Posts Tagged ‘Cd Sales’

Behind Kerchoonz - the Interview Part 2

Wednesday, August 12th, 2009
Eric de Fontenay asked:

An interview with Kerchoonz co-founder and Scotland-based, singer-songwriter Indiana Gregg (part 2 of 2)

In part 2 of MusicDish e-Journal’s interview with Indiana Gregg, we learn more about Kerchoonz, the site’s multiple features and it’s Choonz origins.

[Eric de Fontenay] The site is jam-packed with features and interactive areas. What other ways will you be attracting fans to the site?

[Indiana Gregg] There is a big online gaming area, video, live chat, TV, radio, news dig, and a lot of other stuff to have fun and be creative with. There will be a music discovery and recommendation engine to help fans find new music as well as a chart system for the various genres.

Hopefully, a lot of people will benefit from the free & legal model. Our focus is on helping artists get compensated for their work. But, we’ve made it fun for fans too. In fact, you don’t even need to be a fan to find your “niche” at Kerchoonz. And fans are actually financially supporting their favorite artists without it costing them a dime.

Artists can track downloads and streams of their music. They will know what region or even city their fans are coming from. So, it can help to better target their audiences and plan their gigs. We’re hoping that artists and labels potentially earn more through Kerchoonz than they may have done with traditional CD sales in recent years.

[de Fontenay] Word-of-mouth marketing is today’s holy grail. What tools does the site provide to empower fans to support their favorite artists?

[Gregg] One way is through the use of “KWIDGET,” interactive widgets that help spread the word. The “referral KWIDGET” promotes the site by allowing users to paste a banner on forums, other sites and in emails. For every band or pro member that joins the site through one of these referral kwidgets, the user who pasted it receives $5.

Users can help support their favourite musicians too. If a user from our site pastes an artist’s music elsewhere on the internet by embedding one of our music players, the artist still gets paid for their streams when other user’s click and listen or download a song through a kwidget. If they login and register for a band or pro account, the user who pasted the kwidget again gets $5. So, even the public can earn real money by referring bands and creative people to Kerchoonz. It’s spreading the word with a fun and financially interesting motivation.

[de Fontenay] What role will the Industry Pros play on the site?

[Gregg] As we are going to be adding two additional “User Types” - Label & DJ - Industry Pro type users will be expected to be Publishers, Management Co’s, Music & Media law firms, Engineers, Producers, Video Production Co’s, Hire Co’s, Accountants, Design Co’s, etc.

[de Fontenay] Do you handle differently artists with a large discography or labels with a catalogue?

[Gregg] Yes, labels will be allowed to upload more media and create more Sub-Profiles than a regular ‘Artist/band’ profile. Also, there are Gold and Platinum upgrade packages available to all users types offering more facilities relevant to each user type.

[de Fontenay] What role does video play in Kerchoonz? Will video creators also be compensated for the use of their works?

[Gregg] Yes, if it is a music video and the video ISRC is entered into the Video ISRC field, the play counts and revenue will be reported back to the Video Performance Limited (VPL) body in the UK or local equivalent.

As the site develops, it is our intent to include licences with non-music genre broadcasters for their content.

[de Fontenay] How will Kerchoonz attract artists who currently sell on retailers such as Amazon or iTunes? More importantly, how will it attract fans that love music but are primarily using file sharing to acquire music?

[Gregg] We aren’t competing with Amazon or iTunes. So, if an artist doesn’t want to give the music away as a free download, they can simply turn that function off. They can direct their fans to any online store they choose. However, they will still get paid if someone listens to their music through Kerchoonz. The streams are encrypted, so they can upload the full song without worrying about someone simply “stealing” it. If they change their mind or just want to give away a few tracks, they can do that too. Kerchoonz is flexible this way. We want to give artists, musicians, labels, bands and filmmakers interactive tools and let them choose how they want to use them.

People who use file sharing to acquire music may want to listen to the music before they download it. So, by listening to the music on Kerchoonz, they will have helped benefit the band/artists before they decide whether they want to download it or not. We hope that if they like the music, they might go ahead and support the band by downloading it either through Kerchoonz or going ahead and buying it elsewhere. If they don’t like it, well, they might not want to download it anyway. But, at least they have a safe and legal way of accessing it that helps the artists and the people who were involved in creating it. This helps give bands and artists and even labels the finances that they need to continue creating. And that’s what Kerchoonz is all about.

[de Fontenay] Since you mention “what Kerchoonz is all about,” where does the name come from?

[Gregg] Well, the name of the site came from the Choonz. Choonz are little purple people from a far off land who frequent the earth and bring us ‘ideas’. The Choonz wanted to help us find a solution to the recent crises that the music and film industries have been facing on the blue planet. On their visit, the Choonz told us that they know music makers and filmmakers have been getting ripped-off and that we must do something about it for the sake of future creativity. To avoid wars and crusades, they were able to find a peaceful solution several thousand years ago on their own planet, Kerchoonz.

Choonz believe music should be free and accessible to everyone, and so they showed us the light and helped us create a way where music can be free to the public while enabling musicians and creative people to earn a living from their streams and downloads. We wanted to help out, so, out of respect for their wisdom, we named our social networking site after them: “Kerchoonz.” At Kerchoonz, we think that the future of music won’t work if musicians aren’t compensated for their work. So, that’s us, the purple website called Kerchoonz.

Go Choonz!

The Future of Music: Music Games

Tuesday, August 4th, 2009
Josh Grossman asked:

Music labels continue to search for new ways to make money in the face of declining cd sales. Digital track sales, such as those from Apple’s iTunes Music Store, were up 27 percent from 2007, breaking the $1 billion mark for the first time in 2008. But, according to Nielsen Soundscan, only 428 million albums (including LPs, CDs, and online albums) were sold - down 14 percent from 2007. As recently as 2005, 619 million albums were sold.  Meanwhile, there are more choices than ever to hear free music online, including MySpace Music, Imeem,, and Pandora. It seems clear that music on demand is heading towards the day of free streaming whenever and where-ever people want to listen, and labels and artists will need to find ways to create music experiences for their fans that they are willing to spend money on.

What people have always been willing to pay for is a unique experience where they can engage with an artist’s music in ways that cannot be copied for free. For example, fans love to see live music because they cannot replicate that experience at home. Ringtones have been popular for over a decade. People are still willing to pay to join fan clubs because of perks like a closer relationship to the artist.

One of the most promising areas for music revenue growth is combining music with games. There have been over 30 million downloads of songs in Rock Band because fans to want to rock out to their favorite songs in game play. Guitar Hero has had over 40 million downloads and is now a $2B franchise. What is remarkable is that players have shown a willingness to pay for individual songs for use in music games despite them often costing double the price of a normal digital download. In fact, Aerosmith claims to have made more money from licensing its music to Guitar Hero than from any of the group’s previous recorded albums. Even digital holdouts, The Beatles, will be releasing a Rock Band version of their own. More music games will be coming soon, including Band Hero (for family gaming) and DJ Hero which offers turntable and record scratching games in a battle for victory in a virtual nightclub.

Other popular music games include Dance Dance Revolution, Jam Legend, and Tap Tap Revolution which is one of the best selling iPhone applications. SingStar is a competitive karaoke video game series which requires players to sing along with music in order to score points. Loudcrowd offers a constant stream of music set to a connected series of music-themed games. Through game play and interaction with others, users can earn or purchase a variety of virtual goods including apparel for their character and music tracks that can be collected for play and competition within the site. Best selling artists Fall Out Boy created an artist themed game on Even lo-fi games like lottery tickets are jumping on the music bandwagon. For Aerosmith’s summer tour, fans can win backstage passes, front-row seats, and maybe an extra few million dollars playing Aerosmith branded lottery games.

With the rise of popular casual games on sites like Facebook, Addicting Games, and Miniclip, along with the universal appeal of music, it’s a natural fit for the two to come together. Music games give labels a new way to earn revenue that users have shown a willingness to pay for. It seems clear that more will follow.

How Internet Marketing Saved the Music Labels

Saturday, June 6th, 2009
Hitesh asked:

The turn of the century brought a lot of new technology to the world and with that it brought the Music Industry a whole lot of problems. To deal with declining sales and continuous losses, record labels are finding new ways of raising money by focusing on different aspects of their business such as online marketing and consumer feedback rather than basing everything on CD sales.

Historically, record labels have based everything on CD sales. The idea of MySpace Music is innovative as they realized that they need to move into a new area of business. The Internet and the ease of illegal file sharing have long broken the business to consumer relationship. For more details go to .Rather than fighting against the trend, the industry has decided to take advantage of the easy accessibility of the Internet to move to the B to B model of marketing. MySpace is a huge social networking website with over 120 million users who go online almost everyday to check on friend updates and music. The new MySpace Music has already made millionaire deals with McDonald’s and Toyota Motors who want to advertise on the site since so many users check on artist’s updates constantly.

As mentioned, the business to consumer relationship broke down a few years back when many people began downloading music from the Internet rather than paying for CD’s. Record Labels accused these users of piracy and many cases have led to trials. In order to establish a new relationship, record labels are focusing on consumer feelings to improve profits. The accessibility to videos, pod casts, music and games via Internet makes it possible for consumers to establish a more personal relationship with their favorite artists. Rapper T.I. began sending videos in which he talks to his fans about what he is currently working on. Other artists let fans ask them questions, which they will reply to via private or public messages on the web.

Whether these strategies will work or not is uncertain, but at least the industry is innovating. Actually, they’re trying to innovate. It’s a reality that most of these innovations are started from garages and build all the way to multi-billion dollar operations. So, how is it possible that the record companies with billions of dollars of resources cannot get a handle on innovation?

Innovation has always been directly proportionate with change. The traditional business model of the music industry and their unwillingness to change has caused them to lose their competitive edge in the market, thus forfeiting billions of dollars to innovations such as Itunes. Therefore, the music industry has partnered with MySpace to make a better value proposition for the consumer offering them a means of communication, social interaction and alternate forms of music media such as ring tones and pod casts. Itunes have established this value proposition for the consumer by offering them music previews of their favorite artists and purchase of their most favorite songs instead of the whole album. The music industry is also trying to follow in the footsteps of the movie industry by aggressively promoting merchandising. These efforts are too late as the 21st Century market still proves to us that going against a trend is almost always unprofitable for businesses. For more information logon to .The music industry must focus on their current operations and allocate their resources to creating new innovations for distributing their music to the masses rather than being followers of past-favorite technologies and trends. Only then, they will be able to succeed competing against rival technology companies and recover some of the profits they have lost in the past decade.

We cannot deny the truth that Internet Marketing plays a huge role in leveraging innovation. It provides the means of broadcasting your message to millions of users and consumers with the click of a button.