The Music Industry

What are record labels?A record label is the brand name for a music release. Record labels are responsible for the manufacture, distribution and promotion of a particular recording. They also manage brands and trademarks, marketing and promotion, enforcement of copyright protection of sound recording and music videos, conducts talent scouting and development of new artists and maintains contracts with recording artists and their managers The major labels today operate a number of specific label imprints - the actual company logo stamped on the recording. Major labels account for 70% of music sales worldwide and 85% of music sales in the U.S.

manufacture

Marketing and Promotion

Distribution

Record Deal Distribution

There are 4 major dominating record labels. The 4 have dominated over 65% of the music industry with only about 30% of artists being signed to independent labels.

Industry Overview

The 4 major record labels are designed to reach the maximum audience and therefore will also have subsidiary companies that will deal with niche tastes as well as mainstream. For example, Universal also own Verve which are a specialist Jazz music company

Industrial Vs Independent

(2005)

Who owns the record labels?

Universal Music Group is the biggest record label. In the U.S., which is the largest music market in the world, Universal Music group has a market share of almost one-third overall.

Universal Music group either owns or has a significant share in labels including Interscope, Geffen, A&M, Island Def Jam Music Group, Decca and V2.

Key artists: Kanye West, Black eyed peas, Mariah Carey and Gwen Stefani

Sony Music Entertainment, based in Japan, has approximately a one-quarter market share in the U.S., ranking as the second-largest of the major record labels.

Sony Music Entertainment owns labels including Columbia, Epic, RCA and Jive. Artists ranging from AC/DC to "Weird Al" Yankovic are signed to Sony Music Entertainment.

Key Artists: Britney Spears, Kelly Clarkson, Alicia Keys and Shakira

Media Ownership – Majors and their subsidiaries

The major labels own, and are made up by, many subsidiary labels that you may have thought were independent labels. For example Def Jam Recordings is owned by the Universal Music Group (UMG). These companies are designed to reach the maximum audience and will have subsidiary companies that will deal with niche tastes as well as mainstream. For example, UMG also own Verve who are a specialist Jazz music company.

Based in the U.K., EMI Group has a U.S. market share of approximately one-tenth. The British band Blur is one of EMI's biggest artists in the U.K., with a significant market presence in other countries too. In the 1990s, many British popular bands were signed to EMI. Now the label is branching out into newer genres such as "grime," with the signing of U.K. rapper Dizzee Rascal.

Key Artists: Coldplay, The Beetles, Robbie Williams, Rolling Stones and Gorillaz.

With a 15 percent share of the U.S. market in 2006, Warner Music Group is the third-largest record label. Existing in its current form since 2004, Warner Music Group was previously part of Time Warner.

WMG owns labels including Atlantic Records Group and Rhino Entertainment. At the end of 2008, negotiations between WMG and YouTube.com broke down with the result that WMG moved to have all videos by its artists removed from YouTube.com.

Key Artists: Madonna , Greenday and My Chemical Romance

These companies operate separately from the majors and often specialise in music genres and may cater for niche audiences.

Domino is now one of the most successful independent recordlabels in the UK.Artists include: arctic monkeys

Independent UK label XL have recently been hugely successful with their signed artist Adele.

Independent

1. Toolroom recordsLabel Genre(s): Dance (HOUSE)Description: Being started by one of the United Kingdoms’ largest dance DJs in Mark Knight, it was certain to be a hit immediately following their release to the world in 2003. After 8 years the label has continuously gained international recognition for it’s unprecedented release of non-stop quality, throughout the entire dance spectrum. Their focus on originality and funk influenced HOUSE has really brought them to the level they are today having taken a stronghold on their niche from the beginning.

2. Sumerian recordsLabel Genre(s): Metal | Hardcore | RockDescription: Coming from both sides of the United States in LA and DC, co-founders Ash Avildsen and Shawn Keith have managed to open the independent heavy metal market not only domestically but internationally as well with their first non-US band, Fellsilent, signing back in 2008. Sumerian was created ‘by artists, for artists’ which has continued to help ship their music to the top of the metal genre, representing 25 bands with endless potential. The labels’ ability to expand their demographic early has surely given them the edge they’ve needed in the grueling music industry of today. More recently Sumerian has worked with the video game series Rock Band to provide music to their network. Songs by Asking Alexandria have made it into the mix already in the past and you can expect to hear more in the latest production with groups Veil of Maya and After the Burial.

3. Stones Throw recordsLabel Genre(s): Mostly Hip-Hop Description: Stones Throw was created in 1996 by San Jose, CA native Chris Manak, aka DJ Peanut Butter Wolf, to originally produce and distribute music he had recorded with his best friend and fellow artist Charizma, who had been killed 3 years earlier. With that being said this label is very personal to Chris and has gained countless recognition and the overwhelming addition of 44 more artists than day one of Stones Throw Records back in ‘96. The success of the label has come primarily from the approval of Chris Manak in all music represented. As the executive producer, he picks what he likes, and that’s the final decision, and main key to their ongoing success. It’s that old school vibe that keeps them alive, with artists like Mayer Hawthorne and Aloe Blacc who so smoothly bring old into the new with everything they do, from music, to merch, to design, and videos, this is a cool class of music with a lot to offer.

4. Sub pop recordsLabel Genre(s): Indie Rock | Alternative | Punk RockDescription: Created by Bruce Pavitt in the early 80s as a fanzine (non-official fan magazine of independent musicians) called Subterranean Pop this label has undergone some pretty influential transitions throughout their long journey to the top of the independent label scene. Today Sub Pop Records is one of the leading producers and distributors for independent rock, with 2 Platinum and Gold Records from past artists such as Nirvana, The Postal Service, The Shins, and Flight Of The Conchords, it comes without question why such high interest has been carried out throughout the years. Some of today’s biggest names in indie rock still call Sub Pop their home as the fans continue to hear hit after hit

How are musicians promoted?Music Marketing TechniquesMusic marketing strategies involve one or more marketing techniques. Examples include giving free promotional singles or other paraphernalia, telling an audience specific reasons to buy the music product (e.g., the only CD with a particular track), putting advertisements that link to the musician's online store on social networking sites and setting up sales tables at every gig. Other good techniques are sending consistent newsletters, and getting email addresses at concerts so audience members can get updates about the artist. No two musicians have to use the same techniques in their marketing strategy, but a good marketing strategy in music always uses the techniques familiar to the matching audience.

Marketing and MoneyIn many cases, music marketing strategies are limited by the artist's funds. Many beginning artists don't have the money to promote their work heavily and have to rely on techniques that are free or low-cost. This is why most beginning artists dream of being "discovered" by an agency talent scout -- once the agency gets behind the artist, the musician has access to the agency's resources for marketing purposes. Agencies are more than willing to provide these resources and develop a marketing strategy, because a good strategy translates into revenue for the agency. As technology increases, however, it is becoming cheaper and easier for artists to promote their work themselves.

• Posters, flyers• Merchendise- T-shirts, stickers• Emails to send updates about bands• Magazine interviews• Broadcast music- Radio, Internet, TV• Music Videos- broadcast on You Tube etc• Official social networking sites• Ticket Competitions• Digital music sales-itunes• CD covers