PHOTO: Jim Jonsin, founder of Rebel Rock Entertainment
More and more producers these days are starting their own small labels, or “entertainment companies”. Jim Jonsin, RedOne, and of course Dr. Dre are some of the most entrepreneurial producers of today. They all have started their own labels. The fact that they are already producers makes it easier to start record labels because they already have production resources for their value chain.
However, the companies these producers start are usually called “entertainment companies” because they are usually made up of mostly producers and they sign a few artists on the side. Dr. Dre’s Aftermath Music has only four artists and the rest of it is made up of seven producers. Jim Jonsin’s Rebel Rock Entertainment/Rebel Rock Productions, founded in 2006, only has one artist, B.o.b. and two production duos.
PHOTO: Max Martin (r) and pop producer Dr. Luke at the 2011 ASCAP Pop Music Awards.
Max Martin’s production company, Maratone, takes on a more traditional role, saying on their website that “Maratone does not operate as a record company… Maratone only works for record companies”.
So why doesn’t Maratone choose to expand its value chain like other “entertainment companies”? They make it very adamant on their website that they are not a record company. There are probably many factors. Maratone’s main business model seems to focus on working with artists from major labels- they say on their website that in order to work with them you have to be signed to a record label. Their strategy probably has some benefits, because being a label/production company puts you in direct competition with other labels who may have artists you want to work with.
What are your thoughts on this?