Indie labels get music download channel

A new set of services aimed at giving independent music labels online distribution is springing up, hoping to reach companies such as Apple's iTunes and the new Napster.

San Francisco-based Independent Online Distribution Alliance (IODA) is the latest to hit the scene. It launched on Monday with deals in place to negotiate digital rights on behalf of 50 labels whose music it hopes to place with the growing net download and subscription services. A few older companies, such as CD Baby and The Orchard, also represent the digital rights of independent artists and labels.

IODA founder Kevin Arnold said: "What we're saying is that this solves problems for both parties, and particularly for the independent labels. Typically, independents are companies with small staffs that don't have a lot of expertise with digital rights, and don’t have in-house attorneys."

The move towards organisation of independent labels could help speed the acceptance of authorised music subscription and download services, most of which have focused so far on acquiring music from the five major music labels.

The Big Five labels represent about 80 per cent of the music sold in the US and Western Europe.

Independents typically have small but often dedicated fan bases. Some industry reports show that many indies have actually fared better than larger labels through the economic downturn, with sales growing, sometimes substantially, in 2002 while overall industry revenues fell by close to 11 per cent.

John Borland writes for News.com