Downloading

For one of my uni assignments I wrote a feature on downloading, I got a decent mark for it so I thought I'd share it on here. I wanted to focus on the small independent labels and how downloading effects them, both the negative aspects of it and what they're doing to use it to their advantage. Paul Savage, mastermind of the Punktastic website, and Tom Beck from Walnut Tree Records were kind enough to allow me some of their time.

Illegal downloading is killing the music industry. For years now major labels have been proclaiming this to all that would listen, but many feel unsympathetic towards such massive faceless corporations. It is those on the lower rungs, the fans that go one step further and release CDs by obscure bands that they love that are really feeling the effects as every sale counts to them.

To the owners of small labels it is a hobby, not a job. To see hours of their free time and disposable income disappear due to people downloading what they have released must be disheartening. So what drives them to go to all this effort when it would seem there are no rewards in it, and what are their views on downloading?

“I wanted to be more involved in the whole process of finding new bands, working out their releases, promoting the finished products etc. I was working on a different genre of music in my full time job and was falling out of love with music a little and wanted that to change,” explains Tom Beck of Walnut Tree Records.

Tom is in the unique position of not only running his own independent label, but also holding a full time job for one of the majors, Universal Music. Recently his employer announced plans to lower the RRP of their CD releases, hoping that this would result in an increase in sales.

“If you make a chart CD £7 in Tesco...people will buy it, that's considered a bargain for people spending £200 on their monthly shopping. It's a much more realistic price for a CD in my opinion. Universal still need to continue pushing out worthwhile talent at the same time. If they're putting out awful releases I don't think the price will matter as much.”

While Universal’s tactic to help boost their sales seems a pretty simple but logical plan, Tom is attempting to tackle it in his own way by offering his fans a little extra.

“I look to combat illegal downloading by offering better physical releases and more exclusive t-shirts, bundles etc to encourage someone to come out and buy something physically from me. It genuinely works with some people - but others are too far gone to even care about that.”

While Tom seems positive about his label, others that have been there and done that don’t share the same view. Paul Savage, founder of the website and community www.punktastic.com, started Punktastic Recordings back in 2004 but has since given up on the label.

“When we started in 2004 people still purchased physical CDs - our very first release sold almost 2,000 physical releases which for a new 'underground' label was a fantastic achievement. It kind of worked, we had a good five year run but it became a bit of a chore and outgrew a small hobby.”

It seems many small labels release music because of their love of the physical format, taking their time over special editions and vinyl and even cassette releases. But after originally being an advocate of the physical, it seems Paul has become a fan of digital. His last release, Punktastic Un-Scene 4, was a digital only affair. “Financially digital is much, much cheaper and easier for a label to cut costs as there aren't any,” he explains.

So with a drop in CD sales, and digital releases being cheaper for the small labels where exactly is the music industry going to be heading in the next few years?

“I see the music industry continuing to increase their revenue from selling bands as a whole product - rather than just selling the bands music. Universal in particular are very good at sourcing income from endorsements, product placement, retail tie ups etc. It's certainly the future, rather than just concentrating on selling a physical cd in a high street store,” reckons Tom Beck.

It seems the next few years in the music industry will certainly be interesting, as they continue to go through a transitional phase. No matter which way you look at it, digital downloads will be a much more important factor for labels, as well as producing something different to help drive physical sales. At the end of the day, the winner in all this will be the consumer.

Punktastic - http://www.punktastic.com

Walnut Tree Records - http://www.myspace.com/walnuttreerecords