MUSIC INDUSTRY BLOG

Five months ago, I began working with Audiolife, an exciting company at the forefront of the Direct-To-Fan revolution.

Direct-To-Fan is a popular business model adopted by independent artists.  As the name suggests, artists cut out the middlemen (labels, distributors, retailers etc.) and promote and sell their music directly to their fans.

Radiohead’s release of In Rainbows and Nine Inch Nail’s release of Ghosts I–IV are popular examples of the Direct-To-Fan paradigm.

There are many benefits to Direct-To-Fan.  There are many challenges too.  Audiolife provides both the technology tools and the product fulfillment solutions to make Direct-To-Fan possible and affordable.

There are a handful of other companies with a Direct-To-Fan approach, including Topspin, Bandcamp, and Nimbit.

I want to ask you this:

If you’re doing it, is Direct-To-Fan working for you?

If you’re not doing it, what’s stopping you?

Please add your comments here.

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.

Further to my post about Nimbit on the 8th March, I had a chance to communicate with the company’s Co-Founder and CEO, Patrick Faucher, this week regarding my comments.  Here is his response:

Interesting observations.
You may have overlooked the fact that we offer the only fully integrated storefront delivery system that allows you to sell, bundle and fulfill both physical and digital goods.  Also, our download card system actually drives the fan to redeem the product directly in the artist’s storefront, which is key to creating repeat customers and cross-merchandising.  One thing I can say regarding Reverb, Tunecore, etc. is that we don’t see them competing with our core business, which is direct-to-fan commerce. The reason why artists tend to stay with us is because they make more money overall, it’s easier to manage their business, and more sustainable.

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.