Posted in Events, Press Releases by Al Verik
The World’s Indies See
The Future of The Music Industry
A2IM, The American Association of Independent Music, used its 4th Anniversary to look forward and create a road map for the future of independent music. The 4th Anniversary conference took place this past week in New York City, and attracted representatives of labels diverse in size and genre: folk labels from America, punk labels from Europe, rock labels from the UK, as well as representatives from Australian, German, Dutch, Mexican, New Zealand, and Japanese indie organizations and A2IM member labels from across the country. A2IM’s President, Rich Bengloff, capped the first day of talks with an impassioned plea for labels to think about their individual approaches to everything from radio play to online placements, and to consider the risk of cannibalizing themselves in the name of promotion. “Everyone gets excited about ‘free’ promotion of their music,” Bengloff said, “not realizing that making their copyrights so accessible, for free, on demand, might eventually lead to their own demise. Promotion has its place and is important, but it must be a means to an end for artists and labels; it’s not an end in and of itself.” Other first day speakers included Jim Mahoney (A2IM), Alison Wenham (WIN and AIM in the U.K.), Jim Griffin (Choruss), and Charles Caldas (MERLIN).
During the World Independent Network (WIN) think-tank sessions on the second day, members sat down to do the serious work of charting a course for the future of independent music.
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.”
About A2IM:
Launched on July 4th, 2005 to represent the needs of the independent music label community, this year A2IM celebrated its fourth anniversary as the sector’s pre-eminent advocacy group and trade organization. Currently, the organization counts over 225 music label members and 100 associate members (companies who don’t own masters but rely upon, provide services for, or otherwise support independent music labels).
A2IM is a not-for-profit trade organization serving the independent music community as a unified voice representing a sector that comprises over 30% of the music industry’s market share in the United States (and 38% of SoundScan digital sales). The organization represents the Independents’ interests in the marketplace, in the media, on Capitol Hill, and as part of the global music community. A2IM is headquartered in New York City.
The organization’s board of directors is comprised of the following: Concord Music Group President Glen Barros; The Beggars Group CEO Lesley Bleakley; Wind-Up Records COO Jim Cooperman; Razor Tie Executive Vice President Dan Hoffman; Alligator Records Founder President Bruce Iglauer; Roadrunner Records Executive Vice President Douglas Keogh; Bar/None owner Glenn Morrow; Lookout Records co-owner Molly Neuman: Kill Rock Stars President Portia Sabin.
For more information, or to become a member, please visit http://www.a2im.org/ or contact Jennifer Masset (Director Membership Services, jen@a2im.org) or Jim Mahoney (Vice President, jim@a2im.org) at 212 999 6113.
For press information on A2IM, please contact Nick Baily [nbaily@shorefire.com] or Chris Chafin [CChafin@shorefire.com] at Shore Fire Media, 718.522.7171
