October 2, 2007

Radiohead's pay-what-you-want album sale has increased the dialog about alternative business models and, in the case of Bob Mould, got artists thinking out loud.

In a post at his blog , Mould has a survey (pointed out by Idolator) that asks readers to offer input on hypothetical forms of products and their prices. He gave options ranging from per-song purchases to per-album purchases to a subscription to all his recordings.

With 39% of the 160 votes (at the time of this post), the winner is a scheme that would charge $40 for an annual subscription to receive Mould's music. Mould describes the subscription content as "all music as it is completed, as well as exclusive content (video, artwork, stuff from my storage space," plus tour-related extras like VIP seating. I voted for the $20 subscription. As a decades-long Mould fan (through Husker Du, Sugar and his solo work) I would gladly pay $20 a year for whatever he records. If I lived in a market I thought he might visit (when was the last time he was in Nashville?) I might be willing to pony up $40.

The point is that an artist such as Mould could easily take advantage -- given the tools, of course -- of the differences in his fans' desires and willingness to pay. Look at Mould's survey results and you'll see the market is open to many different schemes at different price points. By offering single downloads, albums and subscriptions, an artist could maximize his revenue across a broader product line. By segmenting the market, one can soak up that unrealized revenue.

On a side note, a tool for an alternative model already exists at ArtistShare. The website allows an artist to create whatever product offering and set whatever price he/she desires. Take this bundle from Keith Javors. It includes a CD, exclusive live recordings, streaming interviews and written commentary about the songs and performances.

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Posted by Glenn at 2:17 PM | |