Monday, December 13, 2010

The Future of Music Business Models

Really good article from Techdirt about the outdated model of selling music online that the industry is still trying to use. Sales of digital downloads are now on the decline, and the industry can't figure out why. Obviously, it's due to the proliferation of readily available, FREE music for download. So what can artists do to continue making money? Find out.

I like this because it references one of my idols (Trent Reznor from Nine Inch Nails) and uses him as an example of a decent model to fashion the new industry after. Needless to say, I admire Reznor even more for embracing the technologies and changes that have led to the downfall of other bands, and using them to his advantage.

"Numerous innovative startups have suffocated under burdensome licensing terms -- and as each one fails, it just gives consumers fewer and fewer reasons to actually use these services, wondering how long each will last until it goes out of business.

However, there is another solution: stop worrying and learn to embrace the business models that are already helping musicians make plenty of money and use file sharing to their advantage, even in the absence of licensing or copyright enforcement.

In simplest terms, the model can be defined as:

Connect with Fans (CwF) + Reason to Buy (RtB) = The Business Model"

Read the full article here.

p.s. It's not too late to get a copy of my album Pretty Songs completely free!

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