1. MUSIC INDUSTRY A change of tune.

2. AGENDA Timeline Value Chain: Before How is the money distributed? Value Chain: After Who keeps the cyber money? Trends in the Industry Value Chain: After Conclusion 3. Music Industry: Timeline 4. Music Industry: Timeline 5. Music Industry: Timeline 6. Music Industry: Timeline 7. Music Industry: Timeline 8. Major music markets 9. Value Chain: Before SW Production andContent Providers Distributors ServiceRecord Labels Mastering Studios Record Labels Music Producer RetailersHW Risk!!!Record labels invest in their top artists, it is hard to predict the next HIT 10. Content Providers Contract between artist and Record Label New Artists Select producer, recording studios, additional musicians and songs to be recorded Established artists Label less involved in the recording process 9.55% 15% 18.13%25.61%31.71% 11. Production & Services Use numerous different technologies Main mixer Outboard effects gear Recording device RecordMixing Labels Enginners MasteringIndividualStudios Producers 12. Distribution1. Major Label vs. Independent2. Sub-distributors3. National, regional or international4. Niche distributors5. Printed or sheet music distributorsChains RecordDistributors Consumers Labels Sales Reps IndependentStores 13. Music Industry RolesComposers MusicPublishing LyricistsCompanies RecordRetailersConsumers Companies Performing artistsDistributorsPromotional ChannelsRight AgenciesHow are the Copyrights moving?? 14. $$$ Chain: Before $15.99Artist LabelRetail Misc. CD10% 60% 29% 1%$1.60 $9.60 $4.64$0.16 15. Want to go online?SW Production and Content ProvidersDistributors ServiceHW 16. Value Chain: After SW Production and Content ProvidersDistributors Service Record Labels Web-based and Record Labels Individual Artists proprietary tools Online ChannelsWEB 2.0HW 17. Skipping the Gatekeepers 18. $$$ Chain: After $9.99Artist iTunesLabel Album14%30% 56%$1.40$3.00 $5.59 Artists may earn less from an album sold on iTunes than from a CD 19. Control Chain: After 20. Record Labels: Change Or Die 21. Trends in the Music Industry Value is in the artists brand, not record label social networks Move from full-length album to singles Promotion in spurts around album release orconstant promotion with constant releases? Kanyes Good Friday Revenues coming fromsponsorships, licensing,and live performances 22. Trends: Content is The cream rises to the top Need to be a true entertainer andperformer, not just on record Music more prevalent than ever before easily transferable and transportable easier to find niche market content 23. Trends: Costs in the Online Age Recording costs near zero Distribution costs near zero Marketing & promotioncosts go up Need to break through the noise 24. Trends: Piracy Effects Free music leads to more sales? Value in building a community 25. Trends: Music as a Service Radio is no longer the main discovery tool fornew music Streaming vs. Subscription Ownership vs. License 26. Trends: Via Mobile 27. Conclusions