Music Industry G322

Lesson Aims

To understand the key issues involved in this exam.

To understand how the music industry operates

To understand the ‘big’ four and how they operate as well as the independent labels

What is the exam about?

How will I be assessed?

How can I do well?

How do I get a C? Attend every lesson

Make detailed notes and complete all homework

Have a clear grasp of the issues involved and a sound understanding of a range of key points

Use evidence in your answer

Use media terminology in your answer

Provide an answer relevant to the question set

Attend every lesson

Make detailed notes and complete all homework

Research your own examples and regularly buy/read media guardian to have a range of contemporary evidence

Have an excellent grasp of all the key issues

Practice several mock questions under timed conditions outside of class time

Use media terminology frequently and confidently

Clearly address the set question

How do I get a A?

Where can you get some excellent evidence and examples

http://www.guardian.co.uk/music/netmusichttp://news.bbc.co.uk/1/hi/technology/default.stmwww.IFPI.comhttp://www.dominorecordco.com/

http://www.musicweek.com/www.wikipedia.comwww.wired.com

Sony Music Entertainment EMI

Universal Warner

Industry Overview

The Music Industry is made up of many people from songwriters, producers, artists, managers, marketing, distribution etc. It is a vast industry but is largely controlled by the record companies

The music industry is dominated by the ‘big four’ or the music majors:

•

According to an IFPI report published in August 2006 the big four accounted for 71.7% of retail music sales

This means that they operate in an oligopoly where a few companies control the market.

These companies are designed to reach the maximum audience and therefore will also have subsidiary companies that will deal with niche tastes as well as mainstream. Universal for example also own Verve which are a specialist Jazz music company

Other than EMI the majors are

Conglomerates this means they are a

multi industry company and own other

companies that are not part of the music

Industry

Sony is a major conglomerate- list as many Sony products/companies as you can

Other than EMI the majors are conglomeratesthis means they are a multi industry company and own other companies that are not part of the music industry

EG?………………………………………………………..

This makes these companies increasingly dominant. They can also benefit from Horizontal Integration. This is where they canlink together their different companies in their portfolio and promote their products

Guitar Hero

PS3

Guitar Hero Ring Tones on the Sony Ericcson

Music Rights Sony International

Vertical Integration

Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers

Synergy

Using other companies/outlet to promote artists which are mutually beneficial to both companies. Sales of music through other avenues. Working in partnerships

Radio

TV

New Media

Film

Independents

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 longest running and most successful independent record labels in the UK.

Artists include: The Artic Monkeys and Franz Ferdinand

They don’t have the benefits of synergy and etc but offer artists better deals and are more like partnerships

Case Study

Read the Breakin Bread case Study

What is the benefit of being signed to an indie label?

What is the benefit of a major?

Homework

http://www.unsigned.com/

Select and artist and plan your marketing

campaign.

What record label will you sign then to and

why?

Next lesson

Digital technology has shifted power to consumers, and music marketing must evolve from ‘push’ to ‘pull’. Our focus is to embrace this power and become completely consumer focused. By listening to and responding to our consumers and to our artists we aim to unlock the incredible potential for music in the digital environment.”Mark Hodgkinson, Executive Vice President of Global Marketing, EMI Music

Look at how the ‘digital revolution’ has impacted on the ‘big four’ and

the independents and the audience.

Who do you think has benefited most from digital production and distribution?

Music Industry G322

Lesson Aims

To understand the effect of digital revolution on the institutions and audiences

To look at an exemplar response and how to address the question set

Music Industry G322

Terminology Test

6 mins- 6 words- offer an example if you can

Vertical Integration

Oligopoly The 4 Majors

Synergy Horizontal Integration

Niche Audiences

The different strands

Production

Distribution

Exhibition

Consumption

Look at the effect on the institutions

Look at exemplar answer and mark it.

Music Industry G322

Terminology Test

6 mins- 6 words- offer an example if you can

Vertical Integration

Oligopoly The 4 Majors

Synergy Horizontal Integration

Niche Audiences