What should the price of recorded music be?
DJ Cro supporting Sharon Jones and the Dap Kings in Birmingham
One of the problems of recorded music is the issue of price. With mp3s being an essentially infinite and perfectly replicable resource, the market price is a theoretical (and quite often practical) zero. But one strategy to set a price has been to turn this on its head, and introduce scarcity through physical collectibility.
Radiohead did this, you’ll remember, by letting the market decide what the price of the mp3s should be, but setting a premium for the physical box set. This was, I remarked at the time, a pretty good understanding of the difference between the digital and the physical media.
A friend of mine demonstrated this principle pretty well recently, by working with something that was pretty much completely unavailable, but highly sought after – and making it a little bit available in a short run at a premium price and with a great bit of packaging and additional merchandise.

Cro explains:
“When I heard Amalgam Digital were re-releasing Kurious’s debut (and so far only album) ‘A Constipated Monkey’ on double vinyl I was excited as it’s a personal favourite, then I found out they were also making six demos available for the first time I got really excited. I asked if they had any plans to press vinyl for the demos, they said they just wanted to give them away with the digital downloads of the album.
“They agreed to licence them for a one off limited vinyl release (200 copies) but warned me there was ‘tape damage’ and the masters no longer existed, but I was welcome to have a go at re-editing and cleaning up the tracks.”
Those six demos were, for the discerning hip hop enthusiast (and you don’t get much more discerning than Cro), absolute gold. They represented something that is increasingly rare in the digital age: an actual rarity.
“The EP features production from some of my favourites- The SD50’s, Prince Paul (I’m presuming this is where their initial hook up happened leading to Kurious featuring on the Gravediggaz album), Sam Sever and Prime Minister Pete Nice.”
Now, when it comes to releasing rarities to a specialist audience, Cro is in something of a privileged position. As the presenter of a specialist hip hop radio programme, he’s something of an opinion leader already – something he brings to his job at Jibbering Records in Moseley.
He’s also (as you might expect) a DJ that plays all over the country and he’s a member of a number of online hip hop discussion groups and collectors forums.
“My main place for promoting the release was one forum full of record collectors like myself, they had already done similar releases so I knew there was a market. All payments were through Paypal and the Jibbering site as it made it seem a lot more offical than “Just send me 30 quid through paypal”.”
That’s right – thirty quid. For a record with six songs on it. That’s ten of your American dollars per song. Cro set up his record label and released his first disc on the basis that enthusiasts will pay above the odds for something of genuine value, quality and – perhaps above all – limited availability.
But there was more on offer than just the vinyl, and a problem with some of the artwork led to another good idea that increased the urgency for the first purchasers.
As the alternate artwork was meant to be used for the t-shirts but the printers couldn’t handle it I had the brainwave to get them printed out and signed by the artist. I made them available for the first 50 people in order to encourage the early presales. The t-shirt was a nice thing to offer to the people who were prepared to do the presales, created more of an interest and lets them feel special as they are the only people with them (plus it allowed me to get the right amount of t-shirts made with no stocks left over to clutter up my flat!).
Promotion for the record was conducted online, in the specialist online discussion groups – and the payments were taken online. But at no point did the music itself make its way onto the internet. Normally, I’d encourage wide distribution of the mp3s in order to generate interest for the music. But this was not the problem facing Cro and his Kurious release.
You’ll probably notice the ‘filesharing will catch a beatdown’ slogan on the label. No cd’s or digital copies of these tracks have been distributed, as I’ve felt for a long time that as music has become easier to get hold of, it’s also become far more disposable to some. These tracks deserve to be heard but please do so responsibly!
Agree and disagree. I think in the case of this record, on this label, in this market, Cro may have a point. One of the strongest things this record has going for it is its rarity and desirability as a physical artefact. But I think that misses the larger point that, as one observer put it, ‘Music wants to be heard.’ I think there’s a way to do both – and I suspect that ‘pulling a Radiohead’, as it’s called – offering a different physical and digital proposition – would be another way to approach this issue.
I’m not sure I agree that the 201st person who wanted to buy this record should miss out on ever hearing it just because they didn’t check in on the message board this week… but that’s another discussion for another time. There are, at least, snippets on the label’s MySpace page.
Correction: Cro writes: “the tracks are available in mp3 form from Amalgam Digital direct. I only licensed it for a vinyl run, so after it sells out (under 50 left now which is cool) it will still be available in mp3 form just not sounding anywhere near as good / long as the vinyl version.”
The important takeaway message here is that niche audiences and specialist products can be cleverly catered for through a mixture of digital media and traditional channels.
I’d like a proper website but it’s just time at the moment, I will get one sorted one day, just my web friend is stupidly busy so I’ve got to give him a bit of time. I used my blog and radio show too to post up snippets and play bits of the tracks people hadn’t heard before.
And the other key message is, of course, that the price of music is whatever the market will bear.
For most people, in most instances, with most mainstream music, that price is zero. $1 per track is usually approaching the upper limit. But $10 a track is entirely feasible under the right circumstances. Especially when you’ve got an elusive legend on your hands.
Kurious disappeared after his debut album, only to reappear on the song “?” on the classic ‘Operation Doomsday‘ album and ‘Monday Night at Fluid’, he’s also put out a 12″ on Stonegroove courtesy of Mr Lawson. I truly hope Kurious releases some new material and gets the props he deserves, a truly underrated emcee.
Word.
Table of contents for Questions
- 100 Questions
- What’s going on?
- Can I avoid the internet and just stick to what I know?
- Should I be worried about piracy?
- How can I sell my music online?
- How do I even start?
- Do I really have to blog?
- Can independent record stores survive?
- Are CDs dead?
- How do I find time for the internet?
- Is MySpace over?
- So what should be on my MySpace page?
- How can you sell mp3s at gigs?
- Is ‘pay to play’ ever a good idea?
- What should the price of recorded music be?
- What websites should I be on? (Part 1)
- What websites should I be on? (Part 2)
- How long should song samples be?
- What websites should I be on? (part 3)
- How can I keep coming up with ideas for my blog?
- How long should music copyright be?
- Should I use auto-friend-adders?
- What’s the loudness war?
- Is the Long Tail good for musicians?
- How can I put my gigs online?
- Is the album dead?
- What file size and type?
- Can the internet help improve my playing?
- What’s the best way to manage a fan list?
- How can I sell mp3s from my website?
- So what’s with all the silence?
- How many social media platforms?!!!
- Should I do something about metadata?
- How can I get a music video?
- Demo on CD or mp3?
- What should I do with all these tapes?
- But if they steal it – how can I make money?
- Can I still be enigmatic?
- Here’s a question nobody ever asks
- Who’s doing this stuff well?
- Has music been devalued?
- Is audio fidelity important?
- Is localism important?
- What’s a Netlabel?
- When should I put my music online?
- What do you mean by web-presence?
- Is Cloud Computing the Future of Music?
- Why give music away for free?





10 Comments. Write a comment or link to this post
J
The fact that music can be replicated perfectly does not reduce its market value to zero. It just means that a la carte sale of music is obsolete. Music must now be sold as a service (like cable, or ISP subscriptions).
May 27th, 2008
Terra
In reply to ‘J’
I totally disagree. Anything that can be reproduced for no cost, by anyone is essentially free – it may cost £1000s to make one, but it costs nothing to make two. So, music is free.
As far as a subscription service goes, the fans simply won’t take it. Charged regardless of usage for a service that (gaurenteed) won’t have all the songs you want. I’d pay but I know there’s no chance in hell that any company could provide me the songs of a band that are supporting bandXXX at the bar academy. Unless the service is perfect the discerning consumer will not pay.
May 27th, 2008
Milton
http://ultrameek.blogspot.com/
I had just written a little something about this last night. Of course my commentary is not nearly as detailed or precise…But I offer it regardless.
I also kind of agree with Terra. I am a little weary of blanket subscribtion services. It kind of reminds me of my old “DJ Pool” and all the crap records that I never used.
May 27th, 2008
Charlie Cheney
I think a key here is that in controlled scarcity the price of something NOW is higher than later. It’s more expensive to get something NOW, but if you’re willing to wait you can negotiate a cheaper price (or, if borrowing money, pay less interest over time). It’s the law of scarcity that the Wii has been utilizing so well in their marketing. Could the market be flooded with newly manufactured Wii’s tomorrow? Of course it could. But they limit distribution to raise desire.
It’s easy to underestimate the desire of people who want something NOW, and to second guess this marketing approach of controlling scarcity. But many profit from it.
Think of this another way… this morning on the news an individual installed a “personal” oil well in their back yard in Indiana that pumps out three barrels a day. How long will it be before oil wells are affordable technology like home recording studios? And what will happen to oil prices then when everyone can manufacture it?
I think you’re getting closer to defining the problem here. Defining that production and distribution were not the barriers to entry but the actual linchpins to scarcity is perhaps a critical insight into the soul of music economics.
Is the cult of personality actually the cult of scarcity? Good post! -Charlie
May 27th, 2008
Gavroche
As a musician, I find it hard to swallow that the price of music can be 0. But, considering the difficulty of controlling digital sharing, musicians today must be ready to accept the fact that it might be better for fans to get music for free (and listen to it) instead of paying for it (and thus not buying it and not listening to it).
With that being said, I really like radiohead’s model of letting fans pick what they want to pay for it. This way, the fan is empowered with deciding how much he wants to pay. While we are talking about radiohead, they did make a pretty penny off it.
Another issue, though, is why must all digital recorded music be the same price? Perhaps a different price could be charged for the purchase of a track that can be infinitely copied/shared (a la Creative Commons)? Or perhaps if someone wanted to purchase a stem/layer of a song, why not have a different price for that (much like radiohead sold stems for its remixable release contest). The notion of one size fits all pricing is seemingly ridic in this digital age!
May 29th, 2008
JK
I like it that more people are coming out with creative ways to distribute their music and get paid for it. The people that did get the vinyl copies could always rip copies at a high quality though. But I do like the idea
May 29th, 2008
Milton
@JK
I think the point is that the digital versions of the music are always going to be available…regarding the vinyl being ripped to digital…and that the conepts behind the creative packaging and presentation are the future for being able to sell music as a product.
It is about adding that extra value to the “music as product” concept. I can’t seem to say this enough: Recorded music in digital form has little to no value unless it is tied into some other kind of incentive…Because we all know that if you want just an mp3, you can find it for free almost every time.
The mp3 or digital audio file is a promotional tool best used for exposure and any income from the digital file by itself is a lucky break for the artist. Sure iTunes and Amazon are still selling them…and yes, even I am still buying…but for how much longer? 5 years? 10 years?
I myself would rather spend the money on the piece of mind I get from knowing I am getting exactly what I want (when I buy from iTunes) rather than take the chance on littering my computers with fake songs, viruses, etc. etc.
For that reason alone I am sure the digital audio sales environment will continue for quite some time…But more people are going to continue to torrent their tunes from who knows where for free. That is why artists need to create new ways to add value to their music through creative packaging and incentives to purchase.
May 29th, 2008
Milton
And maybe read this:
http://www.cityonahillpress.com/article.php?id=1264
May 29th, 2008
So... What do YOU think?