KEY POINTS:
The New Zealand music chart began counting songs downloaded via the internet this week and already the change is noticeable.
The Recording Industry Association said yesterday that hip hop and R&B songs are climbing up the Top 40 chart, mainly because music downloads to mobile phones are now counted.
And Regina Spektor's catchy single Fidelity debuted at number 16 thanks to digital downloads. It wasn't released as a CD single here, only as a digital download and on the album Begin To Hope.
The changing shape of the charts illustrates how the internet is being used to get music to a diverse range of niche audiences, something known as the "long tail" effect.
In future, the charts may not be full of only those acts that get the most airplay and industry promotion, but also contain acts that succeed in capturing the imagination of the online public.
It made me think of one little music industry story of the long tail I've been following closely.
One of my favourite bands is an inventive rock outfit appropriately called Vast (Visual Audio Sensory Theater).
It's the creation of American singer-songwriter and multi-instrumentalist Jon Crosby who, much like Nine Inch Nails' Trent Reznor, likes to twiddle away in the studio on his own, comfortable working in the digital medium.
Vast flirted with big-label success at the turn of the century after its song Touched appeared on the soundtrack to the Leonardo DiCaprio movie The Beach.
There were a lot of rave reviews.
"Vast will appropriately be huge," proclaimed Kerrang magazine in 1999.
But Vast was dropped by Elektra when its sophomore album Music for People failed to make an impact on the charts. So Crosby signed with small, independent label 456 Entertainment to release his third album Nude.
"There were so many problems dealing with them on every level," says Crosby in an interview on Realvast.com.
"I feel we made a big mistake not believing in ourselves enough and doing it on our own."
For every album since, Vast has gone it alone and gone digital, releasing its music primarily via the internet.
It was an acknowledgement by Crosby that maybe his music isn't really for the mass market after all. But in the era of the long tail that doesn't matter, because numerous lucrative niches can be reached via the internet.
Crosby set up his own label and media company 2Blossom.com. As a Vast fan it is great for me. Getting hold of the band's albums even in specialist music stores like Real Groovy has always been tricky. After all, why would retailers devote shelf space to an album that isn't hot?
Now I can just download the albums through the website. The music is free of digital rights management, the files are mp3s encoded at 320Kbps (kilobits per second), which is CD quality. I can pay with my credit card via PayPal.
Best of all the music is very good value, too good really. I just downloaded Vast's new album April, which cost me just US$5 ($6.8).
But because Crosby owns the music and the record label, he's not getting a mere slice of album sales, he's now getting every cent.
Artistes signed to major labels receive as little as US$1 per full-priced album they sell. Cutting out the music industry middlemen means more money for the artiste.
Without the marketing muscle of a record company which can hold great sway over which artistes get radio play thereby influencing music sales, an artiste is unlikely to sell as much music.
But bypassing the traditional music industry business model has become viable, thanks to the rise of digital music download services and social networking websites that act as a digital hub for a fan base.
The most notable examples are Myspace.com and Facebook.com. Vast has fan communities on both sites.
"The days of the aloof rock star are over," says Crosby.
"Now more than ever doing new things is important, and if you can't keep up with what's going on, you're left in the dust."
In addition, since 2005, he has been selling annual subscriptions to the Vast fan club for $36 which includes a greatest hits compilation, audio commentaries on Vast albums and the chance to buy VIP ticket to shows. There have been 745 downloads of those - worth about US$27,000.
It's not the big money usually associated with the music industry, but with music sales, touring and merchandise, it may be enough for a Crosby and his band mates to earn a living - and keep control of their destiny.
Crosby seems to like the model: "I feel like for the first time I have found my niche and my voice."
This way of doing business will become the norm for all sorts of industries, but especially the creative, publishing and technology sectors which are most comfortable dealing in the digital medium. For New Zealand entrepreneurs located far from our key markets, the opportunity that lies in the long tail is, well, vast.
