Y12 into Y13 SUMMER TERM PROJECT

The Music Industry: Facing New Challenges?

Your Task Produce a presentation on the current state of the music industry; analyse the changes in the market and how the industry as a whole is facing up to that challenge. Use the following link to help you: http://www.bized.co.uk/current/research/2003_04/011203.htm

The Background What type of market structure is the music industry? (A look at http://www.oligopolywatch.com/2003/06/28.html will be useful here). Assess the type of cost structure that is likely to exist in the music industry. Describe the production of a CD from commission by a record company to eventual release and subsequent sales. TO BE COMPLETED BY END OF WEEK 1

TO BE COMPLETED BY END OF WEEK ONE Explain the likely product life cycles of the following five aspects of the music industry: The Beatles Kylie Minogue Classical Music Jazz Rap music TO BE COMPLETED BY END OF WEEK ONE

Explain what type of market structure that the music industry appears to be and what sort of behaviour you might expect from firms within such an industry given that market structure. Look at the following Web sites - note the range of activities that the major companies are involved with and the way in which the companies are structured. http://www.bmg.com/ - Bertelsmann Music Group site http://new.umusic.com/overview.aspx - Universal Music Group http://www.emigroup.com/About/Overview/Default.htm - EMI music http://www.timewarner.com/corp/index.html - corporate information from the Warner Group TO BE COMPLETED BY END OF WEEK TWO

Analysis: From these sites, build up a picture of the pattern of sales of music CDs over the past 3 years (the number of years here is not crucial but should be enough to enable you to identify the key trends along with the changing nature of the types of music being sold and the consumers who make up the market). Suggest possible reasons for the trends you have identified. TO BE COMPLETED BY END OF WEEK TWO

Property Rights This task will get you to look at some basic information regarding some critical matters in the relationship between the artist and those they work with - managers, record companies and so on. One of these is property rights. Who owns music when it is produced? An individual writes a song that includes lyrics. A publisher sells the song to a record company who subsequently pay for the recording, manufacture and promotion of the CD. Who do you think 'owns' the song and why? TO BE COMPLETED BY END OF WEEK TWO

Balancing the argument: What are the reasons put forward for the trends that you have identified according to Zieman and others? Use business and economic theory related to market structures to explain how their views may have some validity. (Hint - your earlier investigation into the nature of the music industry might help here!) What evidence is there that the availability of new technology has helped to increase sales of CDs? TO BE COMPLETED BY END OF WEEK THREE

The solution TO BE COMPLETED BY END OF WEEK THREE

WEEK FOUR You should be ready to present your work to the group by the end of the four week period. You should also be able to provide supporting documentation to support your findings. This could be in the form of a written report or simple notes supporting each slide.