3rd Discussion- Existing Alternative Models

Soundtracks

• More effective
• John Cougar Mellencamp and Chevy
• Starbucks’ label
• Of Montreal’s Outback Commercial
• Only a niche can get on TV shows & commercials and such
• Also many don’t want the perception of “selling out”

Touring is increasingly important

• Bigger money generator than record sales in many cases

Ben Karis-Nix model

• Give away music and make money off something related
• Difficult to get numbers on revenue potential of giving away vs selling
• Musicians have to be talented enough to create something else to accompany their music (unless, of course, they have a label or someone paying someone else to do it)
• Physical goods (other than shirts and such) are a dicey area in the age of digital music
• However, if you can pull it off, it can really help build you as a brand and be have a real marketplace for all related goods
• Also helps branding when an artist isn’t much of a hustler (as many aren’t)
• All has to reflect the overall identity of the band/artist

Pay-what-you-want or free model

• Fine for established artists
• Prince probably gave his away 5 years too early, and the quality really wasn’t there
• Viable in theory—biggest key is just getting your music heard
• Difficult in practice—many things associated with recording and touring cost money
• Not necessarily viral—people who would buy it would buy it
• Can hurt the band’s branding through the fan’s sense of value of the music
• Though could also be more engaging—those who pay may feel like they contribute to the band and their value (probably not the majority use-case)
• Doesn’t make much sense to keep it open forever
• Could reduce price of music in general IF you could guarantee bands could make up the revenue in another way
• If you put a community feel there, ask people to share how much they paid and why, there’s a better chance for success (though you have to be able to roll with the punches when people speak their mind negatively)
• What about a pay-what-you-want for a show? It would be incredibly tough to convince promoters, but you could also do an airfare/amie st type model where the early ticket buyers get the tickets for cheaper

Offering up all material for remixes

• Makes music two-way, plus can create cool new music
• Create a community aspect surrounding a band (beyond just discussion boards)—have a place for fans to post their related material, and have other fans rate it
• -A little dangerous in that if fans don’t get along with other fans the band may suffer
• -Difficult to monetize