Despite the seemingly hopeless financial situation record companies are currently facing, there have been some recent attempts to use the online music market as a means of making profit.
One approach that has been taken is Promonet which is hosted by IODA, a leading distributor of digital music, based in the U.S. Promonet is a management site that allows independent record labels to distribute and market their own music online for profit. Part of this process is that different bloggers, retailers such as Amazon and iTunes and other promotional partners are allowed to give away for free certain tracks that an independent label has chosen, as long as they include a buy link, which the label can then track. Promonet also offers the option for labels to begin their own online music stores, set their own pricing for specific tracks, and manage their own profits. According to Piers Stacey, attorney at IODA, who talks about the principles of Promonet in a panel discussion on Artisthousemusic.org entitled Monetizing Music in the Digital Age (November 10th 2007), "The whole idea behind Promonet is to directly connect its labels and rightsowners (i.e. artists and songwriters) to their fans." By giving away free downloads, labels that use Promonet are able to market themselves to consumers, and encourage consumers to listen to the music of independent artists, and potentially buy it.
In another project, according to Stacey, "IODA has been working with Spectra Records since 2007 to create a system that allows independent music promoters to digitally download albums so labels don’t have to service physical CD’s and send them through the mail - this can be very expensive. Rather than sending out $2 CD’s to everyone you want to have your CD before it’s released, you can create something online that allows you to track who downloaded what, and when."
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