The Organisational Structure of the Music Industry

Introduction: The topic I have chosen to base my work is the music industry in the UK. However, The UK music business is composed of rich, diverse and passionate organisations. Record companies are one part of a complex business that includes self employed individuals, small businesses and large multi-national companies.

UK MUSIC:
This is an umbrella organisation set up by the UK government and has the responsibilities of representing the various collective interest of the UK commercial music industries such as musicians, artists, musicians, songwriters and composers, to major and independent record labels, Managers, Music publishers, studio producers etc. Nevertheless this umbrella also consist of different association’s that contributes immensely in helping the above organisation carry out its collective work on the UK music industry, and such organisations are as fellows; the Association of Independent music (AIM), the British Academy of Composers & Songwriters (BASCA), BPI (British Recorded Music Industry) Limited, PRS for Music, the Music Managers Forum (MMF), the Music Publishers Association Limited (MPA), the Musicians Union (MU) and Phonographic Performance Limited (PPL).

The Association of Independent music (AIM)
This association is non profit trade body established in 1998 by the UK independent record labels to represent the independent record sector. However, AIM is under the umbrella of the UK MUSIC organization and its CEO is Alison Wenham. The responsibilities of this association is working with members and friends to make the independent music industry thrive and also promoting and taking the UK music company to the SXSW (south by south west), music festival that takes place every spring in Austin, Texas.

The British Academy of Songwriters ,Composers and Author (BASCA)
This association was founded in 1947 and its primary responsibilities are to represent its members within the industry, to the government and to the European Union. However, BASCA since 1955 was successful in establishing the “Ivor Novello Awards” to honour excellence in British music writing. In addition, in 2000 this association established fellowship such as; Paul McCartney (2000). John Barry (2001), Malcolm Arnold (2001), Elton John (2005), John Adams (2005)etc,(

BPI (British Recorded Music Industry) Limited
The British pornographic industry (BPI) is the British industry’s trade association. This organisation replaced the British music right (BRM). Feargal Sharkey is the (CEO) and Andy Heath (Chairman), however the association founded the annual Brit Awards, for the British music industry as well as the mercury prize for the album of the year. Moreover the BPI also act as the industry unit for; public policy & lobbying, external awareness & public opinion, research & analysis & industry relevant education & skill.

PRS for Music
Formally PRS for music was known as the performing right society which was founded in 1914 but the organisation was formed in 1997 as MCPS-PRS alliance. However the organisation uses venues such as Wembley arena, the Royal Albert hall and large provincial theatres broadcaster (for example BBC Radio1). It also assists in helping business & community groups get access to some of the world most loved music, while making sure that song writers, composers & publishers are rightfully rewarded.

The Music Managers Forum (MMF)
The new chairman of this association is Brain message & since the inception of the association in 1992, it has been working to educate, inform & represent UK managers & their artists. However they organise discounts to industry events & services to lobbying on your artist’s behalf at UK & European level.

The Music Publishers Association Limited (MPA)
Nigel Elderton replaced Nicholas Riddle as the chairman of MPA and this association exist to safeguard the interests of music publishers and the writers signed to them. It also provides them with a forum & a collective voice, offers them a range of practical services, & thereby represents their interests to the wider music industry.

The Musicians Union (MU)
John F.Smith (general secretary) .the MU is an organisation respected around the globe which represents over 30,000 musicians working in all sectors of the music business. As well as negotiating on behalf of all musicians with all the major employers in the industry, MU offers a range of services tailored for the self employed by providing assistance for full & part time professional & student musicians of all ages & also endeavouring to promote the right & interests of its members.

Phonographic Performance Limited (PPL)
PPL is a music industry collecting society representing over 3,000 record companies. from multinationals to small independents. It also license recordings to broadcasting organizations. and public performance venues which recorded music such as pubs & shops.

Music Ensembles
A music ensemble is a group of two or more musicians who perform instrumental or real music. In each musical style different norms have developed for the sizes and combinations of differnt ensembles, and for the repartiore of songs or musical works that these ensembles perform.

Record Company
A record company or record label is a brand or trademark associated with marketing of music recordings and music videos. however record company also find & sign artists / acts and appropriate material (songs),record them professionally,promote the reocreds (product) and associated artist(s) via the media (TV / radio / press / online / clubs ) and release in bulk through to retail outlets and digital services for consumers to purchase.example of major labels; Warner music group,Sony music,Decca record,EMI,BGM music,polygram and GPG.(link)

Managers
Managers represent artists and composers (record producers too) in their dealings with recording and publishing companies and all other necessary industry bodies. Managers understand the ways and language of the 'music biz' in ways that artists often do not.

Managers will employ, on behalf of their artists, accountants, lawyers, agents, and tour managers and deal with the day to day running of their artists career. In return a manger will typically receive 20% of an artists income. Fact: more managers are turned over by artists then artists are by managers. Managers deal with all of the problems and receive none of the glory.

Production companies
These often comprise an alliance of managers, producers, musicians and composers who cynically 'create' an artist or group with teen appeal and then sell the package to a record company. They are largely responsible for the many 'plastic' and disposable pop acts which come and go. Try to remember, this is light entertainment and nothing to get upset about.

Not all production companies produce 'commercial' product. Many fine artists have emerged from smaller independent organisations created to develop the career of a unique talent who has been 'passed over' by the major record companies.

Publishing companies
A composer assigns their copyrights to a publisher in a so called 'publishing deal'. Publishers license the use of these copyrights to record companies who record them. Every CD manufactured and sold generates a 'mechanical publishing royalty' which is paid by the record company to the MCPS (in the UK) who then pass it on to the publisher who takes a cut and passes the rest to the composer. Typically a publisher will take between 35% and 15% of the royalty depending on their deal with the composer.

A publisher will also try to license their copyrights to film and commercial makers in order to generate as much income as possible.

A composer will benefit in three ways from such a deal.

1.Through a structure of foreign offices and sub-publishing deals the publisher will be able to collect royalties on behalf of the composer world wide.
2.Should a copyright infringement take place the publisher will have the financial might to sue the pirate on behalf of the composer.
3.The publisher will promote and seek additional exploitation of the copyrights thereby generating additional income for the composer.

Distribution
The success or failure of a CD release is largely determined by a record companies ability to secure exposure on TV, radio and in the print media and then to distribute copies effectively to retail shops. It's no good creating demand for a CD that remains unavailable for sale.

Major record companies have manufacture and distribution structures in place. Without access to these structures through licensing deals, an independently produced CD is unlikely to succeed in the market place. If an independent label manages to generate a high level of broadcast and print media interest in their artists work through effective promotion, it will need to strike a deal with either a major record company or independent distribution company in order to ensure the widespread availability of its CDs in retail outlets.


Retail

Retail is the front line. As an independent music maker you can manufacture and sell your CDs to customers mail order one by one by promoting them in live performance, on your web site and through the print and broadcast media. Eventually on-line delivery will be profitable and secure, but for now we're talking either mail order or retail distribution.

UK Music Industry Major Players & key Names
1. Feargal Sharkey (CEO), Andy Heath (chairman) UK Music
2. Steve Poter (CEO), Ellis Rich (chairman), PRS for Music
3. Nigel Elderton (chairman), Music Publishers Association (MPA)
4. Jon Webster (CEO), Brain Message (chairman) Music Managers Forum (MMF)
5. Alison Wenham (CEO) Association of Independent Music (AIM)
6. John F Smith (General Secretary), the Musicians Union (MU)
7. Copyright Collective & Record Company
8. Tour Manager,Band Manager & Booking Agency
9. Producers,Distributors,Retail,& Broadcasters.
10. The Department for Culture, Media and Sport (DCMS)

Note: The Department for Culture, Media and Sport (DCMS) is a department of the United Kingdom government,with responsibility for culture and sport in England,However It also has responsibility for the creative industries.DCMS funds for music support are channelled through Arts Council England.