Music Labels Enter Artist Management Business to Survive

medcom.id, Jakarta: Recording companies, or usually known as the labels, should be smart in observing every available opportunities at the current era. The music industry's evolution in just a short amount of time has affected the label's financial state, where one of the solution is to open an artists management.

 

Simply, an artist management is a system managing the career of the artists in relation to his/her work. In this case, music. The label has the right to promote and market the artist's image and work to various brands and music (performance) stages. In return, the label cuts the income of the artist for their professional requirements.

 

In Indonesia, one of the giant labels embarking on this artist management business is Sony Music Entertainment Indonesia. The success of Sony Music in building the artist's career is commendable, with real examples such as Isyana Saraswati and GAC trio. 

 

"There is a certain revenue we can develop, aside from marketing for stages, we can also build the artist, to develop themselves. Aside from selling songs, we can also direct them into singing on live shows, or singing in family gatherings, company events, or even broader, cooperating with brands," said Alexander Sancaya, Managing Director of Sony Music Entertainment Indonesia, when contacted by Metrotvnews.com, some time ago.

 

The man closely known as Mr. Alex is optimistic that the artist (talent) management division will not conflict the nature of a label as a company producing music. Moreover, artist management is promising on business perspective.

 

“For developments, there are lots of departments in a company. Artist management is not a trend, but it will become a revenue projects to be considered. As in many cases, physical and digital sales leading to streaming are quite challenging from the revenue. As currently on streaming, the income is calculated based on the contribution within the song. Therefore, the label should expand other businesses and artist management is one of the development keys."

 

When asked more on the label's revenue from artist management business, Alex did not go into details. Surely, the income from the division has surpassed the physical sales of the music, which is currently eroded by the development of the era.

 

“(Revenue of artist management) is not bad, as physical (sales) seized from growth. CD stores are extremely limited, as the label should improve to counter any physical sales decline," Alex explained.

 

For musicians, the label's stance in grasping into the artist management business has become another alternative, aside from the emerging pros and cons.

 

If a saying once said 'There are many ways leading to Rome', the artist management run by a giant label can be a mean of these musicians in embodying their sweet dreams.

(WAH)