Upload
salma-wolford
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
Fat Beats, Inc.
What is it?
History
• Retail basement store open in 1994
• Owned by Joseph Abajian (DJ, B-Boy, and producer DJ Jab)
• Fat Beats, Inc.
• Headquarters in Brooklyn
• “The Last Stop for Hip Hop”
• Niche DJ market
Vertical Integration
• Production: Fat Beats Records
• Distribution: Fat Beats Distribution– “premier international independent distribution
company specializing in vinyl”
• Retail: Fat Beats and Fatbeats.com– “destined to corner the market in on-line hip
hop sales”
So, Fat Beats Can???
• Produce content
• Distribute its content to retailers
• Sells its content at its retail locations
• Promote its artists through in-store signings/performances
• Creates…???– Synergy!!! Of its commodities by selling
albums, CDs, tee shirts, DVDs
• Who does this sound like???
Production
• “much attention from major labels eyeing Fat Beats as an A&R source in hopes of landing the next big artist”
Distro• Opened in 1996
• worldwide clientele for wholesale and mail-order selections of various independent releases
• Clients= “crucial mom & pop retailer or dj store”
• “Independent record stores are vital to keeping this music we all love alive”
Distro Cont’d
• “Decidedly not a one stop”…?
• “distributing and marketing” artists
• $4M in distro sales in 2003
Labels Distributed
Retail
Formerly– Amsterdam– Atlanta– NYC– Los Angeles
• Web
Competition
• Production
• Distribution
• Retail– “destined to corner the market in on-line hip
hop sales”
The Alliance
• Newly formed alliances with companies such as Loud, Tommy Boy, Interscope, Caroline, and Koch
• October 30, 2007 KOCH Entertainment Dist. signed an exclusive physical and digital distribution deal
KOCH Entertainment Dist.
• Most $$$ “arm”• $175M in revenues (33%=digital sales)• 25,000 titles/280 labels• Ship, market, process music:
– “gives us a higher degree of control” M.K.
• May 2007, $6.5: • 2.7% market share
– 3.3%– 2.6%
• Publicly Traded on London AIM market– 1.3M public shares, 67.31% of stock is private
• March 2007, Marwyn LLP buys Ent. One for $160M
• Through Marwyn’s capital, Ent. One made many international film/music distro purchases
January 22, 2009
• E1 Music=– KOCH Records
• E1 Entertainment= – KOCH Ent. Dist.
• E1 Music Publishing= – KOCH Music Pub
• E1 Entertainment U.S.– KOCH Vision
• E1 Music Publishing= – KOCH Music Publishing
• No mention of Ent. One
• London-based hedge fund
• Specializes in…?– buyout – consolidation strategies
• Incorporated in…?
Cayman Islands
• $2B in acquisitions in 3 years
• 79% is privately held
Diversification???
• hazardous waste plants
• alcohol and drug abuse laboratories
• global laboratories
• online betting services
• construction training
• environmental safety consulting
• snack foods industry
Some Questions/Analysis…
• 1) Since the majority of KOCH Records’s sales are hip-hop or rap music, what does this mean for companies like Fat Beats?
• 2) What does KOCH Entertainment really mean by independent?
• 3) What does “independent” really even mean anymore?
Cont’d
• 4) Is there truly any competition in the recording industry? Especially in terms of distribution?
• 5) Can independent music/underground hip-hop and hedge funds coexist?
• 6) What does this relationship w/ hedges and off-shore trading mean in terms of the artists’ messages?
• 7) If “indies” supposedly subvert the dominant system (music and in general), are they, in fact, just reinforcing that system/status quo?
• If 80% of the music sold in America comes from the “Big Four” and 10% from the independents (ADA, RED, KOCH/E1) what “choices” do we have?
• Does this really even matter in the age of digital capitalism/music???