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Textango - Music purchases by Cellphone - a new label-less distribution model

In a Nutshell: Textango offers music purchases and free promotions by text message. Send a code (like “bbq”) to a number (23333), and you’ll get a redemption code to enter on the site which will download music to your PC.

IMHO: There’s something here in providing a unique promotion and avoiding credit cards (for consumers) and labels (for bands), but communicating its proposition is a muddled affair due to the multistep nature of the Textango process.

Textango has identified a real need: that of record labels and indie bands to promote their music in new and attention grabbing ways, and do so in a relevant context - i.e.: at a concert venue, on campus, at a skate shop. They’ve also twigged to the credit card-less nature of the key target demographic (teens), by using cellphone text messages as a payment vehicle.

FACT: Only 13% of teenagers ranging in age from 12 to 18 have credit cards.

FACT: Over 76% of teenagers ranging in age from 12 to 18 have cell phones. Considering that the 12 to 18 age demographic makes up literally half of the music industry’s target audience, that gives you an idea of what Textango’s Affiliate programs earning potential is.

[from Textango Affiliate Program]

To that end the Textango system lets artists sign up to offer fans downloads of either tracks of albums, either free or paid through your cellular provider (via a premium SMS charge). Presumably, then an artist can poster up messages along the line of “Text MatchFinger34 to 23333 to download our single for free!” They can poster up their gig venues, blog, local record store, or wherever, and drive downloads or sales, as they see fit.

One other disruptive element: Textango lets bands bypass labels for sales and distribution. I don’t know enough about the music industry to guess at the impact it might have, but in such a crisis-prone industry, its an interesting entrant.

Caveat: I haven’t tried the service, as I’m in Canada, where it doesn’t yet reach (recv’d an error message from ai-na.com). Textango apparently works with all major US carriers other than T-Mobile.

It sounds like a great service; however, it comes with a complicated use case. Consider the steps required to purchase an album:

1. User send the initial text as described above.
2. Textango replies with payment authorization text.
3. User replies “Y” to authorize payment.
4. Textango replies with download code.
5. User, later at home, retrieves download code from phone.
6. User heads to Textango site and enters code.
7. User downloads requested music.

[See this page, for example]

Its a complicated way to complete a simple transaction, particularly for free promotional downloads. One wonders how actual conversion rates would compare (measured by download volume) between a Textango promotion and a band simply directing audiences to their website. Or how album sales would compare between selling CD’s for cash at a venue and a Textango promotion.

That being said, for paid downloads, Textango presents a way for credit-less teens to make purchases, and text message inboxes can provide a convenient means of storing download credentials for later use.

Additionally, it provides a unique vector that adds buzz to a band - a fact that hasn’t been lost on a number of bands, indie labels, and sites, found via Technorati, that are taking advantage of the service: Raining and OK, IndieHeaven (label), Negative Progression Records, Bleed the Dream, AbsolutePunk.net, John Frusciante, Bayside, Ignition, 3MS, Glassjaw Boxer, Corporate Punishment Records, Drag Citizen, The GoStation
, etc. Many more on the Textango website too.

Incidentally, that’s too many horrendously formatted MySpace blogs to look at in a lifetime, much less an afternoon.

Business Plan & Management Team

Pat Phelan has a good round up of the Textango revenue model and management team. The key points are diversified sources of revenue (commission on sales, eBay-style promotional options, keyword registration), and a team that includes some seasoned entrepreneurs.

Depends on the Bands

So - all of that being said, I find Textango to be an awkward, if interesting way to get at music… but I’m way out of the target demographic. Cellphone using, indie-band consuming teens may very well glom to the concept, as the right bands can add credibility to a distribution system very quickly. To that end, Textango’s success largely depends on their ability to get bands signed on and promoting their service.

More thoughts at KOAR and Collaborative Web Services.

itunes, mobile, mp3, music textango

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