Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain . Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries . Distribution (or place ) is one of the four elements of the marketing mix : the other three elements being product , pricing , and promotion .
91-513: Cuca Records was an American independent record label , of Sauk City, Wisconsin , United States, founded by James Kirchstein in 1959 and actively producing LP and 45 rpm recordings until the early 1970s. During this period, Cuca recorded and released primarily polka and ethnic music on LP but also issued other musical styles, including pop, rhythm and blues, folk, and traditional jazz. Most musicians recorded by Cuca were from Wisconsin or adjacent states. Consequently, Cuca's recorded documents represent
182-628: A record label . The distinction between major and independent labels is not always clear. The traditional definition of a major label is a label that owns its distribution channel . Some independent labels, particularly those with successful artists, sign dual-release, or distribution only agreements with major labels. They may also rely on international licensing deals and other arrangements with major labels. Major labels sometimes fully or partially acquire independent labels. Other nominally independent labels are started and sometimes run by artists on major labels but are still fully or partially owned by
273-414: A company's overall strategic vision and mission . Developing a coherent distribution plan is a central component of strategic planning . At the strategic level, as well as deciding whether to distribute directly or via a distribution network, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on
364-681: A couple of appearances from Kylie Minogue and a few releases on XL Recordings, the Official Independent Singles Chart Top 50 would be alien to anyone who remembered the indie chart from 1990. It is now more likely for grime, dance and K-Pop artists to be in the Top 10 than indie bands, with the chart of 20 November to 26 November 2020, having KSI and Craig David at number one with their BMG released single "Really Love", BTS at number two with "Dynamite" and AJ Tracey at number three with "West Ten". Apart from re-issues and oldies by people like
455-429: A diverse range of activities and disciplines including detailed logistics , transportation , warehousing, storage, inventory management as well as channel management, including selection of channel members and rewarding distributors. Before designing a distribution system, the supplier needs to determine what distribution channel to achieve in broad terms. The approach to distributing products or services depends on
546-521: A few years later decided to launch a 'new Virgin Records'. This 'Virgin2' was set up as V2 Music in 1996 with staff from Branson's company working on V2 at the same time as the V96 Festival (both record company and festival would use similar 'V' branding, as Branson could not use the full Virgin name for any projects involving music). This British independent label would be joined by other V2 Records around
637-554: A focused view of Wisconsin musical performance during these years. The Cuca studios recorded performers for commercial release on other popular record labels, as well. Its recording of " Mule Skinner Blues " by The Fendermen (Cuca 1003, rereleased as a 45 rpm on the Soma label ) rose to number five on the Billboard charts in 1960 and sold over a million copies, and its recording of Birdlegs and Pauline's tune, "Spring" (Cuca 1125, re-released on
728-717: A head office in Singapore which can be used by manufacturers outside the region to increase their regional market penetration and grow sales. Channel-switching (not to be confused with zapping or channel surfing on TV) is the action of consumers switching from one type of channel intermediary to a different type of intermediary for their purchases. Examples include switching from brick-and-mortar stores to online catalogues and e-commerce providers; switching from grocery stores to convenience stores or switching from top tier department stores to mass market discount outlets. A number of factors have led to an increase in channel switching behaviour;
819-433: A huge number of records (usually promoted by a 'front' of models-turned-singers and various rappers) and, in the 1990s, a UK arm which would eventually turn into hard house label Nukleuz , known for its DJ Nation releases. The dance music scene also proved beneficial to independent labels who compiled and marketed TV-advertised compilations, especially when Virgin teamed up with EMI to launch Now That's What I Call Music ,
910-407: A lot of its catalogue in order to please various anti-monopoly and merger commissions or trade bodies, after buying the large part of EMI ( Parlophone ) that UMG was not allowed to keep hold of after acquiring the remainder. In 2016, Radiohead 's back catalogue was sold to Beggars (XL Recordings) , Chrysalis Records was sold to Blue Raincoat Music (now including recordings by Everything but
1001-529: A massive $ 3.4 million record deal, all which ended when Mimran's father, Jean Claude, cut finances. In the end Bowie's Savage album, Black Tie White Noise only just made the US Top 40 albums chart (but was a number one in the UK for Savage's distributor BMG via their Arista label) with Savage Records being a record label whose 'story' Telstar and Sanctuary would follow to a lesser extent. One independent record label who
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#17328699552051092-664: A negative way, WEA set up Korova in 1979 for Zoo Record's Echo & the Bunnymen , with Zoo Records being the Liverpool-based label of Bill Drummond and David Balfe). The term " alternative " was increasingly used to describe artists, and "indie'" was more often used to describe a broad range of guitar-based rock and pop. The "explosion" of the dance music scene in the mid- to late 1980s found labels such as Warp , Coldcut's Ahead of Our Time and Wax On Records set up. In Italy production teams like Groove Groove Melody and
1183-567: A nightclub in South London, before it became a record company). Originally AATW would focus on singles and would issue a compilation album once in a while as a tie-in with a local EMAP-owned radio station such as 97.4 Rock FM in Preston, Lancashire (Rock The Dancefloor - All Mixed Up), while the Ministry of Sound moved into compilations quite quickly with the release of their Sessions series . Over
1274-478: A number of factors including the type of product, especially perishability ; the market served; the geographic scope of operations and the firm's overall mission and vision. The process of setting out a broad statement of the aims and objectives of a distribution channel is a strategic level decision. Strategically, there are three approaches to distribution: Summary of strategic approaches to distribution In consumer markets, another key strategic level decision
1365-407: A number one hit that would see CBS and WEA (the future Sony BMG and WMG) move into the market with their rival Hits compilations and Chrysalis and MCA team up for the short lived Out Now! brand. Morgan Khan's StreetSounds/StreetWaves was the first independent company to run up a number of hits in the UK album chart with a run of various artist dance music collections and started off business in
1456-546: A powerful channel member may coordinate the interests of the channel for personal gain. Territories are often seen as a source of conflict, sometimes because boundaries are only loosely defined. American building materials supplier Johns Manville noted in the years before the US entered World War II that distributors needed support in a range of practical areas if they were going to be successful in connecting with housing developers, and instituted "Housing Guilds" which brought together
1547-428: A risk leading distributors to move their business to other supply lines. Channel conflict can arise when one intermediary's actions prevent another intermediary from achieving their objectives. Vertical channel conflict occurs between the levels within a channel, and horizontal channel conflict occurs between intermediaries at the same level within a channel. Channel conflict is a perennial problem. There are risks that
1638-501: A similar marketplace to their compilations partner, the original BMG company. In the 2010s, due to platforms such as Bandcamp and SoundCloud, a number of the larger indies moved away from signing unknown acts instead acquiring back catalogues and working with 'heritage acts' (for example, those popular in a pre-digital age). New independent BMG , which had been spun-out of the Sony BMG joint venture that included Arista and RCA, ended up with
1729-412: A single organization uses a variety of different channels to reach its markets, this is known as a multi-channel distribution network. In addition, online retailing or e-commerce is leading to disintermediation , the removal of intermediaries from a supply chain. Retailing via smartphone or m-commerce is also a growth area. The firm's marketing department needs to design the most suitable channels for
1820-512: A small but loyal audience. They relied less on mass sales and were able to provide artists much more opportunity for experimentation and artistic freedom . In the late 1940s and into the 1950s, the American music business changed as people began to more quickly learn the industry. Several companies set up their own recording studios , and the number of label owners began to increase. Many of these owners realized that whichever label first publishes
1911-502: A song is legally entitled to receive compensation for every record sold. Jazz musicians pioneered a new subset of independent labels, companies operated by the artists themselves. Following the original pioneers of the music industry, many new labels were launched over the following decades by people with industry experience. From the 1940s to 1950s, R&B indie labels such as Savoy, Apollo, King, Modern, Mercury, Imperial, Specialty, Red Robin, Duke and Vee-Jay Records were founded. During
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#17328699552052002-457: A specific genre , and the chart featured a diverse range of music, from punk to reggae , MOR , and mainstream pop , including many songs in the late 1980s by artists like Kylie Minogue and Jason Donovan on the PWL label. Even though PWL 's releases were mainly Hi-NRG -influenced disco-pop the label was independently distributed and did have a music fan ( Pete Waterman ) at its helm, of which
2093-501: A valuable marketing tool (especially when targeting readers of the NME, Select and various student publications) and so the Britpop-era gave rise to the idea of the 'fake indie'. The 'fake indie' would be a record label owned by a major company but whose distribution did not go through the parent company's distribution arm, going through an independent in order for those records to be eligible for
2184-403: Is a challenge to this orthodoxy: George McKay's argument in the article 'Was punk DIY? Is DIY punk?' that, because it relied on existing commercial record manufacturing companies, [n]o punk band ever made its own singles . Further, only recently has the early 1970s pub rock scene has been re-evaluated by cultural historians and in rock documentaries such as Sky Arts' Trailblazers series, with
2275-564: Is co-created by all the players within the distribution chain, including the value created by customers themselves. This emphasis on value-creation is contributing to a change in terminology surrounding distribution processes; "distribution networks" are often termed value-chains while "distribution centers" are often termed customer fulfillment centers . For example, the retail giant Amazon , which utilizes both direct online distribution alongside bricks and mortar stores, now calls its distribution centers "customer fulfillment centers". Although
2366-481: Is known as a zero-level distribution system or direct marketing . A level one (sometimes called one-tier ) channel has a single intermediary. A level two (alternatively a two-tier ) channel has two intermediaries, and so on. This flow is typically represented as being manufacturer to retailer to consumer, but may involve other types of intermediaries. In practice, distribution systems for perishable goods tend to be shorter - direct or single intermediary, because of
2457-629: Is often referred to as indie music , or more specifically by genre, such as indie hip-hop . Independent record labels are small companies that produce and distribute records . They are not affiliated with or funded by the three major records labels . According to SoundScan and the Recording Industry Association of America , indie labels produce and distribute about 66% of music titles, but only account for 20% of sales. Many musical artists begin their careers on independent labels, hoping to further grow their career into signing with
2548-449: Is whether to use a push or pull strategy. In a push strategy , the marketer uses intensive advertising and incentives aimed at distributors, especially retailers and wholesalers, with the expectation that they will stock the product or brand, and that consumers will purchase it when they see it in stores. In contrast, in a pull strategy , the marketer promotes the product directly to consumers hoping that they will pressure retailers to stock
2639-561: The 13th Floor Elevators and began distributing releases from local rock bands. In the United Kingdom during the 1950s and 1960s, the major labels EMI , Philips , and Decca had so much power that smaller labels struggled to establish themselves. Several British producers launched independent labels, including Joe Meek ( Triumph Records ), Andrew Loog Oldham ( Immediate Records ), and Larry Page ( Page One Records ). Chrysalis Records , launched by Chris Wright and Terry Ellis ,
2730-496: The Insurance Distribution Directive in 2016 to enhance a level of harmonisation in this market across EU member states. Typical intermediaries involved in distribution include: A firm can design any number of channels they require to reach customers efficiently and effectively. Channels can be distinguished by the number of intermediaries between producer and consumer. If there are no intermediaries then this
2821-558: The Mills Music Library at the University of Wisconsin–Madison . Independent record label An independent record label (or indie label ) is a record label that operates without the funding or distribution of major record labels ; they are a type of small- to medium-sized enterprise , or SME. The labels and artists are often represented by trade associations in their country or region, which in turn are represented by
Cuca Records - Misplaced Pages Continue
2912-581: The Official Charts Company when he released Weltschmerz on 25 September 2020, an album self-funded, marketed and distributed from his home in Scotland. As he did not partner with a record label like BMG, he missed out on a top ten album chart placing when early sales revealed that he would have been number 2 on the UK midweek charts behind that week's chart topper, the Partisan-signed band IDLES. On
3003-520: The Vee-Jay label) rose to number 18 on the rhythm and blues chart. Other musicians recorded by Cuca include bluesman Earl Hooker , the pop group Corporation, country musician Pee Wee King , and jazz musician Doc DeHaven. Cuca, which adopted the slogan "World's Largest Line of Old Time Music," is known for the host of polka and ethnic musicians it recorded including Alvin Styczynski, Verne Meisner , Syl Liebl,
3094-541: The peak body for the independent music industry is the Australian Independent Record Labels Association , known as AIR, representing about 350 members as of 2019 . A 2017 report commissioned by AIR, titled AIR Share: Australian Independent Music Market Report , was the first market analysis of the industry in Australia. It showed that indie labels represented 30% of revenue generated by
3185-502: The post-war period in the United States . Disputes with major labels led to a proliferation of smaller labels specializing in country , jazz , and blues . Sun Records played an important part in the development of rock 'n' roll and country music, working with artists such as Elvis Presley , Carl Perkins , Johnny Cash , Jerry Lee Lewis , Roy Orbison , and Charlie Rich . These independent labels usually aimed their releases at
3276-452: The 1960s, rock label Elektra, R&B labels such as Motown, Stax records released singles and albums. A noted success was that of comedy artist Tom Lehrer , who sold more than 350,000 copies of his 4 albums on his own label, Lehrer Records, by the mid-1960s before moving publishing to Warner Bros. Amidst the advent of the psychedelic revolution independent record labels such as International Artists geared their attention towards bands like
3367-513: The 1980s. Early independents of the 1970s included labels such as MAM Records , set up by the Gordon Mills' Management Agency & Music company. However MAM, like many of the small independents in the United Kingdom ended up signing a distribution deal with a major to remain viable, with MAM's records being licensed and distributed by Decca until it was sold to Chrysalis. For many years,
3458-658: The 1990s would see the founding of two independent companies who would go on to chart numerous dance music collections in the new compilations album chart, Blackburn-based All Around the World (AATW) and the Ministry of Sound . Both All Around the World/AATW and the Ministry of Sound would be founded in 1991, the former by Cris Nuttall and Matt Cadman, the latter by James Palumbo , Humphrey Waterhouse and Justin Berkmann (though initially as
3549-579: The Australian recorded music market, and that 57% of independent sector revenue was from Australian artists, which put the Australian sector in the Top 10 global list of mainly English-speaking indie music markets, according to then CEO of WIN (Worldwide Independent Network), Alison Wenham. (By comparison, the US indie market had a 34% share while the UK had 23%.) The report valued the Australian recording industry as worth A$ 399.4 million , sixth largest music market in
3640-547: The Disco Mix Club (DMC) for their Hit Mix series. Coming before the Acid House-era the first Hit Mix album in 1986 still had a large amount of pop hits from mainstream chart stars like Kajagoogoo, Kate Bush and Nik Kershaw, but Paul Dakeyne & Les 'L.A. Mix' Adams mixed 86 tracks onto four-sides of vinyl, while follow-up releases would start to feature more house tracks by people like Krush and Nitro De Luxe. The start of
3731-597: The FPI Project would make and release Italo dance/piano house records under many pseudonyms and license them individually to various record labels around the world (such as Beggars' Citybeat label). Instead of going down this one-by-one deal route, Cappella 's Gianfranco Bortolotti set up Media Records in Brescia, northern Italy to release his 'commercial European dance music', a set-up which included fifteen studios featuring various production teams working almost non-stop on
Cuca Records - Misplaced Pages Continue
3822-515: The Girl , Athlete and Cockney Rebel ), while the rights to albums by Guster and Airbourne went to Nettwerk . In 2017, WMG went on to sell the catalogues of a number of other artists to independent record companies, including Domino ( Hot Chip and Buzzcocks ), Cherry Red ( Howard Jones , Dinosaur Jr. and Kim Wilde ), Fire ( The Lemonheads and The Groundhogs ) and Because Music ( The Beta Band and various French acts). Apart from
3913-717: The Goose Island Ramblers, John Check, Jerry Goetsch, Roger Bright, and the Edelweiss Stars. Citation Records was founded as a division of Cuca. It signed Paul Stefen and the Royal Lancers, who achieved local success with many of their singles, including their cover of The Crickets ' " I Fought the Law ". The Cuca Records Collection forms part of the Wisconsin Music Archives , a non-circulating special collection in
4004-537: The Official Independent Albums Chart Top 10 for 8 October, IDLES would be number one with Ultra Mono with acts from the 1970s, 1980s and 1990s taking up a further seven slots (including compilations from acts like Slade and new albums from people like Hüsker Dü 's Bob Mould ). According to Korean newspaper Kyunghyang Shinmun , K-pop company Big Hit Entertainment had revenues of 484 billion South Korea won ($ 436 million US dollars) for
4095-471: The White Stripes and Arctic Monkeys, the nearest to a new indie band hit is pop guitar band McFly at number 30 with their song "Happiness", only charting after a special called "McFly: All About Us" was broadcast by ITV on 14 November 2020. After having his own independent record company in the 1990s which charted a number of releases in the main UK charts, prog rock singer Fish decided not to sign up to
4186-562: The attraction of creating independent labels for the genre. MF Doom 's album Madvillainy sold over 150,000 copies, making it Stones Throw Records highest selling underground album. In 2004, Telstar Records went bankrupt in the UK after giving Victoria Beckham a £1.5 million record deal. Like Savage Records a decade earlier Telstar did not stick to their niche (they started off as a compilations label - similar to Ronco and K-Tel - before signing children's TV stars and dance acts to their XSRhythm and Multiply labels) and tried to operate in
4277-404: The bands got bigger the releases ended up going through major distribution channels like Arvato (its also worth pointing out that BMG would be seen as being one of the largest independent record companies of the 21st century after Sony BMG was dissolved). Richard Branson sold the independent label he co-founded with Simon Draper and Nik Powell ( Virgin Records ) to Thorn EMI in 1992 and
4368-408: The case of Factory, one of Tony Wilson's beliefs was that "musicians own everything, the company owns nothing", which caused problems for the firm when it was going to be taken over by Roger Ames' London Recordings (a 'boutique' semi-independent label which followed Ames from Polygram to Warners when he became CEO). London Recordings did not have to buy Factory out right because the artists owned
4459-423: The catalogues of Echo , Infectious and Sanctuary (the biggest independent record label in the UK before it went bankrupt), while Cherry Red Records , who had a few 'heritage acts' like Hawkwind on their main label, were mainly concerned with their re-issue labels such as 7T's Records (1970s music), 3 Loop Music (indie music) and Cherry Pop (mainly chart pop from the 1980s). From 2013, Warner Music had to sell
4550-494: The company is sometimes excluded from various lists of 'greatest independent labels' due to its association with Island Records in the 1980s (though ranked at number 7 on the NME's list from 2015). In the United States, independent labels such as Beserkley found success with artists such as The Modern Lovers . Another factor that came to define independent labels was the method of distribution, which had to be independent of
4641-796: The distributor (as the materials supplier), design services, sub-contractors, local realtors and housing financiers. Laurence C. Hart refers to the extensive development of these guilds and the "Training Schools" which they operated, converting these into a radio-based program from 1942. Hart, who worked for the supplier, put this experience forward to the American Marketing Association as "an outstanding example of manufacturer-distributor collaboration on an industry-wide basis". Companies wishing to grow through sales to new markets may need to identify and develop relationships with local distributors, for example to support export to new markets. In southeast Asia , for example, many distributors have
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#17328699552054732-512: The end-user, the consumer. This is mostly accomplished through merchant retailers or wholesalers or, in the international context, by importers. In certain specialist markets, agents or brokers may become involved in the marketing channel: for example in the insurance sector, the European Union has noted that "insurance and reinsurance intermediaries play a central role in the distribution of insurance and reinsurance products" . The EU introduced
4823-423: The firm running TV channels in the 21st century based on Clubland and Universal's Now Music brands. Also in 1991 Rough Trade Distribution went bankrupt, causing a number of indie labels to stop trading (including Rough Trade itself and - indirectly - Factory, who had already spent a large amount of money on various projects such as their headquarters at Fac251 ) and others to be sold off in part to majors. In
4914-402: The firm's products, then select appropriate channel members or intermediaries. An organization may need to train staff of intermediaries and motivate the intermediary to sell the firm's products. The firm should monitor the channel's performance over time and modify the channel to enhance performance. To motivate intermediaries the firm can use positive actions, such as offering higher margins to
5005-490: The first annual coordinated celebration of independent music across the world, for which the Australian Independent Record Labels Association created a list of the greatest independent records of all time. After Wenham's departure, WIN's director of Legal and Business Affairs, Charlie Phillips, was promoted to the leadership role, named as chief operating Officer. He would report directly to
5096-506: The first three quarters of 2020, a period which did not include the release of the Billboard album chart topping BE by BTS, but did include the period when the label bought into Han Sung Soo's Pledis Entertainment . In October 2020, Big Hit Entertainment floated on the Korean stock market with founder Bang Si-hyuk giving the members of BTS shares in the company and his stake in Big Hit making him
5187-413: The following decades, album brands such as AATW's Clubland and Floorfillers or the Ministry of Sound's The Annual and Euphoria (with the latter brand picked up from Telstar) would turn-up in the compilations top 20 so regularly that the majors became interested, with Sony taking over Ministry of Sound's record company and AATW getting into a joint-venture with Universal Music TV, which ended up with
5278-432: The general consensus was that the punk rock movement was the main turning point for independent labels, with the movement's do-it-yourself ethos creating an even greater proliferation of independent labels. Scholars of punk from Dave Laing (1985) to Matt Worley (2017) have consistently argued that independent labels were, along with self-produced punk fanzines, key to punk's influential DIY heart. Worth noting here though
5369-406: The genre being given a more prominent role in music history than it had. The pub rock scene included labels such as Chiswick Records and Stiff Records , the latter being a company known for rude slogans, bizarre releases (such as The Wit And Wisdom Of Ronald Reagan ) and tours by train. Even though Stiff Records released the UK's first punk single, ("New Rose" by The Damned on 22 October 1976),
5460-400: The growth of e-commerce, the globalization of markets, the advent of category killers (such as Officeworks and Kids 'R Us ) as well as changes in the legal or statutory environment. For instance, in Australia and New Zealand, following a relaxation of laws prohibiting supermarkets from selling therapeutic goods, consumers have gradually switched away from pharmacies and toward supermarkets for
5551-423: The indie chart. Acts promoted this way initially included Sleeper on BMG's Indolent Records and Echobelly on Sony's Fauve Records. However, at this point its worth noting that Sony owned half of Creation Records at the time (with Alan McGee too important within the scene to be labelled a 'fake'), that Fauve Records was set up as part of a labels deal between Epic and former dance music label Rhythm King and as
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#17328699552055642-433: The intermediary, special deals, premiums and allowances for advertising or display. On the other hand, negative actions may be necessary, such as threatening to cut back on margin, or hold back delivery of product. Care must be exercised when considering negative actions as these may fall foul of regulations and can contribute to a public backlash and a public relations disaster. Manufacturer complacency has been highlighted as
5733-486: The international trade body, the Worldwide Independent Network ( WIN ). Many of the labels started as producers and distributors of specific genres of music, such as jazz music , or represent something new and non-mainstream, such as Elvis Presley in the early days. Indies release rock , soul , R&B , jazz , blues , gospel , reggae , hip hop , and world music . Music appearing on indie labels
5824-586: The label managed to make it into the 1990s with a number of dance and hip-hop hits by artists such as Silver Bullet and A Homeboy, Hippy and A Funky Dread (issued on Savage's Tam Tam dance label). Around the time Soho had their top ten UK hit, Mimran decided that Savage would not just be a British indie, but would be an American major instead. Savage Records went on a spending spree in America, which resulted in them opening plush offices on Broadway, hiring Michael Jackson's manager Frank DiLeo and signing David Bowie to
5915-408: The label was closely associated with. Whether indie fans dismiss Stock Aitken Waterman as cheesy pop or not, this was as true for Waterman as it was for Ivo Watts-Russell (4AD), Alan Horne (Postcard), Daniel Miller (Mute), Alan McGee (Creation) or Tony Wilson (Factory). The UK Indie Chart became a major source of exposure for artists on independent labels, with the top ten singles regularly aired on
6006-554: The last two spent as CEO . As a driving force in helping indie labels being able to compete worldwide with bigger companies, Wenham featured in Billboard ' s "Top Women in Music" every year since publication. She stepped down from her role at WIN in December 2018, the following year taking on a non-executive director 's role at Funnel Music. On 4 July 2008, WIN ran " Independents Day ",
6097-401: The lowest share of the total music market, at only 16%. In 2017, South Korea's indie market showed the healthiest share of the total music market, 88%. In 2017, the UK indie market had a 23% share of the total music market. In 2017, the US indie market had a 34% share of the total music market. Distribution (marketing) Decisions about distribution need to be taken in line with
6188-514: The major label. These labels are frequently referred to as vanity labels or boutique labels, and are intended to appease established artists or allow them to discover and promote newer artists. According to the Association of Independent Music , "A 'major' is defined in AIM's constitution as a multinational company which (together with the companies in its group) has more than 5% of the world market(s) for
6279-493: The major labels for records to be included in the UK Indie Chart , with labels such as Industrial and Factory retaining full independence (though Beggars was excluded as they had a deal with Warner Brothers for Gary Numan at the time). The late 1970s had seen the establishment of independent distribution companies such as Pinnacle and Spartan, providing independent labels an effective means of distribution without involving
6370-462: The major labels. Distribution was further improved with the establishment of 'The Cartel', an association of companies such as Rough Trade Records , Backs Records, and Red Rhino , which helped to take releases from small labels and get them into record shops nationwide. The UK Indie Chart was first compiled in 1980, with the first number one being "Where's Captain Kirk?" by Spizz and his band (billed on
6461-447: The majors at their own game. David Mimran's Savage Records (known for British band Soho and their Smiths-sampling indie-dance hit "Hippychick" in 1991) was set up by the Swiss teenager in 1986 and funded by his multi-millionaire father. Due to the almost endless financing of his father and the fact their A&R manager (a Swiss record shop owner called Bernard Fanin) had industry experience,
6552-492: The masters and so London could pick and choose which acts they wanted, dealing with them directly (though due to problems with the administration, London did not get the rights to New Order's catalogue for a couple of years and so a company called CentreDate Co Ltd was set up to license them back to London). However, not all indie record labels failed in this era due the problems with Rough Trade Distribution, some failed because they did not stick to their niche and tried to take on
6643-417: The media mix would be weighted toward mass-market media such as newspapers, magazines, television, and radio. Distribution of products takes place through a marketing channel , also known as a distribution channel. A marketing channel is the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to
6734-476: The national television show The Chart Show . By the late 1980s, the major labels had identified that there was an opportunity in indie music and so teamed up with many of the main figures of the indie scene to launch indie music record labels. WEA (Warner/Elektra/Atlantic) teamed up with Geoff Travis and él Records' Mike Alway to launch Blanco y Negro , followed a few years later by Alan McGee's Elevation label (even though some indie fans viewed this development in
6825-401: The need to reduce the time a product spends in transit or in storage. In other cases, distribution systems can become quite complex involving many levels and different types of intermediaries. In practice, many organizations use a mix of different channels; a direct sales force may call on larger customers. This may be complemented with other agents to cover smaller customers and prospects. When
6916-455: The pre-Now days of Open Top Cars and Girls in T'Shirts , Raiders of the Pop Charts and Chart Encounters Of The Hit Kind . In fact, apart from a few soul music compilations billed as Dance Mix - Dance Hits on Epic and a few throwback disco collections, Khan's company was the only label regularly charting with music that could be classed as with club or dance until Stylus Music teamed up with
7007-473: The product or brand, thereby pulling it through the distribution channel. The choice of a push or pull strategy has important implications for advertising and promotion. In a push strategy, the promotional mix would consist of trade advertising and sales calls while the advertising media would normally be weighted toward trade magazines, exhibitions, and trade shows while a pull strategy would make more extensive use of consumer advertising and sales promotions while
7098-531: The product or service can be found at cheaper prices, when superior models become available, when a wider range is offered, or simply because it is more convenient to shop through a different channel (e.g. online or one-stop shopping). As a hedge against market share losses due to switching behaviour, some retailers engage in multi-channel retailing. The emergence of a service-dominant logic perspective has focused scholarly attention on how distribution networks serve to create customer value and to consider how value
7189-474: The purchase of minor analgesics, cough and cold preparations and complementary medicines such as vitamins and herbal remedies. For the consumer, channel switching offers a more diverse shopping experience, which may concern some sellers by its potential to erode market share. Evidence of channel switching can suggest that disruptive forces are at play, and that consumer behaviour is undergoing fundamental changes. A consumer may be prompted to switch channels when
7280-707: The recently elected chair, Justin West, of Canadian company Secret City Records. As of August 2019 other member organisations of WIN included A2IM (USA), ABMI (Brazil), ADISQ (Canada – Quebec only), AIM (UK), AMAEI (Portugal), A.S.I.A.r (Argentina), Audiocoop (Italy), BIMA (Belgium), CIMA (Canada), DUP (Denmark), FONO (Norway), HAIL (Hungary), IMCJ (Japan), IMICHILE (Chile) IMNZ (New Zealand), IMPALA (Europe), indieCo (Finland), IndieSuisse (Switzerland), Liak (Korea), P.I.L. (Israel), PMI (Italy), Runda (Balkans), SOM (Sweden), stomp (Netherlands), UFI (Spain), UPFI (France), VTMOE (Austria) and VUT (Germany). Particularly active are
7371-411: The record as Spizzenergi ). "Where's Captain Kirk?" had been a constant seller for Geoff Travis' Rough Trade Records , but never got into the chart compiled by BMRB (British Market Research Bureau) as a lot of independent stores were not chart return shops and because a more accurate way of collating sales via EPOS (electronic point-of-sale systems) had yet to be introduced. The chart was unrelated to
7462-547: The sale of records or music videos. The majors are currently Sony , Warner Music (WMG) and the Universal Music Group (UMG), with EMI and BMG (RCA/Ariola International) being the other two majors that made up the 'Big 5' of the 1980s and 1990s. If a major owns 50% or more of the total shares in a company, that company would (usually) be owned or controlled by that major." Independent labels have historically anticipated developments in popular music , beginning with
7553-498: The sixth richest person in Korea. The international peak body for the indie music industry, Worldwide Independent Network, was founded in 2006. WIN is a coalition of independent music bodies from countries throughout the world. Alison Wenham spent 17 years leading the UK's Association of Independent Music (AIM), which she launched in 1999. During this time she also helped to found WIN in 2006, remaining at WIN for twelve years, with
7644-419: The strategic approach. The overall distribution channel should add value to the consumer. Distribution is fundamentally concerned with ensuring that products reach target customers in the most direct and cost-efficient manner. In the case of services, distribution is principally concerned with access. Although distribution, as a concept, is relatively simple, in practice distribution management may involve
7735-556: The term "customer fulfillment center" has been criticized on the grounds that it is a neologism , its use is becoming increasingly mainstream as it slowly makes its way into introductory marketing textbooks. Disintermediation occurs when manufacturers or service providers eliminate intermediaries from the distribution network and deal directly with purchasers. Disintermediation is found in industries where radically new types of channel intermediaries displace traditional distributors. The widespread public acceptance of online shopping has been
7826-514: The time were signed and saw great commercial success with independent labels. These included Hep Stars ( Olga Records ), Tages ( Platina Records ) and Ola & the Janglers ( Gazell Records ). According to Företagskällan , these three artists secured an interest for minor record labels, a situation which otherwise would've led to 'the big five' having full control of the Swedish music scene during
7917-485: The trade associations in countries and regions with well-established music markets: AIM (UK), A2IM (USA), AIR (Australia), CIMA (Canada), VUT (Germany), IMNZ (New Zealand), UFI (Spain); IMICHILE (Chile), ABMI (Brazil), and IMPALA (Europe). In 2016, WIN's WINTEL report, an analysis of the global economic and cultural impact of the indie sector, showed the share of the global market as 37.6%. The sector generated worldwide revenues of US$ 5.6 billion in 2015. In Australia,
8008-536: The world in terms of revenue and ahead of countries with higher populations such as Canada and South Korea. Digital revenue, at 44%, had overtaken that coming from physical sales, at 33%. A spokesperson from the company Unified Music Group said that governments were beginning to recognise the financial and cultural worth of a thriving music industry, but there was still a big challenge for the independents to compete with well-funded tech companies that have an anti- copyright agenda. In 2017, Finland's indie market share had
8099-464: The world, with V2 Records Benelux founded in 1997, a record company which continues to operate to this day. In 2001, Daptone Records records would be founded in New York, a funk and soul label known for Sharon Jones , Charles Bradley and a lot of the musicians who would appear on Amy Winehouse 's Back to Black album in 2006. As the indie hip hop or underground hip hop scene began to grow, so did
8190-404: Was having a better time than Savage Records in the early to mid-90s American marketplace was Epitaph Records . It was Epitaph that released The Offspring 's 1994 album Smash , which would become the best-selling independent record of the 1990s. The album was certified six times platinum in the United States and sold more than 12 million copies worldwide. In the UK, the indie chart was still
8281-511: Was perhaps the most successful independent label from that era. Several established artists started their own independent labels, including the Beatles ' Apple Records , and the Rolling Stones ' Rolling Stones Records . These labels tended to fail commercially or be acquired by the major labels. Internationally, the situation was different. In Sweden , three of the four biggest rock bands at
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