Sunday, June 3, 2012

Warner Chappell Changing Their Business Model?


In the early 2000’s, few understood the power and ability of the Internet as well as the opportunities social media would bring to music creators and consumers. Most, if not all major record companies and their sub publishing companies such as EMI, Warner Chappell and UMP were resistant to change their business models to better satisfy their customers.
However major innovative companies such as Apple, Sharper Image, and multiple online music stores took advantage of this new opportunity and provided music consumers and creators the ease to share their music material for little cost all around. While these quick and bold companies succeeded in their newfound ways, major record companies who resisted change found them selves relying heavily on their major hit makers, a perfect example would be Warner Music. Finally Warner Music seems to be changing their business model and opening their doors to new artists and composers. Where as in previous years they depending on there core artists such as T.I. Lil Wayne, Dr. Dre, and Timbaland. In a recent article by Billboard, Warner Music/Chappell has started a new movement that allows them to speed up the process of signing new writers and adds them to their roaster. In the first 4 months of 2012, Warner Chappell has signed multiple young artists under the age of 23, such as Virginian Lux Luger, and Young Chop. Warner Music/Chappell’s main goal is to maintain a “fresh young image” and not depend heavily on their aging core hit writers. This is a great opportunity for young aspiring composer, since Warner Music/Chappell is slowly opening their doors to new material and artists. It is said that people and businesses are most resistant to change, however with the music industry changing so rapidly and drastically, changing business models is a must if a company wants to survive and remain profitable.

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