MEDIA FORMAT: Indie Record Labels
Record companies and music publishers that are not under the control of the Big Four Record Labels are
considered to be independent, even if they are large corporations with complex structures. Some prefer to use the term
"Indie Label" to refer to those independent labels that adhere to an arbitrary, ill-defined criteria of corporate structure
and size, and some consider an "Indie Label" to be almost any label that releases non-mainstream music, regardless of its
corporate structure.
Indie Labels account for 18.87%
of the world music market in 2005:
18.13% Independent Labels
09.55% EMI
Group
15.00% Warner Music Group
25.61% Sony BMG Music Entertainment
31.71% Universal Music Group
Indie Labels are an alternative resource for artist/band CD distribution, artist development, merchandizing, tour
promotion and artist management and marketing.
The recording industry is in a rapid state of change. Mergers of traditional record companies
with Internet Services as well as new Internet marketing divisions within international entertainment conglomerates themselves
threaten their longstanding relationships with traditional retail record stores.
The compatibility of delivering music via the internet directly to computers and MP3 players is becoming the wave of
the future in album and single song distribution.
Independent recording artists are increasingly becoming more comfortable making new and non-traditional deals that
offer them more independent options that they would not get at traditional labels. For
artist/writers this technology revolution offers new opportunities to take charge of their own careers.
Indie labels provide artists with more control, independence and more rights than they would have with major record
labels. Many of the contract arrangements can be non-exclusive or are exclusive
for a short period of time. The artist also often retains ownership in the master
recordings without transfer of ownership.
Here is a list of Indie & Internet Record Company contract features:
1. Sharing of
sales income at 50/50 splits
2. Sharing of
a defined net profit
3. Advances for percentage of mechanical & performance royalties
4. ..
Exclusive
deals where percentages of advertising revenue is shared
5. .
Straight fee for creating artists URL and Web pages with
all sales going to artist
6.
Percentage of
sales revenue with content and pricing controlled by artist
7.
Fee to have artist or band’s material available for
download
8. .
Sharing revenue from subscription-based fees on number of
downloads
9.
Higher percentage to owners of masters for downloads
10.
More quality time and development money for artists than
traditional record labels
