Kalistani Major History

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Independent Record Producers to Take on KMI
New Cooperative to offer better royalties, more creative control to artists
Sulari, Suldanor
November 20, 4781


Main base of new Artists Recording Cooperative (ARC) in Sulari

For centuries, KMI has been the primary producer of records in Kalistan. Their studio model has carefully guided the careers of the main Kalistani music makers since the founding of the Record Company in the 4400s. And in the process, investors in the privately owned and tremendously successful record company have grown incredibly rich, largely by producing music at scale and sticking rigidly to the very tight "Schedule of Royalties and Licensing" that artists who sign with the producer agree to.

However, for the first time, KMI has a serious competitor. Dozens of independent producers, which are actually responsible for the majority of music made in the Republic, have banded together to form the Artists' Recording Cooperative. "When you sign a major deal," said producer and ARC co-founder Don Bernstein, "you basically give up a lot of freedom over your content, and you certainly trade earnings potential for a steady check. This model worked when Kalistan was building its record industry, but its time for a different model."

The ARC model is simple: ARC acts as distribution for a flat, unit-based fee. Rather than paying advances which KMI is well known for, and which ties the artist to the label, ARC aims to rent out studio space. ARC aims to open a record pressing facility, and provide server space for streaming that artists can pay for from their earnings. "At the end of the day, it leaves the choice of earnings up to the artist themselves," says Bernstein.

Along with the cutting of ties in the ARC model, comes relinquishment of creative control for the producer. "Since we are primarily a distributor, we think the artists themselves ought to control the quality of their music, their image, whatever. We are middlemen in the process of getting an artist's vision in front of as many people as possible. And I think this model will be very lucrative for us, because we also cut overhead to the bone." Bernstein said that the collective, with studios across the Republic, will allow artists to fine tune their sound to their own specifications, and allow even big artists to produce records that sound independent, if this is the aesthetic they seek.

Most alternative and independent artists in the Republic hailed the creation of the cooperative. "We couldn't get a deal with KMI if we tried," said punk band "Bomb The President"'s frontman Alex Donk. "We never met their image, our music wasn't quite to their standards, and more importantly, they never felt they could make money off us. But ARC will give us a chance to be heard by a wider audience, and that sounds like something that we can get behind." But some were not so enthusiastic about the prospects of the fragmenting of the music industry. "This will lead in the decrease in quality in Kalistani music," said rock and roll journalist Dennis Gadea. "If these independents get together and start competing with KMI, we will see a dramatic decrease in the royalties paid to the most popular artists here in Kalistan. It might even be the death of the Kalistani record industry."

Bernstein defending the decision to band together: "In uniting all the main independent labels, we are ensuring that there is a company big enough to offer a serious alternative to KMI. We are working for the Artists, the producers, and the fans. We will give more options, including for foreign bands who want to come to Kalistan and record, but have been shut out of the factory system under a KMI virtual monopoly. I see that as a win for Kalistani music."

ARC's main offices are located in Sulari. They plan on listing publicly in the Spring.