n the face of increased homogenization, largely because such stations are not supported through advertising. Because they are funded by donations or nonprofit institutions, these stations benefit economically from catering to a minority of listeners who may support the station directly, rather than a larger majority that has other options for entertainment.
Because both the music and film industries face unique business opportunities and challenges, each operates on an economic model unlike either print or broadcast media. Just like those forms of media, however, music and film have undergone significant changes due to consolidation and technological and consumer shifts in recent years.
The music industry is closely related to the radio industry, and the two have a high degree of codependence. Without music, radio would not be quite as lively or nearly as popular; without radio, music would be more difficult for listeners to discover, and perhaps be limited to a local consumer base.
As radio companies have consolidated, so has the music industry. A total of four record companies, popularly called the “Big Four” within the industry, dominate the recorded music business and thus most mainstream radio airwaves. Because a conglomerate such as Clear Channel is ill-equipped to handle local tastes and musical acts—and because it tends to be easier to manage programming across a large regional area than on a station-by-station basis—the Big Four record companies tend to focus on national and international acts. After all, if a label can convince a single radio conglomerate to play a particular act’s music, that performer instantly gains access to a broad national market.
Music is therefore widely considered an oligopoly, despite the presence of countless small, independent companies. A handful of major record labels dominate the market, and they are all basically structured the same way. Universal is owned by NBC, which was in turn owned by GE and now Comcast; Sony Music is owned by the eponymous Japanese technology giant; Warner Music Group, although now its own entity, was previously under the umbrella of Time Warner; and the EMI Group is owned by a private investment firm.
Although the Big Four dominate the recorded music industry, they have surprisingly little to do with live performances. Traditionally, musicians have toured to promote their albums—and sell enough copies to pay off their advances—and the live show was a combination of self-promotion and income. An artist’s record company provided financial support, but a concert ticket generated significantly more income per sale than a CD. Since the merger of ticketing companies Ticketmaster and Live Nation, the ticketing services for large venues have practically been monopolized. For example, Madison Square Garden, one of the largest venues in New York City, does not handle its booking in-house, and with good reason; the technology to manage tens of thousands of fans trying to buy tickets to a soon-to-be-sold-out concert the day they go on sale would likely break the system. Instead, Ticketmaster handles all of the ticketing for Madison Square Garden, adding a 10 percent to 20 percent fee to the face value of the ticket for its exclusive service, depending on the venue and price of the show.
Because of the nature of film, the economics of the medium are slightly different from those of music. The absence of film in broadcasting, the lack of a live performance, and the exponentially higher budgets are just some of its unique facets. As with music, however, large companies tend to dominate the market. These massive studios are now connected corporately with other media outlets. For example, Sony and Universal both have partners in the music industry, while Fox and Disney control major television broadcast and cable networks as well as film studios.
Just as record labels do with radio conglomerates, film distribution companies tend to sell to large chains, such as the over 6,000-screens-strong Regal Entertainment Group and the over 4,000-screens-strong AMC Entertainment, wh