Vinyl, Cassettes & Retail

The New Gatekeepers Part 1: Online Retailer

InsoundInteresting article in the July issue of Business 2.0 Magazine about online CD retailer

One of the unanswered questions of music on the net is

“when people can listen to a zillion online radio stations and get instant access to hundreds of thousands of tracks, how in heck do they decide what is worth listening to; much less what is worth buying?”

The answer is probably gatekeepers. People whose ears you trust. I (and at least a few thousand others already think of Bill at online station Radio Paradise as one of our gatekeepers. has becoming a gatekeeper for more than 250,000 musicheads. And unlike many other burgeoning gatekeepers, is (as a seller of music) uniquely positioned to make money at it.

The potential conflict between the promoting quality vs. selling quantity is a minefield, but check out these early numbers: Because competes by selling hard to find and deep catalogue rather than competing on price; check out these numbers:

– Amazon’s gross profit margin on music – 10%

–’s gross profit margin on music – 30%

– Sales from titles no found on Amazon – 80%

Read the full article.

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