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Trent Reznor Makes A Nice Chunk Of Change From “Ghosts”

trent reznor money hat
The Nine Inch Nails camp has reported that first week cumulative sales of all “Ghosts I-IV” SKU’s have totaled 781,987 units with total revenues of $1,619,420.

A pretty good haul for our buddy Trent if I don’t say so myself.

If we google first week CD sales numbers for the last three Nine Inch Nails records, (Year Zero, With Teeth, The Fragile) we can see that they each sold between 200,000-300,000 copies. (Apologies for not having exact numbers, my SoundScan access expired) Already an impressive feat for Ghosts as its first week numbers almost triple any one of the previous records.

“But what about the free downloads skewing the numbers?” you may ask.

At the end of the day, what matters most to the artist? Money. Ghosts‘ $1.6 million take goes ALL to Nine Inch Nails (yes, then they have to pay for bandwidth, manufacturing, distribution, and whatnot). Contrast that with the horrid cuts that major label contracts give to an artist on CD sales (normally $1-$2 per record sold, not including advance repayments). Say Trent made $2 per record for one of his last 3 records. At an average of 250,000 copies sold, he would take in $500,000 from first week sales. That’s almost one-third what he’s pulling in now from Ghosts!

If you were a major artist, which way would you want to sell your record?

Granted, time will tell if Ghosts will have staying power and continue to take in revenue. A big chunk of that $1.6 million was due to the $750,000 from the “ultra limited edition” that will never be sold again. However, my intuition tells me that the costs in recording this latest all-instrumental album were much less than a traditional nin album and that Trent probably already has a good return on his investment already.

It’ll be interesting to see how this model works with other artists or even a “real” Nine Inch Nails album. But from the looks of things, Trent is onto something here.

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Trent Reznor Releases New Nine Inch Nails Album, Ghosts I-IV, Available Now For Free*

*The first fourth is free

Out of NOWHERE, Nine Inch Nails have released their new album available right this second from the nin website.

Trent Reznor shows again why he’s the most innovative artist today in pioneering new business models for music. The album, a 36-track instrumental album collection called Ghosts I-IV, is available via six different SKU’s, from free to $300. The album is even released under the Creative Commons License, solving the earlier issues he had when trying to hold remix contests with fans.

From the press release:

FREE DOWNLOAD Ghosts I – The first 9 tracks from the Ghosts I-IV collection available as high-quality DRM-free MP3s (320kbps LAME encoded, fully tagged) including complete 40 page PDF. Also includes the digital extras pack – various wallpapers, icons, and graphics tools for your computer, website, profile, etc.
$5 DOWNLOAD Ghosts I-IV – All 36 tracks in a variety of DRM-free digital formats (320 kbps LAME encoded, fully tagged; FLAC Lossless; Apple Lossless) including a 40 page PDF. Also includes the digital extras pack – various wallpapers, icons, and graphics tools for your computer, website, profile, etc. This version is also available from the Amazon MP3 store.
$10 2XCD SET Ghosts I-IV – 2 audio CDs in a gatefold digipak package with a 16-page booklet. To be shipped TBD. Includes immediate DRM-free download of the entire collection in same choice of formats as $5 Download option. Download will include the 40 page PDF and the digital extras pack – various wallpapers, cons, and graphics tools for your computer, website, profile, etc. This configuration will be released to retail in North America (April 8), Australia (April 5), the UK (April 8), Japan (April 5) and most European territories (April 8).
$75 LIMITED EDITION DELUXE PACKAGE Ghosts I-IV – Hardcover book holding 2 audio CDs, 1 data DVD of all 36 tracks in multi-track format (in .wav files readable by Mac and Windows), and Blu-ray disc featuring stereo recordings in high-definition 24 bit 96Khz with exclusive slide show. Includes immediate DRM-free download of the entire collection in all formats and with all extras mentioned above. Also includes 48-page hardcover of photographs by Phillip Graybill and Rob Sheridan. Discs and art book both housed in fabric slipcover.
$300 ULTRA-DELUXE LIMITED EDITION PACKAGE Ghosts I-IV – Contains all elements from deluxe package, along with exclusive 4XLP 180-gram vinyl set, and two limited edition Giclee prints available exclusively in this package. Disc book, art book, and prints are all housed in a fabric slipcover. 4XLP vinyl set comes in its own fabric slipcover. INCLUDES immediate DRM-free download of the entire collection in all formats and with all extras mentioned above. LIMITED TO 2500 PIECES, NUMBERED AND PERSONALLY SIGNED BY TRENT REZNOR.
$39 4-vinyl version will be available at retail April 8.

Brilliant. Trent’s definitely learned from the Saul Williams experiment.

By creating a tiered distribution model, Reznor satisfies different level of consumers with aplomb. He gets the mass-market/non-fans with the free 25% of the album. If they like the music, buying the entire album digitally is a very reasonable $5 investment. If they don’t like it, not as much bandwidth is wasted on them as giving away the entire album. It also creates a bigger incentive for people to pay up. For people who want a badge of honor/lossless recording/CD for the car a 2 CD set is only $10. While it’ll be a little bit before they ship, they still get the instant gratification of a digital download along with digital art bonuses. For the true audiophiles/remix artists/fans, the $75 edition has every possible file format (including Blu-ray!) you could want along with a nice hard art-package. Finally, for the extreme fans/collectors, he’s got a truly unique limited edition offer. Hell, there’s even a vinyl version if you’re a record snob/Bob Lefsetz.

Combining digital with physical offerings in affordable options makes too much sense. It’s a wonder no one hasn’t done it before. To top it off, there was no “street date” with this release. A new NIN album was a given, but no one had any idea it would be this quick and this sudden. The usual process of leading with a radio single, announcing dates and “building hype” is completely shattered. Taking a cue from Steve Jobs at Apple, Reznor announces and distributes AT THE SAME TIME. What an idea! Why the fuck won’t more artists/labels see this? Nothing is more annoying to a fan than seeing/hearing new material from their favorite artists and not being able to buy/consume it the second it comes out.

The only blemish on this release thus far is that the webstore seems to be absolutely hammered to hell right now. I can barely load the page, much less buy or download anything. Did we not learn anything from the In Rainbows initial fiasco?

Discounting the technical difficulties, though, this, my friends, is how it is done. It doesn’t even matter if the music sucks, I wouldn’t want to buy music from my favorite artists any other way from now on.

Read the full press release after the jump

Buy/Download Ghosts I-IV [ghosts.nin.com]

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