[WaTunes] – True Free Digita Music Distribution vs Free (Royalty) Digital Music Distribution. Is it Fair?

December 13, 2009 at 10:24 pm Leave a comment

Hey guys,

As always, I research the latest trends and news in the digital distribution space to enable us to come up with ways to better serve your needs as a music artist. One of our main goal as a social music service is to create innovative ways in which you, the artist, can utilize unique tools at very cost-effective way. Traditionally, digital distribution has become a basis of creating awareness and introducing you into a mass market like iTunes. However, to gain access to iTunes, one must either give up rights to their music and/or give up percentages of royalties generated.

First and foremost, I am very happy that there are many options out there. This shows that there are alternatives and services that fits your needs and budget. But what if you don't want to sacrifice your royalties? Where could you go? Is it fair to dish out 10%, or even 30% of your royalties? I digress.

I strongly believe that it is unfair to sacrifice royalties for a service that can be automated. This is why we've made it very clear by offering the world's first and only true free digital distribution service. As an artist, gaining access to the world's biggest digital store can be difficult. Our free model demonstrates a sort of  "white-label" service that gives you the look and feel of having a relations with iTunes. Through WaTunes, selling unlimited songs and albums without any upfront charges or sacrifice of royalties is a huge deal. As a music artist starting out, we give you the tools to build your career and grow in sales. Lets do a comparison of models against a Free Distribution model and a Royalty Distribution model.

Quick Scenario:

An artist name John puts his single on iTunes and sells 1,000 downloads in one month. As the artist knows by research, iTunes takes 29% ($0.29) from the total $0.99, leaving the distributor with $0.70 to disburse between themselves and John.

Here is where the differences can take place:

True Free Digital Distribution Method (WaTunes): After all calculations has been made, John is shown that he has made $700 in total sales. John also acknowledges that he did not have any upfront fees to his distributor and is grateful for the results.

Free (Royalty) Digital Distribution Method: After all calculations has been made, John is shown that he has made $630 in total sales. John acknowledges that his distributor takes a 10% distribution fee for delivering his music to iTunes.

Though both methods supports no upfront charges, the difference are indeed a big deal. That's a $70 difference! That's about 5 months worth of our premium VIP services (which includes marketing & promotional opportunities).

So heres my question to you:

Q: Do you believe its fair to give up royalties? If so, why? If not, why?

Please post your comments in the comments section below.

Posted via email from WaTunes

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Entry filed under: Uncategorized.

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