INgrooves: Proof You Can Make Money On Music, Even If You’re Not Apple

Label Maker: INgrooves' Robb McDaniels.

This story appears in the May 7, 2012 issue of Forbes Magazine, on newsstands now.

It’s nearly noon at the Hotel San José, and music executives are still stumbling through the courtyard, casualties of the previous night’s festivities. The entire industry has descended upon Austin, Tex. for a week of schmoozing and boozing at South By Southwest.

Robb McDaniels, 37-year-old founder and CEO of digital music ­distributor ­INgrooves, is in slightly ­better sh...