Digital NARM Day 1: Facts, Figures and Food For Thought
A few tidbits from the first day's panels:
- According to Brad Duea, 40% of the songs that subscribers stream on Napster are by the top 100 artists… but those 100 artists only account for 10% of Napster’s download sales. Commentary: Does this mean people don’t like what they are hearing? Or that search is cannibalizing sales? Duea didn’t believe either was true… he believes subscription is simply a more attractive value proposition to customers than pay-per-download. What do you think?
- David Pakman claimed that 80% of the albums released sell less than 100 units. Commentary: Long tail, anyone?
- David Hyman reminded people that despite the popularity of social networking sites (including his own), there is a large segment of the population – mostly 21 and over.
- that enjoy a more passive experience like Pandora. Commentary: Just another reminder that online music consumers are a diverse group and each segment needs to be marketed to in a different way.
- Artist manager Harriet Sternberg likened 360 label deals to short-selling stock – artists who enter them are essentially cashing a check against their future. She said that unless the deal is paying you enough money to retire on, it’s probably not worth it. Commentary: I hope Madonna can retire on $150 million.
- LAURENCE TRIFON
