20 – the ofďŹ cial midem daily news
Sunday 29 January 2012
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the orchard
Growth in Europe gives The Orchard something else to celebrate INDEPENDENT music and video distributor The Orchard is celebrating 15 years in business in 2012, and co-founder Richard Gottehrer clearly remembers the company’s ďŹ rst visit to midem in 1998. “We took a small stand and we spent a lot of time explaining what we were doing, even to the point where we were detailing what a download was,â€? he said. Since those pioneering days, the world has caught up with Gottehrer’s idea, and currently his main goal is to ďŹ ne-tune the seamlessness of The Orchard’s operation. “Around 90% of what is both up- and downloaded into our system is done through Release Builder, a piece of proprietary technology which also co-ordinates all the marketing material around each release,â€? he said. “Our original plan was, that when digital music became what it has become today, we should be a global player, and we have achieved that, with ofďŹ ces in 26 countries, plus ongoing expansion in South America, Africa, and in Europe — where we now have more than 20 people working for us.â€? The Orchard’s European operation, led by ex-
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ADA executive Colleen Theis, is, according to CEO Brad Navin, currently a major source of growth: “Europe has now started to catchup with the US in terms of digital sales, partly due to the infrastucture and the widespread availability of broadband, and partly because consumers have now got over their worries about buying digital ďŹ les. And I have to admit that consumer reluctance was to some degree caused by the way the music industry dealt with subjects like DRM, lack of cross-platform compatibility etc. But the reality is that currently in the US, over 50% of sales are downloads, whereas in Europe it is closer to 25% — but the gap is closing, which is why our European operation is so dynamic right now,â€? he observed. With a total of 1,600 active labels (active being deďŹ ned as ‘at least one release per year’), 64% of which are outside the US, The Orchard is a truly global company. “The European expansion provides us with a great way to kick off the year, and next we are looking at South America where iTunes was launched last December in certain markets, including Brazil and Argentina, and where we are now looking to grow our presence,â€? Navin said.
THE OFlCIAL MIDEM DAILY NEWS s Sunday, January 28, 2012 Director of publications: Paul Zilk
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