YouTube Musicians Form The DFTBA Label

from the awesomeness-abounds dept

As part of its MusicTuesdays, YouTube posted a brief plug for DFTBA Records, describing the year-old record label that supports musicians on YouTube. As you might expect, these musicians understand that sharing their music on YouTube is one of the best promotional channels on the internet. So it's not exactly shocking that DFTBA officially encourages anyone to use its music (ok, not all of its music, but most of it) in the background of other original YouTube videos -- which is similar to Moby's gratis license for independent films.

It's good to see that DFTBA Records is yet another example in the music industry of a business that has picked up on connecting with fans, and it even has a built-in reminder with its name (Don't Forget to Be Awesome) to keep its audience happy. Perhaps Warner Music can learn something from these artists: instead of going after fans to punish them, it's better to be awesome and grow a fanbase. Especially since it's becoming clearer every day that musicians can connect with fans on their own, and some artists are beginning to wonder what traditional labels really have to offer.

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Record Label Gives Fans A Reason To Buy

from the targeting-the-collectors dept

Yet another example of a small indie record label that actually understands the importance of giving fans a reason to buy, rather than just assuming that if they put out music, people should just buy. This example, sent in by reader Fitte Prins, involves a small heavy metal record label in Chicago that puts out a variety of limited edition vinyl records in beautiful packaging, with the idea of attracting collectors who like the vinyl artwork almost as much as the music itself. It certainly wouldn't work for all record labels, but it's a recognition that there's a lot more to offer than just the songs.

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The Blurring Borders Of Music And Advertising: P&G Starts A Record Label With Def Jam

from the soap-opera dept

For a while now, we've been pointing out that people in both the advertising and content businesses need to recognize that they're both in the same business. All advertising is content, and all content is advertising -- whether intentional or not. The latest example of this is pointed out by reader lavi d, who points us to a clip from NPR's All Things Considered about how Procter & Gamble has teamed up with Def Jam records to create a new record label: Tag Records, which is connected to the P&G product Tag Body Spray.

Rather than bringing on a big name star to "endorse" its product, Tag Records has signed a relative unknown, and is basically promoting both this new musician, Q, and the body spray at the same time. The music doesn't necessarily directly promote the body spray, but the promotions go hand in hand, and there is no real border between the content and the advertising. If the content itself is good content, it doesn't much matter. And, it appears that other brands are following suit. The radio clip notes that the energy drink Red Bull is apparently building its own studio to do the same thing. To some extent, it's no surprise that Def Jam would recognize this as a direction to go in: we pointed out in the past how a bunch of hip hop music execs were way ahead of the curve in recognizing new business models where the music itself is part of the promotion for something else.

And here, once again, we're seeing a totally new business model for the music business. Suddenly the success of the musicians on these labels isn't as much about selling music as it is in getting the music out there to promote other products as well. This doesn't mean (as I'm sure some angry commenters will imply) that all music will soon have some sort of consumer packaged goods connection -- but it shows, once again, that new business models emerge, and those business models will ensure that plenty of good content continues to show up. Because, if the music put out by these record labels suck, then it won't do much good for anyone: the consumer goods they're connected to, the musicians or the labels.

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Up-and-Coming Label Illustrates How to Sell Infinite Goods in the Internet Age

from the true-fans dept

The New York Times has an interesting profile of Fueled by Ramen, a record label that has managed to thrive at a time a lot of other labels are struggling. The label seems to be practicing several of the principles we've talked about here on Techdirt. First, they seem to understand that the secret to success for a band is to build up a core of serious fans. Fueled by Ramen encourages its bands to engage with their fans online, doing frequent blog posts and studio updates. And the label has apparently mastered the type of viral marketing that builds excitement among the most devoted fans. Second, it has kept expenses low. It produced Panic at the Disco's debut album for just $18,000, allowing it to make its money back even if the album doesn't sell hundreds of thousands of copies. Finally, it seems to understand that the real money is in using the music as a way to market the band, and to use the band's popularity to sell scarce goods related to the band. For example, the label's bands tour aggressively, and the label has "a merchandise company that sells band T-shirts at stores like Hot Topic, as well as on its Web site." As the costs of music distribution continue to drop, it will be increasingly difficult to turn a profit on music itself. But people who recognize that the music is a way to build the band's popularity in order to sell other stuff, for which marginal cost isn't dropping toward zero, will do just fine. Fueled by Ramen is still largely in the CD-selling business, so they're not all the way there yet, but their success at a time when more traditional labels are floundering suggests that they're moving in the right direction.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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