Concord Music Group, whose beginnings started as a small jazz label from Concord, CA in 1972 is now an indie record label powerhouse with 160 employees and boasting over $100 million dollars of revenue per year. Thier success can be attributed to two strong elements in Concord’s business plan, targeting an older audience and focusing on building a catalog with career artists.
Concord focuses on the adult audience which will be more inclined to pay for a CD and interested in timeless music rather than hottest pop sensation. In the article from the New York Times it says, ” According to the NPD Group, a market research firm, people 50 and older buy 16 percent of all albums and singles but buy 28 percent of all the physical music sold”. This is beneficial to Concord who relies on album sales for a good portion of its revenue.
The company’s strength also comes from its past catalog. Whereas a major label will have only a few of the artists that will make a majority of the money for the company, Concords gets strong steady sales throughout its catalog. By focusing on career artists and “timeless and authentic” music , dedicated music lovers that want to learn more about the artist will be more inclined to buy an album and hopefully the rest of that artists catalog rather than a single. Concord has recently acquired Rounder Records and signed a distribution deal for Paul McCartney Post-Beatles catalog this April . Strong acquisitions and dealslike these and 2004’s acquisition of Fantasy Records (included the Stax Records Catalog) have given the Catalog a diversified and strong catalog which doesn’t rely on current short-term tastes but time tested ones. This shows to be successful as the company is reporting growing digital album sales rather than singles.
By focusing on these two strengths Concord has been able to thrive in a harsh business climate where labels a folding everyday especially independents. A focus on quality music and long term music sales rather than quantity and short term music sales has given the company an advantage against the major labels. Concord’s approach should be looked at because it creates a sustainable business and revenue model rather than a erratic one with large up and down swings in revenue over a short period of time.
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