Not so many years ago, consumers had little choice when it came to buying new music. If you fell in love with a favorite song from an artist or band, you bought the CD. Singles had already been phased out for the most part, so the choice was either to buy the CD or nothing at all. For this reason, artists were able to make oodles of cash even when they were only a one or two-hit wonder. Yet somehow, the music industry is convinced that people actually bought CDs for all the nifty content contained in the included booklets. With the iTunes LP, they're reinventing that booklet for the digital age and packing it full of media like lyrics, liner notes, album art, photos, and even videos - that last one being something that you certainly couldn't cram into the CD case in days past. With this digitally enhanced LP, labels hope consumers will once again buy complete albums, not just individual songs.

Unfortunately, this "interactive" album of the future, meant to rev up album sales, is a sad, uninspired effort which tries to cram the old business model of the past down the throat of today's new digital platform. While the extras are nice to have, the iTunes LP doesn't offer anything more than what fan sites do, as we noted yesterday in our critical analysis of Apple's new offerings. And unlike fan sites, which evolve and change over time, the LP is a static offering that doesn't take advantage of the platform it lives on - an internet-connected digital music player.

Forget the Album, Buy an App

Meanwhile, as record labels scramble to save themselves with this new format (and possibly even one of their own dubbed "CMX"), some artists are starting to figure out the formula for success in this new era of single-track purchases and app-laden phones...and it's not an album. A handful of forward-thinkers have come up with a way to offer true interactive content to fans, which in turn, encourages fans to purchase more of the artist's music. The answer? The iPhone app.

Instead of trying to reinvent the wheel, these music-themed apps are innovative new ways for fans to interact with content produced by their favorite artists. For example, Nine Inch Nails released a multimedia application earlier this year where fans can access a mobile version of the fan site nin.com, interact with other fans through location-based chat and photo sharing, stream tracks and exclusive playlists, download wallpapers, and much more. Although the app is free in the iTunes app store, the side effect of having more engaged fans means having more people interested in buying the band's music. NIN, headed by front man Trent Reznor, is no stranger to this sort of out-of-the-box thinking. He has experimented with a number of ways to make rockstar-worthy income in this digital age, including last year's introduction of a creative multi-level pricing scheme for albums where consumers could download tracks that ranged anywhere from completely free all the way up to a $300 premium package. Within three days, that experiment grossed $750,000 in sales. Not a bad way to sell an album.

But Reznor isn't the only artist with an app these days. American DJ and singer-songwriter Moby has also just released an official app created by social music service iLike which offers similar functionality. Besides providing access to exclusive content, fans can interact with each other through Facebook and iLike and they can post photos directly from the app to the Moby fan community. However, unlike NIN's offering, this app isn't free. It currently sells for $1.99. Whether or not this particular money-making gambit will work, though, is still to be determined. The app is only a couple of days old at this point so it's unknown whether fans will pay.

While apps like those described above essentially provide mobilized fan communities, hip hop artist Soulja Boy went a different route earlier this summer. Using a new app platform called Romplr, his $2.99 application, "Soulja Boy Tell 'Em," lets fans remix the artist's tracks and share them with friends via email, Facebook, or via www.romplr.com. In many ways, this app represents the best use of today's digital platform by allowing for true interactivity with the music. In fact, the press release about the launch even claimed "the next wave of fan and band interaction is going to be through the iPhone." Perhaps it will be the future of music sales, too.

The trend of artists with apps shows no signs of slowing down. Just today, popular R&B artist Usher launched his own app, too, "Usher's Top 100." This app, basically a streaming radio station of Usher's favorite tunes, will appeal to fans who want to know what music has inspired the five-time Grammy award winning star. It, like Soulja Boy's app, is not free either. The price is $2.99. Again, it's too soon to tell how well it will sell.

Only the Beginning

Although this is only a handful of examples of the new ways artists are using the mobile platform to interact with fans, all of these methods are arguably more inspired than the iTunes LP digital album. Instead of thinking that the old way of doing things can simply be tweaked for the new economy, these artists are developing compelling interactions which will either be direct sources of income as paid applications or will indirectly encourage sales through a more engaged fan base. While it's too soon to tell how much extra income these apps will add to the bottom line, if we had to bet on anything that could potentially "save" the music industry, we wouldn't put our money on the LP. It looks like the future is apps, not albums.

Justin Ouellette, Muxtape's CEO and Founder just announced a preview version of the new Muxtape, which he has seeded with songs from twelve bands, including indie favorites like of Montral.

Artist Pages

The most important addition to the new Muxtape are the artist pages, which are currently dominated by profile pictures of the artists. Otherwise, the new Muxtape works exactly like the old Muxtape - just without the ability to create your own mixtapes.

Big Plans

In the future, Ouellette and his team plan to allow bands to sell downloads of their songs, issue tickets for concerts, and sell merchandise. For now, however, we are glad to see that Muxtape is still alive and well, though we are still sad to report that the old Muxtape won't return anytime soon.

Creating Codes

Using iCandy is easy. You simply drag and drop a web site link or iTunes track into the iCandy interface to create the QR code. You can also add in photos from either your computer or an online service like Flickr or Snapfish. The iCandy application then creates the barcode which you can then print out or use elsewhere on the web...like in a Zazzle.com store for example, where you could sell your barcode-emblazoned merchandise. The iCandy application supports any URL from the web, but will specifically support media from iTunes, YouTube, flickr, Facebook, MySpace, Scribd, Slideshare, last.fm, Pandora, and imeem.

Scanning Codes

For end users interacting with the barcode, the process is simple, too. All you need is a webcam or a barcode reading application for your smartphone. The company suggests that iCandy could be used to create a digitally enhanced album collection which you could use to play tracks from your iTunes music library. This is demonstrated, quite adorably we might add, by one of the iCandy engineer's 4 1/2 year-old-daughter, who launches music (and dances around) in this YouTube video.

Although this idea of interacting with your music collection appears to be the primary focus of the iCandy application, we think its other uses are just as appealing, if not more so. With the QR codes created by the application, bands and other artists wishing to promote their music could create merchandise - flyers, t-shirts, cards, etc. - which link directly to their homepage on the web or the music itself.

Imagine how this could work: after a long night out at the local bars and clubs, you could simply scan a card or other giveaway item the band had handed out after their last set. That's much easier than entering in a URL or even having to locate the album listing manually. Thanks to iCandy's innovative technology, a code scanned for music you don't already own, would also give you a prompt to purchase it from iTunes, Amazon, or Rhapsody.

iPhone Application in the Works

Even better than having to use your computer would be using your iPhone as the barcode scanner instead. Since the QR codes are just normal barcodes, you can scan them today using any third-party QR code scanning application on your iPhone, or any other smartphone for that matter. However, the company is working on an iPhone application that would auto-play the track if you already owned it and it was in your iPhone's music collection. If it wasn't, you could be shown the track in iTunes so that you preview it or purchase it, if desired.

The auto-play feature is where the company is having problems at the moment because of how Apple has the phone locked down. A company representative told us that they will probably have to meet with Apple in order to get this sorted out properly and play by all the rules.

In the meantime, QR codes that link to other web sites - or even YouTube videos - will work with the iPhone. Other camera-equipped smartphones can also be used to scan the barcodes and direct the users to the appropriate web sites.

Try it Out!

The iCandy application is still in beta, but you can register to try it out now. To get right in, use the code "RWW" when you sign up here. Company feedback can be sent to the company via the feedback form on their homepage (http://icandy.ricohinnovations.com) or via email (feedback@icandy.ricohinnovations.com).

A new study released this week in the UK found that 80% of respondents said they were "happy to have [15 second pre-roll] video ads if it meant they could watch free video" on their phones. Almost nothing's shocking in the wacky world of mobile advertising-to be, but one thing we found absolutely horrifying in the discussion around the study was this: incoming-call ads.

A company called Gigafone appears to be pioneering the practice of showing users advertising when calls or SMS come in to a phone. The system is fully opt-in, users provide personal data about themselves and then the ads are targeted to them based on demographics and interests.

RSS readers can click here to see a poll about incoming-call mobile ads.

The benefits to consumers include more targeted ads, discounts and in some cases phone rate subsidies. It's a little reminiscent of the successful efforts by Blyk, a European company that shows ads in exchange for free minutes and text messages.

Consumer Reactions

Gigafone reports that a huge percentage of customers in test markets are satisfied with the system. People we asked, though, seemed to think that they should receive heavy subsidies for undergoing such an experience. No doubt mobile companies are unlikely to offer the amount of subsidies that customers would like - but we can imagine how this would go down. The practice of offering discounts on nearly everything at the grocery store in exchange for personal information and permission to track our shopping activities would provide an excellent model for this kind of mobile advertising.

Are grocery shoppers who participate in such schemes really getting discounts, or are the rare few who do not just paying a tax? We can imagine a de facto tax being levied against mobile consumers unwilling to have ads shown when their phones ring.

Even though it's opt-in, there are lots of consumer controls and it could help pay for phone service, we (this author at least) do not want commercials associated with the Pavlovian response of paying particular attention to our phones when they ring. There's just something disturbing about the idea.

A 15 second pre-roll ad before watching free video? That sounds annoying enough. A personalized ad when I pull my phone out of my pocket to answer it? No thanks.