BY TODD MARTENS THIE I3ILLI3OARI)

BARSUi, RECORDS Josh O- FOUNDER Rosen The indie label executive talks about negotiating new revenue streams, striking a balance with downloaders and dealing with Death Cab for Cutie.

Josh Rosenfeld and Christopher Possanza formed Barsuk Records out of necessity. bad customer service for them. Grunge was all the rage in 1994 in Seattle, and the eccentric pop of Rosenfeld I am totally open to the idea that and Possanza's band, the Busy Monster, was out of vogue. But by the turn of the digital files should be sold in MP3 century, Barsuk had found an act that would far eclipse whatever success the Busy format. I understand why that Monster attained, and that would also force the two to quit their day jobs and run seems scary to people, but I don't Barsuk full time. buy the argument that the people Wave hello to Death Cab for Cutie. Its 2003 album, "Transatlanticism," sold 280,000 who steal music are just going to copies, according to Nielsen SoundScan, before the band left Barsuk for Atlantic. It find a way to steal it, and everyone was a move that was purely harmonious, as Rosenfeld, who runs the day -to -day op- else is going to pay for it. I think that erations of the label (Possanza oversees IT and production) was involved in the the group of people who will pay for band's negotiations with the major. And Barsuk will release the solo debut from it is constantly being eroded by the Death Cab guitarist /producer Chris Walla later this year. fact that the industry just seems to But there's plenty more to Barsuk than Death Cab for Cutie. The label resurrected continually teach consumers that the career of rock act Nada Surf, reached the charts in January with the odd pop of music is valueless. Menomena, signed psychedelic pop act the Starlight Mints and has a slow -building success story with the curious pop- meets -metal sensibility of Viva Voce. The last So is there a balance to be struck? band is currently opening for the Shins. We have started to stream our Here Rosenfeld discusses, among other things, his hopes for how indies can weather new releases on our site so peo- the rapidly changing marketplace. ple can listen to them before they buy them. I have no problem What was your pre -Barsuk era? Is Barsuk investigating other how technology and the industry with allowing people to sample day job? revenue streams? are interacting together -in full music. But I want to do every- I worked for this not -for-profit car- Those other revenue streams are view of music fans and music con - thing we can to help consumers diovascular research institution, definitely things we are thinking sumers-is that recorded music understand that quality is impor- and it was an infuriating experi- about and have been talking about should increasingly have no value tant. I hope the belief that qual- ence, working in the supposedly with our artists. There's obviously or significantly lower value from the As an ity is important will accrue to the philanthropic, not -for -profit a certain reticence on the part of consumer's perspective. I see the industry, label in a branding way. I don't world. I learned a lot from that job, artists to give up money that would promotional possibilities of sub- want to throw my hands up and about how large companies and otherwise be going in their pockets. scription services, and I see the say, "People aren't buying al- bureaucracies can be an incredi- Anyone trying to do these new promotional possibilities of ad rev- musicians bums and are only buying sin- ble frustration and an impediment model deals is finding there's a big enue- driven, free -download stuff. gles and music digitally." and labels As musicians and to progress. education process if you're going to But every time that a music fan gets an industry, tell an artist that money they would the recorded music they want and labels and show promoters and and show have to about mak- So it prepped you for the mu- normally be going home with they doesn't have to pay for it, or has to managers think sic business. need to pay a portion to you -just pay very little for it, it contributes to promoters ing every element about what they Exactly. I was fully expecting the because. We do profit splits with our the growing perception that re- do excellent and engaging and indie record label to be a not -for- artists, and I think that's a great con- corded music isn't valuable. and rich. Maybe that means there's a profit venture as well, but I at least ceptual model to add other revenue big cutback in the quantity of knew I would be my own boss, and streams into. If it's not Barsuk, I Is lifting digital rights manage- managers music that's released, but it's going a smaller organization can be nim- think it's going to be an independ- ment an answer? to have to become more and more ble and fun instead of oppressive ent label that figures out a viable The DRM problem in my view is a have to incumbent on all of us to provide and terrible. new model. But I'm not 100% cer- problem with portability. I don't greater quality. tain a new model is required. have any problem at all as a listener, We are at a moment in history think people But did the musician in you and certainly not as a rights holder, where there are still enough struggle with your newfound So the Internet hasn't scared you with the idea that there should be out there who care about music in about way. business duties? into rethinking your business? some security involved. I think that a deep We have an opportunity to keep them from sliding into the Absolutely. I was clueless how to run This last year was the first year the proprietary technologies and making a business in those early days. For where we've experienced anything the portability issues are the main group of consumers who think that our first deal with Death Cab, they other than phenomenal growth. In things that make consumers mad. music is not worth paying for. That every for hilariously insisted we change it be- the universe of record labels who Consumers understand that seems like the highest priority cause they knew it wasn't fair to Bar- are worried about the near -term ef- stealing music is illegal. But be- my label, much more than trying to element for how suk. It was an 80/20 profit split in fects of the Internet, we are proba- cause it's so annoying that they can figure out the newest trend kids want to get their music for free, their favor. I'm very idealistic, and I bly not the most worried. Our sales legally buy something but can't lis- engaging was very unrealistic about what a have been relatively buoyant. We ten to it where they want to listen and running there and putting all fair business relationship was. continue to operate at a profit. My to it, the issue gets muddied. It our stuff up and allowing them to concerns with the Internet are starts to feel like the security meas- an rich. continue to think of music as the How has that business relation- much more long term. ures themselves are the things that delivery system for the ads they have ship changed in the download My overarching concern about are wrong and are providing the to watch. -

APRIL 7, 2007 I www.billboard.biz I 23

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