revenue model for newtunes

If NewTunes is going to make it, it’ll need to generate revenue. Sure, if 100,000 of you (if there are that many of you… reading this, I mean… and I happen to know there aren’t, but anyway) decide to register on and use NewTunes religiously, we’ll be doing pretty well.

But our plans to stay alive and generate revenue are 99% centered around advertising revenue. In other words, we’re going to sell advertising on our site. This will allow us to provide useful services to musicians and bands for free (in fact, hopefully at a profit, for them, if they can sell their music).

It is my belief that the right advertising in the right context equals useful context. When I read the Onion, the ads for the Barrymore, Annex, High Noon Saloon, Majestic, etc (all local venues for touring and local bands) are all useful content. If they werent’ there, I’d either look for a publication that had them, or call the Onion and tell them to get them.

We want useful advertising. We won’t take a hearing aid ad (although, for some of you frequent concert goers, it might BE useful content), but we’ll take ads more in line with who we think you are (new music releases, for instance).

This discussion has led us, in-house, to whether or not to take Google ads. Money IS money, and we will need it to stay alive. However, the problem with Google ads is that anything might come through, although it is my understanding that there is an ability to control it to some degree – but who can predict what one may put in an ad that would get through your filter.

Recently, someone at Hypebot put an anti-record label ad on Columbia Records site (they take Google ads):

Major Labels Are Obsolete
R.I.P. or learn and thrive.
Music. Tech. The New Music Business

Click here for Hypebot’s take on it. But I agree with them that the small cut we get may not be worth the messages that will appear on our site. We’ve yet to resolve which way we’ll go with this, but I thought this was a good argument against…


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