Music Industry in India is one of the oldest and has had the repute of being one of the strongest constituents of the amusement sector in India. However, in the aftermath of the new age, the industry has undergone a sea alteration. With the outgrowth of new media and convergence of media, newer gross watercourses need to be taken into consideration to truly specify the length and comprehensiveness of the music industry. With the increasing Personal computer incursion, the cyberspace is expected to go a important influence in the purchase of music.
The music industry is a huge entity and over the old ages it has witnessed important alterations. The potency of the Indian music industry can be better understood from its size estimated at around US $ 182.9 million in 2010, up from US $ 160.9 million in 2008, portraying a growing of 14 per cent during the coverage period. It is expected to turn at a CAGR of 16 per cent over 2010-14 to make US $ 379.1 million.
Consumers spend chiefly on the undermentioned foreparts in the music sector
Grosss from physical gross revenues of cassettes and Cadmiums through distributers and retail merchants every bit good as modern retail and on-line gross revenues.
Mobile Value Added Service that is sale of music for pealing tones, vocals, CRBT ( company pealing back tone ) and other value-added Mobile services.
Radio Stationss that pay royalty for the content played, a portion of which comes to the music company.
Online downloads, sale of music through cyberspace and public public presentation where royalty is paid by event organisers for the usage of music in their events.
Record Labels Industry and their working
In theA music industry, aA record labelA is aA brandA and aA trademarkA associated with theA marketingA ofA music recordingsA andA music picture. Most normally, a record label is theA companyA that manages such trade names and hallmarks, co-ordinates theA production, A industry, A distribution, selling and publicity, and enforcement ofA copyrightA protection of sound recordings and music picture ; conducts talent exploratory survey and development of new creative persons and maintainsA contractsA with entering creative persons and their directors.
In today ‘s economic system, most big record companies are really immense pudding stones that own a assortment of subordinate record labels. Often, the subordinate labels are each mini-companies runing under the umbrella of the larger corporation. The assorted departments/ caputs in the large Record Label Companies are: –
A & A ; R ( Artist and Repertoire ) : – It deals with detecting new endowment. They do everything from helping with song choice to taking people for production.
Artists Development: – This section is responsible for be aftering the callings of the creative persons who are signed to the record label. It promotes and publicizes the creative persons over the class of their calling.
Business Affairs: – This section deals with the concern side of things. It takes attention of clerking, paysheet and general fundss.
Label Liaison: – This is normally one individual, or little group of people, who serves as the affair between the record company ‘s distributions company ( either an wholly separate division under the immense corporate umbrella or an outside company responsible for acquiring the CDs into the shops ) and the record company.
Marketing Department: – This section creates the overall selling program for every album that the record company will let go of. It helps organize the programs of the publicity, gross revenues and promotion sections.
Publicity Department: – This group is responsible for acquiring the word out about a new or established creative person. It arranges for articles to be written in newspapers and magazines. They besides deal withA radioA andA televisionA coverage of an creative person.
Gross saless: – This section oversees the retail facet of the record concern. It works with the record shop ironss and other music shops to acquire new albums onto retail merchants ‘ shelves. The gross revenues section frequently coordinates these attempts with the publicity and promotion sections.
Number of participants in the industry
The music industry in India is different from the music industry in any other portion of the world.A The ground for this is the close ties the Indian music concern has with the Indian movie industry. The Indian music market is little in footings of the planetary market and portion of the ground for this is that merely about half of the gross reported comes from legitimate tax- paying companies. The remainder comes from little mills that mass-produce old and new albums for which they do n’t have the rights.
The major Record Label companies are: –
Saregama India Ltd. ( HMV )
Universal Music ( India )
Tips Industries Ltd.
Blue Frog Production
Venus Industries Ltd.
Sony BMG Music Entertainment ( India )
Crescendo Industries Ltd.
Virgin Records
Magnasound Music
Timess Music
Operations/Billings/ Grosss
Production of Music: – Music production in India is either movie music or non-film music. The most dominant portion of the Indian Music Industry is movie. On an norm a movie ‘s music has a shelf life of 6-8 months depending on its popularity.
Typically, the physical and digital rights of music are auctioned or sold to the music company for a negotiated clip period. Three chief theoretical accounts are followed to sell music rights:
Outright Sale – In this instance the movie manufacturer does non gain any farther royalties, as music becomes a belongings of the music company
Minimum Guarantee and Royalty-based gross sharing
Merely Royalty – In this instance merely royalty is shared and no upfront money is given
Distribution of music: – Distribution takes topographic point in three varied but incorporate ways to make the consumer:
Direct Gross saless
Mobile Gross saless
Radio
Direct Gross saless: The music company produces physical formats of music in signifiers of Cadmiums and Cassettes, which reach the retail merchants through the distributor/dealer webs. These retail merchants are both organized and un-organized. The un-organized retail merchants are little stores in metropoliss, which might be dedicated to music goods or section shops, stacking all family points. In recent times, the organized retail merchants in signifiers of dedicated, atmosphere making music shops have merged in the state.
Digital, Mobile Gross saless: The music company sells the digital rights to content collectors, who further convert the music into digital formats. These digital formats are downloaded by the consumer. These formats are besides sold to telecom operators, which the consumer bargains in signifiers of nomadic downloads of ringtones, dialer tones, etc.
Radio: Radio broadcasters buy rights either straight from the manufacturer, the music company or in association with the music company and industry associations. The broadcasters in bend wage royalties to the manufacturers on a per hr of music played footing.
Key tendencies and Future Prospects
Number of Hindi Movie music units ( cassettes and CD ‘s ) is on the lessening.
A spiralling diminution in grosss because of addition in buccaneering.
Over the last few old ages, the industry besides witnessed the rapid rise of remixes, or cover versions and music pictures of original sound path.
Future growing is likely to come from non-physical formats like digital downloads, royalty income and ringtones, among others
Industry experts said the music concern is poised to go the fastest turning section in the Indian media and amusement industry over the following five old ages, and most of this growing will be on the dorsum of content being available digitally.
A greater figure of affiliations between music companies and telecommunication companies to do music digitally available O as many people as possible.
Radio developing as the landscape of music hearing.
Live music concerts and music endowment shows deriving greater popularity.
Market Leaderships
Some of the major participants in the Record Label Industry are: –
Saregama India Ltd: –
India ‘s largest music entering company
Once known as the Gramophone Company of India
Has its registered office in Kolkata
Part of the RPG Group
Owns about 50 % of all the music of all time recorded in India
Universal Music India: –
Music company located in Mumbai
Subsidiary of Universal Music Group, the largest music company in the universe
Leader in both International and Indian music encompassing a huge array of creative persons covering the full spectrum of music around the universe
Tips Industries Ltd: –
Music company based in Mumbai
Owns more than 3,500 rubrics and holds soundtrack rights to more than 50 Hindi films
Other concern countries: films, creative person direction & A ; distribution
UNIVERSAL MUSIC GROUP
An debut
The music industry worldwide is dominated by the ‘big four ‘ of music – Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI. Amongst these, Universal Music Group ( UMG ) is the universe ‘s prima music company.
Once attached to the movie studio – Universal Pictures, UMG ‘s beginnings can be traced back to formation of Decca Records in 1934. MCA Inc. bought Decca in 1962. The present organisation was formed when Seagram purchased Polygram and merged it with Universal Music Group in 1998. In 2006, UMG became 100 % owned by Gallic media group Vivendi SA, who are its present proprietors.
UMG is comprised of two nucleus concerns: recorded music and music publication. The company discovers, develops, markets and distributes recorded music through a web of subordinates, joint ventures and licensees in 77 states including India. UMG besides sells and distributes music picture and DVD merchandises, and licenses recordings, promoting the legal distribution of music online and over cellular, overseas telegram and orbiter webs.
Record Labels – UMG ‘s bequest of music flows from a diverse household of record labels which include: Cosmopolitan Music India ( UMI ) , A & A ; M/Octone, Interscope Geffen A & A ; M Records, Island Def Jam Music Group, Machete Music, Universal Music Latino, Verve Music Group, etc.
Artist Roster – UMG ‘s roll is comprised of creative persons from all around the universe, doing UMG the leader in both international and local repertory. Artists signed to UMG throughout the universe include – Black Eyed peas, Maroon 5, 3 Doors Down, Rihanna, Lady Gaga, Elton John, etc. And in India – Shankar Mahadevan, Mohit Chauhan, Bhoomi, Raeth, Raghav, Bombay Vikings, Mehsopuria, Ali Zafar, Asha Bhosle, Pankaj Udhas, Anup Jalota, and Falguni Pathak.
Classical & A ; Jazz Repertoire, Broadway and Film Scores – UMG is the market leader in the classical music market. Universal Music includes the universe ‘s prima Broadway catalogue and modern-day recordings under the Decca Broadway label with rubrics such as Mamma Mia! , Jumping Awakening, Evita, Les Miserables, Phantom of the Opera, etc. Universal Music is besides responsible for the success of legion original Soundtracks including The Aviator, Gladiator, Pulp Fiction, and Mamma Mia! every bit good as such Oscar-winning tonss as John Williams ‘ Schindler ‘s List, Gustavo Santaolalla ‘s Brokeback Mountain, and A.R. Rahman ‘s Slumdog Millionaire.
UMG has besides entered the burgeoning concern of classical creative person direction and production with Universal Music Classical Management and Productions ( UMCMP ) . The company develops callings, creates distinctive unrecorded events and physiques durable trade names within the classical music field.
UMG owns the universe ‘s largest wind entering company, The Verve Music Group.
Universal Chronicles – the unit that manages and markets UMG ‘s extended catalogue through retail channels.
UTV Records – the telecasting selling unit.
Hip-O Records – its independent label that releases Cadmiums and DVDs from outside beginnings.
New Door Records – a label dedicated to bring forthing new music from historically important entering creative persons whose catalogue is controlled by UMG labels like Queen.
UMe Digital – the first all digital label from a major music company.
Universal Music Media – a company that produces informercials and long signifier music scheduling.
Universal Music Special Markets and Universal Film & A ; Television Music.
Music Publishing – Universal Music Publishing Group ( UMPG ) is the industry ‘s largest planetary music publication operation. UMPG represents music in every genre from some of the universe ‘s hottest songsters and catalogues including Abba, Adele, Christina Aguilera, Lily Allen, Mariah Carey, Eminem, Jimi Hendrix, Elton John, Avril Lavigne, Linkin Park, Britney Spears, 3 Doors Down, Justin Timberlake, T-Pain, and U2, among many others. UMPG is besides a planetary leader in the countries of Production Music, Christian and Classical Music.
Bravado – Bravado, the lone planetary, 360A° full service ware company, develops and markets high-quality accredited ware to a world-wide audience. The company works closely with new & A ; established amusement clients, making advanced merchandises carefully tailored to each creative person or trade name. Merchandise is sold on unrecorded Tourss, via selected retail mercantile establishments and through web-based shops.
Artist Services – Universal Music Group besides includes some of the universe ‘s prima full-service creative person direction concerns, including Twenty-first Artists, Trinifold, and 5B. Its unrecorded music and event production divisions, responsible for booking and showing endowment throughout the universe, include All the Worlds.
UNIVERSAL MUSIC INDIA
Universal Music India Pvt. Ltd ( UMIPL ) is a subordinate of Universal Music Group ( UMG ) , which leads the music industry in planetary gross revenues with an estimated worldwide market portion in 2004 of 24.7 % .
Its primary services include, release and distribution of music albums and nomadic downloads.
Identify 7Ps for the chosen company and how it compares across rivals, lucubrate on how ambitious it is for the company to explicate the 7Ps given the extent of its intangibleness, inseparability, variableness and heterogeneousness.
PRODUCT – The services available by UMG can be loosely divided into three sections.
Albums and Artists – The service offering here are all creative persons scouted, managed and promoted by UMG and all albums recorded and released. It besides includes affiliation with creative persons as music publishing houses.
Selling and distribution – UMG has several divisions that look into all facets of selling and distributing music and its subordinate services. For illustration – in store-retailing, promotional runs, selling, etc.
Artists and Music Management – It besides manages its creative persons – with a particular division for classical music artists – for their calling planning and selling.
PLACE – 1. In-store – UMI music albums and ware are available in all prima music shops across 77 states in the universe.
2. On-line – Music albums and pictures can be bought online on several associate web sites.
3. Mobile – Ringtone and callertune downloads of UMG music is provided by several nomadic web suppliers. It is besides available with Spotify ‘s iPhone application and MusicStation on Android.
4. Launchs and live-shows – As UMG besides manages its creative persons, all album launches and live-shows and music Tourss are besides controlled by them.
PROMOTION – 1. With its turning list of today ‘s most popular creative persons and with a immature audience in head, UMG ‘s most popular promotional agencies is digital – online and Mobile. Its website offers extended information about all approaching launches and includes short sound and video cartridge holders of its presently released albums. Other than the web site, UMG ‘s on-line presence is dominated by societal networking agencies like Myspace Music, Facebook, Youtube and Twitter.
2. Commercials of UMG albums are previewed on popular GEC and music channels. The company besides enters affiliations with music channels to have its creative persons ‘ music.
3. Print Media – Ads of freshly released albums and advertorials of creative persons from the house of UMG are a common characteristic in taking dailies across the universe and in magazines like Rolling Stones.
4. Artists ‘ events – UMG holds several promotional events for its albums and creative persons like album launch in music shops, affiliations with world shows to have a freshly released creative person, etc.
5. Promotional music Tourss.
6. Affiliation with nomadic service suppliers to advance music albums and creative persons as callertunes or ringtones.
7. Outdoor – Promotional billboards and panels of new album released and concerts to be held.
PRICE – In India, CDs and DVDs start Rs. 99 onwards
Mobile downloads are as per service supplier.
Concert pricing is really artist and venue particular.
Peoples – The people who represent UMG to the outer universe are its overplus of creative persons. These are the face of the company.
PHYSICAL EVIDENCE – In-store and online.
PROCESS – UMG ‘s services are a simple, pleasance and diversion seeking procedure. It is standardized for in-store purchasing, concerts and on-line purchases with merely certain state specific fluctuations.
The music industry is ever-growing and ever-changing. Presently with its chief focal point on digital gross revenues, there is really small differentiation from other Record labels. On comparing with rivals – Sony Music Entertainment, Warner Music Group and EMI – all services offered by UMG can be differentiated entirely on the footing of their catalogue of creative persons as other services provided are similar by all record labels. UMG is a really people-centric service.
Intangibility
Albums offered by UMG, by the agencies of Cadmiums, nomadic downloads, etc. are touchable in nature as they can be bought, touched and experienced but other peripheral services like concerts in peculiar is an experience created which is intangible.
Inseparability
Promotions and events are really important for an album to earn gross revenues. Hence an album sold by UMG is inseparable from its other sub-ordinate services like handiness online and on Mobile, promotional concerts.
Heterogeneity
For albums, client satisfaction extremely depends on how genuinely an creative person has been able to populate up to the outlooks created prior to the launch.
Variability
The variableness factor for UMG comes from its different creative persons from across all genres.
Identify the client sections and how the service is consequently differentiated to the benefit of the company and clients
Universal Music Group has creative persons signed up across all genres and is present in 77 states through subordinates, joint ventures & A ; licensees. UMG ‘s strength and bequest of music flows diverse scope of record labels which include A & A ; M/Octone, Barclay, Decca, Deutsche Grammophon, Disa, ECM, Emarcy, Fonovisa, Interscope Geffen A & A ; M Records, Island Def Jam Music Group, Machete Music, etc.
Since UMG constitutes about 98 % of music market, the client cleavage survey is rather similar to the market as a whole. The group caters to music across all age groups – teens to the older coevals.
Demographic Cleavage
Age Group
Service/Product Offered
Pre-Teens
Merchandises, CDs & A ; DVDs
Teenss
Digital downloads, CDs & A ; DVDs, Subscription
Tweens
Digital downloads, Subscription, Webcasting and Internet Radio, Live Music
Middle Aged
Digital downloads, Subscription, Webcasting and Internet Radio, Live Music
Oldies
Collector ‘s Edition CDs & A ; DVDs
The volume of physical albums sold for the music industry declined by 17 % due to digital downloads, doing a important diminution in grosss and net incomes for the “ Large Four ” and other record labels. UMG ‘s entire gross fell by 11.7 % in 2007 which is the least compared to the losingss borne by the other record labels.
It can be observed that the hearers are in signifier of attitudinal groups. There is besides a argument about how attitudes change – is it the advertisement and the merchandise that create the attitudes, or do the attitudes lead to the pick of a peculiar merchandise. In peculiar a individual person in different fortunes or manner may suit into a different section. Capturing this complexness in a individual dimensional survey is hard.
Demographically talking, the typical purchaser is acquiring younger. Country music all of a sudden saw a sudden addition in the listenership while blame music saw a diminution. Classical and soundtracks are warming. Digital downloads are regenerating the industry with more people are listening to more music-more genres through more locales. Peoples are speaking about online music services & A ; are passing more and more money on music-mostly digital, but besides live.
Identify the purchasing behavior of your client sections. Chart out the purchasing procedure of clients from Identification of demand to ingestion of service to post purchase phase
Buying Behaviour
Needs – Why do people listen to music?
Social Needs
Credence from Peer Groups
Beginning of Relaxation
Information Search
hypertext transfer protocol: //www.universalmusic.com
Social networking Websites – MySpace, Twitter, Facebook
Billboard & A ; other music channel web sites
Evaluation of Alternatives – Evoked Set
Other 3 biggies in the record label industry – EMI, Warner Music & A ; Sony Music
Other little record label companies in the market
Free music download web sites
Service Purchase & A ; Consumption
Emotion & A ; Mood
The demand with which the client listens to music when satisfied he/she feels contented, thereby conveying about a positive emotion towards the merchandise
Service Role & A ; Scripts
UMG service is consistent in all manners of its communicating vehicles
The function of the digital beginning for downloading vocals are clear doing it easy for the consumer to understand its operation
Compatibility of clients
Through competitions, album releases and creative person directories they engage the similar minded audiences to interact with each other
Post Purchase
Attribution of Dissatisfaction
Particularly does n’t hold a strong place in Europe & A ; Asia
Brand Loyalty
UMG dedicatedly promotes music to the universe and its figure one place in the record label brands proves to the fact that it has a group of loyal audiences
Role of Culture
Depending upon the location UMG is present in and its licensee, it accustoms itself to the sort of music to be promoted
UMG is present in 77 states through subordinates, joint ventures & A ; licensees. Thus creative persons of the location shall be signed up with the record label
UMG is the market leader in today ‘s extremely competitory classical music market
How are client outlooks formed? How can your company control client outlooks? Explain with relevant illustrations.
Customer outlooks are formed as a procedure of tracking from what the client desires to what the company has on offer for the client. It is in a manner the in-between way between the two sides. Customer outlooks are formed based on what the company places its merchandises to be. This placement is done basically through the selling and advertisement. At assorted phases of the merchandises life the client outlooks are formed utilizing different agencies. When the merchandise is about to be introduced it the Integrated Marketing Communication ( IMC ) program which helps in the formation of the client outlooks. The bombilation and wonder created by the IMC program is what defines the outlooks at that phase. Posts launch the purchase that the merchandise got ab initio by the advertisement slices. At this phase, the client experience is what sets the temper for the client outlook. This minute of truth is the specifying point for the client outlook. For Universal Music Group ( UMG ) , the merchandise is music which normally has a short shelf life. So, largely the gross revenues happen every bit shortly as there is a music launch. It is hence of import that the client outlooks are set to rectify degrees right from the start. For making this the company needs to hold promotional characteristics like competitions, PR modus operandis, initial teasers etc. This would guarantee that the client gets the feel of what the merchandise is like from the word spell. The more exposure the client gets to the merchandise in this instance the more realistic are the outlooks. By utilizing this method opportunities are of making the mark group are better.
The image above is a typical illustration of making bombilation around new launches. The music lovers are given a prevue to the music. This enables them to make up one’s mind what to anticipate from a peculiar music album.
Identify any state of affairs where the company has achieved a service recovery or has instituted a service recovery plan successfully.
Service Recovery is defined as a the dialogues that happen with a client who is dissatisfied with the company ‘s service that ( s ) he has consumed. This is done basically to guarantee client keeping. There are two ways to cover with the state of affairs depending on how of import retaining a client is to the service supplier. When keeping is non really of import in such state of affairss non much inducement is given to the client, the harm control is to the extent that ( s ) he does non go a beginning of negative promotion.
In instances where the client keeping is of import ( the keeping of clients is non a really hard undertaking at manus ) ( s ) he possibly given inducements that are large plenty to countervail the bad service that was provided to them in the first topographic point. This will guarantee that the client returns satisfied and the bad experience is erased off. Further this will besides make good will for the company as there will be positive promotion that the client might make.
The thought behind service recovery is every bit simple as harm control. With a small attempt a win win state of affairs can be arrived at despite get downing signifier a deprived place.
With regard to Universal Music Group, service recovery may be in instances where the record quality is defective or when the quality of the music that has been recorded is non up to a certain criterion. In such instances a batch callback can be done or clients can be given newer records from a new batch. No such incident has been reported so far at UMG.
Identify the service around touchable merchandise offerings of the chosen company if applicable
Besides being the leader in gross revenues of music picture, DVD ‘s, Cadmium ‘s and record labels, Universal Music Group besides provides a whole host of services for its clients and clients. UMG discovers, develops, markets, and distributes recorded music through a web of subordinates, joint ventures, and licences in 77 states.
Its services can be divides into the undermentioned major sections:
Universal Music Classical Management and Productions
Universal Music Publishing Group ( UMPG )
Artist Management Services – including Twenty First Artists, Trinifold, and 5B
Live Music Agency – including Helter Skelter and All The Worlds
Digital Media – distribution and sharing of music online every bit good as through assorted applications on nomadic phones
Universal Music Group Distribution
UME
Universal Music Classical Management and Productions
Established in May 2008, it was the first company within the classical music universe to supply genuinely built-in direction to creative persons ‘ callings. UMCMP manages some of the most famed classical creative persons of the present twenty-four hours, helping them in all their demands and media and entering chances to supply a alone 360-degree service to clients and clients likewise. The company works with established classical boosters every bit good as independent manufacturers of classical public presentations to showcase their endowment in public presentation locales throughout the universe. It oversees artist direction every bit good as event production and publicity.
Their vision for artist direction focuses on interrupting new evidences within the universe of classical music and to action inventions in the manner that classical music is presented, performed and experienced worldwide. In 2009, it announced an advanced long term understanding with First Classics GmbH, the new web of top German classical music concert boosters. They hope to better familiarize their audience with the approaching stars through extended promotional Tourss and widespread media visibleness.
Universal Music Publishing Group ( UMPG )
Leading planetary music publishing house which operates through both direct sign languages and catalogue acquisitions. UMPG is besides the planetary leader in the countries of Production music, Christian/Gospel, and Classical.
UMPG besides manages and administers many of the universe ‘s major movie and telecasting companies ‘ music catalogues including Warner Bros. Pictures and Warner Bros. Television Production, Universal Pictures, Universal Studios Entertainment, Media, BBC, Beacon Films, CNBC, Celador ( “ Who Wants To Be a Millionaire ” ) , Endemol, Focus Features, Moonscoop, MSNBC, Proseiben, Sci-Fi Network.
UMPG offers its creative persons and songsters a diverse array of marketing mercantile establishments including: UMPG magazine, promotion, web sites, e-newsletters, e-samplers and more.
The planetary leader in production music –
Cosmopolitan Production Publishing Music is the preeminent provider of high degree production music throughout the universe and serves the burgeoning concern that creates, green goodss, and licenses music for usage in film/TV, advertisement, broadcast and corporate clients. Owning both the Maestro and the Copyright for the composing, UPPM allows clients to licence music both in an easy and low-cost one-stop store.
Artist Managenent Services:
The full array of agents and endowment lookouts which encourages and develops budding creative persons is covered under this facet. UMG has bureaus like Twenty-First Artists, Trinifold and 5B under its wing.
With the recent alteration in direction, Universal is serious about going a major participant in direction industry and has programs of ruling the market in the close hereafter. The bureau will to the full pull off all the activities of creative persons from find to development to keeping PR.
Live Music Shows
Universal ‘s unrecorded music and event production divisions, responsible for booking and showing endowment throughout the universe, include Helter Skelter and All the Worlds.
Digital Media
Universal Music Group ‘s ( UMG ) grosss were a‚¬4,363 million for 2009, a 6.2 % lessening compared to 2008. However, Digital gross revenues increased by 8.4 % , thanks to a really strong growing in on-line gross revenues, despite the lag of cellular telephones gross revenues in the United States and Japan.
Vevo – VEVO is a music picture web site. It is a joint venture between Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media with EMI licencing its content to the group without taking an ownership interest. The picture on VEVO are syndicated to YouTube, with Google and VEVO sharing the advertisement gross.
The purpose behind Vevo was to pull more high-end advertizers. To this terminal VEVO censors the content of some of its picture for linguistic communication, to do them more acceptable to publicizing spouses. The other gross beginnings include a ware shop and referral links to buy viewed vocals on Amazon MP3 and iTunes.
In August 2010, VEVO introduced a free application for the Apple iPhone that allows users to stream picture in the VEVO catalog and create play lists.
eLabs – This division is responsible for managing the company ‘s electronic commercialism enterprises, cyberspace geographic expedition, and new engineering chances worldwide. eLab ‘s concern development staff supports all of UMG ‘s e-business enterprises, including digital downloads, subscription services, webcasting, and synergistic wireless through all digital channels of purchase. It is with the aid of this division that UMG has been able to keep its market portion and salvage face as the overall industry ‘s gross revenues and attraction have declined due to digital downloads and buccaneering. With these attempts, legal digital distribution of UMG ‘s music has continued to increase due to the company ‘s partnerships with Apple ‘s iTunes and other digital download retail merchants, such as Napster, RealNetworks, and Wal-Mart. In 2007, UMG made an investing in hip-hop music portal Loud.com, and in the same twelvemonth the company began selling its music catalog online in unrestricted mp3 format through Amazon.com.
Mobile phone apps – The growing was driven chiefly by Apple ‘s iTunes and other US digital download retail merchants such as Napster, Real Networks, and Musicmatch. The company sold over 48 million mastertones in the US in 2005, compared to 10 million in 2004. Mobile gross outside the US continued to turn briskly, about duplicating in 2005. The company has relationships with portals such as Yokel! , AOL and MSN.
Universal Music Group Distribution
It consists of – Cosmopolitan Media Distribution, Fontana, Vivendi Visual Entertainment ( VVE ) , UMGD Digital.
Besides collaborated with Destiny Media Technologies to spread out their digital media distribution services in Canada and Mexico. Under this multi-year understanding, Destiny Media remains the primary, and merely company-wide platform, for the planetary distribution of UMG ‘s pre-release digital media in North America.
Universal Music Enterprise ( UMe )
UMe is comprised of several concern units and record labels:
In add-on to centralise support of each of these countries by UME ‘s A & A ; R, Business Affairs, Finance, and Production sections, a Strategic Marketing unit has been created to supply an overall way for strategic confederations, promotional partnerships, integrated selling plans and public dealingss. Strategic selling enterprises and chances in new engineerings such as the Internet will be to a great extent utilised.
With this new construction, UME will supervise the usage of the company ‘s maestro recordings through new markets and non-conventional channels. Additionally this organisation within UMG will go on to make, get and market new catalog merchandise.
Identify the difficult steps and soft steps that can assist place the service public presentation at each phase of client touch points.
Difficult steps:
Tangible studies and studies which can be used to judge the service ‘s public presentation could be –
Annual study to mensurate existent gross revenues
Market Analysis to mensurate market portion in publication and distribution
Number of vocals downloaded on nomadic phones through assorted applications available
Traffic on website – of import due to the lifting popularity of online shopping
Tickets sold in concerts and unrecorded shows
Soft steps:
The step of soft service should include appraisal of interaction with clients every bit good as clients. This can be done through –
Relationship studies – to happen out how many creative persons really stick with UMG
Overall public presentation of Talent lookouts and assorted in-between work forces, agents
Assorted CSR enterprises taken up by the group
Identify the pricing scheme for one of the pdt/service offerings in every bit much item as you can with suggestions and recommendations or why you think the pricing scheme is the best scheme
The three basic monetary value constructions that are used to put monetary values are:
Cost based approach- In this attack company determines disbursals from natural stuffs and labor, adds sums or per centums for operating expense and net income and thereby arrives at the monetary value. This method is widely used by industries such as public-service corporations, catching, publicizing etc.
Competition based- This focuses on the monetary values charged by other houses in the industry. It does n’t connote bear downing the same monetary value as other houses but it is merely that other houses ‘ monetary value is taken as an ground tackle for the house ‘s monetary value. Used widely in the services sector
Demand based- This involves puting monetary values consistent with client perceptual experience of value
MUSIC INDUSTRY – The music industry in general and Universal Music Group, specifically follow a competition based pricing scheme. Competition based pricing attack focuses on the monetary values charged by other houses in the industry. It does n’t connote bear downing the same monetary value as other houses but it is merely that other houses ‘ monetary value is taken as an ground tackle and monetary values usually hover around the same
Cosmopolitan music monetary values its music Cadmiums in the scope of Rs.125-175 for all genres like Classical, Indi dad, Remix, Devotional, Soundtrack etc.
An interesting pricing maneuver that the company follows is bear downing really high monetary values for exceptionally popular performing artists like AR Rahman, Rahat Fateh Ali khan, Kishore Kumar.
Cadmiums for these creative persons are priced in the scope of Rs.275-350. Soundtracks of old Hindi films retail at Rs.99 due to high demand snap. These pricing schemes are followed by other record labels like Sony BMG, EMI India, T-series, Yashraj Music, Times Music etc and hence these form an anchor monetary value around which monetary values by and large hover.
Competition based pricing is an appropriate pricing scheme maintaining in head the construction of the music industry as a whole, and besides the jobs associated with the demand based and cost based pricing scheme
Identify usage of new media by the company to advance and pass on service/ pdt offerings to their several TG. Do you believe the company can achieve better selling ROI by graduating investing judiciously across online and offline ad and selling spend?
New media tools are extensively used by UMG.
It promotes its music online by –
VEVO – A music picture web site. It is a joint venture between Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media with EMI licencing its content to the group without taking an ownership interest. VEVO offers music picture from three of the ‘big four ‘ major record labels: Universal Music Group, Sony Music Entertainment, and EMI. It was launched on December 8, 2009. Presently available merely in United States and America, it was set to be launched worldwide sometime in 2010. It is syndicated with YouTube and Google.
MySpace – With cartridge holders and paths being uploaded, MySpace Music has served as a great portal for UMG to give music prevues and garner client responses to it.
Facebook and Twitter – UMG ‘s pages on these societal networking sites are full of updates of new albums launches, pictures released, Tourss and events garnering immediate responses from fans across the universe.
Mobile publicities for UMG are done through downloads of callertunes and ringtones which are provided by several nomadic web service supplier and through applications like VEVO available on iPhone, UMG music handiness on iTunes and MusicStation, etc.
Over the last five old ages, digital gross revenues of music have been on a changeless addition. As a consequence, online and nomadic media selling has been the primary tool for record labels. This calls for the company to put more in on-line ad spends which it has been making. The staying offline publicities should be concentrated on affiliations with music channels and GECs to increase visibleness of the album and the creative person.
Identify key investings in the company which have helped better service quality. Elaborate each investing conceptually and with approximative quantitative inside informations wherever possible.
Universal Music Group is a dynamic group that invariably reinvents itself and is ever proving new Waterss. In the recent old ages they have made a batch of investings in many domains. However since these have been really recent investings, there are no quantitative inside informations to back up the same.
MUSIC VIDEO WEBSITE-VEVO
VEVO was ranked among the web ‘s top 10 picture webs in January and, for the 3rd back-to-back month, was the most-visited U.S. web web in the desired Entertainment-Music class with 35.4 million alone visitants in February, harmonizing to new informations released by comScore Media Metrix, a recognized leader in mensurating the digital universe. VEVO besides late announced it has signed about 20 new trade name advertisement and selling spouses for 2010, covering such of import consumer classs as Automotive, Entertainment, Retail, and Health and Fitness.
AMERICAN IDOL AND UMG JOIN HANDS
19 Entertainment and Simon Fuller, Godhead of ‘American Idol, and Universal Music Group ( UMG ) , the universe ‘s prima music company, entered a long-run strategic confederation to increase the development, distribution and selling of ‘American Idol ‘s ‘ musical creative persons. As portion of this multi-year understanding, UMG ‘s Interscope Geffen A & A ; M will market, promote and distribute albums globally from ‘American Idol ‘s ‘ finalists and winning contestants across a wide array of retail and new media platforms
UNIVERSAL MUSIC GROUP ( UMG ) PARTNERS WITH EMUSIC
Universal Music Group has partnered with eMusic, the Digital Music Club, to offer its U.S. members entree to UMG ‘s deep and rich catalog of groundbreaking and chart-topping creative persons get downing in November, 2010. This understanding is another measure in eMusic ‘s development to a digital music nine that offers a comprehensive catalog, the best value, column and contextualization important extra benefits for the most passionate music consumers. The trade will add more than 250,000 paths to the eMusic catalogue, which now stands at ten million.
UNIVERSAL MUSIC ANNOUNCES LABEL DEAL WITH SUPER PRODUCER REDONE
Universal Music is honored to denote their joint venture with ace manufacturer RedOne and his new record label 2101 Records. The international Grammy winning hit shaper, who was late honoured as Billboard Producer of the Year and BMI Songwriter of the Year, is famed for his work with Michael Jackson, Sean Kingston, Enrique Iglesias, Akon and Lady Gaga. The venture is with Universal Music International and each creative person subscribing to 2101/Universal will be released by a label within the UMG Group. RedOne will A & A ; R, executive green goods and bring forth all creative persons signed to 2101 Records.
RCOM & A ; UNIVERSAL MUSIC SIGN EXCLUSIVE STRATEGIC PARTNERSHIP IN ITS PREPARATION FOR 3G LAUNCH
UMG has entered into the Biggest & A ; first-ever comprehensive music trade signed with an Indian telecom operator. Reliance Communication will offer Universal Music ‘s catalogue for its GSM, CDMA, 3G and Mobile Broadband customers.Also, this partnership will see the countrywide launch of Simply Music Initiative to showcase a invariably germinating Music service over the following quarters
Universal Music & A ; RCOM program live music concerts with Blockbuster Indian & A ; International creative persons
Reliance Communications announced the sign language of an sole strategic partnership with Universal Music to offer music-related services and content across RCOM ‘s GSM, CDMA, 3G Mobile and Wireless Broadband platforms. The understanding between Reliance Communications and Universal Music has been signed with a committedness of significant investings to be made by both the parties to offer 360 degree music experience to clients across all platforms including Voice, WAP, Web, IVR, Blog & A ; through On-Ground Events.
MUSICAL SOCIAL GAMES
Universal Music Group ( UMG ) has struck a trade with Conduit Labs, a start-up that creates musical societal games, to supply users with entree to UMG ‘s library of accredited music from the record label ‘s creative persons such as Lady Gaga, Rihanna and others. The partnership will widen to all 1 million users of Conduit Labs ‘ games, including Music Pets, Super Dance and Loudcrowd, to entree the paths.
All of Conduit Labs ‘ games are free-to-play but allow users can buy practical points, such as vocals, to further personalise their experience. For illustration, Loudcrowd, which we reported on here, allows users to make their ain practical universe with embodiments and entree music play lists while playing a series of music-themed games with friends. Conduit uses a practical goods theoretical account to sell music within games and vocals on the societal web scope will run from bing nil to several dollars. Through the understanding, Conduit will portion gross from all gross revenues of UMG ‘s music with the record label. Users will besides be able to buy separate digital downloads of UMG music and other merchandises. UMG will be offering accredited music from Lady Gaga, Little Wayne, Rihanna, The Killers, Beck, Kanye West, Black Eyed Peas, Weezer, Justin Bieber and several other well-known creative persons.
Identify gap/s in the company ‘s operations and selling and propose how your company can get the better of the same utilizing Gaps theoretical account of service quality
UMG is the universe ‘s largest music company with an estimated 25.6 % portion of the planetary music market. UMG ‘s recorded music concern is the largest in the universe with peculiarly strong places in the North American and European markets, which together account for about three quarters of planetary gross revenues. Through Universal Music Publishing Group, UMG is the figure three planetary music publication company with over one million owned or administered rubrics.
Some of the important creative persons and songsters represented by UMG include ABBA, Avril Lavigne, 50-Cent, The Beach Boys, Mary J Blige, Bon Jovi, Estefan, No Doubt, Prince, Michel Sardou, Paul Simon, Andre Rieu, Shania Twain, Andrew Lloyd Webber and U2. Legendary composers represented by the company include Leonard Bernstein, Elton John and Bernie Taupin, and Henry Mancini.
Market leading helps the company set up its trade name image. In add-on, it besides enables it
to profit from graduated table of operations, which helps it vie against regional participants. Besides, the company has strong digital offerings. In 2005, UMG maintained its leading place in digital distribution with a market portion of 31.7 % in the US. UMG ‘s big market portion in digital distribution is chiefly due to the fact that the company offers the largest digital distribution catalogue ; delivers new releases to digital retail merchants ; and collaborates with digital retail merchants to advance its merchandises. The group has a planetary presence with operations crossing across 75 states. The company offers its services throughout North America, Asia, and Europe. In financial 2005, the company ‘s North America, Europe, Asia and ‘rest of the universe ‘ geographic sections contributed 46 % , 40.1 % , 9.4 % and 4.6 % severally to the entire grosss, bespeaking a good spread out geographical gross base. This diversified client
base decreases the group ‘s exposure to a peculiar market and provides it with cross selling chances to different clients across parts Weak public presentation in Europe and Asia
The company ‘s public presentation was weak in Europe and Asia in financial 2005. Grosss from Europe and Asia declined by 9.1 % and 6.6 % , severally, in 2005. Worsening grosss from Europe and Asia, which account for approximately 50 % of the company ‘s entire grosss, could adversely impact the overall fiscal place of the company.
The group ‘s offering in Asia, specifically India is non every bit impressive as the 1s offered in North and South America. The group has signed on popular vocalists like Lady Gaga, Enrique Iglesias, Taylor Swift, Bon Jovi there nevertheless in India UMG does n’t hold a batch of hotshot vocalists on board. Singers like Kailash Kher, A R Rahman Atif Aslam are signed on by other record labels.
Besides album civilization is non really popular in India, 40 % of the gross of the music industry comes from films and UMG ‘s does n’t hold a really outstanding presence in that sphere. It loses out to participants like Tips, T-series, Sony BMG, EMI etc.
To bridge this spread the company needs to regenerate its selling attempts in Bollywood and besides at the same clip attempt and mark on popular vocalists to hike its gross revenues in India.
Recognition
We would wish to show our gratitude to Prof. Anita Basalingappa for giving us this chance to carry on research on the Music Industry and its Management and to analyze the assorted procedures, schemes, concern deductions, future tendencies and growing chances associated with this industry. The assignment besides helped us understand the working, concern planning and schemes involved in the daily operation of the Universal Music Group.