For this independent music distributor, staying relevant in a continually disrupted industry means taking a non-traditional approach to client needs and staffing.

In the late 90s and early 2000s, physical formats like CDs dominated the music industry, comprising over 99 percent of all worldwide revenue. The Big Six labels—Warner, EMI, Sony, BMG, Universal, and PolyGram—controlled nearly all music distribution rights and reaped all profits. By the mid-2000s, however, it was a different world. iPods replaced Discmans, iTunes replaced record stores, and digital services began to take hold as the new industry standard.

When Napster blew up the Big Six oligopoly in 2001, it took the bottom out of record-store revenues and opened the market for the kind of on-demand streaming we enjoy today. While the new consumer norm is to create networks on streaming platforms like Apple Music, Spotify, or YouTube, industry profits have not recovered. Despite three years of consecutive growth, music industry revenues in 2017 were just 68 percent of what they were in 1999. As a whole, the industry raked in $17 billion last year, up 8 percent from the previous year, but those figures fall short compared to the $25 billion of 1999.

This mix-and-match, playlist-based behavior reflects the free-flowing nature of today’s digital economy – complete with the struggle to profit from subscription models and subsist on paltry ad sales. So how can an independent, digital music distributor navigate such an inhospitable industry and still turn a profit?

In a world where even the definition of “record label” is up for debate, Ingrooves Music Group walks the line between distribution company and marketing agency, liaising between artists/labels and third-party retailers like Spotify or Apple Music. The company also tracks the analytics, managing rights and royalties for its clients.

During the early years of conflict between analog and digital formats, Ingrooves Music Group was founded when entrepreneur Robb McDaniels saw a business opportunity in the nascent digital music scene of 2002: Music was quickly becoming accessible to anyone with an internet connection, and new bands, DJs, and other artists needed help promoting and distributing their music across the web. As part of his mission to create the “digital record label of the future”, McDaniels sought to bridge the gap between music artists and music retailers, offering a platform for more accessible music distribution and artist representation: An artist or label sends Ingrooves a song or album, which is then converted into the proper format and pushed out to iTunes, Spotify, Amazon, and 600 other digital retailers. When someone buys or streams the music, the artist’s royalties are passed along to ­Ingrooves, which pools them and then reimburses the artist. Ingrooves profits by taking a percentage (10%–30%) of an album’s wholesale cost (A typical album ­on iTunes retails for $10 and wholesales for $7).

In the midst of this race for digital domination, people remain a key element of the music industry, and Ingrooves understands that at the end of the day, it’s not algorithms, but people, that truly matter. “That’s just the core of HR, and our job is to take care of our clients,” says David Kroes, who had been heading Ingrooves’ hiring drives for technical and creative teams since January, 2016, captaining recruiters, hiring managers, and employees through the modern music industry.

With offices in Los Angeles, New York, London, Berlin, Oslo, and Victoria, BC, Ingrooves currently generates around $150 million in annual revenue and holds a two percent market share of recorded music in the US. To stay on top of competition within the industry, Ingrooves is pressured to manage a highly successful global team. A poor hire could cost the company, and in an industry feverishly scraping away at profits, that is one mistake Ingrooves cannot afford.

Hundreds of candidates flood Kroes’ inbox on a regular basis looking to break into the music scene. Unfortunately, the reality of pacing such an uncertain industry is that many employees become obsolete and burn out much faster than in other organizations. “The music industry is a lot like surfing” says Kroes. “People keep coming back even though it’s not the most forgiving environment, but their love for the industry is what keeps people loyal.”

The Ingrooves business model is a far cry from that of the brick-and-mortar retailers like Tower Records—the last of which shuttered in December 2006, more or less the final breath of the American record industry as we knew it—but as Ingrooves emerged, its practices were already forward-thinking, earning mainstream recognition as one of the first independent distribution companies to partner with iTunes. The music industry, however, is a fickle beast. In a few short years, on-demand streaming would incite another format revolution that, to this day, shows no signs of slowing.

Figures released by IFPI’s Global Music Trends 2018 report show that streaming accounts for 38 percent of total recorded music revenue, making it the industry’s single largest profit driver for the first time ever, with 176 million users of paid streaming services contributing to a 41 percent growth over last year.

With real money to be made from this new format ($5.6 billion in 2017) companies like Spotify, Apple, Google, and Amazon all currently offer dedicated, paid streaming platforms. Additionally, video streaming services like YouTube comprise more than half of on-demand stream time, attracting 1.3 billion total users in 2017, according to the IFPI report. How does Kroes plan on keeping Ingrooves ahead of upcoming changes within the industry while supporting the workforce powering a global music distribution and marketing company?

“At Ingrooves, we went through a situation where we were a teenager for a long time,” he says. “We were a startup and we never really outgrew the startup mode. After I joined the team we really started to realize our opportunity to become an adult.”

Pushing the company into the next phase wasn’t about changing out the old guard for fresh blood, it was about building a “culture of adults” that are adaptable and able to think on their feet. “The culture at Ingrooves is still evolving, and new talent is bringing it in,” says Kroes. “You always want to bring in new perspectives and balance that with experience. To me, experience is the best teacher.”

Kroes came onboard in the midst of company-wide restructuring that required a challenging personnel shift and revamp of its company brand. With a strong grasp on the analytics and reporting side of licensing, publishing, and distribution, Ingrooves doubled down on its high-impact marketing, PR, and promotion, working closer with artists and other industry organizations, to “help them understand and anticipate their needs” before they even knew what to ask for, a paradigm that Kroes carried over into his recruiting practices. Kroes leveraged his decade-plus of experience working in TA, as well as a strong background in philosophy, to reshape the organization’s approach to hiring.

“Media companies, whether TV, movies, or music, are very much people businesses,” he notes. “A lot of talent is not cookie-cutter.” In order to hire both technical and creative roles in tandem, Kroes needed a non-traditional approach, which, he says was made possible with tools like the SmartRecruiters Talent Acquisition Suite. “A good recruiter should be looking for ways to find talent that maybe other people haven’t, and SmartRecruiters allows you to experiment with a smart approach that pushes the limits of what the tool is designed to do,” says Kroes. “It gives you more insight into the state of things.”

While predicting what’s next to come in the music industry is far from science, Kroes is confident that Ingrooves Music Group will continue to adapt as the industry embraces on-demand streaming. Issues such as diminishing profit margins will be a challenge, but Ingrooves is ready to face the challenges like the now grown-up company that it is, one which, with Kroes at the helm, can finally have its HR Head say that the company, firmly, “knows the path forward.”

10. Jef Raskin initiated the Macintosh Project in 1979 in order to make Apple II less complicated and more consumer friendly. Essentially Raskin knew that the computer of the 80s was only usable if you were a genius or pretty close. Raskin developed programs and functions that allowed the computer to switch functions automatically without the user needing to input a coded command.

9. John Sculley was famously recruited by Steve Jobs with the line, “Do you want to sell sugar water the rest of your life, or do you want to come with me and change the world?” After Sculley’s hire sales at Apple increased from $800 million to $8 billion. Sculley is recognized as one of the leading marketing professionals in the world. [Editor’s Note: This hire became controversial as Sculley later fired Steve Jobs. Maybe Steve – to learn and later return with a new frame of mind – needed to be fired?].

8. Bill Atkinson worked at Apple from 1978 to 1990 as a member of one of Apple’s first development teams. Atkinson is the creator of the MacPaint application, which was the first of its time. He also designed QuickDraw, a 2D graphics library once used in Apple and Macintosh operating systems.

7. Rob Janoff is the graphic designer responsible for the globally recognized Apple logo. In 1977 Janoff was contracted by Apple to create the logo. A bite was drawn in the design so the apple would not be confused for a cherry. The logo went from rainbow, to monochromatic. No matter the color, the apple is an unmistakable trademark for a brand we all know.

6. Katie Cotton is Apple’s VP of communication. While some may think that the product speaks for itself, Apple does not gain attention out of thin air. Cotton manages Apple’s public image, media relations, publicity, and the list goes on. Cotton does PR on steroids for one of the most powerful companies in the world, making her one of the mot powerful women in tech.

5. Scott Forstall is largely responsible for the current Apple operating system. Basically, Apple products as we know them. Everything we see and interact with on Apple is connected to Forstall’s vision for user interface. After a 20 year career at Apple Forstall left a stamp on the product.

4. Chris Espinosa joined Apple at the age of 14 in 1976, and continues to work there today. Espinosa wrote the first published technical manual for Apple II while attending University of California, Berkley as an undergraduate. Espinoza assisted in writing Apple’s first business plan. With over 35 years of employment with Apple, Espinosa has worked on Mac OS, A/UX, HyperCard, Taligent, Kaleida Labs, AppleScript, and Mac OS X. Talk about loyalty and retention.

3. Ron Johnson was the Senior Vice President of Retail for Apple from 2000-2011. Johnson was the brain behind the Apple Store and Genius Bar, giving consumers easy access to Apple products. Johnson’s stores exceeded a billion dollars in annual sales, and in 2011 ranked first among US Retailers averaging $3,085 in sales per square feet.

2. Susan Kare is described as, “the icon of icons.” Kare was the screen graphics and digital font designer at Apple in the 1980s and designed all of Apple’s original icons. Kare’s designs aligned with Wozniak’s and Jobs’ vision of simplicity and purpose. Even as Apple evolves Kare’s designs remain the backbone of their icons.

1. Jonathan Ive is the head of Apple’s design team. Ive has helped create the iMac, iPod, iPhone and the iPad along with a cariety of other Apple products. I bet you have one of these items yourself. Ive’s innovations have entered the homes of hundreds of millions of people, and will continue to do so.

Apple products are recognizable worldwide. With a company as wildly successful and innovative as this you have to know it was not an easy path getting there. Steve Jobs’ notorious work style and Steve Wozniak’s famous innovations created a team that would propel their visions into the future. It goes without saying, if you’re chosen as an Apple employee you are the crème of the crop.

Did I mention we have our own Apple genius at SmartRecruiters? Meet Jason Hegyessy, the lead graphic designer.

A company can be as great as its leader. Apple ended last quarter with 82% revenue increase, a 125% profit increase, and more money than the United States Government. The bottom-line is only a fraction of the story. Innovation, user-friendliness, good shit: these terms are synonymous with Apple products. The Steve Jobs user experience changed culture, making sure that everyone is an “i” and that everyone comes first. Now, Jobs has resigned as CEO. And tomorrow, the army Jobs equipped with white ear buds and fingers on flat screens will continue to grow. “Stay Hungry. Stay Foolish.”

Jobs always knew that the end was near. Remember, every deal has a timetable. Act now. “Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important.” What is truly important in economics is not price. It is product. It is our work that matters.

“Being the richest man in the cemetery doesn’t matter to me… Going to bed at night saying we’ve done something wonderful… that’s what matters to me.”

When recruiting, the candidate must align with the product, the vision, and the company. The salary, the benefits, the perks – those are only icing to the top professionals. The best talent has the confidence to know that the compensation will be sufficient. Truly, compensation is always a secondary selling point.

“Apple’s goal isn’t to make money. Our goal is to design and develop and bring to market good products… We trust as a consequence of that, people will like them, and as another consequence, we’ll make some money. But we’re really clear about what our goals are.”

Jobs made the most profitable company in the world by making the best products in the world. The next best product can always be made. When the best job opportunity arises, those with that mindset will act. When recruiting the top talent, ask yourself, is this the best job opportunity this person has? If you believe – really believe – the answer is yes, that person will end up working with you. When the company and the candidate have the same goals – perfection – the right hire will be made. “Stay Hungry. Stay Foolish.” Build good shit together.

To those who suggest,  “In a typical startup, a manager may not always have the time to spend recruiting other people,” Steve Jobs says:

“I disagree totally. I think it’s the most important job. Assume you’re by yourself in a startup and you want a partner. You’d take a lot of time finding the partner, right? He would be half of your company. Why should you take any less time finding a third of your company or a fourth of your company or a fifth of your company? When you’re in a startup, the first ten people will determine whether the company succeeds or not. Each is 10 percent of the company. So why wouldn’t you take as much time as necessary to find all the A players? If three were not so great, why would you want a company where 30 percent of your people are not so great?”

What I am saying is company culture. It comes from the leader. The legacy of Steve Jobs will continue to lead Apple. The top innovators will continue to want to work for Apple because of what Jobs accomplished. The brand of Apple will never be exclusive from the brand of Steve Jobs. Educate your employees on your vision. Apple plans to leverage the brand of Jobs for eternity. Apple founded Apple University “to teach Apple employees how to think like Steve Jobs and make decisions he would make.”

“I mean, some people say, ‘Oh, God, if [Steve Jobs] got run over by a bus, Apple would be in trouble.’ And, you know, I think it wouldn’t be a party, but there are really capable people at Apple.”

Surrounding a great leader with the best talent is the best a company can do. If Steve Jobs believes a person is capable, do you?

To the Apple Board of Directors and the Apple Community:

I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.

I hereby resign as CEO of Apple.

I’m deeply saddened by this news. Not because I have any fear for the future of Apple. But because I believe Steve Jobs would not have resigned as CEO unless his health forced him to do so. I wish Jobs the best of luck in his health, family life, and future endeavors. “Your time is limited, so don’t waste it living someone else’s life.” Your work, like your life, is limited. Surround yourself with talent to fulfill your vision. Build good shit. Like Steve Jobs did.

Photo Credit RackCDN Video Credit Stanford Commencement Speech

UPDATE: Steve Jobs (February 24, 1955 – October 5, 2011)

Video Credit David Smooke