Monday, October 15, 2007

Music Industry: Making money because of content rather than with it

Radiohead offer their new album for however much you are willing to pay. Madonna ditches her record label to connect more directly with her audience.(more) The Charlatans offer their next release free to download.

Previously we've seen how the music industry has demonstrated that the price of content is collapsing more vividly than any other sector (Selling Content Sucks If That's All You Do). But perhaps it also demonstrates the new ways in which value is created - and content has a part to play in this.

Radiohead fans will pay what they think the content is worth - and then pay more for the limited edition box set version.

Prince fans scoop up their free CD on the front of the Daily Mail - and then pay a fortune for his concert tickets.
Madonna's new deal is with a concert promoter - not a record label.

The Charlatans see the wood for the trees.

All of these examples are about using content (the thing that in and of itself has little value because it is so freely and widely available) to promote the demand for the thing which is scarce (Radiohead's box set, Madonna and Prince's concert performances).

It's that Because Effect all over again (more here)

This from 'Confused of Calcutta' (see recommended blogs, left)

"When something that was originally scarce starts becoming abundant, something strange happens. You find that you start making money because of that thing rather than with that thing. That’s the Because Effect." Click here to read it in its original context.

The rate of change is so rapid it's difficult for one person to keep up to speed. Let's pool our thoughts, share our reactions and, who knows, even reach some shared conclusions worth arriving at?