Mock exam - With corrections

Major record labels, do not have full control over the music industry. Although they have successful and global artists, so do indie record labels, and DIY and Prosumers can reach a global audience too. Prosumers now use digital media technology, the internet, to distribute and exchange their music to a global audience. Majors still have some power, specifically with the mainstream audience, but indie labels do as well, reaching a global audience as they do.

Sony record label, are a major record label, whose have a subsidiary label, called Syco founded by Simon Cowell. One direction, were the biggest selling boy band of 2013, winning several awards such as a BRIT award, MTV and BBC teen choice award. This shows that Sony are very successful already, but because of digital media technology, this means that Sony have to now use convergence to keep current in order to get a remain with a global and mainstream audience. One direction use Youtube to Distribute their music, using visualisation through music videos. This allows fans to have a stronger relationship with them because they are able to see them. This is style over substance, because a music video is essential for them in order to keep their young female target audience. Itunes distributes their 'This is us' film, this is more efficient and quick for the audience to purchase this. Syco also have a game online, on a website called cyber punk, a game which is interactive and directed for young girls because of the pink colour scheme. The website says it is a way to show how much you care about One Direction, so this is helping to create a stronger relasionship with One Direction because they can show 'how much they care'. Rewards are also given, such as phone calls and Tweets (Twitter a social media website, digital media technology), this makes fans feel like they know One Direction. The Cyber Punk website is linked to One Directions main website page, where their music is played, the only way to stop this is to mute your computer. This shows they are constantly advertising their music, in order to get people to buy their music, which you can also do on the website along with merchandise, which is free advertisement for them. 

1D also have an app, which features their music another use of distribution. Sony Is horizontally and vertically integrated, which means they are able to do PDE at a lower cost, so they can spend more on digitial media technology to rival with any competition. For example they have can produce more music videos, with unique ways of presenting visulisation. Pharrel Williams recently had produce a 24 hour music video, to distribute. Which could be said it is more style over substance, the idea is very unique, but is it actually worth watching? The X-factor allows Sony and Syco receive exchange, through voting, Sony and Syco can know what song is the best for that act or their dress sense. Sony also uses convergence in other digital media technology, such as radio, allowing them to reach more audiences.

Domino records are the opposite of Sony, because they are an independent label. Although Domino do not make as much money as Sony, because they have a niche target market, they have a global audience, through digital media technology. Similar to Sony, Domino's music is still substance over style. Although they offer an alternative style of music, they are still more about the 'Indie' style than the substance. Domino's biggest  artist signed with them are the Arctic Monkeys, with Hot Chip the second. The Arctic Monkeys dress in dark clothes, with a rock/indie feel to them, which the audience follow who also like this genre of music, which creates a relationship with them because they have similarity.The Arctic Monkeys have a global audience, seen from their Youtube total views at over 143 million. Also they played at the Olympics opening ceremony, which is broadcast through digital media technology (radio and internet) to a global audience. The Arctic Monkey's are played on BBC radio 1 regularly, as are One Direction showing they have a national audience and are as popular on this radio station. They create this large audience,by creating a relationship which is made through distribution through their Youtube, Social media, Domino's website and Domino's youtube channel,which tells the audience what they are doing, dates etc. making them feel involved and important, making their a participatory culture.

Beck is a DIY artist, he is famous from being signed in 1993 to Geffen Records, and major record company who wanted to sign him, Warner Bro records, but he turned them down. This allowed him to have an existing niche audience, so when he unsigned he was able to 'Do it yourself'. He created a website called sing reader, and after that an album, which were song sheets, so his fans who were artists (not just his audience) where able to produce, play and record the song as well as making music videos(using final cut pro, Avid, DaVinci Resolve and premiere pro). This can be done with digital media technology, using garage band, online websites, Soundcloud and other software's/hardware's)  The website also allows these versions to be distributed, and comments can be left (exchange). This blurs together PDE, which creates a stronger relationship with Beck and his fans, because they feel involved if they are the artists, and if fans are commenting they do as well. This also allows music to be multi genre's so it appeals to a larger audience, and the use of digital media technology distributes it to a global audience. Youtube, Twitter, Facebook, Itunes, Spotify and Soundcloud all distributes music, either from Beck himself or the artistic fans.

A prosumer is a consumer of music who also produces in. Madeon is from France, and has a global audience. He creates mash up's, a soundscape of sample taken from songs by signed artists, 'Pop culture' was a mash up he made with 42 songs, taking 2-3 second samples. This mash up was what made him popular, using Youtube, Soundcloud and social media websites, he blurred together PDE, allowing him to reach a global audience. As well as create a strong relationship with his global audience, this is because he was not signed yet, and he was just a consumer himself, yet he had the skills to produce a mash up. Mash up's can be seen as devaluing music, as does style over substance, but I argue that it is not. Because it is free advertising for the original song's record label and artists. But others may see it as removing a meaning of a song, and recycling it into just a sound. 

In conclusion major record labels do not have the most power in the music industry, because of the internet allowing PDE to be blurred together. Majors still do have control over the music industry,because they are vertically and horizontally integrated, but this is only mostly over mainstream audiences so doesn't allow them to have all power. But their relationship is not as strong, because they are the most concerned with style over substance which is wanted by their young target audience, but not by all audiences. With digital media technology, DIY, prosumers and independent labels can now have as large of an audience because they can blur PDE making the processes inexpensive.

Music Industry Exam

Plan:

To what extent does digital distribution affect the marketing and consumption of media products in the media area you have studied?

Digital distribution is the distribution and marketing process done digitally, it has developed vastly in the last 10 years, allowing independent (Domino), prosumers (Madeon) and DIY (Beck) to reach a larger audience. Mostly it has a positive affect, but some negatives for majors (Sony).

Domino Records are an indie record label, located in the UK, they use the internet to distribute some of their music. Traditionally an independent record label have a more niche audience, but with the development and the high level of the consumption of music through the internet, has changed the smaller audience. Allowing independent labels to be very successful, and have a global audience, Domino mostly uses, their own website, and they have their own YouTube channel in which they can advertise and distribute their music. Some of their artists also use Youtube to distribute their music, visulisation of the music videos and the audio, which is manged by web distributors, The Arctic Monkeys do this. The production and exchange also uses digital technology to reach a larger audience, but also to produce the music, at a more cost effective method, because producers etc. do not have to be hired. This blurrs Production, Distribution and Exchange together, which in turn allows the company to have a stronger relationship with the audience. 

Madeon is a prosumer, who became very successful from distributing his mash up 'Pop Culture', digitally. He used digital technology to produce the mash up using FL studio as one of his main software, distributing using Sound Cloud and Youtube and exchanging using Youtube and social media. He blurred the PDE process, making his connection with his global audience, because he is a consumer just like his audience but actually produces, distributes and exchanges his mash up's all by himself. Marketing himself as a prosumer, allowed other prosumers to turn his video to hi audience, into a music video. The current video was him producing the music, which could be argued that visulisation is interesting and unique, but may be directed to a more niche audience. A global audience or mainstream audience like music videos, prosumers made music videos, making a stronger relationship with Madeon. The affect on the consumption and marketing from the hugely popular digital distribution, is positive allowing Madeon to have a large audience, and allowing him to produce professional sounding music. But Mash up's as Madeons, could be considered devaluing music, because the sound scape, are taking second samples from original songs. This means the meaning of those songs is lost, because they are recycled to create a new song. But it is also considered a current unique way of advertising older songs, allowing the global audience of Madeon download those original songs, all the songs are copyrighted, so the rights go to the artists and record labels, either currently or on their back catalog.

Do it yourself, an example being Beck, also uses digital distribution greatly, allowing him to reach a global audience. Beck's book 'Song Reader' is a book of music sheets, used by his fans making the song, and creating visulisation to those songs with music videos. Those fan's commonly use Youtube, because it is so widely available, free advertising and extremely popular therefore a global audience. But this affects Beck positively because he owns all of the rights, so any money made go's to him.

Major labels, have a more of a negative affect. Sony are apart of the 'Big 3' and a conglomerate label, so have a global audience, recently they have used traditional methods, rather than blurring PDE together ,as the other 3 case studies have shown. Now that the internet has developed and become much more used in recent years, these traditional methods of reaching a larger audience, Record stores, Advertising on TV, film, radio and magazines, is no longer a must, allowing indie labels to reach a global audience. This means that Sony now have more and more competition, Arctic Monkeys signed to Domino is as known and successful as Leona Lewis signed to SYCO, the subsidiary label of Sony. The raised competition has not yet affected Sony hugely, but if this continues and independents become vertically and horizontally integrated, Sony may lose profit and artists. Currently with Sony's subsidiary, SYCO they have SYCO TV company, producing X factor allowing Sony to advertise their music on another medium, because they are vertically and horizontally integrated. One Direction have a huge global audience, and are main stream, and are more style over substance. The visulisation, way they look and music videos, are seen as more important than the actual music. 

Overall digital distribution affects the consumption and marketing of music positively, from look at DIY, Prosumer and independent label case studies. But affects Major record labels negatively, but if they do not want to become like EMI who were in the 'Big 4', going against the audience so then being bought because they were not popular anymore, they will have to develop the technology and do with the majority. So in conclusion it is having a positive affect, because it is helping Domino, Beck and Madeon and Sony may not be so in charge of the industry anymore. 

Terminology and case studies list

Spotifty - A website which allows you to buy monthly/yearly, to listen to any music you want. This is a way to distribute music.

Style over Substance - The appearance (one direction), is being seen over the music.

Prosumers - Consumers of music, producing their own music.

Devaluing music - Reducing the value of music, more worthless. Because of illegal downloading, formula music.

Visulisation - What you are seeing, music videos and appearance of musicians. Example Gangnam style, the dance made the song.

Convergence - Viewing music on different mediums, Apps, Internet (Youtube etc.), Radio, TV and film. 

Subsidiary Label - A record label which is owned/has a mother label. Example, SYCO is a subsidiary label to Sony records. Meaning Song has rights to all of SYCO's artists/back catalog.

Conglomerate label - A record label in which own a number of companies. Sony is a conglomerate label.

Synergy - A synergy is when a company own/have another company of a different product. For example SYCO are a record company as well as a TV company, so they can use record on Xfactor, meaning they have the rights so get money when someone downloads.

Exchange - The way the music is exchanged/shared/listened too. TV, Film, Radio, Internet and Apps are all examples. 

Distribution - The way the music is distributed, so how the physical and downloads are sold. Examples are HMV and Itunes.

Production - The way the music is produced, software, studios etc.

Repackaging - When music is repackaged, it is taking the original and changing it. For example on the X factor, Misha B sang would I lie to you, changing it from the original by Charles and Eddie.

Social media (Facebook, Twitter, Myspace etc.) - Social media is used to advertise and Exchange music, it allows record companies to reach a global audience.

SYCO -  A subsidiary label, owned by one of the Big 3, Sony. Founded by Simon Cow, also have a synergy with a TV company, famous for X factor. As well as a Film company, making One Directions film, because they are signed to SYCO.

The Big 3 -  3 major record companies including, Sony, Warner music group and Universal Music group. These are all Conglomerate labels, there used to be The Big 4, including EMI as well.

Sony - A Conglomerate label, apart of the Big 3 the parent of SYCO.

Universal - A conglomerate label and apart of the Big 3.

Multinational Corporation - A corporation that produces and sells products, in/to multiple countries.

Vertical integration - The take over of companies at different sectors of PDE. A&R(talent scouting), CD manufacture, Web distributor, Music tv channel, Venue, etc. are all examples.

Horizontal integration - The take over of companies with the same end product, so they can buy record labels with different genres. 

A&R - Artist and repertoire are the side of the record label, who scout for talent. They are the people who sort through the bad and good, mostly through the internet now.

360 Degree deal - Rather than the traditional contract an artists signs with a record company. The 360 degree deal is a business relationship between the artist and company, the record label agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and touring. The artist agrees to give the company a percentage of all of their income, including sales of recorded music, live performances and any other income.

Soundscape - A collection of sounds.

EMI RIP - EMI were apart of the Big 4 but they tried to fight against illegal downloading so became not popular, being bought out.

Mash Up - Soundscape is used to create a Mash Up, a collection of songs taking a low number of seconds of the song and putting them together to create a new song. Madeon is an example.

Madeon - Madeon is now signed,but how became well known for his Mash Up, Pop Culture, produced with FL studio.

Youtube - Youtube is extremely popular in exchanging music. It is free, and allows a global audience to listen.

Back catalog - The record company owns rights to artists songs, even if they have left they own the songs they produced when they were signed.

Monopoly - One individual owning everything.

Oligopoly - A small group of individuals owning.

Fan Culture/Relationship - Fans of artists who are less known/indie are a niche audience, meaning they have a stronger relationship. Where as a global audience to a band such as One Direction are very committed, buying merchandise etc. But they don't have as strong of a relationship.

Beck score - Beck wrote a book with sheet music allowing fans to become prosumer's and create the music and videos, creating a stronger relationship.

Lesson 5.1

The Process I should answer the past questions in: 

1. Translate the question using terminology.

• Production 
• Distribution & Marketing
• Exchange
• Consumption
• Convergence
• Creating a relationship with the audience
• Cross promotion/synergy
• Vertical & Horizontal Integration
• Subsidiary & Multinational Conglomerate

2. 4 case studies - What 4 relevant Points? (Beck, Sony, Madeon and Domino)

The grid ^

Key Vocabulary:

• Production
• Distribution
• Marketing
• Exchange
• Consumption
• Majors
• DIY
• Indie/Independent
• Ownership
• Back catalogue
• Visualisation
• Synergy
• devaluing music
• Synthetic Vs Organic
• Soundscape
• creating a relationship with the audience
• Participatory 
• Audience
• Niche
• Prosumers
• Mash up
• Convergence
• Conglomerate
• Piracy 
• The big 3

3. Compare the 4 case studies - What arguments/debates to the question.

4. Write your 2 sentence answer/response (Thesis - the introduction, i.e. answer the question)

5. 4 x points using the 4 case studies with key terminology words related to the statement, use your plans to compare them.

45 mins for Music industry questions

5 mins read the question  - Extent/discuss?

Translate the question - use terminology

Then re write the question to what you think it is asking you to argue, What do you think?

5 mins: think prove against your case study

Plan your response using your 4 + grids, with your 4 case studies. Apply the terminology from the question you translated. How does it fit/what does it have to offer?

Write notes into each corner and look for OPPOSITES - contrasting examples that match the question. 

Structure:

Write your introduction - 2 minutes that answers the question - to what extent or discuss the issues. Now write the answer (main body). use grid as your plan.

Match Em Up task:

1. Translate
2. Question
3. Using
4. Terminology
5. Argument/Debate/Agree?
6. point
7. 2 sentences (introduction - Answers the question)
8. Write
9. Answer
10. Explanation/Answers question in full
11. Example
12. Don't
13. In this essay I will...

4 case study notes from class

4 case study's

1. Independent Label - Domino
2. Major Label - Sony, Subsidiary Label (Syco) -One Direction(Visualisation)
3. Prosumer - Madeon, Mashup
4. Beck - Relationship with Fans, Song Book other people mae music to the song and music video

Beck Case Study

Beck Hansen, is an American musician, singer-songwriter. He wrote the book 'Song Reader', a book consisting of sheet music written by Beck. His fans produce the music, to his songs. Which creates a relationship with his fans and himself. Fans create their own music, in different genres. Because he has a relationship with his audience, he is an artist as apposed to a formular singer sich as One Direction who is signed with SYCO records. Beck is not signed, so has more freedom. 

His fans are consumers, because they consume Becks songs and music, yet produce music. To produce their music, is easier now days, because of the development of music. Becks music from fans can be produced using, Garage band, rather than the traditional method a studio. To distribute the music they can use ITunes, Spotify, Sound cloud, Youtube and other social media sites, this is inexpensive and sometimes free. All profits will go to Beck, because he originally created the song. 

The exchange of the songs, is also very assessable. The traditional use of exchange is not used commonly among Becks songs, so radio, TV and film are not used to exchange his music/songs. But social media such as Facebook, Twitter and Myspace are used, as well as other music sharing sites such as youtube and Soundcloud. The visualisation in Beck songs, is the music videos the producers/fans create. The visuals allow becks music to be even more enjoyable, and adds an extra sense, making the music more unique.

Some of the genres in Beck's songs:
Country
Pop
Rock
Indie (Guitar)
Pop/rock




Niche audience create the songs - a group of musicians
App - song Reader 
Beck was signed to an indie record label - 

Case study - Would I lie to You - X Factor

The X Factor is a Talent show owned by Simon Cowlls Subsidiary Record Label, Syco Records. Which is owned by Sony Records, on of the big 4, a major record label. The synergy, allows Syco to receive download revenue from any owned song that is covered on the show.

Would I lie to you, is a song originally by Charles & Eddie a Hit song in 1992. Charles and Eddie are signed to Capitol Records, therefore the song is still owned by Capitol records, in the back catalog. Misha B covered this song on the X factor in the live show. The covered song hit the top 10 real time on Itunes, and continuous to remain in the top 100 that week. Capitol is a subsidiary of EMI, EMI was in the process of being sold. 

Research into One Direction and Syco/Sony:

One direction were originally on Syco's Tv show, The X factor. Three years later, they are extremely popular, without winning the TV show. However Simon Cowl, owner of Syco, signed the band. As Syco is a subsidiary record label, owned by Sony Sony meaning One direction also have a contract with Sony. 

One Direction, are promoted to a target audience of Young woman and Children, meaning they direct all of their music, visualisation (appearance and music videos) to this age group and gender. This formula, is what makes them so popular.

One direction have released a lot of music, while on the X factor their weekly covers were put onto Itunes to be downloaded by the public. Songs that Sony/Syco promote artists, will allow all of the revenue to go to Syco/Sony. X factor uses visualisation, a experience, the live performance attracts a larger audience.

These two case study's link, because they involve the same record labels etc. But they are both in some way gaining revenue. Would I lie to you, covered by Misha B, the download gives both parties revenue.

Case study - A major vs independant

Domino:

Research

Domino Records UK, based in London, is an independent record company, but they are extremely successful. founded in 1993, so they could have become a subsidiary record label, because they do have some successful artists. But they remain a indie record label. Laurence Bell, owns and founded Domino Records, they promote around 57 artists. Becuase Domino is a large independent label, they have all Marketing, Productive, Creative and Legal Departments. 

They do also have a base in New York dealing with US releases etc, but it is not as big or successful as UK base. So they remain independent. Domino Records, also owns Geographic records, so they are a subsidiary Label. The photograph below shows all of their labels etc. Domino have to approach the artists, they do not except Demos due to the high amount they receive. Domino do not have a famous nightclub attached, or their own recording studio. Making them vertically integrated. The company does not produce any merchandise, which lowers profit, but some of the artists do.

Domino promote many artists, which is similar to major labels. Some of the artists they promote are, Arctic Moneys, Hot Chip, Alex Turner, Anna Calvi and many more. Some of their artists are really well known, Arctic Moneys for example are hugely successful, but others are new up and coming artists, domino's A&R scout.

With new technology, it has made is easier for record company's to produce, distribute and exchange music. It is know easier for top quality music to be produced, so artists can be seen/scouted by company's such as Domino. Or A&R and the record label, can use the internet to find new artists, using social media sites such as Facebook, Youtube and Soundcloud. Allowing Domino to have a larger and talented artists signed with them. 

Distributing music is now easier for Domino, because they can distribute to more places than just a record store. They can use Itunes and Spotify, therefore the music can be heard by more people by different means. But CD's are becoming less and less popular, they are still sold in HMV which has recently gone bust but is now back(showing physical copy's are not as popular), meaning the physical copy, is not being bought. Which is a negative for record labels, but with the development of the internet, social media (Facebook, Twitter, Youtube and Instagram), as well as website selling the music Itunes, and Sportify.

The exchange of music is also easier, because of the internet as well, artists can be scouted by the A&R. But this also means that artists may not need record labels, because of the internet becoming a negative. But artists can be made popular quickly, because A&R will filter through all artists finding the best.

Domino Records, are on BBC radio 1's playlist, but not as regularly as other record labels, especially major record labels. As you can see at the photograph bellow, only 33 songs have had radio time, Hot Chip and Arctic Monkeys have the most, being more popular.

Radio stations, along with TV programs, video games and films, exchange music. Artic Moneys were on video game, Guitar Hero, which exchanges their music, and the artists and record label receive royalties for this. Some of the radio stations that play Domino's artists are BBC Radio 1, BBC Radio 2, BBC Radio 6, Cool FM, Kerrang!, Absolute and Nation Radio. BBC television programs play and promote Domino's artists, which is a very large audience exchanging music to a large audience. Smaller channels include Vevo, and their own channels including Domino Publishing and Domino All-in.

Youtube live streams Domino Music, exchanging their music to a very large audience. Domino also streams their own music again, showing they use new technologies to advance their music. 

Arctic Monkeys:

Arctic Moneys were formed in 2002, In the last month BBC Radio 1 has played Arctic Monkeys 65 times, and Absolute radio 00's has played them 112 times. This shows without any new songs or albums, they still remain popular. On Itunes the Arctic Monkey's have had over six million downloads.

Hot Chip:

Hot chip were formed in 2000, already I can see a trend, both of the most popular acts were formed earlier on. In the last month, only 5 radio stations have played Hot Chip songs, the most being 18 plays on 106.8 TCR FM. This shows they are not as popular. 

I myself really like the Arctic Monkeys, So they would have a higher play on my Itunes long tail, more than Ho Chip. I do not know much about Hot Chip as they are not as popular. I like Domino because it is more my genre of my music. 

Arctic Monkeys have 723,000 subscribers on their own Youtube Channel. Their views on individual videos is much more higher. This shows they have a high internet viewing, showing they are up to date with current technology's, advancing their popularity. Hot Chip have not got a Youtube Channel, showing they have less popularity, and have lost a chance to have a larger audience. I could only Subscribe to Arctic Monkeys, but with visuals as well as music, is more enjoyable making a artist more popular.

Artists that Domino promote, have been in some music festivals. But it does depend on the bands popularity. The Arctic Monkeys have been involved Reading Festival and others. Domino supply's artists fore festivals such as Leeds festival, Reading festival, Glastonbury Festival, Summer sonic festival and a lot more. Domino has it's own Youtube Channel, allowing them to promote their artists, and educate audiences about their company.

Some keywords with meanings

A&R (Artists and repertoire) - People in the music industry, who's paid roles are to find new artists.

Royalties - A sum of money given to the artists and label, when their song is played, on TV, film or Radio.

Subsidiary label - Sometimes they start as an independent label, but a major record label supports them/backs them up. An example is Syco Records now supported/owned by Sony. 

Peer to peer - The sharing of music, between peer to peer. Similar ages etc.

sampling - Somebody uses a sample of someones music, and embeds it into their music legally.

Copyright - When someone copyrights their song/album, meaning they are the owner. If someone samples that work, and receives money for it etc, they are doing it illegally.

Music Piracy

Institutions sell their products to audiences in contemporary media by advertising on Youtube and other social media sites, advertising on TV specifically target market channels, for example young adults MTV and by posters in locations where the target market go, for example young adults shopping centres.


Music industry revenue system:

• Radio advertising revenue 
• Live music sector
• Music Retail store
• Licensing of music third parties

95% of music downloads are unauthorised. - Illegal

71% of users increasing their illicit downloads cite high prices as the reason.

84% of illicit downloaders think artists deserve to be paid.

The solution is lower song prices and raise the artists compensation transparency.

The effect of piracy:

The music industry is still losing out to internet pirates on a huge scale, an estimated 95% of music available online is being downloaded illegally. The music industry is ''transforming'' its business models, turning to marketing ideas such as Radiohead's ''pay what you like'' album in Rainbows and Coldplay's move to give away tracks to promote their album. In the UK market alone, the record industry lost £180m 2 years ago.

Quote by Alan Rusbridger, editor-in-cheif of The Guardian- ''It's a trend...about a new democracy of ideas and information, about changing notions of authority, about the releasing of individual creativity''

So these new ideas and information about authority and artists releasing creative music without higher authority telling them what to do, is a new trend, ie more and more artist are doing this, taking control.

Case Study

Beyonce - Illegal album downloads cost Beyonce $3.8 million/£2.53 million in sales revenue.

Showing that it does effect the artist, meaning they have to do more concerts to make more of a profit.

Independent swim upstream:

As streaming services increases their share of the overall market, their royalty payments have come under scrutiny from artists and record labels.

Spotify said it paid out about $500 million in royalties in 2013, according to numbers it released in december. The company likes to focus on that big number instead of how it breaks down: .6 to .84 cents every time a song is played. It doesn't pay a set amount per stream, but uses a more complicated formula based what percentage of Spotofy's total monthly streams an artist represents.

The company cites a example of a ''global hit album'' earning $425,000 in a month, but thats for a top seller. A mid-level artist could do tens of thousands of streams in a month and maybe see a few hundred bucks for it. Mulligan's report notes that some independent artists do crack that 1%, but it's not easy.

No danger for major labels: 

The numbers tell different stories here: the rise of streaming and increase in total artist income sound like music to muscians' ears. But they're not in the 1%, they may be singing the blues the next time they open their royalty checks.

On the other hand, the major labels, Universal music group, Sony and Warner music group, don't appear to be in danger of losing their market share as downloads decrease and more users turn to streaming.

Writing Tasks:

How do institutions sell their products to audiences in contemporary media?

Traditional sales, such as physical copy's being sold in HMV, of a music product have decreased in popularity, since the development of technology, the internet. Audiences do not buy music as much as they used to, but they illegally download it. Digital copy's, such as itunes, are more popular than physical copy's of music. But some people illegally download, therefor the artists do not get the money, nor do the record label. 

EMI in the past, decided to take music pirates to court, which audiences felt negatively towards. Causing EMI to fall out of the major record labels, audiences have a lot of control within the music industry. Whereas companys such as Sony, took a much more laid back approach. Using tours, reducing costs, merchandise and other forms of products, to create a profit. 

Streaming services, such as Spotify, costs a monthly fee to listen to music whenever you want. This is a convenient way to have ownership of music, at a low cost. They pay royalties to the artist/record label, every time a song is played. This is contemporary may of selling a product. 

Domino are an independent record label, based in the UK. Domino does not think piracy is a huge problem, but they have protection in place and do take it seriously. They combat piracy by finding alternatives in selling the product, rather than taking extreme action, which could put them into the place were EMI are.

Prosumers

Prosumers are consumers of music (not professionals), who are involved in the production of music. People who are between a consumer and a professional.


Madeon - Pop culture - Live mashup

This video was made in 2011, and has currently got 23,193,670 views.

Madeon, chose 39 songs, to mash up.

He used the programmers/technology above to create this mash up. He shared his mash up on Youtube, allows it to reach a multi national audience.

In July, 2011, Hugo Pierre Leclercq, known as Madeon, from France, made a mash up, and posted it to Youtube. The incredible response gained from Youtube, allowed him to at the age of 16 to be a multi national prosumer. He also uses Facebook, Soundcloud and Twitter as wel, to promote his mashup. His audience are from all over the world, finding his through social media, fans of all of the songs he has included in his mash up, also are included in his fan base.


Music videos have also been made, in combination with Madeon's mashup. This visualisation, to the song, makes it even more enjoyable, and appeal to society now days. 



The internet has changed music for prosumers, because it allows more of an audience, a larger audience for prosumers. A change, freedom and creativity for the audience, of them having such creative music (soundscapes). If the music indsutry don't invest in newer samples of music, they will become less and less popular.

Examples - Case Studys

Record labels:

Pop label - Syco

Hip hop label - Death Jam

Indie (independent) label - Domino, excel

Dance label - Ministry of sound


The big three record labels (major):

Sony
Universal
Time Warner
(used t be EMI, but they tried to send people illegally downloading to court = unpopular)

Sony owns syco Records, which is owned by Simon Cowl. Syco owns The X factor, Sony + Syco songs sung. Which then the audience download those songs, which gives Syco and Sony money.


Independent record companies - give artists creative freedom, and a larger percentage of profit. Independent usually reach a national audience, using the internet to advertise their music. Soundcloud, Youtube, Faceook, etc. Usually just vertical integration, because they have less money.


Major record companies - The company has more control, and take more of the profit. Only letting artists, put out music, which will sell. Major, reach a multi national audience, meaning they can make an artist popular quickly. Usually vertically and horizontally integrated, meaning they get to use a studio fr example cheaper, because they own it/part own it.

Piracy costs record companies a lot of money, EMI took people to court taking the wrong approach. Other labels use other means of making money, concerts, merchandise etc. Artists get lose the money, meaning they cannot take risks.

Sony films have their music on their films. 


Online music has changed the PDE for institutions, because it allows independent record labels, to promote their music for free, making them reach a larger audience and be successful. But this creates more competition for major labels, but allows them to look for new artists on social media. But we can do this ourselves, allowing artists to either sign with an indie record label or not sign at all.

Key words

Synergy - When a record label also produced tv shows, etc. Example Syco record and The X factor.

Vertical integration - Involved/control in all parts, production, exchange and distribution.

Horizontal integration - Own/involved/control, in more than one sector of a record label, as well as PDE, own studio, night clubs, etc, different types.

Monopoly - One person owns everything.

Oligopoly - Few people own everything.

Independent and Major record labels

The change in the music industry - Digital Downloads

Digital downloads, are when you download songs/albums digitally. This is said to be a negative event to happen in the music industry. Legal download is good for the music industry, letting the music industry advertise in new ways. But illegal has become a problem, free music for individuals, is seeing a decline in the profit the music industry takes.

10 years ago the internet was not around, so people would have to go to the music shop to get their music. But now it is so easy to get, and easier for people to download music illegally. 

This demise of the music article:
http://www.theguardian.com/technology/blog/2010/mar/12/demise-music-industry-facts


This article explains how the music industry are against illegal downloads, saying that ''illegal downloads are destroying our livelihood''. But as the writer says, the music industry were the greatest success story of the recession, meaning that the music industry are not struggling as much and they seem they are, through illegal downloads. In the article it states that gigs are still bringing in a large profit, due to people wanting to experience the music rather than just listen. The writer is also against illegal downloading, making him/her less relatable to most of the public. They state that the music industry allow this, because it generates the want to go to gigs, generating profit through that way. I think this is a valid point, if they cant stop illegal downloading, they might as well follow it and generate profit through over means.

Parental Interview

How has the music industry changed, since you were a child?

There is a lot of access to music now, it is easier to buy music, you don't just have to go to the music shop anymore. If we couldn't get to a record shop, you would tape the radio which was illegal so it is similar in that sense now. But we didn't have digital downloads, because we didn't have the internet.

Do you prefer CD's or Digital download?

Digital music, because it is easier to access.

What do you think of physical music?

I don't use cd's now, like I did before, because it is just as easy to download music. And it takes more space to store Cd's, whereas you can just keep music n your phone.

How did you collect your music?

I used to go and buy records from Woolworths.

What do you think of HMV? Does it have a future?

No I don't think it has a future, I would be surprised. But I think it would have to change, and sell more electrical products, and compete with other prices on the market. I think it is good for things like games, but for music it is as easy to download it from Itunes. 

Distribution, Production and Exchange

My Music habits