HOW THE MUSIC INDUSTRY ORGANISES ITSELF AND

THE CRITICAL ROLE OF RESEARCH

INTRODUCTION - REPRESENTATION
Representation for different parts of the music industry:
• Trade bodies and professional societies – advocacy for
businesses in the same trade; or for individuals, those in the
same profession
• Music collection and licensing societies – perform an integral
service for members; part of the music infrastructure.
INTRODUCTION - RESEARCH
The role of research in representative bodies:
• Research as part of a campaigning effort – how can we
influence industry practices, public policy and opinion?
• Research to underpin commerce – how can we better
understand our customers and markets?
• Often both
• Examples given in this presentation are from last 18 months;
new projects always in development to reflect fast-moving
market
• Range of methodologies used – constantly developing and
refining
COMPOSERS AND SONGWRITERS
• Create the notes on the page
• Those notes become an asset, potentially very valuable
• Songs can take a life of their own and be used in many ways
– film, advertisements, attached to a brand or product,
associated with a movement or campaign
• Some composers write to a brief or are commissioned
• Less of a public profile than performers; though some
songwriters also perform
• Usually freelance; often solitary work
BASCA
British Academy of Songwriters, Composers and Authors
• BASCA is an independent, not for profit organisation that
exists to support and protect the professional interests of
songwriters, composers and lyricists of all genres
• BASCA is the voice for music writers
• Campaigns as a leading force in the domestic, European,
international political arenas
BASCA
British Academy of Songwriters, Composers and Authors
• Celebrates and encourages excellence through world class
award ceremonies: The Ivors; The British Composer Awards;
Gold Badge Awards
• Offers information, training, and events to further careers and
foster a sense of community amongst songwriters, lyricists
and composers
• Encourages the next generation of professional music writers
– through competitions and scholarships
BASCA
and the role of research

“The economic model now supporting the digital music industry does not pay enough
for music writers to earn anywhere near a living wage.”

• Campaign to demand advertising income be paid to creators

on streaming sites where music is a primary attraction
• Campaign to remove Safe Harbour protection for content
platforms such as YouTube to reinstate the value of music and
reduce copyright infringement
• Campaign for more transparency in licensing contracts to
provide musicians with more information
BASCA
and the role of research

• Campaign for a fairer balance of payments between labels-

artists and publishers-writers
• Diversity and equality within the music industry
Evidence gathering:
• BASCA encourages members to complete surveys such as
the European Commission survey on the remuneration of
Authors and Performers
MUSIC PUBLISHERS
• Find new writing talent and securing commissions for new
works
• Register works with all appropriate collecting societies
• Produce demo recordings and, for contemporary classical
music, scores and parts
• Produce and license the production of printed music
• Promote work to performers, broadcasters, record companies,
etc
MUSIC PUBLISHERS
• License the use of musical work, whether directly in the case
of individual and special usages (e.g. synchronisation deals)
or via the collecting society network
• Monitor and track the use of the music and ensuring that
proper payment is made
• Make royalty payments to songwriters and composers in
respect of the usage of their music
• Take appropriate action against anyone using music without
the necessary licence
MPA
Music Publishers Association
• Safeguard and promote the interests of music publishers and
the writers signed to them; with 260+ members including
Warner/Chappell Music; Sony/ATV/EMI Music Publishing; and
Universal Music Publishing.
• Represent these interests to government, the music industry,
the media and the public;
• Provide publishers with a forum, a collective voice and a wide
range of benefits, services and training courses;
• Promote an understanding of the value of music and the
importance of copyright;
• Provide information and guidance to members of the public.
MPA
and the role of research
“ BBC music services should be protected from budgetary cuts during the Charter
renewal process. If cuts are made then the impact would be detrimental for Britain’s
musical culture.”

• MPA response to DCMS consultation on the BBC’s charter

renewal
Evidence gathering:
• Radio 3 has commissioned nearly 200 original compositions
over the past 5 years
• Half of the songs played by Radio 1 and Radio 2 during the
daytime are not played by any comparable station
PRS for MUSIC
“We are a society of songwriters, composers and music
publishers.
We license organisations to play, perform or make available
copyright music on behalf of our members and overseas
societies, and distribute the resulting royalties to them fairly and
efficiently.
We promote and protect the value of copyright.”
PRS for MUSIC
• Copyright in music is how our 115,000+ members -
songwriters, composers and music publishers - earn their
living.
• Our members license their rights through us rather than doing
it individually, making it easier and more efficient for those
who want to use music to do so legally by obtaining a licence
from us.
• We are owned by and accountable to our members. After
deducting the costs of running our organisation, all the income
we receive from licence fees is distributed back to our
members.
PRS for MUSIC
• In terms of music copyright, there are people who write
and publish songs and musical compositions, and people
who perform and produce recordings. We deal with the
former, PPL deal with the latter.
• Wherever recorded music is used for public purposes it is
likely that a licence will be required from PPL in addition
to one from PRS for Music: separate payments for the
use of separate rights
PRS for MUSIC
• We are the UK's leading collecting society and part of a
global network of societies.
• In most cases a licence from us gives those who want to use
music the right to legally use millions of copyrighted songs
and music compositions registered around the world.
PRS for MUSIC
• Recent transformations within the music industry have
significantly impacted the way music is accessed and used:
across borders, across boundaries and on a diverse array of
devices.
• We are meeting the challenges of music in the digital age by
ensuring that music rights can be licensed across borders, in
an accurate, transparent and efficient manner.
• Our aim is to demystify the licensing process so everyone
better understands how our members’ rights are licensed and
the value that copyright represents to the UK economy.
PRS for Music
and the role of research

Our unique place in the music industry means we can provide

data for all aspects of the music business from sales, live,
broadcast and online to music creation.
PRS for MUSIC
and the role of research
Campaign to raise awareness about the critical need for legislative reform to ensure
music creators are properly remunerated in the growing streaming music market.
The online music market now accounts for approximately 50% of overall sales globally
with streaming services increasingly driving the change. In the past year, PRS for
Music’s royalties from streaming services exceeded those of downloads for the first
time - a trend repeated in 37 markets worldwide. Recent PRS for Music research also
that shows that over 90% of UK consumers have accessed some kind of streaming
service.
Some online content providers such as User Generated Content services relying on
what are known as ‘safe harbour’ provisions to avoid obtaining a licence or paying
proper licence fees, are threatening the long-term sustainability and growth of the
online music market. The lack of clarity about who is truly an ‘intermediary’ in the
current European legislation has deprived creators of the ability to consent to the use
of their works. This has resulted in a transfer of value from the creative industries to
the technology platforms, to the detriment of consumers and the UK economy.
PRS for MUSIC
and the role of research
The Six Business Models for Copyright Infringement is a segmentation driven
investigation of sites that are thought by major rights holders to be significantly
facilitating copyright infringement.
In this study, we investigate the operation of a sample of these sites to determine their
characteristics. Among other things, we investigate how they function, how they are
funded, where they are hosted, what kinds of content they offer, and how large their
user bases are.
The aim of this study is to provide quantitative data to inform debate around
infringement and enforcement. Although a large amount of quantitative and qualitative
data has been collected in the past through consumer surveys into why people use
these sites, there is insufficient data-driven analysis of the sites that are considered to
facilitate copyright infringement.
MUSICIANS AND SINGERS
Create assets through the performance of compositions
• Live performance itself
• Recording of the performance
Some artists are also able to generate an income from the
exploitation of their own ‘brand’
Some are also songwriters
Different contractual relationships and income patterns
depending on type of musician and type of music played
Often their own businesses or freelance, with various sources of
income
FAC
Featured Artists Coalition

“The Featured Artists Coalition campaigns for the protection of

UK performers’ and musicians’ rights.
We want all artists to have more control of their music and a
much fairer share of the profits it generates in the digital age.
We speak with one voice to help artists strike a new bargain
with record companies, digital distributors and others, and are
campaigning for specific changes.”
FAC
and the role of research

Fair Play Fair Pay

The Fair Play Fair Pay Act intends to bring the US law in line
with the rest of the world in paying performers from terrestrial
radio.
The Act is supported by Iggy Pop, Cyndi Lauper, Rosanne
Cash, Elvis Costello, tUnE-yArDs, Hoobastank, Maceo Parker,
PJ Harvey, Crystal Fighters and many others.
Its aim is to require all radio platforms to pay fair market value.
Many artists will be promoting the campaign via social media to
give the bill an extra push in Washington.
MU
Musicians Union

The Musicians’ Union is a trade union run for its 30,000

members
The MU offers comprehensive support and advice for
members undertaking live performance
The MU looks after the recorded performances of members
and offers advice to members who are also
songwriters/composers
The MU provides advice to musicians who also teach music
The MU provides a forum for musicians and those who need
them, information and training seminars, practical advice and
support
MU
and the role of research in campaigns

Work Not Play: Fair pay for musicians

MU are concerned at a growing trend of professional musicians
not being paid for their work.
In this era of illegal downloading, live revenue is incredibly
important and musicians rely on it to be able to survive. Most
musicians are not well paid and therefore music fans need top
join this campaign to ensure that music continues to be a viable
profession.
MU
and the role of research

Support My Music Teacher

#SupportMyMusicTeacher, in collaboration with the Music
Industries Association, highlights the inspirational work of music
teachers across the UK.
We want to raise awareness of the issues affecting music
teachers everywhere, and celebrate the work music teachers do
to create the musicians and music loves of the future.
We want to stop music education becoming the preserve of only
those with the means to pay.
MU
and the role of research

Agent of Change
We are lobbying for the Agent of Change principle, which would
make music venues less vulnerable to complaints coming from
residents of flats and houses that were built nearby after the
venue was established.
The law would make it the legal responsibility of the persons
who have brought about changes that inadvertently affect and
individual or business to take steps to remedy the problem.
MU
and the role of research

Fair Internet for Performers

“Take the Fair Internet Survey to help us fight for your right to a
fair share of online revenues from digital uses of your work.
The Fair Internet for Performers campaign is calling on
European institutions to create a sustainable creative sector
where performers get a fair share of online revenues, through
an unwaivable remuneration right for digital uses of their work.
This would be collected from those who make the performances
available on demand, and subject to mandatory collective
management.
To best represent your interests, we need an accurate picture of
industry practice and how it affects the level of income received
by artists.”
MPG
Music Producers Guild

“Conceived and supported by producers and engineers who are

passionate about all aspects of creating and recording music,
the Music Producers Guild provides a community for us to share
our collective experiences and collaborate with other like-
minded people.”
MPG
Music Producers Guild
• Regular professional events, information forums and seminars.
• Promote your skills and services on your own profile page.
• Generous discounts on pro-audio equipment purchases, industry services and
equipment hire.
• Access to legal, financial and professional advice.
• Vote for the short lists of the annual MPG Awards.
• Communicate with other members via the MPG Forum.
• Add your voice to the industry body which represents your profession via the
MPG and UK Music.
• Meet other people in the field of music production and pro-audio and make
contacts.
• Learn from experienced professionals and discuss ideas.
• You can attend equipment demonstrations and lock-out studio visits.
MPG and JAMES
JAMES is a consortium of music and entertainment industry organisations
collaborating in the support of education and promotion of excellence.

Assessed by industry professionals, we engage with education primarily through our

Course Accreditation process which is designed to endorse relevance, quality and
continuing innovation throughout the student curriculum.

This not only equips students for a rapidly changing industry, but also ensures that
many years of industry experience are not lost to future generations.

JAMES continues to promote supportive links between industry and education.

JAMES is a recognised PSRB (Professional, Statutory and Regulatory Body) for undergraduate higher education courses.
UNISTATS reference ‘ACC Type 10101’
MPG
and the role of research

The “Credit Where Credit Is Due” campaign

• In the age of the smart phone – it is still virtually impossible to get easy access to
information about the music you are listening to. Whether you are downloading
from iTunes or streaming from the likes of Spotify or YouTube, those responsible for
your music’s artistic and technical achievements are still going completely
uncredited, unrecognised and unappreciated.
• The MPG feels the music industry is missing an essential marketing tool by
denying consumers an easy way to cross reference and search for the work of
labels, musicians, producers, engineers,
• The MPG supports the initiative of Barry Grint, who has worked tirelessly to
persuade record labels to implement industry standard ISRC codes into digital files.
Embedding an accurate ISRC code guarantees the identity of the recording and
thus opens the door to attaching accurate credits to a digital file.
RECORD LABELS
Three “major” record labels in the UK: Universal Music, Sony Music and
Warner Music, as well as hundreds of independent labels and music
companies.
Each of the majors are home to smaller labels which often group together
musicians of a specific genre which can be served by the label’s expertise.
Regardless of the size of the record company, there are a number of roles
that need to be fulfilled in order to discover talent, make a record, market and
distribute a single or an album, and deliver that content to music fans.
The success of an artist will need the support of those within the sales,
publicity, promotions, marketing, legal, business affairs, and A&R
departments. And, of course, every company requires financial and IT
experts and secretarial staff.
BPI
At BPI, we provide a meeting place where major and
independent labels and all those who work in and around music
can come together to discuss challenges and identify innovative
solutions to help their businesses grow and develop,
to ensure the UK maintains its position as a leading force on the
global music stage.
As a trade body, we champion the interests of our membership
which includes more than 300 independent music companies
and the UK’s major record companies – Universal Music, Sony
Music, and Warner Music. Together, BPI’s members account for
85% of all music sold in the UK.
BPI
BPI organises the BRIT Awards show and the Classic BRIT
Awards show.
BPI co-owns the Official Charts Company in a joint venture with
the Entertainment Retailers Association (ERA). The Official
Charts Company is responsible for the commissioning,
distribution, marketing and promotion of the UK’s industry
standard music and video charts and sales data.
BPI also maintains the industry standard for certifying Gold,
Silver and Platinum sales awards.
BPI
and the role of research

BPI’s Research Department tracks and analyses industry trends

and results, keeping its members abreast of the latest statistics
on the recorded music market and the wider commercial
environment.
This research helps our members, industry stakeholders,
politicians, media and the public understand the UK recorded
music market and the key trends that are influencing it.
BPI
and the role of research

The BPI produces an annual Yearbook, the definitive guide to

the UK recorded music industry, which places recorded music
sales within the wider context of music consumption.
It includes a wealth of data:
Industry Income 2014
Best-Selling Albums and Singles of 2014
Best-Selling Music Genres of 2014
The Classical Market in 2014
UK Music in Europe 2014
BPI
and the role of research

Car companies are embracing the digital music revolution at an

accelerating rate, with latest figures suggesting 20 per cent of
new vehicles sold in the UK this year will be delivered without
CD players as auto manufacturers increasingly turn to
connected technology.
New research commissioned jointly by the Entertainment
Retailers Association (ERA) and the BPI reveals that internet-
based audio is likely to overtake CD in new cars by 2021.
BPI
and the role of research

Get it Right from a Genuine Site – @getitright – represents a

completely fresh approach to the issue of copyright infringement,
and seeks to engage with younger consumers in particular in
ways that are far more relevant to them. It marks the first time
that content creators from the worlds of film and TV and music
have, with the support of government as well as trades unions,
retailers and other creative sectors including games, books,
media and sports, come together with Internet Service Providers
(ISPs) to promote the value of creativity and to reduce online
copyright infringement.
AIM
Association of Independent Music
• The Home of the Independent Music sector.
• 800 members including self releasing artists to the largest
independent companies in the world.
• Our job is to help our individual members' businesses and to
support the needs of the independent sector. We promote and
protect our members in all business and policy matters.
• Affiliated to over 30 Independent Trade Associations around
the world.
AIM
• Independents are the life blood of the industry, developing new
artists and genres, working with new technologies – the ‘laboratory’
of the music industry.
• AIM unites labels to create a vibrant community, and provides the
tools needed to help labels succeed. AIM strives to create a level
playing field and fair commercial environment in which independent
music companies can grow and achieve success. By joining
together as part of AIM, independent labels have a strong voice
representing their interests to the wider industry and government.
• Artists signed to our members include Adele, Arctic Monkeys, Bjork,
Bloc Party, John Grant, The Prodigy, The xx, Enter Shikari, Grimes,
All Time Low, Jungle, Young Fathers, FKA, Twigs…and many more.
AIM
• Provides information and contacts for running a label
• Offers expert advice on all label business areas
• Provides legal and business affairs guidance
• Leads commercial negotiation to ensure fair deals for
independents
• Lobbies government, the media and industry on matters of
importance to independents
• Opens access to international markets
AIM
• Provides deals for members on key business services
• Organises seminars, training and networking events
• Ensures independents have good access to media
• Offers mentoring and business development opportunities
• Organises the AIM Independent Music Awards, shining a
spotlight on great independent talent
• Supports and co-ordinates the Independent Label Market,
which takes place several times per year in London
Spitalfields and other UK cities
AIM
and the role of research

We research our members to make sure we know if they’re

growing, how many they employ, what genres they operate in,
etc.
We share data, where relevant, with UK Music for the purposes
of assessing the size and contribution of the music industry as a
whole to the UK’s economy.
AIM will occasionally invest in major research projects to
highlight or challenge significant market developments.
MMF
Music Managers Forum
• A music manager is the primary representative of a music
artist.
• In 2015 a music artist looks to establish a business centred on
themselves in whatever field or fields they wish to operate.
The music manager is the CEO of the artists’ business and
their job is to develop and run that business to a set of
objectives that have been agreed with their client.
MMF
Music Managers Forum
• Managers therefore need a multiplicity of skills that can be
summarised as :
• Administration
• Communication
• Negotiation
• Enabling
• Those four words sum up an outwardly simple but
unbelievably complex task that contains a wealth of detail.
MMF
Music Managers Forum

The Music Managers Forum is the trade body for music managers.
We aim to do 4 things to facilitate our members businesses:
1. Education is our primary aim. Managers have to be aware of all and
everything that occurs in the totality of the music business worldwide
whether it is US visas, streaming rates, how to work best with the
modern methods of music distribution provided by tech companies or
how to deal with writers block.
2. Information is vital to run any business. From A1 National Insurance
Forms for France to the best digital distributor we provide the answers.
3. Representation. Managers reply on their trade body to represent their
views to governments, legislators, other trade bodies and funders
4. Enabling. We provide offers, discounts, freebies - in fact anything a
manager needs we can try to get a deal on it because if we don’t a
manager will.
MMF
and the role of research

Research has not been our strong point in the past but at the
end of 2014 we wanted to see an overview of the controversial
issue of streaming in all its facets.
We couldn’t find one so commissioned our own. The Dissecting
the Digital Dollar Report was published in October and has won
plaudits for its clarity. Written by Chris Cooke of Complete Music
Update it is available as a free download at: http
://themmf.net/digitaldollar/
PPL

Licensing recorded music

for broadcast, online and public performance use
on behalf of record companies and performers

• “Sound recordings” as defined under UK copyright law

• The copyright owner has exclusive rights:
• To copy • To adapt
• To issue copies • To rent or lend
• To play in public • To communicate to the public
• Some (but not all) of these are administered by PPL
PPL

Licensing recorded music

for broadcast, online and public performance use
on behalf of record companies and performers

• Over 2,000 TV channels and radio stations licensed

• Mixture of licensing tariffs and negotiated contracts
• BBC
• Commercial radio (c. 330 licences)
• Commercial TV (BSkyB, Channel 4, Five, ITV and c.400 others)
• Online and mobile (focus on programmes, not stand-alone tracks)
PPL

Licensing recorded music

for broadcast, online and public performance use
on behalf of record companies and performers

• No statutory definition; courts define as non-domestic

• Over 350,000 premises licensed
• 62 different tariffs to cater for different business types
• Ongoing work to simplify licensing process
• Consultations play an important role in setting tariffs
• Fees usually based on size of business/nature of use
• Concessions and exemptions for smaller businesses
PPL

Licensing recorded music

for broadcast, online and public performance use
on behalf of record companies and performers

• Sound recording copyright owned by the “producer”

• Typically a record company but nowadays encompasses a broad range of
rights-holders
• Rights-holders assign public performance and broadcast rights to PPL and
optionally appoint PPL as agent in respect of some other rights.
• Appointments cover all tracks controlled by the member.
• PPL made payments to 5,458 “record company” members during 2014
PPL

Licensing recorded music

for broadcast, online and public performance use
on behalf of record companies and performers

• Since 1996, inalienable legal right to “equitable remuneration” where

sound recordings are played in public
• Paid by the sound recording copyright owner, not users
• No mandate required, simply need to register and claim.
• PPL made payments to 55,853 performer members during 2014
• Optional international collection mandate. PPL collects for approximately
50,000 performers and collects over half of the revenue exchanged
between CMO’s worldwide.
RIGHTS FLOW

Sound Performers
Composition
Recording Rights

Record
Composer Performers
Producer

Property Rights
Record
Publisher Company

PRS for Music PPL

Right to Equitable Remuneration

Broadcaster /
Business playing
music in public
DISTRIBUTION

We receive data This information A royalty amount The total royalty Performer
from licensees is matched is allocated to a amount for a royalties for that
(and other against the PPL matched track single recording recording are
sources) about Repertoire depending on is divided divided between
what recorded Database. how much it has between rights the performers
music has been been played in holders and on the recording
broadcast and public or qualifying line-up.
played in public. broadcast. performers.

• PPL’s Distribution Rules are published on our website:

www.ppluk.com/I-Make-Music/Understanding-Your-Payments/How-is-money-
distributed/PPL-Distribution-Rules/
UK MUSIC
Overview of Members

UK Music Members
•
UK Live Music Group
Association of Independent Music (AIM)
• Agents’ Association (AA)
• Musicians’ Union (MU)
• Association of Festival Organisers (AFO)
• British Academy of Songwriters, Composers and Authors (BASCA)
• Association of Independent Festivals (AIF)
• British Phonographic Industry (BPI)
• Concert Promoters Association (CPA)
• Features Artists Coalition (FAC)
• International Live Music Conference (ILMC)
• Music Producers Guild (MPG)
• National Arenas Association (NAA)
• Music Publishers Association (MPA)
• Production Services Association (PSA)
• PPL
• Independent Venue and Promoter Association (we:LIVE)
• PRS for Music
• Music Venue Trust
• Music Managers Forum (MMF)
UK MUSIC
Live Music Group
The UK Live Music Group was formed by the live music industry to galvanise their
views and provide a way of linking their representative bodies to UK Music.
• Agents’ Association (AA)
• Association of Festival Organisers (AFO)
• Association of Independent Festivals (AIF)
• Concert Promoters Association (CPA)
• International Live Music Conference (ILMC)
• National Arenas Association (NAA)
• Production Services Association (PSA)
• Independent Venue and Promoter Association (we:LIVE)
• Music Venue Trust
UK MUSIC
Umbrella organisation for the UK’s music industry
• Members of UK Music are other trade bodies, professional associations, and
societies
• Voice for the whole of the music industry speaking as a single industry, for external
audiences
• Primarily outward facing – government, the media, other businesses
• Role for inward dialogue – place where different parts of the industry come together
to consider industry issues and practices
• Research is a key element: defining and measuring the music industry and
reporting on its role in the economy and society – to support our work on public
policy, education and skills
UK MUSIC
Music Academic Partnership (MAP)
• Formal relationship between UK Music and a select number of
academic institutions
• Your institution is a member!
• Common goal – to best prepare those wishing to make a
career out of their passion for music
• Closer interaction between academic institutions and industry
– events, hands-on experience, research
UK Music
and the role of research
UK Music
and the role of research

“Measuring Music” – annual report measuring the size of the

UK’s music industry
• Ground-breaking report – for the first time, the “music
industry” is defined as a distinct industrial sector of the
economy and measured
• Report on the music industry’s contribution to the economy in
employment, exports and GVA
• Repeated annually, building up a time series
• Praised by Intellectual Property Office for research excellence
• Cited by Government as an authoritative report on the music
industry
UK Music
and the role of research

“Wish You Were Here” - report on music tourism

• Reports on the economic contribution of music tourism to the

UK
• Report only possible with cooperation of ticket agents willing
to share their data
• Enabled an analysis of ticket data by purchaser’s postcode –
millions of lines of data
• Supplemented with data supplied by concert venues on
food/drink sales
• Supplemented with survey data completed by festival-goers
RESEARCH METHODOLOGIES – 1

Methodologies
depend upon the
research motivation
Influence public
policy to help
Maximise digital maximise the
and physical sales growth and
(labels) success of the
music industry
(trade bodies)

Maximise revenue
Maximise box from music used
office revenue on TV, film, radio,
(gig promoters) computer games
(publishers)
RESEARCH METHODOLOGIES – 2

Some important differences among these motivations:

Trade body motivation Do X – or don’t do Y –

about public policy so as to help industry
goals and tends to be perform better or
published and prevent it from being
publicised harmed
For example, showing
the significance of the
music industry to the
UK’s economy
RESEARCH METHODOLOGIES - 3
Motivation for some research more directly commercial

Some are Business-to-Business

(B2B – publishers), some are Usually involve better
Business-to-Consumer (B2C – understanding customers – and For internal purposes; generally
labels, promoters) potential customers not published
RESEARCH METHODOLOGIES – 4
What do we want research to tell us about customers?

How they experience the

product/service

Ho pro mar
(customer journey)

w duc ket
the t/s ing
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tio

ir r erv fu
eg re
nta
r s ey a

ela ice nn
(
me

tio
me t h

ns evo l)
st o h o

hip lve
(c u W

wit s
ht
e

he
RESEARCH METHODOLOGIES - 5
How can research provide insight?

What people say – stated

preference – focus groups,
surveys

What people do – revealed

preference – data on streaming,
music purchases and other
behaviour

‘Human’ element is challenging; we are complex creatures

RESEARCH METHODOLOGIES – 6
Customer segmentation divides a customer base into distinct
groups along lines such as:

Age Gender Interests Shopping Habits

RESEARCH METHODOLOGIES - 7
Different groups will differ in terms of their customer journeys,
i.e.

How they become aware of the product/service

How much they are willing to pay for it

How their relationship with product/service evolves

RESEARCH METHODOLOGIES – 8
Stated preference methodologies for customer
segmentation/journeys:

Surveys: Have customers reply to Focus groups: Get customers together

written questions to discuss their consumption
behaviour

Might use a mix of these methods – focus group followed by survey

RESEARCH METHOLOGIES - 9
But do people always do what they say they do? Increasing
resources available to assess revealed preference:

Streaming data: If people listen to Band Goal always to move people from being
X, do they also listen to Band Y? Do aware of a band or festival to being
they listen to more of Band X after advocates from them – “They are great!”
they’ve been on Jools Holland? Or
played on tour?
RESEARCH METHODOLOGIES - 10

Awareness

Consideration

Intent

Purchase

Loyalty

Advocacy
RESEARCH METHODOLOGIES - 11
Public policy research - what do we want research to reveal?

Size and constitution: what do we include in the music industry?

How well are we doing as an industry, over time, and compared to

other industries?

Our impact in society culturally and economically

What factors are affecting our businesses and in what ways?

RESEARCH METHODOLOGIES - 12
Start with available information – government data, other
published reports
Does it tell us everything we want to know?
What are the limitations?
What is missing?
How can we improve on it or fill in the gaps?

Trade associations are ‘treasure troves’ of information

UK Music
and the role of research

As an umbrella organisation, UK Music

• brings all parts of the industry under one roof
• can access information held by each part of the industry
• using the reach of our members, gather new information from
companies and individuals to fill in gaps
• provide insight into the industry as a whole
• build up a series over time – chart movement and trends
IN SUMMARY
• Individuals and companies join trade bodies and become part
of a bigger network
• The trade bodies provide information and advice directly
relevant to their work
• They also provide a sense of community and useful contacts
• The trade bodies advocate on their behalf for positive
changes
• Research underpins all of these efforts
 So that YOU can get on with
producing the best-selling song that
the world has ever seen.
THANK YOU!