Pop Cultures: a Comparative Analysis of the American and South Korean Record Industries
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POP CULTURES: A COMPARATIVE ANALYSIS OF THE AMERICAN AND SOUTH KOREAN RECORD INDUSTRIES by Kanel Marchand A Thesis Proposal Submitted to the Faculty of College of Business In Partial Fulfillment of the Requirements for the Degree of Master of Science Florida Atlantic University Boca Raton, FL May 2017 Copyright 2017 by Kanel Marchand ii ACKNOWLEDGEMENTS I wish to express my utmost gratitude to my committee members not only for their guidance and encouragement throughout the research and writing process of this manuscript, but also for the knowledge and support they have provided as professors in the Music Business Administration program. Your service is invaluable. I also wish to thank the Florida Atlantic University staff and faculty, in particular my advisor Dr. Marc Rhorer, for their assistance during my graduate career. iv ABSTRACT Author: Kanel Marchand Title: Pop Cultures: A Comparative Analysis of the American and South Korean Record Industries Institution: Florida Atlantic University Thesis Advisor: Dr. Ira Abrams Degree: Master of Science Year: 2017 As the oldest recording industry in the world, the United States has set industry standards regarding record labels, publishing, live entertainment and music services. Since the beginning of the 20th century, American music has become a staple in worldwide pop culture, spreading to all four corners of the world. Indeed, the U.S. music industry has held the number one position in the ranking of the world’s top 10 largest music markets since its first record label, Columbia Records, was founded in 1887. However, a relatively new genre of music is rapidly taking over the world’s pop music scene: South Korean pop music, otherwise known as K-pop. This thesis analyzes the similarities and differences between the two diverse music industries – with an emphasis on pop music – by first delving into the copyright and recording aspects of the business, followed by identifying key differences in each industry’s standards and aesthetics, and finally examining media consumption and marketing implications in the two countries. v DEDICATION This manuscript is dedicated to my parents and my brothers, whose unwavering love and support encouraged me to pursue my dreams. POP CULTURES: A COMPARATIVE ANALYSIS OF THE AMERICAN AND SOUTH KOREAN RECORD INDUSTRIES LIST OF FIGURES ............................................................................................................ x I. INTRODUCTION ........................................................................................................... 1 II. HISTORY....................................................................................................................... 3 United States ................................................................................................................... 3 Brief History ................................................................................................................ 3 How Streaming is Saving the Industry ........................................................................ 5 South Korea ..................................................................................................................... 7 Brief History ................................................................................................................ 7 K-pop: “South Korea’s Greatest Export” .................................................................... 9 III. COPYRIGHT .............................................................................................................. 12 United States ................................................................................................................. 12 The Copyright Act of 1976 ........................................................................................ 12 Performing Rights Organizations .............................................................................. 14 Music Piracy .............................................................................................................. 16 South Korea ................................................................................................................... 18 The Copyright Act of 1986 ........................................................................................ 18 Performing Rights Organizations .............................................................................. 19 File-Sharing and Anti-Piracy ..................................................................................... 21 vii IV. RECORD LABELS .................................................................................................... 22 United States ................................................................................................................. 22 The Big Three ............................................................................................................ 22 Indie labels ................................................................................................................. 24 Record Deals.............................................................................................................. 25 South Korea ................................................................................................................... 27 The Big Three ............................................................................................................ 27 The Industrialization of K-pop .................................................................................. 29 V. ARTIST PROMOTIONS ............................................................................................. 33 United States ................................................................................................................. 33 Music videos: the rise and fall of MTV ..................................................................... 33 Packaging the Artist................................................................................................... 34 South Korea ................................................................................................................... 36 The Uniformity of Groups ......................................................................................... 36 Packaging the Artist................................................................................................... 38 VI. IT’S A HIT! ................................................................................................................ 42 United States ................................................................................................................. 42 Apple’s iTunes Store ................................................................................................. 42 Streaming Services .................................................................................................... 43 Billboard and Certifications....................................................................................... 44 Award Shows ............................................................................................................. 46 South Korea ................................................................................................................... 46 Music Charts .............................................................................................................. 47 viii Music Shows.............................................................................................................. 49 Award Shows and Music Festivals ............................................................................ 50 VII. MEDIA CONSUMPTION AND MARKETING IMPLICATIONS ........................ 52 United States ................................................................................................................. 52 Internet and Social Networks .................................................................................... 52 Television .................................................................................................................. 53 Brand Power .............................................................................................................. 56 South Korea ................................................................................................................... 57 Internet and Social Networks .................................................................................... 57 Television .................................................................................................................. 58 Brand Power .............................................................................................................. 61 VIII. FINAL REMARKS.................................................................................................. 62 United States ................................................................................................................. 62 The Future of American Pop ..................................................................................... 62 Lessons to Learn from the Korean Record Industry.................................................. 63 South Korea ................................................................................................................... 65 The Future of K-pop .................................................................................................. 65 Lessons to Learn from the U.S. Record Industry ...................................................... 66 IV.