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Music industry
- 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
- 9. Value Chain: Before SW Production and Content Providers Distributors Service •Record Labels • Mastering Studios • Record Labels • Music Producer • Retailers HW 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 Record Mixing Labels Enginners Mastering Individual Studios Producers
- 12. Distribution 1. Major Label vs. Independent 2. Sub-distributors 3. National, regional or international 4. Niche distributors 5. Printed or sheet music distributors Chains Record Distributor’s Consumers Labels Sales Reps Independent Stores
- 13. Music Industry Roles Composers Music Publishing Lyricists Companies Record Retailers Consumers Companies Performing artists Distributors Promotional Channels Right Agencies How are the Copyrights moving??
- 14. $$$ Chain: Before $15.99 Artist Label Retail Misc. CD 10% 60% 29% 1% $1.60 $9.60 $4.64 $0.16
- 15. Want to go online? SW Production and Content Providers Distributors Service HW
- 17. Value Chain: After SW Production and Content Providers Distributors Service • Record Labels • Web-based and • Record Labels • Individual Artists proprietary tools • Online Channels WEB 2.0 HW
- 19. $$$ Chain: After $9.99 Artist iTunes Label Album 14% 30% 56% $1.40 $3.00 $5.59 “Artists may earn less from an album sold on iTunes than from a CD”
- 21. Record Labels: Change Or Die
- 22. Trends in the Music Industry • Value is in the artist's brand, not record label – social networks • Move from full-length album to singles – Promotion in spurts around album release or constant promotion with constant releases? – Kanye’s Good Friday • Revenues coming from sponsorships, licensing, and live performances
- 23. Trends: Content is • The cream rises to the top • Need to be a true entertainer and performer, not just on record • Music more prevalent than ever before – easily transferable and transportable – easier to find niche market content
- 24. Trends: Costs in the Online Age • Recording costs near zero • Distribution costs near zero • Marketing & promotion costs go up – Need to break through the noise
- 26. Trends: Piracy Effects • Free music leads to more sales? • Value in building a community
- 27. Trends: Music as a Service • Radio is no longer the main discovery tool for new music • Streaming vs. Subscription • Ownership vs. License
- 29. Conclusions
Notas do Editor
- LPs – people bought music heard on radioMTV and CDs – Sparked surge in consumer interest in music
- Discman – portable CDs
- 1995 – MP3 promoted piracyNapster – p2p software promotes piracyWMA – Microsoft codec, wanted to license it
- iPod + iTunes – portable digital musicDRM – closed formatsiTunes store – revolutionized online buying of musicYoutube – online music videos
- iPhone – mobile + iTunesSpotify – new subscription bm
- ----- Meeting Notes (5/10/11 11:13) -----30 countries 90% of music industry
- HW:Recording equipment (mics, instruments, mixing boards, etc)SW: Recording and mixing software
- A contract either provides for the artist to deliver completed recordings to the label, or for the label to undertake the recording with the artist. For artists without a recording history, the label is often involved in selecting producers, recording studios, additional musicians, and songs to be recorded, and may supervise the output of recording sessions. For established artists, a label is usually less involved in the recording process.Although both parties need each other to survive, the relationship between record labels and artists can be a difficult one. Many artists have had albums altered or censored in some way by the labels before they are released—songs being edited, artwork or titles being changed, etc. Record labels generally do this because they believe that the album will sell better if the changes are made. Often the record label's decisions are prudent ones from a commercial perspective, but this typically frustrates the artist who feels that their artwork is being diminished or misrepresented by such actions.In the early days of the recording industry, record labels were absolutely necessary for the success of any artist. The first goal of any new artist or band was to get signed to a contract as soon as possible. In the 1940s, 1950s and 1960s, many artists were so desperate to sign a contract with a record company that they usually ended up signing a bad contract, sometimes giving away the rights to their music in the process. Entertainment lawyers can be used by some to look over any contract before it is signed
- Major label vs. independent -- Consolidation has left only a handful of major music distributors affiliated with the big record labels: Capitol/EMI Distribution (Time Warner), Sony/BMG Distribution, UNI Distribution (Vivendi Universal) and WEA Distribution (Warner Music Group). Independents can be national or regional. Among the independents, the largest is Curb Distribution.Subdistributors -- These are the middlemen between large distributors and retailers. They could be one-stops, which sell from a number of different distributors, or rack-jobbers who actually own and run the record department within a larger department or multipurpose store.National, regional or international -- While the major distributors operate on a national basis, area distributors are smaller and focus on a specific region of the United States, perhaps even a single metropolitan area. International distributors handle one or more overseas markets.Online, Internet or digital distributors -- These distributors supply iTunes, YouTube.com, Rhapsody, Napster and other Web music stores with the tunes that they offer. These distributors may also offer physical CDs, or they may operate only in the cyber-sphere.Niche distributors -- Some distributors specialize in and can be categorized by the type of music they handle, such as classical, Christian, country or alternative music.Printed or sheet music distributors -- Although they only account for a small share of the market, some distributors are actually publishers or work for publishers to sell musical scores, band music, pop songs for guitarists and vocalists, and other "on paper" works.
- Artists? Depend very much on the attitude and how established they are, but we could say that by going online they get more independence from the lables and get to keep ownerships and royaltiesCost decreases with the new technologies and it is easier but if the price decreases too, the margins for them are the same, it lowers the barriers for other to be able to edit.HW:Recording equipment (mics, instruments, mixing boards, etc)SW: Recording and mixing software
- HW:Recording equipment (mics, instruments, mixing boards, etc)SW: Recording and mixing software
- “Getting your album up on major stores such as iTunes, Amazon and eMusic will set you back about $US47 through TuneCore. And you retain all ownership of your music and keep all royalties, unlike working with a record label”
- How they tried to implement DRM to all downloads but it was impossible with piracy
- There is a trend towards music on mobile devices, because of the changing mindsets in the coming generations.Devices now have greater capacity to store music and have apps that play them. Both OS developers and carriers offer music apps and services:Apple offers Itunes with iPhone (pay per song downloaded)Carriers now offering music services:-US operator Cricket offersmuve music with susbcription service.-Sprint offers Sprint Music Store with pay per song ($0.69 to $1.29 per song.)-Verizon offers Vcast Music with Rhapsody with subscriptionRhapsody also offers apps for iPhone, BB, Android ($10 per month)
- I like this graph because you can see consumer trends on listening to music. What do you think?“The most popular form of digital music consumption was the “watch” habit with 57 percent of respondents having watched music videos on computers in the last three months. Other popular forms of consumption were streaming music on a computer (26%), streaming music on a mobile phone (21%), watching music video on mobile phones (23%) and downloading or using music apps (20%).”Source: http://blog.nielsen.com/nielsenwire/global/music-money-mobile-a-global-music-outlook/