Here's a group who thought outside the box and found creative ways to get paid from their music:
from nytimes.com
Radiohead Finds Sales, Even After Downloads
By JEFF LEEDS
Published: January 10, 2008
LOS ANGELES — In a twist for the music industry’s digital revolution, “In Rainbows,” the new Radiohead album that attracted wide attention when it was made available three months ago as a digital download for whatever price fans chose to pay, ranked as the top-selling album in the country this week after the CD version hit record shops and other retailers.
The album, the first in four years from the closely watched British rock act, sold 122,000 copies in the United States, according to Nielsen SoundScan. That represents a mixed result for the band. It’s a sharp drop compared with the debut of Radiohead’s previous album, 2003’s “Hail to the Thief,” but it’s far from a flop, considering the steep decline in music sales in the last four years and the typically weak sales in the post-Christmas period. “Thief” sold about 300,000 in its first week in 2003.
In any case the figures challenge the conventional wisdom that music fans no longer have an affinity for plastic. The sales of the album, which also snagged the top spot on the British weekly music chart, came despite the fact that “In Rainbows” — in the form of digital files — had been acquired by many fans after the band offered it in an unconventional pay-what-you-want offering through a Web site, inrainbows.com. The album was released on plastic CDs and vinyl LPs on Jan. 1, with the CD priced at $13.98, though it could be found for as little as $7.99 at outlets like Amazon.com.
Some retailers viewed the Radiohead figures as a sign of the continuing market for so-called physical products in the music business, where the popularity of iTunes, music blogs and other sites have made the digital file appear to be the coin of the realm. In particular they said even fans who received the digital files distributed by Radiohead may have decided to pay for the better audio quality versions on CD or LP.
“Having a physical, archival high-fidelity master recording that you can side-load into your MP3 player of choice for a similar price is significantly better than just purchasing zeros and ones,” said Eric Levin, owner of the independent record shop Criminal Records in Atlanta and founder of an 18-member alliance of independent retailers. “I feel like that’s what 75 percent of the people are saying.”
Mr. Levin said that at his store vinyl copies of “In Rainbows” outsold the CD by a wide margin. Demand for the album was such that some record shops put it on sale before the label’s planned “street date,” resulting in sales of about 9,000 copies the previous week.
But sales of the plastic and vinyl versions of the album also received a boost from digital services like iTunes, where the album sold about 28,000 copies. The iTunes service, which sells individual songs for 99 cents and albums typically for $9.99, had not carried any of the band’s previous albums, owing in part to Radiohead’s demand that its recordings be sold only as complete works.
But Bryce Edge, one of Radiohead’s managers, said the band decided to sell “In Rainbows” on iTunes because it expects that EMI, the British music giant that released the band’s first six albums, will soon post them for sale on the service, and it would be strange for the new album to be excluded. An EMI representative declined to comment.
The decision to release the music as a digital file so far in advance of the CD also allowed time for the music to circulate on free, unlicensed file-swapping networks. Big Champagne, a tracking service that studies file-sharing, estimates that the album was downloaded more than 100,000 times on free networks in the first 24 hours after Radiohead delivered it to fans who had preordered it from its Web site. But Eric Garland, chief executive of Big Champagne, said that by offering the music for as little as zero from their own site, Radiohead “stole market share” from pirate networks.
Mr. Edge said that sales of 100,000 copies of the album this week would be “almost certainly less than the number we would have achieved if we hadn’t” offered it as a digital download. But the band still came out ahead, he said, in part because it attracted so many fans to Radiohead’s Web site, where it collected e-mail addresses from fans looking to acquire the album.
The band has not said how many copies it distributed. Now that the CD is in shops, some fans who paid for the initial downloads may have been tempted to buy the album, in effect, for a second time. But Steve Gottlieb, chief of the independent label TVT Records, said he believed the sales mainly reflected fans who were acquiring the music for the first time.
“Radiohead is one of those really big groups that appeals to people outside the intensely pirating demographic of 16 to 29,” he said. “To the extent Radiohead still has a significant audience in its 30s and 40s, there’s a bigger audience of those people who will still pick up something at Best Buy or don’t want to bother with figuring out how to go to a Radiohead Web site and track it down.”
Still, Mr. Gottlieb said, the sales suggested that the band’s name-your-price offering, and fans’ subsequent free sharing of files, had taken a toll. “Clearly we can’t give it all away and expect to sell CDs,” he said.
But Radiohead will have yet more opportunities to gain fans. The band said yesterday that it planned to perform in more than 20 North American cities this year.
Showing posts with label CD. Show all posts
Showing posts with label CD. Show all posts
Thursday, January 10, 2008
In Songwriting News - The Billboard Digital Music Live conference at CES
Check out this January 9, 2008 article from pcworld.com about digital record sales:
Digital Music Industry Challenged to Follow Fans' Lead
Music industry executives at the Billboard Digital Music Live conference at CES discussed what the industry needs to do to meet the needs of music fans who appear to be running the show.
Elizabeth Montalbano, IDG News Service
LAS VEGAS -- At the Consumer Electronics Show this year it's clear that consumers are making choices that are driving industry changes, and nowhere is that more evident than in the digital-music business.
Music industry and technology executives convened for the Billboard Digital Music Live conference Wednesday to talk about what those in the business need to do to meet the needs of music fans who appear to be running the show.
"2008 has to be the year we get real or the business as we know it goes away," said Fred Goldring, an entertainment attorney with Goldring Hertz & Lichtenstein LLP. He said that consumers will access music regardless of whether artists, labels, publishers and digital-music distributors approve of the means or receive money from the exchange.
Since Napster turned the music industry on its ear in 2000, the digital-music business has been rocked by dissent among artists, labels, publishers and the breed of technology companies distributing and selling music online that emerged in Napster's wake. All of these parties want to derive revenue from their contribution to the business, but have been arguing for years about how everyone should get paid.
As this drama unfolds behind the scenes, consumers continue to find ways to bypass DRM (digital rights management) and emerging revenue models to download and share music, making it not just impossible for the music industry to make money from traditional means, but also difficult to make money at all. In the meantime, artists have embarked on their own revolution, using social-networking sites and other online means to get their music directly in the hands of fans and finding other ways to derive revenue from their work.
An example of the latter is the controversial and much-publicized move by U.K. rock band Radiohead to sell its new album "In Rainbows" direct to consumers without going through its record label or Apple's iTunes Store. The album first went on sale in October on Radiohead's Web site, allowing users to choose their price for the record; a few weeks ago, Radiohead released the record to iTunes and other retail channels.
Scenarios like this will continue to happen, both among major-label artists and independent or unsigned artists. Whether they work is not the point; it's what the industry will do to work within these models and support them rather than continue to resist that will decide how the industry will fare in the future, said Terry McBride, CEO of Nettwerk Music Group. Nettwerk is a Canadian privately owned record label and artist management company.
"The corporate side of it has to shift," he said. "The corporate people have not allowed us to do what we know we have to do. This is about the consumer, about monetizing their behavior and giving them choice. For all of the people that believe in controlling the IP and how [the music] gets to consumers, the game is over. It was over seven or eight years ago, and soon your business will be over."
Goldring suggested the industry focus on business models built solely around the networks that allow users to download music and find ways for everyone involved to make money that way.
"We have to stop trying to keep our old business alive .. and figure out how to monetize the pipes [music files] are going through," he said.
Barney Wragg, head of digital, EMI Music Group, said that in a perfect world, scenarios like the ones McBride and Goldring propose would exist. However, the needs of different artists vary, and there are still concerns about the integrity of their work and how they will be compensated for it as new business models emerge.
"I have artists that don't want to be involved in certain business models," he said. "I have to balance those conflicts. ... There are a whole bunch of artists who are worried about how they're going to get paid, and what this is going to do about their representation or their art."
Allowing their music to be distributed through ad-supported online music services is a particularly hard sell for artists who worry that having their work be associated with advertising "devalues" it, Wragg added.
Subscription-based models such as Rhapsody that don't give users ownership of their music have struggled to take off. Wragg compared music fans' view of subscription models to the early days of e-mail, when people wanted files to be stored locally and were adverse to the concept of e-mail existing only on a remote server.
That concept changed over time, as will the perception of subscriptions if they are marketed to consumers in the right way, he said.
Another factor that should boost the popularity of subscriptions in the future is the increased spending of younger fans who are naturally more comfortable with the idea of not owning their music, said Matthew DeFilippis, vice president of new media and technology for the American Society of Composers, Authors and Publishers, a membership organization representing the rights of artists.
"Ownership is a generational thing," he said. "Even though kids today are buying from iTunes, I don't think they care about owning a thing. As they become the new generation of homeowners and bill payers, [music subscription] will be moving toward a cable [TV] model."
Digital Music Industry Challenged to Follow Fans' Lead
Music industry executives at the Billboard Digital Music Live conference at CES discussed what the industry needs to do to meet the needs of music fans who appear to be running the show.
Elizabeth Montalbano, IDG News Service
LAS VEGAS -- At the Consumer Electronics Show this year it's clear that consumers are making choices that are driving industry changes, and nowhere is that more evident than in the digital-music business.
Music industry and technology executives convened for the Billboard Digital Music Live conference Wednesday to talk about what those in the business need to do to meet the needs of music fans who appear to be running the show.
"2008 has to be the year we get real or the business as we know it goes away," said Fred Goldring, an entertainment attorney with Goldring Hertz & Lichtenstein LLP. He said that consumers will access music regardless of whether artists, labels, publishers and digital-music distributors approve of the means or receive money from the exchange.
Since Napster turned the music industry on its ear in 2000, the digital-music business has been rocked by dissent among artists, labels, publishers and the breed of technology companies distributing and selling music online that emerged in Napster's wake. All of these parties want to derive revenue from their contribution to the business, but have been arguing for years about how everyone should get paid.
As this drama unfolds behind the scenes, consumers continue to find ways to bypass DRM (digital rights management) and emerging revenue models to download and share music, making it not just impossible for the music industry to make money from traditional means, but also difficult to make money at all. In the meantime, artists have embarked on their own revolution, using social-networking sites and other online means to get their music directly in the hands of fans and finding other ways to derive revenue from their work.
An example of the latter is the controversial and much-publicized move by U.K. rock band Radiohead to sell its new album "In Rainbows" direct to consumers without going through its record label or Apple's iTunes Store. The album first went on sale in October on Radiohead's Web site, allowing users to choose their price for the record; a few weeks ago, Radiohead released the record to iTunes and other retail channels.
Scenarios like this will continue to happen, both among major-label artists and independent or unsigned artists. Whether they work is not the point; it's what the industry will do to work within these models and support them rather than continue to resist that will decide how the industry will fare in the future, said Terry McBride, CEO of Nettwerk Music Group. Nettwerk is a Canadian privately owned record label and artist management company.
"The corporate side of it has to shift," he said. "The corporate people have not allowed us to do what we know we have to do. This is about the consumer, about monetizing their behavior and giving them choice. For all of the people that believe in controlling the IP and how [the music] gets to consumers, the game is over. It was over seven or eight years ago, and soon your business will be over."
Goldring suggested the industry focus on business models built solely around the networks that allow users to download music and find ways for everyone involved to make money that way.
"We have to stop trying to keep our old business alive .. and figure out how to monetize the pipes [music files] are going through," he said.
Barney Wragg, head of digital, EMI Music Group, said that in a perfect world, scenarios like the ones McBride and Goldring propose would exist. However, the needs of different artists vary, and there are still concerns about the integrity of their work and how they will be compensated for it as new business models emerge.
"I have artists that don't want to be involved in certain business models," he said. "I have to balance those conflicts. ... There are a whole bunch of artists who are worried about how they're going to get paid, and what this is going to do about their representation or their art."
Allowing their music to be distributed through ad-supported online music services is a particularly hard sell for artists who worry that having their work be associated with advertising "devalues" it, Wragg added.
Subscription-based models such as Rhapsody that don't give users ownership of their music have struggled to take off. Wragg compared music fans' view of subscription models to the early days of e-mail, when people wanted files to be stored locally and were adverse to the concept of e-mail existing only on a remote server.
That concept changed over time, as will the perception of subscriptions if they are marketed to consumers in the right way, he said.
Another factor that should boost the popularity of subscriptions in the future is the increased spending of younger fans who are naturally more comfortable with the idea of not owning their music, said Matthew DeFilippis, vice president of new media and technology for the American Society of Composers, Authors and Publishers, a membership organization representing the rights of artists.
"Ownership is a generational thing," he said. "Even though kids today are buying from iTunes, I don't think they care about owning a thing. As they become the new generation of homeowners and bill payers, [music subscription] will be moving toward a cable [TV] model."
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