Alternative Methods of Distribution

So how can artists get away from these traditional models of distribution? A number of alternatives allow artists to be their own publishers. Others are more promotional in nature and may not result in direct remuneration. These new methods are still evolving and will present exciting possibilities for professional musicians in the future.

Self-Promotion and Distribution

Promotional Tools

Websites such as MySpace, YouTube and Last.fm are good examples of communities where artists can easily self-promote. In addition, P2P technology can be very useful for promoting your work. For instance, releasing a few tracks "into the wild" on P2P networks might act as a promotion for those who might later buy an album, or additional tracks.

Online stores

Retail outlets such as iTunes, eMusic, CD Baby and Audio Lunchbox allow unsigned artists and independent labels to sell their music online—in some cases, alongside music from major label artists. For artists and labels that find it difficult to self-distribute, services such as Orchard, MediaNet, TuneCore and the Independent Online Distribution Alliance (IODA) act as intermediaries connecting artists with retail outlets.

Customers Set the Price

In between the promotional services and the retail services are services such as Magnatune and Jamendo, both of which offer music for free and allow consumers to pay whatever they want (a la the "Radiohead model"). Both services offer music under Creative Commons licenses. Magnatune allows a customer to stream music for free, while charging between $5 and $18 for album downloads. This sum is split 50/50 with the artist. Jamendo, meanwhile, offers free streaming over BitTorrent networks like eDonkey. Payment is collected via a “tip jar” on each artist’s page and is divided between Jamendo and the artist. Jamendo also receives money from advertising, which it also shares with the artists.

P2P Distribution - How Can Artists be Compensated?

The RIAA’s lawsuits against Napster, Grokster and other file-sharing services and individual users have made P2P networks notorious as a means copyright infringement. However, P2P can be a useful promotional tool. In the long term, the challenge lies in developing a means for compensating artists whose music is distributed online without permission using P2P software. The Berkman Center at Harvard University and the Electronic Frontier Foundation (EFF) have developed proposals that seek to address this issue.

Both proposals posit that a collective licensing scheme could be developed that would legitimize P2P distribution. Such a system would provide a blanket license, allowing consumers to download and share as much music as they want for a flat fee. This fee could be paid either directly or through an intermediary—for example, an ISP. The money collected as a result of this license would be distributed to copyright owners based on the popularity of their music. The EFF suggests that participation in this program should provide users protection from lawsuits.

While the EFF suggests that the music industry should create the collective that oversees this license, the Berkman Center proposes to create its own collective licensing body. This body would take the form of a cooperative of both copyright owners and users. This way, the fees paid by consumers would be kept reasonable.

Creative Commons Licenses

If you're interested in making tracks available for people to share while protecting your copyrights, Creative Commons provides a convenient set of licensing tools. Creative Commons, an organization founded by a number of legal scholars, has developed a series of licenses that allow copyright holders to retain control over their work, while simultaneously making it available under terms more favorable than current copyright law allows. With a Creative Commons license, the copyright holder can choose to make his work available under either a single license or a combination of licenses. For example, a copyright holder can permit use of the work only if it is used for noncommercial purposes and if the work is attributed to him, while allowing users to make derivative works, like mashups and remixes. Or, he could make it available for use in derivative works but require that these derivative works be made available under the same terms as the original.

Examples of creative commons licenses:

• Attribution – Others may copy, distribute, display, and perform your work, and create derivative works based on your original but must give you credit.

• Noncommercial – Others may copy, distribute, display and perform your work, and create derivative works of your original, but only for noncommercial purposes.

• No Derivative works – Only exact copies of your work may be made, distributed, displayed, or performed.

• Share Alike – Others may distribute derivatives of your work, but only under a license identical to that which governs your work.

• Public Domain – The copyright owner dedicates all copyrights to the public domain, for the benefit of the public.

Creative Commons hosts a music community site, called ccMixter, featuring remixes licensed under creative commons. The site allows you to listen to, sample, mash up, or interact with music in whatever way you want.