Media Ownership In The Music Industry

1. What impact does media ownership have upon the range of products available to audiences in the the music industry?

Media ownership is controlling a range of mass media. All media is owned by a company or conglomerate.
The music industry is dominated by the 'big three' or the music majors: Warner Music Group, Universal Music Group and Sony Music.
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.

According to a Music and Copyright 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 with other media industries.

A media conglomerate is a multinational firm that distributes media products in the industry, owning large numbers of companies in various mass media such as television, radio, publishing, films and the internet. Six conglomerates hold 90% of what we read, listen to and watch therefore the public is easily manipulation without them knowing through the use of the hypodermic needle theory.

(Hypodermic Needle Theory; a model of communications suggesting that an intended message is directly received and wholly accepted by the receiver.)
Media conglomerates strive for policies that facilitate their control of the markets across the globe.
The fact conglomerates control all the different media sectors means that they can give a vast range of products.
Moreover, these conglomerates tend to provide a variety of products to audiences to promote their band or artist through synergy.
(Synergy- is the combined working together of two or more parts of a system so that the combined effect is greater than the sum of the efforts of the parts)

SONY:
Some subsidiary labels of Sony....

• Columbia Records
• Epic Records
• RCA Records
• Sony Music Nashville
• Legacy Recordings
• RED Distribution

The subsidiary labels of Sony are all horizontally integrated. Horizontal integration is when companies create side companies that are alike, which is either complimentary or creates competition. 

The Sony conglomerate has business in other media industries. Sony owns recording studios, distribution companies and retail stores, these are all vertically integrated. Vertical integration is when a company expands its business into areas that are at different points on the same production paths, it helps to increase efficiently and decreases transportation costs and turn around time.

There are also independent labels. These labels are affected differently by media ownership due to being smaller companies. These companies operate separately from the Majors and often specialise in specific music genres. They tend to cater for more niche audiences. 

The most successful independent record label in the UK is Domino. Artists such as Arctic Monkeys and Franz Ferdinand have signed with them.
The independent record label XL Recordings have been hugely successful with their signed artist Adele.
Many record labels that people think are independent are, in fact, usually subsidiaries of a major label.

The production, distribution and exhibition/exchange of artists in major record labels and independent record labels vary.

For the music Majors their plan would be as follows; 

1. Sign an artist 

2. Write an album and record it

3. Give away a track

4. Set up an online profile (to get to top of Google search)

5. Set up a Facebook page

6. Create website

7. Plugger gets airtime on Radio 1

8. Release for digital sale on iTunes

9. Album available to purchase in shops

For independent labels who cannot find their artists on talent shows their plan would be slightly different;

1. Find an artist

2. Deals are made between the independents - labels and artists

3. Tracks are written and recorded 

4. DIY - promotion: blogging, Facebook, MySpace

5. Live gigs (play for free)

6. Start distributing (go to shops, iTunes)

7. Have a launch party 

8. Offer free tracks and promote everywhere