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The Freemium Quandry

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Music Business Worldwide:

According to a new report from the Wall Street Journal, Spotify is ‘caving in’ to demands for certain artists to be able to keep their records off Spotify’s free tier.



The newspaper says: “In private talks, Spotify has told music executives that it is planning to allow some artists to start releasing albums only to its 20 million-plus subscribers, who pay $10 a month, while withholding the music temporarily from Spotify’s 80 million free users.”



MBW understands that the latest internal Spotify figures show that the platform now has close to 100m active users, and 25m+ paying customers around the world.



Atom Factory’s Troy Carter via Digital Music News:

There have been times where I had to get on the phone with really big managers, and — who have really big clients, and tell them what the downside was for them leaving their product off of Spotify. All of the music is still available on YouTube for free. It’s still available on the piracy services for free, so you’re missing out on a big audience and you’re missing out on a revenue stream.



I don’t know if Spotify needs to get over the Taylor Swift problem, as much as it is… people have to see the future. Because free already exists, it’s a flawed argument when you say ‘I don’t want my music on any service that offers free,’ when free already exists.



Update: Music Business Worldwide:

Those weeping for the death of Spotify’s ad-supported bonanza are forgetting something: it’s only for a quirk of recent history that freemium was ever allowed to bloom in the first place.



As sites such as The Pirate Bay (not to mention YouTube) were left unfettered by international lawmakers, {Spotify founder Daniel} Ek’s argument in the lead up to Spotify’s 2008 launch – basically, hi guys, nice to meet you, we’re your best worst option – was cast-iron. This year, despite all of Spotify’s success, that contention has started to look a little more fragile.



If Ek’s offer of all music, all free, all the time was forever destined to be quashed, you have to say he’s made the most of it. By ‘rescuing’ an industry plunged into paranoia and desperation by piracy, Spotify has raced to a near-100m user base (and an $8bn+ pre-IPO valuation) with what hindsight may prove was a once-in-a-generation freedom to dice with price.

Sarah Records And The Qualities Of An Enduring Label

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An excellent article from London In Stereo on the once maligned (by some) and now revered Sarah Records:

In the current era of Bandcamp, everyone has a fighting chance (in theory at least) of taking on the big players. But none of that existed when two people – Clare Wadd and Matt Haynes – operating out of the basement of a terraced house in Bristol (45 Upper Belgrave Road – immortalised in former signing The Hit Parade’s poignant farewell note, ‘The House Of Sarah‘. They’d later set up shop in another house on Gwilliam Street) graduated from fanzine writers to label bosses in 1987 and never looked back. Over 100 carefully-curated releases and with a combination of guile and determination they amassed coverage and a fanbase that had the majors at once scratching their heads in disbelief and tearing their hair out out of annoyance. Moreover, Wadd and Haynes showed you could do it without existing in a manic, drug-fuelled frenzy like Creation’s Alan McGee or being a well-connected media wizz like Factory’s Tony Wilson. It’s a story of doing things your own way, sticking to your principles and overcoming the odds.



Much of the article is devoted to a fascinating interview with label co-founder Clare Wadd:

“There are pretty much three ways a record label can end – put out increasingly duff records and fizzle out; get bought; or go bust – we were always very clear that our choice was none of the above, which meant that we had to find a different way. I still think it makes us pretty unique, and I really believe that the end was as important as the beginning, the last ten records as important as the first ten etc.”



“A couple of people have used the “curatorial” word recently – well it’s used in the film – but that’s certainly never the way we thought of it. It was all about pop music, pop art statements, not doing what you’re supposed to do, not turning into a business that does what it does because that’s what it does. Neither of us is a collector, and we always rather enjoyed poking fun at the people who are.”



I’m always into histories of independent record labels and the qualities that make for a ‘classic imprint’ so I read about Sarah Records with much interest. There’s a lot to be learned from the philosophy of these labels of yore. In this age when starting a label is as easy as logging onto SoundCloud the spirit of creative statement-making and a long ambitious vision seem to have gotten lost.

What can we learn from Sarah Records and this article? These might be some of the qualities that helped make them a label of renown:

Develop and Stick to a Philosophy. I’m not expecting you to be an indie-Socrates, but it would be nice to have a philosophy as well as guidelines set by an outlook or world view. With Sarah, the founders were motivated by regard for anti-capitalism and feminism which, though hardly apparent in their releases, subtly shaped how they presented themselves and who they would sign. A guiding philosophy can be a thread that glues it all together. It also makes for a better story than “I started a label ’cause I wanted to put out some good music.”
Create a Community. A label that serves its fans will prosper over one that simply markets. Your label should be a club house … not everyone is invited but those who are inside are having a blast and don’t want to leave. Fans should communicate with each other and with you, and your label provides the avenue. Each release serves as marching orders for your army and should be treated that way.
Be Indifferent to the Press. You have such faith in what you’re doing that bad reviews don’t matter and could be considered a badge of honor. You’re just ahead of your time, anyway, and they’ll eventually come around. But, who needs press when you’ve got such a diehard community of label devotees? They’re the ones spreading the word without axes to grind or agendas to fill and deserve the focus of your label’s energy.
Have a Strong Localized Identity. The classic labels with the strongest personalities exist almost as homages to the cities they sprung out of. Where would Factory Records be without Manchester? Sub Pop without Seattle? Trax without Chicago? Sarah Records was deeply tied to Bristol, right down to cover art based on city scenes and mass transit.
Consider Your Legacy. Embrace a long view. Each release will represent your label forever, so it’s best not to skimp on those early releases. If you can’t afford proper mastering, nice cover art, or are tempted to put out your buddy’s song even though it’s just kinda so-so, you might want to put your label ambitions on hold. If you have any longevity (and you should aspire to) then those short-sighted missteps will eventually haunt you.

Putting out great releases that you are unconditionally in love with helps, too, but that should really be a given.

This article also alerted me to My Secret World, a documentary on Sarah Records. Here’s the trailer:

The First New Vinyl Pressing Machine In Thirty Years

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Digital Music News:

German-based company Newbilt Machinery GmbH & Co. is now shipping the first, newly-manufactured vinyl pressing machine in more than 30 years. According to details from Plastics News (PN), Newbilt has partnered with Connecticut-based Record Products of America, a company specialized in creating vinyl molds, with prices starting at $100,000.



The Newbit machine could seriously ease vinyl production deals, and spark a new surge in vinyl growth. “The new Newbilt vinyl record press machines are rolling off the assembly line now,” the company declared in a recently-mailed invite to their Alsdorf-based manufacturing facility.



The Newbilt manufacturing philosophy is to essentially an update on an old n’ reliable workhorse design with a variety of modern-day upgrades, including an electronic control system and a hydraulic power supply. “Newbilt is based upon historically proven designs that work,” the company explains. “The antiquated electronic, hydraulic and control systems have been replaced with up-to-date ones to vastly improve productivity and reliability.”

Vinyl Sales May Be Rising, But Have You Seen Who’s Buying It?

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Bill Brewster for The Guardian:

The demographic of the average vinyl buyer is very clear. It’s a middle-aged man, possibly bearded (OK, definitely bearded); kids have probably left home, no longer on speaking terms with wife, spare bedroom has become a shrine to his teenage love: the Floyd (their album The Endless River was the best-selling vinyl LP in 2014). Essentially it’s me.



Vinyl will never again reach the 1970s and 80s heyday. Having reached a nadir in 2007, when vinyl album sales slumped to 205,292, last year they topped 1m. The predictions for 2015 suggest double that. It’s now the craft beer of music formats. But just as craft beer is not the answer to the alarming closure rate of public houses, neither will vinyl save the music industry. It will survive thanks to the network of enthusiastic collectors, indie record labels and DJs – but no thanks to any input from the major labels.



The problem the indies face is that they are being crowded out of the marketplace by the enthusiastic entry of companies like Universal Music Group who are said to have reissued 1,500 different titles on vinyl this year – most of which could be picked up in a charity store for pennies.

Seventy-Nine Years Ago Today: Robert Johnson In The Studio

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On This Diety:

Seventy-nine years ago today, the legendary bluesman, Robert Johnson, made his recording debut in room 414 of the Gunter Hotel in San Antonio, Texas – one of only two recording sessions he would make in his short life, but whose sounds would ignite the entire post-war world …


Radio Diaries:

November 23, 1936 was a good day for recorded music. Two men – an ocean apart – sat before a microphone and began to play. One was a cello prodigy who had performed for the Queen of Spain; the other played guitar and was a regular in the juke joints of the Mississippi Delta.


Listen to this episode of the always excellent Radio Diaries:

Advice For Budding Label Managers

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Josh Rosenthal, Grammy-nominated producer and founder of the Tompkins Square imprint, has a few opinions about what it takes to run a label.

I don’t like hiring publicists because I like driving the narrative, having my own relationships, and I like to save money. I’m not convinced that I’ll get incrementally more press by hiring someone. Plus there are very few press hits that actually move the needle. Work your consumer email list. If your music is any good, certain outlets will embrace it without a middleman. Social media is effective at spreading terrorist propaganda. For music, not so much. There’s too much chatter, nothing sticks. Is it helpful? Yes. But if you’re relying on it, that’s really sad.



Music content will be owned by technology companies eventually. There’s already this morphing of digital services and the major content holders, which are buying stakes in said services. Forget the delivery method, you can’t control that broadly. Keep up with developments in technology, but don’t let them guide your creative principles. If you can’t make money using the present day delivery systems, innovate, or go do something else. Old world constructs made musicians and labels feel entitled to reliable income, but that doesn’t mean it will be that way going forward.


These are excerpts from Rosenthal’s new book The Record Store Of The Mind, which seems to be an interesting read. Check out more of his – sometimes serious / sometimes not so much – thoughts on label management at The Vinyl Factory.

8D Projects: JJ Bull – “121 Miles” In Video For Burton Snowboards

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The emotional instrumental to JJ Bull’s “121 Miles” is used in this great Burton Snowboards video, licensed through 8DSync. Professional boarder Kelly Clark talks about her preferred boards and gear as Bull’s music sets a nostalgic-then-uplifting mood. JJ Bull is a folk-based artist from Scotland, and we love his distinctive and evocative style … be sure to check out more of his music on our 8DSync site.

YouTube’s Music App Could Rule All Streaming Services

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Wired:

YouTube’s audience is unique. They love to engage. They watch, like, and share. They make remixes, covers, lyrics clips, and response videos. And they do this for everything that’s already part of the YouTube collection, including official music videos, fan videos, and concert footage.



Now, YouTube is taking this massive corpus, mixing in some neat new features, and opening it up to everyone as a standalone app with a clear focus on just the music. Today, the company is launching its first official standalone music app called, well, YouTube Music.



My favorite feature of all is something called the offline mixtape. You determine how much of your phone’s data you’re willing to spare for songs, pick the audio quality, and let the app make you a playlist. It’s a lot like Spotify’s excellent Discover feature, except it’s refreshed daily, not weekly. The offline mixtape is another exclusive for YouTube Red subscribers.


The manner that Google has been able to develop and expand YouTube is remarkable. The YouTube that they acquired in 2006 is still recognizable today, but its present culture and varied uses of the service (such as this music focus) would be alien then. I’m certainly interested in the ‘offline mixtape’ and what YouTube does with it, as well as the integration of user generated content. Some things need to be solved … the way that YouTube presents its auto-generated music ‘videos’ is a bit clunky (here’s an example) and I’m curious how that will translate to the YouTube Music app. And there’s also the familiar issue of YouTube’s fuzzy transparency with how music creators are getting paid.

Empire Building: Vinyl Edition

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The Dallas Morning News:

[Josey Records managing partners Waric] Cameron and [Luke] Sardello say they approached [vinyl pressing plant owner Stan] Getz about buying A&R in July. They’d known him for years, having run dance-music labels of their own in the mid-1990s; like every local label, they had to get their records pressed at A&R, especially since the CD essentially killed the vinyl industry by the early 1990s and the nearest facility is now in faraway Salina, Kansas.

As recently as five years ago, buying a record-pressing facility might have been considered a dreadful investment unless you also had a time machine to go with it. Yet sales of records continue to climb: According to figures provided by the Recording Industry Association of America, more than 13 million LPs were sold in the U.S. alone in 2014. Numbers haven’t been that high since 1990.

“The business of vinyl is an old business model, and it’s the one that has survived everything,” Sardello says. “Vinyl has survived streaming, and not only has it survived, it’s thrived. It’s up 40 percent each year. So what else is there to detract from it? It’s never been easier to access music, and yet vinyl is as strong as it’s been for the last 25 years.”

At the same time, they will begin opening other Josey Records stores: Cameron says he wants to have six to 10 more outlets in the next two years in “major metropolitan areas,” including San Antonio.

“The thought was always vertical integration,” says Sardello, “We started thinking about bands. We started thinking about a label. We started thinking about a studio. We started thinking about more stores and how we can work with bands and labels and go from pressing your records to distributing our records to putting them in our stores to sending your band on a store tour.”

Kudos to these guys, who I’d met on and off back in my DJ’ing days. The lede buried in the main story, but that I highlight above, is the plan to eventually cover the manufacturing, distribution, and retail stages of releases under the company operation. This is the strategy major labels used to dominate in their heyday, so it’s interesting to see an independent upstart take on similar goals. Of course the elephant in the room is that today’s ‘physical product’ climate is much different (despite comparisons), and the majors themselves no longer follow this process – acquiring equity in streaming services, in hopes to somewhat replicate the traditional food chain, seems to be the current major label modus operandi. So it’s a gusty move to pin such high aspirations on a format with an unpredictable shelf-life … vinyl’s extended perseverance is an optimist’s hope. But, as I join in optimistically rooting for vinyl, I’m also rooting for Josey, and we certainly need more gutsy maneuvers like this in the independent music biz. Rock on.