"Label Services' Ascent in the Music Industry: Different Contracts for Different Musicians"
In a significant shift for the music industry, the artist and label services sector is empowering artists to take control of their careers like never before. This transformation, driven by companies such as SoundOn, The Orchard UK, Believe, Virgin Music Group, Create Music Group, IDOL, Fuga, and Downtown, is providing artists with unprecedented flexibility, transparency, and autonomy.
TikTok launched its all-in-one platform for music marketing and distribution, SoundOn, in 2022, marking a new chapter in this evolution.
Nichal Sethi, Head of SoundOn EMEA, describes SoundOn as a valuable resource for artists whose audience is primarily on TikTok or those looking to grow their audience on the platform. The platform has already made chart impacts with tracks like Pink Lemonade (Str8 Reload) by LeoStayTrill & Mr Reload It, Abracadabra by Wes Nelson feat. Craig David, and Show Me Love by WizTheMC and Bees & Honey.
The Orchard UK, a back-to-back Music Week Award winner, boasts an impressive client list that includes Big Brother Recordings, The Other Songs Records, Boy Better Know, Xtra Mile Recordings, Blossoms, Jack Savoretti, and Raye. Roo Currier, UK general manager of IDOL, an independent digital distributor, stated that IDOL only works with music they are passionate about and believe they can add value to. IDOL's roster includes labels such as City Slang, Erased Tapes, Fire Records, Full Time Hobby, Glitterbeat, Gondwana, Hassle Records, and Kitsuné.
The empowerment offered by the artist and label services sector is most evident in the areas of budget control, release scheduling, artistic direction, royalty and income transparency, customised deals, and administrative support.
Budget control is a key aspect of these new arrangements. Many artist and label service agreements allow artists greater oversight on their recording budgets. This protection from financial decisions tied to music production is crucial for artists, ensuring they maintain control over their financial decisions.
Release scheduling is another area where artists are gaining freedom. Artist services typically provide tools and collaboration without dictating strict release timetables, enabling artists to plan and execute releases on their own timetable.
Artistic direction is also no longer dominated by labels. By not imposing control over artistic choices or by negotiating clear rights in agreements, these services empower artists to retain creative freedom. Some artists choose publishing and administration deals that maximise independence over their songs, rejecting traditional publishing contracts that restrict control.
Royalty and income transparency is another critical factor. Services focused on clear management of artist royalties, linked to sales, streaming, and licensing revenue, help artists understand and control royalty income, an important budget component.
Customized deals and admin support are also a hallmark of these services. Artist services often tailor deals around artist needs, including choices about advances, recoupment, and income sources. These arrangements can include administration support for licensing, publishing, and royalties to help artists maintain overall control while leveraging label expertise.
Vanessa Bosåen, president of Universal Music Group's global label services and distribution division Virgin Music Group, emphasised that trust, relationship, and communication are the most important factors in the success of a partnership. Jasmine Bodkin, VP label management at The Orchard UK, stated that clear, strong, and consistent two-way communication is essential to optimize reach and influence in the congested market.
Believe's services sector has flourished because artists want to own their masters, understand their data, and build a career on their own terms. Liz Northeast, Fuga's SVP, EMEA, stated that they are a service provider, working in service and partnership with their clients, with a goal to add value that clients may not be able to find on their own.
Create Music Group's acquisition of !K7 has given them access to significant new funding and advanced technology platforms, allowing for growth on their own terms. The August edition of Music Week features a special report on the booming artist and label services sector, highlighting its continued growth and impact on the music industry.
In conclusion, the artist and label services sector is providing artists with the tools and flexibility they need to take control of their careers, maintain their artistic vision, and make informed financial decisions. As these services continue to evolve and grow, we can expect to see even more artists taking advantage of this empowering shift in the music industry.
In light of TikTok's launch of SoundOn, a platform for music marketing and distribution, the music sector is experiencing a revolutionary change. This evolution, driven by companies such as SoundOn, The Orchard UK, Believe, Virgin Music Group, Create Music Group, IDOL, Fuga, and Downtown, offers artists greater control over their budgets (Budget control) and release schedules (Release scheduling). Furthermore, they enable artists to maintain creative freedom (Artistic direction) and gain transparency in royalty and income matters (Royalty and income transparency), while also providing customized deals and administrative support (Customized deals and admin support).
