Black Hole Recordings – the label masterminded by Tiesto over 15 years ago – is set to launch an online distribution platform. Black Hole Distribution is live from today and is an exciting development in the music industry. Not only will it distribute musical content of all genres but it will also offer a vast array of much-needed services to meet the growing digital needs of producers and labels worldwide.
We requested an interview with the new media manager Bas Kruijssen at BlackHole recordings for the official launch of the Black Hole recordings distribution services and ha accepted the challenge to reply on my questions that I hope is your questions too about this very exciting development in the music industry.
Interview was written and conducted by Dimitri Kechagias Music Journalist / Radio DJ
Dimitri: Black Hole recordings has opened its Black Hole distribution Unit and that is definitely the next step forward for the globally known company. Can you outline to us the key reasons why Black Hole is moving to distribution field as well?
Bas: Creating a business unit for distribution is not something that was done overnight, but it’s actually a development that has been going on for a couple of years. We started distributing music for befriended labels, and by word of mouth the list of Black Hole Distribution customers grew steadily. In 2011, we decided to name the business unit accordingly and we started taking distribution to a next level. All services that we used to employ (in the past, for our artists only) were made available for distributed labels as well: database marketing, promotions, licensing, apps. As demand grew, we realised that the only thing missing was a solid online platform for our customers. So the key reasons have been combining our old strengths with our new ones: using our vast network in music industry in combination with newly developed technologies. That’s how Black Hole Distribution came to life.
Dimitri: The next question is the most important for anyone who starts his/her own record label and searches for the right distribution to the various download portals. Why he/she should choose Black Hole Distribution? Can you pinpoint the advantages that Black Hole distribution can offer to its clients?
Bas: As mentioned in the previous question, we combined strengths in Black Hole Distribution. Labels and artists that want to distribute their music to a wide audience, have lots of solid distributors to choose from. Black Hole Distribution offers clients full access to their catalogue in an easy to use system, but what really sets us apart from others is that before opening our doors for other labels, we gained roughly 15 years of experience in the industry as a label. We act as a label, we think as a label and we know how important it is to work with someone who treats your work with the respect it deserves. Because of our experience, we are able to offer services that exceed other distributors. F.e. our licensing network has been growing since the early days in which Tiesto himself was still an upcoming artist. Throughout those 15 years, our network grew to be one of our biggest strengths. It opened doors into digital retailers that are also very lucrative for music of all possible genres; that’s why we also distribute classical music, and Latin, jazz, pop & rock. In short: we offer a high service level, a wide network and good online tools to manage music.
Bas: A label can act as an amplifier, without interfering with some ones musical freedom. Whereas a single artist can reach lets say a hundred people who might be interested in his music, a label can possibly reach a tenfold amount. The role of the modern record label has shifted over the years: pressing vinyl’s or making cd’s is not what sets a label apart; it’s the added value it can offer to artists. That is always evolving.
Dimitri: One of the most important sources of revenue traditionally for EDM was the CD compilations and nowadays the online compilations. So licensing is always very important and extremely crucial part for revenue. In what ways Black Hole distribution can support the labels to discover more licensing opportunities?
Bas: We can include music in our licensing mailings to other labels, which make compilations. Besides that, we can help with sync licensing. For example, we have experience when it comes to music in apps or games. That’s also licensing.
Dimitri: Promotion is absolutely essential for EDM record labels. Famous superstar djs can give great exposure to any record and to be able to send the promo and reach the dj and attract his/her attention is certainly a professional job on its own. Can Black Hole distribution deliver the goods for promotion as well?
Bas: Yes, absolutely. We provide services such as Fatdrop promo. Products like Soundcloud have our priority; our customers can benefit from that. Promotion also works the other way: us having a dialogue with big DSP’s about upcoming releases with high potential. A third element of promotion is of course advertising; new media play a crucial role here. Facebook ads, Twitter, or Google Adwords: online advertising gives more value per invested euro as opposed to printed media.
Dimitri: There are thousands of artists worldwide and only handful manage to become really well known and the majority of times this is simply the result of good marketing. Is Black Hole distribution able to offer guidance and advice on the marketing of records as well? Can you give us examples to facilitate your argument?
Bas: Black Hole Recordings is one of those few labels that know the impact of an artist becoming really well known, as you put it. We’ve grown as a label, during the early days of trance music and the rise of artists like Tiesto, Ferry Corsten, Armin van Buuren etc etc. Guidance regarding marketing of music is one of our key values. A good example is Ferry Corsten’s mixcompilation series Once Upon a Night. We’ve crossed borders here by tailoring the product to specific markets: the iTunes product had assets especially interesting for iTunes customers, same goes for the Beatport product where the mixing skills and track selection of Ferry were of high value. On Spotify, we took it even further by setting up a chat between Ferry and his fans, advertising for this within Spotify. All these activities could not have been possible without good communications between us and the artist & label, and of course cross promotional events and a solid marketing communications plan.
Dimitri: Online world offers great opportunities to promote and market a certain record. The buzz word is Database Marketing and how you can find easily some statistics about your records in order to decide your future activities. Do you consider Database Marketing as crucial and how Black Hole Distribution can give a helping hand on that matter too?
Bas: For some years now, we have been working with Next Big Sound. It’s an award winning database-marketing product, which gives insights in activities from artists and labels. Database marketing is all about seeing connections cause and effect if you will. However, demand for insights in sales are highest; therefor we’ve made sure that our online platform shows trends & developments of key players such as Spotify, Beatport and iTunes.
Dimitri: Another trendy buzzword is of course applications for smart phones. Every famous dj and record labels like Black Hole for instance has its own application. Do you believe that applications for mobile devices are essential component and how Black Hole distribution can assist its client to create the best application for their needs?
Bas: We can definitely assist in making an app for mobile devices, or f.e. for Spotify as well. I think that an app is a tool to be used to communicate with fans. We want to help labels getting in touch with their fan base; whether it’s making an app, consulting the use of social media or thinking of an online strategy. An app is one of the tools in a marketing toolbox.
Dimitri: Of course music is all about creativity and inspiration but when you start a record label is like starting your own little business as well with revenue to win. Of course business means accounting and payment statements that can consume so much time to someone who is doing it on his own. How Black Hole distribution can support the record labels on their accounting matters as well?
Bas: We handle accounting for labels; all revenue is being collected and put in easy to use statements. The data we deliver to labels can be filtered in all sorts of ways, but key value here is making it easy and manageable. Imagine close to a million Spotify streams of an album, a big pile of data that comes on our statement with all freedom of quickly seeing who is entitled for what amount. Most important thing when it comes to accounting is being diligent; that’s how you can maintain a high level of service.
Dimitri: Does it cost for someone to become a member of your Distribution platform and what fees roughly are you charging for the various activities?
Bas: We do not charge a set up fee of any kind. Our pricing model is based on taking a percentage of sales; extra services such as making apps for example is different. Because of our scale, we can offer a price advantage as opposed to making an app individually. Analysing sales in our system (daily trends) is included in the basis distribution fee; we do not charge extra for that.
Dimitri: Is it possible to tell us some of the record labels that use your services and can you share with us any form or feedback or statement you got from a label owner about your services?
Bas: Several of our long-term partners are f.e. Flashover Recordings (Ferry Corsten’s label) and Manufactured Music (Manufactured Superstars’ label). Quotes about our services and system follow:
Testimonials
"If you're looking for an easy and professional way to get your music to all major online stores, Black Hole Distribution is the way to go." - Celwin Frenzen, Flashover Recordings
"Black Hole Distribution is such an amazing company to work with. The people are incredibly friendly and helpful on so many levels. The online uploading capabilities have made things even better for me. I love that I can login from anywhere in the world and get releases delivered and know that they will do the rest getting everything to all the stores and beyond. After working for Beatport for so many years and knowing the in’s and out’s of the distro biz Black Hole could not be a better all around company for me and my label needs today :-)" - Tom Havens, Manufactured Music / Moody Recordings A&R / Label Manager
'Besides being a good business partner, Black Hole Recordings is also a trusted and sparring partner with which we have a valuable relationship. I appreciate Black Hole Recordings for its expertise and would definitely recommend them for any project.' - Peter Streefkerk, Marketing Manager Amsterdam Classics B.V.
"Er wordt zoveel gezegd over alles en iedereen in de muziekindustrie maar ik moet zeggen dat de samenwerking met Black Hole Distribution een zeer prettige ervaring is. Ik zie de toekomstige samenwerking dan ook met veel vertrouwen en genoegen tegemoet." - Marc Walboomers – Walboomers Records
Dimitri: Final questions should be about the future of Electronic Dance Music. You have attended ADE, Midem and various other conferences and after your discussions and sharing of knowledge with others I wonder if you can tell us if we should be optimistic about the future of Electronic Dance Music scene.
Bas: In general, that’s a big YES
a) About the record labels and if they can survive as businesses
Record labels that evolve along the way will always be able to add value to artists. An artist wants to focus on that what makes him happy: music. A label that understands that and is able to be creative with opportunities in a digital world, has the advantage.
b) For the artists if they can keep on producing great music and make a living from it
The past years have shown that digital music market is moving into maturity stage: solid revenue models have occurred that will eventually replace old ones. Same as cd’s replacing cassettes; digital markets must be seen as a next step. The marketplace is a healthy one, getting music to the fans is the challenge. There are territories (like The Nordics for example) in which over 70% of all revenue in music comes from streaming. If their artists can make a living of it, that’s a pretty good example that it’s possible, right?
c) For the music lovers if they will continue to great wide variety of EDM music in the future.
With ever evolving technology, I am confident that EDM lovers worldwide have so much more to enjoy in the future!
Thanks so much to Bas Kruijssen at Black Hole Distribution for his excellent answers.
Thanks so much to Paul Aldridge at 1mix radio for his support!
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