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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November 17, 2008

Monday Odds and Ends: Lala, Verizon, and an Innovative Pre-Sale
by David Harrell
The very first payouts from Lala.com showed up in our CD Baby account last week. We received 1/2 a cent per stream after CD Baby's 9% cut, meaning Lala paid out about .55 cents per stream. That's slightly more than we received for free "on demand" streams from Last.fm. (Look for a detailed post on Last.fm royalties later this week.) No revenues have shown up yet for Lala's 10-cent web songs, however.

We also had our very first Verizon sales (one song, that is!), which paid out at 85 cents, before CD Baby's commission. No indication here if the purchase was online or a wireless phone purchase.

And Chicago's Umphrey's McGee is conducting a fairly successful pre-sale campaign for its next album, due in January. The interesting twist here is that they're giving fans a reason to encourage others to buy the presale. From band manager Vincent Iwinski:
The gist of the concept: We give away more free content the more pre-orders we receive. The fans "unlock" levels of content by getting more fans to pre-order. The goal is to give the fans incentive to spread the word, post our widget on their Myspace and Facebook pages, blogs, etc. In just over a week, we've sold out of our 1000 deluxe packages, and have taken more pre-orders than any release in our 11 years as a band.
More details here.

tags:

link 1 comments e-mail listen to the Layaways on Spotify


November 11, 2008

Experimenting With Free
by David Harrell
Oops -- meant to mention this earlier today. I wrote a guest post for the Know the Music Biz blog about free music (and other promotional strategies):
Yet in all of these cases, "experiment" is probably a misnomer --there's no "control group" receiving the placebo treatment. Absent a trip to a parallel universe where you could buy Kid Rock's last album (or the single) from the iTunes store, we really don't know for certain if Kid Rock helped or hindered his total sales. (It's possible, of course, that some record companies have been using control groups of some sort. You could make an album available in iTunes for a specific country or region, and compare sales to those in non-iTunes regions. Though the demographics and fan bases probably aren't identical across regions, so you're still guessing somewhat...)

And even if we knew for certain if an individual experiment was a relative success, it's not necessarily transferable. Just because something worked for Radiohead doesn't mean it would work for R.E.M. Further, in addition to the non-interchangeable nature of audiences and albums, the music retail environment itself is changing on a daily basis.

Yet music is art, not science, and even if these different business tests aren't controlled, repeatable experiments, there does seem to be a few obvious takeaways. One thing that seems certain is that for acts of a certain stature, deviations from the standard sales approach will result in increased attention, perhaps enough to generate additional sales. Offering free music certainly seems to have helped Trent Reznor SELL a lot of music, music that is readily available for no charge. And maybe AC-DC's new album wouldn't be selling as well without the promotional push behind the Wal-Mart exclusive.
Read the whole post here.

tags:

link 0 comments e-mail listen to the Layaways on Spotify


Today Is the Day
by David Harrell

The Layaways The Space Between banner

Today is the official release of "The Space Between" by the Layaways. (My apologies for two self-promotional posts in a row!)

It's really something of a soft launch, however. While the album can be purchased on CD or as downloads from CD Baby and it's live on Last.fm, it's going to take a few weeks for it to show up in the various download stores. CD Baby began delivering the album to its digital distribution partners last week, but it's essentially a waiting game at this point.

As far as I know, neither CD Baby or Tunecore can currently guarantee a specific digital release date for most self-released musicians, though CD Baby says it's coming soon.

In keeping with our "free" experiment, here are links to mp3 files for all of the songs:

The Layaways - The Space Between
  1. Keep It To Yourself - free mp3
  2. Where The Conversation Ends - free mp3
  3. All Around The World - free mp3
  4. On Any Given Saturday - free mp3
  5. January - free mp3
  6. Come Back Home - free mp3
  7. Note On The Door - free mp3
  8. Too Little Too Late - free mp3
  9. The Space Between I - free mp3
  10. The Space Between II - free mp3
tags:

link 0 comments e-mail listen to the Layaways on Spotify


November 03, 2008

The New Layaways Album
by David Harrell

The Layaways The Space Between banner

Please excuse the self promotion...but the new Layaways album, "The Space Between," will be released on Tuesday, November 11th. Here are a few preview tracks:
Keep It To Yourself -- free mp3

All Around The World -- free mp3

January -- free mp3
As discussed here before, we'll be making a free version of the entire album available, as well as selling digital downloads (and physical CDs). Of course, given the ubiquity of free music these days, we're still struggling to figure out exactly how a relatively unknown act can garner attention by offering free music. So look for some follow-up posts over the next few weeks as we sort through our options -- and attempt to measure the relative success of different approaches.

tags:

link 1 comments e-mail listen to the Layaways on Spotify


October 30, 2008

One More Day
by David Harrell

Last.fm banner

No, I'm not counting down the hours to Halloween, but tomorrow is the day that Last.fm will release the first accounting reports for its artist royalty program.

I'm certainly not expecting a big payday, as we just recently passed the 2,000 listener mark in our Last.fm stats. Also, the per-song minimums spelled out in Last.fm's FAQ about the program are quite low:
- If your track is played on our free radio service you will accrue a 10% of the Share of Last.fm's Net Revenue (see the definition of "Share" and "Net Revenue" in the terms and conditions) from the free radio service.

- If your track is played on our personalised premium radio service, you will accrue the greater of either 10% of the Share of Last.fm's Net Revenue from the personalised radio service, or US $0.0005 for each complete transmission on the personalised radio service.

- If your track is played on our free on-demand service, you will accrue 30% of the Share of Last.fm's Net Revenue from the on-demand radio service.

- If your track is played on our premium on-demand service, you will accrue the greater of either 30% of the Share of Last.fm's Net Revenue from the premium on-demand service, or US $0.005 for each complete transmission on the prepaid or subscription on-demand service.
The minimum rates above are obviously less than the penny-per-stream rates that some services have been paying for free streams. However, in Last.fm's defense, a penny-per-stream isn't a viable business model for ad-supported music (at least not banner ads). As Lucas Gonze noted back in June, you'd need a ten-fold increase in current CPM ad rates to support a penny-per-stream payout.

Look for follow-up post next week, after I've had a chance to digest the first report.

tags:

link 0 comments e-mail listen to the Layaways on Spotify


October 28, 2008

Napster -- the Best Digital Payout?
by David Harrell
A few Napster mp3 sales just showed up in our CD Baby account. What's interesting is that we received 85.8 cents a track. And that's AFTER CD Baby took its 9% cut, which suggests that Napster is paying out 94.3 cents a track.

Perhaps it's an accounting mistake -- it seems unlikely that Napster can come close to breaking even on a 99-cent sale! (Apple's iTunes and the Amazon.com MP3 store both pay distributors and labels 70 cents for 99-cent downloads...)

UPDATE: It just occurred to me that these may be international sales, for more than 99 cents in U.S. dollars. CD Baby doesn't indicate where each digital sale is coming from, unless it's from a specific iTunes store.

tags:

link 0 comments e-mail listen to the Layaways on Spotify


October 17, 2008

Trading CDs for iPods, Literally
by David Harrell
I found an interesting ad in the current issue of the Big Takeover: NYC-based iPodMeister trades new iPods for used CDs and DVDs. And, in exchange for additional CDs, iPodMeister will rip the discs, load the tracks onto the iPod, and send back-up DVDs:

iPodMeister exchange chart

The back-up option probably violates a strict "fair use" interpretation of copyright law (that is, you're not supposed to retain copies of CDs you no longer own...), so I'm wondering how long it can continue before the RIAA sends a letter of some sort.

Also, the per-disc cash equivelent is relatively low. For example, a new 8 GB iPod Nano currently sells for $139.94 at Amazon.com, which means iPodMeister is essentially paying 93 cents for each used disc with its current iPod Nano offer (or 70 cents per disc if you opt for file back-up and loading). You might do better taking a box of discs down to the local used CD shop.

However, it's still an enticing offer, and it's pretty much hassle free -- iPodMeister will even pay for UPS shipping. We moved two years ago and the bulk of my CD collection is still languishing in boxes in the basement, so I can see the appeal of directly converting something that's sitting unused into a shiny new iPod.

Unfortunately, it's not a way for self-released musicians to turn unsold stock into a new iPod:
We usually only accept one CD per title, i.e. we do NOT accept a dozen unsold, shrink wrapped CDs of a local bar band.
tags:

link 3 comments e-mail listen to the Layaways on Spotify


October 15, 2008

The MP3 Debate
by David Harrell
My apologies for a post that is completely off-topic, though it is somewhat topical...

Terry Teachout's piece in Saturday's Wall Street Journal about the release of some 1908 recordings by presidential candidates William Jennings Bryan and William Howard Taft (and tonight's presidential debate) got me thinking about one of the first things I ever listened to on my iPod -- the four 1960 Kennedy-Nixon debates. They're available for free download as mp3 files at Archive.org and are definitely worth a listen for anyone with a passing interest in politics or U.S. history.

While much of the content of the 1960 debates seems completely modern, there are some interesting anachronisms. For example, I never knew that the number of hydro-electric damns in the United States, relative to the number in the Soviet Union, was such a hot political topic. And though it's been a couple years since I listened to all four debates, I'm pretty certain that Kennedy made at least one reference to "colored" children when discussing public education.

The Wikipedia entry for the 1960 election expands on the conventional wisdom about the debates (Kennedy looked good on television and Nixon didn't, so television viewers thought Kennedy won, while radio listeners thought it a draw or a win for Nixon), noting that political observers gave Kennedy the nod for the first debate, Nixon the edge for the second and third debates, and the fourth debate was considered a tie.

When I listened to them, I didn't perceive a significant advantage for either candidate -- certainly no knock-out blows. Regardless, they're a fascinating listen and not a bad way to fill your morning commute for a week or so.

UPDATE: If you arrived at this page looking for an mp3 of the third Obama-McCain debate, you can download it here from NPR.

tags:

link 0 comments e-mail listen to the Layaways on Spotify


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    THE LAYAWAYS

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

    <a href="http://thelayaways.bandcamp.com/album/maybe-next-year">Joy To The World by The Layaways</a>

    "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.



    album cover art from The Space Between

    <a href="http://thelayaways.bandcamp.com/album/the-space-between">Keep It To Yourself by The Layaways</a>

    "...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.



    album cover art from We've Been Lost

    <a href="http://thelayaways.bandcamp.com/album/weve-been-lost">Silence by The Layaways</a>

    "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.



    album cover art from More Than Happy

    "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:

    download the Layaways at eMusic download the Layaways at iTunes

    the layaways website