Fans. And the Music Industry

Radiohead said “Pay what you want” and earned $20M

• 62% walked away with the music

without paying a cent

• 17% paid less than $4

• 6% paid $4~$8

“Pay what you

want”

• 12% paid $8~$12

• 4% paid more than $12

• Estimated album sales is $20M.

The band would have earned

$9~24M if they released the album in

a typical way (with EMI, the former

label of Radiohead)

However,

Result:

Yes,

How Amanda Palmer could make $19,000 in 10 hours on Twitter

• She chatted with followers about what the government should do and came up with the idea of creating a t-shirt for it. More than 400 sold in 2-hours and earned $11,000 ($25/e)

• Web-cast auction $6,000 and Twitter donation-only GIG $1,800

Korean fan uncles posted an Ad on a premium newspaper congratulating a girl group member’s birthday

Birthday Ad:

The fan club invited readers to donate

to a charity for teenagers in need

Fans want to engage in various ways

Image courtesy from Wired.com

5~10% of fanatical fans will do (almost) everything for the band

Brands. And the Music Industry

“Today, recorded music is down to less than 6% of

major musical acts’ revenue”

- CEO of Ticket Master

Recorded music is no longer the major revenue source

e.g. Concert market is a very huge/profitable revenue source

Mariah Carey’s recent experiment with CD booklet

Music Sponsorship market in N.America sized at $1.04B in 2008

Research also shows “Brands love music”

Source: Heartbeats International

Can we link the love of fans and brands

to Ad-backed free streaming?

That is why we created this

March come we will. Stay tuned