How much of a profit can an artist make from a 99 cent download?

[GROOVE VICTIM]

Just being curious, especially if Dance Labels decide to use this new platform.

Peace

[lucifersam]

greetings,

isn't the point about the download medium that it's almost 99 cents of pure profit, which can be "sold" an infinite number of times?

no manufacturing, shipping, cut from the shop and all that stuff that makes a record very expensive.

although i too would be very interested to know about the margins.

all good wishes

[Ben.]

well its 99cents per track, rather than per EP... and its not going to be "pure profit" since there are bandwidth and running costs involved on a download website...

however I think its got great potential... I know of 3 companies that are just about to open up sites selling underground house music like this (not sure about the exact prices yet)

[GROOVE VICTIM]

Originally posted by Ben.:
well its 99cents per track, rather than per EP... and its not going to be "pure profit" since there are bandwidth and running costs involved on a download website...

however I think its got great potential... I know of 3 companies that are just about to open up sites selling underground house music like this (not sure about the exact prices yet) I'm trying to figure out how the money is divided and who gets what. For mainstream artists this can be profitable and as Lucifersam stated, it will end up cutting out the middle man somewhere.

Peace

[lucifersam]

greetings ben, "almost [...] pure profit" not "pure profit". relatively speaking, in the context of making and distributing records, the cost of bandwidth and downloads is miniscule.

so i think it could take off. one of the key points could be the quality of the recording: i'd be willing to pay for high quality recordings, but not for something you could download (albeit illegally) elsewhere.

all good wishes

[imported_Chr_stopher]

.001 cent

[lucifersam]

how so little?

[Tony Cano]

it can be all profit if the artist started his own distribution channel less operating expenses.

why the question?

tc

[GROOVE VICTIM]

Originally posted by Tony Cano:
it can be all profit if the artist started his own distribution channel less operating expenses.

why the question?

tc I can understand if one decided to do the process of distributing his or her work on their own, but if a person is already under contract, what about label costs, distribution costs, bandwidth, and other things that come into play. How is this divided up, or is it at all?

Peace

[ October 14, 2003, 10:00 AM: Message edited by: GROOVE VICTIM ]

[Tony Cano]

my own personal opinion is that this is a different business model aimed toward helping the labels. it cuts out the middle men. the only overhead is the distribution. web space, html work, and bad width. i can sure tell you that as with the normal label - artist relationship wont change much. labels have traditionally made all the money. that's why it would be good for an artist launch his own. 100% control of all distribution.

[GROOVE VICTIM]

Originally posted by Tony Cano:
my own personal opinion is that this is a different business model aimed toward helping the labels. it cuts out the middle men. the only overhead is the distribution. web space, html work, and bad width. i can sure tell you that as with the normal label - artist relationship wont change much. labels have traditionally made all the money. that's why it would be good for an artist launch his own. 100% control of all distribution. This is what I was trying to understand. In actuality it's the labels that are profiting, not the artists.

Over the weekend I saw Ludacris on CNN for the Launch of the new Napster, and he was talking about how much work artists put into their projects, blah blah blah, and something in my mind kept asking, how is he profiting other than doing concerts and promotional deals?

Peace

[Tony Cano]

yup - i doubt the recording industry has caught up to the technology where they are offering artists a bigger cut.

by the way, it only cost $50 a month plus a small processing fee to start your own internet record label.

[Sharp Eye Washington]

Originally posted by Tony Cano:
yup - i doubt the recording industry has caught up to the technology where they are offering artists a bigger cut.

by the way, it only cost $50 a month plus a small processing fee to start your own internet record label. Interesting.

[Bougie Soliterre]

this is an excellent question.

I can't see artists making more than chump change unless they either have a large personal catalogue or are distributing other people's stuff as well. Also, in the advent of a large influx of independent record labels and music distribution networks on the net, how on earth are people gonna promote themselves? Will there not be way too much competition that many people will get lost in the shuffle anyways but this time with even less possible profit margin?
Won't it once again be a case of bigger sites absconding with all the money?
This doesn't even begin to address the issue of HOW ARE WE GONNA STOP THE BOOTLEGGING ALREADY DAMMIT!!

I feel better now, thanks