Edexcel A Level Business Paper 3 2025 - Section A Trends

The Edexcel A level Business pre-release this year is :
music recording, distribution, and live performance industries, and the businesses operating in this market.

This is the first section of a complete teaching resource pack from Revisionstation

The topic is covers:
Students should research current trends in the consumption of recorded music

The whole pack is available from Revisionstation

1. 1
SECTION A
TRENDS

2. Research tips
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3. What is a ‘trend’ and how will it impact businesses?
•A trend is a _________________________________ over time towards a
product or service that stays e.g. streaming replaced CDs
•A fashion is ____________________________ peak in demand which
disappears after a while e.g. Sony Walkman
•A ______________________________ is a peak in demand which arrives and
disappears quickly e.g. iPods
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4. Trends introduction
There are many trends in the “consumption of recorded music”, these are
the ones that occur the most when researching this topic, there may be
others so add your own research to this section of notes:
1.Spotify Wrapped
2.Trend back towards ownership from streaming
3.Consumer experience
4.Super fans driving revenue
5.Algorithms and AI
6.____________________________________________________________
#1 Spotify wrapped
How well do you know Wrapped?
Are these statements True or false?
1.Wrapped is a recap of your music consumption year TRUE / FALSE
2.Wrapped is a conversation starter because you can compare with
other listeners TRUE / FALSE
3.This service is only available on Spotify TRUE / FALSE
4.Wrapped has its own Wiki page TRUE / FALSE
5.Wrapped causes viral trends TRUE / FALSE
6.Wrapped has an Apple alternative called Replay TRUE / FALSE
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5. 5

6. #2 Evolution of music
a)What impact have these changes had on the music industry?
b)How has music changed from a product to a service over
time?
c)What are the advantages and disadvantages of music
streaming?
Advantages Disadvantages
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7. #2 Trend – (slow) movement back towards physical ownership
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Conclusions from this graph:
Conclusions from this graph:

8. Bar chart showing UK inflation-adjusted recorded music revenues
between 2000 and 2021. It shows that initially revenues came solely from
physical albums and singles. In more recent years, streaming has
generated the most revenue. Total revenue dipped in the 2010s,
recovering after a low in 2015, but remains significantly lower than at its
peak in 2001.
What does this chart show?
What conclusions can you draw?
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9. #3 Consumer experience
•The recorded music market has evolved dramatically with
technology
•Consumers now enjoy unprecedented access to vast music libraries
through streaming services, which wasn’t possible customers were
all buying CDs or Vinyl
•This shift offers convenience and personalisation but raises
concerns about payment of royalties to artists and the value of
music
What are the key issues with music artists’ royalty payments on streaming
sites?
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10. #4 Super fans driving revenue
•Super fans are deeply loyal to
their artists, and they contribute
significant ______________________
to the industry through their
consumption of recorded music
and other
____________________________
•Artists that succeed in exploiting
exclusives and premium content for their super fans help themselves
to remain _____________________________ in a highly
__________________________________ market
#5 Algorithms
•Algorithms in the music recording industry play an important role in
consumer behaviour by personalising playlists and recommending
new songs, which increases engagement and customer retention on
streaming platforms.
•They also assist in data-driven decision-making for marketing and
artist development strategies
•What is an algorithm in this context?
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11. What does this chart show?
What conclusions can you draw?
#6 Rise of short form video content
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12. •The rise of short-form video content in the music recording industry,
used by platforms like TikTok, has disrupted music promotion and
discovery
•Artists use these videos to showcase their work, reach global
audiences, and rapidly climb music charts, making viral hits a new
norm
Another example __________________________________________________________
More trends – activity
•There are many more trends in the consumption of recorded music
that you could research
•Pick three that you have a particular interest in and create a
microteach for the rest of your class
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13. •Include a starter activity like a word search or discussion, a video
clip and a worksheet
The three trends I have chosen for my microteach are:
1___________________________________________________________________________
2___________________________________________________________________________
3___________________________________________________________________________
Factors leading to a change in demand: changes in the prices of
substitutes and complementary goods
•Changes in the prices of substitutes and complementary goods
significantly impact _________________________________________
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14. •If substitute prices rise, demand for a product increases as
consumers _______________________________
•On the other hand, when complementary goods become more
expensive, demand for the related product often
_______________________________
Factors leading to a change in demand: changes in consumer income
•Changes in consumer
___________________________ directly impact
demand
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Explain this theory using vintage audio equipment as an example

15. •When income increases, consumers can afford subscription music
streaming ______________________________________
•When income decreases customers may switch to the free with ad
versions of the music ______________________________________ services
Factors leading to a change in demand: fashions, tastes, preferences
•Fashions, tastes, and preferences strongly
influence demand in the music industry
•As trends shift, demand for specific
genres, artists, or formats (like vinyl or
streaming) changes
•Viral hits and cultural movements
changing preferences
•Why is Lil’ Nas X’s 'Old town road' going viral on TikTok an example
of this?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Factors leading to a change in demand: advertising and branding
•Effective campaigns elevate artists'
visibility, while strong branding creates
loyal ___________________________________
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16. •Social media ads, collaborations, and memorable logos enhance
brand ___________________________________
•Successful branding can make an artist or music platform a cultural
icon, for example Charli XCX's ‘_____________________________ campaign
in 2024
What was Brat Summer?

Factors leading to a change in demand: demographics
•Age, culture, and location dictate popular
_____________________________, artists, and formats
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17. •For example, younger audiences drive demand for streaming
services, while older __________________________________ demand classic
hits
•The global success of __________________________ and other K-pop
groups highlights how younger, tech-savvy audiences (Gen Z and
Millennials) influence demand (which are you?)
__________________________________________________________________________________
Factors leading to a change in demand: external shocks
•External shocks, such as economic
downturns, pandemics, or political
instability, greatly impact demand in the
music industry
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18. •For example, the pandemic increase demand for streaming services
but disrupted live events
•Artists like Travis Scott and Ariana Grande hosted virtual events,
which increased demand for interactive, online experiences
Read the article and circle the right answer
A)More than 12 million players logged in for Fortnite's concert featuring Travis Scott,
with reviewers calling it "stunning" and "spectacular"
B)More than 12 million players logged in for Fortnite's concert featuring Travis Scott,
with reviewers calling it "boring" and "stupid"
A)It included a skyscraper-sized version of Scott teleporting across the landscape as he
performed his songs.
B)It included a mini-sized version of Scott teleporting across the landscape as he
performed his songs.
A)Fortnite is one the world's most popular games, attracting millions of young players
from across the globe.
B)Fortnite is not one the world's most popular games, attracting few players from
across the globe.
A)Scott used the opportunity to reveal a old song remixed, while players celebrated the
event with themed in-game items.
B)Scott used the opportunity to reveal a new song, while players celebrated the event
with themed in-game items.
Moving from product to service (streaming)
•The music industry shifted from selling
physical products like CDs to offering
services like streaming
•Platforms such as Spotify and Apple
Music changed from iTunes which sold
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19. tracks to a subscription model provide on-demand access to vast
music libraries
•This transition moves the focus towards convenience and
accessibility and away from ownership
Do you agree the move from ownership to streaming is the future of
music?

Design mix: function
•In the music industry, the design
mix's function ensures products meet
consumer needs.
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20. •For example, streaming platforms like Spotify prioritise user-friendly
interfaces and personalised playlists e.g. wrapped
•Apple music provides
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Design mix: aesthetics
•In the music industry, aesthetics in the
design mix focus on creating visually
appealing album covers, stage designs,
and branding
•They shape an artist’s identity, enhance
audience engagement, and complement
the music's tone
•The Stokes'
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Design mix: cost
•Cost in the design mix involves balancing
budgets for album production, marketing
and promotions
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21. •Good management of costs means artists can offer high-quality
visuals, sound, and branding without overspending
•Independent artists often use digital production tools like
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Changes in the elements of the design mix to reflect social trends:
concern over resource depletion
•Changes in the design mix reflect social
trends like resource depletion through eco-
friendly packaging, digital releases over
physical media
•Coldplay used recyclable materials for CD
packaging and promoted carbon-neutral
album production
•Radiohead
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Design mix – activity
•Choose an album by an artist that you like
•Explain one way in which that artists could change the elements of
the design mix to reflect trends in the consumption of music
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22. •Function:
•Aesthetics:
•Economic manufacture (cost):
Purpose of sales forecasts
•A sales forecast in the recorded music industry helps predict
revenue from album releases, guiding production, marketing
strategies, and distribution plans
•The BPI analysed market data and predicted a 10% increase in the
UK's consumption of recorded music, amounting to 182.8 million
albums
22

23. Who are the British Phonographic
Industry (BPI)?
Factors affecting sales forecasts: consumer trends
•Consumer trends can impact sales
forecasts in the music
_______________________
•For example, the rise of TikTok-driven
viral hits like Olivia Rodrigo’s “Vampire”
shaped demand, with short, catchy
segments influencing streaming and merchandise
_____________________________
•Platforms like TikTok help predict trends and guide marketing
____________________________________
Factors affecting sales forecasts: economic variables
•Economic variables like ___________________________________ and
consumer spending power impact sales forecasts in the music
industry
23

24. •The UK Government has a “MEGS” scheme, with grants and funding
to help independent labels promote their artists abroad
•It has helped _______________________________ artists with
__________________________________of funding and is overseen by the BPI
Factors affecting sales forecasts: actions of competitors
Delete the wrong answers
•When Adele released her album ’30’ in late 2021, it created massive
global attention, overshadowing / outsourcing / offshoring releases
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25. by other artists like Ed Sheeran, whose album = (Equals) launched at
the same time / tall / tale / tide
•This competitive timing influenced / advantaged / instigated
streaming and album sales forecasts for Ed Sheeran, highlighting
how high-profile competitor releases can disrupt demand / sales /
revenue for others
Difficulties of sales forecasting
Delete the wrong answers
25

26. •Sales forecasting in the music
industry is difficult due to sudden
shifts in consumer behaviour or
unexpected ever / never / every /
/events
•For example, Frank Oceon’s surprise
album drop, Blonde (2016), disrupted sales forecasts for other
people / fellows / chaps / artists, as it diverted attention and
streaming demand, highlighting how unplanned releases affect
accuracy / precision / truth / exactitude
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28. 28

29. 29

30. 30

31. Aim of portfolio analysis
•Portfolio analysis helps music labels manage artists and projects by
identifying high-potential investments and balancing risk
•For example, Universal Music might use portfolio analysis to
prioritise resources for emerging stars like Chappell Roan while
maintaining long-term investments in established artists like BTS
and The Weeknd
Portfolio analysis – activity
•Carry out some research into brand portfolio of UMG on this link
here
•Write an essay outline for the following:
•Assess the usefulness to UMG of portfolio analysis [10]
Definition
Portfolio analysis is
useful to UMG
because
Portfolio analysis is
not useful to UMG
because
Conclusion
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32. Achieving competitive advantage through distinctive capabilities
•Portfolio analysis ensures music companies balance investments in
artists and projects, means the music labels can manage risk and
maximise profitability.
•Sony Music: Invests in global stars like Harry Styles for steady
income while supporting rising talent like ROSALÍA to expand
into new markets
•Warner Music Group: Focuses on established artists like Dua
Lipa while nurturing breakout performers like Saweetie for
future growth
•Atlantic Records: Balances investments in chart-toppers like
Bruno Mars while promoting emerging acts like Jack Harlow
to diversify revenue streams
Draw a line to match the star with the right paragraph:
Kay’s diagram - activity
•Create a diagram of Kay’s Distinctive Capabilities and find 3
examples for each part of your diagram:
•Architecture – relationships with stakeholders e.g. Music
Managers Forum ( MMF )
•Reputation – through the customer experience e.g. UK Indie
label XL Recordings known for top quality artists such as
Adele
•Innovation – bringing inventions to market e.g. Abbey Road
Red
Draw a line to match the graphic to the right paragraph
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34. Plenary Quiz – true or false
Decide if these are trends in the consumption of recorded music:
A.Paid subscription services are reducing, with customers turning
back to free with ads content TRUE / FALSE
B.Shorter Attention Spans: Listeners increasingly favour shorter
tracks or curated playlists, influenced by social media platforms like
TikTok TRUE / FALSE
C.Vinyl Revival: Despite the dominance of digital formats, vinyl
records have experienced an increase in demand among collectors
TRUE / FALSE
D.Smart speakers, wearables, and voice assistants like Alexa and
Google Home have made accessing and consuming music more
convenient TRUE / FALSE
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