ENTERTAINMENT

COMPANY BUSINESS MODEL

BY JEREMIAH PARKS, SIMONE SANTOS, & LARRY STEVENSON


Khalid, Singer & Songwriter
RCA
Usher, Singer & Songwriter
LaFace, Arista, RCA, Sony
KEY ACTIVITIES:
Label Services
Mariah Carey, Singer & Songwriter
• Artists & Repertoire- new talent Columbia, Epic
recruitment, oversee artists development
• Marketing- recorded music, and music
videos
• Promotion
• Distribution
• Music Synchronization Licensing Jennifer Lopez,
Singer, Actress, Dancer, Fashion
• Sales- recorded music and music videos Designer, Producer
Epic, Legacy
• Management- music, business and
personal
• Analytics- music trends and insights

Pharrell Williams, Singer, Rapper,

Music Publishing
Beyonce, Singer &
Songwriter, Record Producer,
Fashion Designer & Entrepreneur
• Mechanical Royalties Songwriter
Sony, BMG, Columbia,
Columbia, Arista
Legacy
 Sony Artist and business partner,
Michael Jackson has sold 81 million units worldwide.

Michael Jackson’s ‘Thriller’ Album

Released on November 30, 1982 and
was the best-selling album of all time
until August 2018 when it was
surpassed by label mates/ band, the
‘Eagles’, “Their Greatest Hits”

‘Thriller’ Sold Over 47 Million Copies Worldwide!!

 CUSTOMER SEGMENTS

GEOGRAPHIC DEMOGRAPHICS ARTISTS MANAGEMENT

REACH Artist & Repertoire,
According to statista.com, 52% of 16-19 year olds prefer Pop music.
Sony Music expands the globe with Artists development,
Males make up the majority of the hip-hop audience.
40 offices worldwide, Music Management
180 Venues in the United States
46% of consumers of hip-hop are Black and 25% are Latin.
55 Venues Around The Globe

ADVERTRISING CONCERTS
TICKETS
5% of Sony Music’s company revenue is initiated LIVE NATION IS THE LARGEST
Ticket Sales Account for 15% of
through advertising and sponsorships. LIVE MUSIC COMPANY IN THE WORLD
Sony Music Entertainment’s Revenues

Whitney Houston released
7 albums and 2 soundtracks.
All of them earned either
diamond, platinum, multi-
platinum,
or gold certification, making
Whitney Houston
“the most most awarded
female singing act in the
world,” according to Guinness
World Record.
Sony Music
“FECi”
CUSTOMER SEGMENTS
• Fanatics- Customers that are
small in numbers but, big
enthusiasm.
• Enthusiasts- Customers that are
casually into music and music
events
• Casuals- Customers who “music
is the soundtrack of their lives”.
Not actively seeking newest,
greatest music.
• Indifferents- More settled, more
stable customers into more
established acts.
Casuals
Casuals
 KEY RESOURCES: Record Label
Sony Music Entertainment’s global headquarters is Subsidiaries
located at, 25 Madison Avenue, in New York, NY.
• Sony Music has offices in over 40 countries. Some
of which include; Argentina, Australia, Belgium,
Brussel, Denmark, Finland, France, Italy, London,
New Zealand, Norway, United Kingdom, and more.
Sony Music Entertainment has an estimated 8,500
employees including some of the companies key
people;
• Rob Stringer, Chief Executive Officer
• Doug Morris, Chairman
• Kevin Kelleher, Chief Operating Officer
Sony/ ATV is the globe’s leading music publisher with
the largest music publishing catalogue in the world.
They have over three million songs in their catalogue.
• FECi; Sony Music’s Segmentation Consumption
Insight Tool.
Data, graphics, logos, button icons, images, audio
clips, video clips, links, digital downloads, data
compilations, and software is owned, controlled by, or
licensed to Sony Music and is protected by copyright,
trademark, and other intellectual property.
H.E.R.
KEY PARTNERS:
— In the past year alone we have been
honored to partner with and support
Land Rover, Daman
Healthcare, Sony Jive, Sony Electronics,
The One & Only, New Look, Johnson &
Johnson and Bloomingdales.
— IODA
— 360 Reality Audio
— SendMe Mobile (Mobile Media
Company)
— Simon Cowell ( SYCO Entertainment—
Joint venture talent & production
company)
— A&R/Marketing Entrepreneur Jonathan
Master for new joint venture label,
SAMEPLATE.
 John
Legend CUSTOMER
RELATIONSHIP:
• Sony has customer information centers
worldwide, enabling it to provide prompt
responses to customer needs that reflect
customers perspectives, thereby helping
Sony to improve the quality of its
customer service.
• In addition to support via telephone and
e-mail, in several regions Sony provides
customer support via such means as live
internet chat sessions, support using
social media platforms, and online
community forums where customers can
share information to help each other find
solutions.
• Sony conducts surveys to determine
customer satisfaction at various
touchpoint, and makes improvements
based on the survey results in its efforts to
continually improve customer satisfaction.
Alicia Keys
DISTRIBUTION
CHANNELS:

• The Orchard • Vevo

• Red Essential • Apple Music
• Dimensional • Deezer
Associates, • BeatPort
LLC
• Spotify • Shazam
• iTunes • Napster
• Google Play • Facebook
• Tik Tok • Instagram
• MediaNet • iHeart Radio
• Amazon • Pandara
Music • Yandex
Music
Beyonce
Value Propositions
• Sony provides value in its
music publishing and
financial services businesses
through its expertise and
experience in the fields.
• Sony uses value propositions
to paint a clear picture of
what their brand has to offer
its artist and customers.
• Value proposition to artists
consists of creative
excellence, marketing
expertise, relationships and
access, global reach, and
data and analytics.
Kane Brown

Value Propositions
• Premium New Content
• Podcasting Production
• Brands
• Merchandising Services
• Creative Studio Centers
• Live / Ticketing
• Artist Management Hubs
• Artist-Led Ventures
Doja Cat
Cost Structure
• Sony incurs cost in relation to
research and development
operations, physical
manufacturing activities,
production of software and
original content, marketing and
advertising, maintenance of IT
infrastructure, and retention of
personnel.
• The Company operates
manufacturing facilities, a
network of sales outlets and a
number of regional offices that
accrue fixed operating costs.
Kirk Franklin
Revenue Streams
• Sony is a diversified, multinational
conglomerate and one of the largest
companies in the world by revenue,
as such it has a variety of revenue
streams.
• In the fiscal year 2020, (April 2019 to
March 2020), Sony generated 1.47
billion dollars from its music
publishing segment and 4.36 billion
dollars from recorded music.
• Sony’s visual media and platform
revenue fell by around 390 million
year on year.
• Though COVID-19 had little impact on
its latest earnings, Sony’s filing
includes a note that appears to
estimate music operating income this
year will be off about 25%-40% due to
the downturn.
 Will ADDITIONAL
Smith REVENUE
OPPORTUNITY:
Virtual Reality & Augmented Reality
Just as Live Nation has done, Sony Music
could teamed up with Samsung and Citi
teamed up to stream concerts for visual
artists, where fans can experience their
favorite artist electrifying performance
from home. This will be a great
opportunity for all artist going forward and
Sony Music to offer a totally new and
immersive perspective.
This will especially be helpful for fans of
artist who’s concerts sale out in a matter
of minutes. The climate we are in now has
shown that it can definitely work well for
most artist. It can even be helpful for artist
trying to build a fan base if it’s made to
where it can be shared via social media or
friends of fans for a small fee.
Prince REFERENCES:
• Sony Corporation of America. (2009. July 01). “Sony Music Entertainment and IODA
Partner to Create Leading Digital Distribution and Services Network for Independent
Rights Holders”. Retrieved from https://www.sony.com/en_us/SCA/company-news/
press-releases/sony-corporation-of-america/2009/sony-music-entertainment-and-
ioda-partner-to-create-leading-digital-distribution-and-services-network-for-
independent-rights-holders.html

• Terms and Conditions - Sony Music, (2020, January 22). Retrieved July 24, 2020 from
https://www.sonymusic.com/terms-and-conditions/

• Sony Electronics. ( 2019. October 2019). “Sony Corporation, Music Industry Partners and
Leading Artists Gather to Reveal a New Music Ecosystem with 360 Reality Audio”.
Retrieved from https://www.sony.com/en_us/SCA/company-news/press-releases/
sony-electronics/2019/sony-corporation-music-industry-partners-and-leading-artists-
gather-to-reveal-a-new-music-ecosystem-with-360-reality-audio.html

• Insight. (2016, June 18). Retrieved July 25, 2020 from https://sonymusic.me/insight/

• Sony/ ATV Music Publishing. (2020, nd). Retrieved July 24, 2020 from https://
www.sonyatv.com/en

• Sony. (2017, July 31). Retrieved July 23, 2020, from https://www.clerism.com/company/
sony/

• Watson, A. (2020, June 26). Sony Corporation: Music revenue by source 2020. Retrieved
July 26, 2020, from http://www.statista.com/statistics/314357/sony-corporation-music-
revenue-source/

• Lynch, J. (2017, October 18). The 50 Best-Selling Artists of all time. Retrieved on July 25,
2020 from https://www.independent.co.uk/arts-entertainment/music/50-best-selling-
music-artists-all-time-bands-singers-musicians-richest-beatles-a7946531.html

• Featured Artists - Sony Music. (2013, October 30). Retrieved on July 23, 2020, from https://
www.sonymusic.com/artists/

• Sony Music Competitors, Revenue and Employees - Owler CompanyProfile. (n.d.) .

Retrieved July 24, 2020, from https://www.owler.com/company/sonymusic?
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