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The future of music sales for independent labels.
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iTranscendence
IsraTrance Junior Member
Started Topics :
14
Posts :
386
Posted : May 4, 2011 12:43:46
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Completely unrelated to the drama thread, was a discussion about what to do about sagging hard copy sales because of file sharing in it; reminded me of a lengthy post I made in a thread on the twisted forums about that very subject because at the time Simon was up in arms because the album had been leaked online most likely by someone where it was being printed.
I think we all know that file sharing, no matter what governments or even the richest labels through lobbying efforts try and do, will be able to ever stem the flow of information. So I tried to come up with some solutions that could help labels, especially smaller ones turn the traffic created by file sharing back to themselves and in a way that could benefit them economically.
I'd be curious to see how many of you generally agree or disagree with my ideas.
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Cut overhead
Print less copies of albums, make the albums limited editions for the most devoted fans who are going to buy a hard copy no matter what. Before you even send the masters off for production make the album available for purchase online in lossless/lossy formats. Allow all the customers who pre-order hard copies access to the digital files before they get their hard copy. Write tracks specific for the hard copies that aren’t on the digital releases to entice everyone to buy them up quicker. If demand is still ridiculously high for more hard copies you can always look at a second printing, but at least you haven’t put all your eggs in one basket if it doesn’t.
Encourage sharing of your music
I know this sounds counter-intuitive and not conducive to a good business model, but the traditional business model from corporate America, just doesn’t work with music anymore. BBC just had an article about how people who file share spend almost twice as much yearly on hard copies over people who don’t (http://news.bbc.co.uk/2/hi/technology/8337887.stm). If you take the above advice this will guard you against most of the bleed out caused by file sharing. The encouragement comes with an addendum of this: a message to your fans to always link back to a place to buy digital copies of the album your merchandise or donate every place they share your music. People who are sharing the music who think they will get in trouble, will go to every effort to hide the fact that they are sharing your music from getting back to you, this includes linking to your site. If you give them that permission as long as they link to a place to buy the album digitally or donate, they will come out into the light. Think of this like pirate jujitsu, you are using all the time and effort they are putting into spreading your music to get people back to you where they can support you financially. This leads to the next major thing.
Focus profits on other products and merchandise.
Start a netlabel and start releasing more EP’s/back catalogs even if it’s secondary songs that didn’t make the albums people will still buy those digital copies with only the overhead of the website you are already paying for anyway. “Buy a Schpongle t-shirt? Get a free exclusive track download!” You know people are going to share the music regardless so building the fan base and giving them a lot of cool shit to buy and come to shows for is where the money is really at. |
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  blip.fm/itranscendence |
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TechMonkey
IsraTrance Junior Member
Started Topics :
41
Posts :
985
Posted : May 4, 2011 17:10
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Cut overhead
Print less copies of albums, make the albums limited editions for the most devoted fans who are going to buy a hard copy no matter what. Before you even send the masters off for production make the album available for purchase online in lossless/lossy formats. Allow all the customers who pre-order hard copies access to the digital files before they get their hard copy. Write tracks specific for the hard copies that aren’t on the digital releases to entice everyone to buy them up quicker. If demand is still ridiculously high for more hard copies you can always look at a second printing, but at least you haven’t put all your eggs in one basket if it doesn’t.
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I agree. Most people aren't going to buy CDs any more. I can only speak for my perspective, but I think it's older people (who started with CDs) with a collector mentality who are primarily the ones who will pay the premium. Thanks LAME VBR and FLAC encoding CDs are an anachronistic technology. As someone with a collector mentality, I do find myself almost compulsively snatching up limited edition CDs from artists I like. *points to the Ishq Skyspaces thread* Might just be me, but I find "limited edition" to often be a "buy now, it might not be here in an hour" incentive. That is, as long as it's a reasonable price. Putting out a limited CD at more than $20USD is pretty much a guarantee that I'll just go download it elsewhere. Bonus tracks are nice for the hard copy, but not a big deal since those bonus tracks will turn up on the shares in pretty short order. I've been spoiled by those distributors who do give you an immediate download link if you purchase hard copy. It should be standard practice IMO.
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Encourage sharing of your music
I know this sounds counter-intuitive and not conducive to a good business model, but the traditional business model from corporate America, just doesn’t work with music anymore. BBC just had an article about how people who file share spend almost twice as much yearly on hard copies over people who don’t (http://news.bbc.co.uk/2/hi/technology/8337887.stm). If you take the above advice this will guard you against most of the bleed out caused by file sharing. The encouragement comes with an addendum of this: a message to your fans to always link back to a place to buy digital copies of the album your merchandise or donate every place they share your music. People who are sharing the music who think they will get in trouble, will go to every effort to hide the fact that they are sharing your music from getting back to you, this includes linking to your site. If you give them that permission as long as they link to a place to buy the album digitally or donate, they will come out into the light. Think of this like pirate jujitsu, you are using all the time and effort they are putting into spreading your music to get people back to you where they can support you financially. This leads to the next major thing.
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My CD collection spreads across two walls. I would say that just about every release purchased after 2003 I had downloaded first. Some distribution points like Bandcamp get it right with full album listens on demand. Especially with ambient/downtempo/chillout, 30 second samples just don't represent the music. Even then, downloaded trials are better. If I'm sitting at a computer trying to listen and evaluate I often feel rushed because I could be somewhere else that I want or need to be. Being able to load it onto my DMP and just listen as I go about my business is where I can just let the music do it's thing without me being overly focused on it. It's these situation where the music is most likely to click for me and give me one of those "OMG! MUST BUY! NOW!" moments.
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Start a netlabel and start releasing more EP’s/back catalogs even if it’s secondary songs that didn’t make the albums people will still buy those digital copies with only the overhead of the website you are already paying for anyway. “Buy a Schpongle t-shirt? Get a free exclusive track download!” You know people are going to share the music regardless so building the fan base and giving them a lot of cool shit to buy and come to shows for is where the money is really at.
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Merchandise! I may be a minority on this, but I'm a sucker for merchandise. I'm enthusiastic to be a walking billboard for the artists I like. I think the idea of bonus downloads with material purchases is an interesting idea. For me, it would have an impact on my buying decision.
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andrew interchill
IsraTrance Junior Member
Started Topics :
26
Posts :
435
Posted : May 4, 2011 20:36
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I'm not sure there's a solution that works for everyone because I see labels I know doing combinations of high quality limited edition releases, cd and digital, digital only, aggressive pricing, free releases, releases from relatively unknown artists, artist funded releases, multiple ep's, compilations, music and merch combined, concept albums, album publishing deals etc etc
And also there's the increasingly valid question of why does an artist need a label, or rather what is it that a label can offer that an artist needs that makes it worth trading rights and control ?
At Interchill we're responding to this changing world by offering consulting and artist services. This means that an artist can access some of what we have to offer without signing an album deal. Anyone interested in finding out more is welcome to get in touch - andrew@interchill.com |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
Posts :
1752
Posted : May 4, 2011 20:45
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Seriously there's no "new spoon" invention mentioned here. It's all common knowledge that does not at all solve the current situation.
Many have implemented the suggestions and still have a loss in income on a daily basis.
www.beatagency.dk |
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TranceVisuals
TranceVisuals
Started Topics :
23
Posts :
743
Posted : May 4, 2011 20:52
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Beat Agency
IsraTrance Full Member
Started Topics :
53
Posts :
1752
Posted : May 4, 2011 21:11
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On 2011-05-04 20:52, TranceVisuals wrote:
It seems as though the party is over for labels.
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And IMO it's all OK. Based on the fact that the majority of labels (also in our scene) has taken advantage of artists music for decades getting very fat from royalties with a very unfair share-percentage. Many hungry artists has been getting percentages down to approx. 14% after deduction of all costs (Labels and distributors are the ones who got fat). It's on high time artists finally found a way out of this Master & Servant relationship/chain even though there aren't any sales in music these days unless you are a very big household name.
www.beatagency.dk |
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TranceVisuals
TranceVisuals
Started Topics :
23
Posts :
743
Posted : May 4, 2011 21:42
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Beat Agency
IsraTrance Full Member
Started Topics :
53
Posts :
1752
Posted : May 4, 2011 21:45
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TranceVisuals
TranceVisuals
Started Topics :
23
Posts :
743
Posted : May 4, 2011 21:46
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andrew interchill
IsraTrance Junior Member
Started Topics :
26
Posts :
435
Posted : May 4, 2011 22:11
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Nice generalisations Beat Agency ! |
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Beat Agency
IsraTrance Full Member
Started Topics :
53
Posts :
1752
Posted : May 4, 2011 22:19
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On 2011-05-04 22:11, andrew interchill wrote:
Nice generalisations Beat Agency !
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Feel pointed at? I did not say all. I said the majority which is the naked truth looking at the history of the music business (like it or not). And it's of course also based on my 18 years in the music business and my own experience both in this underground scene and working in the commercial music business where a standard agreement started at 12% (If you were good you could negotiate it up to 18-20%).
www.beatagency.dk |
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andrew interchill
IsraTrance Junior Member
Started Topics :
26
Posts :
435
Posted : May 5, 2011 01:15
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No... I don't feel pointed at - it was a pretty sweeping set of statements.
I don't know the history of the music biz and I'm not familiar with the precise details deals other labels make. I guess though that if you see repeat releases, artists coming back then that does speak for something.
It is a super interesting time to be involved in this line of work and rethinking the old school ways of doing things is healthy.
It is the case that the means of production are no longer solely in the hands of labels - but that does not mean that labels are finished or cannot provide useful services to artists who self release.
That last bit is the crucial thing - old school model was that you only get services from a label if you sign on the dotted line.
Interchill - Label - Publisher - Consulting - Artist Services |
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DjSchofield
IsraTrance Junior Member
Started Topics :
21
Posts :
1050
Posted : May 5, 2011 01:51
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On 2011-05-04 20:36, andrew interchill wrote:
I'm not sure there's a solution that works for everyone because I see labels I know doing combinations of high quality limited edition releases, cd and digital, digital only, aggressive pricing, free releases, releases from relatively unknown artists, artist funded releases, multiple ep's, compilations, music and merch combined, concept albums, album publishing deals etc etc
And also there's the increasingly valid question of why does an artist need a label, or rather what is it that a label can offer that an artist needs that makes it worth trading rights and control ?
At Interchill we're responding to this changing world by offering consulting and artist services. This means that an artist can access some of what we have to offer without signing an album deal. Anyone interested in finding out more is welcome to get in touch - andrew@interchill.com
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Artists don't always need labels, especially if they are already well known and liked.
But labels to offer prestige (such as Interchill, Alpeh Zero and Ultimae, amongst others) which can get a newer artist more exposure. So certainly there's a place for labels - especially where they maybe represent a collective vision (as the previously mentioned labels do) and promotion for the artists involved. |
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iTranscendence
IsraTrance Junior Member
Started Topics :
14
Posts :
386
Posted : May 5, 2011 03:06
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I would agree that much of what I said is already generally being implemented, but never all together.
However, there is ONE thing I mentioned that no one has addressed.
Encouraging the sharing with the caveat that any site that where they share your music that they link back directly to donate or purchase from you.
Think about the type of traffic that could generate a label/artist.
You could even give a promotional like "linkbacks from file sharing will receieve 10% off merchandise for a limited time!" That way you pick up on the influx of sharers looking for the new CD who then show up on your page and buy products from you that are almost pure profit.
The point is, with the right positioning, all the time and traffic that goes into file sharing could be used to benefit the label instead of hurt it.
blip.fm/itranscendence |
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V3NOM
Inactive User
Started Topics :
131
Posts :
2234
Posted : May 5, 2011 03:15
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It would be fascinating to get some clarity on how labels have operated. Especially to see some factual evidence as to coatings, earnings & "wages" paid to both the artists doing visual artwork for releases & musicians themselves.
It all seems very hidden & protected.
Whenever an artist makes a claim against a label nobody base ever put up a contract or any official documentation to support either case.
I gather then that real contracts do not exist? Which makes me thinks then that artists releasing their work themselves is much better than the label-artist model that has failed both underground n' commercial acts (Bob Marley, Metallica to name a few who suffered at some point from bad contract deeds).
I also think not being contractually obligated to produce a certain sound for certain labels will allow music to become an art again, and not just a means to pay the bills.
I hate you, you hate me, we are all so hap hap happy! |
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