For the last few years, if you wanted to launch an downloadable music store it was a given that you needed licenses
from the Major Labels in order for analysts to not think your service would be a "non-starter" or investors to think
the service had a chance. Thus all the advances and dances of the late nineties.
And now, when you visit the marketing page for any of the new services, you find blurbs like the following from Sony
Connect:
"A great selection of independent music from dozens of independent and international labels, along with all five
majors."
1> Why do the services highlight the availability of Indie music, while the Market cared only about major
acts?
2> Could a wiley economist use data from the new music services, regarding the percentage of tracks sold that are
not from major labels, to argue for some failure in the "free market" mechanism that is the traditional retail outlet
(or radio station)?
Will music download stores provide proof against the un-free market of traditional music retail and radio?
Reader Comments
(Page 1)2. SPAM from table2043@yahoo.com removed.
Posted at 6:14AM on Dec 19th 2005 by 10mgcheap
3. SPAM from table2043@yahoo.com removed.
Posted at 6:14AM on Dec 19th 2005 by cr
4. I have been thinking hard about this as I have discovered many great acts who are independent amongst many genres courtesy of cdbaby.In the real world these acts would have their own niche shops stocking their albums. However online they are just thrown in the mix and when it comes to advertising they just lose out as no one can hear them.
The internet offers opportunities for the independent artist and online music stores offer them another sales outlet. However the real problem for them is getting radio play as most radio follows a slavish fixed playlist made up of the top 40 hits on rotation. It takes a brave station programmer who includes an independent artist as they will have to try and justify it to their board etc.
Internet radio is one answer as I think an artist who has their own label will be much more accomodating than a major who are pimping off a signed artists work. I think that in general we understimate the popularity of the independent artist, who on the whole are much better than their top 40 alternatives and thats across all genres.
Posted at 6:14AM on Dec 19th 2005 by glad
8. A: Will music download stores provide proof against the un-free market of traditional music retail and radio?
Q: Maybe..
Posted at 6:14AM on Dec 19th 2005 by Artist Biography
9. 1) Because music stores and online stores have different economical models. It would be prohibitively expensive for a physical store to have 50,000 albums. Not so much for an online store. Along with that, a physical store has market to the lowest common denominator because it just won't get hundreds of customers per day from all walks of life. It doesn't really cost the online store anything to market and carry the indie music.
2) Your conclusion would be correct if you thought that the purpose of the free market system was to give people what they want regardless of cost. Unfortunately, the goal of the free market is to make money. So, there is no 'failure' involved. It just doesn't make economic sense for retail outlets and radio stations to market to musical tastes held by small fractions of the population.
Posted at 6:14AM on Dec 19th 2005 by John McCollum
10. SPAM from table2043@yahoo.com removed.
Posted at 6:14AM on Dec 19th 2005 by 10mgcheap
11. SPAM from table2043@yahoo.com removed.
Posted at 6:14AM on Dec 19th 2005 by cr
12. I have been thinking hard about this as I have discovered many great acts who are independent amongst many genres courtesy of cdbaby.In the real world these acts would have their own niche shops stocking their albums. However online they are just thrown in the mix and when it comes to advertising they just lose out as no one can hear them.
The internet offers opportunities for the independent artist and online music stores offer them another sales outlet. However the real problem for them is getting radio play as most radio follows a slavish fixed playlist made up of the top 40 hits on rotation. It takes a brave station programmer who includes an independent artist as they will have to try and justify it to their board etc.
Internet radio is one answer as I think an artist who has their own label will be much more accomodating than a major who are pimping off a signed artists work. I think that in general we understimate the popularity of the independent artist, who on the whole are much better than their top 40 alternatives and thats across all genres.
Posted at 6:14AM on Dec 19th 2005 by glad
16. A: Will music download stores provide proof against the un-free market of traditional music retail and radio?
Q: Maybe..
Posted at 6:14AM on Dec 19th 2005 by Artist Biography
17. I honestly don't think that Music Download Stores will ever take over the industry of CDs. I personally am old school and still buy CDs simply becuase they are higher quality of music and I'm a stickler for quality. While yes, Music Download Stores have their convenience and easy use, I won't use them.
Posted at 1:53PM on Dec 22nd 2005 by Jonathan D.
1. 1) Because music stores and online stores have different economical models. It would be prohibitively expensive for a physical store to have 50,000 albums. Not so much for an online store. Along with that, a physical store has market to the lowest common denominator because it just won't get hundreds of customers per day from all walks of life. It doesn't really cost the online store anything to market and carry the indie music.
2) Your conclusion would be correct if you thought that the purpose of the free market system was to give people what they want regardless of cost. Unfortunately, the goal of the free market is to make money. So, there is no 'failure' involved. It just doesn't make economic sense for retail outlets and radio stations to market to musical tastes held by small fractions of the population.
Posted at 6:14AM on Dec 19th 2005 by John McCollum