Bookmark this The Records labels are mad and trying to get back…Too little too late?
August 14, 2008 4:12 am
AudioMicro read about how the record labels are trying to bring to market an advertising based streaming music service . It seems that the advertising based content model just won’t die. What a total racket the ad based model music model it. Here’s how it works – your content is listened to and becomes a part of the user experience on someone’s website, and ads are slapped all over the site by sponsors using affiliate ad net works. Of the monies delivered to the website for running the ads in front of their audience, you get just a little portion of the pie – likely less than 5%. That’s right, a measly 5%. The website keeps a portion, the affiliate marketing / ad network keeps a portion of it, the record label keeps a portion and you get suck with a nickel on ever dollar instead of 50 cents on the dollar with micro stock music and royalty free music sites like AudioMicro.
What’s an ever bigger killer to the independent musician is that it takes the muscle of these major labels to get you into the proposed, highly speculative, music maffia advertising network, as only artists signed to the majors will make their way into syndication. It sounds pretty much like it would head straight down the path of the broadcast radio industry (if it ever even makes it’s way to market) – closed doors, payola, and under attack by other digital content delivery networks (in this case, Pandora, Slacker, Last.fm, imeem, iLike and the rest). Let’s not get ahead of ourselves, if the idea has been in development for 4 years already, as these sources suggest, we predict it will never see the light of day; however, it would be nice to see at least one web 2.0 record label sponsored idea make it to market, regardless of its impact.
