With high-profile success stories and numerous chart results, the label services sector is happily co-existing with the traditional record companies in 2024.
Raye is a prime example of the strength of the label services sector, with six BRITs wins following a successful campaign by The Orchard and Human Re Sources in the US.
With the growth in physical sales in 2024, services companies are also seizing the opportunities for both digital and traditional formats.
In our latest special report on the market, Music Week gathers a selection of the key players to discuss the evolution of the sector, tech solutions and building artist careers. Here, in an online extra, label services execs address key issues from AI to superfans…
How competitive has label services become at this point?
Liz Northeast, SVP, EMEA at Fuga, part of Downtown: “The landscape of label services is competitive, and that is only a positive thing for artists in providing a variety of options to support them at various stages of their careers. Having the ability to choose a partner that can provide the right balance of the services with competitive terms is a key factor in the success, and competition, of the label services sector.”
How do you focus on superfans for your clients in terms of streaming engagement and physical product?
Mark Dowling, marketing director, Absolute Label Services: “Superfans are often the early adopters of an artist's work and should be valued not only for their commercial potential but also as powerful promoters and amplifiers. Providing them with exclusive content, behind-the-scenes access and updates on campaign developments can form the foundation of any successful campaign. For artists with an engaged audience, D2C revenue is vital as it enables financial planning and stability. Additionally, superfans play a crucial role in achieving chart success due to their unwavering support and advocacy.”
Pieter van Rijn, CEO, Downtown Music: “We have significantly invested in our global physical offering and it has been a big success for our clients who are looking for an integrated approach when they release music. For many catalogue owners, physical music has proven to reinvigorate their music and create additional value. For new, up-and-coming artists it has become part of their engagement with fans. We are currently working with internal and external technology and services to provide a scalable pathway for our clients to engage with fans on merchandising and ticketing.”
The landscape of label services is competitive, and that is only a positive thing for artists
Liz Northeast
James Moodie, senior director, artist services UK at The Orchard: “An artist’s superfan is their biggest advocate and ultimately spreads the word in addition to traditional marketing. Through multiple platforms we look for ways to bring the biggest fans closer to a project, whether it's Discord, D2C, broadcast channels or conventional social media. We've seen Raye organise impromptu fan meets in Sydney on Discord, The Snuts send text messages about underplays for early access, Blossoms host a dedicated phone line with album previews and Black Honey build their own secret fan club using Facebook groups. Catering to fans in this way is new for a lot of artists, but we have found our roster is really embracing it.
“From a D2C perspective, we work with managers and teams to create quality products for fans at every price point. Not just physical music, but also exploring new digital partnerships with bonus content, and of course merchandise.”
Ben Rimmer, regional director, Believe UK, Northern Europe, Australia: “The modern superfan builds from many forms of discovery. Algorithmic, editorial and short form discovery is very powerful now and leads to repeat listening and viewing, following, and ultimately full superfanship on the DSPs and outside spending money on tickets and products through retail and D2C. An artist’s development still often begins from more traditional live and marketing routes and can then be amplified even quicker and in a more targeted way through streaming and audience engagement. We never saw these elements as cannibalising each other. It remains a 360 business and most of that is built on superfans.”
The modern superfan builds from many forms of discovery
Ben Rimmer
Marley Dennis, MD, Hoxton Vinyl: “I'm excited about our Essential Merch division, which focuses on serving superfans. We handle everything from D2C stores and merch production to fulfilment. This has been vital for our clients, allowing them to benefit from higher margins. With warehouses in the UK, Netherlands, Australia and the US, we're well equipped to manage orders worldwide, and I'm looking forward to seeing how this grows.”
Roo Currier, UK general manager at IDOL: “IDOL provides dedicated audience development managers for each of its partners, meaning there is always a specialist on hand to identify where an artist’s superfans are, as well as find the best ways to interact with them. Superfans and D2C provide key revenue streams for artists, and we support our partners in harnessing new platforms for audience growth. For example, IDOL connects its partners with fan engagement platforms such as Openstage and Discord, as well as helping them to organise their D2C strategy.”
How will label services co-exist alongside record labels?
Debs Cutting, operations director, Absolute Label Services: “Label services and record labels are currently co-existing and have been for some time. They can either operate as competitors or collaborate, with record labels often utilising the specialised services offered by label service companies. As the label services sector has matured and proven its value, it has established itself as a crucial and enduring route to market for all artists. This coexistence allows artists to benefit from the flexibility and tailored support of label services while also leveraging the broader reach and resources of traditional record labels.”
The label services sector has established itself as a crucial and enduring route to market for all artists
Debs Cutting
How are AI tools and other tech solutions helping artists in this sector reach audiences more effectively?
Simon Wills, MD, Absolute Label Services: “AI tools and other tech solutions are revolutionising how artists reach audiences, making this an exciting yet challenging time. Perspectives on AI vary depending on your position within the industry, but it's clear that accountability and fair reward for ownership must be maintained. Numerous tools and solutions now assist in automating various tasks essential to releasing a record in today’s market. For indie artists and their teams, whose workloads can be intense, these technologies are invaluable.
“Key platforms that enhance engagement for artists include AI-driven analytics tools, which help identify target audiences and optimise marketing strategies. Social media management tools automate posting schedules and audience interactions, ensuring consistent engagement.”
Melissa d’Engelbronner, VP, audience strategy, Downtown: “Generative AI is the new ‘trend’ on the creator side and indirectly helps engagement by creating higher quality promotional content at speed. Allowing the artist to spend more time creating their art and honing their craft. The industry has exploded in the last couple of years with new platforms to help explore the direct-to-fan relationship and how artists are interacting and giving back to their fans. There is an array of exciting platforms that allow artists to own the conversation directly with their fanbase, removing gatekeepers and gaining more control over new opportunities and revenue streams.”
AI tools are transforming content creation
Marley Dennis
Marley Dennis: “AI tools are transforming content creation, helping artists design album covers and marketing materials. Platforms like Spotify use complex algorithms to analyse user preferences, recommending music and merch to potential fans. This integration has boosted vinyl and merch sales, making it easier for fans to discover and support their favourite artists.”
Betsy Chadbourn, head of marketing, Believe UK: “Creativity is at the heart of our digital marketing campaigns. Whether it’s creating a global, geo-fenced fan experience using Strange Worlds, paired with a TikTok-backed mural campaign to highlight international artists for Novo Amor; building a 3D matriarchy hangout with Discord and Spotify integrations, digital easter eggs, and livestreaming functionality for Girli; or simply using an AI engine to sift out a less saturated niche for a content strategy; tech and innovation are allowing these audiences to become more expansive, more invested, and feel even closer to their favourite artists than ever before.
“Innovation is central to everything we do here at Believe and this new age of advancement in the tech space makes every day exciting and – sometimes – challenging. We have more tools at our fingertips than ever before, so we’re constantly striving to be tech-first, whilst also being responsible and authentic to our artists. For me, AI should be utilised for research and audience development, to give artists the freedom to focus on their creativity. Not the other way around.”
IDOL provides dedicated audience development managers for each of its partners
Roo Currier
With The Orchard’s partnership with NQ alongside Columbia, does this show how flexible the label services model can be for rights-holders?
Jordan Lolomari, artist marketing manager, The Orchard: “We hope that the partnership with NQ will go a long way in showing how effective The Orchard can be in elevating and adding value to labels that have already achieved a great amount of success. Collaboration is at the heart of everything we do and NQ has so much talent and we are working hard to amplify their visions. We pride ourselves on being ‘artist first’ and the involvement of Columbia alongside The Orchard and NQ is a prime example of how flexible the label services model can be for rights-holders. We attempt to find the best situation for every label that we work with.”
Finally, what’s the one thing you’re most excited about for the future that will define the way your business, and in turn the sector, operates?
Grace Theokritoff, UK label manager, IDOL: “With AI and other emerging technologies, there’s a world of possibilities opening up for artists to help identify fans and grow their audience, but there’s still room for curatorial and editorial content from tastemakers to drive music consumption. It is interesting to see how AI evolves, but we still believe in that core interaction of music and artists with fans. And we’re proud to say that our job is to help develop that in any way that we can.”
With the increasing accessibility of digital platforms, music can now reach audiences in emerging markets across the globe
Chris Manning
Chris Manning, managing director, UK & Europe, The Orchard: “Global market expansion. With the increasing accessibility of digital platforms, music can now reach audiences in emerging markets across the globe. This expansion into regions such as Latin America, Africa, and Asia presents vast opportunities for growth. By understanding and catering to diverse cultural preferences, we can help our labels and artists tap into new fan bases and revenue streams. The Orchard's truly global footprint puts us in a unique position to capitalise on this when managing local and international repertoire across our teams for our roster.”
Subscribers can read the magazine report on label services here.
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