- Domino Records is one of Britain's most successful independent record labels, founded in 1993 and based in London. - While it helped launch bands like Franz Ferdinand and Arctic Monkeys, its roster mostly consists of less well-known, unusual artists. - The label is run according to the vision of its founder, Laurence Bell, which emphasizes a passion for music and a DIY, artist-focused approach rather than the profit-driven model of major labels.

1. Domino RecordsAn independent label case study

3. One of Britain’s most successful independent labelsFounded 1993 by Laurence Bell, who still runs the labelBased in London with a US branchRoster includes Franz Ferdinand and Arctic Monkeys but mostly made up of unusual, less well-known artistsBegan by licensing US bands to release in the UK – now releases both UK and US artists. Key facts

4. “A passion for music, a back to basics approach… something home-made that’s put together with love.” Laurence BellWhat are the advantages and disadvantages of this vision for a business? Domino’s vision

5. http://www.youtube.com/watch?v=n9I8khSLf4oInterview with Laurence Bell

6. http://www.xfm.co.uk/news/2008/the-domino-documentaryWhen was Domino formed?What is the ideology behind the label? Why did Lawrence Bell set up the label?How is their attitude towards artists different from major labels?Why don’t/can’t majors behave like this?How does Domino find new artists?Documentary feature

7. GeographicDouble SixDomino cannot afford to sign an artist if they estimate that they will sell fewer than 5000 albums. Their two imprints (subsidiary labels) were set up to cater for minority interest artists who are likely to sell to a smaller, niche audience.Domino imprints

8. To understand how an Independent Record Label makes moneyTo gather case study material for the examLearning Objective

9. Where does a record label’s money come from?Revenue

10. A record label’s revenue will come from various sources including: - Record sales including downloads- Broadcast income (payment from radio/TV broadcast)- Licensing - to other labels for compilations etc. - Secondary licensing – films/TV/adverts etc.International sales and licensingThe success of groups like Franz Ferdinand means that Domino can invest in more new artists with less mainstream appealRevenue

11. Horizontally integrated company= uses other companies to handle different aspects of the production, marketing, promotion and distribution as it does not own these facilities itself.This is a very traditional structureFor instance:[PIAS] UK Distribution handles the physical manufacture of the music (CDs and vinyl) and the distribution to retailers.Domino: Company Structure

12. Epic (subsidiary of Sony BMG) releases the group’s music in the USA.In 2006, Sony issued a limited edition MP3 player with the band’s logoFranz Ferdinand international

13. Major labels operate a newer vertically integrated business model, where the owner has acquired companies which play different roles in the process of creating, promoting and selling music.How do the majors differ?Song writing and publishingRecordingPromotion & marketingLicensing (to film/TV/mobile) e.g. Universal PicturesDistribution e.g. Vivendi DistributionRetail/exhibitione.g. Virgin radioHardware e.g. Sony DVD players

14. Mitigate = mimimiseRecord labels exist essentially to make money.How does this affect the choices they make in selecting artists and music?How do labels mitigate risk?

15. Domino has to make an effort to exploit the opportunities provided by the internet:http://www.dominorecordco.com/Downloads

16. Dominocast

17. Domino Mart

18. Domino Player

19. Video and promotional content

20. Mailing listWeb presence

21. Domino has developed a website which allows audiences excellent access toVideosNewsInformation about new releases and tour datesA monthly podcast – DominocastA sales area – DominoMart – fans can buy music on vinyl, CD or MP3Web presence

22. Domino has also made use of Web 2:0The site is constantly updated and linked to the label’s presence on social networking sites:FacebookMySpaceYouTubeTwitterThis makes it easier to find, sample and buy the music.Web presence: Domino is actively moving with its target audience

23. Case Studies (30 marks)Archie Bronson OutfitFranz FerdinandArctic Monkeys

24. Archie Bronson Outfit

25. “Coconut, the new Archie Bronson Outfit album, is a record full of deep riffs, spaced loops and the sound of a band revelling in both their individuality and intensity.”Promotion for Coconut: Free single download New video on website each day leading up to releaseMyspace/Facebook pagesUK and European tourCase Study: Archie Bronson Outfit

26. Case Study: Franz FerdinandProduction: Working with Xenomania on new releasesCollaboration with a number of producersPromotion and licensing: Alice in Wonderland soundtrackLady Dior advertising campaignInternational festivals/itunes festivalGuitar Hero/NHL 05 video gameUK, USA and international toursAirplay on national/international radio/MTV

27. Marketing the MusicSomeone close to the band released unfinished versions of their songs onto social networking sites like MySpace. Fans were already familiar with the group's work when they released their debut single, I Bet You Look Good on the Dancefloor, and album Whatever People Say I Am, That's What I'm Not. The album and single went straight to number one, again released on an independent label, Domino.Case study: Arctic Monkeys

28. Definition:Viral marketing and viral advertising refer to marketing techniques that use social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) It can be word-of-mouth delivered or enhanced by the network effects of the Internet.Viral Marketing

29. Viral promotions may take the form of:video clips

30. interactive Flash games

31. Advertgames

32. Ebooks

33. Images

34. text messages. The basic form of viral marketing is not infinitely sustainable.Viral Marketing

35. The goal of marketers interested in creating successful viral marketing programs is to: - identify individuals with high Social Networking Potential (SNP) - create Viral Messages that appeal to this segment of the population - to gain the interest of an audience that have a high probability of being taken by another competitor.What are the advantages?

36. How does vertical integration help major labels to maximise their revenue from artists?How might independent labels with a horizontally integrated approach be at a disadvantage?Maximising revenue

37. RADIO BROADCASTINGIndependent Labels like Domino rely on Radio Stations such as BBC 6 to distribute their artist’s music.So what happens when these types of radio stations close down? Distribution of Music

38. Domino Recording Co. Ltd press release March 2010We would like to make it clear that we are extremely concerned by BBC plans to cut BBC 6 Music from its schedule. BBC 6 Music is an extremely important and rare outlet for much of the music that we release on Domino. For many of us who grew up listening to, and learning about music from John Peel, we've come to appreciate this station of mostly free playlists, diversity, new things, old things, the unexpected. Indeed we'd argue that the BBC should be making this fantastic station more readily available via the masses of unused FM bandwidth.Domino and BBC 6 Music:

39. Why is 6 Music valuable to labels like Domino?How might the major labels find it easier to place their artists on radio playlists?What challenges does an independent label face when promoting its artists?Independents & Promotion

40. Use the worksheet to CREATE YOUR POWERPOINTBe ready to argue why you should represent the new artist (and why the other label should not!) next lesson.HomeworkPost your research onto your blog for next Tuesday. Be prepared to explain why you should represent the artist for Tuesday’s lesson.Homework for TUESDAY

41. In groups of 4 you will adopt the role of a music institution. Some will be a conglomerate (Universal) and some will be an independent music company (Domino).A new artist called ‘@ for Ampersand’ has requested that you produce and distribute the music for them. In your group you will have 5 mins to argue that you are the best institution for the job.Step 1 Research your institution (notes in lessons)Step 2 Plan your speechStep 3 Write your speech and assign roles / sections to speak.EVERYONE in your group must say somethingEVERYTHING you say must be true and accurate.Task

42. Domino has to make an effort to exploit the opportunities provided by the internet:http://www.dominorecordco.com/Downloads

43. Dominocast

44. Domino Mart

45. Domino Player

46. Video and promotional content

47. Mailing listWeb presence