This examines the pressures placed upon record labels owned by the media conglomerates and focuses on an issue rarely addressed within the financial or music business press, namely that there is relationship between the source of external finance and the degree of entrepreneurial creativity within music companies. The report will look at some of the successful creative and innovative independent record companies (including Chess Records, Motown, Beggars Banquet and Creation Records). It explains why most independents fail eventually and examine why they function so well, even if only for a brief period of time, and why they usually end up being acquired by the 'major' conglomerates who are rarely, if ever, able to replicate their success. The major music conglomerates are in fact driven by their need to maintain their short term share price ( "Playing with Fire" and this leads to a cycle of short term planning and signings described as a 'creative bankruptcy spiral' usually driven by a volatile and often turbulent stock market.
|Publication status||Published - 30 Jun 2003|
- creativity, independents, majors, share prices, short-termsim