Artists Create New Music Revenue Models
(* Source : David Fischman *)
Years after the Napster revolution liberated music, industry labels are still hot on fighting the war on piracy. Earlier this month, the association representing big players like Capitol Records and Sony BMG hailed their first victory ever This past week at CMJ Prince has been working this model with much success. The artist, who escaped his contract with Warner Music in 1994, had the music industry in a huff when he gave his most recent album away with a British newspaper. A digital music pioneer, Prince also lent early support to P2P and was one of the first to sell music directly from his website. But free music can actually make money again. Bands and labels should stop working outside the trend and, instead, ride the digital wave by directly engaging fans. More here 
on the legal front, a $222,000 penalty against a Minnesota woman found guilty of illegally sharing music online. But few, if any, believe this isolated win will alter the decisively linear trend of those swapping tunes on the web. At this point, people see the content issue as settled: free music is their right. If the establishment standing in their way has any knowledge of history, they’d work to find new ways to engage “the people” in order to stay relevant—or perhaps more importantly, employed. , musicians, managers (and those aspiring to be) filled rooms at NYU’s Kimmel Center to hear industry advice on how new bands can “make it” in these changing times. One panel, “Music Business Primer: Marketing and Promotion”, had a message for the music industry—you’re not going to win this one, recognize that free music is the future and just work to control it. The panelists suggested that bands should consider releasing free downloads as a way to build community around their music. The MuseBox’s George Davis described the new revenue model well: “It’s all about tickets and t-shirts.”
Now Madonna is following suit by leaving Warner Music and signing with Live Nation for a $120 million 10-year deal. As she explained, “The paradigm in the music business has shifted.” While the deal will require Madonna to produce three more albums, the real focus is clearly on expanded touring and merchandise that Madonna, as her own brand, can sell to fans. The Live Nation deal includes all-things-Madonna, including everything from her website to DVDs, music-related TV and film projects, and corporate sponsorships. For someone who is a walking commodity, perhaps this is the best way to go.