Scott Murphy is the CEO of D:Net Media, who debuted a new method of music distribution in December 2008. His idea to combine the aesthethetic values of the physical music release with digital technology saw five albums released at the time of launch, featuring a USB stick that included extras such as promotional videos, song remixes, interviews, press releases, biographies, photos and lyrics. Seven months since the product launch and two months out from his presentation at the inaugural One Movement For Music Perth conference in October, Andrew McMillen discussed Scott’s future plans for the DDA format.

Andrew: How did the idea behind the DDA format come about?

Scott [pictured below right]: Working in the recorded music business and with the digital age upon us, I wanted a richer, more ‘album’-like user experience to the digital download world. That’s the thought that started the process.

How long did it take to turn dream into reality? What were the toughest barriers to navigate?

The original idea was back in 2002 so it’s taken a while – however, it wasn’t worked on full time for most of that time. Toughest barriers were and are financing the development and marketing, as well as communication between myself and the software programmers to ensure I get from them what I’m after.

The initial five DDA releases back in December 2008 (Geoffrey Gurrumul Yunupingu, Sneaky Sound System, Grafton Primary, Skipping Girl Vinegar and Home Grown Roots 3) were regarded as test marketing to measure pick-up rates and interest. What can you tell me about the response to the new format over the last 7 months?

We’re still technically in a test marketing phase – from September 2009 onwards, we start releasing many more titles, under a new phase. The period to date has been to iron out bugs and functionality issues that aren’t necessarily bugs, but just weren’t delivering the results we wanted.

We have also used the feedback from the record companies/artists we’ve dealt with, plus retailers and consumers in order to work out a short list of functionality additions and/or upgrades. Two of such are in the works right now, being readied for our September rollout of new titles.

Are D:Net looking to work directly with artists who want to release their music in this format?

Absolutely. In fact, one of the two functionality additions I refer to above is a ‘White Label’ version – basically, a simple DIY way to create and release a DDA. Therefore any artist can DIY a DDA and we’ve chosen the cost for doing so to be very affordable.

Artists can still create their own DDA and not use the White Label version – the cost difference is paying a trained HTML or Flash designer/programmer to build your DDA.

Have the current DDA artists been selling the item at the merch desk of their shoes, or is it just a retail-only deal? What’s the pick-up rate been like for live shows?

Interestingly, Gurrumul and Skipping Girl Vinegar have had the best sales results at gigs. At one Gurrumul concert they said the sales ratio for DDAs to CDs was 1:5, which is pretty high for a new format.

Retail has been tough. We’ve had good support from the indie store, such as all of the Leading Edge chain stores, but there’s been concerns about product theft.

A major part of the next phase of DDA is that the USB is optional. The system was always invented as a direct download system – so rather than just buying a few faceless MP3 files online, the listener can buy a bundle that comes with all the extras including an ongoing experience.

We chose to go ‘physical’ in the test marketing phase here purely for marketing reasons. However, from September onwards, artists can choose to release a DDA on a USB or as a direct download – or both. Without USBs it considerably changes the cost for artists.

In the case of artists looking to release their own DDAs, are there any potential barriers to release to navigate here? Say an artist approaches you with a desire to release a DDA - which elements of their music are they required to own? (eg. copyright, publishing rights, master copies)

Our business model doesn’t interfere with the current music industry model. We don’t license anyone’s content – we license the artists our technology and ongoing system development. So for an artist, it’s the same as releasing a CD or selling MP3s through iTunes or other digital retailers.

A barrier for artists has been the high cost of USBs – when they can be as much as 8 times the cost of a CD it makes it tough for artists – however, artists will have an option to release without the USB bundle from September onwards.

Learn more about the DDA format at dda4me.com. Scott Murphy is a guest speaker at October’s One Movement For Music Perth conference.