New Media and the Rise of the Independent Recording Artist

As major record labels flounder amidst the waves of another technology revolution, many independent artists are successfully riding the current of new media communications. Traditional mass media audiences have been in a free fall since 2005, and with it traditional record sales. Digital distribution, however, is steadily rising and expected to account for 25% of sales in the next year.

Where major record labels are struggling in the new media sector, new acts and independents are leveraging an increasingly level playing field. New media allows independent artists to reach their market without the premium priced marketing service provided by the major label. Big labels spend billions every year, but barely break even. Their traditional marketing strategies, targeting mass audiences, are costly and their market shrinking. And, the major labels are usually too far removed from the consumer front lines to read and campaigns too big to react quickly to shifts in the music market. Conversely, Indie labels are small and maneuverable and can re-direct strategies quickly. Indies dominate the new media sector and are positioned to more closely monitor the pulse of the market.

With the advents of social network marketing, independent artists can now effectively build and manage their fan base, and directly market to specific targets on a global scale. With the right marketing tools, they can develop their image, consolidate their fanbase, and position themselves to negotiate more equitable, non-exclusive record deals. Independent artists are also able to retain the rights to their work, whereas, under standard contract with a major label, the labels maintain the music rights and have the option to withhold release of any music an artists has recorded. The artist can be removed from public distribution without recourse.

Today’s musicians are much savvier about their rights, licenses, publishing, packaging, distribution, and marketing. Independent artists, with careful planning and budgeting, can keep marketing and overhead expenses down, yielding a much larger profit margin. They have proven they can get a better return on a careful budget, which has led many artists to start their own record label in order to retain artistic and fiscal control of their career.