Can Music Still Make Money?

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April 17 (Bloomberg) –- Just Go.com CEO Justin Golshir discusses the music industry and Wu Tang Clan’s plan to sell just one copy of their latest album for a multi-million dollar figure. He speaks to Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Gimmick, revolutionary?

There is some background here.

The music industry has changed from a physical business to a digital business.

You have cassettes, cds, and what itunes and innovation around digital digital products, you have mp3s. artists and labels have made less money as a result of that.

Wu-tang clan are being very innovative.

They are saying the music is not a commodity but an art form.

Supply and demand and we can get money for it as if it's art.

It will sit in this engraved silver in the box.

They will tour to museums where they will have to pay $35 or $40 to listen to a bit.

Ultimately you will be auctioned.

This is a band whose heyday was back in the 1990's. again, it is supply and demand.

Is there demand for this?

If this was coldplay, jay z, beyonce.

Their last album was 2007. in the hip-hop community, they are royalty.

They are influencers.

They have been offered between $2 million and $5 million so there will be a buyer.

Will the buyer have control of the rights?

Can they sell it off or give it away for free across music platforms?

I'm not sure the specifics of the deal.

There's lots of options here.

You could see an individual buyer, a brand that may want to get involved in some capacity.

They are smart businessmen and they understand they can probably make more money by doing this.

Than getting an advance of a record label.

May be closer to $500,000. it's hard to say the specifics.

What's next?

Beyonce released an album on itunes exclusively for one week and jay z had some pay $5 million for rights to his album.

Where does this go?

What's the next level of publicity, justin?

Artists and labels are having to differentiate themselves in a crowded music space am a crowded landscape.

You will continue to see stunts and brands that get involved.

Record labels will continue to look for new and innovative ways to sell their products.

It's a digital product they are selling so they have to look for innovative ways to add value beyond the.

How is just go going?

We are raising capital.

Is it easy to raise capital in this environment?

We are going west.

We are going to los angeles.

Why aren't you raising capital here?

Why do you need to get their?

-- go there?

Entertainment industry is in los angeles and there's a lot of people in california who have done similar deals.

Last, time i was on the show i spoke of it.

European investors don't have the same type of risk tolerance or knowledge in the demand we are in.

What will you do with the money that you raise?

Hopefully hire employees, improve the product, scalable platform.

That's what we're focused on.

Tell us when you have raised

This text has been automatically generated. It may not be 100% accurate.

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