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Independent Label Music Production in the US - Industry Market Research Report

  • July 2017
  • 38 pages
  • ID: 168004

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Facing the music: Labels will focus on growing revenue from nontraditional streams

Abstract

Independent Label Music Production in the US

Shifts from physical to digital media have had a marked effect on the operations in the Independent Label Music Production industry. The Big Three record labels are slowly adapting, while independent labels are diversifying revenue streams to adjust to the evolving landscape. Sales of physical media and digital downloads have declined steadily over the past five years in response to emerging subscription-based streaming services.

However, as these transitions take place, industry operators are adjusting accordingly, placing an emphasis on merchandising and touring. As music recording, mastering and distributing processes become more affordable, new competitors are expected to enter the industry.

Over the five years to 2022, labels are expected to focus on growing revenue from nontraditional revenue streams to offset declines in both physical sales and downloads. Operators will likely negotiate increasingly complex distribution deals that take advantage of new content platforms.

However, smaller operators are more flexible and can often adjust their business models quickly, allowing them to keep up with consumer preference and exploit these new revenue streams.

Independent record labels find musical talent, finance the production of music and distribute recordings to retail and digital outlets. These labels have smaller budgets and operations than those of major labels, and independent labels frequently outsource manufacturing and distribution of physical records. Major labels are included in the Major Label Music Production industry (IBISWorld report 51222).

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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