Talk about perseverence in the face of crushing litigation. Despite a massive major label lawsuit driven by EMI Music, digital music reseller ReDigi is now expanding its service to include direct artist payments on used MP3 sales. And for an industry that has captured little-if-anything from used CDs, that's pretty novel. Here's what the company shared this morning:
Crazy talk? As a quick primer, ReDigi has crafted a rather hair-brained concept for allowing consumers to resell their MP3s. It sounds outlandish given the near-complete lack of scarcity in the digital space, though EMI Music seems determined to destroy the concept if nothing else. But against accusations of encouraging piracy, ReDigi has protected sales against theft by requiring iTunes sales verification, which opens an interesting battle over the right of downstream sales in the digital space.
ReDigi says the 20 percent cut could amount to millions for artists. If that's the case, then ReDigi is laying the groundwork for critical artist support, something that companies like Spotify have shockingly disregarded - again and again - in their models.
But wait: ReDigi is taking it a step further. They think this market could be worth more than the primary digital music market. "Artists may earn more from the sale of a pre-owned track on ReDigi than from the sale of a new track on other sites," said founder John Ossenmacher.
Anyone whose been dragged into litigation - frivolous or otherwise - understands the gigantic distraction of resources that results. Product meetings get bumped by depositions; high-priced lawyers suddenly set the tone. Which is why ReDigi's product launches are pretty impressive. The rollout also includes a direct plug into iTunes, which effectively fills gaps in its used, digital catalog. So, buyers can purchase iTunes stuff directly through ReDigi.com, a move likely to bolster its iTunes-based claim of legitimacy.
There's even more: ahead, ReDigi is planning to launch 'Artist Direct,' a service that expands upon its reseller compensation program by allowing frontline sales. Which sounds extremely similar to Marc Geiger's pionering 'ArtistDirect,' not to juice another lawsuit...
Impressive Wednesday, June 13, 2012
I like this company. Lawsuit? Oh, that thing...that ain't shit.
mdti Wednesday, June 13, 2012
I think I would be perfectly happy to use a service like that in a DIY perspective. Probably as a label or major too.
Visitor Wednesday, June 13, 2012
this gets to the very core of "ownership" of digital material. i think it's a brilliant idea, and I'm interested to see how it shakes out. can we actually retain ANY value in the digital things we purchase?
mdti Thursday, June 14, 2012
One of the great contemporary artist (whose name i completely forgot) theorized the art market by stating that the value of a piece of art comes from its price tag, not the other way around. It is how the modern art markets work (music is not in the art market, ie, through auctions).
If everyone gives 0 value to an mp3, it has 0 value
if someone gives it value, it has this value.
If redigit pays 20% on used music transactions, then the value could be virtually illimited (imagine 1 single mp3 that is resold 100 times in a 5 years period, or 10000 times in 100 years period).
It completely changes the notion of value (present? future?) as well as the value itself.
It means that the purchase price is a minimum, and that the value can only grow.
mdti Thursday, June 14, 2012
that said in the point of view of the right holder of the mp3 in question, not in the view of the end-user (who is only able o recoup a fraction of the original price, which is already a big change in the digital world).
@ghettogandy Wednesday, June 13, 2012
Crazy talk or brilliant?
@ronstew Wednesday, June 13, 2012
mnew Thursday, June 14, 2012
The artist syndication programme (despite just being a move designed to win favour with artists/songwriters ahead of the court case) is the can of worms it opens regarding sound recording ownership. Most artists don't own their own masters, I can't see labels being too happy at proposed revenue from the sale of these masters going to the artists directly.
astarr68 Thursday, June 14, 2012
so does redigi have a system in place to confirm the original seller has removed their copy completely from any device? otherwise this is hardly reselling digital files, it's just posting copies for sale
FWIW Thursday, June 14, 2012
My understanding from reading ReDigi's website is that when you make a download you purchased available for sale through their service, it puts it in a holding area where you can still access it. Then, when it sells, the file is totally removed from your access.
Of course, if you had already burned it on to a CD, you could then just upload the file back onto your computer from the CD...
MDTI Thursday, June 14, 2012
An artist cannot expect much more than 20% from bigger labels and smaller ones can give you more but they don't necessarily sell a lot that makes it better than the 20% with the bigger labels.
Therefore, a diy can find an interest into allowing these transactions that can help diffusion and generate revenue.
who is talking about "the master" of the songs when the large majority is sold as mp3, cd, or fm radio. That's not really the masters.
I don't get what would really upset a right owner to see value generated by "copy/paste"... it would be "about time !" in my opinion :-)
@theseayfirmllc Thursday, June 14, 2012
Very interesting. Think the majors and iTunes are gonna let this slide?
@noahmsimon Thursday, June 14, 2012
Used mp3's? This is a joke