1. STATE OF PLAY
What is the music industry like, who is in
control, what does the future hold?

2. The US Music Industry
What does it cover?
• 3000+ Labels
• 30,000 new releases a year
Where are they based?
• New York, LA and Nashville
What do they do?
• Talent acquisition
• Contractual arrangement with artists and managers
• Marketing an Promotion
• Enforcement of copyright

3. The US Music Industry
Money
• Global Sales 18 billion (2008)
• US market 5 billion
What do they sell?
• CDs
• Vinyl
• DVDs
• Downloads
• Streams
• Ringtones
• Merchandise

4. How Does it Work?
Recorded
Music
Wholesale
to Distributors
Retail
Direct to consumers
CDs/DVDs/ Vinyl
Online
Cellphones
Licensing
Film
TV
Radio
Internet
Cafes

5. The Labels
The Majors
• Major distribution, dominant 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

6. The Majors
Majors control approx. 75% of the worlds music, and 80-90% of
the US market. All of these companies have non music divisions
as well.
Universal (owned by Vivendi French based company)
Sony Music Entertainment (US based subsidiary of Japanese
company)
Warner Music Group (US based, owned by Time Warner)
EMI Music Group (British and in serious trouble 1.75 billion losses
in 2009)

7. Vivendi/Universal
ABBA
Aerosmith
Akon
Amy Winehouse
Backstreet Boys
Black Eyed Peas
Blink 182
Bob Marley
The Cure
Chamillionaire
Cheryl Cole
Eminem
Enrique Iglesias
Fall Out Boy
George Michael
Green Day
Hoobastank
Incubus
James Blunt
Jennifer Lopez
Johnny Cash
Kanye West

8. Sony Music
AC/DC
Avril Lavigne
Beyonce
Bob Dylan
Britney Spears
Fatboy Slim
Foo Fighters
MGMT
Michael Jackson
Good Charlotte
Glee
Iron Maiden
JLS
Justin Timberlake
Kings of Leon
Korn
Madonna

9. Warner Music
Bee Gees
Gnarles Barkley
Cher
Phil Collins
Death Cab for Cutie
Dire Straits
The Eagles
Prince
Prodigy
Paris Hilton
Jime Hendrix
Kid Rock
Linkin Park
Nine Inch Nails
Notorious BIG
Oasis

10. EMI Music Group
Elvis Presley
Pink Floyd
30 seconds to Mars
Lily Allen
AFI
Beastie Boys
Black Sabbath
Coldplay
Daft Punk
Dizzee Rascal
Duran Duran
Gorillaz
G Unit
Jane’s Addiction
Spice Girls
Mariah Carey

11. Advantages…
Major Labels
Well Financed = better
production, distribution,
marketing and talent
acquisition
Can offer artists stability,
prestige, advances, top
production resources
Independent Labels
More creative - find a new
talent, use creative tactics
for marketing etc., build
better brand loyalty
Speed - not hindered by
long corporate approval
processes, can
understand artists and
trends faster
Better regional
connections

12. Activity
In groups, research a record label and create a poster which
includes (but not limited to) answers to the following…
•Is the label part of a bigger ‘music group’?
•What other interests do they have?
•Do they own any other labels?
•What key artists are signed to the label?
•What is a 360 degree deal?
•Do they offer 360 degree deals? With whom?
•What have they done in the light of the digital revolution?
•What sort of position are they in for the future?

13. Problems with the
industry

14. What are you actually paying for?
Marketing of music is important in popular
music and new releases need a music
video and TV time as well as radio play.
Note how much of the cost of a CD goes
into marketing and promotion (this would
include the video) and how much to the
artist.
What do you think you are paying for when
you buy a £9 CD?

15. The price you pay…
Share of $15 US CD
Retail
Overhead
21%
Distribution
5%
Musicians
Union
1%
Packaging
5%
Retail profit
5%
Marketing
Promotion
22%
Artists
Royalties
9%
Publishing
Royalties
5%
Label Profit
10%
label
overhead
17%

16. Which label?
As a new artist, which label would you want to represent
you and why?
Give reasons for your answer.