The Daily Swarm

One example of a record company that has adapted an agency-style model is independent Australian label Modular Recordings. Aside from its recording business, the label runs its own merchandising and touring divisions, and a brand consultancy called Modular Ideas, which operates as a youth marketing agency for brands such as Puma, Nike, Becks, BMW, Lee Jeans, Wrangler Jeans, Virgin Mobile, Sony Ericsson and Heineken.

Earlier this year, BMW approached the label to license The Presets’ electro banger hit, “Are You the One?” for TV and online ads launching its 1 Series in Australia. Rather than take the money and run, the label convinced BMW to commission an original remix of the track by French producer Lifelike in line with the band’s current sound, that would launch via the campaign.

“One of our concerns with BMW was it was all happening just before The Presets released their sophomore album,” says Axel Moline, creative director at Modular Ideas. “Even though ‘Are You the One?’ is the most obvious, no-brainer synch deal to do for BMW 1 Series, we wanted to do it in a way that wouldn’t negatively affect the album.”

BMW liked the idea and positioned itself as the launch pad for the original song, while Modular got a free marketing tool and new song for its catalogue, from which it can collect royalties. The Presets and their fans got a track that sonically bridged a gap between their first and second albums, and music bloggers got a free track to distribute.