Indie labels join forces

In the music business, online or off, indie is often synonymous with cool. But cool doesn't always pay the bills.

Betting that collective action will help give them more market power, a group of 125 independent record labels initiated a new trade group Monday night aimed at giving them more parity with the four major music labels.

Dubbed the American Association of Independent Music (A2IM), the trade group's membership and specific goals remain somewhat diffuse. But leaders--including top executives at some of the biggest independents in the country--say they're hoping to help give indie businesses the power their collective market share deserves as the music business is transformed by digital technologies.

"If the marketplace understands better how important the independent community is, there will be greater opportunity," said Steve Gottlieb, chief executive officer of TVT Records and a member of the group's board of directors.

Focusing primarily on the transformation of the music market online and in other digital distribution mediums, the group follows similar organizations that have successfully wielded collective influence in the United Kingdom and elsewhere.

The Association of Independent Music staged a mini-boycott of the initial launch of Apple Computer's European iTunes service, helping to get more favorable rates for its members there.

In the United States, independent labels have long complained that they receive a smaller percentage of revenues from new digital services than do big music labels like Universal Music or Sony BMG. Content aggregators such as the Independent Online Distribution Alliance and the Digital Rights Agency have helped narrow this gap somewhat.

This disparity has come even as digital consumption patterns show the scales shifting toward consumption of independent music, Gottlieb said. He noted that more than 30 percent of Internet radio play is drawn from independent artists and labels, a sign that independents should have the same treatment as the majors.

"Manufactured pop culture is disintegrating before your eyes as the Net takes hold, but some of these institutional biases hold on and continue into new media," Gottlieb said. "Any arrangement that treats music differently by virtue of it being owned by multinationals is not a good strategy and is doomed to fail."

The new trade group will be based in New York and plans to have a Washington, D.C., presence focused on legislation.

[markdoiron]

What Indy's Shouldn't Do . . .

"This disparity has come even as digital consumption patterns show the scales shifting toward consumption of independent music, Gottlieb said. He noted that more than 30 percent of Internet radio play is drawn from independent artists and labels, a sign that independents should have the same treatment as the majors."<br /><br />what the indy's should NOT do is what the riaa and their ilk are doing. indy's are experiencing a surge in popularity because many folks like me avoid riaa music as much as practical. that's partly because of the riaa treats their artists, but it's mostly because i'm tired of the outrageous prices they demand for their product, especially as they call for changes to law that further restrict fair use. personally, i'm much more interested in individual artists offering their wares using the internet, rather than just one more greedy association. <br /><br />mark d.

[froppo]

I totally agree!

I totally agree! I'm not interested in paying for songs that have little to no thought put into them..which is most of what most the Majors are all about. Crappy music for high prices. Gotta love them major labels!<br /><br />Anonym97<br />Sling Slang Records<br /><a href="#">Indie Record Label</a>

[augustinam]

There is another side

When we think of piracy and stealing music normally we think about the big bad superstar crying over what seems to be a drop in the bucket...but piracy hurts independants too...music is a tough business, it's hard to make money at it, and most of us aren't trying to get rich we're just trying to pay the bills so we can put out more music. <br />I think that Consumers should be more objective and understand that while the laws on distribution and piracy aren't perfect they are there to protect the people that make the product. Record companies sometimes spend thousands upon thousands of dollars making a record, just because it's not a tangible product (like a blender or a pair of jeans) doesn't mean that the same kind of care in production wasn't taken...why should people feel it's okay to steal music when they wouldn't steal a pair of jeans from the store? Most of the people that produce records aren't greedy, they just want to be treated with respect and have the product they put their heart and soul into be treated with respect as well.

[karnarecords]

Independent of Traditional Thinking...

Indies need to function like Indies, independent of traditional thinking. That?s where the Majors are hurting. I?ve seen successful businessmen lose everything they?ve got riding on the ?hopeful success? of a new label and on the flipside people with good ideas at the right time build new fortune and businesses with little to no prior experience. Having said that it?s a perfect opportunity for something new, creative ingenuity if you will. Read the headlines, Major labels take so much time to grease the wheels to get a project moving forward that a Major can find itself at a disadvantage up against an Indie artist that takes initiative for getting his or her team quickly mobilized in a new direction with the market. <br /><br />Stacy Blue<br />Karna Records<br />www.myspace.com/karnarecords