This document discusses synergistic marketing practices used by large music conglomerates like Universal Music Group. It defines synergy as the integration of institutions for mutual benefit, such as releasing a film soundtrack and movie at the same time to promote both. The document provides examples of Universal Music artists whose music was used synergistically in films, advertisements, and other media to help promote their albums. It also discusses how Universal Music Publishing Group licenses artists' music for secondary uses to further promotion.

2. Notes for case study

3. In groups of 4 you will adopt the role of a music institution. Some will be a conglomerate (Universal) and some will be an independent music company (Domino). A new artist called ‘@ for Ampersand’ has requested that you produce and distribute the music for them. In your group you will have 3 mins to argue that you are the best institution for the job. Step 1 Research your institution (notes in lessons) Step 2 Plan your speech Step 3 Write your speech and assign roles / sections to speak. EVERYONE in your group must say something EVERYTHING you say must be true and accurate. Task

4. Universal Music Group A global conglomerate

5. The largest of the ‘big four’ labels Responsible for 30% of world music sales Based in the US with offices worldwide Owned by Vivendi (French media conglomerate) Merged with BMG Music Publishing in 2007 Many subsidiary companies including Island Records Group, Decca, Polydor and Mercury Revenue $5.87 billion in 2010 Key facts

6. Universal is the biggest of the four major record labels, responsible for 29% of the music sold in the world. A global conglomorate Has access to a global market – targets international audiences and manages artists with global appeal. Is this always beneficial? In summary…

8. It suggests that you able to offer something that is ‘alternative’ in some way (unlike all the others)Independent Music Companies vs Conglomerates in addition to

9. How do the majors operate? Song writing and publishing Major labels operate a vertically integrated business model, where the owner has acquired companies which play different roles in the process of creating, promoting and selling music. Recording Promotion & marketing Licensing (to film/TV/mobile) e.g. Universal Pictures Distribution e.g. Vivendi Distribution Retail/exhibition e.g. Virgin radio Hardware e.g. Sony DVD players

10. What might be causing conglomerates like Universal Music Group to be loosing money?What are they doing about it?

11. Universal includes marketing and distribution branches which exist in order to aggressively maximize catalogue repertoire according to their website. This means that branches of the company work hard to make sure that as much money is made from each artist as possible. A vertically integrated company

12. Vivendi: stakes in music, film, TV, mobile, gaming and advertising.

13. Universal Music Publishing Group A music publisher owns the copyright for music and lyrics and can licence them for use in film, TV, advertising, mobiles etc. as well as for other artists to cover. UMPG is the largest in the world, with over 1 million copyrights.

14. In the computer room, use your blog to record your own research into the 6 ways in which Universal Music Group make their money (revenue). You will find all the information you need on their website: Task – period 5

15. To understand how Universal Music Group makes use of ‘Synergistic Marketing’ and ‘Secondary Licensing’ Learning Objective

16. A type of energy drink, made by Universal Music Group? ‘Cross-Promotion’ of media products for example the release of certain products simultaneously. The type of energy created when a record label takes over a small independent label What is Synergy?

17. A type of energy drink, made by Universal Music Group? ‘Cross-Promotion’ of media products for example the release of certain products simultaneously. The type of energy created when a record label takes over a small independent label What is Synergy?

18. Synergy and synergistic practices What it means and how it relates to the music industry…

19. Definition: The integration (combining) of institutions for mutual benefit. For example the release of certain products simultaneously. The industry calls this: ‘Cross-Promotion.’ Synergy

20. Example: A film may be released at the same time as an associated CD soundtrack to produce maximum revenue. Synergistic Practices

21. Definition: The integration (combining) of institutions for mutual benefit. For example the release of certain products simultaneously. ‘Cross-Promotion.’ Synergistic Practices

22. Definition: The integration (combining) of institutions for mutual benefit. For example the release of certain products simultaneously. ‘Cross-Promotion.’ eg. Who had heard of ‘The Rembrandts’ before the series ‘Friends’ made the song so memorable? Synergistic Practices

23. Sony has a franchise in the music and film and game console industry. It is easier for them to use synergistic practices to promote and sell their products because they are vertically integrated. The potential for internal synergy is enormous!! Vertical Integration

24. ‘Quantum of Solace’ (Sony Pictures 2008) Soundtrack by Sony: ‘Another Way to Die’ Alicia Keys’ – distributed by J Records (a subsidiary of Sony Records) DVD and BlueRay Disk released film in HD Console Game available on Sony Playstation 3 - Funded by ‘Sony Entertainment’ Internal Synergy

25. How is it an advantage to the music industry? The music is more saleable because the audience is attracted to elements they recognise from the films. The film is advertised by the music. Everyone’s a winner! Synergy

26. Sony Pictures could join with Sony Online Games to produce a ‘tie-in’ game/film to produce a greater market exposure for both products. Sony Music could then release the soundtrack for both. How could this work for a record label promoting a new music artist? How does it work?

28. Girls Aloud – produced by Polydor Records (subsidiary of Universal Records) Sang the soundtrack music to St Trinians – produced by Universal Pictures http://www.youtube.com/watch?v=prKPXggt0t0&feature=fvst Case Study: Universal Music GroupGirls Aloud

29. Music was used in a diet coke advert http://www.youtube.com/watch?v=iUW8GrOIZcQ Homework: Create 2 more case studies on artists represented by Universal who have used synergistic marketing to promote their albums Case Study: Universal Music GroupDuffy

30. Universal Music Publishing Group A music publisher owns the copyright for music and lyrics and can licence them for use in film, TV, advertising, mobiles etc. as well as for other artists to cover. UMPG is the largest in the world, with over 1 million copyrights.

32. manages the rights in the music

33. enables the music to reach its many audiences by..encouraging record companies to record and release material and licensing works using synergistic marketing (i.e. agreeing the use of music in a film or advert) and print (sheet music).

34. Production: Signed to Island Records after takeover by Universal . Worked with songwriting & production company Xenomania, Jay-Z’s production company Roc Nation and several other producers and writers. Artist case study: Sugababes

35. UK, Europe, Asian and US tours for new album Theme song for Powderpuffs Girls Movie ITV teen drama Girls in Love theme song Tracks on soundtracks for Love Actually andSex and the City Boots Christmas TV advert– Girls http://www.youtube.com/watch?v=HgduIknGejU Images licensed to Mattell for Barbie dolls Promotion & secondary licensing

36. None of the original line-up remain – critics say they are now ‘more brand than band’ (The Independent) New album Sweet 7 has sold relatively poorly in the UK and Europe – launch week is significant for sales. Rumoured that Roc Nation has dropped the group from a contract due to poor European sales Sweet 7 entered UK album charts at #14 March 2010 – first single had been released August 2009. US release uncertain due to poor European sales Sweet 7 and brand controversy

37. Create 2 more case studies on artists represented by Universal to include: Artist who has used synergy to promote their album Artist who has sold ‘secondary licensing’ to help promote their music Post on blog Homework: for next Tuesday