SONG CONTEST BLOG

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.

Starting at approximately $1000, emusu provides a turn-key solution for managing and selling your digital assets from your own domain, as opposed to distributing to third-party ecommerce websites or via social network applications.  The system is entirely web-based and the company is sinking its teeth into the music industry.  Ouch. 

The service allows its customers to create custom web pages from a series of handy templates and enable fans to buy directly from the source or incorporate its technology into an existing site geared for music retail.

The fact is that most artists simply don’t sell.  In fact, most labels don’t sell a volume of any note.  As such, even if the service was free, managing your own music sales is not too far up your priority list unless you’re shifting so many units that iTunes’ commission significantly diminishes your bottom line.  Furthermore, if MySpace, boasting approximately three million *active* musician users can’t make Snocap work on exclusive terms, how is emusu going to convince prospective clients that they can sell – and sell more – on their own?

At a time where the industry is shifting away from record sales and toward ticketing, merchandising, bundling, licensing, sponsorship, and advertising, emusu is a surprising entry into the space.  Selling recorded music is no longer the end game but rather the marketing collateral to sell something else.  The infamous 360 deal is a tribute to this strategy and Live Nation is a testament to its success.  Starbucks too.

However, if emusu can leverage its platform to forward thinking megastars such as Radiohead or Nine Inch Nails, both of which ’sold’ direct-to-the-fan, they may have a lucrative client.  Or two.