MAJOR ARTISTS TAKE CD SALES, DISTRIBUTION AND DUPLICATION INTO THEIR OWN HANDS

By Ian Shaw

Independent CD/DVD manufacturer Disc Makers has launched a new division, Elite Artist Services, to help major artists who no longer want to be tied to a record label (think Radiohead, Nine Inch Nails and Tori Amos). The idea is that the manufacturing process, promotional efforts and both the physical and online distribution of music are covered in a cost-efficient manner, dramatically increasing revenue for the artists.

High-profile musicians disenchanted with the bureaucratic aspect of the music industry could find the distribution of their music through Elite a refreshing alternative, as there are no long-term contracts involved. “Our agreement is on a per release basis and no multi-year commitments,” says Elite vice president Jeff Epstein.

Included in Elite’s website is an interactive spreadsheet called the Artist Revenue Calculator that shows the monetary differences between going independent through them and staying with a record label. According to Epstein, it’s a great tool to “demonstrate the substantial income opportunity and profitability for a major artist going independent through Elite, in comparison to the significantly less lucrative venture of being signed to a major record label.”

The data shows that the average royalty rate of $1.41 per CD and $1.19 per album download for artists signed to labels is nothing compared to the potential profit of $7 per CD through stores and album downloads, as well as $11 per CD sold through the artist’s website, should they work through Elite.

Elite, according to Epstein, is an expansive venture, as it is “currently speaking and negotiating with numerous artists, across all spectrums of music, who want to discover that there is life outside the major labels.” However, the greater volume of album sales associated with being a part of a label could result in added financial benefits for artists in the form of performance-rights royalties from more extensive airplay, as well as more extensive touring schedules. The viability of this venture comes down to ideological synergy between artist and label, as well as overall profit margins. For an already established artist though, having more creative freedom and adding another zero to record revenues is a good start.

www.eliteartistservices.com