Managerial economics Essay Example | Topics and Well Written Essays - 500 words

Managerial economics - Essay Example There are also who are involved with the broadcasting of the music. With the beginning of the year 2000, the sales of recorded music started to drop. Nonetheless, the selling of live music started to increase and has been important in increasing their revenues. The fall of sale of the music can be attributed to the rise of the internet and use of CDs (Gerd 28). The recording company will thus own the recordings and this will be as specified in their contract. Traditionally, the recording company is known to provide the recording artist with an advance payment for his music. It is the duty of the AR department of the recording company to market and sell of music. When it comes to the physical media, the company will have to pay another company to manufacture and distribute the physical music recordings (Paul 31). The issue of piracy has had greater impacts in the sell and distribution of music. There have been instances where a musician’s music ends up in the internet and him or her receiving no payments for his work. The EMI group is the largest recording company in the UK. Research carried out by the Nielsen SoundScan group reported that the EMI group represented a 10 percent of the Music business in Europe (Arango 30). This was in the year 2005. The other percentage has been dominated by US based recording companies. At the end of 2004, the same research company estimated the global market value of music to be around 30 to 40 billion US dollars. The total sales of the CDs, MP3s and music videos were around 3 billion US dollars (Feinstein 72). The EMI recording company only gained 9.5 percent of that amount. According to another report when it came to the end of 2005, the EMI recording company had managed to increase its global competitiveness to 13.5 percent (The Wall Street Journal, 1). This is when compared to other big recording labels like Sony Music Entertainment (29 %) and the Universal Music Group at