Call me crazy, but I think that Trent Reznor has probably created the near-perfect digital distribution model. He has built upon what some others have done and really took it to the next level.
Consider some of the things that came first. Radiohead releases In Rainbows with “pay what you want” pricing. I don’t know if they were the first to release a record this way (with “pay what you want” pricing), but they did get a lot of attention because of it. Most people paid nothing for the record in which the files were encoded at 160 kbps and were free of DRM. So, regardless of whether or not you paid, everybody got the same product. The digital download was also made unavailable after a few months.
Next, we have Saul William’s record The Inevitable Rise and Liberation of Niggy Tardust! (which was produced by Trent Reznor). The album was available for free at 192 kbps and free of DRM, and for $5 people could chose between 192 kbps, 320 kbps and Lossless FLAC formats (also free of DRM). As with In Rainbows, the free version of the record is now unavailable, though the album can still be purchased for $5.
It should also be pointed out that In Rainbows also had a physical release with different versions (ranging from CD to vinyl) and The Inevitable Rise and Liberation of Niggy Tardust! will also get a physical release with additional tracks.
Moving on to Trent, Nine Inch Nails recently released Ghosts I-IV, a collection of instrument tracks in a variety of moods. Along with that variety of moods was a variety of purchase options that included a free edition of Ghost I (at 320 kbps), a full digital edition for $5 (available at 320 kbps MP3 files, FLAC and Apple Lossless), a two-disc CD edition for $10, a vinyl release for $39, a deluxe edition (that includes the multi-track files for remixing and a high resolution edition of the album on Blu-Ray disc) for $75 and an ultra-deluxe edition for $300. Here are some of the reasons why I think that this is one of the best distribution models out there:
- The files on the digital releases are high quality (320 kbps) and free of DRM.
- One volume of the record has been made available for free, rather than the entire work (though considering that the full version has no DRM, one could download the entire record for free if they wanted to. The work is licensed under a Creative Commons Attribution Non-Commercial Share Alike license, so people are free to distribute it.)
- No DRM means that it can be used in any MP3 player without problems.
- He has set a (reasonable) price of $5 for four albums worth of music on the digital release (no overhead to produce = more savings for the customer, regardless of the number of tracks).
- Given that he is selling the CD directly, he has cut out the middle men and set a low price tag of $10 for the CD version.
- He has given the customer a lot of choice on how they wish to purchase the record (Digital release, CD, Vinyl, etc.).
Not being tied to a record label means that offering this much choice and freedom with one’s music is possible. While it can be argued that, because of NIN’s popularity, something like this can work really well for them and not for anybody else. It may be true, but artists interested in distributing their music themselves should take notes on this. If you have a CD to sell, it doesn’t hurt to give people a taste of it (much like the free version of Ghosts I) and sell a full-length digital copy yourself. Again, it’s about giving choice to the consumer. If a person would rather buy the MP3’s from the start rather than a CD, it wouldn’t hurt to give them that option.
I think we have only seen the tip of the iceberg on what he has in store for the future. A few days ago, NIN released their latest single Discipline to radio and as a free download only hours after it was mastered. His blog has also been peppered with the same cryptic “Tic Toc Tic Toc” messages that were posted prior to the release of Ghosts I-IV.
Sure enough, NIN released their new record The Slip today, available absolutely free through their Web site, in a variety of digital formats under the same Creative Commons License as Ghosts I-IV.
And it continues…