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home about/contact 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. My personal website has links to my LinkedIn and Google+ pages and you can send e-mail to david [at] thelayaways [dot] com. Support If you enjoy this site, please consider downloading a Layaways track or album from iTunes, Amazon MP3, Bandcamp, or eMusic. CDs are available from CD Baby and Amazon. links music/media/tech: Analog Industries Ars Technica AppleInsider Brad Sucks Blog Broken Record Digital Music News Duke Listens Future of Music Coalition Blog Hypebot LA Times Technology Blog The ListeNerd Medialoper Mediashift MP3 Insider Music Ally Music Machinery Music Think Tank MusicTank The Music Void New Music Strategies Online Fandom Pakman's Blog RAIN Rough Type RoughlyDrafted Swindleeeee TuneTuzer Virtual Economics economics/markets: The Big Picture Core Economics Freakonomics The Long Tail Marginal Revolution The Undercover Economist mp3/music: 17 Dots 3hive Fingertips Shake Your Fist Sounds Like the 80s Unleash the Love archives January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 April 2012 May 2012 June 2012 August 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 June 2013 August 2013 February 2014 March 2014 September 2014 December 2014 March 2015 October 2015 November 2015 December 2015 October 2016 May 2017 |
December 31, 2007 Digital Audio Insider 2007 Year-End Roundupby David Harrell Here's a roundup of the Digital Audio Insider posts that got the most traffic and/or attention/responses/links from other sites in 2007: By the Numbers: Using Last.fm Statistics to Quantify Audience Devotion One thing that music sales figures don't tell you is how much people actually like (and listen to) the music they've acquired. While artists/record companies are initially competing for your attention and dollars, after you've bought the music, they're still competing for your listening time. And it seems likely that success in this competition is the best indicator of the future willingness of an act's audience to buy its music, go to live shows, etc. read the full post The Digital Pricing Conundrum Part IV: The Loss of Resale ...I'm reluctant to assign a specific dollar amount to the loss of resale premium, in isolation from the other differences between physical CDs and digital downloads. However, for the subset of consumers who truly care about resale, it seems fair to say that digital albums need to be priced approximately three to five dollars below the total cost of the equivalent CD to compensate for the loss of a resale value. (At least for recent, top-selling albums.) read the full post Going Postal Despite the growing use of digital downloads by music fans (and the increasingly large role of mp3 blogs in promoting music) the physical CD isn't going away any time soon. Especially for sending your music to reviewers and radio stations. Very few (if any) college radio stations are going to deal with an mp3 download. Nor will print publications. It's not cheap, and postage is a big part of the overall cost. The cost of mailing a CD (in a jewel case) exceeds that of a manufactured CD itself. And it just got pricier... read the full post Treatment of Longer Songs by eMusic ...there is a mechanism in the eMusic model that addresses these issues -- to a degree. A reader was kind enough to share eMusic's breakdown of how it counts longer-than-average tracks when computing payouts to labels. read the full post To Free or Not to Free That's the question we're trying to answer as we finish our third album -- should we give away a few songs as mp3s (as we did with the first two discs and a freebie Christmas EP) or should we post free mp3 files for all of the tracks on the disc? read the full post Price Elasticity of Demand for McCartney It's getting decent reviews, but I was in no rush to buy the new Paul McCartney album, either on CD or as an iTunes download. But when it showed up today in eMusic for the equivalent of $3.25 (based on my 40-downloads-for-$9.99 plan), I didn't think twice about nabbing it. read the full post Lala.com Owes Me Sixty Cents ...I can't help wondering if Lala.com is basically selling digital downloads through the mail, at least to a portion of its members. That is, despite warnings in the user agreement, it's easy enough to rip mp3s from every disc before passing it along in the lala.com system... read the full post Thanks to all who read, linked, e-mailed, and commented -- happy 2008! tags: digital music 2007 2007 roundup link 0 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet December 21, 2007 Christmas Layawaysby David Harrell Late last year, my band the Layaways recorded a quickie Christmas mini-EP and posted it online as a holiday freebie. Here's our "indie disco" take of "O Christmas Tree" and instrumental versions of two holiday standards: O Christmas Tree - free mp3 Joy to the World - free mp3 Silent Night - free mp3 Posting will probably be light over the next couple of weeks, so happy holidays to everyone -- see you in 2008! tags: digital music free Christmas music the Layaways link 2 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet December 20, 2007 David Byrne Disses iTunes?by David Harrell Former Talking Head David Byrne is a smart guy, but I'm a little perplexed by his take on iTunes in his Wired piece on Survival Strategies for Emerging Artists -- and Megastars, where he lists six music distribution models. The only mention of iTunes is a somewhat negative one, with iTunes in context of a standard record deal. This large graphic shows that artists can make less from an iTunes album sale that from a physical CD. That's certainly the case for a standard record deal. The same royalty rate applied to a record company's share of an iTunes album transaction (approximately $7.00 for a $9.99 album) results in less revenue for the artist than from the sale of CD with a higher list price. But when Byrne gets to the business model at the end of his list -- the totally self-released model -- he makes no mention of iTunes as sales outlet, even though an iTunes sale for a self-released artist is fairly lucrative. A $9.99 iTunes sale for an artist distributed by CD Baby results in a payment of $6.37 and -- in an exchange for a small annual maintenance fee -- artists distributed by TuneCore can make approximately seven bucks for each sale. For the self-distribution model, Byrne only writes about selling CDs at gigs and online, and downloads from your own website. Could it be that decreased royalties from iTunes sales of Talking Heads albums have simply soured him on the iTunes store, even for non-traditional models? Labels: David Byrne, iTunes, self-released musicians link 2 comments e-mail listen to the Layaways on SpotifyFollow @digitalaudio Tweet December 14, 2007 Friday Flashback Fun: Je Suis Un Rock Starby David Harrell I downloaded Rolling Stones bassist Bill Wyman's 1981 solo hit "Je Suis Un Rock Star" from eMusic, but the audio alone can't compare to the video, with Bill getting all flirty with the camera: Given Wyman's later marriage to a teenager, the "they'll think I'm your dad, and you're my daughter" line, with Bill's accompanying smirk, is, uh, a tad disturbing... Labels: 1980s, 1981, Bill Wyman, Friday Flashback Fun, The Rolling Stones link 0 comments e-mail listen to the Layaways on SpotifyFollow @digitalaudio Tweet December 13, 2007 More eMusic Payouts: Different Per-Song Amountsby David Harrell Another small batch of eMusic sales, for the third quarter of 2007, showed up in our CD Baby account. Interesting, we were paid -- before CD Baby takes its 9% cut -- approximately 33 cents for some downloads and 25.5 cents for others. My guess is that the smaller amount is for downloads within the U.S. and the larger payment is for downloads from eMusic subscribers in the U.K. and/or Europe. Which makes sense, as eMusic charges non-US subscribers more, in addition to a 17% value-added tax that is built into the subscription prices. (See this Swindleeeee post for more details about international eMusic subscription rates.) One other difference between U.S. and U.K./Europe downloads is that eMusic doesn't withhold mechanical royalties for the U.S. That is, payments from eMusic to labels and artists "include" the mechanical royalty, currently 9.1 cents for recordings less than five minutes and 12 seconds in duration. For the U.K. and Europe, eMusic makes a separate payment to Buma/Stemra for the mechanical royalty for each download. I don't know the statutory rates for mechanical royalties outside of the U.S., but if they're approximately equal to U.S. rates, the total compensation for a European eMusic download approaches or exceeds 40 cents a track. See More On eMusic Payouts for additional information on how eMusic shares subscription revenue with labels. tags: digital music eMusic mechanical royalties link 0 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet December 10, 2007 Monday Odds and Ends: The Radiohead Modelby David Harrell The "Radiohead Payment Model" made the list for NY Times Magazine's Annual Year in Ideas feature: But it's a bit unrealistic to expect five dour introverts from Oxfordshire to come up with a universal fix to save the record industry. The Radiohead payment scheme, whatever the final tally, worked for Radiohead. (It may be portable; Paste, a magazine devoted to indie rock, ran a monthlong pay-what-you-want subscription deal in the wake of "In Rainbows.") And yet at least some aspects of the old model may still prove useful. The CD of "In Rainbows" -- an actual, tactile, old-economy product -- will be available in record stores on Jan. 1. And EMI, the band's spurned label, has proved resourceful itself, quickly assembling a Radiohead boxed set in time for the holidays, happily riding on publicity it didn't pay a thing to create.Wired's Listening Post has an interview with Tim Burgess of the Charlatans about the band's decision (pre-Radiohead announcement) to give its new album away: Well, we knew that CD sales were going down really badly, and we knew all about this peer-to-peer ratio, where 1 legal download is like 51 illegal downloads. So we thought giving it away for free is like -- "bang, in your face" -- giving it away for free has a really big punch. Whereas Radiohead... I love that idea. They're a genius band, and what they're doing is really interesting. I think ours is just, kind of different, really.And, from a couple weeks back, Online Fandom's Nancy Baym takes exception to the nomenclature (and credit) for the Radiohead model: I'm all for self releasing your music when it's feasible, but what's with giving Radiohead the credit for an idea hundreds, nay thousands, of other bands have been doing for years? Silly.tags: digital music free music the Radiohead model link 0 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet December 07, 2007 Friday Flashback Fun: Porter Wagoner and Dolly Partonby David Harrell The late Porter Wagoner and Dolly Parton are surprisingly funky on "Better Move It On Home." And here's the story behind my new favorite album cover -- Wagoner's "The Cold Hard Facts of Life." Labels: Dolly Parton, Friday Flashback Fun, Porter Wagoner link 1 comments e-mail listen to the Layaways on SpotifyFollow @digitalaudio Tweet December 06, 2007 Thursday Odds and Endsby David Harrell Slate's Fred Kaplan responds to recent pieces by Terry Teachout and Anthony Tommasini about the sound quality of the iPod and mp3 files: It's worth noting that digital audio files will get better, just as compact discs did. (In their first decade, CDs and CD players sounded dreadful, worse than MP3s -- and much worse than some other, less-compressed, downloadable formats -- sound now...) When this future comes, we will all rejoice. In the meantime, to deny or dismiss the sonic differences not only deprecates the depths and delicacies that make music so alluring. It also tells the engineers and manufacturers that they don't need to improve their products, that bad sound is good enough.Royalty Week has a breakdown of iTunes revenues between labels and artists, contrasting the treatment of a download as retail sale vs. a licensing deal (which is the issue behind the lawsuit filed last year by the Allman Brothers Band and Cheap Trick against Sony Records). I found one figure a little confusing. Why would a major label pay a digital aggregator a commission of nearly 15 cents for every iTunes download? CD Baby will get you into iTunes for just a 9% cut, and TuneCore doesn't even take a percentage -- just a flat yearly fee. I have to assume the aggregator is providing some major promotional work, otherwise a 15-cent per-song fee seems pricey. Finally, a little off-topic, but perhaps of interest for anyone ordering holiday gifts from Amazon.com: In last week's Digital Pricing Conundrum installment, I referred to my informal Amazon.com shipping survey, which revealed that many customers weren't paying for shipping. Via Marginal Revolution, I just found this nifty website -- Amazon Filler Item Finder. Just type in how much more you need to qualify for free shipping from Amazon.com, and it creates a list of products, ranked by price and customer rating, that will put you over the top. tags: digital music iPod iTunes mp3 Amazon.com link 4 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet December 03, 2007 Second City Digitalby David Harrell A couple recent digital music stories from Chicago's weekly alternative papers: In a Chicago Reader column, Miles Raymer mourns the loss of Oink's Pink Palace, and wishes the legit online stores had a similar community aspect: Currently digital music retailers don't seem to have figured out the value of giving their customers the opportunity to interact and form communities. Amazon users can submit reviews to its MP3 store or rattle off their favorite songs with its "Listmania!" function, but there’s no way for them to just talk to one another. There's no way for them to feel like their music expertise is making a difference -- and it goes without saying that customers can't meaningfully influence the store's inventory or how it's organized. No one on Oink would've stood for finding Pink Floyd's The Wall filed under "Dance & DJ," but it's the number two album in that category at Amazon.And New City has a feature on Thrill Jockey (and digital retailer Fina) founder Bettina Richards: "It's not how I consume music personally," she says. "But I also think that it's the way people like to listen to music and acquire music, so if I want to represent my artists I better try to embrace it." She also looks on the bright side. "There are positive things about it -- people can have more music during the day, you don't have to carry a bunch of CDs in your backpack. You carry more music with you so you can spend more time with music, and that's cool. But I'm too old school for that. If I have a record that someone has been like, 'Check this out,' and I like it, I'm gonna go buy it. It doesn't feel like I have it, to me, unless I have it."tags: digital music Oink Thrill Jockey Fina link 0 comments e-mail listen to the Layaways on Spotify Follow @digitalaudio Tweet More Digital Audio Insider: Newer Posts Older Posts |
Subscribe: RSS Feed Add this blog to Del.icio.us, Digg, or Furl. Follow David Harrell on Google+. The Digital Audio Insider Twitter feed: Digital music jobs: Looking to hire? Looking for a job? Check out the digital audio insider job board. Popular Posts A Long Tail Experiment By the Numbers: Using Last.fm Statistics to Quantify Audience Devotion Lala.com Owes Me Sixty Cents An Interview with Jonathan Segel of Camper Van Beethoven Price Elasticity of Demand for McCartney Sony and eMusic: What I Missed The Digital Pricing Conundrum series: Part One Part Two Part Three Part Four 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 |