Will Indies Be Left Out Of Music 2.0?
Behind all the talk of the web empowering the artist and small labels, there’s a dirty little secret:
independent artists and smaller record labels are being shut out of Music 2.0.
From MySpace to YouTube and Nokia, the major labels are cutting deals
with Music 2.0 companies that include advance payments, equity or a
share of revenue. The majors may have lost their stranglehold on distribution and the media, but they are using the clout they have left to grab many of the new revenue streams that are replacing the profits lost from sales.
SURVIVING ON LEFTOVERS AGAIN…
But very few deals have been announced with indie labels or revenue offered to D.I.Y. artists. Trade groups like Merlin and A2IM are "in talks", and the net companies say, "Be patient, we’ll get to you".
What will be left for indie music once the major labels have grabbed equity positions in some companies and drained other revenue streams dry?
WHAT DO YOU THINK?
Merlin is the indies’ best hope & I have faith they’ll come through!
I agree thatMerlin has huge potential and I believe in the concept.
But when is it time for indies and their trade groups to expect results? When is it time to consider alternatives like an aggressive “we’re being left out” PR campaign, pulling content or even lawsuits?
Doug Morris effectively negotiates via leaks and the press. (Sadly)Perhaps indies can learn from him.
By demanding a piece of the action from digital outlets, the majors are building digital distribution networks to replace their terrestrial distribution networks that are shrinking as CD sales slip.
The difference is that instead of just getting distribution profits from their own product and outside labels with whom they have distribution agreements, they will now be getting a piece of EVERYBODY’S product … including ALL indie labels and DYI artists because their slice will be based on ALL music pumped through the digital outlets.
As with their terrestrial distribution networks, there will be no royalty obligation attached to the money they receive as a co-owners of digital distributors; therefore it is likely that they will work diligently, if stealthly, with their digital distribution partners to drive down the royalties distributors pay to third parties – including their own labels – because that money WOULD be subject to royalty payments to artists and songwriters.
The result: more money in the pockets of the majors … less money in the pockets of artists, songwriters and indie labels that don’t have the clout demand a piece of the action from digital distributors … A win, win situation as far as the majors are concerned.
Hell yeah–the major record labels are trying to take over the Internet; you best believe it! They know that if they are going to survive they have to lead, follow, or get out of the way and die. Apparently, the labels don’t want to go the way of the dinosaurs. So, they are going to put the Internet on lock down and push all the independent artists and labels out the gates.
Look at the MySpace Music deal. As soon as, MySpace announced the deal with the major music labels they took off the homepage how many artists they had on the site. I wish I had done a screen shot the day before and the day after the deal was announced.
I can’t wait to see what MySpace Music doesn’t do for independent artists.
Oh, please.
Indies are doing just fine. Check out RCRDLBL.com and all of the gazillion music blogs out there that are flipping the megaphone for small labels and unsigned acts.
Right now couldn’t be a better time to be an indie label. Marketing and distribution is practically free, and brands with money are eager to associate with a cutting-edge indie.
And frankly, big music fans in search of something new and different will not stick around sites that carry nothing but the majors.
I agree that there are greater opportunities than ever for indie labels. But that’s not my point…I’m worried their getting shut out of to0 many 2.o revenue streams….or at least shoved to the back burner.
How MySpace Music shakes out will be a real test now that the labels are partners…
Does anyone one know of 2.0 deals that labels and artist have made that has them getting their fair share of revenue?
There has been a lot of focus on major record labels within the web/music 2.0 movement from MySpace to Imeem.
However, I do have to agree with Ryann’s post. This is great time for indie labels and artists as new channels are being created that make it easier for music discovery. There will be services to come that will better level the playing field and make more unknown music known.
Of course, any artists who qualify but do not directly figure into the Web 2.0 revenue pie must be concerned and use whatever means they have to garner their share. That being said, any artists, especially unknown and emerging artists, except those signed to restrictive label deals, should forget about chasing dollars that are hardly forthcoming and and, even when they are, will be distributed in an as yet to be determined fashion. Instead of wasting time on this unprofitable course of action artists should be proactively seeking whatever means possible to tame the digital music frontier and dominate its futrure revenue streams in their favor. Record companies only have the means of monetary control if artists let them. Artists need to pick their battles. The one they need to win is that over the means of production, marketing and monetization of their music in the digital space. The discovery apparatus for new, unknown, mainstream artists is an evolving process still undefined on the Internet. It is fragmented and spread over a plethora of websites. Artists must focus their efforts into one website where it is possible to influence the musical tastes of a large number of people in a short period of time and build a critical mass of people great enough to break them into the mainstream
I didn’t mean to seem so dire in my last post.
I just meant to say that everyday another popular Web 2.0 company and even music blogs are being brought into the fold of the media giants.
What will that mean for the independents? Well, it will mean that these sites will promote the major label artists. This is how the independents will be shut out of the popular music sites (the sites they made popular). The popular music sites won’t bar independents from participating; they just won’t do anything for them.
Thankfully, a popular music site today may not be so tomorrow.
The Internet has a lot of potential for the independents.
The Internet is not like the rest of the world. If you have a great idea and a little know how, you can still make a great site, make money and help others make money as well (think Tucker and his dream).
I believe there is a way for Internet companies to solve the problem of how to best help independent artists and labels communicate with their audience, sell their music, and promote themselves online.