Vertical and Horizontal Integration

Vertical Integration is when the company has the ownership of production, distribution and exchange - the company is able to do everything itself. Therefore the company is able to gain all the profits. This is why a company like Sony has a lot of money because they are able do everything themselves compared to an independent company who don't have the money and pay to use facilities.

Horizontal Integration is when the company expands but instead of different areas it is the same area. For example music industries buying smaller industries. This allows the company to develop and expand the same area of the industry.  

Example Question: Peer assessed by Jordan

What significance does the continuing development of digital media technology have for media institutions and audiences?

Within this essay I will be explaining how the development of digital media technology has effected a conglomerate company i.e. Sony compared to an independent record company i.e. XL recordings.

New technologies are being introduced all the time and have a large impact on industries as big as the music industry. iTunes for an example are able to directly impact a company like Sony as it means when it comes to reaching the audience it means they can have more control over choosing what music they want to listen to. Sony are able to upload new albums onto iTunes quickly and effectively for the audience to then be able to consume the music. This can be seen when Beyonce released her self-titled album which was exclusive to iTunes; which had 80,000 sales within the first 3 hours and 430,000 in first 3 days. This was because it meant that due to convergence the audience could buy it and receive it instantly which then could be listened to via iPods, Laptops, games consoles etc. Therefore for a conglomerate company new technologies are useful for Distribution as means its an easy way to get music out to their audiences.

New technologies have a much bigger impact on independent companies as it means for the independent bands its a cheap and effective way to get their new music out into the world ready for consumption, where as years ago they would have to spend money they didn't have on making physical copies of CD's; iTunes means they can do it cheaply and so in the long run it means they can get a lot of recognition for their music. This differs to before hand as by them not having the money to make physical copies of CD's they may not have been able to get as many copies distributed where as now with the likes of iTunes or Sound Cloud the bands can distribute as many of their songs as they wish. Therefore the new technologies have a much bigger impact on the independent companies as opposed to a conglomerate company as they have the opportunity for a wider range of audiences to listen to their music to before where it was more of a niche market. 

Even though new media technologies like iTunes are helping the industry, companies still have to face the problem of illegal downloading which is damaging sales. It has been said that £250million pounds worth of illegal downloads take place each year, this is a large amount however it will effect the independent companies more so than the bigger companies. If the audiences are illegally downloading the independent bands songs then they aren't getting as much money back to be able to produce more songs as they wont be able to afford the costs of recordings studios etc. A conglomerate company like Sony has vertical integration and owns its own recording studio, stores, manufacturing plants therefore it won't cost them as much money - this means that it won't be as largely effected because as they own the facilities it doesn't cost them as much money therefore aren't losing out as much as the independent companies are. Also Sony makes up 30% of the music industry alone as they have branches of horizontal integration like owning EMI and SyCo. If they're going to be losing out of money due to illegal downloads they won't be able to fund all of their companies - meaning that music won't be able to be produced and distributed as often as it is. 

In terms of using media technologies to reach specific target audiences independent companies often use social networking sites as a marketing technique to get the audience to buy their songs. For example Adele (who was signed to XL Records) got discovered by her label by posting a demo on her MySpace page, this was then picked up on and she was then signed. Similarly when you go on Facebook on the side of the page it has links for suggestions to which you might be interested in, for example if you buy a pop album online from the cookies it could suggest other similar pop albums you may like - this is similar on YouTube as it suggests the videos which might be appealing to you from ones you have previously watched. For an independent band who aren't as well known this is useful as its a way of marketing, if their advert is placed on social networking sites they can receive a lot more recognition compared to years ago and a band had to do free concerts or busking to try raise awareness its a more efficient way to get seen. This is similar for an artist on a conglomerate label - they will still use social networking and the web 2.0 to promote their new album. Artists can go onto sites such as twitter to tweet to their fans, facebook to set up a page; this gets the album promoted out there. Therefore the use of technology to reach accurate specific audiences is very important as instead of reaching everyone it can be deterred to reach only the people who may like it therefore it has more of a chance, this will then lead to an increase of sales.

Audiences embrace the use of new media technologies by having the control to search and listen to the kind of music that they wish. On Spotify the audience can listen to as much music as they want for free, on iTunes they can buy the songs or albums which they like, similarly on Twitter/Facebook the band pages can be liked. The internet as a media technology enabled bands on both an independent label like XL recordings and a conglomerate label like Sony to get the promotion and sales that they need - though this is limited by illegal downloads. It means that the audience are able to be interactive with the bands to which it may get some independent bands more recognised for example with Adele with her first demo on MySpace getting so popular that she got signed which led to the release of her first album. With the audience it means that they have a lot more control over the success of the artist/band - therefore is very important.

In conclusion, the continuing development of media technology is an advantage as it means albums can be distributed cheaper and easily, audiences are able to consume it better from sites like iTunes, Spotify and YouTube. However it can be a disadvantage from illegal downloads damaging the sales and could lead to the decline of the industry. 

45/50 - For Better mark look at these and work on them

• A clear and developed argument, substantiated by detailed reference to case study material  - argue more 
• Clearly relevant to set question - link back to q more

In what ways does your chosen industry fail to cater for its audience? - Shelby and Matt

The music industry can be seen to fail its audience in multiple ways, in this essay we will discuss how.

Music stores both physical and digital put up the prices of the Cd's by twice the amount it actually cost to make. Production wise when a CD would cost £0.50 to make shops would sell it for around £10 - this is to gain the music industry money. Along with this compared to the 80's, there aren't many shops left that sell physical copies of CD's also its harder to be able to buy singles in stores instead it tends to be the top albums and a few others. To buy a single you'd have to go online which would cost around 99p on Itunes and due to this shops such as zavvi have shut down because they aren't getting the sales anymore. 

The industry tells artists to make music the industry want them to make instead of the music that the audience wants to hear - this way they get money. This can be seen with One Direction with Simon Cowell telling them to produce pop as it sells to teens where as when the Beatles were around they were making and writing the music that they sold as it was the music they loved and wanted to distribute and perform. Similarly industries get the artists to make too many songs which actually fit on the album which then leads to cramming 12/13 songs onto the album when really only 3 or 4 are actually any good. 

Industries manufacture bands with people look the part to 'sell music' when really all they want out of them is the money and use them as a marketing technique for the company - reception wise boybands rack up a massive fan base because of the teenage girls who fall in love with the members. This leads to the fanbase consuming their music in as many ways as they can. This fails this audience as it means that they don't get the music that maybe the want to listen to because the industries will only sign artists who they know will make money instead of artists that are talented - not as many genres are given the time of day. 

You can apply the hypodermic needle theory to this as shows like the x factor producers injects the audience with the music that they want to sell to get into the charts, it brainwashes them into buying only this type of music compared to the music they want. They get shown the same music over and over so they only know one type of music. 

* Included theories that were linked in carefully

* Includes Statistics

UMG Case Study

Universal Music Group from shelbert96

This is my case study on Universal Music Group - one of the big 4 music companies.

Copyright

• Copyright allows authors, musicians, artists, etc...to make money off of their work, it means that other people cant take their work for free or alter the work without their permission  
• 1706: Statute of Anne :first copyright act, establishes the right of authors to control what happens to their works
• Works published before 1978 and after 1923 are protected for 95 years
• Anything made after 1978 lasts for life plus 70 years
• A copyright lasts for  95 years (120 if not published) for corporate authors after publication for anything after 1978
• Music and sound recordings last 50 years from the end of the calendar year in which it was published 

Things that could be copyrighted

• Books
• films
• songs
• albums
• slogans
• logos
• company names
• CD's
• games
• art
• product names
• catchphrases
• fictional names
• Drama
• architectural works
• choreographic work

Music Piracy

• 
  

Prosecution of Pirate Bay in April 2009:
The Pirate Bay is a website that provides torrent files and peer to peer file sharing founded in Sweden in 2003. On 31st May 2006 the police raided The Pirate Bay in 12 premises and confiscated 186 servers which cause the site to go down for 3 days. When it re opened the consumers doubled due to the media coverage. The founders were put on trial and were charged with facilitating illegal downloading of copyrighted material and were found guilty. They were sentenced to a year in Prison and a fine of 30 million SEk (€2.7m). In some countries the ISP's have been ordered to block access to the site. 

New bundles developed with sky etc to include music downloads in a subscription to include broadband, tv etc:
Virgin were the first to create bundles with everything i.e. broadband, TV, Landlines etc. Other providers followed including Sky who wanted to include music downloads or Virgin when they have Music on demand. However record companies say that it benefits the providers rather than the company. Theres a debate on when teens grow up will they pay for a package deal or will they just have broadband and illegally download everything else? Its a controversial matter. 

Ad-sponsored legal free streaming sites (spotify):
Sites have been set up which enable legal music streaming  and are sponsored by adverts which is free to use. Although sites like spotify have unlimited plays it enables consumers to listen to free music proceeded by an advert. Another site is Spiral Frog which provided free and legal downloads which were supported by advertising until it was taken down due to outstanding loans. 

Earlier release dates:

Record companies used to release new music 6 weeks in advance on radio before a format in which people could buy. Now many songs/ albums are released on the same day in which it is played on the radio (i.e. Beyonce releasing her album with no marketing which was played on the radio and could be downloaded on the same day) this is to limit illegal downloads because its the hope that it stops people wanting the album so bad they don't want to wait for the release date and so illegally download it when they can get it quickly by paying. 

DRM (Digital Rights Management) - is a class of technologies that are used by  hardware manufacturers, publishers, copyright holders, and individuals with the intent to control the use of digital content and devices after sale With First-generation DRM software, the intent is to control copying; With Second-generation DRM, the intent is to control viewing, copying, printing and altering of works or devices.

Creative Commons - is a company that allows you to share your creativity with the rest of the world, it helps develop, support and stewards legal technical infrastructure that maximizes digital creativity, sharing and innovation. Allowing users to use their own copyright licences known as creative commons licences. 

Agreement between BPI and six major UK internet providers to caution illegal downloads - In 2008 BPI stuck a deal with six major UK internet providers to try and stop people from illegally downloading files. You would receive a warning then 3 strikes and you're out. However not all internet providers agreed, for example TalkTalk decided to opt out because 80% of young users said they would still do it regardless. Furthermore you only have to be accused and not found guilty to get a strike.

The Digital Economy Bill - This bill allows the courts to demand that ISP's cut off broadband service from alleged downloaders. This is controversial because you only have to be accused 3 times and not proven guilty in a court for copyright infringement. 

How useful are the UK record sales charts and do you believe they have a future?

The official charts are on radio 1 on sundays between 4-7pm and don't release the number 1 until it is played at the last spot just before 7. The charts date back to 1967 when it was hosted by Alan Freeman - bringing the latest chart hits from the top 40 songs.
   
The charts are based on a survey across a panel of retailers, accounting for 99% of all singles sold, 98% of all albums and over 90% of all video. In 2007 Fearne Cotton became the first regular presenter of the top 40 and On 26 February 2012, a new look within the show meant that it started with the music videos of the top 10 singles also it aired live online from 6pm.There is also the UK Singles Chart based on the the Official Charts Company. The full chart contains the weekly top-selling 200 single recordings in the UK, based on combined record sales and download numbers. The charts consist of different genres (pop, rock, jazz, country) , formats (vinyl, CD Digital) and film/TV downloads (top 10 DVD's). For the past 5 years the x factor winners have been fighting for the number one christmas song, a place which is dreamed of by many artists. Likewise the number one spot is popular at certain times of year - the christmas number on, the summer number one. Which means the charts become very popular as people want to check back to see what song has made it or what song hasn't for example when Joe McEldery's christmas number was beaten by rage against the machine - it gains the industry more money each year.

The charts are available on many types of platforms. Thee typical way is to listen on BBC Radio 1/BBC Radio 2 you can also hear them on MTV and read what songs are in the top 40 in the Music Week magazine. They appear in 80% of the national newspapers and are working to make it accessible on platforms like mobile apps and social media. You can check the latest 100 on the official website or on other sites including the sun, 7digital etc. 

From reception statistics you can work out what the consumers like and which is selling well in comparison to what they don't like.The data is available for music and video industries to find out about the progress of their release and so this enables them to analyse how well their advertising campaigns work and the best way to promote their songs or videos. 

The charts have decreased in popularity since they started in the 60's to now, this is due to it being made available on many platforms so people can check it when they want so they don't have to tune in every Sunday. I think that they don't have much of a future as its made easier for people to see what songs are popular whenever they want. Top chart shows like top of the pops were axed because of the accessibility of music from online sources i.e. youtube or spotify. This could be said that it was a reflection of the audience changing habits and the increasing online audience compared to those buying physical cd's. 

The charts are still a way which shows audience consumption habits both digital and physically and shows an accurate record of what music is brought in every week - what albums are popular with the people. I think that its still provides a good feeling when your favourite band or artist gets into the top 20 or 10 even the number one spot. Therefore from this I don't think the charts will disappear as audience still want to know what is the number one song which they can download or how them buying songs contribute towards the top charts. 

Marketing in the Music Industry

• Since the 80's record companies have decreased rapidly and now are in crisis
• major companies have failed in both the transition from vinyl to CD and again from Cd to digital

The CD pricing mistake

• One mistake is that Cd's are too expensive due to being over priced
• Instead of setting the price at £10-15 if companies were to set them between £4-5 a lot more would be sold
• Another mistake is that companies push 12-15 songs on an album when in fact only around 3 are actually any good - instead they should have tried new formats 
• The income to the composer and performer compared to record company got a little amount of money from each Cd sold by the record company
• Companies taking the alternative route would ensure they would be rich and never in a crisis

Music Marketing and Apple Inc

• Today Itunes has sold over 25 billion songs
• Consumers can buy songs at 99p each or 3/4 songs for £3/£4 pounds
• Musicians are creative and can write/play a good song which are appealing to customers instead of a lot at a time
• On an album of 12-15 songs you can guarantee 9/12 won't be as good
• It also takes away the stress of weeks of recording and editing  

The big mistake of Record Companies

• A huge mistake from the 80's on-wards was that  compared to the 60's the companies stopped making music they were liking and which the public were liking 
• E.G. the Beatles were making their music and weren't following marketing directives or what the executive told them what the consumers would like
• In the 80's the marketing approach changed for the music companies - they sold music as a mass product
• surveys and market analysis was carried out which meant that executives were telling musicians what they could sell and what pleased consumers- this is what destroyed music and the companies along with it as each genre of music has a niche market

Let the Band Play

• Music is art
• The let the band play is a strategy for marketing which says one thing - all you need is passion and inspiration
• this should be what drives music - the love of making it and the love of listening to it

The Next Logical Step - iTunes

• For apple to develop iTunes to become a huge recording company and replace other companies 

credits: Vertygo Team

link: Marketing in the Music Industry - Analysis
- See more at: http://www.vertygoteam.com/music/music_marketing.php#sthash.Cu5iJjFq.dpuf

To What Extent Has The Credit Crunch Simply Sped Up the Next Natural Development Of The Music Industry?

The Credit Crunch made the first move from music going from Physical to Digital. This is because during the crunch it was seen that music/ entertainment forms were not essential and so initially the sales declined. People couldn't afford to go out and buy the newest song or album due to the lack of money in the economic crisis therefore this contributed to the decline of sales. This provided the gateway to transfer physical Cd's onto digital to provide people with easy access and at cheaper prices. On iTunes you can buy a single for 99p where as if you were to buy it in the shop it would be double the price - making it more affordable to buy.As of January 2011, Apple's iTunes Store made $1.1 billion of revenue. Due to this is still enabled people to use music as an escapism to get away from the doom and gloom of the credit crunch. 

Because of the digital sales increasing it meant that record shops were being put out of business, an example of this is Zavvi (once virgin) which went into administration and now only exists as an online store. Therefore this had a negative result on record shops as they lost money and the stores went bust however proved positive for online stores as they could get more money from single and album sales. 

An example of a band benefiting from this credit crunch is the Gorillaz. They are a virtual band in a fictional world started by Damon Albarn (Blur) and Jamie Hewlett (comic book artist). Their debut album Gorillaz sold over ten million copies. The second album - Demon Days -  released in 2005 (around the time of the crunch) when five times platinum.Their latest album, The Fall, was released in December 2010 as a free download for fan club members. Without the move from physical to digital they wouldn't have been able to pursue this project as easily as they did. 

Ultimately the credit crunch provided the initial boost needed for the transference from physical to digital proving positive for the online stores and proving cheaper for customers and negative for actual stores which lost out on money. 

The jilts - Marketing Strategy

In order to market the jilts we need to promote them on media outlets, we could do this by using:
TV -

• Jonathan Ross show - on late at night and so there isn't much of a restriction on language or content, it provides them to be their edgy selves 
• Later with Jools Holland - on very late and isn't on that often means they can promote to a smaller yet direct audience, they aren't restricted and can perform live
• Graham Norton Show - late night show, live performance, edgy, lots of stars, large audience

Radio- 

• Radio 1 - broadcast nationwide to a large audience if at peak times
• Local radio stations - promote the jilts in smaller areas i.e. manchester is doing a showcase on them playing their tracks in peak occasions 

Ads - 

• Campaign for Etsy (an eco friendly company that sells vintage and unique items) - they can do a t-shirt competition or recycling deal to create new pieces of furniture 
• Sky/ WWF - save the rainforest campaign - can do some supporting gigs which all money goes to the charity

Youtube - 

• Create their own youtube channel to promote music videos 
• Can make weekly video updates on songs, what they're doing
• communicate with their fans 

Websites - 

• twitter - can tweet fans
• facebook  - set up a page for people to be liked and regularly updated
• tumblr - can set up a fashion blog which the girl member can contribute to
• own website - can upload tour dates, album/song information, facts about the bands, merchandise - browns and beige colours, vintage look to it, flowers down the side show girls influence

Magazines - 

• Wire - covers music from non mainstream artists - can do an interview on the record deal just secured by the artist
• Indie music mag - covers all the new indie music bands - jilts could be part of a competition, do an interview, be on the cover

Duets/Links - 

• Ricky Wilson (Kaiser Chiefs) - from a big indie rock band so has a similar sound
• Gringly Man - on tour with currently
• Fiona Bevan - up and coming indie artist who has a similar sound to the jilts
• Pip Brown (ladyhawke) - famous indie singer songwriter from new zealand and could co write a song with the jilts

Touring -

• Small intimate shows over the country i .e. the fleece in Bristol 
• A couple of big venues to get a larger audience i.e. the 02 arena
• a few bars to get an older following and stay away from younger fans

Fashion - 

• female member can create own dress line i.e. flowing dresses, flowery dresses, skirts
• Guys can have their own band shirt line - range of colours and patterns
• members wear jeans and shirts with jackets female member in girly clothes long dresses, tights, ballet shoes - each member has a different style they don'y look the same

Unique - 

• could release some singles on vinyl - lots of indie fans buy indie songs on vinyl
• make own changes to converse shoes - can make doodles on them

Convergence

Convergence is when one device has more features than what its original use was/is - it has evolved over time to do similar tasks to other devices. For example using internet or playing games on a mobile phone when its primary use was calling or texting or watching films/TV on a xbox when its primary use was playing games. 

Synergy

Synergy is when two or more companies/organisations join together to produce linked products to promote music over different media platforms - its a form of marketing. An example of this could be between a film company teaming up with a games company to produce franchise or this could be between the Artist and Record Company to promote the album. With the music industry you can use cross promotion between artists and film companies - to make film soundtracks and so the song then promotes the film and the film song promotes the artist. This is an example in Titanic with Celine Dion's song 'My Heart will go on' and Aerosmith in armageddon with 'I don't want to miss a thing'. 

Case Study

I did my case study on Lawson looking at the PDMECR of thier rise to fame, starting from the begginng when they first got signed to what they are doing now.

Royalties

Royalties from shelbert96

High street woes signal the final demise of the CD

The collapse of a major independent distributor and the demise of Woolworths lead to huge reduction in number of outlets that sell CDs

Caroline Davies, The Observer, Sunday 7 December 2008

First came the spectacular fall of Woolworths, bringing its entertainment arm crashing down with it. Then UK retailing was struck another cruel blow when music distributor Pinnacle Entertainment succumbed to the same fate.
A bleaker week for high-street record stores is hard to imagine and, as many struggle to stay in business, one thing seems clear: only the fittest will survive.
The astonishing double-whammy for an already declining industry has left it contemplating a very different future - one without small independent record shops; one where the HMVs of this world dominate; one of a diminishing CD market; one, some even whisper, without the CD itself.
With CD sales estimated as down 27 per cent this quarter compared with 2007, last week's events have pulled into sharp focus the problems of those in the 'physical' - as opposed to digital - music retailing industry. 'We could be living out the last dying days of the CD, that's the worst-case scenario,' said David Balfour, contributing editor of trade e-magazine Record of the Day.
Not everyone agrees. With Take That's new album, The Circus, predicted to become the fastest-selling of all time this weekend, having shifted 500,000 copies in six days, there appears to be viable demand. And around 90 per cent of album sales are still in physical form.
But some stores were initially unable to get their hands on the Take That album because of the collapse of Entertainment UK (EUK), the wholesale distribution arm of Woolworths, which supplied music and DVD chain Zavvi along with many other outlets.
Zavvi, which has 125 stores nationwide, has found replacement distributors. Other smaller, less well-placed stores risk being left high and dry, missing out on crucial pre-Christmas trade.
Retailers must also take into account the opening of Amazon's British MP3 store last week, selling the Take That album at £3, while Asda was charging £6. 'Those are really low prices. It sets a precedent,' argued Balfour. 'For Amazon it was a loss leader. But it sends a message to customers that that is the value of a new album. It's more downward pressure on pricing in the high street.'
The fate of EUK adds to that pressure. Its collapse forced Zavvi to suspend online sales because of stocking problems. 'But still it is tough for them. It's going to test them,' added Balfour. 'It's not unimaginable that HMV could end up being the only big chain.'
HMV, which has 250 stores nationwide, has reinvented its store format to remain relevant. 'HMV has looked to respond to the changing market in a different way to everyone else, by going back to our specialist credentials,' said a spokesman.
'We're engaging more with our customers - getting them closer to the music, films and games they love and enabling the choices they increasingly expect in a multi-channel world - whether that's for physical products, which is still how most people buy, or for digital downloads, which we now sell in MP3 format online at hmv.com.
'While music remains in our DNA, HMV has diversified heavily in recent years. After DVDs and Blu-ray, we now actually sell as many games as we do CDs, while we're also seeing increased demand for licensed artist merchandising and personal technology products, such as iPods.'
A belief that individuality will help them through sustains shops such as the fiercely independent Rough Trade, set up in London's Notting Hill in 1976, which says its new shop in Brick Lane, east London, is its 'biggest project yet'.
'The way it is laid out - we have a stage for performances and the whole ambience - it's all about having an experience,' said director Peter Donne. 'It's not just about going online and just buying music.'
Donne admitted that the collapse of Pinnacle Entertainment, one of the largest independent distributors, would certainly have an effect, causing a hiatus in some supplies. But for more vulnerable shops it could be enough to put them out of business. The beneficiaries, it seems, could be those in the digital market.
'Our phone is currently ringing off the hook,' said Denzyl Feigelson, founder of AWAL (Artists Without a Label), which distributes digitally and claims to represent 3,500 artists. 'We're getting calls from desperate labels who are now experiencing a very hard time. With the collapse of Pinnacle, and Woolies and EUK, it has created a domino effect. A lot of artists and labels will struggle.'
Retailers are admitting to very tough times, said Balfour: 'There will always be a place for niche specialists, but it is going to be really, really tough. It wouldn't surprise me if in five years' time there's vastly fewer record shops than there are today, and today there's vastly fewer than there were five years ago.
'I think the shift will be to digital, because it doesn't have physical distribution problems. I think there is definitely a demand for CDs and vinyl. People who buy digital also want the record as well, it's an ownership thing.
'The problem I foresee is that infrastructure might not be able to support that. If you've not got the shop to sell it in, and you've not got the people to distribute it, even if people want it, there might not be a viable business there. That's the worst-case scenario.'

Physical V Digital

Physical

• possession to own
• lasts a long time
• could get scratched
• whole albums
• have to go out and get it

Digital

• cheap
• easy to access
• at fingertips
• lose it easy
• internet connection 
• individual songs

Music Industries Compenents

Copyrights

Copyrights

• Copyrights identify who owns the song and who recieves the money
• Songwriters who write the songs = automatically copyrighted
• Registration should be done before you release the song to the public
• Copyright owners have the right to reproduce the copyrighted song, create something based on the source, distribute it publicaly, perform or display it publicly
• If you have recorded the song as the artist you have the sound recording copyright and can play or perform the record vua digital audio.

Copyright licenses:

• By giving a copyright license you're giving the rights of your song to someone else
• Once the song is distributed compulsory licensing kicks in which means anyone who wants to cover the song can without your permission - however by law they have to pay a statutory royalty rate to you and pay monthly roylaty statements  - and have to notify you whent they release it
• they cant make changes to the song in the form of words or the melody without the copyright owners approval - a changed song is considered derivative work
• compulsory licensing is rare as record companies dont want to provide monthly royalty statements and so go direct to the owner to negotiate

Shared Copyrights:

• If the song has been written by two people they own 50% each of the total song i.e. song, music, lyrics
• this means one individual cant give the right to the song to someone if the the partner doesnt agree
• You must half any money made on the song
• shared copyrights can happen when you or the publisher sign over a portion of the copyright to another publisher for a sampled composition (a song that uses a portion of another song)

Transfer of Copyrights:

• Most agreements sate that the songwriter must give the copyright of the song to the publisher
• this transfers the ownershiop of the song to the publisher in exchange for the royalties paid to the songwriter
• Usually the publishers own the copyrights and sound recordings are held by record companies

 

History of the Music Industry