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November 04, 2010


Chris Dreyer

Great talk, thank you! Your migration to the "Customer Happiness Business" is an interesting and appealing proposition.

Roland Perez

Interesting. I now clearly see the benefits to the end user AND the provider (Magnatune) for your new business model. It's a pity the artist sees the least amount of compensation of the triangle. That is unless the artist is fine with only a fraction of a fraction the profits. In any case, smart business move.


Very interesting talk, John. I have been a happy listener for years, buying the odd album here and there. I am very happy to have switched over to a full membership model. I really do feel great about being a member because I no longer have to worry about which ones to buy, or feeling guilty for not buying, etc. I just listen and listen and listen and enjoy. Thanks!


Very nice talk, and it makes much sense. Go with the strategy that has served the arts for hundreds of years, or go with the strategy that has served the record labels for a few decades? I gotta say, I like Magnatune not only for it's business model, but for it's nice selection of music, despite what that old man says. Personally, I think we should have more of that other woman's voice, but anyway... I think this model is great and hope it serves Magnatune well for a very long time.

John from Magnatune

re: That is unless the artist is fine with only a fraction of a fraction the profits.

Roland, the artists on Magnatune continue to receive a 50% of revenue, which is to say 50% of the membership receipts, and this is split evenly on a per-member basis, by looking at what each member has downloaded. Magnatune's musicians are happier under the new model because they still get paid, a lot more people hear their music, and since Magnatune's revenue is up 3x over the download model, so musician royalties are also up 3x.


colin booth

Good talk, John!

As a musician, I'm here to give enjoyment and stimulation. There's no point in what I do, otherwise. All methods which help sustain this ideal are welcomed by me, and it seems to me that Magnatune is serving this purpose admirably.
Thanks for getting the Croft CD up so quickly!

Best wishes, Colin Booth.

Roland Perez

john, I'll correct my last statement... What i should have said was a fraction of a fraction of what the artist USED to get via the old business model. I do understand that the artist still gets 50 % of the revenue. In any case I am looking forward to seeing exactly what that income is when your accounts and revenue dashboard is fixed and current. As far as the listener and Magnatune serving the listener... the new model makes sense... clearly. Thanks.


Not many of your 20,000 are happy if they are not subscribing. It may not just be that they are freeloaders! It may be that $15/mo is too high and you need to find a "happy" medium--such as streaming only or ad revenue.

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