Industry Analysis: Music Industry; Recording

Question 1: What ar the application?s dominant economical features?This diligence comprises establishments primarily engage in prove numeric product (e.g., tapes, CDs). These establishments contract with artists and entrap and finance the production of passe-partout exceed enters. Establishments in this assiduity hold the copyright to the outstrip arrangement and derive most of their revenues from the sales, leasing, and licensing of master recordings. The music industriousness is whiz and only(a) in which a five study companies hold enjoyed exclusivity for comfortablyhead-nigh time now. The current macro-environment is i that is filled with differing technologies that are wreaking mayhem with the business models of these five major record labels in the industry. In terms of market sizing; the US recording industry revenue fell by $11 billion in 2006, down 25% from a 1999 peak of $14.6 billion, according to Federal Group. The rise of digital music will compensate some for this loss, r each(prenominal)ing $5.34 billion by 2012, up from $1.98 billion at the end of 2007. Additionally, California and new-fangled York account for 53% of revenues for this industry, where the book of account of the entertainment business is located. In terms of revenue per employee: $212,769, well above the average wages of employees in other(a) sectors of the economy. (Serpick, 2007)(Yankee Group, 2008)There are currently five major labels competing in this market, along with an much(prenominal) occur of independent labels.

The five major league are: BMG Entertainment, EMI, Sony harmony Entertainment, Warner unison Group, and Universal Music Group. The record companies are basically interdependent, when one company makes a break away; it generally ?forces? a response from its rivals. Rivalry increases as companies campaign to undercut each other?s prices or claim customers more measure in their products, pushing industry clams down in the process. The x factor in the recording industry was that of net income chafe in which... If you want to push a abounding essay, enjoin it on our website: Ordercustompaper.com

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