Archive for: music on spotify

Blink 182’s Tom DeLonge To Release Freemium Album – Angels and Airwaves

From the luxurious position of having a major label deal with his main band, Blink 182, singer and guitarist Tom DeLonge can afford to experiment with his other project, Angels And Airwaves. The band are releasing their third album, imaginitively entitled “Love”, without the support of a label. The first two A&A albums were put out through Geffen, and sold in the hundreds of thousands, but “Love” will be offered as a free download, with premium versions comprising extra tracks and bonus material available to buy. The band will also be touring and selling $6.95 a month ‘memberships’ on their website. The hope is that these and other efforts will compensate for the recording and promotion costs of the album. DeLonge told Billboard in an interview that they’re hoping to get 20 million downloads of the album, and that:

“If only 5% of that 20 million came back and interacted with the Modlife platform that powers our Web site, the revenue would far exceed anything we’d make from a major label, in any way, shape or form,”

In this blogger’s opinion a 5% response rate is very optimistic, but it’s great to see bands pioneering different propositions in the modern digital-heavy marketplace. Presumably the album won’t be available on iTunes, or any of the other music stores RouteNote distributes to, which will mean that a lot of music users will not be able to access it through their normal channels, a closing of avenues which may cost a lot to replace in terms of product awareness.

pooplord

Warner Goes Shy on Music Startups

Warner Music Group has had mixed experiences with investing in music startups; losing out heavily on their purchase of Imeem and Lala, and their bad experiences look like preventing them from investing in any other online startups. Their spokesman Stephen Bryan, during a panel at Midem, pointed out the difficulty of trying to run a company subsidiary with opposite interests to its owner. Imeem and Lala were attracting customers with as much music as possible for as little investment (whether that be in terms of ad views or dollars paid), while WMG was concerned to make as much money for each stream or download of every song in their catalogue. A reluctance to find themselves in this ’stuck in the middle’ position again and the money they burnt means that they profess reluctance to own any more services.

Bryan did state that they’re very happy with their relationship with Spotify, which is going from strength to strength in terms of both users and advertising revenue. The less likely WMG is to invest in new services, the better Spotify will be pleased, as Warner will be more likely to channel all their efforts into promoting their content with their part owned partner.

The Sometimes Happens On A Friday Playlist

How much sample makes a cover? Some of the biggest selling rap songs do little more than add lyrics to great songs someone else has written. I don’t want to detract from the achievments of the superbly successful rap artists in this playlist, success is hard to argue with. On the contrary, it’s just interesting to hear the songs that they’ve given a second shot at the charts.

http://www.youtube.com/view_play_list?p=413A0285E7F88C0B

…And I Agreed

An interesting opinion piece from The Huffington Post on the future of the music industry, confirming our long held belief that the head-in-the sand, resistive approach from the big record labels when it comes to making their music more available online is untenable.

It’s unreasonable and naive to expect record labels to go down without a fight, but it’s no longer a matter of if — it’s a matter of when — they’ll embrace these changes. The smart ones will adapt their model toward online music — just as the New York Times and Washington Post have adapted to online news. It won’t be easy for them, but it’ll be great for musicians and music fans.

I applaud anyone who encourages the big players to be more open and forward thinking about facilitating legal channels of online music consumption like Spotify, Last.FM and MOG, and I urge you, gentle reader to get your music up online with these stores; not only are they great for attracting new fans, but they’re increasingly popular with advertisers, which means more revenue for you.

Digital Music Distributors Compared (again)

It’s been a while since we last ran through the comparison between our digital distribution service and those of our competitors. Let’s open with a table looking at the USD$ price of signing up various types of release to a few of the major digital distributors out there on the net, which we’ll follow with links to the information pages from which these figures were derived, and a brief look at the pros and cons of each service. [A UPC is a barcode, necessary for most online stores to identify your release as a unique product.]

CD Baby – First thing to note is that signing up to CD Baby’s digital service means you also have to sign up to their physical program, and send them at least 5 physical CD’s (click and see step 2 of this page). [You can get physical distribution through RouteNote via Amazon's on demand service] On top of the signup fee, you’ll also need to pay them $20 to set up a UPC for you [we do this for free], then they’ll take 9% of the revenue that comes back from their online retail partners [slightly less than our 10%, but we're not charging you any upfront fees]. Their signup fee is a flat, per release deal, although they say that single pricing is “coming soon”.

Ditto Music – To err on the side of caution we’ve chosen the cheapest of Ditto’s package deals and options; they’ve got a whole raft of them, from £24 a year for single store distribution (only to iTunes and Spotify) up to £50 for premium or dance store distribution, with add ons like chart registration (£55) and iTunes fast-tracking (£70) and pre-releases (£25) that could end up costing a lot more. All their packages come with a £24 per year administration fee on top of the signup costs. Their payments system is based on RoyaltyShare’s platform, which is a reassurance in terms of their legitimacy, but it does bite into your revenues, as RS take a slice of the back end, of course, whoever you get paid by there will always be transaction charges (we use PayPal and do our own accounting).

DigitalMusicDistribution.co.uk (DMD) – This deal information document makes us feel very nervous. The company doesn’t seem to have seen fit to run their deal memo through a spellchecker, so it seems unlikely they will have run it past a lawyer. Their flat fee service involves you paying £100 [!] upfront for a 6 month release, after which your music will be removed from any services they uploaded it to, so our table has them in for double to make up the year. It gets even more worrying – they ask that you send the money directly to them by PayPal with a payment tag attached explaining what you want to buy from them, and then they’ll contact you… I’m sure you can email them first and open a dialogue, but I’d need some pretty serious assurance that my money was safe before I sent it. This can’t ever be an issue with us, as money only ever flows one way. From us, to you.

Emubands – UK based, with a flat fee up front model, their lack of an annual subscription fee makes them the most efficient of our competitors, but their admin process is offline; meaning you have to send them a CD and a cheque and co-ordinate the upload and distribution remotely. With us, you can do it all from your computer, and monitor your release, your sales data, and what payments are owed at any time. You’d also have to make more than $1,400 worth of sales through iTunes before you had spent the equivalent of an album’s sign up fee with Emubands on our back end percentage (a dollar on iTunes means about 58c in your pocket with us).

Musicadium – Musicadium have a flat fee system, outlined in this document [pg.4] and based on how many stores you want your music to end up in, rather than how many tracks your release is. You have to pay Aussie sales tax on their fees, which you can claim back from the Australian government if you send them the receipt, and they have a AUD$20 annual renewal fee on top of this, if you want to stay with them after the 1st year.

RouteNote – This is us. We don’t charge you anything for uploading, subscription, hosting or anything else. We just take a straightforward 10% from the retail revenue of your tracks. This means that we want you to succeed, and we don’t ask you to pay us for the privilege of being a part of your success. If you’re selling millions of dollars worth of music, then you aren’t going to sign up with us, as the 10% gets big, but then, you’re probably signed to one of the big 4 anyway, and things get a lot more complicated in that case. We’re here for independent artists looking to self-release music without having to cross someone’s palm with silver to get their music up online – hopefully this is you!

The Gene Pool – Charge exactly the same back end rate as we do, but with an added fee on top, and distributing to less stores. This should be an easy decision for you to make.

Tunecore – They have headline package prices for singles and albums, but once you start getting into the nitty gritty of their pricing, things get a bit more expensive. The numbers above are based on their $0.99 per upload per track to a release, and then $0.99 per online store you want that release to go into. They also make a $19.98 a year maintenance charge per release, so your costs can start adding up once you’ve got a few different releases online.

A lot of these stores cry up the huge number of retail partners that they’ve got [Ditto claim 700!], but a lot of these are duplications, counting the iTunes stores in different territories as separate entities, that kind of thing. We try and keep it simpler than that, deal with the major retailers, and only count them all once. It is important to keep in mind just how small a share of the market the minority stores have; iTunes represented about 88% of the American market way back in ‘06 and has been growing since; we’ve done more analysis of their market share in this previous post. This means that once you get past the top 3 retailers, the additional revenue streams from the rest of the market are comparatively very small.

There are a few other distribution houses out there that don’t deign to put their deals out on the net for people to see – if you’ve got experience of working with The Orchard, Ingrooves, IODA or anyone else and would like to contribute to this discussion, please comment and let us know what you think of their services. You can also check out our previous post comparing digital distribution services that goes through some different scenarios to this one – read it by clicking here.

[EDIT: - I neglected to mention Zimbalam, another of our competitors based in France. They have a slightly bigger store list than us, take the same back end percentage (10%) and charge a £20 fee for singles, £30 for albums)]

Spotify, MOG, Streaming, Piracy and the Future of Digital Music

The debate on music piracy is a bit like that on global warming; vocal and vehement, and extremely polarised (pardon the pun). Evidence can be produced to support the most extreme opinions, and is wrangled over until those in the middle don’t know what is believable. Consensus seems to be that even though music pirates are active music fans, and likely to be buying music as well as ’stealing’ it online , piracy is damaging to sales of actual music tracks, although this may be slightly offset by increased gig attendance and other types of premium content purchase – box sets, t-shirts etc.

It also seems to be accepted that legal methods of ad supported, free-to-the-consumer streaming is the best way of combating the rise of piracy – the great user experience that Spotify has been able to offer has seen it expand faster than it can deal with; attracting users to use a great free streaming service isn’t hard, but finding a way of profiting from all those users is, balancing ad revenue against streaming and licensing costs, and Spotify’s launch in the States has had to be delayed while they evolve their model, and figure out how to move people onto their £10 a month premium service.

While they figure this out, MOG is stepping up to the plate in the States with their £5 a month subscription only model, that allows playlisting and file searching in a pretty similar way to Spotify’s interface [see the video at the bottom of this post]. A poll conducted by Demos (a company that sends people out with clipboards) suggests that revenue (income and adoption) would be maximised at the £5 price point:

But this doesn’t account for the costs inherent in delivering the amount of music that people tend to consume through such streaming services; leaving the computer streaming music all day, an individual could incur a lot of charges for their service provider.

So which footpath of digital development is going to turn out to be the music superhighway of the future? In my humble opinion, it’s going to come down to user experience: if we discount piracy as a viable future for the industry (no revenue means no artists) then we’re left with paying per track, either for streams or downloads, or for a month on month subscription service. These will remain as competing options, probably with iTunes still in pole position of the download market, given it’s current market dominance, and the relentless success of the iPod and it’s cousin the iPhone, and for the rest it’ll come down to whoever provides the slinkiest, most versatile service for whatever the music industry decides is the rock bottom price per stream, plus the minimum streaming cost. I for one hope that the big 4 accept thatad-supported music streaming is the best and only real way of putting an end to piracy, that they come to terms with the smaller license fee and infrastructure that will be demanded by this model. Of the options currently available, I think that Spotify has the most user friendly platform, I’m proud that we’re working with them, and I suggest that you upload your music to their service, via RouteNote’s digital music distribution platform right…. Now.