> -----Original Message-----
> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
> Sent: 15 January 2004 12:22
> 
> Hey - any heads on the list know if it really does cost alot?
> Being a dullard, I can't see where extra costs would come 
> from if you're already running the site.

It would definitely cost a fair bit. The first step would be jumping through 
all the legal hoops to make sure you're clear to sell the tracks in that format 
on the site (I know there are a few things Warp can't stock on there due to 
contractual/licensing problems that they're still trying to iron out). The 
second step is to digitise the music itself, which is a lengthy and 
time-consuming process (not the most expensive one though).

Eventually you've got all the tracks on a huge hard drive, and having paid the 
person who's done that and the lawyers etc who've cleared everything, you've 
probably spent more cash already than you'd have spent on pressing up 5,000 
CDs. But the most expensive bits have yet to be done...

You need to buy an enterprise-level server, a really hardcore machine which 
will be able to cope with hundreds of thousands of hits per day and several 
hundred concurrent mp3 uploads, besides all the streaming that happens when 
people preview tracks. A machine that's up the job might cost you over ten 
grand.

Then you need to pay an ISP for the bandwidth you mean to consume - because you 
want a lot of people to be buying mp3s off of you, that's a lot of previewing 
and a lot of downloading. Maybe several hundred Gb a month, which would cost at 
least several thousand pounds per year, every year.

Finally you need to actually set up the site itself, buying any software you 
need (database and e-commerce packages can be bloody expensive), paying for the 
design and build of the website (that Warp site, I'd guess, would cost at least 
twenty or thirty grand at most web agencies I've worked with; Warp probably get 
a discount but it's still not cheap). Eventually the site goes live! You 
probably need to employ one person full time to look after it as well, though, 
so that's more cost on top of everything else. Oh, and you might need to spend 
some cash marketing/promoting the site so people know it's there.

So all in all it does cost a lot of money to set up, if you're Warp and you 
expect your service to be quite heavily used. A smaller label would expect to 
spend less money setting it up - they wouldn't need as much bandwidth, or so 
big a server, etc - but OTOH they'd expect to get less customers, being a less 
well-known label, so it all evens out.

If Warp make a success of it, though, then smaller labels will be able to deal 
with Warp themselves, having their tracks sold via Warp's infrastructure 
without paying for it all themselves - that'll be the point, I reckon, at which 
this whole selling-mp3s deal will come into its own...

Brendan

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