Trent Reznor posted the other day the sales results of the label-less album of Saul Williams he produced, “The Inevitable Rise and Liberation of NiggyTardust”. He wrote:
Saul’s previous record was released in 2004 and has sold 33,897 copies.
As of 1/2/08,
154,449 people chose to download Saul’s new record.
28,322 of those people chose to pay $5 for it, meaning:
18.3% chose to pay.
Of those paying,
3220 chose 192kbps MP3
19,764 chose 320kbps MP3
5338 chose FLAC
Keep in mind not one cent was spent on marketing this record. The only marketing was Saul and myself talking as loudly as we could to anybody that would listen.
Before discussing what other bloggers have said about the subject, lets take a look at the numbers.
The facts of the industry
First some facts:
- The average cd price of the time was 14,92$ (according to RIAA; pdf file here)

- more RIAA numbers (a *pdf file again). Between 1996 and 2006 we have an increase of concert ticket prices of 86%, while cd prices fall only 9%.

- and according to musicBizAcademy
A new act usually gets somewhere between 10-15% of the suggested list price of a recording. (Remember too that out of your percentage, you must pay your producer their percentage, for producing your record.)
What do the numbers say?
- 2007: 28,322 people payed 5$ for the album, this means a profit of 141,610$ (remember the album is label-less; I suppose out of that profit, the artist has to pay the producer too).
- 2004: Saul’s previous record sold 33.897 copies. This means a profit of 505,743.24$ (the album distributed by Fader Label). Out of the se505,743.24$, Saul receives 15% (lets suppose 15% according to the information of MusicBizAcademy; probably more, since he wasn’t a new act – but lets say 15% without counting the payment to the producer), which equals for the artist to a profit of 75,861.476$.
So lets compare the numbers: without a label, Saul Williams earned 141,610$ and with a label 75,861.476$.
These numbers are more or less hypothetical (especially the 2004 numbers), but you get my point. Correct me if you find anything strange.
This means, that Saul – supposedly – had a pretty good profit from his independent debut, while also gaining considerable amounts from his concerts (don’t disregard that Saul’s independency and collaboration with Trent Reznor has also increased his popularity; and of course the price increase of concert tickets).
The blogosphere’s points
- Mashable, commenting on Trent Reznor’s disappointment wrote:
First of all, Saul Williams isn’t exactly a name brand. For someone with one other album having been produced before this one, I personally would be thrilled with the distribution they received on word-of-mouth.
I agree, Saul Williams isn’t a brand name. But I think Reznor is disappointed from the pure numbers; 18,3% willing to pay just 5$ seems disappointing indeed. Especially, when you think that you are actually encouraging the beginning of an artist
- One more interesting point is that Saul Williams, reached a wider public. 33,897 people listened to him in 2004 (officially) and 154,449 in 2007 (still officially). That’s a growth of almost 450% in just 3 years. That’s big (and without marketing!)
I don’t know if you have followed the creative force of Trent Reznor. But if he wants to market a product, he has fascinating ways to do it (remember the Year Zero Project?)
- Finally, as Marshall Kirkpatrick notes, we still don’t know how the concerts of the artist went. Do we have a similar increase? If so, I would say, Saul’s experiment was a huge success.
Conclusion
It seems to me that the independence of the artists from the (at least big) labels is on the way. We still have to wait for the results of Radiohead and Madonna to see the subject (a bit) more spherically, but the numbers about S. William’s album speak for the transformation of the traditional music industry. Recent news are giving us a hint. Philips joins forces with Rhapsody and labels in general are looking for new options.
Update:
Some thoughts on the Radionhead album are out. Noone knows the profits for sure, but the whole concept looks like a combination of traditional and modern promoting. In a way like the Reznor-Williams experiment, but in a more secure way.
Radiohead used word-of-mouth to get the attention of the public (which is certainly online) and then went ‘traditional’ (removing the internet download version and moving to the ‘physical’ stores).
Lets wait for the numbers, to get some more conclusive results.