SONG CONTEST BLOG

Yesterday, ReverbNation announced their partnership with Audiolife and the soft launch of the Reverb Store, a robust and fully-integrated e-commerce solution for artists and agents to sell directly to their fanbase.  From do-it-yourself T-shirt designs to comprehensive earning reports, the Reverb Store is as turn-key as the ReverbNation ethos.  Best of all, it includes all the social media promotional widgets and collateral you would expect as well as seamless integration with ReverbNation’s existing marketing features.  Anyone can open a store, create as many custom items as they want, and operate the store for free.  No monthly minimums, no monthly fees.

“The Reverb Store allows artists to layer a purchasing opportunity into every fan interaction they have online, whether it’s at Facebook, MySpace, a blog, or the band’s own website.”
– Michael Doernberg, CEO of ReverbNation

“Artists need solutions that can help them grow their fan base and convert those fans into customers.  The Reverb Store is the total package, combining the best of ReverbNation and Audiolife.”
– Brandon Hance, Founder and CEO of Audiolife

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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.

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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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Twitpay.me, as the name suggests, is a service for sending payments via Twitter.  Twitpay makes a note of a “promise” to make payment (which can be cancelled at anytime) and allows the payer to settle the payment using Amazon Payments.  The honour system is in play here to a certain extent but, as a payment instruction on Twitter is as public as any other Twitter update, the payer will look like a schmuck (or Twit, if you’re British) to his followers if he doesn’t pay-up.

The company has leveraged Twitpay for a bare-bones retail and distribution system for content copyright holders (e.g. musicians and music promoters).  Using Retweet Commerce Suite (or RT2Buy), artists and their agents can upload and store their music on Twitpay and tell their followers about it.  Twitpay provides track samples, monitors “promises” to purchase, and delivers the content.  The promotion may look something like this:

Just finished a new track “Get Your Rocks Off” available now for only 99c RT2Buy http://rt2b.me/232xe

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LoudFeed made its introduction on Hypebot yesterday as yet another website and widget creation service for artists.  In terms of features, LoudFeed appears to be competing directly with Nimbit, which currently provides a more complete and competitive solution in my opinion.   Although there are a number of distinct advantages to managing your own sales and distribution hub, I’m still not convinced that you can’t get everything you need from Word Press, along with ecommerce plugins, and a super SEO-friendly architecture, for free.  Check out WPBest.com for premium themes and WP-Cumulus for a cool dynamic Tag Cloud.  TDMhosting will host your Word Press site for $4.99.  Bargain.

Following his successful ‘free’ distribution initiative in the UK, Prince, who is both a pioneer and a royal pain in the industry’s ass, is following up on his previous co-venture success with an online ‘bundle’ initiative launching on the 24th March at lotusflow3r.com.  For $77, Prince fans will have access to three new albums from the artist presently known as Prince in digital format as well as physical through Target stores across the US.  The site will provide an entire experience around the music and will undoubtedly create new buzz for this extraordinary recording artist and performer.

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.