The globalisation for media institutions has meant that many parts of the world can now be reached with the same music, therefore bringing the market of the media group more profit for the same artist.
Mass media conglomerates such as UMG focus their audience around the world, at different types of music enthusiasts, they do this by having subsidiaries, which are in essence smaller record labels entwined into the big UMG label, subsidiaries of UMG are labels such Island Records which hosts artists such as Mumford & Sons and Bob Marley.
Smaller labels such as Domino Records do not have the money or the size to reach out and create subsidiaries, so therefore they focus their audience on a single country, usually where they are based, for example for Domino Records this is England, their two main artists are The Arctic Monkeys and Franz Ferdinand.
Smaller labels are at another disadvantage, because they do not have as many global connections they will find it more difficult to converge with television and film and have their music put on programmes and film, whilst large labels such as UMG will have many connections and will keep on getting profit and more audiences.
The artists signed to UMG however may find that their needs are not being met, because UMG is so large it is trying to appeal to a mass audience and artists with a niche audience will find it harder to find success with their type of music if the label they are signed to is trying to appeal to a mass market.
This effect could mean that the artist will have to become more main stream in which case will lose their original audience and could end up leading to a plummit in sales, it is safer for an artist with a very distinct and unique sound to stay with a smaller label that will focus more on their genre for example acoustic artists will benefit more from being signed to island records because that genre of music is their main focus.
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