What we’ve learned after nearly 1,500 advances: Labels want independence too

This blog was originally published in Music Ally

When we launched beatBread in 2020, our intent was to free artists of the onerous economic terms and loss of control that comes with major record deals and provide opportunities to artists that major labels just won’t or just can’t fund.

Since that time, our belief has only grown stronger – and we’ve expanded that conviction to more than just artists, but to a mission of democratizing the music industry as a whole.

After nearly 1,500 advances in less than four years, here’s what we’ve learned.

Artists aren’t the only ones who want more choice. Labels do too.

As the industry continues to trend toward independence, the need for flexible and transparent funding isn’t just reserved for artists.

Independent labels need funding to adequately service their artists without being tied down by complicated contracts and a never-ending cycle of advances that often keep them locked in with their distributor. These financial constraints can stifle a label’s ability to make strategic decisions and grow organically.

In an industry where adaptability and agility are crucial, independent labels need the freedom to choose their distribution partners based on service quality and alignment with their unique vision, rather than being forced to compromise for the sake of a large check. beatBread was able to provide a deal structure for Kingdom Records that allowed them to make a significant difference in their business.

“We had a great experience with beatBread. The deal structure was very well put together. beatBread has my sincere gratitude for delivering a great service. beatBread’s assistance has made a significant difference in our business ventures. My interaction with the team left a lasting positive impression.”

Joan Sullivan, CEO of Kingdom Records.

Too many independent labels aren’t getting enough out of their distributors in exchange for the price they pay.

For too long, indie labels have been forced to choose their distribution partners based on the amount of capital available – not the quality of services.

That’s why we teamed up with OpenPlay to empower independent labels with access to funding, the best distribution terms, and ensure that their distribution partners remain focused on delivering value.

This partnership enables labels to easily switch distribution partners, allowing them to ensure they get the best terms and services from their distributors. Additionally, our flexible financing tools allows labels to compare and evaluate financing offers, both from beatBread and other capital partners.

beatBread’s Funding Network offers more choice and convenience.

We’ve expanded our flexible funding tools to allow labels to easily compare multiple funding options from beatBread, our partners, or other third-party offers outside of beatBread and our network. Our deal comparison tool leverages our streaming forecasting technology to help artists and labels analyze their options and make informed decisions about trade-offs between different funding offers, such as term length, fees, and rates.

Our recently launched Funding Network allows us to provide artists and labels with both our own capital and capital from the industry’s leading distributors, providing higher advances, better terms and more choice.

With more choice also comes more convenience. With the beatBread Funding Network, we bring top distributors directly to you so you don’t have to waste time banging down doors across the industry looking for funding. Plus, with our proven data driven model you know you’re getting a fair deal without rounds and rounds of futile negotiation.

What we’ve found is that every situation is unique. Sometimes the best funding option comes when beatBread provides 100% of the funding – sometimes it’s when we co-fund a deal with one of our partners. In other cases, the best option is entirely funded by an external third party. If the external offer is a better fit, we’ll show the artist or label their options and help them make the right decision.

When investors compete, independent music wins. Our mission is to empower artists and labels with choice, insights, and leverage.