Since we first learned the news of a FREE digital distributor, we knew the game had changed again. WaTunes is the company that is going left (or crazy) and offering free digital distribution to all artists across a bevy of commerce. Now a few weeks into this system, we decided to have a chat with Kevin Rivers, the optimistic CEO of WaTunes. What is transcribed below is not a pitch fest, but the realization that the current model of music to fan consumption is broken and that social channels are becoming the transaction, or buying signal that drives bands today. I hope you enjoy!
GYRS: First, since the news of going free, how have you seen your company grow in terms of artists and labels? What are they saying, asking for?
Kevin: Ever since we’ve made the announcement of providing a free digital distribution service, we’ve experienced huge growth from artists and labels around the world. Each day we get instant questions about how this service is possible and if it is true. I tell them that it’s true and it’s good! The artist and labels are excited to be able to see their contents available on stores like iTunes without paying a fee. To know that they will also receive 100% of their royalties really makes an impact on the lifestyle of each artist and label.
GYRS: TechCrunch is a tough crowd, but I think you and your team handled it with class and had some great responses. One of the major questions was in the event of WaTunes shutting down and artists essentially being left out to dry. In the response, you made some great points on your exit strategy and the way you handle business with artists. How important is the relationship between a distributor and the artist/label?
Kevin: I believe the relationship between a distributor and the artist/label is extremely crucial. A distributor who has a lack of communication to its customers can create strong concerns and doubts from the artist on whether or not the choice they’ve made concerning their music was a sensible one. With WaTunes, we value our communication with our artist and label customers. Creating a personal, yet mutual relationship provides assurance to the artist and label that their music contents are in good hands. I see our customers as people and not a number for our company. With that in mind, we are able to hold Customer Service as one of our very top core values.
GYRS: There have been some exciting and disappointing innovations as far as the way music is sold, transferred, etc from band to fans. While legal download numbers are up, they aren’t exactly screaming for indie bands to hurry up and make a ton of money through iTunes, Amazon, etc. Some are even seeing more success giving away their music or portions of their music, in the hopes of winning them over and selling concert tickets, merch, exclusives, etc. What do you make of the current consumer market for music?
Kevin: I think that the current market is broken. The reason is because there really isn’t a true social interaction in which the artist can engage effectively with their fans. In a world where music is generalized and a crushing economy, it’s very difficult for an artist to drive fans to pick up a CD or buy their music. Fans these days are eager and hungry for social interaction with their favorite artist. To be able to communicate with them on a social level is far greater and is projected to produce greater results. To the artist providing an avenue where their music is made available to a wide array of potential fans and then contracting their fans to keep up to date on their music career will result in a stronger form of a social environment.
GYRS: Do you have any success stories of indie artists using iTunes, Amazon, etc that may be of encouragement or give ideas to artists who are weighing their options for digital distribution?
Kevin: Yes. We’ve have many success stories from our customers. A few examples of successful independent artists are Dice & K9, Drip, Kitty Katt, Chubb Rock, and Shizz Strothers. In weighing in options for digital distribution, it is solely depending on the approach of the artist. If an artist wants to save money and focus entirely on their marketing, I would strongly recommend using our services. However, there are artists out there that would rather pay for the service to help their distributor earn revenue and survive which is commendable in my opinion.
GYRS: How do you feel social media and fan interaction is going to play in the success of artists in the near future?
I believe that social media interaction will play a major role in the change of the industry. This is one of my personal insights that I’ve observed while conducting my research in this sector. This focus will be the central statement of WaTunes 3 which is to bridge the gap between the fan and artist through social interaction.
GYRS: Anything that you want to tell the Next Generation of Rock Stars?
Kevin: To any musician out there who wants to make a difference, I’d say “Continue to pursue your music career and find people that share the same passion of your music. Finally, establish connections with people who care about your music as you will find great success in your future endeavorsâ€.
I’d like to thank Kevin for giving us a few minutes of his time and helping you guys get some solid advice on where digital distribution and fan communication is heading. If you have any questions about WaTunes, digital distribution or want to ask Keving a question, please address it in the comments and we will be sure to get those answered for you.
With that said, I really want to open the floor out to you guys, the future of the industry and see your thougts on the role that major digital distributors are going to play in your career. Does iTunes matter? Will it matter by the time you are ready for it to matter? Is free a better model? And where do relationships come into play? Please feel free to share your opinions with us.
Till next time Rock Stars…
-Greg Rollett
Tags: digital distribution, Music Marketing, social media, watunes
Leave A Reply (5 comments So Far)
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Tony Pytleski
1044 days ago
Greg,
In my opinion, great interview. You are right, TechCrunch was a tough crowd, throwing us in the dead pool instantly. As a musician, and a huge fan of music, I’d like to answer your ‘floor’ questions. My opinion may be biased so feel free (anyone) to object. First off, I’d like to say that Itunes matters. They control 80 % of all digital sales, amounting to somewhere around 3.34 Billion. Don’t quote me but the next closest online store sold approx 300 million. The 3.34 billion reflects and 800 million dollar growth from the year before. They are obviously doing something right. Also they have all 4 Major Labels contributing DRM free music, which will be available shortly (Itunes Plus). Which is essential. Second, I think free is a great model. Not only as an artist, but as an entrepreneur. Recall, I talked about Itunes control on the market. This may be, because most major distributor’s only distribute to major (established) online stores. Which is smart, but they are cutting out the little guy. I say if someone wants to sell music, sell it! So by WaTunes offering free digital distribution across the board you might see that market hold decline. That’s not our goal, but markets balance, basic economics. So were helping more people than the artists themselves. Lastly, Relationships are important. This is how the successful clients Kevin mentioned are ‘successful’. They have created a strong following, by developing strong relationships with as many people as possible. They have earned large sales revenue, being independent, by a close fan base alone. If you have 20,000 people who REALLY like your music, they will buy it. You release an EP, that could be a cool 10,000 in your pocket. Thank you for your time Greg, and RockStars
Tony
Vice President, watunes.com
Greg Rollett
1044 days ago
Thanks Tony for your remarks. There is no doubt in my mind that iTunes matters for the 4 majors, and the move to DRM is long overdue. The new pricing structure will cause backlash, but when there is demand iTunes will be there for the supply.
I will argue that to newer bands, iTunes looks to be very appealing, I mean, get my music in the same place as Jay-Z, Nickelback, whatever. It all comes down to creating a buzz, a track record and getting fans to believe and trust you, love your music and take action to make a purchase.