Sony husic Entertainment and theEvolution of the Music Indu.docxwhitneyleman54422
Sony h/usic Entertainment and the
Evolution of the Music Industry
A. J. Strickland
The Ilniversitg of Alabama
Andrew Pharaoh
2015 Undergraduate,
The Universitg of Alabama
d d A t such a pivotal time for music, it's more
ffi imRortant than ever to develop a fertile,d \ creative environment that generates the
highest quality of artists and music, while seeking to
fully exploit the many opportunities that new digital
services and products provide in reaching audiences
around the world."r
The remarks of Sony Music Entertainment CEO
Doug Morris in 2011 illustrated an accurate under-
standing of the environment of music sales. Morris,
a globally influential executive and music innovator,
agreed to join Sony Music Entertainment as chief
executive officer effective July 1, 201l. In a time of
great change in the music marketplace, it was abso-
lutely necessary that Sony take active steps to remain
competitive. Morris took the job graciously, but he
placed himself into a business whose margins were
becoming thinner and thinner. With a declining
industry that had been made less lucrative by the
wide availability of substitutes, Morris was forced to
develop a strategy to contend with industry change
and unfavorable competitive forces in 2014.
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American Record Company, the company that would
laterbecome Sony Music Entertainment, was founded
in 1929 and then acquired by Columbia Broadcasting
Company in 1938. In March 1968, Sony, at that rime
Seth Kennedg
2014 Llndergraduate,
The Universitg of Alabama
a Japanese company, began a joint venture with the
American company CBS to form CBS/Sony Records
Inc. In September 1976, Sony introduced the optical
digital audio disc, now known as the compact disc
(CD). In 1983, CBS Inc., as an American company,
allowed introduction of the CD to American markets.
In January 1988, CBS Records Inc. was absorbed,
and in January 1991, the new company was renamed
Sony Music Entertainment Inc.
In August 2004, Sony BMG Music Entertain-
ment was established as a new joint venture with Ber-
telsmann AG. Later, in August 2008, Sony acquired
BMG's 50 percent stake in Sony Music Entertain-
ment and began operation once again as Sony Music
Entertainment, a wholly owned subsidiary of Sony
Corporation. In July 2012, Sony/AIV Music Publish-
ing, a joint venture between Sony and the Michael
Jackson Family Trust, along with a consortium of
other investment firms, bought the publishing arm of
the EMI Group, which solidified Sony's position as
the world's largest music publisher.
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Before the 1900s, music and entertainment media had
a strong emphasis on performance. If theater, magic,
or music was wanted in a certain venue, individuals
Copyright O 2014 by A. J. Strickland. All rights reserved.
who could perform the arl personally were found and
paid to do so. At the beginning of the 20th century,
music began to become ownership-driven. .
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6.
7. Distribution EMI distributes music to the fans in four different ways. Physical C.D singles/albums in stores like HMV Online Hybrid retailers like amazon.com, play.com Pure digital retailers ITunes Live streaming from the internet Last.fm which makes money using a pay function Spotify, which uses a fair policy for all.