Tag Archive for 'eMusic'

TuneCore — Helping Artists Digitally Will Now Help Sell CDs On The Cheap

Published
by
Rob Stefaniak
on February 28, 2008
in Management
. 1 Comment

TuneCore LogoTuneCore, pretty much the best thing going for Artists to digitally distribute their music through iTunes (globally) and other major digital stores (Rhapsody, Amazon, eMusic, MediaNet Digital, etc.), will now branch out into physical CD distribution on April 1, giving artists another way to sell their music.

Artists will pay an undisclosed “low” fee for the first year of distribution, and some other amount after that (a company representative says the fee will be on par with what it charges for digital distribution — in other words, next to nothing). In return, TuneCore will create a flash store that can be embedded on the Artist’s websites in order to sell the physical discs.

Artists will still manufacture their own CDs, set their own prices, and design their own cover art and liner notes. Going forward, there will also be an option to pay for CD manufacture with revenue from digital sales. TuneCore will process the orders and ship the CDs, giving 100 percent of sales revenue to the Artist.

I have used TuneCore and it is the real deal. Super easy, great accounting reports and a non-exclusive agreement of which you can opt-out at any time. Last year when I began looking for a digital aggregator to distribute an album for a band I represent, I first contacted IODA and The Orchard. They both wouldn’t deal with an Artist / Label with only one catalog release. So I found TuneCore and I am glad I did. It is truly a ‘no-brainer’. Their model is based on that of FedEx, whereas all delivery fees are paid upfront. Here is an example of how the math breaks down to distribute digital music via TuneCore:

iTunes US Store $0.99
iTunes Canada Store $0.99
iTunes UK/Europe (many stores) $0.99
iTunes Australia/New Zealand $0.99
iTunes Japan Store $0.99
Rhapsody Service $0.99
Amazon MP3 $0.99
GroupieTunes/Music.com $0.99
eMusic Store $0.99
Napster Store $0.99
Ten Songs @ $0.99 each $9.90
First Year's Maintenance (increased from $9.98) $19.98
Grand Total (for first year) $39.78

So, for an album of 10 songs it’s a grand total of $29.78 $39.78 to get the music in all the major digital stores. Then there is a $9.98 $19.98 yearly maintenance fee going forward to keep the music in the stores. The Artist gets to take home 100% of all revenues. It doesn’t get any better than that!!

UPDATE/CORRECTION from Peter Wells of TuneCore in the comments: MediaNet Digital doesn’t accept content from anyone anymore, so they had to pull it. Same with Sony Connect. They have added GroupieTunes, which goes to Music.com and does ringtones! Songs are still $0.99 each, but the yearly maintenance fee has increased and is now $19.98.

Dirt-Cheap Digital Distribution | Listening Post from Wired.com

TuneCore Will Help Bands Sell CDs on the Cheap | Listening Post from Wired.com

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Now playing: Coconut Records - Nighttiming
via FoxyTunes

A Brave New World: The Music Biz At The Dawn Of 2008 — Ars Technica

Published
by
Rob Stefaniak
on January 25, 2008
in Management
. 0 Comments

Great article and case study on the changing music industry by Nate Anderson at Ars Technica, a technology news and reviews site. In short, CD sales are down, major label revenues are sliding, and the music industry looks to be in recession. But music isn’t dying; it’s changing…

Ok, we already knew all that, but it’s still a good read. Here are a couple of great quotes:

What’s happening is obvious; consumers are making far more purchases than ever before, but are often choosing to grab only selected tracks rather than complete albums. The album may not be dying in a general way, but it has certainly lost its importance as the primary way that buyers in the digital era get their music. Bands with a track record of putting out uneven albums won’t be able to milk that strategy for massive profits anymore, nor will any labels that nurture such acts.

It’s often said that it’s hard to compete with free, and that may be true for some segments of the population. (Are college kids ever really going to cough up much cash?) But for most adults who don’t get off on breaking the law or on stiffing artists, it’s easy enough to compete with free. Make something that’s faster, more reliable, with better metadata and album art, and a huge DRM-free selection. Throw in charts, some editorial staff, and some community features, and money is there to be made.

Throw in a solid graphic with numbers on digital and physical music sales from 2003 through 2007…

Digital And Physical Music Sales - 2003-07

Also, make sure to check out the eMusic case study on page 2. Some impressive numbers on digital downloads and the state of indie music in general is brought forward…

Internet distribution has opened up music (like many other products) to the effects of the “long tail.” Since huge quantities of goods costs so little to store and deliver, online venues can offer products that appeal only to very small numbers of people and still make money. “The long tail does better online,” said [eMusic CEO David] Pakman, saying that eMusic is proof of that fact.

A Brave New World: The Music Biz At The Dawn Of 2008