The music publishing industry has long been a battleground, with independent publishers often fighting against the overwhelming dominance of the majors. Companies such as Warner Chappell, Sony Music Publishing and Universal Music Publishing Group control vast resources and wield significant influence due to their connections to their respective major record labels, making it difficult for indies to compete.
Despite these challenges, independent publishers continue to embody the spirit of creativity and resilience, facing obstacles with unparalleled determination in the face of industry issues such as licensing and financial disadvantages, increasing competition and costs, fewer revenue streams, and others that threaten to push us out of business. Recently, these barriers have intensified, requiring a more dynamic and decisive approach from independent publishers. As we move into 2024 and look ahead to 2025, the reasons for our disappointment are pressing and undeniable.
In recent months, the gap between indie and major publishers has widened due to systemic issues and recent controversies. TikTok's licensing deals, heavily influenced by deals with major labels and publishers, have sidelined independent publishers, affecting our ability to effectively monetize our catalogs on a platform that has become critical to music discovery. TikTok's role in promoting songs and artists to the top of the charts and securing lucrative sync deals makes this marginalization particularly troubling. Independent publishers are at a disadvantage, either forced to accept less favorable deal terms or risk losing the opportunity to reach these audiences and, in turn, strain relationships with our record companies.
Similarly, the recent controversy over the Spotify bundle highlights the stark disparities between major and independent publishers. By tailoring its service offerings to lower engineering royalty rates, Spotify has given major publishers a significant advantage. While all publishers are aligned in fighting Spotify's move, major publishers, with their vast financial reserves, can more easily absorb the impact of reduced royalties. In addition, integration with their record companies allows their parent companies to negotiate recording rights deals that help offset losses on the publishing side. However, independent issuers operate on much tighter margins and lack the diversified revenue streams of their larger bonds. For us, every penny counts. A reduced mechanical rate is not just a cut. it is a threat to our very existence.
Beyond these specific cases, the challenges of 2024, including rising operating costs and intense competition in catalog acquisitions, have weighed heavily on independent publishers. Increasing catalog buyouts by major publishers, due to their financial strength and access to capital, have driven up prices, making it increasingly difficult for indies to compete. This trend not only inflates listing values to potentially unsustainable levels, but also concentrates power in the hands of a few dominant players, stifling diversity in the market. In addition, the rising costs of day-to-day operations, from licensing negotiations to administrative costs, are putting even more pressure on independent publishers, forcing some to consider selling their businesses, merging or even closing.
Despite these challenges, there are still reasons for independent publishers to be optimistic. The Luminate Midyear 2024 report shows that indie artists' market share has grown by an average of 1.76%, with the largest increase in the 500 million+ on-demand audio streams category, up 2.7% in 2023 to 9.9 %. Additionally, 62.1% of artists with 1 million to 10 million on-demand audio streams in the US are independently distributed. These two examples of many showcase the continued impact and growing influence of indie creators in the digital space. Advances in technology, especially AI tools, are providing new opportunities for music production, enhancement and metadata distribution, leveling the playing field for indie artists and creators. Organizations like the National Music Publishers' Association (NMPA), the Association of Independent Music Publishers (AIMP) and the American Association of Independent Music (A2IM) continue to advocate and support indies, ensuring we have the tools and knowledge needed for industry navigation. Additionally, the rise in syndication opportunities and revenue following the 2023 entertainment labor disputes offers independent publishers a growing source of income in a segment of the industry that, thankfully, remains a free market.
The way forward for independent publishers is clear: We need to come together and use our challenges to drive change. By channeling our collective frustration, we can fight for fairer treatment and greater solidarity in the industry. Far from being destructive, our anger can be a powerful force, leading India to recognize our power, stand up for our rights, and reshape industry. We can create a fairer environment for our songwriters by ensuring they are compensated fairly and contributing to a more balanced music industry. The time for complacency is over. it's time for indies to take action and secure our future, and the future of the songwriters who depend on us.
Marc Caruso is the co-founder and CEO of Los Angeles-based independent music publisher Angry Mob Music, with successful operations in publishing, music rights management and music production. During his 20-year career in music as an entrepreneur, composer, producer and Emmy-nominated music editor, Marc has been at the forefront of music publishing and rights management for film and television, and has been a constant champion for musicians and the rights of songwriters.
from our partners at https://www.billboard.com/pro/why-indie-music-publishers-get-angry-unite/
