A VC in Vacationland

A few months ago, I wrote a Blog on on how Don Henley & The Eagles were reinventing the marketing and distribution of music by producing and initially selling their latest album via a single channel–Wal*Mart.  Similarly, Radiohead followed a similar path by releasing their new album on line, allowing buyers to set their own price.

We are now seeing additional variations on the same theme as Nine Inch Nails launched their new album, Ghost I-IV, on line, with options ranging from free to outrageously expensive.  You can get a free download of the first nine tracks (get it? nine tracks from Nine Inch Nails…) from the Ghost I-IV album, a $5 download of all 36 tracks, a $75 deluxe edition, including CDs, DVD’s, Blu-Rays, downloads, etc. and a $300 4 LP set on 180 gram vinyl (sold out in a few days). NIN’s contract with Interscope expired last October and it has since decided to go direct to consumer, a la Radiohead. The MP3 album also went live on Amazon at the same time, the only on line music store to offer it.

And then there is Motley Crue, which released its newest single, Saints of Los Angeles, through a computer game.  The band cut a deal with Harmonix and MTV Games to offer the track as a download in Rock Band, along with many other artists who offer their tracks for sale. Motley Crue is headlining Crue Fest this summer, a 40-city tour.  At each tour stop, Rock Band fans will get a chance to battle it out in their own Rock Band for the chance to take the Crue Fest concert stage between acts and become the local Rock Band champion.

Musicians are becoming very creative in their marketing, sales and distribution strategies, much to the chagrin of the record labels. Direct to consumer is clearly the emerging strategy in an industry that is shaking off the servitude inherent in old style record deals.  Once contracts expire, many top groups will adopt the new approaches and technologies to reach their audiences.  The days of the large record labels and record store are numbered….