A related item from http://aramsinnreich.typepad.com/aram_squalls/2008/08/another-music-i.html
The music industry is in the midst of a huge transformation. Rather than the much-repeated apocalyptic reports of its death throes, the industry is simply transitioning from one driven by B2C product revenues (e.g. music retail) to one driven by B2B service revenues (e.g. broadcasting and licensing).
The latest evidence: MCPS-PRS (the UK’s version of ASCAP) reports that, for the first half of 2008, mechanical royalties from retail are down 9%, but licensing royalties from broadcast and online services are up 13%.
He’s not even being as specific as calling it “advertising” or “merchandising/branding”, just saying that the immediate customers are businesses rather than CD buyers.
The reason I think of this as advertising is that it replicates the traditional split between parties that generate attention and parties that monetize it. A newspaper generates attention, then gets the best price for that attention. The business that can pay the best price is the one that earns the most. The business monetizing the attention shifts constantly.
I’m comfortable saying that this isn’t necessarily “advertising” and might be called “merchandising and branding” instead, I think. Need to think about that for a while.
Eric, when you do choose to cash out, how do you pick the method? What do you have in mind for earning money?