ONLY 6000 OF THE 105,000 ALBUMS RELEASED IN 2008
SOLD MORE THAN 1000 COPIES
During the recent 4th anniversary meetings of the American Association Of Independent Music (A2IM) members gathered in think-tank sessions to "do the serious work of charting a course for the future of independent music". The result are two brief manifestos (my term, not theirs) that say a great deal about how independent labels view themselves and the future course being charted by its most active members.
Navigating The Future
Record labels need to consider and embrace changes in their structures and missions. All labels must consider themselves music companies, and must maximize their and their artists' income through a variety of revenue streams in a post album-centric world. Labels must explore all facets of the business, from syncs to video game placements to wireless, mine new emerging revenue streams, and craft bespoke contracts customized to each artist's individual needs. Music companies must innovate -- to help artists stay connected to their fans, and generate revenue in a way that transcends the now archaic traditional album cycle. Increasingly, labels must take a new approach to staffing -- the A&R department has to think financially, and the accountants have to be passionate about their label's music. In short, the next generation of successful music companies will have a nimble staff with the flexibility to adapt and thrive in a rapidly changing music marketplace.
Labels Matter
There's a popular notion that new technologies have eroded barriers to entry -- that an artist can record, distribute, and profit from music and make labels obsolete. But a simple look at some numbers shows the fallacy of this approach. According to SoundScan, 105,000 new full-length albums were released in 2008, up almost 300% from earlier in the decade. The number that sold over 1000 units in the first year? Only 6,000. A label provides the support, expertise, and relationships that can help a creative independent artist flourish amidst a shifting music landscape, and remain artists first. A great label guides and filters an artist's output, making sure only the best reaches fans. Labels that succeed will function as essential brands within their niche, guiding the right music to its most fertile audience. And lastly -- but most importantly -- labels must provide crucial support for an artist looking to profit from her work, and refuse to accept the idea that "digital music" means "free music."
I asked A2IM VP Jim Mahoney to put these strong statements in context. “The intention of A2IM’s annual meeting and the WIN Think Tank was to have independent music label heads share generic information gathered from their shared experiences."
But the resulting documents reads more as a call to action than a simple sharing of 'generic information'. "If the 'take home' from our meetings was the call to action" says Mahone, "It is not because of A2IM’s intention, but rather indicative of the growing sentiment of those in our community."
"I’d say there is a market correction underway as master rights owners grow stronger in their resolve that the performance of their music has value and, like our publishing brothers, we should be very diligent in protecting our copyrights and pragmatic in waiving our royalties for promotional opportunities only when there is an end profit goal in sight," continued Mahoney "Our industry is evolving and so too must music labels and those who use music to drive their businesses."
What do you think of the course that A2IM's members are charting for the future of indie music?
