Tue Nov 27, '07



Some of you may have heard about Amato distribution going bust, but unless you understand the music industry you may have not quite understood the negative affect that this will have on dance music, and on the music you love. Distributors are the link between record labels and music fans.

Record labels give vinyl and CDs to distribution companies like Amato, who then take care of the transportion and distribution of the music. Distribution companies are the ones who ensure that the music gets delivered to record shops and digital download stores.

Amato organised international distribution, so it’s pretty much guaranteed that wherever you may be, your local record store stocked music distributed by Amato. Now that the company has gone bust, the music that was formerly distributed by Amato will no longer be available to buy.

But worst of all, for the record labels that were signed to Amato, they’ve lost the stock that was legally theirs. Part of the liquidation process is that all assets get frozen, both physical and monetary. So that means most of the labels have lost money for previous outstanding sales of their music too.

For example, Bpitch Control will not receive a single penny for the UK sales of Modeselektor’s new album ‘Happy Birthday’. Some labels that were solely distributed by Amato may never be able to recover from the loss of their stock and sales.

Dance music labels are always on a tightrope so the loss of a few thousand dollars is enough to severely cripple a label, maybe even close a few of them.

That means less music for you.

Labels that were distributed by Amato:

2020 Vision
Anjuna Beats
Audio Therapy
Balance Series
Big Love
Border Community
Bpitch Control
Buzzin’ Fly
Citizen Records
Cr2 Records
Crosstown Rebels
Dewolfe Music Library
EQ Grey
Essential Platinum
Evolution Records
Freerange Records
Goodlooking Records
Hope Recordings
Kill The DJ
Lo Recordings
Marine Parade
Milk N 2 Sugars
Music Man
Pack Up And Dance
Poker Flat
Riot! Recordings
Soul Heaven Records
Stealth Records
Tidy Trax
Toolroom Records
Underwater Records

Tue Nov 27, '07


shit, thats a bad thing although im sure many of the labels would move to another distributor? (i am not entirely sure as to how easy that process is but it makes perfect sense)

Tue Nov 27, '07

Rob Fisher

big list

Wed Nov 28, '07


jesus, even CR2 and Toolroom went down, that must suck

Wed Nov 28, '07


big list with a lot of big names, i'd say it will be a while before they get up and running again, hopefully it wont affect the labels too badly

Wed Nov 28, '07


Labels, especially dance labels, are obsolete, since the margin on digital sales blows away any other business model. In fact, digital sales will eventually go away as well, in favor of new revenue streams yet to be determined (one method will be introduced here on internetdj soon).

Wed Nov 28, '07


That sucks, but I agree with Risda here. Labels are beneficial to producers/musicians because they have the proper resources in place to allow for music distribution, which gives you less power to negotiate with them. Take Beatport for example, you can't get on there unless you are on a label they feature, or go through a distributor. All of these things are still designed for other people to make a marginal profit on your work. If you have the time and energy, as any aspiring professional artist should, you can promote yourself and sell yourself. Sure it's harder, but you get 100% of the revenue for your work. Why should you have to pay other people for the work you do?

Call me a rugged capitalist, but I believe that in music, or any other business, it is ideal to lower the cost of goods sold, and minimize 3rd party involvement. You make the music, you promote it, you sell it, and you live the good life. The days of labels are numbered as people begin to accept the internet as a valuable business resource and bypass the "connections" - with mastering studios, PR companies, ad agencies, and retailers - which labels used to prize. All of a sudden people are realizing they can save by communicating directly with each other, and as many small boutique shops open up online, the need to have a "strong brother" type of relationship with labels and distributors is diminishing. The fact that this distributor closed down doesn't mean that interest in electronica is dwindling, or that music is on the downfall, but actually means that artists are taking more control into their own hands.

Ten years ago you couldn't have dreamt of selling a single copy of your track if you weren't on a label, but this is not true anymore. You can make it "big" with the right tools, and an effort in the proper direction.

Furthermore, the fact that so many people can compete on the same platform means that standards for what is considered "good" music will increase as the competition between independednt producers heats up. Instead of having one rapper you will have 50, all trying to compete for the same dollar, and in the end, the one with better music (or arguably a better social and business sense) will win. The barriers to entry in the music market will be so low that almost anyone can participate. Eventually, some other form of business structure will form, like music cartels and oligopolies which will control the key social networking positions and online resources for music distribution. This can be good or bad, I guess we will just have to see.

[ This message was edited by: EJLirik on 2007-11-28 11:09 ]

Wed Nov 28, '07


I for one think all music in the future will be free to own... artist will make most of their money from touring and events along with the licensing of themselves, but not their actual music... who would you actually like to see play live, Pink Floyd or a cover band of Pink Floyd?

Thu Dec 13, '07


Thats bad Sorry to the peeps that have lost money & hard work

Spliff talking: `Music is a genius force and no matter how many people/companies try and control or manipulate music, it will always come back and bite them in the arse.`

Sun Dec 16, '07



On 2007-11-28 22:59, Morningstar wrote:
I for one think all music in the future will be free to own... artist will make most of their money from touring and events along with the licensing of themselves, but not their actual music... who would you actually like to see play live, Pink Floyd or a cover band of Pink Floyd?

that is a good point. they do recieve the bulk of their income from merchandising and touring. As to music being free, thats a complicated process.. to much involvement i think..