1.
EBM Assignment Three
Columbia Records
Tyrelle Crumpler
10/16/2020
Carol Wonsavage, Entertainment Business Models

2.
Why I chose this company
Growing up in the small rural city of Ocala Florida, becoming a superstar seemed like a fantasy
and landing a record deal was next to impossible. When looking at the impossible Columbia
Records has managed to survive and live to be one of the oldest record labels to date. I am
interested in becoming an A&R (Artist & Repertoire) as a future career and looking to build
longevity in this business.
Background Information
Columbia Records is one of Americas oldest labels around, it is under the ownership of Sony
Music Entertainment. Columbia Records was the first record company to produce recorded
records, it is also one of Sony Music’s three flagship record labels Epic Records, and RCA
Records all fall under the umbrella of Sony Music Entertainment. Columbia began selling disk
records in the year of 1901, with only two competitors at that time Edison with cylinders and the
Victor Company Columbia managed to thrive through the competition by selling exclusively by
the year 1912.
Columbia Records has made a name today as a major force in mainstream pop music with active
chairman Rob Stringer and co-presidents and producer Rick Rubin and Steve Barnett. Columbia
Records has sold over 10 million albums along with 33 million songs recorded from the cast of
the TV show Glee, (Liveaboutit.com) the prominent company has managed to sign chart-topping
artist such as Adele, Beyoncé AC/DC and other successful artists that make up the prominent
Columbia roaster.

3.
Columbia Records still manages to hold a place in the hearts of all music lovers and supporters
of fine arts. With a successful roaster and merchandise line and track record Sony/Columbia
holds the top spot in the top ten record labels according to medium.com.
Customer Segments
 Male/Female 13-25 the main target audience for Columbia Records would be men and
women ranging from ages 13-25 who primarily enjoy pop music. Columbia Records
ranging as the leading force in the pop industry, information found on stastista.com
showcases that in the U.S ages 13-25 mostly listen to pop music. Most of the audience
are music lovers and are more mature to understand the lyrical content by some of
Columbia’s prominent artists.
 Promoters and Sponsors Another customer segment would include promotion and
sponsorships. When it comes to televised events and live concerts and other
entertainment events. Sponsors can play a huge key factor due to owning rights for
merchandise and also collaboration with artists to see higher traffic in sales. Promoters
such as radio DJ’S and bloggers and other sources of networking channels can help push
the product out to a wider audience.
Value Proposition
 Platinum Selling Artist Columbia Records is the home of some famous names in today’s
music industry. The Crazy in Love singer Beyoncé Knowles one of Columbia’s heavy
hitters with a net worth of 500 million as of 2020, and the talented songstress Adele who
is rolling in the deep of a net worth of 190 million. Columbia’s royalty group of all

4.
AC/DC who is still jamming to this very day whose net worth today is 380 million, so it’s
very clear Columbia can draft and scout the best of the best.
 World-Wide Tours/shows. Iconic stadiums such as Rose Bowl Stadium, Camping
World Stadium, and the infamous Staples Center gives fans a chance to travel to beautiful
locations that has hosted legendary performances of all time.
 locations that has hosted legendary performances of all time.
Channels of Distribution
 Retail Locations like Walmart, Target and FYE (For your Entertainment) which all
house all your music and entertainment needs. While the artists are working hard in the
studio, they also depend on the retailers to help push product and merchandise as well
such as concert DVD’s, albums, fragrance and clothing. Columbia has very strategic way
of utilizing retail outlets for distribution.
 Internet Social media is the voice of today and it’s important for any product to be
pushed and marketed through social media outlets. Columbia Records uses Apple Music
and outlets like Spotify play a huge role in music being purchased and streamed for more
attention. This brings attention the artist and provides entertainment for the consumer.
 Televised Performances Rather your home watching the Superbowl halftime show or
watching the VMA’S rest assure any televised performance is going to provide you with
music you love and invite all countries to a one networking channel to provide the
ultimate experience for one night of pure entertainment.
Customer Relationships
 Social Media Columbia Records does a great job at keeping up with social media for all
its Artists. Columbia records has a following of 561K via Instagram and following of

5.
29.7k subscribers on YouTube. Columbia Records has vast ray of artists who has
millions of streams to date on Apple Music.
 Meet & Greets Columbia has a great partnership with its artists and helping them give
their fans the ultimate experience and really bringing the artist and fans closer together to
help bring the family aspect to the Columbia Brand. Beyoncé’s On the Run 2 tour
provided fans the chance to purchase VIP for a chance to feel like a star and provide a
night of pure bliss with cocktails and gift sets to really make the night special.
 Charity Events Columbia is great at partnering with artists to fuel charity and giving back
to those in need. Great example of this is would be Columbia’s artist Beyoncé whose
charity BeyGOOD gave 6 million dollars to help communities of color hit by the
Coronavirus
Key Activities
 A&R Research: is probably the most recognized department in any record label
today. A&R or better known as artist and repertoire is in charge of discovering
and scouting new talent. According to Klein “When a record label signs an artist
it simply means that the artist makes an exclusive contract with the record label”.
This department alone works closely with the artist and helps with the production
of the album and where the records are recorded.
 Marketing: Every album and single needs to be carefully planned and strategized
before being released to get the most traffic and attention upon release. Most
record labels work closely with the artist and carefully plan for album and single
releases, which comes from the marketing department. The main objective for this

6.
department is to oversee the promotion plans and publicity for all label releases
and productions. (How Record Labels work)
 Publicity: is key role for any record label and helps generates attention and sales
for both the label and the artist. This department is primarily responsible for
getting word out to the masses about a new project and new discovery added the
roaster. (How Record Labels work)
 Sales: which is the main objective for any record label and driving force to keep
the music industry going. This department oversees the sales retail portion of the
business, working closely with partners and channels that distribute music and
merchandise to outlets stores for purchase. (How Record Labels work)
Key Resources:
 Legal Department: is very important when dealing with any legalities concerning the
artist and label. The department handles and oversees all contracts and lawsuits and any
discrepancies any parties would have rather the label is wanting to drop and artist or the
artist is wanting out of a contract. (How Record Labels Work)
 Artist Management: is key factor to the artist development and early guidance in the stage
of their career. The job functions for these people are to simply connect the talent with
the right people and be the vocal piece behind the scenes to the that talent. (Voogt, 2019)
 New Media: is always circling the industry and keeping labels competitive in the market.
This department according to Klein “the department is in charge of dealing with the
newer aspects of the music business”. Music videos and creating an online presence for
the artist is primarily what this department focuses on.
Key Partners

7.
 Music/ Entertainment Network Channels: providing entertainment for all music lovers
has been a part of the culture movement. According to Greer “Music speaks to the
emotions” Popular streaming networks like BET, MTV, VH1 help companies get music
to the public and help endorse the artist to a wider audience. (The Beat 2012)
 Radio Stations: have been an attachment to the record industries for years and have one
goal in mind, which was to help promote new music to the public. The more the song is
played the more the public becomes familiar with the tune, this method also helps artist
build a wider fan base to audiences worldwide. (Knab 2010)
 Sponsors: Columbia Records has many sponsors to see that artists and the label has a
good standing with the general public. Deals with Networks like BET, Apple music and
more help keep Columbia Records current in the wave of entertainment.
Cost Structures;
 Tour Travel: At some point every artist is going to tour rather it be promotional or
worldwide/international touring is a sure way to bring money for the artist. An artist is
responsible for working closely with the label to plan and execute and construct a budget
to have a successful tour. (Hyperbot.com)
 Music Video Production: Music videos are a sure way of promotion and visually
showcasing the lyrical story of the artist’s albums. When planning an music video there
are factors surrounding the video to consider; Budget, location, casting, and timeframe
allotted for production of video. (Doyle 2019)
 Red carpet appearances: the music industry is always networking and helping the artist
build connections. The red carpet is a clever marketing tool used to network the artist

8.
with the fashion industries. Celebrities and artists walk the carpet sampling modeling the
product and helping promote the fashion industry. (Wang 2015)
Revenue Streams
 Ticket Sales: ticket sales help drive revenue for the artist and the label behind them much
like touring it is the bread and butter to an artist’s bank account. Columbia’s most popular
artist Beyoncé alone ranked in nearly 5.2 million a night for a Formation tour. (Essence)
 Merchandising: Fans and consumers love to get their hands-on products from their
favorite band or artist. Columbia Records has vast array of artist with their own fragrance
and merchandise line to help promote the artist. Much like the artist on the Columbia
roaster Columbia has a very recognizable brand the famous red circle has been an iconic
symbol for the company and has it online store for fans to help support the label as well.
(Columbia Records.com)
 Sponsors: Every artist that performs or simply giving an interview under the Columbia
roaster is a life marketing tool everywhere they go. The fashion on stage to the ad
commercials used during performance seaways is marketable tool used to help not only
endorse the artist but other brands as well such as NIKE, Apple, Gatorade and many
others. (Gallant 2012)
Conclusion
Columbia Records has great business model that is still effective today, given a blast from the
past the company has longevity as one of the leading companies in music entertainment. One
important key element to know that with any record label it truly is a revolving door of talent and
artist come and go. Columbia has gone through many changes with faces leading the company,
but it has successfully managed to withstand the test of times with doors still open and fully

9.
operational. One thing I feel the company could work on is adding more of their artist
merchandise to the store page to help promote the artist as well defiantly would help boost sales
as well on merchandise. Overall Columbia Records is one of the oldest and iconic labels today in
the industry and will continue to execute the adaptability to stay competitive in the entertainment
and music market.

10.
References:
Columbia Records Overview on Flagship information retrieved from:
https://www.linkedin.com/company/columbia-records/about/
Columbia Records early competition retrieved from: https://www.liveabout.com/columbia-
records-history-3247121
Columbia Records Roaster retrieved from: http://www.columbiarecords.com/artists/
Columbia records track record retrieved from: https://medium.com/giglue/top-10-major-record-
labels-d776d158a463
Columbia pop statics retrieved from: https://www.statista.com/statistics/253915/favorite-music-
genres-in-the-us/
Beyoncé net worth retrieved from: https://wealthygorilla.com/beyonce-net-worth/
Adele net worth retrieved from: https://www.celebritynetworth.com/richest-
celebrities/singers/adele-net-worth/
Agrawal, AJ ( 2017, June 22) The evolution of the music industry retrieved from:
https://www.huffpost.com/entry/the-evolution-of-the-musi_b_11109130
Said, Jimmy (2013, June 22) 10 best HIP-HOP record labels of all time retrieved from:
https://www.therichest.com/entertainment/10-best-hip-hop-record-labels-of-all-
time/#:~:text=Tony%20Draper%20started%20the%20label%20in%20the%20early,records%20a
mounting%20to%20%2440%20million.%209%20Cash%20Money
Classic Hip-Hop magazine (2018, June 18) Who owns Death Row Records Now? Retrieved from:
https://classichiphopmagazine.com/answers/2018/6/18/who-owns-death-row-records-now
Everpedia, Aftermath (N.D) Retrieved from: https://everipedia.org/Aftermath_Entertainment
Cole, Tom (2010, October 29) Parental Advisory Labels Retrieved from:
https://www.wbur.org/npr/130905176/you-ask-we-answer-parental-advisory---why-when-how
Music Industry & Digital economy act retrieved from:
https://a2mediauxbridge.blogspot.com/p/music-industry-digital-economy-
act.html#:~:text=The%202010%20Digital%20Economy%20Act%20%28DEA%29%2C%20which%
20mandates,to%20engage%20and%20make%20money%20from%20online%20audiences.

11.
Mcdonald, Heather (2019, August 18) How 360 record deals work in the music industry
retreieved from: https://www.thebalancecareers.com/how-360-deals-in-the-music-industry-
work-
2460343#:~:text=Music%20industry%20contracts%20that%20allow%20a%20record%20label,th
at%20the%20record%20label%20has%20a%20hand%20in.
Music think Tank (N.D) Music education: why it is important in the music industry retrieved
from: http://www.musicthinktank.com/blog/music-education-why-it-is-important-to-the-
industry.html
Klein, Allison (N.D) “How Record Labels Work” retrieved from:
https://entertainment.howstuffworks.com/record-label1.htm
Voogt, Budi (2019, December 31) “Understanding the music industry” retrieved from:
https://heroic.academy/understanding-music-industry-artist-managers-booking-agents/
Greer, Danny (2012, May 4) Five ways music will enhance your television advertising retrieved
from: https://www.premiumbeat.com/blog/tv-advertising-commercial-music/
Knab, Christopher (2010, March) How record labels and radio work together retrieved from:
https://www.musicbizacademy.com/knab/articles/radiostations.htm
Hyperbot (N.D) How does it cost to tour in 2018. Retrieved from:
https://www.hypebot.com/hypebot/2018/09/how-much-does-it-cost-to-tour-in-
2018.html#:~:text=For%20an%20artist%20promoting%20a%20tour%20at%20the,pre-
tour%20marketing.%20Basic%3A%20%24250-
%242%2C500%20Medium%3A%20%242%2C500-
%2430%2C000%20Premium%3A%20%2430%2C000-%244%2C000%2C000
Doyle, Alison ( 2019, November 20) Step by step guide to making a music video retrieved from:
https://www.thebalancecareers.com/how-to-shoot-a-music-video-step-by-step-2460783

12.
Wang, Connie (2015, April 23) “How much celebrities get paid and more secrets from the red
carpet” Retrieved from: https://www.refinery29.com/en-us/red-carpet-secrets
Essence (N.D) Beyoncé’s Coachella performance retrieved from:
https://www.essence.com/entertainment/beyonce-coachella-earnings/
Gallant, Michael (2012, August 10) “Artist Endorsement deals” retrieved from:
https://blog.discmakers.com/2012/08/artist-endorsement-deals-dos-and-donts/