Ok, that does it. I have to write a post about this whole Tunecore / Universal partnership-thingy that has been going on since the release of the official news last Thursday. For those of you who aren’t aware of this historical event, here’s a quick summary.
Tunecore= low-fee digital distribution platform for bands, that places their music on sites like iTunes, eMusic, Amazone and others. Tunecore launched in 2006 and since then has become one of the most prominent and active digital distribution models out there.
Universal=largest behemoth record label on the planet. Is known to engulf record labels, and many other things.
Since July 9th, Tunecore+Universal=first ever partnership where a major record label offers services instead of offering contracts to indie artists (that I know of).
Since my synopsis might have been unclear, I’ll let Jeff Price, CEO of Tunecore, explain: “In a nutshell, in addition to regular old TuneCore.com, we will also be hosting and serving websites for Universal labels that provide artists distribution while taking none of the artists rights or revenues. At these label portal sites, you not only get distribution but also extra things from each label. We do not yet know what the “extra things” are as each label will be creating their own. These extra things could be musician services, marketing, promotion, information, opportunities etc.“
Here’s also an extract of the Ars Technica review on the matter (recommended read): “any artist (big or small) can sell music through iTunes and Amazon for $9.99 already with the help of TuneCore, but now artists can choose to “sign themselves” to one of UMG’s labels—assuming the label is agreeable—for more marketing and distribution opportunities for a separate flat (and affordable) fee. [...] Each label within UMG will have its own package of offered services, providing many different choices for the discerning musician. Price said that the individual labels will set up portal sites that will outline what they can do for artists, like finding a similar band to open for you at your next show. “The labels are going to do this without pre-signing or tying down the artist,” (first services should open-up around October 2009)
So now artists have the possibility of signing themselves to a major record label. Historical indeed.
Actually UMG and Tunecore have been in partnership since last year – Tunecore bands have the possibility of ordering mastering sessions from Universal’s studios for only $50 a song. Forum discussion confirmed that the quality was pretty amazing for the price. But this new deal is something else. What does it all amount to for both the artists and UMG’s labels? Well I haven’t been able to find the catch yet and I find myself seduced by the greatness of the initiative.
Is this the model the established record industry needs to follow? Outsourcing its services and know-how to the indie market? Artist can now be DIY and DBSE (done by someone else), keep their rights, and have a steady foot in the door of big time players’ facilities and services. From Universal’s standpoint, such a deal amounts to one big A&R operation without the hassle of actually sending out scouts. If there is no blatant catch here, Tunecore artists will be working side-by-side with a major engaging in a healthy B2B fashion. Really sounds like a win-win.
So seriously, what’s the catch? Is there a possibility that there might be no catch? I have been so brainwashed and accustomed to pointing fingers at major labels that I feel there must be one. As cited above, this might be one the solutions we all need right now, because even in the event where a consolidated band gets approached by UMG to sign whatever sort of contract via this system, I have a tendency to think that the whole process would be different, that the exploitation could come to a halt. Why? Well for different reasons, and for me the most obvious one would be because otherwise this whole new relationship UMG will be developing with the indies would crumble. They would get smacked by music communities in not time if they were to abuse their rights. And they know it’s time for a change.
Although this is still business and not some care bear inspired scenario, and although all of this might only be wishful thinking, such a deal has the potential of re-instating mutual trust between majors, unsigned bands and the public, and this might as well lead to music of a more experimental nature to reach a new, long lost level of popularity and properity, since it will be the artists themselves that will intiate the financial risks.
So catch, or no catch?
good post. good observations. this is the future. this announcement was way under-reported. it’s the beginning of the beginning of the system that resembles pro sports. there have been other announcements, but this one was one of the smartest by a major.
Hi GigDoggy,
Yup interesting scenario. I’ve not paid much attention to the whole UMG / Tunecore thing, mainly because as you say they’ve been working together for a while now and its just an expansion of their services.
It will be interesting to see how some of the founding services of the internet shape up and what models they follow in the months to come. To a certain extent distributors have a lot of competition right now (especially with Watunes delivering tracks to iTunes for free).
Personally I don’t see UMG as a value add to the tunecore service, there are plenty of suppliers out there that can master your tracks, hire studios and all the rest at great prices to suit indies pockets, and by sourcing them yourself you usually get a better deal (and a more personal service).
For example using a good small company to do your artwork / print your CD cover usually gets you much more personal service and you wont have to worry about hidden charges if you need changes, (see the small print on the UMG cover design pages). I use this example as I see that Tunecore have a UMG based CD cover design service which seems to use templates, also throwing out creativity in the process….
As for artists signing themselves to a major label through this deal, I wonder what that actually means.
All Universal are doing in this instance is offering to franchise their brand name so you can say you are connected to Universal Records just by signing up to their tunecore service. Firstly I wonder how much the UMG brand is really worth any more in the current marketplace, and if you are going to try to leverage any credence by using the Universal name, surely this is going to be watered down by the thousands of Tunecore customers also using the same tactics. It won’t be worth a great deal as Universal will just become another digital distribution aggregator.
And the likelyhood of being signed by Universal through this new deal, well probably the same as before UMG partnered with Tunecore. The market conditions are the same whether its a deal directly to the label or through a third party, Universal didn’t just suddenly gain a bigger chequebook to sign more bands, and they certainly don’t need tunecore to feed the few A+R’s they have left.
Universal and other major record companies seem to have had their head in the sands for a while now, when they should have been market leaders in the new music world. This has severely dented the trust in their brands, and that’s what leaves so many people confused at the UMG/Tunecore linkup.
Time will tell whether value is really added in this partnership, or whether it’s just a way for Universal to add an indie revenue stream to their portfolio. Watch this space…
@bruce Yes, I too have had the feeling that this was under-reported, hence the time it took me to do a write-up on the matter. Thanks for passing by. I have been wanting to talk to you about Music Xray. I will most likely contact you soon via email.
@My Music Success
Hello to you too and thx again for the comment. I share you concerns and I believe you came up with some solid observations. Thing is, Majors still aren’t dead. Their image has certainly taken many blows, but they still have high-end professionals, facilities, labels, connections, promotionnal vectors etc. They still have the means.
When I say “This is the future”, I mean that this is, from my point of view, a probable potential future for the big media-conglomerates. 3rd parties will obviously still be present to stir up the competition.
What I like in the deal/idea is that it breaks down boundaries, it breaks down the obsolete, yet still established model that an artist has to give away some rights if he or her chooses to seek for financial support. This Tunecore/UMG deal spins that around some.
But as you so rightly noted, “Time will tell whether value is really added in this partnership, or whether it’s just a way for Universal to add an indie revenue stream to their portfolio.”
thx again.
GD
i view this as the majors following the “new, indie music model”. in my opinion playing catch-up to some degree.
“assuming the label is agreeable—for more marketing and distribution opportunities for a separate flat (and affordable) fee”
this is somewhat vague – i wonder what the cost is compared to CD BABY/Disk Maker’s new offerings and partnerships? and assuming Universal’s reach is greater than the “DIY” method, i wonder what the return on investment might be…
and didn’t Sony Red have something like this going on sometime last year.
i’d prefer the homegrown route. maybe a little more work, but i can’t help but think about the recent Amanda Palmer story
Hey Shane.
I just think it’s a good step forward, and yes I would definitely say the major’s have the longest arms in this monkey business.
But you are right to bring up the Amanda Palmer story. First off, it was roadrunner, who has been engulfed by Universal, that attempted to format her style and image – typical case of a big lablel having a typical, narrow-minded sissy fit.
In Techdirt’s review of the Amanda Palmer thing (http://www.techdirt.com/articles/20090623/2337095343.shtml), some commentators argue that without support of Universal (I d’ont know her sub-label) she wouldn’t of gotten such acclaim, or promotion. Which I kind of disagree with ’cause Amanda is just socially talented.
She slips in a particular category: she is outgoing and completely embraces social media. She acts spontaneously and intelligently with social tools. That attribute ain’t naturally given to all artists.
Then again I think it is important to note that Universal is comprised of dozens upon dozens of labels from all around the world. If I understood correctly, it will be those labels who will offer all sets of different services. UMG will just encapsulate and chaperon the whole thing.
So yes, I really believe that if they spin it the right way, this could be great for indies.
Maybe I’m way over my head here, but lets say a band decides to distribute its music in Australia. Maybe they will be able to “add that option to their cart” thanks to a distribution deal offered by one of UMG’s Australian counter-parts.
I don’t know about Red and Sony Music though. I’ll check that out.
thx
That smash-up logo cracked up everyone in the office, Gigdoggy, thanks!
You ask if there’s a catch: if there were, we wouldn’t have done it. I’m serious. We’re about the artist here. Universal had to agree to take no rights, no masters, no trademarks, no exclusivity, basically the whole TuneCore philosophy.
So we’ll build these portals, and of course, anyone can get distribution through them. Of course, WHY should someone use those portals? They could just go through TuneCore direct! So it’s going to be Universal’s job to ENTICE people to use their front door.
Right now, I have no idea what they’ll offer. A contest? Marketing? Whatever it is, if it’s compelling, they’ll get lots of people. If not, they don’t get what they are hoping for. Either way, the risk to the artist is ZERO. No one is forced to agree to anything they don’t want to.
Thanks for the thoughts and analysis!
–Peter
peter@tunecore.com
Hi Peter, and thx for stopping by.
I must admit that now I have a more profound understanding of all of this than this morning when I wrote the post, but I knew from the start that this was an artists’s initiative type of thing.
That’s what I like in this model – bands somewhat pulling strings in the major’s courtyard (to speak bluntly).
As mentioned in the post I am really backing you guys up on this one and think it’s a great idea, or at least has the potential to be one if UMG’s labels come up with something nice, fair and of value for bands.
A big mruff to you guys over at tunecore. You’re doing a wonderful job.
Rob
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Thanks
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