Is it a Good Time To Start Record Label?
I attended an industry event with some MDs of record labels and was thinking who would like to set up a record label
and was thinking “who would want to set up a record label?”.
As time went on I began to think that if the label was well positioned as a leader and it developed “niche” artists, it could be quite exciting to start a record label.
Would it be possible for a label to survive in this climate?
A few of these label owners were discussing recent deals — primarily of the 360 or 270 kind.
270 as well as 360 are the number of degrees of circle.
For example 360 meaning they obtain a share of 360 degrees (100%) of the artist income.
It is 75% of the artists income.
The record label does not only share the record sales of an artist but also shares the merchandising, touring, publishing and all potential income streams.
These labels recognize that there is still alot of money to be made for example live music, merchandise and publishing.
Music groups are tailoring their business in nontraditional ways in order to make up for the loss of CD sales caused by online music downloading
and they are restructuring and building their businesses around this.
If you’re considering starting a record label, don’t focus on the potential pitfalls, but keep your eyes on the influence that your label will have on the market and specifically for your niche.
People are gathering in groups via the internet and engaging with one another.
For them, they enjoy meeting to exchange ideas and general conversation.
These groups are best described as “tribes”, and due to the increased connectivity of the planet, they are ever more prevalent.
The role of the label will be to serve the tribes that have an interest in its output, and to recruit people in to the tribe.
The leaders of the tribe’s musical taste should be the label.
If you want to start a record label be sure to research and find the tribes that will be interested in what you are going to release and then begin to engage with them.
People do not want to feel like they are being told what to do. They want entertainment to share with others.
There are plenty of fans of music and plenty of good musicians playing good music, the role of the label will be to connect the two.
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