The Industry According To…Scott Borchetta, Big Machine Label Groups

Thank you for checking out ‘The Industry According To’. This series runs each Tuesday, and features radio and record industry executives, managers, programmers, talent, artists, and professionals from all areas of the business world. To be considered as a future guest, email me at keithblackboxgroup@gmail.com.

Today we hear from one of the music industry’s most relentless forces, Scott Borchetta, founder and Chair of Big Machine Label Groups and the Big Machine family of companies. While most know the Taylor Swift story, that’s only one chapter in a book that keeps adding great stories.

Scott is an entrepreneur, does things his own way, which is why he’s earned a rebellious reputation. Borchetta is always up to something you might not predict — like being a race car driver and owner of the NASCAR Big Machine Racing Team, or owner of Big Machine Distillery, which has a large live events and spirits footprint in Nashville.

Scott’s perspective on the music industry comes from love and is wide reaching — from being a rebel and lifelong fan to now sitting at mogul status. So, let’s dive in.

From 0 to 60

Keith: You built Big Machine from scratch into a powerhouse, then sold it, then kept building. If you had a business card, it would include several imprints, racing, distilleries and spirit brands. Looking back, what has mattered most in going from zero to now?

Scott: It was raw determination that ‘we could do it’. That means I always thought ‘why couldn’t we do anything we wanted to do?’ I’m definitely a serial entrepreneur. We’ve always found ways to do the things we’ve dreamed up.

Artist Development vs. Instant Success

Keith: Some believe that while artist development is still important, many are seeking the fastest path from A to B and chasing algorithms first, and hoping career longevity somehow follows. When you find a young band or artist you want to work with, what do you see first? What most drives your intention — short-term or long-term?

Scott: The first thing is still gut. But that’s not enough anymore. There must be some indicator that people are running towards an artist. That can be socials, streaming, live, something. It’s harder than ever to take something from Zero to Hero. And that’s where the development starts. But you’ve got to have a spark. If you’re worried about the fastest path to a dollar as your #1 rule, you just made it that much tougher on yourself.

When Artists Became Brands

Keith: Bands used to just be…bands. You were early to notice that storytelling, fan engagement, connection, and filling in the gaps around an artist’s life could extend far beyond music and catapult bands into being brands. What are many labels misunderstanding about how artists can become brands instead of just hits?

Scott: I would invite you to think of band and artist branding as the result of bringing value by storytelling through socials. More and more in the social sphere of music, we’re creating social influencers that can build a consistent and interesting fan conversation that then turns the artist’s social fan into a music fan, a streamer, and buys a ticket to the show. Our digital and social teams work non-stop to build these sites out, tell the stories and build value. There’s no set way that guarantees social activity will turn into streaming, but brand-building and socials are measurable when it comes to value building and then when the right moments hits, they become streamers. Yungblud is a great example. He can sell out arenas but his streaming hasn’t yet caught up to his pure power as a storyteller and ticket seller.

The CEO of Rock

Keith: You’re a Southern California rock kid at heart. You signed Cheap Trick because they were looking for a new label and you grew up being a fan. The Big Machine projects with Motley Crue, Sammy Hagar, L.A. Rats and others were passion projects because you love the genre. If a new global role emerged and you were named the CEO of Rock Music, what are you telling labels, artists and radio to do right now?

Scott: Come together right now! I think that Rock has suffered greatly over the last 30 years because there hasn’t been a real rock scene since Seattle in the ‘90’s. Before that it was LA & London with sprinklings from NY, Chicago, etc.  There are a few bands having a moment right now. Ironically, most of them are ‘90’s holdovers getting back together or bands that have been together for at least 10 years. 

I think we all have a lot of hope that Yungblud is the beginning of something and not just a moment but a true Rock Movement. But one artist can’t do it by themselves, or it becomes a novelty. The next true Rock Scene is online and my dictate to every label would be to build that online superhighway and build robust communities and then provide massive tour support to get these artists on the road and keep them there.

Country’s Secret

Keith: Country arguably has the strongest artist-fan connection in music. What does the genre understand about fan loyalty, storytelling and cultivating a passionate audience that others still get wrong or choose to ignore?

Scott: Consistency. Country Artists come to see you every year. They always have new music coming out. They have Nashville – a true music center where young musicians can come and get work. And most of the artists live there. Southern Culture is not hard to explain. Our artists actually do hunt and fish and four-wheel… it’s a real lifestyle.

Radio’s Role

Keith: You’re a big fan of radio — you’re old school and will still stream a station if you know one of your artists is going to debut on the radio. But in general, over the past decade or two, how has radio’s role changed in the greater music ecosystem? How important is radio today for a label that’s releasing new music?

Scott: It’s still very important but you must understand the ‘why’ and what the expected ROI is going to be. Radio still sells concert tickets. Most of our country artists are songwriters and they make a lot of money from radio. Publishing is a huge business in Nashville, so radio has huge support from the publishing community. Country radio is an older demographic. We know that. We also know the older demographic has money to spend on concerts and lifestyle.

Taking Risks

Keith: You’re labeled a risk taker and enjoy challenging the status quo. How do you decide which risks are worth taking versus those that are better to walk away from? Is it the music, passion, potential ROI, what really drives the decision?

Scott: For me, it must start with the music. Then it’s do they have the ‘it factor’ and is anyone running towards it. That next great artist isn’t right in front of us. It’s building, growing, smoldering on the edge. Once you find it, the risk is in when to pull the trigger. If you pull it too fast, say over one TikTok moment, that’s a big bet on one moment. Far too many of those have missed industry wide.

If you know it needs more development and isn’t completely realized, but you see a spark, do you risk trying to get the artist in the boat early before it’s realized or sit and watch it and risk losing it to someone else? I’ve done both. We’ve taken chances early that worked and didn’t work. I’ve lost out by waiting with the artist going to the highest bidder and a financial deal that made no sense. That’s when I walk away.

Quarterly Pressure

Keith: There was a time when artists didn’t worry about quarterly pressure. They were focused on their nine-month tour and the next record. Now they’re spooked that their label will miss its quarter or their “single” might land five spots below goal. That pressure is getting in the way of their art and pushing many artists away from labels altogether. How is it different at Big Machine?

Scott: It’s called the ‘Music Business’. Music comes first and the business follows. I’ve never forced out a single or an album to try to hit a corporate number. I could point to many moments where a label forced out a new project for the 4th Quarter and literally ruined careers. One of my favorite Bono quotes – “Great waits until very good gets tired.”

The Truth About Talent

Keith: How much of success today is talent, and how much is timing, leverage and the machine? Has that ratio shifted dramatically in the last decade?

Scott: While those traits may be dressed in different clothes today, it’s still the same. You can’t keep a determined great artist down and no two artists ride the same superhighway to success. Some get there from a crazy TikTok post (only with plenty to back it up) and some grind for 10 years, which is much more the norm, still.

The Real Perspective

Keith: A lot of readers probably don’t know this, but you came close to checking out. The world almost lost you nearly three years ago (March 26, 2023). You were racing in a TransAM Series race when your brakes failed at more than 150mph. Your car slammed into a wall at approximately 109 mph and you had to be extracted from your car before being taken to the hospital. How has that accident changed your life and how you see things whether that’s with work, play, key decisions, etc.?

Scott: I truly thought it was ‘game over’. I almost died in the ambulance as I was bleeding out. When I awoke in the hospital with tubes coming out of me all over the place and both legs stabilized with steel braces, I thought, “well… fuck… I survived and I guess that means that there’s more for me to do!” From that moment on I haven’t wasted a day with recovery, physical therapy, etc.. If you didn’t know I was in a wreck, that NASCAR ruled “unsurvivable”, you would never know. I’ve somehow completely recovered. Every day is a blessing and as crazy as our world is at the moment, I’m a living example of hope and determination. My desire to live, love, and compete, has never been stronger.

The Uncomfortable Truth

Keith: What’s the hardest truth about the modern music business that artists, managers, or even labels don’t want to admit but need to hear?

Scott: That it’s harder than ever! The A.I. threat is beyond real. The path to a dollar has never been longer and the divide between the haves and have-nots is only getting wider. Playing fields have flattened. The need to ‘be remarkable’ has never been greater. Major labels can afford to throw stupid money at things that don’t make any sense and when that happens and it doesn’t work, everyone loses. The artist gets one check – their advance. Then the label realizes after a couple of years and millions of dollars that it’s not gonna work and drop or ignore the artist.

The ‘Reality Reset’ in these deals cannot come soon enough. So many artists got stupid deals during covid, and many haven’t been heard from since. IT’S A LONG WAY TO THE TOP IF YOU WANNA ROCK’N ROLL. Do the work, be patient, and keep doing the work. Did I mention keep doing the work? 

The One Story

Keith: You have no shortage of great stories. What’s the best story you like to tell?  Success, nightmare, pure madness or hilarity?

Scott: One of my favorite stories is when I was the mentor on American Idol in 2016. I came into contact with the Program Director from one of my favorite Rock stations growing up, Keith Cunningham at KLOS. After a few conversations and a couple of meetings, he invited me to be a guest on Jonesy’s Jukebox. I was blown away.

Always a huge fan of Steve and the Sex Pistols, I was a bit nervous going in because I was walking into a king’s lair of anti-establishment and here I am, on the most mainstream show in America. We met pre-show and talked a little bit and the first time he cracked the mic and said, “My guest today is Scott Borchetta” I couldn’t believe it. We talked about the LA punk scene and how big of an influence he and the Pistols were on me and our scene. We played a couple of records and after the first break he turns to me and says, “you get to pick the songs for the rest of the hour.” He saw that my aim was true, and I knew my stuff about the OG LA Punk Rock movement.

I had just the best time and spoke to Steve several times after. YOU CAN’T STOP PUNK ROCK! THANK YOU, KEITH!

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