Investigating the Macro Structure of the Music Industry (Ao1)
There are two different types of recording labels that make up the music industry which are the major recording labels and the independent recording labels. In this essay I’m going to be contrasting one major recording company, ’Sony Music Entertainment’, with an independent recording company, ’The Big Scary Monsters’.
Sony Music Entertainment UK is part of one of the largest music and entertainment companies in the world. It has a wide range of local artists and international superstars, it also contains of some of the most important recordings in history.
The key significance within these two recording labels is that, Sony Music Entertainment is the second-largest global record company. This will mean that Sony Music Entertainment, as a major recording label owns distribution channels, it’s known worldwide due to its successful, highly sophisticated marketing reputation, the company’s globalization connotes its wealth and power to be known across the Europe.
It is important to mention that, Sony has got a high status and reputation. It also has got mainstream, well known, highly qualified and experienced artists and stars signed to it. Hereby, the company will become wealthier and powerful through the music of its own artists. Obviously, without the successful artists the company won’t easily become global. This will also enable them to reach a mass audience.
Sony Music Entertainment doesn’t just focus on music but also in other media interests and outlets. This is known as conglomerate, when a media company has other media interests and outlets besides just producing music. For example, SONY also produces many other hardware electronics. For example, cameras, TV’s, games, movies, films, mobile phones, DVDs, laptops, loud speakers and many more. Sony is the most respected, liked, trusted and modern company in the recent years. It has got a global reputation.
Contrastingly, the independent recording label the ’Big Scary Monsters’ is located in Oxfordshire outside London. In this sense, as it is local, it connotes that the ‘Big Scary Monsters’ recording company reaches a niche target audience. For example, Math Rock, Indie Rock or Post Rock.
Significantly, its target audience is mainly white, British, working class, Rock and Roll male fans whom prefer up-tempo beats and heavy guitar sounds.
Similarly, the ‘Big Scary Monsters’ has got less access to successfully advertise, promote or publish its music through the use of different media outlets, as I have mentioned above because it operates without any funding of and outside the organizations of the major record labels.
Interestingly enough, Sony Music Entertainment is often known as a macro company which connotes that it’s a company on a very large scale. While, Big Scary Monsters is often called the micro organization which refers to a small, independent and less developed recording label.
Reference: world music market sales shares, according to IFPI.
As you can see from the diagram above, the four major labels almost own 72% of all the music in the music market. The four major labels are Sony Music Entertainment, EMI, Universal and Warner. All these labels are global, highly wealthy, triumphs and popular due to other subsidiary labels and companies they own and run.
However, I am going to compare Sony Music Entertainment as a major record label with Big Scary Monster as an independent label based on the music they produce.
To begin, Sony Music Entertainment has got a broad range of various music genres including Pop, Hip Hop, R&B, Rap, Jazz, Rock and a mixture of many other various genres.
This means that Sony Music Entertainment produces mainstream music genres which are popular, known worldwide by a global audience. For example, Justin Timberlake is known worldwide and his concerts and tours are based around the world.
The artist’s music videos, star persona, and overall, representation reflects the company which Justin Timberlake is signed in.
This means that Sony Music Entertainment is successful, wealthy and globalised its artists will too.
There is a vast majority of different musical artists all signed to Sony Music Entertainment. For example, Leona Lewis, Usher, the legendary King of Pop Michael Jackson, Justin Timberlake, Christina Aguilera, Lemar, Usher, Beyonce, Pink, Ciara, and the X-Factor winners, Leona Lewis, Alexandera Burke, Matt Cardle and many more. All of these artists are singing R&B, Hip Hop, Pop, Soul pop and many other genres.
Interestingly enough, these artists are unique and different from each other because they need to seal albums and engage people with their music. The star persona that Sony Music Entertainment tells them to be will make them distinguished from each other.
Yet also, this phenomenal success, power and wealth of the artists and the major recording companies are the key significance between major and independent record labels.
Most importantly, Sony caters for a range of diverse target audience using many professional strategies through promoting, publishing and advertising. Here are some examples for how Sony caters for different target audiences:
- worldwide concerts
- tours
- selling millions of CD’s using synergy
In contrast, Big Scary Monsters recording label produces genre of music which are just different types of Rock and Roll niche genres. For instance, they’re only producing Alternative, Math, Post or Indie Rock.
Interestingly, Kevin Douch is the finder of BSM and he is
The artists that are signed to this label are:
- This Town Needs Guns
- Kevin Devine
- Pulled Apart By Horses
- Walter Schreifels
- Andrew WK and Get Cape
- Wear Cape
- Fly
Moreover, there are various approaches which BSM can provide for different target audiences.
For example, through their official website they promote market and publish their music, released debut albums, live videos or CD covers and other media outlets.
For this unit, I’ve thoroughly examined the various strategies BSM has used, as an independent recording label, to promote, advertise and publishes their music. Here are some of the examples for BSM’s marketing, promotion and distribution channels.
They’ve got I-Tunes store, exclusive offers on their website and BSM has launched a mini website ‘Friends of the Family’ which provides us access to free downloading MP3 songs. Hereby, BSM promote their music which makes their music known to and purchased by their customers or clients.
To add, it has also launched a blog called the ‘Big Scary Monsters’ which contains lots of waffled messages, live and promo videos posted by members of bands in BSM. For example, a YouTube video of their band known as Shoes And Socks Off – Smithereens on their Blogger.
Their multimedia content includes MP3 format songs. For example, Hymns-Invidia and ?Hymns?- A punch to the temple. The MP3 demo tracks can be heard on Amazon.com or Emusic.
Additionally, videos are included too. For example, Kevin Devine and Shoes And Socks Off - Stan (Eminem cover in a Little Chef) or Shoes And Socks Off - Lounge Act (live Nirvana cover) and a monthly podcast where they will be uploading each month new episodes of their featuring past, present and future BSM bands as well as live recordings, a few unreleased and rare tracks, old favourites and the best unsigned bands. Additionally, it has also got extra contents, Last FM: Radio, samplers, BSM covers, Walter UK tours or ’’BSM in Europe’’, and talons about current updates.
Interestingly, Kevin Douch , the founder, has created a ‘packaging company’ where they offered their customers to sign up a membership club known as ’BSM 10 collection’ which you will have to pay to receive a package of 52 free MP3s, 11% discounts and artists’ CDs send to the customer’s inbox and home address.
At last, Big Scary Monsters is also promoting a DVD/CD compilation featuring over 30 promo. For example, Mimas CDs, Partied Hard, Tall Ships, Tellison, and Hold Your Horse Is.
To add, they also have great deals of offers when selling their products such as 10% website discounts.
They also synergy with few of the most well known social networking companies such as Facebook, Twitter, YouTube, Blogger, and MySpace. But, it’s free of charge and easy to sign up with these companies. BSM doesn’t have any horizontal integration because it doesn’t have any other media interests to cross promote their artists except music. Significantly, as BSM is an independent recording label it doesn’t own any other companies or labels.
Besides, they’ve also got label profile, they increases their sales by setting up an online digital store which sells many merchandises, For example, CD covers, CD’s, T-shirts, digitals, vinyl’s, cassettes, Distro items, DVD’s, limited addition items, bags, misc and pre-orders, and free streaming MP3’s. Additionally, they also have their band’s information on their website and online videos providing examples of the songs or records such as debut albums, live bands and festivals.
Kevin Douch, founder of Big Scary Monsters, owns it own distribution channels. Kevin works solo which means he’s staying completely independent and figuring things out for himself. Although, he’s got a cast made up of managers, booking agents, press people, distributors and occasional interns, he is required to take on all these roles for those who don't have any managers, press people, distributors, runners and interns
Their roster is arguably more varied than ever before. For example, Andrew W.K.,Tall Ships, Kevin Devine and Walter Schreifels, Talons and Chicago based punks Grown Ups.On top of that, BSM organized a 5-a-side football tournament, taking place at the Linford Christie Sports Centre in London which often offers some bonus material, behind-the-scenes tour footage, some interviews, exclusive mp3s and many more.
Yet, Big Scary Monster synergizes with ‘Bearded’ magazine and ‘Front’ magazine which is appears on BSM’s Blogger. BSM is synergizing with a published magazine that is targeting similar target audience as BSM. This magazine is known as the Front magazine which publishes lots of pictures, videos, posters, stickers and wallpapers of naked seductive young females. It also includes video games. This shows the informality of the record label.
As an independent recording label such as BSM has built a national fanbase, made all of their music available for free, attempted to establish a solid online presence.
The label is funded through Kevin Douch doing a variety of extra jobs.
Kevind has got a number of magazines and radio stations who he can call on for support. They also employ PR people for their bigger bands, which helps secure extra content.
As BSM is a DIY independent record label based in Oxfordshire. The type of company connotes that the product will have to be sold for cheaper prices, bargain deals which means having to give away more to earn the same value. For example, their ’10 collection’ club cost £17 to subscribe and each week throughout the year they'll be emailing a new track out to all of their subscribers. These will mostly be made up of the best new and unsigned bands, along with a few exclusive new BSM signings, before the rest of the world finds out about them, album tracks from some of their old favourites.
As well as the 52 MP3s, everyone also gets an exclusive BSM t-shirt and a 10% discount on all purchases from BSM’s online shop for the whole year and free entry into monthly prize draws.
-Tours are often based nationally due to lack of money for funding international tours for all the bands. When the record label is run by one person, it’s going to be difficult to save money quickly.
The record label has to synergize with free but most visited social networking, merchandise and radio companies such as FaceBook, Twitter, Blogger, YouTube, LastFM, MySpace, Amazon, and Emusic.
Currently, there are 27 bands signed to BSM which signifies that the type of company reflects the amount of artists signed to the label. Instead, of a company like Sony Music Entertainment who’s got a broad array of international and national artists. This also means that the less funding a company has the fewer opportunities it will have to become successful. Compare to BSM, Sony Music Entertainment, has got a rather more complex structured system.
Likewise, the type of company depends on the ways artists are promoted, published, advertised and marketed. The wealthier, successful and known worldwide the easier the record label can become conglomerate and their artists can be familiarize through a wide range of marketing, promoted, published and advertised strategies. For example, synergizing with other well known and powerful companies can make a record label earn the same profit, beneficial and advantages, as a result, they can use horizontal integration. For example, Sony has used Usher to publish their Sony Ericsson mobile phones through the use of horizontal integration.
BSM artists have sold 99 recordings but, recently, released their 100th records from Partied Hard. Primarily, they appeal to a niche audience as its aim at a specific and exact target audience. This is white, working class, British, men who are interested in partying, being different and informal in the sense of fashion, ideas and manners, female seduction, drinking, clubbing and hanging around.
Moreover, Sony Music Entertainment is a macro organization parenting subsidiary labels such as Columbia, Deconstruction Records, RCA Label Group and Sony Commercial Music Group. This means that Sony Music owns these four independent labels. Whereas, the independent label, ‘Big Scary Monsters’ is a micro organization which will always require parenting from the major labels to succeed.
Therefore, BSM doesn’t own any other companies or labels for horizontal integration. Sony has done many synergized advertisings, promotions and publishing to reach a wide audience and earns more. For example, Sony Music Entertainment has synergized Alexander Burke which is signed to Sony with Sure deodorant in a commercial. Hereby, the two media institutions, Sony and Sure deodorant, have collaborated together with the same selling product to appeal the same audience for their own benefits.
Therefore, BSM doesn’t own any other companies or labels for horizontal integration. Sony has done many synergized advertisings, promotions and publishing to reach a wide audience and earns more. For example, Sony Music Entertainment has synergized Alexander Burke which is signed to Sony with Sure deodorant in a commercial. Hereby, the two media institutions, Sony and Sure deodorant, have collaborated together with the same selling product to appeal the same audience for their own benefits.
Major recording companies including Sony own distribution channels. Whereas, independent labels can only sell through their websites. BSM hasn’t got a lot of solo artist; they mainly have bands that perform as a group.
Sony uses horizontal integration through different media sources such as games such as Wii, music such as Matt Cardle or Leona Lewis, films such as the most recent released film,’’The Tourist’’ with Angelina Jolie and Johnny Depp, TV programmers such as X Factor. Whereas, BSM websites and their music to sell its music. Commonly, they are more likely to synergize with Facebook, Blogger, Twitter and other social networking websites.
As Christina Aguilera is signed to Sony her marketing and promotion access would be varied as she is signed to a very wealthy and successful company that has the ability to access or synergise with any other companies they want. Often, independent companies desperately wants to synergize with Sony as it has got such a high reputation.
Anyways, Christina Aguilera have used the increased amount of merchandising available as well as the abuse of censorship rules to create media hype. An artist’s image can really help to market their singles. The image and fashion connected with the genre of the music is really important too. Popularity of glam rock saw artists such as Gary Glitter and David Bowie, who all had a very strong visual image. Major record companies just like Sony and their artists would use this to create an unique selling point.
As Christina Aguilera is signed to Sony her marketing and promotion access would be varied as she is signed to a very wealthy and successful company that has the ability to access or synergise with any other companies they want. Often, independent companies desperately wants to synergize with Sony as it has got such a high reputation.
Anyways, Christina Aguilera have used the increased amount of merchandising available as well as the abuse of censorship rules to create media hype. An artist’s image can really help to market their singles. The image and fashion connected with the genre of the music is really important too. Popularity of glam rock saw artists such as Gary Glitter and David Bowie, who all had a very strong visual image. Major record companies just like Sony and their artists would use this to create an unique selling point.
Constrastingly, Kevin Devlin who is an independent artist isn't being marketed or promoted the way Christina Aguilera is being promoted. This has al to do with funding and the type of record label the artists are signed to. Kevin is only being marketed through going on tours which wil increase his fan base and has affected his career.
Moreover, Kevin was interviews by 'Popwreckoning' and Manchester Orchestra's Andy Hull.
Played a number of festivals and has got a myraid amounts of social networking websites such as Blogger, Myspace, Twitter, Fcebook, Youtube, hyperlinks and accounts such as Amazon.com and eMusic. These are all the working class based websites which are for free and easily accessable. They're a bargain for anyone who ones music for sale. Whereas, major recording labels will sell Christina Aguilera's music for £20 or even more.
Moreover, Kevin was interviews by 'Popwreckoning' and Manchester Orchestra's Andy Hull.
Played a number of festivals and has got a myraid amounts of social networking websites such as Blogger, Myspace, Twitter, Fcebook, Youtube, hyperlinks and accounts such as Amazon.com and eMusic. These are all the working class based websites which are for free and easily accessable. They're a bargain for anyone who ones music for sale. Whereas, major recording labels will sell Christina Aguilera's music for £20 or even more.
Overall, below I have revealed the key similarities and differences between Sony Music Entertainment and Big Scary Monsters.
Similarities | Differences |
The major similarities between Sony and Big Scary Monster are that they both: - Have websites to publish information about their music. Selling their music using different types of media strategies. A range of artists who are mainly aiming to produce music that appeals to their targets audiences. Consider genre of products in their music. | The major differences between Sony and Big Scary Monsters are that they both have: Sony doesn’t synergize with social networking industries but with other well known companies meeting similar standards to them and these industries should have a global reputation as well just like Sony. Whereas, BSM pays for more social networking companies to enhance their popularity and they are trying to appeal to more audiences. The differences for BSM and Sony is mainly that Sony is mainstream, reaches a mass audience, wealthy, it’s a conglomerate industry, has got a global reputation, meet high demanding standards and sells it’s music using a broad array of media resources such as synergy, horizontal integration, vertical integration, and enhances the quality of its products by making it more wider, most wanted and famous electronic products such as the new Vaio Sony laptops or camera. Contrastingly, BSM is a niche record label, local, unknown, on budget industry, the only source they use is to synergize with social networking websites and its own website to gain popularity and reach high standards. Another key significance to major recording companies is that they have artists that can easily become famous because they are signed to the company. Whereas, independent recording labels will find it difficult and challenging to easily become famous and appeal to a mass audience because the independent record labels don’t have the ability to become known worldwide. Moreover, major recording companies own music hardware. In contrast, independent recording labels like BSM don’t have that. Instead they sell their music only through websites. Independent recording labels are just known nationally. They'r very small and insignificant. Due to lack of funding they don't have the ability to access synergize with other highly respected and successful companies like major recording labels can do. As a result, promoting, advertising, publishing or marketing their artists to the maximum exposure will be difficult for an independent recording label. Therefore, their artists won't be well known, popular and won't succeed easily. Whereas, Sony is a successful company because it has got good merchandise techniques. |
Sony market and promotes their artists in an extensive, expensive and elaborates way where they consider every single detail in order to gain as much as credit through their promotion and marketiing as they can. For example, Susan Boyle shows us that Sony Music focuses on a mass audience producing a range of music genres such as Susan Boyle sings Operas. Whereas, Usher sings R&B or Hip Hop.
I have researched in Sony Music Entertainment’s home website that every artist that is signed to that company owns their own official website where it has got a host of official videos, pictures, news, galleries, music, hotspots and many more. They’ve got lots of free streaming, Login accounts, news archives and headlines, world tours and concerts, official music store online selling CD’s, T-shirts and album editions but they are not available in other countries besides Canada and US, Also, they also don’t have any discounts or offers at all, updated news about the artists, community forums and so on.
Sony Music synergizes with a broad array of companies in order for them to gain familiarity and power. For example, synergizes with I-Tunes, Tweeter, Facebook, MySpace, Feeds, YouTube, Amazon.com, and Myplay.com. Additionally, they also have an international bar on each and every official artist websites.
Overall, the major difference between major and independent recording labels are that majors are highly wealthy, powerful, has got an excellent reputation and high status. Whereas, indepedent recording lables are niche, on budget and targets a very small target audience which means the mainstream music or audiences don't even know them.
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