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| 20.05.2006: Outersounds: IU recommends...: | Ron, IU |
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| Having seen the recent News item entered on IU about a new download/sales option for Artists similar to iTunes etc, I took the time to contact the Organisation that submitted it, to get more information I asked Outersounds.ie for further information regarding their costs structure and the benefits for Bands/Artists. The news entry stated that Artists would be given 88% of profits of sales of their music. Having been in business myself (more than once) the first thing that crossed my mind was "What is the profit per sale", because 88% of nothing is nothing, so I was sceptical. After further investigation, I am happy to add the following clarification, directly from Outersounds' Enda Lee: "Each transaction costs 3.4% of the sale + 0.35 [payment processing rates from PayPal]. For low volume sales, this proved to be the least expensive solution, however this may change in future. Sale of a single 0.99 download will give the artist 0.57 from a net profit of 0.61, see below: Total sale amount: 0.99 (1 song) Transaction fee: (0.99 * 0.034) + 0.35 =0.38 Net Revenue: 0.99 0.38 = 0.61 Artist Revenue: 0.61 * 0.88 = 0.57 A higher sales volume reduces the effect of the 0.35 fee, for example purchase of 3 songs: Total sale amount: 2.97 (3 songs @ 0.99 each) Transaction fee: (2.97 * 0.034) + 0.35 =0.45 Net Revenue: 2.97 0.45 = 2.52 Artist Revenue: 2.52 * 0.88 = 2.22" Now, when ever anyone gives me that kind of information, knowing that I can check it independently, then I'm prepared to accept theya re not trying to hide anything. Next I was concenred about the ownership/copyright issue. So I mentioned it ot them. Here's the reply: "Our terms and conditions for artists clearly state that artists who sell through Outersounds retain full copyright and ownership of their music, identity, etc. We only request a non-exclusive right to sell an Artists music and display their details online" You can't say fairer than that. So, my personal recommendation is that any Artist who wishes to sell their music online, and hasn;t got the time, patiecne, expertse to do it themselves, should contact Outersounds directly. Email address is: enda@outersounds.ie Like us, Outersounds are working on the new Downloads chart, trying to ensure inclusion for independent Artists, and trying to level the playing field. We may, if things are appropriate, work with Outersounds in the future on this project. After all, they seem fair, they're not a record label, and they're Irish. |
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