Trent Reznor releases Saul William’s album download info
As of 1/2/08,
154,449 people chose to download Saul’s new record.
28,322 of those people chose to pay $5 for it, meaning:
18.3% chose to pay.
Above are the stats Trent Reznor released on his experimentation with a new distribution model outside of the record label. Chris Anderson of Long Tail fame, points out that this actually results in a $141,610 without a record labels interference. Reznor previously stated that on Saul’s prior album (released through the studio) for a $16 CD, he would get $1.60. Using Reznor’s data, Anderson says Saul would have made $54,235 on it. Anderson argues that Reznor/Saul worked out better this way most likely.
The problem is we’re missing some of the data. Trent only says that the studio costs to produce the album were extremely expensive along with setting up the distribution system (server/bandwidth/etc). It is possible that these are high enough to make this a net loss comparison for Reznor. But Anderson isn’t the only one missing part of the picture. Although he may have released adjusted numbers, there’s a chance the conversion rate Trent released is actually deflated. Many people may have downloaded the free version, listened to it, and if they liked it returned to purchase a higher quality version. These people should be removed from the free download statistics and placed in the paying column (not just place in both). This would create a rate of 22.5%, still not as spectacular as Trent/Saul likely hoped but not bad for a niche artist.
The numbers might not be done yet though. Keep in mind, they didn’t spend any time on traditional marketing, instead focusing on word of mouth in their respective fan bases. However, the experiment did get exposure outside of those channels simply by being a new experiment in music distribution. As a result, some of the free downloads (and ideally for them some of the conversions too) were people that would have had no interest in the album previously but checked it out just because it was being offered free from the artist. If a larger number of artists released this way, the number of free downloads might have been significantly lower (and the conversion rate presumably higher if we can assume fans are more likely to be loyal to users). I think that’s a big take away compared to what Trent says who seems down on fans not purchasing at a higher rate - a significant percentage of these might not be fans (especially considering Saul’s previous album sold so few copies). To some extent Trent does recognize this when he says, “Saul’s music is in more peoples’ iPods than ever before and people are interested in him. He’ll be touring throughout the year and we will continue to get the word out however we can.”
Maybe that’s the biggest lesson here. Take advantage of an exciting distribution system while it’s still exciting and you can get increased exposure. Sure, you won’t win everyone over, but you might grab people who normally wouldn’t have ever heard of or been interested in your work.
Share ThisTags: distribution, free, long tail, music industry
January 4th, 2008 at 12:17 pm
this reminds me of Radiohead’s last album In Rainbows’ digital release via the pay-what-you-want “business model” (which sold? 1.2 million copies)..
historically, record labels are essential to supply the (ridiculous) cost of recording, distributing, and promoting an album. now you’re seeing ballsy artists taking advantage of technology and doing stuff like this, which is a really good thing
ideally, artists are making music for the music, and this helps cement that notion. labels and producers are generalized to only care about the money, and they rake in most of the album sales anyway — i remember reading a while ago that arists only make pennies on the dollar via album sales.
as far as money goes, downloads still equals exposure. the artists reap benefits from ticket sales from tours, which they do get a large potion of. it’s pretty much win-win for everyone except power hungry labels who have plenty of money as it is
stuff like this is a good thing.
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