A new way

So another year comes to an end and, like last year, it appears to bring with it bad news for techno music. Or is it? The news that German distributor Neuton is to close, followed swiftly by Pinnacle -  although indie-focused, it also distributed electronic labels -  and straight after that, the closure of Intergroove Spain were unexpected and indeed confidence-shattering. These events suggest that selling vinyl has become increasingly difficult, and, given that Neuton distributed Perlon, a vinyl-only operation but an iconic operation at that, it would not be unreasonable to posit that it would be difficult for anyone else to succeed where they appear to have failed. The easiest reaction at this stage would be to admit defeat, claim that the game was up for vinyl and that the digital evangelists were right all along. However, to do so, especially when confronted with such overwhelming business evidence in the shape of Neuton's demise, would be to overlook one key factor that has got us this far for so long: passion. Passion is one of the main reasons why 2008 was such an inspirational year for electronic music. It goes a long way to explain the Workshops, Sandwell Districts, Modern Loves, MDRs, FXHEs, Dials and Sistrums of this world. It explains why great art - and yes, it is art, no matter how often it is reduced to a series of files in a computer folder - refuses to shirk in the face of crushing commercial arguments. Passion is also the reason why labels continue to release on vinyl, because they realise that it is at the heart of techno's soul -  to work without it would be to rip its still-beating heart from its body. But is this enough? Just imagine if this passion could  be copperfastened to a new way of doing business for small labels, how much powerful would it be? This is something I have touched on before, ironically, around a year ago, when Amato went out of business. The same concept still prevails, and I was glad to see that some of the posters over at mnml ssgs have also started to open a dialogue about it. Faced with closing distros and ever-tightening margins, small labels have to rethink how they sell their 'product' to the world. The time is still right -  it was also right last year  -  for small labels to deal with shops and online stores directly, to cut out the middleman and boost their margins. Someone mentioned that this is 'hassle', but welcome to the real world. Hassle is working a day job, hassle is having a close relative die, hassle is holding a sick child in your arms as they try to sleep -  emailing or phoning outlets to offer them and yourself and de facto your customers better margins for your releases is not hassle, setting up a website (for free) to sell your releases, to deal directly with your audience is not a huge hassle either. In both instances, you would make far more money than the piteous margins distros offer. This extra money can then be re-invested in your label to pay your artists, focus more on your artwork, secure the services of a  great remixer or even pay yourself -  using potential extra revenue for any of these options would benefit your label and the small label sector in general. Of course, sometimes small labels can't do it themselves for a variety of reasons, and this is why the second part of last year's plan is still relevant. If you can't do it yourself, join forces with a few other small labels and set up a co-operative. Pool resources to deal with shops, your website, promotion, or press a few releases at the same time to try to get a discount -  if you keep doing this you will get a manufacturing deal with the plant. Look at Clone and Hardwax, learn from the example they have set, but stay small, lean and focused, consolidate your base and stay part of a tightly-knit group - many of the distributors who closed since the start of this decade did so because they tried to grow too fast, took on way too many labels and lost sight of their core business. Having said all that, there are still some great distro operations out there, and maybe the best way forward is to work independently but also as part of their network. Techno music is great at re-inventing itself, but this time a quantum leap in how labels operate is required. Passion and creativity will only get them part of the way - that last, agonising 100 metres in the marathon is dependent on them being proactive, perceptive and shrewd to get across the finishing line.

Comments

[James]

An excellent & inspiring post, especially this part:

"It explains why great art - and yes, it is art, no matter how often it is reduced to a series of files in a computer folder - refuses to shirk in the face of crushing commercial arguments."

Thanks for the optimistic note - with demand for a physical product falling & a scary recession underway, I worry that stripped-down labels are up against stripped-down customers. But those are the conditions that bred the music in the first place...

[pantycontrol]

well said. btw... that mnmlssgs blog is getting heated.

[bernardo]

Very inspirational...I like your part about dealings with 'hassle'.

In a recession we all have to hassle.

Many businesses and operations learn to become more efficient in difficult business environments. Lets hope labels and distributors do so and keep that beating heart of techno alive :)
I think my own personal experience with vinyl has been interesting...I bought my first turntables last February with the idea I would get Serato soon after. Nevertheless the experience of digging for records, hanging out in shops, ordering stuff on discogs and hunting down rare records has been so much fun that I've become a big fan of vinyl and haven't gotten the serato yet. I guess what I'm saying with this is that IT IS STILL possible to gain new customers! There is definitely hope for vinyl and I'm confident the medium has a bright future as long as there is passion for this music!

B

[chrisdisco]

i feel like i should write more, but i just want to say 'thanks'.

[kuri]

thanks for a thoughtful post on this subject. nice to see a gloom-full topic explored with a positive solution filled approach.

it seems like some of these previously vinyl-only labels are now expanding their distribution tactics: fxhe and sistrum are now selling digital releases on beatport. i didn't think that would ever happen.

[Matt]

superbly put and inspiring.. thanks for that