Showing posts with label CD Baby. Show all posts
Showing posts with label CD Baby. Show all posts

Wednesday, February 25, 2015

Submitting Your Songs To iTunes

iTunes Producer image
If you're an indie artist you know that its possible to submit your songs to many of the digital streaming services like Pandora or Spotify, but that's not possible when it comes to iTunes. The fact of the matter is that many digital services, including iTunes, require either a mid-sized record label or a digital aggregator like CD Baby or Tunecore to submit your songs.

One of the reasons for this is the expense of administering a large number of accounts. There's a cost for the initial setup of the account (which is why an aggregator sometimes charges a setup fee) and most solo artists accounts won't be able to cover that amount during the lifetime of their songs on the service.

Then there's customer service, or the lack thereof. It's expensive to provide and just one call can wipe out any lifetime profits for either the aggregator or the digital service. That's why it's so hard to get someone on the phone at virtually every online company.

iTunes is a special case though, in that it only deals with larger accounts, meaning labels with at least  20 albums or more, or an aggregator. Apple supplies a great submission tool called iTunes Producer that prepares your songs for submission in terms of all the metadata and artwork, but you must be approved by Apple first before the app can connect to the iTunes store.

Let's say you have the prerequisite 20 albums in your catalog and you want to become an approved iTunes label. Apple still requires the following:
  • A UPC code for each album
  • ISRC codes for each song
  • A US Tax ID
  • An iTunes store account with a credit card on file 
Finally, Apple sets a sales threshold for each territory that you must exceed before it pays you, so sometimes you can get paid much faster by using an aggregator.

If you're a solo artist, you're pretty much forced to use a digital aggregator to get your music on iTunes and many other digital services. It's much easier than submitting to each one, as an aggregator is a single submission, but it will cost you either a yearly fee or a percentage of your sales revenue. If you're a label that meets the submission standards, then it's worth it to keep the submissions in house.


You should follow me on Forbes for some insights on the new music business, Twitter and Facebook for daily news and updates on production and the music business.
.

Wednesday, May 29, 2013

A New Way To Distribute Music Digitally

DistroKid logo image
If you want your music on iTunes, Spotify, and other digital services, most artists choose to use either Tunecore or CD Baby as a distribution method. Each have their upsides and downsides, with the downsides mostly being financial, with Tunecore charging a flat per year for each release and CD Baby taking a percentage of the sale. Now there may be a cheaper and easier way to do it, thanks to DistroKid.

DistroKid is an offshoot of Fandalism, the social network for musicians started by Philip Kaplan. What makes it different from most other distribution networks is that it costs only a subscription fee of $19.95 a year which allows unlimited uploads of your music. You can even upload one song for free before you enter any credit card information.

Kaplan started the service with an eye on democratizing music distribution even further than it currently is by making it a snap for anyone to release their music. While on the surface this seems like a noble idea, the big problem is that since there are really no record label gatekeepers to sift through the mediocre to find the brilliant, at least the service fees of Tunecore and CD Baby would make people think twice before they'd release something that might not be up to par.

The flip side of that coin is, who really knows what another person might like? Music history is filled with big hits that their writers, artists or record labels thought weren't very good and were later pleasantly surprised by the public's enthusiasm. The beauty of Music 3.0 is that if you look hard enough, you'll find at least a small audience for it somewhere. The downside is that it's hard for the consumer to sift through all the noise.

DistroKid is a boot-strap operation despite the earlier online successes of Kaplan (the ad network AdBrite and social shopping Blippy), so it's yet to be seen just how effective it will be in getting your music to all of the sites it claims. Plus, there's not a lot known about how the accounting is handled yet. That said, if you want to get your music on iTunes, Spotify, Google Play and Amazon in 2 to 4 hours (which is really fast), give it a try.
----------------------------------

Interested in the Music 3.0 archives? Buy The Music 3.0 Guide To Social Media for the best of over 800 posts.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, April 17, 2013

An Interview With Derek Sivers

Derek Sivers image from Bobby Owsinski's Big Picture Blog
Derek Sivers’s life has certainly been interesting so far, from working as a musician/ringleader of a circus to a stint at the publishing giant Warner/Chappell to being on the road as a touring musician to creating and running CD Baby, one of the most widely used music-distribution services today. After selling CD Baby in 2008, Sivers now spends his time thinking of new ways to help musicians. In this excerpt from my Music 3.0 book, you’ll see his insights are as thoughtful as they are cutting edge.

"What trends do you see today that you think will influence the distribution and consumption of music as we go forward?
Now that there’s absolutely no barrier to entry for every person on earth to release every noise they make, there is a huge flattening of selection. Instead of 100 people making $1 million each, the future music biz may be 1 million people making $100 each.

How do you think the audience has changed?
They’ve changed because they can’t be spoon-fed anymore, and they can’t really be sold or persuaded as much as before. Because they have endless selection, they only receive and act on recommendations from trusted sources, usually friends.

Radio used to be one of the things they trusted. But now it’s transformed into something that music lovers can’t even tolerate, so real music fans don’t expect FM radio to turn them on to new music like it once did. Therefore, for new artists, radio is moot.

What’s the best way to break an act today?
First of all, an artist has to have the right attitude, which maybe is no different than it ever was. What’s new is that the artist now must also have the ability to learn, adapt, and communicate.

You’ve got to touch lots of people. You’ve got to resonate emotionally with them, then communicate sincerely. A lot. Fans really do like using their favorite artist as a bonding, cementing group maker. It’s part of your job as an artist to encourage your fans to talk to each other and make a “tribe” (to use Seth Godin’s word) around you. And after breaking, you have to solve problems and improve your skills weekly to keep your career developing.

That being said, to be a great musician you have to learn how to focus. You have to look at yourself yourself objectively to notice what needs improvement, and have the dedication to improve that even when you think you can’t.

But to be a successful professional musician, you have to learn how to look at yourself through others’ eyes. You have to understand why the venue owner is really booking artists, why this person really signed your mailing list, and why people really go out to a bar at midnight on a Thursday night. It’s an amazing learning experience, and as you’ve noticed, I’m endlessly fascinated by these things.

Do you have any promotion tips?
Hundreds. Please see http://sivers.org/pdf, where I took a few months to write them all down and share them all for free.

As for tools, I’d try to find ones that aren’t already saturated with music: maybe an artistic use of Twitter or Improv Everywhere. But whatever I used, I’d really make sure that I was always in a real three-way conversation with my fans. It’s three-way in that I’d encourage them to talk with me and with each other and make my success their success, just like Obama did in his election campaign.

What are your feelings toward the major record labels today? 
It’s easy to look at them as buffoons (like we do politicians), but most of them are surprisingly smart. This last ten years has been humbling for them. It’s shaken out the people that were only in it for the money, so most of the people at labels today are in it for the right reasons and are more entrepreneurial.

If you look at the current biggest sellers, they’re almost all on major labels, so it’s just bad logic to say that the labels are doing everything wrong. They still may do many things wrong, but not everything. Their different expectations change their costs, so they have to get incredibly lean and efficient so they can actually profit off something that sells only 10,000 copies. Most indies can profit off of 10,000 sales, but majors simply can’t right now.

Do you think an independent artist needs an agent or a manager today?
Most musicians feel if they just had a good manager, agent, or promoter they’d be all set, but most managers, agents, and promoters will tell you that most artists aren’t ready yet.

I think it’s the artists’ responsibility to develop themselves to the point where they’ve proved their persistence and ability to make music and to put on a show that people love. Once they’ve got more bookings than they can handle, it’s a good time to hand that job to an agent.

As for a manager, I think that should be like a business-minded band member whose sole job is to handle the business and marketing. It doesn’t have to be a professional manager. But yes, someone of that mind-set should definitely be included always. Don’t go too long without one!"


 Visit Derek Sivers' website at sivers.org for lots of ideas and inspiration.

----------------------------------

Interested in the Music 3.0 archives? Buy The Music 3.0 Guide To Social Media. The best of over 800 posts.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Tuesday, January 1, 2013

A Big Promotional Mistake That Artists Make

It's important to be serious about your music career if you expect to get ahead, but sometimes it's possible to actually be too serious about things. Music should be fun both in the creation and listening, and if it becomes too much of a job for an artist it translates to the audience, who can immediately pick up the vibe. Here's a video by CD Baby founder and former CEO Derek Sivers about what he's found to be a big mistake that many artists make.



----------------------------------

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Sunday, September 2, 2012

7 Steps To Make Your Merch Table Magnetic

The Merch Table image from Bobby Owsinski's Music 3.0 blog
I'm a huge fan of CD Baby's DIY Musician blog, and almost every week they have at least one post that's full of killer info. Here's a post called "7 Easy Ways To Attract Fans To Your Merch Table" that I thought was fantastic. You can read the entire post here (the tips at the end about LEDs is worth it), but here are the 7 steps that cut right to the heart of the matter.

1. Make it intriguing. Capture the attention of concert attendees before they hear a single note. 

2. Avoid clutter. Clearly display the products for sale and their prices.


3. Quickly convey your artist aesthetic. It is an extension of you and should “jive with your vibe.”


4. Make it accessible. The merch booth has got to be easy to get to, unobstructed, and clearly visible to many people at once so long lines don’t hinder sales opportunities.


5. Diversify. Offer a few different items (CDs, t-shirts, stickers, mugs, etc.) and bundle them together for a reduced price to entice fans who might be on the fence.


6. Get your email list up there front and center. The merch booth is your opportunity to attract new fans even if they don’t buy anything. This may be the only chance you have to turn a stranger into a lifelong fan, so on’t miss it!


7. Be visible at the booth following your performance. If you’ve created a moment on stage that made a fan say to themselves “I need to take some memory of this home with me” then what better way to ensure a lasting connection than to have a conversation with your audience after the show.

Merch should be one of your main sources of income, but it can only happen if you present it well. 
-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, July 18, 2012

3 Common Mistakes Made By Independant Musicians

Typical merch image from Bobby Owsinski's Music 3.0 blog
CD Baby's DIY Musician blog always has a lot of good tidbits for those still struggling in the musical trenches, which I know is most of you. You can read this entire article regarding the "3 Most Common Mistakes Made By Independant Musicians," but I'll summarize the major points made in the article about the 3 mistakes here with my spin.
1. You don't monetize your live shows. If you're just starting out, you need the stage time to get tight so this point won't matter, but if you've been playing for a while and have built at least a small fanbase, it's time take advantage. Make sure that you have something to sell, either T-shirts, hats, CDs, flash drives with your music, but make it affordable. The money is cool, but the free advertising by the fans is better.
 2. Don't focus on getting signed. First of all, why would you want to in this day and age? Second of all, even if you do, your best bet is to develop as big an audience as you can. Remember the following because it's really true: Labels don't sign you for your music, they sign you for your audience. They really don't care how good you are, but if you have a line around the block, they'll come knocking at your door and you won't need to contact them. 
3. Treat your music like a business. Why do you think they call it the "music business"? You have to have fun with your music or it's not worth doing, but you have to consider the business of what you're doing as well. There are loads of places to get advice on this, but since you're reading this, check out the archives of this blog for lots of business tips. It's also a good idea to watch this Henry Rollins video over on my Big Picture Production Blog for some inspiration.
There's my take on the DIY article, but you should check out the original post as well as it looks at the 3 points from a different angle.

-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, June 13, 2012

Top 10 Twitter Music Law Resouces

Top 10 image from Bobby Owsinski's Music 3.0 blog
CD Baby's DIY Musician blog is currently running a series called "The Top 100 Must-Follow Music Resources On Twitter" that I find is pretty interesting. One of the best parts to the series is their Top 10 Music Law people to follow. I personally haven't followed any of them, but I'm going to now. Here they are:

1. Christiane Kinney @musicalredhead 

Kinney writes/blogs about legal issues pertaining specifically to
DIY/indie musicians. She’s one herself, so her in-the-thick-of-it
perspectives carry a lot of weight.
2. Larry Zerner @Zernerlaw
Zerner is a lawyer in Los Angeles whose main emphasis is copyright,
trademark and entertainment law. He often blogs about music-related cases
and discusses them in his feed.
3. Cassandra Spangler @cspanmusiclaw
Spangler is a NY-based entertainment lawyer specializing in music, and is
also an independent musician herself. As she says, “I understand firsthand
the challenges facing independent artists and companies attempting to
navigate the often-present power imbalance of the music industry.”
4. Michael Scott @CopyrightLaw
This Twitter feed isn’t entirely about music, but many of the issues
discussed here can be applicable to any creative works. Great links to
current copyright news, as well as discussions on topics you might never
even have thought of.
5. Gordon Firemark @gfiremark
Firemark’s focus is on theatre, film, and TV, but he also covers music.
Plus, he provides many real-time links to stories that affect anyone in
the entertainment industry.
6. Peter Kaufman @dealfatigue
Kaufman is an entertainment lawyer who covers the ever-shifting
“deal-making culture.” He provides links to stories that are in that vein,
many about music.
7. Todd Murphy @The_Jazz_Lawyer
Murphy is a music lawyer, a producer, a musician, and a guy who just
generally knows about the business. Great insight on issues relating to
the ways in which musicians get paid.
8. Mita Carriman @nymusiclawyer
Carriman stays on top of all the legal entertainment trends, and does a
great job of sharing links to lots of articles about the rights of
musicians.
9. Tamera Bennett @TameraBennett
Bennett is a lawyer who handles copyright law and music publishing. Lots
of great links to stories about music, as well as general trademark and
copyright stuff.
10. Steve Gordon @SteveGordonLaw
Gordon is an entertainment lawyer, author of the book ‘The Future of the
Music Business,’ and the host of the podcast of the same name.

-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Sunday, March 4, 2012

After The Album Is Finished

power circle graphic from Music 3.0 blog
CD Baby's excellent DIY Musician blog recently had a post regarding the steps to take when your album is finished. I liked their suggestions but decided to put together a few of my own based on the article.

Here are 10 steps to take after your CD is completed.

1. Get some photos taken. If you don't have the album artwork together, then you may need photos for that. But even if that's well in hand, you're going to need new press photos. Get them shot by a professional ASAP. Check out this article for advice on photos.

2. Update your press kit. You do have one, right? If you do, update it to reflect your latest release. If not, time to get started on it. Check out this article on electronic press kits for more info, as well as this article.

3. Update your website. Once again, it's time to reflect the fact that you have new music to offer. Updating a site takes time, so the sooner you get to it, the better. Before you begin your update, check out this article on the 7 mistakes that bands make on their websites.

4. Determine your distribution. If you aren't signed to a record label, now's the time to get with Tunecore or CD Baby to help make your music available to the world.

5. Determine your release schedule. If you've just completed an album, ask yourself these questions: When is the official album release date? What will be the first single and when will it be released? What will be the second and third singles and when will they be released? Check out this article for a new look at release schedules.

6. Submit your album to Gracenote and All Music Guide. Gracenote is the service that recognizes the songs on a CD when you put it into your computer. All Music Guide provides all the pictures and bio info that you see on iTunes. Submit to both so people get all the details they need when they play your CD.
Click here to find out how to submit your music to Gracenote.
Click here to find out how to submit your music to All Media Guide.

7. Plan your social media campaign. This includes email blasts to your fans as well as posts on Facebook, Twitter and Google+. You want to determine just when everything will happen, in what order it will happen, and who's responsible for getting it done.

8. Create some videos. Many people get all of their new music strictly from videos on YouTube. Get a video out ASAP even if it's only composed of a picture and the music. Real videos take time and you can release the official video later. Get something out there now.

9. Book your album release party. If for no other reason, it's a good reason to have a party and celebrate the fact that you've accomplished something that took a lot of work. That said, it's also the best way to get the word out about your new album, especially to the local press.

10. Play to support the album. It's time to get out there and play for people to expose them to your new music. Some artists and bands gig to support the album while others use the album to support their gigging. Decide which category you fall under, make a plan on what you're going to do, and follow it through.

There are more things that you can do, but these are the bare minimum. Remember, just because you've made an album, the world won't beat a path to your door. You have to be proactive in getting the word out.
-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, February 8, 2012

2011 According To CD Baby

Here's an interesting infographic from CD Baby regarding their place in the music business in 2011. It celebrates how well the company did last year, but I'm not sure the individual artist will interpret it the same way. For instance, investment bankers might want to that over 25,000 CD Baby artists are on Facebook, but that number is bound to discourage some artists although if that happens, they probably don't deserve to be in the business anyway.

Regardless, I personally really like the service and their blog is very helpful, and as you can see, they're selling a lot of product that probably wouldn't have been sold with them.

Take note of the section on the bottom of the graphic about the strength of the CD and how little revenue streaming is generating, both of which are no surprise if you read this blog regularly.

CD Baby 2011 Stats image from Bobby Owsinski's Music 3.0 blog


-----------------------------------
You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Thursday, May 26, 2011

A Comparison Of Online Music Distributors

Here's an interesting chart that I found (my apologies, but I can't remember where) that provides a nice overview of some of the popular online music distribution services. With all the hoopla over Tunecore recently raising their prices, it's interesting to see that they're really not that out of line when you look at a side by side comparison.

So which one should you choose? Price isn't always the most important element of your decision. Things like free UPC codes and which stores and subscription services they service are also important. Ultimately, the general feel of the distributor and their user interface may have more of an affect on your decision than anything, so make sure you check them all out before making your choice.
-----------------------------------
Help support this blog. Any purchases made through our Amazon links help support this website with no cost to you.

You should follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for daily discussion of music, recording, and production tips and tricks.

Wednesday, November 10, 2010

Turning Passive Fans Into Committed Fans

There are basically two kinds of fans - those that are "committed" in that they have a high level of interest in you, and those that are "passive." These are fans that kind of like you, but don't feel a need to stay connected, since they don't "love" you yet. The easiest way to grow your audience is to convert those passive fans to ones that are committed.

How do you do that? Passive fans already like what you're doing, so a great new song can easily push them over the edge, providing that they hear it. When a band who's been around for a while finally breaks out big, this is usually what happens.

Sometimes they just need a gentle push over the edge though, and a way to turn them around is by simple communication. CD Baby's DIY Musician blog had a pretty good piece about that recently that recommends that you directly ask the fans what they want from you. There may be something simple that you can do that you never thought of that will help you connect. Ask them.

Here are some questions (from the article) you should be asking, as the feedback can most directly correlate to stronger fans, stronger sales and less wasted efforts.

- Where do you live?
- What do you enjoy more: studio recordings or live performances?
- How important is it that you obtain copies of live performances?
- If we offered high-quality recordings of our shows, would you purchase them?
- Are you willing to purchase an album from us?
- Have you joined our mailing list?
- Would you prefer personal updates or free music from our bi-weekly newsletter?
- If we offered t-shirts, hoodies, hats and posters, which would you purchase?
- Would you be interested in seeing behind the scenes footage of our tour or recording sessions? If so, which would be more interest you?

Interaction alone may not convert some fans (it's still that one song that will knock their socks off), but it's a start. Read the entire article here.

-----------------------------------
Follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Wednesday, May 5, 2010

10 Sales Tips For Artists And Bands

It's really easy for an artist or band to think that the end all to their sales activities is making their CD's available via CD Baby and their songs downloadable from the iTunes store. The fact is, there's a lot more to it than that if you really want to take full advantage of the opportunity that a sale brings.

Here's an excerpt from my Music 3.0 Internet Music Guidebook that features 10 sales tips to always keep in mind.

1) Ask for the purchase. Never forget that, even though you’re selling yourself, you’re still in sales.

2) Sell a package. With a ticket you get a CD, with a CD you get a T-shirt, with a T-shirt you get a ticket. The idea is to make each purchase something with added value.

3) Sell merchandise at as an affordable price as possible. Until you’re a star, you should be more concerned about visibility and branding than revenue. If you want to spread the word, price it cheaper.

4) There are other things to sell besides CD’s and T-shirts. Hats, a song book, a tour picture book, beach towels - get creative but choose well. Too many choices may actually reduce sales from buyer confusion. You can now sell a variety of branded merchandise with no upfront costs using CafePress.com or Zazzle.com.

5) Begin promotion as soon as possible. It allows time for the viral buzz (aka free promotion) to build and ensures you’ll get you a larger share of your fan’s discretionary spending.

6) Capture the name, email address and zip code from anyone who makes a purchase, particularly ticket buyers.

7) Always give your customer more than he expected. By giving them something for free that they did not expect, you keep them coming back for more.

8) Give it away and sell it at the same time. In the Music 1.0 to 2.5 days, you used to give away a free track to sell other merchandise like the album.  Now, if you give away a track, that track actually sells more.

9) The best items to sell are the ones that are the most scarce. Autographed items, special boxed sets, limited edition vinyl that’s numbered - all these items are more valuable because of their scarcity. If the items are abundant, price them cheaper. If the items are scarce, don’t be afraid to price them higher.

10) Sell your brand. You, the artist, are your own brand. Remember that everything you do sells that brand, even if it doesn’t result in a sale. Just the fact that people are paying attention can result in a sale and revenue down the road.

-----------------------------------
Follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Thursday, April 15, 2010

How Many Music Sales Equal Minimum Wage?


You probably can't read the chart on the left, but it truly is an eye opener. It was created by Stan Schroeder and posted on Mashable yesterday. The chart describes the number of sales of various music product required to make a monthly wage of $1,160, or the minimum wage that you'd likely make at Micky D's.

Let me outline what the chart says. For more detail, see it at Mashable.

To make the minimum wage for one month, or $1,160, you need to sell:

143 self pressed CD's (income $8 each)

155 CD's from cdbaby (income $7.50 each)

1,161 retail CDs with a high-end label royalty rate (income $1 each)

1,229 iTunes album downloads (income $.94 each)

1,562 MP3 downloads via cdbaby (income $.74 each)

2,044 MP3 downloads via cdbaby via iTunes (income $.57 each)

3,871 retail CDs, with a low-end label royalty rate (income $.30 each)

12,399 individual track downloads from iTunes or Amazon (income $.09 each)

849,817 plays per month on Rhapsoday (income $.0022 each)

1,546,667 plays per month on last.fm (income $.005 each)

4,549,020 plays per month on Spotify (income $.00043 each)

This makes working at McDonalds start to look like a wise career choice. Still want to try to make music for a living?

---------------------


Follow me on Twitter for daily news and updates on production and the music business.

Check out my Big Picture blog for discussion on common music, engineering and production tips and tricks.

Sunday, December 6, 2009

10 Major Milestones In Modern Music Marketing

Bruce Houghton wrote a nice post on his ever entertaining Hypebot blog some time ago about the 10 major milestones in modern music marketing. It's hard to argue with any of these, and they all are certainly milestones in some way, shape or form. I've added my comments in italics afterwards where appropriate.

In no particular order:

1. Seth Godin writes "Permission Marketing" way back in 1999 pointing the way towards a new era of artist and fan relationships. I personally thought that his book "Tribes: We Need You To Lead Us" is more of the milestone, but Permission Marketing certainly ranks right up there.

2. CD Baby offers indie and d.i.y. artists a home to reach a wider audience on the net.

3. The Arctic Monkeys parlay internet pre-release buzz into the fastest selling debut album in UK history.

4. OK GO proves the power of YouTube with an ultra-low budget "treadmill" video "Here We Go Again."

5. TuneCore tears down the last barriers to distribution offering low flat fee no strings attached access to the worlds top digital stores.

6. Radiohead releases "In Rainbows" asking fans to pay want they want for the download.

7. Trent Reznor grosses $1.6 million in first week sales by offering fans options from $5 to a $300 limited edition package of his latest Nine Inch Nails release "Ghosts". Whether it's calculated or just an inherent feel for Internet marketing, Trent is the master and deserves to be on any top 10 list.
8. Jill Sobule asks fans for help recording her new album raises more than $80,000. Pretty good considering she was only looking for $75k and could've raised more had she not cut the offering off.
9. David Byrne & Brian Eno release a new collaboration via Topspin. While more evolutionary than revolutionary, this was one of the first well planned and executed releases that took full advantage of modern music marketing techniques with impressive results.

10. Amanda Palmer made $19,000 in 10 hours on Twitter proving the music marketing potantial of micro-blogging platform.


Wednesday, December 2, 2009

The CD's Not Dead Yet


As much as you hear about the traditional music business being dead, I'd be careful about believing it yet. A new study by the measurement company Mint.com shows that the CD may not be as spry as it used to be, but it's still alive and more well than you might think.

The Mint chart on the left shows a number of items well worth noting:

1) The spending per transaction for CD's were way ahead of digital, which was expected, but by this much? FYE.com (a CD retailer that also owns the Sam Goody's brick and mortar chain) raked in $34 per transaction, CD Baby was $22, and the closest digital distributor was the subscription service Rhapsody. Surprisingly, iTunes brings up the rear with only $7 per transaction. That's deceiving though because it means at least 6 purchases per transaction (depending upon the price point), which is far ahead of the others.

2) iTunes transactions per month are climbing, and at a much higher rate than their digital music competitors, especially from January to July 2009. It seems that all that competition is hurting iTunes' competitors a lot more than iTunes.

3) CD sales are declining in relation to digital sales though, and that number is still accelerating. 34% of total music sales is in the digital domain, but that means that 64% are still CDs, so don't give up on the physical product just yet.

4) The reasons for the decline in CD sales are confirmed by a new study by Harvard Business School Associate Professor Anita Elberse (not seen on the Mint chart) which states the obvious:

"when consumers start buying music online, they switch from buying full albums to cherry-picking their favorite songs...each album no longer bought is "traded in" for one, perhaps two, individual songs"

"a drop of around one-third of the total weekly sales across the album and its associated songs is directly attributable to people switching to buy music online"

All of which means that when you only buy a song or two instead of a CD or two, total music sales income suffers. But we knew that already.

LinkWithin

Related Posts Plugin for WordPress, Blogger...