World music market
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The world music market is the global market for the commercial trade of music, and the licensing of the use of music. As of 2006, the recording market is dominated by the "Big Four record companies": Universal Music Group, Sony BMG Music Entertainment, EMI Group, and Warner Music Group, and the "Big Five music publishers". The four record companies control around 80% of the world recorded music sales market and around 85% of the United States record sales market, demonstrating the concept of oligopoly within the music industry. On 13 July the European Court of First Instance annulled the European Commission's clearance decision of the merger of Sony Music and BMG. Therefore, the European Commission will have to re-examine the merger.
 Terminology and business structure
The view that the music industry consists solely of record companies only is incorrect. A record company is an entity that manages sound recording-related brands and trademarks which are called labels; coordinates the production, marketing, licensing, and copyright protection of sound recordings and videos; and maintains contracts with recording artists and their managers. Record companies (manufacturers, distributors, and labels) may also comprise a record group which is, in turn, controlled by a music group. Music publishers exist separately (even if sharing the same ultimate holding company or brand name), and they represent the rights in the compositions - i.e. the music as written rather than as recorded.
Record companies and record labels that are not under the control of the Big Four and music publishers that are not one of the Big Five are generally considered to be independent, even if they are large corporations with complex structures. Some prefer to use the term indie label to refer to only those independent labels that adhere to criteria of corporate structure and size, and some consider an indie label to be almost any label that releases non-mainstream music, regardless of its corporate structure.
 Reported statistics
Nielsen SoundScan reported that the big four accounted for 81.87% of the world music market in 2005:<ref>Template:Cite web</ref>
- Universal Music Group (France based) — 31.71%
- Sony BMG Music Entertainment (Japan/Germany based) — 25.61% (13.83% Sony, 11.78% BMG)
- Warner Music Group (USA based) — 15%
- EMI Group (UK based) — 9.55%
- independent labels — 18.13%
and in 2004, 82.64%:
- Universal Music Group — 29.59%
- Sony BMG — 28.46% (13.26% Sony, 15.20% BMG)
- Warner Music Group — 14.68%
- EMI Group — 9.91%
- independent labels — 17.36%
The global market was estimated at $30-40 billion in 2004.<ref>According to the RIAA the world music market is estimated at $40 billion, but according to IFPI (2004) it is estimated at $32 billion.</ref> Total annual unit sales (CDs, music videos, mp3s) in 2004 were 3 billion.
According to an IFPI report published in August 2005,<ref>http://www.ifpi.org/site-content/publications/rin_order.html</ref> the big four accounted for 71.7% of retail music sales:
- Universal Music Group — 25.5%
- Sony BMG Music Entertainment — 21.5%
- EMI Group — 13.4%
- Warner Music Group — 11.3%
- independent labels — 28.4%
Prior to December 1998, the industry was dominated by the "Big Six": Sony Music and BMG had not yet merged, and PolyGram had not yet been absorbed into Universal Music Group. After the PolyGram-Universal merger, the 1998 market shares reflected a "Big Five", commanding 77.4% of the market, as follows, according to MEI World Report 2000:
- Universal Music Group including PolyGram — 21.1%
- Sony Music — 17.4%
- EMI — 14.1%
- Warner Music Group — 13.4%
- BMG — 11.4%
- independent labels — 22.6%
 Albums sales and market value
The following table shows album sales and market value in the world in the 1990s–2000s.
|N||Country||Album Sales Share||Share of World Market Value|
 Singles sales
Physical single sales in the world in the 90s-00s and digital single sales in 2005.
|N||Country||Physical Sales Share||Digital Sales Share in 2005|
|19||New Zealand||0.19-0.29%||< 0.1%|
 Recorded Music Interim Physical Retail Sales in 2005
all figures in millions
|Singles||CD||DVD||Total Units||$US||Local Currency||Units||Value|
In its June 30, 2000 annual report filed with the SEC, Seagram reported that Universal Music Group was responsible for 40% of worldwide classical music sales over the preceding year.<ref>http://www.secinfo.com/dsvr4.58n4.htm#445</ref>
<references/> http://www.ifpi.org/content/section_news/20050802.html (updated link for reference 3)
 See also
- List of record labels and Category:Record labels
- Best selling music artists - World's top-selling music artists chart.
 External links
- http://www.move.de/amm/ECON.htm - CD-Markets size in 1996
- http://www.zobbel.de/ - World records sales in years 1994/95/97/98.
- http://www.ifpi.org/site-content/publications/rin_order.html - 2005 Market Share
- http://www.HitQuarters.com - World Top 20 A&R Chartcs:Major Label