Wednesday, May 16, 2012

Co-Op Record Labels and more on Direct Distribution


This article will explore research of existing Co-Operative (Co-Op) or Work-Owned record labels. While Co-Ops have existed for many years and have gained popularity since the 60s there are few advertised Co-Op record labels. 2012 is the International Year of the Cooperative, as proclaimed by the UN Division for Social Policy and Development. I will not go into depth on what constitutes a Co-Op here in this article but wanted to share some research into locating Co-Op record labels. Another ongoing stream of research into websites and services that offer artist to fan distribution and services of which is a new start-up about to launch called distro.fm.

In my research to date three Co-Op Record labels have been identified that show some success in their operations and have made it past the first couple of years as a startup business. Two exist here in the U.S. and one in Canada. The Blocks Recording Club is based in Toronto, Canada since their founding in 2003 and became a Co-Op in 2005. They host a variety of indie artists; one nice feature is that they use another Co-Op or collective to help with merchandising and sales called The Blue House. For the U.S. there is Black Cactus Records (BCR) in Phoenix, Arizona and Revolutionary Productions Artists and Musicians Cooperative (RPAMC) or Revolutionary Records in Seattle, Washington. BCR presents itself very professionally and give a good account of being a Co-Op and how the logic of combining resources and creating less duplication of effort goes a long way to freeing up individual time to focus on the art of making music. RPAMC appears much smaller in scope but highlights the purpose of passing knowledge from one generation of musicians to the next. This aspect of education to create skilled workers through community effort is the key purpose of creating Asura Records as well as the founding of systems like the Mondragon Co-Ops of Basque, Spain. Follow on articles for Co-Op record labels will explore how these organizations formed and their own business structures, which require outreach and interviews to come.

Distro.fm is a new startup non-profit company that will host artist-to-fan subscription services like you would find on Spotify.com, but the bulk of the money generated from the subscription goes directly to the artist not a tech company. This is a great concept which I will watch as they move towards their launch date. This idea combines the streaming radio trend with content that the artist can release directly to their fan base outside of traditional releases. Content can include jam sessions, concerts, art and interviews. Really it is up to the artist to devise what their fans want and make the content have value to keep them subscribed year after year. A great steady revenue stream potential in this concept especially if Distro.fm delivers on a percentage of profit sharing that beats out the competition.

Please comment to this article if you would like to share any other Co-Op record labels for my research.

Wednesday, May 2, 2012

Fan Funding Choices for the D.I.Y. Musician

Fig.1
Fan funding has proven itself as a method for a musician to gain support for their projects directly from their fan base. Bruce Houghton wrote an article on Hypebot titled Music On Kickstarter By The Numbers [Stats], which highlights that the music category on Kickstarter.com has ranked number two in total funding, with over 38 million dollars raised. Houghton highlights on artist, Amanda Palmer, who as of this post has broke the record in raising funds for here current project by raising $360,000 in 48 hours. Palmer’s record breaking Kickstarter project was noted in another post by Houghton. A personal friend, mentor and fellow musician Lon Milo Duquette restarted his music career recently. Duquette used Kickstarter to help fund his latest album and far exceeded his goal of $4,350 raising a total of $7,345.

While this shows the good side of fan funding, one must remember that it requires some creative marketing, fans willing to open their wallets, and solid plan that can be followed through. Another area of concern is the ability to scam individuals using these funding sites. Peter Smith in his blog writes about one such incident involving a video game project on Kickstarter. His advise in the end is to be vigilant as an investor and research the projects before making a fund commitment and as users help police the site in order to keep it a viable source for all to use.

Beyond Kickstarter there are other fan funding sites that can be used by a musician. Gofundme.com is one such site with an advantage over using Kickstarter. This advantage is that the fundraiser can access the money raised to date without having reached the funding goal. This can allow the musician to begin a project as the funds flow in and not wait until a goal has been reached.

Either site can be useful to a D.I.Y. musician, take time to research and find the site that best meets the needs of the project.


Fig. 1 (n.d.). Kickstarter.com logo [digital image]. Retrieved from: http://www.hypebot.com/.a/6a00d83451b36c69e2016765f8fecd970b-popup