Independent Label Trade Group

From Digital Music News:

Indie Labels Flex Collective Muscle With New Trade Group

In an attempt to counter the market power of the four major music companies, 125 of the largest independent record labels in the United States announced the formation of a new trade group earlier this week. The American Association of Independent Music (or A2IM), which will be based in New York with a lobbying arm in Washington, DC, will work to give indie labels clout commensurate with their collective market share - pegged at 25% by some industry observers. Members of the new group include TVT, Lookout Records, Beggars Group and Tommy Boy Records, among others. [...]

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Whatever the impetus, the timing couldn't be better for this move. With the major label system and its products finding a cool reception from a growing number of music fans, and decision makers either unwilling or unable to adapt to fundamental changes in the marketplace, conditions are shifting in the indies' favor. As TVT's chief executive officer, Steve Gottlieb, puts it: "Manufactured pop culture is disintegrating before your eyes as the Net takes hold," and the nimbler, less risk-averse indies are best positioned to take advantage of the digital transformation. While the majors look at P2P file sharing, podcasting and other forms of digital distribution and see thieves, pirates and the willful disregard of copyright, the indies increasingly see a chance to connect directly with their customers - and an opportunity to steal a march on the Big Four. As Gottlieb points out, independent artists now account for 30% of internet radio play, and labels such as Artemis Records (Steve Earle, the Pretenders) have been distributing files over P2P networks for over a year. Add the fact that podcasters, at the wheel of the fastest-growing media phenomenon around, almost universally avoid major label music due to potential licensing infractions and it starts to look like there's a digital train leaving the station - and the majors aren't on it.

Story by news analyst Michael Baker.

(strong emphasis mine)