3. One of Britain’s most successful independent labels Founded 1993 by Laurence Bell, who still runs the label Based in London with a US branch Roster includes Franz Ferdinand and Arctic Monkeys but mostly made up of unusual, less well-known artists Began 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 Bell What are the advantages and disadvantages of this vision for a business? Domino’s vision
6. http://www.xfm.co.uk/news/2008/the-domino-documentary When 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. Geographic Double Six Domino 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 money To gather case study material for the exam Learning Objective
9. Where does a record label’s money come from? Revenue
10.
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 structure For 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 logo Franz 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 publishing Recording Promotion & marketing Licensing (to film/TV/mobile) e.g. Universal Pictures Distribution e.g. Vivendi Distribution Retail/exhibition e.g. Virgin radio Hardware e.g. Sony DVD players
14. Mitigate = mimimise Record labels exist essentially to make money. How does this affect the choices they make in selecting artists and music? How do labels mitigate risk?
21. Domino has developed a website which allows audiences excellent access to Videos News Information about new releases and tour dates A monthly podcast – Dominocast A sales area – DominoMart – fans can buy music on vinyl, CD or MP3 Web presence
22. Domino has also made use of Web 2:0 The site is constantly updated and linked to the label’s presence on social networking sites: Facebook MySpace YouTube Twitter This 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 Outfit Franz Ferdinand Arctic Monkeys
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 release Myspace/Facebook pages UK and European tour Case Study: Archie Bronson Outfit
26. Case Study: Franz Ferdinand Production: Working with Xenomania on new releases Collaboration with a number of producers Promotion and licensing: Alice in Wonderland soundtrack Lady Dior advertising campaign International festivals/itunes festival Guitar Hero/NHL 05 video game UK, USA and international tours Airplay on national/international radio/MTV
27. Marketing the Music Someone 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
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 BROADCASTING Independent 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 2010 We 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 POWERPOINT Be ready to argue why you should represent the new artist (and why the other label should not!) next lesson. Homework Post 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 speech Step 3 Write your speech and assign roles / sections to speak. EVERYONE in your group must say something EVERYTHING you say must be true and accurate. Task
