acquisition strategies in the multinational recording industry
DESCRIPTION
TRANSCRIPT
Acquisition Strategies in the Multinational Recording Industry
Patrik WikströmJönköping International Business School
1888-1920
1888
1894-1901
1888
1896
1920s
1930sInternalCentralizedHierarchical
ExternalAggressiveConservative
1929-34
1931
1931
1929
1940s
1945
1945
1942
1947
1950s
# of new acts on the year-end-charts
Dowd (2004)
Industry concentration
Dowd (2004)
1950s
1955
19611961-2
1960s
Labels-to-firm ratio
Dowd (2004)
1970s
InternalDecentralizedMulti-label
ExternalPartnerships“Progressive”
1970s
1970s
1977
1972“…as I speak, black music and country music appear to be two primary growth areas in the coming year. If that perspective changes by the time you leave this room, I can still assure you Columbia Records will have a major entry into whatever new area is broached by the vagaries of public tastes”.
(Arthur Taylor president CBS in 1973)
1980s
1979, 83-86
1988
1990s
1995
1998-9
1990s
Market shares, single sales, Sweden
Industry concentration
Labels-to-firms-ratio
Global sales of recorded music
2000s2004
2000
2004
2007
Conclusions &Looking forward
InternalCentralizedHierarchical
InternalDecentralizedMulti-label
InternalCentralized?Label groups
1930- 1970- 2000-
Atlantic Records Group
Independent Label Group
Warner Bros. Records
Word Entertainment
Interscope/Geffen/A&M
Island Def Jam Music Group
Universal Motown Records Group
Decca Label Group
InternalCentralizedHierarchical
ExternalAggressiveConservative
InternalDecentralizedMulti-label
ExternalPartnerships“Progressive”
InternalCentralized?Label groups
ExternalOutsourcing“Upstreaming”
1930- 1970- 2000-
“360 business model”
Record salesConcertsMerchandiseLicensingSponsorshipsEtc…
“All-rights/Full-service”
Warner Music Group’s latestacquisitions, partnerships, and JVs A: Zebralution, DE – Digital distribution platform (Feb ‘07) JV: Brand Asset Group, US – Artist development services (Jun
‘07) A: Non-Stop Music, US – Production Music (Aug ‘07) A: Taisuke, JP – All-rights/Full service (Sep ‘07) P: Zazzle, US – Merchandise retailer (Oct ‘07) JV: Kaiku, FI – All-rights/Full service (Oct ‘07) A: Camus Production, FR – Tour Production, promotion and
production company (Jan ‘08)
Patrik WikströmMedia Management and Transformation Centre
Jönköping International Business SchoolJönköping, Sweden