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Amazon & TuneCore To Cut Out the RIAA Middleman
eldavojohn writes "So you're an aspiring band and you haven't signed with a record label. Maybe you've got a fan base interested in purchasing your stuff but you're not really into accounting? Enter Amazon's partnership with TuneCore, a CD printing and music distribution service. You want to sell a full album on Amazon of you brushing your teeth? $31. And you get about 40% back on sales, so selling nine digital copies of your CD will put you back in the black. There you have it, public availability on one of the largest online commerce sites for $31 — no RIAA involved!" TuneCore's CEO put it this way: "As an artist, you have unlimited physical inventory, made on demand, with no [sic] upfront costs and worldwide distribution to anyone who orders it at Amazon.com."
I could legitimately see this as being the beginning of the end for the RIAA, and I've never thought that before. It makes sense that it would take a big media vendor with a well-established user community, combining manufacturing with sales.
This would be fantastic if I were a musician. No inventory. No worrying about manufacturnig. And you get a percentage of revenue that you won't see anywhere else. The general Amazon community will make marketing a *lot* easier than it would be otherwise. All in all, it seems to make the RIAA meaningless. I really think indie bands might be able to make this work. I'm looking forward to shopping for music on this and know the RIAA ain't getting a dime.
It was my understanding that the band paid $31 as sort of a "starting fee". After that initial $31, there is nothing more to pay (that is, if I understood what I read correctly). They're not trying to -sell- the discs for $31 a pop.
You're close, it's $31 a year. Which is why there's no "upfront costs" as the quote says at the bottom of the summary but instead a $31/year. Which is still really really cheap. Interestingly enough, Wired uses "upfront" costs to describe it, from the article:
Tunecore will charge just $31 a year in upfront fees to handle a 10-track CD from pressing to delivery, passing all other costs through to the buyer. In other words, the service promises to remove nearly all of the risks of short-run CD manufacturing, which can cost musicians hundreds or even thousands of dollars for discs that rarely sell enough to cover expenses.
I think people are missing the big picture where you don't have to go to multiple services for your music. You'll be able to buy big names like U2 and Weezer right next to little high school rock bands and indie artists. You make that possible so that the people don't know whether they're buying RIAA or not and who knows? Maybe the musician will decide the RIAA route is not really worth it?
My work here is dung.
...as opposed to getting about 50 cents to a dollar on each CD, and that's if you're lucky to be Madonna or someone already famous...
I'd say it's a very good deal.
one obvious drawback to this model is that you canÃ(TM)t sell an on-demand CD at shows, where enthusiastic fans are most likely to pick one up.
I don't think there would be anyone stopping the band from buying the CDs from Amazon for $9 and selling them at the concert for $15, with an autograph and some booklet, or for something like $25-50 with a signed t-shirt and booklet.
They'd only lose about 5$ on each CD, but in the end it may still be better than ordering and paying in advance for a 500-1000 batch of discs at a duplication factory.
Don't bite the hand that feeds you. Goodbye.
I'm sorry, but unless you want to be the next Hoobastank or some such nonsense, those things are completely unnecessary.
If you want to actually sell enough CDs (or novels, or software, or greetings cards, or whatever) to make anything like a living, you need marketing.
If you write the Great American Novel, put it up on Lulu, and wait for the income to roll in, you'll sell 20 copies if you're lucky. To do better you've got to send review copies to magazines and web sites, persuade them you're worth interviewing for an article, get some viral marketing going for your product etc.
The same would go for a CD, even if you're not going for the mainstream. Get a reputation for live shows. Get written about in the specialist press. Get played on specialist radio shows or net radio. Get blogged about.
The OP's right. Traditional record labels do all this stuff, and that's part of where the money goes.
Still, it's all stuff you can DIY, or have done separately.
No one that knows about this service would sign unless they already have major sales...
Unfortunately this still doesn't provide a good alternative to one important service the major record labels provide: promotion.
Just because you put your independent band up on MySpace and SonicBids and your own website and sell your songs on iTunes and your CD on CDBaby doesn't magically make everyone in the world suddenly know you exist and want to buy your stuff. Somehow they still have to stumble across you in the first place, out of the trillions of other bands who have done the same as you.
This Amazon service is awesome, and it's part of a much larger trend that will ultimately make the major labels obsolete, but there's still more work to be done.
"You cannot simultaneously prevent and prepare for war." -- Albert Einstein
Unfortunately this still doesn't provide a good alternative to one important service the major record labels provide: promotion.
Well, this is the essence of what the future of the Record industry is, isn't it? You have two distinct businesses that are finally getting separated. On the one hand, you have the music sales group which makes money based on sales of the actual music. On the other, you have a marketing/promotion group which makes money off of concerts and the like. The former is a dead business model that'll go away with services like the one mentioned in this story. The latter is something that an agent or a marketing company or a PR firm can do. Really, this is what a record company will eventually evolve to.
The service being offered depends on them taking a 60% cut of any sales. By providing your contact information, it would enable artists to direct buyers to an alternative location (such as their own website), which could offer the CD at a lower price while still giving the artist a larger cut (100% minus production/shipping costs). They're understandably not interested in offering an unlimited advertising service for a flat rate of $31.
I think people are missing the big picture where you don't have to go to multiple services for your music.
Not only does this put indie bands next to U2, but it even opens the doors for a whole new level of artist "below" the indie artist, because you no longer have to drop a couple grand to press a thousand CDs.
Currently, if you want to sell a professionally made CD (ie. not a CD-R), you pretty much have to order at least 1000 of them. But what about bands who know they're not going to sell that many? Sure, CDBaby will take as few as 5 discs into their inventory if that's all you think you're going to sell, but what do you do with the other 995 you had to manufacture in order to be able to manufacture any at all?
With this service, if 5 is all you're going to sell, then 5 is all that will be produced, and the total cost to you is only $31 -- which, to most artists, is worth it even if they don't make that money back in sales.
"You cannot simultaneously prevent and prepare for war." -- Albert Einstein
Send CD's to radio stations to get air play.
Most stations won't even open the package. College stations might, but mainstream ones aren't interested.
Get out and PLAY at better venues.
That works locally, but what about the rest of the world?
Get out, play for people, get Cd's in the hands of people that will play it on the air.
I'm not saying that it can't be done, and I certainly don't advocate bands sitting on their asses and expecting to become instant multi-millionaires because they recorded an album. But marketing music is hard, especially in a world that has as many bands as this one has. It takes a lot of effort to stand out and get noticed, and you have to recognize that just because you may be good at writing and playing songs doesn't mean you're magically good at marketing those songs. Most bands need someone with knowledge and experience to handle that for them.
"You cannot simultaneously prevent and prepare for war." -- Albert Einstein