When Roy LaManna founded Vydia in 2013, he had a simple elevator pitch: like TuneCore, but for video.

Seven years on, and Vydias model has shifted considerably. These days, its an independent audio plus video distribution and services platform that chooses to work exclusively with handpicked VIP artists. And we mean VIP.

Kanye West chose Vydia to distribute his Jesus Is Born LP on Christmas Day last year, while the likes of Akon, Mr Eazi and Latin megastar Anuel AA (with over 7bn YouTube views to date) also work closely with LaMannas service.

Most recently, Vydia has worked with rapper Lil Pump on his independent return, spearheaded by single ILLUMINATI (feat Anuel AA) which has racked up over 30m views on YouTube in less than three months.

In April, Dooney Battle co-founder of Tha Lights Global and Lil Pumps manager told MBW that Pump (whod previously signed a two-album, $8m deal with Warner Records) had recently turned down $5m-plus offers from major labels to release his new material, via Vydia, as an independent artist.

Vydias the new way, said Battle. The thing about Vydia thats different from the other distribution companies is that Roy and his team pick up the phone, they call, and they understand the culture. They aint just out here culture-vulturing.

They understand stuff popping on TikTok, and they understand artists that are huge with big bases, like Lil Pump. Thats why youve got artists like Kanye West putting out albums through them.

Battles line about LaManna and his team pick[ing] up the phone reflects an important facet of Vydias modern business model.

At one time in its history, Vydia was a true TuneCore-style DIY/self-upload platform, which explains why the company still has over 170,000 artists and creators going through its service.

But last year, in a similar pivot to rival Stem, Vydia decided to close off its platform to self-uploading, and instead hand-pick major-league artists with whom it could have a closer, more engaged relationship. (Unlike Stem, Vydia continues to allow those DIY artists who previously used its service to continue their relationship with the company.)

In addition to a reputation for uncommonly swift upload times across streaming platforms (including Spotify, Apple Music, TikTok and YouTube), Vydia offers these artists additional services including supply chain and rights management, social media marketing and, where applicable, a source of capital too.

The DIY [distribution] space is a race to the bottom, says LaManna of Vydias decision to exit the self-upload market. Its ended up being a price war, which is one of the reasons we decided not to focus on that market, because thats a losing battle.

In LaMannas mind, the winners in independent music distributions future will be twofold: Big, global distribution giants, and then smaller entities focusing on specific genres and/or geographies often working with artists who might not earn Ariana or Justin money, but are still, relatively speaking, living the good life from their music.

We see a thriving middle-market of artists growing right now, says LaManna. Artists are exiting these [major label] deals with an infrastructure around them and a significant fanbase; Vydia can really help to make their business more scalable.

Here, New Jersey-based LaManna tells MBW how he sees the future of the music business playing out, the role he believes Tencent will play in that evolution, and how the growing power of the independent artist sector will increasingly challenge Universal, Sony and Warner in the years ahead

We dont look for music talent to work with; we look for business talent. Thats why we focus on working with people like Dooney [Battle], who obviously brought us Lil Pump, but has also brought several other big artists to Vydia. We worked with Post Malone [before he signed to Republic], and still work with [Posts manager] Dre London; we worked with DaBaby [before he signed to Interscope] which gave us a business relationship with [King] Carter.

Working with guys like that speaks to our focus on working with the future Scooter Brauns and, as a result, working with the future Justin Biebers.

We dont look for music talent to work with; we look for business talent.

As a result, we fashion our tools more as business tools than artist tools. Were a back-end partner, and very happy with that role.

You wont hear us in the music [trade media] saying, Look we broke this artist! To me, its the Jobs-Wozniak kind of partnership. We provide the technology and infrastructure needed to help a manager build their artists business into something scalable.

Because it says something for the artists overall value if they have optionality.

Pump his bedroom, in conjunction with Tha Lights Global, made him a superstar in the first place, to the level he signed a multi-million-dollar deal [with Warner], right? So imagine what it does for your negotiating power, moving forward, to then prove you have options [outside of the major world].

In the past, whenever we bid for a project between us and a major, we often heard the argument of: But theyre gonna put it through the major label system. I think were now putting that idea to the test.

For specific genres, including hip-hop, Latin, trap, some of the afro-pop stuff, artists are realizing that their songs can be just as big independent maybe even bigger than going through the major system.

The [major label] system is not, I dont think, as efficient as companies like ours on the technology side.

Also, to be long term in this market, you have to consistently remain relevant. You cant just go away; if youre not putting stuff out at the frequency you need to be, you could fade to the background.

One of the things artists find important about remaining independent is the frequency with which they can release content, and the creative control they have in the process. The [major label] system is not, I dont think, as efficient as companies like ours on the technology side.

Our big thing is speed to market; if someone wants to release a track today and get it live within hours, we can support that.

I dont think that theres gonna be three companies sitting on top of the global music industry, and that theyre just gonna suck up everything. I actually think were gonna see a lot of these management companies and these labels going small; I think its gonna be a million little pieces.

Artists, as a whole, want to be part of the community. Whether thats Lookout Records and Green Day, or Nirvana and Sub Pop, or the rise of hip hop and Def Jam, theres always these independent labels that come alongside those communities. I think that thats going to happen [again] now, but at a much bigger scale.

Ultimately artists just want to be part of their communities and not part of the big machines.

Quite honestly, I think a lot of companies who consider themselves tech companies the were gonna raise $100 million and win the space companies have this wrong. I dont think [the indie distribution market] is a zero sum game like that.

Ultimately, these [distribution] companies need to seek some sort of path to profitability. Artists should be very concerned about anyone that has that [raise lots of money and dominate] model, because were going to see a wave of these tech companies essentially going bankrupt when they cant sustain operations, because their overheads are so high.

Were going to see a wave of these tech companies essentially going bankrupt when they cant sustain operations, because their overheads are so high.

Also Im not convinced that artists using a DIY platform also then want to sign to that platform [to further their career]. From a branding perspective, theres a reason why theres Toyota and theres Lexus.

Artists want to feel like that theyre part of a more of an exclusive club than part of an everyday platform. Youve got to remember that, at the end of the day, this is still the entertainment business. Theres still a glam aspect to it.

I have this conversation with managers all the time. They think of themselves as a management company and I say, Youre a label!

If youre doing A&R, developing the artist, making the record, making the video thats what you are. When managers shy away from being a label, they think like: Well, I dont want to do royalty payments, accounting, clearances, distribution, DSP deals etc. And I tell them: Thats fine thats what we do!

When a manager shies away from being a label, theyre often really shying away from the prospect of doing the boring jobs, not the exciting jobs.

Weve built our own proprietary royalty and rights management system. We do all that back end accounting, all the supply chain.

When a manager shies away from being a label, theyre often really shying away from the prospect of doing the boring jobs, not the exciting jobs. So when they find out that well take over the boring part, it makes for a good partnership.

Ive had this conversation with Dre before. Its because this new generation of [managers] dont know the rules, and therefore dont abide by the rules. And they have something in their brain that can never be replaced by technology: a winning combination of business smarts and street smarts.

I mean, Dre could talk to a billion dollar CEO, and a guy on the street, and do business with both of them on the same day. Thats never getting replaced by an algorithm.

Dre could talk to a billion dollar CEO, and a guy on the street, and do business with both of them on the same day.

Like I said, I dont want to compete with these guys for walking into the red carpet, or taking credit for breaking their artists thats not our thing. Were actually very adamant about saying that we dont break artists. We support people who do break artists.

You know that phrase: The coach outlasts the player? We focus on the coaches and we let them find the players.

Yes. We think that theres an education needed not only for young managers, but for young artists too.

I mean, weve done seven figures advances before. In all cases, those artists retain ownership of their content, but its not uncommon for me to also sit with them and help them think about their future how they should have fun with a bit of that [money], but also invest some for the future.

Thats not me being the greatest guy on the planet, its good business sense because, and Im just going to say it, youre seeing kids in hip-hop signing deals, getting a crazy amount of money, and then ending up either dead or in jail. And thats not good, right?

I consider myself a pretty responsible adult But if you gave me a million dollars at 18 years old? Id get in a lot of fucking trouble.

I consider myself a pretty responsible adult who runs a business. But if you gave me a million dollars at 18 years old? Id get in a lot of fucking trouble. I didnt see more than $10,000 in any one place until I was 30 and Im glad, because I wasnt mature enough to deal with that at the time.

I was irresponsible at that age most of us are. So Im definitely not saying that these kids are more or less responsible than anyone else, but you go from zero money to a lot of money overnight, it can be a recipe for disaster.

Thats one key thing: we sit down with artists and sometimes say, perhaps youre better off getting this money as an annuity, on a monthly basis. Or help them make other good financial decisions.

Were not a financial advisor, and we dont pretend to be, but from a mentoring standpoint, from one business person to another, its not uncommon for us to have those conversations.

My goal is not to raise any more capital; its to be self-sufficient. Weve heavily invested in technology, and thats important; one of the things many people dont realize is that [distributors] out there are putting sales ahead of infrastructure. And thats because infrastructure is very expensive, and its a long term investment.

We were very bullish on streaming after we got into the game [in 2013], which was a contrarian view at the time. Because of that investment in tech, we are now one of the few companies that do not rely on any third party for our technology.

Theres no secret partner at Vydia, hidden behind the door, getting a 10% cut [of artist income], like there is in a lot of these other companies.

We dont go through FUGA for our supply chain; were not partnered with Sony/ATV for publishing were able to do everything entirely on our own. Theres no secret partner here, hidden behind the door, thats also getting a 10% cut [of artist income], like there is in a lot of these other companies.

That came at a significant cost and, thank goodness, most of that cost is behind us.

I think [the industrys] moving towards replacing the artist, to be honest with you.

Between them, Tencent and Epic Games are investing in 3D scanning companies, which can scan artists, and put those artists into [virtual environments, as well as] actually creating content without human artists involvement at a very low cost.

Thats a scary idea, but the reason its even feasible is because a big problem in the music business right now is understanding the difference between the artist and the song.

I think [the industrys] moving towards replacing the artist, to be honest with you I hate to say it, but with a lot of those TikTok hits, I mean, the artists could be an avatar it wouldnt matter.

I know Steve [Stoute] mentioned this a little bit with MBW [on our Podcast recently], that the major labels are buying lottery tickets on songs a lot of times; when the artist is almost an irrelevance. And I hate to say it, but a lot of these TikTok hits, I mean, the artists could be an avatar it wouldnt matter.

Thats why Vydia is so focused on building the careers of real artists, in lockstep with their forward-thinking managers. Thats a different market to the lottery, which is vulnerable to technology.

Where I disagree with Steve is his certainty that, with the way the futures going, the artist will have all the power. I dont know; I come from a production background. You could create, essentially, a virtual artist today. And I dont think a lot of the kids would care, to be honest with you.

Think about it: the virtual likeness of an artist; it doesnt get old, it doesnt get angry, it doesnt argue with you.

You look at Scooter Braun and Taylor Swift bringing that [personal fallout] to the surface; if Taylor wasnt doing that, no-one would know about that situation and no-one would care. So what if Taylor wasnt an artist, but an avatar? Basically a corporately-owned video game character.

what if Taylor Swift wasnt an artist, but an avatar?

Thats why I believe when you start connecting things like Tencent, Epic, Fortnite and those gaming moves, in five years time, we could be having a real conversation about this.

Dont forget that in the gaming world, theyre selling [virtual] merchandise at a 100% profit margin; thats got to make some managers and labels think, Holy shit! Tencent already has that figured out.Music Business Worldwide

Originally posted here:

'For a lot of these TikTok hits, the artists could be an avatar it wouldn't matter.' - Music Business Worldwide