Research: State of Music Industry in 2012

Music Industry today..
   
    Summary:
4 Major labels dominate the music industry today; Universal Music group, Sony Music entertainment, EMI group and Warner music group. The music industry is heading downhill in the 21st century. In the 21st century Music videos are widely used in order to create artist recognition and promote the music through visuals,
Before music used to be in analogue formats. From Vinyl's and records to CD's and Radios. Music now is digital, can be found it Mp3 formats ect.
  The main issues which the record industry face today are illegal file sharing and piracy. This was actually the main factor which lead to the decline in the music industry. Instead of physically going out and buying a single or an album most of the teenage population download free music on line illegally.

Between the 1970s and late 1990s, the industry was dominated by the 'big 6'. In the late 90s saw the merging of companies into bigger companies to create the 'big 5' . In 2004, Sony music and BMG merged an the market was dominated by the 'big 4', which is the current state today. Each of these large companies own lots of smaller subsidiary labels that specialise in different genres/areas of the market.

Current situation:
   Falling sales, falling profit margins - record companies in 2010
    -> sales for albums drop over £100m in 2yrs.

- 2010 - 319m
- 2009 - 366m
- 2008 - 428m

The commercialisation of the internet and web 2.0 has seen a wider shift in how fans consume music.
- people want a single heard on the radio
- people want the track that played last night on one tree hill/ the x factor.
- there are more places to buy and find music.
Instead of physically going to a shop you can now buy online.

Current trends:
- Downloading MP3 format
* 67 music legal sites
* Amazon & itunes - Cheap & convenient

- Illegal downloading
*3/4 of all downloaded music is illegal.
*youtube converter software
* 1.2 billion illegal downloads in uk 2010

- Streaming
*allows music to be delivered to a user on demand
*can be free of paid by subscription
* free sites cover costs with advertising revenue.

DECLINE IN MUSIC INDUSTRY