Calling All Retailers

A peaceful guerrilla revolution has been occurring in the United States for the past twenty years right under the eyes and ears of retailers which are selling recordings at a rate of $14.6 billion annually.

The guerrillas are the thousands of musicians that have recorded and released recordings independently of major labels in every imaginable genre of music. Some are artist-owned labels; others are small labels specializing in particular genres of music, such as Red House Records (folk roots music); Silver Wave Records (new-age, Native American); Street Solid (rap) and Arhoolie (blues, Gajun, Tex-Mex).

Sales of indie recordings have been very strong over the past decade. According to Sound Scan, indie sales accounted for a 16.3% market share of domestic recordings sold from January to June 2000. Some artists on indie labels have sold millions of records, without airplay, big buck advertising, or retail support from the national chains. That's revolutionary!
My prediction is that within a year, the percentage of retail sales by indies will increase. Here's why
1. The Internet is spurring the indie revolution to even greater gains. The Internet provides the public with easy access to all kinds of music, not just recordings from major labels. Internet radio stations break the music into as many as 50 different genres so that the public can choose and tune in to music they previously had little access to. Web sites provide the public with a means to get information and sample the music of many of the artists they are curious about.
2. Indie sales are increasing because of a large negative reaction to the potential legal shutdown of Napster and other file sharing web sites. At the same time there has been a barrage of broadsides against major labels for their almost monopolistic control of the marketing and promotion of music via traditional media and distribution outlets. Some of this barrage has been from major label artists. Speaking out at a Manhattan new-media conference, rock star Courtney Love said, "Stealing an artist's music without paying for it is absolute piracy. And I'm talking about major-label recording contracts, not Napster."

3. Successful indie artists are beginning to shun major label contracts. Like Ani DiFranco, they have figured out that they can keep artistic and financial control by staying independent. For example, an artist-owned label can realize approximately $880,000 in sales of 100,000 CDs to indie distributors (at a $16.95 list price). It would take sales of approximately 500,000 CDs to see that same amount from a major label at a 10% royalty. Few new artists signed to major
label contracts break even, much less realize sales of half a million recordings.

4. In the last 20 years, indie labels have gotten very good at developing niche markets for particular genres of music. Today most every genre of music has a strong performing, promotion and distribution network that serves it. These include: performance outlets, including clubs, festivals, craft fairs; alternative retail marketing, such as health food stores, book stores, nature stores, motorcycle shops, feminist book stores, Christian centers, museums; indie distributors; large membership associations like the Association For Independent Music, the Gospel Music Association, and the Folk Alliance; promotional networks, magazines and fanzines; some radio programming on college and other community radio stations, or special programming for National Public Padio like 'Hearts of Space" which features new age music or "Thistle and Shamrock" which features Celtic music. The Internet has helped expand access to these niche markets.
5. Finally, the quality and vitality of the music available from indie labels is fantastic. The public is increasingly hip to the fact that they can find what's hot and new in most any genre they love by looking to the indie labels.

Record retailers need to jump in on this revolution and profit from it. Familiarity breeds interest and the growing interest in and exposure to indie artists will increase sales for retailers across the board.

Here are some suggestions for retailers who want to get in on the revolution:
1. Let the public know you carry indie music by featuring it prominently in your store. Let your salespeople pick one or two of their favorite indie recordings. Provide in-store play and provide listening booth space for free. Give your salespeople a bonus for reaching sales goals.

2. Once your support is solidly matched by sales, think about instituting a policy of charging indies less money for wall, booth and listening space. They can't afford the prices charged to major labels and this means that major labels continue their 'lock' on public access. But this means that you miss out as well.

3. Match growing public interest in indie label music with special promotions for indies on a genre-by-genre basis. One month could be devoted to blues; another to Cajun music; another to rap and new dance music. The labels will support you with tons of wonderful graphics.

4. Carry recordings of local artists. Have one bin that features them so the public has an easy way of finding them. Yes, it's a pain to bypass distributors and deal with one artist labels - but it is a fine way to let the public know you are supporting local music. Do what some of the successful book chains do: they have a customer service rep whose job it is to promote local artists.

5. Work out a method so that indie labels can afford to feature their recordings in your store when their artists come to town for concerts or special performances.

6. Carry more of the special 'zines' devoted to genres of music so that you can help the public get educated about all the great music that's available in many genres. There are 'zines' for Latin, bluegrass, blues, rap, hip-hop, new dance, Tex Mex, etc.