Still a Market for Aggressive Independents

As major recording companies claim more and more of the market, many in the industry think this is a great time for independent labels to become more aggressive.

“If anyone says it’s not possible to make records and sell them independently today, that’s just not true,” said Ahmet Ertegun, who founded Atlantic Records as an independent in 1948. “If they say it’s more difficult, well it was more difficult when I started out too. What it really takes is an understanding of the market. If you know what records to make and you know how to make them, you don’t need anything else.”

Said RCA Records president Bob Buziak: “As we see the last labels that have independent music eaten up by the majors, it will only spawn new labels. The future of this business will always be in the hands of the independent and small entrepreneurs.”

Added CBS Records president Thomas Mottola: “The majors are going to need the outside independents as a flow of new music. At a certain point there is only so much you can do inside a major and you always look to the outside labels and producers to get involved with.”

But not all independent record companies see their roles as developing artists for the majors. Gregg Ginn, co-owner of L.A.-based independent SST Records, insists that his label intends to remain quite separate from the large companies.

“What people forget is they can’t compete with what we do,” he said. “We take groups that begin as unknowns and build them up. Major labels are signing groups that maybe would have gone to independents two years ago, but we will sign the new groups that are still mysteries to the majors. We will always be ahead of them.”