Record Label Business Plan Template

Industry Analysis

The Record Label industry is expected to grow over the next five years to over $11 billion. The industry’s performance will be bolstered by the following factors:

Number of broadband connections- Keeping abreast of new systems and technology can provide producers with stronger distribution models and revenue streams while reducing costs of production. Online music has fundamentally changed how consumers enjoy their favorite artists.

Per capita disposable income- An increase in disposable income is likely to increase consumers’ purchases of new music, whether via digital or physical outlets. Although physical album sales have continually dropped for over a decade, sales of streaming music subscriptions increase as consumer purchasing power rises, benefiting the industry as a whole.

Median age of population- All age demographics consume different types of music and discover music through different platforms. Conversely, older individuals are more likely to reduce their total spending on new music. As labels shift toward online distribution, the industry benefits most from a lower median age of the US population.

Regulation- Industry players rely on the protection of their intellectual property. Copyrights legally protect artists and record companies from unlicensed distribution of artistic works. Stronger copyright laws create a protected distribution process through which new material can be created, promoted and licensed using a range of media outlets in exchange for royalty payments.