How Do Record Labels Make Money?

1. How do record labels make money? From the Artists -
Ticket Sales
Royalties Selling CDs
Merchandise

2. What do record labels have to pay out for? What expenses to labels incur?
Marketing and AD campaigns
Recording costs
Manufacturing costs
Distribution costs
Artist's Salary
Employee's Salary
Equipment costs

3. How has new media technology changed things for record labels?
Downloading Illegaly - Losing money
Can promote and supply more easily

4. List some advantages and disadvantages of new media technology for the labels
New media technology makes the music more accessible,
Easier to access new music
Losing money through downloading

5. What is DRM? Why is DRM good for the record labels?
Digital Rights Management
This is put in place by a lot of record labels as a way of restricting the distribution and copying of a work.
Its good for the labels as it ensures a steady revenue stream.
6. Does DRM work?
In January 2007, EMI stopped publishing audio CDs with DRM, stating that "the costs of DRM do not measure up to the results." Following EMI, Sony BMG was the last publisher to abolish DRM completely, and audio CDs containing DRM are no longer released by the four record labels

Music Industry Case Study

Music Industry Case Study

Four major labels:

Universal
Lady Gaga
The Lonely Island
Rihanna
Black eyed Peas
Subsidary Label
Interscope-Geffen-A&M

Warner
Greenday
My Chemical Romance
Dragonforce
Avenged Sevenfold
Subsidary Label
Giant Records

Sony
Bullet for My Valentine
Judas Priest
Tenacious D
Ozzy Osbourne
Subsidary Label
Def Jam Recordings

EMI
Alice in Chains
Alexander Rybak
Erasure
Kraftwerk
Subsidary Label
HMV