The document discusses media ownership in the music industry. It explains that the major record labels, which make up an oligopoly, own many subsidiary labels. It owns them through a process of conglomeration where fewer larger companies own more. The major labels own labels across different music genres to reach various audiences. Independents operate separately from the majors and may specialize in niche genres.
Lesson Slides for G322b Institutions & Audiences - The Music Industry
Slide background image taken from: http://evolver.fm/wp-content/uploads/2011/01/youtube_music_service_google.png
Lesson Slides for G322b Institutions & Audiences - The Music Industry
Slide background image taken from: http://evolver.fm/wp-content/uploads/2011/01/youtube_music_service_google.png
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
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Music industry overview lesson 2015
1. By the end of the lesson you should be able to:
Explain the difference between major, subsidiary and independent
record labels.
Discuss the major labels using the terms oligopoly and conglomerate.
Find examples of a major and independent record label artist/band to
use as a case study.
Audiences & Institutions:
The Music Industry
Media Ownership
2. Media Ownership
The music industry is dominated by the ‘big three’ - the
music majors:
Until quite recently it was four majors
2011 Global Market Share
Source: http://www.complex.com/music/2012/05/major-labels-see-
decline-in-global-market-share-as-independents-grow
3. Media Ownership – Majors and their subsidiaries
• The major labels own, and are made up by, many subsidiary
labels that you may have thought were independent labels.
• For example Def Jam Recordings is owned by the Universal
Music Group (UMG).
• These companies are designed to reach the maximum
audience and will have subsidiary companies that will deal
with niche tastes as well as mainstream. For example, UMG
also own Verve who are a specialist Jazz music company.
4. Media Ownership – Majors and conglomeration
• According to a Music & Copyright report report published in
2012 the majors accounted for 74% of physical and digital
music sales globally.
• This means that they operate in an oligopoly where a few
companies dominate and control the market.
• By taking over record labels who then become subsidiaries,
the Majors have concentrated media ownership in the music
industry. This is a process of conglomeration – fewer
companies owning more (less competition); record labels
being taken over and integrated into a huge organisation
that deals in other media industries.
5. Media Ownership - Sony
Carry out research into Sony Music:
• What subsidiary labels do Sony Music own?
• Sony Music is part of the conglomerate, Sony Corporation.
What other media industries does the Sony conglomerate
have business in?
6. Independents
•These companies operate separately from the majors and often
specialise in music genres and may cater for niche audiences.
•Domino is one of the most successful independent record labels
in the UK.
•Artists include:
•Independent UK label XL have recently been hugely
successful with their signed artist Adele.
•Often, labels you think are independent are actually subsidiaries
of a major label.
Media Ownership – Independents
7. Can you now:
Explain the difference between major, subsidiary and independent
record labels.
Discuss the major labels using the terms oligopoly and conglomerate.
Use an example of a record label to discuss the media ownership
structures in which it operates.
Audiences & Institutions:
The Music Industry
Media Ownership
Recap...