Industry Analysis: Music Industry; Recording

Question 1: What are the intentness?s dominant frugal features?This industry comprises establishments primarily engaged in record mathematical product (e.g., tapes, CDs). These establishments contract with artists and arrange and finance the production of original exceed enters. Establishments in this industry hold the copyright to the master recording and derive most of their revenues from the sales, leasing, and licensing of master recordings. The music industry is one and only(a) in which a five major companies have enjoyed exclusivity for wellhead-nigh time now. The current macro-environment is one that is filled with differing technologies that are wreaking mayhem with the business models of these five major record labels in the industry.

In terms of market size; the US recording industry revenue fell by $11 billion in 2006, down 25% from a 1999 peak of $14.6 billion, according to northern Group. The rise of digital music will compensate around for this loss, r each(prenominal)ing $5.34 billion by 2012, up from $1.98 billion at the end of 2007. Additionally, California and New York account for 53% of revenues for this industry, where the volume of the entertainment business is located. In terms of revenue per employee: $212,769, well above the average earnings of employees in other sectors of the economy. (Serpick, 2007)(Yankee Group, 2008)There are currently five major labels competing in this market, along with an much(prenominal) number of independent labels.



The five majors are: BMG Entertainment, EMI, Sony harmony Entertainment, Warner Music Group, and Universal Music Group. The record companies are basically interdependent, when one company makes a move; it generally ?forces? a response from its rivals. Rivalry increases as companies attempt to undercut each other?s prices or offer customers more measure in their products, pushing industry profits down in the process.

The x factor in the recording industry was that of net income access in which...

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