Label research - Sony Music Entertainment

Sony BMG Music Entertainment began as the result of a 50–50 joint venture between Sony Music Entertainment (part of Sony) and Bertelsmann Music Group (part of Bertelsmann) completed on March 4, 2004. On August 5, 2008 the Sony Corporation agreed to buy Bertelsmann AG's 50 percent stake in the music company for $1.2 billion to get full control. The music company was renamed Sony Music Entertainment Inc. and has become a unit of Sony Corporation of America.
In the music industry there is a clear domination by a so-called big four: Sony Music Entertainment, EMI, Universal Music Group and Warner Music Group. In terms of the way these big four are structured is completely different to what is called an ‘independent’ record label. These four include a variety of music genres so they can make the maximum profit from their audience whereas an independent record label will generally focus on one genre and maybe some sub-genres.
In terms of production of music independent labels and the big four are very similar. They record their music in a studio then let the producers use their resources to give the artist the required sound. It the same throughout the music industry. The key difference between the independent and the big four is the big four have more or less unlimited resources and have the capability to produce music at the highest standard. An independent record label does not have the same capabilities as one of the big four so generally their music is not produced to the same standard.
The key difference between the big four and independent record labels are the money that is made, this is predominately thanks to the way in which the artists are promoted. Independent music labels promote their music mainly through word of mouth and through the Internet. They are relying on a minority listening to the music and then spreading the word about the music. On the other hand the big four can afford to have bill boards, newspaper advertisements, television advertisements, radio advertisements, in magazines and on the Internet. All of these types of promotion adds up but because of the wide variety of audience they have reached they are not losing money. In terms of getting an independent record label’s artist into the shops it is a lot harder than for example a ‘Leona Lewis’ CD produced by Sony BMG. The difference is the shops know the Leona Lewis CD will sell whereas the independent record may not due to the audiences not knowing about it.
A recent case had come out about Sony trying to stop their music from being used illegally in October 2007. It was announced that Sony successfully sued Jammie Thomas. She was a single mother, who made US$36,000 a year, was ordered to pay US$222,220 in damages for making 24 songs available for download on the Kazaa file-sharing network. this just goes to show the sheer power the big four have especially Sony to be able to inflict this punishment upon a single mother not earning a particularly high wage.