Spark for Growth from Indie Labels
Finnish independent labels are booming more than ever, and many of them are managed in a very growth-oriented way. So-called indie labels have become increasingly interesting partners for international music giants, too, as evidenced by acquisitions and closer cooperation.
The person most informed about the current state of affairs in our country is Katja Vauhkonen, who leads IndieCo, the association of Finnish independent record and production companies. IndieCo’s goal is to improve the operating conditions of its member companies, enhance the influence of independent publishers, and support the diversity of music production.
– Above all, we want to strengthen the feeling among independent music publishers that they are not alone, but that there are many others like them in the same boat, says Executive Director Vauhkonen.
Although IndieCo is now home to more than 70 independent publishers, it is far from being the home of all indie labels in the country. There are hundreds of them, most of them small or even smaller – those that focus, for example, only on the releases of the band run by their owner.
The image of indie labels as “small” companies is misleading. Independent publishing is no longer a small, but rather can be a very substantial business. This is reflected in the fact that music industry giants such as Universal, Sony and Warner are competing for shares in attractive indie labels.
– We can talk about an indie label as long as the majority of the shares are owned by the company itself. If the major’s shareholding rises to more than half, the indie effectively becomes a sub-brand of the major.
For the love of the game
Back in the day, piracy—and later, music streaming services—first ate away the extra margins in the record business, then took a large share of its cash flow, forcing the industry to seek new revenue models. Contrary to what one might expect, however, the indie sector is now doing good business on a solid foundation, even though its earning models have also evolved under the same market forces.
– In fact, the landscape has changed even more radically for indie labels compared to major labels. Some indie companies operate solely in the ‘track business,’ meaning they release songs exclusively on streaming platforms. For these kinds of ‘record labels,’ the traditional physical album has already disappeared entirely from the production chain.
The shift in revenue models is also evident in the fact that indies are no longer just record labels. Alongside publishing, they navigate various corners of the music industry, often handling artist management, booking, and even merchandising under the same roof. Despite this, very few professional publishers make a full living solely from running a label. It takes passion for the craft and a deep love for the industry.
– On the other hand, digitalization has also opened new doors for music distribution, as there are no real gatekeepers anymore. Anyone can now be a publisher, so the only gatekeepers left are the listeners, Vauhkonen points out.
– It’s enough to release the right song on the right platform at the right time. There have been lucky breaks where an artist gets discovered through TikTok or live performances, Vauhkonen says.
On the road to growth
The music business is no longer a mysterious world, where a select few record moguls party with star artists behind closed doors. The curtains of secrets have been opened.
Nowadays, many artists finish their music up to the mastering stage anyway at their own risk, and then the question arises whether a big label is still needed at that stage to release and market it.
– Now all you need to become a record company is a laptop and a phone. And on the other hand, some indie labels have already grown so big that they can market and publish a lot full-time, whereas in the past an indie could only grow to a certain point, after which you needed the resources of a major.
Among the IndieCon members, Vauhkonen picks names such as Svart Records, Stupido, Vallila Music House, Booa Music and Skorpioni. Among the members, Kaiku, for example, is also defined as an indie company, even though it is owned by a large media group. And the largest of the indie groups is probably PME, which employs around 20 people and is the equivalent of a local branch of a major music giant. Some of the indie labels operating in Finland may also be multinational, such as Playground, which also has operations in Scandinavia.
And in the shadow of these established names, new independent labels are emerging all the time, which may focus on the output of a single artist, for example.
Possibly worse together
In public discussions about the transformation of the music industry, concerns have mainly focused on shrinking revenue streams for artists. According to Vauhkonen, the struggles of independent publishers are just as serious. A domestic indie label doesn’t have an international parent company to squeeze extra funds from if the local business falters. A negative balance sheet doesn’t turn positive with a magic trick.
– Public support is therefore important for indie companies, because every release is a risk – not necessarily because of the amount of euros invested, but because of the time and effort spent, for example. And time is money.
Vauhkonen would like to see indie labels joining forces to become more efficient and visible. However, it seems more common for a major label to acquire an indie, either partially or entirely. In the end, that often turns out to be the most sensible path.
– One of the biggest reasons for teaming up with a major is often financial. Rarely has it been witnessed that two indies get a boost from joining forces. If you take a couple of companies that are both in constant financial and other resource constraints, it might be twice as difficult to get them together,” Vauhkonen says.
Awards up for grabs
IndieCo, the Finnish Association of Independent Record and Production Companies, will present the 2024 winners at the Indie Awards 2025 event on 30 January at the Helsinki Tiivistämö. Artists in the Newcomer of the Year category, such as Alma Alanko, Asla Jo, Poni, Zangoma and Viive will take to the stage. The evening will be closed by Samae Koskinen, the nominee for Artist of the Year, and Pekka Nisu, the nominee for Rock of the Year.
Indie Awards covers categories ranging from Song of the Year to Band of the Year, along with around ten genre-specific awards spanning pop, metal, classical, and jazz.
Katja Vauhkonen dismisses the idea that Indie Awards is some kind of alternative to the mainstream.
– The Indie Awards are not a counter-event to something like the Emma Gala. Its purpose is simply to remind people that there are more artists than ever, and for many of them, getting exposure is extremely difficult. We are now organizing the event for the sixth time to highlight artists from independent labels, and the jury aims to create the most diverse shortlist possible.
However, unlike the Emma Gala, Indie Awards does not focus on sales figures.
– Commercial success is not the main criterion for nomination. Instead, it’s about recognizing artists who have released great music and, in the jury’s opinion, deserve public acknowledgment.
To avoid misunderstandings, Vauhkonen also clarifies that “indie” in this context is not a reference to a specific music genre.
– The word is the same, but the concepts are unrelated. Indie Awards honors music released by independent record labels.
