SONG CONTEST BLOG

Duncan Freeman of Indie Music Tech uncovered an interesting startup over the weekend.  Smirp, in spite of its long-winded and confusing ‘how it works’ page, is a remarkably simple and practical service, allowing artists and music promoters to sell their MP3s at a customer-determined price point directly via email.  The set-up is brilliant: use your existing Google, Yahoo or other OpenID username and password to log in instantly, link your account to your Amazon account, upload your content to your Smirp ‘name-your-own-price’ page (example), and promote this page by embedding Smirp buttons on your website or social network profiles.  Your customers will click, enter their email, name their own price (or select the minimum price you establish) and receive a link to download your MP3s via email with a 12 hour lifetime [for security reasons].  At face value, it’s similar to Twitpay, the Twitter-dedicated payment solution.

Smirp’s two-tier pricing is more than fair: $6/month for unlimited use or Free in exchange for 20% of your proceeds.  On concept, inspired by Radiohead’s In Rainbows campaign, and ease-of-use alone, this is one of the hottest digital music distribution solutions I have come across.  Perhaps an alliance with CreateSpace, Amazon’s flexible print-per-order CD distribution service will position Smirp alongside the current indie titans, namely ReverbNation, CD Baby and TuneCore?

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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?

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MusicWeek reported that ad-supported music service and download store, We7, which Peter Gabriel co-founded, is rolling out a new monetization model whereby its users get rewarded with points for their session time which can be redeemed for ad-free days of music.  In addition, an ad-free subscription service will be offered as the portal’s premium tier.  The news comes just shy of SpiralFrog’s announcement last month that it will be shutting down.  SpiralFrog, a competing ad-supported music service, was unable to sustain its business model.

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?

POPcuts, a Y Combinator company, is an indie MP3 boutique with an interesting twist.  Similar in nature to Amie Street, the online store provides music fans with an incentive to discover and purchase new music.  Each time a track you purchased sells, you get a cut of the proceeds.  Previous buyers get a larger cut, so it pays to be a “trendspotter”.  The element of A&R role-play is one that I am discovering more and more of in various forms across the web.  See yesterday’s post on Slicethepie & Bebo.