This is the first of a two-part series on indie labels that was originally
commissioned by MIDEM for the 2011 edition of the music trade show. I thought
its content would still be of interest and relevant a few months after it was
initially published on the MIDEM blog in January 2011. In part two, we will hear from veterans of the indie sector.
Think of a music world
without Motown, Atlantic, Verve, Island, Elektra, Sire, Chrysalis, Virgin,
Rough Trade, Mute, Def Jam, 4AD, Sub Pop, ECM, World Circuit, Domino, Bella
Union, to name but a few…
These labels have all made a
significant mark in the popular culture of the 20th Century. They
are trusted brands. Their strong image was backed by impeccable artistic
credentials. Their heritage is huge, and (at least at their beginning) they all
abided by the independent ethos, financially and creatively.
One thing that links them
all is that they could all be identified to specific individuals –
Atlantic/Ahmet Ertegun, Verve/Norman Granz, Island/Chris Blackwell, ECM/Manfred
Eicher, Motown/Berry Gordy, Domino/Laurence Bell…
None of these entrepreneurs
who started some of the best-known labels of the past 50 years had millions in
the bank and a good understanding of how things worked. It all happened
organically.
After all, when Ahmet
Ertegun and Herb Abramson founded Atlantic Records in 1947, they did it with a
few thousand dollars borrowed from Ertegun’s dentist. In the early days, they
did everything from recording artists to manufacturing and shipping records,
not to mention billing. And they learned their trade this way. That they could
also spot and produce geniuses was a bonus too… Artistically, they first
focused on jazz and R&B before moving into mainstream rock.
In Detroit, Berry Gordy set
up his label in a house and tried to copy the car industry’s assembly line in
order to produce music at the most efficient cost. And it worked! Not least
because he had also assembled around him what was probably the most talented
generation of songwriters and musicians.
Across the Atlantic Ocean,
emulated by the advent of the 45rpm, Frenchman Eddie Barclay started to build
up what would become the most successful indie label in the country, attracting
talent such as Jacques Brel, Léo Ferré and Charles Aznavour.
In 1959, Chris Blackwell
started Island in Jamaica with a few pounds and lots of goodwill, until he got
his break with ‘My Boy Lollipop’, which allowed signing some of the most creative
artists of the times (Nick Drake, John Martyn, Roxy Music, Cat Stevens, Free, King Crimson, Traffic, and, of course, Bob Marley and U2).
Later, Terry Ellis and Chris Wright went on to set up
Chrysalis Records because nobody in the establishment would dare to sign the
acts they were representing.
Closer to us, the 70s
generation of Martin Mills (Beggars Banquet/4AD), Daniel Miller (Mute), and Geoff Travis
(Rough Trade) started their labels with no money and little knowledge of the
business, but with a fearless DIY mentality. There was also this eccentric Brit
named Richard Branson who started a mail order business, which morphed into
Virgin Records, and ended up with an airline company, courtesy of Mike
Oldfield’s ‘Tubular Bells’…
The hip hop/urban music era
saw the rise of likes of Russell Simmons (Def Jam), Sean Combs (Bad Boy
Entertainment), Tom Silverman (Tommy Boy), among others.
Altogether, these gifted and
talented executives – many of whom have been celebrated at Midem over the years
– created the music business as we know it. They nurtured some of the world’s
most popular artists. And if, unfortunately, most of these independent music
houses have now fallen into the major’s fold, and some have even stopped to
exist as imprints, their spirit is still alive.
But could the same success
stories be replicated today? Is there a new generation of entrepreneurs ready
to carry on the flag of independence? And under which conditions would these
executives approach the business? These questions will be at the heart of Midem
2011’s Indie Summit. A panel regrouping the founders of some of the most
creative new labels to have come up in the past few years will offer their
views on how they have made it.
To feed the debate, we have
asked a series of “elders”, who have all started independent labels at some
point I their career, to share their experiences. Their recommendations can be
read in full below, and we have tried to sum them by putting them into “The 10
Commandments” (or shall we say the 10 “rules of engagement”?) for aspiring
music entrepreneurs.
Our “elders” were:
Bob Frank, Merlin (USA)
Martin Goldschmidt, Cooking
Vinyl (UK)
Richard Gottehrer, The
Orchard (USA)
Michel Lambot, PIAS
(Belgium)
Korda Marshall, Infectious
Records (UK)
Martin Mills, Beggars Group
(UK)
Simon Raymonde, Bella Union
(UK)
Tim Renner, Motor FM
(Germany)
Dan Storper, Putumayo (USA)
1. Just do it!
If you feel like doing it,
just go for it! Do not find reasons not to do it, for you will find a million.
As Tim Renner from Motor FM states, do it if you feel you have a mission, a
passion for it. For Martin Goldschmidt, managing director of UK indie group
Cooking Vinyl, is goes down to one question: what are your motives? “Why are
you doing it?” he asks. “If you want to get rich, forget it, get a job in a
bank. If you want to hang out with stars, wrong answer. If you want to
turn people on to music you love and work with musicians you are passionate
about then welcome to the club.”
2. Be passionate
All the people surveyed for
this piece agree that passion will be the most important driver for anyone
willing to build a business in the music sector. “You have to have passion,
passion for the business, passion for talent. Don’t think you are in it to make
money,” offers The Orchard’s co-founder Richard Gottehrer. Adds Korda Marshall,
co-founder of Infectious Records, “You have to have passion, a love of music and
a lot of self-belief. If you are simply trying to set up a business, don’t
start.”
3. A lil’ bit of money
helps, but don’t count on it
Long are gone the days when
an ex-major label executive could start an indie label with a staff of 15 in
lavish offices before even releasing one single (we have names!). Most indie
labels were started with limited funds. Ahmet Ertegun started Atlantic with
$10,000 he borrowed. Seymour Stein and Gottehrer each put in the pot $10,000 to
start Sire. Tom Silverman borrowed money from his parents. Having a little bit
of capital (from friends, business relations, even venture capitalists) helps
starting, but, as PIAS co-founder Michael Lambot says, it can also put a lot of
pressure on you. “Don't be in a rush to be the next Interscope,” says Bob
Franck, who ran US indie Koch. “Start small and grow organically at first.”
4. It’s all about A&R
Spotting the right talent is
an art in itself. That’s where time, resources and energy have to be
channelled. “You have to chose artists that you love and give them the best of
you,” says The Orchard’s Gottehrer. “You have to have talent to recognise
talent and help artist with a direction.” Infectious’ Marshall goes as far as
saying you should only sign artists “you would mortgage your house for. You
also should look at A&R in terms of space. You cannot compete with majors
because you cannot afford it, so find your own space.” Motor FM’s Renner adds,
“Don’t go for the “fast hit” if you don’t have the money and manpower to
compete with the majors.”
5. But it is also a
business, so control your costs
“If you ignore the money and
the business side you won't survive,” snaps Cooking Vinyl’s Goldschmidt, who
adds, “You have to get the balance right between music and business. The music
bit is easy. If your music is great it will get noticed, if not you will
waste your time. The business side takes a lot of learning and you need to
get it right.” For Infectious’ Marshall, success is all in the manner you
“manage and control your expenses”. “The secret of making money is not
spending,” he says. To which Gottehrer adds, “You have to manage expenses and
expectations.”
6. Be different
Chose an angle, a niche that
makes you stand out. Ex-Cocteau Twins turned label manager Simon Raymonde,
explains, “I can't see the point in having a label that's LIKE someone else's,
or that signs bands that someone else would. I don't compete with other labels
for bands and don't wish to.” Indeed, all the great labels had something that
made them different from the competition, which Bob Franck sums up by saying,
“Do not try and be all things to all people.”
7. Chose who you work
with
It’s a people’s business and
who you work with is paramount. Work with like-minded people. For Bob Frank,
“Never work with people who don't bring the same joy, love and passion to the
label that you do”. Bella Union’s Raymonde is blunter, “Working with dicks is a
real pain and if you work with people you like, at least if the record doesn't
sell, you KNOW they're nice and they did their best.”
8. Promote your music and
your artists on all platforms
In the 1980s, Island records
made a poster, which was sent to all the people working with the label. It
featured a beautiful drawing of an island, with the strap line, “Something
terrible happens if you don’t promote…” and in very small font size, at the
bottom of the poster came just one word: “Nothing!”. In the world of music it
is all about reaching out. And today, reaching out means using all the tools at
your disposal. As Putumayo’s Dan Storper puts it, “Music unfortunately doesn’t
usually sell itself. Make people aware via promotion, marketing, social
networking, etc. Build word of mouth.” And, as Beggars Group chairman/CEO
Martin Mills, explains, “The most important thing is to spread the word: if the
music is wonderful and connects everything else will follow.”
9. It’s not simply about
recordings
Running a label is about
A&R but includes activities in management, financing recordings, pitching
to music supervisors, finding good agents, hiring a PR company, working out
licensing deals, etc. In the 21st Century, it is advised not to
think simply in terms of recording. PIAS co-founder Michel Lambot says labels
have to be more than labels and be “music houses”. Adds Lambot, “Try to provide
your artists with the best environment for them to thrive and develop. You have
to look at all aspects of their career and also get revenues streams from all
aspects by getting access to all rights.” Korda Marshall agrees, “It is
important to have a bundle of rights and not simply the rights to the master
recordings.” Recordings have a value in itself, but, building a music company
is about building a brand.
10. Stay focused and
accept there will be mistakes along the way
You cannot be in places at
all times, so chose your battles and stay focused on your game plan. As
Putumayo’s Storper puts it, “Don’t spread yourself too thin.” And in the
process, you will make mistakes, but that’s part of the plan too, says Beggars’
Mills, “Music is an imperfect industry, you have to take risks and that means
you'll make mistakes – accept them and learn from them.” Bella Union’s Raymonde
adds, “I think mistakes are good to make as long as they don't affect the
bands!”
10 Bis. Be lucky and have fun!
If you found this post informative, you might be interested in the following stories:
Ten points about copyright from MIDEM 2012
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