. 8. Sony Music AC/DC Avril Lavigne Beyonce Bob Dylan Britney Spears Fatboy Slim Foo Fighters MGMT Michael Jackson Good Charlotte Glee Iron Maiden JLS Justin Timberlake Kings of Leon Korn Madonna
  9. 9. Warner Music Bee Gees Gnarles Barkley Cher Phil Collins Death Cab for Cutie Dire Straits The Eagles Prince Prodigy Paris Hilton Jime Hendrix Kid Rock Linkin Park Nine Inch Nails Notorious BIG Oasis
  10. 10. EMI Music Group Elvis Presley Pink Floyd 30 seconds to Mars Lily Allen AFI Beastie Boys Black Sabbath Coldplay Daft Punk Dizzee Rascal Duran Duran Gorillaz G Unit Jane’s Addiction Spice Girls Mariah Carey
  11. 11. Advantages… Major Labels Well Financed = better production, distribution, marketing and talent acquisition Can offer artists stability, prestige, advances, top production resources Independent Labels More creative - find a new talent, use creative tactics for marketing etc., build better brand loyalty Speed - not hindered by long corporate approval processes, can understand artists and trends faster Better regional connections
  12. 12. Activity In groups, research a record label and create a poster which includes (but not limited to) answers to the following… •Is the label part of a bigger ‘music group’? •What other interests do they have? •Do they own any other labels? •What key artists are signed to the label? •What is a 360 degree deal? •Do they offer 360 degree deals? With whom? •What have they done in the light of the digital revolution? •What sort of position are they in for the future?
  13. 13. Problems with the industry
  14. 14. What are you actually paying for? Marketing of music is important in popular music and new releases need a music video and TV time as well as radio play. Note how much of the cost of a CD goes into marketing and promotion (this would include the video) and how much to the artist. What do you think you are paying for when you buy a £9 CD?
  15. 15. The price you pay… Share of $15 US CD Retail Overhead 21% Distribution 5% Musicians Union 1% Packaging 5% Retail profit 5% Marketing Promotion 22% Artists Royalties 9% Publishing Royalties 5% Label Profit 10% label overhead 17%
  16. 16. Which label? As a new artist, which label would you want to represent you and why? Give reasons for your answer.

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