Music Production & Distribution
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, referred to as indies, compete by focusing on artists within local markets or music genres. The industry is capital-intensive: average annual revenue per employee is about $550,000.
Opportunities
Growing Catalog Revenue - Studios accumulate recordings of music and libraries of musical scores and lyrics to which they have ownership rights. Supporting radio stations and TV programs that...
Business Challenges
Declining Revenue - Sales of music via legitimate CDs and downloads have been declining for years because of the pervasiveness of illegal copying. In part because the industry...