The document provides an overview of the state of the music industry, including its major players, revenue sources, and markets. It discusses the roles of major labels and independent labels. Major labels control around 75% of the global music market and 80-90% of the US market. They have significant financial resources but can be slow-moving. Independent labels have more flexibility and focus on new talent, but lack the distribution power of major labels.

1. State of Play What is the Music Industry like, who is in control, what does the future hold?

2. Overview US Recording Industry 3000+ Labels 30 000 new releases per year Centers of Production New York, LA and Nashville Primary Activities Talent acquisition Contractual arrangement with artists and managers Marketing an Promotion Enforcement of copyright

3. Overview Revenue Global Sales 18 billion (2008) US market 5 billion What do they sell? CDs, Vinyl, DVDs Downloads, Streams, Ringtones, Merchandise

4. Markets Recorded Music Wholesale to Distributors Retail Direct to consumers CDs/DVDs/ Vinyl Online Cellphones Licensing Film TV Radio Internet Cafes

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. The Majors Majors control approx 75% of the world music, and 80-90% of the US market. All of these companies have non music divisions as well (TV/Magazines/Film. 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. 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 Boys George Michael Green Day Hoobastank Incubus James Blunt Jennifer Lopez Johnny Cash Kanye West

8. Sony Music

9. Warner Music

10. EMI Music Group

11. Advantages of Major Labels Well Financed = better production, distribution, marketing and talent acquisition Can offer artists stability, prestige, advances, top production resources

12. Advantages of Independent labels More creative – aim to find more new talent, use creative tactics for marketing etc, build better brand loyalty Speed - not encumbered by long corporate approval process, can understand artists and trends faster Better regional connections

13. Activity Which record label would you like to publish your work and why. Give detailed reasons and compare to other labels (Majors, Independence, etc)

15. What is wrong in the Music Industry?