Sony Music

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Sony Music Entertainment
Formerly
American Record Corporation (1929–1938)
Columbia Recording Corporation (1938–1947)
Columbia Records Inc. (1947–1965)
CBS Records (1965–1991)
Sony Music Entertainment Inc. (1991-2004)
Sony BMG Music Entertainment (2004–2008)
Subsidiary
Incorporated as a general partnership
Industry
GenreVarious
Founded1929;90 years ago (1929)
Headquarters,
United States
Area served
Worldwide
Key people
Rob Stringer
(CEO)
ProductsMusic and entertainment
RevenueIncrease2.svg US$7.27 billion [1]  (FY 2017)
Increase2.svg US$1.16 billion [1]  (FY 2017)
Owner CBS Corporation
(1938-1987)
Sony Corporation
(1987-present)
Parent Columbia Broadcasting System
(1938-1987)
Sony Entertainment
(2012-present) [2]
Divisions See List of Sony Music Entertainment labels
Website sonymusic.com

Sony Music Entertainment (SME), known as Sony Music, is an American global music conglomerate owned by Sony and incorporated as a general partnership of Sony Music Holdings Inc. through Sony Entertainment Inc., a subsidiary of Sony Corporation of America, which in turn is a subsidiary of the Japanese Sony Corporation. [3] It was originally founded in 1929 as American Record Corporation and renamed as Columbia Recording Corporation in 1938, following its acquisition by the Columbia Broadcasting System. In 1966, the company was reorganized to become CBS Records, and Sony Corporation bought the company in 1988, renaming it under its current name in 1991. In 2004, Sony and Bertelsmann established a 50-50 joint venture known as Sony BMG Music Entertainment, which transferred the businesses of Sony Music and Bertelsmann Music Group into one entity. However, in 2008, Sony acquired Bertelsmann's stake, and the company reverted to the SME name shortly after; the buyout allowed Sony to acquire all of BMG's labels, and led to the dissolution of BMG, which instead relaunched as BMG Rights Management.

Music industry companies and individuals that create and sell music and make money off of sales

The music industry consists of the companies and individuals that earn money by creating new songs and pieces and selling live concerts and shows, audio and video recordings, compositions and sheet music, and the organizations and associations that aid and represent music creators. Among the many individuals and organizations that operate in the industry are: the songwriters and composers who create new songs and musical pieces; the singers, musicians, conductors and bandleaders who perform the music; the companies and professionals who create and sell recorded music and/or sheet music ; and those that help organize and present live music performances.

Conglomerate (company) two or more corporations that fall under one corporate group

A conglomerate is a combination of multiple business entities operating in entirely different industries under one corporate group, usually involving a parent company and many subsidiaries. Often, a conglomerate is a multi-industry company. Conglomerates are often large and multinational.

Sony Japanese multinational conglomerate corporation

Sony Corporation is a Japanese multinational conglomerate corporation headquartered in Kōnan, Minato, Tokyo. Its diversified business includes consumer and professional electronics, gaming, entertainment and financial services. The company owns the largest music entertainment business in the world, the largest video game console business and one of the largest video game publishing businesses, and is one of the leading manufacturers of electronic products for the consumer and professional markets, and a leading player in the film and television entertainment industry. Sony was ranked 97th on the 2018 Fortune Global 500 list.

Contents

Sony Music Entertainment is the second largest of the "Big Three" record companies, behind Universal Music Group and ahead of Warner Music Group. Its music publishing division Sony/ATV is the largest music publisher in the world. [4] [5] It also owns 50% of SYCO Entertainment, which operates some of the world's most successful reality TV formats, including Got Talent and The X Factor . [6]

Universal Music Group American music corporation

Universal Music Group is an American global music corporation that is a subsidiary of the French media conglomerate Vivendi. UMG's global corporate headquarters are located in Santa Monica, California. It is considered one of the "Big Three" music companies, along with Sony Music and Warner Music Group. Since 2004, the corporation is no longer related to the film studio Universal Studios. In 2019, Fast Company named Universal Music Group the most innovative music company and listed UMG among the Top 50 most innovative companies in the world and "amid the music industry's digital transformation, Universal is redefining what a modern label should look like." UMG has signed licensing agreements with more than 400 platforms worldwide.

Warner Music Group American global music conglomerate

Warner Music Group Inc. (WMG), also known as Warner Music, is an American multinational entertainment and record label conglomerate headquartered in New York City. It is one of the "big three" recording companies and the third largest in the global music industry, after Universal Music Group (UMG) and Sony Music Entertainment (SME). Formerly part of Time Warner, the company was publicly traded on the New York Stock Exchange until May 2011, when it announced its privatization and sale to Access Industries, which was completed in July 2011. With a multibillion-dollar annual turnover, WMG employs more than 3,500 people and has operations in more than 50 countries throughout the world.

Sony/ATV Music Publishing is an American music publisher owned by Sony Entertainment. It has the largest music publishing catalog in the world, with 4.53 million songs owned and administered as of March 31, 2019. The company was formed in 1995 with the merger of Sony Music Publishing and ATV Music, which was owned by entertainer Michael Jackson. Jackson had purchased ATV Music, which included the Lennon–McCartney song catalog, in 1985.

On July 17, 2019, Sony Corp. announced that Sony Music Entertainment and Sony/ATV would merge to become Sony Music Group. [7]

On July 17, 2019, Sony Corp. announced that Sony/ATV Music Publishing and Sony Music Entertainment would merge to become Sony Music Group.

History

1929–1938: American Record Corporation

The American Record Corporation (ARC) was founded in 1929 through a merger of several record companies. [8] The company grew for the next several years, acquiring other brands such as the Columbia Phonograph Company, including its Okeh Records subsidiary, in 1934. [9]

Okeh Records American record label; imprint of Otto Heineman Phonograph Supply Company, Inc.

Okeh Records is an American record label founded by the Otto Heinemann Phonograph Corporation, a phonograph supplier established in 1916, which branched out into phonograph records in 1918. The name was originally spelled "OkeH", formed from the initials of Otto K. E. Heinemann, but later changed to "OKeh".

1938–1970: Columbia/CBS Records

In 1938, ARC was acquired by the Columbia Broadcasting System (CBS) under the guidance of chief executive William S. Paley. The company was later renamed Columbia Recording Corporation, [10] and changed again to Columbia Records Inc. in 1947. [11] Edward Wallerstein, who served as the head of Columbia Records since the late 1930s, helped establish the company as a leader in the record industry by spearheading the successful introduction of the LP record. [12] Columbia's success continued through the 1950s with the launch of Epic Records in 1953 [13] and Date Records in 1958. [14] By 1962, the Columbia Records productions unit was operating four plants around the United States located in Los Angeles, California; Terre Haute, Indiana; Bridgeport, Connecticut; and Pitman, New Jersey. [15]

William S. Paley American television executive

William Samuel Paley was the chief executive who built the Columbia Broadcasting System (CBS) from a small radio network into one of the foremost radio and television network operations in the United States.

Columbia Records American record label; currently owned by Sony Music Entertainment

Columbia Records is an American record label owned by Sony Music Entertainment, a subsidiary of Sony Corporation of America, the North American division of Japanese conglomerate Sony. It was founded in 1887, evolving from the American Graphophone Company, the successor to the Volta Graphophone Company. Columbia is the oldest surviving brand name in the recorded sound business, and the second major company to produce records. From 1961 to 1990, Columbia recordings were released outside North America under the name CBS Records to avoid confusion with EMI's Columbia Graphophone Company. Columbia is one of Sony Music's four flagship record labels, alongside former longtime rival RCA Records, as well as Arista Records and Epic Records.

LP record Analog sound storage medium

The LP is an analog sound storage medium, a vinyl record format characterized by a speed of ​33 13 rpm, a 12- or 10-inch diameter, and use of the "microgroove" groove specification. Introduced by Columbia in 1948, it was soon adopted as a new standard by the entire record industry. Apart from a few relatively minor refinements and the important later addition of stereophonic sound, it has remained the standard format for vinyl albums.

Columbia's international arm was launched in 1962 under the name "CBS Records," as the company only owned the rights to the Columbia name in North America. [16] In 1964, the company began acquiring record companies in other countries for its CBS Records International unit [17] and established its own UK distribution outfit with the acquisition of Oriole Records. [18]

Oriole Records was a British record label, founded in 1925 by the London-based Levy Company, which owned a gramophone record subsidiary called Levaphone Records.

By 1966, Columbia was renamed as CBS Records and was a separate unit of parent company, CBS-Columbia Group. [19] [20] In March 1968, CBS and Sony formed CBS/Sony Records, a Japanese business joint venture. [21]

1971–1991: CBS Records Group

In 1971, CBS Records was expanded into its own "CBS Records Group", with Clive Davis as its administrative vice president and general manager. [22] In the 1980s to the early 1990s, the company managed several successful labels, including CBS Associated Records, [23] which signed artists including Ozzy Osbourne, the Fabulous Thunderbirds, Electric Light Orchestra, Joan Jett, and Henry Lee Summer. [24] By 1987, CBS was the only "big three" American TV network to have a co-owned record company. [25] With Sony being one of the developers behind the compact disc digital music media, a compact disc production plant was constructed in Japan under the joint venture, allowing CBS to begin supplying some of the first compact disc releases for the American market in 1983. [26]

On November 17, 1987, Sony acquired CBS Records for US$2 billion. CBS Inc., now CBS Corporation, retained the rights to the CBS name for music recordings but granted Sony a temporary license to use the CBS name. [27] The sale was completed on January 5, 1988. [28] CBS Corporation founded a new CBS Records in 2006, which was distributed by Sony through its RED subsidiary. [29]

1991–2004: Birth of Sony Music Entertainment

Sony renamed the record company Sony Music Entertainment (SME) on January 1, 1991, fulfilling the terms set under the 1988 buyout, which granted only a transitional license to the CBS trademark. [30] The CBS Associated label was renamed Epic Associated. [31] Also on January 1, 1991, to replace the CBS label, Sony reintroduced the Columbia label worldwide, which it previously held in the United States and Canada only, after it acquired the international rights to the trademark from EMI in 1990. [30] Japan is the only country where Sony does not have rights to the Columbia name as it is controlled by Nippon Columbia, an unrelated company. [32] Thus, Sony Music Entertainment Japan issues labels under Sony Records. The Columbia Records trademark's rightsholder in Spain was Bertelsmann Music Group, Germany, which Sony Music subsequently subsumed via a 2004 merger, and a subsequent 2008 buyout. [33]

In 1995, Sony and Michael Jackson formed a joint venture which merged Sony's music publishing operations with Jackson's ATV Music to form Sony/ATV Music Publishing. [34]

2004–2008: Sony BMG: Joint venture with Bertelsmann

Bertelsmann Music Group Logo.svg

In August 2004, Sony entered joint venture with equal partner Bertelsmann, by merging Sony Music and Bertelsmann Music Group, Germany, to establish Sony BMG Music Entertainment. [35] However Sony continued to operate its Japanese music business independently from Sony BMG while BMG Japan was made part of the merger. [36]

The merger made Columbia and Epic sister labels to RCA Records, which was once owned by CBS rival, NBC. [37] It also started the process of bringing BMG's Arista Records back under common ownership with its former parent Columbia Pictures, a Sony division since 1989, and also brought Arista founder Clive Davis back into the fold. [38] As of 2017, Davis was still with Sony Music as chief creative officer. [39]

2008–present: Sony Music Entertainment and restructuring

On August 5, 2008, Sony Corporation of America (SCA) and Bertelsmann announced that Sony had agreed to acquire Bertelsmann's 50% stake in Sony BMG. The company completed the acquisition on October 1, 2008. [40] On July 1, 2009, SME and IODA announced a strategic partnership to leverage worldwide online retail distribution networks and complementary technologies to support independent labels and music rights holders. [41] [42] In March 2010, Sony Corp partnered with The Michael Jackson Company in a contract of more than $250 million, the largest deal in recorded music history. [43]

Doug Morris, who was head of Warner Music Group, and later Universal Music, became chairman and CEO of Sony Music Entertainment on July 1, 2011. [44] Sony Music underwent restructuring upon Morris' arrival; with some artists switching labels while other labels were shut down altogether. [45] [46] [47] [48] [49]

In June 2012, a consortium led by Sony/ATV acquired EMI Music Publishing, making Sony/ATV the world's largest music publisher at the time. [50]

In July 2014, Sony Music sold the historic Little Sisters of the Poor Home for the Aged building in Nashville, Tennessee to Vanderbilt University for $12.1 million. [51]

Rob Stringer became CEO of Sony Music Entertainment on April 1, 2017. [52] He previously served as Chairman and CEO of Columbia Records.

Sony has experienced a number of changes with its international labels. In March 2012, Sony Music reportedly closed its Philippines office due to piracy, causing it to move distribution of SME in the Philippines to Ivory Music, until 2018 when SME resumed its Philippines operation. [53] In July 2013, Sony Music withdrew from the Greek market due to an economic crisis. [54] Albums released by Sony Music in Greece from domestic and foreign artists would then be carried by Feelgood Records. [55]

In June 2017, Sony announced that by March 2018 it would be producing vinyl records in-house for the first time since ceasing their production in 1989. [56] Reporting the decision, the BBC noted that, "Sony's move comes a few months after it equipped its Tokyo studio with a cutting lathe, used to produce the master discs needed for manufacturing vinyl records" but added that "Sony is even struggling to find older engineers who know how to make records". [56]

On February 5, 2019, a group of 1970s-era musicians including David Johansen and John Waite filed lawsuits accusing Sony and UMG Recordings Inc of improperly refusing to let them reclaim the rights to songs they had signed away earlier in their careers. [57] The lawsuit cites U.S. copyright law, which gives artists who formerly bargained away their rights on unfavorable terms a chance to reclaim those rights by filing termination notices after 35 years. [58] The plaintiffs claim that Sony and UMG have “routinely and systematically” ignored hundreds of notices, having taken the position that recordings are “works made for hire” and are therefore not subject to being reclaimed. [57]

Sony Music UK

Sony Music UK is owned and operated by Sony Music Entertainment in the United Kingdom. Since 2014, Jason Iley has been Chairman and CEO of Sony Music UK. Though owned by Sony Music Entertainment, Sony Music UK has standalone operations in the UK to promote musicians within the UK. [59]

In June 2017, it was announced that Sony would be merging its two independent distribution companies The Orchard and Red Essential. [60]

2014 saw Sony's best singles success for 33 years, with 11 number 1 singles. Sony Music artists won a total of five individual awards at the BRITs 2015, including Best Female Solo Artist for Paloma Faith and Mark Ronson's 'Uptown Funk', which picked up Best British Single. Several other of the label's artists - Foo Fighters, One Direction and Pharrell Williams - also collected awards. [61] [62]

Sony's performance at the BRITs 2015 was the label's best in nearly 20 years, winning a total of 5 awards. In 2017, Sony Music UK celebrated the most successful BRIT Awards in the company's history, winning seven of the 11 awards.

In the last three years, Sony Music UK has made key acquisitions including forming Insanity Records with Insanity Management. Craig David became the first artist to sign an album deal with Insanity Records. Sony Music UK signed Robbie Williams, who released his 11th album 'The Heavy Entertainment Show' in 2016. Jason Iley commented that the agreement was "a once in a lifetime signing with the biggest male solo artist of our generation." [63] [64]

Sony Music UK also incorporated the independent sales and distribution company Essential Music and Marketing - renamed to Red Essential. In August 2016 Sony Music acquired Ministry of Sound Recordings, home to London Grammar, DJ Fresh and Sigala. [65] [66]

On April 5, 2017, two of Sony Music UK's labels won awards at the annual Music Week Awards. Columbia Records received the 'A&R of the Year' Award, while Syco were awarded the 'Record Company of the Year' Award. [67]

Controversies

CD price fixing

Between 1995 and 2000, music companies were found to have used illegal marketing agreements such as minimum advertised pricing to artificially inflate prices of compact discs. This was done in order to end price wars of the early 1990s among discounters such as Best Buy and Target. [68] A settlement was reached in 2002 that included music publishers and distributors Sony Music, Warner Music, Bertelsmann Music Group, EMI Music and Universal Music. In restitution for price fixing, they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing. [69] It is estimated that customers were overcharged by nearly $500 million overall and up to $5 per album. [68]

Michael Jackson and Tommy Mottola

The release of Invincible was preceded by a dispute between Michael Jackson and Sony Music Entertainment. Jackson had expected the licenses to the masters of his albums to revert to him sometime in the early 2000s, after which he would be able to promote the material however he pleased and keep the profits; however, clauses in the contract set the revert date years into the future. Jackson discovered that the attorney who had represented him in the deal had also been representing Sony. [70] He was also concerned that for years Sony had been pressuring him to sell his share in its music catalog venture; he feared that Sony might have had a conflict of interest, since if Jackson's career failed, he would have had to sell his share of the catalog at a low price. [71] Jackson sought an early exit from his contract. [70]

In July 2002, Jackson alleged that the then-Sony Music chairman Tommy Mottola was a "devil" and "racist" who did not support his African-American artists, using them merely for his own gain. [71] He charged that Mottola had called his colleague Irv Gotti a "fat nigger". [72] Sony refused to renew Jackson's contract, and claimed that a $25 million promotional campaign had failed because Jackson refused to tour in the United States. [73]

In May 2012, Sony Music filed charges against the website IsoHunt. [74] The plaintiff's claims in the court document filed at the Supreme Court of British Columbia read: "The IsoHunt Websites have been designed and are operated by the defendants with the sole purpose of profiting from rampant copyright infringement which defendants actively encourage, promote, authorize, induce, aid, abet, materially contribute to and commercially profit from." [75] On February 2016, in a lawsuit filed at a California federal court, Sony Music Entertainment and its associated brands (Arista Records and LaFace Records) accused Belgian radio aggregator Radionomy (owned by Universal Music Group's parent Vivendi) of copyright infringement. [76]

2016 boycott

In February 2016, 100,000 people signed an online petition in less than 24 hours, calling for a boycott of Sony Music and all other Sony-affiliated businesses after rape allegations against music producer Dr. Luke were made by musical artist Kesha. Kesha asked a New York City Supreme Court to free her from her contract with Sony Music but the court denied the request, prompting a widespread public and media response. [77]

List of Sony Music Entertainment labels

Flagship labels

Limited Liability companies

Genre-limited labels

Previously affiliated labels

See also

Related Research Articles

Clive Davis American record producer and music executive

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RCA Records is an American record label owned by Sony Music, a subsidiary of Sony Corporation of America. It is one of Sony Music's four flagship labels, alongside RCA's former long-time rival Columbia Records, Arista Records, and Epic Records. The label has released multiple genres of music, including pop, classical, rock, hip hop, electronic, R&B, blues, jazz, and country. Its name is derived from the initials of its defunct parent company, the Radio Corporation of America (RCA). It was fully acquired by Bertelsmann in 1986, making it a part of Bertelsmann Music Group (BMG); however, RCA Records became a part of Sony BMG Music Entertainment, a merger between BMG and Sony Music, in 2004, and was acquired by the latter in 2008, after the dissolution of Sony BMG and the restructuring of Sony Music. It is the second oldest record label in American history, after sister label Columbia Records.

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Epic Records American record label

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Bertelsmann Music Group Record label company

Bertelsmann Music Group was a division of German media company Bertelsmann before its completion of sale of the majority of its assets to Japan's Sony Corporation of America on 1 October 2008. Although it was established in 1987, the music company was formed as RCA/Ariola International in 1984 as a joint venture to combine the music label activities of RCA Corporation's RCA Records division and Bertelsmann's Ariola Records and its associated labels which include Arista Records. It consisted of the BMG Music Publishing company, the world's third largest music publisher and the world's largest independent music publisher, and the 50% share of the joint venture with Sony Music Entertainment, which established the German American Sony BMG Music Entertainment from 2004 to 2008.

Sony BMG Music Entertainment was an American record company owned as a 50–50 joint venture between Sony Corporation of America and Bertelsmann Music Group. The venture's successor, the revived Sony Music Entertainment, is wholly owned by Sony, following their buyout of the remaining 50% held by Bertelsmann AG. BMG was instead rebuilt as BMG Rights Management on the basis of 200 remaining artists.

Universal Music Publishing Group American music publishing company

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Sony Music Entertainment Japan Japanese record label

Sony Music Entertainment (Japan) Inc., often abbreviated as SMEJ or simply SME, and also known as Sony Music Japan for short, is Sony's music arm in Japan. SMEJ is directly owned by Sony Corporation and independent from the United States-based Sony Music Entertainment due to its strength in the Japanese music industry. Its subsidiaries including the Japanese animation production enterprise, Aniplex, which was established in September 1995 as a joint-venture between Sony Music Entertainment Japan and Sony Pictures Entertainment Japan, but which in 2001 became a wholly owned subsidiary of Sony Music Entertainment Japan. It was prominent in the early to mid '90s producing and licensing music for animated series such as Roujin Z from acclaimed Japanese comic artist Katsuhiro Otomo and Capcom's Street Fighter animated series.

RCA/Jive Label Group

RCA/Jive Label Group was a short-lived American record label group, owned by Sony Music Entertainment and representing the merger of the RCA Music Group and Jive Label Group. The umbrella group was formed in 2007 under the name BMG Label Group, was rebranded as RCA/Jive Label Group in 2009. In July 2011 it was finally dissolved into two separate labels: the RCA Music Group and Epic Records which took Jive subsidiaries until October 2011 when it retired Jive Records along with Arista Records and J Records. The artists on those three labels were moved to RCA Records.

Sony Entertainment, Inc. is a global entertainment company established in 2012. It focuses on most of Sony's motion picture, television and music businesses. It is a subsidiary of Sony Corporation of America, which in turn is owned by the Japanese Sony Corporation.

RCA Music Group was an umbrella group of labels distributed by Sony Music Entertainment that existed between March 2004 and 2009, and for a short period of time between July 2011 and October 2011 as all RCA Music Group labels were merged with RCA Records.

BMG Rights Management international music company

BMG Rights Management (BMG) is an international music company based in Berlin, Germany. It combines the activities of a music publisher and a record label.

RCA Inspiration is a gospel music group operating under Sony Music.

Columbia/Epic Label Group

Columbia/Epic Label Group was an American record label group, owned by Sony Music Entertainment. The Columbia/Epic configuration began as the "Sony Music Label Group" during the last Sony BMG merger, and was restructured in 2009 to form a larger umbrella for Columbia Records and Epic Records to continue to operate. The group also comprises Aware Records, and Daylight Records, while also handling the distribution of E1 Music via Epic Records. Additionally, in conjunction with Legacy Recordings, it also manages the back catalogs of American Recording Company, Portrait Records and Private-I Records. The Columbia/Epic Label Group ended the year 2010 with the largest album market share among all label groups with a 10.96 share, according to The Nielsen Company. Rob Stringer acted as the CEO/Chairman of the company.

CBS Records International international arm of Columbia Records

CBS Records International was the international arm of the Columbia Records unit of Columbia Broadcasting System, Inc. (CBS) that was formed in 1961 and launched in 1962. Previously Columbia Records had been using other record companies to distribute Columbia recordings outside North America, such as Philips Records and its subsidiary Fontana in Europe.

Lisa Ellis is an American businessperson and financier. Starting her career in management roles at the Pepsi-Cola Company, Reebok International, and Sony Music's Columbia Records, in 2003 she became Sony Music's vice president of strategic marketing and music licensing. She became president of Sony Urban Music in 2005 and executive vice president of Sony Music Label Group in 2006. She then became an operating partner at the investment firm Fireman Capital Partners in 2009, also serving on the board of directors for several Fireman portfolio companies. Ellis currently operates Box Three Eight Eight Management and is the managing partner of Provenance Ventures, a holding company for Provenance Media and Provenance Films. From 2006 until 2009 she was named to Billboard's “Most Powerful [20] Women In Music” list, ranking 3 in 2006 and 2007.

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