[FMC] Is Digital Distribution a Good Deal for Artists?

Panel 05: Is Digital Distribution a Good Deal for Artists?
Walter McDonough General Counsel, Future of Music Coalition (moderator)
Kevin Arnold Founder/CEO, IODA
Slim Moon Owner, Kill Rock Stars
David Pakman Managing Director, eMusic/Dimensional Associates
David Printis President/CEO, DE-Urecords.com
Tim Quirk GM, Music Content and Programming, RealNetworks
Having an online presence allows a band to hang out and get drunk with its fans without actually hanging out and getting drunk.
No one is making a profit running a $0.99/download service. Labels are making money, artists hopefully are making money off of it. Apple is making money off iPod sales. Any of the other services making money are making money off of subscriptions.
Moon: Most of our costs [as a label] are marketing. Difference between 10 songs at $0.65/song and the cost of selling wholesale for $8.50 is larger than the cost of making the physical product.
It’s the connection among people that will get people to enjoy music. Advocates for music make a big difference.
Rhapsody avoids caling its recommendations “picks or recommendations.” Tries to recommend based on playing habits of listeners.
eMusic uses personality to cull its indie catalog and make recommendations with personality.