Music Industry Overview - created from Mind Map

The market for music products Changing Market Conditions Digital Music Market - Problems Move from physical to digital market Changing consumer behaviour & preference Changing business models Declining sales of physical product Many new digital services (over 500 services, available in more than 100 countries, over 30 million tracks licensed by record companies) Download stores Subscription services Ad-supported (Spotify) Webcasting (Pandora) Simulcasting Cloud services Music bundled with other product: eg - mobile phones Value decreasing Unauthorised use "Streaming is the future" Spotify Pandora Emily White's blog post David Lowery's reply Is there a solution? Litigation - Against Legislation Services (Hosting providers, P2P services, UGCs, Cyberlockers) Internet access providers End users (uploaders/downloaders) ISPs End users Blocking orders Laws providing 'safe harbours' from potential liability of ISPs Allowing take-down of infringing content France, Korea, NZ - '3-strikes laws' US - voluntary agreement on graduated response

Where does the money come from? Authors Record Labels Licensing Public performance / broadcasting royalties / Communication rights (75% of Income) Mechanical rights / Reproduction (17.5% of Income) Private copying levies (7.5% of Income) Synchronisation licenses Global sales of recorded music in 2013 - 65% of income from physical product, 35% from digital sales Physical product: copies in physical formats - CDs, vinyl Digital sales: Music as digital files sold online or over mobile networks Performance rights licensing Other Radio braodcasters Certain online services Bars, nightclubs, restaurants Dubbing/synchronisation Adaptation

Who are the key players in the business? Copyright or related rights granted under applicable copyright law Contractual rights with performers/authors/producers Performers Authors Record Producers Performing the song Lyricists & Composers - creating the song Recording & distributing the song Publishing Companies Artist Managers Collecting Societies Industry Bodies Studio Producers Responsible for collective licensing of rights on behalf of a category of 'players' Representing the interests of industry 'players' Dealing with enforcement, lobbying, public awareness

Who gets rights under copyright laws? Protected subject matter Rights owners Songs Performance Sound recording Composition (Musical work) Lyrics (Literary work) Performers / Artists Authors of song & lyrics Phonogram Producers / Record companies Singers Musicians 2 'groups' Obtain legal rights 'Featured Artists' 'Session Musicians' Usually enter into a detailed recording agreement with record company Agreement typically includes provisions dealing not only with legal rights, but also other obligations of the artist Payment of advance Royalties on sales Today more & more '360-degree deals' covering merchandising, touring etc Get paid for the particular recording session Separate & independent from rights granted to other 'players' Economic Moral

Music Industry Overview