Indie Labels Are Now Heavily Dependent on Major Label Distribution…

June 17, 2012 at 8:37 pm Leave a comment

Source: Digital Music News

You don't need a fancy report to tell you this. Just look at what's happened to the so-called 'indie digital distribution' space for ample evidence of major label domination.  The Orchard now features a massive ownership share by Sony Music, INgrooves Fontana is substantially owned by Universal Music Group, and once-indies like IODA and Iris Distribution have been swallowed alive by the machine.     

Indie groups like A2IM will scream that they're still in control, they'll blast Soundscan and the majors for shady marketshare counting.  But according to a report just issued by the Consumer Federation of America and Public Knowledge, the fact that majors can get away with this creative counting proves they're in a position of power.  "We interpret the recent brouhaha over the calculation of market shares as a demonstration that the independent labels have failed to diminish the market power of the dominant firms," the report grates.  "We believe this dispute proves the continued importance of the majors, not their imminent demise. While independent labels have grown, they have been unable to escape from the domination of the major labels." 


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