MusicDish e-Journal - February 20, 2018
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Metallica the Monopolist
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-07-14
Comment | Email | Print | RSS

I found Tom White's comment to be right on point, which should concern us all.

"The most obvious reason for not wanting to sell singles: when you buy a single, the artist gets only 1/12 or so of what he/she would make when you buy an album. If you thought that only one or two songs on your album were marketable, would you want to unbundle them?"

Bundling is done for several reason: the goods are complementary (razor/blade), bundling provides additional efficiencies such as in marketing/retail,... The reason you provide, if I may paraphrase, is "I've produced a crappy set of products, of which only 20% are profitable in the market. So to ensure profitability, I'll bundle the crap with the good, forcing the consumer to pay for the 80% they don't really want."

MusicDish Network Advertisement
By itself, there is nothing wrong with this, though it would most likely turn into a business blunder as competitors offered an unbundled set of goods that reflects what consumers want. This would force the producer to themselves unbundle in order to remain competitive, though they may continue to offer the bundled set as well.

And therein lies the problem with bundling and the music business. An entrepreneur cannot unbundle Metallica's album without their permission, even where it to make business sense. Metallica's 'monopoly' over its works allows it to impose the more costly product on consumers without the competitive check that regulates most other markets. In economic terms, Metallica is a monopolist using its market power to impose a bundled product and reap supra-competitive rents.

Nor is it clear that Metallica's strategy is profit-maximizing. By forcing a bundled version of the good at a given price, the band is in fact restricting its customer base, rejecting those willing to purchase selected singles or unable to afford the full album. The situation is exacerbated by the free availability of these same tracks on file sharing systems. Metallica is practically begging their fans to go to Kazaa.

Alternatively, Metallica could broaden its market base to include non-album purchasers. Consumers purchasing the full album could be provided a bonus in order for singles not to cannibalize on album revenue, while those singles could be priced at a premium ($1.50 versus ˘99), reflecting the consumers desire for flexibility. Offering singles would not only enlarge buying customers among Metallica fans, but newcomers intrigued by the buzz and wishing to 'sample' their music. Incorporating these otherwise forgotten consumers may also lead to increased ancillary revenues such as merchandising and concert ticket sales.

While it may seem unfair to many Metallica fans, it is clearly within Metallica's right. Now if Metallica's label, Elektra Records, were to make individual songs available exclusively (or on a preferential basis) to firms affiliated with its parent AOL/TW while imposing the bundled album on unaffiliated companies, that would be another story.


Home » News Beat » Metallica the Monopolist
Permalink:http://www.musicdish.com/mag/?id=8432
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

News Beat

» B-Reel Named Top 10 Most Innovative Company in Music by Fast Company

» VNUE Inc. To Acquire Music Rights Startup Soundstr

» Viberate & Imogen Heap Strive To Give Equal Opportunity To Every Artist

» Mixcloud Taps Gracenote for Advanced Music Recognition

» Copyright Royalty Board Increases Sirius XM Royalty Rate

News Beat Directory



» [2018-02-20] B-Reel Named Top 10 Most Innovative Company In Music By Fast Company; Global Creative Agency Receives Honor For Its Award-Winning Gorillaz Campaign

» [2018-02-18] YG PLUS And Gracenote To Bring K-POP To Fans Around The World; Gracenote And YG PLUS To Make All K-POP Music More Searchable And Discoverable On Global And Regional Streaming Music Platforms And Services

» [2018-02-17] VNUE Inc. To Acquire Music Rights Startup Soundstr; VNUE Acquisition Aims To Ensure A Fairer Royalty System

» [2018-02-17] Is Podcasting The New Radio?; 25% Of Surveyed Americans Say They've Listened To A Podcast In The Past Month, Up From Less Than 10% In 2008

» [2018-02-01] Insomniac Announces Inaugural Electric Daisy Carnival China Set To Debut In Shanghai; China Marks EDC's Second Location On The Asian Continent

» [2018-02-01] Viberate & Imogen Heap Strive To Give Equal Opportunity To Every Artist; Heap's Main Role In Viberate's Advisory Team Will Be To Help Further Guide Us Toward A Second To None Service For The Live Music Segment

» [2018-01-22] Italian Independent Music Collective Fil1993 Group Signs With MusicDish*China; MusicDish*China Will Be Developing Their Online Presence And Social Media In China As Well As Releasing Their Catalogue To Chinese Streaming Music Services

» [2017-12-25] MusicDish*China Presents 'Savage Guitarist' Todd Clouser In Beijing; As Part Of His #YouTheBrave Asia Tour That Includes 8 Shows Across Japan, Todd Will Be Giving Solo Shows At Laifu Livehouse On 12/27 And Temple Bar On 12/28

» [2017-12-20] Mixcloud Taps Gracenote For Advanced Music Recognition; Next-generation Audio Fingerprinting Helps Mixcloud Identify And Catalog Copyrighted Music Within User-generated Content

» [2017-12-18] Copyright Royalty Board Increases Sirius XM Royalty Rate; Judges Announce Royalty Rates And Terms For Satellite Audio Radio Services (SDARS) And Preexisting Subscription Services

» [2017-12-06] Lithuanian Band Grabs Bronze At The Silk Road Indie Music Festival 2017; Antikvariniai Kašpirovskio Dantys Competed With Bands From Belgium, Sweden, Armenia, Germany, Japan, South Africa, India, Norway, Poland, Italy And The UK As Well As China

» [2017-12-06] Live Entertainment Specialists Headliner Launch Premium Artist Booking Service; A Fully-managed Service That Simplifies The Process Of Booking Renowned Artists And Performers For Occasional Event Planners, Agencies And Brands
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Hybrid Studios Hosts Annual NAMM Afterparty

High Definition Music Card - The New Way To Experience Music!

DEATH BY MISADVENTURE, New True Mystery Podcast Launches 31st January 2018

Music And Kids Joins Forces With Carnie Wilson, With Plans To Provide One-on-One After-School Music Education To Thousands Of Middle And High School Students

Don Dawil's Valentine's Day Debut Latin Single "Necesito Verte"

Taking Applications - The 23rd Annual USA Songwriting Competition

The International Music Consulting Firm GINGIO Hosts Events At NAMM And Grammy Weeks



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2018 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships