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Terminology and business structure
The term "record label" when referring to the Big Four is a misnomer, as they are actually corporate umbrella organizations called business groups. A music group is a business group consisting of music related companies, and is typically owned by an international conglomerate holding company, which often has non-music divisions as well. A music group controls and consists of music publishing companies, record (sound recording) manufacturers, record distributors, and record labels. A record label is a company that manages sound recording-related brands and trademarks (both of which are also called labels); coordinates the production, marketing, licensing, and copyright protection of sound recordings and videos; and maintains contracts with recording artists and their managers. Record companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music group.
Record companies and music publishers that are not under the control of the Big Four are generally considered to be independent, even if they are large corporations with complex structures. Some prefer to use the term indie label to refer to only those independent labels that adhere to an arbitrary, ill-defined criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.
Reported statistics
The global market was estimated at $30-40 billion in 2004.[1] Total annual unit sales (CDs, music videos, mp3s) in 2004 were 3 billion.
According to an IFPI report published in August 2005[2], the big four accounted for the following percentages of retail music sales:
- Universal Music Group (France/USA based) — 25.5%
- Sony BMG Music Entertainment (Japan/Germany based) — 21.5%
- EMI Group (UK based) — 13.4%
- Warner Music Group (USA based) — 11.3%
- independent labels — 28.4%
Prior to December 1998, the industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", as follows, according to MEI World Report 2000:
- Universal Music Group including PolyGram — 21.1%
- Sony Music — 17.4%
- EMI — 14.1%
- Warner Music Group — 13.4%
- BMG — 11.4%
- independent labels — 22.6%
In 1918, worldwide sales of phonograph/gramophone records were estimated at 100 million units.
Albums sales and market value
The following table shows album sales and market value in the world in the 1990s–2000s,
| N | Country | Album Sales Share | Share of World Market |
|---|---|---|---|
| 1 | USA | 37-40% | 30-35% |
| EU | 30-32% | 31-34% | |
| 2 | Japan | 9-12% | 16-19% |
| 3 | UK | 7-9% | 6.4-9.1% |
| 4 | Germany | 7-8% | 6.4-8.3% |
| 5 | France | 4.5-5.5% | 5.4-6.3% |
| 6 | Canada | 2.6-3.3% | 1.9-2.8% |
| 7 | Australia | 1.5-1.8% | 1.5-2.0% |
| 8 | Brazil | 2.0-3.8% | 1.1-3.1% |
| 9 | Italy | 1.7-2.0% | 1.5-2.0% |
| 10 | Spain | 1.7-2.3% | 1.4-1.8% |
| 11 | Netherlands | 1.2-1.8% | 1.3-1.8% |
| 12 | Mexico | 2.1-4.6% | 0.8-1.8% |
| 13 | Belgium | 0.7-0.8% | 0.8-1.2% |
| 14 | Switzerland | 0.75-0.9% | 0.8-1.1% |
| 15 | Austria | 0.5-0.7% | 0.8-1.0% |
| 16 | Sweden | 0.7-0.9% | 0.7-1.0% |
| 17 | Russia | 2.0-2.9% | 0.5-1.4% |
| 18 | Taiwan | 0.9-1.6% | 0.5-1.1% |
| 19 | Argentina | 0.5-0.7% | 0.5-1.0% |
| 20 | Denmark | 0.45-0.65% | 0.5-0.8% |
Singles sales
Physical single sales in the world in the 90s-00s and digital single sales in 2005.
| N | Country | Physical Sales Share | Digital Sales Share in 2005 |
|---|---|---|---|
| EU | 34-50% | 13.2% | |
| 1 | Japan | 26-32% | 1.7% |
| 2 | USA | 4-25% | 85% |
| 3 | UK | 14,5-16% | 6.3% |
| 4 | Germany | 9-12% | 5% |
| 5 | France | 4-12.5% | 1.9% |
| 6 | Australia | 1.8-4.6% | 0.48% |
| 7 | Netherlands | 1.3-1.7% | < 0.2% |
| 8 | Belgium | 0.8-1.8% | < 0.2% |
| 9 | Sweden | 0.6-0.96% | < 0.2% |
| 10 | Switzerland | 0.5-0.92% | < 0.2% |
| 11 | Austria | 0.58-0.82% | < 0.2% |
| 12 | Italy | 0.3-1.0% | < 0.2% |
| 13 | Spain | 0.3-0.7% | < 0.2% |
| 14 | Norway | 0.3-0.47% | < 0.2% |
| 15 | Ireland | 0.2-0.5% | < 0.2% |
| 16 | Canada | 0.1-0.6% | < 0.2% |
| 17 | Portugal | 0.01-1.0% | < 0.2% |
| 18 | RSA | 0.02-0.45% | < 0.1% |
| 19 | New Zealand | 0.19-0.29% | < 0.1% |
| 20 | Denmark | 0.10-0.25% | < 0.1% |
Recorded Music Interim Physical Retail Sales in 2005
all figures in millions
| UNITS | VALUE | CHANGE | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Singles | CD | DVD | Total Units | $US | Local Currency | Units | Value | ||
| 1 | USA | 3.3 | 300.5 | 11.6 | 326.8 | 4783.2 | 4783.2 | -5.70% | -5.30% |
| 2 | Japan | 28.5 | 93.7 | 8.5 | 113.5 | 2258.2 | 239759 | -6.90% | -9.20% |
| 3 | UK | 13.3 | 66.8 | 2.9 | 74.8 | 1248.5 | 666.7 | -1.70% | -4.00% |
| 4 | Germany | 8.5 | 58.7 | 4.4 | 71 | 887.7 | 689.7 | -7.70% | -5.80% |
| 5 | France | 11.5 | 47.3 | 4.5 | 56.9 | 861.1 | 669.1 | 7.50% | -2.70% |
| 6 | Italy | 0.5 | 14.7 | 0.7 | 17 | 278 | 216 | -8.40% | -12.30% |
| 7 | Canada | 0.1 | 20.8 | 1.5 | 22.3 | 262.9 | 325 | 0.70% | -4.60% |
| 8 | Australia | 3.6 | 14.5 | 1.5 | 17.2 | 259.6 | 335.9 | -22.90% | -11.80% |
| 9 | Spain | 1 | 17.5 | 1.1 | 19.1 | 231.6 | 180 | -13.40% | -15.70% |
| 10 | Netherlands | 1.2 | 8.7 | 1.9 | 11.1 | 190.3 | 147.9 | -31.30% | -19.80% |
| 11 | Russia | - | 25.5 | 0.1 | 42.7 | 187.9 | 5234.7 | -9.40% | 21.20% |
| 12 | Mexico | 0.1 | 33.4 | 0.8 | 34.6 | 187.9 | 2082.3 | 44.00% | 21.50% |
| 13 | Brazil | 0.01 | 17.6 | 2.4 | 24 | 151.7 | 390.3 | -20.40% | -16.50% |
| 14 | Austria | 0.6 | 4.5 | 0.2 | 5 | 120.5 | 93.6 | -1.50% | -9.60% |
| 15 | Switzerland ** | 0.8 | 7.1 | 0.2 | 7.8 | 115.8 | 139.2 | n/a | n/a |
| 16 | Belgium | 1.4 | 6.7 | 0.5 | 7.7 | 115.4 | 89.7 | -13.80% | -8.90% |
| 17 | Norway | 0.3 | 4.5 | 0.1 | 4.8 | 103.4 | 655.6 | -19.70% | -10.40% |
| 18 | Sweden | 0.6 | 6.6 | 0.2 | 7.2 | 98.5 | 701.1 | -29.00% | -20.30% |
| 19 | India | - | 10.9 | - | 55.3 | 79.2 | 3456.6 | -19.20% | -2.40% |
| 20 | Denmark | 0.1 | 4 | 0.1 | 4.2 | 73.1 | 423.5 | 3.70% | -4.20% |
| Top 20 | 74.5 | 757.1 | 42.8 | 915.2 | 12378.7 | -6.60% | -6.30% | ||
Miscellaneous
In its June 30, 2000 annual report filed with the SEC, Seagram reported that Universal Music Group was responsible for 40% of worldwide classical music sales over the preceding year.[3]
References
- ^ According to the RIAA the world music market is estimated at $40 billion, according to IFPI (2004) it is estimated at $32 billion.
- ^ http://www.ifpi.org/site-content/publications/rin_order.html
- ^ http://www.secinfo.com/dsvr4.58n4.htm#445
External links
- http://www.move.de/amm/ECON.htm - CD-Markets size in 1996
- http://www.zobbel.de/ - World records sales in years 1994/95/97/98.
- http://www.ifpi.org/site-content/publications/rin_order.html - 2005 Market Share
Category: Music industry
