Music 4.5 The Future of The Record Label Artist & Label – a changing relationship The landscape of music consumption is changing with the opportunity for a more engaged and direct artist-fan relationship. How does this affect the artist-label relationship and the role of the record label for the artist? What is the indie approach? Paul Pacifico, CEO, AIM

1. Label of The Future
A Question of Fundamental Market Restructure

2. Many Old World Reasons to Sign a Deal Are Gone
Restricted access to Music Production Facilities
Restricted Access to Product Production Facilities
Restricted Access to Distribution
Restricted Access to Media / Taste Makers

3. So What is Left?
Value-Add services driven by Intellectual Capital vs
Industrialised Process
A&R
Cost Controls / Budgeting
Promotion
Marketing
Strategy for Growth
Knowledge of Live Sector
Knowledge and Experience of the new Mechanics of the Market
The International Dimension
Contacts and Relationships

4. The Key Question:
Are these services that should be delivered by
Labels
Managers
Publishers
Promoters
etc

5. The Key Answer:
It Doesn't Matter

6. The Market is segmenting Horizontally rather than Vertically
The Old definitions and limitations of being a ‘label’ or a
‘publisher’ or a ‘promoter’ etc are breaking down and exciting
multi-faceted Music Businesses with innovative approaches
and new business models are emerging
The interesting question for me is around the division between
the commercial entrepreneur base in music and the large
corporate ecosystem

7. As Artists’ Businesses Grow, they start to build a team
The key relationship is the partnership between the creative
and the commercial entrepreneur
That relationship feels like it is becoming better balanced in
the New World
Fair Digital Deals Declaration V.2
There is an increasing need for a bespoke, artist-centric approach

8. The new models will become more sophisticated
We will move from Label Services to Artist Services
Stratification of
Back Office Functions
Middle Office Functions
Front Office Functions

9. Ultimately I am very optimistic
The Independent Sector is responding quickly and effectively
But Challenges Remain:
Evolving Landscape
Market Share Dominance
Hits vs Sustainable Careers
Sources of Finance
Access to Data

10. The Key Factor is that these challenges are shared in the
relationship between Artist and Independent Label with the
intention of building in partnership together