1.2+Music

The changes taking place within the music record companies is that the big five (EMI, Sony Records, Vivendi Universal, AOL Time Warner and BMG) are taking over smaller independent music labels. The reasons for this is that owning a small time label will not generate much profit and they find it difficult to compete with the big companies. By doing this the Big 5 they gain a firmer and firmer hold upon the global music industry - controlling marketing, prices etc and having a market in all parts of the world. As the Big five become larger by buying up smaller companies, they become more powerful, and as they dominate greater shares of the global market they tend to grow larger. This cycle drives the big five to ever greater importance in the global music industry. They may also owe their size and influence to the ease of global communication and travel, which allows such outfits to operate trans-nationally.

=**__Evaluate the benefits and problems created by this change.__**=

The benefits for artists are that they can have their music elsewhere. Thus, increase diversity of genre. There will also be a growth of market share with the major five companies. Problem is that small local business is at risk of hostile takeover. Monopoly happens when company seek conglomerate, this might have unfair price on consumers. Small business cannot be heard and lose out in price war. The size of the local market also proves an important factor in the fight to stand up against big transnational companies. Many small local music companies can not find the money to support their business locally and are being out competed by the big music giants.

Markets like India are able to survive because the market is so big for the products. Big companies coming in to countries like France and taking over the music scene. This gives people in France the opportunity to listen to other music rather than only the smaller scale French productions. This in the short run means a larger veriaty of products available but if the local music cant compete with the international which has been the case in many countries the choice becomes a lot less varied and more concentrated into what the music giants produce.

The same can be seen in the Film industry where Hollywood dominates. It is hard for smaller companeis to succeed - the French film industry is under pressure. For now, India still has a thriving Bollywood industry but will that continue in the future as Indians become more and more exposed to Western influences?