Sony Music Entertainment is the second largest global recorded music company. It employs over 12,000 people worldwide across 70 countries. In 2010, Sony Music reported a 2% rise in revenue but a 6.6% fall in revenue for 2011. It represents local and international artists globally. Major labels like Sony are beginning to implement 360 degree business models to generate revenue from various artist income streams in response to challenges from new digital distribution methods.

1. SONY MUSIC UK
• Sony Music Entertainment is the second largest global recorded music company
of the ‘big four’ major companies and is controlled by Sony Corporation of
America, the United States subsidiary of Japan’s Sony Corporation.
•Sony Music employ over 12000 people worldwide
across 70 countries.
• Sony Music recorded a 2% rise in revenue in 2010
But reported a 6.6% fall in revenue for 2011.
• Sony Music represents Local artist’s across 70 territories globally. Such as
No Gravity (Poland), Sila (Turkey)
• Sony represents some of the biggest international such as King Of Leon,
Pink, Britney Spears, Michael Jackson and The Foo Fighters.

2. • In It For The Money was formed in 2005 in Bridgwater and started
life promoting show for international artists such as the Scissors
Sisters and the Subways.
• 2006 it emerged into a record label. Which saw the label. Giving debut
releases to Tiger Force, Blood Red Shoes and You Love Her
Coz She’s Dead who all went onto to sign to bigger labels.
• 2008 saw the label branch into management with the signing of You
Love Her Coz She’s Dead.
• In It For The Money currently employs two employee’s.

3. Sony Music Organisation Structure
Advisor
CEO CFO
CFO Publishing
CIO & Development
COO Publishing
DIRECTOR
COO Europe & Rest Of The World
COO North America & Mexico
Legal Publishing
Music Services
Legal
President Catologue & Marketing
President Human Resources
President New Music International &Global Artists Management
North America UK and Ireland
President North America
Supply Chain & Facilities
CEO Digital Marketing
President Digital Marketing

4. Sony Music Subsidiaries
• Sony Music is made up of a number of subsidiaries.
• Columbia Records who have acts such as Kasabian, ACDC, Bob Dylan,
MGMT and The Vaccines.
• Syco Music who have acts such Alexandra Burke, Susan Boyle, Leona
Lewis and Olly Murs.
• Syco Limited for The X Factor and Britian’s Got Talent. Simon Cowell is
managing director for the company.
• Syco accounted for 40% of all Sony Music UK profit in 2006. By 2008, it
was reported that Syco accounted for 70% of profit at Sony Music UK.
• Gareth Gates, Steve Brookstein, Bianca Ryan, Angelis, Leon Jackson,
Same Difference, George Sampson, Rhydian, Paul Potts, Escla have all
been signed and subsequently dropped by Syco within the last 10 years.

5. In It For The Money Organisation Structure
CEO
Accounting Marketing Management Booking Agency
Legal Publicity Artist Development Gig Promotions
Street Team A&R
Online

6. What Does In It For The Money Have To Outsource?
• Producer and Recording Studio’s
• Duplication – The making of CD and Vinyl.
• Distribution – Companies responsible for getting IIFTM’s releases into
shops and file downloading sites.
• PR – Publications, Radio and Television.

7. Columbia Records Organisation Structure
CEO
Vice President
Accounting Marketing Artist Development Sales
Legal Publicity Production Sales Distribution
Publicity Video A&R
Publicity Radio Jnr A&R
Online
Street Teams

8. How IIFTM Markets Artist’s With Limited Budget
• Online Blogs – Pop Justice
• Regional and National Radio – NME Radio
• Regional Press and National Press – Rocksound
• Specialist TV Programmes – Skins, Lovestreams
• Regional and National Tours
• Social Networking Sites.

9. How Major Labels Market Artists as Independent
• Hadouken sign to Major Label EMI in January 2006.
• EMI set-up fake independent label ‘surface news records’ and finance the
band to release two limited vinyl only singles.
• Label bidding war starts creating even more buzz and hype around the band.
• Hadouken officially announce that they have signed with EMI in May 2006
despite already being signed by the label in January.

10. Why IIFTM Branched Into Management
• Artists were being poached by larger labels as soon as they were becoming
known or successful.
• Upon Artist moving to bigger labels some would receive poor advice and get
mistreated and left on the shelf. With no one independent of this process to
advise and fight their corner.
• Rising cost of duplicating physical release formats.
• Impact of file sharing and illegal downloads of music.

11. How audience listen to music
• Ten years ago CD’s were the leading format and dictated how we all listened
to music.
• At the end of 1999 Shawn Fanning started a Web-based program called
Napster that enabled users to share MP3 files. This changed the way music
was listened to and purchased.
• Online retailers began offering legal downloading alternatives. Apple
dominated this market with iTunes
• Apple dominated the market for MP3 players with its iPod, released in late
2001.
• MP3 blogs, aggregators and BitTorrent programs offered new ways to
"own" music without actually paying for it.
• January 2011 HMV announce it will be shutting 60 of its stores over the next
12months in response to declining sales as their shares drop 20%. The
company has admitted it was having trouble meeting the terms of a bank loan.

12. Music’s Lost Decade.
Sales Cut In Half Over Last Decade
Total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009,
according to Forrester Research. In 1999, that revenue figure topped $14.6
billion.

13. How The Industry Reacts
• Major Labels begun to sue listeners through the RIAA (Recording Industry
Association of America).
• The RIAA has settled 2,484 cases out of court, with the average settlement
between $3,000 and $4,000
• Live Sector has grown from 2003 and each subsequent year. It continues to
grow and at the end of 2010 had grown by 4.7%.
• Vinyl sales continue to grow. Reaching 2.8 million units in 2009, up from 1.9
million in 2008, a record since SoundScan began tracking sales data in 1991.
• Rock albums account for 70% of all vinyl sold

14. 360 Degree business model
• Madonna signed a ground-breaking recording and touring contract with
concert promoter Live Nation in 2007.
• She was the first major star to choose an all-in-one agreement with a tour
company over a traditional record deal.
• It gives Live Nation rights to all her music-related projects - including new
albums, tours, merchandise, websites, DVDs, sponsorship, TV shows and
films.
• The deal, reported to be worth $120m (£59m) over 10 years, ends her 25-
year relationship with Warner Music

15. Major Labels begin to Implement 360 Degree Business Model
• The ‘music industry’ has at last awoken to acknowledge the existence of ‘new’
music distribution networks such as the World Wide Web and P2P. It has also
begun to realise that quashing these technologies by imposing crippling Digital
Rights Management on digital recordings may not be terribly effective, and so
a new business model has been proposed – the 360-Degree record deal.
• The new form of record deal is in many respects very similar to the classic
deals of the 20th century, but this time around the labels want to also take a
sizeable cut of the artist’s live performance, publishing and merchandising
earnings.
• Independent Labels were the first to introduce this type of deal at the start of
the decade almost 10 years before the Major Labels begun to implement the
deal into their organisations.