Comments on: the end of the album? http://www.pampelmoose.com/mspeaks/2007/03/the-end-of-the-album music . media . web. culture Tue, 14 Oct 2008 07:05:03 +0000 http://wordpress.org/?v=2.5.1 By: Tim http://www.pampelmoose.com/mspeaks/2007/03/the-end-of-the-album#comment-9835 Tim Wed, 28 Mar 2007 06:17:36 +0000 http://www.pampelmoose.com/mspeaks/?p=645#comment-9835 I liked Beck's approach with his latest album. He spent 3x times the money, from his own pocket, to include carefully designed stickers in the CD case. He encouraged his fans to design their own album covers using the stickers and share those with others online. Not sure if it increased his album sales one bit, but it's an interesting approach. Also, it surely helps to a very successful ($$$) artist to put out something costly like custom stickers in your album. I liked Beck’s approach with his latest album. He spent 3x times the money, from his own pocket, to include carefully designed stickers in the CD case. He encouraged his fans to design their own album covers using the stickers and share those with others online. Not sure if it increased his album sales one bit, but it’s an interesting approach. Also, it surely helps to a very successful ($$$) artist to put out something costly like custom stickers in your album.

]]> By: Dave Allen http://www.pampelmoose.com/mspeaks/2007/03/the-end-of-the-album#comment-9784 Dave Allen Tue, 27 Mar 2007 19:06:21 +0000 http://www.pampelmoose.com/mspeaks/?p=645#comment-9784 Those numbers are malleable based on a lot of variance in the initial up front costs. For a company like the Moose the single, one song download, is not cost effective due to back end banking costs which consist of credit card clearance, a monthly service fee and a transaction fee all of which negate the .99 cents model except as a loss-leader. The full album download (no track limit) is very profitable as there are no manufacturing costs only the fees mentioned above plus bandwidth (which we already pay for.) A CD has many up front costs - sleeve design, manufacturing, bar code, shrinkwrap and nowadays the retail price point is an issue. There has been a move to $9.99 for a CD to match the iTunes price - see Shins, Menomena. Without a label involved or another third party then the CD makes sense as there would be a decent margin in there. With a label, say Sub Pop for The Shins, then the margins on $9.99 would be slender at best. The model here that works best in my opinion would be sell as many downloads as possible (best margin of profit) followed by selling the CD direct to fans via your web site and at shows ( second best margin for profit) and finally put into retail distribution ( not recommended! sales are dropping precipitously across the board.) Those numbers are malleable based on a lot of variance in the initial up front costs. For a company like the Moose the single, one song download, is not cost effective due to back end banking costs which consist of credit card clearance, a monthly service fee and a transaction fee all of which negate the .99 cents model except as a loss-leader. The full album download (no track limit) is very profitable as there are no manufacturing costs only the fees mentioned above plus bandwidth (which we already pay for.)
A CD has many up front costs - sleeve design, manufacturing, bar code, shrinkwrap and nowadays the retail price point is an issue. There has been a move to $9.99 for a CD to match the iTunes price - see Shins, Menomena. Without a label involved or another third party then the CD makes sense as there would be a decent margin in there. With a label, say Sub Pop for The Shins, then the margins on $9.99 would be slender at best. The model here that works best in my opinion would be sell as many downloads as possible (best margin of profit) followed by selling the CD direct to fans via your web site and at shows ( second best margin for profit) and finally put into retail distribution ( not recommended! sales are dropping precipitously across the board.)

]]> By: jragel http://www.pampelmoose.com/mspeaks/2007/03/the-end-of-the-album#comment-9773 jragel Tue, 27 Mar 2007 17:59:03 +0000 http://www.pampelmoose.com/mspeaks/?p=645#comment-9773 dave- I'm wondering---in your estimation- what's the profit margin on a single download vs a 10 track album download vs a cd purchase? I've heard you talk about bank fees for single transactions...what's the overall affect here? and...I also wonder....would dark side of the moon make it in today's market? dave- I’m wondering—in your estimation- what’s the profit margin on a single download vs a 10 track album download vs a cd purchase? I’ve heard you talk about bank fees for single transactions…what’s the overall affect here?

and…I also wonder….would dark side of the moon make it in today’s market?

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