Music Industry Essay
I am going to be looking at the music publishing companies Universal Music Group, Inc. (UMG), one of the biggest major labels in the music industry and Beggars Group Limited, (BGL), a powerful UK independent label.
UMG own and administrate VEVO and in recent news Google Inc. is reportedly looking at investing a 10% stake worth £42million. The deal has not yet been signed but it is said that it will include a renewal agreement that will see VEVO distributing millions of music clips and videos on YouTube, (Universal Music Group, Inc. Key Developments, Google Reportedly Eyes VEVO, Jan 17 2013). In other news UMG have announced a new CEO for all the global operations outside of the US. Max Hole (new CEO) will be responsible for additional key markets including the UK and will administrate universals classical music business. Max Hole has been instrumental in attracting artists such as Taylor Swift and Queen to UMG, (Universal Music Group, Inc. Key Developments, Universal Music Group, Inc. Promotes Max Hole as Chairman and CEO of its Global Operations Outside US, Jan 7 2013).
In a recent press release BGL claim that its artists are now earning more from streaming tracks than actual downloads. The BGL chairman Martin Mills has stated that 22% of the labels digital revenues came from streaming in 2012 and the majority of its artists for example Adele have earned more from streaming than from digital downloads, (Business Matters, Beggars Group, By Glenn Peoples Jan 7 2013).
UMG are currently reigning as the top major distributor finishing the first half of 2012 with a 30% share of the market. UMG’s share rose when they got eight albums in the top 20 charts. Sony was close competition for UMG having a 29% share and Sony also beat UMG’s share with full album distribution, (Universal Music Group Tops Sony To Lead 2012 Mid-Year by Ed Christman, July 5 2012).
BGL are a powerful independent label that have four...
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