38 MusicWeek 27.04.12 FEATUREDISTRIBUTION
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Orchard, we’re always on the lookout to expand the role of a distributor.” PIAS’s Sefton takes that idea one step further -
predicting that distributors could actually see themselves working directly with artists. “I think there will always be a vibrant
independent sector and independent labels will always have the ability to exist and, outside of labels, bands trying to bring music to market,” he ponders, “maybe not signed to labels but signed to distributors on their own.” Cadiz’s Laurie Staff agrees: “We will still be the
conduit between the artist and the customer via varying retail routes, but there will be more artists branching out on their own, outside of a traditional label structure. We are ideally suited to this approach as we can offer the guidance and close working relationship needed.”
PIAS’s Sefton is aware of the possibility that ABOVE
Lightening the load: Digital may have reduced the weight of the physical market, but many in the industry are determined to find new ways of working with and getting music to high street retailers
crowd-funding and other artist-based initiatives may grow - but ultimately feels there will always be a place for distributors. “Clearly people may move towards working directly with the public, I suppose, but I find it hard to imagine a world without a retail sector of some shape or form,” he says. The message from distributors of all ilks is
similar; we must remain flexible, cooperate with newcomers into the industry – and keep the art form in mind. The third is especially important if the industry will ever curb the ‘culture of free’. Absolute’s Semmence promises to “embrace new
technologies and services, but always have an eye on the key and core elements - the artists, the music and the routes to market”. Cadiz’s Staff is similarly keen to emphasise the importance of the product: “It’s time to stop
devaluing music by giving it away with newspapers, racking it up next to dog food or using it as background for adverts. “Maybe then audiences might start to value it
once again.” PIAS’ Richard Sefton feels that the word
‘industry’ is the key when it comes to dealing with challenges ahead. After all, the business of music is far more than a clutter of self-interested parties - it’s a long chain of equally important links. “For us, it’s not all about PIAS,” says
Sefton. “Perhaps a bit more cooperation between people would prove fruitful. That’s something that the music industry has been criticised for from the outside. “People say it’s a dysfunctional business, which it
isn’t at all, but I think we could work more harmoniously to try and secure a better future.”
DISTRIBUTING THE NUMBERS THE MAJORS ARE LURED BACK BY DIGITAL
BY PAUL WILLIAMS
ALTHOUGH MOST OF THE MAJORS bowed out of the physical distribution sphere some time ago, the rise and rise of digital has seen them stake a claim in the distribution landscape once again. Arvato, which handles physical distribution
for Universal, Sony and Warner, remained by some distance top albums distributor in Q1 with a market share of 42.5%. This was more than double that posted by closest rival EMI, which scored 16.1%, and it handled the physical distribution of 34 of the 40 biggest- selling artist albums of the quarter, led by Polydor act Lana Del Rey’s Born To Die. However, Arvato’s total was down from
44.8% in the same period of 2011 and from 56.3% two years ago with some of that share redistributed to its clients distributing their own releases digitally. This shift has resulted in Universal, Sony
and Warner being in Q1 the third, fourth and sixth leading album distributors respectively with all of them showing sizable year-on-year growth. Universal’s albums distribution share was up on 12 months ago from 2.2% to 9.6%, while Sony’s rose from just 0.8% to 4.9% and Warner’s improved by 0.8% to 4.2%. EMI alone among the majors handles
both physical and digital distribution for its releases, hence a superior market share to its three rivals. Its own share was up by 4.1 percentage points on the year as it cashed in on releases by the likes of Emeli Sandé, Coldplay and David Guetta. Going the other way, PIAS Sony DADC’s
albums share dropped from 11.3% in Q1 2011 to 4.8% a year later, a fall easily explained by it being the physical distributor for XL Beggars and
therefore Adele. But the multi-honoured singer was still
keeping it busy in the first three months of the year with 21 the top artist seller again and 19 finishing in 13th position. The company also scored a top five
album with Enter Shikari whose Ambush Reality-issued A Flash Flood Of Colour sold 33,852 copies in the quarter. PIAS UK also controlled another 0.9% of the market thanks to its digital distribution. Among the other distributors for
independent product, Sony DADC was ranked seventh with a 3.5% share that included successes with Demon’s Justin Fletcher and a Union Square best of from Gilbert O’Sullivan, while Proper was eighth with a 1.3% share, ADA Arvato ninth with its business including another Top 10 album for Dramatico’s Katie Melua and Beggars Group 10th with a 1.1% share.
Given the sector is now almost
entirely digital, distribution market share for singles largely mirrors the corporate group figures so Universal leads with 34.1%, up from 28.8% a year ago with Sony second on 18.1% (11.0% a year ago), EMI third with 14.1% (11.2%) and Warner third with 14.0% (5.7%). However, one significant change is with Arvato, which in the first three months of 2011 handled 17.1% of the singles market, but this slipped to only 0.3% a year later. Ministry of Sound’s digital distributor
Fuga claimed 2.1% of the singles market with DJ Fresh featuring Rita Ora’s chart- topping Hot Right Now its biggest seller, while other independents finishing among the Top 10 singles distributors of the quarter were PIAS UK (1.5%), IODA (1.3%) and The Orchard (1.0%).
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