Media Studies
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Number 024
The Music Industry The aims of this Factsheet are to: • Investigate how the music industry is structured • Define the differences between major and independent music organisations • Examine the distribution and marketing practices used by music institutions to promote recording artists • Introduce and apply theoretical concepts to the music industry
In order to generate revenue a record company or record label enters into a recording contract with an artist. This contract means the record label will fund the production, marketing and distribution of the artist’s recordings. Funds from the sale of the music will be used to pay off the expenses incurred by a record label and the artist will receive royalties from the profits made after costs are met. A recording contract gives control to the record label and so all music made by the artist belongs to the record label and any income generated by them is first used to pay the label’s expenses.
The music industry is a global business that generates profit by selling musical recordings in both physical and digital formats to media audiences. The music industry is a complex and competitive business and record companies and labels are continually devising new ways of attracting audiences to consume their products. Stafford defines the music industry as the ‘organisation of the various activities associated with the performing and recording of music and distributing access to those performances to audiences around the world’. The term music industry refers to all the businesses that are responsible for the creation and the marketing of music. The music industry is an umbrella term used to explain all aspects of music production. The diagram below highlights the various roles undertaken by record labels in the marketing and production of music.
Major and Independent Music Organisations It is possible to divide record companies into two categories, the majors and independents. Majors are institutions that operate on a global scale. Majors are distinct from the independents because they control all aspects of the production and distribution of their music. Currently, the main record companies are: • Universal Music • Sony/BMG • EMI • Warner Music Independent record labels are small-scale companies who traditionally rely on distribution deals from other, often major, record companies. Although independent record companies make up a small percentage of the music market, the British Music Rights Education Factsheet calculated that as many as 3,000 record companies in the UK were responsible for 14,000 record labels. Independence in the record industry means a label operates outside of any major organisation without any funding from them. The notion of independence is problematic; some record labels appear to be independent but are in fact vanity labels. Other record labels market themselves as being independent whilst really being subsidiaries of major record companies. This is done to offer both the label and artists a level of credibility that can be an attractive selling point to potential music audiences as some music fans feel the intervention of large corporations into the music industry stops the creativity of the artists.
Record Labels
Scouting for New Artists
Financing Recordings
Packaging & Distribution
Marketing Promotion & Publicity
Definition Record Company: Is the company or organisation responsible for all the record labels inside the organisation. Record companies create new labels to reflect the varied genres of artists they represent. The creation of different record labels allows them to target their projected markets accurately while still controlling the overall running of the business.
Definition Vanity Label: Originated in the 1960s and is the name given to a label within an existing record company that is owned by a famous artist.
Record Label: Is a company that runs within a bigger organisation. For example, Polydor Records is a large record label created and financed by Universal Music. Although a functioning business in their own right all the profits made by Polydor will ultimately go back into Universal Music.
Activity: Research a record label that is a subsidiary of a major record company. Which artists are signed to the label? What image do these artists represent? Who is the target audience for these artists? What connotations does the name of the record label suggest to potential audiences?
Record companies are the main organisations and act as a parent company for the many different record labels that work within their organisation. Their purpose is to provide variety in the types of recording artists and bands that the record company hope to sell to the public.
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Media Studies
024. The Music Industry
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Major recording companies are using on-line distribution of music and social networking sites to reach potential audiences in a new way. Dane and Laing define the role that the Internet now plays in the music industry.
Exam Hint :- Understanding the differences between independent and major music companies evidences an awareness of how institutions target specific audiences through marketing. Independent music companies will not have as big a marketing budget as a major record company therefore, this will affect the way they market their music in comparison to a major organisation. When studying this topic at A2 it is important to focus on the concepts of industry and institution. To understand how these concepts work, consider who owns the music and how and for whom is profit generated.
The internet is used for: • The sale of traditional physical formats • The marketing of music recordings • Netcasts and live performances • The sale of music downloads • The management of official websites of recording artists and record companies
A vanity label receives funding from the record label it operates under and this money helps fund their distribution and marketing. Record companies support vanity labels for a variety of reasons: 1. The label creates status for the famous artist by allowing them creative control to discover new talent and produce music that is more independent from the ideals of the record company. 2. Vanity labels have the potential to create high volume sales figures for the record company. Vanity labels need little promotion because the artists existing fans are attracted to the new artists signed on the label due to their affiliation with the famous artist ‘responsible’ for the label.
Indie/Independent? The term ‘indie’ is a problematic one as once it referred to the business origins of the record label a band or artist was signed to. Indie music was defined as that which did not have major record label investment in its recording and distribution. In today’s culture the term is more likely to refer to the style of music played, the visual image of the band or the ideological image used for marketing purposes. Lily Allen’s association with MySpace has connotations of ‘indie’. However, she was originally signed to Regal Records (also the home to Babyshambles who connote ‘indie). Regal is a subsidiary of Parlophone, which is in turn owned by EMI… as is Allen’s new vanity label AngryApe.
Activity Research a vanity label and identify which star and the record company that owns it. Investigate the history of the label and determine how that artist has influenced the artists on ‘their’ label. What other media does the label invest in and is it successful?
Distribution and Marketing Once an artist has created their recording, it is then distributed and marketed in order to attempt to make a profit and cover the cost of its production. It is the record label’s responsibility to promote and distribute the product.
Case Study: Maverick Records Madonna’s Maverick label started in 1991 through Warner Brothers as part of her recording contract with the record company. The label managed artists such as Alannis Morrisette, The Defttones, Paul Oakenfold, William Orbit and The Prodigy. In 2007 Madonna sold her 60% shares in the company and it is now managed solely by Warner Brothers. Maverick enjoyed a lot of success, producing popular film soundtracks for Kill Bill Volume 2, The Wedding Singer, The Matrix and Lock, Stock and Two Smoking Barrels. Aside from music, Maverick also invested money into other media production including books, films, and television production programmes. Madonna’s name and reputation as a successful solo music artist helped the Maverick gain notoriety for being a successful record label. www.wizardtrivia.com
Record companies must market the music correctly in order to attract the intended target audience. The mass media, specifically the Internet, radio, television and the music press play an important role in the distribution and marketing of music to the intended target audience. • Radio: plays an important role in promoting the artist via frequent airplay on popular channels. In 2004 the official downloads chart was launched and runs alongside the conventional music chart. This has provided artists with more opportunity for radio exposure.
Distribution and Marketing: Modern Music and the Internet www.bonnaroo.com/.../Lilly-Allen-bio.jpg The Internet has now provided artists and individuals the opportunity to launch independent record labels known as Net Labels. These companies operate by distributing music primarily through digital audio formats via web sites on the internet. The MP3 format has allowed for easier distribution of music by individuals and the use of global websites such as My Space are playing a big part in promoting new bands.
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Television: the popularity of music channels such as MTV helps promote a recording artist’s image and sound to a global audience.
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The Music Press: have close relationship to the music industry and are very influential in the marketing and promotion of new recording artists.
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The Internet: official websites help reinforce the image and sound of the recording artist. Websites offer the opportunity for continual and up-to-date promotion and the popularity of chat rooms, message forums and blogs also enable fans to communicate with other fans.
Media Studies
024. The Music Industry
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Synergy is another way in which record companies generate income via advertising and marketing their artists in association with other brands or products. Synergy occurs when one branch of a company (e.g. Sony Music) uses another part of the company (the gaming division) to promote each other. In this example, synergy occurs when the gaming division uses an artist’s music on a game soundtrack. Synergy can occur between divisions of entertainment companies (music, film, television, gaming, books, magazines etc.) and also between the music industry and businesses outside entertainment. Two unrelated brands such as The Black Eyed Peas and Pepsi worked together to target a broader audience and this collaboration benefited both the band and the soft drink.
Theoretical Concepts The fact that the primary function of the music industry is to generate profit is argued by some theorists to create a conflict as music is seen to be a creative art or an expression of ideas, unlike, for example advertising which is solely focussed on meeting its economic function of persuading the audience to purchase goods. Consider how music videos, posters, interviews in the music press and personal appearances all act as adverts for the products being sold by the music industry. Some theorists have identified this financial motivation as being detrimental to artistic development and creativity.
Adorno and the Culture Industries
Definition
Adorno built his theory of the culture industries on Marxist principles. He was a critic of the capitalist system and argued that popular culture or the culture industries maintained capitalism. They achieve this by offering audiences generic products and consumer goods that act as diversions, making them disinterested in politics and change. Adorno argued that the products produced by the culture industries are: • Formulaic • Simplistic • Emotive
Synergy: When two different media organisations join forces in order to reach a wider audience and strengthen their individual brands.
Case Study: Fifty Cent and Bob Dylan Both Fifty Cent and Bob Dylan have used synergy to promote themselves to a mass audience. Fifty Cent is a successful solo rap artist and has promoted himself through different media institutions. In 2003 he signed a five year deal with Reebok to distribute G-Unit footwear as part of his own G-Unit Clothing Company. He has also provided the voiceover as the protagonist in the video game 50 Cent: Bulletproof, which was released for PlayStation 2, Xbox, and the PSP.
Adorno believed the culture industries were responsible generating false needs. The culture industries’ main role is to persuade consumers to put money they have earned back into the capitalist system. Adorno saw the culture industries’ use of technological reproduction as a way of controlling audience spending. He felt the products they produced were standardised and pseudo-individualistic. For example Mariah Carey, Amy Winehouse, Beyonce and Christina Aguilera each have their own unique selling point but are generically similar and also resemble other singers of the past such a Diana Ross, Celine Dion and Billie Holiday. http://img2.timeinc.net/people/i/2006/celebdatabase/ christinaaguilera/christina_aguilera1_300_400.jpg
Bob Dylan is an established artist who has worked alongside Apple and Starbucks to promote his music. This has resulted in a boost to both his public profile and record sales. Apple has benefited from his endorsement of their product by promoting new technology to an older audience. Starbucks have been able to increase sales inside their stores by being the only distributor of a one off Dylan album recorded especially for them. www.smh.com.au http://media.collegepublisher.com/media/paper920/stills/ 42602c291c37e-49-1.jpg
Definition Pseudo-Individualism: Products of mass media and popular culture which are marketed as being unique but are in fact generic and/or formulaic.
Peterson and Berger
Activity
Peterson and Berger examine the concept of authenticity and ideology within popular music. They identify that historically popular music had come from a place of resistance to dominant ideologies and values and provided a creative outlet for people that allowed expression of counter-cultural positions. However, they argue that:
Research two recording artists or bands that have used synergy as part of their marketing strategy. Analyse what strengths the two ‘brands’ have and examine why these brands will help each other appeal to a broader mass audience.
Exam Hint:- When analysing the ways in which music is marketed to audiences it is important to evidence not only the way in which the artist/band has been created to meet audience demand but also the way in which the institution and its values has helped create and shape the products it produces. Remember all media texts are a product of the institution that has produced it.
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Once music is commercialised it looses its authenticity
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Commercialised music is non-resistant to dominant ideologies, even when its origins are (e.g. Rap and Hip Hop, Blues, Jazz, Punk etc.)
Media Studies
024. The Music Industry
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Peterson and Berger believe that because the music industries are primarily concerned with generating a profit, they choose to invest in musical forms that offer the least resistance to the culture and they take resistant musical forms (e.g. Soul) and sanitize them (removing ideological challenges) to make them attractive to a mainstream audience (e.g. Mariah Carey). Once a successful format is identified it will be replicated and re-sold to audiences. This ongoing production of similar musical forms reduces the possibility of musical development and removes all resistant qualities. This, Peterson argues is problematic for audiences as: •
The audience relies on the media for information and this removes audiences from creative ‘street level’ or original music
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Audiences can only access what the media offers them and they do not have access to all musical choices that are available
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The industry only invests in the types of music that audiences are familiar with and, therefore, only offer what has been proven to be successful in the past
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This reduces music into formulaic and predictable formats means past successes are replicated often o For audiences this means they can only access more of the same o For the record companies there is less financial risk and more potential profit o Ultimately, this means less choice for consumers
The boyband is a replicated formula: The Osmonds, The Bay City Rollers, Take That, East 17, Boyzone, Westlife, Five, N Sync etc. Each generation gets its own boyband – different clothes and hairstyles but fundamentally the same product.
Exam Hint:-When you apply theory to your work it must have a purpose. The examiner does not give marks just because it appears on your exam response. When applying theory consider how it can help to further your analysis and strengthen your argument.
The Osmonds
AQA/WJEC/OCR? All awarding bodies encourage the study of media industries and the relationship between audiences, text and institution is an important aspect of the course for each awarding body. You can also study music as an industry and the media texts it produces for coursework. At A2 for WJEC and AQA you could produce an analysis of a specific aspect of the industry and produce related media products in your practical production.
The Bay City Rollers
Boyzone
East 17
Wesrlife
Take That
http://www.soulwalking.co.uk http://www.lincoln-live.com/Westlife http://blogs.guardian.co.uk/culturevulture/archives/ http://www.thehollywoodnews.com/artman2/uploads/1/takethat_1.jpg http://cache.viewimages.com/xc/3287350.jpg http://www.geocities.com/richterfamily_uk/boyzone1.gif
Acknowledgements: This Media Studies Factsheet was researched and written by Emma Cairns Curriculum Press. Bank House, 105 King Street, Wellington, TF1 1NU. Media Factsheets may be copied free of charge by teaching staff or students, provided that their school is a registered subscriber. No part of these Factsheets may be reproduced, stored in a retrieval system, or transmitted, in any other form or by any other means, without the prior permission of the publisher. ISSN 1351-5136
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