1 post tagged “physical cd sales”
There’s been a lot going on in the world of Music 2.0:
- new business models: SpiralFrog and Universal's deal with to offer unlimited downloads in exchange for a higher payment by customers to their ISP, in this case France's Neuf Cegetel
- new heavy hitters (Amazon.com’s digital music service) which was supposed to launch today, but still hasn't!;
- new gadgets (160 GB iPod)
SO, over the last few months I’ve had the pleasure of talking to you about what will/should make up the next generation of music company and now it’s time for Penny Distribution to throw it’s hat in the ring: Here’s how I think a Label 2.0 will look and, although I’m calling it “Label 2.0”, there’s a reason this is Penny Distribution. We’re not a label.
As it should be, the artist,and solidifying and improving artist connection to the fan, is our raison d’etre.
I was immensely pleased, after putting together the bones of Label 2.0, that I saw this chart by Media Futurist Gerd Leonhard explaining the revenue stream switch from Label 1.0 to Label 2.0 Although it’s a simplification, Penny Distribution’s core focus will be on the elements of the music industry which are now reaching prominence.
Here’s how I see a Label 2.0 breaking down
New Media:
- Digital Marketing and Distribution – Getting artist’s music to over 100 digital music services and working to get promotion on a large percentage of those.
- Internet Marketing & Online Promotion Campaigns – Offer internet marketing services (either in house or 3rd party) to get artist exposure on 3rd party websites, online interviews and coverage in the digital media.
- Marketing Innovation/Invention – Examine new frontiers of building word-of-mouth and getting exposure online.
PR & Sales
- Media coverage – Build relationships with media (online and off) to benefit artists
- Physical Sales – Selling product to retailers, the old fashioned way!
- Talking Penny & it’s artists up – generally getting the word out.
Licensing
- Administering the copyrights of artists signed with Penny – Using our music library we’ll make it easy for music supervisors to find the music they need and we’ll proactively pitch that library to supervisors. The aim? Inclusion of Penny’s catalog is broadcast media of all stripes. Here's a great chart from eMarketer that shows why this will be an essential part of any Label 2.0.
- Cross Promotion – We’ll also try and tie Penny’s music to other activities that are not necessarily music based – sponsoring an event that will have a lot of attendees who might enjoy Penny’s catalog is one example.
Touring
- Tour support services – Promotion of live shows, pressing additional CDs, street teams – all coordinated with the New Media & PR departments to maximize awareness of a tour using online & offline tools.
- Management services – Artist management, from showcase to CD release.
- Merchandise - Designing & manufacturing merchandise for artists.
All of this is A-La-Carte, and each element will be included only as needed by the specific situation, offering the greatest flexibility to artists. There are a lot of these things artists can and will do for themselves. But for the rest of ths stuff, the stuff that really gets in the way of being an artist first-and-foremost? That's Penny Distribution.
So that’s it. That’s what 6 months of conversations about Label 2.0 has gotten me. Now, as always, I’m relying on you to tell me what you think :-)
