Free Music (continued)

Peter Rojas of Engadget fame is starting a record label based entirely on the free music concept. The NY Post has the story.

Comments

[Dave Rosenheim]

Perhaps a move in the right direction, but I question the viability of a model in which a "label" relies solely on ad revenue. A more holistic approach would be for the label to include tour marketing/support in exchange for a slug of performance revenues. Touring remains the only source of artist revenue that is immune to most of the erosion that recorded music is facing.

Artists still need help in marketing, licensing, tour support, marketing and marketing. A label/management hybrid can supply most of these services (if they really get the web) and can in turn benefit from the whole revenue picture.

Assuming that recorded music (as a commodity) derived revenue goes away, the three ways for artists and their business representatives to make money will be: advertising/sponsorship, live revenue and licensing.

[kip]

this has to be the first time that you have cited the post on avc dude.

[Jeff Grill]

Everyone age 25 to 0 is growing up as part of Generation Free. The Internet creates an expectation of instantaneous behavior and free movement. Generation Free cannot accept the idea of digits that aren't free. The music industry is just catching up to this generations reality. Sometimes you have to look reality in the eye and deal with it. Music will be free. New category entrants will figure out how to monetize this consumer expectation.

[Ethan Bauley]

@Dave

I'm sure the deals that RCRDLBL does will account for other revenue streams (and require some investment by the label).

The unique thing here [to me] is that this is the first "label" to come up with [what I would judge as] a decent business model for driving ad revenues...

It will also probably be one of the first labels that even ADDRESSES advertising revenue with it's roster of artists (historically, 99% of record contracts just leave that out, effectively sending all ad revenue to the bottom line).

[kid mercury]

the real story here is that the ny post actually has a story that is of some importance.

[Jonas]

The model seem to rely heavily on a destination site model. Maybe they will explore embedded players but it isnt mentioned. Also not explored is how they will provide users with offline access / files.

More questions than answers if you ask me.

[aizheng]

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