AN OUNCE OF MUSIC BUSINESS PREVENTION

The digital distribution and manufacturing services, plus the multi-media manufacturing offers by Creative Space, are alluring; however, the options for book and film production raises some questions about the details of these offers from the POD service provider. Since maintaining inventory levels for published books can be tricky in the event of slow book sales, then, the inventory control by way of manufacturing is a bonus; moreover, despite the added services, a further investigation of their basis for calculating the price tag on these services requires further investigation - at least for the physical CDs. Although digital audio downloads account for 40% of sales, there is a lot of grey area in those figures when it comes to independent or emerging artist album sales (especially since live performances are where the bulk of the money for an artist will be made). The Creative Space reasoning of $25 per CD in order to justify their costs seems a bit off the target by ten years with current market prices of $9.99 to 14.99 per album. Actually, Creative Space is an Amazon company and may be not be needed for music production. Since 2008, following over 7 years of strategic market observations, two of the most effective digital download, CD inventory warehousing and CD manufacturing services for independent artists or labels have merged (i.e. Disc Makers, CD Baby, Amazon, iTunes, etc.).  These companies’ track records are more convincing for a small record company or artist with a skeleton budget. The financial risk is more secured with theses established companies than with the alluring offers of a new service with a dazzling array of one-stop shop services. Therefore, in order to get a bang for the buck, consider the quality of music production and distribution services from a long-time professional music business company like Disc Makers and their partners.

REFERENCES:

1) Digital Distribution; http://discmakers.com/services/WebDistribution.asp

2) Creative Space Distribute and Selling Index: http://www.createspace.com

3) Managing The Artist’s Tour; The Business of Artists Management 4^th Edition; Xavier M. Frascogna, Jr., H. Lee Hetherington; pp. 204-205

What A Difference In A Decade Of Music Business

One thing was clear when a news headline in 2003 reported that $1 million dollars worth of digital downloads for music MP3 files were sold by Apple Music’s iTunes: music business history had ‘OFFICIALLY’ been changed. Following the 7-year strategic partnership between CD Baby and Discmakers, it is no surprise that a ‘formal’ merger between the two companies would occur.  Although this business deal would happen in 2008, by looking back on the digital change in the industry, the commercial shift in the process of music distribution ‘officially’ began between 1999 and 2000 with the selling of the first MP3 device – the Diamond Rio Player.  Those of us following and participating in the music business trade at that time knew that the copyright lawsuits of Napster with BMG, creation of consumer MP3 players, challenges to make viable digital rights management systems, text voting of American Idol, and the commercial advancement of digital satellite radios were legs in a race to monetize MP3 music files or digital downloads of music and entertainment. Ten years ago it was crystal clear for music business professionals that everyone besides the giant music business companies, warehouse retail stores, and computer technology businesses would be watching the on going battle for supremacy in the music business. As a matter of fact, following the 2003 revelation of Apple’s digital gold rush with iTunes, the subsequent 7 years have really been similar to the epic battles between the giant creatures like Godzilla and King Kong on Monster Island. Anyone familiar with those classic monster films already knew that in this music industry version of Monsters Island that the supporting roles of the tiny militarized armies with civilian onlookers would be played by the undercapitalized independent record companies, music retail stores, and general consumers. A decade later, now that the dust from the giant’s fighting is settled, we can describe how the monetization of music in the digital age made a difference in this past decade of the music business.  

RFERENCES (Blog 1):

1)   Bye, Bye, Baby: Discmakers Buys CD Baby…, ;Digital Music News;  http://www.digitalmusicnews.com/stories/081508disc ; Presnikoff, August 15, 2008

2)   Discmakers Acquires CD Baby; Billboard Magazine;  http://www.billboard.biz/bbbiz/content_display/industry/news/e3iba088905bb5e4048f0693d160e5a346e ; Cortney Harding; August 5, 2008.