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Distribution (was Re: New Bandcamp page / Upcoming Release)



On Mar 31, 2013, at 10:25 AM, Mark Hamburg wrote:

> On Mar 26, 2013, at 11:36 AM, Matt Davignon wrote:
> 
>> So far, the deal seems pretty good. You set your own prices. The site 
>> takes 15% of digital sales and 10% of physical media sales. The rest 
>> goes to the artist. (Compare this to iTunes, where the artist gets 
>> about $1 out of a $6 download.) The artist portions go directly to your 
>> paypal account. Rather than take 10-15% of each sale, they set it up so 
>> that most sales go 100% to the artist, but 1/10 of the sales will go 
>> 100% to bandcamp.
> 
> Ancient (2006) numbers, but the breakdown on iTunes used to be:
> 
> "Currently, for a 99-cent song, 72 cents goes to the label, and 8 cents 
> to the publisher, leaving Apple's per-song profit margin at 19 cents per 
> song, he said."
> 
> http://www.washingtonpost.com/wp-dyn/content/article/2006/03/03/AR2006030301852.html
> 
> So, yes, Bandcamp is better for artists.
> 
> In Apple's defense, they aren't there to serve musicians. They are there 
> to serve the people buying music and their focus is on making that 
> process work well. Bandcamp becomes yet one more place to entrust with 
> your credit card number. I suspect that Tower Records, when it existed, 
> got a similar cut. So, if it were just about the distributor cut, what 
> Apple would essentially be offering is a better, broader distribution 
> channel (more potential sales) but with a higher margin.
> 
> On the other hand, that still leaves the musician figuring out how much 
> of the remaining 80% he or she can get. Apple hasn't set themselves up 
> to deal with independent musicians so the musician is left with record 
> labels serving as middle men.

So, what's the current feeling on TuneCore v CDBaby for iTunes and other 
distribution?

Mark