The music industry is dominated by four major record labels - Sony Music Entertainment, EMI, Universal, and Warner. These "big four" control over 70% of the global music market and operate as an oligopoly. As large conglomerates, the major labels have numerous subsidiary companies that deal with niche genres and can cross-promote artists across different media. Independent labels specialize in particular genres and may cater to smaller audiences, but offer artists more creative freedom and control over their work.

1. Music Industry G322
Terminology Test
6 mins- 6 words- offer an example if you can
Distribution
Portability
Web 2.0
ConsumptionP2P
Streaming

2. Sony Music Entertainment
EMI
Universal
Warner
Industry Overview
The Music Industry is made up of many people from songwriters,
producers, artists, managers, marketing, distribution etc. It is a
vast industry but is largely controlled by the record companies
The music industry is dominated by the ‘big four’ or the music majors:

3. According to an IFPI report published in August 2007 the big four
accounted for 71.7% of retail music sales
This means that they operate in an oligopoly where a few companies
control the market.
These companies are designed to reach the maximum audience and
therefore will also have subsidiary companies that will deal with niche
tastes as well as mainstream. Universal for example also own Verve
which are a specialist Jazz music company

4. Other than EMI the majors are conglomerates
this means they are a multi industry company and
own other companies that are not part of the music industry
EG?………………………………………………………..
This makes these companies increasingly dominant.
They can also benefit from Horizontal Integration. This is where they can
link together their different companies in their portfolio and
promote their products=Cross promotion
Guitar Hero
PS3
Guitar Hero
Ring Tones on
the Sony
Ericcson
Music Rights
Sony
International
Read the Simon
Cowell article from
Your booklet-how does this
also show
Horizontal integration

5. Vertical Integration
Vertical integration
is the degree to
which a firm owns
its upstream
suppliers and its
downstream
buyers
Can self distribute

6. Synergy
Using other companies/outlet to promote artists which are mutually
beneficial to both companies. Sales of music through other avenues.
Working in partnerships
Radio
TV
New Media
Film

7. Independents
These companies operate separately from the majors and often specialise
in music genres and may cater for niche audiences.
Domino is now one of the longest running and most successful
independent record labels in the UK.
Artists include: The Artic Monkeys and Franz Ferdinand
They don’t have the benefits of synergy and etc but offer artists better
deals and are more like partnerships/freedom etc

8. Case Study
From the homework article:
How can you benefit from being an
independent artist?

9. Homework
Select an independent British Record label and
research the following:
Genre of music
Location
Contact details
Purchase/Download
Streaming

10. What is the benefit of being signed to an indie label?
What is the benefit of a major?