Like a Ninja

In the spirit of the previous post about downloading, we continue with a post on LEGAL downloads - Trent Reznor of Nine Inch Nails is at the forefront of the online distribution wave.

First of all, Trent has been a vocal advocate for a more integrated business model, embracing online social and commerce concepts in a way that is much more progressive than many big companies out there.



Some interesting things in that interview, for anybody who cares to see it, after the jump.

He's said that going independent was a big step, as the big record companies were bad for business. He's also decried Radiohead's online distribution as a publicity stunt rather than a full business model. From the interview, he's refined his business plan to giving away the music for free (since it's more or less free to distribute music online) then producing limited edition CD's (autographed) and making money of concert ticket sales - it's a strategy that assumes that people who like the product will be more willing to go to a concert (where in the old business model they made all their money anyways) and that the limited edition sales would be enough to cover studio costs and such. The latest such example of this is the Ninja Tour (Nine inch nails = NIN, Jane's Addiction = JA). The music is given away for free in a limited sense, and all the music can be played directly online - money is made by concert sales.

So far, it seems like a strategy that makes enough money for a slight profit (not earth shattering) and builds up a lot of goodwill. Trent's said that it's not a strategy for everyone, and online distribution still requires a solid initial fanbase - (watch that video if you get the chance - it's actually rather informative). He even points out that iTunes isn't profitable - he recommends TopSpin

It's a good interview - he takes user questions and incorporates himself into the online community. He sort of bashes overmarketing (which I guess is bad for me, since that's my chosen field...) but his point that a product has to be able to stand on its own merits is seemingly obvious, yet often ignored.

Digg and Reddit both do this sort of thing from time to time (Reddit recently did one with Adam Savage of the Mythbusters - here). The Mythbusters is interesting in itself, as the show is based on doing science experiments, and often takes community input into account, going back and re-visiting experiments if the community comes up with a new idea.