1. Music Industry G322
Lesson Aims
To understand the key issues involved
in this exam.
To understand how the music industry
operates
To understand the ‘big’ four and how
they operate as well as the
independent labels

2. What is the exam about?
How will I be assessed?
How can I do well?

3. How do I get a
C? Attend every lesson
Make detailed notes and complete all homework
Have a clear grasp of the issues involved and a sound
understanding of a range of key points
Use evidence in your answer
Use media terminology in your answer
Provide an answer relevant to the question set
Attend every lesson
Make detailed notes and complete all homework
Research your own examples and regularly buy/read
media guardian to have a range of contemporary
evidence
Have an excellent grasp of all the key issues
Practice several mock questions under timed conditions
outside of class time
Use media terminology frequently and confidently
Clearly address the set question
How do I get
a A?

4. Where can you get some excellent evidence and examples
http://www.guardian.co.uk/music/netmusic
http://news.bbc.co.uk/1/hi/technology/default.stm
www.IFPI.com
http://www.dominorecordco.com/
http://www.musicweek.com/
www.wikipedia.com
www.wired.com

6. 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:

7. According to an IFPI report published in August 2006 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

8. 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
Sony is a major conglomerate- list as
many Sony products/companies as
you can

9. 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
Guitar Hero
PS3
Guitar Hero
Ring Tones on
the Sony
Ericcson
Music Rights
Sony
International

10. Vertical Integration
Vertical integration
is the degree to
which a firm owns
its upstream
suppliers and its
downstream
buyers

11. 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

12. 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

13. Case Study
Read the Breakin Bread case Study

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

15. Homework
http://www.unsigned.com/
Select and artist and plan your marketing
campaign.
What record label will you sign then to and
why?

16. Next lesson

17. Digital technology has shifted power to consumers, and
music marketing must evolve from ‘push’ to ‘pull’. Our
focus is to embrace this power and become
completely consumer focused. By listening to and
responding to our consumers and to our artists we
aim to unlock the incredible potential for music in
the digital environment.”Mark Hodgkinson,
Look at how the ‘digital revolution’
has impacted on the ‘big four’ and
the independents and the
audience.

18. Music Industry G322
Lesson Aims
To understand the effect of digital
revolution on the institutions and
audiences
To look at an exemplar response
and how to address the question
set

19. Music Industry G322
Terminology Test
6 mins- 6 words- offer an example if you can
Vertical Integration
Oligopoly
The 4 Majors
SynergyHorizontal Integration
Niche Audiences

20. The different strands
Production
Distribution
Exhibition
Consumption
Look at the effect on the institutions
Look at exemplar answer and mark it.

21. Music Industry G322
Terminology Test
6 mins- 6 words- offer an example if you can
Vertical Integration
Oligopoly
The 4 Majors
SynergyHorizontal Integration
Niche Audiences