Below is my response to Allen's original music industry forum post.
If the consumer buys your song and wants to give copies away are they wrong?
ANSWER: I don't think consumers are wrong in wanting to give away copies, but having them to give away copies is a bit different -sort of. If we look at many other consumer goods such as cars, couches, clothes, etc. Once we buy them they are ours (consumers) and we for the most part may do with them as we please. We may give them away or resell them. The choice is ours.
The manufactures business model isn't built off continually generating money from the sell of that one car, couch, clothes, etc. However, the nature of the music business/music publishing is built around reselling music over and over in the case of catalog music. So this changes the dynamic a bit when we discuss the consumer giving away music that they purchased.
From a marketing perspective I think it's a wonderful opportunity as most all businesses have to give away a sample of their work to entice people.
Allen you and I are constantly online sharing valuable information about the music business, giving away articles and feedback that we should charge for without question. However, we enjoy helping others while helping ourselves and have witnessed the benefit of giving and getting and getting and giving. I think part of the question or sentiment of consumers giving away music that they bought is how much is to much to give away. For many people they haven't been in business long enough to witness how giving away music translates into increase ticket sells at their shows, merchandise sells and increase music sells on future releases.
Ownership of the song does not lie with the artist or the label or the publishers, but rather the consumer.
RESPONSE: Legally, ownership lies with the artist, publisher, copyright holder, etc. From a marketing standpoint the music ownership should lie with the consumer to get maximum exposure.
I've created and given away several music business ebooks that could have easily sold for $19 to $147, but I choose to give them away as a carrot to build my brand as a motivational speaker, author and business consultant. By giving them away I build my brand in a viral vacuum that gives me the type of marketing I couldn't pay for. If I were a new artist or an artist seeking to reinvent themselves I'd give away some of my best music. This is what rap/hip hop artist have done with mix-cds which has helped to fuel the explosive numbers that it has done over the years. Likewise Rock bands often perform for free and give away music to get more people to shows so they can sell merchandise.
Allen if the artist and independent labels overstand how giving control of their music to consumers will generate future sells then they may put it into their plans that will yield great reward down the line. Now that's Industry Pimping.
To be fair, Allen did have a reply to my response, but I have not included it here, perhaps you'll see the full discussion in a future Music Industry Conneciton Ebook. I'm really excited about hearing my readers responses to this discussion, feel free to chime in and leave a comment.
