As the Christian music industry gathers for its annual gala event next month, it is seeing a new business model emerging.

The hosting of the 2011 Dove Awards in Atlanta on April 20—the first time the show will take place outside of Nashville in its 42-year history—mirrors a move away from longstanding approaches to distribution.

Together with continuing strong in-store sales, the changes are seen by many to signal opportunities for the category despite the concerns of digital sales.

While industry observers say lower music sales has forced downsizing at the major labels, the growth of the digital market has seen small labels emerging and non-traditional sources of music coming to the forefront.

Among the indicators: A California church's two small, yet thriving labels have been gaining attention; the world's largest Christian publisher is looking to expand its music distribution; and a multi-artist compilation album from New York Times best-selling author Karen Kingsbury was recently independently released.

Ed Leonard, whose term ends next month as Gospel Music Association president and board chairman and who is Daywind Music Group's president, told Christian Retailing that "it is much easier to make and promote music inexpensively these days."

Small labels are emerging because the cost of recording is going down, added Leonard. "With today's technology, anyone can record an album in their basement, garage or on their bus for that matter. Paired with the use of the Internet for getting information out to audiences, it's possible for a small label to do extremely well."

Read the complete report in the April issue of Christian Retailing.

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