CCB Magazine

The music industry is undergoing profound change: old sales revenues have collapsed, streaming services are growing - and the question is what role indie labels will play in these structures. We talked about this topic, the future of indie labels, at this year's Most Wanted with Daniel Meteo, founder of publishing houses such as Random House Musick and Random Musick Publishing GmbH, who has had numerous musicians under contract for over two decades. 
 

INTERVIEW  Juliette Holtz    

CCB Magazine: Hello Daniel, you are the founder and co-owner of publishing houses such as Random House Musick and Random Musick Publishing GmbH and spoke at this year's Most Wanted Music on the subject of indie labels. What surprised you the most?

Daniel Meteo: I was surprised by how well attended the slot was and how interested the visitors were - because now that everything is available digitally and the line between major and indie is becoming blurred, you ask yourself what still constitutes an indie label today. 

CCB Magazine:Before we go into detail: Please introduce yourself briefly: Who are you and what do you have in common with indie labels?

Daniel Meteo:I grew up in Essen and came to Berlin in 1997 - that's where it all started: Initially, I had my own event agency and shared an office with the indie label “Shitkatapult”. This gave me the idea of founding my own indie label: I launched the publishing companies Random Noize Musick and Random Musick Publishing GmbH, through which we have had acts such as Anika, Apparat, Moderat, Dj Koze, toechter and Pilocka Krach under contract for 20 years now. Over the years, I have also managed various clubs and events in Berlin, such as Maria am Ostbahnhof, Volksbühne, Demand and the Ocean Club. And together with Tom Thiel I play in the dub/hip-hop electronica duo Bus.

An indie label is still an indie label, but above all it's a seal of approval and a network where people look and say: “I'll buy these records because they're from this label”

CCB Magazine:When you moved to Berlin in 1997, Berlin was still a haven for critics and dropouts, and the music market was dominated by the so-called big six. Today, the market is divided between the three big majors Universal, Sony and Warner, which have an 80 percent share - and many of the indie labels are now sub-labels of the big three. What makes an indie label today?

Daniel Meteo:I would say that an indie label is still an indie label, the market situation has just completely changed: today, musicians make most of their revenue from live performances, which accounts for around 80 percent, but that is initially independent of major or indie. The big difference between major and indie is that majors work with advances, indies don't. When an artist like Max Herre releases a new record with Universal, for example, they often provide millions for video production and marketing. Indies, on the other hand, do not make such advance payments, nor is the distribution structure the same: A major label usually keeps 80 percent of the profits, but covers all the costs up front. In the indie sector, there is usually a “profit split deal”: this means that the profits are split 50/50 between the artist and the label, but the majority of the work has to be done by the artist themselves. And on the subject of sub-labels, it can be said that in distribution deals, which are common in the rap sector, the artist keeps their own label, with Sony, for example, only receiving 11% of the sales. However, the label then no longer takes care of the advertising and all the rest.

CCB Magazine:About you and your work: How does the work at a label like yours work? How do you support your artists? How do you choose your acts?

Daniel Meteo:We always have a lot of work on our plate. At the moment, for example, I'm in talks with the management of a queer Scottish musician who makes more “folky” music. We're trying to break new ground and find new acts. We are now also more of a publishing house, which means we also select labels for our artists. Ultimately, our main job is to work well with our artists: We are always the first point of contact for our musicians and support them wherever we can.

CCB Magazine:And what does the recording process actually look like? What does an artist have to bring to the table to be signed by you?

Daniel Meteo:Besides the music, which we have to like, above all diligence. I always tell all my artists that diversity is not just about the music, but also about the approach to the profession. Today, you can only get ahead if you are prepared to go different ways. This includes making music for theater or film, participating in other projects or having a job on the side. I would also hate to have artists on the label who are only interested in a career as a musician and hope to make a living from it alone - the pressure would be too great.

CCB Magazine:The music market has completely changed in recent years. Whereas physical formats used to be the main source of sales, today 81.5 percent of sales revenue is generated via the digital business, mainly via audio streaming. More and more artists are also marketing themselves via crowdfunding. Do we even need a label these days?

Daniel Meteo: I would say yes. A label doesn't just take work off your hands and help with booking or other issues. A label is also a seal of quality and a network where people look and say: “I'm buying these records because they're from this label”. That's often the case with me too. At the end of the day, a label also brings with it a certain know-how that artists often lack because they often don't have any distance to themselves. But yes, you can of course produce and market a record yourself nowadays, it's much easier than it used to be.

We have artists that we love more than anything, but we know that they will never be successful because they make music that is too difficult or always look stupid in photos

CCB Magazine:The history of indie labels goes back a long way: as early as the 1940s, there were around 400 independent labels in the USA. However, the indies only became really popular with the rise of punk and hardcore from the 1980s onwards, and the bands were always preceded by the reputation of resisting commercial appropriation. Would you say that indie labels are more convinced of what they are doing because commercial success is not the primary focus?

Daniel Meteo: In a big label, people are also convinced, but perhaps not so much by what the musician does. It's about being successful. We, on the other hand, have artists under contract that we love more than anything, but we know that they will never be successful because they make music that is too difficult or always look stupid in photos - many of them also don't go to live concerts or reject social media. It's different with a major: when an artist signs there, it's clear that they have to play all these games and go through all these disciplines - whether you like it or not.

CCB Magazine:You've been in the label business for 20 years now. What does it take to stay in this industry for so long?

Daniel Meteo: I would say, in addition to desire and passion, above all diligence. For me, it's a tough job that can be very exhausting. And you really have to want to do it. I think you can only survive in this profession if you're prepared to go different ways from time to time. That's why we founded a second company two years ago, through which we explicitly sign non-white men, i.e. women, people of color, queers, because we were a bit bored with all the standard stuff of recent years. When you've been doing something for as long as I have, you always have to do something different, set new priorities. And part of our business model is now also that we sell our music to film and series productions - recently even in formats such as Tatort or Breaking Bad.

CCB Magazine:Finally, please take a look into the crystal ball: What does the future of indie labels look like? And what advice would you give to someone who wants to start an indie label today?

Daniel Meteo:I see the future of labels primarily in the do-it-yourself sector, but also, as I just mentioned, in the area of commissioned work. Hardly anyone can survive on a small sub-label alone anymore. And if I had to give one piece of advice: you have to be passionate about what you do, have a lot of patience and be prepared to put up with setbacks. In the end, it's like many other industries, it's work that's hard but also fun - the music industry is just under a lot of pressure right now.