Cruz123:
But on the other hand, the guy who distributed those mp3's just gave free buzz to 100 people, which is a very good thing! Especially if you consider NEW business models. The music industry is moving AWAY from CD sales, which is very very clear. And when I say "the music industry," I'm not just talking about the business of execs and board members, I'm talking about everyone who wants to sell music.
Here is a business model scenario I just made up: I'm a band, and I have a really good CD that gets ripped and distributed to all kinds of people who love it. They are enjoying my music for free, but the fact is they are enjoying my music. I get in touch with some companies that might want to advertise through the band, and I set up a site where I will distribute my music in every kind of format imaginable at a very high bitrate, with a click-through advertisement before getting to the download page. Nothing too obtrusive, just a recommendation from the artist. The music consumer sees it as free music, the advertiser gets all kinds of traffic and impressions, and the artist gets paid.
Throw in some more value-add like an "online meet and greet" with the artist in a chatroom, a free sticker or something, whatever, and you'll drive people in like crazy. I'm not saying this is how everyone should do it, or that this plan has no flaws, but I literally made that up as I was typing. If I can do that, then who knows what kind of cool business models are waiting to make money off of your art!
The point is this: SELLING CDS IS NOT THE ONLY WAY TO MAKE MONEY FROM MUSIC. It is how the labels are familiar with making money off of music, but that power is rapidly shifting and it's scaring the hell out of them.
But on the other hand, the guy who distributed those mp3's just gave free buzz to 100 people, which is a very good thing! Especially if you consider NEW business models. The music industry is moving AWAY from CD sales, which is very very clear. And when I say "the music industry," I'm not just talking about the business of execs and board members, I'm talking about everyone who wants to sell music.
Here is a business model scenario I just made up: I'm a band, and I have a really good CD that gets ripped and distributed to all kinds of people who love it. They are enjoying my music for free, but the fact is they are enjoying my music. I get in touch with some companies that might want to advertise through the band, and I set up a site where I will distribute my music in every kind of format imaginable at a very high bitrate, with a click-through advertisement before getting to the download page. Nothing too obtrusive, just a recommendation from the artist. The music consumer sees it as free music, the advertiser gets all kinds of traffic and impressions, and the artist gets paid.
Throw in some more value-add like an "online meet and greet" with the artist in a chatroom, a free sticker or something, whatever, and you'll drive people in like crazy. I'm not saying this is how everyone should do it, or that this plan has no flaws, but I literally made that up as I was typing. If I can do that, then who knows what kind of cool business models are waiting to make money off of your art!
The point is this: SELLING CDS IS NOT THE ONLY WAY TO MAKE MONEY FROM MUSIC. It is how the labels are familiar with making money off of music, but that power is rapidly shifting and it's scaring the hell out of them.