Overview

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

IBISWorld’s Independent Label Music Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Self-distribution is decreasing demand and causing some emerging artists to forgo the indie spectrum
  • Some indie labels merged or consolidated during the recession, while others left the market entirely
  • New technologies have made music easier to access than ever before

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    Industry Analysis & Industry Trends

    Continual shifts from physical to digital media production and distribution have had a marked effect on the operations of music production labels in the Independent Label Music Production industry. The three major record labels (Warner, Universal and Sony) are slowly adapting, while smaller independent labels are diversifying revenue streams to adjust to the changing landscape. Sales of physical media and digital downloads have declined steadily over the past five years in response to emerging subscription-based streaming services. Labels are expected to focus on growing revenue from nontraditional revenue streams to offset declines in both physical sales and digital downloads...

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    Industry Report - Starting a New Business Chapter

    The industry's falling barriers to entry reflect the low level of capital investment needed to start a business, including the relatively modest costs required to attract and acquire a roster of performers. The industry is based largely on personality: an extensive network of contacts is essential both as a means of winning clients and as a way of selling licensed music for a profit to various media outlets.

    Decreasing barriers to entry are also due to the advent of digital technology, which empowers artists and passionate music lovers more than ever before. Musicians, given greater control over their own products, will often be inclined to enter the industry by creating their own independent labels to retain creative control, as the distribution of music becomes easier. How..

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    Additional Insights for the Independent Label Music Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Independent Label Music Production Industry are

  • Protection of intellectual property/copyrighting of output
  • Having a high profile in the market
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Album sales and Demand from major label music production in the Independent Label Music Production industry impact industry performance..

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    Industry Products

    What is the Independent Label Music Production Industry?

    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).

    Industry Products
    Physical sales (including CDs, vinyl, cassette tapes)
    Digital single sales
    Digital album sales
    Streaming revenue
    Industry Activities
    Financing of musical projects
    master recordings
    Ownership and sale of copyrighted music for licensing purposes

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Album sales
  • Demand from major label music production
  • Demand from record stores
  • Per capita disposable income
  • Median age of population

  • Current Performance
  • Music on the net
  • Passionate amateurs
  • Chart: Revenue Growth

  • Industry Outlook
  • Adapting to new consumer behaviors
  • Moderate growth
  • Table: Independent Label Music Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Independent Label Music Production Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Major Label Music Production
  • Music Publishing
  • Celebrity & Sports Agents

  • Key Selling Industries
  • Audio Production Studios
  • Recordable Media Manufacturing

  • Products & Services
  • Physical sales (including CDs, vinyl, cassette tapes)
  • Streaming revenue
  • Digital single sales
  • Digital album sales
  • Chart: Independent Label Music Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 18 to 24
  • Consumers aged 17 and younger
  • Consumers aged 35 to 49
  • Consumers aged 25 to 34
  • Consumers aged 50 and older
  • Chart: Major Market Segmentation for the Independent Label Music Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing and promotion
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Independent Label Music Production

  • Basis of Competition
  • Quality products and access to markets
  • Branding and marketing

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Independent Label Music Production Industry

  • Industry Globalization
    Major Companies
    Concord Music Group
  • Table: Concord Music Group - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Independent Label Music Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Independent Label Music Production Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Album sales (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    360 Deal
  • A contract between a label and an artist that allows revenue sharing from all artist activities rather than just music sales.
  • Digital Download
  • A one-time purchase and transfer of data from the internet to a computer or mobile device that can decode and play the data. The downloaded file is owned by the consumer upon purchase.
  • Indie
  • An abbreviation for an independent music label.
  • Label
  • Any music company that produces, publishes or distributes music.
  • Online Streaming
  • Unlike a digital download, consumers pay a recurring fee to access and listen to music from a digital provider. Files are not purchased individually and ownership is not transferred to the consumer.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Independent Label Music Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Independent Label Music Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Independent Label Music Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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