Music Industry Case Study

Music
Industry Case
Study
4 Major Producers
Sony Corporation
• Sony Corporation is a multinational
conglomeration based in Tokyo, Japan.
• Sony corporation is the electronics unit and
parent company of Sony Group.
• Sony Group consists of Sony (electronics),
Sony Pictures Entertainment, Sony Computer
Entertainment, Sony Music Entertainment,
Sony Mobile Communications and Sony
Financial.
• They produce consumer elctronics,
telecommunications, communications and
information equipment, semiconductor,
electronic devices, battery chemicals, Play
Station, films, television and music.
Sony Music Entertainment
• Sony is the second largest of the ‘big four’
producers.
• Founded in 1929 as the American Record
Corporation.
• Renamed the company Sony Music
Entertainment in 1991.
• In 2004 entered joint venture with
Bertelsmann by merging to create Sony BMG
Music Entertainment.
• In 2008 Sony bought Bertelsmann's 50%
stake in Sony BMG and became Sony Music
Entertainment again.
• Their headquarters are in New York but
they have a total of 42 offices across the
globe from Chile to Thailand to the UK so
produce music worldwide.
• The executives of the company are Doug
Morris, Chief Executive Officer, and Kevin
Kelleher, Executive Vice President and
Chief Financial Officer.
• Morris was previously the head of
Universal Music but became Chairman
and CEO on July 1st 2011 and
reconstructed Sony upon arrival.
• It has a revenue of $5,672 million and an
operating income of $469 million in 2010.
Labels
They have a number of labels across the world such as these
major ones:
• Columbia Records
• Epic Records
• RCA Records
• Sony Music Nashville
• Provident Label Group
• Verity Gospel Music Group
• Sony Music Latin
• Sony Masterworks
• Legacy Recordings
• Columbia Records UK
• RCA Label Group
• Syco Music
• RED Distribution
• JG3 Records
What do they produce?
• Sony Music produces hundreds of artists
from around the globe through their
numerous labels and studios that they own.
• Their artists include: •ACDC
•Michael Jackson
•Foo Fighters
•Franz Ferdinand
•One Direction
•Shakira
•Jimi Hendrix
•Oasis
•Mariah Carey
Distribution
• Sony aim to use ‘vertical integration’ within their
company. They do this by having complete control of
where their products are distributed and producing
their own physical copies of music such as CD’s and
by producing music software and devices such as
the walkman in the late 90’s. This means that they
have control over the distribution of their products
and have to pay no expenses to outside companies.
• However as the music industry has changed
drastically with the increase of downloading music
through online stores such as Itunes Sony now has
to distribute through other corporations such as
Apple.
• To combat this issue Sony uses new media
technology and creates it’s own software and
online programs.
• For example Sony has recently made Music
Unlimited. It offers instant access to millions of
songs on Sony devices such as Play Station 3,
Android, Xperia phones, Bravios TV’s, Blu-Ray
disc players, PSP’s and any PC’s. This is used
to combat software such as Spotify which
shows that Sony is adapting to the rapidly
changing industry.
Universal Music Group
• Universal Music group is the largest of the ‘big
four’ music corporations after acquiring BMG
Music Publishing in 2007.
• Owned by the French media conglomeration
Vivendi and completely separate from Universal
Studios.
• It’s headquarters are located in California USA.
• It has a revenue of $4449 million and an
operating income of $140 million in 2010.
• Founded in 1934 as Deca Records and became
Universal Music Group in 1996.
Divisions
Universal Music Group is a multinational
conglomeration and has a number of divisions such
as:
•Universal Music Publishing Group •V2/Co-operative Music
•Universal Music Group Distribution •Polydor Records
•Interscope-Geffen-A&M •Mercury Music Group
•The Island Def Jam Music Group •Island Records Group
•Universal Republic Records •Universal Music TV
•Universal Music Group Nashville •London Records
•Verve Music Group •Bravado
•Decca Label Group •Twenty-First Artists
•Universal Music Latin Entertainment •eLabs
•Universal Music Enterprises •Silver Scope
•Universal Strategic Marketing
•Show Dog-Universal Music
Labels
Universal Music Group has a number of labels across
the globe with 38 labels outside of the US and 10 in
the US.
Labels include:
• Interscope Geffen A&M
• The Island Def Jam Music Group
• Universal Republic Records
• Universal Music Group Nashville
• Decca Label Group
• The Verve Music Group
• Universal Music UK
Universal Music Publishing
• Universal Music Publishing is a music
publishing group which is part of UMG.
• UMP owns or administrates over 1
million copyrights and are the largest
music publishing business in the world.
• They have more than 47 offices in 41
countries.
Artists
They produce a wide range of international and local
artists of all genres across the globe.
Their current top artists are: 1. Lady Gaga
Other artists include: 2. Lil Wayne
•Florence + the Machine 3. Eminem
4. Justin Bieber
•Bombay Bicycle Club
5. Keri Hilson
•Lana Del Ray 6. Kid Cudi
7. Enrique Iglesias
•LMFAO
8. Rihanna
•U2 9. Taylor Swift
10. Nicki Minaj
•The Chemical Brothers
•Prince
•Stereophonics
Universal & New Media
Technology
• Universal Music Group co-developed
Vevo, a site designed for music videos.
• It allows free ad-supported streaming of
music videos at a higher quality than
found on youtube.
EMI
• EMI is the fourth largest of the ‘big four’ and is a
British owned multinational music company with it’s
headquarters in London.
• It was set up in 1931 by the merging of Columbia
Graphophone Company and the Gramophone
Company with its record label.
• It’s owned by Citigroup and has a revenue of $1.65
billion in 2009. It was taken over by Citigroup in 2011
when it was in more than $4 billion in debt.
• In 2011 Citigroup announced a deal to sell off the
music part to Sony and the publishing business selling
to UMG for a total $4.1 billion.
Labels
EMI again has a number of labels across the
globe such as:
•Angel •EMI Classics
•Astralwerks •EMI CMG
•Blue Note •EMI Records
•Capitol •EMI Records Nashville
•Capitol Latin •Manhattan
•Capitol Records •Parlophone
Nashville •Virgin Classics
•Virgin Records
Artists
EMI also has a wide variety of artists such as:
• Lily Allen •Norah Jones
•Bat For Lashes • Lady Antebellum
• The Beatles • Massive Attack
• Beastie Boys •Kylie Minogue
•Luke Bryan •Katy Perry
•Coldplay • Pink Floyd
•Gorillaz •Snoop Dogg
•David Guetta •Tinie Tempah
•Iron Maiden •Thirty Seconds To

Mars
Production
• EMI also owns EMI Music Publishing.
• Billboard’s Publisher of the Year for the
last 12 years in the United States.
• 1.3 million songs in it’s publishing
catalogue.
EMI and New Media
Technology
• History of EMI linked to the very beginnings of recorded
sound.
• When digital music began to take off in the 90’s EMI’s
first music websites went live in 1993/4.
• In 1998 EMI streamed first complete album.
• In 1999 it was the first company to release a digital
album download.
• Launched the first internet single in 2001.
• In 2007 EMI was the first major music company to make
its music available without digital rights management
software.
• Has agreements with hundreds of digital partners to
distribute music across the globe.
Warner Music Group
• Warner Music Group is the third largest of the ‘big
four’.
• It’s headquarters are based in New York, USA
and it has a net income of $56 million in 2009.
• It was founded in 1958 as Warner Bros. Records
then later became Warner Bros.-Elektra-Atlantic
Records in 1978. It became Warner Music Group
in 2004 when it was made completely separate
from Time Warner despite the name.
• In 2011 the company was sold to Access
Industries Inc.
Labels
WMG has a number of labels across the
globe such as these main ones:
•Atlantic Records Group

•Warner Bros. Recording Group
•Rhino Entertainment
•Warner Music Nashville
•Independent Label Group
Production
• Warner Music Group's music publishing
business includes Warner/Chappell
Music (which includes Non-Stop Music,
a music production library) and Word
Music Publishing.
• “Music publishing is an integral
component of WMG's broader digital
strategy and a key element in our effort
to redefine the role of the modern music
company.” - WMG
Artists
WMG produces work from a vast array of
artists such as: •Aerosmith
•Gnarls Barkley
•Michele Buble
•Johnny Cash
•Dragon Force
•Led Zepplin
•Morrissey
•Muse
•Panic At The Disco
•Ramones
•Red Hot Chilli
Peppers

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What are the 4 major music producers discussed in the case study?

What are some of the labels and artists associated with Sony Music Entertainment?

Music

•Bat For Lashes • Lady Antebellum

• The Beatles • Massive Attack

• Beastie Boys •Kylie Minogue

•Luke Bryan •Katy Perry

•Coldplay • Pink Floyd

•Gorillaz •Snoop Dogg

•David Guetta •Tinie Tempah

•Iron Maiden •Thirty Seconds To

•Atlantic Records Group

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