Manchester in the late 1970s and 1980s was an incubator for some of the most influential
music and cultural movements of the era. At the heart of this was Factory Records, a record
label founded in 1978 by Tony Wilson, Alan Erasmus, and later joined by figures like Rob
Gretton and Peter Saville. Unlike traditional record labels that focused on maximizing
revenue, Factory Records operated with an artist-first philosophy. Contracts were famously
« handshake deals, » and the artists retained full ownership of their music. This approach
allowed bands like Joy Division, New Order, and The Durutti Column to innovate without
corporate interference.

https://www.youtube.com/watch?v=CYA-KtCfN6Q

Factory’s emphasis on aesthetics and creative freedom extended beyond music. Peter
Saville’s minimalist and avant-garde designs for Factory’s releases gave the label a
distinctive visual identity. However, this idealism came at a cost : even as New Order’s « Blue
Monday » became the best-selling 12-inch single of all time, Factory Records lost money
because the elaborate packaging of the single, designed by Peter Saville, costed too much
to produce.

Opened in 1982, The Haçienda was Factory Records’ most ambitious project. Inspired by
New York’s club scene, Wilson and his partners envisioned a venue that would be more than
just a nightclub—it would be a cultural space that merged music, art, and social interaction.
The club played a crucial role in shaping the UK’s electronic and rave scenes, bringing acid
house to a wider audience and becoming the epicenter of the « Madchester » movement.
Yet, despite its cultural significance, The Hacienda was a financial disaster. Entry fees and
drink prices were kept low to maintain accessibility, but this meant that the club struggled to
generate revenue. The club debt was financed by New Order’s tours and album revenues,
but it had to close its door in 1997 due to too much financial difficulty.

Factory Records and The Hacienda exemplified how a non-profit approach to culture can
lead to profound artistic and social impact. Factory was able to foster a unique and influential
sound that shaped post-punk and electronic music, and the Hacienda created a space where
new musical movements could flourish, directly influencing the global rave culture.
However, can such ventures truly be considered « non-profit » ? While Factory Records
rejected traditional profit motives, it still relied on commercial success to fund its projects.
Without the unexpected success of Joy Division and New Order, The Hacienda would never
have existed.

Even with commercial success, such an organization can’t last long in a capitalist society if it
isn’t fully profit oriented. Many similar structures don’t have the mainstream appeal of Factory
Records and try to have an impact at the local level. Public support and alternative funding
models may be necessary to prevent these spaces from being lost, as it happens already for
clubs in Berlin for exemple.

Thomas ROEHRI