Music Industry in US Essay Example | Topics and Well Written Essays - 1000 words

Music Industry in US - Essay Example medical specialty market.Accessing the U.S. diffusion channels is incredibly intemperate. These channels involve quatern elements the process of promotion (to break into the market), the system of licensing and distributing, the role of retailers, and the restructuring of the United States markets priorities which is currently passing play on. The production, innovation, sales, and distribution of music involves a complicated network. This network is controlled by large global firms, known as the major(ip)s that apply complete control everywhere the sourcing, creating, industrializing, distributing, and retailing of music. There is also a very big radical of independent music companies that work in the same way as the majors which keeps the difficulty of accessing the U.S. distribution channels very tough and valuable. The U.S. has been the leader in music industry innovation and has a grand effect on the other music markets throughout th e world. Along with world domination, from the U.S. comes some of the biggest names, innovations, and record labels in the business.However, the farming is the least internally-oriented market partly because of the media. ... In order to create a buzz, or the initial testing process, much money is spent on independent record companies to promote the campaign, enclothe up performances, and pay for the airplay as being played on the radio many times over is the key to success for breaking in. It has been suggested that $500,000.00 is required to test a record.Labels and distribution is also very difficult as there be three main categories in which these can be handled by going through a major record company that has its own distribution network, independents that distribute under a major company, and independents that uses other independents to get the items distributed. 85% of the music that gets to retailers is distributed by the major record companies. Independents use major com panies because of the high costs in building and maintaining nationwide warehouses and distribution centers. Bigger companies can handle the heavy and bridging costs as well as slow payments. U.S. laws also require that imports pay mechanical royalties although the country of origin has already charged these. This means that royalties have to be paid twice. It simply is too expensive doing business any other way in the U.S.The distribution of products to retailers is controlled by distributors and these distributors are the key to promotion. These major distributors have teams of people who have developed strong relationships with the top buyers such as Wal-Mart. Product antecedence lists are created by the major distributors as fees are paid to them. The higher ups of the major distribution companies, who are considered to be all powerful, prefer this monopoly type of doing business.New music must go through