MUSIC INDUSTRY

1902 Vinyl record was invented.

Business Columbia Records had developed its 30cm Long Playing record, rotating at 33rpm and
Justification giving about 20-30 minutes a side which saw the downfall of shellac and vinyl was used
from then on.
1910 First recording artists and labels.
Business The recording contracts were introduced, these are legal agreements between
Justification a record label and a recording artist (or group), where the artist makes a record (or series
of records) for the label to sell and promote.
1920 Jazz became popular.
Business This was also a time of prohibition when selling alcohol was illegal. During the Jazz Age,
Justification illegal clubs called "speakeasies" were opened all over the United States. These clubs
featured jazz music, dancing, and sold alcohol.
1926 Promotional Clips were introduced, short films were aired on TV were many famous
jazz artists performed.
Business It is said that the most expensive promotional clips invested around $50,000 to $100,000
Justification thousand dollars.
1930 Screen Songs were introduced, that encouraged people to sing along.
Business They were a sort of precursor to modern karaoke videos, although they were largely
Justification unknown at the time because their release was limited to the chain of 36 theaters operated
by The Red Seal Pictures Company.
1933 Radio, and first record sales crisis.
Business The free availability of music via radio and world economy crisis in 1929 and 1930s were
Justification responsible for a 90 % decline in 1929.
1945 Baby-boom generation and discovery of the young sector as musical consumers.
Business Baby-boomers spent an average of $200 dollars per year in music, that in modern days
Justification would be around $1,600 dollars.
1950 Collaboration between record labels and radio.
Business After the financial crisis, this collaboration helped to recover from its devastating effects.
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“ New independent labels.
Business Through 1950’s and 1960’s, a new wave of new musical movements by independent
Justification record labels and new artists emerged in the U.S. This movement is captured in the
turbulent journey through their successes and failures.
1980 Nothings hurts new music like nostalgia.
Business 40% of CD sales were made up of older folks rebuying their favorite records in new format.
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2019 Oligopolies are part of the present industry.
Business Virtually all the music you hear on TV and radio is released by three giant corporations:
Justification Universal, Sony BMG, and Warner Music Group. They cover more than 90% of the
market.
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