[Updated July 10]
What you see above is the Brian Eno double-vinyl, double-CD plus hardbound book and free MP3 downloads package that I ordered a couple of months ago from Bleep in the UK. All the above was only $54.00 plus shipping. I say only because I believe this package and the added value it brings to the musical experience is worth far more than $54.00.
So here’s a question for musical artists and music fans – is it better to sell 1,000 value-added music packages at $54.00 for a gross of $54,000, or is it better to try and sell 5,000 regular CDs at $10.00 for a gross of $50,000?
Before you answer that question it’s worth contemplating the “added value” portion of it first. At first glance you could argue that of course it is better to sell 5,000 or more CDs but how do you put a price on perceived fan value? Think about how a fan would most likely always return to buy each new package you release if the fan perceives that the additional value is worth the extra dollars.
I know that I always do that.
[Update]
I decided to revisit this post after replying to some of the comments. The first thing that I want to make clear is that I was not expecting bands to start releasing a media package that costs $54.00. I was hoping to start a conversation around the idea of “added value” as an option rather than relying on the tired “CD-only in a jewel case option.” I also wasn’t expecting to hear from someone like Ben from Kill Rock Stars who left a comment below that includes this zinger “i think this idea works in the fantasy world where everybody works at ad agencies and has a lot of disposable income.” Really Ben?
I happen to work at a brand agency so maybe this is just a coincidence although I suspect not, but what discretionary income I have (and believe me it’s probably not what you think it is..) I spend mostly on music and hardcover books. Ben goes on to say “for those of us living off of under $1k a month these deluxe packages aren’t appealing.” I don’t buy into that argument as it really has nothing to do with my point. For anyone living on less than $1k a month I would expect that there would be very little if any discretionary spending beyond basic needs. But I have to challenge Ben, who by his email address appears to work for Kill Rock Stars: why does that label sell great albums by great artists on Amazon for $5.00? If that’s not devaluing artists’ work and also repeating the mantra that music must be almost free, then what is it? Where is the “value” in that, in the discount?
Another weak argument amongst the comments is the usual “well they’re big artists already so of course they can do that.” That is defeatism pure and simple. My original point is that by adding value you provide more reason for someone to purchase your music, you can most likely increase your margin on the sale, and you will also most likely benefit from word of mouth and further purchases from a satisfied fan. It may be as simple as deciding not to press CDs but to press vinyl instead and sell the record with a coupon to download free MP3s. It may be that if you have CDs for sale at your concerts you don’t put a price on them and you accept whatever the fan can afford to pay. Don’t take my word for it, ask this relatively unknown band – it works. Ben Taylor, on tour, did it and he sold way more.
I consider this a forum for sharing ideas about music and musicians; if musicians want to make a living selling music they’re going to have to start being creative and maybe record labels should stop devaluing their artists’ work?
[Related post: Would you be willing to pay $600 a year for a streaming music service?]
i think it’s better to have an affordable option. i’m more likely to buy 5 $10 cds than one $54 package.
July 8th, 2011 at 9:52 amLovely package. My first response to your question is “people still buy CDs?” but I guess whether it’s a CD or a virtual album on iTunes, it’s still the same question. The answer is, either would be fine but both would be better. Why not put together a standard album package as a download, and then spend one’s creative energy on a value-added package?
July 8th, 2011 at 9:53 amof course it also depends on the average income of your fan base, etc etc etc.
July 8th, 2011 at 9:53 amAmen to that, Dave. And me too – as evidenced by the number of times I have repurchased each “deluxe upgrade” of The Who’s Live At Leeds. That may be showing my age, but speaking as one who championed the Scorpio bootleg label’s elaborate collectors’ boxes (Dylan, Beatles, Van Morrison, etc.) and Rhino Handmade’s catering to the same demographic, it was always clear to me that contemporary artists could tap into the mainline, too, by adopting a similar strategy. So yes, create a lasting artifact that aims for quality over volume in terms of hitting sales targets. Your fan base is going to be expanded via touring and social networking anyway, not $10 album sales.
July 8th, 2011 at 10:11 amSo I could buy one thing for ten dollars or five things for fifty four dollars? Sounds like you got ripped off!
July 8th, 2011 at 11:44 amHa! Didn’t see that Ben was on that same wavelength. Definitely seems like Eno’s package cost a lot more to make which also should be taken into account.
July 8th, 2011 at 11:46 amCome on, you’re talking about Brian Eno, who by producing bands such as U2 and have a strong musical history can afford to produce that kind of package, and probably do it for fun. You could say the same about Radiohead, NIN, etc.
July 8th, 2011 at 1:42 pmDon’t even suggest an unknown band to do that, you have to produce at least 300 units, 297 will be probably covered by dust in your garage.
Ask yourself the good questions instead… what can you do to be “there”.
i think another point to make is that brian eno is a lot better than most bands. i love a lot of bands and buy a lot of records, but there are only a few artists i’d be willing to spend $54 dollars in one sitting on. i think this idea works in the fantasy world where everybody works at ad agencies and has a lot of disposable income, but for those of us living off of under $1k a month these deluxe packages aren’t appealing.
July 8th, 2011 at 2:09 pmWell Ben, that’s a sweet but pure, thinly-veiled attack on me, but I can take it. If you, or anyone else at labels can’t see that people are not buying music as much these days because the “value” of music has been degraded by ridiculous deals with the likes of Pandora, Spotify etc that train music fans to expect more for less, then please ignore me. Meanwhile I’d love to see your thoughts on how we can all (me included) actually sell music if we don’t add value in a attention-deficit world? I know, let’s all sit on our hands and do nothing like the last 15 years.
July 8th, 2011 at 3:49 pmI don’t understand “what I can do to be there” and I’m not being facetious..
July 8th, 2011 at 3:50 pmOf course the packaging is expensive that’s why I was using gross figures for income. The point you and Ben are missing is that the “value” of a package such as Eno’s trickles down into other areas beyond record sales. Selling CDs via record labels has never been a large source of income for the majority of signed artists. The fan base beyond the label deal is what we should be concentrating on, that’s where bands can make real margins.
July 8th, 2011 at 3:55 pmAnother point. It seems that the fallback position of anyone who wants to debunk the idea of at least trying to do something different is the tired argument that “the band/artist is already big” therefore they can be ignored and the ideas can be ignored because that “won’t work for small bands.” So is the answer then to do nothing? Bevause doing nothing has so far not stopped the decline in music sales..
July 8th, 2011 at 4:00 pmThis is useful – How to Sell 1 Million Albums and Still Owe your Label $500,000 http://www.hypebot.com/hypebot/2011/07/how-to-sell-1-million-albums-still-owe-your-label-500000-video.html
July 8th, 2011 at 4:38 pmIt’s not only music. As a photographer I see people valuing photos less and less as well. Facebook, Flickr and cheap digital cameras have devalued my craft as well. How to add value back is the key, I am hoping this is a low point then people will get bored and crave true value again. $54 for an album you love is nothing, but compared to a $1 app that people buy throws the whole $ amount out of whack.
July 8th, 2011 at 10:51 pm[...] VIEW ARTICLE SOURCE [...]
July 9th, 2011 at 8:20 amIt’s tough to draw a direct line between the “vinyl vs. digital” concept and other mediums since there’s an audio fidelity component that people who discover vinyl seem to latch onto, but I still think the primary effect of digital is to increase the value of physical objects when they’re well-accomplished, or at least **amusingly** shoddy. Eno’s package is a great example of value-added physical objects giving the entire project a bigger boost. I think the key to the appeal of the Eno stuff is that it crosses mediums. The book and artwork really add a lot to the appeal of this.
July 10th, 2011 at 7:17 amI believe in added value and I love when you have a menu of options for purchasing a new album. Whether it’s an impulse buy through iTunes that only includes the mp3′s, or a $50+ tangible copy w/ extras that looks good on the shelf and has options to download later. I think the more options for every album the better it can be for both parties. Some of my best fan experiences are buying a new album @ a live show and finding out that it includes something extra vs. the copies available online or in a record store. It makes you feel special for being a real fan and supporting them on tour, etc. Sure, I want a copy on my mp3 player, but sometimes I also want to do old fashioned stuff, like read the lyrics or see behind the scenes pics.
Reading this reminded me of a Trent Reznor interview from years back. In this example, he added value to his new album, but the middlemen ruined his concept and tried to make even more of a markup because of his huge fan base. You can chalk it up to “evil labels” but it does prove that you have to DIY to really get the result you want.
http://www.heraldsun.com.au/entertainment/music/q-a-with-trent-reznor-of-nine-inch-nails/story-e6frf9hf-1111113550202
July 10th, 2011 at 1:47 pm[...] Source: Want to stop the decline of music sales? Then do this | Pampelmoose by Dave Allen of Gang of Four [...]
July 10th, 2011 at 4:19 pmDave – do you think this idea would work if you lowered the price point by changing the supporting materials? I’m thinking of something as simple as buy the physical album, get a t-shirt bundled (kind of old school there, but you get the idea) for a few bucks more? Or is there a price threshold that keeps it from being in the “bargain” category vs the value category?
July 10th, 2011 at 7:21 pmThis discussion is as old as the hills. Above one can see that some music fans just want the downloads – the emusic. And for as small a price as possible. Others appreciate the time and care that goes into the packaging. They want the back story, they want to see where tracks were recorded, they want the pictures and all the added options.
So you want the plain vanilla Mustang V6 or the Boss 302? It can be argued the true enthusiast will want the latter. But the best course of action is to recognize all of your fans. Like the auto companies, give consumers a choice and offer the stripper version AND the deluxe more expensive version. When Porsche comes out with a new car, they offer the higher priced model first – because it gets all the press attention. Then the base model is eventually released, much to the delight of eager mass consumers.
You can have it both ways!
July 11th, 2011 at 11:09 am“So here’s a question for musical artists and music fans – is it better to sell 1,000 value-added music packages at $54.00 for a gross of $54,000, or is it better to try and sell 5,000 regular CDs at $10.00 for a gross of $50,000?”
Is this rhetorical? You’ll net about the same either way, once you factor in the costs of printing the book. I think I’d go with the $10 CD option, just ‘cuz I love having a physical, CD collection. Sure, when it works (the Numero Groups’ Light: on the South Side comes to mind), the result’s can be great, but I’m also kind of scared of every band in the world thinking they’re super-arty.
July 11th, 2011 at 8:05 pmShenaniTims, by ignoring the second part of the question you have made it rhetorical, yes. And what exactly is “super-arty” about the Eno package? As if that were a problem at all.
July 12th, 2011 at 7:25 amWhen ‘artists’ get used to the new world (which is not unlike the old world before mass-market recordings became available)…in which they have to play really well, to perform and build an audience of fans (if they deserve it) – then they will be better off. Record labels (big, small, cool, uncool, whatever) are losing ground and influence – sad for some reasons, yet not a bad thing for many other reasons; while the ‘artists’ have a growing ability to do all these things for themselves. I know, it means more actual work to be done by said ‘artists’, but so what? I seem to remember somebody a while ago saying “Be brilliant or get out of the way.” No shit.
Plus ca change.
July 13th, 2011 at 4:35 amEvery successful case is a special case http://sethgodin.typepad.com/seths_blog/2011/07/every-successful-case-is-a-special-case.html
by Seth Godin
It’s easy to dismiss strategies or plans or people who succeed by pointing out how they have something special, something irreproducible, some sort of advantage that makes their success special.
Special as in, “not available to me.”
They went to Harvard, they’re public, they’re not public, they have a great fundraising team, they have a powerful partner, they didn’t go to Harvard, they already have a reputation, they have no reputation to risk…
This is silly, as all success is special. That’s what makes it success. We don’t consider breathing a success, since, fortunately, we all can breathe.
The trick is learning about what the special cases have in common, in understanding how maybe, just maybe, you have some of the very same attributes that others have used in a new way.
July 13th, 2011 at 10:04 am[...] I’m sticking to my argument that the continued decrease in music sales is due to lack of value. What say [...]
July 21st, 2011 at 10:08 am