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.”
Founded by Daniel Ek & Martin Lorentzon (pictured), Spotify is a refreshing breath of air after the partially major-label owned MySpace Music apparent unwillingness to treat indie labels as peer partners for its somewhat confusing music service.
Online music retailer, eMusic, this week announced the size of its global music catalogue has reached four million tracks.
The company now offers music from over 40,000 record labels, Music is sold on a subscription basis, in which users can download a set number of tracks each month in return for their money.
All music sold through eMusic is sold in a DRM-free MP3 format. However, major labels have so far refused to license their music through the service, which counts itself as the number two music service after iTunes.
Indie music labels have slammed the artist royalty scheme announced by Last.fm yesterday, with the global rights body for independent music (Merlin) issuing an all-points bulletin in which it suggested Last.fm has been guilty of using music illegally in the past.
“The Program announced today does not appear to offer any compensation for any past illegal use of repertoire. It is unclear to us whether or not the terms and conditions of the Program are intended to prevent master owners pursuing such compensation. Last.fm yesterday announced a scheme in which unsigned acts could join its Artist Royalty Scheme, under which they get paid each time a track of theirs is streamed and played. The scheme has been ongoing, and was already available to major and indie labels and their acts. While Last.fm’s move is to be welcomed, indie label body Merlin has also been attempting to negotiate a non exclusive blanket licence and a settlement agreement for previous instances in which Last.fm has offered music for streaming without permission. However, those negotiations stalled, “in part because Last.fm has not been willing to admit to or to compensate for any prior illegal use of music,” Merlin said.
Merlin represents over 12,000 indie labels who between them hold a US music marketshare of 8 per cent. Independent sector global market share 2006 is 27.5%, )source Music & Copyright, Jul 2007).