In the wake of the collapse of Pinnacle, indie labels seem likely to redouble their digital efforts, industry insiders are saying now. Xtra Mile Recordings already offers on online music store and is offering 20 per cent off the price of selected items for the next few days.
Distributors of physical music are suffering in the current climate, with news yesterday that Pinnacle has gone into administration followed by new revelations that major label EMI is looking to exit physical distribution of its products altogether.
Seems the major is speaking with other major labels in the US with a view to letting go of its warehouses and distribution network there for a sum of up to $30 million. Instead of handling physical product in an ailing market, EMI will have its music ferried about the United States by a competitor.
Extremely bad news for some of the world’s leading independent labels as leading UK distributor, Pinnacle Distribution, has entered administration.
One of the UK’s leading independent distributors Pinnacle held a 3.8 per cent share of the albums market in the third quarter of 2008.
Indie music label association AIM today held an emergency meeting for impacted labels, urging members that should their label be, “distributed by Pinnacle it is imperative that you take steps quickly to protect your position as best you can.”