30 THE VALUE OF A LABEL IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY IFPI GLOBAL MUSIC REPORT 2019 // STATE OF THE INDUSTRY THE VALUE OF A LABEL 31
My job, and that of everybody who works with me, is to do whatever it The Value takes to turn the vision of these strong artists into reality.
DERRICK AROH of a Label VP A&R, RCA Records
Jeremy Marsh, Chief Global Marketing Officer, ‘THIS IS AN ERA OF INVESTMENT’ with artists that change culture through bodies of Record companies are both the spark and the Recorded Music, Warner Music, says: “This is definitely an era of investment: investment in artists; work, and change lives in three minutes. engine, igniting and driving music, working They want to be challenged within the context to discover and develop artists around the investment in staff; investment in infrastructure. We’ve invested in companies and teams such as of fully-fledged partnerships with ground-breaking world and connect them to fans everywhere in artists. unprecedented ways. [major merch company] EMP, [youth media brand] A dominant feature of the return to growth UPROXX and [multimedia/production studio] The ‘I LOVE ARTISTS WITH STRONG IDEAS’ in recent years has been the expanded levels of Firepit – all of which increase the ways that we can Aroh says: “The artists that I love the most are investment record companies are making in their partner with artists.” artists that have strong ideas, a strong will and offerings to artists, in their people and in their Glen Barros, COO, Concord Music, talks of both a narrative that they’re not willing to give up. It’s global presence. Record companies are investing a “human and financial energy” returning to record easier for me to work with an artist who says, ‘I'm more than one-third of their global revenues, or companies, a new cycle in which resources become Derrick Aroh, Vice President, A&R, RCA not going to do that’, than with an artist who says, US$5.8 billion, in Artists & Repertoire (or A&R) dynamic and a contributor, not simply ballast in Records, says: “I think the most important thing ‘Okay, give me 800 things and we'll choose’. and marketing each year, to break, develop and a storm. He says: “You ally it with passion and it artists get from us isn’t just the manpower, but “My job, and that of everybody who works with support artists. becomes a major factor in helping connect artists manpower made up of individuals who really care me, is to do whatever it takes to turn the vision of Dennis Kooker, President, Global Digital with the widest possible audience.” about their careers. The reason people sign to us these strong artists into reality.” Business & US Sales, Sony Music Entertainment, ‘IT’S THE PASSION’ isn’t the size of the operation, it’s the passion we Konrad von Loehneysen, Founder, Embassy of says: “The most obvious impact the streaming- Not only has increased investment allowed record show them.” Music GmbH, makes the point that the power of a driven growth has had on record companies is companies to evolve their infrastructure and That passion is reflected by a commitment to record company can actually enhance the power that it has allowed us to be more aggressive with enhance their global footprints, it has also enabled an artist’s vision. Record companies want to work and influence of an artist. “It’s always a more investment, specifically to invest substantially the industry to empower the vibrant, passionate more in things that directly support artists.” people who are the bedrock of the business. Ole Obermann, Chief Digital Record labels provide artists with unique, unmatched support Officer Executive Vice President, Business Development, Warner Music, says: “The DNA at Warner Music means that everyone in Marketing & Digital Sync & Partnership Global Distribution the company is entirely focused Marketing & digital Sync and partnership Global distribution teams facilitate teams work with the artist teams deliver, manage on working for the artists on multimedia campaigns to agree partnerships and track the our roster. We want our artists that grow the artist’s with like-minded brands distribution of the to be able to focus on their art, presence online that reect their image artist’s music both to and oine. and connect with fans. physical and digital. so we take care of running the business. There’s a dedication to that goal that isn’t matched Artist by other players in the music ecosystem. Only a record label has that focus and capability and A&R Creative Teams Press & Publicity Global Reach the necessary belief to break and A&R signs an artist to a Creative teams help Press and publicity International teams help record label, which the artist develop their teams secure media accelerate the artist’s support artists.” provides creative and visual identity and coverage, radio and prole by bringing the commercial expertise, as collaborate on things TV appearances and artist’s music to new wellas nancial support, like album artwork and playlist spots for the territories, growing their to support the artist’s music videos. artist. global fanbase. music creation.
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follow her on socials, and so on. There are so many That amplification can come via a range of in- different touch points, and the job of the label is to house technologies, skills and platforms, all at the identify the mix that’s right for our artist and create artists’ disposal. Gracey gives some examples: “We a meaningful connection between artist and fan.” have video commissioners, stills commissioners; Gary Kelly, EVP/Chief we have designers who do Revenue Officer, Interscope everything from logos to a Geffen A&M Records, Universal complete range of campaign Music, highlights another factor The most obvious impact assets. Then we have the content in the new ‘much-more-than- the streaming-driven team: directors; producers; music’ content economy: “Artists editors; plus, a photographic are always on, and they are growth has had on studio and a recording studio. everywhere. We have mirrored record companies is that “All of which means we that approach as a company it has allowed us to be can do TV commercials, and have built up teams that can vertical videos, music videos, handle that volume on a 24/7, more aggressive with acoustic recordings, podcasts, truly global scale.” investment, specifically to voice-overs.” invest substantially more Record companies, then, ‘WE CAN AMPLIFY provide artists and managers THEIR STORY’ in things that directly with a suite of services, more Insight also plays a key role support artists. wide-ranging than ever before, in brand partnerships, with and then allow them to choose record companies able to DENNIS KOOKER what to utilize. The result is conceive and deliver career- President, Global Digital Business & US Sales, Sony Music Entertainment the ultimate combination of You can’t have a single ‘YOU CAN’T HAVE A SINGLE driving opportunities for absolute freedom backed by PLATFORM STRATEGY’ breakthrough artists and global truly global resource and power. platform strategy in today’s Gabriela Lopes, Senior Vice superstars alike. Bettina Dorn, Senior Director, Brand ‘THE PORTFOLIO OF WHAT WE PROVIDE world, because the holistic President, Global Insight, Universal Partnership Licensing, Warner Music Central HAS EXTENDED BEYOND RECOGNITION’ view of the consumer is key Music, says: “Our mission is to guide our labels and our artists Europe, says: “In a nutshell, we marry artists Patrick Mushatsi-Kareba, CEO, Sony Music to what we do as music through whatis an intricate with brands, but we can only do that by having Germany, Switzerland, Austria, says: “Telling an companies now. and ever-changing landscape, close relationships. We need to know the artists’ artist they should work with us because we can highlighting creative and personality and mindset, because only then do give them a certain amount of money, make their GABRIELA LOPES commercial opportunities based you get emotionally impactful branding, which is music available and roll-out some promotion, that’s SVP Global Insight, Universal Music on an in-depth understanding of the only kind worth doing, because consumers, nowhere near enough, and nothing remotely like market trends – how consumer especially millennials, are so selective when it a reflection of what we do in this era. If we limited successful relationship if the artist can really think behaviour is changing and how fans are interacting comes to media consumption. Data is now a hugely ourselves to those aspects, we’d be obsolete. freely about the music; all my artists have 100% with our artists.” important part of the role, giving us more insight creative control and they can have that because It is a discipline that is growing in importance (and into the people we’re targeting and the impact they don't need to worry about the metadata, complexity) as the idea of fans ‘just’ listening to music, we’re having. Partnerships have also evolved from the delivery of the records, the promotion and usually on the same device, often in the same locale, one-off deals to long-term relationships with a the marketing.” becomes more and more redundant. significant cultural impact to the benefit of artists Eric Wong, COO at Island Records, re-iterates Lopes says: “You can’t have a single platform and brands.” the importance of rooting all strategic thinking strategy in today’s world, because the holistic view Cassandra Gracey, President of 4th Floor and creative executions in the vision of the artist. of the consumer is key to what we do as music Creative, Sony Music’s creative department in the “Everything starts with the artist and with the companies now. UK, also stresses the value of not just close, but music, that’s what opens the door and that’s “A great example is Lady Gaga. If you’re a fan, fully-rounded relationships. She says: “We like why it’s important that everyone at the label has you’re into her music, but she’s a performer, so you the music, that's why they’re sitting in our office a close relationship with artists and managers. want to see her live, you want to see her audio-visual in the first place, but we want to know everything Each campaign needs to be bespoke and needs to content, you want to see her Netflix documentary, else about them: what makes them tick; where reflect who an artist is and what they want to say. you want to see her at the Super Bowl, her film, you they’re from; what their background is; all those Trust is where it all begins.” types of things. With that information, our insight In such an environment, strong relationships team helps identify the audience (and potential built on trust are developed, and are crucial in audience), work out which brands and what the modern music world. Fans are engaged by The portfolio of what we media platforms they’re currently caring and narrative, and by artists who share insights into talking about. their lives and lifestyles. provide has extended “Then we can help them amplify their story, This will only cut through, however, if it reaches beyond recognition. pick out the different things that just help flesh the right audience through the right channels – and out their character and give more for the audience then resonates truthfully when it hits. PATRICK MUSHATSI-KAREBA to latch on to.” CEO, Sony Music GSA
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‘THE LABEL MODEL CONTINUES TO Stu Bergen, CEO, International and Global EVOLVE IN ORDER TO BE AN INTEGRAL Commercial Services, Warner Music explains: A record company is truly PART OF THE SUCCESS FORMULA’ “Significant success, regionally or globally, Today, artists have more options and easier routes remains rare and elusive. It takes a combination invested in an artist. An than ever before when it comes to making their of great creative talent coupled with a passionate artist wants a partner who music available. At the workforce to cut really cares and is going to same time, however, through the tens of the landscape of thousands of releases put their time, their money, music markets globally Artists really benefit from each week. The label their energy and their is varied, complex having an infrastructure model continues to know-how into building and often highly evolve in order to be competitive. Record to support them, backed an integral part of the a career alongside that companies play a key by human resource and success formula. artist. role in helping them to expertise, that allows “Artists really navigate this. benefit from having GLEN BARROS genuine creative freedom. an infrastructure to COO, Concord Music support them, backed STU BERGEN CEO, International and Global Commercial Services, by human resource Warner Music and expertise, that allows genuine creative we’re very open to working with freedom. Artists should new partners to get the artists’ be able to focus on their art. They shouldn’t need voice across new platforms.” to worry about organising their tour, trying to get Warner Music’s Obermann media coverage in Germany, or running analytics signals the continued on their streaming figures.” importance of voice-activated It’s also worth noting the landscape into which a devices as a platform for fan single track is uploaded. Adam Granite, EVP, Market engagement: “I think we’re Development, Universal Music, says: “As we see a at a tipping point with voice- rise in DIY artists, there are just so many releases activated devices, we’re about to every week. There’s so much noise out there. Even “We still, of course, help get the music made see them improve exponentially for me as a consumer, there’s just too much music and get the music out there, but the portfolio - become more accurate and user friendly. They’re to get my head around. That’s when you need a of what we can provide has extended beyond great for discovering music while multi-tasking, label – to help an artist rise above, get noticed and recognition from 10, 20 years ago. We connect which benefits listeners and artists alike. People have a successful career. I’d say the value of a label, them with brands, we connect them with tech are already comfortable with them in their homes, in that regard, has never been higher.” companies, we can create their own platforms – and we’re just starting to see how they will be Joseph Cacciola, SVP, Global Research & their owned platforms, in fact – so there isn’t a used in cars, which presents a huge opportunity Analysis, Warner Music, says: “Here’s the thing: reliance on third parties to kick-start momentum.” for experimentation and growth.” what record companies can deliver is an army of Increasingly, record companies are seeking out Andreas Weitkämper, Managing Director, thousands of people constantly working on behalf new and innovative ways to connect artists with Domestic, Warner Music Central Europe, circles the of their artists, calling the local streaming services, their fans, this includes fueling investment into relationship back to the music: “[German rapper] with whom they have incredibly close relationships, technological developments. Bausa, for example, was making his new album and and saying, ‘Hey, what are you doing with this new Sony Music’s Kooker says: “A key part of our he was looking for producers all around the globe. record?’ And, in my view, that’s what really helps mission as a music-first business is providing the We asked him for his wish list and one of the names to gain impact on a global scale.” artist community with cutting edge technology he sent me was Jae5, from London. Barros of Concord Music concludes: “You can solutions and world-class operational capabilities “At the same time, he told me it would not be get financing, promotion, distribution, marketing, that support their creative growth and expand realistic to work with him because he’s so well PR, everything – all those services you can hire in. their opportunities to reach fans in the commercial booked and very picky; he had no ‘in’. I contacted But I think where record companies come into play marketplace. We do that by continuing to innovate Kevin Christian-Blair at Asylum Records/Atlantic, is that they are connected, these services come and evolve in-step with ongoing changes in and he connected me with Jae5’s manager within, I in one package and they come with experience.” technology and preferences for consuming music.” think, 30 minutes, and we had a session for him two He also believes that the concept of a team Universal Music’s Wong explains: “The world of weeks later. That’s the kind of network we have, (one company rather than a temporal collection music is the most powerful way of connecting with with producers, with songwriters.” of separate, but not necessarily culturally united, people on an emotional level. We continue to be at component parts) is one that brings more than the forefront of every new technology and platform logistical advantages to the table. “A record across the board for all opportunities. At Island company is truly invested in an artist. An artist wants a partner who really cares and is going to put their time, their money, their energy and their know-how into building a career alongside that artist.”
Pabllo Vitar photo by Fernanda Tiné Bruno Mars photo by Kai Z Feng