Music industry
The music industry or music business sells compositions, recordings and performances of music. Among the many individuals and organizations that operate within the industry are the musicians who compose and perform the music the companies and professionals who create and sell recorded music (e.g., music publishers, producers, studios, engineers, record labels, retail and online music stores, performance rights organizations) those that present live music performances (booking agents, promoters, music venues, road crew) professionals who assist musicians with their careers (talent managers, business managers, entertainment lawyers) those who broadcast music (satellite and broadcast radio) journalists educators musical instrument manufacture as well as many others.
§ Universal Music Group (USA based) — 31.71%
§ Sony Music Entertainment—21.5%
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. 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:Total value by country:
Recorded music retail sales:
Those two companies, along with Rhapsody and Rootmusic, are expected to be a part of the launch, which is designed to make it easier to share music and hopefully win paying subscribers from Facebook's 750 million users.MOG's free service gives users more songs as they engage other users, particularly if they log on using Facebook's Connect platform."It allows us to reward the tastemakers and influencers," said MOG Chief Executive Officer David Hyman, a former senior MTV executive.Nervous about appearing to encourage the idea that music should be free, music executives privately argue these services are more limited than they initially appear."It's not a shift to free," said a label executive who requested anonymity because negotiations with the services were private. "We're building a larger funnel and driving more consumers to a subscription service."
The company's founders, Janus Friis and Niklas Zennstrom, invented one-time music industry file-sharing nemesis Kazaa and communications service Skype.So far, subscription music services have struggled to capture the collective imagination of everyday music fans. Industry sources estimate MOG and Rdio each have fewer than 100,000 subscribers.
According to IMI estimates, music constitutes 77 per cent of the content download on mobile phone chips, and the music industry in the country faces losses amounting to Rs 300 crore each year due to mobile chip piracy.
Global recorded music revenues fell 8.4% last year, about $1.45bn, to $15.9bn according to the annual Recording Industry in Numbers report by international music industry body the IFPI.
In Europe digital revenue growth increased by an impressive 21.6% with most major markets – including Germany, France, Italy and the Netherlands – seeing double digit increases.
The music industry or music business sells compositions, recordings and performances of music. Among the many individuals and organizations that operate within the industry are the musicians who compose and perform the music the companies and professionals who create and sell recorded music (e.g., music publishers, producers, studios, engineers, record labels, retail and online music stores, performance rights organizations) those that present live music performances (booking agents, promoters, music venues, road crew) professionals who assist musicians with their careers (talent managers, business managers, entertainment lawyers) those who broadcast music (satellite and broadcast radio) journalists educators musical instrument manufacture as well as many others.In the late 19th century and early 20th century, the music industry was dominated by the publishers of sheet music. By the middle of the century records had supplanted sheet music as the largest player in the music business: in the commercial world people began speaking of "the recording industry" as a loose synonym of "the music industry".
§ Sony Music Entertainment (USA based) — 25.61%
§ Warner Music Group (USA based) — 15%
§ EMI Group (UK based) — 9.55%
§ Independent labels — 18.13%
and in 2004, 82.64%:
§ Universal Music Group—29.59%
§ Sony Music Entertainment—28.46% (13.26% Sony, 15.20% BMG)
§ Warner Music Group—14.68%
§ EMI Group—9.91%
§ Independent labels—17.36%
The global market was estimated at $30–40 billion in 2004.Total annual unit sales (CDs, music videos, MP3s in 2004 were 3 billion.According to an report published in August 2005, the big four accounted for 71.7% of retail music sales:
§ Universal Music Group—25.5%
§ EMI Group—13.4%
§ Warner Music Group—11.3%
§ Independent labels—28.3%
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. 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:§ Universal Music Group — 28.8%
§ Sony Music Entertainment — 21.1%
§ EMI — 14.1%
§ Warner Music Group — 13.4%
§ Independent labels — 22.6%
Note: the IFPI and Nielsen Soundscan use different methodologies, which makes their figures difficult to compare casually, and impossible to compare scientifically.
Total value by country:
Recorded music retail sales:
Interim physical retail sales in 2005 - all figures in millions.
Approximately 21% of the gross CD revenue numbers in 2003 can be attributed to used CD sales growing to approximately 27% in 2007 (the growth is attributed to increasing on-line sales of used product by outlets such as Amazon.com, the growth of used music media is expected to continue to grow as the cost of digital downloads continues to rise.)
www.prabhanjamindiajobs.comCOUNTRY | 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 | India | – | 10.9 | – | 55.3 | 239.6 | 11500 | −19.20% | −2.40% |
10 | Spain | 1 | 17.5 | 1.1 | 19.1 | 231.6 | 180 | −13.40% | −15.70% |
11 | Netherlands | 1.2 | 8.7 | 1.9 | 11.1 | 190.3 | 147.9 | −31.30% | −19.80% |
12 | Russia | – | 25.5 | 0.1 | 42.7 | 187.9 | 5234.7 | −9.40% | 21.20% |
13 | Mexico | 0.1 | 33.4 | 0.8 | 34.6 | 187.9 | 2082.3 | 44.00% | 21.50% |
14 | Brazil | 0.01 | 17.6 | 2.4 | 24 | 151.7 | 390.3 | −20.40% | −16.50% |
15 | Austria | 0.6 | 4.5 | 0.2 | 5 | 120.5 | 93.6 | −1.50% | −9.60% |
16 | Switzerland ** | 0.8 | 7.1 | 0.2 | 7.8 | 115.8 | 139.2 | n/a | n/a |
17 | Belgium | 1.4 | 6.7 | 0.5 | 7.7 | 115.4 | 89.7 | −13.80% | −8.90% |
18 | Norway | 0.3 | 4.5 | 0.1 | 4.8 | 103.4 | 655.6 | −19.70% | −10.40% |
19 | Sweden | 0.6 | 6.6 | 0.2 | 7.2 | 98.5 | 701.1 | −29.00% | −20.30% |
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 U.S. Securities and Exchange Commission, Seagram reported that Universal Music Group made 40% of the worldwide classical musicsales over the preceding year.
(Reuters) - The future of the music business is social, free -- and hopefully profitable:
After a decade when sales tumbled 50 percent, record labels cut thousands of jobs and more than 35,000 consumers got sued for illegal downloads, the industry is coming around to the idea of giving away songs as a way to get customers to pay.
This week MOG and Rdio became the latest U.S. digital music startups to offer online streaming access to millions of songs for free, hoping that the slick user-friendly interfaces and deep libraries will convince users to become paying monthly subscribers.
They follow London-based Spotify, whose 18-month-old streaming music service has taken Europe by a storm. After numerous delays, it entered the U.S. market in July.
Other digital services with free access to music will emerge in coming months. Beyond Oblivion, a start-up with backing from News Corp, plans the Boinc service, which will take a different approach by enabling free access to music for users who buy special devices.
The key to success for these services -- and by extension the record labels -- is the conversion rate to paid from free. Spotify has said it has more than 10 million registered users with 1 million now-paying subscribers, for a conversation rate of 10 percent.
Music streaming services typically charge $5 to $15 a month to play any song or album the user wants from a library of songs via computers and mobile devices.
The free/subscription trend comes as sales of downloaded songs have begun to slow down at Apple Inc's iTunes, the No. 1 music retailer by far.MOG and Rdio announced their new free features just ahead of Facebook's developers' conference next week in San Francisco, where sources have said the No. 1 social networking website will launch a music platform.
Those two companies, along with Rhapsody and Rootmusic, are expected to be a part of the launch, which is designed to make it easier to share music and hopefully win paying subscribers from Facebook's 750 million users.MOG's free service gives users more songs as they engage other users, particularly if they log on using Facebook's Connect platform."It allows us to reward the tastemakers and influencers," said MOG Chief Executive Officer David Hyman, a former senior MTV executive.Nervous about appearing to encourage the idea that music should be free, music executives privately argue these services are more limited than they initially appear."It's not a shift to free," said a label executive who requested anonymity because negotiations with the services were private. "We're building a larger funnel and driving more consumers to a subscription service."Typically, the free portion of these services feature advertising, but revenue from that does not yet cover the licensing fees that major labels charge.But Rdio is going a different route. It will not feature advertising and, unlike MOG, will not manage free music based on users' engagement."We won't ask users to spam their friends," said Chief Operating Officer Carter Adamson. He added, however, that user engagement data will determine the number of songs a given user can access on its free platform.
The company's founders, Janus Friis and Niklas Zennstrom, invented one-time music industry file-sharing nemesis Kazaa and communications service Skype.So far, subscription music services have struggled to capture the collective imagination of everyday music fans. Industry sources estimate MOG and Rdio each have fewer than 100,000 subscribers.Rhapsody, the biggest U.S. music subscription service, has been in business for 10 years and only has a paltry 800,000 subscribers, according to its last publicly stated numbers.
This week the company added a new social focus that makes it easier for users to follow each other and share music within the Rhapsody community and around the Web.
Rhapsody spokeswoman Jaimee Steele said the company would consider an advertising-supported service if the economics made sense, but added that there has been little evidence of that to date.
While free might appeal to users, it can be expensive for start-ups that could easily burn through all their funding by paying labels' licensing fees."We have no intention of going out of business in six months," Rdio's Adamson said, emphasizing that the company will be careful not to give away free music to serial abusers."All of these services have VCs, investors and boards -- all of whom expect some sort of return on their investments," said a second record executive who isn't permitted to publicly discuss private negotiations. "As a result, limited free tiers are being offered to get people in the doors. The emphasis is on limited.
Meanwhile, major labels are starting to share the risk from innovative business models after years of suing grandmothers and children for illegal downloading, shutting down game-changing start-ups like Napster and demanding hefty upfront fees from entrepreneurs who tried to work with them.
Label executives are eager for music fans to sign up for subscription services, if only because these businesses promise steady guaranteed revenues similar to the cable television industry.
NEW DELHI: The Indian Music Industry today launched an initiative, Music Mobile Exchange (MMX), to issue licences to mobile store owners offering music downloads in a bid to curb music piracy and cash in on the growing demand for music on mobile phone memory chips.
There is a huge demand for music for mobile phones and we have even seen people advertising download offers, which is illegal. We are offering a legal way for shopkeepers to make money from the increasing demand for music content on mobile chips, IMI Secretary General Savio D'Souza said.
A shopkeeper will have to pay Rs 1,500 to Rs 5,000 per month per computer for licence depending on the kind and location of the shop, he added.
According to IMI estimates, music constitutes 77 per cent of the content download on mobile phone chips, and the music industry in the country faces losses amounting to Rs 300 crore each year due to mobile chip piracy.Mobile chip piracy refers to downloading music from the web or illegally copying it from cassettes or CDs and then transferring it to mobile phones.
UK loses mantle as third-largest music market after 'physical' sales of CDs collapse by almost a fifth
Global recorded music sales fell by almost $1.5bn (£930m) last year as digital piracy continued to take its toll on the industry, with the UK losing its mantle as the third-largest music market after "physical" sales of CDs collapsed by almost a fifth.
Global recorded music revenues fell 8.4% last year, about $1.45bn, to $15.9bn according to the annual Recording Industry in Numbers report by international music industry body the IFPI.Overall physical sales, the term used in the industry for sales of products such as CDs, fell by 14.2% year on year to $10.4bn.
Digital revenues grew by 5.3% year on year to $4.6bn to account for 29% of all recorded music revenues. However, the rate of digital revenue growth has halved year on year as the industry continues to struggle with piracy and winning consumers over to legal download models.
The world's two largest markets, the US and Japan, took a hammering last year accounting for 57% of the total global decline in trade revenues. In 2009 the two countries accounted for 80% of the global decline.
In the US overall sales fell by 10% with physical sales down 20% to just over $2bn and digital sales stagnating with 1.2% growth to $2bn. Japan saw an overall market decline of 8.3% with the report noting that "rapidly rising online is threatening the development of the digital market".
The UK, which had managed growth in 2009 leading some to believe a "tipping point" had been reached where digital sales take up the slack of declining physical revenues, was overtaken last year by Germany as the third-largest music market.
Overall UK sales were $1.38bn, down some $170m or 11% year on year, thanks to a 19.2% fall in physical sales to $920m. Sales through digital channels boomed by 19.6% to $347m.
In Europe digital revenue growth increased by an impressive 21.6% with most major markets – including Germany, France, Italy and the Netherlands – seeing double digit increases."The demand for new music seems as insatiable and diverse as ever, and record companies continue to meet it," said Frances Moore, chief executive of the IFPI. "But they are operating at only a fraction of their potential because of a difficult environment dominated by piracy."
Of the major markets ranking in the top 20 by size, just three saw year-on-year sales increases with Korea up 11.7%, India up 16.5% and Mexico up 0.9%.
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