Labels going bankrupt? Or Armada monopolizing?

[crow]

http://trance.nu/v4/news/vandit-records ... mada-music

Seriously, this is one of the many labels Armada has "shared forces with". It gets me wondering whether the industry is losing money with record labels almost going bankrupt to the point they need to "merge" with a big record label like Armada, OR Armada is simply monopolizing the market. I think it's the first one.

Your thoughts?

[Fawzi]

Probably a bit of both...

Both sides will see positives from this... From his side, PvD and his team will only have to care about looking for and signing talent, leaving the business side to the Armada staff. Maybe the money they were making is simply not enough or not worth the hassle. This arrangement allows them to focus only on the music, and may help them actually, the way it does with Markus Schulz (Coldharbour), Andy Moor (AVA), Roger Shah (Magic Island), Push (Club Elite), etc...
Armada will profit by having another "big" label to its roster. It will take care of the business side like it does for the other labels, while the music side is being taken care of by none other than PvD. They will profit from sales (even though it's not much) and are able to include much more of today's stars of the trance scene.

Honestly, as long as it doesn't make a difference music-wise, I don't really care. Armada wouldn't have been able to keep all those big artists that sign talent to their label if they were treating them badly. Seems like artists like working for Armada, so Armada must be giving them the freedom and lets them choose the type of music they want to sign, without any restrictions, or else they would have left.

Anyway, I haven't been a fan of Vandit recently. They've released some bad tunes IMO, and I rarely test their new releases. Too bad for a label that used to release simply MASSIVE hits.

[Qulture]

i thought they were only coming together to release a couple of tracks , not to merge !!??

Havent been a fan of VANDIT for some time now ,and i must admit ARMADA are doing a good job on all aspects . So , maybe good things could come out of this .

[TranceFusion]

If it continues this way Armada will end up monopolizing the whole market.

[Raneem]

i don't care as long as they keep on releasing quality music

[crow]

Labels should shift their focus. They start up as businesses but with no definite structure. Their marketing is very limited and monotonic, their advertising remains the same, their gigs are the same, their album arts for their tracks are low quality, and their A&Rs are getting shittier by the year.

In my opinion, these labels need to start going mainstream. Like way too mainstream!

[Fawzi]

^An aggressive marketing campaign won't pay off for music record labels as long as illegal downloads exist. Marketing will just cost you some more money and make more people illegally download your stuff.

[crow]

Illegal downloading, just like you said, will always be there. However, look at Shady Records (Eminem's). It's one of the biggest labels out there and they make so much money. The reason other forms of music are so popular is due to the marketing and advertizing schemes of the music itself. Why is hiphop so loved? Because it reached the people's hearts with the words - regardless of what it means to many people here - and it had also been put out there with proper market targets. They know what people want.

If Armin, for instance, would go uber mainstream, then he would make 4 times what he makes now. His label barely makes money. I bet you he pays from his pocket sometimes. I may not be a business guru, but you can tell when an industry is falling apart or not. The same goes for deep/tech house and techno, and even other forms of EDM which INSIST on remaining underground. And then the DJs wonder why they don't make so much money from their music.

I simply think that these people need to be more business oriented rather than just love-for-music oriented IF they want to make good cash.This is only because illegal downloading exists.

And mind you, illegal downloading can be put to an end to a certain extend if online music shops had better deals. I still cannot believe we pay for each track. And the prices are still considerably out of range for many people ONLY BECAUSE it plays the perfect illusion that paying for each track is somewhat expensive. The marketing scheme has to change massively for everyone involved in the business.

[ziz00_909]

I think Illegal download of Electronic music..is somehow related to the fact that these DJs release multiple Albums/Compilations a year ..
while in other Genres they don't..and mostly not even one a year..which makes it appealing to buy that particular album when its released..
for an example i'd buy Enigma's New Albums everytime their released or like Crow mentioned Eminem's Albums.. or even Coldplay's Album.
but it's not the same deal with Armin's half a dozen albums/compilations a year..
and also as mentioned the prices are ridiculous high..and the track by track system is not that effective..
I think those labels should know better.

[crow]

Actually, it is different in other parts of the music industry. Mainly anything other than EDM. Check this:



Saw it on Digg.com this morning. Here's the link to the article:

As bad as the infographic demonstrates, the other sides of the music industry, especially the labels, are doing far more better!

[TranceFusion]

^ Not surprised by this... i laugh at the labels when they claim that fighting against piracy is for the good of the artist. It has always been for their own good...

[crow]

Yes, well a label is always focused on the profit rather than the music. In other words, it is simply the business model or gateway for the music to exist professionally and legally. Without labels, music would be malicious to everybody, any time, and anywhere!

Which is why I still think the EDM industry is facing a big issue that they are in denial with, which is bankruptcy. The only reason a label like Armada is doing so well is due to the money which Armin brings in from his tours. Or let's use a bigger example: Tiesto. You ever get those people who always respond to your comments by "yeah but he is a businessman!". It's true ladies and gents! He IS a businessman! The dude literally makes SHITLOADS of money! And frankly, his collabs with hiphop artists is generating money like no other EDM DJ or Producer out there. Forget the music. We're talking business here. We're talking marketing + advertizing. Not the whole shibang of love for music. That's something else.

[Fawzi]

^crow, you raise a good point when comparing Armada to Eminem's label... Yes you're probably right, he does make more money than Armin, and the music is way better marketed...

But maybe that's simply because the music is market-friendly, while EDM isn't, at least not all of it, not the part we're interested in. 1 out of 4 AvB songs get played on the radio. 4 out of 4 Eminem songs get played on the radio. And I don't think it has a lot to due with marketing, it's simply the differences in music.

People simply don't crave 7 minutes' worth of beats for 30 seconds of breakdown+climax (which is all they're interested in). They want constant "pleasure", vocals are a necessity, heavy beats, fist-pumping music, immediate gratification. And the music we are interested in maybe isn't suited for that.

Now I know perfectly well that commercial is not crappy music, it's just music, good or bad, that's been well marketed and available to bigger audience. If that's what it takes to save the industry, then I don't mind. But maybe the music itself is not suited to those marketing strategies that aim at spreading it everywhere.

[Qulture]

illegal downloading , is what hurts the edm industry the most . If it wasnt for the money they get from gigs and tours , it would have been a completely different situation . Thats why , most of the artists in edm , have full time jobs like regular people , and they produce , DJ on the side. The people who do edm for a living , are the superstar DJs , like Armin ,Tiesto , Sasha , Digweed , etc ... Those people know that they WILL get booked at least 2-3 times a week , and will keep generating income . at least for now.

and in the only way to increase popularity , income , sales , tours etc ... is to make more people listen to your music , in other words , try to be more mainstream ! Thats why Tiesto collaborates with Nelly Furtado , Diplo , Sean Kingston etc .. and thats why Armin releases sooo many vocal tracks , which are radio friendly , and then sends them to be remixed by popular producers , to be club friendly ...

Its is a business , and they are business men .