Case Study of Two Record Labels (Part 2): UMG

At the complete polar opposite end of the scale, Universal Music Group (UMG) is the largest record label in the world. Owned by media conglomerate Vivendi, it is the largest (in terms of revenue, market share and operations) of all of the 'big three' labels, and just this week (November 2011) bought ownership of EMI (who previously formed the 'big four'). Formed in 1934, it was originally the music company linked to film studio Univseral Pictures. Controlling interest was bought in 1952 by Decca Records, who were then bought ten years later in 1962 by MCA. Over the next thirty years, MCA (and soon-to-be-linked Polygram) acquired controlling ownership of many other small record labels, including ABC, Chess, Dunhill and Geffen.


In 1995, Seagram bought 80% of MCA Inc, and Polygram in 1998. With that, Seagram merged MCA and Polygram, renaming the newly combined music division Universal Music Group. Over the following fifteen years, UMG's market share rose steadily as it acquired more divisions of smaller labels, growing into the industrial powerhouse we know today. It also has joint ownership of music video service Vevo with two other 'big' major labels, which aims to attract more high-end advertisers. However, some users claim that UMG is using the service simply so it can abuse the DMCA to remove copywritten content from unauthorised (yet harmless) sources.


UMG, within its many divisions, caters for a great number of artists from many genres, all with one thing in common: consumerability. Above everything, it is a profit based organisation, focusing on music as a commodity than an art. It is for this reason that although it may promote some of the greatest artists alive, the label will never have the same heart, soul and passion you'd find in a hard working, music-loving indie label.

Music videos by UMG artists tend to have much higher production values, often with budgets comparable to small Hollywood films. Many of the industry's most famous music video directors are hired to work with these artist, and the videos can become famous in their own right, not just due to their associated song, such as Coldplay's reverse-narrative in the video for 'The Scientist' (bottom).