Paper 3 Music Industry Quiz

What is currently the most common way consumers access recorded music?

• Radio

• Streaming services

• CD purchases

• Digital downloads

Answer explanation

Streaming services have become the most common way consumers access recorded music due to their convenience, vast libraries, and subscription models, surpassing traditional methods like radio, CD purchases, and digital downloads.

Which of the following platforms is best known for direct-to-fan sales?

• Spotify

• Bandcamp

• Apple Music

• Amazon

Answer explanation

Bandcamp is best known for direct-to-fan sales, allowing artists to sell their music and merchandise directly to fans, unlike platforms like Spotify and Apple Music, which focus more on streaming.

Why might an independent UK record store survive despite competition from multinationals?

• They offer lower prices.

• They have government protection.

• They sell more online than competitors.

• They target niche audiences and local loyalty.

Answer explanation

Independent UK record stores can thrive by targeting niche audiences and fostering local loyalty, which multinationals often overlook. This unique connection helps them maintain a dedicated customer base despite competitive pressures.

Which of these businesses is one of the global “Big Three” music companies?

• TikTok Music

• YouTube

• Universal Music Group

• Live Nation

Answer explanation

Universal Music Group is one of the global 'Big Three' music companies, alongside Sony Music and Warner Music Group. TikTok Music, YouTube, and Live Nation are not classified as major record labels.

What is a major challenge faced by entrepreneurs setting up live music events?

• Digital marketing automation

• Access to government contracts

• Managing logistics and health & safety

• Creating merchandise

Answer explanation

Managing logistics and health & safety is a major challenge for entrepreneurs in live music events, as it involves coordinating venue setup, crowd control, and ensuring compliance with safety regulations.

Which of these would be considered a business growth strategy?

• Reducing workforce

• Launching new services like live-streaming

• Cutting product quality

• Avoiding investment

Answer explanation

Launching new services like live-streaming is a business growth strategy as it expands offerings and attracts new customers, unlike the other options which focus on cost-cutting or avoiding growth.

What is a typical objective of a multinational music company?

• Stay small and local

• Maximise shareholder returns

• Maintain equal pay globally

• Avoid technological investment

Answer explanation

A typical objective of a multinational music company is to maximise shareholder returns, as this aligns with their goal of profitability and growth in a competitive global market.

Why is vertical integration attractive in music distribution?

• It reduces tax

• It allows control over both production and distribution

• It avoids any competition

• It improves local PR

Answer explanation

Vertical integration in music distribution is attractive because it allows companies to control both production and distribution processes, leading to greater efficiency and better alignment of strategies.

What type of market does a vinyl-only record store operate in?

• Mass market

• Declining market

• Niche market

• Homogeneous market

Answer explanation

A vinyl-only record store operates in a niche market because it caters to a specific group of music enthusiasts who prefer vinyl records, distinguishing it from broader mass markets.

Which quality is most important for an entrepreneur in the live music industry?

• Aggression

• Inflexibility

• Resilience

• Shyness

Answer explanation

Resilience is crucial for entrepreneurs in the live music industry as it enables them to overcome challenges, adapt to changes, and persist through setbacks, ensuring long-term success in a highly competitive environment.