15
David Breese BRE07399019 MC581 - The Music Business Music Business Research Report - Jibbering Records David Breese MC581 - Music Business Research Report 1

Jibbering Records Report

Embed Size (px)

DESCRIPTION

A report on Bimringham based Music Business, Jibbering. Created for a second year module, The Music Business towards a BA (Hons) from Birmingham City University in Media & Communication.

Citation preview

Page 1: Jibbering Records Report

David BreeseBRE07399019

MC581 - The Music Business

Music Business Research Report

-Jibbering Records

David Breese! MC581 - Music Business Research Report

! 1

Page 2: Jibbering Records Report

Introduction

! As a required element of this module, I have constructed the following report

surrounding a West Midlands based music business. The business I have worked with and

which is the subject of this report is Jibbering Records.

! Over the past decade of its existence

the core businesses and areas of the music

industries in which Jibbering operates has

changed radically. This report aims to discuss

the who, what, wheres, why and hows of Jibbering records. It will explore the varying

aspects of the Jibbering business both past and present, it will explore the reasons why

certain aspects of Jibbering may have been more successful than others, the forces that

have shaped and continue to shape the business and its involvement in the wider areas of

the West Midlands and national music and cultural industries.

! In brief, Jibbering Records is a Birmingham based music business that originally

started trading as a record shop at 136 Alcester Road in Moseley, in the south of the city.

The shop specialised in more left field and specialist genres of music including Jazz, Funk,

Hip-Hop, Reggae, World Music and anything in between. Whilst trading in music retail, the

business expanded into various other areas within the music industries and further,

including areas such as events production and promotion and the business also started to

expand into other cultural sectors including producing art exhibitions coupled with music

and a separate banner, ʻShambalaʼ was christened, a festival organised by the same

people behind Jibbering.

! The shop ʻJibbering Recordsʼ unfortunately ceased trading and closed its doors in

February 2009, however the company still exists, and the name ʻJibberingʼ still acts as

banner for a number of areas of business. Some operating as the original firm as well as

some which have been sold or operated by other businesses. Jibbering now operates out

David Breese! MC581 - Music Business Research Report

! 2

Page 3: Jibbering Records Report

of two locations. Currently Jibbering is operated by three directors with the head office of

the business being located at The Custard Factory on Gibb Street in Digbeth. The

company also own a warehouse space on Flood Gate Street, Digbeth. This space is used

as a venue and exhibition area by the company for its various art exhibitions and events.

! The various histories and aspects of Jibberingʼs business are discussed further in

the next section of the report.

Research

! In order to construct this report, I contacted Jibbering as a potential business to act

as a subject, and for the necessary permissions to conduct some research. The findings

from my research were gathered in a number of ways in order to collect enough

information for a detailed and informed profile and understanding of the business. As well

as significant online preliminary research into the businesses history and to understand the

scale of the business online presence, I liaised with Oliver (Oli) Grassi, one of the directors

of Jibbering. I conducted interviews with Oli and this is how I retrieved the majority of the

information featured in this report. Oli was also able to show me around parts of their

premises, particularly their warehouse space that at the time of my study housed a

collection of art to go on display as part of an exhibition. Below I have displayed my

research under a number of different headings. These headings correspond to the

different areas in which Jibbering has previously or currently operates within.

Structure

! Jibbering is an independent music business with the main company operating under

the name ʻJibberingʼ being owned and run by three directors, Oliver Grassi being one of

the three. The three separate directors each take charge of different areas of the business.

Oli takes charge of Jibberingʼs involvement with art with Dan and Jon taking up areas of

David Breese! MC581 - Music Business Research Report

! 3

Page 4: Jibbering Records Report

events and PA etc. More details of the various elements to business follow later in the

report. The duplication service that operates under the banner of Jibbering still operates

from the head office location at the Custard Factory however was recently sold to a former

member of staff and functions under different ownership and management outside of the

other Jibbering operations.

Retail

! The retail element of Jibbering was the

founding business of Jibbering and started in

1999 in the form of a record store in Moseley.

The shop sold various formats of music

including vinyl and CDʼs from a variety of

genres. The shop did not stock any of the more

popularised genres of music found in bigger

music store chains such as HMV, but

specialised in left field and niche music markets

including Jazz, Reggae, Hip-Hip, World Music

and relative genres.

! Moseley where the shop was based is an area, strongly associated with art and the

cultural industries and there are vibrant scenes of all the genres that the Jibbering records

shop dealt with. The shop also housed a small cafe and arguably developed into local hub

of the vibrant arts, music and culture scene in Moseley by supporting local artists and

stocking their releases alongside artists from around the world.

! The shop generated most of its sales in vinyl, however did stock other formats and

Jibbering also ran an online digital mp3 store. The mp3 store continues to run even after

the closure of the actual shop, however the digital store isnʼt maintained, new releases

David Breese! MC581 - Music Business Research Report

! 4

Page 5: Jibbering Records Report

arenʼt added and the there isnʼt a large amount of music available. The revenue generated

from sales from the mp3 store is minimal.

! On reflection, Jibbering now consider their initial retail setup ʻa hobbyʼ moreover a

feasible business. Finding it difficult to make a profit, Jibbering owners were unable to take

money from the business and all worked other part time jobs to earn a living. To make

ends meet, Jibbering started to develop into other areas such as promoting events and

starting a CD and DVD duplication service.

! Jibberings retail store closed in February 2009, which the owners believed was due

to a number of reasons. Thanks to digital music and the spread of ʻillegallyʼ shared music

online, the demand for physical forms of music has greatly reduced, leading to a drop in

foot fall into the shop. Dominant online digital stores such as iTunes and HMV digital also

have cornered the market in terms of digital sales, never really allowing Jibberingʼs own

digital store to develop. In terms of the actual shop, thanks to the same reasons as well as

the current economic depression, Jibberingʼs main suppliers, Pinnacle Entertainment went

into administration. This in turn had a knock on effect for Jibbering meaning that thier

access to stock was cut.

! The Jibbering store however, did force the business to develop into other areas,

and acted as a foundation for further work and opportunities. It is these areas which the

business still operates today.

Duplication

! As mentioned above the duplication service Jibbering operated was set up in order

to generate revenue to support the shop. This business continued to operate after the

shops closure, however has now been sold. The duplication element of Jibbering still

operates from the main office and still uses the name Jibbering, however it is not owned by

David Breese! MC581 - Music Business Research Report

! 5

Page 6: Jibbering Records Report

the Jibbering company and its finances are not connected to the rest of the business in

any way.

Live Music Events

! Live event production and promotion was also set up whilst the shop was still

running and is by product of the cultural capital and image that Jibbering has generated for

itself through its involvement within specific music and arts communities. Jibbering

currently produce and promote monthly events at ʻThe Hare and Houndsʼ, a live music

venue and pub in Kings Heath, Birmingham not far from the original location of the shop.

The relationship between Jibbering and the Hare & Hounds was developed within the

specific music scene happened in south Birmingham, both businesses involved and

interested in the same kinds of music were able to work together, Hare & Hounds

benefitting from customer foot fall and Jibbering taking a cut and developing their image as

the front runner of left field music in Birmingham.

! Through the live music events, Jibbering aim to bring ʻnew, cutting edge music to

the city whilst still supporting local homegrown talentʼ. Eventing is arguably the strongest

area of Jibberings operations. This is down to not only the experience the various owners

have in the field, but the retail shop allowed them to influence which acts were popular and

when. Looking a popularity in sales not only from the shops but thanks to relationships

with various distributors allowed Jibbering to promote live artists that were most likely to

gain a good audience and generate the most money.

! Thanks to relationships forged with various distributors, record labels, other

promoters and other businesses, the live music events promoted by Jibbering continue to

happen, working within the current scene, supporting the Jibbering ʻfamilyʼ of bands and

bringing in new artists from outside of it.

David Breese! MC581 - Music Business Research Report

! 6

Page 7: Jibbering Records Report

Displayed below are examples of some of the flyers that have been produced for various

live music events Jibbering has organised and promoted.

Shambala (Kambe Events)

! When performing my initial research surrounding Jibberingʼs various activities, it

was clear that Shambala is the main focus of their activities. Shambala is an annual music

and arts festival organised by the people behind Jibbering. The name Jibbering is kept

seperate from Shambala as the cultural image founded surrounding Jibbering is different

to that of Shambala.

! Kambe events is the name of the company set up by those that also run Jibbering

which operates specifically in large event logistics and production, with the biggest being

Shambala. Shambala, the festival, currently happens in August at a the Kelmarsh Hall

Estate in Northamptonshire and is very diverse in terms of the acts is puts on at the

David Breese! MC581 - Music Business Research Report

! 7

Page 8: Jibbering Records Report

festival. Whilst Jibbering is largely associated with a certain kind of music and particular

scene, Shambala aims to promote its diversity of acts as a unique feature. It promotes

music from a variety of genres including those featured in the Jibbering community, but

also a wide ranging number of acts from genres including electronic, urban and some rock

acts. The festival not only promotes music on its roster but a large number of other

performance arts from a variety of artistic fields including poetry, visual arts, and film.

! The idea of ʻindependenceʼ is a key selling point and feature in which the organisers

of Shambala are keen to keep. The festival is currently completely independent, self

funded and free of sponsorship. The festival is a relatively small festival with expected

attendance anywhere between 11,000 and 15,000. The events relatively small, niche

audience is also something that the festival aims to keep, the festival is not advertised and

is promoted purely by word of mouth. They rely on a database of previous attendees and

have said they wonʼt let the festival expand to more than 20,000 attendees. With

sponsorship and advertising the event has potential to expand and make large amounts of

money, however such development deviates strongly from the organisers ideologies.

Art

! Given the type of music that Jibbering is largely associated with and through the

owners involvement with the artistic elements of Shambala festival, there is huge cultural

crossover between other forms of artistic expression coupled with the contacts and

experience of working with artists from the festival.

! Promoting art exhibitions and individual artists is currently the main activity

operating within the Jibbering organsation. The separate exhibition premises provide a

space in Digbeth, another artistic cultural hub in Birmingham, to display art work relating to

its own brand identity.

David Breese! MC581 - Music Business Research Report

! 8

Page 9: Jibbering Records Report

! The brand image developed and various contacts throughout different cultural, has

enabled them to developing a thriving business surrounfing artist and exhibition promotion.

Often their launches of art events draw from their experience in the music events industry

and they combine the two, promoting live music events alongside complimentary visual

arts.

!

! Displayed here are some of photographs of the current exhibition entitled ʻLine

Steppersʼ which provides examples of the kind of visual and art work that Jibbering help

promote and work with. In the appendix of this report, there is some promotional material

David Breese! MC581 - Music Business Research Report

! 9

Page 10: Jibbering Records Report

for their current art exhibition which involved a number of huge and influential artists as

well a musicians for the launch event.

Funding and Finance

! At present Jibbering and Kambe Events are completely independently financially

supported. All the funding for every cost is paid for from revenue or personal funds. As

mentioned previously all those working for Jibbering maintain other jobs that are their

means for earning a living. The retail side of the business lost the company money and

since then any profits made go to cover the cost of overheads and debt. Whilst I was

unable to get exact figures, the company are now financially stable, with few overheads

generated by current activities. Shambala thanks to its popularity makes profit and this

profit is currently helping to support Jibbering. There are also plans to apply for funding in

future projects. Such funding may come from arts councils and other cultural support

groups.

The Future of Jibbering

! The main focus of all those involved with Jibbering appears to be shifting towards

the constant development of the Shambala festival coordinated by their other company,

Kambe Events. Whilst the direction of focus switches to Shambala, the future of Jibbering

remains undecided. Whilst Jibbering is relatively financially stable, it will continue to

operate in its current routine with live music events at The Hare and Hounds and

occasional art exhibitions. Director Oliver Grassi, stated that they will always be on the

lookout for new projects and for the foreseeable future they will work on a project basis as

to remain financially stable.

! Kambe Events however goes from strength to strength. The festival is making more

money every year and this is able to be put into further projects. The company has

David Breese! MC581 - Music Business Research Report

! 10

Page 11: Jibbering Records Report

recently been working on the logistics and production elements of the St. Paulʼs carnival in

Bristol. The companyʼs work with Shambala has also won UK festival awards.

Theoretical Analysis & Critique

! From immediate interpretation of the findings produced by the research on

Jibbering is that they are a fiercely independent company with strong ethical ideologies of

art as culture rather than a product they can exploit for personal gain. Much of their

involvement with music and other artistic cultures is evidently for the benefit of culture and

not for profit. This begs the question whether or not that now Jibbering are not functioning

in the retail sector if they are a viable, ʻfor profitʼ music business or whether their current

operations are more of a charitable organisation for the promotion of niche pop culture.

! Kambe Events however maintains an ideology of cultural significance whilst

generating revenue. The fact that with sponsorship deals and advertising their is clearly

more money to made still remains route the company choose not to take.

Simon Frith (1992) presents the argument between culture and commercial benefit in his

work ʻThe Industrialization of Popular Musicʼ, he states,

# ʻThe contrast between music as expression and music as commodity defines

# twentieth-century pop experience.ʼ

!

! Jibbering certainly represents one side of this divide and it is in the divide that they

remain vastly independent. Various academic research of the topic of independent arts,

one the key theorists and works in independent cultural study is Hesmondhalgh (1998)

and his case study of the British Dance music industry. His findings and theories draw a

direct correlation to the principles Jibbering continue to uphold. The idea that be remaining

independent holds cultural value and ʻcredibilityʼ within niche markets, just like the one

Jibbering operate within. The independence of Jibbering also goes a certain way to

David Breese! MC581 - Music Business Research Report

! 11

Page 12: Jibbering Records Report

creating is own brand and image. Krusseʼs work (1993), ʻSubcultural identity in alternative

music cultureʼ, re-enforces thisʼ.

!

! The failing of the retail aspect of Jibbering is clearly thanks to a changing music

industry. This change on audience consumption of music is a greatly debated and

discussed academic topic. Wall (2003, p.201) states how ʻfor the record industry, file-

sharing attacked the central economics of itʼs production and distribution systems.ʼ

Academic and scientific studies into the consumption of digital music (see Boorstin, 2004)

have proven the direct relationship between emergence of file sharing sites and the

decline in music sales.

! Arguably therefore this is one clear reason to the demise of the Jibbering records

store. Jibbering state that one of the key reasons for the shops eventual closing was the

economic slump leading to distributors Pinnacle Entertainment going into administration.

Gary Graham (2004) provides a detailed investigation into the changing music ʻsupply

chainʼ detailing how the industry is switching to a less complex model of big business

rather than incorporating smaller businesses such as Pinnacle and Jibbering.

! However, Jibbering records also sells digital music via an online store. Chris

Andersonʼs theories (2006) detail how online cultures and the internet present tremendous

opportunities for digital music consumption and sales particularly within niche markets. I

feel that Jibbering may have overlooked the possibilities that the development of online

trading via a service like the one they already currently use could have generated a great

source of income. Sites such as iTunes, Amazon mp3, HMV digital and the rest arenʼt

desgined to cater to niche markets and therefore do not provide direct competition to

Jibbering. Jibbering, having already established itself within a local music market place,

have missed an opportunity to spread their identity further afield online. Further academic

David Breese! MC581 - Music Business Research Report

! 12

Page 13: Jibbering Records Report

work discussing the possibilities electronic commerce presents can be found in research

conducted by Daniel and Klimis.

!

! ʻThe rationale for introducing corporate strategies in the music industry is no

! different to reason corporate strategy had become among senior business

! executives.ʼ (Negus, 1999)

!

! The above quote is quite applicable to the situation that Jibbering initially found

themselves in business wise. I feel they were founded as a ʻhobbyʼ more over a legitimate

business out to make money. Because of this no corporate strategy was implemented and

in a highly competitive business sector of the music industry, this lead to the core

businesses demise.

! However, retail is not the only aspect of which Jibbering operated and thanks to this

they were able to survive. Jibbering is closely related to art and it is the niche music

market crossover with type of art they work with that makes the association between what

they still do with music and and what they do with art, work together. In Negusʼ (1996)

work on mediation he describes hows semiotic connections between sound and vision are

important each other when constructing discourse and meaning. I think Jibbering have

managed to effectively construct cultural value and meaning in the way they work within

wider cultural industries. This is one of the key reasons they are now continue on their

path and going from strength to strength.

David Breese! MC581 - Music Business Research Report

! 13

Page 14: Jibbering Records Report

Conclusion

! Based on the research findings and the relevant application of academic theories,

even after ten years, are still a company with much development and potential expansion

left ahead of them. They remain a small business, that want to be involved with as much

as possible, but without expanding into a corporate company.

! The independence of the company remains important for a number of reasons. It

reflects the ideologies of the company owners as well as serving to create the companies

identity, brand and image. It is this independence and the lack of willing for the use of

sponsorship and advertising, in its Shambala festival for instance, that have created a

unique selling point for a niche market with similar ideologies. They benefit from huge

amounts cultural capital generated through its branding and the cultural industries they

associate with.

! Whilst the company failed to adapt to a changing music distribution industry they

have clearly found their feet in other areas of the music and arts business. Thanks to this,

they now remain financially stable and the future looks bright for them as a company,

maybe not necessarily under the name Jibbering, but I am confident they will remain in

business for the foreseeable future. How they continue to develop will remain up to how

whether or not they choose to expand further into other cultural industries or develop the

projects in the ones they are in at the moment. If this means expanding events like

Shambala to generate more revneue, bigger audiences and advertising will it cause them

to loose cultural credibility and their unique USP in a busy marketplace.

!

David Breese! MC581 - Music Business Research Report

! 14

Page 15: Jibbering Records Report

Bibliography

Anderson, C. (2006)! The Long Tail, London: Random House

Boorstin, E. S. (2004)! Music Sales in the Age of File Sharing, Princeton University Department of ! Economics

Daniel, E. & Klimis, G. (1999)! The impact of electronic commerce on market structure: : An evaluation of the # electronic market hypothesis, European Management Journal 17(3)

Frith, S. (1992)! ʻThe Industrialization of Popular Musicʼ, Popular Music and Communication (Ed: # Lull, J.), London: Sage

Graham, G. (2004)! The transformation of the music industry supply chain: A major label perspective,# International Journal of Operations & Production Management 24(11), ! Emerald Group Publishing

Hesmondhalgh, D. (1998)! ʻThe British dance music industry: A case study of independent cultural productionʼ, # British Journal of Sociology 49(2), pp.234-251

Krusse, H. (1993) ! Subcultural Identity in alternative music culture re-enforces thisʼ, Popular Music #12(1), Cambridge University Press

Negus, K (1996)! Popular Music in Theory, Cambridge Polity Press

Negus, K (1999)! Music Genres & Corporate Cultures, London: Routledge.

Wall, T (2003)! Studying Popular Music Culture, London: Arnold

David Breese! MC581 - Music Business Research Report

! 15