Mca Shifts Its Urban Division In New Direction

As MCA Records finalizes its distribution deal with Rawkus Records, the former seems to be signaling a new direction for its urban music division.

"My vision for the label was to try to get ahead of the curve in terms of where we feel hip-hop music is going," says MCA president Jay Boberg. Lacking a large stable of established hip-hop acts, he explains, MCA signed the Roots, Common, and Mos Def, providing "the foundation to be a powerhouse in the progressive hip-hop movement." He adds, "MCA can become a major power in this particular area of music."

After months of speculation, the Rawkus deal may be finalized as early as Friday (5). The New York-based rap indie was distributed by Priority until the latter was merged into Capitol. Boberg says of the deal, "This is a triangle deal between News Corp., MCA, and Rawkus, with News Corp. giving up their ownership and MCA coming in. All terms have been agreed to, and the long-form contracts are in the process of being signed."

MCA's interest in Rawkus goes beyond its acts, Boberg says: "It was about the Rawkus brand. Although the acts are very attractive, they represent what they've done so far. The real attraction to Rawkus is what it will continue to do and grow into."

Rawkus' pact with MCA was a logical next step for the now-former indie, says its president and co-founder, Jarret Myer: "[Co-founder] Brian [Brater] and I have a strong relationship with Jay Boberg. He has always expressed interest in being part of Rawkus' growth. So when it came time to take the label to the next level, MCA and Jay Boberg were the logical partners."

Boberg says Rawkus will remain autonomous, retaining its own offices and A&R and marketing staffs. "They will just have additional resources, both monetary and staff-wise."

Myer says that "Rawkus will always do what it is known for: finding talent, starting up records, and developing acts and new sounds. The difference is, now we have heavyweight ammo from the promotion department." According to Myer, the first release will be the third installment in its "Soundbombing" series.

In addition to the Rawkus deal, recent MCA signings of left-of-center acts like Blackalicious, DJ Shadow, Dan the Automator, Hi Tek, the Dust Brothers, and J-Dilla (Jay Dee) show MCA's commitment to progressive hip-hop.

"The goal has always been to get our music out there," Blackalicious' Gift of Gab told Billboard recently. "MCA came along at the right time, and it felt like the right thing to do. It gives us a chance to get our music to a broader audience."

Indie retailers who have been long-time supporters of such acts as DJ Shadow are cautiously optimistic of what this means for those acts.

"When you're on an independent label, selling 100,00 or 150,000 copies of your record, it's a big deal," says Duane Harriott, sales manager for New York-based Other Music. "If you get signed to a major label and you're not selling 500,000 units or more on your debut, they may not let you build a fan base. If MCA is committed to developing artists and building a fan base, it's OK—because none of these artists have ever made money from creating hit songs; they've built their audience on word-of-mouth. It will be a good thing for people who've had a hard time finding those records," Harriott adds. "They'll probably find them [to be] more accessible now."

Major retailers concur. Trans World urban music buyer Jim Stella says, "It's a good move for MCA, especially with Rawkus, because they have established acts that will immediately benefit. Rawkus may also be able to get more attention at MCA than they did at Priority."

Boberg knows that the success of these acts will take time: "With all of these records, we can sell 250,000 to 500,000 records, and maybe more. It's about being patient and having a long campaign."