SAN FRANCISCO (Hypebot) – This time the rumor mill proved correct. Sony Music Entertainment has entered into a global partnership with IODA which includes an investment in the digital distributor. IODA will now provide digital services for Sony's RED indie label arm, as well as, offer expanded overseas opportunities. In return, IODA can now offer its labels physical distribution and the stability of a corporate partner with deep pockets.
How Will Independent Labels React?
The exact details of how the two companies will work together are still being worked out. But if as Thomas Hess, Sony Music's President of Global Digital Business, U.S. Sales and Corporate Strategy told Billboard, IODA will be "joined at the hip" with the major, it is unclear how an often firecely independent label community will react.
In addition to different styles of doing business and an overall distrust for large corporations, isome indie labels have found competitive advantage in staying clear of any involvement with the majors and avoiding the taint of RIAA consumer lawsuits and battles like the current WMG YouTube spat.
Not to worry, says Kevin Arnold, the Founder and CEO of IODA. "Sony really impressed us with their respect for, and understanding of the needs of the independent community. We remain, as we always have, fully dedicated to helping independent content owners succeed in the digital world. This alliance will greatly enhance IODA's ability to continue delivering effective solutions for Independents."
"Sony Music is committed to offering independent labels and distributors the most compelling package of distribution services in the industry," Hesse added in a statement.