An in-depth analysis exploring Universal Music Group's (UMG) internal and external forces: SWOT, PEST, Porter's Five Forces.
We look at the current the current market share and cultural shifts and provide recommendations that align with their mission statement.
Competitor analysis of Music Streaming ServicesTiffany Sam
As a personal winter break project, this deck is a compilation of various trends I have identified in the music streaming space both locally and globally with special attention paid to the rising competition between Apple Music and Spotify.
Spotify Marketing Campaign for Marketing Theory & Practice Mary Peters
Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
Competitor analysis of Music Streaming ServicesTiffany Sam
As a personal winter break project, this deck is a compilation of various trends I have identified in the music streaming space both locally and globally with special attention paid to the rising competition between Apple Music and Spotify.
Spotify Marketing Campaign for Marketing Theory & Practice Mary Peters
Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
1.
Which are the strategic critical success factors of the company? Which are the main weaknesses of the actual strategic decisions (draw a SWOT analysis for this purpose).
2.
Evaluation of the firm profitability according to the industry characteristics: explainment what ratios are more suitable for a company in this industry. Consider how to measure overall profitability, return on sales, and return on assets. What trends do you notice in profitability components for the firm over time (last two years)?
3.
Is the firm efficient in its use of assets? Consider efficiency in terms of total asset turnover. How could you better investigate the total asset turnover? Which operational measures would you select?
4.
Is the company likely to meet their debts as they come due? Consider ratios such as the current ratio, the quick ratio, and the debt-equity ratio. Also consider interest costs and the times interest earned ratio.
5.
Consider the future prospects of the company and evaluate the risks they face. Does the company demonstrate a potential to increase its return on equity through operations? Why?
6.
Are there any unusual or non-recurring items that need to be considered in your analysis? That is, are the earnings of high quality? Are the earnings persistent?
7.
As a potential investor, is the company worth seeking further information about? What sort of information would you want? How do you evaluate the information available on the corporate website?
Analysis of Spotify's Customer Management Framework for all phases: development, creation, growth and retention.
Recommendations focusing on some executional and strategic issues.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
Présentation Deezer 2012 - William BelleWilliam Belle
E-marketing case
2012
Team:
Jean christophe Madlaing
Mathieu Chaumard
Pauline Lambert
William Belle
Liqun Zhang
http://www.linkedin.com/in/bellewilliam
Music revenues are declining for more than ten years. But we are not listening less music. Digital revolution, piracy, streaming and mostly customers behaviors are affecting heavily the monetization of the entire industry. Define a new business model is key to grow.
This group analysis of Tidal streaming service was conducted in a Marketing Management course. It includes thorough research in the company's current operations, as well as a fully integrated marketing mix of recommendations to help the company gain market share and boost positive consumer perception.
1.
Which are the strategic critical success factors of the company? Which are the main weaknesses of the actual strategic decisions (draw a SWOT analysis for this purpose).
2.
Evaluation of the firm profitability according to the industry characteristics: explainment what ratios are more suitable for a company in this industry. Consider how to measure overall profitability, return on sales, and return on assets. What trends do you notice in profitability components for the firm over time (last two years)?
3.
Is the firm efficient in its use of assets? Consider efficiency in terms of total asset turnover. How could you better investigate the total asset turnover? Which operational measures would you select?
4.
Is the company likely to meet their debts as they come due? Consider ratios such as the current ratio, the quick ratio, and the debt-equity ratio. Also consider interest costs and the times interest earned ratio.
5.
Consider the future prospects of the company and evaluate the risks they face. Does the company demonstrate a potential to increase its return on equity through operations? Why?
6.
Are there any unusual or non-recurring items that need to be considered in your analysis? That is, are the earnings of high quality? Are the earnings persistent?
7.
As a potential investor, is the company worth seeking further information about? What sort of information would you want? How do you evaluate the information available on the corporate website?
Analysis of Spotify's Customer Management Framework for all phases: development, creation, growth and retention.
Recommendations focusing on some executional and strategic issues.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
Présentation Deezer 2012 - William BelleWilliam Belle
E-marketing case
2012
Team:
Jean christophe Madlaing
Mathieu Chaumard
Pauline Lambert
William Belle
Liqun Zhang
http://www.linkedin.com/in/bellewilliam
Music revenues are declining for more than ten years. But we are not listening less music. Digital revolution, piracy, streaming and mostly customers behaviors are affecting heavily the monetization of the entire industry. Define a new business model is key to grow.
This group analysis of Tidal streaming service was conducted in a Marketing Management course. It includes thorough research in the company's current operations, as well as a fully integrated marketing mix of recommendations to help the company gain market share and boost positive consumer perception.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
Acorn Recovery: Restore IT infra within minutesIP ServerOne
Introducing Acorn Recovery as a Service, a simple, fast, and secure managed disaster recovery (DRaaS) by IP ServerOne. A DR solution that helps restore your IT infra within minutes.
Sharpen existing tools or get a new toolbox? Contemporary cluster initiatives...Orkestra
UIIN Conference, Madrid, 27-29 May 2024
James Wilson, Orkestra and Deusto Business School
Emily Wise, Lund University
Madeline Smith, The Glasgow School of Art
0x01 - Newton's Third Law: Static vs. Dynamic AbusersOWASP Beja
f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
===============
Diogo Sousa, Engineering Manager @ Canonical
An opinionated individual with an interest in cryptography and its intersection with secure software development.
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
2. v i s i o n
“We are UMG, the Universal Music Group.
We are the world’s leading music company.
In everything we do, we are committed to artistry,
innovation and entrepreneurship…”
3. 1937
1999
2001
2004-08
2011
2014
Start of Universal
records 1934 as
Decca records
Ploygram (Major record Label
Philips) acquired bySeagram.
Segram merged in to UMG
UMG acquired an online subscription
music service, EMusic.com, which it
used to help grow digital sales and
internet related operations
- UMG separated from Universal Studios
- Made over six acquisitions making it the largest
music catalog in the industry
- Acquitted by Vivendi
- Acquired BMG Music Publishing making it the
largest music publisher
- Acquisition of Univision Music Group
Acquisition of EMI
Universal Music announced the
disbandment of Island Def Jam
Music, one of four operational
umbrella groups within Universal
Music
t i m e - l i n e
4. o rga n i z a t i o n a l S t ru c t u r e
Lucian GraingeMichelle Anthony
6. s wo t - s t r e n g t h s
Strengths
Large global and local market
Large parent company
Strong management
Brand recognition
Artist portfolio
Large market share
Influential celebrity power
Rich history
Vevo partnerships
Artist placement
Opportunities
Diverse consumer base
Innovative distribution channels
New technologies
More fusion of genres
Festivals, concerts, events collaborations (U-Live)
Transformation from physical to digital
Access to new talent
Threats
International competition
Government regulations (copyright)
Volatile costs
Individual artists
Music value to consumer (price)
7. s wo t - O P P O R T U N I T I E S
Strengths
Large global and local market
Large parent company
Strong management
Brand recognition
Artist portfolio
Large market share
Influential celebrity power
Rich history
Vevo partnerships
Artist placement
Opportunities
Diverse consumer base
Innovative distribution channels
New technologies
More fusion of genres
Festivals, concerts, events collaborations (U-Live)
Transformation from physical to digital
Access to new talent
Weaknesses
Piracy
File Sharing
Technology changing music trends
Lack of discovery
High risk industry
Uncertainty regarding artist deals
8. Weaknesses
Piracy
File Sharing
Technology changing music trends
Lack of discovery
High risk industry
Uncertainty regarding artist deals
s wo t - W E A K N E S S E S
Threats
International competition
Government regulations (copyright)
Volatile costs
Individual artists
Music value to consumer (price)
Opportunities
Diverse consumer base
Innovative distribution channels
New technologies
More fusion of genres
Festivals, concerts, events collaborations (U-Live)
Transformation from physical to digital
Access to new talent
9. Threats
International competition
Government regulations (copyright)
Volatile costs
Individual artists
Music value to consumer (price)
s wo t - T H R E AT S
Strengths
Large global and local market
Large parent company
Strong management
Brand recognition
Artist portfolio
Large market share
Influential celebrity power
Rich history
Vevo partnerships
Artist placement
Weaknesses
Piracy
File Sharing
Technology changing music trends
Lack of discovery
High risk industry
Uncertainty regarding artist deals
10. m u s i c i n d u s t ry r e v e n u e s
DIGITAL
DOWNLOADS
37%
STREAMING
27%
PHYSICAL
32%
RING-TONE
1%
SYNCHRONIZATION
3%
2009 2010 2011 2012 2013 2014
4.4
4.7
5.3
6.0
6.4
6.9
GLOBAL DIGITAL
DOWNLOAD
REVENUE
(USD$ BILLIONS)
11. p e s t - p o l i t i c a l
Political
Global industry - affected by many
political environments
Industry employment falling caused by piracy and
transformation of music retail and consumers
Legal development of protecting
intellectual property worldwide
Independent labels are predicted to grow,
taking market share from the major labels
Tax systems and trade barriers
affecting the business
Economical
Piracy: 12.5 million losses in music industry
Industry is in a decline
Projected annual growth 1.7%
Forced to change their business plan
and channels of distribution
High cost to run a record label today-
making money means spending money
Technological
Development of blocking known piracy systems
Becoming easier for independent artists to record,
market and distribute on their own
Technological development working against
the set-up known today, but may be the way
for a new industry structure
12. Economical
Piracy: 12.5 million losses in music industry
Industry is in a decline
Projected annual growth 1.7%
Forced to change their business plan and
channels of distribution
High cost to run a record label today
- making money means spending money
We are out of the crisis
- but how has it affected people’s value of music
Globalization as a benefit, but can
also bring competitors
p e s t - e c o n o m i c a l
Political
Industry employment falling caused by piracy
and transformation of music retail and consumers
Legal development of protecting intellectual
property worldwide
Independent labels are predicted to grow, taking
market share from the major labels
Tax systems and trade barriers
affecting the business
Social
Change in consumer habits:
How they listen to music, how they purchase
(more individual track purchases than albums)
Devaluation of music value in consumers eyes
(Cheaper through streaming services or illegally)
Controlling market: Having the funding
and control to decide what music goes
mainstream Social media
and streaming services
13. p e s t - s o c i a l
Social
Change in consumer habits: How they listen to
music, how they purchase
(more individual track purchases than albums)
Devaluation of music value in consumers eyes
(Cheaper through streaming services or illegally)
Controlling market: Having the funding and
control to decide what music goes mainstream
Social media and streaming
services affecting market
Economical
Piracy: 12.5 million losses in music industry
Industry is in a decline
Projected annual growth 1.7%
Forced to change their business plan
and channels of distribution
High cost to run a record label today-
making money means spending money
Technological
Development of blocking known piracy systems
Becoming easier for independent artists to record,
market and distribute on their own
Technological development working against
the set-up known today, but may be the way
for a new industry structure
14. p e s t - t e ch n o l o g i c a l
Social
Change in consumer habits:
How they listen to music, how they purchase
(more individual track purchases than albums)
Devaluation of music value in consumers eyes
(Cheaper through streaming services or illegally)
Controlling market: Having the funding
and control to decide what music goes
mainstream Social media
and streaming services
Technological
Basic technology needed to listen music -
getting more accessible globally
Development of blocking known piracy systems
Becoming easier for independent artists to record,
market and distribute on their own
Technological development working against
the set-up known today, but may be the way
for a new industry structure
Streaming business increasing sales by 19%
Political
Industry employment falling caused by piracy
and transformation of music retail and consumers
Legal development of protecting intellectual
property worldwide
Independent labels are predicted to grow, taking
market share from the major labels
Tax systems and trade barriers
affecting the business
15. p o r t e r
Rivalry Among Existing Competitors
HIGH
Growing competition and rapidly
shifting consumer preferences
Bargaining Power of Customers
HIGH
Large variety in the market
free music
genres
artists
experiences
distribution channels
Bargaining Power of Suppliers
MODERATE
Suppliers = artists
Artists have choice to choose
between different companies
Established artists have the power
to negotiate pricing and deals
Threat of substitutes
HIGH
battling against
radio
television
social media
internet
piracy
Threat of New Entrants
LOW-MODERATE
High Barriers of Entry
Low startup costs for independent artist, ie. Soundcloud
High time costs to bring artists/products to market
High financial cost and risk:
- acquiring talent and music
- distribution
- marketing
16. m a r k e t s h a r e
SONY
36.6%
WARNER
22.2%
UMG
41.2%
UMG lost market share in 2014, mainly
as a result of the sale of the Parlophone
Label Group (PLG) to WMG in 2013,
which formed part of EMI Recorded
Music acquisition requirements. UMG’s
loss was WMG’s gain and the smallest
of the three majors narrowed the gap
on second-placed SME.
Sony/ATV held its lead in music pub-
lishing, but the collective share of the
independent publishing sector was the
highest overall.
17. a n a lys i s . p e rs p e c t i v e
Contracts:
Before: Record labels limited to producing, distrib-
uting, market and selling recorded music.
Now: Labels receive income from other sources, art-
ists earnings (live performances), merchandise sales,
publishing, commercial endorsements (360)
Needs to be beneficial for both parts - unique talent
to make the deal profitable
Streaming - competitor or partner? (Pandora, Spoti-
fy, Deezer, Youtube, etc)
18. o u r r e c o m m e n d a t i o n s
- Stay up-to-date with consumer trends shifts in social
media and music
- Look into Streaming and other distribution channels!
- More research and development with technology to
result in faster growth
- Get a more diverse group of artists.. Don't be afraid
of new and unique talents
- An effort is events and festivals
- Expand into emerging markets
19. c o n c l u s i o n
Technology is an important factor that has completely changed the industry
UMG is a big powerful entertainment company with an established history of popular artists and genres
UMG can continue their success by staying up to date in market trends with continuous innovation
Make music valuable for consumers again
Finding a solution to the “streaming issue” - clear strategy needed to overcome this obstacle
20. v i v e n d i ’ s f i v e y e a r s t r a t e g y
VIVENDI’S FIVE-YEAR DEVELOPMENT PLAN FOR UNIVERSAL MUSIC GROUP
“UMG will accelerate the monetization of music on digital channels, broaden the reach
of its audio and visual content through multiple partnerships with platforms and strengthen
its strategic relationships with brands and sponsors. It will pursue its industry-leading track record
of talent management and development. UMG will also continue investing in high-potential
markets for music, such as Africa, India and China.” - Vivendi press release on July 31, 2015
