Former Record Label Head Proposed New Micro-EconomyAdded: Saturday, October 23rd, 2010
Category: Bit Torrent Freedom > The Industries Of Records, Gaming, Software, Movies
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Ex-boss of Warner Music in the United Kingdom, Rob Dickens, recently proposed an idea of a new “micro-economy”, where album sale prices are suggested to experience a dramatic drop, but later be compensated by increase in sales volume.
Rob Dickens, ex-boss of British Warner Music, is now suggesting an innovative idea of how to fight unauthorized file-sharing – establish prices at the level of $1.6 per album.
When participating in a debate held with Bertis Downs, REM manager, at the In The City music conference, Dickens claimed that the only thing they need now is a digital revolution. He pointed out that what the public sees now is just an erosion. Rob Dickens recalls that when he was running Warner Music, a chart album could cost $20, while now it can be only $12 or even $10.
Rob Dickens made a challenging prediction, saying that if record labels dramatically decreased their prices, consumers would be able to buy much more, thus increasing the overall revenue, even despite the significant drop in prices.
Ex-Warners head called a proposal a “micro-economy”, allowing lots of consumers make smaller purchase, thus capturing sales which are currently lost to alternative illegal but free sources.
Dickens says that usually music fans have to decide what can or cannot be bought, and the remainder probably acquired illegally. At the same time, if the music fans lived in a micro-economy, that would not have to be a decision – they’d simply say what they like and they’d buy it.
Besides, Rob Dickens emphasized the number of albums that had become a kind of an afterthought for musicians in terms of profits a long time ago – for example, Prince has given away free copies of his last CD with different European newspapers and magazines. Meanwhile, one should remember that musicians can only earn 2.5% of all their album sales.
Live performances and merchandising still constitute a great share of musicians’ income, which means that any increased promotion will surely help them sell merchandise and tickets for live performances.
Of course, his proposal will face opposition from many record labels, but it is quite sound. Considering that digital music cost nothing to distribute, low prices could drive a teasing alternative for majority of the consumers who earlier preferred unauthorized file-sharing.
October 23th, 2010Posted by:
Saturday, October 23rd, 2010
|What the guy is stating "micro Economy" is in fact another word for which we all have been stating - Digital Economy..|
If this guy is stating a whole album at $1.60; then how much is the "artists" going to get?
If they can sell a whole album for $1.60; then how much is it really costing the record industry to manufacture these albums?
Looks like we are starting to see what the "true" profit margin the record companies have been making...
They are being seriously screwed over and it isn't the pirates doing the screwing..
What is happening is finally due to technology the REAL CONTROL OF THEIR ART is in the hands of the "artists" NOT THE RECORD COMPANIES. The record companies will soon have to work hard to keep an "Artists" or even get hem to sign a abusive contract in the future. When they can freelance all the recording and production work themselves. Hiring or contracting people to do this is far far cheaper and more money in the "artists" pockets instead of the Record Companies. As it has been stated over and over the "artists" make their real money doing concerts and selling merchandise; well all they have to do is record those concerts as "live" albumas and do studio work as well; then all the record companies are going to be doing in the future is looking into their window like a kid at a candy shop with no money..
It has already been proven to work for the "artists" this digital business made and they have made millions from it; the record companies zilch..
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