It’s been said countless times before - the record industry is changing. But change doesn’t always just mean the evolution of new sounds, and a wave of new personnel making them. Right now pop, rock and club music is fusing together and, in consequence, diversifying further, to create weird and wonderful new beats and pieces. Absolutely….
But the channels of music distribution are also rapidly diversifying and creating all sorts of financial and organisational challenges for record labels, independent and major alike. Music’s digital revolution has brought greater accessibility and transparency to the industry; it’s not just the listeners who are better informed now, but the music-makers themselves. ‘Digital’ has encouraged artists to take greater control of their affairs and, at least in part, run their own operations; hence, a traditional record deal no longer works.
It’s why the ‘360-degree deal’ is suddenly the music industry’s favourite buzz-phrase. Rather than labels simply making recording deals with artists, they are prepared to offer them a whole range of options linked to recording, merchandise, promotion, licensing and performance. Artists can pick ‘n’ mix their contract and, in theory, maintain the kind of career maneuverability that today’s multi-channel music climate seems to demand.
“Defected introduced a new approach to its deals with artists and DJs a few months ago” explains the label’s Marketing & Business Director Kieran Mansfield. “In The House Music Services offers artists a menu of activities, covering marketing and promotion, licensing, publishing, event and DJ booking, and straight-up recording. We can help with as many or as few aspects of an artist’s career as they want; they retain their own identity whilst we increase our musical reach and, crucially, our profitability. This collaborative ‘360’ approach to contracts makes for more productive relationships.”
In the case of Steve Angello, Defected use its marketing and distribution machinery to ‘launch’ his Size tracks to clubbers. Spanish houser David Penn, on the other hand, works with Defected across several different areas. “Names like Osunlade and John Dahlback are also involved; it’s really a case for all of them of whatever suits” Mansfield adds. “The set-up is working really well for us so far and we’re going to keep expanding throughout 2010; it’s a major objective.”
Meanwhile, support for ‘360’ is very definitely spreading across clubland. Lee Bright, co-owner of the highly influential Barely Breaking Even (BBE) label sees much to admire in a new business model for the industry: “Labels running as ‘co-operatives’ is the best way forward as long as artists are willing to share all of their revenues be they album sales, publishing, merchandising or show receipts; this in return for the label supplying a secure managing function of their affairs. It’s essential that music labels grow their dynamics; not just to follow industry developments quickly but to actually create new developments and secure their futures.”
Even create their futures. The current climate of change is already responsible for several new labels and businesses starting up. Take the Three Six Zero Group, for example; a young, fast-growing and entrepreneurial ‘company’ working alongside traditional labels and their key artists to steer and support particular elements of the latter’s hugely diverse, 21st century careers – Audio Bullys, Calvin Harris, Mark Knight and Deadmau5 are all un-restricted clients.
Deadmau5, of course, is signed to major label EMI-Virgin, which not only works with Three Six Zero but also runs its own new ‘360’ operation, EMI Music Services. Last May, Deadmau5 agreed a worldwide partnership with EMI that enables him to work jointly with them on all “live, recording, sponsorship, television, film and merchandising activities,” as well as pursue separate interests via Three Six Zero. It sounds like a match made in heaven. The artist gains the considerable support of a major whilst protecting his creative freedoms; the major taps into lucrative new revenue streams and bolsters its brand image. Sorted?
What with hard-copy sales steadily declining and the potentially crippling issue of ‘anti-piracy’ ever present, many labels simply can’t afford to stick to traditional recording deals; they’re having to adapt. The initial steps of evolution are promising, even inspiring, but there’s still a long way to go yet…
Words: Ben Lovett
