HOME

TheInfoList




The music industry consists of the individuals and organizations that earn money by
writing Writing is a medium of human communication Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area arou ...
song A song is a musical composition Musical composition can refer to an piece or work of , either or , the of a musical piece or to the process of creating or writing a new piece of music. People who create new compositions are called s ...

song
s and
musical composition Musical composition can refer to an Originality, original piece or work of music, either Human voice, vocal or Musical instrument, instrumental, the musical form, structure of a musical piece or to the process of creating or writing a new pie ...
s, creating and selling
recorded music Sound recording and reproduction is an electrical Electricity is the set of physical phenomena associated with the presence and motion Image:Leaving Yongsan Station.jpg, 300px, Motion involves a change in position In physics, motion ...
and
sheet music Sheet music is a handwritten or printed form of musical notation Music notation or musical notation is any system used to visually represent aurally perceived music played with instrument (music), instruments or singing, sung by the hum ...

sheet music
, presenting
concerts A concert is a live music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as (which governs and ), ( ...

concerts
, as well as the organizations that aid, train, represent and supply
music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as (which governs and ), (and its associated concepts , , and ...

music
creators. Among the many individuals and organizations that operate in the industry are: the
songwriter A songwriter is a who professionally composes s and writes for s. A songwriter can also be called a , although the latter term tends to be used mainly for individuals from the genre and film scoring, but is also associated writing and composi ...

songwriter
s and
composer A composer (Latin wikt:compono, ''compōnō''; literally "one who puts together") is a person who writes musical composition, music, especially classical music in any form, including vocal music (for a Singing, singer or choir), instrumental mus ...

composer
s who write songs and musical compositions; the
singer Singing is the act of producing musical sounds with the voice. A person who sings is called a singer or vocalist (in jazz and popular music). Singers perform music (arias, recitatives, songs, etc.) that can be sung accompaniment, with or a capp ...

singer
s,
musician A musician is a person who Composer, composes, Conducting, conducts, or Performing arts, performs music. According to the United States Employment Service, "musician" is a general Terminology, term used to designate one who follows music as a pr ...

musician
s,
conductors Conductor or conduction may refer to: Music * Conductor (music), a person who leads a musical ensemble like, for example, an orchestra. * Conductor (album), ''Conductor'' (album), an album by indie rock band The Comas * Conduction, a type of ...

conductors
, and
bandleader A bandleader is the leader of a music group such as a rock or pop band or jazz quartet. The term is most commonly used with a group that plays popular music as a small combo or a big band, such as one which plays jazz Jazz is a music genre ...
s who perform the music; the
record label A record label, or record company, is a brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and ad ...
s, music publishers, recording studios, music producers,
audio engineer An audio engineer (also known as a sound engineer or recording engineer) helps to produce a sound recording, recording or a live performance, balancing and adjusting sound sources using equalization (audio), equalization, Dynamic range compressi ...
s, retail and digital music stores, and
performance rights organization A performance rights organisation (PRO), also known as a performing rights society, provides intermediary functions, particularly collection of royalties A royalty is a payment made by one party to another that owns a particular asset, for the ...
s who create and sell recorded music and sheet music; and the booking agents, promoters,
music venue A music venue is any location used for a concert or musical performance. Music venues range in size and location, from a small coffeehouse 200px, Coffeehouse in San Francisco A coffeehouse, coffee shop, or café is an establishment th ...
s,
road crew The road crew (or roadies) are the technician A technician is a worker in a field of technology who is proficient in the relevant skill and technique, with a relatively practical understanding of the theoretical principles. Specialisation T ...
, and audio engineers who help organize and sell concerts. The industry also includes a range of professionals who assist singers and musicians with their music careers. These include,
talent manager An artist manager (also known as an talent manager, band manager or music manager) is an individual who guides the professional career of artists An artist is a person engaged in an activity related to creating art, practicing the arts, or dem ...
s,
artists and repertoire Artists and repertoire (colloquial Colloquialism or colloquial language is the style (sociolinguistics), linguistic style used for casual (informal) communication. It is the most common functional style of speech, the idiom normally employed in ...
managers,
business manager Business is the activity of making one's living or making money by producing or buying and selling Product (business), products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a busi ...
s,
entertainment lawEntertainment law, also referred to as media law, is legal services provided to the entertainment industry Entertainment is a form of activity that holds the attention and Interest (emotion), interest of an audience or gives pleasure and delig ...
yers; those who broadcast audio or video music content (
satellite alt=, A full-size model of the Earth observation satellite ERS 2 ">ERS_2.html" ;"title="Earth observation satellite ERS 2">Earth observation satellite ERS 2 In the context of spaceflight, a satellite is an object that has been intentionally ...
, Internet radio stations,
broadcast radio , Sweden , Norway Radio broadcasting is transmission of audio signal, audio (sound), sometimes with related metadata Metadata is " data" that provides information about other data". In other words, it is "data about data". Many distinct type ...
and
TV stations A television channel is a Channel (broadcasting), terrestrial frequency or virtual number over which a television station or television network is distributed. For example, in North America, "channel 2" refers to the terrestrial or cable band ...

TV stations
);
music journalist Music journalism (or music criticism) is media criticism and reporting about music topics, including popular music, classical music, and traditional music. Journalists began writing about music in the eighteenth century, providing commentary on wha ...
s and
music critic ''The Oxford Companion to Music'' defines music criticism as "the intellectual activity of formulating judgments on the value and degree of excellence of individual works of music, or whole groups or genres". In this sense, it is a branch of music ...
s;
DJ
DJ
s; music educators and teachers;
musical instrument A musical instrument is a device created or adapted to make musical sounds. In principle, any object that produces sound can be considered a musical instrument—it is through purpose that the object becomes a musical instrument. A person who play ...
manufacturers; as well as many others. In addition to the businesses and artists there are organizations that also play an important role, including musician's unions (e.g.
American Federation of Musicians The American Federation of Musicians of the United States and Canada (AFM/AFofM) is a 501(c)(5) A 501(c) organization is a nonprofit organization A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organizat ...
), not-for-profit performance-rights organizations (e.g.
American Society of Composers, Authors and Publishers The American Society of Composers, Authors and Publishers (ASCAP) () is an American not-for-profit performance-rights organization (PRO) that protects its members' musical copyright Copyright is a type of intellectual property that gives ...
) and other associations (e.g.
International Alliance for Women in Music The International Alliance for Women in Music (IAWM) is an international membership organization A membership organization is any organization that allows people to subscribe, and often requires them to pay a membership fee or "subscription". Member ...
, a non-profit organization that advocates for women composers and musicians). The modern Western music industry emerged between the 1930s and 1950s, when
records A record, recording or records may refer to: An item or collection of data Computing * Record (computer science) In computer science Computer science deals with the theoretical foundations of information, algorithms and the architectures ...
replaced
sheet music Sheet music is a handwritten or printed form of musical notation Music notation or musical notation is any system used to visually represent aurally perceived music played with instrument (music), instruments or singing, sung by the hum ...

sheet music
as the most important product in the music business. In the commercial world, "the recording industry"—a reference to
recording performances of songs and pieces
recording performances of songs and pieces
and selling the recordings–began to be used as a loose synonym for "the music industry". In the 2000s, a majority of the music market is controlled by three major corporate labels: the French-owned
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational Music industry, music corporation. UMG's corporate headquarters are located in Hilversum, Netherlands and its op ...
, the Japanese-owned
Sony Music Entertainment Sony Music Entertainment (SME), also known as just Sony Music, is an American multinational Music industry, music company. Owned by the parent conglomerate (company), conglomerate Sony, Sony Group Corporation, it is part of the Sony Music Group ...
,Sony Corporation announced October 1, 2008 that it had completed the acquisition of Bertelsmann's 50% stake in Sony BMG, which was originally announced on August 5, 2008. Ref: and the US-owned
Warner Music Group Warner Music Group Corp. (commonly abbreviated as WMG and simply referred to as Warner Music) is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Mult ...
. Labels outside of these three major labels are referred to as
independent label An independent record label (or indie label) is a record label that operates without the funding of major record labels; they are a type of small and medium-sized enterprise, small to medium-sized enterprise, or SME. The labels and artists are o ...
s (or "indies"). The largest portion of the live music market for concerts and tours is controlled by
Live Nation Live Nation Entertainment, Inc. is an American global Entertainment industry, entertainment company that was founded in 2010 following the Mergers and acquisitions, merger of Live Nation (events promoter), Live Nation and Ticketmaster. The compan ...
, the largest promoter and
music venue A music venue is any location used for a concert or musical performance. Music venues range in size and location, from a small coffeehouse 200px, Coffeehouse in San Francisco A coffeehouse, coffee shop, or café is an establishment th ...
owner.
Live Nation Live Nation Entertainment, Inc. is an American global Entertainment industry, entertainment company that was founded in 2010 following the Mergers and acquisitions, merger of Live Nation (events promoter), Live Nation and Ticketmaster. The compan ...
is a former subsidiary of iHeartMedia Inc, which is the largest owner of radio stations in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
. In the first decades of the 2000s, the music industry underwent drastic changes with the advent of widespread digital distribution of music via the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a ''internetworking, network of networks'' that consist ...

Internet
(which includes both illegal
file sharing File sharing is the practice of distributing or providing access to digital media Digital media means any media (communication), communication media that operate with the use of any of various encoded machine-readable data formats. Digital me ...
of songs and legal music purchases in
online music store A digital music store is a business that sells digital audio files of music recordings over the Internet The Internet (Capitalization of Internet, or internet) is the global system of interconnected computer networks that uses the I ...
s). A conspicuous indicator of these changes is total music sales: since 2000, sales of recorded music have dropped off substantially while
live music A concert is a live music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as (which governs and ), ( ...

live music
has increased in importance. In 2011, the largest recorded music retailer in the world was now a digital,
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a ''internetworking, network of networks'' that consist ...

Internet
-based platform operated by a computer company:
Apple Inc. Apple Inc. is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, ...
's online
iTunes Store The iTunes Store is a software-based online digital media Digital media means any media (communication), communication media that operate with the use of any of various encoded machine-readable data formats. Digital media can be created, v ...

iTunes Store
. Since 2011, the Music Industry has seen consistent sales growth with streaming now generating more revenue per annum than digital downloads.
Spotify Spotify (Help:IPA/English, /ˈspɒtɪfaɪ/; Swedish: Help:IPA/Swedish, spɔ̂tːɪfaj, is a Sweden, Swedish Streaming media, audio streaming and media services provider, founded in 2006 by Daniel Ek. Spotify is incorporated in Luxembourg a ...

Spotify
,
Apple Music Apple Music is a music and video streaming Streaming media is multimedia Multimedia is a form of communication that combines different content forms such as text, audio, images, animations, or video into a single presentation, in con ...
, and
Amazon Music Amazon Music (previously Amazon MP3) is a music streaming Streaming media is multimedia Multimedia is a form of communication that combines different content forms such as text, audio, images, animations, or video into a single presen ...
are the largest streaming services by subscriber count.


Business structure

The main branches of the music industry are the
live music A concert is a live music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as (which governs and ), ( ...

live music
industry, the recording industry, and all the companies that train, support, supply and represent musicians. The recording industry produces three separate products: compositions (songs, pieces, lyrics),
recordings A record, recording or records may refer to: An item or collection of data Computing * Record (computer science), a data structure ** Record, or row (database), a set of fields in a database related to one entity ** Boot sector or boot record, rec ...
(audio and video) and
media Media may refer to: Physical means Communication * Media (communication) In mass communication, media are the communication Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, It ...
(such as
CDs The compact disc (CD) is a digital Digital usually refers to something using digits, particularly binary digits. Technology and computing Hardware *Digital electronics Digital electronics is a field of electronics Electronics compri ...

CDs
or
MP3 MP3 (formally MPEG-1 Audio Layer III or MPEG-2 Audio Layer III) is a coding format for digital audio Digital audio is a representation of sound recorded in, or converted into, Digital signal (signal processing), digital form. In digital a ...

MP3
s, and
DVD The DVD (common abbreviation for Digital Video Disc or Digital Versatile Disc) is a digital Digital usually refers to something using digits, particularly binary digits. Technology and computing Hardware *Digital electronics Digital elect ...

DVD
s). These are each a type of
property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
: typically, compositions are owned by composers, recordings by record companies, and media by consumers. There may be many recordings of a single composition and a single recording will typically be distributed via many media. For example, the song "
My Way "My Way" is a song popularized in 1969 by Frank Sinatra set to the music of the French song "Comme d'habitude" composed and written by French songwriters Claude François and Jacques Revaux and first performed in 1967 by Claude François. Its En ...
" is owned by its composers,
Paul Anka Paul Albert Anka (born July 30, 1941) is a Canadian singer, songwriter, and actor. He became famous with hit songs including " Diana", " Lonely Boy", "Put Your Head on My Shoulder "Put Your Head on My Shoulder" is a song written by Canadian ...
and Claude François,
Frank Sinatra Francis Albert Sinatra (; December 12, 1915 – May 14, 1998) was an American singer and actor who is generally viewed as one of the greatest musical artists of the 20th century. He is one of the best-selling music artists of all time, hav ...

Frank Sinatra
's recording of "My Way" is owned by
Capitol Records Capitol Records (legal name: Capitol Records, LLC, until 2007 Capitol Records Inc.) is an American record label owned by Universal Music Group through its Capitol Music Group imprint. It was founded as the first west coast–based record label o ...

Capitol Records
,
Sid Vicious Simon John Ritchie (10 May 1957 – 2 February 1979), known professionally as Sid Vicious, was an English musician best known as the bassist for the punk rock Punk rock (or simply punk) is a music genre A music genre is a conventional ...

Sid Vicious
's recording of "My Way" is owned by
Virgin Records Virgin Records is a record label A record label, or record company, is a brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands a ...
, and the millions of CDs and vinyl records that can play these recordings are owned by millions of individual consumers.


Compositions

Song A song is a musical composition Musical composition can refer to an piece or work of , either or , the of a musical piece or to the process of creating or writing a new piece of music. People who create new compositions are called s ...

Song
s, instrumental pieces and other musical compositions are created by
songwriter A songwriter is a who professionally composes s and writes for s. A songwriter can also be called a , although the latter term tends to be used mainly for individuals from the genre and film scoring, but is also associated writing and composi ...

songwriter
s or
composer A composer (Latin wikt:compono, ''compōnō''; literally "one who puts together") is a person who writes musical composition, music, especially classical music in any form, including vocal music (for a Singing, singer or choir), instrumental mus ...

composer
s and are originally owned by the composer, although they may be sold or the rights may be otherwise assigned. For example, in the case of
work for hireIn the copyright Copyright is a type of intellectual property that gives its owner the exclusive right to copy and distribute a creative work, usually for a limited time. The creative work may be in a literary, artistic, educational, or musica ...
, the composition is owned immediately by another party. Traditionally, the copyright owner
licenses A license (American English) or licence (British English) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party to another party as an element of ...
or "assigns" some of their rights to publishing companies, by means of a
publishing contractA publishing contract is a legal contract A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is legally enforceable because it meets the ...
. The publishing company (or a collection society operating on behalf of many such publishers, songwriters and composers) collects fees (known as " publishing royalties") when the composition is used. A portion of the royalties are paid by the publishing company to the copyright owner, depending on the terms of the contract.
Sheet music Sheet music is a handwritten or printed form of musical notation Music notation or musical notation is any system used to visually represent aurally perceived music played with instrument (music), instruments or singing, sung by the hum ...

Sheet music
provides an income stream that is paid exclusively to the composers and their publishing company. Typically (although not universally), the publishing company will provide the owner with an advance against future earnings when the publishing contract is signed. A publishing company will also promote the compositions, such as by acquiring song "placements" on
television Television, sometimes shortened to TV or telly, is a telecommunication Telecommunication is the transmission of information by various types of technologies over wire A wire is a single usually cylindrical A cylinder (from Gre ...

television
or in
film A film, also called a movie, motion picture or moving picture, is a work of visual art The visual arts are art forms such as painting Painting is the practice of applying paint Paint is any pigmented liquid, liquefiable, ...

film
s.


Recordings

Recordings are created by
recording artist A musician is a person who composes, conducts, or performs music. According to the United States Employment Service The United States Employment Service (USES) is an agency of the federal government of the United States The federal go ...
s, which includes
singer Singing is the act of producing musical sounds with the voice. A person who sings is called a singer or vocalist (in jazz and popular music). Singers perform music (arias, recitatives, songs, etc.) that can be sung accompaniment, with or a capp ...

singer
s,
musician A musician is a person who Composer, composes, Conducting, conducts, or Performing arts, performs music. According to the United States Employment Service, "musician" is a general Terminology, term used to designate one who follows music as a pr ...

musician
s (including
session musician Session musicians, studio musicians, or backing musicians are musicians hired to perform in recording sessionThe term studio recording means any recording A record, recording or records may refer to: An item or collection of data Computing ...
s) and
musical ensemble A musical ensemble, also known as a music group or musical group, is a group of people who perform instrumental An instrumental is a recording normally without any vocals, although it might include some inarticulate vocal The human vo ...
s (e.g.
backing band A backup band or backing band is a musical ensemble A musical ensemble, also known as a music group or musical group, is a group of people who perform instrumental An instrumental is a recording normally without any vocals, although it mi ...
s,
rhythm section A rhythm section is a group of musicians within a music ensemble or band (music), band that provides the underlying rhythm, harmony and Pulse (music), pulse of the accompaniment, providing a rhythmic and harmonic reference and "beat" for the rest ...
s,
orchestra An orchestra (; ) is a large instrumental ensemble typical of classical music Classical music generally refers to the formal musical tradition of the Western world The Western world, also known as the West, refers to various ...

orchestra
s, etc.) usually with the assistance and guidance from
record producer A record producer is a recording project's creative and technical leader, commanding studio time and coaching artists, and in popular genres typically creates the song's very sound and structure.Virgil Moorefield"Introduction" ''The Producer as ...
s and
audio engineer An audio engineer (also known as a sound engineer or recording engineer) helps to produce a sound recording, recording or a live performance, balancing and adjusting sound sources using equalization (audio), equalization, Dynamic range compressi ...
s. They were traditionally made in
recording studio A recording studio is a specialized facility for Sound recording and reproduction, sound recording, Audio mixing (recorded music), mixing, and audio production of instrumental or vocal musical performances, spoken words, and other sounds. T ...

recording studio
s (which are rented for a daily or hourly rate) in a
recording session The term studio recording means any Sound recording and reproduction, recording made in a Recording studio, studio, as opposed to a live music, live recording, which is usually made in a concert venue or a theatre, with an audience attending the pe ...
. In the 21st century, advances in digital recording technology have allowed many producers and artists to create "
home studioHome recording is the practice of recording sound in a private home instead of a professional recording studio. A studio set up for home recording is called a home studio or project studio. Home recording is widely practiced by voice actors, narrat ...

home studio
s" using high-end computers and digital recording programs like
Pro Tools Pro Tools is a digital audio workstation (DAW) developed and released by Avid Technology (formerly Avid Audio, Digidesign) for Microsoft Windows and OS X, macOS. It is used for music creation and production, sound for picture (sound design, aud ...
, bypassing the traditional role of the commercial recording studio. The
record producer A record producer is a recording project's creative and technical leader, commanding studio time and coaching artists, and in popular genres typically creates the song's very sound and structure.Virgil Moorefield"Introduction" ''The Producer as ...
oversees all aspects of the recording, making many of the logistic, financial and artistic decisions in cooperation with the artists. The record producer has a range of different responsibilities including choosing material and/or working with the composers, hiring session musicians, helping to
arrange Arrange is a myth Myth is a folklore genre consisting of narratives that play a fundamental role in a society, such as foundational tales or origin myths. The main characters in myths are usually gods, demigods, or supernatural humans.Jacque ...
the songs, overseeing the musician performances, and directing the audio engineer during recording and mixing to get the best sound.
Audio engineer An audio engineer (also known as a sound engineer or recording engineer) helps to produce a sound recording, recording or a live performance, balancing and adjusting sound sources using equalization (audio), equalization, Dynamic range compressi ...
s (including
recording A record, recording or records may refer to: An item or collection of data Computing * Record (computer science), a data structure ** Record, or row (database), a set of fields in a database related to one entity ** Boot sector or boot record, rec ...
, mixing and
mastering engineer A mastering engineer is a person skilled in the practice of taking audio (typically musical content) that has been previously mixed in either the analog or digital domain as mono, stereo STEREO (Solar Terrestrial Relations Observatory) is a S ...
s) are responsible for ensuring good audio quality during the recording. They select and set up microphones and use
effects unit An effects unit or effects pedal is an electronic device that alters the sound of a musical instrument A musical instrument is a device created or adapted to make Music, musical sounds. In principle, any object that produces sound can be cons ...
s and
mixing console In sound recording and reproduction Sound recording and reproduction is an electrical Electricity is the set of physical phenomena associated with the presence and motion Image:Leaving Yongsan Station.jpg, 300px, Motion invol ...

mixing console
s to adjust the sound and level of the music. A recording session may also require the services of an
arranger In music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as (which governs and ), (and its associated c ...
,
orchestrator Orchestration is the study or practice of writing music Music is the of arranging s in time through the of melody, harmony, rhythm, and timbre. It is one of the aspects of all human societies. General include common elements such as ...
,
studio musician Session musicians, studio musicians, or backing musicians are musicians hired to perform in recording sessions or live performances. The term sideman is also used in the case of live performances. Session musicians are usually not permanent mem ...
s,
session musician Session musicians, studio musicians, or backing musicians are musicians hired to perform in recording sessionThe term studio recording means any recording A record, recording or records may refer to: An item or collection of data Computing ...
s,
vocal coach A vocal coach, also known as a voice coach (though this term often applies to those working with speech and communication rather than singing), is a music teacher, usually a piano accompanist, who helps singers prepare for a performance, often als ...
es, or even a discreetly-hired ghostwriter to help with the lyrics or songwriting. Recordings are (traditionally) owned by record companies. Some artists own their own record companies (e.g.
Ani DiFranco Angela Maria "Ani" DiFranco (; born September 23, 1970) is an American singer-songwriter. She has released more than 20 albums. DiFranco's music has been classified as folk rock Folk rock is a hybrid music genre combining elements of folk ...
). A
recording contractA recording contract (commonly called a record contract or record deal) is a legal agreement between a record label and a recording artist (or group), where the artist makes a record (or series of records) for the label to sell and promote. Artists ...
specifies the business relationship between a recording artist and the record company. In a traditional contract, the company provides an advance to the artist who agrees to make a recording that will be owned by the company. The
A&R Artists and repertoire (colloquially abbreviated to A&R) is the division of a record label or music publishing company that is responsible for talent scouting and overseeing the artistic development of recording artists (singers, instrumentalists ...
department of a record company is responsible for finding new talent and overseeing the recording process. The company pays for the recording costs and the cost of promoting and
marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of adv ...

marketing
the record. For physical media (such as
CDs The compact disc (CD) is a digital Digital usually refers to something using digits, particularly binary digits. Technology and computing Hardware *Digital electronics Digital electronics is a field of electronics Electronics compri ...

CDs
), the company also pays to
manufacture Manufacturing is the production of goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Co ...

manufacture
and distribute the physical recordings. Smaller record companies (known as "
indies The East Indies (or simply the Indies), is a term used in historical narratives of the Age of Discovery The Age of Discovery, or the Age of Exploration (sometimes also, particularly regionally, Age of Contact or Contact Period), is an inf ...
") will form business relationships with other companies to handle many of these tasks. The record company pays the recording artist a portion of the income from the sale of the recordings, also known as a "royalty", but this is distinct from the publishing royalties described above. This portion is similar to a percentage, but may be limited or expanded by a number of factors (such as free goods, recoupable expenses, bonuses, etc.) that are specified by the record contract.
Session musician Session musicians, studio musicians, or backing musicians are musicians hired to perform in recording sessionThe term studio recording means any recording A record, recording or records may refer to: An item or collection of data Computing ...
s and
orchestra An orchestra (; ) is a large instrumental ensemble typical of classical music Classical music generally refers to the formal musical tradition of the Western world The Western world, also known as the West, refers to various ...

orchestra
members (as well as a few recording artists in special markets) are under contract to provide
work for hireIn the copyright Copyright is a type of intellectual property that gives its owner the exclusive right to copy and distribute a creative work, usually for a limited time. The creative work may be in a literary, artistic, educational, or musica ...
; they are typically only paid one-time fees or regular wages for their services, rather than ongoing royalties.


Media

Physical media (such as CDs or vinyl records) are sold by music
retail Retail is the sale of goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption ( ...

retail
ers and are owned by the consumers after they buy them. Buyers do not typically have the right to make digital copies from CDs or other media they buy, or rent or lease the CDs, because they do not own the recording on the CD, they only own the individual physical CD. A music distributor delivers crates of the packaged physical media from the manufacturer to the retailer and maintains commercial relationships with retailers and record companies. The music retailer pays the distributor, who in turn pays the record company for the recordings. The record company pays mechanical royalties to the publisher and composer via a collection society. The record company then pays royalties, if contractually obligated, to the recording artist. When music is digitally downloaded or
streamed Streaming media is multimedia that is constantly received by and presented to an end user while being delivered by a provider over the Internet. The verb ''to stream'' refers to the process of delivering or obtaining media in a continuous mann ...
, there is no physical media other than the consumer's computer memory on his or her portable media player or laptop. For this reason, artists such as Taylor Swift, Paul McCartney, Kings of Leon, and others have called for legal changes that would deny social media the right to stream their music without paying them royalties. In the digital and online music market of the 2000s, the distributor becomes optional. Large online shops may pay the labels directly, but digital distributors do exist to provide distribution services for vendors large and small. When purchasing digital downloads or listening to music streaming, the consumer may be required to agree to record company and vendor licensing terms beyond those which are inherent in
copyright Copyright is a type of intellectual property Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. ...

copyright
; for example, some services may allow consumers to freely share the recording, but others may restrict the user to storing the music on a specific number of hard drives or devices.


Broadcast, soundtrack and streaming

When a recording is broadcast (either on radio or by a
background music Background music refers to a mode of musical performance in which the music is not intended to be a primary focus of potential listeners, but its content, character, and volume level are deliberately chosen to affect behavioral and emotional respo ...
service such as
Muzak Muzak is an American brand of background music Background music refers to a mode of musical performance in which the music is not intended to be a primary focus of potential listeners, but its content, character, and volume level are deliberatel ...
),
performance rights organisation A performance rights organisation (PRO), also known as a performing rights society, provides intermediary functions, particularly collection of royalties, between copyright holders and parties who wish to use copyrighted works ''publicly'' in locat ...
s (such as the
ASCAP The American Society of Composers, Authors and Publishers (ASCAP) () is an American not-for-profit Performance rights organisation, performance-rights organization (PRO) that protects its members' musical copyrights by monitoring public performa ...
and BMI in the US, SOCAN in Canada, or MCPS and PRS in the UK), collect a third type of royalty known as a performance royalty, which is paid to songwriters, composers and recording artists. This royalty is typically much smaller than publishing or mechanical royalties. Within the past decade, more than "15 to 30 percent" of tracks on streaming services are unidentified with a specific artist. Jeff Price says "Audiam, an online music streaming service, has made over several hundred thousand dollars in the past year from collecting royalties from online streaming. According to Ken Levitan, manager from Kings of Leon, Cheap Trick and others, "Youtube has become radio for kids". Because of the overuse of YouTube and offline streaming, album sales have fallen by 60 percent in the past few years. When recordings are used in
television Television, sometimes shortened to TV or telly, is a telecommunication Telecommunication is the transmission of information by various types of technologies over wire A wire is a single usually cylindrical A cylinder (from Gre ...

television
and
film A film, also called a movie, motion picture or moving picture, is a work of visual art The visual arts are art forms such as painting Painting is the practice of applying paint Paint is any pigmented liquid, liquefiable, ...

film
, the composer and their publishing company are typically paid through a synchronization license. In the 2000s, online subscription services (such as Rhapsody) also provide an income stream directly to record companies, and through them, to artists, contracts permitting.


Live music

A promoter brings together a performing artist and a
venue Venue is the location at which an event takes place. It may refer to: Locations * Venue (law) In law, the venue is the location where a case is heard. United States Criminal venue The perceived abuse of English criminal venue law was one of th ...
owner and arranges contracts. A
booking agency A talent agent, or booking agent, is a person who finds jobs for actor An actor is a person who portrays a character in a performance (also actress; #The term actress, see below). The actor performs "in the flesh" in the traditional medium ...
represents the artist to promoters, makes deals and books performances. Consumers usually buy tickets either from the venue or from a ticket distribution service such as
Ticketmaster Ticketmaster Entertainment, LLC. is the world’s largest ticket marketplace and a global leader in ticketing products and services with headquarters in Los Angeles. In 2010 it merged with Live Nation Live Nation Entertainment, Inc. is an Ameri ...

Ticketmaster
. In the US,
Live Nation Live Nation Entertainment, Inc. is an American global Entertainment industry, entertainment company that was founded in 2010 following the Mergers and acquisitions, merger of Live Nation (events promoter), Live Nation and Ticketmaster. The compan ...
is the dominant company in all of these roles: they own most of the large venues in the US, they are the largest promoter, and they own
Ticketmaster Ticketmaster Entertainment, LLC. is the world’s largest ticket marketplace and a global leader in ticketing products and services with headquarters in Los Angeles. In 2010 it merged with Live Nation Live Nation Entertainment, Inc. is an Ameri ...

Ticketmaster
. Choices about where and when to tour are decided by the artist's management and the artist, sometimes in consultation with the record company. Record companies may finance a tour in the hopes that it will help promote the sale of recordings. However, in the 21st century, it has become more common to release recordings to promote ticket sales for live shows, rather than book tours to promote the sales of recordings. Major, successful artists will usually employ a
road crew The road crew (or roadies) are the technician A technician is a worker in a field of technology who is proficient in the relevant skill and technique, with a relatively practical understanding of the theoretical principles. Specialisation T ...
: a semi-permanent touring organization that travels with the artist during concert series. The road crew is headed by a tour manager. Crew members provides
stage lighting Stage lighting is the craft of lighting as it applies to the production of theater, dance, opera, and other performance arts.
stage lighting
, live sound reinforcement, musical instrument maintenance and
transportation Transport (in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial codification of grammar and ...

transportation
. On large tours, the road crew may also include an accountant, stage manager, bodyguard, hairdressers, makeup artists and
catering Catering is the business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Hav ...

catering
staff. Local crews are typically hired to help move equipment on and off stage. On a small tour with less financial backing, all of these jobs may be handled by just a few roadies or by the musicians themselves. Bands signed with small "indie" labels and bands in genres such as
hardcore punk Hardcore punk (often abbreviated to hardcore) is a punk rock Punk rock (or simply punk) is a music genre A music genre is a conventional category that identifies some pieces of music Music is the art of arranging sounds in time to ...
are more likely to do tours without a road crew, or with minimal support.


Artist management, representation and staff

Artists such as singers and musicians may hire several people from other fields to assist them with their career. The
artist manager A artist manager (also known as an Talent manager, band manager or music manager) is an individual who guides the professional career of artists An artist is a person engaged in an activity related to creating art, practicing the arts, or demo ...
oversees all aspects of an artist's career in exchange for a percentage of the artist's income. An
entertainment lawEntertainment law, also referred to as media law, is legal services provided to the entertainment industry Entertainment is a form of activity that holds the attention and Interest (emotion), interest of an audience or gives pleasure and delig ...
yer assists them with the details of their contracts with record companies and other deals. A
business manager Business is the activity of making one's living or making money by producing or buying and selling Product (business), products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a busi ...
handles financial transactions, taxes, and bookkeeping. Unions, such as
AFTRA The American Federation of Television and Radio Artists (AFTRA) was a performers' union that represented a wide variety of talent, including actors in radio Radio is the technology of signaling and telecommunication, communicating using rad ...
and the
American Federation of Musicians The American Federation of Musicians of the United States and Canada (AFM/AFofM) is a 501(c)(5) A 501(c) organization is a nonprofit organization A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organizat ...
in the U.S. provide
health insurance Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance Insurance is a means of protection from financial loss. It is a form of risk management Risk management is the identification, ev ...
and instrument insurance for musicians. A successful artist functions in the market as a
brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

brand
and, as such, they may derive income from many other streams, such as
merchandise Merchandising is any practice which contributes to the sale of products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or se ...
, personal endorsements, appearances (without performing) at events or Internet-based services. These are typically overseen by the artist's
manager Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit, non-profit organization, or a government body. It is the art and science of managing resources. Management includes the activities ...
and take the form of relationships between the artist and companies that specialize in these products. Singers may also hire a
vocal coach A vocal coach, also known as a voice coach (though this term often applies to those working with speech and communication rather than singing), is a music teacher, usually a piano accompanist, who helps singers prepare for a performance, often als ...
, dance instructor,
acting coach An acting coach or drama coach is a teacher who trains performers – typically film, television, theatre and, musical theatre actors–and gives them advice and mentoring to enable them to improve their acting and dramatic performances, prepare f ...
, personal trainer or life coach to help them.


Emerging business models

In the 2000s, traditional lines that once divided singers, instrumentalists, publishers, record companies, distributors, retail and consumer electronics have become blurred or erased. Artists may record in a
home studioHome recording is the practice of recording sound in a private home instead of a professional recording studio. A studio set up for home recording is called a home studio or project studio. Home recording is widely practiced by voice actors, narrat ...

home studio
using a high-end laptop and a digital recording program such as
Pro Tools Pro Tools is a digital audio workstation (DAW) developed and released by Avid Technology (formerly Avid Audio, Digidesign) for Microsoft Windows and OS X, macOS. It is used for music creation and production, sound for picture (sound design, aud ...
or use Kickstarter to raise money for an expensive studio recording session without involving a record company. Artists may choose to exclusively promote and market themselves using only free online video sharing services such as YouTube or using social media websites, bypassing traditional promotion and marketing by a record company. In the 2000s, consumer electronics and computer companies such as Apple Computer have become Online music store, digital music retailers. New digital music distribution technologies and the trends towards using Sampling (music), sampling of older songs in new songs or blending different songs to create mashup (music), "mashup" recordings have also forced both governments and the music industry to re-examine the definitions of intellectual property and the rights of all the parties involved. Also compounding the issue of defining copyright boundaries is the fact that the definition of "royalty" and "copyright" varies from country to country and region to region, which changes the terms of some of these business relationships. After 15 or so years of the Internet economy, the digital music industry platforms like iTunes,
Spotify Spotify (Help:IPA/English, /ˈspɒtɪfaɪ/; Swedish: Help:IPA/Swedish, spɔ̂tːɪfaj, is a Sweden, Swedish Streaming media, audio streaming and media services provider, founded in 2006 by Daniel Ek. Spotify is incorporated in Luxembourg a ...

Spotify
, and Google Play Music, Google Play are major improvements over the early illegal file sharing days. However, the multitude of service offerings and revenue models make it difficult to understand the true value of each and what they can deliver for musicians and music companies. As well, there are major transparency problems throughout the music industry caused by outdated technology. With the emerging of new business models as streaming platforms, and online music services, a large amount of data is processed. Access to big data may increase transparency in the industry.


History of printed music and recorded music


Early history: Printed music in Europe

Music publishing using machine-printed
sheet music Sheet music is a handwritten or printed form of musical notation Music notation or musical notation is any system used to visually represent aurally perceived music played with instrument (music), instruments or singing, sung by the hum ...

sheet music
developed during the Renaissance music era in the mid-15th century. The development of music publication followed the evolution of printing technologies that were first developed for printing regular books. After the mid-15th century, mechanical techniques for printing sheet music were first developed. The earliest example, a set of liturgical chants, dates from about 1465, shortly after the Johannes Gutenberg, Gutenberg Bible was printed. Prior to this time, music had to be copied out by hand. To copy music notation by hand was a very costly, labor-intensive, and time-consuming process, so it was usually undertaken only by monks and priests seeking to preserve sacred music for the church. The few collections of secular (non-religious) music that are extant were commissioned and owned by wealthy aristocrats. Examples include the Squarcialupi Codex of Italian Trecento music and the Chantilly Codex of French Ars subtilior music. The use of printing enabled sheet music to reproduced much more quickly and at a much lower cost than hand-copying music notation. This helped musical styles to spread to other cities and countries more quickly, and it also enabled music to be spread to more distant areas. Before the invention of music printing, a composer's music might only be known in the city she lived in and its surrounding towns, because only wealthy aristocrats would be able to afford to have hand copies made of her music. With music printing, though, a composer's music could be printed and sold at a relatively low cost to purchasers from a wide geographic area. As sheet music of major composer's pieces and songs began to be printed and distributed in a wider area, this enabled composers and listeners to hear new styles and forms of music. A German composer could buy songs written by an Italian or English composer, and an Italian composer could buy pieces written by Dutch composers and learn how they wrote music. This led to more blending of musical styles from different countries and regions. The pioneer of modern music printing was Ottaviano Petrucci (born in Fossombrone in 1466 – died in 1539 in Venice ), a printer and publisher who was able to secure a twenty-year monopoly on printed music in Venice during the 16th century. Venice was one of the major business and music centers during this period. His ''Harmonice Musices Odhecaton'', a collection of chansons printed in 1501, is commonly misidentified as the first book of sheet music printed from movable type. That distinction belongs to the Roman printer Ulrich Han's ''Missale Romanum'' of 1476. Nevertheless, Petrucci's later work was extraordinary for the complexity of his white mensural notation and the smallness of his font. He printed the first book of polyphony (music with two or more independent melodic lines) using movable type. He also published numerous works by the most highly regarded composers of the Renaissance, including Josquin des Prez and Antoine Brumel. He flourished by focusing on Flemish works, rather than Italian, as they were very popular throughout Europe during the Renaissance music era. His printing shop used the triple-impression method, in which a sheet of paper was pressed three times. The first impression was the staff lines, the second the words, and the third the notes. This method produced very clean and readable results, although it was time-consuming and expensive. Until the 18th century, the processes of formal composition and of the printing of music took place for the most part with the support of patronage from Aristocracy (class), aristocracies and Religion, churches. In the mid-to-late 18th century, performers and composers such as Wolfgang Amadeus Mozart began to seek more commercial opportunities to market their music and performances to the general public. After Mozart's death, his wife (Constanze Weber) continued the process of commercialization of his music through an unprecedented series of memorial concerts, selling his manuscripts, and collaborating with her second husband, Georg Nissen, on a biography of Mozart. In the 19th century, sheet music, sheet-music publishers dominated the music industry. Before the invention of sound recording technologies, the main way for music lovers to hear new symphonies and opera arias (songs) was to buy the sheet music (often arranged for piano or for a small chamber music group) and perform the music in a living room, using friends who were amateur musicians and singers. In the United States, the music industry arose in tandem with the rise of "black face" minstrel show, minstrelsy. Blackface is a form of theatrical makeup used predominantly by non-black performers to represent a black people, black person. The practice gained popularity during the 19th century and contributed to the spread of negative racial stereotypes of African-American people. In the late part of the century the group of music publishers and songwriters which dominated popular music in the United States became known as Tin Pan Alley. The name originally referred to a specific place: West 28th Street between Fifth and Sixth Avenue in Manhattan, and a plaque (see #plaque, below) on the sidewalk on 28th Street between Broadway and Sixth commemorates it. The start of Tin Pan Alley is usually dated to about 1885, when several music publishers set up shop in the same district of Manhattan. The end of Tin Pan Alley is less clear-cut. Some date it to the start of the Great Depression in the 1930s when the phonograph and radio supplanted
sheet music Sheet music is a handwritten or printed form of musical notation Music notation or musical notation is any system used to visually represent aurally perceived music played with instrument (music), instruments or singing, sung by the hum ...

sheet music
as the driving force of American popular music, while others consider Tin Pan Alley to have continued into the 1950s when earlier styles of American popular music were upstaged by the rise of rock & roll.


Advent of recorded music and radio broadcasting

At the dawn of the early 20th century, the development of sound recording began to function as a disruptive technology to the commercial interests which published sheet music. During the sheet music era, if a regular person wanted to hear popular new songs, he or she would buy the sheet music and play it at home on a piano, or learn the song at home while playing the accompaniment part on piano or guitar. Commercially released phonograph records of musical performances, which became available starting in the late 1880s, and later the onset of widespread radio broadcasting, starting in the 1920s, forever changed the way music was heard and listened to. Opera houses, concert halls, and clubs continued to produce music and musicians and singers continued to perform live, but the power of radio allowed bands, ensembles and singers who had previously performed only in one region to become popular on a nationwide and sometimes even a worldwide scale. Moreover, whereas attendance at the top symphony and opera concerts was formerly restricted to high-income people in a pre-radio world, with broadcast radio, a much larger wider range of people, including lower and middle-income people could hear the best
orchestra An orchestra (; ) is a large instrumental ensemble typical of classical music Classical music generally refers to the formal musical tradition of the Western world The Western world, also known as the West, refers to various ...

orchestra
s, big bands, popular singers and opera shows. The "record industry" eventually replaced the sheet music publishers as the music industry's largest force. A multitude of record labels came and went. Some noteworthy labels of the earlier decades include the Columbia Records, Crystalate, Decca Records, Edison Bell, The Gramophone Company, Invicta, Kalliope, Pathé, Victor Talking Machine Company and many others. Many record companies died out as quickly as they had formed, and by the end of the 1980s, the "Big six" — EMI, Sony Music Entertainment, CBS, Bertelsmann Music Group, BMG, PolyGram, Warner Music Group, WEA and MCA Records, MCA — dominated the industry. Sony bought CBS Records International, CBS Records in 1987 and changed its name to Sony Music in 1991. In mid-1998, PolyGram, PolyGram Music Group merged with MCA Music Entertainment creating what we now know as
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational Music industry, music corporation. UMG's corporate headquarters are located in Hilversum, Netherlands and its op ...
. Since then, Sony and BMG merged in 2004, and Universal took over the majority of EMI's recorded music interests in 2012. EMI Music Publishing, also once part of the now defunct British conglomerate, is now co-owned by Sony as a subsidiary of Sony/ATV Music Publishing. As in other industries, the record industry is characterised by many mergers and/or acquisitions, for the major companies as well as for middle sized business (recent example is given by the Belgium group PIAS Recordings, PIAS and French group Harmonia Mundi). Genre-wise, music entrepreneurs expanded their industry models into areas like folk music, in which composition and performance had continued for centuries on an ad hoc self-supporting basis. Forming an independent record label, or "indie" label, or signing to such a label continues to be a popular choice for up-and-coming musicians, especially in genres like
hardcore punk Hardcore punk (often abbreviated to hardcore) is a punk rock Punk rock (or simply punk) is a music genre A music genre is a conventional category that identifies some pieces of music Music is the art of arranging sounds in time to ...
and extreme metal, even though indies cannot offer the same financial backing of major labels. Some bands prefer to sign with an indie label, because these labels typically give performers more artistic freedom.


Rise of digital online distribution

In the first decade of the 2000s, digitally downloaded and streaming media, streamed music became more popular than buying physical recordings (e.g. CDs,
records A record, recording or records may refer to: An item or collection of data Computing * Record (computer science) In computer science Computer science deals with the theoretical foundations of information, algorithms and the architectures ...
and Compact Cassette, tapes). This gave consumers almost "friction-less" access to a wider variety of music than ever before, across multiple devices. At the same time, consumers spent less money on recorded music (both physically and digitally distributed) than they had in the 1990s. Total "music-business" revenues in the U.S. dropped by half, from a high of $14.6 billion in 1999 to $6.3 billion in 2009, according to Forrester Research. Worldwide revenues for CDs, Gramophone record, vinyl, cassettes and music download, digital downloads fell from $36.9 billion in 2000 to $15.9 billion in 2010 according to IFPI. ''The Economist'' and ''The New York Times'' reported that the downward trend was expected to continue for the foreseeable future. This dramatic decline in revenue has caused large-scale layoffs inside the industry, driven some more venerable retailers (such as Tower Records (music retailer), Tower Records) out of business and forced record companies, record producers, studios, recording engineers and musicians to seek new business models. In response to the rise of widespread illegal
file sharing File sharing is the practice of distributing or providing access to digital media Digital media means any media (communication), communication media that operate with the use of any of various encoded machine-readable data formats. Digital me ...
of digital music-recordings, the record industry took aggressive legal action. In 2001 it succeeded in shutting down the popular music-website Napster, and threatened legal action against thousands of individuals who participated in sharing music-song sound-files. However, this failed to slow the decline in music-recording revenue and proved a public-relations disaster for the music industry. Some academic studies have even suggested that downloads did not cause the decline in sales of recordings. The 2008 British Music Rights survey showed that 80% of people in Britain wanted a legal peer-to-peer (P2P) file-sharing service, however only half of the respondents thought that the music's creators should be paid. The survey was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based. Legal digital downloads became widely available with the debut of the Apple
iTunes Store The iTunes Store is a software-based online digital media Digital media means any media (communication), communication media that operate with the use of any of various encoded machine-readable data formats. Digital media can be created, v ...

iTunes Store
in 2003. The popularity of music distribution over the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a ''internetworking, network of networks'' that consist ...

Internet
has increased, and by 2011 digital music sales topped physical sales of music. Atlantic Records reports that digital sales have surpassed physical sales. However, as ''The Economist'' reported, "paid digital downloads grew rapidly, but did not begin to make up for the loss of revenue from CDs". After 2010, Internet-based services such as Deezer, Pandora Radio, Pandora,
Spotify Spotify (Help:IPA/English, /ˈspɒtɪfaɪ/; Swedish: Help:IPA/Swedish, spɔ̂tːɪfaj, is a Sweden, Swedish Streaming media, audio streaming and media services provider, founded in 2006 by Daniel Ek. Spotify is incorporated in Luxembourg a ...

Spotify
, and iTunes Radio, Apple's iTunes Radio began to offer subscription-based "streaming media, pay to stream" services over the Internet. With streaming services, the user pays a subscription to a company for the right to listen to songs and other media from a library. Whereas with legal digital download services, the purchaser owns a digital copy of the song (which they can keep on their computer or on a digital media player), with streaming services, the user never downloads the song file or owns the song file. The subscriber can only listen to the song for as long as they continue to pay the streaming subscription. Once the user stops paying the subscription, they cannot listen to audio from the company's repositories anymore. Streaming services began to have a serious impact on the industry in 2014.
Spotify Spotify (Help:IPA/English, /ˈspɒtɪfaɪ/; Swedish: Help:IPA/Swedish, spɔ̂tːɪfaj, is a Sweden, Swedish Streaming media, audio streaming and media services provider, founded in 2006 by Daniel Ek. Spotify is incorporated in Luxembourg a ...

Spotify
, together with the music streaming, music-streaming industry in general, faces some criticism from artists claiming they are not being fairly compensated for their work as downloaded-music sales decline and music-streaming increases. Unlike physical or download sales, which pay a fixed price per song or album, Spotify pays artists based on their "market share" (the number of streams for their songs as a proportion of total songs streamed on the service). Spotify distributes approximately 70% to rights-holders, who will then pay artists based on their agreements. The variable, and (some say) inadequate nature of this compensation, has led to criticism. Spotify reports paying on average US$0.006 to US$0.008 per stream. In response to concerns, Spotify claims that they are benefiting the music business by migrating "them away from piracy and less monetised platforms and allowing them to generate far greater royalties than before" by encouraging users to use their paid service. The Recording Industry Association of America (RIAA) revealed in its 2015 earnings report that streaming services were responsible for 34.3 percent of the year's U.S. recorded-music-industry revenue, growing 29 percent from the previous year and becoming the largest source of income, pulling in around $2.4 billion. US streaming revenue grew 57 percent to $1.6 billion in the first half of 2016 and accounted for almost half of industry sales. This contrasts with the $14.6 billion in revenue that was received in 1999 by the U.S. music industry from the sale of CDs. The turmoil in the recorded-music industry in the 2000s altered the twentieth-century balance between artists, record companies, promoters, retail music-stores and consumers. , big-box stores such as Wal-Mart and Best Buy sell more records than music-only CD stores, which have ceased to function as a major player in the music industry. Music-performing artists now rely on concert, live performance and
merchandise Merchandising is any practice which contributes to the sale of products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or se ...
sales (T-shirts, sweatshirts, etc.) for the majority of their income, which in turn has made them more dependent - like pre-20th-century musicians - on patrons, now exemplified by music promoters such as Live Nation (events promoter), Live Nation (which dominates tour promotion and owns or manages a large number of
music venue A music venue is any location used for a concert or musical performance. Music venues range in size and location, from a small coffeehouse 200px, Coffeehouse in San Francisco A coffeehouse, coffee shop, or café is an establishment th ...
s). In order to benefit from all of an artist's income streams, record companies increasingly rely on the "360 deal", a new business-relationship pioneered by Robbie Williams and EMI in 2007. At the other extreme, record companies can offer a simple manufacturing- and distribution deal, distribution-deal, which gives a higher percentage to the artist, but does not cover the expenses of marketing and promotion. Companies like Kickstarter help independent musicians produce their albums through crowdfunding, fans funding bands they want to listen to. Many newer artists no longer see a record deal as an integral part of their business plan at all. Inexpensive recording-hardware and -software make it possible to record reasonable-quality music on a laptop in a bedroom and to distribute it over the Internet to a worldwide audience. This, in turn, has caused problems for recording studios, record producers and
audio engineer An audio engineer (also known as a sound engineer or recording engineer) helps to produce a sound recording, recording or a live performance, balancing and adjusting sound sources using equalization (audio), equalization, Dynamic range compressi ...
s: the ''Los Angeles Times'' reports that as many as half of the recording facilities in that city have failed. Changes in the music industry have given consumers access to a wider variety of music than ever before, at a price that gradually approaches zero. However, consumer spending on music-related software and hardware increased dramatically over the last decade, providing a valuable new income-stream for technology company, technology companies such as
Apple Inc. Apple Inc. is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, ...
and Pandora Radio.


Sales statistics


Digital album volume sales growth in 2014

According to IFPI, the global digital album sales grew by 6.9% in 2014. Source: Nielsen SoundScan, Official Charts Company/BPI, GfK and IFPI estimate.


Consolidation

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 — 21.1% * Sony Music Entertainment — 17.4% * EMI — 14.1% * Warner Music Group — 13.4% * BMG — 11.4% * Independent labels combined — 22.6% In 2004, the joint venture of Sony and BMG created the 'Big Four' at a time the global market was estimated at $30–40 billion. Total annual unit sales (CDs, music videos,
MP3 MP3 (formally MPEG-1 Audio Layer III or MPEG-2 Audio Layer III) is a coding format for digital audio Digital audio is a representation of sound recorded in, or converted into, Digital signal (signal processing), digital form. In digital a ...

MP3
s) in 2004 were 3 billion. Additionally, according to an International Federation of the Phonographic Industry, IFPI report published in August 2005, the big four accounted for 71.7% of retail music sales: * Universal Music Group—25.5% * Sony BMG Music Entertainment—21.5% * EMI Group—13.4% * Warner Music Group—11.3% * Independent labels combined—28.3% Nielson SoundScan, Nielsen SoundScan in their 2011 report noted that the "big four" controlled about 88% of the market: *
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational Music industry, music corporation. UMG's corporate headquarters are located in Hilversum, Netherlands and its op ...
(USA based) — 29.85% *
Sony Music Entertainment Sony Music Entertainment (SME), also known as just Sony Music, is an American multinational Music industry, music company. Owned by the parent conglomerate (company), conglomerate Sony, Sony Group Corporation, it is part of the Sony Music Group ...
(USA based) — 29.29% *
Warner Music Group Warner Music Group Corp. (commonly abbreviated as WMG and simply referred to as Warner Music) is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Mult ...
(USA based) — 19.13% * EMI Group — 9.62% * :Independent record labels, Independent labels — 12.11% After the absorption of EMI by Sony Music Entertainment and Universal Music Group in December 2011 the "big three" were created and on January 8, 2013 after the merger there were layoffs of forty workers from EMI. European regulators forced Universal Music to spin off EMI assets which became the Parlophone Label Group which was acquired by Warner Music Group. Nielson SoundScan, Nielsen SoundScan issued a report in 2012, noting that these labels controlled 88.5% of the market, and further noted:"The Nielsen Company & Billboard's 2012 Music Industry Report,"
Business Wire (January 4, 2013)
*
Universal Music Group Universal Music Group N.V. (often abbreviated as UMG and referred to as just Universal Music) is a Dutch–American multinational Music industry, music corporation. UMG's corporate headquarters are located in Hilversum, Netherlands and its op ...
(USA based) which owns EMI Music — 32.41% + 6.78% of EMI Group *
Sony Music Entertainment Sony Music Entertainment (SME), also known as just Sony Music, is an American multinational Music industry, music company. Owned by the parent conglomerate (company), conglomerate Sony, Sony Group Corporation, it is part of the Sony Music Group ...
(USA based) which owns publishing arm of EMI, EMI Group — 30.25% * Warner Music Group— 19.15% * Independent labels— 11.42% Note: the IFPI and Nielsen Soundscan use different methodologies, which makes their figures difficult to compare casually, and impossible to compare scientifically. Current Markets shares as of September 2018 are as follows:IBISWorld report 51221 * Warner Music Group — 25.1% * Universal Music Group — 24.3% * Sony Corporation — 22.1% * Other — 28.5% The largest players in this industry own more than 100 subsidiary record labels or sublabels, each specializing in a certain market niche. Only the industry's most popular artists are signed directly to the major label. These companies account for more than half of US market share. However, this has fallen somewhat in recent years, as the new digital environment allows smaller labels to compete more effectively.


Albums sales and market value

Total album sales have declined in the early decades of the 21st century, leading some music critics to declare the death of the album. (For instance, the only albums that went platinum in the US in 2014 were the Frozen (soundtrack), soundtrack to the Disney animated film ''Frozen'' and 1989 (Taylor Swift album), Taylor Swift's ''1989'', whereas several artists did in 2013.) The following table shows album sales and market value in the world in 2014. Source: IFPI 2014 annual report.


Recorded music retail sales


2000

In its June 30, 2000 annual report filed with the U.S. Securities and Exchange Commission, Seagram reported that Universal Music Group made 40% of the worldwide classical music sales over the preceding year.


2005

Interim physical retail sales in 2005. All figures in millions.


2003–2007

Approximately 21% of the gross revenue, gross CD revenue numbers in 2003 can be attributed to used CD sales. This number grew to approximately 27% in 2007. The growth is attributed to increasing on-line sales of used product by outlets such as Amazon.com, the growth of used music media is expected to continue to grow as the cost of digital downloads continues to rise. The sale of used goods financially benefits the vendors and online marketplaces, but in the United States, the first-sale doctrine prevents copyright owners (record labels and publishers, generally) from "double dipping" through a levy on the sale of used music.


2011

In mid-2011, the RIAA trumpeted a sales increase of 5% over 2010, stating that "there's probably no one single reason" for the bump.


2012

The Nielsen Company & Billboard's 2012 Industry Report shows overall music sales increased 3.1% over 2011. Digital sales caused this increase, with a Digital Album sales growth of 14.1% and Digital Track sales growth of 5.1%, whereas Physical Music sales decreased by 12.8% versus 2011. Despite the decrease, physical albums were still the dominant album format. Vinyl Record sales increased by 17.7% and Holiday Season Album sales decreased by 7.1%.


Total revenue by year

Global trade revenue according to the International Federation of the Phonographic Industry, IFPI.


By region

* Music industry of Asia * Music industry of East Asia * Nordic popular music, Music industry of Northern Europe * :British music industry, Music industry of the U.K.


Associations and organizations

The List of music associations and organizations covers examples from around the world, ranging from huge international bodies to smaller national-level bodies.


See also

* DIY ethic * History of music publishing * Independent record label * List of record labels and :Record labels * List of best-selling music artists * MIDEM-World's largest music trade fair * Record label * Music community * White label


References


Citations


Sources

*


Further reading

* Lebrecht, Norman: ''When the Music Stops: Managers, Maestros and the Corporate Murder of Classical Music'', Simon & Schuster 1996 * Imhorst, Christian
The 'Lost Generation' of the Music Industry
published under the terms of the GNU Free Documentation License 2004 * Gerd Leonhard: ''Music Like Water – the inevitable music ecosystem'' * The Methods Reporter
Music Industry Misses Mark with Wrongful Suits


– a mid-2000 overview put together by Duke University undergraduate students * Mario d'Angelo: "Does globalisation mean ineluctable concentration ?" in Roche F., Marcq B., Colomé D. (eds)''The Music Industry in the New Economy, Report of the Asia-Europe Seminar'' (Lyon 2001) IEP de Lyon/Asia-Europe Foundation/Eurical, 2002, pp. 53–60. * Mario d'Angelo: ''Perspectives de gestion des institutions musicales en Europe'' (Management Perspectives for Musical Institutions in Europe), OMF Series, Paris-Sorbonne University, Ed. Musicales Aug. Zurfluh, Bourg-la-Reine, 2006 * Hill, Dave: ''Designer Boys and Material Girls: Manufacturing the [19]80s Pop Dream''. Poole, Eng.: Blandford Press, 1986. * Rachlin, Harvey. ''The Encyclopedia of the Music Business''. First ed. New York: Harper & Row, 1981. xix, 524 p.
The supply of recorded music
A report on the supply in the UK of prerecorded compact discs, vinyl discs and tapes containing music. Competition Commission, 1994. * * Tschmuck, Peter: ''Creativity and Innovation in the Music Industry'', Springer 2006. * Knopper, S., 2011. The New Economics of the Music Industry. ''Rolling Stone'', ''25''.


External links


Salon article on Courtney Love's criticism of record industry business practices



Antitrust settlement in Nevada price-fixing case
* Songwriter Janis Ian'
critique of the record industry's policies


– August 10, 2005 MP3 Newswire article *
Music Downloads: Pirates- or Customers?
'. Silverthorne, Sean. Harvard Business School, Harvard Business School Working Knowledge, 2004.
The British Library - Music Industry Guide (sources of information)



BPI: Music business – Industry Structure

Academic articles about the music industry
The Music Business Journal {{Authority control Music industry, Distribution (marketing)