New CD Distribution Channel for Independent Artists Announced

The music industry is changing again, specifically the way that consumers get their music. With CD sales slumping, vinyl record sales on the rise and MP3 music downloads now dominating the music landscape, a small Internet radio station is also changing the way that its artist's music is being distributed.

I spoke with DJ Tom of www.ilike2rock.net about the new distribution service that the radio station is offering.

"With digital sales being the main online sales source for music, most independent artists turn to CDbaby or iTunes to sell their music," explained DJ Tom. "What we are doing is making a move to 'cut out the middleman' so to speak, which will allow the independent artists to put more money in their own pockets, where it belongs."

DJ Tom detailed some of the specific ways that iTunes and CDbaby operate:

"These companies rely on their own affiliates to promote the artists that they have and really don't do anything to promote the artists. As an ex-affiliate for iTunes, I used to sell digital downloads for a five percent commission, so for a ninety-nine cent song that equates to a nickel. The artist in turn gets sixty-nine cents, leaving a twenty-five cent profit for iTunes, who are just an online warehouse cataloging music in hopes that their affiliates are successful in promoting them."

"CDbaby is a bit similar in that they are also a music warehouse that relies on other distributors, affiliates and the artists themselves to generate the sale while taking $4 for each CD sold to drop it in the mail. I can see artists with a CDBaby Logo on their website or MySpace page to buy their CD. If an artist wants to make $7 per CD sold, then the cost to the consumer is $11 through CDbaby. Why not just sell the CD directly using PayPal, add in their processing costs and sell it for $7.50? An independent artist will probably generate more sales at the lower cost."

So, CDbaby and iTunes do nothing to promote the independent artists who sign on with them?