The siren calls
TuneCore, which helps artists distribute work to music/video outlets like iTunes, eMusic, Rhapsody, is launching a new program for "indie" artists through January 1. The company charges a flat yearly fee to distribute singles ($10) and albums ($20) to online stores, then charges $1 per additional song or store, and lets artists collect revenue from sales and retain rights to their master copies.
Its latest effort pairs independent artists to willing sponsors, enabling musicians to offer free downloads to popular tracks from sites buttressed by banner ads.
In 2011, half of all music sold in the US will be in digital formats, Forrester Research projected earlier this year.
The program's first sponsor is IK Multimedia, whose $5,000 infusion will be split among participants based on click-through performance. For example, if one band generates 100,000 downloads and another just 10, the money will be divided based on those proportions, explains Ars Technica.
Bands can decide how best to promote their "free download" link, but options include the ability to display it within an adbox or in blog-friendly embed form. Fans directed to sponsored sites will receive a code for a free download of the song they want, most likely after providing useful marketing information, such as an email address.
TuneCore hasn't yet signed additional corporations, nor does it allow for customer opt-ins. But the company is optimistic about its business model: sponsors get eyeballs and page views, and unsigned artists can monetize their labors of love.
Traditionally, record labels decided which artists merited marketing, then used the resulting fame to generate revenue. But with the social features offered online, musicians can connect directly with fans — letting the numbers determine their value.
Options are plentiful. RCRD LBL, an "online music label," lets users download free music on webpages sponsored by labels like Nikon. (Sponsored messages also appear within users' iTunes interface when they play the track.)
We7, introduced by Warner Music UK and Peter Gabriel, provides ad-supported streaming music.
And in September, MySpace launched an ad-supported streaming music and video service, which includes shareable playlists, the ability to buy tracks directly from Amazon, and merch-selling capabilities via SNOCAP.
