June 26, 2022
music industry
music industry

To understand the dynamics of the music industry, it is first necessary to recognize that the music industry is not one but several closely related but at the same time based on different logics and foundations. rescue. The overall music industry is based on the creation and exploitation of music-based intellectual property. Composers and composers create songs, lyrics, and arrangements that are performed live on stage. It is recorded and distributed to consumers. Licenses for other kinds of use, for example as background music for sheet music or other media (advertisements, television, etc.). This basic structure gave rise to three key music industries. Music Licensing Industry – Mainly granting composing and arranging licenses to companies. Live Music – Emphasis on the production and promotion of live entertainment such as concerts, tours, etc. However, while they are important industrial sectors, they are not traditionally considered an integral part of the industrial core.

In the pre-Internet music industry, recorded music was the largest and highest-grossing of the three. Most people who dream of becoming artists and bands in the traditional music industry have dreamed of signing with a record label. The agreement meant that the record label would fund professional studio recordings and allow artists to enter the record label’s international distribution system. The second music industry segment, music licensing, was much smaller and more mundane than the recorded music industry segment. The record producers running this business were a B2B industry with no direct interaction with the audience.

Their main responsibility was to collect license fees when songs were used under certain circumstances and to ensure that these fees were subsequently distributed fairly among songwriters and songwriters. The third music industry segment, live music, generated revenue from concert ticket sales. Live music has a long and proud history, but in the 20th century it became the second violin in the recording industry. Record sales were undoubtedly the most important source of revenue, and record labels generally viewed concert tours as a way to promote their studio albums, and paid little attention to whether tours were profitable or not. Sometimes they even got tour support from the record label, allowing the band to tour and promote their albums even though the actual tour was running at a loss.