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6 Reasons Grooveshark’s CEO Thinks Recorded Music Should Be Free |

6 Reasons Grooveshark s CEO Thinks Recorded Music Should Be Free Evolver fm


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Here we are, sitting on over 30 million users, and nobody has really come to us and said, ‘Let’s take my artist and start building them here so we can make them a $20 million tour on the back-end. That’s where I’m heading with it. We have this band called Quiet Company — and we’re doing this as a case study so we can show the industry — who had zero plays. They’re an Austin band, kind of Strokes-sounding band, really, really strong, a really good band. We ended up just giving them these engagement ads we have now. If you’re on Grooveshark for more than four hours, you have to watch an ad, and they’re all music video ads. The response is overwhelmingly positive. We haven’t lost any users…

So with the engagement ads, we started with the Quiet Company video, and we’re doing this with 15 other artists. We drove half a million views within three weeks to the Quiet Company video, and it had like a thousand hits before that. If we’re at 10 times our current scale, it means we can drive five million views in three weeks. That’s insane.

The big thing I see as an opportunity is that plenty of venues are sitting there unfilled. Consumers are obviously willing to shell out for bands they love to see them live. And what that requires is free music to build these eyeballs up as much as possible. It’s not just music, either — it’s everything.

Old media thinks of things as restrictive. ‘How do we have a release date and not give anything until that release date? How do we not give everybody an exclusive?’ Whereas in the tech world, it’s always about scale: ‘How do we get this to as many people as possible?’ It’s a very different mindset that has created this clash between the old and the new.

So the music is just an advertisement for consumers to purchase tickets to live shows?

Makes sense to me.

There's probably good money to make in merchandising, too.