In many ways the job of distribution is the same now as it was in 1980, but there have been some obvious changes. Sales volumes in 1980 were unbelievable in comparison with 1996, let alone now. In 1981, I can remember asking Geoff Travis of Rough Trade ‘what was the lowest-selling album he had released and how little did it sell?’ With the greatest respect to Lora Logic and Essential Logic, he said it had been the Essential Logic album, released a year or so before. The sales figure? 5000 x vinyl LPs. That would get you into Top 30 Album Chart these days!
There are many reason for this, too many to discuss now, but the advent of the CD was an important change. It wasn’t the format itself, but the pricing. In 1987, vinyl LPs were retailing at around £5.99 and that was the main money-making format at the time. When CDs arrived and became the predominant format, they were selling at £14.99 and higher, and they have remained there until quite recently. On one hand this boosted revenues for all concerned, but a decline in sales of all but the most heavily marketed products started there & then.
The greatest concern for distributors at the moment is the loss of retailers….hundreds of shops have closed. Simply put, there will less retailers in the future, and ironically this might make the job of distributor more straightforward. The challenge is to maintain harmonious, progressive relationships with the remaining retailers, big and small. I am delighted that 26 of the best UK Independent stores have recently formed a coalition.
Shellshock now has it's dedicated digital distribution service, in the future do you see distribution as being a solely digital domain, or do you think they'll always be a market for physical releases?
Whilst Shellshock has provided digital distribution for over 2 years, I am nonetheless sceptical about all published ‘headline’ digital sales figures. The physical singles market in the UK has been prematurely stifled, largely because the overheads of releasing digitally are lower. Although digital sales will continue to increase, that increase will not be nearly as large as the loss in physical sales. Quite how the shift in the manner in which music is consumed progresses is dependent on technological advances, success and failure of business models, fashion and so on. There is still a huge market for physical product: digital sales of top independent product are still at less than 5%, and at the top end of mainstream, digital sales of Coldplay’s latest release are at only 10% . For myself personally, I will continue to be involved in physical distribution whilst it continues to be "the main show" , and that will be the case for some time, I would think.
What are you looking for in labels that you work with? Any advice for a label looking to get distribution?
Our policy for acquiring labels has always been fluid. We have a duty to our customers to provide them with products that they can sell, so Rule #1 when taking a label on is that it can be sold in reasonable quantities right now, or in the foreseeable future. On the basis that good music will sell if it is heard, then of course we will take on an artist or label that stand out within their specific genre. If a label shows themselves to be organised well enough to work with us to push things forward , then that helps a lot.
What would you say to someone looking to set up there own distribution company in the current climate?
There is an obvious answer to this which wouldn’t be very helpful in the context of this interview! Certainly, if it was the UK, then I would advise against. There are still many independent distributors in business in the UK and several of these are already working ‘under-capacity’. In addition, the emphasis at the top end of the distribution tree, worldwide, has been on consolidation or merger. However, this will differ from country to country, so there may be a wide gap in the distribution market in certain territories, just waiting to be filled. For those interested in music distribution with an emphasis on logistics, my advice would be to get a post at a larger ‘leisure’ distributor or major, to see at first hand how state-of-the-art logistics systems work. For those interested in a combination of music, business and logistics then I think they should seek a post at a medium sized music distributor or even a newer, smaller cutting-edge operation. For anybody considering setting up a distributor, I would advise 100%, that they seek the above experience first!
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