Natalie Merchant, No Strings Attached
By Jon Pareles for the NY Times.

When her Elektra contract expired in August 2002, she chose not to renew it or to seek a deal with another major label. “I would make a big-budget pop album, followed by a year of touring and promotion and then some downtime for recovery,” she said. “I don’t even know if I was writing music that was appropriate for that mold.” Instead she will release her next album, a collection of traditional songs called “The House Carpenter’s Daughter,” on her own label, Myth America Records. It is to be released June 1 through Ms. Merchant’s Web site, nataliemerchant .com, and July 1 in stores.
Recorded on a modest budget, marketed primarily to existing fans and not relying on radio exposure, “The House Carpenter’s Daughter” breaks free of the commercial pressures that have turned major-label releases into risky gambles that can cost a million dollars in promotion alone. In contrast, Ms. Merchant’s transition suggests the model of a sustainable career for a musician who is no longer eager to chase hits.

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Natalie Merchant, No Strings Attached
By JON PARELES
Natalie Merchant has stepped off the pop treadmill. After 17 years with Elektra Records, first as the main songwriter and singer of 10,000 Maniacs and then with million-selling solo albums of her reflective folk-rock, Ms. Merchant decided to go it alone.
When her Elektra contract expired in August 2002, she chose not to renew it or to seek a deal with another major label. “I would make a big-budget pop album, followed by a year of touring and promotion and then some downtime for recovery,” she said. “I don’t even know if I was writing music that was appropriate for that mold.” Instead she will release her next album, a collection of traditional songs called “The House Carpenter’s Daughter,” on her own label, Myth America Records. It is to be released June 1 through Ms. Merchant’s Web site, nataliemerchant .com, and July 1 in stores.
Recorded on a modest budget, marketed primarily to existing fans and not relying on radio exposure, “The House Carpenter’s Daughter” breaks free of the commercial pressures that have turned major-label releases into risky gambles that can cost a million dollars in promotion alone. In contrast, Ms. Merchant’s transition suggests the model of a sustainable career for a musician who is no longer eager to chase hits.
“The business is going one way, and Natalie’s going another,” said her manager, Gary Smith, also the general manager of Myth America.
Ms. Merchant has little to lose. “I’m in a privileged position,” she said by telephone from Hawaii, where she lives part of the year; she also has a home in upstate New York. “I’m beyond financially independent. I had a lot of success, and I gathered together a very large audience. And I was in a rare position, because my material was unorthodox as the pop-hit mold went, but I was able to sell multiplatinum albums and have relatively large hits.”
When a musician is signed to a label, the company pays for recording and promotion, then recoups expenses from the musician’s royalties while retaining ownership of the finished recordings. (Elektra still owns Ms. Merchant’s catalog; Rhino Records, distributed by the AOL Time Warner conglomerate that includes Elektra, is releasing a 10,000 Maniacs retrospective this summer.) A label also uses its expertise and clout to market and distribute an album.
Ms. Merchant paid for recording and packaging “The House Carpenter’s Daughter,” including the $3.50 manufacturing cost of an elaborate box for the first 30,000 copies. (The CD will sell for $16.95.) The special package “was printed in America for three times the price in Hong Kong,” Ms. Merchant said.
“It’s just not in keeping with American business practice right now,” she added.
Even so, “The House Carpenter’s Daughter” needs to sell only 50,000 copies to break even, less than 15 percent of what “Motherland,” her last album for Elektra, sold.
“We’re not trying to recoup some enormous debt,” Mr. Smith said. “The economics of making this record are very prudent. When we sell 200,000 copies, we’ll be standing on our chairs, hollering. If we released this record with these kinds of goals on a major label, we would look like a failure. At Elektra, if you just sell 1.5 million, everyone goes around with their heads down.”
Ms. Merchant is not the first well-known musician to become independent. Prince, after battling Warner Records over his desire to release more music in a year than the label thought it could market, started his own company, NPG, and has since released double- and triple-CD sets at whim. Todd Rundgren markets his music directly to subscribers to his Web site, patronet.com.
“For those already through the door, doing it on your own is incredibly viable,” said Jay Rosenthal, a music-business lawyer who represents the Recording Artists’ Coalition. “It’s going to be very attractive, and it’s going to be a viable alternative even for bands who are doing well. The only reason to go to the major labels is to get your songs on the radio, to go for the promo money. If you don’t need to get on the radio, and you’ve got a name, go out there and go for yourself. If there’s any moment that artists should do it, it’s now, before things get worse.”
He added that some musicians would have no choice, as he expected major labels to cut their rosters by 30 to 50 percent in the next year…