Olivia Lyons

AS Media Studies Section B: Institutions and Audiences

The Music Industry: The Big Four

Read the section on pg 10 of your music industry handbook called ‘The Big Four’

1. Write down the names of the big four(major labels)Sony Music EntertainmentUniversal Music Group (UMG)EMIWarner Music Group

2. What is an ‘independent record label? (find examples of at least four online and state them below)One which is not owned by one of the big four. A label may have a distribution deal with a major and still be independent. The Rolling Stones- The Rolling Stones RecordsElton John- RocketThe Beatles- Apple RecordsCherry Red

3. What type of deal can an ‘indie label have with a major, but still remain independent?A distribution deal

4. In what ways can the label remain independent with the type of deal above?The label can remain independent as the major offers the indie releases to the store but do not have a say in what albums the indie releases or how the indie manages their label. For example, HMV sells music but has nothing to do with how the music is made.

Now read the article below, dated Friday 11th November and answer the questions which follow

http://www.guardian.co.uk/business/2011/nov/11/universal-music-acquisition-emi?newsfeed=true

5. Who now owns EMI?Universal Music own EMI

Olivia Lyons

6. How much did they pay for the label and which other major label did they outbid?Universal paid £429m for EMI.

7. EMI is now a subsidiary of Universal Music

8. Is the acquisition an example of vertical or horizontal integration?Horizontal integration

9. The 9th paragraph says the acquisition will earn the company 100m a year in ‘SYNERGIES’ or the products generated by the effect that media convergence has.

Look at the link below and list at least 4 examples of these synergies from the sub-headings

http://www.vivendi.com/vivendi/Universal-EN

Recorded MusicMerchandisingMusic publishingThe digital music market