The Future of Independent Music In 2021: A Fireside Chat With Heli Del Moral, Vice President, International Development at CDBaby
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The Future of Independent Music In 2021: A Fireside Chat With Heli Del Moral, Vice President, International Development at CDBaby

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There is a very noticeable trend occurring in the music business. The power of the independent artist is growing. This trend isn't just occurring in the United States, but is happening abroad across a range of emerging and established music markets. For instance, according to Midia Research, the self-releasing artist sector generated $873 million in 2019 – enough to claim a 4.1% market share of the global recorded music industry. In addition to the hockey stick like growth, more and more platforms are investing in and striking deals with the independent music sector. One such deal this year was the agreement Tik Tok signed with digital rights agency Merlin which gives Tik Tok users access to a huge selection of licensed independent music from tens of thousands of independent record labels worldwide.

On the global front, Tencent Music's newly released data noted that it paid out over 590 million yuan (over $84m) to date to indie artists using its ‘Tencent Musician’ program. This was a great sign signifying the growth potential of the indie artist abroad. It is no wonder then why CD Baby recently confirmed that, in Q2 this year, it counted some 950,000 active distribution clients on its DIY platform paying out more than $500 million to indie artists and labels for streams, CD and vinyl sales, YouTube revenue, sync licensing fees, and more.

To discuss the future of the independent artist in 2021 from both a U.S. and international perspective, we sat down with Heli Del Moral, Vice President, International Development at CDBaby whose job focuses on building the indie music publishing and distribution company’s business outside of North America and Europe. Check out the full interview below:

In 2018, you were hired by CD Baby to build the indie music publishing and distribution company’s business outside of North America and Europe. Why was building CD Baby’s reach outside of two of the largest music territories so important for CD Baby’s long term growth strategy?

CD Baby’s aim has always been to provide opportunity to music artists, to distribute and monetize their music worldwide wherever they may be. The reason expanding beyond the US was so important to us is because we wanted to extend the same opportunity we provide to artists in the US, to indie artists around the globe. We set our sights on becoming a global company that delivers music through the best streaming platforms in every region and collects those royalties for our artists. The reputation of CD Baby as a leader in the industry had already spread too many countries and the best way to service those artists was to create a dedicated international team.

This coincided with the rapid expansion and growth of streaming services around the world, which created an appetite for a greater variety of genres and culturally diverse music. CD Baby artists can now share their music with fans anywhere. It has been very satisfying to see indie artists who previously did not have the opportunity to sell their music, now be able to monetize their recordings. We are very proud of the quality of service we provide to our international artists and we pledge to continue to close the gap between music artists and their fans wherever they are.

Recent data showed that Tencent Music had paid 590 million yuan (over $84m) to date to indie artists using its ‘Tencent Musician’ program. This growth of the indie artist in China is right in line with CD Baby’s recent partnership with Tencent Music Entertainment Group (TME) in China to deliver its catalog of streaming-eligible tracks to three TME services, QQ Music, KuGou Kuwo. Can you share what this growth of the indie artist in China means for CD Baby and the industry as a whole?

We are very excited about the growth of indie music in China. We are witnessing a cultural shift where artists who were formally conforming to the traditional pathways, are now realizing that they can do it on their own and be successful. In parallel, there is also an interest from artists around the world to be heard in China. Delivering our catalog to Tencent opens the door for CD Baby artists to enter this massive and fascinating market. We still have a lot of work to do in order to be efficient in servicing artists in China, but we realize the future of the Chinese music industry will be transformational for the industry at large.

Why was this partnership so important to CD Baby and the thousands of songs your company delivers daily to the market on behalf of independent artists?

We want to deliver music where our artists want their music delivered, and we always aim to deliver their music to the best and most popular streaming services in each territory. Tencent is one of the most influential services in China. We are partnering our delivery to Tencent with Merlin Network,, an organization that is a great champion for indie artists.

After your partnership with Tencent, CD Baby set its sights on another international music market: India. Can you give us some insight into why this market is critical for CD Baby to have a major presence in?

There are several factors that came together in India that have transformed the music landscape. Career Indie artists were essentially nonexistent in India. The proliferation of high speed internet and subsequent access to platforms like CD Baby are enabling indie artists in India to develop and earn money in ways they couldn’t before. India is a culturally rich and diverse region where the many languages and genres of music make up the fabric of their culture. As influential as Bollywood has been in defining the Indian music industry, it has also been a limiting factor for artists whose style and career objectives do not conform with the establishment.

Upon my arrival in India, I was very impressed by the drive and the tremendous creativity that is fueling the renaissance of local independent music. We soon realized that the most important ingredient needed by indie artists in India is education. And so, we have been very focused on providing them knowledge and the tools needed to fulfill their career goals. Our platform is ideal for this market because there are no commitments required. Artists in India can simply open a free CD Baby account and gain access to a wealth of information. This, combined with our local representation and the numerous workshops and online classes we are providing free of charge to artists in the region, is beginning to produce amazing results. We have seen many regional CD Baby artists reach important playlist positions in digital stores, not only in India but in the many regions across the world where Indian music is enjoyed. Our work in India is just beginning.

Outside of India and China, what are some other markets that CD Baby is looking to enter in 2021 and beyond?

As the largest distributor of independent music in the world, we already have artists on our platform from just about every country on the map. In the last few years, we have invested in local support for artists throughout Latin America, Canada, and Europe. Our near-term goals for global expansion include Africa, Australia, Eastern Europe, and Southeast Asia.

When looking at the overall artist landscape, can you share your perspective on if artists should be signing to major labels if tools like CD Baby are actively becoming more global in their ability to distribute and push records at scale? 

You’re correct in your assessment of what is happening, and resources like CD Baby are already global. The tools and resources that were previously only available to label artists are now within reach of all. The big realization here is that now an artist can reach the pinnacle of success while retaining full ownership of their copyrights, their masters and their sound recordings. And if that isn’t amazing enough, they have the absolute freedom to carry out their creative ideas, collaborate with other artists and build their teams, all while in full control of their own careers. 

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CD Baby made the decision to retire the CD Baby retail store in March of this year to focus on distribution, monetization, and promotion services. Can you share with us what this reprioritization tells you about the state of the music industry today particularly as it pertains to the independent artist?

CD Baby became the go-to partner for distribution and monetization by being the most efficient and reliable platform. Our goal has always been to simplify the most difficult aspects for independent artists so they can focus their time and efforts into doing what they do best – creating great music. From selling CDs, to MP3s and downloads, and then to digital streaming, CD Baby has been helping artists in parallel to the evolution of the music industry. Today, our services go well beyond digital distribution. In addition to the best monetization resources, we give DIY artists what they need the most: world class promotion tools, education and the know-how to convert casual listeners into loyal fans. Monetization continues to be the pillar of artists’ careers. With the support of our sister companies, Songtrust and AdRev, CD Baby Pro will lead in publishing and video monetization far into the future.

CD Baby has had a good number of clients be nominated for Grammys this year. Can you share with us how these Grammy nominations are impacting the status quo of needing to be with a major label to get global recognition for an artist’s music?

Not only are those CD Baby artists winning Grammy awards, they are collaborating with other major artists, landing top spots and covers on prime playlists and building healthy revenue streams. Indie artists are being recognized and celebrated by their peers for their music. The path to an accomplished music career is no longer reserved for major labels. Those days are long gone. For indie artists in the new paradigm of today, nothing is out of reach.  

When considering the indie artist of today, what are some of the biggest challenges they face in building a fanbase and growing their music career?

While the challenges for all music artists have always been difficult, I believe the biggest challenge for indie artists today is self-discipline. Remaining focused, learning how to read and interpret their streaming data, having a consistent presence in social media, and using the many tools available to promote their music, can be huge advantages to those artists willing to put in the work. Thinking of themselves as an entrepreneurs, building a visual image, and developing a recognizable brand, has to go hand in hand with great music production and composition. Defining success is just as important. For most music artists, their greatest reward is acceptance and recognition. There is no replacement for hard work, but there isn’t a better time to build and faithful audience than now. By remaining true and authentic to themselves, the many challenges artists face today will yield the experience and success of tomorrow.

CD Baby has a lot of competition in the marketplace today. What differentiates CD Baby from its competitors?

DIY artists today are looking for the most reliable and trusted partner for their careers. CD Baby is not only the preferred platform for indie artist, but the preferred distributor for the top digital streaming stores in the world. While many attempt side by side comparisons to various music services, CD Baby stands alone as the global leader for its ability to collect and pay weekly to its artists, deliver music and metadata impeccably to DSPs, offer a robust suite of self-promotion tools, provide relevant education, and make monetization of streaming, mechanical, video and publishing royalties easy for indie artists. No contracts, no commitments, no renewal fees.

For more than 20 years CD Baby continues to be the leader. The best way to experience these advantages and to learn what our platform has to offer is by opening a free CD Baby account. 

Let’s talk about COVID for a moment. How has the pandemic impacted CD Baby and its clients?

Our hearts have been with those artists around the world who are facing hardship and suffering as a result of the pandemic. We have seen the CD Baby community come together to share their experiences and exchange ideas in the many workshops and online events we have held this year. Artists unable to tour or perform in live concerts are dedicating more time to write and compose. Other artists with older catalogs or songs set aside, are now finishing or remastering those old songs and uploading them to CD Baby.

We have been amazed by the outpour of music, the love, and the ingenuity that artists have demonstrated in their art during COVID. Indie artists are strong and resilient. This only motivates us to work harder for them.

What are some predictions you have for 2021 as it pertains to the independent artist?

I predict that as indie artists continue to learn and embrace technology, those who take full advantage of their dashboards, the increasingly sophisticated marketing tools, and also manage to stay healthy, will enjoy greater success in the coming year. The industry is showing signs of a healthy recovery driven by innovative artists who are using clever and creative ideas to engage with their fans. I don’t have a crystal ball, but I can almost assure you that great music and moving lyrics will continue to win over the affection of music fans everywhere, and that CD Baby will work even harder to bring that opportunity to indie artists around the globe.


Kevin Brown

FanCircles SuperFan Platforms - CEO | Music Industry. Generate $100,000 from 1,000 superfans using artist branded superfan apps.

3y

FanCircles is about the artist. Isn’t CD BABY about quantity or tracks rather that helping artists?

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