Artist and Album Distribution Channels

I have been researching into the current possible distribution channels for an artist. This is because we have to consider how and to which outlets our artist's music will be distributed once it has been made. For example, we have to ask ourselves whether it is worth releasing the album so it is available to buy in-store in an increasing technological age or whether the revenue gained will outweigh the high costs involved in the distribution of the product.

One option is that we could offer the song on iTunes or other digital services for download at a certain price per track.  This is something that global retail giants HMV are considering, the relaunching their digital service in order to directly challenge iTunes by "offering every Top 40 track for just 40p and selected chart albums from £4.99." The website will work alongside "Spotify and other digital offerings".

We can consider each of these outlets for the distribution of our products:

•  iTunes 

• This diagram shows the rapid incline in iTunes Store Downloads over the seven year period since its inception. In 2007, the number of downloads grew dramatically because of the launch of the iPhone - showing that synergy between technological products increases sales. Ease of access has been the key unique selling point of the iTunes Store as people's lifestyles are busier than ever. 
• There has been a "36.3% increase in sales year-on-year to 10 million units."
• Spotify 
• This is a free service (paid for through advertising) offering "unlimited streaming from a range of major and independent record labels" for example Sony and EMI. Although we cannot distribute our tracks directly to Spotify, if our song was able to be viewed on Spotify this would mean another digital service promoting (or showing) songs by our artist to the public. This could widen our potential target audience (and increase revenue stream) as there will be people on this site who would not normally be subjected to this music. They could decide whether they like the artist and song and then choose whether they want to buy the song/album.
• In Store 
• Looking at the latest "BPI (British Phonographic Industry) figures for 2010" its shows a continuing decrease in album sales  "it’s a modest 2.5% fall-off". It may saturate sales if the album was released in store in this current climate.