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Labels often have established logistics for merchandizing (including design, QC, fulfillment, etc etc), websites, digital distribution through the higher-end ch

Labels often have established logistics for merchandizing (including design, QC, fulfillment, etc etc), websites, digital distribution through the higher-end channels, physical distribution deals (that one is even more work to get set up), connections to producers, mixing engineers, mastering houses, studios and so on. There are a lot of resources in the industry that are not available to the public. You have to build those connections over years, in some cases decades. When promoters are doing things like trying to pay you in stolen blue jeans (love you, T.O.) it can help to have more people in your corner. The music industry is segmented, and man some parts are the Wild West. Total fun, but you will struggle to make enough for cab fare at times without support.

gen220 5y ago
Good insight! Let me zoom all the way out on the abstraction scale of what you said, and let me know if it makes sense. There are some segments of the music industry that are specialized, and capital-intensive or labor-intensive (merchandising, physical distribution, producing/mixing/mastering, studio access). The specialized segments would presumably not be able to exist or sustainably operate without a steady/predictable source of cash flow. The big labels are market makers, connecting talent to these specialized services, and taking a cut off the top of every D2C transaction, in the form of a special variety of IP-licensing. This results in a bimodal distribution of musician outcomes. If you're accepted by a big label, you fit into modality B, which is shifted far to the right. If you're indie, you fit into modality A, which is shifted fart to the left. If you stick it out in A, you keep a higher percentage of lower expected earnings. If you shift into B, you keep a lower percentage of higher expected earnings, and gain difficult-to-price assets in the shapes of fame, connections, and responsibilities. If this abstraction holds, it's kind of analogous to the differences between an indie hacker and a VC-funded startup founder? cool food for thought.
- 52-6F-62 5y ago
  Yeah pretty much! I like to think more dimension to that scale is possible, but unexplored. That’s what I’m working on figuring out myself. The degree to which you end up in B can differ a lot and depends on the nature of your agreements with whoever you get involved with and that can vary in a big way. We’ve all heard the stories of artists getting screwed out of their publishing rights even if they retain performing rights and all that. The music world seems less rigid to me, expectations are different. And personalities are very different. Maybe the software/tech crossover in electronic music is closer, but I have no experience there. I’m a relic. :)

gen220 5y ago

Good insight! Let me zoom all the way out on the abstraction scale of what you said, and let me know if it makes sense. There are some segments of the music industry that are specialized, and capital-intensive or labor-intensive (merchandising, physical distribution, producing/mixing/mastering, studio access). The specialized segments would presumably not be able to exist or sustainably operate without a steady/predictable source of cash flow. The big labels are market makers, connecting talent to these specialized services, and taking a cut off the top of every D2C transaction, in the form of a special variety of IP-licensing. This results in a bimodal distribution of musician outcomes. If you're accepted by a big label, you fit into modality B, which is shifted far to the right. If you're indie, you fit into modality A, which is shifted fart to the left. If you stick it out in A, you keep a higher percentage of lower expected earnings. If you shift into B, you keep a lower percentage of higher expected earnings, and gain difficult-to-price assets in the shapes of fame, connections, and responsibilities. If this abstraction holds, it's kind of analogous to the differences between an indie hacker and a VC-funded startup founder? cool food for thought.

52-6F-62 5y ago
Yeah pretty much! I like to think more dimension to that scale is possible, but unexplored. That’s what I’m working on figuring out myself. The degree to which you end up in B can differ a lot and depends on the nature of your agreements with whoever you get involved with and that can vary in a big way. We’ve all heard the stories of artists getting screwed out of their publishing rights even if they retain performing rights and all that. The music world seems less rigid to me, expectations are different. And personalities are very different. Maybe the software/tech crossover in electronic music is closer, but I have no experience there. I’m a relic. :)