Internet-based music download sales reaches up P24 million a year and at its infancy stage. Most of these revenues are derived from international music sites such as iTunes. (for further validation)
Admittedly, not all record labels and websites are ready for this as piracy, cost, and other legal constraints come into play. Checking out music websites online led me to the following discoveries:
- Amazon
now sells 1500 Filipino music titles online. Most of the images I noticed has a watermark of TatakPilipino.
- There are almost 110 Filipino artist listed in MP3.com but I haven't found any of them selling music downloads.
- iTunes - the band Overtone, Kitchie Nadal, Universal Records, and Star Records have Filipino songs sold through it and can be purchased at US$0.99 each.
- From what I found out by asking around, at least 0.70 goes to the artist/record label. In the U.S., bands normally get 4.5 cents on every 99 cents digital download while the music publisher gets 9.1 cents.
- Local record labels would surely love to have their catalogue on iTunes. However, iTunes doesn't deal with record labels where iTunes is not available. The only way to do it is to have a deal with an agent based in a country where iTunes is available such as The Orchard. In that case, the revenue for the label will be lower as the agent will receive a commission for every download.
- Digijooze - is a local site where it sells music download of various Filipino artists and the cost per song ranges from 10 to 12 pesos. A prepaid card is usually purchased and the credits in it are used for purchasing. Record labels are usually offered up to 50% to 80% cut of the retail price. (3rd party source, no info on site, e-mail bounces) The site is able to offer at a lower rate as part of its value-added service is to improve record labels' website as well.
- As the site is selling songs using MP3 format without digital rights management (DRM), this has discouraged some of the record labels.
- I was trying to purchase from this site and realized that I can't buy the Digijooze card online as there is no registration page for that. When I clicked on the credit card feature, I didn't proceed as it immediately asked for personal information without even asking me to order the merchandise first and be informed of its cost. This makes me wonder on the policy of the credit card payment gateway it signed up with as that is usually not allowed.
- This site will also be working with one of the big shopping portal site in the country soon.
- Fliptunes - this site has almost 7100 songs that can be purchased online at 30 to 40 pesos each. It offers music downloads in WMA format with DRM. The site accommodates signed and independent artists and bands. Including video, its listing reaches up to 9000.
Revenue share given to record labels is at 80%. (3rd party source, no info on site, refused to disclose) - PinoyTunes.net - this has 4281 songs that can be purchase at US$0.75 per download. Revenue share given to record labels is at 80% (3rd party source, no info on site, no reply on inquiry so far)
- Another site where Filipino artist also tries to get into is Payplay and CDBaby.
(Drip's song Far Side of the World can be found on that site) - Mostly indie bands and performers.
- Record labels are not so keen in having their songs downloaded without DRM.
- Other popular sites where we will see more artists likely to join in the future are:
The revenue sharing arrangement between the record label, composer, and artist is based on mechanical production and digital performance rights.
As I was told, some CDs have different pricing tiers. Pricing usually depends if the CD is just released or if it's an old title. Obviously, the new ones would be more pricey than an old title unless the newly released CD has some sort of promo.
For music purchased online, one can argue that it is expensive compared to a CD with its per song price. Although being able to purchase only the songs you like may make it cheaper.
