The Music Label Flywheel ????

The Music Label Flywheel ????

How Anjunabeats' functions build on their success and bring the label's music business to life

Have you ever faced the tough choice of deciding which of your favourite artists to see when they're performing simultaneously at a multi-stage festival? This year's Brighton Music Conference (#BMC23) presented exactly that dilemma, with candid sessions covering DJing tips, label establishment, A&R, rights, data, and AI in music, among others. Amidst these choices, there was one session that I was sure not to miss—the Label Q&A panel with Involved Group - Anjunabeats, Anjunadeep, Involved Management, Involved Publishing .

For the uninitiated, Involved Group, the parent company of Anjunabeats and Anjunadeep, runs one of the most successful labels in electronic dance music. They are credited with launching renowned artists such as Ben B?hmer, Lane 8, Tinlicker, and for cultivating a passionate fan base that runs in the double-digit millions.

As I listened starry-eyed to the panellists sharing their insights on their individual functions, a blueprint started to form. Each function acted as a gear, fueling the momentum of other gears, creating what is known as the #flywheel effect, and propelling the music vehicle forward in significant strides. This article aims to delve into the intricacies of the music label flywheel established by Involved Productions.

Understanding the Flywheel Concept

A mechanical engineering term, the flywheel is commonly employed in the workings of engines and foot-operated sewing machines and finds metaphorical application in the realm of business strategy. The flywheel describes how various functions within a company leverage each other's gains to generate an unstoppable momentum. Business thought leader Jim Collins coined the term, expressing it as follows:

"In building a great company or social sector enterprise, there is no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Rather, the process resembles relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and?beyond." - Jim Collins

Collins' emphasis lies not in a single endeavour but in the cumulative, symbiotic gains of multiple functions that lead to consistent momentum.

Disney and Other Flywheels

In 1957, Walt Disney illustrated the company's flywheel, showcasing the fundamental strategy and the interconnections between its business units. Bang in the centre of this flywheel lies the creative heart, Disney Studios, responsible for generating the original stories and characters that serve as the bedrock of Disney's business. Surrounding this core are various channels through which Disney disseminates these characters, expanding its reach and fostering growth.

Drawing a company’s flywheel gives clarity on the driving forces of the business. Many thought leaders have defined and shared a version of the flywheel, called the "virtuous cycle", showing the vital drivers of their businesses. Linked are renditions of Uber's, Netflix's and Amazon's "virtuous cycle", as depicted by leaders in the industry.

The Involved Group flywheel

The Heart of the Engine - Music:

Similar to Disney's approach, the label flywheel's powerhouse is the content itself—the music. The label is renowned for its experimental yet quality-driven approach, with the Artist and Repertoire (A&R) department tirelessly scouring the globe for music and artists that captivate both the team and listeners, providing the fuel to power the engine.

Artists, in turn, are drawn to specific labels, such as Anjunabeats, due to the label's impressive commercial achievements, resources, the calibre of artists already on their roster and the label's ethos. The label's success, combined with its roster of respected artists and teeming fan base, acts as a magnet for aspiring talents, creating a virtuous cycle of talent acquisition and artistic growth.

The artists themselves play a crucial role as they gather a dedicated fan following. As demand grows, the label provides them with more opportunities, such as features in radio shows, events and standalone shows, further solidifying their commercial success and deepening the connection with their fans.

Promotion via Digital Mixtapes - Radio Shows:

In the past, classic radio plays were the only means of music promotion and reach. However, with the advent of the digital era, the concept was democratized. People began discovering music through digital platforms, with set lists and concert performances being released online. This evolution gave rise to digital mixtapes by tastemakers turned label owners and paved the way for iconic radio shows like Armin Van Buuren's "A State of Trance" (ASOT) and Above & Beyond's "Group Therapy" (ABGT).

These radio shows, including flagship Above and Beyond Group Therapy, Anjunabeats Rising Residency for emerging artists, and Anjunadeep Edition for the deep label, serve as the initial promotion engine. New music and guest mixes by the artists are featured on a regular basis, allowing for exposure and engagement. As of 2021, the label has shifted its focus to releasing content exclusively on monetizable platforms such as streaming services, departing from the open/free-to-listen podcast format.

This promotion model has proven highly successful in not only introducing new music and artists but also in launching and cross-promoting the repertoire of sub labels and roster owned labels such as Anjunadeep and Reflections, leading to enhanced visibility, growth and subscribership of the label's new endeavours.

Bringing Fans Together IRL - Live Events:

Anjunabeats' distinctive fusion of experimental yet gourmet musical stylings, community-centric ethos, and unwavering commitment to consistently releasing exceptional music in their high-quality show episodes has fostered a fervent and devoted fanbase known as the #Anjunafamily. However, the ultimate goal is to unite this family in real-life experiences, thus deepening the sense of community and fandom. To achieve this, the label organizes celebratory gigs for every 50th episode of the Group Therapy show, which have met with immense success. The flagship "Weekender" event consistently sells out and has drawn tens of thousands of attendees to iconic venues worldwide, including the Gorge Amphitheater, Red Rocks, Drumsheds, and more.

The label curates these experiences meticulously, engaging the community through interactive events, promoting well-being, and fostering a deeper connection with the music.

Much like the shows, the event also serves as a platform for cross-mixing with sub-labels, generating interest and understanding potential.

James Grant, co-owner of the label, commented to Billboard:

[At Group Therapy 250 in 2017] ..we had Above & Beyond on the main stage, and then we did Anjunadeep in the meadow, and we probably had 25,000 people for Above & Beyond and about 17,000 people stuck around for Anjunadeep on the Sunday. That was really a moment where suddenly it was like, 'Wow, this thing has huge potential in its own right

Following the above, Anjunadeep has evolved and hosted its own standalone, weeklong event called Anunadeep Explorations in 2019.

Last year we saw the continuation of this strategy with the London Weekender showcasing two stages for their newest sub labels, Rising and Reflections and events for Reflections are now in production.

The Last but essential component - Monetization

The collective success of radio shows and live events fuels the label's overall commercialization strategy. A growing listener base translates into increased demand for music sales, streaming, and merchandise, resulting in a sustainable revenue stream.

As Anjunabeats continues to innovate and evolve, they leverage this commercial success to take more risks with their A&R, launch new labels, enhance radio and live shows, and the overall fan experience. This propels the flywheel with higher momentum, as more artists get attracted by growing commercials, fan base, and better resources, continuing the virtuous cycle, and enabling the label to keep growing and delivering unparalleled musical journeys.

-----------------------------------------------------------------------------------------------------------

Involved Group has proven to be truly innovative, as the dynamic interplay between Anjunabeats' various functions ensures the continuous motion of the flywheel, driving the label's ongoing success in the music industry.

As we explore the business models of music labels, it is worth considering other labels that employ similar strategies and pose the question:

1. Are there other labels employing a similar or more nuanced flywheel? ( Armada? Spinnin?)
2. Are there any noteworthy examples of innovative models being implemented by other labels?

By examining different approaches, we can gain insights into the diverse ways in which labels cultivate success and engage with their audiences.

As I conclude this piece on the eve of departing for Anjunadeep Explorations, I eagerly anticipate immersing myself in the captivating music (see below playlist) and reuniting with the vibrant Anjunafamily. However, amidst my excitement, there remains one burning question on my mind that threw even the label panellists into a flurry - How do I secure those elusive Gjipe tickets?

All views and opinions expressed in this article are the personal perspectives of the author and do not reflect the views or opinions of the author's employer, organization, committee, the label referenced, or any other group or individual mentioned.

#musicindustry #musiclabel #musicbusiness #flywheel