Warner Music Group Case Study

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Warner Music Group has been of the most prominent music labels in the industry since it was created in 1958. It was created after Warner (the film company) decided to capitalise on profit after one of their actors signed with one of their rival the companies. As a result they decided to make sure that would not happen again. 
In 1963 the company purchased Reprise Records, a label founded by Franck Sinatra in order to allow the artists to have more creative control of their music. After the acquisition of the label the company managed to secure a place for Mo Ostin, a music executive who was in charge of Reprise Records who is said to be the reason of the success of the Warner Music company. Four years later, in 1967, the company was bought …show more content…
Because it is one of the few companies that has an almost total control of the market, along with companies such as Sony Music Entertainment, Universal Music Group and few independent labels that have managed to occupy 12.11% of the market. Indeed with only a few competitors, as cited above, it is constant battle to dominate the market. The relationship between the competition is an interesting one, most of the companies will sign agreements and in a way “help” each other, making sure they all prosper and continue dominating the market as an other competitor would obviously reduce the market shares they already fight to …show more content…
Those, now, allows artists to bypass the process that goes along to being signed to a label. For example, Justin Bieber never sent a demo or anything of sorts to a label and was found through Youtube. And even in extreme cases even taking care of their marketing and concerts themselves. These examples shows how a company like Warner Music had to re-think its image in order to taylor to artists of the new generation, and therefor the new digital market and make sure artists still think they provide essential services for them to grow and prosper. Finally it is important to note that Warner Music provides distribution for a lot of smaller independent labels. Although Warner does not take care of distribution for artists signed directly to them, the reach and impact that they have on the music industry is more then valuable to those smaller labels in need to be seen. WMG does not distribute for themselves solely for money purposes, by striking deals with distribution companies that provide the same reach as they have offering a percentage on sales of an album they do in fact reduce their costs and production

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