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The music industry is the business of music. Music is an Art form in which the medium is Sound organized in Time. Although it encompasses the activity of many music-related businesses and organizations, it is currently dominated by the "big four" record groups, also known as "the major labels"/"the majors" — Sony BMG, EMI, Universal and Warner — each of which consists of many smaller companies and labels serving different regions and markets. Sony BMG Music Entertainment is a diverse music and entertainment group The EMI Group is a British music company comprising the major record company EMI Music – which operates several labels and is based in Kensington in Universal Music Group (UMG is the largest Business group and family of Record labels in the Recording industry. Warner Music Group (WMG is the third-largest of the "big four" major record labels, the others being Sony BMG, EMI, and Universal

Contents

Usage

When the term music industry is used in a narrow sense, it refers only to the businesses and organizations that record, produce, publish, distribute, and market recorded music (e. g. , music publishers, recording industry, record production companies). This corresponds to the International Standard Industrial Classification (ISIC) that includes sound recording and music publishing activities (J-59). The International Standard Industrial Classification of All Economic Activities is a United Nations system for classifying economic data

When the term is used more broadly, it refers to a range of sub-industries that come from a number of different industrial classifications, including Information and Communication (which includes sound recording and music publishing activities), programming and broadcasting activities (e. The International Standard Industrial Classification of All Economic Activities is a United Nations system for classifying economic data g. , radio stations), education (e. g. , music training schools), Arts, entertainment and recreation, and manufacturing and retail sales (e. g. , of musical instruments). In this broader sense, the term usually also encompasses not-for-profit organizations such as Musicians' Unions and writers' copyright collectives and performance rights organizations. A copyright collective (also known as a copyright collecting agency or copyright collecting society) is a body created by private agreements or by Copyright law Performance rights organizations (PROs provide intermediary functions particularly royalty collection between copyright holders and parties who wish to use copyrighted works publicly

History

Until the 1700s, the process of composition and printing of music was mostly supported by patronage from the aristocracy and church. Patronage is the support encouragement privilege and often financial aid given by a person or an organization Aristocracy is a form of Government, where rule is established through an internal struggle over who has the most status and influence over society and internal relations A religion is a set of Tenets and practices often centered upon specific Supernatural and moral claims about Reality, the Cosmos In the mid-to-late 1700s, performers and composers such as Wolfgang Amadeus Mozart began to seek commercial opportunities to market their music and performances to the general public. After Mozart's death, his wife (Constanze Weber) continued the process of commercialization of his music through an unprecedented series of memorial concerts, selling his manuscripts, and collaborating with her second husband, Georg Nissen, on a biography of Mozart. Constanze Mozart (born Constanze Weber) ( 5 January 1762 in Zell im Wiesental, Germany &ndash 6 March 1842 [1]

In the 1800s, the music industry was dominated by sheet music publishers. Sheet music is a hand-written or printed form of Musical notation; like its analogs -- books pamphlets etc In the United States, the music industry arose in tandem with the rise of blackface minstrelsy. The United States of America —commonly referred to as the Blackface in the narrow sense is a style of theatrical Makeup that originated in the United The minstrel show, or minstrelsy, was an American entertainment consisting of comic skits variety acts dancing, and Music, The group of music publishers and songwriters which dominated popular music in the United States was known as Tin Pan Alley. Tin Pan Alley is the name given to the collection of New York City -centered music publishers and Songwriters who dominated the popular In the early 20th century the phonograph industry grew greatly in importance, and the record industry eventually replaced the sheet music publishers as the industry's largest force. The twentieth century of the Common Era began on The phonograph, or gramophone, was the most common device for playing recorded Sound from the 1870s through the 1980s The record industry is the part of the Music industry that sells Sound recordings of Music.

Just as radio and television did before it, the advent of file sharing technologies may change the balance between record companies, song writers, and performing artists. Radio is the transmission of signals by Modulation of electromagnetic waves with frequencies below those of visible Light. See Shared resource for the conventional meaning of file sharing File sharing refers to the providing and receiving of digital files over a Bands such as Metallica have fought back against peer-to-peer programs such as the infamous Napster, and the arguments for and against technology to circumvent them - digital rights management systems - remain controversial. Metallica is an American heavy metal band that formed in 1981 in. Napster was an online music file sharing service created by Shawn Fanning while he was attending Northeastern University in Boston and operating Digital rights management ( DRM) is a generic term that refers to Access control technologies used by hardware manufacturers publishers and Copyright holders With the advent of Apple Computer's iTunes online music store in 2003, the major record companies have begun to embrace digital downloading as the future of the music industry. Apple Inc, ( formerly Apple Computer Inc, is an American Multinational corporation with a focus on designing and manufacturing Consumer electronics iTunes is a proprietary digital media player application introduced by Apple Inc

Business structure

The music industry is made up of various elements, including:

A record company is an entity that manages sound recording-related brands and trademarks which consist of their owned labels; their owned and licensed master recordings; and various related ancillary businesses such as home video and DVDs. A musician is a person who plays or writes Music. Musicians can be classified by their roles in creating or performing music An instrumentalist plays a A musical ensemble is a group of two or more Musicians who perform instrumental or vocal Music. A composer (literally meaning 'one who puts together' is a person who creates Music, usually in the medium of notation, for Interpretation and Performance A songwriter is someone who writes the Lyrics to songs the Musical composition (chords or Melody to songs or both This article deals with contemporary Popular music publishing A copyright collective (also known as a copyright collecting agency or copyright collecting society) is a body created by private agreements or by Copyright law Performance rights organizations (PROs provide intermediary functions particularly royalty collection between copyright holders and parties who wish to use copyrighted works publicly The American Society of Composers Authors and Publishers ( ASCAP) is a non-profit Performance rights organization that protects its Broadcast Music Incorporated ( BMI) is a US Performing rights organization. The Mechanical-Copyright Protection Society ( MCPS) are an organisation who pay royalties to composers songwriters and music publishers when the music they have created is sold The Performing Right Society (often shortened to PRS) founded in 1914 is the Collecting society for UK Songwriters Composers and In the Music industry, a record producer or music producer has many roles among them controlling the recording sessions coaching and guiding the musicians organizing In the Music industry, a record label can be a Brand and a Trademark associated with the Marketing of music recordings and Music The music industry is the business of Music. Although it encompasses the activity of many music-related businesses and organizations it is currently dominated by the "big Artists and Repertoire ( A&R) is the division of a Record label that is responsible for talent scouting and artist development Royalties (sometimes running royalties) are usage-based payments made by one party (the "licensee" to another (the "licensor" for ongoing use of an In a general context a business manager is a person who manages the work of others in order to run a business efficiently A talent manager, also known as a artist manager, is an individual or company who guides the professional career of artists in the Entertainment industry Tour promoters (also known as concert promoters or talent buyers are the individuals or companies responsible for organizing a live Concert Tour or special event Booker is the term applied in the music industry to someone who books a concert at a venue or several venues hence the name "Roadie" redirects here For the 1980 movie see Roadie (film. In the Music industry, a record label can be a Brand and a Trademark associated with the Marketing of music recordings and Music A brand is a collection of Images and ideas representing an economic producer more specifically it refers to the descriptive verbal attributes and concrete symbols such as a A trademark or trade mark, represented by the symbols ™ and ®, or mark is a distinctive sign or indicator used by an individual

Labels may comprise a record group which is, in turn, controlled by a music group. As such, a larger umbrella label may have a number of sub-labels releasing music.

Music publishers exist separately (even if sharing the same ultimate holding company or brand name), and they represent the rights in the compositions - i. e. the music as written rather than as recorded.

Record companies and record labels that are not under the control of the Big Four music groups and music publishers that are not one of the Big Four are generally considered to be independent, even if they are part of large corporations with complex structures. Some prefer to use the term indie label to refer to only those independent labels that adhere to criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure. According to US Market Research Firm NPD Group, iTunes recently surpassed Wal-Mart as America's largest music distributor.

A record distributor is a company (often a record label) that works with record labels to promote and distribute their records, either in their home market or overseas. In the Music industry, a record label can be a Brand and a Trademark associated with the Marketing of music recordings and Music

Statistics

US music market shares, according to Nielsen SoundScan (2005)
US music market shares, according to Nielsen SoundScan (2005)

Nielsen SoundScan reported that the big four accounted for 81. 87% of the US music market in 2005:[2]

and in 2004, 72. 64%:

World music market sales shares, according to IFPI (2005)
World music market sales shares, according to IFPI (2005)

The global market was estimated at $30-40 billion in 2004. [3] Total annual unit sales (CDs, music videos, mp3s) in 2004 were 3 billion. A Compact Disc (also known as a CD) is an Optical disc used to store digital data, originally developed for storing digital audio A music video is a Short film or video that accompanies a complete piece of music most commonly a Song with lyrics MPEG-1 Audio Layer 3, more commonly referred to as MP3, is a Digital audio encoding format using a form of Lossy data compression

According to an IFPI report published in August 2005,[4] the big four accounted for 71. The International Federation of the Phonographic Industry ( IFPI) is the organization that represents the interests of the Recording industry worldwide 7% of retail music sales:

Prior to December 1998, the industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. PolyGram was the name from 1972 of the Major label recording company started by Philips as a holding company for its music interests in 1945 After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", commanding 77. 4% of the market, as follows, according to MEI World Report 2000:

Note: the IFPI and Nielsen Soundscan use different methodologies, which makes their figures difficult to compare casually, and impossible to compare scientifically. [5]

Total Value by Country

According to the IFPI more than 95% of the total revenue from music in 2003 was derived from the 30 major countries in the propotions shown above. The International Federation of the Phonographic Industry ( IFPI) is the organization that represents the interests of the Recording industry worldwide

Albums sales and market value

The following table shows album sales and market value in the world in the 1990s–2000s.

N Country Album Sales Share Share of World Market Value
1 USA 37-40% 30-35%
EU 30-32% 31-34%
2 Japan 9-12% 16-19%
3 UK 7-9% 6. 4-9. 1%
4 Germany 7-8% 6. 4-5. 3%
5 France 4. 5-5. 5% 5. 4-6. 3%
6 Canada 2. 6-3. 3% 1. 9-2. 8%
7 Australia 1. 5-1. 8% 1. 5-2. 0%
8 Brazil 2. 0-3. 8% 1. 1-3. 1%
9 Italy 1. 7-2. 0% 1. 5-2. 0%
10 Spain 1. 7-2. 3% 1. 4-1. 8%
11 Netherlands 1. 2-1. 8% 1. 3-1. 8%
12 Mexico 2. 1-4. 6% 0. 8-1. 8%
13 Belgium 0. 7-0. 8% 0. 8-1. 2%
14 Switzerland 0. 75-0. 9% 0. 8-1. 1%
15 Austria 0. 5-0. 7% 0. 8-1. 0%
16 Sweden 0. 7-0. 9% 0. 7-1. 0%
17 Russia 2. 0-2. 9% 0. 5-1. 4%
18 Taiwan 0. 9-1. 6% 0. 5-1. 1%
19 Argentina 0. 5-0. 7% 0. 5-1. 0%
20 Denmark 0. 45-0. 65% 0. 5-0. 8%

Singles sales

Physical single sales in the world in the 90s-00s and digital single sales in 2005.

N Country Physical Sales Share Digital Sales Share in 2005
EU 34-50% 13. 2%
1 Japan 26-32% 1. 7%
2 USA 4-25% 85%
3 UK 14. 5-16% 6. 3%
4 Germany 9-12% 5%
5 France 4-12. 5% 1. 9%
6 Australia 1. 8-4. 6% 0. 48%
7 Netherlands 1. 3-1. 7% < 0. 2%
8 Belgium 0. 8-1. 8% < 0. 2%
9 Sweden 0. 6-0. 96% < 0. 2%
10 Switzerland 0. 5-0. 92% < 0. 2%
11 Austria 0. 58-0. 82% < 0. 2%
12 Italy 0. 3-1. 0% < 0. 2%
13 Spain 0. 3-0. 7% < 0. 2%
14 Norway 0. 3-0. 47% < 0. 2%
15 Ireland 0. 2-0. 5% < 0. 2%
16 Canada 0. 1-0. 6% < 0. 2%
17 Portugal 0. 01-1. 0% < 0. 2%
18 Republic of South Africa 0. 02-0. 45% < 0. 1%
19 New Zealand 0. 19-0. 29% < 0. 1%
20 Denmark 0. 10-0. 25% < 0. 1%

Recorded Music Interim Physical Retail Sales in 2005

all figures in millions

COUNTRY UNITS VALUE CHANGE
Singles CD DVD Total Units $US Local Currency Units Value
1 USA 14. 7 300. 5 11. 6 326. 8 4783. 2 4783. 2 -5. 70% -5. 30%
2 Japan 28. 5 93. 7 8. 5 113. 5 2258. 2 239759 -6. 90% -9. 20%
3 UK 24. 3 66. 8 2. 9 74. 8 1248. 5 666. 7 -1. 70% -4. 00%
4 Germany 8. 5 58. 7 4. 4 71 887. 7 689. 7 -7. 70% -5. 80%
5 France 11. 5 47. 3 4. 5 56. 9 861. 1 669. 1 7. 50% -2. 70%
6 Italy 0. 5 14. 7 0. 7 17 278 216 -8. 40% -12. 30%
7 Canada 0. 1 20. 8 1. 5 22. 3 262. 9 325 0. 70% -4. 60%
8 Australia 3. 6 14. 5 1. 5 17. 2 259. 6 335. 9 -22. 90% -11. 80%
9 Spain 1 17. 5 1. 1 19. 1 231. 6 180 -13. 40% -15. 70%
10 Netherlands 1. 2 8. 7 1. 9 11. 1 190. 3 147. 9 -31. 30% -19. 80%
11 Russia - 25. 5 0. 1 42. 7 187. 9 5234. 7 -9. 40% 21. 20%
12 Mexico 0. 1 33. 4 0. 8 34. 6 187. 9 2082. 3 44. 00% 21. 50%
13 Brazil 0. 01 17. 6 2. 4 24 151. 7 390. 3 -20. 40% -16. 50%
14 Austria 0. 6 4. 5 0. 2 5 120. 5 93. 6 -1. 50% -9. 60%
15 Switzerland ** 0. 8 7. 1 0. 2 7. 8 115. 8 139. 2 n/a n/a
16 Belgium 1. 4 6. 7 0. 5 7. 7 115. 4 89. 7 -13. 80% -8. 90%
17 Norway 0. 3 4. 5 0. 1 4. 8 103. 4 655. 6 -19. 70% -10. 40%
18 Sweden 0. 6 6. 6 0. 2 7. 2 98. 5 701. 1 -29. 00% -20. 30%
19 India - 10. 9 - 55. 3 79. 2 3456. 6 -19. 20% -2. 40%
20 Denmark 0. 1 4 0. 1 4. 2 73. 1 423. 5 3. 70% -4. 20%
Top 20 74. 5 757. 1 42. 8 915. 2 12378. 7 -6. 60% -6. 30%

In its June 30, 2000 annual report filed with the SEC, Seagram reported that Universal Music Group was responsible for 40% of worldwide classical music sales over the preceding year. Events 350 - Roman usurper Nepotianus, of the Constantinian dynasty, is defeated and killed by troops of the Usurper 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. The US Securities and Exchange Commission (commonly known as the SEC) is an independent agency of the United States government which holds primary responsibility Classical music is a broad term that usually refers to mainstream music produced in or rooted in the traditions of Western liturgical and Secular music [6]

Music industry organizations


Further reading

References

  1. ^ Dear Constanze The Guardian
  2. ^ Paul Cashmere (2006-01-05). Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 1477 - Battle of Nancy: Charles the Bold is killed and Burgundy becomes part of France. Universal Is The Biggest Music Company of 2005. Undercover (Australia). Retrieved on 2006-05-27. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 927 - Simeon the Great, Tsar of Bulgaria, dies 1120 - Richard III of Capua is anointed
  3. ^ According to the RIAA the world music market is estimated at $40 billion, but according to IFPI (2004) it is estimated at $32 billion.
  4. ^ IFPI releases definitive statistics on global market for recorded music
  5. ^ [1]"Digital Music Futures and the Independent Music Industry", Clicknoise, February 1, 2007.
  6. ^ BUSINESS AND PROPERTIES The Seagram Company Ltd.

See also

External links

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