Amazon or Itunes album Sales.....

Discussion in 'Trumpet Discussion' started by Big Daddy, Sep 27, 2011.

  1. Big Daddy

    Big Daddy Mezzo Piano User

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    Hey TMer's
    Wanted to let you know about Innovative Entertainment Solutions. While Amazon dictates what price they will sell your album at and then charge you 55% plus other fees for CD sales :shock: and Itunes charges 30% just for talking to you :shhh:, I found this company that charges 25% for everything. They set up the web-store for you based on your website, upload all your music, handle all financial transactions, deal with all the credit cards and paypal, ship Cd's out, separate charitable contributions for you and send them off if you need, then send you all the information at the end of the month with a check. And I believe there is only a $400.00 store set up fee.

    Itunes or Amazon does not promote you or your album at all. You do all the work of promotion and getting your name out there and then just put their link on your promotional information so people/fans can purchase your stuff from them. I've purchased and downloaded music through IES. Check out www.etiennecharles.com that's how I purchased his 3 albums. As I get closer to actually recording my album I want to have all my ducks in a row when my album is completed and after I have spoken with other musicians who need to keep as much from their recordings as possible, I wanted to post the information here also.


    Here is their contact information.
    http://www.iesmms.com/ 1-877-730-9660
    Ask for Todd and tell him I sent you. After speaking with him for a while I told him I would be talking to my musician friends and putting a post on some trumpet blogs to tell them about this company.

    -Robert
     
    Last edited: Sep 27, 2011
  2. rowuk

    rowuk Moderator Staff Member

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    I can perfectly understand Amazon and iTunes business plan. I do most of my shopping there because I mostly get what I want for what I consider a fair price. I consider the iTunes search engine to be a fantastic marketing and promotion tool.

    This is not to say that someone else can't do it cheaper, but the reasons are clear: copycat. They did not need the heavy hitting lawyers and sales people to "convince" the music industry that this was a good thing or to work out technical details, the newcomers are simply riding the wave of those who paved the highway before them. They have no "original" value add except by operating on lower margins.

    After working with an agent, I discovered the ones that operated with the lowest fee also did the worst job. Getting what you pay for applies to most things in life.

    This is standard evolution. Whether or not the copycat will have the resources to long term survive, we can't know. Thanks for drawing attention to it. I assume that they will have music not offered elsewhere. I'll have to check if there is anything that I want to hear.
     
  3. Big Daddy

    Big Daddy Mezzo Piano User

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    I also use Itunes to purchase music. From my experience of working in the entertainment world for years, I bet the big record companies dictate to Itunes and Amazon what they will pay and it's just the little guys who pays the higher cost. I feel if I can save a player some money or pecentage points by buying off another site, why not? I would also list my stuff on Itunes and other sites but only promote the site I can profit from because a sale is a sale which could lead to a person who enjoys what I do.
     
  4. rowuk

    rowuk Moderator Staff Member

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    The big companies in fact do NOT tell Apple what to charge. Apple told them about the Dollar concept per tune. That means $10-$13 for an album where they were getting $20+ before. The advantage is that they are selling more because people that will not buy a whole album are at least buying single tunes. I also thing that $.99 means that not as many steal.
     
  5. Big Daddy

    Big Daddy Mezzo Piano User

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    Rowuk, you misunderstood me. I was saying the percentage that the record companies are willing to pay to Itunes, Amazon Ect. not what Itunes will charge the customer. It is the RC's that have the content and control over it. When I managed a department at Deluxe Digital Studios in Burbank, Paramount, FOX, Universal, SONY all got together and created the prices that Deluxe, Technicolor, Ascent, ect. would charge them for different services or not do business with them. I personally thought is was insane because our margins were tight and small.

    I ran record stores for my family from 1986 - 1990 and the record companies put list prices on everything and that was how they would charge the distributor and retailer. In order for me to compete with the big chains, I had to sell below the list prices set by the RC's. I was lucky to make 30% net. I would average between 20 - 25% I sold t-shirts, posters, patches, rock N' roll jewelry along with other stuff that I could double my money on. I was selling 45 rpm's and cassette singles for $.99 at that time. I believe I was paying $.75 a piece. Some of the singles on Itunes are starting to creep up to $1.29 now. I needed to carry it all everything in order to stay in business, compete and keep the customers coming back. Albums, Cassettes, Cd's, Singles, Videos and the RC's knew it.
     

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