STREAMING Warner soars past $1bn digital revenues

The conglomerate giant doing fine, artists less so...

Ed Sheeran’s Divide puts Warner Music’s streaming income on track to cross £1bn https://www.theguardian.com/business/2017/aug/08/ed-sheerans-divide-lifts-warner-musics-streaming-income-to-1bn?CMP=Share_AndroidApp_Blogger

Big Three Sony Universal Warners

In film its the big six (7 if you count Lionsgate); in the music industry, following a controversial 2012 $2bn takeover of EMI by Universal, its just the big three: Sony Music Entertainment, Warner Music Group, and Universal Music Group. Sony and Universal also combine on the VEVO platform.

See: thebalance.com feature on the big 3; musicbusinessworldwide.com (the spin on this one is a bit odd - that the ENTIRE Indie industry beats any one of the big three individually); digitalmusicnews.com; this pdf.

Table from digitalmusicnews.

You can see how the industry has gone through dramatic 'disruption' from digitisation - but with little impact on the market share of the dominant conglomerates:

Source: p.11 of this report (pdf).

INDUSTRY Big 3 revenues streaming surge

Music streaming hailed as industry's saviour as labels enjoy profit surge https://www.theguardian.com/technology/2016/dec/29/music-streaming-industry-saviour-labels-spotify-apple-music?CMP=Share_AndroidApp_Blogger

Will Spotify kill the music download?

https://www.theguardian.com/business/2016/dec/26/spotify-music-download-apple-itunes-streaming-vinyl?CMP=Share_AndroidApp_Copy_to_clipboard

Record sales: vinyl hits 25-year high

https://www.theguardian.com/music/2017/jan/03/record-sales-vinyl-hits-25-year-high-and-outstrips-streaming?CMP=Share_AndroidApp_Copy_to_clipboard

Anita Elberse (2013) Blockbusters - must-read book?

"Because people are inherently social," the Harvard business professor Anita Elberse points out, "they generally find value in reading the same books and watching the same television shows and movies that others do." What's more, and equally understandably: "People have a taste for winners: if, say, a book is popular and has been widely discussed in the media, consumers have more reason to read it." [from Guardian review]

Scroll down for sample quotes and review snippets, such as Bloomberg's fairly critical view

Use the look inside feature for a preview

I'd recommend at the very least sampling this, a book that basically argues that the tentpole strategy (or blockbuster as she terms it) is vital for any and all modern media/entertainment giants. Her examples take in music, film and other media, but also widen out to incorporate 'entertainment' industries such as football, looking at the examples of Barcelona and Real Madrid, and the latter's 'galacticos' strategy.

She very convincingly picks out examples of major conglomerates that have tried more austere, penny-pinching approaches ... and shows, with forensic financial detail, how disastrous this invariably proved.

Interesting that she's not simply referring to production, but also as much about distribution, and the marketing muscle and capacity to make very widely available and prominently placed a given release, Lady Gaga being one such example she dissects.

You can preview some samples by using Amazon's 'look inside' feature, or GoogleBooks (add keywords related to cinema, music or whichever industry you're most interested in to get the most relevant sections), and its for sale as a Kindle book too.

Here's a few snippets from various articles/reviews:

"Because people are inherently social," the Harvard business professor Anita Elberse points out, "they generally find value in reading the same books and watching the same television shows and movies that others do." What's more, and equally understandably: "People have a taste for winners: if, say, a book is popular and has been widely discussed in the media, consumers have more reason to read it." [Guardian review]