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Atlantic Records Business Model
- 1. Atlantic Records Business Model By: Catherine McDowell, Hannah Granite, Dale McGinnis, and Michael Joyner
- 2. Atlantic Records • Diverse lineup of artists spanning several different genres • Part of Warner Music Group, meaning that Warner-Elektra-Atlantic (WEA) handles distribution and marketing for affiliated labels (WMG, n.d.) • In addition to “traditional” albums, Atlantic also has released soundtracks for the upcoming Fast 9 (F9) film, part of the Fast and Furious franchise as well as the soundtrack for Birds of Prey, a DC Comics live action movie featuring Margot Robbie as Harley Quinn. Products and Services Photo by Konstantinos Hasandras on Unsplash
- 3. Atlantic Records • Atlantic Records features artists from various different genres including rap, R&B, pop, punk/emo, rock and metal. • They also feature, or have featured, several artists who have been in the industry for many years such as Mary J Blige, James Blunt, Kelly Clarkson, and Matchbox 20, in addition to legacy acts including Rush, The Rolling Stones, The Bee Gees and Aretha Franklin. They also feature many current popular artists like In This Moment, Shinedown, Cardi B, and Halestorm. • Due to the diversity of artists, it’s difficult to pin down a specific customer segment. For the metal/rock artists (In This Moment/Shinedown/Halestorm), the segment would likely be more male oriented (60% male), between 15-35, lower and middle class but willing to purchase merchandise and music • For rap/pop, I feel the segment would be fairly evenly split, 55% male/45% female, teens to 30s, middle class willing to pay a bit higher price for tickets. For example, Bruno Mars has tickets starting at $275 for one of his Vegas shows on August 14th on Ticketmaster. Customer Segments Photo by Nicholas Green on Unsplash
- 4. Atlantic Records Key Activities Activities that are needed for Atlantic Records to Generate Revenue. Recording Music Music Publishing Music Production Music Distribution Merchandising Artist Promotion Marketing Partnerships Legal work (Maintaining rights, intellectual property, trademarks, etc.…)
- 5. Atlantic Records Channels • Atlantic uses several channels to distribute music. • They’re artist sites have music on them. • Atlantic posts new releases on the official page to get listeners and viewers. • They use online distributers like Youtube and Spotify • They also setup tours.
- 6. Atlantic Records Customer Relations •On the bottom of Atlantic’s site it has a follow Atlantic records banner , where it shows all of the social media sites you can follow them on such as, Facebook, Youtube, Instagram, Twitter, and Spotify. •On Atlantic’s website they also have websites for each of their artist where you can click and be led right to their pages like Ayanis, and A Boogie Wit Da Hoodie. Once you got to their sites you’re given links to where to stream their music.
- 7. Atlantic Records Key Resources Resources required to deliver Atlantic Records value proposition to their customers and generate revenue. Brand & Reputation Portfolio of their artists (Maintain their artists image and developing their personal brands) Music Catalog (Cataloging of recordings and songs across every music genre.) Sales & Distribution Channels (ADA, WEA, etc…) Retaining relationships with partnerships & personnel Legal Agreements (As such, Atlantic Records protects its intellectual properties through a range of intellectual property, principally patens, copyright law & Trademarks.)
- 8. Atlantic Records Key Partners The key people, organizations, & Businesses that help Atlantic Records generate revenue.  Artists  Parent company Warner Music Group and Division companies (Elektra, Parlophone and Warner Records, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Reprise, Rhino, Roadrunner, Sire, Spinnin’, Warner Classics and Warner Music Nashville.)  Adobe  Atlantic Studios  Venues (For concerts and events across the globe)  Online Service & Mobile Providers (Amazon, Apple, Vevo, KKBox, Rhapsody, Vadio, and YouTube)  Cable Advertisers ( Roger Media, MTV, Fuse, and Music Choice)  Retail Stores for CD’s & Merchandise (Music Retail Stores, Walmart, Amazon, Hot Topic, and BestBuy)
- 9. Atlantic Records Cost Structure • Recording Costs - The label incurs recording costs for albums recorded by their artists. The grammy award winning 24K Magic by Bruno Mars was recorded entirely in the elusive Gleenwood Place Studios in Burbank, CA and Invasion of Privacy by Cardi B was recorded in The Cutting Room in New York City. Coldplay recorded their eighth album, Everyday Life, in various recording studios across the Europe and the United States. Many top-of-the-line recording studios run as much as $500 an hour to use. • Marketing Costs - There are significant label costs associated with the marketing of acts and music. A number of the Atlantic Records artists are known global acts. Coldplay teased their latest album by using poster images in major cities across the world and sending letters to their fans. Costs are inccured before and after the release of music as well. • Production Costs - Labels incur costs for the full production of albums to include music producers, music video producers/directors, writers, and sample/interpolation clearances. The clearance of samples and/or interpolations can run as high as $10,000 per song used. Invasion of Privacy featured two major samples and three major interpolations that required clearance. • Touring Costs - While touring can be a major revenue stream, it is initially a major cost. Putting an act on the road costs thousands of dollars in logistics, personnel, equipment, and more. As the tour scale moves from regional to global, the costs rise as well. Bruno Mars sold a million tickets in 24 hours for his 100 date, 24k Magic World Tour.
- 10. Atlantic Records Revenue Streams • Digital Sales - These are one type of music revenue stream included in the overall release of new music. • Merchandise - Clothing articles, hats, pins, stickers, and more are major revenue streams for labels and artists, especially when on tour. • Streaming - The newest of the music revenue streams that can be calculated through streaming partners such as Spotify, Apple Music, and Tidal. An artist like Bruno Mars has 1,238,145,392 streams on his song, That’s What I Like, which generates upwards of six millions in revenue. • Concerts - Live music is a major revenue stream for labels and artists. Bruno Mars, who is beginning a Las Vegas residency, has concert tickets that start at $275 a night. The Park Theater in Las Vegas has a seating capacity of nearly a 7,000 seats which translates to more than a million dollars a night for sold out shows.
- 11. Revenue Suggestion • Atlantic should host a half day concert on a weekend, with well known artist who already generate a lot of revenue. Selling tickets to the virtual show. This would generate a large amount of money because those artist have fans around the world , and there is no limit to how many tickets are sold.
- 12. References • Atlantic Records Studio NYC. ATL Studios. (n.d.). https://www.atlanticstudiosnyc.com/. • Warner Music Group Services. Warner Music Group Official Website. (n.d.). https://www.wmg.com/services#recorded-music. • (n.d.). photograph. https://www.adobe.com/content/dam/acom/en/casestudies/air/atlantic-records/pdfs/atlantic-records-casestudy.pdf. • Creative Artists Agency. The US Staff site allows you to find your colleagues. (n.d.). https://bearsofficialsstore.com/company/atlantic_records/page3. • Warner Music. Cleverism. (2017, November 3). https://www.cleverism.com/company/warner-music/. • Birds of Prey Album + Diamonds Announce FINAL - 1.10.20 [Docx]. (2020, January 10). Atlantic Records. • File located at https://press.atlanticrecords.com/birds-of-prey-the-album/ • F9 - Tracklist reveal announcement [Docx]. (2021, May 27). Atlantic Records. • File located at https://press.atlanticrecords.com/f9-the-fast-saga-original-motion-picture-soundtrack/ • Green, N. (2017, July 27). Retrieved June 20, 2021, from https://unsplash.com/photos/nPz8akkUmDI • Hasandras, K. (2018, November 16). Retrieved June 20, 2021, from https://unsplash.com/photos/aivbDhWuFyw • Tickets|Bruno Mars - Las Vegas NV at Ticketmaster. (n.d.). Retrieved June 20, 2021, from https://www.ticketmaster.com/bruno-mars-las-vegas-las-vegas-nevada-08-14-2021/event/2E005ABFDD1E4C79 • Warner Music Group Services. (n.d.). Retrieved June 20, 2021, from https://www.wmg.com/services • Bruno Mars. (n.d.). 24K Magic. Atlantic Records. • Cardi B. (n.d.). Invasion of privacy. Atlantic Records. • Coldplay. (n.d.). Everyday life. Atlantic Records. • Fowlkes, K. (2020, April 12). The Art of Clearing A Sample: Deciding If It's Worth It and How To Actually Do . Medium. https://medium.com/the-courtroom/the-art-of-clearing-a-sample-deciding-if-its-worth-it-and-how-to-actually-do-e26fa56ad090. • How Much Does A Good Music Studio Cost To Use?: Recording Connection. Recording Connection Audio Institute. (2019, August 9). https://www.recordingconnection.com/reference-library/recording-entrepreneurs/how-much-do-music-studios-cost/. • Stutz, C. (2016, November 22). Bruno Mars' 24K Magic Tour Sells 1 Million Tickets in 24 Hours. Billboard. https://www.billboard.com/articles/columns/pop/7587922/bruno-mars-24k-magic-tour-1-million-tickets-24-hours. • Trendell, A. (2019, October 22). Coldplay confirm details of new double album 'Everyday Life'. NME. https://www.nme.com/news/music/coldplay-tease-new-double-album-mysterious-letter-fans-2559182.