Applying the case-studies
• Explore an exam style question
• Understand the terms and how to apply a case study.
• Identify gaps in research.
Discuss the issues raised by media ownership in
the production and exchange of media texts in
your chosen media area.
Universal Music Group
A global conglomerate
Key facts
• The largest of the ‘big four’ labels
• Responsible for 30% of world music sales
• Based in the US with offices worldwide
• Owned by Vivendi (French media conglomerate)
• Merged with BMG Music Publishing in 2007
• Many subsidiary companies including Island Records
Group, Decca, Polydor and Mercury
• Revenue $5.87 billion in 2010
In summary…
• Universal is the biggest of the four major record labels, responsible
for 29% of the music sold in the world.
• A global conglomorate
• Has access to a global market – targets international audiences and
manages artists with global appeal.
Is this always beneficial?
Often the ‘majors’ or ‘conglomerates’ brand their output
as ‘independent’ by setting up or acquiring a separate company.
This is done by buying local record labels who sign local artists
in addition to their marketing of global acts.
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What is the benefit of selling music that is made ‘independently?
Being ‘outside the mainstream’ localizes the product and seems
more personalised
It suggests that you able to offer something that is ‘alternative’ in
some way (unlike all the others)
Major labels operate a
vertically integrated
business model,
where the owner has
acquired companies
which play different
roles in the process
of creating,
promoting and
selling music.
Song writing and
publishing
Recording
Promotion &
marketing
Licensing (to
film/TV/mobile)
e.g. Universal
Pictures
Distribution e.g.
Vivendi
Distribution
Retail/exhibition
e.g. Virgin radio
Hardware e.g.
Sony DVD players
Universal includes marketing and distribution
branches which exist in order to
aggressively maximize catalogue repertoire
according to their website.
This means that branches of the company work
hard to make sure that as much money is
made from each artist as possible.
A music publisher owns the copyright for
music and lyrics and can licence them for use
in film, TV, advertising, mobiles etc. as well
as for other artists to cover.
UMPG is the largest in the world, with over 1
million copyrights.
A type of energy drink, made by Universal Music
Group?
 ‘Cross-Promotion’ of media products for example
the release of certain products simultaneously.
 The type of energy created when a record label
takes over a small independent label

A type of energy drink, made by Universal Music
Group?
 ‘Cross-Promotion’ of media products for example
the release of certain products simultaneously.
 The type of energy created when a record label
takes over a small independent label

What it means and how it relates to the music
industry…

Definition:
The integration (combining) of institutions for
mutual benefit.
For example the release of certain products
simultaneously.
The industry calls this: ‘Cross-Promotion.’
Example:
A film may be released at the same time
as an associated CD soundtrack to
produce maximum revenue.
Definition:
The integration (combining) of institutions for mutual benefit.
For example the release of certain products simultaneously.
‘Cross-Promotion.’

Definition:
The integration (combining) of institutions for mutual benefit.
For example the release of certain products simultaneously.
‘Cross-Promotion.’

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eg. Who had heard of ‘The Rembrandts’ before the series
‘Friends’ made the song so memorable?
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Sony has a franchise in the music and film and game console
industry.
It is easier for them to use synergistic practices to promote
and sell their products because they are vertically integrated.
The potential for internal synergy is enormous!!
‘Quantum of Solace’ (Sony Pictures 2008)
Soundtrack by Sony:
‘Another Way to Die’ Alicia Keys’ – distributed by J Records (a
subsidiary of Sony Records)

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DVD and BlueRay Disk released film in HD
Console Game available on Sony Playstation 3
- Funded by ‘Sony Entertainment’

How is it an advantage to the music industry?
The music is more saleable because the audience is attracted to
elements they recognise from the films.
The film is advertised by the music.
Everyone’s a winner!

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Sony Pictures could join with Sony Online Games to produce a
‘tie-in’ game/film to produce a greater market exposure for
both products.
Sony Music could then release the soundtrack for both.
How could this work for a record label promoting a new music
artist?


Girls Aloud – produced by Polydor Records (subsidiary of
Universal Records)
Sang the soundtrack music to St Trinians – produced by
Universal Pictures
http://www.youtube.com/watch?v=prKPXggt0t0&feature=fvst

Music was used in a diet coke advert
http://www.youtube.com/watch?v=iUW8GrOIZcQ
Homework:
Create 2 more case studies on artists represented by Universal
who have used synergistic marketing to promote their albums
A music publisher owns the copyright for
music and lyrics and can licence them for use
in film, TV, advertising, mobiles etc. as well
as for other artists to cover.
UMPG is the largest in the world, with over 1
million copyrights.
What do they do?
- concerned with the development, promotion
and protection of the interests and rights of
songwriters and composers.
- manages the rights in the music
- enables the music to reach its many
audiences by..
encouraging record companies to record and
release material and licensing works using
synergistic marketing (i.e. agreeing the use of
music in a film or advert) and print (sheet
music).
Production:
Signed to Island Records after
takeover by Universal .
 Worked with songwriting
& production company
Xenomania, Jay-Z’s production
company Roc Nation and several other
producers and writers.
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UK, Europe, Asian and US tours for new album
Theme song for Powderpuffs Girls Movie
ITV teen drama Girls in Love theme song
Tracks on soundtracks for Love Actually and Sex and the City
Boots Christmas TV advert – Girls
http://www.youtube.com/watch?v=HgduIknGejU

Images licensed to Mattell for Barbie dolls
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None of the original line-up remain – critics say
they are now ‘more brand than band’ (The
Independent)
New album Sweet 7 has sold relatively poorly in
the UK and Europe – launch week is significant
for sales.
Rumoured that Roc Nation has dropped the
group from a contract due to poor European
sales
Sweet 7 entered UK album charts at #14 March
2010 – first single had been released August
2009.
US release uncertain due to poor
European sales
Create 2 more case studies on artists represented by Universal
to include:
1.
2.
Artist who has used synergy to promote their album
Artist who has sold ‘secondary licensing’ to help promote
their music