I've been thinking a lot about distribution

 Hi.

And now, my amateur perspective on things I've been reading about in the market.

Over spring break, I read "Sonic Boom: The Impossible Rise of Warner Bros. Records," by Peter Carlin. The book documents Warner Bros. Records' (now Warner Records) rise from Frank Sinatra's failing label, Reprise, to a market behemoth which at one time owned a plurality of market share worldwide. 

One of the key decisions which created this level of success was the creation of the WEA global distribution network by then EVP of Warner's music operations Joe Smith. Through this network, the guys in Burbank could easily print and distribute records to radio DJs and fans in key areas globally, allowing them to meet demand in real time.

Of course, the radio is magnitudes less important now than it was then, and digital DSPs are the name of the game, but I don't think controlling or having direct lines to distribution is any less important now than it was then, at least as far as making a hit is concerned.

I consider distribution to be defined as simply the means by which people are exposed to music, which today, means YouTube, Spotify, TikTok, Fortnite, etc. 

In my last post, I was thinking specifically about video games as a distribution platform with a growing significance towards sales, and I've only continued to get more bullish on this concept as a whole. Fortnite actually offers the ability to purchase tracks for use in-game, a remarkable shift away from our current model wherein every track play yields fractions of a cent. I'm curious whether this will mark any type of shift towards people paying for their music again. James Blake's semi-viral rant regarding how people think music is free now comes to mind.* 

* The counterpoint is that subscriber model streaming services continue to see subscriber growth (Spotify +17% YoY in 2023), and show no sign of slowing down. Music streaming actually going away seems pretty impossible at this point in time.

On a different note, more than 50% of the artists earning 10k+ a month on Spotify are from non-English speaking countries. This is a significant chunk of the market that is (decreasingly) underemphasized among major label groups' signing efforts.

The patch for this hole, it seems, has been an emphasis on distribution deals and in-house distribution channels. SME acquiring distributor The Orchard was one example of a highly successful move into the market of artists who are successful but not seeking a label contract, not ready for one, or not requiring the promotional services that they provide. On a less international front, these deal structures can also get labels ahead on developing relationships with artists who they predict will blow up, with the benefit of less financial commitment. Either way, with WMG now considering acquisition of Believe, who have a growing stake in the African and Asian distro markets, it seems like the globe is the current frontier.

Of course, this follows logically from the globalization of the star-making process. When a track blows up on TikTok, it is likely being fueled by fans from not just one portion of the world. With access to stronger global distribution and promotion networks, labels could hypothetically shop their smaller acts around the world to find untapped listeners, or better serve known listeners in these areas. Creating super-fans and what not. 

Hopefully this was at least a little bit interesting since it's the only thing I've been thinking about lately. Maybe once I start working again I'll realize that I'm completely off. Who knows!

Bye.

P.S.

Here are three great blogs belonging to three of my friends: OpStar, Divine Dagger, Yespeas 

Enjoy.