In part one of this series (see May 31 post) we looked at how record companies are solving (actually not) their problem of cliff-diving record sales and the further diversification into the music publishing arena being the “answer” for many.
But there are some creative minds working on a new music distribution model.
In one model that’s soon to be launched, the source of royalties will be derived from new pockets. Royalties, traditionally coming from the consumer’s pocket, will now come from the pockets of advertisers when music is obtained at We7. That’s the plan behind the company which boasts Peter Gabriel as one of its founders.
Rather than fight the losing battle of illegal free downloading, the idea is to give everyone what they want and let target-advertising pick up the tab.
With We7 users tell a little about themselves so advertisements will be relevant to them. A 10-second advertisement, tailored to the downloader’s profile, precedes the song. After a month tracks are available without ads. Because downloads are funded through advertisers We7 will “deliver free, legal and safe music, video and other digital entertainment to everyone who wants to download it”.
Users get free entertainment, advertisers pay for targeted potential customers, and songwriters, artists, record labels, etc. get paid.
The We7 site explains its concept this way. “What people dislike most about advertising is receiving badly targeted messages that bear no relevance to them and disrupt their listening pleasure.
And that's where We7 is revolutionary. Because the way artists are paid is funded by downloaders who have agreed to receive advertising messages that they know will appeal to their declared interests and lifestyle.
It's this unique way of advertising that enables our downloads to be free, ensures artists are paid and provides downloaders with messages about the products and services they really want.”
In the next of this 3 part series we’ll look at another creative solution being used by some folks I think you’ve heard of.
Till then, keep writing!
