Recently launched record label DigSin has implemented a business model where each of its releases can be downloaded for free without any strings attached. The free downloads will be supported by display ads that will appear on the page. Music from DigSin can also be streamed via Spotify and purchased on iTunes.
Jay Frank, the head of DigSin, admits that online advertising won’t generate too much revenue for the company. However, he’s more interested in gaining insights into the demographics of the listeners rather than earning money off the free downloads. Frank states that:
DigSin is the result of years of examining the new ways music fans find and listen to music. We are committing ourselves to expose new songs in a targeted, organic way that enables us to be a trusted filter to music fans.
Frank strongly believes that this new model will work as combining multiple new revenue streams is the only way for a music company today to succeed. Currently, you can download the featured track from electropop solo artist NNXT for free.