Traditional Music Distribution Value Chain (Bricks & Mortar) Content creation artists, prodcerer
Production, publishers, recording
Sales, Marketing Publicity
Distribution pack & ship
Customer End users
Whole sale Retailers
Retailer’s sales to customer
The process beings with the talent pool which includes artists, producers, composers, ghostwriters and among others, the artists are contacted to international record label to produce music recording such as Sony BMG, Universal, Warner and Emi are example of large music companies that own smaller record labels. The rest of the record label industry is made up independent labels such as sub-pop, Epitaph and Muse music. Record labels add to the artistes’ product by augmenting it with marketing campaigns, promotions, concerts and most importantly access to barging power with distributors. Artists often find it beneficially to leverage the resources of a record label in order to reserve shelf-space among retailers; Best-Buy and Wal-Mart are two large brick and mortar versus digital music retails. The big four own their own distribution channels while smaller independent record labels rely on separate system of distribution. Finally, the music is delivered to the end-user or the consumers through there are many separate steps in the value chain, many record labels and music groups, including the “Big Four” participate in several of these stages. For instance, Sony BMG may enter into contract with an artist, than the publisher and manufacturer and distribute that artist’s work.
(2) Draw the process stages for creating and downloading music today. How dose...