Music fans hungry for Jimi Hendrix concert footage or MP3s of an obscure Grateful Dead concert head to Wolfgang’s Vault for streaming audio, video and even vintage merchandise like T-shirts. And aside from a 2006 lawsuit filed by labels and artists like *Sony* BMG and Santana (which it settled last year), the site has been going strong since its launch five years ago. (COO and President Eric Johnson said users spent an average of 35 to 50 minutes on the site per visit).
So how is the Vault thriving while many other music startups are shutting down? Johnson said it was simple: “We own the master recordings to these concerts, so we can stream and broadcast as we please.” That’s a sharp contrast from sites like iMeem and Project Playlist that need to pay hefty track licensing fees. Johnson also said the site’s library was growing larger, announcing a new acquisition: “We recently bought the sound archives from the Newport Jazz and Newport Folk Festival.”
Photo Credit: Wolfgang’s Vault
Yes – the key is your note about the hurdle to survival, "….pay hefty track licensing fees." Setting these websites, the future of music discovery and search, up for failure is ridiculous. The labels have got to allow these websites traction so they can surpass survival mode to thrive mode; then you can negotiate license fees commensurate with increased revenue levels.
For labels to survive, they have to adjust business models to reality.
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