The Art of Independence [NFTW #39]

What’s good everyone? I hope we’re all doing well. What a way to top the weekend with my beloved Manchester United progressing to the FA Cup Final. It’s going to be a Manchester affair at Wembley on the 3rd June! I’m excited for that (now the score on that day is a completely separate affair so let’s leave that alone for the time being)! This week we’ll be looking at the art of independence for artists.

The Art of Independence

Much of the time we’re limited to the information that we have. In the 1980s and early 1990s the staple piece for Hip-Hop artists was to be signed to record labels. It signalled a sign of newfound prosperity and was therefore perfect for a genre that provided an avenue for a group of people with limited options to improve their socio-economic situation.

Record deals were the holy grail at the time as the labels provided the leverage that allowed rappers to go from neighbourhood heroes to worldwide superstars. When Nas acknowledges the impact of Rakim on Hip-Hop he made it a point to state the fact that Rakim was one of the first rappers who had a record deal. On his track U.B.R (Unauthorized Biography of Rakim) Nas raps “First million-dollar deal ever in rap / 18th Letter did that” (The 18th letter of the Alphabet is R - Rakim).

In a pre-internet world we could see the value of why emerging artists would want to sign with a record label:

• Financial support: Major record labels can provide significant financial support to artists, including advances on royalties, funding for record and production costs, and marketing and promotional expenses

• Exposure and publicity: Record labels have the resources and connections to promote an artist’s music to a wider audience through various channels including radio and TV.

• Professional support: A record label can provide an artist with access to top-notch producers, songwriters, and other industry professionals who can help improve the quality of their music and elevate their brand.

• Distribution: Major record labels have established relationships with distributors, which can ensure that an artist’s music reaches a wide audience through physical channels.

• Brand recognition: Being associated with a major record label can increase an artist’s brand recognition and credibility, which can lead to more lucrative opportunities, such as endorsements and collaborations with other artists.

Fast forward to 2023 and we’ve seen in the last few years. A range of artists carry together a message of independence, ownership and freedom from record labels. The thesis makes sense. It’s easier than ever to go directly to the consumer and you’re able to use the music as a means to secure your audience and monetise your impact through merchandise and shows as opposed to modern forms of music consumption in particular streaming which on most counts doesn’t provide the artist with satisfactory return on investment.

For most record labels, distribution was what their main value proposition to artists. The ability to get their music in front of a wide variety of audiences was a compelling case to put forward in a world before social media. Now it’s not so clear how valuable that is. Yes, you could provide a large marketing budget to run paid ads but you don’t necessarily get the organic core fanbase that is critical for any artist. An artist with consistency and a level of social media know-how could most likely solve the distribution piece on their own.

This bar comes from the fifth track All Get Right on Nipsey Hussle’s Crenshaw mixtape which was released in October 2013. Three years prior, Nipsey had parted ways with Epic Records as a result of key personnel changes and creative differences. It was his experience at Epic Records that had inspired him to start his own record label where he would in his own words “360 myself and exercise control.” If not for his unfortunate demise in 2019—I’m convinced it we would have been provided with a business masterclass in seeing his subsequent moves from the release of his debut album Victory Lap.

Circling back to U.B.R, Nas also describes some of the tension that can come when signed to a major record label. As an artist on a record deal you can lose a level of creative control. While it might not be explicitly said there can be a relative level of influence and interference from a record label on the creative direction of an artist’s music. As the song comes to a close, Nas narrates that Rakim would later sign to Aftermath (Dr. Dre’s record label) intending to have an album released called Oh My God with Dr. Dre. However, the album would later be dismantled as a result of creative differences.

The experience with artists and their record labels serves as an important lesson for me. When navigating the elements it can appear on first glance that it is money in and of itself that is the aim—but when we believe that we miss out on what seems to matter the most: freedom. It’s important to remember to pick goals and objectives based on what you actually want in alignment with the vision you have for yourself. Because while you could be initially celebrating a record deal, very quickly you could find it to be your biggest hindrance.

The Big Four Series - Investing in Egypt

Second edition of The Big Four series is now live on my YouTube channel: Investing in Egypt! In this video I take a look at the economic landscape, public and private markets of Egypt and discuss the nation's viability for investment. If you're interested in learning more about the capital markets landscape on the African continent feel free to check it out.

Until next week. Peace.

This week we’ll be looking at the art of independence for artists.