http://www.collegiatetimes.com/stories/212...dustry-standard

 

Have you ever been to a thrift shop? If you have, then you’re participating in the latest transformation of the music industry. A small indie, genre-bending hip hop artist from Seattle has changed the landscape of music business forever. If you have not heard of Ben Haggerty, known globally as Macklemore, you need to start listening. His rise to the top has the era of dominant music labels is crumbling.

 

According to Entertainment.ie, Macklemore has recently become the first unsigned artist to reach number one on the U.S. music charts since Lisa Loeb did it in 1994 with her song “Stay” from the popular movie, “Reality Bites.” However, Macklemore did not have a hit movie to promote his song, but what he did have was a strong social network following and a passionate fan base.

 

Macklemore did not have a powerful label promoting his songs on the radio. He did not have a world famous producer making his beats. He did not have name recognition in the rap game. With simple word of mouth and an Internet takeover by his fans, Macklemore’s song “Thrift Shop” has become a staple on the radio waves without any label backing.

 

“Thrift Shop” is approaching 70 million views on YouTube, and Macklemore has performed on Ellen, the daytime talk show hosted by renowned comedian Ellen DeGeneres.

 

What does this mean for famous music labels like Warner Bros., Island/Def Jam, Aftermath, Epic, Atlantic and Columbia? Macklemore has showed us that he does not have to conform to a label’s requirements or creative control over his music to become popular.

 

 

Advantage of owning your song/your own label: You get 70% of the revenue from Itunes/Amazon/Spotify.

If you sign to a major label: You get around 10% of the revenue from Itunes/Amazon/Spotify. The major label gets 60%.

 

 

 

If MACKLEMORE & RYAN LEWIS get #1 in the UK Singles Chart, when was the last time that an unsigned artist achieve this?

 

Before 2013, the last time that happened in the USA was in 1994 with this song.

Edited February 5, 201312 yr by Dust2

Not sure it's ever happened before in the UK? Wasn't Alex Day attempting to be the first unsigned artist to get to #1?

Where do you get the figures "You get 70% of the revenue from Itunes/Amazon/Spotify.

If you sign to a major label: You get around 10% of the revenue from Itunes/Amazon/Spotify. The major label gets 60%." from?

Where do you get the figures "You get 70% of the revenue from Itunes/Amazon/Spotify.

If you sign to a major label: You get around 10% of the revenue from Itunes/Amazon/Spotify. The major label gets 60%." from?

 

Itunes/Amazon MP3 pays the right holders 70% of the revenue. They keep 30%. This is very common knowledge for those that follow the music biz. Spotify recently said they pay 70% of their revenue as royalties.

 

As for what an artist get from signing with a major label:

 

http://www.musicbizacademy.com/articles/dl_newmedia.htm

 

Artist iTunes Royalty (with wholesale markup)

$0.99 download single song price to the consumer

less $0.29 to Apple

left $0.70 x 130% (wholesale markup)

x 12% (net artist net rate) = $0.1092 cents per download

 

Artist iTunes Royalty (without wholesale markup)

$0.99 download single song price to the consumer

less $0.29 to Apple

left $0.70 x 12% (net artist net rate) = $0.084 cents per download

 

I use 10% since that's about the average

Macklemore & Ryan Lewis are the highest charting unsigned artist(s) now (#2 with Thrift Shop) - it previously was Alex Day (#4 with Forever Yours). We've sadly never had an unsigned artist at #1, I'm glad that it looks to happen this week with a great song too!

Unsigned artists weren't even allowed to chart until 2007, so you're not going to get much more of a response to this thread.

^really? Well, that is really... Sad then. You really did have no chance if you were unsigned. That said, you couldn't print cassettes by yourselves and put them onto shops to sell. :lol:

Unsigned artists weren't even allowed to chart until 2007, so you're not going to get much more of a response to this thread.

Unsigned acts have always been allowed to chart - if they sold enough records. It's just that back in the days of physical singles it was more difficult for an act to self release a single and then to distribute it to enough shops for it to sell enough for it to chart. But it has happened. Mark Joseph reached number 38 with 'Get Lucky' in March 2003 while he was an unsigned artist with a single that was self financed, self released (on his own Mark Joseph record label) and self distributed to a small handful of Virgin record stores throughout the country. He also wrote, produced and played every instrument on the single so it really was a one man show. It sold 3,000 copies the week it entered the chart. He also made the top 40 with three further singles while being an unsigned artist but these were released on a single by single deal with 14th Floor Records who also distributed the single.

Wait. What? Macklemore & Ryan Lewis are unsigned?! :huh:

 

SO CONFUSED :drama:

I'm baffled that no record label has picked them up. Unless they've refused all offers for some reason, it's bizarre. I suppose if they think 'Thrift Shop' wouldn't be any bigger with label support, they may as well wait for it to calm down before they sign a deal.

Edited February 6, 201312 yr by Umi

TBH, I don't think it'd have gotten the hype it needed to if they were signed to a label. I'm sure it'd be forced more down our throats. I've always thought 'Thrift Shop' was being promoted exactly how a song needed to be promoted without seeming like it's being forced. (That make sense :lol:) Well it makes sense to me now, that I know they're not signed and are doing this independently. I guess it's the reason why 'Same Love' and one of their other tracks are doing pretty well on iTunes (well in the US) considering they've not had the airplay TS is getting.

I'm baffled that no record label has picked them up. Unless they've refused all offers for some reason, it's bizarre. I suppose if they think 'Thrift Shop' wouldn't be any bigger with label support, they may as well wait for it to calm down before they sign a deal.

 

Record labels want to sign them. They said no.

 

Why settle for 10% of revenue when you can get 70% of revenue?

 

 

You're not comparing like with like.

 

 

For the 70% of an "unsigned" artist you're basically including all royalties, while for the 10% of a "signed" one, you're only including artist royalties

Correct me if I'm wrong but isn't the Macklemore album being distributed by a major label?

They're not signed, but I read somewhere a while ago that they work with one of the major record labels in some way (I can't remember how exactly though).

They're not signed, but I read somewhere a while ago that they work with one of the major record labels in some way (I can't remember how exactly though).

I don't know about how Macklemore releases his music outside the UK but inside the UK 'Thrift Shop' is distributed by Arvato, a major distributor of digital and physical releases for a number of major record labels.

Edited February 6, 201312 yr by Robbie

I don't know about how Macklemore releases his music outside the UK but inside the UK 'Thrift Shop' is distributed by Arvato, a major distributor of digital and physical releases for a number of major record labels.

 

Yeah, that might've been what it was. It was months ago that I read about it, when on another forum I go on people were having an arguement about whether he was signed or not. :lol: He's been getting some amazing promotional slots for an un-signed artist before Thrift Shop blew up (obviously I'd understand it now).