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Friday, April 22, 2005

revenue models for music videos

back at the end of january/beginning of february, i stumbled into two pieces on how the music business was flopping around trying to find some new models to survive on. this was about music video distribution.

i don’t want to get too far into the history of the music video, but i will say that generally speaking, the music video has been viewed as an advertisement for the album, much like the tour was to “support the album.” the album, of course, being the unit that matters for the record company, since their revenue structure is, historically at least, built on album sales. the current trouble probably has something to do with the death of the album.

in any case, it’s obvious that the record companies need to find new revenue models, and they’re willing to try anything.

universal and warner have realized that the music video is a product unto itself, and as such can be sold (or, rather, monetized):

Universal Music Charging Video Nets to Air Artists [ny post, february 1, 2005 – now locked up behind a pay-per-view model itself, and certainly not worth $3.95]

Universal’s new policy is believed to be the first in which a record company has decided to charge per video for every service that exists.

MSN is the first to sign on under Universal’s new policy. Universal’s existing deals will remain in place and be renegotiated later.

then there’s warner…

Unlimited basic video clips are included, however, premium content such as music videos and 3D games are available for an additional fee, including WMG music videos for $3.99 per music video.

posted by roj at 10:15 am