Survey of Recording Industry unit 1

The overall music business today is worth how much?

Billions of dollars

Which company introduced the LP record?

Columbia

The first commercial compact disc appeared in the…

1980s

True or False. The rise of the Internet and P2P file sharing presented the music industry with its first major challenge from changing technology.

False

The first million-unit seller in the U.S. music business was

sheet music for "After the Ball" in 1892

The dominance of the popular singer began in which era

1930s-40s

SEA stands for

Streaming Equivalent Album

Your textbook cites which figure as a significant early promoter of a professional musician who was a relative?

Leopold Mozart

How many streams equal one album unit in SEA calculations

1,500

What does TEA stand for

Track Equivalent Album

In 2024, which Music Group had the largest overall market share?

Universal

True or False. The rise of P2P file sharing in the 1990s boosted the overall sale of CDs in the United States due to greatly heightened consumer awareness of new artists.

False

True or False. Unlike previous physical formats, the CD could be copied only with a minimal loss to fidelity.

True

The RIAA strategy of suing copyright infringers for illegal downloading was

successful in winning civil judgments against very few infringers - but it was not popular

Which genre of music garnered the most consumption in 2024, according to the Luminate data?

R&B/Hip Hop

True or False. The advent of digital recording equipment allowed high-end recordings to be made without incurring high-end production costs.

True

Within the new digital economy, disadvantages include ALL BUT ONE of the following statements:

More are artists are entering the marketplace scoring bigger sales with more platinum selling artists then ever.

Which revenue stream includes royalties from radio airplay and film placement?

Publishing

In the first decade of the 21st century, global recorded music sales changed by approximately how much?

Decline by half

True or False. Based on the economic pressure on their profit margins, record labels rarely today act as banks.

False

Which three segments of the U.S. music industry are the biggest, in terms of annual revenue?

Recorded music, music publishing, and live entertainment

Generally speaking, SEA equates to?

1,500 streams equal an album

Based on the Revenue Streams, who has the most chances of making money:

Artists

P2P file sharing refers to…

Peer to Peer music sharing networks

Which statement is NOT TRUE regarding the digitalization of entertainment product.

1)	Allows for instant transference (and purchase) of product

2)	Has enabled for illegally downloading which equates to $4.5 billion dollars in losses

3)	Creates for new convergences of products such as video games and with big name artist as soundtracks and major release ringtones

4)	Has increased the interest and sales of music in young people, with a resurgence in the teen buyer of music.

4)	Has increased the interest and sales of music in young people, with a resurgence in the teen buyer of music.

True or False. The three revenue streams— recording music, publishing, live entertainment— are completely isolated from each other.

False

What starts each revenue stream in motion?

Consumer Spending

What has happened to the sales of CDs in the last decade?

CD sales are not a significant source of revenue

What is the main factor that led to the change in CD sales in the last decade?

Unauthorized downloading

When looking at Luminate's Top 200 chart, what determines #1 album:

The record with the most "consumption" which includes album sales, single downloads, and streaming

What are the three revenue streams in the music business?

Music Publishing, Live Entertainment, and Recordings

Who are the music "majors"?

Universal Music Group, Sony Entertainment, Warner Music Group

What makes a label a "major"?

Being part of a giant entertainment company

Synchronization rights apply when

Songs are used in movies, TV, or Commercials

Are the three income streams isolated from each other?

No, they all interconnected

Mechanical Licenses Involve

Paying for song reproduction and distribution

Which revenue stream suffered most from Napster and File sharing?

Recording Music

Record Labels have combatted the loss in profit with the arrangement of the:

360 Deal

Explain Vertical and Horizontal Integration.

Vertical - when a company controls multiple levels of the supply chain rather than just one. For our industry, this means a company/major label might:

Horizontal - when a company expands across the same level, buying or merging with competitors or similar companies. Think Live Nation merging with Ticketmaster - they both work/operate in live music/ticketing.

Identify and describe the Three Revenue Streams. Name four examples of segments of music the industry that fall into each category

Publishing, Recording, and Live music. Publishing gets money from songwriting and putting out music, recording acquires money from streams plays and downloads of music, and live earns money from ticks sails, and merch brand deals. All these three revenues get money back from performance royalties to refund there organization.

What is a Gatekeeper?

a gatekeeper is a person(s) who used to evaluate an artist and decide if they had what it took to be a recording artist. They are not as common today because of social media, companies don't really sign artist to work with and grow when they can go ahead and find someone on social media how doesn't need to be worked with that much work.