I am surprised that none of you brought up Marie Digby or Katy Perry. But then again, their careers mirrored that of Souljah Boy: free promotion did little to help their sales until the traditional studio machine kicked in.
I am surprised that none of you brought up Marie Digby or Katy Perry. But then again, their careers mirrored that of Souljah Boy: free promotion did little to help their sales until the traditional studio machine kicked in.
The Arctic Monkeys may not have made money from their free promotion, but the free promotion got them the contracts that finally got them money.
It may be true that once established, free promotion will only do so much for sales. So then what?
Stop whaling and start catching tuna. Instead of signing artists that established their own fan bases, sign more, newer artists and don't spend so much money overengineering all the audio into flat loudness. Then, offer access to the catalog on a sliding scale - the more new, unestablished artist impressions, the cheaper the licensing fee for the time period. So you get paid a reasonable fee for a site that enables 24/7 Michael Jackson, or you drum up cheap awareness of new artists as sites like Pandora seek to institute thesixtyone-like rewards and incentives for listening to new music.
Studios chase whales because in a hit-driven industry, one successful whale will pay for his own marketing, and all costs associated with several tons of tuna (good or bad).
Think of it like the App Store: a few successes drive the system.