R18: Case Study: SONY Music

What is SONY Music?

Sony Corporation America manages and owns a smaller part of the Japanese conglomerate Sony Corporation which is known as the Sony Music Entertainment. In 1938, it was renamed Columbia Recording Corporation and in 1966 it was reorganized to become CBS records. The Sony Music Entertainment was finally brought by the Japanese Sony Corporation in 1987 and has once again been renamed to SME. It is now the world's second largest company, after Universal Music Group

According to Sony Music UK "Sony Music is the home to the world’s greatest artists past and present such as Beyonce, Foo Fighters, One Direction, Britney Spears, Usher, Justin Timberlake, John Legend, Meghan Trainor, Mark Ronson, Miley Cyrus, Calvin Harris, Pharrell Williams, Rita Ora, George Ezra, Olly Murs, Paloma Faith, Bob Dylan, Michael Jackson, Whitney Houston, Elvis Presley, Johnny Cash, Bruce Springsteen, Celine Dion, Barbra Streisand, Luther Vandross, Dolly Parton, AC/DC, Manic Street Preachers and The Clash."

The current Chairman and CEO of Sony Music UK is Jason Iley. Sony Music Entertainment prides itself as a 'global recorded music company with a current roster that includes a broad array of both local artists and international superstars". Importantly, Sony Music associates itself with other labels so there is a Premier record label for every genre the such as 'Flying Budda' and 'Louder than Life'

Sony Music Entertainment's future goal is to be the "best in the business" and "to create a world class record label and industry leader."

How long have they been running?

The Sony Music Entertainment Company has been running for 86 years...

Here is a timeline:

Founded: 1929 (as ARC)

1938 (as Columbia/CBS Records)

1991 (as SME)

2004 (as Sony BMG)

2008 (as SME)

"ARC was founded through a merger of several smaller record companies". This was the first step for the enterprise now known as Sony Music Entertainment. "In the depths of the Great Depression, the Columbia Phonograph Company in the U.S. was acquired by ARC in 1934"

What subsidiary companies do they own?

Sony Music Entertainment owns a variety of different record labels...

Columbia Records
Epic Records
RCA Records
Kemosabe Records
Sony Music Nashville
Provident Music Group
RCA Inspiration
Sony Masterworks
Legacy Recordings
Sony Music Korea
Sony Music UK
Sony Music Japan

"Sony Music Entertainment is an American music corporation managed and operated by Sony Corporation of America, a subsidiary of Japanese conglomerate Sony Corporation."

What are the implications of these subsidiary companies?

Management/Independence:

The parent organisation structures and controls the way the subsidiary company works. This results in less freedom for decision making and control for the subsidiary companies. The subsidiary company will have to follow certain regulations from the owner corporation. There is also a lack of independence for the subsidiary companies "it is imperative that both entities implement protective measures to prevent stakeholders from treating the entities as one company".

TAX/Finance Issues

If the parent company starts to be effected, this means that the subsidiary companies are also effected even if its not initially there fault for the problem however they will be the ones facing the consequences

Liability Issues

Linked to management and independence a "Direct liability can arise when one company undertakes some action on behalf of the subsidiary". Furthermore, "the parent promotes its involvement in the product manufactured by subsidiary" resulting in the subsidiary company not being able to produce a music record or artist of there choice.

Where is the head office?

Who is signed to them?

Some more artists signed by Sony Music...