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 IndustryUS Recording Industry

3000+ Labels3000+ Labels

30 000 new 30 000 new

releases per yearreleases per year Overview

Centers of Production

Centers of ProductionNew New York, LA and Nashville

York, LA and Nashville

Primary ActivitiesPrimary ActivitiesTalent 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.

MarketsRecorde

dMusic

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

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

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

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

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. Grizzle Bear but has signed other more indie bands eg. Autechre, Aphex Twins. 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 LabelsFools 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.)

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

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.)

Blog Task

What is wrong in the Music Industry?

Cost of CDsMarketing 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!

Blog Task