There aren’t many business models that would ever propose you let the consumer name their price as low or as high as they want for a product or service, yet that’s exactly what the artist Pretty Lights (Dereck Vincent Smith) has done with his label Pretty Lights Music.
In an ever-changing digital music market, the artists and music producers of today face overwhelming odds when it comes to distributing their music in a way that differentiates them and appeals to consumers, especially in a world of torrenting and mp3 conversion.
Dereck Smith and some of his fellow producers such as Griz and Gramatik of Grizmatik think they’ve found a solution through selective pricing, giving far more power to the consumers in the way they can freely access music.
When it comes to the consumption of music, the early 2000s marked a strange time in the Industry with the emergence and rise of illegal downloads through torrenting. Since then, it’s safe to say illegal downloads have become a regular means of obtaining music with millennials and younger generations in general. As early as 2006, Pretty Lights sought to adapt to this drastic change in consumption by adapting the way his music was priced along with two of his friends and fellow producers Griz & Gramatik.
“There is no escaping that reality” according to Gramatik. From artist Gramatik’s standpoint and the standpoint of many, the issue comes down to the idea that in music consumption there are two types of people; Those who will pay for the music they love no matter what to support those artists, and then there is now individuals who avoid paying for music as much as possible.
The shift in consumption has been partially because of the technology available for obtaining music, and much of the change is simply due a strong disinterest from millennials to pay for all of the music they have such easy access to. With the rise of digital distribution and streaming services, the amount of music millennials find themselves having access to compared to older generations is staggering.
Though there have been those who have shown a fair amount of success through choosing to distribute their music through a selective pricing options , there remain many skeptical of the direction of selective pricing. Some believe selective pricing doesn’t offer a large enough portfolio for artists, putting them at a disadvantage against other artists by not providing a large enough portfolio of music at a consistent and predictable price. But observing the success of artists like Pretty Lights, it seems hard to deny that selective pricing may become the primary distribution channel for artists to reach consumers.