In the fall of 1996, Jonathan Tea knew there was a thirst for techno. Hundreds of hipsters would gather to dance to his creations every weekend in The Spy Bar, one of Cleveland's top clubs.
But Tea, production manager for rock station WMMS-FM, couldn't find a distributor for his music. So he cut his own 12-inch platter.
"I think the music industry is slipping a noose around its neck," said Tea, more commonly known by his techno handle, DJ Solarvibe.
"They're not interested in techno because it's not mass market. But by the time they come around, it may be too late."
Despite the commercial success of artists such as Tricky, Massive Attack, and the ORB, few commercial radio stations play techno. And because record companies are reluctant to sign new artists, many record stores don't stock the music.
So techno musicians are turning in increasing numbers to a hot new distribution channel: the Net. Specialist stores such as x-radio, Technogenesis, and CDuctive are broadcasting and selling thousands of techno, ambient dub, jungle, hip-hop, and trance recordings each week.
"The playing field is leveled for the small operator," said Paul Risenhoover, CEO of x-radio, a veteran techno Internet radio station and CD sales site. "It's now easy to manufacture and then distribute over the Internet."
"The technology revolution is fueling a cultural revolution whereby artists are creating new music, be it in a recording studio or their bedroom."
While sales of techno or electronica CDs account for less than 10 percent of overall music sales, the genre is growing. The scene is now mainstream in Europe, and in the United States, even Volkswagen is using artists such as the ORB in its car commercials.
Risenhoover said the Net is well suited for underground music distribution because it is not one mass market, but rather a collection of niche markets. The Technogenesis site features a pop-up menu that resembles a traditional radio. Users tune in to the music genres such as trip-hop, trance, and drum and bass in the same way they tune into a radio station.
When listeners find an artist they like, they can push a button to burn a custom CD. All it takes is a Web browser, some musical taste, and a credit card.
"The music we feature is cutting-edge and very difficult to find in a Virgin or Tower music store," said Bruce Krysiak, founder and CEO of the San Francisco-based Technogenesis.
Major record companies have so far shown little interest in the custom CD burning market.
"It's exciting and a little scary for the majors, if artists do everything independently," said Todd Roberts, head of artists and repertoire (A&R) for Astralwerks, an electronica label owned by Virgin Records.
"But the function of the major labels has been to market and distribute, so that hasn't changed because of the technology ... it's more a function of retail."
Roberts said that one of the downsides of online distribution is that "you may not know who your audience is." Another problem is that record companies fear handing over licensing rights because there is no real way of tracking exactly how much inventory is being sold.
"You can't exclude yourself from a new market because you're paranoid that you're going to get ripped off," said Crayson. "Even with standard CDs, once you license a piece of music you run the risk of getting stung."
Technogenesis's Krysiak believes he can solve the trust problem.
"We are looking at Web tracking and analysis software to solve that problem," he said. "We believe that we can build an extranet so that record companies could log on and track how many tracks have been sold by a particular artist."
Until such a project exists, companies such as Technogenesis need to build personal relationships with the smaller record labels and with the artists themselves. That means full-time A&R people.
D.J Solarvibe's sole method of distribution is Technogenesis. "It suits me," he said. "I don't want to get involved with distribution. I am really only interested in the music."
Sites like x-radio and Technogenesis are bringing about a change in the music industry by signing both record companies and artists, cutting costs, and raising revenue.
"The technology is changing the economy of the industry," said Risenhoover. "It used to cost tens of thousands of dollars to record, manufacture, distribute, and promote new music."
Both companies also offer artists direct distribution deals.
"What we are doing is moving the balance of power from the record company to the artist," said Krysiak. "Many of the artists are lucky if they see 10 percent of the total price of a CD."
At Technogenesis, artists get as much as 40 percent of the total price. CDs cost US$5.99 for the first track and a dollar a track after that. The total cost adds up to around $16 for a full CD, the average price for major-label CDs.
Mark Mooradian, a senior analyst with Jupiter Communications, in New York, said it's still hard for sites and artists to eke out a living for themselves.
"Its not a question of making money on the Internet at the moment, it's a question of survival," he said. "Even Amazon, CitySearch, and TicketWeb are consciously running at a loss. That is why it's so competitive."
Mooradian said the best the pioneers can do is to steer clear of the major record companies, continue to cut deals with independent record labels and artists, and carve out their own niche.
Astralwerks' Roberts agrees.
"Astralwerks has never considered ourselves a major label. It's a different type of music and market these days, and you have to think outside the box to make things work in techno," said Roberts.
"No techno artists can go it alone easily, and the [independent] labels can help."
