Indie labels concerned as major labels intervene in vinyl and CD distribution
nme.comThe Guardian reported that one British indie label said one of its biggest acts missed a Top 20 chart position. Additionally, stock for a September release was “temporarily unable to be located”, meaning nine months of work and thousands of pounds were wasted.“It put a crack through the middle of the campaign.
It could mean a knock of 50% off sales,” a senior executive from the label said.The company is based in Switzerland, and has run into further financial problems this year.
In the summer, Utopia called in liquidators for its Utopia UK (R&D) operation. It also requested financial help from major labels Universal Music Group and Sony Music Entertainment for its separate distribution arm, UDS, in order to fund the warehouse move from Aylesbury to Bicester.There are now worries that major labels are gaining an unhealthy level of influence on an independent sector.
This echoed by the comments of Utopia VP of distribution services Drew Hill: “Part of me wishes now I hadn’t gone to [the majors] to say: ‘Do you want to come along for the ride?’”Hill also spoke about the warehouse operation, which he says was a 12-16 month process that had to be cut down to 6 months due to the lease end date for the Aylesbury site. “Nothing went missing or got lost,” he said.
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