stewart anderson on why his label is dying

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the quality of releases has slipped a bit but maybe he's right--

How old is your label?

Since Jan 1995

Have you noticed any direct drop in your sales, and if so, when?

Most definately. Sales have been steadily dropping the past 2 years, but the past 6 months have been very dramatic.

What was your initial feeling towards mp3/filesharing technology? Has your opinion changed?

I, like everyone else, thought it was great- we're going to bring down Mr.BIG label and everyone will all be punk as fuck. It doesnt work of course, because primarily the bulk of people who buy CDs are under 20, and they have all since grown up with the idea you dont have to own a record. You can just download it. There is a big generation gap between those old enough who grew up supporting small bands by sticking their hands in their pockets, and those younger kids who maybe have never even been in an independent record store, but know their way around a computer just fine.

What was the first record of yours that you discovered on a filesharing system? How was your reaction?

Theres lots of 555 stuff out there. People email me and tell me they havbe downloaded 555 stuff and its "really good". Well, thanks, I know its good, thats why I put their CD out... I dont know who made our CDs available online or where they are being downloaded from. Of course Im pretty bummed as record sales really are so tiny right now, every single download has made it more difficult for me to continue. Thelast 4 CDs I released, 2 months ago, have sold 25 copies each worldwide. I think people downloading stuff are largely ignorant of how big a problem this is, or how many people this affects. I have supported myself though music for 10 years now. This year, I can no longer support myself. Although I realise this isnt wholly downloading, I now find myself in the situation where I have to give up my job, that I love, and find something else to get by on. (Im going to be a cowboy in the desert- honest i am)...

Do you feel that the rampant downloading/fileswapping is based on a bastardized notion of the DIY ethic, one that makes record labels--either the largest major or the smallest indie--out to be some sort of evil that one should react against?

Well unfortuanately you cant change what is happening and what is going to happen. I watch with interest on the Indiepop list where the people not in bands or running record labels, (ie the consumers- whos long term financial interests are not affected one way or another), tell me how I should or shouldnt react to the situation. They are not DIY punk. They are misinformed and have no concept of indie/punk history. And they do not live the life I live. Filesharing is not DIY punk. And its bullshit when when some caffinated computer geek tries to play that card in defence of him not wanting to, god forbid, BUY a CD and support a band he thinks is cool. Getting in your van and travelling to play shows in towns you have never been to and actually MEETING the people who come and see your band is punk. Sitting in your bedroom alone, downloading stuff is NOT PUNK. Thats pretty pathetic and has nothing to do with how I approach music.

Do you fear for your label? Have you noticed a drop in sales, one that would make you feel that your fears are justified?

I, along with pretty much all my immediate friends who run labels, have decided to stop. (RIP, Red Square, Animal World, Slumberland, Chapter Music, Dutch Courage)... I have lost maybe $6,000 in the past year. So I simply cant be bothered anymore. I cant see the situation changing any as there are too many people now involved. What pro-downloaders seem incable of accepting is that conventional means of distributing CDs and record are being destroyed. Not because people are downloading 555 stuff, but the fact so much music is being downloaded. I can tell you now, as of 3 months ago we no longer have any worthwhile distribution in Europe. Our main US distro used to take 300-400 copies of some items. They now take 40-60 copies. Quite a difference. Consider this also, all the labels mentioned above, that have since given up, are run by people in their mid to late 20's. They grew up in love with music. But where are the new labels to replace them run by 18 years kids? THEY DONT EXIST! See, it would never occur to an 18 year kid in 2003 that they should start a record label because there is this local band they love. It would never occur to them as they do not buy records/CDs. So its obvious there will be no small labels in a few years time...

Do you have any ideas for a feasable middle ground? Are you planning to embrace the growing technology--such as digital singles or subscription services--or do you feel as if doing that would be one step to obsolecence?

I dont have the time or energy right now. Maybe next year I'll pick it up at some point.

Suppose you discover that your big fall release has been posted upon a filesharing system, and you discover who it is. Do you confront them? Would you take direct legal action against them?

No. If its not one individual it would be another. Plus, its not worth suing over CD sales of 25 copies.

If one of your artists posted an album they released on your label, how would you react? Would it bother you, or would you drop them?

I dont think any of our artists would do something like that. And certainly they wouldnt without first asking us. We have a good relationship with all the people involved with 555.

How can we change the growing mindset of acceptance of filesharing, or can it be changed?

It cant be changed. Everyone wants something for nothing. Bottom line-the kids are greedy.

Do you see any redeeming value in mp3/filesharing technology?

Well, of course I can see its uses. It has killed small labels though, my own included, so Im reluctant to say anything good about it...

If you could say anything to someone who's just downloaded (or about to download) one of your records, what would it be?

Its too late for that now. And you shouldnt really live your life with regrets. 555 is/was one of the best labels of the past decade. I think every one of the records and Cds I have released have been brilliant, and in truth, much better than any other releases of the time. But you cant force people to listen, and you cant tell people they are wrong either. Im sure 5 years from now, when all the small labels have given and theres no NEW music left to download, more people will get it. Im not going to hold my breath though...

keith (keithmcl), Monday, 20 October 2003 03:02 (twenty-two years ago)

I have almost unlimited respect for stewart, and i adore his label, but i find it a shame he's convinced that downloading is the primary cause for the massive drop in sales of indie releases.

the surface noise (electricsound), Monday, 20 October 2003 03:05 (twenty-two years ago)

the quality of releases has slipped a bit but maybe he's right--

by jove this is pish

the surface noise (electricsound), Monday, 20 October 2003 03:06 (twenty-two years ago)

i note he doesn acknowledge that it's not just the downloading

the surface noise (electricsound), Monday, 20 October 2003 03:09 (twenty-two years ago)

does (not doesn't)

the surface noise (electricsound), Monday, 20 October 2003 03:09 (twenty-two years ago)

keith where is this interview from?

the surface noise (electricsound), Monday, 20 October 2003 03:12 (twenty-two years ago)

http://www.mundanesounds.com/555.html

svend, Monday, 20 October 2003 03:14 (twenty-two years ago)

stewart is right. downloading is great if you don't give a fuck about the artists or the record labels and have no interest in supporting said artists or labels or really even new music. yeah for the end of everything due to greed cloaked under brainless self righteousness.

jack cole (jackcole), Monday, 20 October 2003 03:37 (twenty-two years ago)

*but* who's to say he'd be selling these CDs anyway, downloading or no downloading? i buy all his releases but i am not your average music consumer.

the surface noise (electricsound), Monday, 20 October 2003 03:39 (twenty-two years ago)

well, admittedly, downloading isnt the whole cookie but it may be contributing to the distribution problems. i mean, fuck, it has become increasingly difficult to find 555 releases here in Portland and if the stuff aint as available then people aint even going to think about buying it.

jack cole (jackcole), Monday, 20 October 2003 03:41 (twenty-two years ago)

very true. i'd be interested to know exactly what the story is with the distributors.

the surface noise (electricsound), Monday, 20 October 2003 03:45 (twenty-two years ago)

well, 555 main US distributor is Darla. i've heard rumors of Darla not necessarily being the most reliable but that was several years back.

jack cole (jackcole), Monday, 20 October 2003 03:50 (twenty-two years ago)

i gather they've picked up their game. i recall Stewart singing their praises not that long ago.

the surface noise (electricsound), Monday, 20 October 2003 03:55 (twenty-two years ago)

ah here we go:

Darla are one of the few distros we deal with that pay us regularly and sell
a decent amount of stuff. They have stood by my label and helped me grow
over the years. My sales in Europe are currently down 75 per cent from this
time last year, (UK in particular), so much so I am considering stopping
alot of my distro in Europe as I simply cant afford the postage anymore.
I would indeed by saddened if Darla disappears, as I would imagine my label
would fold and many others too. I could list you 5 or 6 distros that wont
tell me what they have or havent sold, or simply dont pay me. It took 4
years (!) to get 200 quid from one guy. There are others who have never paid
me and I am assuming never will. I have lost probably a couple of thousand
dollars from various flaky distros over the years. It happens sadly. And
thats why you stick by the good ones.
I have never had any problems with Darla. They are one of the good ones...

the surface noise (electricsound), Monday, 20 October 2003 03:55 (twenty-two years ago)

ha, distributors are the great satan, killing more record labels than anyone else. its good to see that the rumors about darla seem to be unfounded though. the stories i could tell about NAIL Distribution before they were sold to Allegro -- jesus christ.

jack cole (jackcole), Monday, 20 October 2003 03:59 (twenty-two years ago)

i used to buy a ton of indie releases via mail order because that's the main way i got to hear them. now that file sharing exists, the listening comes before the buying, so less buying happens.

fortunate hazel (f. hazel), Monday, 20 October 2003 07:05 (twenty-two years ago)

My label American Patchwork goes through Darla in the US and they do account regularly and fairly. I have only good to say of them.

Momus (Momus), Monday, 20 October 2003 07:13 (twenty-two years ago)

i find it difficult to believe that anyone who heard the Cannonball Jane, Plastic Mastery and Needles by downloading them wouldn't be ordering them within seconds. but that's just me.

the surface noise (electricsound), Monday, 20 October 2003 07:31 (twenty-two years ago)

i find it quite easy to believe that people download songs, and never buy the release

mentalist (mentalist), Monday, 20 October 2003 08:21 (twenty-two years ago)

So sad. My friends in the Love Letter Band/aka Bad Weather California have an album in the can that would have been released on 555. Now, alas, it sits in limbo.

I've worked in college radio for 4 years, and in this time i've definitely noticed changes in the attitudes of our student deejays towards piracy. These days, I see kids come in to deejay their show, and literally every CD in their 200-disc binder is an illegal copy. You should see the shocked and outraged expressions when i tell him, "No, you can't rip MP3s of all the new CDs in rotation onto your laptop."

Part of the problem is that these kids grow up watching MTV's "Cribs" and assuming that musicians are all wealthy. Naturally they see through the bullshit when Puff Daddy or Britney lectures them about it on MTV. And these idiotic lawsuits are alienating people who can't draw distinctions between the RIAA and the hard-working, non-litigious small labels.

Kevin Erickson, Monday, 20 October 2003 08:32 (twenty-two years ago)

i've heard rumors of Darla not necessarily being the most reliable

It's good to hear quite a bit of praise for them but I have heard -- directly, from bands and label folks -- any number of horror stories as well, involving money never paid and the like. This includes this year as well, so I do wonder sometimes; I will say my experiences ordering directly from them have all been fine. Of course, on a separate but hilarious note, there was the one time Mr. Darla REALLY REALLY wanted S***c Y***h to contribute to the Bliss Out series -- when said band refused, Mr Darla complained mightily on the Net, only to have one T. Moore respond...

Ned Raggett (Ned), Monday, 20 October 2003 09:50 (twenty-two years ago)

link plz ned!

Pashmina (Pashmina), Monday, 20 October 2003 09:54 (twenty-two years ago)

i'm glad they didn't. the series has been rather good, and it would be a shame to see that compromised by their tuneless witterings

the surface noise (electricsound), Monday, 20 October 2003 09:58 (twenty-two years ago)

i find it quite easy to believe that people download songs, and never buy the release

it was more a comment on the outstanding quality of these CDs. my life would be lesser without them.

the surface noise (electricsound), Monday, 20 October 2003 09:59 (twenty-two years ago)

I do think it's interesting that there's a disjunct between the reported perception of file-sharing, which is rich major labels and big stars getting the shaft, and the probable reality that the people sharing the most files are likely to be (predictably enough) the biggest music geeks, who are also likely to be into more 'specialist' genres like indie or punk or dance - certainly when I encounter someone sharing 10,000 songs on a hyperfast connection the vast majority of them tend to be smaller/indie label stuff.

My prediction is that music making will get more and more 'gift economy' - people making the music will have the same attitude a lot of web content creators have, it's something to do because you want to do it, but you know you're going to lose every penny you put into it because it's free at point of consumption.

Tico Tico (Tico Tico), Monday, 20 October 2003 10:37 (twenty-two years ago)

The whole thing is a two-pronged 12 ft lizard plot. Plan one was making it impossible for anybody to afford CDs by inflating prices while simultaneously reducing ppl's discretionary income, plan two was to curb artist's disproportionate cultural influence by first impoverishing them then making it impossible for them to continue altogether. Meanwhile all you consumers with index finger lodged nostrilwise are happy as pigs in shit cuz you get your distractions for free until you get down to your duty breeding Ritalin-bloated turkeys for the state to eventually send off to war. Good job, techno-egalitarians! (Lars Ulrich is a pussy, I want the artist/consumer war to get seriously ugly! Like in France or something)

dave q, Monday, 20 October 2003 11:23 (twenty-two years ago)

That CIA thing was disproved a long time ago and I am not going to discuss it any more. Hey, want a typewriter?

j0hn p3rry b4rl0w, Monday, 20 October 2003 11:25 (twenty-two years ago)

This just convinces me all the more that smaller labels should be taking the initiative and using their websites to provide a means for people to donate money and indeed pay for the material they have downloaded elsewhere or from the site. sure not everyone would pay but this is an attractive means for both the label to cut costs and for the fans to 'own' the music and support the label and artists without needing to acquire a physical artefact of fixed form.

stevem (blueski), Monday, 20 October 2003 11:33 (twenty-two years ago)

every single one of you that doesn't buy my next album is on my blacklist

the surface noise (electricsound), Monday, 20 October 2003 11:55 (twenty-two years ago)

Okay, I have a number of things to say about this. I love me some Stewart, but I think he's not taking into account a couple of very big things here. First of all, he doesn't even have his own domain name--it would take like 50 bucks to set up 555records.com, which he's never bothered doing. (Yeah, there's that long URL, but who can be bothered typing it in?)

Second, the distribution environment for the kind of stuff he and I like has been sucking since well before file-sharing got popular--it's just that distros didn't realize it yet, so they'd order 250 copies of something and then it'd sit on the shelf for years and get sent back. The labels that had gotten big enough to affiliate themselves with, say, Touch & Go or Southern have done okay; the rest have a very hard time getting stuff into hugely overcrowded mom 'n' pop store shelves.

Third, these releases that sell 25 copies apiece--do these bands tour the way Boyracer does? Do they tour at all, to speak of? Is there any reason anybody should think they're worth dropping $10 on sound unheard, other than that they're on Stewart's label? I notice in his catalogue that the two releases before the four most recent ones are in "limited supply"--they can't be doing THAT badly. I bought a stack of 555 releases last time I saw Boyracer play--it seems like a pretty solid distribution vector.

Fourth, there is the issue of college radio, which is how a lot of Stewart's and my label's stuff used to get exposure. Ten years ago, it was a very open field: an indie band that toured a little bit and sent its CD to the 60 or so top stations would get significant amounts of radio play, and chart in CMJ. Now, if you don't hire one of the big promotion firms to actively work it, your record will not get played at all but a very few of those stations; in most cases, music directors won't even bother to listen to it.

I mean, I feel Stewart's pain. I miss the days when I could put out a single by an unknown band, get a two-sentence review in MRR, and immediately get a 200-copy COD order from Japan, too. I haven't put out a full-length CD on Dark Beloved Cloud in over a year. But I've been doing the singles club to keep the P.O. box busy and get some music I love out into the world--it's not exactly "something for nothing," but it's a way of getting people to do something to get music. And it keeps a steady trickle of mail-orders coming in too. I do admire Stewart for his plan to do lathe-cut records next year--I want to hear them!

Douglas (Douglas), Monday, 20 October 2003 12:08 (twenty-two years ago)

have you put in an order for the lathe cuts douglas? $64 upfront was a pretty big sting but i'm confident the quality of the records will be high

the surface noise (electricsound), Monday, 20 October 2003 12:10 (twenty-two years ago)

it is interesting that up to a certain point, filesharing can work as an engine to promote a band's music but beyond that point the band begins to lose sales, to lose financial momentum. No one really knows where that point is, though, do they?

I don't know much about the 555 records thing, but it strikes me that maybe indiepop has a declining constituency anyway, and blaming it on filesharing may be misguided.

pulpo, Monday, 20 October 2003 12:52 (twenty-two years ago)

Not being in the record industry, I can't really say how accurate or not Anderson's claims are - I can say that his claims *feel* accurate, and do make me a little guilty for downloading. However, Douglas is right to point out the importance of a label's web presence. Also, I'm surprised at how little the notion of market saturation is brought up. Because of the internet (not in spite of), hundreds of labels that might never otherwise have existed in the first place have been able to have a go at releasing non-major label music. Is there any way a band like, say, Acid Mothers Temple gets decent exposure without the internet?

Anderson, I think, makes a very important realization regarding labels, when he says that for the youngest generation getting into music and filesharing, record labels will have greatly diminished importance. I fully expect we won't really see the fallout from filesharing for another 10 years.

dleone (dleone), Monday, 20 October 2003 13:17 (twenty-two years ago)

Douglas makes some good points about the URL, the distro issue, the touring issue. I know some of those bands toured pretty hard, seems like more than a couple of 'em lived in Australia though, which does complicate things.

As far as college radio goes, I know back when I was MD I eagerly anticipated getting mailings from 555/Red Square, but I can see how they might get ignored or lost in the volume of mail at other stations (especially since the discs came in plain paper sleeves, ostensibly to save money, and lacked even the standard "one-sheets".) MDs are under a lot of pressure: a promoter at Interscope offered my friend [name removed] a microwave if he would agree to chart Weezer as #1, and the little guys simply don't have the muscle behind them.

Granting that perhaps 555 aren't/weren't particulary efficient at self-promotion, I still think it's fair to say that piracy contributes to the difficult climate for small labels.

Kevin Erickson, Monday, 20 October 2003 13:24 (twenty-two years ago)

what would a good distribution model for indie labels look like? would it be more like co-op, the individual members being labels? then again, with the tenuous lifespans of some labels, something like that might be difficult to hold together. i also wonder if part of the problem is the terms given -- i.e. stuff like returnability -- i wonder if, like in the book trade, it might be better to sell for a little less and make things nonreturnable. of course none of that would change the fact that some distributors are utter scumbags -- (like, for example, Caroline). just idle thoughts.

i agree with a lot of what douglas said as contributing factors -- Steward hasn't necessarily gotten the word out as well as he could -- one wonders if it would have better for him to put out a few less records and spend the money on marketing more in the form of a website, advertising, etc. more press would also be crucial to the austrailian bands, who cool as they are, really dont have as much of a presence here for Joe Blow Indie Guy or Gal.

jack cole (jackcole), Monday, 20 October 2003 16:57 (twenty-two years ago)

I'm sure that filesharing has contributed at least some to 555's reduced sales, but I have to imagine that a lot more has to do with a simple lack of interest. The last time Boyracer were in town I think there were a total of 15 people in the crowd (counting band members). I don't know why no one showed, but for them to be experiencing similar CD sales doesn't surprise me.

fffv (fffv), Monday, 20 October 2003 17:20 (twenty-two years ago)

My prediction is that music making will get more and more 'gift economy' - people making the music will have the same attitude a lot of web content creators have, it's something to do because you want to do it, but you know you're going to lose every penny you put into it because it's free at point of consumption.

...but...but...this would be an utter disaster for those of us who love Great Big Pop Music like, say, the Backstreet Boys!

J0hn Darn1elle (J0hn Darn1elle), Monday, 20 October 2003 17:31 (twenty-two years ago)

"gift economy" is such a great incentive -- please making free things for selfish bastards while, you the artist, barely get by. i wish i could trust human nature enough to think that would work, but i really doubt it.

jack cole (jackcole), Monday, 20 October 2003 17:37 (twenty-two years ago)

Human nature wouldn't allow a decent gift economy to last very long for fear of missed profits anyway. Music is near and dear to too many people for someone *not* to get in on the Great Big Pop Music game.

dleone (dleone), Monday, 20 October 2003 17:46 (twenty-two years ago)

Incidentally, my old band Fetching Lettuce recorded an anti-piracy anthem in response to a pro-Napster article one of our friends wrote for the college paper. It's called "We Don't Live In A Marxist Utopia, Ryan Anthony Donaldson" and came with 2 nifty remixes on the supercool 3" CDR single format. I think we still have a few more somewhere if anyone wants a copy. Slightly dated, but still cute.

Kevin Erickson, Monday, 20 October 2003 18:57 (twenty-two years ago)

Perhaps it's just me, but I find it a little hard to believe that filesharing *alone* is killing off indie labels. It's obviously a problem but is it that simple? A few thoughts...

- The proliferation of cheap home recording equipment allows pretty much anybody to record their own CD and put it out in some shape or form whether on CDR or MP3. Just in the last few years there seems to be an immense amount of new material out there for listeners to sort through.

- What percentage of filesharing users are downloading "indie" music? Is the average kid in the burbs going to be downloading Acid Mothers Temple or the new Linkin Park album? I wonder about this one. For labels with small margins any level of piracy is going to hurt, but I'm curious about the scale.

Just my $0.02... sorry to hear of Stewart's ongoing problems.

steve, Tuesday, 21 October 2003 00:40 (twenty-two years ago)

I read somewhere about a label that has been set up as pure download. Furthermore people can choose how much to pay for the recording. 50% of the money coming in goes to the label and 50% to the artist. Apparently it has been a huge success. This is probably going to be the model we use for a band or two we are going to promote. Being a web and database developer and hosting company all the technicals aspects of this are easy enough.

mentalist (mentalist), Tuesday, 21 October 2003 02:44 (twenty-two years ago)

Excellent point Steve, re there being an absolutely incredible amount of shit being released now, it would be silly to imagine somebody buying all of it even if they 'couldn't get it for free'. One thing I wonder - is there larger amount of indie stuff now than there were, say, 'regional' 45s pressed back in the 50s or something? Not that I would ever ever defend thieving by students and non-artists, but maybe the reason people don't buy stuff is that if you walk into a shop and there's 500 new CDs released that week, doesn't it paralyse someone with uncertainty that the one 'they' buy is only the 498th best? I know every time *I* buy something, I suffer intense buyer's remorse, it's like playing the lottery now in terms of sheer amount of choice

dave q, Tuesday, 21 October 2003 06:42 (twenty-two years ago)

Online 'only' CD labels are not exactly rare, I have one myself. All the albums on it are rubbish and I have not sold one.

I set one of them up on Vitaminic a couple of years ago, there were plenty free downloads of the lead track, but no sales. I did not expect any, not because the CD was bad, but why would anyone? As someone just said, there is too much music around anyway.

I did buy two copies (for legit reasons), and hey, it went to number one in the indie lo-fi chart! Rock and roll!!!

mark grout (mark grout), Tuesday, 21 October 2003 08:03 (twenty-two years ago)

The thing about "gift economy" work is that you're pleasing YOURSELF more than the 'punters' in general - this is why I mentioned web content stuff, for a lot of the people who got into setting up websites in the 90s there was never an expectation of getting any money back, ditto people who put together pop fanzines. There are enough people who just want to get their stuff out for the notion to be semi-viable. I'm not saying it's a GOOD thing particularly - my favourite musicians have given me so much pleasure that I like the idea of them being happy and wealthy - but I think it's how things will go.

Is it a bad thing for fans of Enormo-Pop? Yeah, potentially BUT I think file-sharing will reach a peak, if not now then perhaps soon, because it is seen as difficult and a bit risky and the industry will keep on doing its best to make it *more* difficult. (Kazaa usership in the states is down by about 35% in the last 5 months thanks mostly to the prosecutions tactic I'd guess).

My guess is a two-tier music industry - big pop, big names and guaranteed bankers for the non-downloaders (though less profits than of old); smaller networks (local scenes, net fanbases), gift economy work and other revenue streams for the specialist/indie industry. Small label bosses are indeed fucked - the 'friend with a record collection' in future might well be a tightly-edited portal pointing to new downloads or offering some, epitonic style. There's an issue as to whether these tiers link up, but I get the impression the big music business has been investigating for years less 'organic' ways of finding new talent.

Tico Tico (Tico Tico), Tuesday, 21 October 2003 17:01 (twenty-two years ago)

"Kazaa usership in the states is down by about 35% in the last 5 months thanks mostly to the prosecutions tactic I'd guess"
it's probably more to do with the fact that Kazaa utterly blows and people have moved onto better things, like slsk. but that's just a guess.

Felcher (Felcher), Tuesday, 21 October 2003 19:08 (twenty-two years ago)

No - the user stats show steady month-on-month growth and then a sudden reversal this spring - and nothing else is growing (slsk thank goodness is too small to even be noticeable). Certainly a hardcore have wised up and moved on but the bulk of the lost users will be the infrequent file-sharers who believe the RIAA hype.

Tico Tico (Tico Tico), Tuesday, 21 October 2003 21:22 (twenty-two years ago)


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