Independent artists and technology
Internet technology allows artists to introduce their music to a potentially enormous audience at low cost without necessarily affiliating with a major recording label. The design of digital music software encourages the discovery of new music. Sites with larger libraries of songs are the most successful. This, in turn, creates many opportunities for independent bands. Royalties from digital services could prove to be an important source of income. If an artist has already paid to record, manufacture, and promote their album, there is little to no additional cost for independent artists to distribute their music online. Digital services offer the opportunity of exposure to new fans and the possibility of increased sales through online retailers. Artists can also release music more frequently and quickly if it is made available online. Additionally, artists have the option of releasing limited edition, out-of-print, or live material that would be too costly to produce through traditional means. No limit is the largest independent record company in the US with sales over 75 million records.
Some independent artists have used the Internet (and an established fan base) to successfully fund new recording projects, relying on services like ArtistShare or using their own sites. For instance, singer-songwriter Jill Sobule released "California Years" in 2009, an album for which she'd raised nearly $90,000 online. Sobule explained her telethon-like fundraising approach thusly: "The contribution levels went from $10, which got you a digital download of the record, to $10,000, which gave you the chance to sing on the record." (One generous donor did contribute at the $10,000 level.)
With the arrival of newer and relatively inexpensive recording devices and instruments, more individuals are able to participate in the creation of music than ever before. Studio time is extremely expensive and difficult to obtain. The result of new technology is that anyone can produce studio-quality music from their own home. Additionally, the development of new technology allows for greater experimentation with sound. An artist is able to experiment without necessarily spending the money to do it in an expensive studio.
Most artists maintain their own websites as well as having a presence on sites such as Myspace.com. Technological advances such as message boards, music blogs, and social networks are also being used by independent music companies to make big advances in the business. Some sites rely on audience participation to rate a band, allowing listeners to have a significant impact on the success of a band. This eliminates new talent search and development, one of the most costly areas of the music business. Other sites allow artists to upload their music and sell it at a price of their choosing. Visitors to the site can browse by genre, listen to free samples, view artist information, and purchase the tracks they want to buy. Acts such as Wilco have chosen to make their new albums available for streaming before they are released.
Many bands have chosen to forgo a record label and instead market and distribute their music only on the Internet. Digital marketing firms such as CDBaby, Magnatune and iTunes offer opportunities such as podcast creation and promotion and video hosting. In the case of digital distribution, musicians lend a company the right to distribute their music. The contract is often non-exclusive, and the rights to the music generally remain with the artist. The non-exclusivity of the contract allows many artists to have an online presence while continuing to sell directly through their local independent music stores.
A more recent trend is seen in artists who give their music away for free, such as the "record lable" Quote Unquote Records, featuring bands such as Bomb the Music Industry!, Radiohead, with their 2007 album In Rainbows, The Go! Team with their single "Milk Crisis" and Trent Reznor of Nine Inch Nails with the 2008 albums Ghosts I–IV and The Slip.