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-- What label will be LAST to give digital downloads?


Posted by THE_Chris on Jun-24-2005 17:39:

What label will be LAST to give digital downloads?

Ok so digital download stores are becoming quite a big thing. Audiojelly, beatport etc etc are now getting popular and are a hell of a lot cheaper than vinyl/CD. Its also just been announced that J00f recordings will now be digital only with limited vinyl runs.

So that got me thinking. What label will keep its ears closed and just keep doing what they're doing?? Who will be the last to go digital, or offer their tracks for sale on a digital download site?

My bet is Vandit. They're still vinyl only, hardly ever release CD's, and seem to be a 'diehard traditional' label. Doing a search for PvD on Beatport & Audiojelly reveals no matches, which is daft for his position in the industry.

What do you all think?


Posted by krivi on Jun-24-2005 17:44:

vinyl rulz


Posted by flavdave on Jun-24-2005 17:46:

Yeah I think you might be right about Vandit, as far as the big labels are concerned. I haven't seen Tsunami offering digital downloads anywhere either.


Posted by retrobyte on Jun-24-2005 17:48:

Re: What label will be LAST to give digital downloads?

quote:
Originally posted by THE_Chris
My bet is Vandit. They're still vinyl only, hardly ever release CD's, and seem to be a 'diehard traditional' label. Doing a search for PvD on Beatport & Audiojelly reveals no matches, which is daft for his position in the industry.


When I saw the topic that was the exact same thing that I tought :P These people really need to realize that if they don't expand their market, they're going to suffer...i don't care how "traditional" you want to be.


Posted by keithos27 on Jun-24-2005 17:57:

I bet Perfecto or Vandit... I only say Perfecto because they are so anti-technology (hell they can't even keep a fucking website up for years and pauloakenfold.com is as useful as a third nipple) and because of Oakey's whole vinyl stance... That being said I wouldn't also doubt it if he saw the $ to be had in digital downloads so I'm not 100% sure.

-Keith


Posted by Vyper0987 on Jun-24-2005 18:12:

quote:
Originally posted by flavdave
Yeah I think you might be right about Vandit, as far as the big labels are concerned. I haven't seen Tsunami offering digital downloads anywhere either.


I'd say it would be tsunami or vandit...can't find digital anything from them.



but with ferry starting his own label, tsunami may need to do something to make up for those sales (unless his label is still under purple-eye)


Posted by Psiweaver on Jun-24-2005 18:35:

yeah i'm gonna have to guess vandit as well.


Posted by torontotrance on Jun-24-2005 18:53:

no no no, they will all jump on the ship

Underground Resistance will be the last because Mad Mike Banks does'nt give a shit about the media nor does he care about mp3's

or

Fax

Namlook's label releases limited edition CDs and Vinyl, I doubt they will go to mp3's.


Posted by keithos27 on Jun-24-2005 19:12:

^True


Posted by 8Wonders on Jun-24-2005 20:38:

Believe it or not, digital downloads are way overrated from a label's perspective. Audiojelly and Beatport will NEVER replace vinyl sales when it comes to revenue.


Posted by keithos27 on Jun-24-2005 21:11:

quote:
Originally posted by DC-
Believe it or not, digital downloads are way overrated from a label's perspective. Audiojelly and Beatport will NEVER replace vinyl sales when it comes to revenue.


let's come back to that statement 2-3 years from now...


Posted by thesuperfunk on Jun-24-2005 21:19:

Re: What label will be LAST to give digital downloads?

quote:
Originally posted by THE_Chris


My bet is Vandit. They're still vinyl only, hardly ever release CD's, and seem to be a 'diehard traditional' label. Doing a search for PvD on Beatport & Audiojelly reveals no matches, which is daft for his position in the industry.



Have you not heard about V-Radio?

quote:
vradiostation is a Paul van Dyk / Vandit owned venture. It will be run in collaboration with a number of other labels.

On the site will be 24 hours a day streaming radio. Every track played on the radio will be available to buy in mp3 format for around 1,50 euro.

At the moment there are somewhere between 400-500 tracks which will become available on the launch. These tracks include Paul van Dyk / Vandit material, some as yet unreleased tracks and some 'all time favourite' tracks & tracks from label partners.

Also on the site will be an upload section where people who want to participate in vradiostation can place their tracks. If the tracks are appropriate then they will then be streamed on the radio & will be available to purchase from the site. A portion of each sale will go directly to the artist.


It's all out of Vandit's hands at the moment though as red tape is holding the whole project up.


Posted by CraSHer[UK] on Jun-24-2005 21:20:

quote:
Originally posted by DC-
Believe it or not, digital downloads are way overrated from a label's perspective. Audiojelly and Beatport will NEVER replace vinyl sales when it comes to revenue.


Doesnt sound too hard to believe to me.

Records are expensive, and to be honest anyone with a cdj is gonna find it hard to justify paying 7pounds/dollars for a record they could download for as little as 99pence/cents.

Especially those who play out, records are bulky, easily damaged and its a cheaper way to keep up with new releases. I mean people who play out (not as pro's) will be under a lot of pressure to have big new tracks which will probably be redundant in a couple of months. Whats the point of shelling out for the vinyl?


So when the profit margins are higher on record sales, why back a new medium which is potentially a lot more attractive but with lower margins?

My experience of browsing beatport is that its full mainly of junk that most people would only consider downloading for next to nothing. Small margins and sales are better than no sales, thats why in my opinion the quality of tracks available for legal download is poor.


Posted by _Ocean_Drive_ on Jun-24-2005 22:23:

I know what you mean about no PvD on digital download sites.

Infact, I've been browsing lots of hte legal sites recently, and very few have any of the tracks I want to buy (and no, it's not all cheese).

Why can't some company produce the mother of all legal trance mp3 sites?!


Posted by keithos27 on Jun-25-2005 01:54:

quote:
Originally posted by _Ocean_Drive_

Why can't some company produce the mother of all legal trance mp3 sites?!


licensing


Posted by 8Wonders on Jun-25-2005 02:04:

quote:
Originally posted by CraSHer[UK]
Doesnt sound too hard to believe to me.

Records are expensive, and to be honest anyone with a cdj is gonna find it hard to justify paying 7pounds/dollars for a record they could download for as little as 99pence/cents.

Especially those who play out, records are bulky, easily damaged and its a cheaper way to keep up with new releases. I mean people who play out (not as pro's) will be under a lot of pressure to have big new tracks which will probably be redundant in a couple of months. Whats the point of shelling out for the vinyl?


So when the profit margins are higher on record sales, why back a new medium which is potentially a lot more attractive but with lower margins?

My experience of browsing beatport is that its full mainly of junk that most people would only consider downloading for next to nothing. Small margins and sales are better than no sales, thats why in my opinion the quality of tracks available for legal download is poor.


Yeah, it costs 99 cent for the consumer, which is relatively cheap, you'd think that your typical trance release would rack up in 1000s of sales, becuase a lot of people would buy it. But no, that is not the case, the honest truth is that a record label sells more vinyls than they do digital downloads in majority of the cases. You also have to look at the fact that a label will get 50cents and under per digital download, in the end, you end up with pocket change as your profit, believe me I know from first hand experience. Somatic Sense cancelled majority of their digital music contracts becuase the numbers were a joke.

It is the same problem as vinyl and that is that people are just NOT buying music, no matter what medium it is, CD, MP3 or Vinyl.


Posted by Max Thomson on Jun-25-2005 02:20:

every techno label. why? techno djs want the vinyl, mp3s will always be cracker jack bullshit to them. if i had to pick a genre of music that was still 80% vinyl 10 years from now it would be techno


Posted by thesuperfunk on Jun-25-2005 02:48:

quote:
Originally posted by Max Thomson
every techno label. why? techno djs want the vinyl, mp3s will always be cracker jack bullshit to them.


How can you say that when Richie Hawtin was one of the first people to adopt Final Scratch?


Posted by CraSHer[UK] on Jun-25-2005 19:11:

quote:
Originally posted by DC-
Yeah, it costs 99 cent for the consumer, which is relatively cheap, you'd think that your typical trance release would rack up in 1000s of sales, becuase a lot of people would buy it. But no, that is not the case, the honest truth is that a record label sells more vinyls than they do digital downloads in majority of the cases. You also have to look at the fact that a label will get 50cents and under per digital download, in the end, you end up with pocket change as your profit, believe me I know from first hand experience. Somatic Sense cancelled majority of their digital music contracts becuase the numbers were a joke.

It is the same problem as vinyl and that is that people are just NOT buying music, no matter what medium it is, CD, MP3 or Vinyl.



I'm not sure you understood what I was saying.

I was saying that labels are sceptical of digital downloads because they might affect more profitable vinyl sales.


I think we are in agreement that the numbers of people paying to download are slim, however i think thats because they only release rubbish for digital downloads because the big tracks as records create a lot more profit. Thus releasing them on both formats makes no sense becuase if just one consumer decides to buy the mp3 where as they would have bought the record (if it wasnt available via digital download) then the label has lost out.


Thus the only labels that even bother with the digital downloads are those who's releases are too weak to compete at $7 with big releases, where as at 99cents they have a chance of sales.


Posted by flavdave on Jun-25-2005 19:34:

quote:
Originally posted by CraSHer[UK]
Thus the only labels that even bother with the digital downloads are those who's releases are too weak to compete at $7 with big releases, where as at 99cents they have a chance of sales.


I disagree.


Posted by AMP on Jun-25-2005 19:40:

quote:
Originally posted by flavdave
I disagree.


I disagree as well.


Posted by tylerc on Jun-25-2005 21:55:

quote:
Originally posted by DC-
Believe it or not, digital downloads are way overrated from a label's perspective. Audiojelly and Beatport will NEVER replace vinyl sales when it comes to revenue.


Except for the fact that for all practical purposes you CAN'T lose money offering digital downloads. Granted you have to pay bandwidth, but if you're using bandwidth, that means you're making sales.

Vinyl takes such a big initial investment that many start-up labels aren't even bothering.


Posted by swisstoni_uk on Jun-25-2005 22:02:

Shame about vradio as Vandit is probably my favourite label due to Pauls great taste in music . The labels are only missing out on sales though, i hope they realise this.... Lost Language just signed up, so did Black Hole, theirs only Tsunami and Vandit left..


Posted by CraSHer[UK] on Jun-25-2005 22:14:

quote:
Originally posted by tylerc
Except for the fact that for all practical purposes you CAN'T lose money offering digital downloads. Granted you have to pay bandwidth, but if you're using bandwidth, that means you're making sales.


you CAN, because for everyone who buys the mp3 who in its absence would have bought the vinyl, means you loose out. (admitedly that might not be that many people)


quote:
Originally posted by tylerc
Vinyl takes such a big initial investment that many start-up labels aren't even bothering.


I agree.



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