Year in Review: Independents

In 2008 there were a number of areas in which the focus turned to the role and place of independent labels and artists in the digital landscape.

Of significance was the continued concern over access by independents to terrestrial radio. In a survey conducted by A2IM, the American Association of Independent Musicians, 92% of respondents indicated that their relationship with terrestrial radio broadcasters remains unchanged since the investigation into Payola was conducted and voluntary agreements were entered into.[1] The continued lack of access to mainstream media creates significant impediments for independent artists.

In October 2008 the new MySpace Music service was launched in the United States but with the exception of content from The Orchard, there was no independent content on the site.[2] This was primarily due to disagreements regarding the remuneration of artists.[3] Major labels were given an equity stake in the music service however this was not forthcoming for independent artists.[4] Shortly after the launch IODA which represents over 50,000 artists and administers over 100,000 tracks signed on however to date there has been no agreement with other independent labels including more than 12,000 which are represented by Merlin. [5] Unsigned artists were also absent – while they remain able to upload their own music, there is no mechanism in place for them to receive compensation for the streaming of their tracks.[6]

IODA also warned member labels against entering into agreements with Imeem and LaLa in January 2008 because the terms that were being offered were significantly different to what was being offered to major label artists.[7]

A number of independent labels and artists are also seeking to bypass iTunes to sell music directly from artist websites as a way of both saving money and because of the failure of iTunes to feature independent artists.[8]

Merlin which began in January 2007 now has a membership of 12,000 record labels and is considered the most commercially significant group outside of the major record labels -arguably as large as EMI.[9] The organisation is designed to ensure that independent labels have the ability to negotiate terms and conditions for licenses in an easy way with the bargaining strength to ensure that independent artists are not faced with inequitable levels of remuneration.[10]

Collectively independent labels account for 27.5% of total music sales worldwide.[11]


[1] Future of Music Coalition, Payola and Indie Access to Commercial Airwaves (23 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/payola-and-indie-access-to-commercial.html> at 27 October 2008; Digital Music News, Independents: We Got Playlist & Payola Problems... (21 October 2008) <http://www.digitalmusicnews.com/stories/102008a2im> at 22 October 2008; Digital Music News, DeWolfe: MySpace Actively Talking to Independents (4 April 2008) <http://www.digitalmusicnews.com/stories/040308myspace2> at 8 April 2008
[2] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008; The Register, Poptastic MySpace Launches, without indies (26 September 2008) <http://www.theregister.co.uk/2008/09/26/myspace_music_launch/> at 5 October 2008; ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008; TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[3] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008
[4] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008; Digital Music News, Independent Equity Details Surface on MySpace Music (21 April 2008) <http://www.digitalmusicnews.com/stories/042008myspace> at 26 April 2008
[5] ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, MySpace Music Inks IODA; Million-Plus Independent Songs (23 October 2008) <http://www.digitalmusicnews.com/stories/102308ioda> at 24 October 2008
[6] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[7] Digital Music News, IODA Just Says No: Imeem, LaLa (16 January 2008) <http://www.digitalmusicnews.com/stories/011608ioda> at 20 Janaury 2008
[8] ArsTechnica, Indie labels bypass iTunes, give digital sales a shot (17 March 2008) <http://arstechnica.com/news.ars/post/20080317-indie-labels-bypass-itunes-give-digital-sales-a-shot.html> at 18 March 2008; WashingtonPost/Reuters/Billboard, Indie labels take e-commerce into their own hands (15 March 2008) <http://www.washingtonpost.com/wp-dyn/content/article/2008/03/15/AR2008031501795.html> at 18 March 2008; Digital Music News, Queen of Soul Leaving Arista, Independent Strategy Underway (6 February 2008) <http://www.digitalmusicnews.com/stories/020508franklin> at 19 February 2008
[9] Digital Music News, Merlin: We're Just as Big as EMI Music... (9 June 2008) <http://www.digitalmusicnews.com/stories/061108merlin> at 13 June 2008; ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008
[10] ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008
[11] ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008