Remake, Remodel: The Evolution Of The Record Label

This pre-draft version is strictly for review purposes only and is not for general dissemination or sharing.
The label as a social network
The plethora of media outlets – all of them in search of exclusive content to bolster their
offering – has led to an increase in the transaction of artists providing their time, or their
music, or a promotional appearance, in return for exposure. This form of marketing is
important and can be a key part of the record label’s toolbox.
A label with a stable of successful artists who are in demand by the media can use this to
leverage exposure for its newer artists. Labels build up long-term relationships with
media partners and this benefits their roster which, in turn, gives the label a competitive
advantage. However, the rise of web channels and social media has leveled the playing
field somewhat and has perhaps reduced this particular advantage of scale.
However, as Andy Parfitt points out, the media outlet needs to be mindful of the costs
incurred by the labels in promotional activity. The labels will assess the perceived
payback in relation to audience reach and exposure. ‘They don’t just agree to it because
it’s Radio 1,’ he says.
The role of radio in the marketing plan for an artist has changed recently in relation to
the ‘windowing’ of music – i.e. using exposure to build up demand before making it
commercially available 10 .
In the old economy, this was perceived as value to radio as it had the exclusive access to
pre-release music and may have attracted listeners for that reason. Likewise, labels who
were keen to maximise a record’s chart entry would try to increase pre-release airplay
before satisfying pent-up demand through a commercial release.
As Parfitt says, today ‘you can get anything you want at any time’ – illegally, if not legally.
The concept of ‘exclusivity’ has almost disappeared, but he does not necessarily see that
as a threat to radio. He feels the listeners buy into a DJ or presenter because ‘they play
good music and have a good reputation. Exclusives are now very hard to control thanks to
online leaks.’
On the label side, since the start of 2011 many are now employing a policy of ‘on air/on
sale’ meaning that as soon as a record goes to radio, it is available to buy 11 .
Initial reactions within labels would indicate that they feel this is driving sales better, as
consumers no longer experience the frustration of hearing something they can’t buy.
The benefit in reducing online file-sharing is still to be measured accurately, but
anecdotally, executives feel this can only help.
The marketing contribution from a label to an artist also includes qualitative aspects,
referred to by Martin Mills above as ‘skills and contacts’.
A label develops a network of experts in various fields which can benefit the artist in a
number of ways.
10 Is Pre-Release Killing Our Business? Mar 2010 – MusicTank – last accessed 09.05.11
11 Ringing In The Changes Jan 2011 - MusicTank – last accessed 09.05.11
16