The Music Industry Aim – To understand who controls the music industry. To examine the pros and cons of multi national ownership of the industry

Who are the significant companies in the music industry Who are the significant companies in the music industry? What do these companies have in common?

-Huge Multinational companies - Most produce more than one type of media - Huge marketing and advertising budgets - Established, they have been around for a long time and are household names - They often work in collaboration with each other (e.g.. Sony and BMG) - Often U.S or Japanese owned.

Why are the big multi national companies the producers of music?

Multi –nationals and New Tech. Large profits: ‘The big four’ accounted for 71.7% of the global retail music sales: Universal Music Group — 25.5% Sony BMG Music Entertainment — 21.5% EMI Group — 13.4% Warner Music Group — 11.3% independent labels — 28.4%

Other reasons for multi-national ownership of the music industry. Experimental: They can afford to experiment with new ideas, genres, artists. Mainly because they buy out smaller independent companies. Competition: can’t afford to be left behind and be taken over. Takeovers: Can afford to take over any direct competitors (e.g.. Sony and Bertelsmann) Public perceptions and image: can develop a ‘brand loyalty’. Discuss: What are the criticisms of multi national ownership of the music industry?

Criticisms of multi national ownership Creates Monopolies. When a single media organisation dominates production and distribution in a particular industry. The music industry is controlled by the ‘big four’. Exploits the consumer. For many years the music industry was accused of exploiting the consumer particularly over the price of CDs. In the modern music consumer world, music can be obtained digitally for free, forcing the music industry to create on line music stores. Is culturally imperialistic. The idea that one culture can dominate and dictate to other cultures. This can be said of the music industry whereby in recent years US influenced music controls and dictates the market. E.g: Estelle ‘American Boy’ Doesn’t allow smaller independent media companies to flourish. The Smaller independent companies cannot compete with the big four, many of whom end up being bought out. Suppresses ‘creative freedom’ for the artists. Many artists have complained that their record label dictates their creative output, not giving them the freedom to make the music they want to make. This is particularly true in the mainstream pop market where ‘the brand’ is very important.

Support for the multi nationals Creates more consumer choice. Monopolies have more money and greater power than smaller companies and are therefore able to offer more. Established brands are maintained as the ‘status quo’. Customers have confidence in well known brands Saves smaller labels from going under. Investment from large companies can save small companies who cannot afford to compete. Creates advancements in media technology. A number of smaller companies merging under the one can afford to become more technologically advanced.

Quick Research Task. From the multi national music company you are given find out the following: - When were they founded? - What other media industries are they involved with? - Did they pioneer any music technology? - Who are their biggest selling artists? - What smaller subsidiary labels do they own?