For the last few years I have been following the developments of the free music concept and have also conducted a number of tests of my own and have seen interesting results.
However, one thing I will say is that free music whether that be streaming or downloads will affect the music industry in a positive and negative manner but overall it will be positive for those who are prepared to make the switch.
One undeniable fact of the internet is that more and more people are spending more time online. In fact in Australia, for the first time, Internet video hours beat TV viewing hours and this trend will continue. Most people log onto Facebook, Myspace and other social networking sites and share music, video content and other applications while online.
Right now the most important signing for labels would be an online marketing expert who knows their Google from Azoogle and is able to maximise the label’s revenue from FREE content. In fact you should NOT leave it to the Imeem’s, Youtube’s and We7’s to monetise your content.
Labels and artists must now have their own Ad sponsored solutions on top of the licensing income they derive from doing deals with 3rd parties.
Funnily enough, the rise of free downloads will open the door to higher premium physical sales.