The document is a market analysis report for EMPIRE Distribution conducted by Dawann Jones. It summarizes that while the music industry is growing, EMPIRE's digital standing is good but financial information cannot be found due to poor SEO. It recommends EMPIRE initiate live music showcasing events to further promote artists and increase profits, addressing a key threat of not engaging with live music. The analysis is based on secondary research from 2022 and limitations include lack of company-specific data.
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1. Page 1
A Market Analysis for
EMPIRE Distribution
By:
Dawann Jones
Full Sail University
Project & Portfolio II: Business and Marketing
May 25th
, 2022
2. Page 2
EXECUTIVE SUMMARY
This analysis report includes potential risks, potential opportunities, and the current
digital standing of EMPIRE Distribution. Methods of this report include various trends, statistics,
and strategies to help assist in the overall layout of the company. Data shown in the following
report shows that the music industry is growing substantially and has projections of growing
progressively. The analysis reports that the company is in good standing digitally, but no
information on key pieces such as revenue and net worth can be found. Significant pitfall risks
can require specific attention to various departments for procedures to be put in place. The
following recommendations include initiating live music showcasing events to help further
promote signed act(s) to increase profitability.
Limitations include a lack of SEO and company information to analyze a more data-
specific report. The results are also based on past competitors' performances and not the current
company.
3. Page 3
OBJECTIVE
The objective of this analysis was to assess a significant threat to EMPIRE Distribution
and establish an opportunity to eliminate that threat. Currently, EMPIRE fails to engage with the
touring/live music sector of the music business. Instead of only dealing with the distribution side,
profits and notoriety can be maximized if the company begins highlighting and facilitating live
music showcasing dates for their signed act(s).
RESEARCH METHODOLOGY
The research that was used to compile this analysis was derived from secondary internet
research. This information was gathered in June 2022 and said that research is as current as 2022.
Certain key pieces of information cannot be found due to the SEO (search engine optimization)
of the company not being optimized to its fullest potential. Those key pieces of information
include net worth, revenue, number of employees, mission/vision statement, etc.
RESEARCH AND KEY FINDINGS
EMPIRE Distribution is a music distribution company that semi-structures itself as a
record label. The net worth of the company has never officially been released but one of the
EMPIRE’s recently signed artists, Money Man, was reported to sign a recording contract being
offered one million dollars in bitcoin by the CEO, Ghazi Shami.
The demographics of EMPIRE’s artist roster include young and older men/women and
include various ethnic backgrounds of said so musicians. According to IFPI’s Global Music
Report (2022), “In 2021, recorded music revenues reached US$25.9 billion, an increase of 18.5%
on 2020 and the highest revenue levels this millennium” (pg. 6, para. 1). Following the events of
the current Coronavirus pandemic, the majority of the world was locked down due to safety and
4. Page 4
health concerns revolving around Covid-19. Since the world has begun to semi-reopen, the
majority of music goers are beginning to want to enjoy live music again because of the closure of
bars, nightclubs, concerts, and other events being canceled like Coachella.
There are many strengths and weaknesses when it comes to EMPIRE Distribution. One
strength of the company is innovation. EMPIRE hasn’t conformed to the normal ways of doing
business inside the music industry. Instead, this company has built an infrastructure to benefit
and profit from the new digital wave of streaming and social media like a record label without
formally becoming a record label. The innovation of the company comes from the distribution
department Shami is also hands-on in. The innovation of Shami’s company was so mind-blowing
and profitable that UMG (Universal Music Group) entered a partnership with EMPIRE to ensure
UMG artists can be properly distributed in all formats digitally and physically.
One weakness when it comes to this company is its SEO (search engine optimization).
When you type in “EMPIRE Distribution” into Google, a few different companies are associated
with the same name. To get insight into the company, you must add Ghazi Shami, CEO of
EMPIRE Distribution, into the search box to get any hits on the company. Even then, most
information is targeted around the CEO, not the company. Now, their social media profiles are
very vibrant in numbers and followers, but businesses must be more than just social media
profile(s).
Some opportunities for EMPIRE are the rise in new social media platforms and DSPs
(digital streaming platforms). With the rise of TikTok songs and/or videos and fascination with
the term going viral, most of America is logging in every day to at least one social media
platform for information, excitement, enjoyment, and many other factors. Today, music and
social media go hand in hand because most songs get discovered and/or marketed/promoted via
social media like TikTok. Key players in the music industry are aware of this new trend and the
5. Page 5
new digital wave EMPIRE Distribution should capitalize on this trend they help enforce and
drive. Most of all, the music industry knows this and has tried to capitalize on it as EMPIRE has
managed to do since 2010.
One threat for the company could be the lack of record label-style events. J. Cole’s
Dreamville Fest in Fayetteville, North Carolina made roughly $4 million for the city according to
Talhelm (2022), not including the revenue that the Dreamville record label racked in. Even
though EMPIRE is partnered with UMG, the company is still geared toward elevating and
promoting independent musicians. The lack of events like such is causing a lot of money left on
the table and even more exposure for their roster left on the table as well. Pastukhov (2022)
stated that “The biggest U.S. festivals have become global brands, not only attracting
international crowds to the U.S. but exporting the events themselves overseas” (para. 27).
7. Page 7
CEO of Empire Distribution, Ghazi Shami
Photo Credit: Rolling Stones
8. Page 8
CONCLUSIONS
To elevate the company’s profits and notoriety while simultaneously eliminating
potential threats, some steps need to be put in place to maximize longevity. The first step for
EMPIRE needs to begin to highlight the artist/band roster’s live music events to keep fans up to
date and potentially provide more ticket sales. This will also create more rapport with the signed
act(s) and EMPIRE by helping capitalize on all profitable avenues for the musician at hand.
Thereafter, the company should start an annual showcasing event that highlights new, and
veteran signed act(s) to gain more profit which can be used for future innovations when it comes
to the distribution of music.
RECOMMENDATIONS
Moving forward, EMPIRE should focus on the live music portion of its industry. This
can be done by engaging with smaller concert management/promotion companies like House of
Blues, a subsidiary of Live Nation, to make the concert experience more professional, safe, and
music-oriented for its target demographic. In essence, this step can also make a partnership with
a live music event company like Live Nation more appealing. With that being said, there are
already top-tier established live music showcasing events like Coachella, Boosie Bash, Rolling
Loud, and Dreamville Fest. In essence, this will make it challenging to get music goers to attend
an amateur-style event. Although, many people want to be a part of something new and
innovative so they can be the first to spread the news about it via social media.
EMPIRE has been essential in music profits transitioning to the new digital wave and can
elevate even more by intertwining live music. These recommendations must be handled
strategically through various operation departments and/or third-party companies. By 2027,
9. Page 9
EMPIRE should be able to host and facilitate one of the most successful live music showcases
among music distribution companies and music record labels.
With the CEO being from San Francisco, California, and the entertainment industry is
centered around the Hollywood experience, the events should be hosted in the California area to
generate economic income as the Dreamville Fest did for Raleigh, North Carolina. To enhance
the experience, EMPIRE can make the experience more geared towards the consumer by
offering backstage packages, exclusive merchandise, certain percentages off for future live music
showcasing events, and early listening accessibility to future projects of the signed act(s), etc.
10. Page 10
REFERENCES/CITATIONS/PHOTOS USED
Clark, T. (2018, April 26). Universal Music Group & EMPIRE Enter New Distribution Deal.
HipHopDX. https://hiphopdx.com/news/id.46618/title.universal-music-group-empire-
enter-new-distribution-deal#
Hissong, S. (2020, October 29). Empire’s Founder Ghazi Shami — Future 25. Rolling Stone.
https://www.rollingstone.com/pro/features/empires-founder-ghazi-shami-future-25-
1078197/
IFPI Global Music Report 2022. (n.d.). IFPI. https://www.ifpi.org/wp-
content/uploads/2022/04/IFPI_Global_Music_Report_2022-State_of_the_Industry.pdf
Inman, D. (2022, May 31). Dreamville Festival Generates Over $6 Million Of Economic Impact
In Raleigh, N.C. Vibe. https://www.vibe.com/news/events/dreamville-festival-6-million-
impact-raleigh-1234665189/
Leigh, K. J. (2019, December 27). Introducing ‘Ghazi Shami’ Quiet Music Executive Of Empire
Distribution. PRIMAL TITANS. https://www.primaltitans.com/introducing-ghazi-shami-
quiet-music-executive-empire-distribution/
Maduakolam, E. (2017, April 7). Here’s How the Music Company EMPIRE Helps Your Favorite
Rappers Climb the Charts. XXL Mag. https://www.xxlmag.com/empire-distribution-
ghazi-shami-interview/
Olson, C. A. (2021, December 13). Money Man’s $1 Million Bitcoin Advance Just The
Beginning Of EMPIRE’s Blockchain Moves. Forbes.
https://www.forbes.com/sites/cathyolson/2021/12/10/money-mans-1-million-bitcoin-
advance-just-the-beginning-of-empires-blockchain-moves/?sh=5233b52e36b6
Pastukhov, D. (2022, March 16). Soundcharts | Market Intelligence for the Music Industry.
SoundCharts Blog. https://soundcharts.com/blog/us-music-market-overview
Payne, O. (2018, December 14). Empire: The Distribution Company That Turned Music
Streaming Pennies Into Profit. Forbes.
11. Page 11
https://www.forbes.com/sites/ogdenpayne/2016/09/26/empire-the-digital-distribution-
company-that-turned-music-streaming-pennies-into-profit/?sh=62fc5d6e3ead
Richter, F. (2022, April 8). Streaming Drives Global Music Industry Resurgence. Statista
Infographics. https://www.statista.com/chart/4713/global-recorded-music-industry-
revenues/
Ruskin, Z. (2019, February 6). How Empire founder Ghazi Shami built San Francisco a new
musical kingdom. Datebook. https://datebook.sfchronicle.com/music/how-empire-
founder-ghazi-shami-built-san-francisco-a-new-musical-kingdom
Rys, D. (2018, April 25). Universal Music Group, EMPIRE Announce New Distribution Deal.
Billboard. https://www.billboard.com/pro/universal-music-group-empire-distribution-
deal/
Spinelli, A. (2019, August 15). How EMPIRE Became A Music Industry Giant In An Unlikely
City. Grammys. https://www.grammy.com/news/how-empire-became-music-industry-
giant-unlikely-city
Talhelm, M., Baker, K., & Dinkel, C. (2022, April 5). Dreamville brings crowds, and revenue to
downtown Raleigh. WRAL.Com. https://www.wral.com/dreamville-brings-crowds-
revenue-to-downtown-raleigh/20219804/