CDBaby Sale Seems To Have Been Way To Cheap. $22m Is Crazy!!

Derek Sivers earned $22 million from the sale of CD Baby, according to an interview surfacing Thursday.  Sivers sold the company to Disc Makers in early August of this year after breaking ground in the do-it-yourself, or DIY, artist space in the late 90s.  “I knew that was about the right price,” Sivers disclosed to Venture Voice.  “We actually didn’t bicker or negotiate over the price one bit, I just set a price and they said okay.”

According to Sivers, CD Baby pulled revenues of roughly $100 million at the beginning of this year, a fourfold increase over a three-year period.  The company employed 85 people at that point, though Sivers rarely visited the office.  “I really started letting go in 2002,” Sivers shared.

A lot of people are talking about a good winfall for Sivers, but Im really too sure what numbers they are looking at. CdBaby published a report stating their sales from January to July 07, which made up of $21m in revenues, thus by the end of the year Im sure they would have around $50m in revenues. From what I have seen of web based enterprise acquisitions lately, they are normally around 5x revenues, thus placing Cd Baby around the $250m mark. Therefore selling at $22m is just a crazy cheap price and not a winfall!

Other sites who have shared their opinions include, Paidcontent.org, TheDeal.com, Silicon Alley Insider, and Digital Music News.

RouteNote on the Inquisitr Blog

RouteNote is an online music distribution service that provies artists with instant access to a large proportion of the online market.

Using RouteNote is simple: artists upload tracks to the RouteNote catalogue and enter into a non exclusive agreement permitting RouteNote to distribute their music. They then select the outlets they want their music available on and within moments their songs are available for purchase across a range of sites. RouteNote’s cut is highly competitive, with the company taking only 10% of each sale.

The service is aimed at independent musicians looking at ways of distributing their music, and offers a variety of promotional support tools as well. Distribution partners include Napster, Snocap, Samsung Mobile and iTunes.

It’s a neat middle-man service with great rates targeting an interesting niche. If you’re an unsigned muso looking for a leg up, RouteNote is worth a look.

http://www.inquisitr.com/745/routenote-offers-online-music-distribution/

Imeem Is Now Live On RouteNote

Here at RouteNote, we’re constantly trying to find new ways to get your music to earn money for you. To this end, we’ve signed up a new retail partner, imeem. They’re a social network, aimed at introducing their users to new music and video content. While anyone can upload their music to the site, RouteNote artists uploading their music to the site will get a share of the ad revenue imeem makes from anyone visiting their profile pages and listening to their songs.

To start the revenue flowing, you’ll need to revisit the tracks that you want to use on RouteNote and select imeem as one of the retailers for each track. Then create a profile for yourself on imeem and upload the files for the music you’ve selected to your profile. It is very important that you use *exactly* the same file you uploaded to RouteNote for uploading to imeem, as their software matches the files to confirm that your material is the same music we have on file as yours. Without this matching up imeem can’t confirm that you are who we say you are, and will either delete the profile you make, or keep all the money from ad revenues.

If you’re interested in using imeem as a retailer for your music, it’s important that you know what you’re buying into, so please visit their site here: http://www.imeem.com/tour/tourmusic.aspx

Please take the tour and look at their terms and conditions, and if you decide to sign up, we’ll see you onsite!

Last.fm Is Now Added To RouteNote – Opt In Now!


Here at RouteNote we are always trying to find ways to improve our service. With so many new music companies appearing online, we thought it was about time we started to sign more agreements with them. Our most recent addition is Last.fm. Last.fm is a UK-based Internet radio and music community website, founded in 2002. It claims over 21 million active users based in more than 200 countries. On 30 May 2007, CBS Interactive acquired Last.fm for £140m.

RouteNote artists will now be able to opt in to Last.fm. Last.fm will be paying royalties at the end of every quarter, with the first available on October 31st. Royalties will be paid for every time your track is played by on the Last.fm site or off site using their tools.

How do I opt in? If you haven’t uploaded your music yet, then head over to Single or Album upload and you will find the last.fm in our retail partner stores. If you want to opt in with any of your current online tracks, then go to your My Content section, then edit each track, with ticking the box for last.fm in the retail partners.

We hope that adding Last.fm to our partners will help all our artists improve their royalties.

7Digital Launched Universal Music into Their Catalog

7digital (the UK based mp3 store) has started selling music from Universal Music today. This is the first time in Europe the tracks have been offered in 320k mp3’s, and seems to be selling both the new releases and its back catalog.

Hypebot mentions that it is quite strange that there was no formal press release by either party. Here at RouteNote we would be very keen to talk to a representative from 7digital about including our catalog in their system.

Napster Open to Sale. This Was Definitely On The Cards

Napster has hinted that the company is up for sale again, saying in its response to a dissident shareholder group that the company is once again exploring possible strategic alternatives, and has retained UBS Investment Bank to assist in the process. The company hired UBS two years ago to explore a possible sale, but no deal emerged. Napster informed shareholders of the move in a letter that also said the company believes that three proposed dissident board candidates are “unqualified.”

The company said the dissident candidates “have offered no specific business plan, other than suggesting a vague review of Napster’s business,” and also “have no significant ownership in Napster and, in fact, have been frequent sellers of Napster stock.”

Napster instead urged shareholders to re-elect its current slate of independent directors.

Source: DMW Media

Limewire Store Signs The Orchard and Adds 2 Million Tracks To Its Catalog

Lime Wire LLC (the company) has announced a deal with The Orchard, a large digital distributor for independent artists and small labels. The deal will effectively double the amount of music available in the LimeWire Store to more than 2 million tracks.

The LimeWire Store launched in the spring of 2008 selling 256kbps DRM-free MP3s from Redeye, Nettwerk Music Group, IRIS, RouteNote and others. The store also offers features exclusive releases and targeted marketing opportunities.

Here at RouteNote we haven’t found Limewire to be a successful partner at all and have since stop delivering content. They seem to not even respond to our emails, which is not a good sign.

BBC Worldwide Plans Ad-Supported Music Service

BBC Worldwide is working on an ad-supported music service that would offer free streaming or paid downloads of songs and videos from the BBC archives, including live performances from its “Top of the Pops” and “Live Lounge” on Radio 1, New Media Age reported.

The service is expected to launch next year with at least 1,000 tracks, and the BBC is reportedly negotiating rights with record labels including EMI.

Ads on the streaming content would comprise pre-roll and display ads sold by the BBC and served by DoubleClick.

Cloud Speakers Music Aggregator Receives Funding

Cloudspeakers, an aggregator of music reviews, streaming tracks and music videos, said that it has received an investment from Veronica Holding. Financial details of the deal were not disclosed.

Founded in 2007, Netherlands-based Cloudspeakers aggregates legal, music-related links from a range of sources, such as Pitchfork Media, Yahoo Music, XLR8R and PopMatters.

The company will use the new funds to develop new services, including a music recommendation tool, and to pursue syndication of its content on other sites.