Recording Labels and Music Marketing - Coursework Example

Recording labels and music marketing Task: Recording labels and music marketing Technological advancement in the music industry has made enormous changes. This has enabled formulation of varied genres of music that various individuals and companies use in the process of music production. The traditional music industry had many weaknesses in terms of technology that could not allow competency to the current film industry. The 20th century marks the origin of technological advancement in the current film industry. Some of the stakeholders in the film industry include music publishers, online music stores, record labels and performance right organizations not forgetting the live performance producers who are responsible for ticket dispensing, promoting and organizing venues for various performances. Music serves various purposes from the cultural or political arena. Traditionally music artists relied on CDs to supply their music. People had limited access to such music and only people with the relevant equipment for playing such music had the ability to play such music. The diversity in music production has led to the development of experience and creative firms. The sectors include fashion, design, architecture, tourism and crafts, which help in shaping and modeling the music industry. However, in the current world, iTunes have taken a turn in the music industry where over 90 percent of people access music through the internet. Some of the sites where music gets accessed readily include YouTube, MOG, free music on Spotify, Pandora customized music internet and Slacker. The charges for such music sites depend on the policies governing their access. Some allow unlimited music streaming while others charge for the usage of such sites. Consequently, payments for the artists whose songs remain accessed vary. For instance, according to Spotify, Rdio and MOG band manager, an artist whose songs gets streamed in the sites for more than 60 times receives a 9.1 cent mechanical royalty payment. It is a fact beyond any doubt that without various music producers and labels, it would be impossible for the music industry to prosper (Richards & Durrant 2003, pp. 83). Various record labels exist in the music industries that are used for the production of diverse genres of music. In as much as there are various record labels, the paper attempts to focus on Warner Music Group/WMG (Burgess & Green 2009, pp. 23). Warner Music Group (WMG) is an entertainment conglomerate and at the same time an American global music industry with it’s headquarter in New York. It is an American owned music corporation, which fall among the three largest corporations in the world. The music label has a decentralized organization system having its successful branches such as Atlantic Records and Warner Bros. Records. The multibillion-dollar company works in over 50 countries with 4000 people as employees. Stephen Cooper is the chief executive officer with David Johnson as the chairperson as well as the CEO of the Cappell music. The company started operation in 1958 when dot records and paramount pictures came to the apex of music production. Since its formulation, the company has had various distribution agreements including mergers to stabilize its activities. The company mainly operates in internet sites and radio stations in order to sell its music labels. For instance, in June 2010, the company through its executive, signed a deal with MTV networks that allow MTVN to sell and add exclusively premium content to various labels. This in turn, resulted into an online video sharing network that allows access to Warner Bros music. Existence of copyrights in any industry prevents competitors as well as scrupulous business people from adopting same policies. Warner music group like other businesses has its property rights that guide its operations. YouTube is online video streaming media where every type of music finds its way. It is the role of property rights to protect music from such sites where people access them free, thereby not rewarding the proprietor. It is in this light that the company has various property rights. For instance, it prohibits direct upload or download of music that does not match its standards. This is to prevent cases like that of an audio swap artist FatJim 27, who sued the company, for including a content of music, which matched his third album. The company; therefore, has a role in distinguishing various property rights and implementing various corrective measures (Litman 2001, pp. 65). For instance, due to the above lawsuit, it muted al videos that did not match its property rights standards. Some of the movies have also been deleted without notice in a bid to curb the unbecoming trend of ignoring copyrights. Revenue streaming remains one of the largest source of revenue for any music-streaming agency. Warner music group in 2009, for instance, raise 25% of its revenues from the digital bottom line. This is a large amount of money considering what other competitors get from the same avenue. The streaming revenue from the online video streaming to Warner music group was because of subscription from sites like Rhapsody and Spotify. Notably, the streaming revenue does not include cloud services like apple or the Amazon. The 25% was an equivalent of $54 million, which was an increase in the company’s digital earnings (Knopper 2009, pp. 54). Importantly, the company does not cannibalize on the traditional methods of raising revenues such as iTunes dominated by competitors. In as much as the reduced link with consumers has limited access to many people for feedback, it is significant to note that the current generation involves generation, which is mainly interested in obtaining things from the internet. According to senior analysis Hisham Dahud, the company has made significant achievements by diverting its operations towards the digital arena (Harrison 2008, pp. 43). It is also important to note that the digital technology does not limit artist from engaging with the company, but only increases the chances and market size around the world. For example, the music pact between rapper 50 cent and the universal music group, which is part of the larger Warner music group, enabled streaming of the rappers music. This in turn ensured sharing of revenue, which guaranteed the company to receive a portion of revenue collected hence, contributing to part of it streaming video revenue. Warner music group has met various challenges in the past 60 years to gain a position of the fourth largest music-recording venture (UNESCO 2005, pp 81). The company’s history dates back to 1929 when the president of Warner Bros pictures become a founder of music publishers Holding Company (MPHC). Within a short period of intense music production and distribution of movie soundtracks, the company was able to gain financial stability by 1958. In the past 50 years, Warner music group has dominated the music industry leading in creativity and innovativeness of diverse music styles and labels (Wikstrom 2009, pp 67). Because of the financial viability, the company was able to acquire other weak music streaming sites, as well as sign contracts with major artists such as 50 Cent. For instance, it was able to acquire Frank Sinatra Reprise Records in early 1963, which was to be used as a distributor to the products. Apart from acquiring other music ventures, the company has also made several achievements in launching various branches in order to increase the market share. Atlantic records got launched in 1947 as a form of specialization in New York due to the emergence of various genres of music. The success of the project was by the help of Herb Abramson and Ahmet Ertegun who had proficiency in music production. The sub branch of Warner music group mainly concentrated on R&B as well as Jazz music production. Electra records on the other hand got launched in 1950 with the help of Jac Holzman in a bid to tap the talented people in folk music label. The developments did not stop and currently, the group has many sub branches, which it uses for outsourcing various music labels. For instance, the company houses recording ventures such as Bad boy, Cordless, East West, Nonesuch, Rhino, Reprise, Rykodisc and road runner. From 1970, the company moved to the international arena formulating Warner music international (WMI), which was to be used to market American artists in the international bazaar. Globally the music company has acquired various branches such as the Chappel and Intersong Music Group, which got launched in 1987 (UNESCO 2005, pp 77). In 2002, the escalating venture acquired a joint venture with Bad Boy and consequently Ryco Recording Corporation in 2006. In the same year, the company also dominated the shared of Road master music recording group, finishing the year with acquisition of nonstop music production. In order to improve liquidity and stability of the company, change of ownership got experienced in 2004 where a new investor group including Thomas H. Lee, Bain capital, Providence Equity partners and the Music capital partners got introduced into the capital liquidity (Liebowitz 2004, pp. 229). This got followed by a standalone declaration in 2005 by the company’s executives, which enabled the company to publicize and dominate the market to the current. The contemporary music market has various technological advancements, a factor that calls for adjustments in Warner music group operations. Consequently, the current music industry is made of generation Y, which mainly depends on the internet for faster access of any video streaming (UNESCO 2005, pp 76). In as much as, the company has also made significant achievements towards meeting the technological demand, a rift still exist between technology and the company. This is because of the resonating competition in the music production sector, where competitors are in a bid to explore varied ethnical cultures. Apart from technological advancement, culture remains another important factor in music production. It in this regards that technological innovations ensure cultures prompt for any targeted market especially in the USA and Britain. The stylistically appropriateness and localization of any culture also play a significant role in facilitating music production. These, therefore, are some of the factors that the company must take into consideration in order to ensure success. Consequently, Warner Music Groups should facilitate cultural and media studies to its stakeholders. This helps in advanced research of critical issues that might sideline the spread of different music genres. Nostalgic presentations are among the factors, which have contributed to poor performance of various music labels. It is in this regards that Warner music groups should take into keen consideration of the cultural aspect in order to prevent conflicting interests in the succeeding generation of baby boomer. Notably, the youth in 1950s is far much different from the current youths. Record labels in the 1950s therefore must have significant differences to record labels in the current as well as succeeding generations (Webb 2007, pp. 151). It is evident that there is a relationship, which exists between youth, attendant form of diverse styles and music. This has made production of varied labels difficult; however, the style driven youths have formulated a consumer group that needs specialized attention. Marketing play significant roles in the contemporary recording label business. This is because; they provide a comprehensive outlook of the inner record labels. Consequently, they connect consumers with the commercial music store hence creating demand as well as interest. Traditional means of marketing labels had various weaknesses in terms of execution since it limited the scope and access by customers. Record label marketing, therefore, is an essential part of any music-recording avenue and needs to be incorporated for success. Efficient marketing strategies enable consumers to get a gist of varied music genres even before reaching the market. In addition, such marketing styles contribute to high revenues, which is an aspiration of any business venture (Nercessian 2002, pp.89). Considering the nature of competition in the music industry, Warner music group needs a solid marketing strategy, which merges different form of music including Hip Hop, Rap and urban styles. The sites should also offer positive and clean lyrics that leave consumers satisfied with the contemporary products. Consequently, the marketing strategy should incorporate various record genres including light, beat and reed records. The multifaceted promotional strategies should also incorporate various product promotional sites including dance club promotions, broadcast videos, internet sites, radio casting and television broadcasting not forgetting print video systems. Last but importantly, any music-marketing label should not employ traditional marketing means although they are imperative. This is to prevent monotony and keep ahead of the competitors. While concluding all music recording company is in the verge of meeting the diverse cultural tastes and preferences. This is through the application of multifaceted methods of production that incorporate diverse cultures. The music industry, career avenues spread in a large arena. This includes music producers and editors, as well as organizers. Apart from people who have direct contact with music production, there are also the executive departments that deal with administration. This, therefore, makes the music industry an area of advanced employment. References Anderson, P & Michael L. T 2001: Organizational environments and industry exit: the effects of uncertainty, munificence and complexity, journal of Industrial and Corporate Change 10, 675–711. Broughton, S (ed.) 2006. The Rough Guide to World Music. Vol 1 Africa and Middle East, Penguin, London. Burgess, J., & Green, J. (2009). YouTube. Polity Press: Cambridge. Burkart, P & Tom M 2006, Digital Music Wars. Ownership and Control of the Celestial Jukebox, Rowman & Littlefield, Oxford. Burkart, P 2005, “Loose Integration in the Popular Music Industry,” journal of Popular Music and Society 28, 489–500. Campbell, J. L 2004, Institutional Change and Globalization, Princeton University Press, Princeton. Denisoff, S R 2008, Inside MTV, Transaction, New Brunswick. Green, L 2008, Music, informal learning and the school: A new classroom pedagogy. MPG Books, Bodman. Greher, G. R 2006, Transforming music teacher preparation through the lens of video technology. Journal of Music Teacher Education, Vol. 15, no. 2, 49-60. Harrison, A, 2008. Music: The Business: the essential guide to the law and the deals,Virgin, London. Henderson, R. M 2006, “The Innovator’s Dilemma as a Problem of Organizational Competence.” Journal of Product Innovation Management 23, 5–11. Hull, G. P 2004: The Recording Industry, Routledge, New York/London. Katz, M 2004, Capturing sound: How technology has changed music. University of California Press, Berkley. Knopper, S, 2009, Appetite for Self-Destruction, Simon and Schuster, London. Liebowitz, S. J 2004: Will MP3 Downloads annihilate the Record Industry? The Evidence so far. Intellectual Property and Entrepreneurship. Advances in the Study of Entrepreneurship, Innovation and Economic Growth 15, 229–260. Litman, J 2001: Digital Copyright, Prometheus Books, Amherst. May, C 2007. The World Intellectual Property Organisation. Resurgence and the Development Agenda. Routledge, London & New York. Negus, K 1999. Music Genres and Corporate Cultures, Routledge, London and New York. Nercessian, A 2002. Postmodernism and Globalisation in Ethnomusicology: An Epistemological Problem. Scarecrow Press, Lanham (MD) & London. Preiser, J & Vogel, A 2002, The Music in the 21st Century, Sreen Digest Limited, London. Rabine, L. W 2002. The Global Circulation of African Fashion. Berg Publishers, Oxford & New York. Richards, H., & Durrant, C 2003, “To sing or not to sing: A study on the development of ‘non-singers’ in choral activity,” Research Studies in Music Education, 20, 78-89. Rudolph, T., & Frankel, J 2009, YouTube in Music Education, Hal Leonard, New York. Sanjek, R & David S 2001: American Popular Music Business in the 20th Century. Oxford University Press, New York/Oxford. Tschmuck, P 2006: Creativity and Innovation in the Music Industry, Dordrecht, Springer. UNESCO 2005. International Flows Of Selected Cultural Goods And Services 1994–2003. UNESCO Institute for Statistics, Montreal. Van Buskirk Elliot. “Sony BMG Will Allow Amazon to Sell Its Music Without DRM” Wired. 10 Jan. 2008 Webb, M 2007, “Music analysis down the (You) tube? Exploring the potential of cross-media listening for the music classroom.” British Journal of Music Education, 24, 147-164. Wikstrom, P, 2009, The Music Industry. Polity, London. Williamson, J & Martin C 2007. “Rethinking the Music Industry”, Popular Music Vol. 26, no. 2, 305–322. Read More