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The Long Purple Line by Dan Maslowski
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Tuesday Jul 10, 2007
The value of content

A buddy of mine recently posted a blog about Prince and his new method for harnessing the digital age. This particular example is interesting to me because it talks about a new way to make money in the music industry. Or is this an old way? In any respect, the concept is that the distribution media doesn't have any particular value, the content does. So Prince sells a Right To Use (RTU) to a newspaper which distributes 3 million copies of his new album with a newspaper. This drives adoption, which in turn drives a sell out of 15 shows in London. I suspect the other six shows will sell out as well. If so, Prince generates $26 million in concert revenue with 21 shows, plus he sold the RTU for an undisclosed and presumably large sum.

Distribute the media for free, drive socialization and adoption by lowering the barriers to entry, and monetize on the back end by providing a service. Is this the new model for the music industry - and/or the new model for Solaris? Close one eye and picture Jonathan in a bathtub singing? Curious pose indeed. Well, Prince he ain't, but he is driving the "new" model.

Posted at 08:08AM Jul 10, 2007 by danmas in Management  |  Comments[0]

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