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NEWS

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10 Dec 06

Digital Music and the independent

record label



If a record label were to tell you that it had artists and albums selling on 5 of the 7 continents; a streaming music video footprint spanning across 60+ countries, 100+ networks and 10,000+ servers; music videos broadcast on 4 continents; digital distribution partnerships with 60+ online music e-tailers covering 60+ countries around the globe and releases being broadcast from London to Moscow, Boston to São Paulo and Sydney to Tokyo to Phuket…you’d probably say that was no big deal.  You would more than likely say that you’d expect those kinds of statistics from a record label.  And if that same label was to tell you it was a small independent label situated on the majestic cliffs of the geographically isolated Cornwall …would you have the same answer?  More than likely you wouldn’t. 

Aardvark Records would be the first to say it isn’t a special case.  What the directors of the company would say is they have worked ruddy hard over the past two years to establish an international label on a budget that major record labels would find implausible at best and horrific at worst.   And what is the secret of the label’s success?  Foresight, a forward planning strategy worthy of any five-star General and the use of digital media platforms both new and old.  The boffins at Aardvark would be the first to say that any independent label can achieve these results.  The real secret is not relying on gimmicks , but on good old fashioned knowledge.

There are rumours that the digital revolution has had its day.  Aardvark’s here to say the fat lady of digital media is far from singing.  She hasn’t even warmed her throat yet.  If anything, she’s quite happily sipping tea.  Market maturation and market decline are distinctly different animals. 

Recent wins for Aardvark include a digital video deal with the global online video entertainment network ROO as well as provision of videos to Google Video, Yahoo Video, YouTube, MySpace, iFilm, Reever, Singingfool and the specialist dance music video website EuroDanceParty. Another recent win has been the provision of music videos to the South American online music video channel Pump TV.  Online music video channels are big business.  While they may not receive advertising income on par with the likes of MTV, advertising revenues are on the increase for them.  In large part, that’s down to the audiences they draw in.  Millions of music lovers tune in online to watch their favourite videos and catch the latest video releases.  While some online broadcasters pay royalties and others don’t – their audience is certainly amenable to making music purchases online.  That’s the bottom line for labels like Aardvark.  It may be a lengthy process to encode videos to meet a variety of specifications from the various online video entertainment broadcasters.  The exposure a label's artists can receive more than compensates. Potential online sales levels can definitely reward the time and effort spent.

 

 

 



Aardvark's video and audio podcasts have also proven successful with an average daily feed view rate of 1,800 and an average daily RSS subscription rate of around 370.  Podcasting has been an excellent brand driver which, in its turn, has led to global exposure for the label, its acts and international sales revenue.

Developments in the digital universe have also allowed Aardvark to gain a sales foothold in traditionally difficult markets to enter: India, Korea, Taiwan, Japan and China

A recent win with mobile telephone download provider Halo has brought Aardvark releases to mobile telephones  in the UK.  Ringtone deals with Tokyo-based Toryumon, Brighton-based Trusted Media and US-based IODA will see Aardvark’s catalogue of releases available for sale as ringtones around the globe.  The interest for its releases has been driven by a combination of online video and radio activity as well as digital DJ pools and video pools. These activities have run alongside bricks and mortar activities covering radio, music television, DJ pools and video pools.  A deal with Footlocker, secured by Aardvark’s US video promotion agency Import Sound & Vision, has seen the majority of Aardvark’s videos broadcast across Footlocker’s entire North American retail chain. Other digital format delivery outlets have seen Aardvark’s dance music videos played in bars, clubs, malls and other public settings in North America, South America, Australia, New Zealand, the UK and Europe.

The growth of CD on Demand technology has been embraced by the label.  A deal with UK-based CD Kiosk has seen a large part of Aardvark’s catalogue available as CDs on Demand via the retailer Woolworth’s.  Discussions with the American-based CD on Demand firm VMS will see Aardvark’s catalogue available on its database for its CD on Demand network.  Digital platforms like CD on Demand provide a crucial solution for labels like Aardvark that have found the barriers to entry for the physical distribution of albums and singles difficult – or the costs of what they would have to give away in terms of rights and royalties too great. 

The re-positioning of Aardvark from a local record label to a branded international player was the brainchild of Alex di Savoia. di Savoia joined Aardvark in 2003 as its first director of marketing and promotions as well as its head of dance music.  He saw the value within Aardvark’s roster and set about to unlock its potential.  The brand's value is inherent in the slogan di Savoia created: 'music, unlimted' with a sub-branding slogan of 'united colours of sound'.

He admits that, at times, it was difficult going. For him, "It was a matter of where to start, exactly.  The label was completely unbranded and

 

 
 
 



overloaded with artists who weren't very strong. The artists that were strong were somehow lost amidst the overall number of acts.  My first task was to pare the label down from 17 artists down to 3 and then slowly build the label's roster of artists back up.  I was known for quite some time as ‘the hatchet man’”. 

This was followed by a period of re-building. “I knew the direction I wanted to take the label,” di Savoia explained. “I had the roadmap and the board understood the direction and what was required.  Everything was re-branded: the artists, the label and our ethos.  Everything changed from the way business was done to a re-design of the website down to the compliment slips and business cards. It was only when this process was complete that I felt the confidence to present the entire package to prospective B2B partners and the public. 

“Aardvark’s size dictated certain decisions.  We had to face the question every label like ours has to face.  Did we risk rather large sums of money – and the possibility of getting deeply in debt – to get singles picked up by the likes of MTV or BBC Radio 1?  And it is a risk.  I know small labels that have gone bankrupt trying to get genuinely great tracks played on Radio 1 and a good video picked up by MTV.  So the answer to that was ‘no’.  I knew taking the online and the digital route would yield the same results.  I was honest with the Board about the fact that it would take me longer to meet my objectives. The bigger picture was taking the label global rather than deploying financial resource to fight for market share in the UK. For me, it’s worth it when we receive worldwide sales.  And it doesn't hurt when our artists receive fanmail from all around the globe.” 

Digital is certainly a sound method of achieving a profile as well as generating sales.  Aardvark recently announced that it has been approached by the US-based booking agency, Fast Lane International, regarding handling the international booking for a number of Aardvark’s artists.   

Aardvark is a firm believer that the digital media age has the potential to transform an independent label.  Provided a label is willing to do the research, do the hard work and establish working practices which enhance digital media B2B prospects and sales.   

di Savoia finished by saying: “It is worth bearing in mind that online viewing and purchasing have matured.  The ‘anything can fly online’ days are well and truly over.  That’s a good thing.  Online viewers and purchasers are savvy.  They know what they want and they know where to get it.  They know what’s good and they know what isn’t…and they aren’t afraid to shout out about it if they are unhappy.  The quality of the service and the quality of the product had better be up to scratch.  Negative blogging can scupper a project more quickly than a bad press review."


   
Additional Information


bpm:tv (canada)
Fastlane International

Google Video
Halo
iFilm
MySpace
Nightlife Music Video
Promo Only

Pump TV
Reever
Roo TV

SBA Music
Singing Fool
Toryumon
Trusted Media

VMS
Woolworths

Yahoo Video
You Tube
   

For more information, contact:

 

Alex di Savoia alex@aardvarlrecords.co.uk

 

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