Research into how the Music Industry works

History-

·         Recorded Sound first began in 1878 when Thomas Edison’s created the phonograph. His first recording used tin foiled drums as instruments

·         Recorded music however, was only made to help sell the equipment at first, after such a successful profit, recorded music became a sensation

·         Some of the biggest music companies were set up as early music and equipment producers, these included

§  RCA Victor

§  HMV (His Masters Voice)

Organizations-

·         A record label is a brand, and many major recording companies own or control many labels, which have contracts with performers and their managers

·         Music publishers however, are in control of the rights to music compositions, their role includes

§  Producing the music

§  Marketing it

§  Controls copyright/ licensing

·         Independent labels are the companies outside of all the music groups mentioned above. They are still big companies; however they have their own rights. They are considered as producing music far from the mainstream style.

·         Musicians and the industry produce music for different ages, music styles and cultures. Since late 1950’s the youth culture has been the biggest influence to the industry. Music styles are associated with fashion as well as other media like magazines and radio stations.

Promoting-

·         The internet and MySpace can also provide another alternate way to market and distribute music from bands trying to produce their own label. Despite this, a record deal is the best way to get heard.

·         Record companies will sign performers with a contract for a certain number of albums or releases. The company is then responsible for promotion, marketing and distribution; for example TV and Radio appearances to develop a fan base.

·         The music video accompanying the track is just as important in promoting, as used firstly by The Beatles. The first music video was the locomotion in 1962, which was played on a few visual juke boxes.

·         Top of the Pops then MTV have made pop videos essential for promotion. The music press and TV chat shows are another leading way to promote and publicise performers.

Marketing-

·         The image of a performer is key when marketing. Companies look for a performer’s unique selling point. This may be:

§  The performer is good looking

§  Have a new or unusual fashion sense

§  Appeal to young rebellious record byers

§  Have stage presence

§  Have a new musical sound

Money-

·         The music industry is worldwide, with 67% of sales being in Europe and the USA.

·         When purchasing a record, 33% goes to retailer or shop, 5% to the distributor, 19.5% to taxes inc. VAT, approximately 11% to performing (depending on their contract), 5% to the songwriter and 26.5% to record company for manufacture, promotion and administration.