The Global Music Industry
Introduction to Globalisation  :::  Globalisation and state music policy  :::  The Majors and the Independents
 :::  Types of Market Entry  :::  Links  ::: 
The Majors and the Independent companies
The Majors
refers to the main conglomerates functioning within the music industry.
Conglomerates are corporations consisting of a number of different companies operating in diversified fields.


The Major Record companies are:
  • EMI
  • Warners
  • Sony-BMG
  • Universal

The Majors have roughly 3/4 market share of most territories.
This dominance has been built through long term processes of acquisition and merging.

Characteristics of the Majors
  • Are present in all major music markets of the world
  • Are therefore capable of building international artist careers
  • Financially strong
  • Have a long history = valuable back-catalogue


Limitation of the Major business model
By committing to only a few "trendy" artists, the Majors are vulnerable to shifts in consumer culture and trends. In case of a changing market place, the Majors need to have new acts in sight. This can be reached through independent record labels.


How Majors solve this problem through the independents
  • Buy up complete companies
  • Buy Recording Artist Contract off the independet label
    •            for cash or override of commisions
  • Fund Imprint Arrangements / Fund A+R sourcing / Buy Shareholding
  • Distribute releases from the independents through distribution networks owned by the major