Sony Music Entertainment and the Evolution of the Music Industry

Table of Contents
Table of Contents…………………………………………………………………………………............................2
Recommendations…………………………………………………………………………………………………………..3
Appendix 1………………………………………………………………………………………….…………………………. 5
Appendix 2………………………………………………………………………………………….…………………………. 11
Appendix 3…………………………………………………………………………………………………………………….. 13
Appendix 4………………………………………………………………………………………….…………………………. 15
Appendix 5………………………………………………………………………………………….…………………………. 16
Appendix 6………………………………………………………………………………………….…………………………. 17
Appendix 7………………………………………………………………………………………….…………………………. 17
Appendix 8………………………………………………………………………………………….…………………………. 18
Appendix


The music industry revenues have declined dramatically from $17 billion to $7.9 billion in the years 2000 to 2013 due to wide availability of substitutes.



Internet and digital track sales had continuously risen, topping out at an estimated 1.34 billion tracks in 2012, but declined for the first time since iTunes was launched by 6% to
1.26 billion in 2013.



Album sales have continued to decline from about 575 million in 2006 to 290 million in
2013.



In 2014, there were three main methods of digital music distribution including digital download, internet radio, and interactive streaming.



Internet radio grew at an annual rate of 42%, to a $767 million industry from 2000 to 2008 and is projected to grow at an annual rate of 12.7% a year until 2018. It is projected that in
2016 161 million consumers will be subscribed to a music streaming service or internet radio. Number of Rivals


Competition in the music industry is segmented by the different areas of the industry.



The music publishing and record label business is dominated by 3 companies who collectively own 57.1% of the industry market share: Universal Music Group (25.5%), Sony
Records (20%), and Warner Music Group (11.6%)

5



Many Internet radio and subscription streaming services are available including applications
like