MySpace.com … the Hit Factory
Interesting piece on MySpace.com, noting its role in business model innovation for the music industry. Facilitating community interaction leads eventually to viabe commerce …
[…] the first serious business model for music in the post-Napster era. […] MySpace bands […] keep production and promotion costs as low as possible. They give away their best two or three songs as downloads or streams and use social networking and email blasts to reach an audience hungry for new music. Converts become zealots, more than making up for any lost CD revenue through sales of concert tickets, T-shirts, messenger bags, hoodies, posters, and bumper stickers. With little fanfare, these groups are creating a new middle class of popular music: acts that can make a full-time living selling only a modest number of discs, on the order of 50,000 to 500,000 per release.
Yes, this should you remind you of the long tail and also of this post of mine on new innovative business models for musicians.
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