Indie labels and the economic model that sustains them in the streaming era is something I've been trying to understand better.

The streaming model has been catastrophic for small labels in ways that are different from how it's affected major labels. A major label can absorb the per-stream revenue because the volume is enormous. A small label releasing 200 copies of a vinyl record to a dedicated fanbase cannot make streaming economics work.

The labels that are surviving and thriving are doing it through a combination of things: vinyl (where the economics are still defensible for a dedicated fanbase), direct-to-fan subscription models, merchandise, and in some cases licensing. The labels that are failing are the ones that tried to make streaming work as a primary revenue model for small-scale releases.

The implication for the culture is significant. If small labels can only sustain the music they release through formats that require financial commitment from listeners, then the music being made by small labels is necessarily music for a listener who is willing to make that commitment.