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Encyclopedia > Major record label
This article documents a current event.
Information may change rapidly as the event progresses.

The world music market is the global market for the commercial trade of music. As of 2006, this market is dominated by the "Big Four record labels": Universal Music Group, Sony BMG Music Entertainment, EMI Group, and Warner Music Group. These companies control around 70% of the world music market and around 85% of the United States music market, demonstrating the concept of oligopoly within the music industry. On 13 July the EU annulled the merger of Sony Music and BMG and declared that Sony BMG must demerge Sony Music and BMG into seperate entities once again. Wikipedia does not have an article with this exact name. ... A market is, as defined in economics, a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange. ... The music industry is the industry that creates, performs, promotes, and preserves music. ... Music is a form of expression in the medium of time using the structures of tones and silence. ... Universal Music Group (UMG), formerly MCA Music Entertainment (see Music Corporation of America), is the largest major label in the record industry. ... The Sony BMG Music Entertainment logo. ... The EMI Group is a major record label, based in Kensington in London, in the United Kingdom. ... Warner Music Group (NYSE: WMG) is one of the four major record labels. ... An oligopoly is a market form in which a market is dominated by a small number of sellers (oligopolists). ... The music industry is the industry that creates, performs, promotes, and preserves music. ... ... BMG (Bertelsmann Music Group) is one of the six divisions of Bertelsmann. ...

Contents


Terminology and business structure

The term "record label" when referring to the Big Four is a misnomer, as they are actually corporate umbrella organizations called business groups. A music group is a business group consisting of music related companies, and is typically owned by an international conglomerate holding company, which often has non-music divisions as well. A music group controls and consists of music publishing companies, record (sound recording) manufacturers, record distributors, and record labels. A record label is a company that manages sound recording-related brands and trademarks (both of which are also called labels); coordinates the production, marketing, licensing, and copyright protection of sound recordings and videos; and maintains contracts with recording artists and their managers. Record companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music group. This article or section is in need of attention from an expert on the subject. ... Identify 3 conglomerates and clearly explian the scope of their business. ... A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ... This article or section does not cite its references or sources. ... A brand is a collection of feelings toward an economic producer; more specifically, it refers to the concrete symbols for the brand, such as a name and design scheme. ... A trademark or trade mark[1] is a distinctive sign of some kind which is used by a business to uniquely identify itself and its products and services to consumers, and to distinguish the business and its products or services from those of other businesses. ...


Record companies and music publishers that are not under the control of the Big Four are generally considered to be independent, even if they are large corporations with complex structures. Some prefer to use the term indie label to refer to only those independent labels that adhere to an arbitrary, ill-defined criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.


Reported statistics

Nielsen SoundScan reported that the big four accounted for 81.87% of the world music market in 2005:[1]

  • Universal Music Group (France/USA based) — 31.71%
  • Sony BMG Music Entertainment (Japan/Germany based) — 25.61% (13.83% Sony, 11.78% BMG)
  • 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 BMG — 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.[2] Total annual unit sales (CDs, music videos, mp3s) in 2004 were 3 billion. The Compact Disc logo was inspired by that of the previous Compact Cassette. ... A music video (also promo) is a short film or video that accompanies a complete piece of music, most commonly a song. ... MPEG-1 Audio Layer 3, more commonly referred to as MP3, is a popular digital audio encoding and lossy compression format, designed to greatly reduce the amount of data required to represent audio, yet still sound like a faithful reproduction of the original uncompressed audio to most listeners. ...


According to an IFPI report published in August 2005,[3] the big four accounted for 71.7% of retail music sales: The International Federation of Phonogram and Videogram Producers (IFPI) is an international record industry organization based in Zurich, Switzerland. ...

  • Universal Music Group — 25.5%
  • Sony BMG Music Entertainment — 21.5%
  • EMI Group — 13.4%
  • Warner Music Group — 11.3%
  • independent labels — 28.4%

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 including PolyGram — 21.1%
  • Sony Music — 17.4%
  • EMI — 14.1%
  • Warner Music Group — 13.4%
  • BMG — 11.4%
  • independent labels — 22.6%

In 1918, worldwide sales of phonograph/gramophone records were estimated at 100 million units. Edison cylinder phonograph ca. ...


Albums sales and market value

The following table shows album sales and market value in the world in the 1990s–2000s,

N Country Album Sales Share Share of World Market
1 USA 37-40% 30-35%
EU 30-32% 31-34%
2 Japan 9-12% 16-19%
3 UK 7-9% 6.4-9.1%
4 Germany 7-8% 6.4-8.3%
5 France 4.5-5.5% 5.4-6.3%
6 Canada 2.6-3.3% 1.9-2.8%
7 Australia 1.5-1.8% 1.5-2.0%
8 Brazil 2.0-3.8% 1.1-3.1%
9 Italy 1.7-2.0% 1.5-2.0%
10 Spain 1.7-2.3% 1.4-1.8%
11 Netherlands 1.2-1.8% 1.3-1.8%
12 Mexico 2.1-4.6% 0.8-1.8%
13 Belgium 0.7-0.8% 0.8-1.2%
14 Switzerland 0.75-0.9% 0.8-1.1%
15 Austria 0.5-0.7% 0.8-1.0%
16 Sweden 0.7-0.9% 0.7-1.0%
17 Russia 2.0-2.9% 0.5-1.4%
18 Taiwan 0.9-1.6% 0.5-1.1%
19 Argentina 0.5-0.7% 0.5-1.0%
20 Denmark 0.45-0.65% 0.5-0.8%

Singles sales

Physical single sales in the world in the 90s-00s and digital single sales in 2005.

N Country Physical Sales Share Digital Sales Share in 2005
EU 34-50% 13.2%
1 Japan 26-32% 1.7%
2 USA 4-25% 85%
3 UK 14,5-16% 6.3%
4 Germany 9-12% 5%
5 France 4-12.5% 1.9%
6 Australia 1.8-4.6% 0.48%
7 Netherlands 1.3-1.7% < 0.2%
8 Belgium 0.8-1.8% < 0.2%
9 Sweden 0.6-0.96% < 0.2%
10 Switzerland 0.5-0.92% < 0.2%
11 Austria 0.58-0.82% < 0.2%
12 Italy 0.3-1.0% < 0.2%
13 Spain 0.3-0.7% < 0.2%
14 Norway 0.3-0.47% < 0.2%
15 Ireland 0.2-0.5% < 0.2%
16 Canada 0.1-0.6% < 0.2%
17 Portugal 0.01-1.0% < 0.2%
18 RSA 0.02-0.45% < 0.1%
19 New Zealand 0.19-0.29% < 0.1%
20 Denmark 0.10-0.25% < 0.1%

Recorded Music Interim Physical Retail Sales in 2005

all figures in millions

UNITS VALUE CHANGE
Singles CD DVD Total Units $US Local Currency Units Value
1 USA 3.3 300.5 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 13.3 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 Spain 1 17.5 1.1 19.1 231.6 180 -13.40% -15.70%
10 Netherlands 1.2 8.7 1.9 11.1 190.3 147.9 -31.30% -19.80%
11 Russia - 25.5 0.1 42.7 187.9 5234.7 -9.40% 21.20%
12 Mexico 0.1 33.4 0.8 34.6 187.9 2082.3 44.00% 21.50%
13 Brazil 0.01 17.6 2.4 24 151.7 390.3 -20.40% -16.50%
14 Austria 0.6 4.5 0.2 5 120.5 93.6 -1.50% -9.60%
15 Switzerland ** 0.8 7.1 0.2 7.8 115.8 139.2 n/a n/a
16 Belgium 1.4 6.7 0.5 7.7 115.4 89.7 -13.80% -8.90%
17 Norway 0.3 4.5 0.1 4.8 103.4 655.6 -19.70% -10.40%
18 Sweden 0.6 6.6 0.2 7.2 98.5 701.1 -29.00% -20.30%
19 India - 10.9 - 55.3 79.2 3456.6 -19.20% -2.40%
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%

Miscellaneous

In its June 30, 2000 annual report filed with the SEC, Seagram reported that Universal Music Group was responsible for 40% of worldwide classical music sales over the preceding year.[4] June 30 is the 181st day of the year (182nd in leap years) in the Gregorian Calendar, with 184 days remaining. ... This article is about the year 2000. ... The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ... Classical music is a broad, somewhat imprecise term, referring to music produced in, or rooted in the traditions of, European art, ecclesiastical and concert music, encompassing a broad period from roughly 1000 to the present day. ...


References

  1. ^ Paul Cashmere (2006-01-05). Universal Is The Biggest Music Company of 2005. Undercover (Australia). Retrieved on 2006-05-27.
  2. ^ According to the RIAA the world music market is estimated at $40 billion, but according to IFPI (2004) it is estimated at $32 billion.
  3. ^ http://www.ifpi.org/site-content/publications/rin_order.html
  4. ^ http://www.secinfo.com/dsvr4.58n4.htm#445

2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... January 5 is the 5th day of the year in the Gregorian calendar. ... 2006 (MMVI) is a common year starting on Sunday of the Gregorian calendar. ... May 27 is the 147th day (148th in leap years) of the year in the Gregorian calendar, with 218 days remaining. ...

See also

The following is a partial list of record labels, both past and present. ... This is the list of best selling music artists (including groups) worldwide, alltime. ...

External links

  • http://www.move.de/amm/ECON.htm - CD-Markets size in 1996
  • http://www.zobbel.de/ - World records sales in years 1994/95/97/98.
  • http://www.ifpi.org/site-content/publications/rin_order.html - 2005 Market Share
  • http://www.HitQuarters.com - World Top 20 A&R Chart

  Results from FactBites:
 
Record label - Wikipedia, the free encyclopedia (863 words)
Most major record labels are owned by a few large multinational companies (Big Four record labels) that make up the almost all of the global recording industry, although there is a recent resurgence in independent record labels.
Often the record label's decisions are correct ones from a commercial perspective, but this typically frustrates the artist who feels that their artwork is being destroyed.
Such labels have a reputation for being fiercely uncompromising and especially unwilling to cooperate with the Big Four record labels at all.
  More results at FactBites »


 

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