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116-449: The music industry refers to the individuals and organizations that earn money by writing songs and musical compositions , creating and selling recorded music and sheet music , presenting concerts , as well as the organizations that aid, train, represent and supply music creators. Among the many individuals and organizations that operate in the industry are: the songwriters and composers who write songs and musical compositions;

232-420: A disruptive technology to the commercial interests which published sheet music. During the sheet music era, if a regular person wanted to hear popular new songs, he or she would buy the sheet music and play it at home on a piano, or learn the song at home while playing the accompaniment part on piano or guitar. Commercially released phonograph records of musical performances, which became available starting in

348-403: A recording studio that oversees the production and recording of the final product. However, record producers can be involved in co-writing songs as the composer wearing two hats as the producer and songwriter as they may write and compose the original music such as the beat and then oversee the production that takes control of the recording sessions with the artist and engineer all the way down to

464-487: A road crew : a semi-permanent touring organization that travels with the artist during concert series. The road crew is headed by a tour manager . Crew members provides stage lighting , live sound reinforcement , musical instrument maintenance and transportation . On large tours, the road crew may also include an accountant, stage manager, bodyguard, hairdressers, makeup artists and catering staff. Local crews are typically hired to help move equipment on and off stage. On

580-421: A biography of Mozart. In the 19th century, sheet-music publishers dominated the music industry. Before the invention of sound recording technologies, the main way for music lovers to hear new symphonies and opera arias (songs) was to buy the sheet music (often arranged for piano or for a small chamber music group) and perform the music in a living room, using friends who were amateur musicians and singers. In

696-414: A certain market niche. Only the industry's most popular artists are signed directly to the major label. These companies account for more than half of US market share. However, this has fallen somewhat in recent years, as the new digital environment allows smaller labels to compete more effectively. Total album sales have declined in the early decades of the 21st century, leading some music critics to declare

812-518: A composer and a lyricist ( Andrew Lloyd Webber with Tim Rice , or Elton John with Bernie Taupin ), a performer and a producer ( Madonna with Patrick Leonard or Mariah Carey with Walter Afanasieff ), or between bandmates ( Mick Jagger and Keith Richards of the Rolling Stones or Björn Ulvaeus and Benny Andersson of ABBA ). According to Billboard , the songwriting partnership between John Lennon and Paul McCartney remains

928-419: A composer's music might only be known in the city she lived in and its surrounding towns, because only wealthy aristocrats would be able to afford to have hand copies made of her music. With music printing, though, a composer's music could be printed and sold at a relatively low cost to purchasers from a wide geographic area. As sheet music of major composer's pieces and songs began to be printed and distributed in

1044-464: A daily or hourly rate) in a recording session . In the 21st century, advances in digital recording technology have allowed many producers and artists to create " home studios " using high-end computers and digital recording programs like Pro Tools , bypassing the traditional role of the commercial recording studio. The record producer oversees all aspects of the recording, making many of the logistic, financial and artistic decisions in cooperation with

1160-512: A fixed price per song or album, Spotify pays artists based on their "market share" (the number of streams for their songs as a proportion of total songs streamed on the service). Spotify distributes approximately 70% to rights-holders, who will then pay artists based on their agreements. The variable, and (some say) inadequate nature of this compensation, has led to criticism. Spotify reports paying on average US$ 0.006 to US$ 0.008 per stream. In response to concerns, Spotify claims that they are benefiting

1276-545: A label continues to be a popular choice for up-and-coming musicians, especially in genres like hardcore punk and extreme metal , even though indies cannot offer the same financial backing of major labels. Some bands prefer to sign with an indie label, because these labels typically give performers more artistic freedom. In the first decade of the 2000s, digitally downloaded and streamed music became more popular than buying physical recordings (e.g. CDs , records and tapes ). This gave consumers almost "friction-less" access to

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1392-521: A laptop in a bedroom and to distribute it over the Internet to a worldwide audience. This, in turn, has caused problems for recording studios, record producers and audio engineers : the Los Angeles Times reports that as many as half of the recording facilities in that city have failed. Changes in the music industry have given consumers access to a wider variety of music than ever before, at

1508-546: A large amount of data is processed. Access to big data may increase transparency in the industry. Music publishing using machine-printed sheet music developed during the Renaissance music era in the mid-15th century. The development of music publication followed the evolution of printing technologies that were first developed for printing regular books . After the mid-15th century, mechanical techniques for printing sheet music were first developed. The earliest example,

1624-412: A nationwide and sometimes even a worldwide scale. Moreover, whereas attendance at the top symphony and opera concerts was formerly restricted to high-income people in a pre-radio world, with broadcast radio , a much larger wider range of people, including lower and middle-income people could hear the best orchestras , big bands , popular singers and opera shows. The "record industry" eventually replaced

1740-402: A number of elements for a song, including an introduction, various verses and a chorus. At minimum, a songwriter must prepare a lead sheet for a song, which consists of one or more pieces of sheet music with the melody notes and chord progression indicated on it. The songwriter may expand upon the melody and chord progression by adding an instrumental melody (which may occur before or after

1856-476: A percentage of the artist's income. An entertainment lawyer assists them with the details of their contracts with record companies and other deals. A business manager handles financial transactions, taxes, and bookkeeping. Unions, such as AFTRA and the American Federation of Musicians in the U.S. provide health insurance and instrument insurance for musicians. A successful artist functions in

1972-545: A performing artist and a venue owner and arranges contracts. A booking agency represents the artist to promoters, makes deals and books performances. Consumers usually buy tickets either from the venue or from a ticket distribution service such as Ticketmaster . In the US, Live Nation is the dominant company in all of these roles: they own most of the large venues in the US, they are the largest promoter, and they own Ticketmaster . Choices about where and when to tour are decided by

2088-631: A picture of the album art or of the performer or band for each song. Some online music stores also sell recorded speech files, such as podcasts , and video files of movies . The first free, high-fidelity online music archive of downloadable songs on the Internet was the Internet Underground Music Archive (IUMA), which was started by Rob Lord, Jeff Patterson and Jon Luini from the University of California, Santa Cruz in 1993. Sony Music Entertainment Japan launched

2204-501: A price that gradually approaches zero. However, consumer spending on music-related software and hardware increased dramatically over the last decade, providing a valuable new income-stream for technology companies such as Apple Inc. and Pandora Radio . According to IFPI, the global digital album sales grew by 6.9% in 2014. Source: Nielsen SoundScan, Official Charts Company/BPI, GfK and IFPI estimate. World music market sales shares, according to IFPI (2005) Prior to December 1998,

2320-588: A printer and publisher who was able to secure a twenty-year monopoly on printed music in Venice during the 16th century. Venice was one of the major business and music centers during this period. His Harmonice Musices Odhecaton , a collection of chansons printed in 1501, is commonly misidentified as the first book of sheet music printed from movable type. That distinction belongs to the Roman printer Ulrich Han's Missale Romanum of 1476. Nevertheless, Petrucci's later work

2436-516: A publisher can be the first step for any professional songwriting career, with some writers with a desire for greater independence outgrowing this set-up once they achieve a degree of success. Songwriter Allan Eshuijs described his staff writer contract at Universal Music Publishing as a starter deal. His success under the arrangement eventually allowed him to found his own publishing company so that he could "keep as much [publishing income] as possible and say how it's going to be done." A beatmaker

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2552-504: A range of professionals who assist singers and musicians with their music careers. These include talent managers , artists and repertoire managers, business managers , entertainment lawyers ; those who broadcast audio or video music content ( satellite , Internet radio stations , broadcast radio and TV stations ); music journalists and music critics ; DJs ; music educators and teachers ; manufacturers of musical instruments and music equipment; as well as many others. In addition to

2668-433: A record company. In the 2000s, consumer electronics and computer companies such as Apple Computer have become digital music retailers . New digital music distribution technologies and the trends towards using sampling of older songs in new songs or blending different songs to create "mashup" recordings have also forced both governments and the music industry to re-examine the definitions of intellectual property and

2784-481: A report in 2012, noting that these labels controlled 88.5% of the market, and further noted: Note: the IFPI and Nielsen Soundscan use different methodologies, which makes their figures difficult to compare casually, and impossible to compare scientifically. Market shares as of September 2018 are as follows: The largest players in this industry own more than 100 subsidiary record labels or sublabels, each specializing in

2900-408: A rock producer that may rarely contribute as a co-writer of a song. A top-line writer or top-liner is a songwriter who writes a song over a pre-made beat. In top-lining, the writer is not creating a song from scratch, but rather creating lyrics and melodies over an existing music genre , tonality , harmony , rhythm , and form of a song. In modern commercial writing, it is a common practice for

3016-556: A set of liturgical chants, dates from about 1465, shortly after the Gutenberg Bible was printed. Prior to this time, music had to be copied out by hand. To copy music notation by hand was a very costly, labor-intensive, and time-consuming process, so it was usually undertaken only by monks and priests seeking to preserve sacred music for the church. The few collections of secular (non-religious) music that are extant were commissioned and owned by wealthy aristocrats. Examples include

3132-632: A single composition and a single recording will typically be distributed via many media. For example, the song " My Way " is owned by its composers, Paul Anka and Claude François , Frank Sinatra 's recording of "My Way" is owned by Capitol Records , Sid Vicious 's recording of "My Way" is owned by Virgin Records , and the millions of CDs and vinyl records that can play these recordings are owned by millions of individual consumers. Songs , instrumental pieces and other musical compositions are created by songwriters or composers and are originally owned by

3248-481: A small tour with less financial backing, all of these jobs may be handled by just a few roadies or by the musicians themselves. Bands signed with small "indie" labels and bands in genres such as hardcore punk are more likely to do tours without a road crew, or with minimal support. Artists such as singers and musicians may hire several people from other fields to assist them with their career. The artist manager oversees all aspects of an artist's career in exchange for

3364-488: A song becomes a hit record ; legally, in the US, songs written after 1934 may be copied only by the authors. The legal power to grant these permissions may be bought, sold or transferred. This is governed by international copyright law . Songwriters can be employed in a variety of different ways. They may exclusively write lyrics or compose music alongside another artist, present songs to A&R , publishers, agents and managers for consideration. Song pitching can be done on

3480-473: A song created under an employment contract cannot be "recaptured" by the writer after 35 years. In Nashville, young writers are often strongly encouraged to avoid these types of contracts. Staff writers are common across the whole industry, but without the more office-like working arrangements favoured in Nashville. All the major publishers employ writers under contract. Obtaining a staff writer contract with

3596-472: A songwriter's behalf by their publisher or independently using tip sheets like RowFax , the MusicRow publication and SongQuarters . Skills associated with song-writing include entrepreneurism and creativity. Staff writers do not necessarily get printed credit for their contributions to the song. Songwriters who sign an exclusive songwriting agreement with a publisher are called staff writers . Being

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3712-430: A staff writer effectively means that, during the term of the songwriter's contract with the publisher, all their songs are automatically published by that company and cannot be published elsewhere. In the Nashville country music scene, there is a strong staff writer culture where contracted writers work normal "9-to-5" hours at the publishing office and are paid a regular salary, says staff writer Gary Growden. This salary

3828-582: A wider area, this enabled composers and listeners to hear new styles and forms of music. A German composer could buy songs written by an Italian or English composer, and an Italian composer could buy pieces written by Dutch composers and learn how they wrote music. This led to more blending of musical styles from different countries and regions. The pioneer of modern music printing was Ottaviano Petrucci (born in Fossombrone in 1466 – died in 1539 in Venice),

3944-586: A wider variety of music than ever before, across multiple devices. At the same time, consumers spent less money on recorded music (both physically and digitally distributed) than they had in the 1990s. Total "music-business" revenues in the U.S. dropped by half, from a high of $ 14.6 billion in 1999 to $ 6.3 billion in 2009, according to Forrester Research . Worldwide revenues for CDs, vinyl , cassettes and digital downloads fell from $ 36.9 billion in 2000 to $ 15.9 billion in 2010 according to IFPI. The Economist and The New York Times reported that

4060-531: Is a business that sells digital audio files of music recordings over the Internet . Customers gain ownership of a license to use the files, in contrast to a music streaming service , where they listen to recordings without gaining ownership. Customers pay either for each recording or on a subscription basis. Online music stores generally also offer partial streaming previews of songs, with some songs even available for full length listening. They typically show

4176-444: Is a songwriter who creates and composes music or beats for a song, often laying the groundwork or 'musical bed'. Then a composer who specializes in melody will create the top line for the track. Tools typically used are keyboards, drum machines, softsynths and digital audio workstations . Beat makers or composers are not necessarily record producers by definition or acting role since they generally do not work directly with an artist in

4292-422: Is because the process of "working out" a song or arrangement requires a songwriter to play an instrument, typically the guitar or the piano , to hear how the chord progression sounds and to hear how well a given set of chords supports a melody. In addition to selling their songs and musical concepts for other artists to sing, some songwriter-musicians create songs to perform themselves. Songwriters need to create

4408-400: Is co-written, written jointly or written in collaboration with other authors. Co-writers may use the "stream of consciousness" approach, referring to having ideas flow rather than being discussed. The first step in co-writing is to establish the division of the contribution between co-writers. In copyright law, there is no distinction of importance between the lyrics of the song or the melody of

4524-432: Is in effect the writer's "draw", an advance on future earnings, which is paid monthly and enables them to live within a fixed budget. The publisher owns the copyright of songs written during the term of the agreement for a designated period, after which the songwriter can reclaim the copyright. In an interview with HitQuarters , songwriter Dave Berg extolled the benefits of the set-up: "I was able to concentrate on writing

4640-573: Is less clear-cut. Some date it to the start of the Great Depression in the 1930s when the phonograph and radio supplanted sheet music as the driving force of American popular music, while others consider Tin Pan Alley to have continued into the 1950s when earlier styles of American popular music were upstaged by the rise of rock & roll . At the dawn of the early 20th century, the development of sound recording began to function as

4756-563: Is paid to songwriters, composers and recording artists. This royalty is typically much smaller than publishing or mechanical royalties . Within the past decade, more than "15 to 30 percent" of tracks on streaming services are unidentified with a specific artist. Jeff Price says "Audiam, an online music streaming service, has made over several hundred thousand dollars in the past year from collecting royalties from online streaming. According to Ken Levitan, manager from Kings of Leon, Cheap Trick and others, "Youtube has become radio for kids". Because of

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4872-550: Is responsible in creating the entire music and lyrics of a song. According to Billboard , 44% of the songs that reached number one on the Billboard Hot 100 chart during the 1970s were written by just one songwriter. The percentage declined to 42% in the 1980s, 24% in the 1990s, 6% in the 2000s, and 4% in the 2010s. Lionel Richie and Diane Warren are the only songwriters with at least 8 number-one singles written solely by themselves. Songs written by more than one person

4988-504: Is signed. A publishing company will also promote the compositions, such as by acquiring song "placements" on television or in films . Recordings are created by recording artists , which includes singers , musicians (including session musicians ) and musical ensembles (e.g. backing bands , rhythm sections , orchestras , etc.) usually with the assistance and guidance from record producers and audio engineers . They were traditionally made in recording studios (which are rented for

5104-578: Is the largest owner of radio stations in the United States . In the first decades of the 2000s, the music industry underwent drastic changes with the advent of widespread digital distribution of music via the Internet (which includes both illegal file sharing of songs and legal music purchases in online music stores ). A conspicuous indicator of these changes is total music sales: since 2000, sales of recorded music have dropped off substantially while live music has increased in importance. In 2011,

5220-483: The K-pop music industry. Sampling is the reuse of a portion (or sample) of a sound recording in another recording. The original songwriter(s) of a song usually receive co-writing credit when their work is sampled on another song, although they did not literally involve in making the latter. For example, Sting is credited as a co-writer alongside Todd Gaither and Faith Evans for " I'll Be Missing You " (1997) due to

5336-427: The Renaissance music era. His printing shop used the triple-impression method, in which a sheet of paper was pressed three times. The first impression was the staff lines, the second the words, and the third the notes. This method produced very clean and readable results, although it was time-consuming and expensive. Until the 18th century, the processes of formal composition and of the printing of music took place for

5452-562: The Squarcialupi Codex of Italian Trecento music and the Chantilly Codex of French Ars subtilior music. The use of printing enabled sheet music to be reproduced much more quickly and at a much lower cost than hand-copying music notation. This helped musical styles to spread to other cities and countries more quickly, and it also enabled music to be spread to more distant areas. Before the invention of music printing,

5568-418: The artist's management and the artist, sometimes in consultation with the record company . Record companies may finance a tour in the hopes that it will help promote the sale of recordings. However, in the 21st century, it has become more common to release recordings to promote ticket sales for live shows, rather than book tours to promote the sales of recordings. Major, successful artists will usually employ

5684-535: The death of the album . (For instance, the only albums that went platinum in the US in 2014 were the soundtrack to the Disney animated film Frozen and Taylor Swift's 1989 , whereas several artists did in 2013.) The following table shows album sales and market value in the world in 2014. Source: IFPI 2014 annual report. In its June 30, 2000 annual report filed with the U.S. Securities and Exchange Commission , Seagram reported that Universal Music Group made 40% of

5800-464: The singers , musicians , conductors , and bandleaders who perform the music; the record labels , music publishers , recording studios , music producers , audio engineers , retail and digital music stores , and performance rights organizations who create and sell recorded music and sheet music; and the booking agents , promoters , music venues , road crew , and audio engineers who help organize and sell concerts. The industry also includes

5916-402: The 1930s and 1950s, when records replaced sheet music as the most important product in the music business. In the commercial world, "the recording industry"—a reference to recording performances of songs and pieces and selling the recordings–began to be used as a loose synonym for "the music industry". In the 2000s, a majority of the music market is controlled by three major corporate labels:

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6032-621: The 2000s, traditional lines that once divided singers, instrumentalists, publishers, record companies, distributors, retail and consumer electronics have become blurred or erased. Artists may record in a home studio using a high-end laptop and a digital recording program such as Pro Tools or use Kickstarter to raise money for an expensive studio recording session without involving a record company. Artists may choose to exclusively promote and market themselves using only free online video sharing services such as YouTube or using social media websites, bypassing traditional promotion and marketing by

6148-705: The French-owned Universal Music Group , the Japanese-owned Sony Music Entertainment , and the US-owned Warner Music Group . Labels outside of these three major labels are referred to as independent labels (or "indies"). The largest portion of the live music market for concerts and tours is controlled by Live Nation , the largest promoter and music venue owner. Live Nation is a former subsidiary of iHeartMedia Inc , which

6264-428: The Internet. With streaming services, the user pays a subscription to a company for the right to listen to songs and other media from a library. Whereas with legal digital download services, the purchaser owns a digital copy of the song (which they can keep on their computer or on a digital media player), with streaming services, the user never downloads the song file or owns the song file. The subscriber can only listen to

6380-548: The United States became known as Tin Pan Alley . The name originally referred to a specific place: West 28th Street between Fifth and Sixth Avenue in Manhattan , and a plaque (see below ) on the sidewalk on 28th Street between Broadway and Sixth commemorates it. The start of Tin Pan Alley is usually dated to about 1885, when several music publishers set up shop in the same district of Manhattan . The end of Tin Pan Alley

6496-475: The United States, the music industry arose in tandem with the rise of " black face " minstrelsy . Blackface is a form of theatrical makeup used predominantly by non-black performers to represent a black person . The practice gained popularity during the 19th century and contributed to the spread of negative racial stereotypes of African-American people. In the late part of the century the group of music publishers and songwriters which dominated popular music in

6612-419: The album paid nothing, with the average price paid being £4. After three months online the album was taken down by the band and released on compact disc (CD). As of April 2008 , the largest online music store was the iTunes Store , with around 80% of the market. On 3 April 2008, the iTunes Store surpassed Wal-Mart as the biggest music retailer in the United States, a milestone in the music industry as it

6728-450: The artists. The record producer has a range of different responsibilities including choosing material and/or working with the composers, hiring session musicians, helping to arrange the songs, overseeing the musician performances, and directing the audio engineer during recording and mixing to get the best sound. Audio engineers (including recording , mixing and mastering engineers ) are responsible for ensuring good audio quality during

6844-420: The business relationship between a recording artist and the record company. In a traditional contract, the company provides an advance to the artist who agrees to make a recording that will be owned by the company. The A&R department of a record company is responsible for finding new talent and overseeing the recording process. The company pays for the recording costs and the cost of promoting and marketing

6960-523: The businesses and artists there are organizations that also play an important role, including musician's unions (e.g. American Federation of Musicians ), not-for-profit performance-rights organizations (e.g. American Society of Composers, Authors and Publishers ) and other associations (e.g. International Alliance for Women in Music , a non-profit organization that advocates for women composers and musicians ). The modern Western music industry emerged between

7076-499: The composer, although they may be sold or the rights may be otherwise assigned. For example, in the case of work for hire , the composition is owned immediately by another party. Traditionally, the copyright owner licenses or "assigns" some of their rights to publishing companies , by means of a publishing contract . The publishing company (or a collection society operating on behalf of many such publishers, songwriters and composers) collects fees (known as " publishing royalties ") when

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7192-417: The composition is used. A portion of the royalties are paid by the publishing company to the copyright owner, depending on the terms of the contract. Sheet music provides an income stream that is paid exclusively to the composers and their publishing company. Typically (although not universally), the publishing company will provide the owner with an advance against future earnings when the publishing contract

7308-549: The consumers after they buy them. Buyers do not typically have the right to make digital copies from CDs or other media they buy, or rent or lease the CDs, because they do not own the recording on the CD, they only own the individual physical CD. A music distributor delivers crates of the packaged physical media from the manufacturer to the retailer and maintains commercial relationships with retailers and record companies. The music retailer pays

7424-649: The creation of portable music and digital audio players such as the iPod . These players enabled music fans to carry their music with them, wherever they went. Amazon launched its Amazon MP3 service for the US in September 2007, expanding it gradually to most countries where Amazon operates. An increasing number of new services appeared in the 2000s that enabled musicians to sell their music directly to fans without an intermediary. These type of services usually use e-commerce -enabled web widgets that embed into many types of web pages. This turns each web page into

7540-629: The debut of the Apple iTunes Store in 2003. The popularity of music distribution over the Internet has increased, and by 2011 digital music sales topped physical sales of music. In 2008, Atlantic Records reports that digital sales have surpassed physical sales. However, as The Economist reported, "paid digital downloads grew rapidly, but did not begin to make up for the loss of revenue from CDs". After 2010, Internet-based services such as Deezer , Pandora , Spotify , and Apple's iTunes Radio began to offer subscription-based " pay to stream " services over

7656-570: The decline in sales of recordings. The 2008 British Music Rights survey showed that 80% of people in Britain wanted a legal peer-to-peer (P2P) file-sharing service, however only half of the respondents thought that the music's creators should be paid. The survey was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based. Legal digital downloads became widely available with

7772-586: The distributor, who in turn pays the record company for the recordings. The record company pays mechanical royalties to the publisher and composer via a collection society. The record company then pays royalties, if contractually obligated, to the recording artist. When music is digitally downloaded or streamed , there is no physical media other than the consumer's computer memory on his or her portable media player or laptop. For this reason, artists such as Taylor Swift, Paul McCartney, Kings of Leon, and others have called for legal changes that would deny social media

7888-448: The downward trend was expected to continue for the foreseeable future. This dramatic decline in revenue has caused large-scale layoffs inside the industry, driven some more venerable retailers (such as Tower Records ) out of business and forced record companies, record producers, studios, recording engineers and musicians to seek new business models . In response to the rise of widespread illegal file sharing of digital music-recordings,

8004-415: The early illegal file sharing days. However, the multitude of service offerings and revenue models make it difficult to understand the true value of each and what they can deliver for musicians and music companies. As well, there are major transparency problems throughout the music industry caused by outdated technology. With the emerging of new business models as streaming platforms, and online music services,

8120-481: The end of the 1980s, the "Big six" — EMI , CBS , BMG , PolyGram , WEA and MCA — dominated the industry. Sony bought CBS Records in 1987 and changed its name to Sony Music in 1991. In mid-1998, PolyGram Music Group merged with MCA Music Entertainment creating what we now know as Universal Music Group . Since then, Sony and BMG merged in 2004, and Universal took over the majority of EMI's recorded music interests in 2012. EMI Music Publishing , also once part of

8236-497: The end, consumers chose instead to download music using illegal, free file sharing programs, which many consumers felt were more convenient and easier to use. Non-major label services like eMusic , Cductive and Listen.com (now Rhapsody) sold the music of independent labels and artists. The demand for digital audio downloading skyrocketed after the launch of Apple's iTunes Store (then called iTunes Music Store ) in April 2003 and

8352-552: The first digital music store in Japan on 20 December 1999, entitled Bitmusic, which initially focused on A-sides of singles released by Japanese domestic musicians. The realization of the market for downloadable music grew widespread with the development of Napster , a music and file sharing service created by Shawn Fanning that made a major impact on the Internet scene in 2000. Some services have tethered downloads, meaning that playing songs requires an active membership. Napster

8468-481: The industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", commanding 77.4% of the market, as follows, according to MEI World Report 2000: In 2004, the joint venture of Sony and BMG created the 'Big Four' at a time the global market

8584-427: The largest recorded music retailer in the world was now a digital, Internet -based platform operated by a computer company: Apple Inc. 's online iTunes Store . Since 2011, the music industry has seen consistent sales growth with streaming now generating more revenue per year than digital downloads. Spotify , Apple Music , and Amazon Music are the largest streaming services by subscriber count. The main branches of

8700-399: The late 1880s, and later the onset of widespread radio broadcasting , starting in the 1920s, forever changed the way music was heard and listened to. Opera houses, concert halls, and clubs continued to produce music and musicians and singers continued to perform live, but the power of radio allowed bands, ensembles and singers who had previously performed only in one region to become popular on

8816-451: The main reason for this shift, as it originally sold every song in its library for 99 cents. Historically, albums would be sold for about five times the cost of a single, but iTunes was selling every song for a tenth of the price of an album. However, in order to increase album sales, iTunes instituted "Complete My Album", which offered a discounted price on the full album when a consumer had already purchased one or more songs. Furthermore, with

8932-459: The majority of their income, which in turn has made them more dependent – like pre-20th-century musicians – on patrons, now exemplified by music promoters such as Live Nation (which dominates tour promotion and owns or manages a large number of music venues ). In order to benefit from all of an artist's income streams, record companies increasingly rely on the " 360 deal ", a new business-relationship pioneered by Robbie Williams and EMI in 2007. At

9048-490: The market as a brand and, as such, they may derive income from many other streams, such as merchandise , personal endorsements, appearances (without performing) at events or Internet-based services. These are typically overseen by the artist's manager and take the form of relationships between the artist and companies that specialize in these products. Singers may also hire a vocal coach , dance instructor , acting coach , personal trainer or life coach to help them. In

9164-534: The market: After the absorption of EMI by Sony Music Entertainment and Universal Music Group in December 2011 the "big three" were created and on January 8, 2013, after the merger there were layoffs of forty workers from EMI. European regulators forced Universal Music to spin off EMI assets which became the Parlophone Label Group which was acquired by Warner Music Group. Nielsen SoundScan issued

9280-418: The melodies or lyrics. There is a way to prevent such legal battles. A songwriter can commit their "intent to make a song", which prevents any of the parties ripping the song apart. Some artists send out a legal disclaimer making clear that if their melody is not used after doing a topline, it reverts to them, and the track back to the track writer. Songwriters are also often skilled musicians. In part, this

9396-435: The mix stage. They are referred to as Record Producer / Songwriters as they generally receive songwriting and production credits for both roles. This is especially true for R&B, hip-hop producers in urban hip hop production , when composing the original music as the co-writer is integrated into their traditional role as a Record Producer, such as Rodney Jerkins , Dr. Dre , Timbaland or Pharrell Williams , as opposed to

9512-528: The most part with the support of patronage from aristocracies and churches . In the mid-to-late 18th century, performers and composers such as Wolfgang Amadeus Mozart began to seek more commercial opportunities to market their music and performances to the general public. After Mozart's death, his wife ( Constanze Weber ) continued the process of commercialization of his music through an unprecedented series of memorial concerts, selling his manuscripts, and collaborating with her second husband, Georg Nissen , on

9628-600: The most successful one of all time, resulting over 180 songs and a record 20 number ones for the Beatles on the Billboard Hot 100. Songwriting camp is a gathering of multiple producers and topliners in a pre-selected location for the purpose of writing songs for a specific artist. As one of the most successful artists in releasing many hit songs , Rihanna has been known for holding various writing camps to make her albums. Writing camps are also very popular in

9744-424: The music business by migrating "them away from piracy and less monetized platforms and allowing them to generate far greater royalties than before" by encouraging users to use their paid service. The Recording Industry Association of America (RIAA) revealed in its 2015 earnings report that streaming services were responsible for 34.3 percent of the year's U.S. recorded-music-industry revenue, growing 29 percent from

9860-504: The music industry are the live music industry, the recording industry , and all the companies that train, support, supply and represent musicians. The recording industry produces three separate products: compositions (songs, pieces, lyrics), recordings (audio and video) and media (such as CDs or MP3s , and DVDs ). These are each a type of property : typically, compositions are owned by composers, recordings by record companies, and media by consumers. There may be many recordings of

9976-417: The musical track to be produced first without any vocal melody or lyrics. This is partially due to the rise of portable music production equipment and digital audio workstations that are designed for the swift arrangement of electronic music, such as Cubase and Ableton Live . The top-liner usually is also a singer, and will sing over the track as the demo singer. If the song is for a particular artist,

10092-418: The musician's own online music store. Furthermore, there had been a boom in "boutique" music stores that cater to specific audiences. On October 10, 2007, English rock band Radiohead released the album In Rainbows as a download. Listeners were allowed to purchase the album for whatever price they wanted to pay, legally allowing them to download the album for free. About one-third of people who downloaded

10208-686: The now defunct British conglomerate, is now co-owned by Sony as a subsidiary of Sony/ATV Music Publishing . As in other industries, the record industry is characterised by many mergers and/or acquisitions, for the major companies as well as for middle sized business (recent example is given by the Belgium group PIAS and French group Harmonia Mundi ). Genre-wise, music entrepreneurs expanded their industry models into areas like folk music , in which composition and performance had continued for centuries on an ad hoc self-supporting basis. Forming an independent record label , or "indie" label, or signing to such

10324-535: The other extreme, record companies can offer a simple manufacturing- and distribution-deal , which gives a higher percentage to the artist, but does not cover the expenses of marketing and promotion. Companies like Kickstarter help independent musicians produce their albums through fans funding bands they want to listen to. Many newer artists no longer see a record deal as an integral part of their business plan at all. Inexpensive recording-hardware and -software make it possible to record reasonable-quality music on

10440-464: The overuse of YouTube and offline streaming, album sales have fallen by 60 percent in the past few years. When recordings are used in television and film , the composer and their publishing company are typically paid through a synchronization license . In the 2000s, online subscription services (such as Rhapsody ) also provide an income stream directly to record companies, and through them, to artists, contracts permitting. A promoter brings together

10556-535: The patron did not own the audio file. After a certain point the files expired and could not be played again without repurchase. The service quickly failed. Undaunted, the record industry tried again. Universal Music Group and Sony Music Entertainment teamed up with a service called Duet, later renamed pressplay . EMI , AOL/Time Warner and Bertelsmann Music Group teamed up with MusicNet. Again, both services struggled, hampered by high prices and heavy limitations on how downloaded files could be used once paid for. In

10672-425: The presentation and packaging of songs and albums. Sony Music Entertainment 's service did not do as well as was hoped. Many consumers felt the service was difficult to navigate and use. Sony's pricing of US$ 3.50 per song track also discouraged many early adopters of the service. Furthermore, as MP3 Newswire pointed out in its review of the service, users were actually only renting the tracks for that $ 3.50, because

10788-411: The previous year and becoming the largest source of income, pulling in around $ 2.4 billion. US streaming revenue grew 57 percent to $ 1.6 billion in the first half of 2016 and accounted for almost half of industry sales. This contrasts with the $ 14.6 billion in revenue that was received in 1999 by the U.S. music industry from the sale of CDs. The turmoil in the recorded-music industry in the 2000s altered

10904-589: The publishing royalties described above. This portion is similar to a percentage, but may be limited or expanded by a number of factors (such as free goods, recoupable expenses, bonuses, etc.) that are specified by the record contract. Session musicians and orchestra members (as well as a few recording artists in special markets) are under contract to provide work for hire ; they are typically only paid one-time fees or regular wages for their services, rather than ongoing royalties. Physical media (such as CDs or vinyl records) are sold by music retailers and are owned by

11020-442: The record industry took aggressive legal action. In 2001 it succeeded in shutting down the popular music-website Napster , and threatened legal action against thousands of individuals who participated in sharing music-song sound-files. However, this failed to slow the decline in music-recording revenue and proved a public-relations disaster for the music industry. Some academic studies have even suggested that downloads did not cause

11136-415: The record. For physical media (such as CDs ), the company also pays to manufacture and distribute the physical recordings. Smaller record companies (known as " indies ") will form business relationships with other companies to handle many of these tasks. The record company pays the recording artist a portion of the income from the sale of the recordings, also known as a "royalty", but this is distinct from

11252-566: The recording, but others may restrict the user to storing the music on a specific number of hard drives or devices. When a recording is broadcast (either on radio or by a background music service such as Muzak ), performance rights organisations (such as the ASCAP and BMI in the US, SOCAN in Canada, or MCPS and PRS in the UK), collect a third type of royalty known as a performance royalty, which

11368-524: The recording. They select and set up microphones and use effects units and mixing consoles to adjust the sound and level of the music. A recording session may also require the services of an arranger , orchestrator , studio musicians , session musicians , vocal coaches , or even a discreetly hired ghostwriter to help with the lyrics or songwriting . Recordings are (traditionally) owned by record companies . Some artists own their own record companies (e.g. Ani DiFranco ). A recording contract specifies

11484-554: The right to stream their music without paying them royalties. In the digital and online music market of the 2000s, the distributor becomes optional. Large online shops may pay the labels directly, but digital distributors do exist to provide distribution services for vendors large and small. When purchasing digital downloads or listening to music streaming, the consumer may be required to agree to record company and vendor licensing terms beyond those which are inherent in copyright ; for example, some services may allow consumers to freely share

11600-435: The rights of all the parties involved. Also compounding the issue of defining copyright boundaries is the fact that the definition of "royalty" and "copyright" varies from country to country and region to region, which changes the terms of some of these business relationships. After 15 or so years of the Internet economy, the digital music industry platforms like iTunes , Spotify , and Google Play are major improvements over

11716-519: The rising popularity of Cyber Monday , online music stores have further gained ground over other music distribution sources. iTunes rolled out an Instant Gratification ( instant grat ) service, in which some individual tracks or bonus tracks were made available to customers who have pre-ordered albums. The instant-grat tracks have changed the criteria for the UK Official Charts 's singles. In 2013, David Bowie 's " Where Are We Now? "

11832-688: The role of producer is not generally understood by the public, the average listener does not know when an artist also takes on the role of producer. Brian Wilson of the Beach Boys is one of the earliest and most widely known examples of a songwriter turned music producer. Within two years of the band's commercial breakthrough, Wilson had taken over from his father Murry, and he was the sole producer of all their recordings between 1963 and 1967. Many singers also write songs for themselves, and as such, they are usually referred to as singer-songwriters. In solitary songwriting or sole writing, only one person

11948-512: The sample of " Every Breath You Take " (1983), a song he solely wrote for the Police . However, "I'll Be Missing You" did not have legal approval for the sample before its release, thus Sting sued and received 100% of the song royalties, with payments reportedly going until 2053. Beyoncé 's album Lemonade (2016) features as many as 72 co-writers due to use of samples in majority of its tracks. Online music store A digital music store

12064-468: The sheet music publishers as the music industry's largest force. A multitude of record labels came and went. Some noteworthy labels of the earlier decades include the Columbia Records , Crystalate, Decca Records , Edison Bell, The Gramophone Company , Invicta, Kalliope, Pathé , Victor Talking Machine Company and many others. Many record companies died out as quickly as they had formed, and by

12180-537: The song for as long as they continue to pay the streaming subscription. Once the user stops paying the subscription, they cannot listen to audio from the company's repositories anymore. Streaming services began to have a serious impact on the industry in 2014. Spotify , together with the music-streaming industry in general, faces some criticism from artists claiming they are not being fairly compensated for their work as downloaded-music sales decline and music-streaming increases. Unlike physical or download sales, which pay

12296-526: The song, therefore each writer is given equal ownership over the song, unless another agreement is arranged. "Phantom" songwriters provide small contributions to songs. The songwriter suggests a line for a verse or a session musician who informally proposes a chord progression for a coda. "Phantom" songwriters are usually not given credit. Songwriting partnership or songwriting duo is a prolific collaboration which consists of two songwriters, usually sharing 50% royalty each. Songwriting partnership can be between

12412-531: The top-liner may sing the demo in that artist's style. Top-liners often work in groups to co-write. Sometimes producers send out tracks to more than one top-line writer so that the producer or singer could choose the best option. Since the track is the same, melodies by different writers can sometimes be very similar. Occasionally, the producer might choose a few lines of melodic or lyrical ideas from one top-liner without properly crediting or paying them. These situations sometimes result in legal battles over ownership of

12528-403: The twentieth-century balance between artists, record companies, promoters, retail music-stores and consumers. As of 2010, big-box stores such as Wal-Mart and Best Buy sell more records than music-only CD stores, which have ceased to function as a major player in the music industry. Music-performing artists now rely on live performance and merchandise sales (T-shirts, sweatshirts, etc.) for

12644-401: The vocal melody, or alongside the vocal melody) and creating a more complex song structure (e.g., verse, chorus, bridge, instrumental solo section, etc.). With recent technological improvements, a songwriter can now create commercially viable music almost entirely on their laptop. This technological advancement has made the producer/songwriter role a much more popular occurrence. Perhaps because

12760-489: The whole time and have always had enough money to live on." Unlike contracted writers, some staff writers operate as employees for their respective publishers. Under the terms of these work for hire agreements, the compositions created are fully owned by the publisher. Because the recapture provision of the United States Copyright Act of 1976 does not apply to "works made for hire", the rights to

12876-667: The worldwide classical music sales over the preceding year. Interim physical retail sales in 2005. All figures in millions. Songwriter The old-style apprenticeship approach to learning how to write songs is being supplemented by university degrees , college diplomas and "rock schools". Knowledge of modern music technology (sequencers, synthesizers, computer sound editing), songwriting elements and business skills are significant for modern songwriters. Several music colleges offer songwriting diplomas and degrees with music business modules. Since songwriting and publishing royalties can be substantial sources of income, particularly if

12992-454: Was estimated at $ 30–40 billion. Total annual unit sales (CDs, music videos, MP3s ) in 2004 were 3 billion. Additionally, according to an IFPI report published in August 2005, the big four accounted for 71.7% of retail music sales: US music market shares, according to Nielsen SoundScan (2011) Nielsen SoundScan in their 2011 report noted that the "big four" controlled about 88% of

13108-528: Was extraordinary for the complexity of his white mensural notation and the smallness of his font. He printed the first book of polyphony (music with two or more independent melodic lines) using movable type. He also published numerous works by the most highly regarded composers of the Renaissance, including Josquin des Prez and Antoine Brumel . He flourished by focusing on Flemish works, rather than Italian, as they were very popular throughout Europe during

13224-1092: Was founded as a pioneering peer-to-peer (P2P) file sharing Internet service that emphasized sharing audio files, typically music, encoded in MP3 format. The original company ran into legal difficulties over copyright infringement , ceased operations and was eventually acquired by Roxio . In its second incarnation Napster became an online music store until Rhapsody acquired it from Best Buy on 1 December 2011. Later companies and projects successfully followed its P2P file sharing example such as Gnutella , Freenet , Kazaa , Bearshare, and many others. Some services, like LimeWire , Scour , Grokster , Madster , and eDonkey2000 , were brought down or changed due to similar circumstances. In 2000, Factory Records entrepreneur Tony Wilson and his business partners launched an early online music store, Music33, which sold MP3s for 33 pence per song. The major record labels eventually decided to launch their own online stores, allowing them more direct control over costs and pricing and more control over

13340-543: Was not allowed to chart because it was a pre-order for the album The Next Day , but Official Charts later ruled that effective February 10, 2013, certain instant grats could be allowed to appear in the Top 40. Instant grats have also been offered on other online music stores including Amazon and Spotify. Much controversy surrounds file sharing , so many of these points are disputed. Online music stores receive competition from online radio, as well as file sharing. Online radio

13456-426: Was the first time in history that an online music retailer exceeded those of physical music formats (e.g., record shops selling CDs). In the early 2010s, online music stores—especially iTunes—experienced a marked increase in sales. Consumer spending shifted away from the purchase of CDs in favor of purchasing albums from online music stores, or more commonly, purchasing individual songs. The iTunes platform has been

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