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Economics Homework

1.1. Research background In the sector of creative business, the music industry is said to be a dynamic dimension, which relies on production and distribution of music (Burnett, 2002). With the help of building partner networks between three sides (i.e. the music production side involving songwriters and singers, the business side involving managers, labels, and agents, and the consumer side involving listeners), the music industry operates essentially (Pastukhov, 2019). The total revenue of global recorded music industry has crossed 21.5 billion USD in past couple of years, as reported (IFPI Global Music Report, 2020). Moreover, it is also predicted that it will continue to grow in future as a result of music streaming platforms. As discussed by Swanson (2013), artists can share their music to public using music streaming through commercial services of music, for example: Apple Music, Tidal, Spotify, YouTube Music, and others. Noted by Moore (2021) that self-promotion of music artists and breaking through by means of commercial service platforms of music is the most momentous transformation in the music industry. With this change, the way of operation in the industry has been shifted completely from experience of music by consumers to artists making their living from received streams. 1.1.1. Egyptian Music Industry – Overview There are few major recording companies typically that dominate mainstream music market in Egypt. The most notably recording company is Rotana; after that Alam El Phan dominating the music market in Egypt (Khalil and Zayani, 2022). These labels have their own satellite channels playing an important role in promotion of singers by means of releasing music videos. In Egypt, these music videos are commonly known as “video clip” (Wolny-Abouelwafa, 2020). In the success of many Egyptian artists, these short music videos have become an imperative mainstay within the culture of music that has developed progressively interested in the chromatic. It can be said that the overall scheme of firms for music production is directed towards exclusiveness.

The aim of these corporations is linked with making investment in artists for driving the developing in the Egyptian music industry. Major labels or corporation of the regions, according to Benner and Waldfogel (2016) are known for performing and adopting costly models of marketing so as to ensure that good return on investments is received.

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