Showing posts with label business. Show all posts
Showing posts with label business. Show all posts

Sunday, March 09, 2008

Oh My God, It’s Ghosts!


My Story

A week ago at around 9:00 PM, I was among the many NIN fans that screamed “oh my God!” into their computer screens. That’s right, Nine Inch Nails actually released an album, I mean, albums, online last Sunday.


Reznor had been hinting on something big for a couple of weeks prior to the release of Ghosts I-IV. At around 7:10 PM on March 2nd, he posted “2 hours” on his blog, I was expecting something by the 9’0 clock hour, but not something this big.

When I connected to www.nin.com at about 9:00 PM, the site changed pretty drastically. And more importantly, there was the text that said “Ghosts I-IV is available RIGHT NOW” on my computer screen.

I froze for a second to take it all in, but then I immediately went to the fan forum, and of course, people exploded. I typed in some inane comments about how excited I was and went straight to nin.com to get my hands on Ghosts.

But alas, it was not that easy.

I was able to cruise past the options page that listed all the editions that you can choose from. I clicked on the $10.00, 2 CD option and tried to proceed, but the pages after that couldn’t even load. Apparently most of the people have the same problem as me, because the site was so congested with people trying to order. The early birds that did get their order through reported that they have trouble downloading the files. It was chaos and confusion.

Then we came to the conclusion that we broke the NINternet , LOL.

However, I did managed to listen to the few selected tracks at AinR, and I was delighted with new music. After I calmed down a bit, I read more into the release: it is a 36 tracks instrumental album described as “music for daydream”.

Dude, that’s trippy.

I had the burning desire to own the album, to listen to it, so I went over to Amazon to buy the album for $5.00. Loaded it into my iPod, and I was amazed at the variety, the texture, and the depth.

I was able to get my order through the next day after one failed attempt. But problems didn’t end there, even though I received my receipt, my download link is nowhere to be seen (as I’m writing this, I still don’t have the download link). But I let that go, because I already got a MP3 version and managed to snatch the Apple Lossless version that I wanted from somewhere else. I got what I paid for, even though it wasn’t from the download link.

Here Comes the Analytical Stuff
The first thing that the press said about this release was that NIN pulled a “Radiohead”. While it is an acceptable analogy, there are some significant differences.

One, this is not a pay-what-you-want method. Even though there are variety of options for the customers to choose form, Ghosts have a set price. It’s offering different packages too, and this distribution method seemed more well-thought out than In Rainbows.

In Rainbows seemed more about donation, Ghosts seemed more about business.

Reznor is not giving the whole thing away for free (theoretically), instead, he used the method of free-samples to get people to buy it. he offered 9 songs for the free (through BitTorrent, no less) to build interests. He seemed more cautious after Niggy Tardust , and takes the mind of a businessman.

He took time to make this a worthy and fair purchase also: for $5.00, you get 36 songs, a PDF, and DRM-free, high quality files in the format that you want. One of In Rainbows’s complaints were bad quality, well, Reznor’s effort solves that.

Reznor is a vocal advocate for online distribution, and he’s a good man for taking a step. While he is not the first one to try online distribution (no, the first one is NOT Radiohead, they’re the first big act to do that), I think that he offered the best method so far. Business-wise. That is not to say that his method this time is perfect: the servers didn’t do their jobs right.

Of course, due to high volume of downloads, their site crushed, and people started screaming that their downloads doesn’t work. Perhaps it was poor-planning on their part, or perhaps they underestimated their fanbase.

But he fact that the site crushed and that they sold out their $300 edition under 2 days is a good sign, this means that they have business. People are coming in and giving him money. The downloads of Ghosts were ranked high in torrent sites, even if they didn’t get people’s money, they got their ears.

And here’s a larger question: will this method work for others? Yes and no. for big and well established bands, I think this plan would work fine. There’s your cheap and worthy download at a low price for the poor and the casual fans, and there’s your expensive deluxe edition for the hardcore.

For unknown and the smaller bands, I think the Radiohead method works better. The donation-esque method is not as imposing. Even a low set-price may drive away customers because they don’t know the band and are not familiar with the music, a $5.00 may sounds outrageous to them for an unknown band, I would think it’s better for them to donate according to their own will. Donating and buying is two different things. You also don’t need extra accessories like quality and PDF to satisfy your customer (but it would be nice), since the general expectation is lower for things like that with a smaller band. They don’t have the fanbase for deluxe editions either (at least not for $300), a simple release should be able to do the trick.

But who knows what the future holds? More well-known artists have to participate in order for us to imagine how things will be.

Saturday, January 05, 2008

A Few Words on the Saul Williams Stats

As said before,in October Trent Reznor announced that the Saul Williams album Niggy Tardust will be a digital release, which you can get it for free or "donate" five bucks. Well, unlike Radiohead, who is all secretive about the stats of their In Rainbows "experiment", Trent Reznor announced the stats on the Niggy Tardust album. To quote:

"Saul’s previous record was released in 2004 and has sold 33,897 copies.

As of 1/2/08,
154,449 people chose to download Saul’s new record.
28,322 of those people chose to pay $5 for it, meaning:
18.3% chose to pay.

Of those paying,

3220 chose 192kbps MP3
19,764 chose 320kbps MP3
5338 chose FLAC"

These data at first disheartened me a bit, since I paid $5.00 without any considerations and couldn't quite fathom why 81.7 % of people chose to pay nothing. Does people really see no value in music anymore in the age of piracy? I even posted on a messageboard about whether musicians should even consider the "free" option.

BUT, after reading other people's thinking and thinking it a bit myself, I guess my first reaction was wrong. People are going to get it for free if they want to, it's getting easier and being justified more and more and there is no point anymore in trying to make people pay for music anymore. While 18% is a bit low in my opinions, others said that it's still making a good profit. Yes, they make more than $140,000 on this so far, but you have to take into account the expenses involved with making a record. According to Reznor, this record didn't sound like it's made in a cheap studio with some cheap engineers. Then there is the point of "well, this record gain Williams more fanbase than he ever had"(with Reznor acknowledged at the end of his post). While I do agree this may be a long-term investment, but I guess the essence of Reznor's post was about what others can expect from a distribution method like this, and how much cash they can make from it.

And I guess these statistics will not apply to ALL the others that will come after them. The Saul Williams situation is a bit unique: He is an obscure artist, with a major artist backing him. I would expect that most of the people who downloaded this album (like myself) are NIN fans, and didn't want to risk $5.00 for something that they don't know if they will like or not, because hey, they want that $5.00 to buy a cup of Starbucks coffee, goddamnit.

There are some many more factors contributed to the results as it is. Just scroll around messagboards and comment sections and you will see the whole convention of people discussing it. Do these stats say alot? I don't know, I guess we will have to see more stats from different artists. But it's laudable that Reznor posted his stats and shared it with people. It's not clear how much Saul Williams and Reznor had make on this record, but the record is still online, and there will still be people downloading it and (maybe) pay for it.

But whatever distribution method figure out in the future, it seems that you should expect the majority of the people to get it for free, and a minority of them to pay for it.

Friday, October 26, 2007

Yay, Another Way of Selling Music




The distribution method of Saul William's new album, "The Inevitable Rise and Liberation of Niggytardust!" is what I think is the best reaction of the post- In Rainbows "experiement" . Even if it's just merely a few weeks after the news that Radiohead released that shockwaved the whole industry.

It's an improvement on the In Rainbows way of paying your money, with a set price of $5.00 or choose to pay nothing. Also, you can choose 192kbps, 320kbps, or Flac files ( better quality than In-Rainbows)if you choose to pay $5.00. If you choose not to pay, fret not, you still get 192kbps. Sweet.

And, it includes artwork and lyrics. Yay, now I know what the hell they're talking about.

Now I paid my $5.00, mostly for the cause of it. Besides, Trent Reznor produced it, so it should be interesting. It should also be mentioned that Reznor himself said he would like the same method of distribution in interviews couple months back, so I guess NIN will possibly employ the same method for the future. And yes, NIN should put a physical thing out too if they use this method mentioned above, as long as they don't cost $80.00 like In Rainbows.

Also, I heard "Break" off of Niggy Tardust, and I was pleasantly surprised. It was rich and complex, has texture and depth. Much better than comtemporary hip-hop.

Monday, October 08, 2007

Radioheads are Smart Businessmen


OMG! They put the new Radiohead album on the net! For free! For download!

I pre-ordered Radiohead's new album "In Rainbows" (got to say that's a bad title, in my opinion) last night. I just have to be part of this most groundbreaking, innovative, and futuristic musical distribution event ever in the history of the Internet and download music! Plus, I like Radiohead.


I've got to admit, I do think that this method of distribution is quite clever, giving it the appearance that they're giving the album to the people for free, thus gaining them more reputation among the Internet-oriented music fans. I've also got to say that they're the first major act to openly use this method, and thinking about a solution for the selling of music in the collapsing industry. In the way, they're thinking about the future, and giving other artists the result of their "experiment" and let the others further develop a way to distribute their own music.

But really, the album is not free.


First, it's released also as a super deluxe version that costs like $40 in US dollars (or something). Second, they asked for "donations"! I would think when most of the people pre-ordering the album on downloads would feel guilty not giving them a bit of money (I gave them 2.00 in Euro, since I'm poor and charging the credit card of my father). And I assume, people who order that album are at least have some interests in Radiohead, making them more vulnerable to the "donation" tactic. And hard-core Radiohead fans? They're throwing their money in there.

Of course, you can put 0.00 in that donation box, and I don't really think that will be a large fraction. The album can be free, but really, it's not free.

Of course, there's people saying that "I'm going to pay nothing, then I'm not even going to listen to it". Ha ha.