MUSIC INDUSTRY BLOG

ReverbNation, home to over 600,000 artists and music professionals, has significantly expanded its independent digital distribution service, the company announced in a press release this week.

Now, RevebrNation members can choose between two competitive, flat-fee digital distribution packages:

The “Essentials” Package – $34.95 per release, 29 sites
Submits a release to iTunes (worldwide), Amazon Mp3, eMusic, Rhapsody, Napster, MySpace Music, Last.fm, Spotify, Zune, iLike, MOG, Tesco, Guvera, La Curacao, Synacor, GetPlaylists, Secure Media, Intertech Media, InMotion Entertainment, WaTunes, Get Green Music, Immergent, and Moozone.

The “Pro” Package – $59.95 per release, 39 sites
Includes submission to all of the stores in the Essentials Package, plus submission to Pandora, Nokia, Lala, Wal-Mart (Liquid), Amie Street, We7, Myxer, Puretracks, ThinkIndie, and Shockhound.

Learn more…

Tomorrow, MySpace Music will open its gates to TuneCore artists, Wired.com reported.  TuneCore’s artists will be able to distribute their music through MySpace and benefit from streaming royalties, though the company has not commented on how much.  Probably very little.

Related Posts
TuneCore – $30 Million in Music Sales in 2009
TuneCore: A New Digital Distribution Model
CreateSpace

By the end of this year, the TuneCore Artist catalog will have earned over $30,000,000.

This means that there is a song selling by a TuneCore Artist on iTunes every second.

Currently, TuneCore distributes between 150 – 250 releases a day.

I went head to head with Jeff Price, President of TuneCore, to find out how he created the world’s largest distributor of music in only four years.

“Music distribution is what we do, and we do it better than anyone else”, Jeff started.  “We are the first place music stores come to get the music and we pride ourselves on this.  When we launched four years ago, we got to change the world: For the first time in the history of the music industry, anyone could ‘sign themselves’ and get worldwide distribution of their music while keeping all their rights and 100% of the money from the sale of their music.  That was a game changing paradigm then – and still is today!”

TuneCore recently announced a partnership with Universal Distribution (Interscope, Universal Republic, Island Def Jam, Motown, Geffen and more), bridging the independent music market with the most sought-after music catalog in the world.

“This was a deal I did solely to provide artists with more options.” Jeff comments.  “In a nutshell, in addition to regular old TuneCore.com, we will also be hosting and serving websites for Universal labels that provide artists with distribution while taking none of the artists’ rights or revenues.  If an Artist chooses to get their distribution via one of the label portal sites (as opposed to TuneCore.com), they will have a direct line into that label.  This means the label will be aware of you, have heard your music, be up to speed on the success you are having, etc.  The label can reach out to you to offer more marketing, promotion, physical distribution and anything else.  If they do, the artist can choose to talk with them, tell them no, tell them yes, tell them they will get back to them or simply decide to continue to do what they had been doing to that point in time.  All the options.  No strings.”

From physical distribution via 215 Guitar Center stores to media widgets that distribute TuneCore customers’ content across the social web, TuneCore has made a name for itself by providing dozens of opportunities centered on the most accessible and competitive music distribution model of our time: Flat Fee. No Commission.

Not distributing your music with TuneCore?  Start now with a 30% discount!

Related Posts
CreateSpace
TuneCore Raises $7 million
TuneCore: A New Digital Distribution Model

Pandora, the revolutionary streaming music and tastemaker service, and one of the most disruptive promotional platforms for musicians of every style and caliber, has imposed new rules for submission of music to its playlist database by artists and labels.  In the past, Pandora accepted music in almost any form at no cost.  Now, artists and labels must have a CD of their music, a unique UPC code for that CD (for vendors to keep track of inventory), and it must be available for purchase on Amazon, rules that most artists and labels already comply with.  However, some indies are not yet on Amazon.  In order to meet Pandora’s new criteria, artists and labels will need to obtain a unique UPC code for the physical album they wish promote prior to joining the Amazon Advantage Program at a cost of $29.95/yr, per Pandora’s recommendation, to make it available for sale.  These new measures will standardize the album artwork spec Pandora displays on its playlists, pulling all the images directly from Amazon, and linking every playable track to the Amazon store.  Amazon takes a 55% commission from sales from which it pays Pandora a share for referrals.  Considering that the Net proceeds of six or seven CDs annually will cover the cost of the Amazon Advantage Program plus the fee for the UPC code, I reckon that any artist worth hearing will be only too happy to oblige.

If you don’t already have a UPC code, you can get one here or through any number of musician resources such as CD Baby, Discmakers, and Nimbit.  Check out Pandora’s submission FAQ and Amazon Advantage Program for application details.

Related Posts
CreateSpace
Free Songs from ReverbNation – Sponsored by MicroSoft
Smirp

By distributing your music through Amazon’s CreateSpace, you can sell both your digital downloads and CDs on Amazon without ever having to finance and ship-in your physical stock.  Simply upload your digital assets (i.e mp3s, album artwork, discface graphics) and CreateSpace will set you up with a store, make your mp3s available for download, and print CD’s and ship them to your customers on demand.  Although Amazon’s commission for this service is high, duplicating CDs per pre-paid order may save you a tidy sum in the long run.

TuneCore recently partnered with CreateSpace which adds a much needed physical dimension to its one-stop, fixed-price digital distribution service.  CD Baby already offers physical and digital distribution and, since its acquisition by Discmakers, can fulfill the printing process too.  How will ReverbNation respond?

Related Posts
TuneCore partners with Musicnotes.com
WaTunes
Nimbit

TuneCore, the indie-friendly digital distribution company which secured $7 million in venture capital in October 2008, has partnered with Musicnotes.com to offer lead sheet music transcription and retail services for TuneCore artists selling more than 25,000 songs per quarter, Musicnotes.com announced on their blog yesterday.  Since its inception in 2000, Musicnotes.com has sold over five million sheet music downloads at an average of $4.95 per transaction.

“The music industry began in many ways with the selling of sheet music. The irony of the intertwining of digital downloads with sheet music is not lost on both companies,” said Jeff Price, founder and CEO of TuneCore.

On demand music streaming service, Spotify, has been on my radar since the company announced a distribution deal with CD Baby in the first week of February.  CD Baby, the leading force in independent music retail and digital music distribution, represents more than 175,000 artists which account for over one million tracks, all of which are now available through Spotify’s lightweight music streaming application.  This licensing deal marks the ‘long-tail’ trend in music availability and consumption, and celebrates the access independent artists have today to mass audiences through pioneering music services, many of which had treated indie talent as nothing more than an afterthought after securing major label catalogues.  Under the aphorism of “access not ownership”, the Luxemburg-based company has been growing exponentially since its €15.3m venture capital injection in October 2008 and, in turn, joining an elite group of legal music experience providers such as Pandora, Last.fm, TheSixtyOne, and others, which have found success in catering to music consumers through a balanced and worldly music library whilst reserving significant real-estate for up and coming artists: a pop-culture and grassroots music mix that appears to be paving the way for a new industry.  A spot in Spotify’s limelight is not yet available directly for small acts and labels but CD Baby has certainly lowered the barrier of entry.  Thank you Derek or, rather, Disc Makers for making this possible…

Related Post: Jango AirPlay

SpiralFrog, the highly profiled ad-supported download service, has shut its doors after a lukewarm reception in the UK and endless content licensing and upper management strife in the US prior.  The company was the first to deploy a ‘feels-like-free’ music download service in 2006 and secured both Universal and EMI, with competitors Qtrax and We7 following suit with similar ad-supported download services, before spiraling to its demise.

Digital music distribution is a hot item on this blog and those who read it know that I keep a close eye on the three major players catering to small independents, namely ReverbNation, TuneCore, and CD Baby.  All three have lowered the barrier of entry for indie artists and small labels to distribute their catalogues to iTunes and other major online retailers for upfront fees as opposed to hefty commissions by the likes of The Orchard, INgrooves, IODA, IRIS, and others, who generally avoid small players anyway.  Now, a new digital music distribution dotcom has emerged but with an ad-supported business model.  WaTunes aims to thrive on ad revenue by providing artists and labels with a free (no frontend fees, no backend commissions) distribution channel to online retailers such as iTunes, Napster, and eMusic.

The slightly questionable website service description and makeshift appearance promises to provide the same level of content marketing and distribution as its rivals, and much more.  In theory, WaTunes is offering a very attractive service to a huge potential market, but is it sustainable?  SpiralFrog, We7 and Qtrax have yet to prove that their ad-supported download services have legs.  In this economy, I’m not sure that any upstart can scale on advertising revenue alone.

Business models aside, I’m somewhat concerned about WaTunes’ cryptic service description and the fact that their web pages are riddled with spelling mistakes and poor marketing copy.  It’s a bit like walking into a fancy restaurant only to notice that the toilets are overflowing with shit halfway through your dinner.  Going with my gut here (no pun intended), I feel that the musician-led platform may be biting off more than they can chew… but I would love to be proven otherwise.  I like free.  Who doesn’t?

Over the weekend, I learned that Nimbit, which has been on my radar since Jon Delange of Tinderbox Music introduced me to the company’s CEO, Patrick Faucher, several months ago, has secured venture capital to the tune of $1 million.  The company provides eCommerce solutions for artists and music promoters, and bespoke services such as digital distribution, CD/DVD replication and merchandise production, and web design.  The company’s turnkey approach incorporates web technology to market and distribute digital music with physical solutions such as download cards and promotional prints.  Nimbit appears to be acting in two ways: the first, as a technology company developing digital retail and marketing solutions such as embeddable storefront apps; and, the second, as a broker for commercial print requirements, from CD/DVD replication to custom-branded merchandise which complements its web facet. 

Nimbit’s DownloadCards (credit card-sized branded cards with a unique ‘download’ code) can be sold or given away to the fan at the live venue and later redeemed online as digital tracks through a custom Nimbit store.  This is an excellent example of digital commerce converging with physical commerce, however, DiscRevolt offers an almost identical solution.  Emusu is also competing for a share of this market.  In terms of digital music distribution, Nimbit is facing strong competition from TuneCore, ReverbNation, and CD Baby.  As for print and duplication, Discmakers dominates the US music market and recently acquired Oasis, another formidable opponent in this space.  Although Nimbit’s individual services are not particularly competitive as stand-alone features, the services, as a group offering, and Nimbit’s convenient all-under-one-roof approach, may satisfy artists and promoters with a slight edge.