Research Outline

Largest Music Labels


To provide a report about the impact of economic recessions on marketing expenditures and consumer expenditures in the music industry by looking at historical accounts of the recession's impact on the music industry.

Early Findings

2007-2009 Economic Recession

1. Consumer Expenditures

  • In the second quarter of 2008, music labels such as Sony, WMG, UMG, and EMI had difficulty coping as all four labels "experienced a loss in profits." UMG's revenues declined by 5.8% while Sony's revenues declined by 4%.
  • One survey report has shown that "money spent on music per capita dropped from $44 to $38 among Internet users." This is because people didn't have "the disposable income to be spending $10 on a CD, when all they really want to hear is one or two songs off the entire disc."
  • The survey has also shown that "48% of teens did not buy even one CD throughout all of 2007."
  • The live music sector fared well in spite of the recession. Although the sector initially had a 5.6% drop in sales, they were able to recover "with a 5.9% boost in ticket prices." People then didn't mind the small increase in ticket prices as they were still decided to attend the live music event.

2.) Marketing Expenditures

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Prepared By
Maria E.
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