Former Major-label Execs Take Note Of French Indie Scene

PARIS‹The shape of the French indie sector is being transformed through the increasing involvement of former major-label executives.
Almost at the time former Virgin France chairman Patrick Zelnik's company Na™ve confirmed the acquisition of Auvidis (BillboardBulletin, July 8), former Sony Music France chief executive Henri de Bodinat announced the acquisition through his company Musisoft of "a substantial" share of indie distributor Media 7.
Both executives are eager to increase the indies' market share in France. "In most countries, indies account for 20% to 25% of the total market," says de Bodinat, "but in France, this is not the case. Indie labels are usually creative units that end up being sold to major companies. My goal is to acquire independent companies, consolidate them, and integrate them into a broader structure."
Zelnik notes that although Na™ve has a different aim than Musisoft, "it is good to see indies moving forward, each with its own strategy. In France, indies should represent at least 25% of the market."
De Bodinat says he will use Media 7's distribution arm and its 28-strong sales force as the pillar for his expansion, feeding it with catalogs such as the one from indie world music label Sonodisc, which he recently acquired. Musisoft also recently bought two techno labels: PLS in the Netherlands and the U.K.-based Newhurst.
"We picked two niches where we believe indies can make a difference‹world music and techno," explains de Bodinat. Techno music will be released under the Distance imprint; world music will be released on Sonodisc. A third label will be created for repertoire that doesn't fall into one of those two genres.
Musisoft is a partnership between de Bodinat and music industry veteran Jean Karakos, founder in the 1980s of Celluloid in the U.S.
"Because of his experience, Karakos is more involved in the creative aspects of the company, while I'm more in charge of the overall management," says de Bodinat, who adds he has turned down offers to join major companies to pursue his project. Two financial partners, ABN Amro Investissement and Suez Industries, provide the financing and own 30% of Musisoft.
So far, de Bodinat says, he has spent some 40 million francs ($8 million) on his various acquisitions. He says he expects his combined operations to gross more than 200 million francs ($40 million) for the fiscal year 1998-1999.
De Bodinat says his current priority is to consolidate his assets before expanding. In the near future, however, he expects to build a European group of indie companies and plans acquisitions in Germany and in the U.K.
"My ambition," he says, "is to build a strong group of independent companies in Europe that will gross over a billion francs in four years from now."

Assistance in preparing this story was provided by Emmanuel Legrand, editor in chief of Music & Media.