| General Bobby Farrell | Bobby Farrell Promotions | Vandor Company Directory |
ARTICLE 12 |
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Geoffery Borginton, International Industrial Review, Investigative Reporter Bern, Switzerland The Super Six (6) General Licensers distribute virtually all the records available in legitimate record stores world wide. There are a few grandfathered Labels, some with National, a few with neighboring-country International, but none with world wide licensing and distribution. Only the Super Six General Licensers are global! If you're talking to a label, the odds are you're negotiating yourself into a shelving contract. That's the 'sweetheart' deal that sounds great, costs you nothing, and owns your soul and everything you create from date of signature to the far reaches of oblivion. Even if you're laying down a huge chunk of money! The old "If you've got a million dollars, we'll match it!" game played so well in the so-called music capitols. A little-known fact is that all labels are caught in a near-closed market situtation. In order to have legitimate distribution, above and beyond the Mom & Pop operations, there are Fiduciary and Administrative requirements beyond the financial and expertise scope of virtually all Independent Labels. Most have to do with anti-counterfeiting Codes and Measures that will stand up in any court; product return (the money-back guarantee known in the Industry as buy-back) that must be in the Bank and not dependent on a 'promise' from somebody out in the hinderlands; established bank-transfer and credit lines that can often be into the millions of dollars; and promotional endeavors for both the Artist and recorded product. The legalities in these areas alone are mind-boggling. Then there's the Buyer's side of the story. First, the cost to establish, administer and maintain accounts by Main Line Chains and Major Wholesalers is usually far greater than the profit earned from independent labels who release only one or two projects a year, if that! Most are self-produced custom runs with only the Artist who owns it as the 'stable', known as "hip pocket" labels in the Industry. Second, a product that is not properly promoted has little chance to compete against product supported by any of the Super Six. Third, there is the liability factor, which includes all relevant clearances and licenses lest a product contain protected materials used without permission. Nobody wants to spend their narrow profit margins on Attorneys and Court costs because some wannabe is ignorant of mechanical or other use requirements and procedures. Distribution, manufacturing and licensing are available at all the Super Six General Licensers. All, except Vandor, require at least TEN MILLION DOLLARS ($10,000,000.00) (USC) PER YEAR in sales. Or if you prefer being an Executive Producer and releasing on one of the relevant Flagship labels, you must be prepared to deliver not less than FOUR (4) PROJECTS per year at $2.5-Million (USC) each. Some of the Minor Majors (Independent Labels who license and distribute through one or more of the Super Six) may be under that amount if the Artist Development budget is enough to make up the difference. Even then, only Vandor will assist in getting you the necessary finances. This (United States) issue lists the six General Licensers in alphabetical order: BERTELSMANN MUSIC GROUP (BMG), 1540 Broadway, New York NY 10036; Tele: 212 930 4000; German owned, RCA and ARISTA are flagships. Distributes J Records, Vanguard, Jive, Mammoth, Ariola, Bad Boy, La Face, Volcano and BNA. [UPDATE: (2004) BMG has merged with SONY!] CAPITOL/EMI (EMI), 810 7th Avenue 4th Floor, New York NY 10019; Tele: 212 603 8600; British owned, CAPITOL, EMI and TOWER are Flagships. LIBERTY and UNITED ARTISTS are no longer active except for Specialty Product of expected limited market value. Distributes Nettwerk, Artemis, Liquid 8, Heads Up, Acony, CarPort, London, FFRR, and Virgin as it moves from BMG. SONY (GRG), 550 Madison Avenue, New York NY 10022; Tele: 212 833 8000; Japanese owned. CBS and COLUMBIA are flagships. Also owns Epic, Screen Gems. Distributes 550 Music, Immortal, American, Monument, Aware, Loud, MoTown on occasion, Blue Note, Legacy, Manifesto and So So Def. [UPDATE: (2004) SONY has merged with BMG!] UNIVERSAL (MCA), 70 Universal City Plaza, Universal City CA 91608; Tele: 818 777 4000; Seagram's owned, MCA, DECCA and Universal are flagships, licenses MoTown, Geffen and Vocalion. Bought out Polygram in 1999 and merged(?) with Vivendi in 2001. Distributes A & M, Rounder, Wind Up, RadioActive, Republic, Almo Sounds, Lost Highway, Dreamworks, Peak, Concorde, Island, Lyric Street, Polydor, Mercury and sometimes Interscope. VANDOR MUSIC GROUP (VMG), 1826 Poplar Lane SW, Albuquerque NM 87105; Tele: 505 247 4843 - Fax: 505 265 8942; Privately owned, VANDOR, JUKE RECORDS OF TENNESSEE, and VMG WORLD WIDE are flagships, licenses IceFire, Peony, FMC Ltd., Suddath, Nitram, and distributes more independent labels than all the other General Licensers combined. Pays the highest mechanical royalties, offers up to seventy five percent of initial promotion financial support and all follow-up distribution and licensing costs. Assists with project financing, including seed money. Contracts and licenses through its own Agents - from individual Executive Producers through full group companies. Has an impressive string of Platinum, Gold, and Chart records. Does not stock product until market demand justifies the expense reducing buy-back (product return) to a minimum. WALT DISNEY COMPANY (WDC), 500 South Buena Vista Street, Burbank, CA 91521-9722, Tele: 818-560-1000 - Fax: 818-560-1930; primarily an entertainment Theme Park, motion pictures and television progams. Owns Buena Vista and Disney labels. Distributes DreamCatcher and Hollywood. Disney's interests are mostly with their own Themes and Program music and albums. WARNER BROS. RECORDS, INC. (WEA), 3300 Warner Boulevard., Burbank, CA. 91505 - Tele: 818-846-9090; One of the world's largest companies, combined with America On-Line and owns CNN. Distributes Warner Bros., Atlantic, Elektra, Nonesuch, Reprise, Lava, Concord Jazz, EastWest on occasion, Sire, Tommy Boy, Geffen, Giant, Rhino and Maverick (owned by Madonna). (2003) Sold its manufacturing and distribution to CinRam, Canada. Some labels move from one General Licenser to the other project by project, such as Virgin from BMG to EMI, MoTown from CRG to UMG, and InterScope sometimes with WEA and sometimes with UMG, so nothing is ever very permanent in recorded music. The reasons are usually economic rather than legal, creative or administrative differences. The Super Six always pool resources as profit dictates, and labels often have no other financial choice. The cash register can make some very harsh demands. And due to that cash register, the fact is you'll find that with the exception of Vandor, the rest of these doors are closed for all intents and purposes. Vandor is uniquely established to secure business investment and venture capital for proven clientele, Artist or Label, and is the only true General Licenser of the Super Six that is debt free. Without the logistics and support of a General Licenser, marketing expertise, manufacturing, promotion and distribution, there is little, if any, hope of success for any record. Getting financial support is easy enough if you don't expect someone else to pay all your bills! Pay your share and they'll all pay theirs, but none is going to lay out millions of dollars to anybody on the basis of a do-nothing and doing-nothing label or production. All the General Licensers need competent business associates, but none needs to finance any wannabe regardless of talent or originality. If you want to "be discovered" be prepared to wait a very long time, perhaps several lifetimes. But if you want action in this millenium, get your business house in order and contact any General Licenser. |
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Since new count began, 22 April 2008.
