From Hypebot. It’s no secret that the amount of money artists are earning from recorded music is declining. But by how much? And as digital sales replace physical and streaming music gains traction do the numbers shift in the artist’s favor? Infographic created by David McCandless of Information Is Beautiful from a spreadsheet of data.
(Friday Feb 6th, 2009) the digital distributor to college campuses Rukus shuttered its doors with this notice: “Unfortunately the Ruckus service will no longer be provided. Thank you,” That means lights out for a number of colleges, universities and students who had signed up for “free” ad supported music.
Ruckus, first hatched in 2003, was acquired by TotalMusic, a collaboration between Universal Music Group and Sony Music Entertainment.
TotalMusic itself (reported on here in 2008) is also now being shuttered, at least according to details shared by Vice President of Product Management Jason Herskowitz in Digital Music News.
“I regret that we didn’t get to show you guys more about what we built – but in these extremely hard economic times it’s hard to blame them for pulling the plug on a still-highly-speculative offering,” Herskowitz offered. “I only hope that someone else figures out how to crack this music-on-the-web nut in a way that is a win for everyone in the value chain,” Herskowitz continued. “The problem is that to make a music service a win for everyone, all of the famished participants have to sit at the table – and be content to let all the others have a little bit to eat, even though they are still hungry themselves.”
It is clear that protected music locked up in a highly controlled service is just simply not what the consumers want anymore, if ever. Continued pursuit of a rights-managed solution that attempts to preserve the status-quo of copyright holders controlling the distribution of music is futile. No more money needs to be wasted on looking backwards.
Instead, lets all come together and help to create systems that embrace frictionless distribution of music and respect the desire of the music consumer to select what they want to listen to. If we make it easy for them to find what they want, more will come. If we make it cheap enough so that the music appears to be free, move will come. If we make it possible for people to spread the word on a new service that suits their needs, more will come. We need to look forward, not backwards and admit that the old game is over and a new game has begun.
I met with Derek Sivers this past weekend (founder of CD-Baby) and asked him what he thought about the recorded music business and the decline in CD sales. He said “well I’m not quite sure what you mean Dave, as sales of indie music at CD Baby have increase at least 30% in 2008 over 2007.” What CD Baby does is provide a way for indie artists to sell their music online in CD form, to sell their music online in digital form and to provide distribution for artists who had none. Many of these artists are thriving now because Derek was willing to think different.
TuneCore is another service that lets artists put their music online for distribution through iTunes, Rhapsody, Amazon, eMusic and other services for a small up-front fee. This is a radical business model that looks forward, not backward, and pushes indies artists ahead on their journey.
New companies such as Lala, iLike, TopSpin, ReverbNation, SonicBids, Nimbit and many, many others are taking radical new approaches to indie artist promotion and distribution that will change the way that the music business functions. Connecting artists directly with their fans in a meaningful way that respects that relationship and lets it thrive is the way of the future.
Artists need to band together to assemble the knowledge and power that is required to propel them into the future. Watch this space for much more on this subject in the coming months. It is time for a revolution in thinking about music commerce and sustainable models for artists and their fans to connect and engage and prosper and interact. This is what the future of music is all about.
Derek is the musician who started CD Baby, the world’s largest online music store for independent musicians. Here are some current stats from the site:
– 242,846 artists sell their music at CD Baby
– 4,574,622 CDs sold online to customers
– $83,590,381 paid directly to the artists
With more than 2 million digitized tracks under management, CD Baby is also the largest provider of independent music for iTunes… and it all started as a hobby. A lot to learn here.
Tim Ferriss is the author of the hugely popular book The Four Hour Workweek.
Here is a recent interview between Derek and Tim. Interesting to see how Derek adopts Tim’s philosophy for CD-Baby. Note that Derek just recently sold CDBaby to Disc Makers and is now a free agent.