The document discusses various topics related to the music industry, including illegal downloading, conglomerate ownership of music companies, and how the industry has changed with new technologies. It notes that while 14-25 year olds are no longer buying much music, the BRIT awards still take place. It also discusses pros and cons of conglomerate ownership, including greater resources but less creative freedom. The impact of illegal downloading and potential solutions are debated, including online music stores in response to free downloading. Overall the document examines many issues facing the modern music industry.

1. StarterStarter
 If 14-25 year olds are no longerIf 14-25 year olds are no longer
buying music then why do thebuying music then why do the
BRIT awards still take place?BRIT awards still take place?

2. StarterStarter
 Re- Read the challenge of IllegalRe- Read the challenge of Illegal
Free pages form the BPI booklet.Free pages form the BPI booklet.
 Discuss findings with your partner.Discuss findings with your partner.

3. Panorama- The Net Police
 Watch this BBC PanoramaWatch this BBC Panorama
documentary’ on downloadingdocumentary’ on downloading
‘Are the Net Police Coming’.‘Are the Net Police Coming’.
 https://www.youtube.com/watch?v=gwoPTYTLcRghttps://www.youtube.com/watch?v=gwoPTYTLcRg
 Make notes on:Make notes on:
 The impact on consumersThe impact on consumers
 The impact on the industryThe impact on the industry
 The impact on artistsThe impact on artists

4. The Digital Economy Bill- 2009The Digital Economy Bill- 2009
 Pros:Pros:
 Decrease in illegal file-sharing.Decrease in illegal file-sharing.
 Long run more money into the industry.Long run more money into the industry.
 Cons:Cons:
 Infringement of civil liberties. Not all IPs gotInfringement of civil liberties. Not all IPs got
involved- loss of internet freedom.involved- loss of internet freedom.
 Criminalisation of Internet use.Criminalisation of Internet use.

5. Conglomerate ownership of musicConglomerate ownership of music
Aims:Aims:
To examine the pros and cons ofTo examine the pros and cons of
conglomerate ownership of the industry.conglomerate ownership of the industry.

6. Music Industry-Music Industry-
Traditional Business ModelTraditional Business Model
 Demo/ discovered playing live.Demo/ discovered playing live.
 New artist gets signed.New artist gets signed.
 Money is invested in promoting them- musicMoney is invested in promoting them- music
videos, radio airplay etc.videos, radio airplay etc.
 Song is play listed on radio and music TVSong is play listed on radio and music TV
channels.channels.
 Song has be made available via music retailersSong has be made available via music retailers
(HMV etc).(HMV etc).
 Revenue is distributed between recordRevenue is distributed between record
company, artist, distributor/manufacturercompany, artist, distributor/manufacturer
and retailer.and retailer.

7. Who are the significant companiesWho are the significant companies
in the music industry?in the music industry?
Think:Think: What do these companies have inWhat do these companies have in

8. What is a conglomerate?What is a conglomerate?
They are huge established companies that produce a varietyThey are huge established companies that produce a variety
of goods and services across different global territories.of goods and services across different global territories.
As a multi-national they employ thousands of people andAs a multi-national they employ thousands of people and
have huge marketing and advertising budgets.have huge marketing and advertising budgets.
 Multi- nationals sole aim is to make lots of money and to getMulti- nationals sole aim is to make lots of money and to get
BIGGER. They do this by ruthlessly buying out the opposition!BIGGER. They do this by ruthlessly buying out the opposition!
- They are mostly US owned.- They are mostly US owned.

9. Multi –nationals oligopolies in music.Multi –nationals oligopolies in music.
 What is an oligopoly?What is an oligopoly?
 ‘‘The big 3’ account for 71.7% of the global retail music sales:The big 3’ account for 71.7% of the global retail music sales:
 Universal Music Group — 39.5%Universal Music Group — 39.5%
 Sony Music Entertainment — 35.9% (incl EMI)Sony Music Entertainment — 35.9% (incl EMI)
 Warner Music Group — 11.3%Warner Music Group — 11.3%
 Independent labels — 28.4%Independent labels — 28.4%

10. Discuss:Discuss: What are the pros andWhat are the pros and
cons of multi nationalcons of multi national
conglomerates ownership of theconglomerates ownership of the
music industry ?music industry ?

11. Multi nationals- prosMulti nationals- pros
 Creates more consumer choiceCreates more consumer choice..
 Monopolies have more money and greater power thanMonopolies have more money and greater power than
smaller companies and are therefore able to offer more.smaller companies and are therefore able to offer more.
 Established brands are maintained.Established brands are maintained.
 Customers have confidence in well known brands.Customers have confidence in well known brands.
 Saves smaller labels from going under.Saves smaller labels from going under.
 Investment from large companies can save small companiesInvestment from large companies can save small companies
who cannot afford to compete.who cannot afford to compete.
 Creates advancements in media technologyCreates advancements in media technology..
 A number of smaller companies merging under the one canA number of smaller companies merging under the one can
afford to become more technologically advanced.afford to become more technologically advanced.

12. Multi nationals-consMulti nationals-cons
 Create Monopolies.Create Monopolies.
 When a single media organisation dominates production andWhen a single media organisation dominates production and
distribution in a particular industry. The music industry isdistribution in a particular industry. The music industry is
controlled by the ‘big four’.controlled by the ‘big four’.
 Exploits the consumer.Exploits the consumer.
 For many years the music industry was accused of exploitingFor many years the music industry was accused of exploiting
the consumer particularly over the price of CDs. In the modernthe consumer particularly over the price of CDs. In the modern
music consumer world, music can be obtained digitally for free,music consumer world, music can be obtained digitally for free,
forcing the music industry to create on line music stores.forcing the music industry to create on line music stores.
• Doesn’t allow smaller independent media companies to flourish.Doesn’t allow smaller independent media companies to flourish.
• The Smaller independent companies cannot compete with theThe Smaller independent companies cannot compete with the
big four, many of whom end up being bought out.big four, many of whom end up being bought out.
• Suppresses ‘creative freedom’ for the artists.Suppresses ‘creative freedom’ for the artists.
• Many artists have complained that their record label dictatesMany artists have complained that their record label dictates
their creative output, not giving them the freedom to make thetheir creative output, not giving them the freedom to make the
music they want to make. This is particularly true in themusic they want to make. This is particularly true in the
mainstream pop market where ‘the brand’ is very important.mainstream pop market where ‘the brand’ is very important.

13. Downloading V the multi-nationalsDownloading V the multi-nationals
 Watch this discussion withWatch this discussion with John Kennedy theJohn Kennedy the
chief executive of the BPI.chief executive of the BPI.
 http://www.youtube.com/watch?v=upmprBC2HiMhttp://www.youtube.com/watch?v=upmprBC2HiM
 Make notes.Make notes.

14. Downloading and the music industryDownloading and the music industry
 Assessment:Assessment:
 How has the music market in the UKHow has the music market in the UK
changed in the last few years?changed in the last few years?
 Write 500 words minimum in your analysis.Write 500 words minimum in your analysis.
 Your class notes.Your class notes.
 Include data points from the BPI findings.Include data points from the BPI findings.
 Your in class survey and other research data.Your in class survey and other research data.
 Notes from class including documentaries ( TheNotes from class including documentaries ( The
Sound of Song, Net Police, Downloaded) andSound of Song, Net Police, Downloaded) and
interview with John Kennedy.interview with John Kennedy.

15. Research
 Research: Find an article on one ofResearch: Find an article on one of
the big 3 music conglomerates.the big 3 music conglomerates.
 Summarise it into at least 6 points.Summarise it into at least 6 points.

16. TaskTask
 In groups put yourself in the perspectiveIn groups put yourself in the perspective
of a record company/multi national CEO.of a record company/multi national CEO.
 You are being asked by the government toYou are being asked by the government to
generate a possible solution to the issue ofgenerate a possible solution to the issue of
illegal downloading.illegal downloading.
 Consider:Consider:
 The benefits for the consumer.The benefits for the consumer.
 How the artist will benefit.How the artist will benefit.
 The practicalities of your idea. Will it work.The practicalities of your idea. Will it work.
 Is it ethical/legal?Is it ethical/legal?

17. Quick Research Task.Quick Research Task.
From record company you are given find outFrom record company you are given find out
the following:the following:
- When were they founded?- When were they founded?
- What other media industries are they involved with?- What other media industries are they involved with?
- Who are their biggest selling artists?- Who are their biggest selling artists?
- What larger multi-national owns them?- What larger multi-national owns them?
- How do they use new technology?- How do they use new technology?