Digital Audio Insider -- the economics of music and other digital content

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Digital Audio Insider is David Harrell's blog about the economics of music and other digital content. I write from the perspective of a musican who has self-released four albums with the indie rock band the Layaways.

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April 19, 2007

Amazon.com Roundup
by David Harrell

As everyone's heard by now, Amazon.com (NASDAQ:AMZN) is not buying eMusic, though there are new reports about an imminent launch of an Amazon download store.

Swindleeeee had a great series of posts over the last few weeks about pricing and other possibilities for an Amazon.com download service that I've been meaning to link to. (Part 2 kindly refers to a proposal of mine from last year about digital pricing -- charge more for the first download someone purchases from an album, with lower prices for subsequent downloads from the same release.)

Amazon predictions, part 1: The future of online music stores?

Amazon predictions, part 2: Selling digital music and CDs together

Amazon predictions, part 3: Adapting the eMusic subscription model

Amazon predictions, part 4: Additional digital music-related services

Final thoughts (for now) on an Amazon digital music service

Hypebot's advice for Amazon

Amazon rumors continued

And here are the Hypebot pieces referred to in the Swindleeeee posts:

Is Amazon's Music Strategy Stalled?

Part 2: Is Amazon's Music Strategy Stalled?

I don't have much to add to this analysis right now, except this:

Whatever price point Amazon.com arrives at for digital downloads, I'm betting that the net revenues for self-released musicians will be more than they are for selling physical CDs via Amazon.com's Advantage program.

As I wrote last year, due to a 55/45 split with sellers (with the 55% going to Amazon) and a restocking policy that basically requires you to mail in discs one at a time, selling CDs through Amazon.com is one of the least lucrative options for the self-released musician. (Though it still makes sense to do so.) We actually make as much or more from full-album downloads from eMusic as from selling a physical CD for $9.99 via Amazon.com.

Assuming the standard 65% to 70% cut to the label (and the 9% cut we pay to our digital distributor), that should be the case with Amazon.com downloads as well.

related: Digital Sales More Profitable than Amazon.com CD Sales CD Baby Delivers Digital Content To Amazon

tags: digital music Amazon.com AMZN eMusic

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THE LAYAWAYS

Out Now -- "Maybe Next Year" -- The New Holiday Album:

"This is a sweet treat, deliciously musical without being overbaked for mass media consumption." -- Hyperbolium

"Perfect listening to accompany whatever holiday preparations you may be making today." -- Bag of Songs

O Christmas Tree - free mp3 lyrics and song details
Away In A Manger - free mp3

Download from eMusic, iTunes, Amazon MP3, or Bandcamp. Listen to free streams at Last.fm.

"...about as melodic and hooky as indie pop can get." -- Absolute Powerpop

"Their laid-back, '60s era sounds are absolutely delightening." -- 3hive

"...melodic, garage-influenced shoegaze." -- RCRD LBL

Where The Conversation Ends - free mp3
January - free mp3
Keep It To Yourself - free mp3

Download from eMusic, iTunes, Amazon MP3, or CD Baby, stream it at Last.fm or Napster.

"The Layaways make fine indie pop. Hushed vocals interweave with understated buzzing guitars. The whole LP is a revelation from the start." -- Lost Music

"Catchy Guided by Voices-like rockers who lay it on sweetly and sincerely, just like Lionel Richie." -- WRUV Radio

Silence - free mp3 lyrics and song details
The Long Night - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

"These are songs that you want to take home with you, curl up with, hold them close -- and pray that they are still with you when you wake up." -- The Big Takeover

Let Me In - free mp3
Ocean Blue - free mp3

Download from eMusic, Amazon MP3, or iTunes, stream it at Last.fm, Napster, or Rhapsody.

More Layaways downloads:

the layaways website