Tracing The Footsteps Of The Record Industry

This blog is an assignment for a USC music industry course titled, The Music Industry, Broadcasting, And The Internet. The focus of this blog will be the record industry and problems within it.

Tuesday, February 6, 2007

A Growing Family

Look out for a new addition to the family. Merlin will soon be added as the “fifth major” major in the music industry. So what is Merlin? It is an agency made up of international independent labels that have joined together to further promote their artists’ music through online music services. As it is, according to BBC News, independent labels make up 80% of new releases, yet only make 30% of the revenues. This is most likely due to an inability to get a large audience to take notice of these releases. With Merlin, independent labels will get their content placed on multiple online music stores, allowing for further promotion of their artists and music. Merlin will represent all of its independent labels when it goes to make deals with digital music stores. This makes negotiations much easier, since rather than dealing will multiple small labels individually, the download stores can make just one deal.

Having more content from indie labels on online music stores is good news for customers. This generation counts on the Internet to introduce new music, and with this deal, customers will further broaden their musical tastes. This means more promotion for upcoming artists also, who are often signed to indie labels before moving on to major labels. Could it be possible, if Merlin does take a position as the “fifth major,” that perhaps artists will not want to move on to major labels, and will want to stick with their indie label? With Merlin, promotion of artists may not be as large of a task as it was before. A customer, who is unfamiliar with an indie label’s band, will not have to buy an entire CD to determine whether he or she likes the band. It will now be possible to download one song, and if they customer likes the song, he or she can buy the CD. Many online music stores also provide suggestions for similar artists the customer might like. Artists under indie labels will now be able to pop up as recommended artists on these sites. As a result of Merlin, music from major labels may not be the only music making the top seller lists.

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