Two questions indie labels can think about
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Posted in Business on 07.10.07 22:41

First from Mark Mulligan: Whatever Happened to the Digital Album?

Over the last few decades the record labels have built their businesses around the album, and the costs and margins associated with that. Clearly many of those precepts are in need of revision, but it is not in the interest of the music industry to revert right back to the singles dominated market typified by the 1950’s. The cost difference between getting an artist to market is not massively different for a single or an album, the difference is that the latter benefits from the halo / ripple effect of numerous linked campaigns.

How will labels deal with this – I haven’t a clue. I do know the cost of putting out countless 45s would quickly add up beyond what we would be capable of as a new label. You would also need to maintain a higher rate of output – an album for better or worse affords you the window to promote, record repeat – a series of singles not so much.

Now focusing on digital solutions outside of physical formats could be a means of finding a solution for indies [much as the majors will need to do as well, see the full post above]. Which brings us to the next question, from Hypebot: Are Major Labels Trying To Shut Out Indies?
The question is posed in relation to developments surrounding the majors dealing directly with major internet broadcasters by-passing SoundExchange – and that alone raises numerous issues [read the post] but also makes me think of “the way things use to be” where the majors controlled – well everything. The mindset remains and the majors may yet find a way to hinder indies and hurt the ever-loving music consumer at the same time.

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