As an Intern for SMEI (Sony Music Entertainment Inc.,) there were many aspects of the Recording industry savored first hand. Those experiences, combined with Sony’s ingenious qualifications allowed an opportunity to understand what it takes to remain at the top of the recording industry, not as an individual artist but as a recording conglomerate.
In 1988 Sony acquired CBS Records, one of the most successful record empires thus Sony Music Entertainment Incorporated was borne. Sony took over Columbia and Epic record labels and founded new labels such as Chaos Recordings and Tristar Music Group. SMEI has gained a lush list of artist to include The King of Pop Michael Jackson, the sultry Sade, Pearl jam and the Spin Doctors.
To be on top and remain there as an industry giant, stamina is required. If your artist does not have staying power, then even the most touted diva is just whistling Dixie where it counts, in sales. Barbara Streisand needed a hit, though world renown she was sorely lacking in the hit department. Executives at Sony decided to pair the divine diva with new song stress Celine Dion the dynamic duo produced a hit which is featured on Streisands CD entitled “Higher Ground”.
Streisand is the comeback kid, her new CD has sold 2.5 million copies in the US, and it is her fastest selling CD to date. The decision to pair the youthful but soulful sound of Dion with the ageless vocal enchantress Streisand was no chance mishap. Sony considered Dions audience and appeal then paired her with Streisand in an effort to introduce a new audience to Streisand within Dion’s core audience. The two fold tactic was a success. Founding a new audience for Streisand and establishing legendary status for Dion.
Another one of Sonys’ prodigious stars Bob Dylan recently experienced a comeback of his own with “Time Out Of Mind”. This masterpiece is Dylan’s first original work in the last 8 years. “Time Out Of Mind” has sold more than 523,000 in the U.S. Sony took a chance on Dylan, a consummated artist who was thought of by his rivals as a thundercloud of declination. Sony’s savvy and calculated risk, was an example of top executive Tommy Mottola’s shrewd management.
“It doesn’t matter who you are, as long as you come out blazing” says Tommy Mottola in an interview with “The Wall Street Journal” February 23, 1998. Spending on new artist takes capital. Marketing, promotions, video’s and touring impact the bottom line. Initial cost for developing artist can reach epic proportions, if the star can impact sales internationally than the initial investment can be profitable. Sony is known for taking risk, for example last fall Sony purchased the soundtrack rights to the “Titanic”
for nearly $1million of course this calculated risk paid off when the Soundtrack was the number 1 Soundtrack for six weeks. And sales have not yet slowed that considerably. On February 17, retailers requested orders to the tune of 1.3million copies.
Internship with Sony requires an interest in the diversity. There are many challenging aspects of the recording business. One of them is the maintenance of Sony’s various artists web sites. Sony is on the leading edge of technology in fact innovators at Sony were one of the first to drive the music industry towards the Information Super Highway. Sony’s online site interacts with fans to supply them with information about their favorite artist. The website includes CD Extras, Shopping Online and electronic distribution.
Sony views the fusion of entertainment and technology as a lucrative prospect with tremendous growth potential, hence to keep up with the changing times. Sony has designated a New Technologies Unit, allowing artist the use of the most extensive genre of expression available today.
Another territory interns assist in is Advertising and Promotion. Sony gives away free concert tickets and other promotional products to market artist. Local radio are given promotional packages to give away, and many of the entertainers make appearances at the radio stations most affiliated with their particular target audience. The target audience is achieved during the Artist and Repetoir portion of the entertainers development, after a target audience is chosen, the target market strategy is established.
In the not so distant past, Sony was fifth in the market share of the six leading record companies. Sony turned things around with a few delectable deals and is at the midpoint of a successful about face. Proving once again that down does not mean out and last does not mean finished.
Many companies could take a tip from Sony’s tenacity, perseverance and stamina. Reaching the top isn’t always easy but at Sony it’s always interesting. The higher the stakes the more considerable the investment and the greater the profit margin. Sony is a company bold enough to take chances. Recently in Asia were sales are slumping as a result of the recent recession Sony decided to cultivate Asia’s local talent contemplating long term profitability.
Through clever management, and uncanny diplomacy Sony remains at the helm of the industry.
