How will Indie labels react to major label partnership?
NEW YORK, July 1 /PRNewswire/ — Sony Music Entertainment (SME) today announced that it has entered into a global partnership with IODA to create a new leading distribution and services network for independent rights holders. As part of the partnership, Sony Music has made a strategic investment in IODA, a leader in digital distribution, marketing, and technology solutions for the independent music industry. Additional terms of the deal were not disclosed.
In a statement released by Kevin Arnold, Founder and CEO of IODA, “Sony really impressed us with their respect for, and understanding of the needs of the independent community.” He adds, “We remain, as we always have, fully dedicated to helping independent content owners succeed in the digital world. This alliance will greatly enhance IODA’s ability to continue delivering effective solutions for Independents.”
The question arising out of this major merger or “Partnership”, is how will the independent label community react? After all, the I in IODA is supposed to stand for Independent. What we do know is that some indie labels are seen at times to be in distrust of large corporations. We know that IODA gains a strong marketing partner in Sony. Sony operating through its independent distribution subsidiary RED taps into IODA’s digital distribution system worldwide. Released in the Newswire, Sony identifies making a strategic investment in IODA. Sony’s subsidiary, RED will continue to offer digital distribution services and IODA will be an added option for clients who need other services than what RED currently provides, specifically more indie-focused marketing and global distribution services.
In time, the answer will unfold as to how the independent community will react to this meeting of corporate minds. What is clear – did we honestly think – major corporations, responsible to their shareholders, would sit on the sidelines for long – better yet, did they ever sit on the sidelines? Or were they just waiting for the savvy, independents like IODA to work hard, build and develop this growing, transitioning industry, and then come in when the time was ripe and call “Merger” aka “Partnership”.
Corporate strategy and business development in true form. Sony’s way of addressing the changing needs of their market without doing due diligence to innovate and make changes necessary themselves from scratch.
Tags: community, digital, distribution, indie label, ioda, marketing, merger, music, Record Label, sony, technology
July 13th, 2009 at 4:52 pm
I still dont have all the facts, but I can see
it working for both sides. I think having help
can be a good thing, until the old tricks start
to come into play. Nobody likes to admit it,
but that balance is really important as we try
to move forward. Most of us plan to do this
for the rest of ours lives, this could really
bridge alot of gaps. Harold S.