Labels are Now Signing Songs, not the Artist
- Michael Adu
- Sep 5, 2024
- 4 min read
The music industry is rapidly evolving, and one of the most significant shifts we've seen in recent years is the trend of labels signing songs rather than artists. For decades, the traditional model was centered around discovering talent, nurturing it, and building an artist's brand over time. Today, that model is undergoing a seismic change. With streaming platforms, social media, and data analytics reshaping how music is consumed and discovered, labels are pivoting to focus on individual songs with high potential, rather than committing to long-term artist development right away.
The Power of the Song in the Digital Age
In the current digital landscape, the power of a single track can eclipse an artist's entire discography. Platforms like TikTok, Spotify, and YouTube have democratized music discovery, enabling songs to go viral overnight. This phenomenon is fundamentally altering how labels assess value. Rather than waiting for an artist to build a following organically, labels now have access to real-time data that highlights which songs are resonating with audiences. This data-driven approach allows labels to spot potential hits early, sign those songs, and amplify their reach through strategic marketing. Take Lil Nas X's "Old Town Road" as a prime example. Before he was signed as an artist, the song itself went viral on TikTok, catching the attention of Columbia Records. The label signed the song based on its viral success and data that showed it had potential for mainstream appeal. Only after the song became a global sensation did the label commit to Lil Nas X as an artist. This highlights the new industry reality: labels are betting on songs with built-in momentum rather than taking a chance on developing an artist's entire career from scratch.
The Rise of Data-Driven Decisions
In the past, signing an artist was akin to a long-term investment — a process that required significant time and resources with no guaranteed returns. Now, with access to robust data analytics, labels can make more informed, lower-risk decisions by signing individual songs that have already shown promise in the marketplace. This shift not only reduces financial risk but also allows labels to be more agile and responsive to emerging trends. It’s no longer just about finding the next big artist; it’s about finding the next big hit. Consider the success of "Despacito" by Luis Fonsi and Daddy Yankee. Initially released by smaller labels and independently promoted, the song showed significant promise on streaming platforms. Universal Music Group quickly signed the song after recognizing its potential to reach a global audience. This decision paid off, as "Despacito" went on to become one of the most-streamed songs in history. The focus was on the song’s potential rather than a long-term commitment to the artists themselves.
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A Shift in Artist-Label Dynamics
This new model presents both opportunities and challenges for artists. On one hand, it lowers the barrier to entry. Artists no longer need a fully established brand or a large following to get their foot in the door; a single great song can capture a label’s attention. However, this shift also means that artists must be prepared to be flexible. If a label is primarily interested in a song, they may not be as invested in supporting the artist's broader vision or career development beyond that single track. For many artists, this could mean less security and less control over their creative direction. The relationship between artist and label becomes more transactional, with the focus on maximizing the immediate commercial potential of a single track. While this can lead to significant short-term success, it may not always align with an artist's long-term goals.
What Does This Mean for the Future of the Music Industry?
The trend of signing songs rather than artists is a reflection of the broader changes sweeping the music industry. As streaming continues to dominate and social media platforms become the new tastemakers, labels are adapting their strategies to be more flexible, data-driven, and focused on immediate returns. For artists, this means an increased emphasis on creating standout singles that can capture the attention of both audiences and labels. This trend also encourages artists to think more strategically about their releases. Rather than focusing solely on building an album or an extensive body of work, artists might benefit from adopting a more single-driven approach. By consistently releasing songs that have viral potential, they can maximize their chances of catching a label's eye or achieving independent success. However, it's also important to acknowledge the potential downsides. As the focus shifts towards songs, there is a risk that artist development could take a backseat, with fewer resources dedicated to nurturing new talent over the long term. Labels and artists alike will need to find a balance between short-term hits and sustainable career growth.
A New Paradigm for Success
In this new paradigm, both labels and artists must be adaptable. For labels, signing songs rather than artists allows for a more agile approach to a fast-moving marketplace. For artists, the challenge will be to create songs that not only capture attention but also build a sustainable career beyond a single hit. Ultimately, success in the music industry has always required a mix of talent, strategy, and timing. This latest trend is just another evolution in that ever-changing landscape. As a music executive, I see this shift as an exciting opportunity for innovation. It’s an opportunity to think outside the box, to embrace new ways of finding and promoting music, and to create partnerships that leverage the strengths of both artists and labels. The song may be king, but the artist still has a vital role to play in shaping the future of music.
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