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Loyola University Forum with Andy Allen of Alternative Distribution Alliance An Inside Look at Alternative Distribution Alliance An In-Depth Look At How Distributors Work The Economics of a Record Label Getting the Attention of Record Distributors How Distributors Determine Fees and Percentages Andy Allen of ADA Discusses Why He Stays in the Music Business How Distributors Manufacture and Market Music to Retail
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    How File Sharing Affects Distribution Companies

    Andy Allen
    As founder of one of America's foremost independent music distribution companies, Alternative Distribution Alliance, Andy Allen has nurtured the careers of artists like Better Than Ezra, The Arcade Fire, Liz Phair, Nirvana, and Tom Waits. Since founding ADA in the 1990s, Allen has managed to keep ADA true to its roots as a distributor and advocate of independent music (such as partnering with indie stalwarts Matador and Epitaph) while building strategic partnerships with major labels and manufacturers such as Warner Music Group. Today, Allen continues to refine ADA's operations and infrastructure to make the company robust enough to handle large releases yet flexible enough to allow for special projects like vinyl-only releases and other projects of more limited scope.
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    Andy Allen, president of Alternative Distribution Alliance, talks about the problem of file sharing and how it's affecting the distribution sector of the music business.



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    Alternative Distribution Alliance | Loyola University New Orleans | Loyola University New Orleans Forum

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    How do we exist with file sharing and burning? It's been happening for years. My business has grown about 40% a year. Am I being naïve that it's not hurting us? It's obviously hurting us. You know, when you talk to a retailer what they'll tell you is people will come into the store, they'll buy the record, they burn it for 10 of their friends. It's what we typically see – you know, you sell 100,000 records the first week; the next week drops off to about 30,000. What happens? Well, obviously, you know, a lot of sales are lost to this kind of communal idea of; it's a new licensing idea. It means that I'll buy one and I'll make a hundred for my friends. It's not kind of a sanctioned idea, but it happens, and it works. How do you combat it? Great artwork, tremendous loyalty from the fan base, sell stuff at gigs, keep the price down. So if we're able to, I think, make great music available, make it available widely, combine it with great packaging and great music and keep the price down, it's the only thing you can do, you know. If people want to steal from you, they'll steal from you.

    We're in a business where I think that the artists really make a connection with their audience, and if you can do that successfully the audience is a little less likely to steal from em, I think, you know. I don't know. Maybe that's naïve.
    [End of Audio]


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    Andy Allen--File Sharing.doc

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