At a MusicTank conference on Tuesday night, I had a chat with Simon Wheeler, Director of Digital at Beggars Group, about what it’s like running an independent label in these changing times for the music industry. He said: “When it comes to negotiating deals with new digital ventures like Nokia Comes With Music and MySpace Music, we can’t compete with the majors when it comes to money and might. But we can compete when it comes to talent and signing great artists. And that is our main focus.”
Independents have always championed some of the most interesting acts, acts that have even defined genres. Maybe it’s because indies don’t have to report to stockholders. Maybe it’s because starting a label is so time consuming and expensive that you would only do it if you absolutely love music and the artists you sign. This is why indies tend to stick with their artists should a record fail to hit the charts.
At last month’s Musexpo, two of the most successful UK indie-label owners explained what drives them, and how they operate. Daniel Miller, president of Mute, put out his own electronic record, Warm Leatherette, during the punk era in 1978. “People think you’re a label when you put out a record. I didn’t think I was.” But as he started receiving more and more demos, the label developed organically. By the beginning of the 80s, Mute was home to bands that went on to redefine the English sound: Depeche Mode, Yazoo, Nitzer Ebb and Erasure.
“I like things I’ve never heard before and I only sign music that I like,” says Miller. “I’m lucky, cause there’s not much music I do like. My record collection is small. We went through years without signing an act in the middle of the 90s.”
Richard Russell, CEO of XL Recordings, concurs. “Not signing much is a good idea. The problem in this business is that too many records are put out. There can only be one great artist in every scene. Scenes tend to create a lot of mediocrity. To me, signing is instinctive. The more I think, the worse it gets. I’m not signing people for who they are, but for their potential. I have to believe in the person.”
XL (now part of Beggars Group) was launched by Russell, Tim Palmer and Nick Halkes in 1989 to release rave and dance music. They’ve now grown into one of the most commercially successful and influential independent record labels in the world, with artists like Adele, Basement Jaxx, Beck and White Stripes on their roster.
“The more interesting the acts are, the more difficult it is to get it on the radio. MIA, for example, doesn’t have a lot of craft. She’s all ideas and originality. The response we got when we put out her first single was extremely negative. Jack White, on the other hand, is all craft,” says Russell. “I am so drawn to misfits; people who don’t fit the mould.”
“Adele,” Russell continues, “more than any other of our artists, had strong views on starting big. And she knew how to do it. Liam Howlett (of XL act The Prodigy) is all instinct. There’s no analysis. He has a way of dismissing almost everything. But as long as you trust them, the most difficult artists are the easiest to work with.” No wonder Radiohead decided to go with XL once they had fulfilled their contract with EMI.
Russell says that he loves pirate stations and drives around every weekend to catch their broadcasts on his car radio. Somehow I can’t picture EMI chairman Guy Hands doing that. His record label announced during MusicWeek that they’ll be investing hugely in researching more about music fans and how they interact with music. They also want to “regain leadership in innovation of how music is experienced”, mentioning the iPod as an example of the kind of innovations they’d like to develop. How about focusing on finding and developing incredible, unique talent? I don’t think Beggars, Mute and XL Recordings have to worry about being pushed out of the business any time soon.
As rumored for weeks, Courtney Holt has been appointed the President of MySpace Music. Holt will relocate from his NYC MTV office to new digs in LA beginning January 5th. In the meantime, you can friend him of his very own MySpace page.
Holt could probably use a few friends in the independent music community. MySpace Music got off to a rough star with indies when the service, which in many ways was built on the backs of independent musicians, launched without offering them the same equity stake that it used to lure the majors. Like a bride left at the alter, many indies cried foul. “It certainly makes (MySpace CEO) Chris DeWolfe’s public statements, that the ‘indie bands are really the heart of MySpace’, ring extremely hollow,” indie trade group Merlin CEO Charles Caldas said on launch day.
Since then, The Orchard, IODA and a few others have forgone equity and signed on. But thousands of labels represented by Merlin including many larger indies like Beggars and Koch have yet to make deals. MySpace Music has also not offered a d.i.y. sales or income solution for artists not affiliated with a label or distributor.
Former Facebook executive Owen Van Natta is now assuming CEO stripes at Playlist Inc., the controversial playlist creation and playback service. The company officially announced the development on Tuesday. Playlist (
