Hypebot’s Music 2.0 Week In Review: MySpace Tries Ad Supported Music, Guitar Hero Helps Sales, 4QFor RerverbNation & More
>>> The Guitar Hero video game is leading to increased download sales for the acts featured
>>> The ad supported music model is expanding and MySpace has plans to join the experiment
>>> We continued our 4QFor (For Questions For) series with an exclusive interview with band empowerment and music discovery site ReverbNation’s Michael Dorenberg
>>> Essay: Is the march to DRM free music stalled?
>>> This week’s Coalition of Independent Music Stores Top 200 sellers
>>> OurDigitalMusic shared Top 10 Songs For A Modern Thanksgiving and How To Save Money On Music This Christmas
The latest attempts at new music distribution are to give music away free, but it’s a fallacious business strategy, whether SpiralFrog, Qtrax or Baidu in China. Unfortunately, this is unsustainable from a cost/revenue perspective, and counterproductive to the music retail market. The digital ad industry is simply not big enough to support the digital music industry.
Digital music market is now at $30 billion and rising (including illegal downloads). While digital advertising is only at $20 billion and slowing.
There’s an excellent analysis at Brooding Savage blog.
http://www.broodingsavage.com/business-analysis/ad-supported-music-2.html