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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.
Similar model.
If you read the article, they mention CDBaby:
For TuneCore, the deal expands its primary business helping indie artists get digital distribution through online outlets such as iTunes, Napster and Amazon MP3. TuneCore will now compete directly with CDBaby, the current leader in low-volume CD manufacturing and distribution. CDBaby charges $278 for 100 discs, although it recently lowered its minimum order to just five copies.
I've been a massive fan of CDBaby ordering discs straight from people like Anni Rossi but it has a minimum order those artists have to meet. I don't like the idea of a band having to buy up 500 or 100 or even 5 copies. Instead a flat fee of $31 for the artist makes me excited that this could really be big for indie artists ... I think CDBaby's success is proof that this even cheaper alternative could be a massive success. Let's hope Amazon allows you a 30 second preview and review ratings to quickly separate the wheat from the chaff.
Get into the iTunes store.
While iTunes would be slightly bigger, Amazon is a big leap for Tunecore and I'm happy to see it even on this level.
My work here is dung.
It's a $31 per year "hosting fee" for the artist.
From the article:
If one of Amazon's 80 million customers buys your 10-song CD on Amazon for $8.98, you'll receive $3.59. After selling just nine discs, you're in the black.
emphasis mine.
"Knowledge is the only instrument of production that is not subject to diminishing returns" -Journal of Political Econom
While iTunes would be slightly bigger, Amazon is a big leap for Tunecore and I'm happy to see it even on this level.
According to their website, TuneCore already has a deal with the iTunes store, as well as most all of the other digital music services.
Maybe they should hire editors to clean up the summaries, verify links, and check for duplicate stories.
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.
Too bad RTFS is retarded.
Dear drinkypoo,
As the author of the summary, I would like to respond to your statement of "Too bad read the read the fucking summary is retarded." I assume that you are referring to the quality of the summary although your sentence is a bit difficult for me to parse. In that case, I appreciate your constructive criticism and would like thank you for making me a better person and Slashdot user.
I hope that someday I might become as gifted at using the word "fuck" as you and perhaps I can beat my apparent bout with down syndrome that you so generously apply to every user of this entire site.
I'm sorry my stories don't pass 'journalistic muster.' I read the entire FAQ and didn't see anything about said muster, could you please expound upon that claim that submissions must pass it?
Also, I believe you are misplacing your disgust with the Firehose and directing it at users. This confuses me, as the users did not implement it. What confuses me even more is that it takes an action by you, drinkypoo, to get to said Firehose in order to 'rate' stories. You curse this UI yet you obviously used it and saw my story in Firehose.
As always, I love you dearly with all my heart and remember to tell drinkyurine that I miss him. Please accept my apologies for such a bad summary and don't let this obstruct our friendship which is sometimes as delicate as a flower covered in dew on a crisp summer morn.
Yours in song and dance,
eldavojohn
My work here is dung.
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
Congratulations on living up to the minimum possible standards. Making slashdot grate ...
I can't tell which part of my daily duties you're referring to here, is it the endless sets of metal sheets that I cut slashes and dots into that are later installed in the streets to prevent debris from entering and clogging my fair city's sewer system? Or are you referring to my ability to cause friction between Slashdot and another object/site by rubbing them together forcefully? I must say, I'm guilty of both!
No, no. The firehose sucks, AND the people using it suck.
Something about this sentence is very peculiar considering that in your prior post you say:
I sometimes use the firehose, but it is WAY too fucking painful these days.
I'm not a logician but if all who use the firehose suck ... and you yourself use it ... Wait, I think I've got it but I'm not sure. I shall construct a predicate calculus of these two rules and get back to you once I can conclude something from them.
My work here is dung.
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.
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 is where I think the future of the recording labels lie. Amazon and iTunes (as well as other services) have shown that distribution is being taken out of the labels' hands. Now Amazon is working to take manufacturing out of their hands also. Recording has been practically out of their hands for awhile now. (Recording artists can buy what used to be thought of as professional level gear for relatively little money now.) The only thing left is Promotion.
The way I see the future of labels (if you'll even be able to call them that) is this: Band X wants to record some songs and sell them. They buy the equipment to record, sign up with Amazon/Apple/whoever to manufacture/distribute, and then sign up with Label A for promotion. Label A gets a cut of the sales, but doesn't own any rights to the music. If Band X is unhappy with how Label A is promoting them, they can drop the label and move on. Label A gets a final paycheck (for work done up to contract termination) and then the next promotion label gets the sales cut paychecks. Labels will have an incentive to treat their bands well and increase sales because otherwise they (the labels) don't get paid. The current labels will fight this tooth and nail, of course, but I think that it is almost inevitable.
My sci-fi novel, Ghost Thief, is now available from Amazon.com.