Wash.-based independent record label Kill Rock Stars. KRS actually turns a profit - an exciting proposition for Net music companies looking to capitalize on the digital music craze. Several digital record companies are striking deals with indie labels to distribute their content online - under the condition the independent signs with them exclusively. In return, the Net company gives the label a cash advance. An indie that signs with one of them will have its catalog digitized in MP3 format and sold through the digital label's site, or on one of its retail partner's sites.
Labels get a share of the royalties after the companies recoup their advance.
Contracts last from three to five years, and include the distribution rights to any new music the indies record during that time. These deals sound a lot like the major record-label contracts that are anathema to most indies. Yet EMusic and Cductive, the leading competitors for exclusivity, have signed a total of 15 indie labels since August. Indie label 4AD, the home of Bauhaus, Cocteau Twins and The Breeders, recently signed with newcomer Atomic Pop. Those that sign an exclusive will have to ask permission before offering free downloads on other sites.