Indie bandet Uniform Motion forklarer i bloggen sin hva de tjener på de forskjellige salgskanalene...Release day economics:
Our new record was officially released today. This means that youll find the digital version on various different Digital music stores like iTunes, AmazonMP3 and eMusic, and youll be able to stream the music from services such as Spotify and Deezer.
The physical versions (CD and Vinyl) are only available from our Bandcamp site and at gigs.
Unfortunately, you will not find our record in any record stores. The reason for this is because we do not have a record label, which means we have no access to distribution. Without a distributor, you cannot sell your CDs in record stores. If you work for a distributor and youre interested in carrying our CD or Vinyl, or both, feel free to contact us!
If you choose to purchase our music or use one of the legal streaming services, heres an overview of where the pennies go.
SPOTIFY:
With Spotify, well get 0.003 EUR/play.
If you listen to the album all the way through, well get 0.029 EUR.
If you listen to the album 10 times on Spotify, well get 0.29 EUR
If you listen to it a hundred times, well get 2.94 EUR
If you listen to the album 1,000 times (once a day for 3 years!) well get 29.47 EUR!
If you use the free version of Spotify, it wont cost you anything. Spotify will make money from ads. If you use any of the paid versions, we have no idea how they carve up the money. They only disclose this information to the Major record labels
DEEZER:
Deezer seems to pay a little more.
Weve been getting 0.006 EUR/play from them. Thats 0.052 EUR/album play. If you listen to the album 10 times on Deezer, well get 0.52 EUR. If you listen to it a hundred times, well get 5.2 EUR. If you listen to the album 1,000 times (once a day for 3 years!) well get a whopping 52 EUR!
If you use the free version of Deezer, it wont cost you anything and Deezer will make money from the ads. If you use any of the paid versions, we have no idea how they carve up the money either.
eMUSIC:
eMusic is a subscription service. The cost of the album will depend on the plan you have. We get roughly $0.29/song or $2.60/album (9 songs).
AMAZON MP3:
Youll pay 7.11 EUR to download the MP3s. We will get 4.97 EUR of that. Thats a 70-30 split.
iTUNES:
The album will cost you 8.91 EUR to buy from Apple.
Theres a 70-30% split there too, so we will keep 6.28 EUR/album.
That being said, it costs us 35 EUR/year to keep an album on iTunes, Spotify, and Amazon (105 EUR per year for all 3 of our albums!) so we dont make any money until 24 people have bought a digital copy of the album on iTunes, or 150 single songs, or if we get tens of thousands of listens on Spotify! In most cases, its actually more economically viable not to sell the music at all.
But what about if you buy the Digital version directly from us?
DIGITAL:
We allow people to pay what they want for the digital version. If you choose to pay 5 EUR, Paypal takes 0.37 EUR, Bandcamp takes 0.75 EUR. Uniform Motion keeps 3.88 EUR. it doesnt cost us anything to have a page on bandcamp.
If you decide to pay nothing, well, we get nothing, but at least you didnt give money indirectly to major record labels, which seems to be the case with Spotify!!
CD:
If you buy a CD, directly from us for 10 EUR, Paypal takes 0.515 EUR, Bandcamp takes 1.5 EUR. So theres slightly less than 8 EUR left for us. But hold on a second, it costs a fair bit to make the CD.
The CD itself costs 1.2 EUR, the booklet costs about 50 cents, the CD packaging is 1.8 EUR and the sticker on the front costs 35 cents.
Thats a total of 3.65 EUR
So in reality, theres 4.34 EUR left for us.
VINYL:
If you buy a 12 Vinyl from us at 15 EUR, Bandcamp takes 2.25 EUR, Paypal takes 0.646 EUR so theres 12.10 left. The cost of the Vinyl itself is 3.06 EUR
The labels cost 1.3 EUR. For a total of 4.36 EUR
So theres 7.75 EUR left for us.
However, we had to press 250 of these (because thats the minimum order), so its very unlikely well make any money on them.
We need to sell 72 copies before we break even on the vinyl edition. Weve sold about 30 so far.
If we break even, well lower the price a little bit.
EDIT (14th Sept 2011)
A few people have asked about the Vinyl numbers. Those numbers can be a bit confusing so heres some more information on that.
We ordered 250 copies because thats the minimum order for vinyl (the lowest quantity we could find at least). To keep costs down, we decided to go for a white sleeve with no artwork on it, and personalise the sleeves by putting custom stickers on them. Theres a sticker on the front with the name of the album on it. And we decided to put one on the back for the first 50 orders with the fans names on them.
250 copies cost us 775 .
Black vinyl, full colour biscuit (Side1, Side2) White discosleeve.
Thats 3.1 EUR/copy.
The front sticker cost 0.60 EUR.
The one on the back cost 0.70 EUR.
The numbers look strange because we didnt order 250 stickers. Well order more if we sell enough copies of the record, but if were only going to sell 50 or 100, why order more than we can sell? We didnt have a choice with the vinyl itself, but we did with the stickers. So we only ordered 75 front stickers and 50 personalised ones. But my numbers were based on 75 of each.
775 + 45 (0.6 X 75) + 52.5 (0.7 X 75) = 872.5 EUR
872.5 / 12.1 (net price for each copy) = 72.107
So thats where the number 72 came from. It should probably really have been 73 copies to really break even! But hey, Im a musician, not an accountant!
Our new record was officially released today. This means that youll find the digital version on various different Digital music stores like iTunes, AmazonMP3 and eMusic, and youll be able to stream the music from services such as Spotify and Deezer.
The physical versions (CD and Vinyl) are only available from our Bandcamp site and at gigs.
Unfortunately, you will not find our record in any record stores. The reason for this is because we do not have a record label, which means we have no access to distribution. Without a distributor, you cannot sell your CDs in record stores. If you work for a distributor and youre interested in carrying our CD or Vinyl, or both, feel free to contact us!
If you choose to purchase our music or use one of the legal streaming services, heres an overview of where the pennies go.
SPOTIFY:
With Spotify, well get 0.003 EUR/play.
If you listen to the album all the way through, well get 0.029 EUR.
If you listen to the album 10 times on Spotify, well get 0.29 EUR
If you listen to it a hundred times, well get 2.94 EUR
If you listen to the album 1,000 times (once a day for 3 years!) well get 29.47 EUR!
If you use the free version of Spotify, it wont cost you anything. Spotify will make money from ads. If you use any of the paid versions, we have no idea how they carve up the money. They only disclose this information to the Major record labels
DEEZER:
Deezer seems to pay a little more.
Weve been getting 0.006 EUR/play from them. Thats 0.052 EUR/album play. If you listen to the album 10 times on Deezer, well get 0.52 EUR. If you listen to it a hundred times, well get 5.2 EUR. If you listen to the album 1,000 times (once a day for 3 years!) well get a whopping 52 EUR!
If you use the free version of Deezer, it wont cost you anything and Deezer will make money from the ads. If you use any of the paid versions, we have no idea how they carve up the money either.
eMUSIC:
eMusic is a subscription service. The cost of the album will depend on the plan you have. We get roughly $0.29/song or $2.60/album (9 songs).
AMAZON MP3:
Youll pay 7.11 EUR to download the MP3s. We will get 4.97 EUR of that. Thats a 70-30 split.
iTUNES:
The album will cost you 8.91 EUR to buy from Apple.
Theres a 70-30% split there too, so we will keep 6.28 EUR/album.
That being said, it costs us 35 EUR/year to keep an album on iTunes, Spotify, and Amazon (105 EUR per year for all 3 of our albums!) so we dont make any money until 24 people have bought a digital copy of the album on iTunes, or 150 single songs, or if we get tens of thousands of listens on Spotify! In most cases, its actually more economically viable not to sell the music at all.
But what about if you buy the Digital version directly from us?
DIGITAL:
We allow people to pay what they want for the digital version. If you choose to pay 5 EUR, Paypal takes 0.37 EUR, Bandcamp takes 0.75 EUR. Uniform Motion keeps 3.88 EUR. it doesnt cost us anything to have a page on bandcamp.
If you decide to pay nothing, well, we get nothing, but at least you didnt give money indirectly to major record labels, which seems to be the case with Spotify!!
CD:
If you buy a CD, directly from us for 10 EUR, Paypal takes 0.515 EUR, Bandcamp takes 1.5 EUR. So theres slightly less than 8 EUR left for us. But hold on a second, it costs a fair bit to make the CD.
The CD itself costs 1.2 EUR, the booklet costs about 50 cents, the CD packaging is 1.8 EUR and the sticker on the front costs 35 cents.
Thats a total of 3.65 EUR
So in reality, theres 4.34 EUR left for us.
VINYL:
If you buy a 12 Vinyl from us at 15 EUR, Bandcamp takes 2.25 EUR, Paypal takes 0.646 EUR so theres 12.10 left. The cost of the Vinyl itself is 3.06 EUR
The labels cost 1.3 EUR. For a total of 4.36 EUR
So theres 7.75 EUR left for us.
However, we had to press 250 of these (because thats the minimum order), so its very unlikely well make any money on them.
We need to sell 72 copies before we break even on the vinyl edition. Weve sold about 30 so far.
If we break even, well lower the price a little bit.
EDIT (14th Sept 2011)
A few people have asked about the Vinyl numbers. Those numbers can be a bit confusing so heres some more information on that.
We ordered 250 copies because thats the minimum order for vinyl (the lowest quantity we could find at least). To keep costs down, we decided to go for a white sleeve with no artwork on it, and personalise the sleeves by putting custom stickers on them. Theres a sticker on the front with the name of the album on it. And we decided to put one on the back for the first 50 orders with the fans names on them.
250 copies cost us 775 .
Black vinyl, full colour biscuit (Side1, Side2) White discosleeve.
Thats 3.1 EUR/copy.
The front sticker cost 0.60 EUR.
The one on the back cost 0.70 EUR.
The numbers look strange because we didnt order 250 stickers. Well order more if we sell enough copies of the record, but if were only going to sell 50 or 100, why order more than we can sell? We didnt have a choice with the vinyl itself, but we did with the stickers. So we only ordered 75 front stickers and 50 personalised ones. But my numbers were based on 75 of each.
775 + 45 (0.6 X 75) + 52.5 (0.7 X 75) = 872.5 EUR
872.5 / 12.1 (net price for each copy) = 72.107
So thats where the number 72 came from. It should probably really have been 73 copies to really break even! But hey, Im a musician, not an accountant!