Casino Owned Record Labels
Influence of Casino Owned Record Labels
For sure, if the gambling industry decided to get into the record deals industry, it would enjoy immense success. Though some people may support such a move, not all participants in the music industry would be comfortable with it. Others worry that given the tremendous financial capabilities of casinos currently, existing record labels would face stiff competition that they would be unable to continue operating for much longer.
One of the reasons for such worry is that the workings of record deals have changed throughout the years. Decades ago, record labels worked on the premise that they would receive revenues from their operations through the sales of music. In the present day, however, record labels use music as a marketing technique and thus source their profits get sourced elsewhere. One thing remains though, and that is, to make money, record deals must sell the music in their possession. Selling music is much more laborious nowadays thanks to the introduction of the internet. People can download music illegally, and this has led to a reduction in revenues.
The gambling industry is already one of the leading forces in the entertainment industry as well as marketing. It is therefore quite evident that their entry into record deals would be a total game changer for all involved.
Why casinos wish to join the music industry
Casinos are already doing so well in the entertainment industry, and as such, one would wonder why they would want to venture into music.
Hard times
Though casinos all over the world are making huge profits, the year 2017 has not been easy for them financially. In fact, as we progress into the coming years, it is projected that casinos will be facing some hard financial times. Casinos in the United States are expected to suffer this economic fall more than those in other continents.
This change in financial status is evident. For example, Las Vegas, a location known for its lure of all sorts of gamblers, is known to receive millions of visitors a year. Though this number is always changing, the shift that occurred last year leading to much fewer visitors to the casinos is worrying. This dwindling of clientele has been on a steady rise for some years now.
The best way to stay afloat when times get hard is to diversify your sources of income and as such, casino owners are on the market for lucrative business deals. And what better way to make some bucks than to venture into the music industry?
How the casinos are breaking through in the music industry
Residencies
Currently, there are Las Vegas casinos which offer residencies to top musicians in the industry such as Mariah Carey. This step is a way of attracting visitors to the casino as people like being associated with celebrities.
Record partnerships
Some casinos have already ventured into the industry and partnered with musicians by offering them a place on their labels. In the year 2012, Ultra music, an indie label based in New York, got into a partnership with Wynn. The result of their collaboration was UltraWynn, and the goal was to produce some EDM albums. This business has taken off successfully, and they have gone ahead to release songs by different artists such as Lil John, Calvin Harris, and Avicii.
These songs get played in nightclubs as well as casinos that belong to by Wynn which is an excellent way of marketing.
Hard Rock Records is another start-up that came into existence in 2012. It currently has six musicians to its name. This label was formed to focus on artists, and it is a not-for-profit organization. During its formation, one of the heads said that they were out to help artists get signed by record labels and that there was no catch to the terms.
This kind of technique is what will help casinos flourish as they have a more diversified way of operating when compared to the traditional means of record labels. With their focus on entertainment and marketing as well as other critical areas in the operation of casinos, they will not have to spend much time on the selling aspects of the service. They will also get to generate a lot of profits in the process.