So I’m pretty sure no one else have mentioned this (if so let me know in the comment section), but the deal that Jay-Z did with Samsung shifted culture. As of right now most of you are going back and forth on Twitter and Facebook about what you liked or disliked about Magna Carta Holy Grail. Trust me I get it, so was I. However I wanted to point out the business end of it and explain what I mean when I say Goodbye To iTunes.
Now I’m not saying that it will happen tomorrow, but we are in the middle of a shift. A similar shift that we saw back when iTunes first came on the scene. Okay forget about the emotions and the love your have for iTunes for a second. Let’s really break down the deal Jay-Z has with Samsung in laymen’s terms. He got paid by a major corporation to release his album in its entirety before it hit retail via a mobile app.
Ok so lets take the retail part out of it. Say you are a new artist that has created a buzz for yourself and you were approached by a company that wanted to do what Samsung did for Jay. To make the numbers easy to digest lets say they wanted to pay you 2 million dollars to release your album solely through their mobile app. The album would only be available for that company’s customers and they would only give away lets say 250,000 copies.
Now I know what you are thinking…if we cut out iTunes and other retailers how would we sale more albums? Let’s face it we know that many artist are not selling records like they did in the past. I’m sure 250,000 albums sold would make any new artist happy at this point. Not to mention making a cool $8 dollars per album while you are at it.
So I guess the real question is what do you really want? To sell a million records and make a couple of hundred thousand dollars of which you will probably never see or make 2 million up front and settle for selling 250k. I know the numbers may not be exact but hey its something to think about. What’s your thoughts Lazies?