Part 1

1. :
titu tions
& Ins ustry
es
ienc sic Ind
Aud e Mu
Media Ownership
Th
By the end of the lesson you should be able to:
Explain the difference between major, subsidiary and independent
record labels.
Discuss the major labels using the terms oligopoly and conglomerate.
Use an example of a record label to discuss the media ownership
structures in which it operates.

2. Media Ownership
The music industry is dominated by the ‘big three’ or the
music majors:
2011 Global Market Share
Source:
Click here for more info, including detail of http://www.complex.com/music
EMI takeover by Sony and Universal /2012/05/major-labels-see-
decline-in-global-market-share-
as-independents-grow

3. Media Ownership – Majors and their subsidiaries
• The major labels own, and are made up by, many subsidiary
labels that you may have thought were independent labels.
• For example Def Jam Recordings is owned by the Universal
Music Group (UMG).
• These companies are designed to reach the maximum
audience and will have subsidiary companies that will deal
with niche tastes as well as mainstream. For example, UMG
also own Verve who are a specialist Jazz music company.

4. Media Ownership – Majors and conglomeration
• According to a Music & Copyright report report published in
2012 the majors accounted for 74% of physical and digital
music sales globally.
• This means that they operate in an oligopoly where a few
companies dominate and control the market.
• By taking over record labels who then become subsidiaries,
the Majors have concentrated media ownership in the music
industry. This is a process of conglomeration – fewer
companies owning more (less competition); record labels
being taken over and integrated into a huge organisation
that deals in other media industries.

5. Media Ownership - Sony
Carry out research into Sony Music.
• What subsidiary labels do Sony Music own?
• Sony Music is part of the conglomerate, Sony Corporation.
What other media industries does the Sony conglomerate
have business in?

6. Media Ownership – Sony Case Study
Create a journal entry titled ‘Media Ownership – Sony Case
Study’ and work through the following:
1.Explain how Sony Music are part of an oligopoly in the music
industry (include their % market share).
2.Which record labels are subsidiaries of Sony? (Focus on UK
labels).
3.What are the advantages for Sony of having a wide range of
labels in their organisation?
4.How are Sony Corporation an example of a conglomerate?
5.What are the advantages for record labels operating within a
huge conglomerate with interests in other media sectors?

7. Media Ownership – Independents
Independents
•These companies operate separately from the majors and often
specialise in music genres and may cater for niche audiences.
•Domino is one of the most successful independent record labels in
the UK.
•Artists include:
•Independent UK label XL have recently been hugely
successful with their signed artist Adele.
•Often, labels you think are independent are actually subsidiaries
of a major label.

8. :
titu tions
& Ins ustry
es
ienc sic Ind
Aud e Mu
Media Ownership
Th
Recap...
Can you now:
Explain the difference between major, subsidiary and independent
record labels.
Discuss the major labels using the terms oligopoly and conglomerate.
Use an example of a record label to discuss the media ownership
structures in which it operates.