The Music Industry

Research- Music industry:

• ·         The big three (music labels) – Sony, Universal and Warner.
• ·         The major labels own and are made up of subsidiary labels.
• ·         The big three own the smaller recording labels to maximise audience through niche and mainstream tastes.
• ·         2012= 74% of digital and physical music sales globally done by the big three.
• ·         Therefore operate in an oligopoly.
• ·         Independent music companies operate outside of the majors and usually focus on one genre of music (niche).
• ·         Domino and XL are independent music companies, recording artist such as, Franz Ferdinand, Arctic Monkeys and Adele.

Horizontal integration (Sony Music)                                       

Independent Companies

Vertical integration (Sony Music)