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From "Jaimie Vernon" <bullseyecanada@hotmail.com>
Subject Re: for Stewart and the subscribers to eMusic
Date Wed, 09 May 2007 00:40:17 -0400

[Part 1 text/plain (3.4 kilobytes)] (View Text in a separate window)

Steve,
Yes...this about sums up what my label is going through at least (and no 
doubt Not Lame before Bruce was quick on his feet and reconfigured the 
business model).

We've stopped paying for the recordings of bands. It has to come out of 
their pockets. We supply distribution on FINISHED CD products and offer 50% 
on digital download net revenue. But it's still a numbers game. How does an 
indie label sell 100,000 downloads just to put a few dollars in everyone's 
pockets? At least on CD sales a band can recover its recording and 
manufacturing budgets around the 2000 disc mark (some of our other projects 
recoupe at under 1000 -- like our Ian Anderson Plays Jethro Tull DVD/CD 
which is close to going gold in Canada).

We've found our niche with classic rock re-issues...but new pop music? It's 
an endangered artform for indie labels.

Jaimie Vernon,
President, Bullseye Records
http://www.bullseyecanada.com

SWAG:
http://www.cafepress.com/bullseyecanada
BULLSEYE LIVE 365 RADIO:
http://www.live365.com/stations/bullseyerecords

Author, Canadian Pop Music Encyclopedia
http://jam.canoe.ca/Music/Pop_Encyclopedia/

http://www.myspace.com/jaimievernonsmovingtargetz






>From: Steve Alter <shteevea@yahoo.com>
>Reply-To: audities@smoe.org
>To: president@bullseyecanada.com, audities@smoe.org
>Subject: Re: for Stewart and the subscribers to eMusic
>Date: Tue, 8 May 2007 21:28:43 -0700 (PDT)
>
>Man, this is depressing.  I probably drop a few thousands a year on music, 
>and it's not enough to support anyone. :-(
>
>   So, unless you were a star moving huge units, the traditional retail 
>started breaking in the mid-90s, and it appears the various digitial models 
>- whether it's iTunes subsidizing you or eMusic giving you 50% of a tiny 
>pie - are broken as well.
>
>   Does direct digital distribution from artist to audience - no hard 
>product, simply record, digitize and post - really not offer potential for 
>a more equitable return to musicians, even with a manager/virtual label 
>getting a cut?
>
>Jaimie Vernon <bullseyecanada@hotmail.com> wrote:
>   At Date: Tue, 8 May 2007 23:52:45 Mark wrote:
>
> >Plus you're also eliminating the shipping and warehousing costs, returns
> >costs, breakage/shortage losses, and cold inventory costs. Overhead is
> >without a
> >doubt reduced, especially if you have large numbers of returns or unsold
> >product, which is increasingly common in the record industry.
>
>These costs are less than 2% of our annual budget. It's nearly negligible.
>
>
>
>Jaimie Vernon,
>President, Bullseye Records
>http://www.bullseyecanada.com
>
>SWAG:
>http://www.cafepress.com/bullseyecanada
>BULLSEYE LIVE 365 RADIO:
>http://www.live365.com/stations/bullseyerecords
>
>Author, Canadian Pop Music Encyclopedia
>http://jam.canoe.ca/Music/Pop_Encyclopedia/
>
>http://www.myspace.com/jaimievernonsmovingtargetz
>
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