In-depth posts coming soon!
To start, this is a brief overview of all the working components and factors of the US music industry. From my understanding, many of these areas work both independently yet also collaboratively to make up the ‘machine’ that is known as the music industry. It crosses over several different fields, some more complex than others. As the Soundcharts team writes:
“The music industry works through a network of partnerships between companies and individuals on the music creation side (singers, songwriters, and producers), the customer-facing side (streaming platforms, venues and public performance platforms like radio) and the business side, connecting the two (labels, managers, publicists, Performance Rights Organizations, distributors, booking agents and more).”
Nonetheless, here are some of the fields that make up the industry:
Recording Labels
Typically what most people think of when they hear “music industry,” recording labels have gone through several eras, such as CD to piracy to streaming of today. It is important to note that the position of recording labels are everchanging and evolving to the current marketing industry of today.
The “Big Three” labels of today, in the U.S., are comprised of:
Universal Music Group
Sony Music Entertainment
Warner Music Group
These three labels, or rather organizations, hold some of the most prominent labels today, such as Interscope, RCA, and Atlanta Records, and all have a rich, complex history of how they came to be through a series of formation, selling, and buying.
Digital Music Distribution
Still considered part of the recording change, digital music distribution are responsible for delivering the release to stores and to keep cash flowing back to the label and artist(s). As streaming began to become commonplace and solidified its position as the preferred way of listening to music for many consumers, Digital Distribution now encompasses music consumption, monetization, and discovery, ever increasing its importance in the industry today.
Streaming
A buzzword of today, streaming is the method that most consumers receive their entertainment, from music to film to television. Streaming, as part of the music industry, is constantly evolving and changing in today’s current society. With that said, streaming services look for ways to expand user-base, develop products, find long-term business plans, and grow revenue.
Live Touring and Entertainment
A field within the music industry, yet also one that has multiple fields within and constand moving parts. Due to the complexity of venues and the variety that all differs from location to location, many booking agents heavily rely on local networks to make venue bookings. That aside, live touring and entertainment includes, but is not limited to: lighting, production, stagehands, sound, videography, and security.
Licensing and Sync
When you see an artist in a commercial or hear a song in a movie, these partnerships, deals, and sponsorships are all dealt with and by licensing.
Legal
Yet another area that is extremely complex, it is still recommended that all music professionals, in all areas, are at the very least familiar with basic music legalities, laws, rules, and regulations
Artist Management
It is essential for an artist manager to have knowledge and expertise of the entire music industry as they are often the backbone of an artist's career. Oftentimes, the finances of a manager will reflect the finances of the artist: if the artist is taking off and making money, so will the manager.
Music Publishing
Another area of the music industry that is extremely complex and obscure, music publishing is responsible, in essence, for collecting royalties and royalty payments on an artist's work on behalf of the artist.
Radio
While streaming is becoming more and more prominent and less people are listening to the radio, it is still an integral part of the industry that has been able to adapt and evolve. Most importantly, radio is used as a promotional channel for artists, and a prominent one at that.
Audience and Fan Attention
The last area on this list, yet arguably an extremely important one, audience and fan attention has become what drives an artist. With social media in today’s age, fans are able to market and promote an artist all on their own meaning that fans have become the media and is even more crucial with the age of digitization.
Note: This is not an exhaustive list. I am still researching and learning the facets of the music industry and am therefore not an expert.
Source: Soundcharts Team. (2024). How Does the Music Industry Work? Introducing the Mechanics: A 10 Part Series (2023 update). Soundcharts. https://soundcharts.com/blog/mechanics-of-the-music-industry
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