How Two Black Marketing Execs are Changing The Music Industry
Song of the Week: KAYTRANADA: One Too Many (feat. Phonte)
This was stuck in my head yesterday, and it’s the perfect vibe for a Friday.
Next week is Thanksgiving and even if you may not celebrate it, the world does slow down a bit for the holidays.
Today is a new 24, if nothing else we can all be grateful for that!
Let’s get it.
As the year winds down, I’ve seen a new dynamic come into play — one that’s been on the horizon for years, but for the first time feels fully formed, and it’s manifesting through what I call…
CREATOR HUBS.
There’s probably a better name for them, but I digress.
Marketers and advertisers talk a lot about the creator economy and how power is coming back to the creators, but I think these hubs are representative of a larger trend at play, which is the (eventual) end of predatory models of business.
Why?
Well, creators now have direct access to their audiences, their analytics, and their influence.
Because of that, many of them know what they could and should be making monetarily.
In prior decades, this couldn’t have been the case.
Royalty accounting was waaay murkier, and it was never a question of whether you’d own your Intellectual Property.
The implication was always that you’d be giving up your rights, and given a tiny percentage in exchange for them.
And if you’re lucky, you might even make a living.
But that paradigm has shifted drastically.
Major Labels are smelling blood in the water and changing course.
Some even partner with indy imprints that they don’t openly promote, and others pivot towards more investor-centric deals with access to resourcing with no transfer in IP ownership required.
While there are players in the game who recognize this, perhaps the most prominent execs leading the change are two Black marketing vets and tech founders who have deep roots in the music industry.
They are:
Steve Stoute & Larry Jackson
The founders of United Masters, and gamma, respectively.
Why highlight them, you ask?
Well, I suspect that as this paradigm shift occurs in music, it will eventually affect creative agencies — something that we hinted at last year in our piece on the rise of creative collectives.
That said, today is about two people who are actually paving a way forward in this crazy game.
Let’s dive in.
STEVE STOUTE & UNITED MASTERS
“The labels give you a loan and they turn that loan into ownership in perpetuity… and they know it’s wrong” - Steve Stoute
Steve Stoute a.k.a. The Commissioner!
As Pusha T would say… He’s a legend in two games like he’s Pee Wee Kirkland.
Stoute is one of the most prominent faces in advertising, and the CEO/Co-founder of acclaimed creative agency Translation (founded with Jay-Z and Jimmy Iovine).
He’s also music industry heavyweight who’s had his hands in a number of hits, including “Still D.R.E.” by Dr. Dre.
And, if that wasn’t enough, he’s the one who connected Pusha T with McDonald’s to write the “I’m Lovin’ It” jingle.
He even managed Nas at one point.
Why does all of this matter?
Because Stoute knows all of the tricks of the trade, and understands how predatory record deals can be.
When he paired his music industry experience with his experience as a marketer, he was able to see the the scope of what was happening in entertainment from a consumer, brand, and agency side.
It gave him an idea for a completely new kind of company…
THE PREMISE
Independent artists have a hard time getting started in the business.
Uploading music is confusing. Royalty collection is confusing. Marketing is confusing.
People are waiting to trap you in bad contracts and rob you in perpetuity at every turn. Seriously.
Specifically with distribution, even if an artist finds a good distributor, they often have to give up a percentage of their money — all for a company that won’t even go to bat for them, or answer a customer support email when things go wrong.
But…
What if there was a company that distributed your music, let you keep your royalties, AND helped you work with the brands you love. AND you still own your music.
Seems like that should be the standard, but it isn’t.
Only select indy artists are afforded those types of deals, not the everyday kid just getting started.
That’s why Stoute created…
UNITEDMASTERS
UNIQUE SELLING PROP: A RECORD LABEL IN YOUR POCKET
If you listen to Stoute talk about UnitedMasters he encapsulates what makes its special with that one sentence.
But, let’s expound on what he means when he says “a record label in your pocket”.
The competitive advantage that separates UnitedMasters from other companies is that its founder also happens to have an extremely success creative agency at his disposal.
That means two things:
A. PROMOTIONAL SUPPORT
Artists can sign up the UM for free (in exchange for a 10% fee of their earnings), or pay $60 a year to keep their earnings and depending on how successful they are, there’s an invite-only tier available where UnitedMasters will extend them marketing support and financing.
B. ACCESS TO BRAND DEALS
Translation works closely with the NBA.
Stoute has extended opportunities for artists to work with the NBA and other brands provided they are signed up with UnitedMasters. Other distro options aren’t really doing that.
THEN THERE’S LARRY JACKSON & gamma…
“gamma is built with the flexibility and aptitude that creators need to connect with fans on all formats and across all channels – with transparency and no restriction.” - Larry Jackson
You may have heard of gamma (yet).
It’s a fairly new player on the scene, but some of Hip-hop’s biggest artists are working with them.
It was founded by former Apple Music exec Larry Jackson, a music industry vet who, at one point, was Chief Creative Officer of Beats and a heavyweight at Apple Music once Beats was acquired.
gamma even received an investment from Apple after his departure, and various sources say the new venture has $1 billion dollars in funding.
If you still don't think you’ve seen gamma yet here are a few of their recent efforts:
Snoop Dogg x Death Row: Snoop partnered with them to bring the Death Row Catalog back to streaming platforms
Sexxy Redd: They’re the record label behind her rise in culture.
Meek Mill & Rick Ross: gamma is the distribution company for their new album “Too Good To Be True”
And this is just the beginning.
2024 is poised to be a big year for gamma.
UNIQUE SELLING PROP: ALL IN ONE SOLUTION FOR ARTISTS
What makes gamma unique is that they’re an integrated solution for artists looking to expand to different mediums of entertainment.
Whereas record labels offer their services to artists for touring, radio, and marketing, gamma is taking a more modern and refined approach by extending their services to other fields like podcasting and D2C products.
For example…
A. Artist-Centered Businesses
Larry has stated extensively that gamma different is focused on the artist. Not just their music, but the entire ecosystem they hope to create.
That means no matter what the endeavor, whether it’s a direct to consumer product or a feature film, they have the support AND resources of gamma — which is something traditional record labels don’t offer, unless you’re in a 360 deal or something similar.
B. Owning the Means of Production
With their funding, gamma has also acquired Vydia — one of the largest distribution platforms in the world that covered everything from royalty payment to video distribution.
The acquisition is another testament to the integrated offering that gamma is giving to artists who partner with them.
Having Vydia at their disposal means that artists don’t have to find another partner to help them release their content or account for their money. Everything is done in house, which makes the process more transparent.
And, it helps everyone get paid quicker.
In some cases, gamma artists are even paid weekly — something unheard of in the music industry.
Check out this panel with Snoop where Larry breaks down what gamma is all about:
WHAT DOES THIS MEAN FOR THE FUTURE?
I believe we’re more or less in a fully baked version of what the last round of tech innovations were creating.
What I mean by that is the world shifted when streaming & social media hit the scene — it gave the power to the user.
Now, especially in tough economy, creators demanding a fair share and expect companies to have some skin in the game if they want to partner with them.
And, rightfully so.
The amount of artists whose families are still fighting big companies over the rights of their loved ones who are no longer with us is crazy.
While the major labels will still have their grip on things, eventually, we’re going to see the gamma’s and UnitedMasters' of the world become the standard.
I’ve got some new joints coming soon.
Maybe It’s time to find a new distributor. gamma or UM maybe?
Peace.