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Sound media

Sound media. records . Music as a Mass Media . The recording industry brings music to mass audiences About $5 billion in sales in the U.S. market annually About $125 billion in sales in the global market annually. Revenue Streams. Sales Record Stores

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Sound media

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  1. Sound media records

  2. Music as a Mass Media • The recording industry brings music to mass audiences • About $5 billion in sales in the U.S. market annually • About $125 billion in sales in the global market annually

  3. Revenue Streams • Sales • Record Stores • Retail Outlets (Target, Wal-Mart, Best Buy, etc.) • Paid downloads • Licensing • Radio Stations • Live Music Venues • Any business that uses recorded music

  4. The BIG Four • The recording industry is dominated by four major labels: • Sony • Universal • EMI • Warner • These labels occupy 84% of the US market and 75 % of the world market

  5. 2009 World-Wide Digital song sales • Of the top 10 digital songs sold worldwide, U.S. artists accounted for 100 percent. • 1 Lady Gaga Poker Face • 2 Black Eyed Peas Boom BoomPow • 3 Jason Mraz I’m Yours • 4 Lady Gaga Just Dance • 5 Black Eyed Peas I Gotta Feeling • 6 Taylor Swift Love Story • 7 Beyonce Single Ladies (Put A Ring On It) • 8 Soulja Boy Tell ‘Em Kiss Me Thru The Phone • 9 Kanye West Heartless • 10 Britney Spears Circus • Source: IFPI

  6. Scope of the industry • Due to the file-sharing “crisis” of the early 21st century, the scope of the music industry landscape changed • Sony merged with German-company Bertelsmann • Time Warner sold Warner Music • Warner Music and EMI have attempted to merge twice only to be stricken down by regulation

  7. Indie Labels • Indie labels claim 15% of US sales • Motown is the most famous indie label • Later absorbed by Universal Music for a $61 million price tag • Indie labels put out much more music than majors • Majors play it safe

  8. A&R: The Foundation • Artists and Repertoire • Responsible for finding talent and artist development • Artist Development consisted of creating pop culture; A&R executives decided what would be recorded and marketed

  9. Power Shift • Sometimes successful artists leave majors to start independent labels • More control over their art • Cheaper, better recording equipment • Social Networking Sites (SNS) becoming popular for self-promotion and building fan bases

  10. File Sharing: The Case of Napster • Technology developed by Shawn Fanning • Allowed for free file-sharing between users • Why pay for a CD? • Metallica v. Napster (2000) • Victory or too little too late?

  11. RIAA’s Response to File Sharing • Sue illegal downloaders • Pressure schools to crack down • Seek help from ISPs • Upload decoy files • Copy-restriction software

  12. iTunes: A Viable Business Model • Steve Jobs (Apple) • Sample & Download Songs • Pay to download singles or albums • Exceptional Sound Quality • Compressed Format • Fast downloads, Less Disk Space • Clean System • Not filled with viruses

  13. Objectionable Music • Parents Music Resource Center • Explicit Records v. Artistic Freedom • Record companies voluntarily add warnings

  14. Objectionable Music • Radio a different ball game • FCC fines licensees after the fact • Most stations prefer songs like this

  15. Sound media radio

  16. Influence of radio • Ubiquity: Radio is everywhere • 520 million radio sets in the US • Radios outnumber people 2:1

  17. Scope of the industry • 13,000 Radio Stations • $16.1 Billion Industry • Reached its growth? • Declining profits

  18. Radio content • Entertainment • News • Talk Radio

  19. Radio Formats • Programming tailored to specific audiences • Demographics, lifestyles, buying behavior, opinions, etc • Arbitron collects most of the data

  20. Origins of Radio • Vaudeville • Sitcoms • Soap operas • Variety shows • Quiz shows • News • Not much music until ASCAP accepted blanket licensing fees and the arrival of TV

  21. entertainment • Music dominates radio • Popularity of genres and public interests always in flux

  22. News • Was much larger before the 1990s • Many stations dropped News departments • No longer required to operate as public service for license renewal

  23. Talk radio • Live listener telephone calls • Advice programs • Sports • Mostly AM stations • Average listener is white, male Republican at above average income level

  24. Trusteeship concept • Broadcast is regulated by the government • Public Airwaves • Justified regulation • Established Federal Radio Commission • Awarded licenses to broadcasters

  25. FCC • 1927 • Founded as the Federal Radio Commission to regulate the public airwaves • 1934 • Renamed Federal Communications Commission with expanded powers to TV, telegraph, telephone

  26. FCC Powers • Assign Frequencies • Approve, Deny, Revoke Licenses • Regulate signal strength and hours of operation • CANNOT: control content, but can impose fines after the fact for obscenity, profanity, or indecency • Watch this

  27. Local roots • Radio began as a local format • FCC licensed stations to local service areas with local ownership

  28. National programming trend • Brought about a transition from local programming • By the 1930s, CBS and NBC were piping programs to affiliate stations throughout the land • Mutual Broadcasting System (1924) • Allowed any station to pick up any or all of its programming • Local Stations became conduits for a powerful, emerging national culture

  29. Marketplace concept • Telecommunications Act of 1996 • Deregulated radio • Removed limits on how many radio stations a single company could own (previously 40) • Conglomerates • Clear Channel (over 1,200 stations in 2003) • CBS

  30. Corporate radio • Chain Ownership • Consolidation of properties • Computerized Scheduling and Playlists • Voice Tracking • Profit Motive • Efficiency

  31. Corporate Radio • Telecommunications Act of 1996 • Clear Channel – Biggest radio chain • Radio, while still profitable, is competing with: • Satellite radio • Internet radio • MP3 players • Podcasting • Demand programming

  32. Public Radio • Non-commercial broadcasting • Corporation for Public Broadcasting • Channel money into noncommercial radio and television • NPR

  33. Satellite Radio • SIRIUS • XM • Merged in 2009 • FCC does not regulate content; only technical parameters • Subscription-based

  34. Bright spots • HD radio • Digital Signals: Improved clarity • Bundled transmission • Can carry several signals on one frequency • Can store programs for playback

  35. The Future • Future of the Music Industry • What next?

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