Nowadays when listening to music or searching for the next big thing it is very easy to lose sight of how the music industry actually works. We are bombarded daily with promotions and songs telling us that this artist is one to watch or that album has been nominated for the top music prize in Luxembourg so we should go and buy it as soon as possible.
Yet the reality is that the vast majority of record sales go to just four major companies.
The big four are Sony, EMI, Warner and Universal. Together they account for just over 80% of all global record sales. The remaining 20% go to all the other independent labels – put together!
As an experiment pick a CD/download from your collection and find out who the artist is signed to and see if you can find someone not affiliated to any of the big four. I did and at random chose MGMT's Oracular Spectacular to find they were signed to Columbia Records who are in turn owned by Sony.
Next was Fleet Foxes self titled album. They are signed to the famous Seattle label Sub Pop who helped to launch Nirvana. However the label is 49% owned by Warners, thus denying Sub Pop the title of independent label.
Finally I tried Vampire Weekend and struck gold as they were signed to XL Recordings who are completely independent of the “big four”.
The record industry is replete with examples of record labels that came from nowhere to have a lasting impact on popular culture. One such example is Factory Records whose turbulent history was retold in a great documentary made in 2007 by the BBC.
Lest we forget Motown Records (now part of Universal), Island Records (Ditto) and the numerous others that have sprung up over the decades. If the big four are going to dominate in this manner then I can't help but feel that the chances of another Tony Wilson coming along are almost non-existent.
After all it was characters like this that have helped shape the face of music, not faceless suits in the top floor of some office block looking at the bottom line of a balance sheet and with a business plan designed to suck in as much of the younger generations pocket money as possible.
Posted In Comment, Sep 07 2009.
Words - Stuart