Abandon All Fear

What nobody else seems to be saying…

The New Music

Posted by Lex Fear on October 10, 2007

Three cheers for Radiohead. I’ve never bought an album or really listened to their music, however, in a move that defies and oversteps the fan-punishing MAFIAA, Radiohead have released their new album “In Rainbows” for free download over from teh interwebs.

click here and place your free order for Radiohead: In Rainbows.

Why is this a good move, you ask? Well imagine someone like me, a non-fan of Radiohead, but now I have a chance to listen to an album for free. If I like what I hear, I may be tempted to buy an album (yes p2p people still do buy albums if they’re good/have extra content)!

What’s more, I think this business model has the possibility to generate more cash for bands than the MAFIAA. I haven’t worked out any figures but here’s a guesstimate:

Old Model

  • Album Sales: Limited to already fans (and we know people who buy CDs/DVDs obey the law and don’t share with their friends).
  • Merchandise Sales: Limited to fan base
  • Concert Sales: Limited to fan base
  • Profit = MAFIAA: 90% Band: 10%

New Model

  • Album Sales: 0 potential sales/low revenue, infinite potential fans
  • Merchandise Sales: Infinite potential from open fan base
  • Concert Sales: Sellout potential from open fan base
  • Profit = MAFIAA: 0% Band: 100%

Based on on the new model, bands could easily recoup and even surpass their profits based on the old model!

This is exactly how George Lucas made his fortune by owning the merchandise rights to the Star Wars franchise, which enabled him to go on to produce 3 new movies (yes the reasoning and quality can be argued but,) and convert millions of new fans.

I hear that Nine Inch Nails are doing something similar, this is another band I haven’t heard many tracks from so I’m going to download all the music I can from NIN and sample that too.

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4 Responses to “The New Music”

  1. mattghg said

    Hmm. I think Radiohead are awesome; I used to have all their albums on copied MP3 but deleted them after I became a Christian because of the illegality of it all. I look forward to the new one!

    By the way, I’m not sure the band gets quite 100% of the profit even under the new business model, unless th MAFIAA have given up doing things like organising tours and running venues.

  2. Emma said

    We’re running video advertising campaigns for a well-known drinks brand and a top-rated American TV show, and would be interested in buying some advertising or advertorial space on your blog. Sorry- couldn’t see where to get in touch.

  3. Sheesh… my own comment got held in spam moderation!

    The MAFIAA (the RIAA + MPAA) only represent the record and movie companies respectively. They don’t pass on any money to the artists when they win a settlement or a lawsuit(the record company that sponsors the artist doesn’t either- they don’t give any extra money above the contract). Interestingly, many artists are coming out against the MAFIAA and the record companies for exactly this reason.

    Also, the new model is obviously those bands that either start out by literally releasing their own music (myspace, itunes etc) and don’t bother to go through a record company, or those who have become so sucessful they go independent when their contract ends.

    With regards to tours and merchandise, I believe the record company would give the financial backing for marketing and touring, but there’s no reason that a successful band cannot do it themselves and get their own manager to handle those aspects.

    You should read this article about the band Throwdown, it’s offers some valuable insight into the relationship between the band and the record company.

  4. Copyright protection measures are completely at odds with providing customers with a good experience… They’ll learn one day and in the meantime people will illegally download music and then buy a CD later or (as is the case with me) use iTunes to listen to music, find ones I like and THEN buy the CD. I don’t buy the crippled music from iTunes.

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