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The Music Industry

2015

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The music industry is made up of people and companies who make money by creating and selling music to the general public.

The people involved are musicians who write and perform the music, record companies who create and sell the music as well as managers and booking agents.

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The biggest music shop in the world is the online retailer known as iTunes.

As for the industry itself the 2 biggest companies are Universal Music Group & Sony/ATV

The music industry operates with people taking on different roles to fulfill its business model. They include, songwriters, recording artists, recording companies and retailers.

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The process usually gets started with somebody writing a song or a piece of music known as a composition.

After this first step has been taken, the wheels of the music industry starts to roll.

7 When a song or recording is published, the hired publishing company collects the royalties on behalf of the copyright holder. It is also the job of the publishing company to promote the songs by acquiring song placements on TV & FILM.

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Songs are generally owned by the composer or songwriter, however when a songwriter is hired to write a song for a another party, the ownership of this song is then transferred.

8 Songwriters with the assistance of a record producer and sound engineer produce their recordings in hired out recording studios.

Modern technology however has now made it possible for artists to create their own home studios to carry out this process.

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Recording companies are always on the look out for new talent. Once found, the record company will pay for all costs associated with getting the record out to the general public. The recording artist will then receive a percentage of the music that is sold.

This payment is known as a royalty and varies according to the record sales in question, the greater the success of the record, the greater the royalty cheque.

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Music is sold to the general public in a variety of ways, the most popular being the digital download.

Online platforms such as iTunes have been created to now make it easier for people to purchase music instantly.

Recording artists can also create further income by performing live shows to the general public. In this case a promoter is required to arrange a suitable venue for the particular artist in question. These shows can be a very lucrative money spinner.

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In order to be successful in the music business, it is essential for a recording artists to have their own staff to look after their affairs.

These include an artist manager whose job it is to look after the artists career for a percentage of their earnings.

A business manager is also required for bookeeping and tax duties. For handling contracts with record companies as well as other business deals. an entertainment lawyer is usually employed.

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2015