(* Source: Paul Resnikoff *)

As the influence of major labels continues to recede, a number of ambitious power-players are filling the void.  Early predictions called for the rise of the ultra-powerful management agency, though unexpected retailers like Starbucks, performance heavyweights like Live Nation, and even big-boxers like Wal-Mart are now commanding the most attention.

But when it comes to commanding the most hours of undivided consumer attention, the gaming industry is frequently unparalleled.  The hyper-distracted consumer of today is mostly a multi-tasking, surface-oriented animal, but games often defeat those tendencies.

And that spells a solid promotional platform for up-and-coming bands, especially those wishing to target a younger demographic with larger amounts of free time.  "It's just a new way of going to where kids are, versus where they're not - like radio," said Steve Schnur, worldwide executive of Music and Marketing at Electronic Arts (EA), during a recent discussion at South by Southwest (SXSW) in Austin, TX.

Instead of tapping established artists, Schnur is pursuing a more cutting-edge approach.  "I want someone to hear a song in a game that they'll hear on the radio two years from now," Schnur said.  "We want to be ahead of the curve."  And that means starting careers in a serious way, by starting with gamers who are seriously listening - over and over again.  "For the past seven years, we feel we've been pretty instrumental in helping to break and expose new artists," Schnur continued.

So why simply hand those success stories to others?  That is undoubtedly a question Schnur started asking himself.  And in March of last year, EA formed a collaborative venture with Nettwerk Music Group called Artwerk, one that started signing, distributing, and promoting artists on its own. 

That sounds like a direct competitor to major labels, though Schnur carefully characterized Artwerk as a next-generation publisher.  "Artwerk is not a record label, it's an aggressive, proactive music publisher that delivers master recordings, film and TV synch deals, advertising placements and distribution - it goes way beyond games," Schnur explained.  "We feel that record sales don't matter anymore, from a publisher's point of view - cross-platform global song placement does."

So what kinds of artists is Schnur talking about?  The first signing was Junkie XL, and others include Datarock, Airbourne, and Chromeo.  Some of those groups were discovered at SXSW, according to Schnur, a result that bucks criticism of the event as an overpopulated, hopeless endeavor for artists.

As a self-defined publisher, EA frequently partners with labels, and Schnur still pays for the use of songs and recordings.  "We pay for other people's IP," Schnur assured, though he was less confident that other gaming companies are doing the same.  Still, the total licensing amounts involved are mostly modest. "You won't make your yearly nut from a gaming license," Schnur advised.