Analysis of the Music Industry

30024 Words Jun 5th, 2008 121 Pages
Music may be defined romantically as `the food of love ' (Shakespeare) or more prosaically as `sound with particular characteristics ' (Wikipedia), but it is undeniably a `vibrant artform ' (Arts Council England) and one which touches more people, in more ways, than any other art form.
In commercial terms, music certainly generates a higher market value than the other arts, although a comprehensive market size for music in all its manifestations is impossible to calculate. Key Note has put a value of £3.03bn on consumer spending on music in 2005, derived from three sectors: recorded music (which accounts for the bulk of the market), live music and musical instruments. However, data for other related markets are included, such as
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Each chapter of the report starts with more detailed definitions and coverage.
For coverage of recorded music, Key Note is grateful to the statistics and commentary provided by the British Phonographic Industry (BPI), detailed later in this chapter under Key Trade Associations. For other sectors, an important component of the report is the field research into the attitudes and buying habits of UK consumers with regard to music, conducted for Key Note by NEMS Market Research specifically for this report.
Report Background
This is the first edition of a Market Review of the Music Industry published by Key Note. Although coverage is targeted mainly at the UK market, the global aspects of the music industry are given full acknowledgment. In particular, it is recorded music — by far the largest market by value — that has evolved a global structure. Since 2004, it has featured just four `majors ' owning dozens of famous labels and holding recording contracts (or back catalogues) for the vast majority of the world 's top-selling recording artists.
The `big four ' major groups, including the UK 's own `home-grown ' giant, EMI Group PLC, also own rights to publish and to license the majority of successful songs, theme music, etc. These rights are increasingly important as the market moves towards a more fluid, ICT (information and communications technology)