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Beatpick is a netlabel that uses Creative Commons licensing, shares proceeds with the artist, and adheres to a Fair Play music model (a modification of Fair Trade).



Commentary from:

Interview by Open Business, at

The Beatpick Business Model

Founder David d'Atri Some basic differences with Magnatune:

1. We do not use a flexible price schema. We do not find it fair. Although it is really smart from a business point of view, we find no fair to use a clever type of price discrimination which aims to extract the total surplus from each customer by asking them to self-discriminate. We admit that it takes a lot of good marketing to ask people to self-discriminate and we think Magnatune does a great job. However we prefer to sell more at a cheaper price as we are for more people having more music. If we were to implement a flexible price schema then we would find fair to give artists 100% of the earnings over a certain amount.

2. We let artists go anytime. Agreement can be terminated in 30 days while Magnatune ask artists to commit for 5 years. We think Magnatune’s request is reasonable from a business point of view but it is not very fair as Magnatune does not commit to market each artist.

3. We have a completely different graphic and style. We target younger people. Our message is simpler and we think more direct. The graphic is not as serious as Magnatune. Graphic is very important and says a lot about who you are.

4. We try to create a network of artists collaborating for commercial and non commercial projects. ("commission work from our artists"). We get a commission on commercial projects but we get nothing for non commercial projects. Latest example is Tobor Experiment (experimental section) collaborating with HRF-LAB for the Lovebytes. Magnatune does nothing like this.

5. We try to deal with hip hop and video art music (experimental section). Magnatune does not. 6. We are going to make a section dedicated to VJ and use a similar business model. Magnatune does not.

Some consideration:

1. Most internet website split earnings 50/50. Nothing new. Certainly it was not invented by Magnatune.

2. Categories for music licensing were not invented by Magnatune's . Most music licensing websites have similar.

3. We have been operating for 30 days only and we have had an holding page for the last 2 months.

Our results:

missions including many record labels.

1. More than 4500 emails.

2. 53 artists signed.

3. About 75 links to BeatPick on google.

• Nobody has ever mentioned us to be similar to Magnatune, most of the people did not know about the Creative Commons. Are you sure we are operating in the same market Magnatune is operating? Are you sure is not good to have other similar business models? If not just to create hype around the Creative Commons. Are you sure there is no space for 2 similar business models in the market? • Net labels must be judged not only by the business but by their music, their graphic, their style, their marketing.

approva • WAV and OGG...where is the innovation? I think is just normal to offer them now that broadband is getting truly "broad".

• The main innovation is to offer music released under the Creative Commons and this is why we claim to support and believe in fair trade. Does Magnatune feature the CC logo in its homepage?

Some inspirations from Magnatune:

1. The licensing. I had in mind to sell music licenses. My original project was a sort of instant msn communication in order to provide clients with a an instant quote and a contract delivered over email. I was not sure how to build a music licensing control panel as we were short of money to hire a developer (no good myself) and a lawyer. 4 months ago I saw Magnatune and I thought I could give it a go as I understand Magnatune is pro Open Source therefore I do not understand why it should be unhappy about its business model being taken as an inspiration to build upon.

2. "The share 4 songs with friends" comes from a detailed analysis of network externalities in the music industry during my dissertation; I have a draft proposal of this idea written while working at a London record label more than 1 year ago.

Magnatune does a great job in marketing its idea and I do admire it. I do also admire John Buckman. I do also admit that is possible to find similarities but I think that you were way too harsh. You did not consider how good is for the Creative Commons, Fair Trade and the music business to have other record labels operating according to a fair business model. I do wish people to get inspired by this business model."