Free downloading sites can still raise funding (venture capital)

We7 Reports 1 Millionth Free Download, Raises Funding...

This article focused on We7, the free downloading web service. It is run by well known artist Peter Gabriel. What a music artist owns and runs a free downloading service? Yes you read that right! Gabriel is a firm believer in keeping music free for the general public. He has noticed there are ways to have his/other artist’s music for free while maintaining an income for the original artists (or whoever owns the rights). The songs on We7 our ad supported downloads and the way income is raised for this artists is through revenue sharing.   In this article it pointed out a milestone that We7 reached its 1 millionth download. In response to their milestone, Gabriel and other members of We7 decided to give out a free iPod touch to the person who downloaded that song. As If that wasn’t enough, Gabriel included a signed CD for this downloader. This is something I thought was pretty cool as today most artists care about themselves and their profits first before their fans. However, if you keep your fans happy, not necessarily like this but in similar cases, then they will want to come back for more.

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Law
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Should music be downloaded for free?
Yes
Business Models
Free downloading sites can still raise funding (venture capital)
Allows artists who are not well known to gain popularity.
Allows music to be heard by everyone inspires ppl to buy more music.
Artists can release downloads with ads for concerts and events.
Downloading has never prevented me from buying something I want.
Lose-Lose
Selling CDs and MP3s is a dead model.
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