National Geographic has jumped headfirst into the music realm with a far-reaching download site, and NPR has just announced an upcoming digital download service, not to mention all the other existing players in the legal MP3 realm. We asked a handful of world music record label execs to weigh in on how things are coming for the "genre" and which download service is the frontrunner out of the gate specifically for world music sales.
Mel Puljic, Label Manager, Wrasse Records, USA:
Digital sales are growing, and will continue to grow. iTunes is the first company to understand it and make it pay. It might be more true for world music marketing than for other 'genres' or market segments but touring plays a huge role in sales for us. When local market marketing of world music and localized sales (especially) becomes a reality on a mainstream level in the digital realm - as in at the performing venues themselves - then I believe we're at the end of the road in terms of investing in physical product.
Randall Grass, General Manager, Shanachie Records:
Online sales for world music are fair. They are still a small part of the market, 10% or less. ITunes, even for world music, has a 60% or higher share. EMusic is in second place with around 10%. Nobody else has significant sales. ITunes has been successful because of the I-Pod and because of their aggressive promotion of themselves. EMusic has been successful because they offer MP3 sales and specialize in indie music.
Ian Ashbridge, Joint Owner, Wrasse Records, UK:
There will be a number of new players emerging in this field as companies see the opportunities. The Spiralfrog model is an interesting one, using advertising to get revenue. Apple has a stranglehold on much of this market, but the interesting point is to look at pre 20 year olds. They see I-pods as something their fathers would use and want something much cooler. They also believe that they should never have to pay for music, which is a worrying trend.
Dan Storper, Founder/CEO, Putumayo World Music:
Lack of availability in stores, convenience and increasing use by adults of the internet for shopping and music downloads has accelerated the process to the point where paid downloads are an important part of most label's revenue. At Putumayo, we don't offer downloads because of two reasons: we license the music and don't control the rights and, even if we could, we want to offer consumers a complete package with extensive liner notes, video and other enhancements.
Jacob Edgar, CEO, Cumbancha, and A&R consultant for Putumayo World Music:
There are a number of challenges in the world music business. The internet helps overcome some of those challenges, but not all of them, and in fact even makes some of those challenges more difficult. The internet helps a great deal with the distribution challenge, as most record stores don't carry much in the way of world music, and the internet provides the possibility (although it is not yet realized) of enabling people in the middle of nowhere to buy even the most obscure and esoteric types of music. In some ways, the internet helps a great deal with another challenge: the promotion and marketing of world music. As we all know, the television and mainstream press and radio outlets for world music are minimal and for the most part don't reach a very wide public. With the advent of MySpace, email blasts, blogs, etc. getting the word out is getting easier, although it still doesn't compare with the impact of a major motion picture, a 60 minutes piece or some other kind of really large media exposure on PBS or something like that. Also, internet promo tends to reach the converted and doesn't expose people who aren't already interested or part of the network. There's one challenge of the world music business that the internet doesn't solve and in some ways makes worse, and that is the challenge of sifting through the immense amount of music out there and helping people find stuff they are really going to like. I spend hours a day listening to music, and I have to sort through so much crapola to find those two or three gems. I can't imagine Joe Public taking the time to do what I do, save the diehards. That's why Putumayo has been so successful, because walking into the world music section of a large store or even going onto iTunes or Amazon is completely overwhelming for most people. That's why they tend to fall back on the usual suspects: Buena Vista Social Club, Cesaria Evora, Gipsy Kings, etc, because they have kind of heard of them and they are pretty sure they are good. While online sites have tried to come up with ways to guide people, computers have no taste, and you can't come up with an algorhythm for good ears. One other point, great music is still coming out of places that are still largely cassette based. It is going to be a while before those places catch up to the digital revolution. Places like iTunes have pretty lame world music selections for knowledgeable people, and it will be a long time, I think, before they are able to offer the kind of depth that would satisfy an insatiable musical explorer like me (and I'm not alone).
I'm pretty new to online sales because Putumayo doesn't do any online sales, but I've had what looks to be hopeful success with Ska Cubano. It has been in the top 10 on iTunes for a long time. At this point, iTunes is dominating the download sales, and the other sites are just nice little bits and pieces that eventually will add up to a substantial whole.
One other aspect of internet sales that doesn't get discussed much is its usefulness as a promotional tool. I'm sure some people who have downloaded the Ska Cubano CD from iTunes have gone out and bought the actual disc, because they want the full package and want a tangible object to add to their collection. People still like tangible things, and they are collectors of stuff.
Harold Hagopian, Owner/Founder, Traditional Crossroads:
I can't compare world music to other genres as I don't have other labels download sales figures. ITunes is by far our biggest account for sales of downloads. We work with others including emusic, rhapsody and msn's on line store. Downloads account for about 12% of our sales at this point.
Rob Simonds, “The only one here left,” NorthSide:
Apple is obviously the leader, due to the brilliant marketing of the iPod and seamless interface with user-friendly software (iTunes). Nobody else even comes close, and I see nothing changing with that for the foreseeable future. Niche sites like National Geographic will remain nothing more than niche sites.
Patrick Moxey, President, Escondida Records:
ITunes is still the biggest revenue source, although Escondida is now joining Calabash Music as well.
DubMC.com is the brainchild of Dmitri Vietze and is sponsored by rock paper scissors, inc., world music publicity firm.
