The music industry consists of many individuals and organizations that create and sell music, including musicians, managers, production companies, publishers, and record labels. Managers represent artists and help navigate the industry, taking 20% of artists' income in return. Production companies sometimes create and package artists to sell to record labels. Publishers ensure correct payment of royalties. Record labels financially support new artists through recording, promotion, and retail distribution in hopes of commercial success. The retail sector sells music to consumers, critical for labels to recoup investments in new artists.

1. EXPLAINING THE Task 1
STRUCTURE AND Understand the
structure and
ownership of the
OWNERSHIP OF THE media sector. P1,
M1, D1
MEDIA SECTOR

2. TYPES OF OWNERSHIP: PRIVATE OWNERSHIP
Private ownership are owned by one person or more persons and within reason
they can do whatever they want to with their business.
An example of private ownership on TV is MTV. They don’t have many guidelines
or many strict rules because they’re a private ownership. MTV started off as a
music television. It is an American cable television channel based in New York.
The target audience is young adults and teenagers, they have programs like
‘teen mum’.
One of the biggest disadvantage of privately owned is the media is bias. The
media is more likely to report bias because they need to turn a profit to satisfy
their investors, but private media ownership can result in better quality products
due to the competition which they get.

3. TYPES OF OWNERSHIP: PUBLIC SERVICE
 It’s owned by shareholders and trades on the stock market. You can buy or
sell shares of the company if you wish. This should be available to all,
regardless of income.
 An example of Public service is the BBC has a variety of guidelines and strict
rules which they have to follow, for example; They can only play certain things
at certain times.
 A disadvantage of Public Service is that their aim is at the maximization of
profit rather than customer satisfaction. An advantage of Public Service is
they allow competition which can help with ideas or even get them higher up
in the market.

4. TYPES OF OWNERSHIP: MULTINATIONAL
 They are operated in more than one country, it’s a large company which
produces and sells goods or services in more than one country.
 For example: Sony is one of the biggest multinational media companies in
the US. The business focuses on electronics, game, entertainment and
financial services sectors.
 With them being a large company their would be a lot of employment and
their income level would increase overtime as they become more popular,
but with their being other multinational companies which may sell the
same type of products, for example mobile phones, so they have some
competition.

5. TYPES OF OWNERSHIP: INDEPENDENT
 Independent businesses are small and they are usually privately held
firms. They are owned with the help of allocation of shares in the stock
market.
 A good thing about being an independent business owner is that they
have the option of beginning on a fresh note and be in fully charge over
the shape of the business and how it’s going to be supervised. They also
don’t have any legal requirements fixed by the earlier business owner.
There can be a lot of competition in a certain area. With there being no
branding they’re isn’t much advertising for the business.

6. TYPES OF OWNERSHIP: CONGLOMERATE
 This is when two or more businesses join in entirely different businesses
that fall under one group, this usually includes a parent company and
many subsidiaries.
 They usually create internal capital markets if the external one is not fully
developed. This helps making the business go capital. Also they can
sometimes show earnings growth in time, but with the extra layers of
management increases the cost within the company.

7. TYPES OF COMPANIES:
HORIZONTAL INTEGRATION
 This occurs when a firm is being taken over by another firm or is being
merged with another which is exactly the same industry and is in the
same stage of production. For example; A car manufacturer merging with
another, in this case both have to be in the same stage of production and
also in the same industry.
 The company which is taking over or being merged with another firm will
increase on the money and will go higher up in the market. Sometimes
this can fail.

8. TYPES OF COMPANIES:
VERTICAL INTEGRATION
 There is a lot of management control. Each person in the company has a
certain job. The products have to satisfy a common need.
 An example of vertical integration was the Carnegie Steel company. The
company controlled not only mills where the steel was made but also the
mines where the iron ore was extracted, the coal mines which supplied
the coal, the ships that transported the iron ore and the railroads that
transported the coal to the factory and etc… The company focused on
heavily developing talent internally from the bottom up, rather than
importing it from other companies. Later on, it was established an
institute of higher learning to teach the steel processes to the next
generation.

9. Add this to your
OWNERSHIP PART 2 first power point

10. SYNERGY
 Synergy is the promotion and sale of a product for a variety of different products. Some
of these products are films, soundtracks, video games etc…
 For example Walt Disney used synergistic marketing techniques in the 1930’s. They
did this by letting a variety of firms use his Mickey Mouse character in products and
ads. He continued to market Disney media through licensing arrangements. Doing this
helps advertise the film and increases the sales of the film. This has done with a
variety of films for example spider-man films had toys made, including figures of the
characters. As well as toys they had posters and games made to help with selling the
film.
 Synergy can be a good thing because not only the people who made the film are
making money but also the people who make the products which advertise the film do
and also the shops which they get sold in. If the film isn’t popular or people don’t want
to buy the toys, games or posters then money has been wasted on trying to advertise
the product. It all depends on what the public want.

11. MUSIC INDUSTRY
The music industry consists of the companies and individuals that make money by creating and selling music. Some of the many
individuals and organizations that operate within the industry are the musicians who perform the music, the companies and
professionals who create and sell the recorded music. There is a variety of people in the music Industry, some of these are artists
and composers, managers, production companies, publishing companies, record companies, distribution, retail and etc… The
artists are the stars and actually make the music industry exist. They need to produce great songs, this is when composers get
involved. The composer can become rich from a great song. The managers are important and represent the artists, composers
and record producers when they’re dealing with recording and publishing companies and a variety of other companies which they
get involved in. The managers sometimes understand the music business more than the actual artists so they can help them a
lot. They help them a lot in the music industry, they will employ accountants, lawyers, agents and your managers for the artists. In
return they get 20% of the artists income, other than this they receive nothing else even though they deal with all of the problems.
The production companies will sometimes create an artist or group with teen appeal and then sell a package to a record company
to make money. They’re responsible for a variety of pop acts who come and go. Even though a lot of production companies
produce commercial product not all of them do. Publishing companies have to make sure they don’t use copyright to record
companies who record them. Every CD manufactured and sold generates a mechanical publishing royalty which is paid by the
record company in the UK. Who then passes it on to the publisher who takes a cut and passes the rest to the composer. A
publisher will take between 35% - 15% depending on their deal with the composer. Record companies exist to either facilitate or
exploit an artists creativity by providing financial and organisational structures to support the recording. When they’re going to
sign a new artist a record companies financial risk is great this is because a large sum of money will be invested to support the
initial recording, filming and promotional activities that accompany the launch of a new artist. Sometimes the release of a CD can
either be successful or even fail. This is largely determined by a record companies ability to stop exposure on TV , radio and in the
print media and then to be able to sell copies to some retail shops. If they didn’t sell them onto shops their wouldn’t be any point
in making the CD since it would be unavailable to buy. Retail is very important, it is an independent music maker you can
manufacture and sell your CDS to customers mail order one by one. You can do this by promotion, you can promote them in live
performance, on your website and through the media.

12. MUSIC INDUSTRY