By the end of the lesson you should be able to: Explain the difference between major, subsidiary and independent record labels. Discuss the major labels using the terms oligopoly and conglomerate. Use an example of a record label to discuss the media ownership structures in which it operates. Audiences & Institutions: The Music Industry Media Ownership

The music industry is dominated by the ‘big three’ or the music majors: 2011 Global Market Share Source: /2012/05/major-labels-see- decline-in-global-market-share- as-independents-grow Click here for more info, including detail of EMI takeover by Sony and Universalhere

Media Ownership – Majors and their subsidiaries The major labels own, and are made up by, many subsidiary labels that you may have thought were independent labels. For example Def Jam Recordings is owned by the Universal Music Group (UMG). These companies are designed to reach the maximum audience and will have subsidiary companies that will deal with niche tastes as well as mainstream. For example, UMG also own Verve who are a specialist Jazz music company.

Media Ownership – Majors and conglomeration According to a Music & Copyright report report published in 2012 the majors accounted for 74% of physical and digital music sales globally. This means that they operate in an oligopoly where a few companies dominate and control the market. By taking over record labels who then become subsidiaries, the Majors have concentrated media ownership in the music industry. This is a process of conglomeration – fewer companies owning more (less competition); record labels being taken over and integrated into a huge organisation that deals in other media industries.

Media Ownership - Sony Carry out research into Sony Music and then answer the questions on the next slide. What subsidiary labels do Sony Music own? Sony Music is part of the conglomerate, Sony Corporation. What other media industries does the Sony conglomerate have business in?

Media Ownership – Sony Case Study Create a journal entry titled ‘Media Ownership – Sony Case Study’ and work through the following: 1.Explain how Sony Music are part of an oligopoly in the music industry (include their % market share). 2.Which record labels are subsidiaries of Sony? (Focus on UK labels). 3.How are Sony Corporation an example of a conglomerate? Extension question: 4.What are the advantages for record labels operating within a huge conglomerate with other music labels as well as interests in other media sectors?

Independents These companies operate separately from the majors and often specialise in music genres and may cater for niche audiences. Domino is one of the most successful independent record labels in the UK. Artists include: Independent UK label XL have recently been hugely successful with their signed artist Adele. Often, labels you think are independent are actually subsidiaries of a major label. Media Ownership – Independents

Can you now: Explain the difference between major, subsidiary and independent record labels. Discuss the major labels using the terms oligopoly and conglomerate. Use an example of a record label to discuss the media ownership structures in which it operates. Audiences & Institutions: The Music Industry Media Ownership Recap...