Basis of Indie's
However small a label is it will have to do these basic jobs…
• - A&R,
• - production,
• - distribution,
• - marketing.
Indies do not have the power of the Big Four –
- Convergence of Ownership
- Vertical Integration
- Economies of Scale
- Horizontal Integration
- Market Domination
- Multinational Conglomerates
Their ethos is for the music, unlike the majors is solely for the profit.
Contrast to Majors
- Small. They do not have the advantages of economies of scale
- But they are independent and free
- Formed by people who are passionate about music. (Rough Trade)
- Although they have to be business savvy to survive they are more focused on
the music than the profit. More likely to take risks…
- Indies cannot afford to compete with the majors so they often specialise in a particular genre, aimed at a specific target or niche audience.
- Indie music is more likely to be from the long tail end of Chris Anderson’s Long Tail theory.
- (Although both Major and Independents will have long tail models within their own organisations).
- An indie will know its niche or target audience well because the owners share their taste.
Music Industry Is In Crisis
- With less CD’s sold and retail stores like Virgin and Zavvi going out of business.
- With the arrival of the broadband and illegal downloading. (Pirate Bay, LimeWire)
Advantages Of Independents
- However it can be argued that the independents are better placed to react to this than the Majors.
- They can react quickly and they have more of a connection with the fans.
- The internet has created more of a level playing field.
- Labels can be virtual making it easier than ever to do it yourself.