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home about Digital Audio Insider is David Harrell's blog about the economics of digital music. contact Follow the advice of a certain Scottish band to send an e-mail. links music business/tech: Ad-Supported Music Central Analog Industries Ars Technica Apple 2.0 AppleInsider Brad Sucks Blog Broken Record Byte of the Apple CNET Music News Coolfer Digital Music News Digital Noise Duke Listens Epicenter Future of Music Coalition Blog Hypebot Know the Music Biz LA Times Technology Blog The ListeNerd Medialoper MP3 Insider Music Ally Music Machinery Music Think Tank MusicTank New Music Strategies Online Fandom Pampelmoose Penny Distribution Blog RAIN Rough Type Swindleeeee TuneTuzer economics/markets: The Big Picture Core Economics Freakonomics The Long Tail Marginal Revolution Odd Numbers Partially Unexpected The Undercover Economist mp3/music: 17 Dots 3hive Fingertips Shake Your Fist 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 |
March 26, 2009 A Multi-Track Pricing Strategy for iTunes?by David Harrell This bit from the L.A. Times story on the imminent changes in iTunes pricing caught my eye: Crupnick said he doubted a 30-cent price increase would prevent iTunes customers from buying a hot new release from artists like Kelly Clarkson, Flo Rida or Lady Gaga. He noted that offering a discounted second track packaged with a premium priced song from the same artist could boost sales.The idea of charging consumers less for subsequent single-song downloads is something I first proposed back in 2006 in an early post on this blog: But here's an idea for a twist to the variable strategy, one that might be better for all involved parties -- labels, artists, iTunes, and consumers -- than a simple price increase for all new material:I don't know if the "discounted second track" idea was just speculation on the part of NPD's Russ Crupnick, or if he has some inside information about Apple's pricing plans. But if such a plan were implemented, it would both take the sting off the price increase that will be seen for some tracks in the iTunes catalog and encourage the purchase of multiple tracks from the same album. related: The Digital Pricing Conundrum Part III: A New Idea for Variable Pricing tags: digital music iTunes Apple AAPL variable pricing link 0 comments e-mail this post Digg this post follow DAI on Twitter March 23, 2009 New Quarterly Subscriptions from eMusicby David Harrell
No press release yet, but eMusic has added two quarterly plans (90-day plans, to be exact) to its subscription options: 60 Quarterly -- 60 downloads for $19.99The pricing is much more favorable than the monthly plans. The 100 quarterly option would give a subscriber 400 downloads over a 360-day period for $99.96 or 25 cents a track. But the closest equivalent monthly plan, eMusic basic (30 downloads every 30 days for $11.99) gives subscribers 360 downloads in the same time period for a total cost of $143.88 or 40 cents a track. There's a similar disparity between the 60 tracks per quarter and 20 tracks a month plans -- the quarterly plan works out to 33 cents a track while monthly subscribers pay 45 cents a track. tags: digital music eMusic music subscriptions mp3 link 2 comments e-mail this post Digg this post follow DAI on Twitter March 11, 2009 Pitchfork Goes LaLaby David Harrell This might have predated the new site design, but I just noticed that Pitchfork has embraced Lala.com: In the "best new tracks" section, songs are streamed with Lala widgets and the buy links at the top of each album review now include Lala.com. (Previously, there were only links to Insound and eMusic.) Lala.com's an interesting case. As with Rhapsody, Napster, and Last.fm, it offers limited free streams of the songs in its catalog. And you can share songs or albums by embedding a music widget on a blog or website. (In theory, you only get a single Lala stream of any individual song, but if a song appears on multiple albums you can stream the different "versions," even if they're the exact same track. You could also embed a track or album on a web page and then clean your browser's cache after each listen to hear individual songs multiple times.) As is the case with the other sites, the streaming of a song results in a small payment to the artist or record company. But unlike the others, the revenue share isn't coming from ad revenue, as there are no ads within the Lala.com widgets or on Lala.com itself. So where is the money coming from? While there are no ads on the site, Lala.com sells 10-cent "web songs" as well as 89-cent single-song mp3 downloads, mp3 albums, and CDs (which come with free web songs). Evidently, Lala.com is subsidizing the free streams in hopes that they will lead to increased site traffic and music sales. Given the margins on recorded music, it seems like an ambitious goal to compete with services that use ad revenue to pay (or at least partially pay) the artist compensation costs associated with free music streams. As a music fan, I hope it's a viable business model. Lala.com is now my first online destination when I want to hear something that I don't own or have easy access to, and it's also becoming my first choice for embedding my own music. related: The Latest from Lala: The Return of the Dime Store, The New Dime Store, Part 2 tags: digital music free music streams Lala.com Pitchfork link 0 comments e-mail this post Digg this post follow DAI on Twitter March 09, 2009 Monday Odds and Endsby David Harrell I missed this when it came out -- an eMusic press release from January, touting the "Long Tail" download activity of its subscribers. Unlike the research of economist Will Page of PRS (PDF), which found that the majority of 13 million online tracks had not sold a single copy in the past year, eMusic says that approximately 75% of the tracks in its catalog were downloaded in 2008. A couple years ago, I did my own quick analysis of eMusic download activity and found that tracks from 53% of the albums in the eMusic catalog had been downloaded during the previous month. It was a different measure (albums with downloaded tracks vs. individual tracks) than eMusic's, but the numbers seem compatible with eMusic's findings. The PRS website has a nice archive of some of Page's other research and analysis -- topics include the 1,000 fan theory, "In Rainbows" and the displacement of P2P traffic, and lots of other good stuff. The "daily special" Amazon MP3 price for the new U2 album appears to be semi-permanent. The album is still selling for $3.99 as of this morning. Finally, thanks again to all streamed tracks or purchased downloads during last week's pledge drive -- I really appreciate it! tags: digital music the Long Tail eMusic link 0 comments e-mail this post Digg this post follow DAI on Twitter March 06, 2009 Pledge Week, Parts 4 and 5by David Harrell To make up for yesterday's skipped installment, here's a two-fer. Thanks again for listening -- by streaming these songs you're making a micro-donation. And -- if you're feeling generous -- please consider buying a song or album download (or a CD) using the links below. "Splendor and Loss" is probably my favorite recording from our second disc. Unlike the rest of the album, which was tracked as a full band, this one started with just a single acoustic guitar and we overdubbed everything else. Download from iTunes, Amazon MP3, Bandcamp, or eMusic. If you prefer an old-school CD, discs are available at CD Baby, Tonevendor, and Amazon.com. "On Any Given Saturday" has the best back-story of any song on the new album. We had worked up a live cover version of Donna Summer's "Hot Stuff" and played it at several gigs. We liked the backing track, but really didn't want put a cover song on the record. So we recorded the backing track and (very slowly) came up with a new vocal melody and lyrics. Download from iTunes, Amazon MP3, Bandcamp, or eMusic. CDs are available at CD Baby, Tonevendor, and Amazon.com. tags: digital music pledge week the Layaways link 1 comments e-mail this post Digg this post follow DAI on Twitter March 05, 2009 Ignoring Amazon MP3's Bargain Pricesby David Harrell
It was Tuesday's "daily special," but the sale has evidently been extended, as the new U2 album is still priced at $3.99 on Amazon MP3. While the sale price is likely increasing purchases (the album remains at the top of Amazon's album download chart), "No Line On The Horizon" is also the top seller on CD at Amazon ($9.99), as well as the best-selling album in the iTunes store ($9.99). What amazes me, however, is the apparent lack of comparison shopping by many purchasers of digital albums. As Coolfer noted yesterday in a link to this VentureBeat story, the Amazon MP3 store has been fairly aggressive with its pricing for several months now. And while the interoperability of the iTunes music manager, the iTunes store, and the iPod is often touted as the major strategic edge for Apple for selling digital downloads, it's simply not a real advantage. It's no less convenient to purchase and listen to downloads from Amazon MP (or eMusic for that matter) -- the Amazon download manager tool will automatically add your purchases to your iTunes library. While it makes no sense to drive all over town to save a few bucks on a CD, we're talking 15 seconds to check the price at Amazon MP3. I'd never buy an iTunes album without first checking the prices at Amazon. Maybe consumers are just extremely slow or loath to change their shopping habits or perhaps many iTunes shoppers are unaware of the Amazon MP3 store. It is true that the iTunes versions of albums are more likely to contain bonus tracks or digital booklets, though that's not always the case and I'm not sure how much these features are valued. So I can't help wondering when Amazon MP3 will pick up some substantial market share at the expense of the iTunes store -- it seems somewhat inevitable... tags: digital music Amazon MP3 AMZN U2 iTunes Apple AAPL link 3 comments e-mail this post Digg this post follow DAI on Twitter March 04, 2009 Bandcamp 1.0 and Pledge Week, Part 3by David Harrell
Bandcamp rolled out a bunch of nifty new features and declared itself "1.0" The new stuff includes: -- Improved site speed and the move from Bandcamp.mu to Bandcamp.com -- The ability to generate "free download" codes that be given out with merchandise purchases, etc. -- More song/album widgets that can be used by both artists and fans I'll write more about Bandcamp in the near future, but for now I'll just say I'm very impressed with everything I've seen so far. The file format flexibility (128k mp3, 320k mp3, VBR mp3, AAC, Ogg Vorbis, FLAC, and Apple Lossless) is -- as far as I know -- unmatched by any other download store. And I really like the option to offer free 128k mp3 downloads while charging a set rate (or letting buyers choose their own price) for higher-quality files. It seems like a good compromise on the "free music" debate. So for the third installment in the pledge week series, I'm using one of the new Bandcamp widgets to embed "Keep It To Yourself," the lead-off track from "The Space Between," the new Layaways album. The song received a great review when it was featured on the Fingertips music site: Launching off a sonorous, rubbery guitar line that, melodically, echoes the hook from the Kinks' "David Watts," "Keep It To Yourself" has the big-drums/big-chords bash and concise melodicism of some Nuggets-era -- um -- nugget, with a welcome helping of shoegaze drone. The song itself is pithy and unadorned, but the presentation is cool, full-bodied, and impeccably controlled -- not a note or sound is out of place. Unlike the Lala.com widgets, however, streams from a Bandcamp widget currently don't generate any revenue for the artist or label. Which is understandable, given that Bandcamp's business model is still a work in progress and there is no revenue to share. (I wouldn't say this is a huge concern for me right now, given that you can pull your music from the site at any point. Still, I'd want to have more details about possible fees and charges before using Bandcamp pages as the actual music pages on my own site.) Anyway, if you like the track or would like to support this site, please consider buying a download from iTunes, Amazon MP3, Bandcamp, or eMusic. Or, if you prefer an old-school CD, discs are available at CD Baby, Tonevendor, and Amazon.com. Thanks for listening! related: Checking Out Bandcamp, Pledge Week on Digital Audio Insider tags: digital music Bandcamp the Layaways pledge week link 0 comments e-mail this post Digg this post follow DAI on Twitter March 03, 2009 Pledge Week, Part 2by David Harrell Next up for pledge week is "The Answer," from the second Layaways album, "We've Been Lost." Indieworkshop.com described the song as "gorgeous, dreamy pop with hooks galore and some nice harmony vocals on the chorus that seem to announce that it's summer, you're in love, and everything is right with the universe." As noted in the first pledge week post, just streaming the track generates a small micropayment. If you like the song or want to support this site, please consider buying a download from any of the fine digital retailers below. Buy the download from iTunes, Amazon MP3, or eMusic. Or, if you prefer an old-school CD, discs are available at CD Baby, Tonevendor, and Amazon.com. Thanks for listening! tags: digital music pledge week the Layaways link 0 comments e-mail this post Digg this post follow DAI on Twitter Tuesday Odds and Ends by David Harrell The new U2 album is today's daily special at Amazon MP3. While the $3.99 price has no doubt helped to push it to the top of the mp3 album download chart, the CD version is the best selling disc at Amazon.com and the album is also the top download at the iTunes store, where it's selling for $9.99. (A $17.99 deluxe version is in currently in the #5 slot.) The Amazon reviews are mixed, while the disc gets a Metacritic average of 71. Pitchfork 'forked it with a 4.2. Lawrence Lessig answers questions from readers of the Freakonomics blog: Q: File sharing and music piracy have sparked some interesting debates in the last decade as "leaked" material is shared all over the web. What, if any, solution do you deem plausible for the current state of the music industry?And CD Baby has a list of albums in its catalog by actors, including this one from Creed from the Office. I had no idea that he was the original guitarist for the Grass Roots: tags: digital music U2 Amazon MP3 iTunes link 0 comments e-mail this post Digg this post follow DAI on Twitter March 02, 2009 Pledge Week on Digital Audio Insiderby David Harrell As the parent of a three-year-old, I've had the delicate balance of the daily schedule ruined by the local public television station's juggling of its early morning lineup during fundraising drives. So I'm not a huge fan of pledge weeks. :) But if the kind readers of this site will indulge me, I'd like to highlight a Layaways track each day for the next week. You can stream each song using the embedded widget (a literal micro-donation, as each stream puts 0.5 cents in my pocket), and -- if you like the song or are feeling generous -- download the track from iTunes, Amazon.com, or eMusic. First up is "All Around the World," from the latest Layaways album. It's something of a departure from our usual sound, with a definite 60s vibe with its quarter-note rhythm and liberal use of the tambourine. Lyrically, the song reflects our current "anyone can be a star" pop culture -- American Idol, etc. And the Leslie effects you'll hear on the chorus vocals (and the drums during the last verse) aren't from a plug-in, Dan Dietrich of Wall to Wall Recording in Chicago ran them through an actual rotating speaker for the mix. Buy the download from iTunes, Amazon MP3, or eMusic. Or, if you prefer an old-school CD, discs are available at CD Baby, Tonevendor, and Amazon.com. Thanks for listening! tags: digital music pledge week the Layaways link 2 comments e-mail this post Digg this post follow DAI on Twitter Monday Odds and Ends by David Harrell The CD Baby catalog is coming to Spotify: Ingestion of the CD Baby catalog into the Spotify system has already begun and is expected to be completed by April, 2009.Tony van Veen, president of Disc Makers (the new owner of CD Baby) is blogging. Here's his take on the future of physical distribution and retail sales for indie and self-released artists: - Physical distribution to bricks and mortar goes away. No distributor with nationwide reach will want to take a chance on an unknown act. Artists will realize the futility of physical distribution through traditional channels, and stop aspiring/hoping/dreaming of a distro deal.And Eminem's lawsuit against his label over royalties for iTunes sales has made it to court. Via Mark Mulligan. tags: digital music Spotify CD Baby iTunes link 2 comments e-mail this post Digg this post follow DAI on Twitter |
Subscribe: Add this blog to Del.icio.us, Digg or Furl The Digital Audio Insider Twitter feed: Looking to hire? Looking for a job? Check out the digital audio insider job board. Most Popular Posts The New Music Equation By the Numbers: Using Last.fm Statistics to Quantify Audience Devotion Lala.com Owes Me Sixty Cents Economists, Radiohead, and Bob Mould To Free or Not to Free Price Elasticity of Demand for McCartney The Digital Pricing Conundrum series: Part One Part Two Part Three Part Four THE LAYAWAYS Out Now -- "Maybe Next Year" -- The New Holiday Album: O Christmas Tree - free mp3 Away In A Manger - free mp3 Download from eMusic, iTunes, Amazon MP3, Napster, Rhapsody, Lala.com, Amie Street, 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 Keep It to Yourself - free mp3 All Around the World - free mp3 Come Back Home - free mp3 Download from eMusic, iTunes, Amazon MP3, or CD Baby, listen to free streams at Last.fm, Lala.com, and 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 "A wonderfully crafted recording built around tasteful songwriting and musicianship..." -- PopMatters Silence - free mp3 The Long Night - free mp3 Download from eMusic, Amazon MP3, or iTunes, listen to free streams 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, listen to free streams at Last.fm, Napster, or Rhapsody. More Layaways downloads: the layaways website Current/Recent Reading and Listening:
It's written as a how-to guide for those looking to become music supervisors, but I found it to be a good resource for musicians (like me) who are trying to get their music used in movies, TV, etc. |