Parent companies and the music industry

Parent companies and the music industry

In the music industry, a record label is a brand associated with the marketing of music and music videos. Artists are often managed and ‘owned’ by a record label to broaden their audience, market their albums, and to be promoted and heard on radio, television, and other media.

The four major labels have sub- labels as well. These are labels that work on their own but are owned by one of the four major labels. As well as this there is independent labels ‘Indies’; these are record labels that are not owned by one of the four major labels.

Sony Music Entertainment is the second-largest global recorded music company of the "big four" record companies and is controlled by Sony Corporation of America. Sony music entertainer owns more than 100 of sub labels hear are the most popular sub labels they own Columbia Records, Epic Records, RCA Records, Roc Nation, Sony Music Nashville, Sony Masterworks, Provident Music Group, Legacy Recordings, RED Distribution, IODA Labels, Sony Music UK.

The music industry is structured by 4 major companies which are Sony Music Entertainment, EMI group, Warner Music group and Universal Music Group. These companies also own lots of smaller sub- labels, for example Sony music entertainment owns more than 200 sub-labels. Also there are independent labels that are not owned by any of the four record labels for example Record companies and music publishers that are not under the control of the four main are generally considered to be independent indie, even if they are large corporations with complex structures. The term indie label is sometimes used to refer to only those independent labels that adhere to independent criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.

The artists that Sony Music Entertainment manage is massive for example they manage one of the most famous RNB lady Singers Beyoncé other characters they manage are the following: Chris Brown, Justin Timberlake, R Kelly, Sean Kingston and many more they also used to manage the all-time famous Rock and Roll Hall of Fame Michael Jackson. If you look above at all of the artists Sony music entertainment manage is huge as the following characters are the most listen to now a days which is a massive and positive management for Sony music entertainment to manage the most well-known artists now a days.

Sony music entertainment covers all music genres for example: RNB, HIP HOP, POP, GOSPEL, SOUL, ROCK AND ROLL, SLOW, CLASSIC and many more genres.  The effect large companies have by owning smaller companies is that the smaller companies would have a budgeting limit higher of what they had before. For example if I opened a record label I would have a budgeting limit of £2000 but if my company is taken by a bigger company they would then give me no limit for budgeting as I make it to better standards.  Also having a bigger company owning you is much better as they are a multinational company they can advertise your music video in much more and professional standards.

Sub labels are controlled by a major company for example Sony music entertainment have more financial input put into the label because they are funded by a major label. Therefor they have more money to promote their artist and bigger budgets to launch new artists. Independent companies may find it harder to promote an artist because the sub labels have the financial backing of the majors.
The effects of independent companies have by managing music artist is that they may have less money to spend on launching an artist. The artists may be less known with only a few making it big in the popular music chart, such as there are no music artist who is managed by an independent label but are quite popular and well known. The artist tends to seen as less manufactured and focus more on music than image. The fans respect the independents labels because they seem to be more musically credible than artist signed to major labels.