

Popcuts (YC S08) wins SXSW Accelerator - thetable
http://blog.popcuts.com/2009/03/17/popcuts-wins-sxsw-accelerator/

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unalone
What are the benefits of winning the Accelerator? Or is it just a publicity
event?

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emmett
From <http://www.silverspider.com/2008/sxsw-accelerator/>:

Winners of each category “can receive two badges for the 2010 SXSW Interactive
event, a write-up in the April issue of SXSWorld magazine, plus additional
prizes yet to be announced.”

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jl
I love these photos!

[http://www.austin360.com/calendar/mediahub/media/slideshow/i...](http://www.austin360.com/calendar/mediahub/media/slideshow/index.jsp?tId=149661)

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suhail
Interesting, I wonder how popcuts will do as AmieStreet, which does about the
same thing, appear to be struggling a bit.

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calambrac
AmieStreet doesn't reward you for discovering music early as much as it
penalizes you for discovering it late. Even if in the long run you would end
up saving about the same or more, it's a mental hurdle that's hard to get
past.

Adding to this a bit, the brilliance of Popcuts is that I, musical tastemaker,
now have a monetary incentive to wade through the all the new crap that gets
pumped out at a prodigious rate these days, find the gems, promote them to my
friends, and not throw them up on limewire or bittorrent. Popcuts is so
frickin brilliant, honestly. I could maybe actually earn a living from this
(okay, probably not, but I'm 14, maybe I can convince myself that I could), as
opposed to just saving a few bucks. That's the difference between the two.

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ghshephard
The idea on AmieStreet is to constantly scan for new songs, and "REC"
(Recommend it) - if you catch a song early enough in it's rise up to $0.99 you
basically get $.98 per REC that you make (presuming you are able to anticipate
the taste or memetic attention of the masses).

The obvious attraction on AmieStreet is the sliding scale for music: An
investment of $18.75 gets you $25 worth of purchases and 26 RECs.

If you are half decent at picking music, you usually make between $0.25 -
$0.50 with a bit of effort on those RECs - call it conservatively $0.25 * 26 =
$6.50 + the $25 = $31.50. Your average song, if you are an active user and can
catch things early averages around $0.35 for the really good stuff (ignoring
the large amounts of free to $0.10 cruft that you probably don't want in your
playlist anyways) - so $31.50/$.35 = 90 Songs for $18.75 - with the sense of
satisfaction that a significant portion of your money is going back to the
artist who made the music. (Do kids still care about that these days - I am so
out of touch. :-) )

I just picked up "Live, by Luna" - a stellar album for $3.22 - in a solid 256
KB VBR MP3 format. Not to mention I can both A) Play the music from the web
when I wish to B) Redownload if I wish.

I guess the big difference between popcuts and AmieStreet is that you are
limited to $0.98 * your RECs on AmieStreet, wheras it appears that PopCuts has
a higher payout, but a larger payin per song - they are all $0.99 compared to
the "starts at free and frequently pretty cheap" on AmieStreet.

It will be interesting to see how the balance of cheap versus possible greater
profit works out for the two sites.

Anyways, Congrats to PopCuts for their Best Online Music Startup in
Accelerator Competition at SXSW Interactive award!!

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calambrac
"basically get $.98 per REC that you make"

Okay, so this comment made me actually go and dig into the site. I think this
is a perfect lesson in marketing. The front page of AmieStreet says
_absolutely nothing_ about the rewards program, it only mentions the variable
pricing. Even when you click into "How it works", you have to click on
"Rewards" specifically (and you can't click the big picture marked "Rewards",
you have to click the small text in the sidebar), and then the description of
how it works is confusing (do I have to buy a song to Rec it?).

Compare that to popcuts: on the front page, in big red letters "Buy a song.
Get paid everytime it sells again."

Anyways, even now knowing how it works, I still think AmieStreet gets it
wrong. The whole point of the market-based approach should be to incentivize
buying in the long-term. AmieStreet only incentivizes it early, and it encodes
directly in the price information about whether or not I should buy. If the
price is already higher, why would I buy? I know that I'm not going to make
any additional money off the song, and I feel bad because I didn't _discover_
this music (I'm a follower, late to the party, the greatest sin of being a
music tastemaker).

