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

  • August 2017
  • 39 pages
  • Ibisworld
Report ID: 168005

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Changing its tune: The industry is adjusting its structure to combat the threat of music piracy

Abstract

Major Label Music Production in the US

Prior to the emergence of the internet, the Major Label Music Production industry experienced healthy profit margins and consistent revenue growth from strong physical album sales. As high-speed internet access proliferated throughout the United States, the market for music shifted and record labels struggled to adapt. Currently, the industry is emphasizing streaming platforms, such as Apple Music and Spotify, as legitimate ways to access music.

However, these platforms generate less revenue for record labels than physical album sales and digital downloads. This drastic shift in music consumption has demanded a response, and the largest record labels have taken note of these advancements. As consumers increasingly have access to music wherever they go, industry revenue derived from streaming services is expected to mitigate lost revenue from the sales of physical and digital albums.

Record labels are responsible for finding musical talent, recording their work and selling it to retail outlets. The ability to oversee distribution of physical media and negotiate comprehensive publishing deals separates major labels from smaller independent labels. Major labels also commonly have deeper and broader talent rosters.

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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