MixedContent

I just read David Gratten’s post about Nettwerk records. While most record labels just don’t seem to understand, it’s very refreshing to read about one that really does. I mean, they really, really get it. I was so inspired, I came up with a bunch of reasons why Nettwerk Records is the model record company for the future:

1) David Kusek, one of the authors of the future of music says: “The music company of the future will be based around the combination of artists and artist management, publishing, touring, merchandising, and recordings. The artist’s brands will drive the business, and the economics will make the financial risk more tolerable and the return on investment more predictable.” This describes Nettwerk’s business model perfectly.

2) They pay for legal fees of people being sued by the RIAA. “Suing music fans is not the solution, it’s the problem,” stated Terry McBride, C.E.O of Nettwerk Music Group. “Litigation is not ‘artist development.’ Litigation is a deterrent to creativity and passion and it is hurting the business I love,” insists McBride. “The current actions of the RIAA are not in my artists’ best interests.”.
Altruism aside, it’s also great PR move for the label and their artists.

3) They’ve released DRM free MP3’s on a 128 meg USB thumb drive instead of on a shiny plastic disk.

4) Nettwerk realizes that there are new markets for music that are just waiting to be explored, and they seem determined to get there. For example, selling video game music through a partnership with EA.

5) They’re willing to take chances with cool new technology. For example, they have signed a deal with Vancouver based music recommendation service Audiobaba. (I had an interesting talk with Michael from Audiobaba a few weeks ago, so I’ll write more on this soon.)

6) They have some pretty talented artists (Marketing budgets aside, this DOES actually matter after all.)

7) They’re Canadian! (And I’m not being biased simply because I am a Canadian too. Starting and running a label in Canada means that you have access to quite a bit of government funds, all in the name of promoting Canadian talent and culture. I believe that Nettwerk was a recipient of quite a bit of government grants in the early years.)

If/when I start my own label, Nettwerk will serve as the blueprint.