A Few More Music Business Model Suggestions

from the keep-'em-coming dept

Every time we talk about the economics of the entertainment industry, someone accuses us of not suggesting any alternative business models. However, we actually have suggested other business models all the time, while showing how other musicians have succeeded in embracing new models to make money while giving fans reasons to pay. Of course, part of the confusion is that many musicians are using slightly different business models to make this work -- which is exactly how it should be. No one is saying that all musicians are going to find that any particular business model works, but there are a number of different business models that all involve using the music to make other (scarce) things more valuable and worth paying for. Reader alex points us to a column from Pitchfork Media that has a bunch of other business model suggestions, mostly focused on giving people a reason to pay, rather than just complaining that they won't pay. Once again, it's important to remember that "free" isn't the business model -- but it's an important part of any business model involving infinite goods.
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Filed Under: business models, economics, music industry

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  1. identicon
    Willton, 11 Oct 2007 @ 9:25am

    Re: Re: And the songwriters?

    Er. They get paid to write the songs? Don't see what's so complicated about that.

    Wrong. Songwriters get paid for the songs they write that sell. Songwriters are not rank-and-file employees of a record company. They get paid solely through the royalties they receive based upon the sales and performance of their music. It has to be this way because there is no objective way to value a song prior to its performance to the public.

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