Kayla Bright

September 28, 2018

MKTG452
Brand Biography

Early
Brand Beginnings
Interscope Records was founded in 1990 by Jimmy Iovine and Ted Field. Iovine was recognized
within the music industry as an experienced engineer and producer, already having worked
with many big-name acts. Field provided a business background and financial backing for their
shared vision- to bring something new to the industry. The pair launched Interscope Records as
a joint venture with Warner Music’s Atlantic Records. Atlantic provided further financial
backing and established distribution channels (Gale, 2009).
1990’s Industry Landscape
The artists signing on to Interscope were making music that would not have been picked up by
any other major label at the time. Iovine negotiated innovative deals with small startup labels
such as Death Row Records to add more artists to the roster. Iovine made a similar deal with
alt-rock giant Nine Inch Nail’s representation. These deals bolstered the careers of these
already established artists and created a foothold for genres that resonated with music
consumers. Their broad roster consisted of Hip-Hop, Rap, Industrial, and Alt-Rock, and provided
Interscope with something no one else had- a niche market with a fierce following.

Early Perceptions
With that fierce following came fierce opposition. Interscope consistently found themselves at
the center of controversy surrounding the content they were producing and the artists they
supported. Politicians across the aisle condemned the lyrics and image of rap albums they
released, which were often political statements against police brutality and racism in America.
Prominent civil rights activist and politician C. Delores Tucker led the charge against Gangsta
rap and ultimately persuaded Warner Music Group, which was still under Time Warner, to back
out of their partnership with Interscope and sell their stake (Geier, 1995). MCA, now Universal
Music Group, then purchased that 50%, moving Interscope under a new parent company. This
time, Interscope could be prevented from distributing music not supported by UMG (Gale,
2009).

The controversy surrounding Interscope’s artists brought immense publicity for the label and
strengthened loyalty among followers of rap and hip-hop. The market was divided, but these
new brand associations drove sales and heightened brand equity among those still standing
with Interscope and their subsidiary labels.
Mid-Range
2000’s Industry Landscape
The early 2000’s saw a major shift in the way people were listening to music. This change in
consumption marred the music industry, and major labels and their artists paid the price. With
the creation of Napster in 1999, peer-to-peer file sharing was gaining ground at the turn of the
century, and traditional releases weren’t working as well. Subsequent releases of fill sharing
platforms like LimeWire increased accessibility. Consumer’s found a way to get their music for
free, and this hurt the music industry. Music was already digital, but file sharing meant that
people didn’t need to purchase a physical album to hear the music they loved. In households
with computers, the average CD expenditure decrease approximately 10% in the year 2000
(Michel, 2006).
Community and Market Perceptions
Major labels and artists filed lawsuits against these services for copyright violations. Dr. Dre was
among the artists that filed suits. Dr. Dre was originally under Death Row Records, an
Interscope Records subsidiary label. Because of his ties to Interscope, his stance on file sharing
was considered a statement from the label itself. Interscope did not directly release a
statement regarding file-sharing, but they were among the many companies listed as a plaintiff
in a massive lawsuit against Napster (9th Cir., 2001). File sharing was a divisive topic in the
industry, with labels and many artists on one side, and music fans on the other. Trent Reznor of
Nine Inch Nails, who left Interscope Records in 2007, was an open advocate for file sharing. His
stance was a complicated one, but it highlighted the need for traditional record companies to
change the way they approach music sales (Sandoval, 2007). The rift between artist, fan, and
record label grew deeper.
Brand Image
Interscope and major labels were considered by many to be outdated, these claims
substantiated by the dip in CD sales (Zentner, 2006). In addition to the whirlwind of file sharing,
Interscope was merging with A&M Records and Geffen Records to become Interscope Geffen
A&M Records in 2004 (Universal, 2003). Interscope Geffen A&M Records was also expanding
A&M efforts internationally, signing artists outside of the US (Leeds, 2007). Their artist roster
was now significantly larger, and this solidified their stance as a powerhouse label with
dominating artists spanning across all the major genres. Many chart-topping artists were linked
to Interscope, and this helped to improve the image of the brand after the controversial 90’s
and the anemic 00’s.

Now
Brand Image
Interscope Records is seen as a changemaker in the industry. They have maintained a large
social media following across platforms, follower count typically ranging from 500-700,000.
They continue to form partnerships with vanity and specialty labels such as Dre’s Aftermath and
J. Cole’s Dreamville (Robehmed, 2014). These partnerships reinforce Interscope’s image as an
influential powerhouse always at the cutting edge of cool. Interscope released a joint ad
campaign with Youtube Music that highlighted Interscope’s involvement, and the accessibility
of the entire Interscope collection (Records, 2018).

Consumer and Market Perceptions

Universal Music Group, Interscope’s parent company, holds 24.3% market share, Warner Music
Group 25.1%, and Sony Corporation 22.1%, with the rest held by considerably smaller
independent labels (Gambardella, 2018). Presumably, Interscope Geffen A&M is one of the
largest UMG subsidiaries, so it claims much of UMG’s market share. Interscope’s position as a
large label means that they are representing some of the biggest names in the industry.
Because of this, there is a positive association with the brand. Dre fans will probably know his
label, and when they find out it is a subsidiary of Interscope, they will have a positive
association with it. In addition, their longevity as a brand means that they are more
recognizable to casual music listeners.
Future
Brand Image
Interscope will remain a powerful industry player. They’ve endured changes and controversy
and will continue to adapt to a changing industry. The brand image is rooted in the artists on
their roster, but with recent product diversification, it will transform into a brand with even
stronger lifestyle associations. This label’s image is congruent with diversity, so there is not a
huge change in that aspect. However, Interscope’s venture into wine makes them more than a
music brand (Hu, 2016). Their image is transforming into the lifestyle that surrounds the music.
Consumer and Market Perceptions
Consumer perception will remain positive so long as Interscope is mindful of the current state
of music and the consumer experience. Today’s music festivals are just as much about status as
they are about experiencing music, and if Interscope continues to diversify in a way that
acknowledges and supports this, then consumers will support them. They will remain at the
forefront of the market through strategically placing themselves in the evolution of the
listening experience.

Evaluation
Interscope Records has always aligned itself with what is new and hip in the industry. They have
done an amazing job at anticipating and even culminating change. Interscope was the first
record company with a major label backing to embrace rap culture and produce these artists.
The same goes for gritty shock rock artists that lived on the now defunct Nothing Records.
Interscope gave artists more creative control than other labels, and that resulted in a loyal
following of both artists and fans. They have market share, but they didn’t need it to guide the
industry in new directions, as demonstrated by the company in the early 1990’s. Interscope’s
power is in being a little bit different. They build equity by taking chances on new markets and
aligning themselves with emerging popular culture.
Interscope’s expansion into alcohol marks a period of bold diversification. Alcohol and music
has a longstanding history, so the consumer association is already there. They are producing a
wine that is sold at large, trendy, music festivals. The packaging aligns with what consumers
expect from a purchase at those locations- it’s easily Instagram-able.
Interscope Geffen A&M can utilize lifestyle branding, which would transform their image and
make Interscope synonymous with all music, but this could erode their current brand equity.
They need to transcend genre and make Interscope synonymous with the listening experience.
The resurgence of vinyl poses an opportunity for Interscope (K, 2016). They can tap into the
nostalgia of consumers that feel disenfranchised with modern streaming services and digital
music. But most importantly, they can package the experience of listening to a record. This
would follow the lifestyle branding trajectory, and squarely position them as a leader in the
digital and physical listening experience.
 Works Cited
(9th Cir. 2001). A&M Records, Inc. v. Napster, 239 F.3d 1004

Gale: a Cengage Company (2009). "Interscope Music Group." Notable Corporate Chronologies.
Business Insights: Essentials.
http://bi.galegroup.com.ezproxy4.library.arizona.edu/essentials/article/GALE|I2501150937/fdc
273af9a3bc746e056898c6630e7c7?u=uarizona_main

Gambardella, A. (2018, June). Industry Report 51222. Major Label Music Production in the US.
Retrieved from IBISworld.
Geier, T, (1995, August 21). Trying to Avoid a Bad Rap: Time Warner Moves to Unload its Stake
in Interscope Records. Retrieved from U.S. News & World Report, p. 48.
Leeds, J. (2007, December 05). Cherrytree Records - Martin Kierszenbaum - Pop Marketing.
Retrieved from
https://www.nytimes.com/2007/12/05/arts/music/05cher.html?pagewanted=all&_r=0
Michel, N. J. (2006). The Impact of Digital File Sharing on the Music Industry: An Empirical
Analysis. Topics in Economic Analysis & Policy, 6(1). doi:10.2202/1538-0653.1549
Records, Interscope (@interscope). “Everything Interscope is on the all new @YouTubeMusic
app. Open the world of music #itsallhere → http://youtube.com/musicpremium .” 18
June 2018, 1:11pm. Tweet.
Robehmed, N. (2014, January 29). Exclusive: J. Cole Talks Partnership With Interscope Records.
Retrieved from https://www.forbes.com/sites/natalierobehmed/2014/01/29/exclusive-
j-cole-talks-partnership-with-interscope-records/#672115a6ca70
Sandoval, G. (2007, October 30). Trent Reznor: Take my music, please. Retrieved from
https://www.cnet.com/news/trent-reznor-take-my-music-please/
Universal to Merge MCA Into Geffen. (2003, June 10). Retrieved from
https://www.wsj.com/articles/SB105521061389669300
Zentner, A. (2006). Measuring the Effect of File Sharing on Music Purchases. The Journal of Law
and Economics, 49(1), 63-90. doi:10.1086/501082