Date post: | 17-May-2015 |
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What is the Music Industry like?What is the Music Industry like?
Who is in control?Who is in control?
What does the future hold? What does the future hold?
US Recording Industry
US Recording Industry
3000+ Labels3000+ Labels
30 000 new releases
30 000 new releases
per yearper year Overview
Centers of Production
Centers of ProductionNew York, New York,
LA and Nashville
LA and Nashville
Primary ActivitiesPrimary Activities
Talent acquisitionTalent acquisitionContractual arrangement with artists Contractual arrangement with artists and managersand managersMarketing and PromotionMarketing and PromotionEnforcement of copyrightEnforcement of copyright
Overview
RevenueRevenue
Global Sales =18 Global Sales =18
billion (2008)billion (2008)
US market = 5 US market = 5
billionbillion
What do they What do they
sell?sell?
CDs,CDs,Vinyl,Vinyl,
DVDs, DVDs, Downloads, Downloads, Streams, Streams,
Ringtones, Ringtones, Merchandise.
Merchandise.
Markets
RecordedMusic
Wholesaleto Distributors
RetailDirect to consumers
CDs/DVDs/ VinylOnline
Cellphones
LicensingFilmTV
RadioInternetCafes
The Majors
•Major distribution, dominate the market
Independents
• Lack ability of major distribution
Sub-Labels and Imprints
• separate companies or division owned or distributed by the major labels
Specialty Labels
• non traditional distribution, focus on non mainstream.
The Labels
Majors control approx 75% of the world music, an 80-90% of the US market… They have non-music related subdivisions, which you will realise as we go through the list…
The Majors
Universal (owned by Vivendi, a French based company)
ABBAAerosmithAkonAmy WinehouseBackstreet BoysBlack Eyed PeasBlink 182Bob MarleyThe CureChamillionaireCheryl Cole
EminemEnrique IglesiasFall Out BoyGeorge MichaelGreen DayHoobastankIncubusJames BluntJennifer LopezJohnny CashKanye West
Sony Music Entertainment (US based subsidiary of Japanese company)
AC/DCAvril LavigneBeyonceBob DylanBritney SpearsFatboy SlimFoo FightersMGMTMichael JacksonGood CharlotteGlee
Iron MaidenJLSJustin TimberlakeKings of LeonKornMadonnaWhitney HoustonShakiraLeona LewisSusan BoyleKesha
Warner Music Group (US based, owned by Time Warner)
Bee GeesGnarles BarkleyCherPhil CollinsDeath Cab for CutieDire StraitsThe EaglesPrinceProdigyParis HiltonJimi Hendrix
Kid RockLinkin ParkNine Inch NailsNotorious BIGOasisTaylor SwiftThe RamonesRed Hot Chili PeppersThe PoguesParamoreNickleback
EMI Music Group $4b in debt (dissolved in 2012
with Music operations going to Universal and Music publishing to Sony – ‘back catalogue’, including Michael Jackson)
Elvis PresleyPink Floyd30 seconds to MarsLily AllenAFIBeastie Boys Black SabbathColdplayDaft PunkDizzee RascalDuran Duran
GorillazG UnitJane’s AddictionSpice GirlsMariah CareySnoop DogTina TurnerThe White StripesRobbie WilliamsSigur RosMcFly
Well Financed = better production, distribution, Marketing and talent acquisition
Can offer artists stability, prestige, advances, top production resources.
Advantages of Major Labels
An indie label is a record label that is independently funded and not connected to one of the Big Three major labels.
Indie labels range from home based hobby labels to highly profitable, large businesses.
Now some large indie labels are actually distributed by the Big Three.
Independent Record Labels
Indie labels often face an uphill battle trying to get their music heard, as they typically have far fewer financial resources to promote their music.
Despite the struggle, many labels have survived, and thrived, for years. Many other indie labels may not have lasted forever but had a tremendous impact on music both creatively and in terms of business.
Independent Record Labels
Rough Trade – started in the back of a Notting Hill record shop (Antony and the Johnsons and The Strokes)
Creation Records – started one of the biggest nineties acts Oasis, and the popular Primal Scream with a grunge / garage sound.
Factory – put Manchester on the musical map. Had a distinct character and sound (Joy Division and New Order) and was quite unorthodox in it’s practise.
XL Recordings – sounds like a who’s who of contemporary British sound. Dizzee Rascal, MIA, Vampire Weekend and recently signed Tyler the Creator.
Warp – a Sheffield label with a popular techno sound e.g. Autechre but has signed other more indie bands eg. Grizzly Bear. Big importance on relationship with designers and visual stimulus.
Domino – a South London label that has worked with The Arctic Monkeys, Franz Ferdinand. A rock influenced label which turns high profit due to headliners.
Some British Independent Labels
Some American Indie Labels
Fools Gold – pioneering Hip hop and techno sound (Kid Cudi, Duck Sauce, Danny Brown)
Dualtone – Nashville based country folk label (Lumineers and Little Comets) as well as doing many tributes to legends like Johnny Cash.
IAMSOUND – Hipster pop sound with a UK underground edge (Florence and the Machine, Little Boots, Io Echo)
Mad Decent – pushing the geographic boundaries of electro. (Diplo, Baauer, Riff Raff.)
More creative - a find more new talent, creativetactics for marketing, build better brand loyalty
Speed - not encumbered by long corporate approval process, can understand artists and trends faster
Make better and more creative
use of new media technologies
Better regional connections
Advantages of Independent labels
Which record label would you Which record label would you like to publish your work and like to publish your work and why?why?
Give detailed reasons and Give detailed reasons and compare to other labels compare to other labels (Majors, Independents, etc.)(Majors, Independents, etc.)
Activity
What is wrong in the Music Industry?
Cost of CDs
Marketing of music is Marketing of music is soso important in popular important in popular music. New releases need a music video and music. New releases need a music video and TV time, as well as radio time.TV time, as well as radio time.
Where do you think the money goes in a £ 9 Where do you think the money goes in a £ 9 CD?CD?
Music CDs - the CostShare of $15 US CD
Retail Overhead
21%
Distribution5%
Musicians Union
1%
Packaging5%
Retail profit5%
Marketing Promotion
22%
Artists Royalties
9%Publishing Royalties
5%
Label Profit10%
label overhead
17%
Note how much of the cost of a CD goes into Note how much of the cost of a CD goes into marketing and promotion(this would include the marketing and promotion(this would include the
video)video)
How much goes to the artist in a £9 CD?How much goes to the artist in a £9 CD?
Either working in groups of two or as an individual you need to research one Major and one Minor label
Provide a history of the label, profile of their image/style, case studies of some of the artists they promote, see if you can find out about their worth (££££) and how they made their money.
Compare and contrast the way they market artists.
Post to your blogs!
Activity