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Old 27th November 2007
  #5
Here for the gear
 

The only other solution that I can think of is to make the singles $2.99 retail and MAYBE the labels will do some promotions for $.99 or $1.99....Now, with this model, the retailer would keep 1/3 of the selling price..I do believe that if this model is going to work for us, it needs to work for the retailer as well, and at that price and "1/3 to them - 2/3 to us" model, it would allow them to make money WITH us...
Now, of course this model would cause illegal file-sharing to increase a bit, however if we could receive some continued help from the government to keep cracking down on these peer-to-peer sites, as it seems that they have started, that would help....

Here would be the real benefits:

1.) More revenue and price control by the artist/label
2.) More revenue means more promotion money available to bring the music to the masses
3.) More financially stable labels and artists
4.) A much "easier" time to get the public to buy the album for $12.99-$13.99 (retail) instead of each of the 2-3 singles that they like at $2.99/each.

Now, I am in a bit of a different situation than many of you are here. While I am a musician, I am much more of a businessman, and am going to set-up a label, if this gets better. I have a very unique but win-win business model for this, and would work ideally under this above example, but not the way things are right now...

I have spent a lot of time evaluating where this industry is going, and feel very strongly that this is the only way to save it without "killing" the momentum that the "digital download" has created. Now, of course, you will have many people pissed off about having to pay $2.99 for a single, but just 3-4 years ago they were paying $6.99 for the CD5 or $15.00+ for the CD.

Thoughts..?