London based research consultancy MIDiA Research has released a brief, densely packed infographic titled The Future of Labels. It is both a diagnosis and prescription.
“The role of a record label is arguably more important than ever – but that does not mean the business has become any easier.” — MIDiA Research
Blurring lines characterize the difficulty faced by the label industry. MIDiA also observes a “rebalancing of the supplier-retailer relationship” which has landed more negotiating power on the music streaming services.
Despite changes in the relationship balance, MIDiA reports that global recorded music revenues have more than doubled from 2015 to 2024. To that, MIDiA has this note: “However, the prevailing strategy that labels are currently pursuing is one of optimisation. Focusing too heavily on optimising for today’s model risks unpreparedness for what comes next.”
That unpreparedness is facing new disruptions, MIDiA observes, from generative AI, to streaming fraud, to more global concerns including, in MIDiA’s terms, “intangible challenges like music’s battle for cultural resonance in the attention
economy.”
S.I.N.G.
MIDiA unleashes the clever acronym to abbreviate five key tenets which should guide the future of record labels:
Specialise: Having a wide set of competences makes sense for labels with deep pockets. Yet for most, doing a bit of everything makes it hard to do any one thing truly well – these labels should specialise.
Innovate: Labels have done a lot to innovate their own businesses, but when it comes to consumer propositions, there is little beyond the leading DSPs. Labels need more than this as their route to market, and more flexibility and agility in
their approach to licensing.
Nurture: Be brave enough to invest more time, effort, and patience in artist development than today’s market permits. Not only will this enable more artists to thrive – it is also a business imperative, giving labels the long-term careers and future stars their business model requires.
Guide: Today’s artists need labels more than ever – and more than simply distribution deals, even if they do not yet realise it. Lean into the role of mentors and guide, helping artists make sense of an overwhelming industry and navigate it to success.
MIDiA Research is offering two detailed infographics:
The Future of Labels HERE
The Future of Streaming HERE
