🔵 Thoughts on the Ninja Tune sale to Concord

The questions we should be asking as an industry now

Since the news yesterday that Ninja Tune has been acquired by Concord, my inbox has lit up like a Christmas tree. I’m on a day off today, but figured I’d get some thoughts out before heading off to a Wes Anderson exhibition, of all things.

First up, since a few people have asked, I can confirm that yes, Ninja Tune was the label in question that I was referring to in my article from July last year, speculating whether a large indie label was up for sale. At the time, it was a major label’s name that was on the block as a potential buyer, so if anything, the news that Ninja Tune has not done that is a welcome development.

Is Ninja Tune selling to Concord a positive thing? I would argue it is, yes, and for a variety of reasons. Concord also owns Loma Vista (albeit with a majority stake, as I understand it, rather than outright ownership). That label has only gone from strength to strength since that deal was done. The backing has enabled it to sign bigger and bigger acts and invest more heavily into A&R, and from where I am sat, the outcome has been positive. Of course, I am biased because of my background with Run the Jewels and the fact that Loma Vista signed Killer Mike, with whom I worked on Mike’s return solo album, which went on to win three Grammys. But that’s still a massive success, right?

Either way, one might argue that Concord has not simply asset-stripped a label and reduced it to a catalogue function. There is absolutely no reason to think the same would happen to Ninja Tune either. Quite the opposite: this may empower Ninja to chase more aggressive deals and sign even bigger acts, so it is by no means a swansong. For what it’s worth, I also understand that the existing Ninja Tune team will remain in place, which is great.

Equally, we are in a phase of significant consolidation. As I have said in the past, a sale to a major label would be a bad thing in the sense of it only further empowering the three incumbents. Selling to somebody like Concord or another company like Exceleration, for example, is therefore as positive an outcome as one can hope for, short of a sale into an employee-owned trust as Beggars Group achieved last year. On that basis, this just expands the number of power players in the marketplace and that is certainly preferable to further increasing the power holdings of Universal, Sony or Warner.

In summary, then, yes, I think this is a positive thing. Doubtless, some may take a view that an indie selling up to any massive company is bad, but I can only repeat my thoughts from my article of July last year: sales of any business are inevitable unless there is a familial succession plan in place. At some stage (not any time soon I should stress!!), Motive Unknown will quite likely go up for sale on the basis I have no familial succession plan, so it is important to accept that these things are an inevitability. You might not like it, but that’s how it is. Motown was an indie. Def Jam was an indie. Hell, even Geffen was an indie at one point, if I recall correctly. It’s just how these things go.

Last June I wrote about the exit plan for indie labels in general, and I feel it only right to revisit the contents of that article as another label is sold. The catalyst for the original piece was Cooking Vinyl’s sale to Exceleration, but really, it’s not about specifics. It is about a generational wave of independent labels all reaching a point where a sale feels inevitable. Look around at the labels that are all of a similar age to Ninja Tune (or potentially older) and I would argue you have your short list of businesses for whom we should not be surprised at any announcement of a sale, were it to come along.

So, strap in for more of these announcements in the coming years, because they are absolutely going to happen. You might not like it, but it is inevitable.

The real questions I feel we have to ask are the same ones I flagged last year, namely: what does this do to the independent label landscape, and where are the indie labels rising up to replace those selling up or possibly being wound down into purely catalogue functions?

Let’s tackle the latter question first. For some time, I’ve been wrangling with what I feel is a truth, namely that there are not any indie labels rising to the same level of turnover and market competition capability as some of the bigger indies, of which Ninja Tune is a good example.

I think it may be too easy to paint this as a wholly negative development. In reality, the nature of the market is shifting, specifically in the direction of artists and the empowerment that they now possess. However, if we accept that the market will be comprised of a much longer tail of smaller independent operators, I feel important questions should still be asked as to how that long tail is represented in terms of trade body and general negotiating power within the industry itself.

That in turn brings me back to my first question, which is what impact this all has on the independent label landscape. In that regard, I fear the answer is more negative. Yes, technically companies like Concord and Exceleration are indies, but I think it fair to suggest that wholly indie operators such as those comprising the Orca think tank, for example, may not view themselves as being the same type of business as Exceleration or Concord. The aims and desires are fundamentally different, and therefore these companies are not on the same page relative to what they need in terms of trade body representation. On certain topics, such major label market dominance, I would imagine they have many a shared aim, but once you get past that, the perspectives differ significantly.

As I have written about in the past, labels are facing a challenge as to their point and purpose right now. The various moats that they maintained to allow privileged access to things like sales points, technology, or management of IP have all been eroded. This is why artist services companies like AWAL are flourishing so wonderfully.

However, the industry (and arts and culture in general) is constantly evolving, and I do still feel that labels have a role to play as a nexus point for sounds, scenes, and communities. Right now, that value may have been eroded, but I firmly believe that at some point it will come back around, and perhaps when that does happen, the power of indie labels will once again surge.

Finally, if you’re still reading this with a sense of despondency as to what is going on here, I will only say this: all of this business, every last corner of it, is built on the output of artists and raw talent. Artists will dictate the way this plays out in the end, and in that regard I have absolute confidence that we will soon be seeing a shift once more in which artists will find their value once again. In the face of AI and various other challenges, it might not look like it, but equally it is when things get to their hardest point that you see true change really come about.

I feel we are approaching that now.

Have a great day,

D.

🎶 Listening to “Get Fluffy” by Cvche. Apparently Cvche describe themselves as “an Experimental Rural Canadian Techno supergroup” which instantly puts my bullshit filters on high alert, but mercifully the music here speaks for itself, and I’m loving it. Melodic techno is the name of the game, and it’s proven quite the soundtrack to a frenetic working day or two of late. Dive in.

📺 Watching “Tilly Norwood | Take The Lead (Official Music Video)” on YouTube. If you’re not aware, Tilly Norwood is a wholly AI creation that is now being pitched as a music superstar. So far, so cringe. However, don’t feel the need to watch the video, but instead go and read the comments, which are unremittingly critical and mostly hilarious. If you want a barometer of sentiment on the desire to push AI onto Joe Public, look no further than the comment section here.

🏢 Loving… our new office! No, no, you are not seeing things: Motive Unknown, which since lockdown has been steadfastly remote, now has an office bang in the middle of London. We’ve taken up a space on Dean Street in Soho, and frankly it feels wonderful to be back in the thick of the action. For what it’s worth, we remain a remote company, and the office is there for staff to use as and when they wish to, but I’m loving being back in town again. I am hoping we will also have some big announcements soon regarding events at that space as well. Stay tuned!

---

Gleefully accepting music recommendations!

I do really enjoy getting suggestions for either existing music or forthcoming releases to check out. So, if there’s something you think I might like, do feel free to get in touch. Always keen to hear the weird and wonderful things going on out there. And, with 6000+ subscribers, I’m happy to spread word on things I’m loving too.

---