It seems to me that one of the reasons CDBaby was/is so successful is because its primary customers are
musicians, rather than consumers of music.
Strictly speaking CDBaby sells to both categories (it sells a service to musicians, and CDs to customers).
But to me, as a professional musician, it seems that people buy less music in product form now. Therefore the real customers for music-based products are...the musicians themselves.
There are more musicians than ever before. All are competing against one another.
As a result, they are willing to spend their disposable income on promotions, marketing.
Providing a service like CDBaby's was a brilliant way of tapping into that emerging market.
What made it disruptive was: the price-point, the musician-friendly ethos, the dependability and speed of the customer service.
As a musician/entrepreneur, it seems to me that very few startups realize that they may be more successful asking musicians to pay for something than finding 'customers' for their 'products' in the old fashioned (read: recording industry) mold.
Of course spinning the story to sound musician friendly is delicate...and essential.
Do you see other opportunities for charging the growing contingent of musicians for a service that is worthwhile?