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Distribution

Nine Inch Nails and the new distribution model

Trent Reznor (Nine Inch Nails founder if for some reason you don’t know) has clearly got some forward thinking marketing and complete understanding of the future of the ‘new’ distribution model of the internet.

This past week, he released several versions of his latest album, Ghosts, a four volume set. The first nine songs (the entire first volume) was available as a high quality, DRM-free download - completely free! As in, free. The next option was, for $5, one could purchase the entire album as a digital download. Again, high quality (320kbps) file as an mp3 or AAC. And no copy protection on those files.

Finally, you can purchase, for $10, the actual CD. However… when you purchase the actual CD (which ships in April), you are given a link that allows you to immediately download the same high quality mp3 or AAC files as with the $5 purchase, and the CD will be shipped to you.

I think this is great forward thinking and he’s going to reap the benefits. After all, he’s doing all of this on his website. Not going through a record label.

This is just more mainstream evidence that content creators are beginning to distribute their work on their own. Whether it is a band like Nine Inch Nails or an independent film by any number of artists across the globe, we are seeing this trend rapidly grow.

And while the total number of sales are not as high as going through a record label (I believe Reznor sold 600,000 to 750,000 albums, well below the million album mark), they had several other benefits. They made more money (since they kept it all and didn’t give anything to the labels) and they were able to keep complete artistic control of their content both during production and then during the sales and beyond.

2008 will see many more mainstream bands breaking from the labels and releasing their music on their own. We will also see many more independent films released for either direct download or DVDs available for purchase on the film’s website.

What is even more exciting about this trend is small effects houses like ours have seen an explosion in new films being created and the level of quality has risen dramatically with the affordable HD cameras on the market. I love being able to work on these independent films in true HD, shot by a crew of independents with a vision.

It is an exciting time and we are in the very beginning of this revolution. Get ready for all the rules to be broken by the people, for the people!

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