The Music Industry Aim – To understand who controls the music industry

Read Koopa article Read Koopa article How could it be related to Marxist theory?: How could it be related to Marxist theory?: “Consumer as producer”“Consumer as producer” London rapper Master Shortie is among a new wave of artists to use digital technology to produce, market and distribute their music, almost completely cutting the music industry’s A&R department. London rapper Master Shortie is among a new wave of artists to use digital technology to produce, market and distribute their music, almost completely cutting the music industry’s A&R department.

The consumer as producer. - The Marxist approach - Karl Marx said that one reason the masses were being dominated by the dominant ideology was through the media. - - What is the dominant ideology? - The government, big businesses, religion….. - Antonio Gramsci; ‘If you can control the means of production then you can control the message’. - In the 21 st century ‘digital world ‘ the means of production has been increasingly handed over to new groups of society – us! The masses and not the dominant ideology are setting the agenda for making media. - Dr Aleks Krotski - ‘ the democratising of the media through the internet’

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

-Huge Multinational companies - Employ thousands of people - 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. -Huge Multinational companies - Employ thousands of people - 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: Large profits: ‘The big four’ accounted for 71.7% of the global retail music sales: ‘The big four’ accounted for 71.7% of the global retail music sales: Universal Music Group — 25.5% Universal Music Group — 25.5% Sony BMG Music Entertainment — 21.5% Sony BMG Music Entertainment — 21.5% EMI Group — 13.4% EMI Group — 13.4% Warner Music Group — 11.3% Warner Music Group — 11.3% independent labels — 28.4% independent labels — 28.4%

- 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 - Often U.S or Japanese owned. - 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 - Often U.S or Japanese owned.

Case Studies - In order to achieve success in this exam you will need to write about specific case studies in your essay. - You should be very familiar with at least two record companies – one major label and one independent label and the ways in which they operate. - We will look at two together here and then in groups you will research into another two that you will present back to the class in the form of a PowerPoint.

Group case study presentations 5 minutes long 5 minutes long Roughly 5 PPT slides Roughly 5 PPT slides To be presented next Thursday To be presented next Thursday We have the rest of today and Monday next week to work on these… We have the rest of today and Monday next week to work on these…

1 (Universal): Ola, Violet, Ryan 1 (Universal): Ola, Violet, Ryan 2 (Sony BMG): Lauren, Senam, Steven 2 (Sony BMG): Lauren, Senam, Steven 3 (Warner): Zak, Daphen, Elise 3 (Warner): Zak, Daphen, Elise 4 (Independent): Shanice, Robert, Ingrid 4 (Independent): Shanice, Robert, Ingrid 5 (Independent): Lois, Josephine, Chanice 5 (Independent): Lois, Josephine, Chanice 6 (Independent): Denai, Paul, Tiffany 6 (Independent): Denai, Paul, Tiffany 7 (Independent): Laxsan, Chantal 7 (Independent): Laxsan, Chantal

When and where were they founded? When and where were they founded? Do they specialise in a specific genre? Do they specialise in a specific genre? What other media industries are they involved in (vertical integration)? What other media industries are they involved in (vertical integration)? Who are their biggest artists? Who are their biggest artists? How have they been affected by the credit crunch and illegal downloading? How have they been affected by the credit crunch and illegal downloading? Did they pioneer any new musical technologies? Did they pioneer any new musical technologies? Do they own any smaller subsidiary companies? Do they own any smaller subsidiary companies? Consider these words/concepts: multinational vs local, synergy, proliferation, vertical integration Consider these words/concepts: multinational vs local, synergy, proliferation, vertical integration

EMI - EMI is one of the world's leading music companies, home to some of the most successful and best known recording artists, songwriters and music catalogues. - EMI has two operational divisions - EMI Music and EMI Music Publishing. - - EMI Music deals with the artists and the promotion of music - EMI Publishing looks after the rights of songs. Every time a song is played on radio or used on TV for example the publishing company ensures that the artist gets paid. This is a successful source of income for the company and they look after acts on other record labels as well as their own.

EMI Record Companies Owned - EMI have bought out and also own lots of other record companies:

EMI Artists

History – Key Developments - The Electric and Musical Industries Ltd formed in March 1931 from the merger of the UK Columbia Graphophone Company and the Gramophone Company, famous at the time for its record label "His Master's Voice". From its beginning, the company was involved in both the manufacture of recording and playback equipment and the provision of music to play on its machines UKColumbia Graphophone CompanyGramophone Company "His Master's Voice"UKColumbia Graphophone CompanyGramophone Company "His Master's Voice" - In 1931, the year the company was formed, it opened the legendary recording studios at Abbey Road, London. Abbey RoadAbbey Road - EMI released its first LPs in 1952 and its first stereophonic recordings in 1955 (first on reel-to-reel tape and then LPs, beginning in 1958).

History – Key Developments - During the late 1950s, 1960s and early 1970s, the company enjoyed huge success. The groups and solo artists signed to EMI and its subsidiary labels -- including Parlophone, HMV, Columbia Graphophone and Capitol Records -- made EMI the best-known and most successful recording company in the world at that time, with a roster that included scores of major pop acts of the period including the Beatles, the Beach Boys, the Hollies, Cilla Black and Pink Floyd. ParlophoneHMVColumbia Graphophonethe Beatlesthe Beach Boysthe HolliesCilla BlackPink FloydParlophoneHMVColumbia Graphophonethe Beatlesthe Beach Boysthe HolliesCilla BlackPink Floyd

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. 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. 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) Takeovers: Can afford to take over any direct competitors (e.g.. Sony and Bertelsmann) Public perceptions and image: can develop a ‘brand loyalty’. Public perceptions and image: can develop a ‘brand loyalty’.

Criticisms of multi national ownership Creates Monopolies. Creates Monopolies. When a single media organisation dominates production and distribution in a particular industry. The music industry is controlled by the ‘big four’. 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. 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. 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. 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. 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’ E.g: Estelle ‘American Boy’ Doesn’t allow smaller independent media companies to flourish. 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. The Smaller independent companies cannot compete with the big four, many of whom end up being bought out. Suppresses ‘creative freedom’ for the artists. 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. 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. Creates more consumer choice. Monopolies have more money and greater power than smaller companies and are therefore able to offer more. 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’. Established brands are maintained as the ‘status quo’. Customers have confidence in well known brands Customers have confidence in well known brands Saves smaller labels from going under. Saves smaller labels from going under. Investment from large companies can save small companies who cannot afford to compete. 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. Creates advancements in media technology. A number of smaller companies merging under the one can afford to become more technologically advanced.

The artist versus the record industry Watch this discussion with John Kennedy the chief executive of the BPI. Watch this discussion with John Kennedy the chief executive of the BPI.

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? 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?

1 (Universal): Ola, Violet, Ryan 1 (Universal): Ola, Violet, Ryan 2 (Sony BMG): Lauren, Senam, Steven 2 (Sony BMG): Lauren, Senam, Steven 3 (Warner): Zak, Daphen, Elise 3 (Warner): Zak, Daphen, Elise 4 (Independent): Shanice, Robert, Ingrid 4 (Independent): Shanice, Robert, Ingrid 5 (Independent): Lois, Josephine, Chanice 5 (Independent): Lois, Josephine, Chanice 6 (Independent): Denai, Paul, Tiffany 6 (Independent): Denai, Paul, Tiffany 7 (Independent): Laxsan, Chantal 7 (Independent): Laxsan, Chantal

When and where were they founded? When and where were they founded? Do they specialise in a specific genre? Do they specialise in a specific genre? What other media industries are they involved in (vertical integration)? What other media industries are they involved in (vertical integration)? Who are their biggest artists? Who are their biggest artists? How have they been affected by the credit crunch and illegal downloading? How have they been affected by the credit crunch and illegal downloading? Did they pioneer any new musical technologies? Did they pioneer any new musical technologies? Do they own any smaller subsidiary companies? Do they own any smaller subsidiary companies?

Some (former) independent labels Mo’ Wax Mo’ Wax Nude Records Nude Records Factory Records Factory Records Silvertone Records Silvertone Records XL Recordings XL Recordings Def Jam Def Jam