Digital Distribution may not be all it’s cracked up to be

“We’re going Digitaaal. Di-di-di-gitaaaal.. That’s right! Everyone is trying to jump on the speedy, convenient bandwagon that is the internet. And in the music industry, people are seemingly moving quicker than the rest. But is Digital Distribution really all it’s cracked up to be?? Well, you be the judge….Check out some of the pros and cons of going digital listed below:

PROS

Digital = Direct sales

Without the need for physical manufacturing, distribution or stocking, digitally distributed products involve fewer middle men, and by doing so can return a far larger portion of their price to their creators.

Digital = Global availability

Any one person with an Internet connection will be able to purchase and obtain a digital copy easily. All while reducing or removing delivery cost, and traditional waiting time.

Digital = Back Catalogs

Digital products do not need to be mass produced to stock retail shelves. With a single original copy, the publisher and developer can quickly duplicate copies to meet demands. This can greatly cut down on the cost of maintaining back catalogs.

CONS

Digital = Loss of publisher support

There are drawbacks of an independent approach, mainly the loss of publisher funding. The loss of advertising is another issue that stems from the dropping of publishers.

Digital = Difficult Rights Management

Digital work is easy to duplicate without any loss of quality and with the direct nature and lower prices of online distribution, piracy has a far greater impact than it does for traditional media.

Digital = Proof of Purchase Troubles

Proof of Purchase laws were not created with short-lived products in mind. This has led to many difficult legal problems for digital distributors, relating to refunds and returns, sales themselves, and the transfer of product ownership.

THINGS JUST AIN'T THE SAME FOR GANGSTERS...

Remember back when CD sales meant something? Nope…me neither. But, let’s think way back. Like when you had the red and black lumberjack…with the hat to match. I think anyone with a pulse would agree that the music industry is ever-changing and moreover, facets of this business that were once relevant no longer have much, if any significance. Allow me to get you up to speed. Say good-bye to the compact disc and hello to the ring-tone. With the emergence of media download powerhouses like Napster, Bear-share, Ares Galaxy, Limewire, and of course, everyone’s favorite: I-tunes, a weekly trip to the record store has become an event as ancient as the proverbial “field trip”. So, let’s get to the infamous (in your best James Earl Jones voice) RING-TONE. Sound scary, huh? Ok, maybe not. But, it’s true. Americans have grown increasingly attached to their phones/PDAs/Nextel chirps etc. and with this growing affinity comes the need for ring-tones and caller-tunes. Ground breaking discovery? Nope. Shift in the industry? Yep. Understand, this is just something to keep in mind when you’re developing your marketing campaign. (Yes, YOU have to do that now…per record company request) Just leave no stone un-turned. Ring-tones are a great way to achieve your success. Just ask artists like Chamillionaire, Rihanna, and Shawty Lo. Charlie Sheen and Chris Tucker once co-starred in a movie titled Money Talks. Suffice it to say, I share that sentiment. Ring-tones may be able to get you “talking” faster than you think. Until next time, do YOU, do music.

-Gilles