Downtown Records Launches With Free Music Model
June 11, 2007 at 5:44 AM (PT)
DOWNTOWN RECORDS and Internet entrepreneur PETER ROJAS plan to launch an online-only record label that will offer its music for free and generate revenue only through advertising and sponsorships, reports PETER LAURIA in THE NEW YORK POST.
Dubbed RCRD LBL and targeted for launch this fall, the venture aims to merge free, exclusive music with niche blog content to offer advertisers highly targeted sponsorship opportunities. Or, to put it another way, the label marries DOWNTOWN's ability to identify cutting-edge artists -- the label's roster includes blog-beloved bands like GNARLS BARKLEY and COLD WAR KIDS -- with the architecture of ROJAS' weblogs to create a next-generation online music company.
One source familiar with the project described it as a "curated YOUTUBE or MYSPACE for music with an editorially driven filter."
"There's an urgency in the industry to find new ways to monetize content," said one source familiar with the project, "and the economics of the Internet facilitate this model because it allows for a leaner organization while letting fans dictate the process."