Neon Gold and Avenue A Records have teamed up to create Futures Music Group, a tech collective of independent labels with an artist-first mentality.
Distributed through Virgin, Futures was co-founded by Neon Gold's Derek Davis (Charli XCX, Tove Lo, Marina & The Diamonds, Passion Pit, Matt Maeson) and Avenue A's Dave Wallace (Barns Courtney, Blossoms, Palace, Self Esteem) in early 2024. When the label's first release as Futures, Good Neighbors' “Home,” quickly went viral in January, the song quickly put the band on the map and served as a proof-of-concept for the Futures model. Perhaps the biggest debut single of any artist this year, “Home” was certified platinum in less than nine months.
The Futures roster also includes Phantogram, The Knocks, Barns Courtney, Palace and Mt. Joy, the latter of which was signed through a joint venture with the band's Bloom Field Records. (Good Neighbors' first EP, including “Home”, is also through Futures until the band's deal with Capitol/Polydor kicks in in January 2025).
Over time, Futures Music Group will grow to include more indie labels (and artists) under its umbrella. It also plans to create an in-house team for digital marketing, sync licensing, sales, content production and more that can be shared between the individual labels.
At Futures, artists sign licensing agreements, keeping primary ownership in the hands of the artists, and the distribution of royalties is kept fair between the label and the artist. In some cases, the split moves further in the artist's favor after certain profit thresholds are met. This allows for what Davies calls “maximum alignment of incentives” between the two parties and rewards the artist for success.
The deal's terms and options are “shorter and less onerous than most competitors,” Davies adds. “Our thing is if we do a great job, then hopefully people will continue to run and work with us,” Wallace says. “Keeping artists happy is the name of the game. We don't want to work with an artist who only works with us because of a contract. “There aren't many successful record campaigns that come from a relationship where the artist is unhappy,” adds Davies.
The company also wants to do right by the songwriters. The label group has committed from now on to give points on every master to any non-producer and non-performer songwriter from the label's share. (Exact points of agreement on this are dealt with on a case-by-case basis).
Along with their commitment to artists, Davies and Wallace of Futures have also spent the past few years studying and investing in how new technology will disrupt the music industry. Davies, for his part, co-founded the start-up Medallion, which helped artists such as Santigold, Greta Van Fleet, Tycho and others create and gain direct relationships with their most passionate fans using web3 technology. The co-founders were also strategic investors in Big Effect, a digital marketing platform founded by Spotify and UMG alum Mike Biggane, and Notes.fm, a rights management platform from Stem co-founder Tim Luckow.
“We believe the future of the music industry has never been brighter for artists and the independent sector,” says Davies. “The industry has reached what we believe is the biggest inflection point in the history of the record label system as we move into a new music economy that rightly leans towards artist ownership. We believe there is a significant opportunity for a well-funded and resourced label group with a proven track record of delivering significant results for artists on independent terms, which is what we set out to build with Futures.”
The founding team includes: Davies (co-CEO), Wallace (co-CEO), Sarah Kesselman (CMO, general manager), Nikki Berger (COO) and Jeff Lynne (CFO).
from our partners at https://www.billboard.com/pro/neon-gold-avenue-form-indie-label-group-futures/