A union of five independent labels sold to U.S. retail by Warner Music Group’s Alternative Distribution Alliance (ADA) is seeking a physical-only distribution deal that could upset the business model for distributors, according to sources familiar with the plans.
The deal sought by Beggars, Secretly Canadian, Domino, Merge and Saddle Creek goes against the grain of the business model most distributors are increasingly trying to impose on labels: tying physical and digital distribution together. As part of that deal, however, they want to retain the ability to directly sell to indie retailers too. In other words, whomever signs the deal would just sell to Anderson Merchandisers, Target, Trans World, Hastings and other large retailers like Hot Topic, Sam’s Club and Toys “R” Us or large wholesalers like Alliance Entertainment and Super D.
Continue reading the rest of the story on Billboard