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The Music Industry Aim – To understand who controls the music industry.

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Page 1: The Music Industry Aim – To understand who controls the music industry.

The Music IndustryThe Music IndustryAim – To understand who controls the Aim – To understand who controls the music industrymusic industry

Page 2: The Music Industry Aim – To understand who controls the music industry.

Read Koopa articleRead Koopa article How could it be related to Marxist theory?:How could it be related to Marxist theory?:

• ““Consumer as producer”Consumer as producer” London rapper Master Shortie is among a London rapper Master Shortie is among a

new wave of artists to use digital new wave of artists to use digital technology to produce, market and technology to produce, market and distribute their music, almost completely distribute their music, almost completely cutting the music industry’s A&R cutting the music industry’s A&R department.department.

Page 3: The Music Industry Aim – To understand who controls the music industry.

The consumer as producer.The consumer as producer.

- The Marxist approach -The Marxist approach - Karl Marx said that one reason Karl Marx said that one reason the masses were being dominated by the dominant the masses were being dominated by the dominant ideology was through the media.ideology was through the media.

- - What is the dominant ideology?What is the dominant ideology?- The government, big businesses, religion…..The government, big businesses, religion…..

- Antonio Gramsci;Antonio Gramsci; ‘If you can control the means of ‘If you can control the means of production then you can control the message’.production then you can control the message’.

- In the 21In the 21stst century ‘digital world ‘ the means of production century ‘digital world ‘ the means of production has been increasingly handed over to new groups of has been increasingly handed over to new groups of society – us! The masses and not the dominant ideology society – us! The masses and not the dominant ideology are setting the agenda for making media.are setting the agenda for making media.

- Dr Aleks Krotski - ‘ the democratising of the media through Dr Aleks Krotski - ‘ the democratising of the media through the internet’the internet’

Page 4: The Music Industry Aim – To understand who controls the music industry.

Who are the significant companies Who are the significant companies in the music industry?in the music industry?

What do these companies have in common?What do these companies have in common?

Page 5: The Music Industry Aim – To understand who controls the music industry.

-Huge Multinational companies-Huge Multinational companies

- Employ thousands of people- Employ thousands of people

- Most produce more than one type of media - Most produce more than one type of media

- Huge marketing and advertising budgets- Huge marketing and advertising budgets

- Established, they have been around for a long time and - Established, they have been around for a long time and are household namesare household names

- They often work in collaboration with each other (e.g.. - They often work in collaboration with each other (e.g.. Sony and BMG)Sony and BMG)

- Often U.S or Japanese owned.- Often U.S or Japanese owned.

Page 6: The Music Industry Aim – To understand who controls the music industry.

Why are the big multi national Why are the big multi national companies the producers of music?companies the producers of music?

Page 7: The Music Industry Aim – To understand who controls the music industry.

Multi –nationals and New Tech.Multi –nationals and New Tech.

Large profits:Large profits:

‘‘The big four’ accounted for 71.7% of the global retail music sales:The big four’ accounted for 71.7% of the global retail music sales:

Universal Music Group — 25.5% Universal Music Group — 25.5% Sony BMG Music Entertainment — 21.5% Sony BMG Music Entertainment — 21.5% EMI Group — 13.4% EMI Group — 13.4% Warner Music Group — 11.3% Warner Music Group — 11.3% independent labels — 28.4% independent labels — 28.4%

Page 8: The Music Industry Aim – To understand who controls the music industry.

- Huge Multinational companies- Huge Multinational companies

- Most produce more than one type of media - Most produce more than one type of media

- Huge marketing and advertising budgets- Huge marketing and advertising budgets

- Established, they have been around for a long time and - Established, they have been around for a long time and are household namesare household names

- Often U.S or Japanese owned.- Often U.S or Japanese owned.

Page 9: The Music Industry Aim – To understand who controls the music industry.

Case StudiesCase Studies-In order to achieve success in this exam you will In order to achieve success in this exam you will need to write about specific case studies in your need to write about specific case studies in your essay.essay. -You should be very familiar with at least two record You should be very familiar with at least two record companies – one companies – one majormajor label and one label and one independent independent label and the ways in which they operate.label and the ways in which they operate.

-We will look at two together here and then in groups We will look at two together here and then in groups you will research into another two that you will you will research into another two that you will present back to the class in the form of a PowerPoint.present back to the class in the form of a PowerPoint.

Page 10: The Music Industry Aim – To understand who controls the music industry.

Group case study presentationsGroup case study presentations

5 minutes long 5 minutes long Roughly 5 PPT slidesRoughly 5 PPT slides To be presented next ThursdayTo be presented next Thursday We have the rest of today and We have the rest of today and

Monday next week to work on Monday next week to work on these…these…

Page 11: The Music Industry Aim – To understand who controls the music industry.

1 (Universal): Ola, Violet, Ryan1 (Universal): Ola, Violet, Ryan 2 (Sony BMG): Lauren, Senam, Steven2 (Sony BMG): Lauren, Senam, Steven 3 (Warner): Zak, Daphen, Elise3 (Warner): Zak, Daphen, Elise 4 (Independent): Shanice, Robert, Ingrid4 (Independent): Shanice, Robert, Ingrid 5 (Independent): Lois, Josephine, Chanice5 (Independent): Lois, Josephine, Chanice 6 (Independent): Denai, Paul, Tiffany6 (Independent): Denai, Paul, Tiffany 7 (Independent): Laxsan, Chantal7 (Independent): Laxsan, Chantal

Page 12: The Music Industry Aim – To understand who controls the music industry.

When and where were they founded?When and where were they founded? Do they specialise in a specific genre?Do they specialise in a specific genre? What other media industries are they What other media industries are they

involved in (vertical integration)?involved in (vertical integration)? Who are their biggest artists?Who are their biggest artists? How have they been affected by the credit How have they been affected by the credit

crunch and illegal downloading?crunch and illegal downloading? Did they pioneer any new musical Did they pioneer any new musical

technologies?technologies? Do they own any smaller subsidiary Do they own any smaller subsidiary

companies?companies? Consider these words/concepts: Consider these words/concepts:

multinational vs local, synergy, proliferation, multinational vs local, synergy, proliferation, vertical integrationvertical integration

Page 13: The Music Industry Aim – To understand who controls the music industry.

EMIEMI-EMI is one of the world's leading music companies, EMI is one of the world's leading music companies, home to some of the most successful and best known home to some of the most successful and best known recording artists, songwriters and music catalogues.recording artists, songwriters and music catalogues.

-EMI has two operational divisions - EMI has two operational divisions - EMI Music EMI Music and and EMI Music PublishingEMI Music Publishing..

-- - EMI MusicEMI Music deals with the artists and the promotion deals with the artists and the promotion of musicof music

-EMI PublishingEMI Publishing looks after the rights of songs. Every looks after the rights of songs. Every time a song is played on radio or used on TV for time a song is played on radio or used on TV for example the publishing company ensures that the example the publishing company ensures that the artist gets paid. This is a successful source of income artist gets paid. This is a successful source of income for the company and they look after acts on other for the company and they look after acts on other record labels as well as their own.record labels as well as their own.

Page 14: The Music Industry Aim – To understand who controls the music industry.

EMI Record Companies EMI Record Companies OwnedOwned

-EMI have bought out and also own lots of other record EMI have bought out and also own lots of other record companies:companies:

Page 15: The Music Industry Aim – To understand who controls the music industry.

EMI ArtistsEMI Artists

Page 16: The Music Industry Aim – To understand who controls the music industry.

History – Key History – Key DevelopmentsDevelopments

-The The Electric and Musical Industries LtdElectric and Musical Industries Ltd formed in March 1931 formed in March 1931 from the merger of the from the merger of the UKUK Columbia Columbia GraphophoneGraphophone Company Company and and the the Gramophone CompanyGramophone Company, famous at the time for its record label , famous at the time for its record label "His Master's Voice""His Master's Voice". From its beginning, the company was . From its beginning, the company was involved in both the manufacture of recording and playback involved in both the manufacture of recording and playback equipment and the provision of music to play on its machines equipment and the provision of music to play on its machines

-In 1931, the year the company was formed, it opened the In 1931, the year the company was formed, it opened the legendary recording studios at legendary recording studios at Abbey RoadAbbey Road, London. , London.

-EMI released its first LPs in 1952 and its first stereophonic EMI released its first LPs in 1952 and its first stereophonic recordings in 1955 (first on reel-to-reel tape and then LPs, recordings in 1955 (first on reel-to-reel tape and then LPs, beginning in 1958). beginning in 1958).

Page 17: The Music Industry Aim – To understand who controls the music industry.

History – Key History – Key DevelopmentsDevelopments

-During the late 1950s, 1960s and early 1970s, the During the late 1950s, 1960s and early 1970s, the company enjoyed huge success. The groups and solo company enjoyed huge success. The groups and solo artists signed to EMI and its subsidiary labels -- artists signed to EMI and its subsidiary labels -- including including ParlophoneParlophone, HMV, Columbia Graphophone , HMV, Columbia Graphophone and Capitol Records -- made EMI the best-known and and Capitol Records -- made EMI the best-known and most successful recording company in the world at that most successful recording company in the world at that time, with a roster that included scores of major pop time, with a roster that included scores of major pop acts of the period including the Beatles, the Beach acts of the period including the Beatles, the Beach Boys, the Hollies, Cilla Black and Pink Floyd. Boys, the Hollies, Cilla Black and Pink Floyd.

Page 18: The Music Industry Aim – To understand who controls the music industry.

Other reasons for multi-national Other reasons for multi-national ownership of the music industry.ownership of the music industry.

Experimental:Experimental: They can afford to experiment with They can afford to experiment with new ideas, genres, artists. Mainly because they buy new ideas, genres, artists. Mainly because they buy out smaller independent companies. out smaller independent companies.

Competition:Competition: can’t afford to be left behind and be can’t afford to be left behind and be taken over.taken over.

Takeovers:Takeovers: Can afford to take over any direct Can afford to take over any direct competitors (e.g.. Sony and Bertelsmann)competitors (e.g.. Sony and Bertelsmann)

Public perceptions and image:Public perceptions and image: can develop a can develop a ‘brand loyalty’.‘brand loyalty’.

Page 19: The Music Industry Aim – To understand who controls the music industry.

Criticisms of multi national ownershipCriticisms of multi national ownership Creates Monopolies.Creates Monopolies. When a single media organisation dominates production and distribution in a When a single media organisation dominates production and distribution in a

particular industry. The music industry is controlled by the ‘big four’.particular industry. The music industry is controlled by the ‘big four’.

Exploits the consumer.Exploits the consumer. For many years the music industry was accused of exploiting the consumer For many years the music industry was accused of exploiting the consumer

particularly over the price of CDs. In the modern music consumer world, music particularly over the price of CDs. In the modern music consumer world, music can be obtained digitally for free, forcing the music industry to create on line can be obtained digitally for free, forcing the music industry to create on line music stores.music stores.

Is culturally imperialistic.Is culturally imperialistic.• The idea that one culture can dominate and dictate to other cultures. This can be The idea that one culture can dominate and dictate to other cultures. This can be

said of the music industry whereby in recent years US influenced music controls said of the music industry whereby in recent years US influenced music controls and dictates the market. and dictates the market.

• E.g: Estelle E.g: Estelle ‘American Boy’‘American Boy’

• Doesn’t allow smaller independent media companies to flourish.Doesn’t allow smaller independent media companies to flourish.• The Smaller independent companies cannot compete with the big four, many of The Smaller independent companies cannot compete with the big four, many of

whom end up being bought out. whom end up being bought out.

• Suppresses ‘creative freedom’ for the artists.Suppresses ‘creative freedom’ for the artists.• Many artists have complained that their record label dictates their creative Many artists have complained that their record label dictates their creative

output, not giving them the freedom to make the music they want to make. This output, not giving them the freedom to make the music they want to make. This is particularly true in the mainstream pop market where ‘the brand’ is very is particularly true in the mainstream pop market where ‘the brand’ is very important.important.

Page 20: The Music Industry Aim – To understand who controls the music industry.

Support for the multi nationalsSupport for the multi nationals

Creates more consumer choiceCreates more consumer choice. . Monopolies have more money and greater power than smaller Monopolies have more money and greater power than smaller

companies and are therefore able to offer more.companies and are therefore able to offer more.

Established brands are maintained as the ‘status quo’.Established brands are maintained as the ‘status quo’. Customers have confidence in well known brandsCustomers have confidence in well known brands

Saves smaller labels from going under. Saves smaller labels from going under. Investment from large companies can save small companies who Investment from large companies can save small companies who

cannot afford to compete.cannot afford to compete.

Creates advancements in media technologyCreates advancements in media technology. A number of smaller . A number of smaller companies merging under the one can afford to become more companies merging under the one can afford to become more technologically advanced.technologically advanced.

Page 21: The Music Industry Aim – To understand who controls the music industry.

The artist versus the record industryThe artist versus the record industry

Watch this discussion with John Kennedy the chief Watch this discussion with John Kennedy the chief executive of the BPI.executive of the BPI.

http://www.youtube.com/watch?v=upmprBC2HiMhttp://www.youtube.com/watch?v=upmprBC2HiM

Page 22: The Music Industry Aim – To understand who controls the music industry.

Quick Research Task.Quick Research Task.

From the multi national music company you From the multi national music company you are given find out the following: are given find out the following:

- When were they founded?- When were they founded?

- What other media industries are they involved with?- What other media industries are they involved with?

- Did they pioneer any music technology?- Did they pioneer any music technology?

- Who are their biggest selling artists?- Who are their biggest selling artists?

- What smaller subsidiary labels do they own?- What smaller subsidiary labels do they own?

Page 23: The Music Industry Aim – To understand who controls the music industry.

1 (Universal): Ola, Violet, Ryan1 (Universal): Ola, Violet, Ryan 2 (Sony BMG): Lauren, Senam, Steven2 (Sony BMG): Lauren, Senam, Steven 3 (Warner): Zak, Daphen, Elise3 (Warner): Zak, Daphen, Elise 4 (Independent): Shanice, Robert, Ingrid4 (Independent): Shanice, Robert, Ingrid 5 (Independent): Lois, Josephine, Chanice5 (Independent): Lois, Josephine, Chanice 6 (Independent): Denai, Paul, Tiffany6 (Independent): Denai, Paul, Tiffany 7 (Independent): Laxsan, Chantal7 (Independent): Laxsan, Chantal

Page 24: The Music Industry Aim – To understand who controls the music industry.

When and where were they founded?When and where were they founded? Do they specialise in a specific genre?Do they specialise in a specific genre? What other media industries are they What other media industries are they

involved in (vertical integration)?involved in (vertical integration)? Who are their biggest artists?Who are their biggest artists? How have they been affected by the How have they been affected by the

credit crunch and illegal downloading?credit crunch and illegal downloading? Did they pioneer any new musical Did they pioneer any new musical

technologies?technologies? Do they own any smaller subsidiary Do they own any smaller subsidiary

companies?companies?

Page 25: The Music Industry Aim – To understand who controls the music industry.

Some (former) independent labelsSome (former) independent labels

Mo’ WaxMo’ Wax Nude RecordsNude Records Factory RecordsFactory Records Silvertone RecordsSilvertone Records XL RecordingsXL Recordings Def JamDef Jam


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