Off The Beaten Path
Indie label heads reflect on the present and look into the future.
EPISODE IV: A NEW HOPE
Back in the early 90s, previously underground punk and "alternative rock" bands completely alien to the fans of Poison,
Motley Crue and Warrant crept up on their big-hair brethren and reached superstar success. MTV replaced scantily-clad,
big-breasted bombshells with scraggly youngsters jumping around and smashing their guitars into amps. Commercial
radio followed suit by unplugging the respirators of classic rock in favor of a new “modern rock” format. For the faithful
disciples of the underground scene who had spent the previous decade expanding the boundaries of rock and pop rather
than listening to Rick Dees Top 40 Countdown, Nirvana A.D. seemingly ushered in a new era of enlightened music listeners.
Realizing that Sub Pop wasn't the only one putting out music which favored creative songwriting over self-indulgent virtuosity,
average music fans began discovering such rogue outfits as Matador, Touch and Go, Dischord, Simple Machines, Teen Beat,
Mammoth, Zero Hour, Spin Art, Merge, Amphetamine Reptile, K, Drag City, and Epitaph. For these and the gazillion other
independent labels releasing music the labels just happened to like, the new interest in "alternative music” brought them
a healthy dose of commercial success.
EPISODE V: THE EMPIRE STRIKES BACK
1997 has arrived and the sky threatens to turn overcast in the indie-rock world. Everyone from
MTV to the Wall Street Journal predicts impending doom for all that is alternative. When faced
with flat major label record sales, dissolved interest in Seattle's self-pitying angst, the generic
mess of Better Than Bush blurring the lines between alternative and mainstream, the Chemical
Brothers and Prodigy's imminent attainment of Nirvana, and disappointing sales among a whole
slew of indie rock's most talented bands, even the most faithful fans have to wonder if their
beloved music may be heading for dark times. Mention two words: -- Spice Girls -- and indie
rock fans instantly shudder at the thought of popular music reverting to more superficial and
shallow times.
Consider this: the biggest challenge facing indie music labels today is selling records. The
statement seems as profound as saying the biggest challenge in basketball is putting the ball in
the hoop. However, it is quite significant for labels that used to be able to sell thousands of
records simply by stamping their name on a band. "When we started, out we could release a
record and based on the fact that it was a Spin Art record, we could sell 2000-3000 copies,"
says Jeff Price, president of NYC-based Spin Art Records. Mark Robinson, of legendary indie
pop outfit Unrest and head of Teen Beat Records simply cites "selling bands people have never
heard of before," as the biggest challenge facing his label.
The culprit? For a clue, just look in the glossary of an old high school economics textbook and
you will find the following terms: capitalism, free market economy and competition. Lesson 1:
Increased Demand Equals Increased Supply.
With the smell of money in the air, the major labels began rummaging through the indie
community’s backyard in search of their share of the alternative pie. A signing spree ensued as
the majors formed "indie" subsidiaries, small boutique labels that attempted to duplicate the
success of truly independent labels by buying indie credibility. The potential for alternative’s
commercial success even spurred on business-savvy pop diva Madonna to form her own
alternative music label, Maverick.
Meanwhile, the commercial success of underground bands and labels, inspired countless young
entrepreneurs to scrape some money together and put out a record. CMJ's incomplete directory
of over 1000 record labels is a small testament to the number of companies putting out music
nowadays.
Nowhere is the problem of selling records more visible than in the bleak state of retail. Indie
labels all note a significant decrease in the number of records purchased by distributors. "Before
we could ship five to ten thousand units, now it’s hard to ship just a couple thousand." says Ray
McKenzie, president of Zero Hour Records. Part of the problem is the abundance of music both
major and indie record labels are dumping into stores, music which hasn't always had enough
time to develop. "You have all these start-up labels and majors jamming records into stores, "
says Keith Hagan, publicity director for Mammoth Records. "Before you do that you've got to
have a story and most labels don't realize that." Even Gerard Cosloy, who now considers his very
successful Matador label a “dependent” rather than an independent (Matador recently inked a distribution
and ownership deal with Capitol Records), concedes that things are a
lot more competitive, especially when it comes to getting more visible shelf space. "Putting
records on display is a very expensive venture,” he says. “ We are very familiar with the concept
of spending money to make money but not with spending money to lose money."
The increase in the number of labels means there are also significantly more new releases each
week. For many labels this translates into fewer re-orders and second-run purchases. "Before
records had a longer life.” says Kristin Thomson who plays in Tsunami and runs the Simple
Machines record label. “When distributors have 20 new releases to deal with a week, they forget
about what they've sold before." Thomson cites their recent release of a Monorchid 7-inch that
quietly sold out the 1000 units they ordered in the first-run. On the second-run 300 copies were
ordered and only 100 were sold. (Take a look at Scratch's glowing review of
Monorchid's new CD, Let Them Eat...)
Compounding the problem is increasing conservatism among retail buyers. During its
commercial honeymoon, optimistic buyers packed their stores with alternative music of all
shapes and sizes. But shelf space for records selling below the No Doubt, Bush, Alanis level is
now precarious at best. "They are past the overstocking stage and are in the wary stage,"
Thomson explains. "They aren't as willing to take chances with unknown bands and will only go
with artists they recognize."
The potential of the Internet to move enough product to solve these problems is viewed a dim ray
of hope by most indie labels. "It's just another channel. It's not the salvation," states Zero Hour's
McKenzie. According to Jeff Price at Spin Art, the Internet will not be any hotbed of new music
activity and the primary benefactors of the Internet will be major label distribution. "Your average
Phi Beta Kappa Ding Dong is too lazy to look for new things,” he says. “I don't think people will
venture to discover new music on the Internet and the people who would, would've found out
about the music anyway." While Matador's Cosloy sees the Internet's benefits for small towns
that do not have a strong club scene, fanzines, or specialty record stores, he emphasizes the
need for real world outlets. "I think there is still something very important about going to a record
store, meeting other people, and hearing the music in the store,” he says. “I would hate to see
mom and pop record shops be replaced by the computer."
In response to the current climate, many labels are getting more selective about what they
release in order to concentrate efforts into those they do release. "It’s hard to do a good job with
too many releases. We would like to do more with less," commented Zero Hour’s McKenzie.
Many indies who have succeeded thus far at developing a solid base of supporters and fans now
find they have to do a little extra to promote, distribute, and sell their releases. "We seem to be
doing the promo thing a lot more. Unrest seemed like it used to get press by itself, but other
bands aren't like that," points out Teen Beat's Mark Robinson. "Every record we put out now we
are totally behind."
EPISODE VI: THE RETURN OF THE JEDI
Despite the challenges posed by competition and retail distribution, most indies feel that things
are only getting better. Early indications show that they may be right. In the first week of 1997,
independent labels as a whole surpassed the Warner/Elektra/Atlantic triumvirate in total market
share for the first time in history. "In a year filled with gloom and doom articles on the decline of
the music industry, there is a beacon of light emanating from the tenacious and diverse indie
sector," the National Association of Independent Record Distributors commented. (See
related story from 3/4/97 issue of Scratch)
So what will be the key to continued success for these indie labels? Fortunately, for their fans,
independents plan to keep doing the things that elevated them to where they are today. Getting
the most out of limited resources is something indies have learned to perfect. "Tons of labels
just throw money at crap," says Keith Hagan of how Mammoth excels at identifying target
markets and smart management of their money. Labels like Simple Machines have managed to
stick around by carefully nurturing great relationships with their fans, the media, and others in
the community.
Another key? Although majors are able to offer their artists money, wide distribution, access to
radio, videos and all of the other platinum perks, they still chase indies when it comes to artist
relations. "Majors don't understand the concept of development," says Spin Art's Price. Without
the resources of the majors, indies compete with the intangibles of personal commitment and a
genuine interest in developing artists. "We offer friendship and enthusiasm," Thomson says.
As far as guessing what will become the "next big thing", indies -- known as the traditional
spawning ground for next big things -- surprisingly don't give the issue much thought. "I've never
tried to find the next Nirvana," says Zero Hour's McKenzie. "I'm just looking for great songs."
Like Winnie The Pooh’s knack for finding things when he is not looking for them, indies always
seem to introduce cutting-edge music to the world by not caring about discovering it in the first
place. "I don't pay attention to any new genres or the next big thing. I'm more interested what
happens band by band," says Matador's Cosloy. "New sounds always develop organically."
Looking for the key to indie success? Mark Robinson lets us in on Teen Beat's secret: "I'm
pretty much happy just putting out music I like," he says. How's that for an answer?
So what about electronica's billing as the next big thing? Again these labels are not losing sleep
over the prediction and say they will not change the way they do business to cash in on the
electronica buzz. Most labels do seem to think, however, that the craze is currently more hype
than reality. "The people writing [about electronica] aren't the ones buying it. Anytime you have
a select group of people dictating the tastes of America it is flawed," Matador’s Cosloy says. "Its
very transparent for labels to be putting their hands on things they were ignoring a couple of
years ago," he says. Teen Beat’s Robinson adds, "I could never see music not having lyrics
being super popular. I don't think I can remember there ever being any popular instrumental
songs."
While this is a challenging time for indie rock labels, it is also a very exciting one. People
continue to complain about current radio offerings. America has yet to decide whether its fling
with electronica will be a long, healthy relationship or a one night stand. Many of alternative’s
traditional superstars already seem to be on their way down or on their way out. All of this puts
indies in a great position to shake things up. Each label has a string of up and coming artists and
new releases that they are very excited about. "We are working with our minor leaguers,"
Robinson says. Zero Hour’s McKenzie offers this prediction: "The larger organizations like MTV
and radio are starving for something new. They are so hungry to wake up their listeners that
they will pounce on anything. This can only be good for indie labels."
by Nat Soti
soti@i-cities.com
