A vast network of independent (indie) labels, distributors, stores, publications, and Internet sites devoted to music outside of the major label system has existed since the early days of rock and roll. Although not as lucrative as the major label music industry, the indie industry nonetheless continues to thrive, providing music fans access to all styles of music, including some of the world’s most respected artists.

Independent labels have become even more viable by using the Internet as a low-cost distribution and promotional outlet for CD and merchandise sales, as well as for fan discussion groups, regular e-mail updates of tour schedules, promotion of new releases, and music downloads. Consequently, bands that in previous years would have signed to a major label have found another path to success in the independent music industry, with labels like Merge Records (Arcade Fire, She & Him), Matador (Yo La Tengo, Sonic Youth, Pavement), 4AD (The National, Bon Iver), and Epitaph (Bad Religion, Alkaline Trio, Frank Turner). Unlike an artist on a major label needing to sell 500,000 copies or more in order to recoup expenses and make a profit, indie artists “can turn a profit after selling roughly 25,000 copies of an album.”²⁵ Some musical artists also self-publish CDs and sell them at concerts or use popular online services like CD Baby, the largest online distributer of independent music, where artists can earn $6 to $12 per CD. One of the challenges of being an independent, unsigned artist is figuring out how to sell one’s music on iTunes, Amazon, and other digital music services. TuneCore, founded in 2006, is one of many companies that have emerged to fulfill that service. For $50, the company will distribute recordings to online music services, and then collect royalties for the artist (charging an additional 10 percent for recovered royalty fees).

In addition to signing with indies, unsigned artists and bands now build online communities around their personal Web sites—a key self-promotional tool—listing shows, news, tours, photos, and downloadable songs. Social networking sites are another place for fans and music artists to connect. MySpace was one of the first dominant sites, but Facebook eventually eclipsed it as the go-to site for music lovers. In addition, social music media sites like the Hype Machine, SoundCloud, and iLike; music streaming sites like blip.fm, Rhapsody, Grooveshark, and 8tracks; Internet radio stations like Pandora and Slacker; and video sites like YouTube and Vevo are becoming increasingly popular places for fans to sample and discover new music. The “Free Single of the Week” at iTunes gives an artist a huge promotional platform each week. One such artist was Adam Young, who records under the name Owl City. In 2009, Apple posted his single “Fireflies” as one of its free weekly tunes. Within a month, it was picked up by alternative radio, and by the end of the year it was the top radio song in the country. A year after Young had been making his music alone in his parent’s basement in Minnesota, Owl City’s album had sold 700,000 copies and 3 million song downloads. “If I weren’t doing this, I’d be working in a warehouse,” Young said. “So I’m pretty happy with everything that’s happened so far.”²⁶