Music Retailing in India free essay sample

Promoting the Outlets Introduction The music industry or music business consists of the companies and individuals that make money by creating and selling music. Among the many individuals and organizations that operate within the industry are: the musicians who compose and perform the music; the companies and professionals who create and sell recorded music (e. . Music publishers, producers, recording studios, engineers, record labels, retail and online music stores, performance rights organizational; those that present live music performances (booking agents, promoters, music venues. Road crew); professionals who assist musicians with their music careers (talent managers, business managers, entertainment lawyers); those who broadcast music (satellite, internet and broadcast radio); journalists; educators; musical instrument manufacturers; as well as many others.Organized retailing, In India, refers to trading activities undertaken by licensed tillers, that Is, those who are registered for sales tax, Income tax, etc. These Include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Organized retailing was absent in most rural and small towns of India in 2010. Supermarkets and similar organized retail accounted for Just 4% of the market Unrecognized retailing, on the other hand, refers to the traditional formats of low- cost retailing, for example, the local corner shops, owner manned general stores, pan/ebbed shops, convenience stores, hand cart and pavement vendors, etc. Companies Controlling Market A large majority of this market for recorded music is controlled by three major corporate labels: the French-owned Universal Music Group, the Japanese-owned Sony Music Entertainment, and the us-owned Warner Music Group.The largest portion of the live music market Is controlled by Live Nation, the largest promoter and music venue owner. Live Nation Is a former subsidiary of Clear Channel Communications, Agency is a large a management and booking company. The music industry has been undergoing drastic changes since the advent of Madders digital distribution of music. A conspicuous indicator of this is total music sales: since 2000, sales of rec orded music have dropped off substantially while live music has increased in importance. The largest music retailer in the world is now digital: Apple Inc. S tunes Store. The 2 largest companies in the industry are Universal Music Group (recording) and Sony/TV Music Publishing (publisher). Indians Largest Music Retail Chain Music World, part of the RPG group of enterprises, is Indians largest music retail chain. The group has over 79 outlets across India. It provides consumers with an unparalleled range of music and movies, across International, Hindi and Regional repertoires. Music World started its operations in November 1997 with its first store in Achaean. A year later it opened its second store in Cochin. Today, Music World has presence in 45 cities in India, commanding a market share of 20- 25% in most markets where it is present. Its presence ranges from metros to tier II towns to rural markets like Vidalia Shore. More than 5 million consumers walk through Music World stores annually. A majority of the trade in the RSI 15 billion (1999-2000) Indian music market took place through the small outlets. Promoting The Outlets Celebrity visits were made an integral part of Musicologys promotional activities. Not long after Archons visit, Musicologys Kola outlet had another celebrity visitor the popular pop singer Shaman.This attracted a lot of attention towards the outlet as Nell as towards Shamans recently released album. .. Issues such as piracy of cassettes and CDC were a major problem, which prevented the industry from reaching its full growth potential. Given these circumstances, the establishment of outfits such as Musically seemed to have come as a welcome development in the industry. There are three types of property that are created and sold by the recording industry: compositions, recordings and media (such as CDC or Amps).There may be many recordings of a single composition and a single recording will typically be distributed into many media. Compositions are created by songwriters or composers and are originally owned by the composer, although they may be sold. 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 (e. G. Distribution and sales) o publishing companies, by means of a publishing contract. The publishing company collects fees (known as publishing royalties) when 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 the publishing company will provide the owner with an advance against future earnings hen the publishing contract is signed. A publishing company will also promote the impositions, such as by acquiring song placements on television or in films. Recordings are (traditionally) owned by record companies.A recording contract specifies the business relationship between a recording artist and the record company. In a traditional contract, the company provides an advance to the artist 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 the record. For physical media (such as CDC), the company also pays to manufacture and distribute the physical recordings. Smaller record companies 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, generally known as a mechanical royalty. This portion is similar to a percentage, but may be limited or expanded by a number of factors such as free goods, recordable expenses, bonuses, etc. ) that are specified by the record contract. Session musicians and orchestra members are under contract to provide work for hire; theyre typically only paid one-time fees or regular wages for heir services, rather than royalties.Physical media (such as CDC) are sold by music retailers and are owned by the consumer. A music distributor delivers the physical media from the manufacturer to the retailer and maintains relationships with retailers and record companies. The music retailer pays the distributor, who in turn pays the record company for the recordings. The record company pays mechanical royalties to the publisher, composer, and songwriter via a collection society. The record company then pays royalties, if contractually obligated, to the recording artist.