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

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...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • To combat falling album sales, industry operators have been continuously adapting to the digital landscape
  • The emergence of the internet greatly impacted the industry
  • The advent of the internet and cellular technology altered how consumers buy and listen to music
  • Industry Report - Industry Investment Chapter

    The Major Label Music Production industry carries a moderate level of capital intensity. For every dollar spent on wages, the average label will invest an estimated $0.23 in capital equipment. Some participants in the industry mass produce recordings themselves, while others outsource the mass production and focus only on the release, promotion and distribution of recordings. Companies that produce recordings themselves have a higher level of capital expenses.Capital expenditure includes warehousing, logistics and computerized inventory systems. Often service and product quality sets labels apart, neither of which have significant impacts on capital investment. Cap...purchase to read more.

    Additional Insights for the Major Label Music Production Industry

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

  • Control of distribution arrangements
  • Having a diverse range of clients
  • Production of goods currently favored by the market
  • IBISWorld analysts also discuss how external factors such as Number of broadband connections and Per capita disposable income in the Major Label Music Production industry impact industry performance..

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    What's in this report

    What is the Major Label Music Production Industry?

    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.

    Industry Products
  • Physical sales
  • Digital downloads
  • Streaming subscriptions
  • Synchronization
  • Industry Activities
  • Negotiating recording contracts with artists
  • Purchasing the distribution and publishing rights to master recordings
  • Producing master recordings
  • Releasing, promoting and distributing sound recordings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of broadband connections
  • Per capita disposable income
  • Median age of population
  • Album sales
  • Regulation for the Major Label Music Production industry

  • Current Performance
  • Trending now
  • Going online
  • A new frontier
  • Chart: Revenue Growth

  • Industry Outlook
  • The new age consumer
  • Shifting operations
  • Internet freedom and pirates
  • Table: Major Label Music Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Record Stores
  • Department Stores
  • Warehouse Clubs & Supercenters
  • E-Commerce & Online Auctions

  • Key Selling Industries
  • Audio Production Studios
  • Independent Label Music Production
  • Recordable Media Manufacturing

  • Products & Services
  • Streaming subscriptions
  • Digital downloads
  • Physical sales
  • Synchronization
  • Chart: Major Label Music Production Industry Products and Services Segmentation

  • Demand Determinants
  • Going digital
  • Music via mobile phone
  • To stream or to buy

  • Major Markets
  • Consumers aged 19 to 34
  • Consumers aged 35 to 54
  • Consumers aged 18 and younger
  • Consumers aged 55 and older
  • Chart: Major Market Segmentation for the Major Label Music Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Major Label Music Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Major Label Music Production Industry

  • Industry Globalization
    Universal Music Group, Warner Music Group, Sony Corporation,
  • Table: Universal Music Group - financial performance
  • Table: Warner Music Group - financial performance
  • Table: Sony Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Major 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
    Table: Industry Data for the Major Label Music Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Album Sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    360 Deal
  • A deal between a label and artist in which artist revenue from all activities is shared with the label, rather than just sales.
  • Label
  • A record company that signs artists to contracts and helps with the recording, production and distribution of music.
  • Peer-To-Peer
  • Online file-sharing sites where users can swap digital data without oversight from a company.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Major Label Music Production Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Major Label Music Production industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Major 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 Major 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 Major 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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