Neon Gold and Avenue A Unite to Form Indie Label Group ‘Futures’
Written by djfrosty on October 23, 2024
Neon Gold and Avenue A Records have joined together to create Futures Music Group, a tech-forward collective of indie labels with an artist-first mentality.
Distributed through Virgin, Futures was co-founded by Neon Gold’s Derek Davies (Charli XCX, Tove Lo, Marina & The Diamonds, Passion Pit, Matt Maeson) and Avenue A’s Dave Wallace (Barns Courtney, Blossoms, Palace, Self Esteem) in early 2024. When the label group’s first release as Futures, “Home” by Good Neighbours, quickly went viral in January, the song quickly put the band on the map and served as a proof-of-concept for the Futures model. Perhaps the biggest debut single by any artist this year, “Home” was certified platinum in less than nine months.
The Futures roster also includes Phantogram, The Knocks, Barns Courtney, Palace and Mt. Joy, the latter of which was signed through a joint venture with the band’s own Bloom Field Records. (Good Neighbours first EP, including “Home,” are also through Futures until the band’s deal with Capitol/Polydor kicks in January 2025).
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Over time, Futures Music Group will grow to include more indie labels (and artists) under its umbrella. It also intends to build an internal team for digital marketing, sync licensing, sales, content production and more that can be shared between the individual labels.
At Futures, artists are signed to license-based deals, keeping master ownership in the artists’ hands, and the royalty split is kept equitable between the label and artist. In some instances, the split moves further into the artist’s favor after certain profit thresholds are met. This allows for what Davies calls “maximum incentive alignment” between both parties, and it rewards the artist for success.
The deal terms and options are “shorter and less onerous than most competitors,” Davies adds. “Our thing is if we do a great job, then we hope people will just keep rolling through and working with us,” says Wallace. “Keeping artists happy is the name of the game. We don’t want to work with an artist who is only working with us because of a contract. There are not many successful record campaigns that come out of a relationship where the artist is unhappy,” adds Davies.
The company also wants to do right by songwriters. The label group has pledged from now on to give points on every master to any non-producing and non-performing songwriter from the label’s share. (Exact deal points for this are handled on a case-by-case basis).
Along with their commitment to artists, Davies and Wallace of Futures have also spent the last few years studying and investing in how new technology will disrupt the music business. Davies, for his part, co-founded the start-up Medallion, which helped artists like Santigold, Greta Van Fleet, Tycho and more build and own direct relationships with their most passionate fans using web3 technology. The co-founders have also been strategic investors in Big Effect, a digital marketing platform founded by Spotify and UMG alum Mike Biggane, and Notes.fm, a royalty management platform from Stem co-founder Tim Luckow.
“We believe the future of the music industry has never been brighter for artists and the independent sector,” says Davies. “The industry has reached what we believe to be the largest inflection point in the history of the label system, as we are moving into a new music economy that is rightly trending towards artist ownership. We believe there’s a meaningful opportunity for a well-financed and resourced label group with a proven track record to deliver major results for artists on indie terms, which is what we’ve set out to build with Futures.”
The founding team includes: Davies (co-CEO), Wallace (co-CEO), Sarah Kesselman (CMO, general manager), Nicky Berger (COO) and Jeff Lin (CFO).