QUESTION 2 OF 30

What are some of the biggest challenges you would expect a record label or entertainment company to come across?

There is a lot of discussion surrounding record labels and the need for them in our ever-changing digital world. Some of the challenges that Capitol Records may be facing today include:

- Streaming services gaining market leverage
- Artists becoming more educated and demanding more from their label
- Difficulty adapting to changing digital environments
- Loss of control when it comes to recording and distribution options
- Significant loss of revenue over the years

Discuss in a positive light, the issues that Capitol Records may be facing, and how you believe they have been overcoming these challenges.

"I believe that the digital world is changing the record label game at a fast pace. I think that the biggest challenge is keeping up to date with these changes, and pivoting quickly enough to remain relevant. From what I have seen, Capitol Records has fought hard and won when it comes to maintaining relevancy in this industry. You have done so through several successful mergers in the past."

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Anonymous Answer

Some of the biggest challenges that I would expect for a record label would be loss of revenue, artist contract demands increasing more due to an increase in knowledge, more competition in distribution, and artists favoring being independent more than ever before.

Chad's Feedback

You have identified multiple challenges that a record label may be currently facing. Good job! To strengthen your answer, discuss how you believe Capitol Records has been dealing with or overcoming, these challenges.

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What are some of the biggest challenges you would expect a record label or entertainment company to come across?

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