My Musical Business Model

The business model I am settling on will be a progression through 2 music business models. The models were derived from David Byrne of Talking Heads fame. 

Firstly: The model will start as a self-distribution model which is where the artist is responsible for everything. Byrne describes it thusly ” at the far end of the scale, is the self-distribution model, where the music is self-produced, self-written, self-played, and self-marketed. CDs are sold at gigs and through a Web site. Promotion is a MySpace page. The band buys or leases a server to handle download sales. Within the limits of what they can afford, the artists have complete creative control. In practice, especially for emerging artists, that can mean freedom without resources — a pretty abstract sort of independence. For those who plan to take their material on the road and play it live, the financial constraints cut even deeper. Backup orchestras, massive video screens and sets, and weird high tech lights don’t come cheap.Radiohead adopted this DIY model to sell In Rainbows online — and then went a step further by letting fans name their own price for the download. They weren’t the first to do this — Issa (formerly known as Jane Siberry) pioneered the pay-what-you-will model a few years ago — but Radiohead’s move was much higher profile. It may be less risky for them, but it’s a clear sign of real changes afoot. As one of Radiohead’s managers, Bryce Edge, told me, “The industry reacted like the end was nigh. They’ve devalued music, giving it away for nothing.’ Which wasn’t true: We asked people to value it, which is very different semantics to me.”At this end of the spectrum, the artist stands to receive the largest percentage of income from sales per unit — sales of anything. A larger percentage of fewer sales, most likely, but not always. Artists doing it for themselves can actually make more money than the massive pop star, even though the sales numbers may seem minuscule by comparison. Of course, not everyone is as smart as those nerdy Radiohead boys. Pete Doherty probably should not be handed the steering wheel.”

This model will be adopted initially while promotion etc is in the initial stages i.e. until a decent following and amount of interest is achieved.

Secondly: The model will progress to a manufacturing and distribution deal, which byrnes describes as “In the manufacturing and distribution deal, the artist does everything except, well, manufacture and distribute the product. Often the companies that do these kinds of deals also offer other services, like marketing. But given the numbers, they don’t stand to make as much, so their incentive here is limited. Big record labels traditionally don’t make M&D deals.In this scenario, the artist gets absolute creative control, but it’s a bigger gamble. Aimee Mann does this, and it works really well for her. “A lot of artists don’t realize how much more money they could make by retaining ownership and licensing directly,” Mann’s manager, Michael Hausman, told me. “If it’s done properly, you get paid quickly, and you get paid again and again. That’s a great source of income.”” 

This is so that I can have some creative control over my work. It allows me the freedom I need.

Info derived from www.wired.com interview.

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