100 Awesome Independent Album and EP Releases You Probably Missed in 2016

It’s that time of the year again — when all those “Best of…” lists come out telling us the supposed cream-of-the-crop releases in music. And as happens every year, they skate right over the slew of amazing independent releases that dropped into our lives.

Last year, I drew up a list of 100 independent albums you probably missed in 2015. Now it’s time to do the same for 2016.

In the interest of fairness, it’s important to note that most of these releases simply follow my personal taste in music genre-wise; they certainly don’t encompass all the amazing independent albums that came out this year in jazz, EDM, rap, classical, or other styles.

As with last year’s list, these 100 albums and EP’s come from artists all over the world. This year’s list has artists from: Canada, the U.K., France, Italy, Ireland, Spain, Portugal, China, Denmark, Iceland, Sweden, Norway, Belarus, Germany, Israel, China, Mexico, the Philippines, Australia, New Zealand, and from 20 different U.S. states. That’s how big the independent universe is, regardless of genre.

So here are just 100 of the albums and EP’s that you probably missed in 2016. All were released during the 2016 calendar year, so this gives you an idea of just how small a window into the music world the mainstream actually cuts. As always, albums are in no particular order. Do yourself a favor and go expand your universe. You’d be shocked at what you discover.

  1. Forget About ItIt’s Butter – Los Angeles, California, USAa1993529676_16
  2. I Talk to StrangersI Talk to Strangers – London, England, UKa0865780043_16-1
  3. The Centauri Conspiracies: Part 1 — The AwakeningSunshine & Bullets — Tampa, Florida, USA
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  4. Colours Chelsea Shag — Atlanta, Georgia, USA600x600bb
  5. Good DaysSkyline — Austin, Texas, USAa0007603069_10
  6. Muster PointJeeps — London, England, UKa3598822201_16
  7. ScarsForever Still — Copenhagen, Denmark12
  8. Body WarsJune Divided — Philadelphia, Pennsylvania, USAjune-divided-body-wars-ep
  9. Silent ElephantSilent Elephant — Lille, Francea2226111291_16
  10. The Parts We SaveHeel — London, England, UK
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  11. Breaking FreeA Truth Divides — Fall River, Massachusetts, USAa1106324655_10
  12. EmergenceHour 24 — Temperance, Michigan, USA4a92d0_efe37ce2146445358c6a8af10e5ef140.png
  13. Hardly Loaded EPPhantomHead — Lynchburg, Virginia, USAa2643529918_16-1
  14. Tough LoveBloody Diamonds — Toronto, Ontario, Canada13308599_990879211032274_8926664851863017403_o
  15. A Moment of SilenceThe Funeral Portrait — Atlanta, Georgia, USA14563572_1125466497544768_7992703852251309118_n
  16. EpicentreBouquet of Dead Crows — London, England, UKa0429878601_10
  17. She SpeaksShe Speaks — Kildare, Irelanda2252113179_16
  18. WandererRed Handed Denial — Toronto, Ontario, Canada12799213_10153426011084071_1317740590743645433_n
  19. Dark NarrowsLights That Change — Flintshire, Wales, UKa2142808787_16
  20. The ReIntroductionAlmost Kings — Atlanta, Georgia, USA0006541155_10
  21. BlackSuan — Athy, Irelanda0731599391_16
  22. Mean SomethingKinder Than Wolves — Orlando, Florida, USAa3400336724_16
  23. For Your ObliterationThe Dead Deads — Nashville, Tennessee, USAa0316039504_10
  24. No Mirror / Baby StepsBirdeatsbaby — Brighton, England, UKa2859507464_16
  25. Screech BatsScreech Bats — London, England, UK12764898_977824338969132_6112466179685560664_o
  26. Five KitesFive Kites — Uckfield, England, UKa3539413199_16
  27. Pow WowRed Apple — Madrid, Spaina0626135829_16
  28. HoopdriverHoopdriver — London, England, UKa1149210371_16
  29. The Mud Lords EPThe Mud Lords — San Francisco, California, USAa2762874709_16
  30. StonesCherry Water — Wilmington, North Carolina, USAa2364345222_16
  31. Please Welcome Imperial JadeImperial Jade — Barcelona, Spaina4135821107_16
  32. From The CaveFrom The Cave — London, England, UKa0846461208_16
  33. Imminent for Your InterestsPeople Like Us. — Los Angeles, California, USAAlbum Art rough
  34. Otra Vez ISidewatcher — Detroit, Michigan, USAa0310545470_16
  35. EraserheadEraserhead — Aurora, Illinois, USAa0142508800_16
  36. AlterhoodAlterhood — Tel-Aviv, Israela3217298871_16
  37. Eugenia EPDarla and the Blonde — London, England, UKa2573911246_16
  38. Cosmophonie EPCosmophone — Trois-Rivières, Quebec, Canadaa1977159592_16
  39. Hit the AirBasic Land — Monterrey, Mexicoa2682732415_16
  40. Born to DancePürple — Brighton, England, UKa2572290725_16
  41. Double A-SideThe Mis-Made — Sydney, Australiaa0839401698_16
  42. Refuse to Shine EPMr.Mountain — Portsmouth, England, UKa1375774276_16
  43. Gaining PerspectiveGlory Days — Brisbane, Australiaa3697331310_16
  44. The Sky, the Lie, and Who We Are Before We Die — True North — Los Angeles, California, USAa1878484356_10
  45. Luxury EPPatio — New York City, New York, USAa1711486514_16
  46. PhantasmagoriaWhite Claudia — Chicago, Illinois, USAa0392641707_16
  47. Cruise DealMirror Travel — Austin, Texas, USAa0016514373_16
  48. Call Me by NameGood Fiction — Albany, New York, USAa1006386476_16-1.jpg
  49. BipolarKreepy Krush — Minsk, Belarusa3570746258_16
  50. Good HangsLauren Patti — New Jersey, USAa3026102687_16
  51. Copper CrownCopper Crown — Toronto, Ontario, Canadaa0415375489_16
  52. Cuatro —  Tranparentes — Alicante, Spaina0741328815_16
  53. It’s Too Bright InsideLush Vibes — Vallejo, California, USAa1998902662_16
  54. Ropes EndRopes End — New York City, New York, USAa3134658973_16
  55. Only RosesCarissa Johnson — Boston, Massachusetts, USAa2929911764_16
  56. Theories of the UniverseHaunted Ghost Town — Sunnyvale, California, USAa2755326863_16
  57. Soft Grudge — Mulligrub — Winnipeg, Manitoba, CanadaMulligrub-Soft-Grudge--640x640
  58. Dirty LyxxDirty Lyxx — Boston, Massachusetts, USAa2040502891_16
  59. StagesKopacetic — Shreveport, Louisiana, USAa2728269849_16
  60. Much Love — Microwave — Atlanta, Georgia, USAa1730261151_10
  61. MetadonnaMetadonna — Valencia, Spaina0150878033_16
  62. Break Down the WallsBreak Down the Walls — Hawthorne, New York, USAa1176554633_16
  63. Stuff EPMy Cruel Goro — Icelanda2414949285_16
  64. ShadowboxVivienne the Witch — Perugia, Italya3238750359_16
  65. In the Arms of the SunVox Vocis — Phoenix, Arizona, USAa2512338494_16
  66. DiscourseSex With Strangers — Vancouver, British Columbia, Canadaa2127562643_16
  67. Sleep Tight, When You Wake Up We’ll Be GoneThe Few. — St. Louis, Missouri, USAa2511948533_16
  68. Harmony and DisconnectRising Down — Tampa, Florida, USAa2963571272_16
  69. VectorsYeah Sure Whatever — Marin, California, USAa1649515922_16
  70. DEVILTRAINDEVILTRAIN — Bamberg, Germanya1542791299_16
  71. Buried in the SoundLost Frontiers — Pomona, California, USAa3721344826_16
  72. Nosebleed WeekendThe Coathangers — Atlanta, Georgia, USAThe-Coathangers-Nosebleed-Weekend
  73. The Eternal SeaThe Eternal Sea — Tauranga, New Zealanda2466588262_16
  74. Traces EPTraces — Phoenix, Arizona, USAa2543588091_16
  75. Elevation —  We Are The Catalyst — Gothenburg, Swedena2368062794_16
  76. MABON SONGSCrypt Trip — San Marcos, Texas, USAa0313274180_16
  77. Angel — Heroes — Los Angeles, California, USAa4173242852_16
  78. Swan Valley Heights — Swan Valley Heights — Munich, Germanya0676605006_16
  79. Abandoned — Counter Theory — Valparaiso, Indiana, USAa0689683623_16
  80. AntsAnts — Rivergaro, Italya1366200431_16
  81. The Journey (EP)Rusty Joe — Casais, Portugala3938316616_16
  82. SpectraMyrrias — Philadelphia, Pennsylvania, USAa1053203725_16
  83. Dimensionauts EPRobot Jurassic — Edgewater, Maryland, USAa1323032774_16
  84. BelieverWeird Neighbours — Sarnia, Ontario, Canadaa0850762461_16
  85. Hell Is Not Other People, It’s YouThe Republic of Trees — Scarborough, England, UKa3751139773_16
  86. The LippiesThe Lippies — Grand Rapids, Michigan, USAa0852829300_16
  87. Far Away, As We Fade —  AggronympH — Yichang, Chinaa3169651902_16
  88. The DepartedSummer Drive Home — Weymouth, England, UKa0290939636_16
  89. Mix TapeThe Hang Lows — Pittsburgh, Pennsylvania, USAa0584312114_16
  90. SweetMeatThe BlackLava — Torino, Italya3220774202_16
  91. Singularity — Fight Like Sin — Lafayette, Indiana, USAa3594774885_16
  92. Chasing a PhantomChanging Scene — Bel Aton, Maryland, USAa1533314418_16
  93. Abandoned HomesThe Aesthetic — Seattle, Washington, USAa1922360043_16-1
  94. ConnectorFable Circuit — Shepherdstown, West Virginia, USAa3669455937_16
  95. InburnInburn — Illigan City, Phillipinesa2748366475_16
  96. The Lost Ones (EP)LUNGS — Sacramento, California, USAa2346140061_16
  97. AmbulanceThe Amazing — Stockholm, Swedena0811660077_16
  98. DetoxPyke — Arendal, Norwaya4237766781_16
  99. Start AgainThe Middle Ground — Milwaukee, Wisconsin, USAa3612480243_16
  100. Valley Queen EPValley Queen — Los Angeles, California, USAa2154869007_16

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Playlists Will Not Save Your Music Business

My media business will not be saved by video, bots, newsletters, or Slack integration. That’s what Joshua Topolsky told me yesterday. And he’s right.

A still from High Fidelity (2000); Captures the sentiments pretty will I think

A still from High Fidelity (2000); Captures the sentiments pretty well I think

The New Thing that so often arrives just in time as the savior of the whole machine is many times bullshit. It’s a desired escape from an already challenging (dire?) situation that is causing headaches upon ulcers upon headaches. That’s why it seems so magical in the first place; it seems to appear out of nowhere like some miracle from a higher power. You prayed to the media gods for deliverance, and so they delivered unto you newsletters, bots, and Slack.

But Topolsky is right about the misleading nature of these new things: they have the potential to help, but none has the power to deliver us, to part the seas of stubbornness and ego.

While it appears to me that he sought to write about media in general, Topolsky could easily have been talking about any of the media industries in particular. Music, for example, fits right into his sardonic diatribe in a way that must chafe for the megalithic powers who used to control the industry. In music, it goes: yay for playlists, analytics, offline access, curation, and exclusives—build those in, and then we’ll be saved. No, these won’t save your (music) media business. And that’s painful for a lot of people.

More and more, the posts on changing media dynamics which garner shit-tons of feedback are the ones that are the truest. They are radically brilliant—radically poetic in a way—because of their sheer shunning of “conventional wisdom.” Such is more or less an oxymoron nowadays anyway.

I saw an earlier example of this back in November with Chris Dixon’s post on independent gaming, and was similarly moved to write my response on independent music, something he was also referring to (knowingly or not). Now with Topolsky doubling down on a similar idea, it’s becoming an even starker point.

“Because that [former media] system was built on the concept of scarcity and locality—the limits of what was physically possible—it was very easy to keep the gates and fill the coffers.”

And here we come to the prickly point that so many music businesses have trouble with now: scarcity is obsolete; democratization wins. I underscored this in my Dixon-response piece, but now it seems all the more palpable. What used to serve as a power play by music companies—the scarcity squeeze by the major label—has lost most of its bite, if not its bark as well. Maybe it’ll work if we call it “windowing” and stagger the release on multiple services! Nope, we all know that you simply changed the name of what you were doing instead of trying to actually change the action. And it’ll end up free somewhere anyway. Live with reality.

Wait, I’ve got it! We’ll tell people that we have the best playlist-making feature around! Great, so does everyone else. And, by the way, the people who really matter for your music business don’t care. The general consumer/listener might care (and I stress might), but the artists who actually produce the content you rely on for your lifeblood won’t give a shit. Why? Because it ultimately does little for them.

Ah, then we will give them the deepest, best set of analytics they can have! Awesome, so will everyone else. You can join the swaths of sites telling them they have a couple thousand streams, have made essentially no money, and then tell them they owe you $4.99/month for that wonderful data. The reality that you don’t want to hear is that the vastly growing demographic of artists—independents—are smart enough to know this already, and all you’re really doing is giving them numbers with no context. You’re giving them the numbers, the locations, the graphs— but with no real way to actually affect change in those numbers.

Offline access and exclusives then! Right! Except not, because exclusivity doesn’t help these artists long-term, it only helps you in the short term. It’s why artists immediately understand the opportunities before them now while other people struggle to see the big picture. Because they have long-term vision, and patience. Because exclusives are not where the long-term strategy is, either for the artists, or the music business.

It’s in the community cultivation and the relationship bridging. Social and messaging then! No, stop, that won’t be an easy save either. The reality that so few people want to hear is that community cultivation is a long-term process. It’s about knowing things about your content producers—in this case the artists you work with—that your competition doesn’t bother taking time to find out. Don’t ask me how many registered users I had yesterday. Ask me how many conversations I had yesterday with ten artists in seven different countries with fanbases numbering in the tens of thousands. Ask me what comes out of that. And then remember that was only ten artists.

Over the last few years, we were asked who we thought would win the streaming wars, because streaming is obviously the future of music. Except that’s too simple a magic potion because it’s going to take a lot more than that to reach the new horizon. It’s not about fixing the faulty component in the engine. They’re all faulty, and have been for near 40 years.

You have to rebuild the engine completely. Bottom up. You need to construct a music company that does everything that will change the reality for a new artist; after all, there are so many more of them than anything else. And they never stop creating and producing. You need to take your time to do all the sexy things—the playlist functionality, the radio, the streaming, downloading, profiles, social, live—and all the un-sexy things you never thought about—the legal stuff, the business stuff (more than just analytics!), the financial, and the marketing. Fixing the broken paradigm is a losing proposition; building a whole new one is (ironically) cheaper, better, and much, much more powerful long-term. That’s the strategy I’m committed to.

Topolsky was dead-on:

We’ll have to learn a thousand hard lessons, most of them centered around the idea that if you want to make something really great, you can’t think about making is great for everyone. You have to make it great for someone. A lot of people, but not every person.

And that’s what’s missing from the music-business discussion right now. The “everyone” that most streaming services are targeting is already saturated with competition, high prices, and a lot of bad press (from artists and artist agencies like ASCAP and BMI). The “someone” that Topolsky refers to, though, is the independent demographic, clear as day. They’re underserved, undervalued, dismissed, marginalized, pissed off, and not tied to any major label contracts—just right to woo and capture with something as easy as a conversation and explanation of a better future.

I’m as shamelessly self-promotional as Topolsky admits he is because these are the people I love. I know they see what I see, and they’ll wait around as long as it takes to make it work. Because they’re not jaded or angry—they’re just waiting.

Waiting for something better to come along for them.

***

Find me on Twitter @adammarx13 and let’s talk music, tech, and business!

Why Ignoring the Independents Means Thunderstorms for SoundCloud

SoundCloud logo

TechCrunch published a post recently, the premise of which was SoundCloud’s recent tapdance with major labels. The post discussed SoundCloud’s $35M in debt funding, and newly signed deal with Universal Music Group. The fact that the aforementioned funding was actually finalized last May notwithstanding, the piece concluded that the upshot of the whole situation is that SC would end up being worth more than rival Spotify. Here’s why that’s not exactly the case.

The Background: Courting the Mainstream Players

While the TC piece makes some astute points, its most important argument—that SoundCloud has the opportunity to become the YouTube of audio—doesn’t exactly stand on its own. SoundCloud has a major issue in that it’s caught in between two completely different paradigms—that of the independent and that of the major label—and doesn’t seem to know how to resolve those differences. Up until now, the ill-fated balancing act it’s been trying has been somewhat workable, but going forward it will be tenuous at best. As such, the real story here is how SoundCloud is evolving, and not in a way that is wonderful for the independent artists who have historically been its core constituency.

As SoundCloud moves further into the major label fold, it simultaneously does two things:

1) It resolves (at least for the moment) the issues which the music service is having with some of the labels over licensing and royalties. The new deal with Universal clearly comes with it an agreement that the label will drop any pending legal action against the service, as music will now be licensed directly to SC. (It does, however, do nothing for the mass of pending litigation  between Sony and SoundCloud, as the former is that last major label holdout to strike a deal with the service).

2) It effectively continues the alienation of the independents upon which the service has historically built its core and more loyal following.

Leaving the Core Content Base

To be clear, there’s nothing wrong with serving the mainstream. However, most every one of the major music companies already does that, leading to an already crowded crawlspace of competitors vying for mainstream supremacy. While the major music companies set their collective focus on mainstream material, the independent demographic is left languishing in the wind time after time. Initially, SoundCloud was an exception in this respect, cutting its teeth in the independent arena long before it signed deals with any of the major labels (starting with Warner Music Group last year). Since then, however, SC has been moving further and further away from the paradigm from whence it rose and closer towards the crowded party at the mainstream table.     

Screen Shot 2015-11-16 at 1.26.18 PM

The music pipeline

While SC battled other services for mainstream consumers, it had for a while been the favorite among independents and underground artists looking to cultivate their fanbases from the ground up. Even Alex Moazed in his guest TC piece acknowledged that this is what makes SC win: the fact that this is where the content stream starts for a lot of new artists (a rapidly growing demographic) and where they begin to build their initial fanbases and cultivate their followings. That SoundCloud is not only moving away from that, but seemingly shunning it in the long run, is a palpable kick in the face for a lot of independents.    

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Growth of independent music between 2003-2012; image courtesy of Techdirt

What Moazed doesn’t address in his piece is exactly what I discussed last spring: why independent artists should essentially kiss SoundCloud goodbye, why their subsequent deal with the NMPA was irrelevant for independents, and ultimately why the precarious high-wire balancing act was leading them down a difficult path. Independent artists, unlike major label performers, are not locked into any required loyalty as a result of record label contracts. They can come and go as they please on any variety of services, and thus are free to explore any new ( and better) opportunities that might arise.

SoundCloud’s error in judgement here is assuming that the independent demographic (arguably its only real unique demographic of content producers) will stick around when the winds change, and the focus of the platform shifts to mainstream desires. Already there were grumblings in the independent underground when SC premiered its new layout early last year. The simple reality is that SoundCloud fundamentally cannot serve two masters (the independents and the major labels) because each is moving in an opposite direction, with desires and mentalities divergent of one another. Now, with the Universal deal, I see only one way SC can continue to struggle towards profitability, and that is in the major label direction.

That, however, presents another can of worms.

Money and Equity

As some have already pointed out (or could simply guess), the Universal deal could not have been cheap by any means, particularly as it meant Universal dropping its legal action against the music service. Furthermore, as Warner gained around a 5% stake of the company when it licensed its own catalogue, one can calculate that Universal settled for nothing less than a similar deal (likely pushing for more equity in order to drop the legal suit).

That’s a huge premium to pay for Universal’s recording and publishing catalogues, and doesn’t yet take into account all the royalties SC will now have to cough up on the backend. The real hard hitting numbers come when one imagines what Sony, the last major holdout, will demand for its material. Seeing as it currently has legal qualms with SoundCloud, it’s conceivable that Sony could demand even more cash upfront and equity in order for access to its musical coffers. At a minimum, one could calculate the collective equity of the major labels to total somewhere around 15%—at a minimum.

Though not listed specifically, the chart below gives one a good idea of where SoundCloud will inevitably fit within the royalty paradigm, and just how much friction it will cause between both the service and artists, and the service and the labels. Two different (divergent) interests make for a massive headache in the long term for SoundCloud.

1276-music-streaming-services-compared_Sep152

Royalty rates, minimum wage, and reality; image courtesy of informationisbeautiful.net

This may seem like a paltry price of doing business until one considers the fact that the relationship dynamic is not an equal one: the major labels hold the keys to the material which SoundCloud wants (and desperately needs, in order to win the mainstream game), but are not equally in need of SoundCloud itself. They similarly license the same material to a variety of competing music services, and essentially can dole it out to the highest bidder, through contracts which then become renegotiable every few years. Thus, SoundCloud (and others) are beholden to the major labels for their lifeblood, but the opposite is not true. SoundCloud has entered into a paradigm that’s nearly impossible to backtrack from. They’re tying their own concrete shoes.

Operating in the Red

All of this firmly underscores the uncomfortable news recently that SoundCloud took a $44M hit in 2014, making their raise of the above-mentioned $35M almost irrelevant. That the raise of the $35M in debt financing will essentially have to go to cover SC’s 2014 losses must be a bitter pill for investors to swallow, particularly as much of their customer base uses the service for free. The simple truth, as it appears to be, is that SoundCloud is hemorrhaging money with no clear path to take to fix things, either quickly, or in the long term. That being the case, it’s fairly probable that SoundCloud will need to start raising another round of money somewhat soon, even if it’s just to weather its current storm.

Screenshot-2016-02-09-at-23.05.39

SoundCloud losses (in Euros); image courtesy of Music Business Worldwide

And then there’s this, the Reddit thread that must be the most painful thing for SC right now. Titled “SoundCloud could close after $44m losses,” the thread spent a few nights recently blowing up, and had an upvote-percentage of 96%. What does this mean in reality? It means a lot of people were reading this conversation, and the commenters are not wrong. In fact, many of them are quite astute and know exactly what’s going to happen:

Screen Shot 2016-02-12 at 2.36.30 PM

Screen Shot 2016-02-12 at 2.38.39 PM

These comments highlight the discussion going on regarding SoundCloud not only among its general consumers, but among the artists who create the content on which the service was built. It’s important to remember that before SC had any major label deals in place, it was doing quite well because of the huge influx of independent material coming in from independent artists and DJ’s. In moving further and further away from this core demographic, SoundCloud is quite aggressively biting the hand that feeds it. SoundCloud’s response to the Reddit thread was equally underwhelming and unpersuasive.

The loyalty of such independent artists is a complex thing; on the one hand, they aren’t tied to any one particular party, and thus their loyalty to any one service may be thought of as ephemeral. On the other hand, however, their loyalty has the potential to be ferocious and dogged if and when they find a service which works for them, in their favor. SoundCloud used to be that service, but it isn’t any longer. They’ve traded the long term loyalty of these smaller—but much more numerous—independent artists for the short term benefit of being able to peddle major label mainstream material. The same exact mainstream material which all their major competitors are already selling. They’ve traded the long term benefit of being unique for the short term “benefit” of being just like everyone else.

Short Term Gain, Long Term Loss

The big kicker though, is that SoundCloud didn’t start as Spotify of Apple Music did, with deals with the major labels. It doesn’t come from that part of town. It comes from the less expensive, more experimental street of independent artists, covers, and remixes. It blew up among independents long before mainstream listeners got wind of it, and now it’s moving away from those early adopters towards a more corporate clientele.

As far as I can see it, this is incredibly ironic: the independent music universe is just now starting to mature and expand rapidly, while the major label world is getting cramped and hideously expensive. Over the last decade, independent music has grown immensely while major label-signed content has actually decreased. Put simply, the number of expensive, mainstream artists which big music companies are fighting over is shrinking while the number of free and/or inexpensive independent artists is actually growing at an almost exponential rate. Insofar as the independent universe might not be as lucrative as the mainstream arena in the short term, it nonetheless is where the most growth is happening.

So where does all of this leave SoundCloud? In the short term, the Universal deal is a great breakthrough, and certainly will help them more aptly compete with Spotify and Apple. However, it’s clearly been overshadowed over the last few weeks by their financial woes and discussions of possible paths forward.

In the long term, though, they will end up dismissing the demographic and core base that made them special to begin with. Someone else will pick up that gauntlet and run with it, and that’s where the growing independent base will go.  

Cold Emails Are an Opportunity, Not a Chore

Last week, Hunter Walk posted a short piece detailing a few calendar experiments he’d be trying this autumn. Amongst the challenges was a point which stuck out to me: his commitment to replying to any cold email at least once. This started a reflective thought process in my head on the heavy benefits of cold emailing.

I’ve Sent More Cold Emails Than I Could Ever Count

In my time and experiences within the music business, I’ve sent more cold emails than I could ever count; they’re virtually required if you want to start any sort of dialogue. In many industries (tech included), introductions through peers and contacts account for a large percentage of successful business relationships. Cold emails, however, work less often (excluding famous stories which have since become startup lore, like Box’s Aaron Levie cold emailing Mark Cuban and getting an investment). Many times, startup founders are lucky if they gain a response anywhere near Walk’s commitment to answer them at least once.

But in the music world, cold emailing is the norm; you better become very comfortable with it (and very good at it) if you want to get anywhere. You end up cold emailing artists, managers, promoters, bloggers/journalists, DJ’s, venues…the list goes on and on. You learn how to craft just the right sort of message that is equal parts fan and prospective business contact (and if you forget the fan part, you’ve majorly screwed up). Cold emailing becomes such a normal part of the overall flow that if you’re not sending at least a couple per day, you’re losing out.

The Benefits Far Outweigh the Drawbacks

Yet Walk’s piece reminded me of something different. We’re so used to reading posts about cold emailing written by the senders that many times the recipient’s perspective might go unnoticed. I’ve been on that end too.

I’ve had artists email me out of the blue asking for any number of things: a review of their new album, play on my radio show, feedback on their new single, advice about local venues, etc. And this is where Walk’s point hit home for me: it’s so easy to ignore cold emails (especially when there are mountains of them) that sometimes we can forget the opportunities which they can contain. Some of my best and longest lasting business relationships germinated from cold emails. It’s those solid, long-lasting relationships that have led to further opportunities in both the music and entrepreneurial spaces.

(It is of course relevant to note that cold emailing isn’t the only way to broach an initially unsolicited conversation. In my experience, there are any number of indirect methods that work just as well, if not better, than the cold emailing avenue. These, however, I think will provide fodder for a subsequent piece.)

Perhaps cold emailing in the music world is less overwhelming than it can be for tech angels or investors (which is both highly probable and understandable), but experience has taught me that Walk’s approach has benefits which far outweigh the drawbacks, so far as I can see. In opening his mind and palate up to what could be out there, Walk greatly increases his chances of striking upon a beneficial new contact and/or relationship. He does this because cold emails tend to go unnoticed or unanswered by some, and thus provide fertile ground for Walk to mine out new opportunities in an area all his own.

Where Some of the Greatest Opportunities Lie

Time-consuming though it may be, I think Walk’s proposed solution of setting aside 60-minute windows in which to go through these emails is precisely the right course forward. He is upfront about his limits (simply as a human with a life and a job) and does not set out to promise responses within a 24-hour period; everyone has a limited amount of time in the day and that’s just life.

Yet, when the opportunities are literally on your (digital) doorstep, I think the worst thing one can do is simply ignore them. In the music industry at least, one of the first things you learn is to look where no one else is looking. Taking the time to do so usually ends up being the best decision you can make; that’s where some of the greatest opportunities lie. I would be surprised if the same couldn’t be said for at least some level of the tech/investing space as well.  

The Continuing Money Troubles of SoundCloud

Back in July, it was reported that German music streaming company SoundCloud was “running dangerously low on cash.” While this made barely a ripple in the mainstream news cycle, those in the tech and music industries were certainly paying attention, postulating how it was going to turn out. With ~$125M in cumulative funding, SoundCloud, which would be on its Series E for its next round, seriously can’t afford to be running low on cash; not now.

SoundCloud logo

SoundCloud logo

While ~$125M in funding is nothing to scoff at, one needs to examine the dynamics of where that funding is arguably going given SoundCloud’s precarious position at the moment. In the best of situations, the funding would be going towards furthering Soundcloud’s standing amongst its competitors, which now include Apple Music and Tidal in addition to Rdio and Spotify. And yet, the money is more likely getting sucked up by legal fees as the service braces for a round of massive copyright infringement lawsuits from major labels Universal and Sony. Anyone who knows anything about litigation knows that these cases will most likely take years to resolve, all the while drawing larger attorneys’ fees (not to mention time and effort) from the music service.

What the major label industry really looks like; The Big Three

What the major label industry really looks like; The Big Three

Warner is conspicuously absent from the intended lawsuits, no doubt because it’s the only one of the Big Three major labels to have struck a licensing deal with SoundCloud already (never mind the fact that Warner also owns 5% of SoundCloud..). While this may sound good for the streaming service on the front end, it actually complicates things even further, as it throws SoundCloud into the middle of two completely different paradigms with completely different dynamics. The reality of the situation is that SoundCloud has found itself alienating the very independent artists who were its biggest supporters since it signed the deal with Warner and began moving towards a more major label-style content service, akin to Spotify and Rdio. While this doesn’t mean that it’s dead in the water by any means, it does point to a larger issue which SoundCloud needs to figure out for itself moving forward.

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All of this puts in perspective the fact that SoundCloud can’t afford to be “running low on cash” right now. Now that they’ve entered the major label universe, they need a ton of cash just to continue playing the game, as they need to pay for licensing from Warner (and the other labels eventually), pay out royalties, and keep innovating ahead of their competition. That, in conjunction with their impending legal problems, makes this arguably the worst time to be running low on capital (as if there’s ever a good time!). The lawsuits by Universal and Sony aren’t going to go away overnight, and all those legal hours add up; that’s money that could be spent obtaining licensing rights and paying royalties that is now essentially being sucked out of SoundCloud’s system just so it can survive.

I don’t know what SoundCloud’s next step is going to be, but it needs to figure out a way to take the cumulative ~$125M it has in the bank (or whatever’s left) and figure out its legal quagmire before it does anything else. Otherwise, the legalities are just going to suck the life out of it while its competitors move ahead. That may be easier said than done, though, as it needs deals with the very people suing it in order to survive and be competitive. Could anything be more ironic?

YouTube Plays Out of Key

Originally published on Marx Rand on June 11, 2015.

Since being embarrassed after some of the more litigious contracts it makes with independent artists using its platform were made public recently, YouTube is in damage-control mode. The media platform provider has  understandably taken a lot of heat as a result. Right now especially the video streaming service, which was purchased by Google nearly a decade ago for $1.65 billion, is in the process of trying to make nice with the artist community as it braces itself for the onslaught of Apple’s new music service release, Apple Music.

YouTube Has Music, But Isn’t About Music

It’s easy to see why YouTube is concerned about Apple Music. After all, the very same (music) community that in significant measure helped YouTube top $1 billion in revenue last year is just as likely, if not more so, to gravitate towards Apple’s serving of the pie as it is to hang out lapping up mainstream internet TV dinners.

For artists– and especially independent artists – YouTube could be quite a useful tool. At least, what the service is capable of offering should be something that sets YouTube apart from its competitors in the music arena, certainly.

But YouTube is still going to struggle to win in the artist arena for one reason: while YouTube has music, it isn’t about music. For YouTube, despite its cool analytics and humongous user base, is still not a music-centered service. This matters because, at the end of the day, artists are a focus, but not the focus.

With the online music landscape heating up, the services that are able to pay more attention to artists as a principle priority will be able to carve out a significant niche for themselves. In the face of such competition, no one else stands a chance. It’s that simple.

The Percentage Points

A big part of YouTube’s problem when it comes to appealing to independent artists is that it’s a victim of its own success. At the end of the day, YouTube has an overwhelming user-base of consumers (and not just of music, but of all sorts of media) that it needs to keep on satisfying – at last count, there were 23 million subscribers to all the various channels on the service. And that’s only the regular users.

Naturally, it makes sense for YouTube to see that its existing customers are well-catered for, but the reality is that such an approach falls far short of what’s acceptable when it comes to satisfying independent music makers and promoters. They can increasingly afford to be much more selective about what they desire and require from the digital distribution channels that they work with.

To compound YouTube’s difficulties with attracting the independents, YouTube still has in place the same tenuous clauses in the contract that upset the artists just recently. The fact that there are a large portion of artists who are currently unaware of this fact only makes the problem worse over the long run too, for the risk that another public embarrassment for YouTube looms large over the shiny brand image that parent Google has cultivated over the years.

There’s a more fundamental problem than any of this, however, and that’s the following: unlike the teenage makeup artists and tween clothing models that have made gazillions from leading their fans to new cosmetics brands eager to pay top dollar for all the eyeballs, the realistic revenue generated from YouTube for music artists is pretty much zilch when you do the math.

Information Is Beautiful, an analytics service based in the United Kingdom, recently published a breakdown of online revenues obtained by artists across a series of music platforms, namely Bandcamp, CDBaby, iTunes, Spotify, Deezer, and—you guessed it—YouTube. The analytics provider concluded that the percentage of independents able to eek out a minimum wage living on YouTube revenue streams was just 0.07%. Here are the screenshots of the YouTube portion:

Image courtesy of InformationIsBeautiful.com; with edits

Image courtesy of InformationIsBeautiful.com; with edits

Here are the pathetic revenue stream earnings for the signed major label artists:

Image courtesy of InformationIsBeautiful.com; with edits

Image courtesy of InformationIsBeautiful.com; with edits

And now, the revenue stream earnings for the independent artists:

Image courtesy of InformationIsBeautiful.com; with edits

Image courtesy of InformationIsBeautiful.com; with edits

That’s amazing – it’s a seventh of a basis point! In other words, it’s even lower than the cheapest commission charged on an online stock trading platform.

And remember, this is not 0.07% of all one billion dollars of YouTube users, or even 0.07% of all 20-something million YouTube subscribers we are talking about here; it is 0.07% of just all the unsigned artists who receive revenue from YouTube streams! It’s likely you can count that number on the fingers of your left hand while clicking over to the next song with your right.

The Discovery Dynamic

The overriding concern here is that the audience consuming the music of these independent artists is incredibly small. But before you leap to your feet and splutter out the old argument that this is because the music created by independents artists simply “isn’t good enough” or “needs to be curated,” step back and think about the fact that these independents are trying to compete on a platform which is essentially not constructed for them.

Though the dynamic of discovery is big on YouTube, it’s not specified to discovery of new independent artists at all (though it’s great for makeup and clothing brands, which adopts an entirely different sort of discovery process through media). As a result, artists end up competing with an amalgamation of other media – most of which is not music-related – and the poor comparative result they are left with ultimately diminishes any chance that there might have been left over of being properly appreciated or even recognized.

All of this adds up to one very simple reality: inasmuch as YouTube is trying to repair its relationships with artists (and independents among them), it is, at the end of the day, very far from being the be-all, end-all for independent artists that the platform is for other genres of media and entertainment. The fact that less than a tenth of a basis point of artists can eek out a minimum wage using the damn thing – while many other professionals in different walks of life make a lot more than that from five minutes of video stream – attests to this fact.

Thus, for all the potential scale and analytical sophistication that YouTube’s platform offers artists, it is still an ecosystem that is fundamentally unsuitable for them and for displaying what they create. And many of them know it now, too.

Independent Music Is Still  Wild West

The independent music market is very much a wild west, and the introduction of a new tool or a new feature isn’t going to win anyone over. To do that, you need to win the trust and confidence of the independent artists, the way Etsy did with hand-crafters, or even the way that Amazon has managed to do with its dominant share of literary readers and authors alike.

This process is not one in which you can achieve ubiquity by striking a deal with a major corporation which fundamentally only offers enhanced distribution such as a major record label. It’s one in which you need to go straight to the product source – in this case, the artists and their fans – and persuade each of them that what you are providing is somewhere they can interact on a creative level and where the music uncompromisingly always comes first. It should not and cannot be a place where their product looks and feels like an afterthought in the ravenous race to profitability.

The upshot – and the sad irony – of all this is that it’s yet another example of a situation in which one of the very same companies that is so adept at spinning creative mainstream entertainment out into the marketplace proves hopeless in creating a fresh and appealing approach to the rising independent music scene.

As Queen so eloquently put it, “another one gone, and another one gone … and another one bites the dust.”

Spotify’s Sony Contract: What It Means for Everyone

With the leak of Spotify’s contract with Sony last week, there’s a lot of attention on the streaming service right now. I’ll be taking a closer look at that contract over the next week, but for now I’ll focus on the fallout over the last week. In particular there seems to be a lot of renewed interest on the music space, more so than I’ve seen in a while. I think, though, that this has to do with a lot more than simply one contract between two companies; for the first time perhaps, the general public (including music producers, artists, and general music listeners) is aware of the kind of deals being struck behind the scenes.

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Even as Spotify soars in newer valuations that have the company somewhere in the $8B range, yesterday’s leak shows that such a valuation may in fact be misleading—Spotify has to cough up around $43M just for licensing from Sony alone. How much do you think they need to cough up for the other two majors, Warner and Universal? Even if we snip off the extra $3-4M, and assume an upfront licensing fee of $40M from Sony—and then simply assume similar prices for Warner and Universal—then Spotify has already spent $120M of investor money. And that’s just for the privilege of having access to the major labels’ stable of artists.

Also, don’t forget that’s before royalties and any other metrics that Spotify has to hit. Therefore it’s more like $43M upfront for the privilege to pay more later on; it’s not a one-and-done purchase. And most unfortunate for Spotify, this latter number is also predicated on how an artist performs in popularity, something they have essentially no control over.

I’m not going to rewrite Micah Singleton‘s article, but I will draw on a number of points he highlighted and what they mean in reality. There are numerous points of importance, but these are the ones I think the general public really needs to be apprised of. Though the contract has since been removed, we got the basic gist:

  1. Written by Sony—First let’s just take a moment to note that the contract was written by Sony. Of course this is their prerogative, but when considering the fact that Sony holds the rights to much of the content that Spotify wants to license, it clearly illustrates who is subject to whom. Frankly, since Sony holds the content rights, they (and the other major labels) essentially hold Spotify’s lifeblood in their hands—that’s not an opinion, it’s a fact. Realistically Spotify is not built around an independent and free model, so they need to play ball with Sony and the other labels, or they won’t play at all. Period.Screen Shot 2015-05-21 at 8.01.23 AM
  2. Advances—Spotify paid Sony $42.5M just for the right to license the music. That’s an upfront fee just to get in the door. This means that anyone looking to compete head to head with Spotify or Rdio needs to magically have about $130M lying around or in funding before they even get their feet wet (projecting the combined upfront licensing fees of the Big Three major labels). One of the reasons that Spotify has to raise such massive funding rounds is because these advances are somewhat annual, and thus need to be renegotiated all the time. And as the major labels continue to get squeezed in their wallets, these numbers are only going to rise for services looking to use major label content.
  3. Screen Shot 2015-05-21 at 2.36.33 PMDivided How and Among Whom?—As Singleton points out, Sony can essentially do whatever they want with that money; there’s no stipulation that it has to be divided in any particular way, or that any of it has to go to artists or songwriters. According to multiple sources, that money usually stays with the label and is generally not shared with artists. This particular point has raised such criticism that its prompted both a response from the EU, which is now looking into Spotify’s contracts, and virtually obliged Sony to come out with a public statement on the matter. Screen Shot 2015-05-21 at 2.36.56 PM
  4. Most Favored Nation Clause—Essentially a clause that guarantees that Spotify’s balls remain in Sony’s vicegrip. The clause guarantees Sony the right to amend  any portion of the contract if it perceives that any other label has a better deal than it does. This means that Sony is essentially never bound to Spotify in any way; it can decide—based on its own perception—that another label has a better deal (which it may or may not) and rework the entire deal for its own benefit. And Spotify has to swallow everything.
    Screen Shot 2015-05-21 at 2.41.24 PMScreen Shot 2015-05-21 at 2.42.20 PMWhere this really kills Spotify is when used in conjunction with the clause dictating payment based on market share. Thus, if another label has a better deal in that regard—perhaps double what Sony is getting monetarily—then Spotify has to cough up and pay Sony the difference.
  5. Spotify’s 15%—Basically exactly what it sounds like. Spotify takes 15% of the revenues from third-party advertising right off the top. What they do with this money is unknown, though it’s quite plausible that they’re not redistributing it to the artists, and are probably giving third-party advertisers a raw-ish deal. Next time Spotify releases a statement saying that they don’t have the funds to pay the artists more money, let’s all remember this little financial tidbit.Screen Shot 2015-05-21 at 2.47.16 PM Screen Shot 2015-05-21 at 2.48.28 PM
  6. Sony’s Ad Spots—This one’s pretty easy to understand: essentially Spotify is obligated to give Sony a certain amount of free ad space on its service. The ad space—which is clearly worth a fair amount of money—is given to Sony at a massive discount.Screen Shot 2015-05-21 at 2.53.33 PMScreen Shot 2015-05-21 at 2.54.09 PMBut that’s not all; Sony retains the right to sell the credited ad space to whomever they want, whenever they want. Again, Spotify gets squeezed.Screen Shot 2015-05-21 at 2.54.41 PM
  7. User Metrics—Spotify essentially has goals it needs to hit in terms of its user metrics (on both payment tiers), and if it misses those, it could be penalized. Conversely, if it exceeds expectations in either of the tier metrics, it recalculates that number so that Sony gets paid more. In English, what this means is that the better Spotify does, the more money Sony is entitled to, but doesn’t necessarily mean that it all works out for the streaming service.Screen Shot 2015-05-21 at 3.07.40 PM Screen Shot 2015-05-21 at 3.07.51 PMIt’s important to remember that Sony isn’t in the business of making sure that it backs up Spotify. It—like the other major labels—is licensing its music to numerous services, so its only real loyalty is to its bottom line. How that affects Spotify is essentially irrelevant to the major label.
  8. The Royalty Distribution (Forget About the Artists)—Without going too deeply into it (Singleton’s initial analysis and infographics are worth consulting), it basically boils down to this: the royalties per stream are so miniscule that you need to be getting millions of streams in order to make any real money (and by real, I mean anything more than $10.00). We all know that independent artists are never going to get to that level trying to compete on an unfair playing field, so let’s just put that point to bed right now. One thing that is worth noting now, though, is that not even every artist has a contract entitling them to royalties. So for all the bluster about royalty payments, many of the artists signed to major labels aren’t even entitled to fair cuts from the streaming.Screen Shot 2015-05-28 at 6.33.02 PMBut even more so, the way in which streaming royalties are calculated is so incredibly convoluted you almost need a degree in economics just to understand it. That’s not how it should be. For independent artists—and even mainstream artists who simply want to understand the financial dynamics—this is yet another way of keeping them in the dark. No one in any other industry would accept some sort of voodoo economics principle when it came to calculating their earnings, so why should music artists—mainstream or independent—have to settle for that? That’s the point, they shouldn’t.

There are numerous other points worth discussing, but these are some of the major ones that discussions of the music industry revolve around. Though arguably a major embarrassment for Sony and Spotify, the leaking of the contract between the two really shines a bright light on what goes on behind the scenes. It clarifies that what happens behind the curtain affects every type of artist, and underscores why more transparency and reform is needed in the music industry. And it highlights something else: the music industry is not dead and foregone. We’re now right on the precipice of a whole new type of music industry that’s taking shape every day. Those who accept and embrace the new dynamics will be the ones who benefit most from them when they inevitably come.

 

Thanks to Shelley Marx for reading early drafts of this.

Tidal Is Losing More Lifeboats by the Day

Yesterday, TechCrunch ran a piece from Kelli Richards postulating the viability of Tidal as a service, and its likely outcome in the streaming wars. The article was essentially an overview of what’s been going on with Tidal lately, with Richards doing a good job of zeroing in on a couple of things I’ve discussed and underscored in my own mind as the real deal-breakers.

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Before getting into the two main things of her article, I think it’s important to note a very shortbut important—sentence in Richards’ piece: “…the prospects of Tidal upending Spotify in the near future are slim…” This falls right in line with something that I wrote earlier concerning SoundCloud, namely that trying to out-Spotify Spotify is a losing battle and a very poor battle-plan. Going head-to-head with Spotify and playing their game their way (that is, general popular music streaming) is such a poor decision because it means you’re starting way behind the starting line. And in Tidal’s case, this goes double for any sort of exclusive content which might be your main attraction.

Now, Richards’ two main points, and my takeaway from each:

1. Premium/Exclusive Content—Firstly, I’ll be the one to say it: “exclusive content” as one’s main gameplay is a very tough sell. It’s a tough sell because it’s a drastically diminished niche of a larger market, which is basically popular music. That means you’re trying to play on two different levels with two completely different mindsets.

The “exclusive content” play is difficult because it requires your customer base to desire those exclusives almost as much as (or more than) the original content. This isn’t anywhere near the same thing as looking at an independent market, since those content producers are increasingly giving away their material for free (including “exclusives” like remixes, acoustic sets, etc.), and making money elsewhere. For a service like Tidal though, they need to first out-Spotify Spotify to gain the market share of the original popular music demographic, then they need to persuade those people to convert to “exclusive” consumers and pay a whole lot more for something they could just as easily get on YouTube if they wait a couple weeks or a month. This is one of the major flaws in Tidal’s plan in my eyes.

Also under the first point is a small comment included by Richards made by Tidal’s CEO Peter Tonstad, which basically asserts that the industry is moving away from the freemium model, and that “it’s going to be the content richness” which listeners begin to look and pay for. This is bold, but false.

First, the sorts of audiences which Tidal is looking to court—general consumers of popular music—are not about to leave the freemium paradigm anytime soon. Secondly—and funnily enough in my opinion—the rabid, content-rich focus which Tonstad identifies as Tidal’s silver bullet doesn’t really apply to popular consumer audiences on a general level anyway. Ask anyone listening to Spotify if they’d pay double (or anything) for higher quality which they can’t even discern anyway, and I’d be surprised if large numbers converted over. Ironically enough, the rabid thought process which Tonstad is alluding to is alive and well—in the independent music industry—where free plays a much bigger part than it clearly does with Tidal.

2. Celebrity Backers—This point made by Richards is a lot easy to wrap one’s head around; people simply don’t feel so bad when Jay-Z and Kanye West start lecturing about needing more money because, well, they’re rich. And not like “we perceive them as rich but they’re really not;” they actually are rich. Being lectured about money from people like that, then, is not only not welcomed, but it’s really irritating. There’s really no way you can look at that celebrity-backed list of Tidal promoters and take them seriously.

Even more so, though, it really alienates artists who are not rich—you know, like everyone else. For the singer-songwriter playing in dingy clubs, or the band on the road and sleeping in their van, Jay-Z might as well be speaking an alien language. Their thought process is almost indignant (and why shouldn’t it be?); they’re thinking “dude, you have all this money and influence, why the hell do you need any more?” And frankly, if I was still an artist, I’d be thinking the exact same thing. Celebrity-backed things like this are rarely ever a good idea, especially when it alienates others within the same industry.

Richards notes that Tidal has someone who Spotify doesn’t—Taylor Swift—but as I explained here months ago, here’s why Taylor Swift is on the same level as Jay-Z in terms of “not getting it.” She’s so engrossed in the major label paradigm and its trappings that she doesn’t see what life is like for normal artists anymore. And, just like Jay-Z, her disparaging remarks about artists “devaluing their music” strikes a sour and indignant chord in a lot of musicians who think she takes her good fortune for granted.

But if one needs any more convincing of why it’s going to be a very tough road ahead for Tidal, you can read about:

  1. Jay-Z’s hissy-fit onstage
  2. Their firing of their previous CEO, Andy Chen
  3. Criticism from producer Steve Albini
  4. Criticism from other mainstream artists
  5. Their highly criticized and misleading relaunch

The storm isn’t about to end anytime soon, and it seems the lifeboats have left the ship.

SoundCloud’s Failed Highwire Balancing Act: The Sony-SoundCloud Breakup

Trying (and Failing) to Balance Two Completely Different Paradigms

The SoundCloud-Sony Breakup

The Sony-SoundCloud Breakup

It’s been a tough week for Sony between its leaked contract with Spotify and criticism over its moves with SoundCloud. And yet, inasmuch as the former is embarrassing and will certainly come back to bite the two companies, the latter is arguably more problematic because it’s not simply between Sony and SoundCloud; it’s between Sony, SoundCloud and the independent artists and fans. That last little caveat is something that Sony can afford to ignore—but it’s going to become an increasingly difficult reality for SoundCloud.

SoundCloud, now a platform for major labels and advertisers

SoundCloud, now a platform for major labels and advertisers

News broke over the last couple of weeks that Sony has started pulling their artists’ music from SoundCloud—regardless of what the artists want. To Sony, SoundCloud isn’t a viable option since it doesn’t presently have a strong monetization plan (as if services like Spotify and Rdio do), and until the label and streaming service can come to terms, it seems that any and all Sony-controlled material will be stripped from SoundCloud.

This has put SoundCloud in quite a precarious position. On the one hand, it doesn’t want to alienate its initial die-hard independent fanbase, but on the other it’s been actively seeking out a deal with Sony, as well as with the other two major labels, Warner and Universal (already having one in place with Warner). SoundCloud is trying to balance two completely different bases and paradigms that are moving in opposite directions: 1) the major label paradigm which is still predicated on an obsolete business model, and 2) the independent paradigm which is increasingly embracing “free” as a big part of the future.

What the major label industry really looks like; The Big Three

What the major label industry really looks like; The Big Three

What I Said a Month Ago

On April 9th, SoundCloud signed a deal with Zefr—that same day, I wrote a post on why independents should very soon kiss SoundCloud goodbye; why the Zefr deal was essentially irrelevant for them. It seems I wasn’t the only one who’d identified SoundCloud’s prospective problems, as a day later on April 10th, PandoDaily writer David Holmes came to the same conclusion and published a piece with a similar premise. Holmes’ post validated many of my points, and cleverly brought up a few others, all to conclude, as I had, that the Zefr deal was a band-aid for a bullet wound. And now the bullet wounds are really beginning to gush blood.

This week, electronic artist Madeon released a heavily critical statement regarding he Sony-SoundCloud breakup, noting: “Thank you SoundCloud for being such a great discovery platform over the past five years. Well done Sony for holding your own artists hostage.”

Ouch. Snap. Burn.

Clearly Madeon (along with droves of other EDM artists who’ve gained significant followings on SoundCloud) isn’t pleased with Sony’s “money first” thought process and strategy. And while Sony has the legal right to pull music which it holds the rights to, in the grand scheme, it’s not exactly a play which will endear it either to the fans it seeks, or the artists it works with. Actually, it has the complete opposite effect.

Who’s the First Priority?

But what lies beneath the surface of this very public breakup is not simply an issue for Sony, but a major issue for SoundCloud. People expect Sony to act like a major label—because that’s what it is. But increasingly, SoundCloud has been chasing the major label content which it thinks could help it become more competitive with Spotify, Rdio and Apple. In the process, it’s spitting in the faces of the people who loved SoundCloud for what it was before: free discovery.

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Excerpt from my original April 9th article

And as SoundCloud moves closer to the major label paradigm, it becomes increasingly irrelevant for independent artists, regardless of genre. Independents are where SoundCloud cut its teeth, so now, moving away from the free-model will leave them somewhat toothless. Case in point: SoundCloud’s new NMPA deal, which, again, is irrelevant for independent artists.

The thing about the independents is that, unlike major label artists who are tied to the major label business model, they’re not tied to anybody. Their loyalty can and will be to whoever gives them the best service as a first priority, not an afterthought. This means the best service for the independents, not the best they can do after the major labels have had their fill. SoundCloud is trying to perform a balancing act on a razor-thin highwire and it’s 600lbs overweight. It’s trying to straddle two completely different business paradigms, and managing to piss everyone off in the process.

Free Is Here to Stay—Live With It

The free paradigm which the labels are beginning to get fed up with isn’t going away—something which Peter Kafka seized on in his article on Spotify. Free is a way of life now, and as independent artists continue to explore the benefits that free affords them, they will increasingly detach themselves from the obligations of the major label paradigm. Services like SoundCloud will eventually have to choose a side—something that’s going to be exceedingly difficult for SoundCloud now that they already have a deal with Warner and are chasing deals with the other two major labels.

Screen Shot 2015-05-23 at 3.56.48 PM

Excerpt from my original April 9th article

It seems that they’ve already made their choice, and it won’t be too long before droves of independents notice. They don’t have to and won’t settle for being second-tier priorities, and will look for alternative options. In the meantime, Sony and SoundCloud will duke it out until the former signs the latter to a major label-style contract.

I said it before and I’ll say it again: if you’re an independent, kiss SoundCloud goodbye.