HOW TO IMPLEMENT THE MOST PROFITABLE BUSINESS MODELS IN THE MUSIC INDUSTRY TO MAXIMIZE FINANCIAL PROFITABILITY OF INDEPENDENT RECORD LABELS AND RECORDING ARTISTS

• Main Author: Putri Fernandy, Amanda
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77344
• Institution: Institut Teknologi Bandung

With the emergence of digital streaming services in particular, the music industry has undergone a tremendous change recently, changing both business models and revenue distribution. These changes have raised a number of challenging concerns regarding the financial profitability of both record labels and recording artists, problems with significant ramifications for the whole industry. In order to better comprehend these developments, this study intends to answer two critical research questions that are central to understanding these changes, with the ultimate objective to provide ideas to increase the music industry’s profitability and transparency. Finding the most suitable and profitable business models is the aim of the first research topic. In order to make sure that both artists and record labels can succeed in this fast changing market, it is essential to analyze their effectiveness and profitability of these new models as they continue to develop. This research will analyze and evaluate several business models, assessing their suitability in the context of the current industry landscape. The second research question concerns the current business models used by record labels and how they affect revenue distribution and transparency for musicians. There has been growing concern about the lack of transparency in how record labels distribute revenue, especially from streaming platforms, where the compensation mechanics are often unclear. This study will also provide an analysis of the Taylor Swift master ownership case study, which served as a catalyst for wider industry discussions about artists rights and revenue transparency. The traditional model of artist-label relationship, which frequently entails the label providing upfront funding in return for a significant share of income, has been under criticism for generating financial disparities. There will be two interview subjects with different experiences in the music industry as supportive information to answer the questions. This study will not only be answering the two main questions but it will also help raise awareness to both artists and record labels and not to mention new artists who are just setting out to step into the music industry. Overall, this study will provide a suggestion that pushes the most suitable and profitable business models in the music industry to be recommended in order to enhance the efficiency of the industry.