Indie labels concerned over major labels involvement in music distribution
Major vinyl distribution company, Utopia Music, has started to involve major labels in its finances, leading to concerns over industry monopoly.
Utopia Music specialises in the physical distribution of vinyl records and CDs to retail outlets. The company recently acquired Cinram Novum, previously the largest music distribution company in the UK, along with independent distributor Proper Music Group.
These acquisitions have brought Utopia Music to an estimated 70% share in the industry, making them the biggest company for delivering records to stores across the UK.
However, complications stemming from a warehouse relocation have adversely affected artists affiliated with independent labels. According to The Guardian, for instance, one large British indie label disclosed that one of its prominent artists failed to secure a position in the Top 20 on the charts.
Furthermore, stock related to a release scheduled for September encountered issues in being “temporarily unable to be located”, resulting in nine months of wasted significant financial resources.
A senior executive from the label said: “It put a crack through the middle of the campaign. It could mean a knock of 50% off sales.”
Many facets of the music industry have been on a mission to localise the landscape for a while, with organisations also seeking to regain ownership over cherished venues and stop them from shutting down.
For instance, Arts Council England offers grants of up to £40,000 to independent venues and promoters. Director of Music Claire Mera-Nelson said of the initiative: “We’ve seen venues around the country be able to renew their sound and lighting equipment, improve their changing facilities and toilets. We’ve also seen them being able to take some risks on the artists that they’re promoting so they can appeal to a different kind of audience.”
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