after much delay (this has been sitting here as a to-post reminder for over a month now), i’ve finally gotten around to throwing a few thoughts together on magnatune. magnatune was founded in may, made my sphere of attention sometime toward the end of the summer (probably something to do with the cc license), and eventually hit my corner of the blogosphere with this october post over at the big picture. since then, the pressure’s been on me, and i’ve been ignoring it.
magnatune comes out of the box (as it were) with the assertion “we are not evil.” so, naturally, an analysis should challenge that assertion and see if it holds up.
what is magnatune
the fully-boiled down magnatune concept is to be “not evil,” provide the traditional label functions of discrimination and distribution, and treat music as shareware.
you might have to have some old-school geek in you to really understand that statement, so i’ll expand on it a bit. a very little bit. the shareware concept is essentially “try before you buy” – the wares are distributed, freely, so you can sample them. if you like it, and you use it, you’re expected to give something back (generally, some dollars). there’s a large component of “honor system” with shareware, and the creator generally retains their rights (as opposed to plans that just give it all away).
with magnatune, the audience decides how much to give back – between $5 and $18. since i firmly believe that the value in music is created as the artist and audience come together, this isn’t a bad approach – particularly for studio musicians that really only deal in recordings.
music must be free somewhere (a point i’ve previously emphasized), so to address this issue, magnatune runs “radio stations” with their artists. it also appears that they’re not just running one track from each album (the “hit” or “single”), but really giving the whole work a shot at “airplay.” (someone should correct me if i’m wrong about that…)
what is magnatune about
magnatune does share their concepts, in detail, in public. so this wins bonus points on the transparency (heh) issue and gives me a decent chance of shining a little light. i don’t want to simply quote or repeat that material, so, go. read. i’ll be here when you get back.
basically, magnatune tries to put more control in the hands of the musicians, but not so much that the garbage gets through. as john buckman (founder) points out, many music destination sites are absolutely filled with garbage – anyone who can pay, can play, no matter how horrid they are. then the discrimination problem is entirely on the shoulders of the audience, or some trusted musigeeks.
magnatune has a sort of peer-review process which is intended to keep the junk out. so far, at this scale, it seems to work. we’ll have to see how it works when magnatune is trying to juggle 25,000 or 500,000 tracks (and oh, if they only had that problem, eh?)
with more control comes more value, so magnatune is also giving the musicians a “better deal” – better than a traditional record label contract, anyway.
what’s on magnatune
at the moment, magnatune is carrying 75 artists with 145 albums containing 1915 songs. (for those of you considering the junk factor on the album format, that’s 13.2 songs per album – we’ll explore this more on another day).
the business of magnatune
magnatune artists keep 50%. that’s not just 50% of music sales, but also 50% of merchandise and other “side line” revenues, including (importantly) commercial licensing.
magnatune is, apparently, focusing on “under-served” genres (what tim oren might call foothills. while i have my own thoughts on the values and costs of the “genre system,” it is fundamentally useful to help solve the attention problem. today, magnatune is organized into classical, electronica, metal & punk rock, new age, rock & pop, world and other. these are further subdivided, and a quick spin through the material suggests they’ve succeded in finding good stuff in these segments.
this is a relatively small selection of material, representing largely “niche” genres. the stats say the top-valued album (average price paid) is $11.50 (artist take at 50%: $5.75). the 50th-ranked album (of 145) is valued at $8.37 (artist take at 50%: $4.185). (we’ll probably expore that a bit too, on another day).
sales figures indicate that some 30% of magnatune sales are “classical.” i can’t tell if that’s part of “the plan” or just an artifact of the kind of publicity they’ve gotten so far.
i honestly can’t say if the economics will work out, if this approach can find enough of an audience to bring enough revenue to keep everyone fed, but it’s a valid and working approach.
there’s always the chance that there’s some creative (“evil”) bookkeeping going on behind the scenes, but for now we can give magnatune the benefit of the doubt. this changes the minute they hire anyone who worked in management or accounting at enron.
what to do with magnatune
try it. check out the “radio” – see if you can find things you like. and if you like them, buy them.
i’ve got some more thoughts on magnatune’s potential, but i do want to wrap up this post. heckle me for thoughts on future directions, album junk factors and magnatune album-value – those are big chunks i’ve left out today that (i think) are probably worth exploring.
what about that evil
oh, yeah. i think we can say that magnatune isn’t evil. for now 🙂