Indieoma

Undeterred by declining music sales and the prospect of musical piracy, Matt Stockman is a young entrepreneur who is setting up Sharabang a new record label which “gives music away for free as a means to open up other revenue streams”.

Here he shares some of these ideas:

1. Your idea of giving free music downloads away sounds like you are resigned to the idea that recorded music now has no value? Is it purely a result of piracy and file-sharing or something else?

MS: I don’t think that there’s now a total loss in the value of recorded music. Piracy and file sharing has definitely helped lower the perceived value of recorded music in its traditional form, as has the shift away from the importance of music ownership to the ability to access it (through sites like Spotify, Last.fm etc), but this does not mean that recorded music has NO value.

Yes, there will now always be the option to get music for free if the consumer does not want to pay for it and yes, this is often (and will continue to be) done illegally, but no amount of prosecution threats or technology which “blocks” music from being copied will overcome this development – pirates will always find ways around it.

No matter what industry you’re in, to thrive you must firstly listen to your customers. For Sharabang Music it’s about listening to music lovers, how music is now consumed and adapting to this to offer genuine choices. What we’re actually doing by offering music fans a choice is trying to put the value back into recorded music by diversifying the product range and offering far more than can simply be sent over the internet.

All industries go through changes and the music industry is no different. In terms of its financial contribution, there has been a shift away from the importance of recorded music, but this is being replaced by greater importance in other areas. The industry must realise this shift and adapt to the current market place, not continually try to force an outdated business model on to consumers just because it once worked. It’s time for a change!

2. If artists and labels can no longer make money from recorded music, what other sources of revenue generation are you looking into?

MS: Sharabang artists’ music can be streamed and downloaded for free but there will be brief messages before and after each track explaining how to purchase the full package with the artwork and other additions, but there will also be the option to purchase the mp3 without the messages.

However, we’re much more then just a record label. We want to do all we can to further our bands’ careers and make them money. We’ll sort out merchandise, put on tours, get support slots, synchronise their music into appropriate media and much more. All profits from these activities will be split between the band and Sharabang.

We will also strive to create more personalised experiences for fans. An example of this is that all gigs will be filmed and fan interaction encouraged. People can then purchase a DVD of the actual gig/event they attended.

Many of the T-Shirts will be event specific and exclusive. An example is a ‘Sharabang Rider’ T-Shirt exclusively available for those who travel on the bus. By making these exclusive we believe they will become more desirable, and fans will wear them with pride. We hope to make their experience so special that fans will want to own a T-Shirt declaring themselves as a rider! We are also experimenting with customisable T-Shirts and have some pretty interesting ideas to promote these!

3. You seem to be putting a lot of emphasis on artwork(s) specific to each individual track. But isn’t this just a step on from the idea that people want ‘the whole package’? And even if people are prepared pay for artwork, how much do you suppose that they will pay and how much will the artist get paid?

MS: I agree that this has been done to an extent before, but not to the degree that we envisage. We have a number of talented artists working on different concepts for album artwork. These range from a fairly traditional album inlay to more elaborate and extravagant pieces. Once again, it’s about offering people choices. Some of the designs are real top range art pieces in their own right and will sell for a higher price to reflect this. There will also be the cheaper alternatives that are still great pieces of art.

In terms of payment, Sharabang will do all it can to help raise the profile of the art designers in a number of innovative and interesting ways, but as we are a new start up company we cannot offer payment yet. We have found artists who can see the benefits of developing pieces for us in return for what we can do for them. We can offer such opportunities that people see the worth in working for free at the moment, without having to compromise on the quality of artist.

4) Sharabang plans to buy an open-topped double decker bus to use as a tour bus. The top deck will be converted into a unique touring venue with gigs on top, while the bottom deck will house a touring art gallery showcasing Sharabang’s artwork.

Does the revenue stream come from people who pay to go on the bus or sponsorship and advertising on the side of the bus? Does that not compromise, independence and creativity?

MS: The plans for what we’ll do with the bus are quite extensive and costly. If the money can be raised to make the user experience (for fans) as exciting as possible and help cover the high costs of doing it, it can only be a good thing, not just for Sharabang as a business, but also, its bands and ultimately, its fans. Having an advert on the side of a bus will not have any affect on the bands’ creativity or independence; it is merely a way of making it possible.

We’re also looking at getting advertisements from companies we genuinely support so the advertising will help spread the word on something we believe in.

We will not be charging people to ride the Sharabang. The bus is going to the next day of the tour regardless, so if we’ve got room for fans, why not! We want to build a real relationship between fans, the company and our bands, and see the bus as a great way of establishing this. Not only will this make the experience for the fan more exciting, but will help turn the casual listener to a genuine fan, which is our ultimate goal.

Find out more about Matt Stockman and Sharabang Records and follow new developments as they happen by visiting the website here.

Links to the other Digital Economy Bill and Piracy And Pieces Of Eight posts:

Digital Economy Bill Feature Intro

Simon Indelicate – Digital Economy Bill

The Indelicates – Corporate Records Business Model

Stop Disconnection Demo – 24th March 2010

Dan Bull – An Interview – How does a pro-filesharing musician plan to make some cash?

Piracy Feature Intro

Julia Indelicate – Bands And Branding

Chris T-T – The Ballad Of Simon Indelicate’s Christmas Fudge

Simon Indelicate – Fudge Really Has Nothing To Do With It

Matt Stockman – Introducing Sharabang Records – a record label which gives songs aways for free

Ric Rawlins – Pirate Radio And The Internet

Ric Rawlins – Film Review – The Boat That Rocked