Institutional research

Modern music videos are primarily made and used as a marketing device intended to promote the sale of music recordings. Most of the time, music videos are an artist's subsiduary media which helps to sell their singles and albums. Since MTV was launched in 1981 with "Video Killed The Radio Star" the music video has grown to be a key element in music marketing, making audiences identify a track by its music video. From 1992, the music video medium has become that of a mark of the music video auteur, giving directors credit for the success of a music video in the credits. Directors such as Mark Romanek and Michel Gondry came into the medium successfully because they brought a unique vision and styles to the videos they directed.

From 2005, the internet became video-friendly with file-sharing websites such as Napster, which enabled users to share both tracks and music videos. The introduction of YouTube in 2005 made access to music videos even easier, without having to sign up to view content. YouTube was also a success for the music industry because it marketed videos better because the audience can view them quicker and easier than before. Some artists and marketers began to see success as a result of videos seen mostly or entirely online, the band OK GO exemplified this trend, making their success and fame through their video being on YouTube, gaining over 43 million views.

The record company is a key part of the music industry, they sign up an artist or band and then pay them an advance which covers all costs such as marketing and costumes etc. The record company then produces a brief, budget, deadlines etc. The way that the music industry makes money through this is by employing a commisioner who works out what percentage the record company gets of the profit including the advance paid to the artist, the artist then earns the rest of the profit after the advance is paid back and commision is paid. In the production of the video, directors come forward pitching ideas to the record company (including storyboards), then the producer comes up with a budget and if that is accepted by the record company then the proposal is sent to the client and if they approve of it then the production unit is set up.