The CEO of Rock Blog

The Quest of a Student/Entrepreneur to Add Value in Music and Business

Valuation of music

Music has got a value. That is no question. The question is, how much value?

Labels say music is worth 99 cents through $1.29 per track.

College friends and acquaintences tell me its worth in between 0$ and 1$ for at least 12 tracks, while adults with jobs and $ say its more convenient to use Youtube, Imeem, Pandora and other sources.

While in Europe I talked with numerous people who are hooked on Spotify, the streaming service with a itunes-like interface. You can use it for free while artists get compensated through ads. Or use it for 10$ a month and not have ads at all, which works well for fans who listen to hundreds or more songs a month.

So far, this seems like the closest profitable thing to charging people what they are willing to pay. It is a value for music that consumers can agree on in the millions. If top 40 artists want to make more $ by reaching more fans, this is the model that will get them there and keep the labels afloat. Bring it to America already!

Apple has approved a spotify app on the Iphone, which brings portability to the table as an added bonus.

Seeing as major organizations move a bit behind the curve, it might be better for people to continue putting forth ideas; ideas that add value to customers enough to make downloading illegally look like a pain in the ass.

Here are some Ideas.

1. Portability, make music acquisition/rental a portable thing (with a price close to what spotify has).

2. Accessibility – making everything easy to find (including finding ways for indies to release work as well)

3. Organizing of information – making everything databasable after music is streamed/acquired (with artist name, genre, album title, year released, label name, etc.)

It is my hope that out there there are people asking the tough questions of how value can be provided to all parties above and beyond what the current status quo is.

Can consumers, labels, artists, and sales/rental services find a common value for music.?

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October 9, 2009 - Posted by | Music Business | , ,

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