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Evaluating a System for Selling and Delivering MP3s?

Dredd2Kad asks: "I'd really like Slashdot's opinion on this. I recently secured an MP3 distribution deal with an indie record label, and negotiations with other indie labels and artists are in the works. The music will be distributed through my internet radio station's website. As you know, if you can sell music in a format such as MP3 you eliminate the costs of packaging, shipping, handling. You do have to contend with bandwidth charges though. Most indie labels and artists seem happy to pass along the savings to customers and stimulate sales. What I have built is simple and functional. We are trying to add value to the MP3 albums we sell by including quality artwork that can be printed onto CD labels and jewel case inserts (so you aren't just getting a 'bunch of files'). What would make you want to buy music in this way? What types things would turn you away? What are the positives and negatives of selling music in this manner? Do you think this is a viable alternative to someone who doesn't want to pay $10 or $15 for a physical CD? Does the format the music is in or on have an impact on how serious you take it?"

9 of 551 comments (clear)

  1. Price Point by felonious · · Score: 5, Interesting

    The main problem dogging the Recording industry is price. Price is what the main issue is for most of us. 99 cents or under is a good place to start.

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  2. Adding value by dew-genen-ny · · Score: 5, Insightful

    I'd love to see as much thought that goes into a cd album being put into this :

    Specifically, I'd definately pay for a package that contained:

    High quality vbr mp3s.
    Multiple peices of album artwork, not just a scan of cd-album front cover.
    Lyric files to all the MP3s.
    Where available guitar chords as well.

    I think that copy protection would be a big turn off. For indie bands, I reckon that the majority of people would be happy to buy, even if they could get it for free, just as a matter of support.

    Perhaps an introduction to the album by the artists concerned.

    And of course, some decent music ;)

    --
    tom-george.comBecause geeks rate higher t
  3. Turn offs... by duffhuff · · Score: 5, Insightful

    What types things would turn you away?

    Juit quickly:

    1. Low quality and / or fixed format files. MP3 has a large market penetration and LAME is a great codec for 99% of the material, but I'd like to be able to download FLAC, WAV, OGG, or something else. Preferably a clean open lossless standard i.e. FLAC. If the track costs more for the high-quality version then the regular MP3 version I'm okay with that.

    2. Forced to purchase a full album over single tracks. This is a big turn off for me, as I find only a few tracks are really worth it.

    3. No preview of tracks. I'm not entirly sure if this is bad or not, but some way of previewing, either by a short clip, or a really low quality version of the song, is definately nice.

    4. No support for countries outside of the US.
    Obviously the US would be the biggest market to start out with, but support for Canada is a cruicial second IMO. Apple's iTunes Music Store doesn't (to my knowledge) support Canada yet, so I can't yet take advantage of it. Ideally, the system would be able to easily support all countries, perhaps with credit cards this is possible, but I see some possible legal implications here.

  4. Amazon It! by plasticmillion · · Score: 5, Insightful
    I agree with all the previous comments: price, speed, choice of quality, etc. are all important. I would add in this context that having an online account would be a big plus, so that I can pay in a certain amount (say $10-20) and then buy tracks out of that account, rather than having to bill my credit card every time for $.79 or $.99 or whatever.

    Most importantly, the user experience needs to be attractive since this is a very competitive space (and a lot of your competition has a compelling price point: free). Take a long, hard look at Amazon.com, which is the best e-commerce website I know. Notice how they have striven to make the purchasing process fun and informative. Notice also how the information-rich experience they provide helps to cross- and upsell customers ("People who bought X also bought Y"). If you can include ratings, recommendations, user comments, etc. in your site in a way that is slick and easy to use, that will definitely help to attract and retain customers.

  5. People also want quality features. by HanzoSan · · Score: 5, Insightful


    The problem is people think selling mp3s is a good idea, you have to sell services and INCLUDE mp3s.

    Selling mp3s is like selling webpages, people will not pay on a per site basis, EVER.

    However, people will pay for quality and service, people do subscribe to gaming sites, if you offer it at a cheap $1 a month, or $12 a year, people will subscribe. You also must offer alot of things in the members sections, not just mp3s, but video clips, tourdates, blogs, forums, pictures,interviews, etc. You have to make it into almost an online magazine, you need to build a community, then you charge people to access that community

    You charge the fans to access a SCENE, because to the fan, its all about the scene, just like to the musician its all about the art. Treat it like what it is, art! Do not treat it like product, when you treat it like product and worry about how many sales of mp3s you'll get, you wont sell any.

    I suggest you let a person subscribe to your site, your fans will subscribe, you may only have a few thousand fans, but thats enough. 5000 people paying $12 a year, is decent money, more money than you'd make trying to sell mp3s.

    --
    If you use Linux, please help development of Autopac
    1. Re:People also want quality features. by Rogerborg · · Score: 5, Funny

      >5000 people paying $12 a year, is decent money

      That's enough to pay for hosting and bandwidth plus two salaries, if they like eating Ramin noodles 3 meals a day. That's Web Guy, who'll we'll charitably assume does the recording and editing, plus a drummer. You'd better hope that you can find 5000 people that like drum solos.

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    2. Re:People also want quality features. by sleeper0 · · Score: 5, Interesting

      i worked in the digital music industry for a number of years, including what ended up becoming rhapsody. Here are a few of the things i picked up:

      * people will buy mp3's, but not very many people will. Use this knowledge when planning, consider not spending much or any money on putting it together, at least at first, to gauge interest.

      * The band's hardest core fans will end up being the ones most likely to buy something from you. However they already own the albums. They may very well be convinced to buy the albums again if you include enough extras. Great extras being unreleased material, live tracks, stuff that didn't make the album, rough tracks from the upcomming album, remixes, instrumental tracks etc.

      * This is important: People are (rightly) afraid of losing the mp3's they buy and being SOL. Make sure people who bought the album are allowed to download it again whenever they need it. Some folks may end up overusing this feature in your mind but the good will will go a long way into making people comfortable buying the medium.

      * When you buy a cd you get the chance to rip at various bitrates. Make sure you provide a high enough bitrate for high fidelity listening (160k or 192k) but also consider providing a 96kbit or 128kbit set for portable players or other uses. Let them download either or both for one price. (and come back later to get the other one when they need it for free like the last point)

      * Provide at least one sample mp3 encoded at the high fidelity bitrate so that people considering a purchase will know exactly what the quality of the encoding is (many bands only provide lower bitrate samples and people may assume the purchased music will sound the same)

      * Consider watermarking if you want to be able to tell if the purchased mp3's are being made available on newsgroups/p2p etc or if it is people ripping the album themselves. This can be helpful if a band discovers their music on kazaa and is upset and makes a logical leap to blame the online mp3 sales... Likely they will have ripped it themselves and you'd be able to prove that rather than just speculating.

      * (point #1 again) Remember, not many people buy mp3's online. Don't plan to order new computers, bandwidth, software services, spend a ton of time programming, doing art, adding extrasm or marketing until you get a chance to get your feet wet and gauge people's interest.

  6. It should be better than what we have. by HanzoSan · · Score: 5, Insightful



    Theres two options. One option is to sell the product, I dont really think this would work very well but it would make some money. .50 per mp3 is sometihng people would be willing to pay if you are good, if you arent all that good, .25 per mp3.

    Micropayments are an option.

    The other option is subscription option, and this is the option I think will ultimately work. If we treat music like we treat TV, and we create channels for certain labels, you can charge someone to subscribe to a channel.

    So on your site if you are a channel, you list the price of all your musicians, and combine it up, then offer a subscribe button which a user clicks and makes payment to subscribe.

    Once they subscribe for maybe $1-5 a month, the user now can access all the music from that label as long as they pay their fee, or you can charge them for the whole year, charge them around the price of a CD, maybe $15-20, and they can access the music all year.

    There should be more than music, this means the whole community, the blogs, the forums, the pictures, video clips, everything you offer and you should offer as much as possible.

    Look at AOL, they are king not because they offer the net, we all can get the net, they are king because they offer the features people are willing to pay for, they improve the net experience.

    Its your job as a music company to improve the listeners music experience. INNOVATE, dont treat the listener as a sale, treat them as a member.

    --
    If you use Linux, please help development of Autopac
  7. Re:The only thing I would like by angry+old+man · · Score: 5, Funny
    I may be just an angry old man, but I have an idea that could revolutionize the digital music industry (patent-pending).

    The label could take the highest quality digital version of the music and create analog presses that have near the same quality as the file. In each press, hot vinyl would be pressed to form a high quality analog reproduction of the music (patent-pending). Now, these vinyl *discs* could be packaged in a carboard envelope with printing, lyrics, and etc. Then they are sold. Certain *disc* players would read the music off of these *discs* by dragging a needle across the surface (patent pending) and reading the resulting vibrations.

    High fidelity buffs would be impressed with the quality, yet it's still analog which would prevent some piracy since people would prefer the *best* analog reproduction to some digital copy of that analog reproduction. Packaging would turn on people who want something a little extra with their music. Finally, and this is the ingenious part, since this *disc* is read by dragging a needle across the surface, the quality would degrade over time, preventing resale value from gnawing at new *disc* profits (patent-pending).

    The ultimate effect of my new music distribution model, is that piracy would come to an end, since the best copy is analog. At most, piracy would be used to sample the music of a particular *disc* prior to purchase. I could revolutionize a piracy filled industry. Recording Labels would grow since they longer have to worry about piracy and digital CDs being reproduced. They could tightly control the distribution of these vinyl *discs* thus controlling their profit.

    Music might become thought of as a tangible piece of property with a physical existance rather than some digital idea that is freely copied and shared. (patent-pending)

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