Conference Conversations: Rethinking Distribution with the Hollywood Reporter's Ethan Millman

This week on Music Tectonics, we're continuing our Conference Conversations series with highlights from the Music Tectonics Conference. Over the next several weeks, we'll be sharing our favorite discussions, interviews, and panels that capture what's happening right now in music innovation.

Today, we're featuring a conversation with Ethan Millman from the Hollywood Reporter. Ethan breaks down one of the biggest music industry trends: the blurring lines between music distribution and record labels. We explore how label services are evolving, why distribution deals have become the hottest topic in music business, and what artists need to know when choosing between distributors and record labels.

Whether you're an independent artist navigating distribution options, a music industry professional tracking the latest trends, or a music tech founder building solutions for the creator economy, this conversation offers essential insights into the future of music distribution and artist services.

The News!

• Baby Shark creator Pinkfong goes public with $372m valuation

• AI Music Platform Suno Valued at $2.45 Billion

• Suno will be reading Robert Kyncl’s new blog post very closely, as WMG CEO vows to ‘legislate, litigate, license’ in the era of AI music creation

• Explosively Viral Track ‘I Run’ by HAVEN Yanked From Spotify and Other Platforms Over AI ‘Artist Impersonation’ — Turns Out Suno Is Where It All Started

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Episode Transcript

Machine transcribed

[00:00:00] Dmitri: Hey, I am here with Ethan Millman from the Hollywood Reporter. How you doing, Ethan?

[00:00:03] Ethan: I'm doing

great. Good morning.

[00:00:05] Dmitri: Good morning. you're one of the early birds here at Music Tectonics.

[00:00:08] Ethan: Yeah, I saw, but you know,

wanted to make sure I got a parking space.

[00:00:11] Dmitri: Yeah. I mean, traffic, everything in LA is crazy like traffic, especially.

[00:00:15] Ethan: Yeah, I mean it's, yeah, I, I'm in Sherman Oak, so I had to get through the 4 0 5. it wasn't pleasant, but we're here now, so it's great. You did it.

[00:00:22] Dmitri: No, yeah. planning is good. Well, it's so cool that you're coming out to Music Tectonics. I thought I would just ask you, you know, one of the things we do is track the seismic shifts in the music industry, and I'm curious, what are some of the things that.

From your perspective as a reporter, you're keeping an eye on what are some of the, big things that, uh, when you think about the future of music and the things that are changing that, you think everyone should be paying attention to?

[00:00:43] Ethan: Yeah. You know, I know. Everyone brings up AI as the sort of thing.

[00:00:47] Dmitri: Yeah.

[00:00:47] Ethan: And of course that's the obvious answer. So I wanna caveat my answer that like, of course AI is, always the thing, but just to break away from just only talking about that, I've been really interested in distribution this year.

[00:00:59] Dmitri: Oh really?

[00:00:59] Ethan: Um, yeah. I mean, I think this has been kind of the year of distribution.

I remember when I first started reporting on the music industry, it wasn't. Exactly a sexy topic. but now, I mean, between UMG or I guess virgin buying downtown and then the STEM deal, I, I think we're seeing a lot more of these sorts of acquisitions. But the reasoning is because I think that's where a lot of these deals are gonna live in the future, like label services, that's what it's all turning toward.

And when I hear more and more about the sorts of deals that artists Are kind of carving out for themselves now. It's getting harder to tell the difference between distribution and what a record label is

[00:01:35] Dmitri: Absolutely.

[00:01:35] Ethan: And what these services are. They're all kind of melding into one. And that's the topic I've been talking about with so many different people lately.

Like just what is the difference? And frankly, it's like. It's getting harder to tell. I mean, it's really all sort of becoming this very similar thing. I'm very curious what the differentiation is gonna be in the years ahead.

[00:01:52] Dmitri: It's interesting that you bring that up, and I'm glad that we don't have to talk about AI all the time.

We will be talking about AI at the conference today. but you know, we, we always wanna look broader than just whatever's popping, whatever the hype cycle is or the trend. And I do think AI is gonna have an impact, but on the distribution front, it's almost like this is the next chapter of. This self releasing the DIY.

Then you know you have kinda like the middle class musician, then you have the major, there's this other tier in between that I think you're talking about. There was this whole conversation 10, 15, 20 years ago about the long tail of music. Well, the long tail is not getting shorter, but it might be starting to get a little fat.

And I think some of these players you're talking about are figuring out how do you both serve that middle tail and also fatten it as well,

[00:02:35] Ethan: right? Yeah. And you know, I don't want me saying this to say, oh, there's no such thing as a record deal. It'll never happen anymore, but. I think about what the future of all these things look like and everyone's talking about how it doesn't involve copyright anymore and you keep your masters and all these things.

And when it gets to that, it's just, I'm perplexed by like, okay, so what is the difference between all this? I mean, there's of course like the sort of marketing and all the other, you know, levers that are at labels, but more and more of these companies that are below that are saying, we have all these things too.

And I, it's just, if I'm a developing artist, it's interesting me to think like, okay. What is the right answer then? Because it sounds like you're all telling me you could do the same thing.

[00:03:13] Dmitri: Yeah, I hear more and more distributors saying, well, we're not exactly a distributor, we're not exactly a record label, or we are a record label.

You know, like we're a new type of label. We're a tech enabled record label, but then they have like a zillion artists as well, and a zillion services, and it's just, it's just like a different kind of a way to arrange things.

[00:03:31] Ethan: Right.

I think people don't want. if you are on the distribution side, they don't want to be like, we are the old way of what you would think of like just.

 the paper definition of like a CD baby or distro kid of like, just put your music here. They don't wanna be looked at that way. It's like a supercharged version of something like that is what they're saying.

[00:03:47] Dmitri: Yeah.

Yeah. Well, this is fun. Thanks for checking in. Is there one more trend or, seismic shift that's on your mind we could hit on before we wrap up?

[00:03:54] Ethan: I'm sure there's one, I can't think of it at the moment, but I'm sure I'll, uh, I'll come back to you if I think anything.

[00:03:59] Dmitri: Well, we'll ask you at the end of the day. Ethan, great talking to you. I'm so glad you're at Tectonics.

[00:04:03] Ethan: Thanks for having me.

Let us know what you think! Tweet @MusicTectonics, find us on LinkedIn, Facebook and Instagram, or connect with podcast host Dmitri Vietze on LinkedIn, Twitter, and Facebook.

The Music Tectonics podcast goes beneath the surface of the music industry to explore how technology is changing the way business gets done. Weekly episodes include interviews with music tech movers & shakers, deep dives into seismic shifts, and more.