The State Of The Music Industry

brief history: 

There have always been two sides the music industry. The Mainstream and the Independent  The Mainstream side has large organisations, they saturate (wide variety) their markets, they have enough money to afford high production values, and they're considered the "majors". On the other hand, the Independent side operate interdependently to major labels, their genres are niche and they have specific markets.

In the late 70s to the 1990s, there was "the big 6". 

In the late 90s, there was the big 5,

in 2004 there was the big 4 = Universal, EMI, Warner, Sony.

Before the generation of the internet, there were many ways to get music;

1. From the radio (either listening straight or recording the songs on a recorder.)

2. Going into a music store and purchasing a single or an album.

3. Pay-per-view on MTV.

The current situation:

Nowadays, there are falling profits. People download music/don't pay for it, listen to songs for free on youtube, have their music stored on listening devices and don't need to go into stores and pay for their music. 

Sales for albums dropped over 100 bmillion pounds between 2008 and 2012, because there are shifts in consumer behaviours. People find singles they heard on the radio and while they are more active in music consumption, this because they are downloading and watching on Youtube, rather than idly sitting at their T.V or radio. 

Artists are trying to re-create some money through endorsements and a new revenue stream, and creating new places to buy music such as iTunes.

Universal just bought out EMI, so now, in 2012, there are only a big 3. Universal will have to sell Parlaphone in order to regenerate cash flow. 

Trending: 

The record labels own the music. The aim of the artist is to be signed to a label, to promote their music, and to sell a maximum number of records. This can be achieved in a number of ways.

There is legal downloading:

MP3 format, iTunes, AmazonMP3

Illegal downloading:

67 illegal download services, 3/4 of all downloading in U.K is illegal, Youtube-MP3 converters, 1.2 billion illegal downloading in the U.K in 2012

Streaming: 

Allows music to be delivered on demand, sites can be free or not, free sites cover costs with adverts.

Social Networking:

A way that people can find out about music is through viral sharing, a.k.a social networking:

Facebook, Twitter, Google+, Youtube, Artist Websites, Fan sites.

Role of a Music Video:

- To promote the latest single.

- To sell the album

- Aired on MTV

- Youtube enables to view for free

- Give the artist exposure

- Cross media promotional packages (gigs etc.)

- Without a video, the song does not have the same impact.

Prosumers: 

These promote and consume at the same time. Making fan-based work for example a meme is producing, telling their friends is distributing/promoting, and uploading the video is exchanging. 

Lady Gaga:

Lady Gaga is able to do all of the new revenue in order to get money, even in today's poor situation. She:

- Is signed to Interscope records (Universal)

- Is distributed by Konlive

- Has over 53 million fans on Facebook.

- Has over 10 million followers on Twitter.

- Has her own website.

-Has a Youtube VEVO

- Has won 13 MTV awards.