In search for insights on “Free” digital music, the music industry’s Kevin Arnold was asked his perspective on the value and future of free music. The CEO of digital distributor The Independent Online Distribution Alliance (IODA) had this to say:
” We definitely believe Free has value in a number of ways for music. First and foremost, in the way it has almost always been used in music and in many many other consumer businesses: as a free sample to introduce a product to new users. Just like the handouts at Costco, tasting at a winery, or swag bags at conventions and parties, labels and artists have long given away music in the form of samplers and promo CDs, free performances, and outlets like radio and MTV. In the digital world this act has value in ways that we’re still learning and consistently surprise us. Who would have thought that the free giveaway of Nine Inch Nails’ last record would end up with it being the top selling album at AmazonMP3 last year? The important thing with this type of (promotional) Free is that it is done on the artist/content owner’s terms, and that they can control the process to manage the value of the effort and get what they want out of it.
Beyond the promotional Free are the more recent attempts at commercial offerings that “feel like free”. This covers pretty much everything from the massively popular streaming sites like MySpace, Playlist, and imeem to ideas like ISP-endorsed free file-sharing or newer models like PlayAnywhere from Catch Media. The key difference is that these platforms aim to offer not a few sample tracks but rather full releases and catalogs. In exchange, content owners expect to get paid for the use of the music. These models still have a long way to go towards providing monetization levels that most content owners are comfortable with, and many unanswered questions as to whether these services help or hurt other online sales models remain.
Good old-fashioned free P2P file sharing can also be valuable in some cases, generally for the developing artist in accordance with the “give-it-away-until-you-can-charge-for-it” theory. But this should be done at the discretion and control of the artist or label, ideally with some measurable results, be they emails from new fans around the world or more people coming to your shows. In any case, only the content owner can decide if any of these flavors of Free work for them or not.”
Kevin Arnold tells us that although free is a good way to go, its important to manage this practice with discretion and control by the artist or label. Monitor and measure the results of the give-a-way, by new fan e-mails or an increase in attendance at your shows.
Giving free music is a way for the artist to create a fan base, and creating good music is every reason for a person to be a fan. This is definitely a good place to start.