The New Music Business with Ari Herstand cover image

The New Music Business with Ari Herstand

How Sub Pop Records Develops and Funds Artists

Sep 18, 2024
Tony Kiewel, President of Sub Pop Records, shares insights from his extensive experience in the music industry. He discusses Sub Pop's investment strategies and how they develop artists at different stages of their careers. Kiewel highlights ORCA's mission to improve financial transparency and support for independent music. The conversation touches on the challenges indie labels face amidst streaming changes and the importance of cultivating unique talent over social media popularity. Get ready to explore the evolving landscape of artist development!
01:27:01

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Sub Pop Records primarily generates revenue through various licensing arrangements, emphasizing long-term financial planning over ownership of recordings.
  • ORCA aims to improve transparency between independent labels and artists while advocating for essential policy changes within the music industry.

Deep dives

Understanding Revenue Streams in the Music Industry

Revenue in the music industry primarily derives from various licensing arrangements rather than ownership of recordings. Record labels, like Sub Pop, manage distribution and exploit recordings to generate funds that fill a financial gap before splitting profits with artists. The major forms of revenue include streaming, film and TV sync licenses, and record sales, each contributing significantly to the overall financial performance of a record label. Licensing contracts usually span a period ranging from seven to twenty years, emphasizing the long-term financial planning involved in the business.

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