Global music recording and distribution businesses

Question 1

The global music industry is

Answer 1

dominated by three very large companies

Together, they make more than 65% of global recorded music sales

Question 2

The three companies

Answer 2

Universal Music Group
Sony Music Entertainment
Warner Music Group

Question 3

Universal Music Group

Answer 3

Universal is the biggest music company in the world

In 2023, it made about 32% of all music sales globally

Head office is in Amsterdam

Owns famous labels like Interscope, Capitol, Republic and Def Jam

Artists include Taylor Swift, Drake, BTS, and Billie Eilish

Question 4

Sony Music Entertainment

Answer 4

It 2023, Sony Music Engtertainment made up about 21% of global music sales

Based in New York

Owns Columbia, RCA and Epic

Artists include Beyoncé, Adele, and Harry Styles

Question 5

Warner Music Group

Answer 5

It 2023, Warner Music Group made around 13% of global music sales

Based in New York

Owns Atlantic, Warner Records and Parlophone

Artists include Ed Sheeran, Dua Lipa, and Cardi B

Question 6

These three companies work with

Answer 6

most of the world’s biggest artists and control many of the rights to their music

This gives them significant power when it comes to selling, promoting and licensing songs

Question 8

The two types of globalisation

Answer 8

Standardisation
Localisation

Question 9

Standardisation

Answer 9

Lots of hit songs sound similar around the world, especially in pop music

English is still the main language used in global hits

Many companies use the same type of marketing and promotion in every country

Question 10

Localisation

Answer 10

Local music styles like K-pop (Korean pop), Afrobeats (West Africa) and Latin reggaeton have become popular around the world

Music companies are now signing local artists and making content that fits different cultures

For example, Universal has started Def Jam Africa and Virgin Music Latin America to support local talent

In India, Sony Music produces music in different local languages and styles

Question 11

Most music is now

Answer 11

shared and sold online using digital platforms.

Question 12

Forms of digital platforms

Answer 12

Streaming services
YouTube
TikTok
Games

Question 13

Streaming services (1)

Spotify is the

Answer 13

biggest music streaming app, with over 515 million users in 2023

Other popular ones include Apple Music, Amazon Music, and Deezer

Question 14

Streaming services (2)

Music companies let

Answer 14

these platforms use their music and then get a share of the money (around 50–55% of what the platform earns)

Artists are paid about $0.003 to $0.005 per stream

Question 15

Streaming services (3)

Artists are

Answer 15

paid about $0.003 to $0.005 per stream

Question 16

YouTube

Answer 16

Over 2 billion people use YouTube every month

Many fans discover new songs through YouTube videos

Music companies earn money from ads and YouTube Music subscriptions

Question 17

TikTok

Answer 17

Increasingly important for making songs go viral

Songs that become popular in short videos can become global hits

Music companies work with TikTok to promote new artists and trends

Question 18

Games

Answer 18

Games like Roblox and Fortnite are used for virtual concerts

Companies like UMG and WMG create interactive events, where fans can join in online

This helps connect with young fans in new ways

Question 19

Music companies now

Answer 19

make money in many different ways, not just by selling CDs or downloads

Question 20

Revenue streams

Answer 20

Streaming royalties
Licensing agreements
Merchandise
Vinyl records and CDs
NFTs

Question 21

Streaming royalties

Answer 21

This is the biggest source of income—about 67% of all recorded music revenue in 2023 (around $18.8 billion)

It comes from paid subscriptions and adverts on services like Spotify

Question 22

Licensing agreements (1)

Music is used in

Answer 22

TV, films, video games, adverts and social media

Music companies sell the rights to use their songs (this is called sync licensing)

These deals can be worth thousands or even millions of dollars, depending on the artist and where the song is used

Question 23

Licensing agreements (2)

They can

Answer 23

launch the careers of new artists as well as revive the careers of established artists

Kate Bush’s “Running Up That Hill”, originally released in 1985, prominently featured in the fourth season of the popular Netflix sci-fi series Stranger Things. It entered the US Billboard Hot 100 at No. 8 in 2022

Question 24

Merchandise

Answer 24

This includes T-shirts, posters and special items with the artist’s name or image

Universal and Warner both have their own merchandise businesses

Beyoncé’s 2023 Renaissance tour merchandise made over $30 million alone

Question 25

Vinyl records and CDs

Answer 25

remain popular in some countries like the UK, Japan and Germany In 2023, vinyl sales reached $1.2 billion, the highest in 40 years

Question 26

NFTs

Answer 26

Some companies are also trying new ideas like NFTs, which are digital collectables, and virtual concerts in the 'metaverse' These new tools help companies earn money in the future and connect with younger fans