Michael Masnick

This is a video of Michael Masnick, explaining the theory behind Trent Reznor and the business model.
Here are some notes I took while watching the video which explains shortly what it's about.

The business model is:

Connect With Fans + Reasons To Buy = The Business Model

"They all want a simple model that everyone can follow, but the point here is that while the model itself is simple, executing on any business model is difficult. It's about applying that "simple model" in a variety of different ways -- which Reznor has done time and time and time again."

• Trent Reznor/nine inch nails.
• Connecting with fans.
• Spreading music viral.
• Share music from USB as an example.
• Leaking music himself but giving them reason to buy.
• Changing colours on actual CD, original “will want to buy” can’t have that on mp3.
• Dropped record company, went out on his own but knew where he had his fans.
• Giving fans different reasons to buy and “Give him money” .
• Download song for free of website or download free + package deal.
• Deluxe edition 300 $ only 2500 in the world and all signed by Trent Reznor (special, unique, added value)
• 1,6 million $$ in one week all summed up, and people bought even though the music actually was there free as well.
• Connect with fans, showing maps where you see where other people are buying the same music. Build community, fans can connect with each other.
• Giving reasons to go to shows, “It’s worth it”
• Sample package free, high quality from all the different opening bands that were also on the tour.
• Putting it out on CD VINYL with limited edition
• Allowing fans putting pictures from “Flickr” onto his website, feel they’re part of something bigger.
• Encouraging people to remix, getting the fans more and more involved with the music