Update, Thursday 1/30: Today, I received a followup e-mail from Audiolife CEO and co-founder Brandon Hance. Audiolife has changed its cut on digital album downloads from $3.50 to $3.00, and on digital singles from $0.35 to $0.30. The company has also posted a detailed price list, including prices for different configurations of t-shirts. I've modified the original post accordingly.
I stumbled across a new service on Wednesday that, at first glance, seems to trump CD Baby for selling CDs online.Audiolife not only lets you create an online store to sell CDs and digital downloads, but it will actually manufacture the CDs for you, on-demand, as customers buy them. The up-front cost? Nothing. Zero dollars and zero cents.
This is a big deal. As any self-financed musician knows, CD manufacturing is a big investment. Print runs for CDs with a jewel case and nice color insert generally start at 1,000 for close to $1,000, though you can get away with spending a few hundred bucks for a short run, if you're willing to pay quite a bit more per disc. This is all well and good, if you sell all of the CDs you print. If not, you're left with some expensive drink coasters.
Instead of charging you up front, Audiolife takes $5.49 from the sale of each physical CD. That's slightly more than CD Baby, which charges a $35 one-time fee, plus $4 per CD sold. But, of course, CD Baby assumes that you've already paid to manufacture CDs.
Audiofile will also let you design and sell T-shirts (they keep at least $4.82 per shirt, depending on the type of shirt) with no minimum purchase, and create and sell ringtones either from MIDI files or samples of the actual song (they'll pass along 50 cents per download, but the phone company sets prices). The online store isn't a static Web site, but rather a widget that you can place on your band's home page, or on social-networking sites like MySpace, which is still a necessity for musicians (though it's been surpassed in total users by Facebook).
If you're only interested in digital distribution, Audiolife may not be the best deal. They take a cut of $3.00 of each album download and $0.30 of each single-song download sold through your online store, and don't distribute them to third-party stores like iTunes. In contrast, CD Baby lets you keep 91% of all revenues from downloads, minus its one-time up-front payment of $35 and any fees from third-party stores, and Tunecore takes no cut but forces you to pay an annual fee of $10 per song or $20 per album. Both of these services will redistribute your songs through major stores such as iTunes.
I've read through the Audiolife FAQ, and I can't find any obvious gotchas--artists retain the rights to their music, deals are nonexclusive with other distribution sites, and their bulk price list looks pretty competitive with Disc Makers, if you want to buy a bunch of CDs to sell at shows, give away in press kits, or send to radio stations.
With no up-front costs or exclusivity contracts, there's not much to lose--if you find out that Audiolife isn't serving you well, you're free to move on.
Covering Microsoft for the last eight years, I've seen this pattern time and time again. Internet trend comes along. Microsoft watches. Trend picks up steam. Microsoft watches. Some other company--usually a start-up--creates a site that perfectly crystallizes the trend and achieves a surprising spike in traffic. Microsoft creates a product team somewhere in the bowels of its online organization to come up with an answer. Six to eighteen months later, the imitation launches to general yawns in the press and perhaps some temporary spikes in traffic thanks to Microsoft's massive online reach. (400 million-plus registered users--that's the number of Windows Live IDs out there, and it's sure to get you some cross-traffic.) Endgame: obscurity. Think of MSN Soapbox versus YouTube. Or Windows Live Expo versus Craigslist. Or MSN Music.
This takes the cake for me, though. This week, MSN U.K. launched a new site, MSN Unsigned, that proposes to give unsigned musicians a new chance to reach a bigger audience. Sort of like OurStage has been doing since 2007, and MySpace has been doing since 2004, and Sonicbids since 2000, and CDBaby since 1997, and IUMA way back in 1993. Except that MSN Unsigned doesn't let you upload audio clips, create a home page, find gigs, or communicate with your fans. Instead, it's simply a vehicle for bands who own the rights to their music (look ma, no copyright infringement lawsuits) to upload videos via Soapbox, after which MSN will review them and promote a few on the front. Never mind that most unsigned bands don't have the budget to film a video, but every garage band worth its salt has a folder on their computer filled with music clips. Oh, there's also going to be articles and advice, like this priceless set of tips for aspiring guitarists. (Someone tell Keith Richards--watch the sauce!)
In all seriousness, if you're going to do something halfway, why bother doing it at all? It just makes you look silly.
Most musicians want to concentrate on writing, performing, and recording. The first two are like breathing and eating, and the third has become much easier in the last decade thanks to the ongoing revolution in digital technology--you can set up a decent computer-based recording studio for a few thousand bucks. But once you're done recording, then what? For artists without a record label, promotion and distribution are two of the thorniest tasks--they take a lot of time, and you learn a lot of lessons (and meet a lot of rip-off artists) in the process.
Launched today, HyperDIY attempts to provide an all-in-one resource to help independent bands accomplish many of the nuts-and-bolts tasks that must accompany a new release. For $579, they'll take up to 12 of your finished mixes and master them (which means balancing the equalization and levels so they sound more like a professional radio-ready recording), press your music onto CD-Rs that (they claim) look and sound indistinguishable from traditional audio CDs (which cost a lot more to manufacture at low volumes), create MP3s, distribute the CDs through CDBaby's one-stop distribution network (which includes placement in both retail and online stores), distribute the MP3s to iTunes and all the other big online services, and create and distribute an electronic press kit to their opt-in network of contacts in the music industry. Other packages involve greater degrees of promotion, such as contacts with radio stations and a professional photo shoot, and there's a one-track "appetizer" for $195 that lets you try the service before committing to releasing a full album with them. They'll even handle mixing for you as long as the basic tracks are in good shape.
As a musician, I'm always hesitant to pay money up front for intangibles such as promotion, but HyperDIY avoids promises of rock stardom--they'll get your material out there, but if it's no good, there's no "suck button" they can turn off. The prices seem in line with what you'd pay to do such things on your own, especially if you budget your time in. Unlike a label, once you've paid the up-front fee, they won't take a cut of your sales revenue (although they might take out some administrative expenses, such as 10% from Amazon.com sales, or CD manufacturing if your disc takes off). Of course, their first sales will involve a lot of trust on the part of artists--as a new company, they don't have any track record yet.
What don't they handle? Booking. Getting gigs and arranging tours is probably the hardest and most thankless task faced by any beginning band, and one of the great benefits of working with a label--they usually can hook you up with a booking agent who can accomplish these tasks much more quickly and effectively than musicians can themselves.
Hip hop giants Public Enemy will release their next album via digital distributor TuneCore, according to a story in yesterday's New York Times.
As a musician who's recorded a lot of CDs with unsigned bands, I'm a longtime fan of CD Baby, which provides an online store for selling physical CDs, as well as digital distribution through iTunes and other online services. How do the services compare for digital distribution?
CD Baby charges a one-time $35 fee for each album you want to sell through them (digital or physical), and takes a 9% cut of each download. TuneCore charges about the same amount up-front (although it will vary depending on how many songs are on an album and how many stores you want to sell your music through), and charges an additional $20 per album per year. But they never take a cut of any sales.
If you're a relative unknown with a local fanbase and minimal tours, you might sell 100 tracks in a year. From each of those downloads, you'll probably earn about $0.60 of the $0.99 that most sites, including iTunes, charge. Sixty bucks. CD Baby takes 9%, leaving you with $54. TuneCore's always going to be better in that first year, as they let you keep the full $60.
But in the 2nd year, you'll pay TuneCore $20 per album regardless of whether it sells or not. Or you'll pay CD Baby 9% of your gross from digital sales. Assuming the $0.60 per download is accurate, the breakeven point is 370 downloads: that is, you will have to sell more than 370 downloads to do better with TuneCore than with CD Baby. For a name like Public Enemy, that's a no-brainer. For other unsigned bands--depends on whether you tour, whether your MySpace friends actually translate into paying customers, and so on.
If you're signed with a label, they've probably already covered digital distribution for you, and the contract says what the contract says.
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