Interesting TuneCore link

[richardmac]

Just read this link:

 

http://www.digitalmusicnews.com/permalink/2011/111123tunecore

 

 

Let me summarize for you. According to the article, 99.9% of all Tunecore users earn less than minimum wage. That's predictable if you think about it. But the average Tunecore user earns $179 per year, according to the article. To me, that actually sounds a little high. But assuming it is close to accurate...

 

With that info, we ought to be able to determine if those "average" users would be better off staying with TuneCore or moving to CDBaby.

 

First, the obvious - with CDBaby, you can have zero sales and your music will remain on iTunes, and you will owe CDBaby nothing, but with TuneCore if you sell zero you still pay yearly fees of $50 per CD. So obviously under a certain amount of sales, CDBaby will always win. Also, let's ignore the "startup" fees, which are higher for TuneCore than CDBaby.

 

So say I have 2 CD's on TuneCore and I'm making $180 per year before fees. What would that look like?

 

TuneCore

 

180 songs sold on iTunes for $1 each = $180

TuneCore's $50 per CD per year fee = - $100

Total = $80

iTunes cut of 30% of 180 = - $54

Total = $26 profit

 

CDBaby

 

180 songs sold on iTunes for $1 each = $180

CDBaby's 9% off the top = - $16

Total = $164

iTunes cut of 30% of 180 = $54

Total = $110 profit

 

TuneCore has always stated that they know that CDBaby is cheaper for those who will only sell a handful - that their service is for people who are going somewhere. IF these figures are accurate, doesn't this mean that the average TuneCore user would be better off on CDBaby?

 

Extend it out to 50 years - assume you want your music on iTunes for 50 years. Assume both companies are still around. Assume the fees remain the same (ha ha ha.) What would it cost in fees?

 

TuneCore - 2 CD's at $50 each for 50 years = $50,000

CDBaby - 2 CD's at $0 each for 50 years = $0

 

If my math is messed up or someone has evidence to the contrary of what I posted, please post a correction and show us the same breakdown with the corrected math. I don't work for CDBaby - they almost lost me as a customer when they totally screwed up the website a few years ago. But TuneCore has always been interesting to me because you PAY YEARLY to have your music on iTunes but it doesn't cost TuneCore ANYTHING to keep your music up there. I have always thought that concept was a rip off to customers.