Modular's $5.9 million loss

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No doubt one of the most revered indie labels on the scene, you’d be forgiven for thinking the Modular team were rolling in mountains of cash with bands like Wolfmother, The Presets, Cut Copy and Muscles on their bulging roster. News reports to the contrary have surfaced, however, revealing that by the end of last year the label had accumulated losses of $5.9 million.

It was reported in the Daily Telegraph that Modular lost $1.8 million in 2007 and $2.6 million in 2006, although when speaking on their current financial position label head Steve Pavlovic remained optimistic, explaining they’ve invested significantly in their talent and expect it to pay off this year. “You’ll see it start to rise now as the records we’ve got out start to sell,” Pavlovic told The Daily Telegraph.

So far in 2008 Modular have released two of the year’s most anticipated, and in turn critically acclaimed, albums; ‘Apocalypso’ by The Presets and Cut Copy’s ‘In Ghost Colours’. Both secured #1 positions on the ARIA charts in their first week on-sale and are said to be doing well internationally. Modular’s biggest success to date, however, has been Wolfmother. Their debut album, released in 2005, has gone five-times platinum, selling in excess of 350,000 copies.

You’d imagine this would paint a bleak picture for independent music labels the world over. If a player like Modular – home to some of FL’s favourite acts and with an established reputation for having their finger on the pulse of emerging musical trends – still isn’t able to stay in the black. Irrespective of their financial situation, however, if you’re a fan of the label it’s not all doom and gloom as their future is undoubtedly bright with a number of anticipated projects coming up. In August Van She finally release their long awaited debut album and Ladyhawke is hotly tipped, having gained a global reputation with two singles already in the can.

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