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Global music recording and distribution businesses - Coggle Diagram
Global music recording and distribution businesses
Major companies
The global music industry is dominated by 3 very large companies.
Universal music
Biggest in the world
In 2023 made 32% of all music sales globally
Head office in amsterdam
Artists signed include Taylor Swift and Drake. They own a lot of labels including Interscope and Capitol.
Sony music
2nd biggest: made up 21% of global music sales/
Based in new york
Owns columbia, RCA and epic.
Artists include Beyonce, Adele and Harry Styles.
Warner music
Made up 13% of sales
Owns atlantic, warner and parlophone
Artists include Ed Sheeran, Dua Lipa and Cardi B
Standardisation and Localisation
Examples of standardisation:
Lots of hit songs sound similar around the world, e.g. in pop music.
English is the main language used in global hits.
Many companies use the same type of marketing and promotion in every country.
Localisation
Local music styles like K pop, Afrobeats and Reggaeton have become popular around the world.
Music companies are now signing local artists and making content that fits different cultures: e.g. Universal starting Virgin Music Latin America, to support local talent.
Digital distribution networks and partnerships
Streaming services
Spotify is the largest app with 515 million users in 2023.
Other ones include apple music, amazon music, and Deezer.
Music companies let these platforms use their music and they get a share of the money, around 50-55% of what the platform earns.
Artists are paid 0.0003-5$ a stream.
Youtube
Over 2 billion people use youtube each month
Many fans discover songs through youtube videos
Music companies earn money from ads and youtube music subscriptions
Tiktok
Important for making songs go viral
Songs that become popular in short videos can become global hits
Music companies work with Tiktok to promote new artists and trends
New music platforms
Fortnite and tiktok are used for virtual concerts
This helps to connect with young fans in new ways
Revenue streams (ways of making money)
Streaming royalties
Biggest source of income: 57% of all recorded music revenue in 2024 (18.1 billion USD)
Comes from paid subscriptions and adverts on services, e.g. spotify
Licensing agreements
Music which is used in TV, Films, Video games, adverts and social media
Music companies sell the rights to use a song, which can be worth thousands or millions of dollars, depending on who the artist is and where it is used.
Can launch the careers of new artists as well as revive the careers of established artists
Merch
T shirts, posters, special items with the artists name or image
Universal and warner both have their own merch businesses. Example: Travis Scott and Cactus Jack
Other sources of income
CDs and vinyl remain popular. IN 2023, vinyl sales reached $1.2 billion.
Some companies are also trying virtual concers, connecting with younger fans.