Not to long ago I was in a meeting with a couple labels and their respected distributors. Many of the people I was meeting for the first time, but given their resumes across the board, everyone was well respected. As everything shot along, I suddenly heard the mother of all comments: “well musicians have been screwing the SH** out of labels for several years now.” What? Just as I was about to chime in this individual backed up the statement with about a 5 minute off the cuff justification. Coming from someone who is very much pro musicians, deep rooted in artist development, and has nurtured artists who collectively have sold millions of albums, I bought into the statement.
Rightfully so, musicians and indie industry professionals are anti “major” anything; but this article isn’t about that. Minds have been molded to reject the industry machine, but how musicians are screwing labels represents the new age of the industry. This doesn’t reflect the majority, but it does reflect the norm. Indie labels are the victims, not the majors. Unfortunately the majors trained everyone to think bitter.
1. Jumping Ship
Musicians spend time searching for labels that will (1) sign them, (2) give them the most, and (3) sound impressive. Rarely do musicians understand (truly understand) the monetary risk and exhaustive networking that comes from an indie label just to get someone to listen. The market is so saturated that labels and their respected teams must desperately search for some kind, any kind, of press attention. Regardless of what people think, there is NEVER a “for sure” band. The amount of bands that break based on their music alone are 1 in 1,000,000. Labels are the traditional vehicles to push everything other than the music in order to get energy swarming around the music’s expression. This process takes years and luck. Today unfortunately musicians are looking for the best opportunity and not building long term, mutually beneficial deals with their labels. If labels don’t deliver immediately, musicians jump ship. This makes since on one hand, but on the other hand it’s a bad deal from the start. If musicians jump ship always looking for the biggest deal, labels don’t grow, musicians don’t advance, and the radio waves continue to be plagued with one hit wonders. If a label pours years into pushing a group, then the group aborts the plan because they don’t think the label is delivering, the label then loses clout with all the previous contacts and burns bridges that were laid for potential band success.
Musicians spend time searching for labels that will (1) sign them, (2) give them the most, and (3) sound impressive. Rarely do musicians understand (truly understand) the monetary risk and exhaustive networking that comes from an indie label just to get someone to listen. The market is so saturated that labels and their respected teams must desperately search for some kind, any kind, of press attention. Regardless of what people think, there is NEVER a “for sure” band. The amount of bands that break based on their music alone are 1 in 1,000,000. Labels are the traditional vehicles to push everything other than the music in order to get energy swarming around the music’s expression. This process takes years and luck. Today unfortunately musicians are looking for the best opportunity and not building long term, mutually beneficial deals with their labels. If labels don’t deliver immediately, musicians jump ship. This makes since on one hand, but on the other hand it’s a bad deal from the start. If musicians jump ship always looking for the biggest deal, labels don’t grow, musicians don’t advance, and the radio waves continue to be plagued with one hit wonders. If a label pours years into pushing a group, then the group aborts the plan because they don’t think the label is delivering, the label then loses clout with all the previous contacts and burns bridges that were laid for potential band success.
2. Risk Overload
When musicians are looking for the best deal as opposed to mutually beneficial deals, the market becomes overly congest with an unrealistic dream. There is a remote few indie labels that can actually deliver a favorable artist contract. The ones that can are generally big (borderline major label) where they can spread out risk. The ones that can’t are the ones being screwed by artists. Contrary to what people think, labels endure a tremendous financial risk when signing bands. There is a hell of a lot more to the equation than printing up albums and selling them. The financial constraints are often being floated by the label head’s personal bank account as opposed to a label’s. The same frustration indie bands have when they bankroll tours, indie labels have been bankrolling artists. The frustration normally shifts to monetary suicide when the very investment risk labels make (ie: the artist) jump ship to look for the next best thing.
When musicians are looking for the best deal as opposed to mutually beneficial deals, the market becomes overly congest with an unrealistic dream. There is a remote few indie labels that can actually deliver a favorable artist contract. The ones that can are generally big (borderline major label) where they can spread out risk. The ones that can’t are the ones being screwed by artists. Contrary to what people think, labels endure a tremendous financial risk when signing bands. There is a hell of a lot more to the equation than printing up albums and selling them. The financial constraints are often being floated by the label head’s personal bank account as opposed to a label’s. The same frustration indie bands have when they bankroll tours, indie labels have been bankrolling artists. The frustration normally shifts to monetary suicide when the very investment risk labels make (ie: the artist) jump ship to look for the next best thing.
3. 360 Deals Aren’t “Yes” or “No”
360 deals have a bad reputation. Correctly so, I’ve never seen an artist friendly 360 deal fall on my desk. With indie label 360 deals, don’t run for the hills when you see one, rather negotiate. Musicians see 360 deals and they either (1) leave, (2) attempt to negotiate it themselves, or (3) slander the label. Don’t do any of the above! Get an entertainment attorney to negotiate the 360 deal down to a 180 style deal which shares the risk between label/band. There is always a middle ground but typically the middle ground is hard to see because of frustration and emotions. When an indie offers a 360 this isn’t an open invitation to bash them and claim they’re a bunch of greedy asses. Negotiate.
360 deals have a bad reputation. Correctly so, I’ve never seen an artist friendly 360 deal fall on my desk. With indie label 360 deals, don’t run for the hills when you see one, rather negotiate. Musicians see 360 deals and they either (1) leave, (2) attempt to negotiate it themselves, or (3) slander the label. Don’t do any of the above! Get an entertainment attorney to negotiate the 360 deal down to a 180 style deal which shares the risk between label/band. There is always a middle ground but typically the middle ground is hard to see because of frustration and emotions. When an indie offers a 360 this isn’t an open invitation to bash them and claim they’re a bunch of greedy asses. Negotiate.
At its core this isn’t a problem with artists and labels, labels and artists, it’s a mindset thats plagued the industry. Focus on mutually beneficial deals as opposed to the greedy, “I want it now” or “what have you done for me lately” attitude. For artist to grow and indie labels to strengthen the parties need to be connected from risk/reward viewpoint.
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