2. Independent Record Companies
Definition Major record label owns its own distribution
Independents do not
•Around since the 1940s & 50s
•Long history of signaling developments in popular music
(e.g. dance, reggae, hip-hop, punk etc)
•Often specialize in a single genre
•Run by enthusiasts or musicians
•Punk rock 70s era & do-it-yourself ethos saw emergence of
independent labels
3. Independent Record Companies
Term 'indie' unrelated to a specific genre of music
1970s saw establishment of independent distribution
companies e.g. Pinnacle and Spartan
Giving independent labels means of distribution without
involving the majors
1980s major labels had identified an opportunity to break
new acts via the indie chart-setting up subsidiary labels
that were financed by the majors but distributed via the
independent network
Offspring's 1994 album 'Smash' highest selling
independent record of all time 16 million copies
4. Independent Labels Disadvantages
• Independent labels often lack strong, international
distribution networks that help get products to stores
• Often lack the capital of major labels that are part of
international media corporations
• Often less powerful - not as established - often do not
have the same leverage and access to radio, retail, and
the media as majors
• Disadvantages above make it the responsibility of
independent labels to seek out or develop new ways of
promoting records
5. Independent Labels Advantages
• Independent labels develop more sustainable business
models & artist rosters
• Corporate major labels run by execs who are often distant
from the creators of the music
• Independent labels are run by just a few people who sign,
develop, and work closely with each artist
• More direct path from the creation of the music to
promotion
6. Independent Label Advantages cont.
• Maintains the artist’s original intended vision,
more authentic
• Independent record labels are run as small
business, with few employees and lower
expenses
• Structured to make more money with fewer
record sales
• Lower expectations for record sales allow
independent labels to take more chances on
the types of artists they sign, bringing greater
musical diversity to consumers
7. Advantages cont.
• Independent labels often have a particular sound, and
fans of artists signed to a certain label often trust it
• Consumer loyalty creates a built-in fan-base for many
independent labels
• Artists have the ability to succeed without the backing of
a major record label
• Studios are cheaper due to advancements in recording
technology
8. Indie Labels Advantages
• Marketing can be outsourced to powerful and effective
agencies
• Consumers move towards internet stores and digital music
• independent labels same access to these digital stores as
major labels
• Traditional distribution methods become less significant
