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.

My personal website has links to my LinkedIn and Google+ pages and you can send e-mail to david [at] thelayaways [dot] com.

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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.

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September 18, 2014

Punching U2's Gift Horse in the Mouth
by David Harrell

Zack Huggins/Flickr

Andrew Sullivan has a good roundup of opinions on U2's "junk mail" (to quote Bono) distribution strategy. It links to a post from Marco Arment, who wonders why U2/Apple just didn't go with an opt-in strategy, instead of the opt-out approach that was used.

However, U2 and Apple actually did that back in February, with a 24-hour free iTunes giveaway of the song Invisible, which resulted in more than 3 million downloaded tracks. My guess is that the band already had a decent idea of how many downloads might result from an opt-in strategy and wanted to go bigger.

There's no going back on that decision, as the mandatory gift horse is already out of the barn. So we're left with the following question: Was this a better strategy, in terms of money and listeners, for U2 than a standard album release?

According to Wikipedia, the band's last album, No Line on the Horizon, sold more than five million copies worldwide. An impressive number, but it's less than each of their three previous albums. We don't know how much U2 and its label received in payment from Apple, but solely from an attention standpoint, it seems safe to assume that Songs of Innocence is receiving a wider listening audience. (And Billboard's Glenn Peoples notes that the band's back catalog is getting a boost as well.) Though given the backlash, it also seems safe to assume this will be the last time the approach is used.

One final thought: Given my age/demographic it seems impossible, but a large proportion of the complaint Tweets about the album listed here are from people who apparently were previously unaware of U2!

Labels: Apple, iTunes, U2

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September 09, 2014

U2: It's Free for You, But We Got Paid
by David Harrell

In a post on the band's website, Bono makes it clear that the free album is a giveaway from Apple, not U2:

It's also free to everyone on iTunes thanks to Apple. To celebrate the ten year anniversary of our iPod commercial, they bought it as a gift to give to all their music customers. Free, but paid for. Because if no-one's paying anything for it, we’re not sure "free" music is really that free. It usually comes at a cost to the art form and the artist...which has big implications, not for us in U2, but for future musicians and their music...all the songs that have yet to be written by the talents of the future...who need to make a living to write them.

So did U2 (and Island Records) receive a flat fee for distribution of the album to more than 500 million iTunes customers, or is Apple paying a per-download amount, based on the number of iTunes customers who actually receive the album? Either way, with cash reserves of more than $160 billion (as of June), Apple can certainly afford it.

Update: According to this NY Times story, it was a flat fee:

To release U2's album free, Apple paid the band and Universal an unspecified fee as a blanket royalty and committed to a marketing campaign for the band worth up to $100 million, according to several people briefed on the deal.

Labels: Apple, iTunes, U2

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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