How the Big 4 Music Publishing Companies Became the Big 3?

How the Big 4 Music Publishing Companies Became the Big 3?

If you are into music, you would know about the hundreds of record companies spread throughout the globe. New record labels are formed to appeal to specific demographics and musical genres every day.

However, the universal roost is ruled by just three large record firms. EMI used to be one of the chief dogs, but in 2012, Universal Music bought it through acquisition. So, where the Big Four once reigned supremacy, the Big Three now rule.

The Big Three Below are the three of the world's most prominent record labels: 1. Song BMG 2. Warner Music Group 3. Universal Music Group These labels are estimated to cover 80% of the market share in the music publishing industry.

However, the actual numbers can vary from year to year. The share of the big three in the music publishing industry was two-thirds in 2017.

How these Music Publishing Companies Impact the Artists Artists affiliated with one of these big record labels are either signed to the main label or a subsidiary. For instance, a solo artist or a band can be signed to Sony or Columbia Records, a Sony subsidiary. These subsidiary labels employ their own personnel, contract their own artists, and make the majority of their own financial choices, but they must ultimately report to their parent firm. The "central" company establishes its overall budget and takes measures such as redundancies and cutbacks.

The subsidiary may be forced to shut down due to unsatisfactory results. Its artists would subsequently be divided among the big label's various subsidiaries. In this regard, a big label's hierarchical structure can be surprisingly complex, and it can vary quite a bit from label to label.

Indie labels are periodically offered distribution by these Big Three record labels. Under these agreements, the major label sells the indie releases to retailers and their own releases. Still, they have no power over what albums the indie releases or how it administers its label.

Controversy Over the Big Four In 2012, Universal Music indicated an interest in buying EMI and made a $1.9 billion bid. On June 14, consumer advocacy groups produced a report urging the government to cancel the

takeover, claiming that it would lead to severe problems within the publishing industry. They believed that this new superpower would wreak havoc on pricing, costing buyers a considerable amount of money.

The problem became the subject of a congressional hearing, and it was also investigated by European authorities. After months of deliberation, the American and European regulators authorized the acquisition of EMI to Universal Music Group. The Beatles, Pink Floyd, Lady Gaga, and Kanye West were among the artists whose work was made available to Universal Music. The deal shifted the industry dramatically, concentrating power in the hands of the Big Three and altering the business structure.

The Big Three currently rules over the majority of the music industry. In order to regain control over their creations and careers, some artists transferred to smaller independent labels or chose to self-publish.

What Does a Music Publishing Company Do? A music publishing company works for musicians that have already made a name for themselves in the music industry, with proven track records of top sales and recognition.

Although publishers secure your publishing rights, keep in mind that you can handle most of the duties of a music publisher yourself, at least until you're inundated with license requests, sync deals, and print discussions.

Music publishers have become almost imperative when it comes to breaking into the overseas music industry.

When it comes to dealing with the ins and outs of other countries' music publishing companies and disparities in rules and regulations in other overseas countries, it is not ideal to go it alone.

Going Alone Ain't Dangerous!

Do not be concerned if you are unable to secure a publication deal right now. When an artist has a back history of content to collect royalties on, publishers become more relevant to them later in their careers.

If you can't find a publisher, at least you won't have to give them a share, which is often 25%.

(But it can be a fair deal if your leverage or dealmaking is weak).

You may find some things more difficult on your own, but you'll have complete control over the publication process if you go alone.

Also, don't expect a publisher to proactively push your work in the same manner that a record label would. They advertise you subtly, but their overall purpose is to manage your music, collect royalties, and assist you with licensing and distribution, not to make you famous.

They'll have a lot of connections in the industry, but they're not there to make you a star overnight.