Archive for: Digital
Music Ally has reported that over 445,000 people illegally downloaded the new U2 album. All these downloaded were alleged to happen between the 18th of February till the 3rd of March from BitTorrent sites.
The chart supplied by the company shows the spike in downloads following the album’s leak in February, apparently due to it being accidentally made available for sale on an Australian digital music store ahead of its official release on 2nd March.
The debate is always would these people have purchased the album if it wasn’t leaked on BitTorrent clients? No one can really answer that question, but I’m sure that certain sales would have happened because of this.
Overall this does make me think that the claims of the Pirate Bay in the last couple weeks that “80 percent of all their torrents are legal”, cant be true.
CNET and the Wall Street Journal are both reporting that Universal Music Group and YouTube are in final negotiations to create a new music videos website, with the working title of Vevo.
The site is intended to feature music videos, artist-related content and interviews. The aim of course is to bring in more high profile brands who arent necessarily interested in advertising on YouTube because of its user-generated content.
It has been mentioned by CNET that the three other major labels have all been approached to join the Vevo service. Im sure this would all work in the same way as Myspace Music in which the major labels all have an equity stake. Myspace Music has amazed me that so many independent labels have come on board with the solution, because they should realise that part of their profits are still going to the major labels. However, with Myspace Music most independent labels need to have their music on the site, so why not make some revenues in the process.
Over at MusicAlly they have pointed out that the new U2 album (No Line On The Horizon) is currently on Amazon’s US Mp3 store for only $3.99. However, because we are based in the UK there is nowhere we can get this album for so cheap, until now. Tesco has taken the step forward and is now selling the new U2 album in a week-long deal for ony £3.97.
This shows that the digital music store price wars are about to heat up! However, you will notice that iTunes never seems to get into these price wars.
We’re aware of the fact that we’re a small company compared to some of our competitors, but our cost to bands is also smaller than most of them. All of our major competitors make a charge for either uploading or hosting your tracks, subscription fees, renewal fees, charges for ISRC codes, different charges based on how many outlets you want your music to appear in, the ways they find of hiding new charges are as innovative as they are various.
We don’t charge you anything until you start making money. Uploading is free, hosting is free, picking different stores is free, in fact everything is free until you sell your first track, at which point we’ll take 10% of the revenue that comes back. You get to keep 90% of everything we make by working together. Ours isn’t the lowest percentage rate in the market: CDbaby offer 91% to their clients, but their upfront charges mean that not only do you have to get your credit card out of your wallet and pay them before you can hope to see any return from selling your music, but you’re also worse off with them than us until you sell more than ten thousand units. The same is true of Tunecore and Musicadium, and the Orchard never get close, as they take 30% of sales revenue for themselves AND charge you $90 up front.
Here’s a little table showing what you’d pay up front to distribute 2 albums over two years through some of the big distro sites (Musicadium deal in AUD, which I’ve converted at today’s rate of 1.549 to the USD).
And here’s another detailing the income you’d get from various levels of sales, again based on distributing 2 albums over 2 years to all the stores RouteNote deals with, with an average per track income of $0.65, which is what you get back from iTunes.
As you get up to the 5k mark, Tunecore begin to pull ahead, it’s all pretty even around 10,000 and there are undeniable differences in the revenue earned when you get up towards to 30k sales mark, but we’re cheaper all the way up there, and the money will only ever flow one way – to you – if you deal with us.
So why are we better than our competitors? For artists starting out on their own, who want to be in control of their own destinies until they can prove the worth of their music, who don’t want to spend up-front money, and who aren’t realistically looking for sales of thirty thousand records in the first year or two, we are cheaper, quicker and much more interested in the success of our artists, because we’re smaller and our own success is that much more closely linked to that of our musical partners (read some of our testimonials!).
We had a response from Musicadium about this post – querying the way we’d worked out the fees mentioned. Here’s how it works out, based on the figures here in their agreement:
2 x upload fee to more than 3 stores = 2 x $99 = $198
2 x barcode (UPC) generation = 2 x $39 = $78
2 x annual renewal fee = 2 x $20 = $40
198 + 78 + 40 = 316
$316AUD / 1.549 = $204.00USD
Although the exchange rate has probably changed by now…
Have you ever wondered how much iTunes account for digital sales online? One of our competitors CD Baby has published their 2008 results which shows that iTunes currently accounts for over 82% of their total digital revenues. This makes me wonder why artists are really keen to get their music in as many places as possible, instead of just focusing on the top retail points and building a base around them and their users.
A recent report by international music trade group IFPI re-affirms Brazil as Latin America’s top digital music market, with revenues doubling in 2008. According to IFPI’s “Digital Music Report 2009,” digital accounts for more than 10% of recorded music sales in Brazil. Eighty percent of those sales are derived from mobile, as opposed to online.
Waves continue their domination of digital music production releasing the first product for their ‘Signature Series’, The Tony Maserati Collection. 
For the amateur producers / engineers that haven’t heard the name, Maserati is the ‘genius’ behind hundreds of hip/hop, RnB, pop chart toppers that include Britney Spears, Beyonce, MJB, David Bowie and Jay-Z. Crap tracks? Maybe. But even the most of ‘anti commerce in music’ must appreaciate the level of quality in mix and production of modern pop music. Maserati is hailed as being the principal archetect of the modern New York pop sound and widely respected as one of the worlds most clinical mixing engineers.
Maserati has worked closely with the guys at Waves Audio to front this collection of plug-ins in an attempt replicate his personal engineering, mixing and production styles.
Maserati says “I’ve been using Waves from the beginning. From dynamics and EQs to special effects, most of the tracks I’ve mixed have Waves on them. Waves did an amazing job turning my personal processing chains into custom plug-ins.”
The Collection includes:
Maserati VX1 Vocal Enhancer
• Maserati B72 Bass Phattener
• Maserati ACG Acoustic Guitar Designer
• Maserati GTi Guitar Toner
• Maserati DRM Drum Slammer
• Maserati HMX Harmonics Generator
Each advertised with high status names, check the waves website for specifics.
Definately worth a look for all kinds of RnB, Hip/hop producers out there and any body else who wants to create a clean, powerful sound.
The Tony Maserati Collection RRPs at around $800 US, but im sure, just like anything else you can torrent the software for free… ooops, did I say that?
In the current climate P2P and Bittorrent file sharing isnt seen as illegal in all countries, but overall it has to be the biggest threat on the music industry because of its nature.
Songbeat has launched a new version of their service which seems to be taking piracy to a new level.
It’s a desktop app that lets users search for music on Seeqpod, Project Playlist, Last.fm and other sites, and then download the files and import them into iTunes or Windows Media Player, or burn them as a CD. It’s free in its basic edition, which only allows 25 downloads, but users have to pay €19.99 for the premium version to download as much as they want.
This has to be illegal! They are now a company that is profiting directly from piracy. Not according to Songbeat: “The downloading of music is not fundamentally illegal. However, it lies in the hands of the user to discern whether or not they have the right to download the particular music file at hand.” Even Musically thinks this’ll end up in court.
(via TechCrunch)
In the last year or so it has been tough times for the major record labels. The majors have not really been moving into the digital as fast as they should, whilst at the same time not understanding the digital business models.
Whilst this still remains the case Universal have released their lastest quarters results, and they seem very surprising to me.
- $3.97 billion revenue for first 3Q’s of ’08
- + 3.5% without currency fluctuations
- + 33% for digital sales which “”more than offset” lower CD sales
- Earnings 21.8% to $516M before deduction of interest, tax and amortization
- Net is lower due to restructuring costs
- Full press release
We’re changing the look and content of our tools section to make it more useful to artists, and we’ll be posting a series of articles to go along with some of the tools we’re putting up.
Things we’re going to be introducing include:
- An iTunes linkmaker tool, to get your fans straight to your music on iTunes
- A widget building guide, to help you make professional looking applications for yourself and fans to post on their websites, myspace pages, etc.
- Links to manufacturers of merchandise
- Links to CD manufacturers
- Guides to selling your own products
If you haven’t already, you can subscribe to this blog via the RSS feed on the right, and get the goodness right to your reader (we’d recommend google’s reader if you don’t use one already…).
