Monetize music via online communites

Interesting comment from Mark Clark, UK MD of Music company GD Worldwide in today's New Media Age (www.nma.co.uk) which examplifies the underling music and merchandise purchasing power behind online communities and built-in shop widgets into exisiting communities:

"Through a well-managed online community, artists have the opportunity not only to communicate one-on-one with their fan base, but also to gain valuable insights and understanding from their fans about what they value and what they want to get out of the relationship.

Simply by understanding that not all fans are created equal, the artist can begin to unlock the value that lies within. For example, why shouldn't an artist sell demo tapes, video clips, memorabilia, recordings of exclusive gigs or solo projects directly to their fans via these new low-cost digital distribution platforms?

Out of Lily Allen's 78,000 friends the majority are happy just to brag that they have Lily as a friend. But there will be a significant proportion who will pay to see her on her current UK tour and have probably already bought her debut album. Within that group there will be a number of fans who also want to hear her demo tapes, to see set lists, to read overnight gig reviews and hear recordings of the gigs themselves. However, while some of these can be given away as they build the relationship between artist and fan, others will be highly valued and can be offered at a premium price. Understanding the micro-economy, value and assets around an artist is to realise the true potential value."