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          1. Music Production & Distribution Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/24/2020
            SIC Codes: 3652, 8999
            NAICS Codes: 5122
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Music Production & Distribution Industry Profile

            Companies in this industry produce, sell, and license musical recordings; they may also own and license musical copyrights. Major companies include Sony Music Entertainment, Universal Music Group, and Warner Music Group (all based in the US), as well as Avex (Japan); Edel (Germany); and GMM Grammy (Thailand). Music streaming services from companies such as Amazon, Apple, and Spotify are increasingly important to the industry.

            Although total global music industry revenues are currently about 68% of the market's 1999 peak, the streaming market is in growth mode; more than 176 million people in the world subscribe to music streaming services, according to International Federation of the Phonographic Industry (IFPI). Digital channels account for more than half (52%) of global industry revenues. The US is the world's largest recorded music market by sales, followed by Japan, the UK, Germany, and France.

            The US music production and distribution industry includes about 6,710 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion.

            COMPETITIVE LANDSCAPE

            Demand is driven by consumer spending. The profitability of individual companies depends on discovering and promoting new musical talent and generating revenue from the company’s asset base of recordings and publications. Large companies have advantages in marketing and distribution. Smaller companies, many of which are independent record labels (often referred to as “indies”), can compete effectively by focusing on artists within local markets or music genres. ...

             
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