Entertainment Management
Situation Analysis Issue Definition Environment Analysis Strategy Options & Choice Action Plan
Situation Analysis
Situation Analysis(External)
So few songs actually become hits - Las Vegas gives you better odds than the Music Industry! You might as well just put a million dollars on red and spin the wheel...
- Ric Wake, Independent Music Producer
Entertainment Management : Polyphonic HMI : Mixing Music and Math
1
Situation Analysis(External)
Music Industry
10%
(only fewer than 300 of the approximately 3,000 singles released each year made it to the Billboard Singles Top 40)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
2
Situation Analysis(External)
Record Labels
90%
The lion’s share of a record company’s revenue was generated through its established artists - not new artists. For Warner Music Group established artists accounted for almost 90% of the 1.7 billion in revenues from newly released title in 2003. )
Entertainment Management : Polyphonic HMI : Mixing Music and Math
3
Situation Analysis(External)
Producers
20 to 30
(There were only 20 to 30 top producers who were responsible for the majority of successes, a large group of a few hundred producers who had a hit once in a while, and thousands of people trying to establish themselves as producer.)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
4
Situation Analysis(External)
Artists
10,000
(There were about 10,000 artists with a record contract in the U.S. and Europe, but only several hundred with some name recognition and commercial success. Tens of thousands of artists were hoping to secure such a contract.)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
5
Situation Analysis(Internal)
Polyphonic HMI
Polyphonic HMI was a Subsidiary of Grupo AIA that used A.I and Natural Science to solve business problems.