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Encyclopedia > World music market
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The world music market, or global music market consists of record companies, labels and publishers that distribute recorded music products internationally and that often control the rights to those products. Some music labels are "independent," while others are subsidiaries of larger corporate entities or international media groups. Image File history File links Current_event_marker. ... Image File history File links Nuvola_apps_important. ... The record industry (or recording industry) is the industry that manufactures and distributes mechanical recordings of music. ... This does not adequately cite its references or sources. ... A music publisher deals in the marketing and commercial exploitation of songs. ... For other uses, see Music (disambiguation). ... Copyright symbol Copyright is a set of exclusive rights regulating the use of a particular expression of an idea or information. ... Corporate redirects here. ... A multinational corporation (MNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. ...


The world music market is currently dominated by the "big four" record groups, Sony BMG, EMI, Universal and Warner, each of which consists of many smaller companies and labels serving under different regions and markets. Bertelsmann is a transnational media corporation founded in 1835, based in G tersloh, Germany. ... The EMI Group (LSE: EMI) is an English music company comprising the major record company, EMI Music which operates several labels, based in Brook Green in London, England, and EMI Music Publishing, based on Charing Cross Road, London. ... Universal Music Group (UMG), formerly MCA Music Entertainment Group, is the largest business group and family of record labels in the recording industry. ... Warner Music Group is one of the Big Four record labels. ...

Contents

Terminology and business structure

A record company is an entity that manages sound recording-related brands and trademarks which consist of their owned labels; their owned and licensed master recordings; and various related ancillary businesses such as home video and DVD's. A brand is a customer experience represented by a collection of images and ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme. ... A trademark or trade mark[1] is a distinctive sign of some kind which is used by an individual, business organization or other legal entity to uniquely identify the source of its products and/or services to consumers, and to distinguish its products or services from those of other entities. ...


The music groups coordinate the production, licensing, and copyright protection of sound recordings & videos and maintain contracts with recording artists and production companies as well as provide a distribution structure for their various owned and non-owned labels.


Record labels sign, market, publicize, develop and promote as well as provide sales support to the larger distribution companies for their releases and artists.


Labels may comprise a record group which is, in turn, controlled by a music group. As such, a larger umbrella label may have a number of sub-labels releasing music.


Music publishers exist separately (even if sharing the same ultimate holding company or brand name), and they represent the rights in the compositions - i.e. the music as written rather than as recorded.


Record companies and record labels that are not under the control of the Big Four music groups and music publishers that are not one of the Big Four are generally considered to be independent, even if they are part of large corporations with complex structures. Some prefer to use the term indie label to refer to only those independent labels that adhere to criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.


Reported statistics

World music market shares, according to Nielsen SoundScan (2005)
World music market shares, according to Nielsen SoundScan (2005)

Nielsen SoundScan reported that the big four accounted for 81.87% of the U.S. music market in 2005:[1] Image File history File links WMM-nielsen. ... Image File history File links WMM-nielsen. ...

and in 2004, 72.64%: Universal Music Group (UMG), formerly MCA Music Entertainment Group, is the largest business group and family of record labels in the recording industry. ... Bertelsmann is a transnational media corporation founded in 1835, based in G tersloh, Germany. ... Warner Music Group (WMG) is one of the four major record labels. ... The EMI Group (LSE: EMI) is an English music company comprising the major record company, EMI Music which operates several labels, based in Brook Green in London, England, and EMI Music Publishing, based on Charing Cross Road, London. ...

  • Universal Music Group — 29.59%
  • Sony BMG — 28.46% (13.26% Sony, 15.20% BMG)
  • Warner Music Group — 14.68%
  • EMI Group — 9.91%
  • independent labels — 27.36%
World music market sales shares, according to IFPI (2005)
World music market sales shares, according to IFPI (2005)

The global market was estimated at $30-40 billion in 2004.[2] Total annual unit sales (CDs, music videos, mp3s) in 2004 were 3 billion. Image File history File links WMM-IFPI.svg‎ Summary World music market sales share according to IFPI as of 2005. ... Image File history File links WMM-IFPI.svg‎ Summary World music market sales share according to IFPI as of 2005. ... This article or section does not cite its references or sources. ... A music video is a short film or video that accompanies a complete piece of music, most commonly a song. ... A portable MP3 player MPEG-1 Audio Layer 3, more commonly referred to as MP3, is a popular digital audio encoding, lossy compression format, and algorithm, designed to greatly reduce the amount of data required to represent audio, yet still sound like a faithful reproduction of the original uncompressed audio...


According to an IFPI report published in August 2005,[3] the big four accounted for 71.7% of retail music sales: The International Federation of Phonogram and Videogram Producers (IFPI) is an international record industry organization based in Zurich, Switzerland. ...

  • Universal Music Group — 25.5%
  • Sony BMG Music Entertainment — 21.5%
  • EMI Group — 13.4%
  • Warner Music Group — 11.3%
  • independent labels — 28.4%

Prior to December 1998, the industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", commanding 77.4% of the market, as follows, according to MEI World Report 2000:

  • Universal Music Group including PolyGram — 21.1%
  • Sony Music — 17.4%
  • EMI — 14.1%
  • Warner Music Group — 13.4%
  • BMG — 11.4%
  • independent labels — 22.6%

Albums sales and market value

The following table shows album sales and market value in the world in the 1990s–2000s.

N Country Album Sales Share Share of World Market Value
1 USA 37-40% 30-35%
EU 30-32% 31-34%
2 Japan 9-12% 16-19%
3 UK 7-9% 6.4-9.1%
4 Germany 7-8% 6.4-8.3%
5 France 4.5-5.5% 5.4-6.3%
6 Canada 2.6-3.3% 1.9-2.8%
7 Australia 1.5-1.8% 1.5-2.0%
8 Brazil 2.0-3.8% 1.1-3.1%
9 Italy 1.7-2.0% 1.5-2.0%
10 Spain 1.7-2.3% 1.4-1.8%
11 Netherlands 1.2-1.8% 1.3-1.8%
12 Mexico 2.1-4.6% 0.8-1.8%
13 Belgium 0.7-0.8% 0.8-1.2%
14 Switzerland 0.75-0.9% 0.8-1.1%
15 Austria 0.5-0.7% 0.8-1.0%
16 Sweden 0.7-0.9% 0.7-1.0%
17 Russia 2.0-2.9% 0.5-1.4%
18 Taiwan 0.9-1.6% 0.5-1.1%
19 Argentina 0.5-0.7% 0.5-1.0%
20 Denmark 0.45-0.65% 0.5-0.8%

Singles sales

Physical single sales in the world in the 90s-00s and digital single sales in 2005.

N Country Physical Sales Share Digital Sales Share in 2005
EU 34-50% 13.2%
1 Japan 26-32% 1.7%
2 USA 4-25% 85%
3 UK 14.5-16% 6.3%
4 Germany 9-12% 5%
5 France 4-12.5% 1.9%
6 Australia 1.8-4.6% 0.48%
7 Netherlands 1.3-1.7% < 0.2%
8 Belgium 0.8-1.8% < 0.2%
9 Sweden 0.6-0.96% < 0.2%
10 Switzerland 0.5-0.92% < 0.2%
11 Austria 0.58-0.82% < 0.2%
12 Italy 0.3-1.0% < 0.2%
13 Spain 0.3-0.7% < 0.2%
14 Norway 0.3-0.47% < 0.2%
15 Ireland 0.2-0.5% < 0.2%
16 Canada 0.1-0.6% < 0.2%
17 Portugal 0.01-1.0% < 0.2%
18 RSA 0.02-0.45% < 0.1%
19 New Zealand 0.19-0.29% < 0.1%
20 Denmark 0.10-0.25% < 0.1%

Recorded Music Interim Physical Retail Sales in 2005

all figures in millions

UNITS VALUE CHANGE
Singles CD DVD Total Units $US Local Currency Units Value
1 USA 14.7 300.5 11.6 326.8 4783.2 4783.2 -5.70% -5.30%
2 Japan 28.5 93.7 8.5 113.5 2258.2 239759 -6.90% -9.20%
3 UK 24.3 66.8 2.9 74.8 1248.5 666.7 -1.70% -4.00%
4 Germany 8.5 58.7 4.4 71 887.7 689.7 -7.70% -5.80%
5 France 11.5 47.3 4.5 56.9 861.1 669.1 7.50% -2.70%
6 Italy 0.5 14.7 0.7 17 278 216 -8.40% -12.30%
7 Canada 0.1 20.8 1.5 22.3 262.9 325 0.70% -4.60%
8 Australia 3.6 14.5 1.5 17.2 259.6 335.9 -22.90% -11.80%
9 Spain 1 17.5 1.1 19.1 231.6 180 -13.40% -15.70%
10 Netherlands 1.2 8.7 1.9 11.1 190.3 147.9 -31.30% -19.80%
11 Russia - 25.5 0.1 42.7 187.9 5234.7 -9.40% 21.20%
12 Mexico 0.1 33.4 0.8 34.6 187.9 2082.3 44.00% 21.50%
13 Brazil 0.01 17.6 2.4 24 151.7 390.3 -20.40% -16.50%
14 Austria 0.6 4.5 0.2 5 120.5 93.6 -1.50% -9.60%
15 Switzerland ** 0.8 7.1 0.2 7.8 115.8 139.2 n/a n/a
16 Belgium 1.4 6.7 0.5 7.7 115.4 89.7 -13.80% -8.90%
17 Norway 0.3 4.5 0.1 4.8 103.4 655.6 -19.70% -10.40%
18 Sweden 0.6 6.6 0.2 7.2 98.5 701.1 -29.00% -20.30%
19 India - 10.9 - 55.3 79.2 3456.6 -19.20% -2.40%
20 Denmark 0.1 4 0.1 4.2 73.1 423.5 3.70% -4.20%
Top 20 74.5 757.1 42.8 915.2 12378.7 -6.60% -6.30%

Miscellaneous

In its June 30, 2000 annual report filed with the SEC, Seagram reported that Universal Music Group was responsible for 40% of worldwide classical music sales over the preceding year.[4] June 30 is the 181st day of the year (182nd in leap years) in the Gregorian calendar, with 184 days remaining. ... 2000 (MM) was a leap year starting on Saturday of the Gregorian calendar. ... The Securities and Exchange Commission, commonly referred to as the SEC, is the United States governing body which has primary responsibility for overseeing the regulation of the securities industry. ... Classical music is a broad, somewhat imprecise term, referring to music produced in, or rooted in the traditions of, European art, ecclesiastical and concert music, encompassing a broad period from roughly 1000 to the present day. ...


References

  1. ^ Paul Cashmere (2006-01-05). Universal Is The Biggest Music Company of 2005. Undercover (Australia). Retrieved on May 27, 2006.
  2. ^ According to the RIAA the world music market is estimated at $40 billion, but according to IFPI (2004) it is estimated at $32 billion.
  3. ^ http://www.ifpi.org/site-content/publications/rin_order.html
  4. ^ http://www.secinfo.com/dsvr4.58n4.htm#445

http://www.ifpi.org/content/section_news/20050802.html (updated link for reference 3) For the Manfred Mann album, see 2006 (album). ... January 5 is the 5th day of the year in the Gregorian calendar. ... May 27 is the 147th day (148th in leap years) of the year in the Gregorian calendar, with 218 days remaining. ... For the Manfred Mann album, see 2006 (album). ...


See also

This is a list of record labels. ... This is the list of best selling music artists (including groups) worldwide, alltime. ...

External links


 
 

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