Sony Music Entertainment is one of the "Big 3" major record labels in the world. As the world's fifth largest conglomerate, Sony is vertically integrated, owning companies that control every stage of music production and distribution. This allows Sony to receive full profits. Sony is also horizontally integrated, owning labels that represent different genres like pop, dance, and reality television artists. Together, Sony's vertical and horizontal integration strategies allow it to cater to all music audiences globally and control the entire music process.

1. CHOSEN RECORD
LABEL
By Alice Venard

2. Sony Music Entertainment
• Sony Music Entertainment (SME) is part of the ‘Big 3’
record labels, meaning it is part of the largest music and
entertainment companies in the world.
• Sony are a huge corporation, known for being the worlds
fifth conglomerate. Sony originates in Japan. After
developing Sony started to expand in porudction, they not
only focus on music but on electrical devices and films.
• No matter where you are in the world there will always be
the presence of a Sony/Big 3 product.

3. • Sony is a conglomerate institution meaning that it is made
up of lots of subsidiary companies.
• Sony is a major institution in the music industry and is well
respected.
• Sony accounts for more than 5% of the global music
market.
• However, this means that they are focused on the money
rather than the music like indie labels such as XL or
Rough Trade.

4. Vertical Integration
• Sony Music Entertainment are vertically integrated. They
have Sony DADC Digital Services which is part of Sony
Machine that deals with the production and distribution of
Sony’s digital products
• Due to it being Vertically intergrated it means that it has
it’s own ‘in house’ companies that control every stage
from production to distribution.
- this allows them to not have to rely on other companies.
• By doing this, Sony then receives full profit of the
company.

5. • Sony works with digital distribution giants such as
YouTube, My Play and Spotify (however they are
reconsidering their partnership with the free music
streaming website after their decline in sales)
• Vertically integrating has advantages like the ability to
globalise in a short amount of time but free access to
music can lead to piracy > peer to peer > loss of profit

6. Horizontal Integration
• Sony is horizontal integrated meaning that the company
caters for all sorts of music audiences
• Sony owns a range of labels that represent different
artists, this means that Sony can produce music for all
genres.
• SyCo is Simon Cowell’s record label which represents
that usually come from his reality TV shows such as
Leona Lewis, One Direction and Susan Boyle
• Columbia is home to various genres and has signed
artists such as Daft Punk, Beyoncé and Calvin Harris. –
Adele is signed with Columbia in order to distribute her
products in America