Let The Advertisers Support The Music
What does the future have in store for the music industry?
Will the industry be able to revitalize what was once a lucrative business model?
From a consumer standpoint I am very happy with the current state of the music industry as I feel there is more choice than ever before and I am able to download any music I want in a variety of formats. The music industry on the other does not see it this way and are struggling to redefine their business model.
I just read an article in the NY Times that spoke about a new venture called Qtrax. Qtrax is seeking to help revitalize the music industry by creating an ad supported P2P network. I am not familiar with any successful ad supported, p2p music model, however that does not mean it is not a viable solution. In fact, maybe this solution can also help with the current issues that labels and music retailers are having with DRM. In light of Steve Job’s recent comments on DRM this is certainly an area of opportunity.
While the idea of ad supported music not new it is sure an exciting space to watch. The added ability for advertisers to target based on some degree of relevance (style of music etc.) makes it even more interesting for people in the new media /marketing /advertising space.
Tags: Qtrax, music, music industry, P2P, DRM, Apple, Steve Jobs, marketing, advertising, media, new york times
Apr 23, 2007
I’m not counting on ad-supported music in the long-term. Here’s why (cross-comment from GigeOM):
I think musicians (though not necessarily the music industry) have another excellent option: concerts. A couple of years ago I happened across a report that included statistics for the increase in ticket prices. That’s an opportunity for performers.
Consequently, Experience will trump P2P ads, imo. And if the creators get the bulk of their income elsewhere (which is, from what I’ve read, true in the majority of cases), then expect them to leave the middlemen behind by embracing Experience revenue streams and using free – and ad-free – downloads as a means of advertising.
The way I see it, the unwashed masses will get the sanitized stuff for free, and the privileged will get the Experience. And with the widening gap between the Have’s and Have Not’s – and the dying middle class – this makes a lot of sense to me.
-(end)-
Now I do think that music can and will earn creators some cash when used inside other content (commercials, movies, aso). Moby has certainly shown some initiative on that front. But there is a lot more music than licensing opportunities, so I’ll stick with Experience as the money-making option.
Apr 23, 2007
I do agree that there is enough money in “experience” to cover the cost of creating and distributing music (which low barriers to entry has made into a very small cost)as well as profit for the musician. I also feel that experience is one of the more rich aspects of music at large and one of my favorite aspects of music.
One thing I am currently working on to expand the reach of the music experience is something called virtualive.tv (more info can be found at the URL of the same name). My goal with this endeavor is to further empower the independent artist be extending their reach and potential for audience.
I am still going to pay attention to ad supported music as I think there will be some place for it. Perhaps it will not be a very large place but over the next few years as the music industry is grasping at straws, they will no doubt push this model. It will be interesting to see to what degree it takes off!
All in all, I have to say I agree with you that Experience shall triumph!
Apr 23, 2007
I’m somewhat familiar with virtualive.tv.
And I certainly see no reason why Experience has to be limited to meatspace concerts. In fact, I believe (and have written about) just the opposite. Musicians will find a very compelling reason for going virtual. Give them Time.
Apr 24, 2007
I fully agree. That is why we are easing into this mode of thinking with Virtualive.tv and trying to get musicians more comfortable with the virtual space. Sure, there are a lot of musicians in Second Life but they are largely early adopters with a technological bent.
Not every musician fits into this mold and I want to help aid the non tech savvy musician spread their music into virtual spaces.
Apr 24, 2007
Advertising supported music will grow the recorded music industry. All major media – TV, Radio and Internet – grew substantially and became financially successful only after advertising supported content became available on the medium. The same will be true for ad-supported music.
Check out the Ad-Supported Music Central blog:
http://ad-supported-music.blogspot.com/