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The Music Industry

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by

Al Norman

on 29 April 2016

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Transcript of The Music Industry

Industry
record in this area the changes in your life so far in
the ways you obtain music
how you find out about music that's new for you
the formats of the music
the hardware / technologies / devices you use to listen to
add in
class survey questions & results
Technologies
record in this area the changes in technologies of consumption
analogue
digital
What are the advantages of each technology over its predecessor?
capacity (hours / tracks)
sound quality
portability
durability of the recorded format
ability to copy
ease of sharing
speed of copying & sharing
The big changes to concentrate on:
music going
DIGITAL
BROADBAND
CONVERGENCE
What music you like
is less important than
how you discover it.
the
MUSIC
How much time do you spend listening to music?
What devices do you use to listen to music?
What sites do you use as music players?
Where do you seek new music?
How else do you become aware of new music?
How do you find out about band news and gigs?
How do you obtain new music?
If you buy new music, where do you buy it from?
If you don't buy new music, where do you get it from?
2 hours a day
8 hours a day
5.4 hours a day on avaerage
streaming
mp3
radio
phone
music tv
records
YouTube
Spotify
soundcloud
grooveshark
YouTube
Charts
radio station sites
Facebook
MySpace
soundcloud
word of mouth
TV ads
music magazines
gigs & festivals
band / artist websites
posters
flyers
social networks
buy / don't buy
YouTube converter
torrents
frostwire
BTjunkie
iTunes store
on CD
What issues arise from this short documentary?
Technological Advancement
Technological Convergence
Coming together of 2 or more technologies
Iphone & Ipod Touch
Consume music anywhere, have entire music collection in your pocket
Impacted on institutions and audiences
WEB 2.0
Web 1.0 was about info being pushed onto us - it was mostly a space for browsing and reading.
As technology has advanced web 2.0 allows us to read, post and publish content without the need for specialist software.
This has positives and negatives for the music industry.
What are your initial thoughts?
Web 2.0 - The Positives
Unsigned acts - produce and distribute their own music without a label using MySpace Music
Indie Labels - Can operate solely online (production & Distribution) keeping costs low hence they can focus more on the actual music - taking more risk
Majors - Can source bands who already have an established fanbase
Advertise online - using info on individuals' profiles to target them with music they’re seemingly interested in.
Wider audience can be reached
Synergetic links with other companies e.g. Xfactor songs can be instantly downloaded from Itunes.
What effects has it had on the Music Industry?
How can digital and technological convergence harness individual creativity with regards to music?
Think about YouTube...
Mash Ups
Music Videos
Fan Videos
The Negatives
P2P sites such as Napster which emerged in 1999 hit major companies in their core markets (western world): the potential impact was far greater than the circulation of black market CDs.
Major companies predicted a catastrophic impact on their revenue streams
Weakened the producers power over consumers and forced a transformation in the circulation of media products
What do you think?
In pairs create an argument that outlines the benefits and limitations of technological and digital convergence on both institutions and audiences.

Feed your ideas to another pair.
The music business
history
since music went digital
since the internet became fast enough to share music
my music consumption
Technologies #2
The Online Music Revolution
The Money Programme, BBC2, 19.05.2006
From this programme, you should have note some of the main issues for the music industry from the late nineties to the mid-noughties.
How and why MySpace was important in terms of music.
What the Arctic Monkeys proved.
The attitude of the major music companies towards filesharing / free downloads / piracy in the early noughties,
as expressed by John Kennedy of Universal Music Group in 2002.
The significance of the prosecution of Napster and its closure in 2001.
The size of the impact of filesharing on the revenue of the music industry.
How Apple's iTunes Store, launched in 2003, offered a different business model for sales of music.
How Apple persuaded the majors to license their music to the iTunes Store.
How successful the Store has been.
Why Mick Hucknall launched his own music label and sold Simply Red's music through its own website.
The attitude of the major music companies towards the Internet, filesharing / free downloads / piracy in the mid noughties,
as expressed by John Kennedy of the International Federation of the Phonographic Industry in 2006.
The response of Avril Lavigne's management to the prosecution of one of her fans for illegal filesharing.
The music industry's two tactics to deal with illegal filesharing,
as expressed by Rob Wells, head of new media at Universal Music Group.
The future predicted by the industry for when the "free download" generation reach middle age.
how music makes money
copyright & royalties
download this musicrevenuelicnceflows.pdf from Moodle, save it, then upload to your prezi
types of music company
majors
newer types
independents
consolidation of
media ownership
horizontal integration
vertical integration
a large back catalogue
The music business now
in the online age of social media, sharing,
being connected, user generated content
Music 2.0
The presentation that follows was created by Espresso, which is a marketing agency.
They have invented the term
brand infiltration
to describe the service they offer and the ways in which they enable their clients to use the power of Web 2.0 to increase fans' involvement and ultimately the clients' revenue.
Web 2.0:
interactive, creative and social online media
Their clients would be music labels and individual artists.
Add to your prezi
a description of Espresso
an explanation of what they mean by "brand infiltration"
examples of the techniques of "brand infiltration", naming specific artists or labels, and the effect this has had for the artist or label
an explanation of what Espresso mean by "Music 2.0": what is it & why has it come about?
an explanation of what Espresso mean by "connect or die"
You can find their slides on the Music Industry blog if you want to Print Screen or Grab them to put in your prezi.
Live Nation is a live-events company based in Beverly Hills, California, focused on concert promotions.
Live Nation formed in 2005 as a spin-off from Clear Channel Communications, which then merged with Ticketmaster in 2010 to become Live Nation Entertainment.
Live Nation "signs" artists as a "record label", but predominantly takes the role of a promoter, rather than "owner of music".
The deals with U2 and Madonna for example do not include copyright of the artists' future recordings.
The 2007 deal signed with Jay-Z does include the rapper's future recordings.
Live Nation signed Colombian singer Shakira, Canadian band Nickelback and Mexican singer Luis Miguel.
Live Nation
source: Wikipedia
As of mid-November 2011
there are 3 massive global music companies, known as
the Big Three
Sony Music Entertainment
Universal Music Group
Warner Music Group
There used to be a Big Four
but in mid November 2011
(the only British music company of this size)
was sold by its owners to
Universal Music Group
The history of these companies is quite complex.
As massive businesses, there have been
take-overs
joint ventures
sell-offs
spin-offs
For a few years, Sony Music worked in partnership with BMG music.
BMG music was part of the giant German global media corporation Bertelsmann Group.
In 2006 the European regulators withdrew approval for the
partnership.
Bertelsmann later decided to drop its music interests and sold them to Sony Music Entertainment.
Warner Music Group was spun off from the giant global media group Time Warner in 2003
A deal like this is an example of
Before this
joint venture
there were
the BIG FIVE
music companies
major music companies
& use
in an age where traditional revenue from music sales cannot be relied upon
research
Using the websites of the Big Three
(and EMI) note down in your prezi
http://www.sonymusic.com/
http://www.wmg.com/
http://www.universalmusic.com/
the labels they own
and some of
the artists signed to them.
http://www.emimusic.com/
Consumption
horizontal integration
having several labels is an example of
each label has the same function
each label may specialise in a different genre
each label may target a different audience segment
the company can share facilities between labels
recording and producing music
is often the result of takeovers
e.g.2. the takeover of
EMI's recording business
by Universal Music Group
in November 2011
UMG acquire all of EMI's labels at once
e.g.1. the takeover of
a single independent label
that the company thinks
will be profitable
recording studios
CD manufacturing plants
distribution networks
personnel e.g. producers, engineers
marketing departments
media management
synchronisation departments
the company can make use of its existing deals with distributors (e.g. Apple's iTunes Store or a mobile phone network) for all its labels
go for a range of artists:
global stars
new artists
different styles or genres
your favourites
insert the logos of the company
insert the label logos too if you want
set the label names out in a horizontal line
or use an organisational chart (insert > drawing > timeline or org chart)
major
Body
label
label
Part of the giant French media conglomerate
other music businesses
GetMusic - online music retailer
huge music publishing companies
Vivendi also own:
over 20 film production & distribution companies including
Universal Studio
Universal Pictures
Working Title
cable & TV services
12 TV & video production & distribution companies including
the makers of the Jerry Springer Show
software & games production companies & online services
Universal Studios theme parks
Vivendi started as a water company Compagnie Générale des Eaux (CGE), founded in Paris in 1853, supplying water to Paris, Lyons, Venice and Constantinople.
large stakes in four cinema chains:
Cineplex Odeon Corporation
Cinema International Corporation
United Cinemas International (UCI)
UGC
a mobile phone network
& French football team Paris St Germain
the Sony group based in Japan includes other businesses in a range of markets:
merchandising companies
Vivendi
financial services
electronics & communications manufacturing
film production & distribution (inc. Columbia)
merchandise
games hardware, software & development
interactive services
TV production & distribution
label
label
label
label
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
artist
in order to maximise profits
"Like the other music majors that make up the Big Three, Sony Music is horizontally integrated because..."
so in an organisational chart they are set out horizontally
=
=
What benefits or advantages are there for a music company in being
horizontally integrated?
horizontal integration
have
synergy
We have already discovered that the Big 3 are huge companies, that are vertically and horizontally integrated,
A
conglomerate

is a
large business organisation
made up of a number of different companies,
often linked by the area of interest that they work in.

It is the number of companies within a conglomerate
(their subsidiary companies)
and the range of sectors that they work in,
that give conglomerates such power.
The Big 3 act an an
OLIGOPOLY
as they dominate the Music Industry
the stages of
production
recording, engineering, mixing
CD manufacture, download preparation
distribution
physically
online
marketing
advertising
promoting
exchange
retail purchasing
consumption
the music business
A major music company will seek to
maximise its
profit
How would you do so
in relation to these
stages of the business?
A music company that owns companies or facilities at these different stages is said to have
vertical integration
or to be
vertically integrated
What is it about major music companies that might make it possible to be
vertically integrated?
SO
What stages of the music business are
most threatened in the age of downloading?
another advantage of
horizontal integration
is having a huge
back catalogue.
How many ways can you think of in which this could generate
revenue?
synchronisation
in the music industry means selling to other media producers
the right to use one of your tracks in their TV programme, film, game etc.
It's a major source of revenue these days.
The more tracks you have to licence,
the more money you can make.
=$£€
Another way to increase revenue
is to use
synergy
Sony Music Entertainment
the Sony group based in Japan includes other businesses in a range of markets:
financial services
electronics & communications manufacturing
film production & distribution (inc. Columbia)
merchandise
games hardware, software & development
interactive services
TV production & distribution
Imagine you are
GIven that
How could you use other parts of the group to help sell your music?
Using a film
or a game
or a game of a film
or a film of a game
to help sell music
is
synergy
or synergistic marketing.
is a music publishing company co-owned by Sony
and The Michael Jackson Family Trust.
Sony/ATV provides a facility for emerging artists and bands to send in their demos

In the age of web 2.0, this is another example of how the music industry is becoming interactive and a two-way process.
Sony have introduced a new website to rival the iTunes Store as a way for consumers to access songs, games and films online.

Music Unlimited offers a global catalogue of over 10 million songs plus personal music library, ad free radio channels, and access across multiple devices.
Sony/ATV owns over 600,000 copyrights including works by The Beatles, Michael Jackson, Bob Dylan, Eminem and Elvis Presley to name a few.
Because Sony records, produces and now distributes and exchanges its music, from all its horizontally integrated labels, it is
The label Roc Nation is NOT owned by Sony Music.
It's owned by Live Nation.
Sony Music distribute music for Roc Nation.
The founder of Roc Nation was Jay Z

Roc Nation is a fully functioning entertainment company, including artist, songwriter, producer and engineer management; music publishing; touring & merchandising; film & television; new business ventures; and a music label.

Artists signed to Roc Nation partake in full-rights deals, which are all encompassing and include ticket sales, record sales and all forms of
endorsements.
Sony Music Entertainment
a case study of a major music corporation
Sony Corporation
what do you know about
Sony so far
Take a minute to jot down all you can.
Then combine your knowledge with others.
.
Ownership
Sony Music Entertainment
is a subsidiary of
Sony Corporation of America
which is a subsidiary of
a
subsidiary
is
a company that is owned
by a larger company
the giant Japanese conglomerate
Sony Corporation
is a multinational or global conglomerate corporation
is ranked as the world's fifth largest media conglomerate
measured by its revenue
is one of the leading manufacturers of electronics products for the consumer and professional markets
operates in a range of markets
Consumer Products & Services (consumer electronics, game & network services)
Professional, Device & Solutions (B2B products & services)
Pictures
Music
Financial Services
Sony Ericsson
its revenue in the financial year to March 2011 was
US$ 86.64 billion
the year of the Japanese earthquake and tsunami
depending when you measure their size
the world's largest is
The Walt Disney Company
with the other places being fought for by
News Corporation
TimeWarner
CBS Corporation
Viacom
Sony
Sony's corporate history
http://en.wikipedia.org/wiki/Sony_Corporation#History
In the History section, find
when the company was founded
its first successful type of product
In the Formats and Technologies section, find
some key innovations Sony have made or been involved in
understand.learn
know.learn
http://www.sony.net/
In your own time, for up to date press releases etc. go to
mins
max.
5
Sony Music Entertainment
is horizontally integrated because...
is vertically integrated because...
uses synchronisation to...
can make money from its back catalogue by...
complete these in your prezi:
In your own time, to read about its history and the labels it owns and used to own, go to
http
://en.wikipedia.org/wiki/Sony_Music
http://www.sonyatv.com/en-uk/
can use synergy to...
because...
revise.learn
since 2005 it has been headed by a Briton, Howard Stringer, as chairman, CEO & President
Sony/ATV Music Publishing
Sony/ATV's catalogue has been estimated to be worth $4-5 billion.
Sony/ATV's catalogue generates about $80 million each year,
with The Beatles' songs contributing $30-45 million.
sample their music at
Sony/ATV Music Publishing
on 11.11.11 a group including Sony, The Michael Jackson Family Trust and others bought EMI Music Publishing for $2.2 billion.
Sony Music also do deals with other companies for the benefit of both sides.
Legacy Recordings was set up in 1990 to handle reissues of recordings from the vast catalogues of CBS Records, then Sony Music.
www.legacyrecordings.com
http://en.wikipedia.org/wiki/Legacy_Recordings
see lists of their artists at
life changing music
Legacy's slogan:
Can you find examples of Sony's
synergistic marketing?
http://www.sonypictures.com/
other music activities
VERTICALLY INTEGRATED.
"MyPlay Direct is dedicated to connecting fans with the artists and the music they love. With the hottest tracks and videos, up-to-the-minute news and artist updates, and special (and often exclusive!) products from the biggest names in music, MyPlay Direct is the one stop shop for the true music fan. MyPlay Direct, Inc. is a division of Sony Music Entertainment (a wholly owned subsidiary of Sony Corporation of America)"
Music video website Vevo is a joint venture between Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media launched officially on December 8, 2009.
The videos on VEVO are syndicated across the web, with Google and VEVO sharing the advertising revenue.
There are more than 45,000 videos available on VEVO.
Warner Music Group was initially reported to be considering hosting its content on VEVO,but subsequently formed a rival alliance with MTV Networks.
think.find.learn
think.learn
think.learn
Sony DRM trouble
In October 2005, it was revealed by Mark Russinovich of Sysinternals that Sony BMG's music CDs had installed a rootkit on the user's computer as a DRM measure (called Extended Copy Protection by its creator, British company First 4 Internet), which was difficult to detect or remove. This constitutes a crime in many countries, and poses a major security risk to affected users. The uninstaller Sony initially provided removed the rootkit, but in turn installed a dial-home program that posed an even greater security risk. Sony eventually provided an actual uninstaller that removed all of Sony's DRM program from the user's computer. Sony BMG faced several class action lawsuits regarding this matter. On 31 January 2007, the U.S. Federal Trade Commission issued a news release announcing that Sony BMG had agreed to settle Federal Trade Commission charges that Sony BMG committed several offenses against United States federal law. This settlement required that Sony BMG allow consumers to exchange the CDs through 30 June 2007, and to reimburse consumers for up to $150 for the repair of damage to their computers that they may have incurred while removing the software.
http://en.wikipedia.org/wiki/Sony_corporation#cite_ref-41
What is this about?
What does it tell you about Sony's response at that stage to the issue of piracy / illegal sharing?
Read more at:
Sony Pictures Entertainment US senior VP Steve Heckler foreshadowed the events of late 2005. Heckler told attendees at the Americas Conference on Information Systems "The industry will take whatever steps it needs to protect itself and protect its revenue streams... It will not lose that revenue stream, no matter what... Sony is going to take aggressive steps to stop this. We will develop technology that transcends the individual user. We will firewall Napster at source - we will block it at your cable company. We will block it at your phone company. We will block it at your ISP. We will firewall it at your PC... These strategies are being aggressively pursued because there is simply too much at stake."
http://en.wikipedia.org/wiki/Sony_BMG_CD_copy_protection_scandal
http://en.wikipedia.org/wiki/Sony_BMG_CD_copy_protection_scandal
think.learn
Sony DRM trouble
What is this about?
What does it tell you about Sony's response at that stage to the issue of piracy / illegal sharing?
Sony Music Entertainment
With the information in this area of the prezi,
think about
how this represents
change
what has enabled this
for Sony
for the consumer
e.g. technology, convergence
change
Independent Music Companies
Marketing Strategies.
audiences
& the music industry
old style media
co-existence of
old style media & uses of new technologies
passive
= push media
= pull media
top-down media
the long tail
innovators
2.5%
laggards
16%
late majority
34%
early majority
34%
early adopters
13.5%
having grown up with digital & online media
do you consume music differently
& are you different as audiences
from earlier generations?
- someone who has grown up with 21st century technology
- a person born during or after the general introduction of digital technology
A digital native
A digital immigrant
- an individual who was born before the existence of digital technology and has adopted it to some extent later in their life.
it's time to
deconstruct
yourself
as a music audience
technologies
means we have
both
push & pull media
web 2.0
What are
the implications
for the music industry
if the download generation
grow old without ever
developing the habit
of paying for music?
around the world in 2006

an estimated 5 billion songs were swapped on peer-to-peer websites [38,000 years of music]

while 509 million were purchased online.

That's 10 "illegal" downloads for every 1 legal download.
At what stage do you get involved with a new technology?

1. Market introduction stage
2. Growth stage
3. Maturity stage
4. Stability or decline stage
10:1
audiences &
lifetime of a technology
the adoption of new technologies
the lifecycle of new technologies
Some innovations (new technologies, new facilities...)
are called
end-user innovations
These are supply-driven or supply-pushed:
it is the manufacturer that thinks of them & creates them.
These are demand-led:
it is the audience that thinks of them & creates them.
manufacturer innovations
Other innovations come about because of the behaviour and creativity of the users:
these are called
e.g.?
e.g.?
broadcast
to a mainstream audience
from elite producers to receptive audiences
Since the innovation & introduction of digital media
broadcasting continues
to mainstream audiences
plus there is opportunity to
narrowcast
to niche audiences
still push media
Some theorists have perceived the audiences of push media as
though audiences have always been more complex than this suggests
digital & online services
allow audiences to be
interactive
the online age and web 2.0
also allow audiences to be
active
means
media content
moves in more than
one direction
consumers
prosumer
use of new media-creation and distribution technologies fosters independent media

many involved in independent media reject mass culture generated by concentrated corporate media
the producer and consumer roles are being combined so as to exclude (or at least diminish) the role of the corporate producer
instead of being just
audiences can now be
producers
of corporate products
of user-generated products
a new term for a new audience
the proliferation of digital channels, digital stations & online music services
means
your niche will be targetted
somewhere
in a case of
http://www.ibisworld.com/pressrelease/pressrelease.aspx?prid=127
fan involvement
fans as promoters
fan loyalty
changes in audience behaviour
consumption habits
purchasing patterns
creativity
production
interactivity
Domino Recording Company
changes
production costs down (cheaper technology)
distribution costs down (new online methods)
market share
the Long Tail
Independents rarely include publishing or manufacturing.
They occasionally run distribution.
They frequently have new media operations.
Some indies are horizontally integrated by having more than one label.
Some indies specialise in licensing existing recordings.
Most deal with their own content and artists.
The bigger indies normally use major label distribution.
Majors sometimes own shares in or invest in indies.
Successful indies are often the targets of takeovers by the majors.
Universal Music Group 27.7pc

Independents 23.9pc

Sony Music 23.1pc

Warner Music 15.3pc

EMI 10pc
2005
2008
2009
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/8371308/Market-share-of-the-music-majors.html
http://en.wikipedia.org/wiki/Music_industry#Albums_sales_and_market_value
http://www.bemuso.com/musicbiz/recordcompaniesandlabels.html
The independent music companies are much smaller than the majors.
They are not part of a larger corporation or conglomerate.
There are several thousand independents in the UK alone.
The indies make about 80% of controlled releases (= albums or tracks).
Together they sell about 25% of recorded music worldwide.
What do these figures tell you about the position of indies in the global music market?
In the age of digital music and online filesharing, what is business like for indies?
Note some of the changes and the responses of the indies as described on pages 162 & 164 of the OCR Media Studies for AS textbook (3rd edition)
Note that this book was published in 2008.
What might be different today?
http://en.wikipedia.org/wiki/Domino_Recording_Company
Note down important details such as
how it started
where it operates now
big names and successes
From the list of former artists, can you find any who moved on to bigger labels?
This may be a regular feature of business for indie companies.
http://dominorecordco.com/
Grab and note down evidence of Domino
using the site to distribute their music
using the site for other revenue streams
enabling consumption of their music
using social networking
encouraging fan loyalty (return traffic to the site)
Study Domino's own site at
Read the history of Domino at
The indies make about 80% of controlled releases (= albums or tracks).
Together they sell about 25% of recorded music worldwide.
The other side of this
is that
the majors with their many labels and artists
make only 20% of the music (controlled releases)
but this adds up to 75% of all sales
A lot of what the majors produce is
mainstream music
Much of what the indies produce is
niche music
music consumed by large numbers of people
music for a mass market
music consumed by smaller numbers of people
music for a more specialised market
Read the case study of Finders Keepers Records on pages 167 to 168 of the OCR Media Studies for AS textbook (3rd edition)
Note the key points under each heading
place in the industry
marketing
distribution
production
the online age
Study their site at
http://www.finderskeepersrecords.com/
Note the ways in which this is
a niche label
targetting niche products
at a niche audience
Indies like Finders Keepers exemplify a phenomenon of Web 2.0 known as
defined by Chris Anderson (2006)
the long tail
the tall head
high volume sales of a small number of products
low volume sales of a vast number of products
http://www.emusic.com/about/index.html
On their site, read about how emusic represent a different form of music distribution.
What do they provide beyond a place for online distribution and exchange?
What niche audience are they targetting?
Are labels even necessary?
The Midnight Beast are a young London band who are a Youtube sensatition, they have millions of fans and have played numerous gigs. However they are not signed to any label. Watch the video to find out more;
How has technology helped the Midnight Beast to achieve their success?
http://www.bbc.co.uk/news/uk-england-london-15461567
Load
your prezi
our prezi (Music Industry blog)
Look back through your prezi for something that has
for the music industry in the last 10 years.

Write it on a note.
Then think of what the industry or the audience have done about it.
changed
a giant leap
look back through
your prezi
and
this prezi
create a new section of your prezi called
audience
use frames and the path tool to
link together everything you have covered that relates to audience
learn some terms for describing audiences
exam questions
Sample question

Discuss the issues raised by institutions’ need to target specific audiences within a media industry which you have studied.

January 2009

Discuss the ways in which media products are produced and distributed to audiences, within a media area which you have studied.

June 2009

How important is technological convergence for institutions and audiences within a media area which you have studied?

January 2010

“Media production is dominated by global institutions, which sell their products and services to national audiences.” To what extent do you agree with this statement?

June 2010

What significance does the continuing development of digital media technology have for media institutions and audiences?

January 2011

Discuss the issues raised by media ownership in the production and exchange of media texts in your chosen media area.

June 2011

“Successful media products depend as much upon marketing and distribution to a specific audience as they do upon good production practices.” To what extent would you agree with this statement, within the media area you have studied?
June 2011

“Successful media products depend as much upon marketing and distribution to a specific audience as they do upon good production practices.”
To what extent would you agree with this statement, within the media area you have studied?
practise with this one:
study
the range of questions
work at
understanding what they are asking for
plan
what points & examples you would include for each question
start with
the hardest-looking question, or the easiest?
come back
in January
with questions
about things you are still unsure of
use your booklet:
exam technique & approaching the questions
contrast
Using music to help sell
a film
or a game
or a game of a film
or a film of a game
or
the parent company is protected if one label fails or performs badly
fan loyalty: fans may discover more music on a label or another label from the same parent company
some artists may fall out with the parent company over issues of artistic control and corporate priorities (profit before music & fans)
some fans may dislike the corporate ethics of big business
possible disadvantages of horizontal integration and the scale of the Big Three majors:
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