Interview: music’s new frontier, how Ostereo empowers artists in streaming era
The music industry has undergone a seismic shift in recent years, with the rise of streaming platforms upending traditional business models.
In the heart of Manchester, one independent record label is navigating these changes and creating new opportunities for its artists. Ostereo, recently acquired by LA-based Create Music Group, is contributing in its own way.
The Manchester music publisher and record label was sold by its founder to Create Music Group, a Los Angeles-based group, which in July 2024 secured a $165million minority investment round led by private equity firm Flexpoint Ford.
Founded in 2016 by Blackpool-born Howard Murphy, Ostereo uses data analytics to identify and develop artists from various territories around the world, including Europe, UK, Korea, India, Indonesia and the Philippines.
As part of the sale to Create, Murphy exited the business while longtime partners Nick Kirkby and Ramin Bostan opted to stay and oversee day-to-day operations at Ostereo, which will trade as part of acquisitive and ambitious Create, which is valued at $1billion.
In a candid conversation, Ostereo’s chief operating officer Bostan and financial director Kirkby shed light on the inner workings of their label and the strategies they employ to support their diverse roster of talent.
“We’re not tied to a specific genre,” Kirkby explains. “As long as the music has commercial appeal and is of high quality, we’re interested in working with it.” This open-minded approach has allowed Ostereo to cultivate a dynamic stable of artists, ranging from dance-pop to indie rock.
At the heart of Ostereo’s model is a deep understanding of the modern music landscape, where streaming has become the dominant revenue stream. “Most of our focus is on digital platforms like Spotify and Apple Music,” says Bostan. “But we’ve also recognized the power of short-form video platforms like TikTok and Instagram.”
This digital-first mindset has paid dividends, with Ostereo’s artists finding success on these emerging channels. “If a song breaks on one of those platforms, it can lead to all the traditional industry support – radio play, press coverage, and live opportunities,” Bostan explains.
Joel Corry, pic supplied by Ostereo
Ostereo’s artists include Shania Yan, arguably one of Indonesia’s most exciting musical exports, Lionel Ferro One of Argentina’s best loved singers as well as UK artists like Joel Corry, who they broke before he went on to have a string of hits including ‘Sorry’, ‘Lonely’ and No.1 chart-topper ‘Head & Heart’.
The label’s savvy approach to just how people consume music is what sets it apart. “We distribute our music through various distributors who then pay us on a monthly or quarterly basis,” Kirkby notes. “And we make sure to pay our artists monthly as well, which is a rarity in this industry.”
The recent acquisition by Create Music Group, a major player in the LA music scene, has further bolstered Ostereo’s capabilities. “Having that kind of backing and access to resources is a game-changer,” Bostan enthuses. “We can now offer our artists even more opportunities, from state-of-the-art recording studios to high-profile collaborations.”
This recommitment by Create to fair compensation has helped Ostereo attract and retain top talent. “Artists appreciate the stability and predictability of a monthly pay check,” Kirkby says. “It allows them to focus on their craft without worrying about the financial ups and downs.”
This influx of resources has also allowed Ostereo to expand its reach beyond the UK, tapping into lucrative international markets.
“China, India, and Indonesia are massive territories for us,” Bostan reveals. “We’ve been able to strike direct deals with leading platforms in those regions, unlocking new revenue streams.”
While the label’s focus remains firmly on digital, Ostereo hasn’t abandoned the physical realm entirely. “We still do some vinyl and merch sales, especially for our more established artists,” Kirkby explains. “But we’re realistic about the challenges of the physical market and focus our efforts where we know we can make the biggest impact.”
This approach extends to the label’s involvement in live performances. “We’ll help our artists with booking, promotion, and logistics, but only if the data shows there’s a strong demand for live shows,” Bostan says. “We don’t want to set them up for failure by sending them out on the road without a solid fan base.”
Ostereo’s Manchester roots have also played a role in shaping the label’s identity. “There’s a unique cultural heritage here that we’re proud to be a part of,” Kirkby notes. “And being outside of London gives us a bit of a point of difference in an industry that’s still heavily concentrated in the capital.”
As the music industry continues to evolve, Ostereo is poised to capitalize on the opportunities presented by the digital landscape. With the backing of Create Music Group and a steadfast commitment to artist development, the label is carving out a distinctive niche for itself.
By embracing the power of streaming, short-form video, and strategic international expansion, the label is rewriting the rules of success in the modern music business.
“We’re not just here to make money,” Bostan asserts. “Our goal is to empower our artists and help them achieve their creative and commercial aspirations. That’s what drives us every day.”
