If you're new here, you may want to subscribe to our RSS feed.
Thanks for visiting!
Spotted on: Techdirt
A new idea has surfaced in the music business this year: giving away tons of free CDs. First Prince did it through UK newspapers, causing quite a stir in the industry. Now Big Head Todd and the Monsters are giving away 500,000 copies of their new album to radio stations and fans, splitting the cost with radio to get the copies out there. The albums will be available as giveaways from radio stations, and on the band’s site. The album is available as a free download for fans, and according to the BHTM site, the physical album is “Available SOON from our merchandise store for just $5 or FREE with any merchandise purchase of $15 or more.”
At first glance this appears to be another groundbreaking model for the industry. BHTM used to be on a major label, and has the industry recognition and viability as a touring outfit (they are preparing for a 60 city US tour as we speak) that comes with major label artist development and promotion.
Looking closer, even at dirt cheap prices (including postage), the investment here would be a minimum of $200,000. Apparently, fans are jumping at the bit to get the free album, a testament to the credibility of BHTM. But what does this action say for the rest of us in the industry? Although not as widely recognized as Prince or Radiohead (and few artists are), BHTM has the credibility and resources to launch this kind of campaign. For the rest of us who have not had major label development, access to create a quarter million in investment, tons of willing radio contacts, and the ability to book a viable 60 date US tour, this tactic may not be fruitful in the short term.
Based on the flopping CD sales over the holiday season, CDs are set to lose major amounts of retail shelf space next year, except in major retail outlets like Wal-Mart and Target. Consider that without retail shelf space, physical distributors will rapidly become obsolete. These days, selling 100,000 copies of a CD gets you high up on the charts. Give the sorry state of CD sales, it appears that musicians will need to have some kind of sure money maker (like touring) to buffer this kind of massive promo giveaway, unless one is willing to invest tens of thousands of dollars and ’see what happens’.
So what about the horde of mid level musicians that don’t have the clout to give away half a million (or even ten thousand) CDs? It’s a brilliant marketing ploy, but without the ability to book a viable tour with sweet guarantees and juicy crowds or the guarantee of radio play it becomes a major loss leader in an industry that is rapidly losing revenue streams.
Giving away albums to generate buzz has become the modern equivalent of the single. Let the fans hear the music, and give them the opportunity to support the band live, or by buying merch or CDs. This tactic will drastically undercut the Big Four’s ability to set prices and control music distribution over 2008.
Bottom Line: It is beginning to appear that the only way to transform the music business is to devalue music and start again with a whole new model, where art is free and the money comes from something else.
I wouldn’t say that music is being devalued, but that the physical recording is. Not too long ago, music could only be heard live, and it was a social event. I think we’re getting back to those ‘roots’, and that distro models in the internet age will be a way to generate revenue - just not always directly (selling you a byte for 2 bits).
And trust me, if you generate enough buzz online, you too will be able to get the full benefit of ’sweet guarantees and juicy crowds’.
In other words, spend the time to put together a good record, then spend the money to deploy a good marketing plan - and you too can be successful. Maybe not on the level of Radiohead, or Big Head Todd - but then again - didn’t those guys languish for years in the underground before they were discovered?
You make some great points….
Music has a priceless intrinsic value, but the monetary value of it seems to be slumping fast. Now that live music is starting to make a comeback, it will be interesting to see if new venues POP up.
While there isn’t a direct connection between creating a buzz and generating revenue, it is possible for any artist to create a huge following.
This all points back to the questions about what is the new model of marketing, touring, and having a viable music career.
I’m not sure there is an exact formula you can follow, but if you can produce the result of many many people over the average (10k, 50k?) running across your myspace page, youtube clip, or MP3 download - you are going to get some great attention - the kind that could warrant a Long Tail success story.