The internet has fundamentally changed the relationship between music’s so-called "big four" labels, independents and consumers, industry analysts have said.
Seventy per cent of the world’s music market is controlled by four companies – EMI, Warner, SonyBMG and Universal.The labels not only control what is released, but also influence radio and TV airplay, as well as urban and street culture.
But many in the industry – including the big four themselves – believe that the power balance is changing, due in particular to the internet.
Downloads, peer-to-peer (P2P) file-sharing, piracy, podcasting and online ad hoc radio stations – as well as a rejuvenated independent label sector and a new generation of music entrepreneurs – are shifting the power balance.
"It’s rapidly changing and different to how it was 10 years ago, five years ago, three years ago, two years ago," Tom Smith, lead singer of British group Editors, told BBC World Service’s The Music Biz.
The group reaped success with indie label Kitchenware after making their music available online.
"It seems to me that it means people can listen to more music, they can decide for themselves early on if they like or don’t like something.
"So they can actually listen to more than they ever would listen to and then go out and buy the record." The internet has fundamentally changed the relationship between music’s so-called "big four" labels, independents and consumers, industry analysts have said.
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