newmusicbiz

MySpace Targeted Advertising Spells Opportunity for Bands

2007-11-08T05:01:00.000-08:00

MySpace Targeted Advertising Spells Opportunity for Bands
MySpace is now planning a targeted advertising initiative that spells opportunity for bands and music companies. The initiative, called SelfServe, allows smaller advertisers to create and target their ads across the network. Bands are an obvious fit for the platform, though MySpace is also pitching the concept to politicians, small businesses, and other groups. "Targeting is for everyone — from the smallest band to the biggest brand — now MySpace provides a solution for anyone looking to advertise on the most trafficked site in the country," said Michael Barrett, chief revenue officer for Fox Interactive Media.

The new concept, slated for release early next year, was recently disclosed at the ad:tech conference in New York.

Story by news analyst Alexandra Osorio.

Source: http://www.digitalmusicnews.com/stories/110607myspace/view

The piracy debate

2007-11-06T03:19:00.000-08:00

The Piracy Debate

The debate over piracy is one that has no end. One one side you have Capgemeni's recent "value gap" study pegged piracy's impact on the U.K. music industry at 18% of its decline from its 2004 level. The majority of the decline, Capgemini estimated, was due to the unbundling of the album, or the substitution of a small number of digital tracks for an album.

But wait. A new Canadian study by academians Birgitte Andersen and Marion Frenz found that online piracy has no impact on CD purchases. (Download a PDF of the report here.) However, in the subset of Canadians who do use P2P services, file-sharing was found to increase CD purchasing (by 0.44 CDs per album download). The study assumes 29% of Canadians are P2P downloaders.

"In the aggregate, we are unable to discover any direct relationship between P2P filesharing and CD purchases in Canada. The analysis of the entire Canadian population does not uncover either a positive or negative relationship between the number of files downloaded from P2P networks and CDs purchased. That is, we find no direct evidence to suggest that the net effect of P2P file-sharing on CD purchasing is either positive or negative for Canada as a whole. ...
However, our analysis of the Canadian P2P file-sharing subpopulation suggests that there is a strong positive relationship between P2P file-sharing and CD purchasing. That is, among Canadians actually engaged in it, P2P file-sharing increases CD purchasing. We estimate that the effect of one additional P2P download per month is to increase music purchasing by 0.44 CDs per year."

Professor Stanley Liebowitz, who has studied the relationship between file-sharing and CD sales, commented on the Canadian study at his website (he refers to the authors as A/F):

"With these seemingly innocuous assumptions, the results of A/F imply that obtaining music illicitly should have increased record sales by 50% (since each illicit album increases sales by half a unit and there are as many illicit albums as legitimate sales). Contrary to the large increase in album sales predicted by A/F, album sales in Canada have fallen considerably since 1999. According to IFPI statistics unit sales were down 30% by 2005 whereas CRIA statistics indicate that unit sales were down by 20%. ...
To believe the results of A/F you must accept that sales have dropped by half in 6 years, due to some factor that no one can identify. Does this seem even remotely plausible? This would be such a steep decline in such a short period of time that it would seem impossible to not have a clearly identified cause. And A/F’s results rule out the possibility of other entertainment activities siphoning off record listeners."

So is online piracy a problem or isn't it? Judging from FCC Commissioner Deborah Tate's speech last week at Vanderbilt University, Washington D.C.'s perception is still that online piracy is a major problem. Commissioner Tate talked almost entirely about piracy -- online and physical -- and laid out numerous examples of piracy's negative impact on the entertainment industry and the economy as a whole. (Of course, Commissioner Tate knows what topic to focus on when in Music City.) Even though most of the figures could be questionable (e.g., sourced from trade groups like the RIAA and the IFPI), it was obvious that Commissioner Tate is dedicated to helping content owners fight online piracy.

Bonus reading: An April 2004 article at the New York Times about the well known Harvard/UNC study that found no link between file-sharing and CD sales.

Posted by glenn on November 5, 2007

Source: http://www.coolfer.com/blog/archives/2007/11/the_piracy_dile.php

Laura Marling to release album in 'song box' format

2007-11-05T08:20:00.000-08:00

Laura Marling to release album in 'song box' format

Package will contain CD, gig ticket and 'momentos'
4 hours ago
Rising star Laura Marling has announced that her as-yet-untitled debut album, released on February 4, 2008, will be released in a special 'song box' format.

The package will contain the CD album, entry to a gig in the form of a redeemable code, plus 'momentos' relating to each song on the album.

The package will sell for £19.99 and can be pre-ordered from Marling's official website.

The move is similar to that of Radiohead, who have made a deluxe version of their new album 'In Rainbows' available for £40, which features extra songs, artwork and vinyl and CD versions of the album.

Source:http://www.nme.com/news/laura-marling/32288

Music Industry looks to new Models to boost Sales

2007-10-23T03:24:00.000-07:00

By Yinka Adegoke

NEW YORK (Reuters) - The U.S. music industry is becoming more open-minded about working with online music stores from the tiniest start-up to Amazon.com, hoping to boost digital music sales and erode the dominance of Apple Inc's iTunes.

U.S. music companies, once paranoid about the wide-scale piracy enabled by Web-based companies like Napster and KaZaa, are now embracing new business models such as giving away free song downloads.

Their goal is: to increase digital revenue as CD sales drop more sharply than anticipated; and to create alternatives to iTunes to boost their negotiating power against Apple when licensing contracts are renewed.

"Any viable music discovery option is one we want to see out there," said a major music company executive who asked not to be identified.

"If done the right way, this leads to new revenues as some of them have pretty good built-in mechanisms to lead to direct purchases," he said, reflecting the view of other industry executives contacted by Reuters.

Many Web start-ups have proposed business models to take on iTunes, which has a 70 percent market share of digital music sales. Many have also failed as they get caught up in negotiations with the music companies.

One of the most difficult parts of getting a digital service started is obtaining the licenses to the music itself. In most cases, top music labels will not provide licenses unless the start-ups pay a hefty advance fee.

Amazon is expected to launch its iTunes rival this week, after signing deals with Universal Music Group and EMI.

Two smaller start-ups, Qtrax and Spiralfrog, are promising to offer music downloads for free to consumers supported by advertising sales that will be shared with music companies.

Whether these ad-supported models succeed remains to be seen, but Qtrax Chief Executive Allan Klepfisz said it will be an important way to compete with the free music still illegally available at peer-to-peer networks like Limewire.

"The idea is to make a better version of free," he said in an interview.

Klepfisz said Qtrax is due to launch in December after four years of building the business, during which it has managed to sign all the majors record companies except the biggest Universal Music, owned by French media giant Vivendi.

Spiralfrog said on Monday it launched its service, 13 months after the company signed rights to Universal's catalog. According to an exploratory public offering filing by the company last month, Spiralfrog will pay $4.4 million in nonrefundable fees to Universal by November 15.

"We have controlled content in an advertiser-friendly environment," said Spiralfrog founder and Chairman Joe Mohen, who appointed a new management team earlier this year after losing two senior executives, who are now consultants to Qtrax. "People were discovering music in one place and then downloading it somewhere else. Spiralfrog will change that."

Spiralfrog and Qtrax are not the first to support free and legal downloads with advertising. Ruckus Network Inc of Herndon, Virginia has been offering a similar service for three years and is now officially at 170 U.S. colleges and claims 700,000 members.

A big problem for these free download services is that they are incompatible with the most popular digital music player, Apple's iPod.

This is where Palo Alto, California start-up Lala.com comes in. It has been pushing a business model that allows fans to buy digital songs and upload them directly on to their iPods. Songs on an iPod can not be transferred elsewhere.

Yet, as a measure of how difficult it is to gain traction in this market, Lala only has one deal with a major label, Warner Music Group. Lala also offers to send fans free CDs of digital albums they buy from its site, and also plans to give them a chance to "return" downloads they do not like.

"There's a significant amount of trust involved," said Lala founder Bill Nguyen. "But it's unsustainable if we don't do it right," he said.
© Copyright 2007 Reuters.

Source: http://www.i4u.com/article11570.html

Music business hits jackpot at casinos

2007-10-13T04:30:00.001-07:00

(2007-10-13)
By Mitchell Peters

NEW YORK (Billboard) - The music industry is striking it rich at casinos.

As casino venues target concertgoers from all walks of life through creative artist bookings, the effort hasn't gone unnoticed by those in the business.

"If you're an agent, you love casinos," says Greg Oswald, a William Morris agent for such acts as Big & Rich, Hank Williams Jr. and Lynyrd Skynyrd. As new casinos boomed in the past 15 years, "it's found money," he adds.

Most casinos are proactive in booking top-selling rock and pop acts, with the specific intent of drawing younger gamblers. But, as Oswald says, casinos appeal to a broad base of fans, therefore allowing booking opportunities for multiple genres.

For some country acts in particular, casino venues have proved to be a beneficial asset when routing a tour. "Frankly, for a lot of artists in the country business and other genres, it has saved their bacon," Oswald says, adding that many casinos still draw older crowds. In 2007, Kenny Rogers, whom Oswald books, will play 30 casino dates nationwide.

Tom Cantone, VP of sports and entertainment at the Mohegan Sun casino in Uncasville, Conn., says live music is a major component in modern-day casinos.

"You really have to get into the event business to drive traffic and revenue on a consistent basis," he says.

This summer alone, Mohegan Sun hosted 164 events across its three venues -- the 10,000-seat Mohegan Sun Arena, the 400-seat Wolf Den club and the 330-seat Cabaret Theatre. In 2006, 51 shows at the arena grossed $15 million and drew more than 387,000 fans, according to Billboard Boxscore.

Mohegan Sun recently broke ground on a $740 million project set to include a House of Blues, Jimmy Buffett's Margaritaville restaurant and store, and a 1,000-room hotel. Full completion is scheduled for 2010.

Steve Gietka, VP of entertainment for Trump Entertainment Resorts in Atlantic City, N.J., oversees booking at venues in Trump Taj Mahal, Trump Plaza and Trump Marina. He says that while live entertainment certainly helps sell hotel rooms and fill restaurants and nightclubs, there's a price to be paid.

"Because we're casinos, and agents, artists and managers believe that their artists help us drive gaming revenues, we typically pay premiums when compared to regular promoters," Gietka says.

Indeed, William Morris' Oswald says that casinos are in a good position to buy plenty of talent. "They have ancillary income in the form of bar, food and obviously, casinos," Oswald says. "So it's easier than the guy who is only going to make money from the box office."

But there are also challenges with casino venues, No. 1 being overbooking, according to Oswald. In some markets, casinos are bringing in act after act, which can sometimes exhaust the local fan base.

"They've made it real hard to sell tickets," Oswald says. "The fans are spoiled because they can go down to the casino on any Friday night and there will be a big act." As a result, promoters are forced to lower ticket prices to attract concertgoers, he adds.

But hosting too many concerts has never been a problem for Mohegan Sun, which is owned by the Mohegan Tribe. Arena concerts scheduled through October include such diverse acts as Jennifer Lopez and Marc Anthony, Big & Rich featuring Cowboy Troy, Van Halen, Mana, Maroon 5, Phil Lesh and Kelly Clarkson.

And with the 25-and-older demographic expanding, Cantone remains confident that casino bookings will reflect their tastes. "It used to be where an older market went to have their entertainment fix. But now the twentysomethings are going. If you're young, want to go out and play poker or blackjack, then catch a cool concert, where else can you go?"

http://www.publicbroadcasting.net/kuer/news.newsmain?action=article&ARTICLE_ID=1165130

Universal Music puts its faith in memory cure for sliding sales

2007-10-13T04:27:00.000-07:00

October 13, 2007
Dan Sabbagh, Media Editor

Universal Music, the world’s biggest music company, is to release singles on USB memory sticks this month, in an attempt to arrest the decline in music sales.

The Vivendi-owned company plans to charge about £4.99 for USB singles starting on October 29 with releases from piano rock band Keane and Nicole, the lead singer of the Pussycat Dolls. That compares with £2.99 for a typical CD single.

However, the hope is that fans will be willing to pay extra because the extra storage capacity on a USB allows the addition of videos and other multimedia.

Brian Rose, the commercial director for Universal UK, said: “This is aimed at the younger, 12 to 24 year olds, who no longer believe that the CD is as cool as it used to be”.

Related Links
Music industry reaction to In Rainbows
Indies accuse Universal of gaining monopoly
Hurt hard by music piracy and legal downloads, sales of CDs are down by 19 per cent in the US and 10 per cent in the UK in the first half of the year.

But with physical music more profitable than downloads, the music business is eager to find formats that will keep consumers coming back to record stores.

Universal’s move is being gradually followed by the other three majors, although by contrast their efforts only amount to dipping their toe in the water, with EMI planning to release Pink Floyd’s studio albums on the format, while Warner Music is aiming squarely at the younger market with a November release of a part-album from electro-punk band Hadouken!

An agreement between the music companies and the Offical Charts Company, which runs the Top 40, means that USB sticks are eligible for inclusion in the chart. That now justifies making them available at the same time as a normal release.

Eric Daugan, vice-president, of digital business in Europe for Warner Music, said: “The CD is an old technology that has not evolved. Fortunately people still want to own a physical product, so with the extra storage, the idea is to offer a better consumer experience”.

Warner Music is hoping that Hadouken!’s USB will retail at £7.99. Promoted as being “halfway between a single and album” by the record company it includes six new songs and five old ones, with links to multimedia content on the internet, and an interface whose job it is to replace the look and feel of the paper album cover.

For Universal, the UK is the test market for the USB format worldwide, partly because it believes the UK is the last important market for singles.

The company hopes to release USB albums before the end of the year from acts such as Kanye West and Amy Winehouse – although rivals privately query its emphasis on the technology when there are alternatives such as MVI, a DVD-based format that combines music and video.

Mr Rose said: “We’re hoping that people will see USB singles as a piece of merchandise. There’s obviously a demand for collectable physical music the kind of format people want to stick up on their wall”.

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article2648613.ece

What Does the RIAA File-Sharing Verdict Imply for DRM?

2007-10-13T04:25:00.000-07:00

October 11, 2007
By Bill Rosenblatt

RIAA's victory last week in court against Jammie Thomas, a Minnesota woman accused of uploading files to the Kazaa file-sharing network, has given rise to much speculation about the verdict's effect on DRM. The October 4 verdict of US $222,000, or $9250 per incident, was almost two orders of magnitude higher than the typical out-of-court settlements that the RIAA has been proffering to alleged online infringers -- yet far below the maximum statutory damages of $720,000 that the jury could have assigned.

One theory we have heard says that the major record companies are less likely to rely on DRM now that they have an actual verdict in hand to strengthen their legal anti-piracy strategy. We disagree with this theory, because it assumes that the majors run their anti-piracy efforts as if they were investment portfoilios. This has not really been the case. Instead, they tend to operate on the principle of "fight the battle on all fronts." We don't expect this verdict to cause the majors' attitudes about DRM to change. Revenue and file-sharing data from the DRM-free download experiments of EMI and UMG are much more likely to determine the future course of DRM in music.

Yet one aspect of the trial's outcome already has very interesting implications for the future of digital rights technologies for music. In his jury instructions, the trial judge told the jury to consider uploading to a P2P network to be infringement without any evidence that other people actually downloaded the tracks; this is known as the "making-available theory."

Different countries have taken different positions on whether uploading, downloading, or both are illegal. The making-available theory has legal precedent but is not considered settled law in the US. Therefore, Thomas is appealing the verdict in hopes of getting a higher court to disallow the theory, perhaps sending the case back to the original district court for a retrial.

If Thomas's appeal is successful, then the onus would be on the RIAA to provide evidence that someone actually downloaded the exact files that Thomas put up -- not some other copies of the same material. Without technologies for tracking sources of online content, such as certain types of digital watermarking, this would be much more difficult, thus doing serious damage to the RIAA's litigation strategy. Therefore, if the music industry is to think rationally about legal and technological ways to curb piracy, it ought to be thinking (even) more seriously about watermarking.

http://www.drmwatch.com/article.php/3704706

Universal Music in Tune with Animation Collective

2007-10-13T04:24:00.000-07:00

October 08, 2007

Universal Music Publishing Group (UMPG) announced today the signing of Animation Collective to an exclusive worldwide publishing administration agreement.

Through the agreement, UMPG will administer Animation Collective's entire catalogue of original music created for its popular animated and live-action children's programming, including ELLEN'S ACRES and KAPPA MIKEY. The deal encompasses worldwide administration rights, as well as synchronization rights worldwide.

All of Animation Collective's series on-air, in development, or in production feature original pop and rock songs. Certain series episodes have also been produced as musicals. In February 2008, KAPPA MIKEY will premiere its much-anticipated two-part "Karaoke" episode featuring 10 original songs.

http://news.awn.com/index.php?ltype=top&newsitem_no=21100

UK download sales 'reach £163m'

2007-10-13T04:19:00.000-07:00

Digital downloads are worth just 4% of the total music and video market
More than £160m will be spent on music and video downloads in the UK this year, according to a forecast.
Market analysts Verdict said digital downloads will be worth £163m in 2007 - up 45.5% on last year.

And digital spending will continue to soar, reaching £600m a year by 2012, according to Verdict's UK Music and Video Retailers 2007 report.

But CD and DVD spending has slowed, it said, with the overall UK music and video market down 2.9% to £4bn in 2007.

Verdict analyst Nick Gladding said: "While piracy will continue and CD volumes will decline further, retailers generally are now better placed to cope with new market challenges."

http://news.bbc.co.uk/2/hi/entertainment/7040134.stm

Universal Music Takes on iTunes

2007-10-13T04:15:00.000-07:00

OCTOBER 22, 2007
Universal chief Doug Morris is enlisting other big music players for a service to challenge the Jobs juggernaut

Relationships in the entertainment world can be famously fraught. And few are more so these days than the one between Steve Jobs and Universal Music chief Doug Morris. You may recall that Morris recently refused to re-up a multi-year contract to put his company's music on Apple's iTunes Music Store. That's because Jobs wouldn't ease his stringent terms, which limit how record companies can market their music.

Now, Morris is going on the offensive. The world's most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service. BusinessWeek has learned that Morris has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S. Besides competing head-on with Apple Inc.'s (AAPL ) music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft's Zune media player and Sony's PlayStation and by working with the wireless carriers. The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music. (Morris was unavailable for comment.)

This isn't only about Jobs; Morris badly needs to boost his business, and Apple is the one to beat. The iTunes store has grabbed about 70% of downloads in the U.S. And the iPod--well, what's left to say about that juggernaut? Plus, music companies have been here before. A few years ago they launched services with the aim of defeating Napster-style file-sharing--and failed miserably. And let's not forget that existing subscription services have signed up only a few million people, vs. hundreds of millions of iTunes software downloads.

While the details are in flux, insiders say Morris & Co. have an intriguing business model: get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that's essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players. "Doug is doing the right thing taking on Steve Jobs," says ex-MCA Records Chairman Irving Azoff, whose Azoff Music Management Group represents the Eagles, Journey, Christina Aguilera, and others. "The artists are behind him."

Morris and Jobs were once the best of allies. When Jobs began pushing his idea for a simple-to-use download store in 2003, Morris backed him. Industry insiders say Jobs felt that Morris, unlike many other music executives, understood that they had to adapt or die. And in the years that followed, Apple and Universal moved in near lockstep.

But before long, Morris realized he and his fellow music executives had ceded too much control to Jobs. "We got rolled like a bunch of puppies," he said during a recent meeting, according to people who were there. And though Morris hasn't publicly blasted Jobs, his boss at Universal parent Vivendi is not nearly so hesitant. The split with record labels--Apple takes 29 cents of the 99 cents--"is indecent," Vivendi CEO Jean-Bernard Levy told reporters in September. "Our contracts give too good a share to Apple."

After unilaterally breaking off talks with Apple in July, Morris continued offering Universal's roster--Eminem, 50 Cent, U2, and other artists--to Apple, but on a month-to-month basis. That freed Universal to cut special deals with other vendors, such as cell carriers eager to generate revenues. AT&T (T ) is packaging ringtones and music videos of Universal artists and is expected to start selling downloaded tracks with videos soon.

That's not all: In August, Morris announced a five-month test with Wal-Mart (WMT ), Google (GOOG ), and Best Buy (BBY ). The three companies will sell music downloads that can be played on any device--a freedom not available to buyers of iTunes songs, most of which play only on Apple devices and software. Morris wants to see if the downloads, which won't have copy protection, will help cut into piracy and hike sales. And of course he won't be upset if iPod owners bypass iTunes.

With the Total Music service, Morris and his allies are trying to hit reset on how digital music is consumed. In essence, Morris & Co. are telling consumers that music is a utility to which they are entitled, like water or gas. Buy one of the Total Music devices, and you've got it all. Ironically, the plan takes Jobs' basic strategy-- getting people to pay a few hundred bucks for a music player but a measly 99 cents for the music that gives it value--and pushes it to its extreme. After all, the Total Music subscriber pays only for the device--and never shells out a penny for the music. "You know that it's there, and it costs something," says one tech company executive who has seen Morris' presentation. "But you never write a check for it."

The big question is whether the makers of music players and phones can charge enough to cover the cost of baking in the subscription. Under one scenario industry insiders figure the cost per player would amount to about $90. They arrived at that number by assuming people hang on to a music player or phone for 18 months before upgrading. Eighteen times a $5 subscription fee equals $90. There is precedent here. When Microsoft was looking to launch a subscription service for Zune, Morris played hardball. He got the tech giant to fork over $1 for every player sold, plus royalties. Total Music would take that concept even further. "If the object is to wrest control of the market from Steve Jobs," says Gartner analyst Mike McGuire, "this is a credible way to try it."

Of course, Morris still needs Jobs. It's noteworthy that Universal has not pulled its music from iTunes--Morris simply can't afford to do that. Universal's earnings fell 25% in the first half. Jobs, of course, knows that and can afford to be magnanimous. "Doug's a very special guy," the Apple chief told BusinessWeek. "He's the last of the great music executives who came up through A&R. He's old school. I like him a lot."

http://www.businessweek.com/magazine/content/07_43/b4055048.htm?chan=search

Tons of free music ... and other global injustices

2007-10-13T04:11:00.000-07:00

RIAA vs P2P
By Andrew Orlowski

Ah, let's hear it for "consensus". These days, consensus is a splendid, many-sided thing that can mean anything you want it to mean - and whatever it is, you'll find the supporting evidence on the internet. Which is great news for hacks, who love to be soothsayers to the nation - and tell us what we're really thinking.

This week saw CNET's Greg Sandoval play the part of Mystic Meg. Looking into his crystal ball, Greg pronounced:

"Almost everybody agrees Jammie Thomas is thumping the recording industry in a battle for hearts and minds."

Ah, but not so fast. The part of the record industry that's represented by the RIAA is hardly more beloved today than it was a fortnight ago. The derisory settlement to its price-fixing case, one correspondent reminded me, is far short of what the lobby group cost consumers.

(And we should point out that the very significant, but always overlooked part of the industry called "songwriters and composers" hasn't filed suit.)

No, the fly in this particular oink-ment is that Jammie Thomas isn't quite the heroic victim she's made out to be. She may even be the World's Dumbest File Sharer.

It just took a bit of plain, blue-collar Mid Western common sense to point out this out.

CNET's Sandoval was doubtless scouring message boards, blogs and even Comments sections like ours, where people whipped themselves into a right old frenzy about the first P2P file sharing trial. But away from the ritual spleen-letting, a few readers beg to differ.

Through bad advice and bad judgement, Jammie Thomas was persuaded to put the matter to a jury trial. Instead of the paying the RIAA tax of a couple of thousand dollars, she was landed with a bill for $220,000.

The jury took five minutes to establish her guilt, and then five hours deciding to punish her for wasting their time. Quite simply: she was insulting her fellow citizens by trying it on.

All of which means its entirely her own fault, say readers.

Writes Kevin Hall:

It really does beggar belief why anyone would try appealing this one. She has almost no chance of winning - I can only assume she is hoping the eye-watering fine might be reduced; on the other hand the appeal court might increase it as she is simply being belligerent in bringing it to them.
The facts of the matter are incontestable and there is really no point of law you can pick a part; I'm no lawyer but this really is a black and white case. The EFF embarrass us all in taking this case on; this isn't about freedom in any sensible way. She broke the law and has to face the consequences of doing that. There is nothing wrong in fighting an unjust law (God knows there's loads of them) but she deliberately lied to the court and was patently dishonest. Freedom comes with a responsibility to be honest and to show integrity which she hasn't.

The problem is the EFF are just making this worse. They're trying to pull this apart in a game of semantics which always make the law an ass. If they're trying to the defence of "no physical objects" then they're into the ridiculous area of the "victim-less crime" which is pretty much indefensible.

The message is simple - as the law stands what she did is illegal and trying to both appeal and to re-categorise it as some kind fight for freedom is totally ridiculous. If you want to make a stand against tyrannical copyright law then by all means, but this kind of action is futile. Freedom has to stand for something more than being able to bootleg CDs with impunity...
He adds:

I think you hit the nail on the head when you said the problem is the sense of entitlement; the arguments being put forward are absolutely feeble and the anger and hostility of the people extremely strange. What facinates and at the same annoys me is that these people aren't even pretentious enough to even be advocating a political point of view; these people aren't old Marxists or left-wingers who have some central dispute with property rights. The downloaders are really just greedy juvenilles who simply just don't want to pay for anything.

They also never let the facts get in the way of a good argument; CD prices have historically never been lower, 15 years ago you would never, ever have paid £7.50 for a top 10 album, it would have been double that. Their argument is fundamentally selective, yes a CD probably costs about 30p to make but this same argument can be applied to any high-margin business which they don't do. Starbucks mark drinks up by 400%; T-shirts sold in supermarkets cost 5p to make and are sold for £3.00 and the staff are paid minimum wage to sell them. Practically every area of feudal capitalism is hallmarked by examples of extreme inequity but none of these downloaders seem at all concerned about it.

They just want the latest U2 CD for free or a download of Revenge of the Sith and they rationalise by saying they're "fighting against the system" whilst never actually taking a stand for anything noble.

--------------------------------------------------------------------------------

CD prices are appalling, and yes, RIAA is a group of morons. But that doesn't justify theft.

What worries me slightly is that my son is now getting ripped DVDs from his friends' parents. Works out well for the industry though - every time he shows up with one I can choose between buying the legit edition or coping with a screaming child who is still too young to understand why this is wrong...

Keep up the good work,

Edwin

--------------------------------------------------------------------------------

Thank you for a sensible article about music filesharing. While I believe that the RIAA are being very heavy handed with people caught with files that they are offering for download, I just can't see how filesharers think that it's an acceptable thing to do. "Oh I just wanted to try it out before I bought it", "it only harms very big companies", "the music they put out is dreadful bublegum pop tat anyway" seem to be a clarion calls, but it's not the people who are downloading and trying it out who are (in general at least) being prosecuted, it's people offering for upload thousands of files.

I wish the music industry would stop dishing out tens of millions of pounds to dreadful artists such as Robbie Williams or Mariah Carey (who inevitably turn out to be expensive, egotistical embarrassments), when the money dished out to them would have developed tens or hundreds of new bands. I long for the days of the early nineties when the indie labels ruled, maybe that's more to do with being thirtysomething though.

Fraser
Was the ultimate fine proportionate? Thomas had made just 24 songs available, which as reader M. pointed out was 10,000 times the retail value of each song.The penalty was designed with industrial-scale bootleggers in mind, and a pirate CD facility can knock out thousands of copies an hour.

But the settlement costs of an RIAA lawsuit are actually one hundreth of that, and the chances of being caught remain far lower than for any other illegal activity.

Small wonder P2P file sharing is carrying on as normal. Not paying for art remains terrific value.

http://www.theregister.co.uk/2007/10/12/riaa_mailbag/

Digital downloads get pop-tastic applause

2007-10-13T04:10:00.001-07:00

Musical deathmatch with Queen of Pop as ring master
By Kelly Fiveash

Unless you've been living under a rock recently you'll have noticed that the digital music industry has been flip-flopping all over the place this week.

First up, music licensing company Snocap today confirmed that it had reduced its staff headcount by 60 per cent.

The San Francisco-based firm, which had been the latest e-commerce venture from Napster founder Shawn Fanning alongside biz partners Jordan Mendelson, and Ron Conway, is said to be up for sale according to a blog post on ValleyWag.

It was created in 2002 in a, some might say, ambitious attempt to legally sell copy-protected music files on P2P networks by taking care of licensing and copyright issues on behalf of artists wanting to punt their musical wares online.

As ValleyWag points out, however, the firm's apparent decline could in part be attributed to the fact that there is less call for such a business model in a music industry fast moving towards a DRM-free future.

Elsewhere, Madonna has decided to ditch her long-running relationship with record label Warner Music Group (WMG) in a move that many commentators have, perhaps prematurely, seen as the nail in the coffin for the old way of doing business with record companies.

The pop Queen's latest reinvention will see her leave WMG after a quarter of a decade with the firm. Various reports say Madonna is expected to sign a $120m ten-year deal with concert promotion firm Live Nation.

It's a move that doesn't take much working out. Apparently, Madonna's album sales have continued to decline while her live, pricey shows have proved extremely popular among her fans.

Of course, Radiohead had already declared a touchy-feely attitude of "who needs them anyway?" The label-less band recently asked its army of fans to name the price for digital downloads of its latest CD.

And we've not even got on to talking about everyone's favourite media punchbag Britney Spears, yet. But what the hell, it is a Friday.

The troubled star's music label, in a bid to stop the party getting started, yesterday said it had filed a copyright infringement suit in U.S. District Court in Los Angeles against gossip website Perez Hilton.

According to Reuters, Jive Records, which is a division of Sony BMG Music Entertainment's Zomba Label Group, has accused the popular site, and its owner Mario Lavandeira, of posting illegal recordings during the past three months of our Brit's forthcoming album, the somewhat aptly named Blackout. No pathos intended.

And finally, a new study has revealed that music-buying trends continue to point to a surge in sales online.

Market analysts Verdict said that UK digital downloads will be up more than 45 per cent on last year, worth £163m to the music and video industry in 2007.

Verdict, in its UK Music and Video Retailers 2007 report, also predicted that digital spending will continue to rise and that it could reach £600m a year by 2012.

It said: "While piracy will continue and CD volumes will decline further, most retailers are better placed to cope with market challenges... Digital downloading is starting to pick up pace and has much potential."

http://www.theregister.co.uk/2007/10/12/madonna_snocap_britney_downloads/

EMI 'goes indie'

2007-10-13T04:08:00.000-07:00

When financiers do A&R
By Andrew Orlowski

A memo from EMI's new owner has got the music digerati very excited. In recent years they've been hoping some of the lovely lolly that's been lubricating the City of London would flow their way. Now their wish is coming true - and it might not be what they wanted after all.

Guy Hands, whose private capital investment company Terra Firma acquired the label earlier this year, says he wants EMI to "act more like venture capitalists", according to a memo "leaked" earlier this week.

In our experience, acting like VCs means throwing money at hopeless dot.com start-ups - pick a card, any card! - while convincing the press that there's a New Economic Paradigm just around the corner. This might be "Pen Computing", or "Web 2.0" - it doesn't really matter. The trick lies in creating the demand - then making a sharp exit. They're really PR companies spending someone else's money.

But this doesn't map onto business models that fulfill a demand for cultural goods - especially not a large 21st century "entertainment" company. Did major record labels invent punk or acid house? Of course not - the best they could do was fulfill demand that already existed - usually with a load of cheesy ripoffs. Culture always remains a few steps ahead of the entrepreneurs who try and monetise it.

So the VC model is a lousy one for music: so long as sound recordings have value, record companies need artists they can milk for decades. Dead or alive, it doesn't really matter.

The most surprising part of Hands' memo is where he indicates that EMI should be prepared to let these prize assets go.

"Why should [established acts] subsidise their label's new talent roster — or for that matter their record company's excessive expenditures and advances?" he asks.

One of EMI's most bankable outfits has already done so. Radiohead released its new album Ten More B-Sides this week, clocking up more than one million downloads. Radiohead's bag of riffs and tropes varies little more than Status Quo's, it's just as dependable - and there's nothing wrong with that - for businesses it's what makes them so attractive. But if Hands is to allay fears that he's not just a quick turnaround merchant, he needs to keep them in the stable for longer. Perhaps giving these acts the kind of deal Madonna won with LiveNation this week - where she bags revenue from concert tickets, merchandise, as well as the sales of sound recordings.

From this memo, Terra Firma doesn't so much look like an asset stripper, as someone shooing the assets out of the window, as if they're flight-fearful pigeons.

A-ha, you're thinking. The money men have been in charge of the major labels for years now, and acting like it. The recent tendancy to cut their losses and ditch promising acts after their first album undermines the boast that major labels have a "nurturing" role.

But we're about to find out what happens when real financiers are in control - at which point major label executives might start to look back nostalgically at the frying pan they've just jumped out of.

http://www.theregister.co.uk/2007/10/12/emi_hands_memo/

Electronic Frontier Foundation To Support Thomas In RIAA Appeal

2007-10-13T04:06:00.001-07:00

October 12th, 2007
The Electronic Frontier Foundation (EFF) has publicly sided with Jammie Thomas, the single mother from Minnesota who lost a jury verdict against the RIAA for copyright infringement. Thomas, who received almost a quarter of a million dollars in fines for making a few dozen songs available for download on a Peer-To-Peer (P2P) file sharing service, has stated that she will appeal the verdict. The EFF’s involvement is certainly good news to Thomas, who was obviously guilty according to jurors interviewed after the trial. Now her financial future may rest on a technicality.

The EFF has a new strategy that hinges on challenging a jury instruction that associates making tracks available on P2P networks with active distribution. Here’s what the Jury was told:

Jury Instruction #15: The act of making copyrighted sound recordings available for electronic distribution on a peer-to-peer network, without license from the copyright owners, violates the copyright owners’ exclusive right of distribution, regardless of whether actual distribution has been shown.

According to the EFF, there are two distinct things wrong with this instruction…
First, the “distribution right” set out in Section 106(3) of the Copyright Act simply does not extend to Internet transmissions. It may sound odd, but “distribution” as defined in the Copyright Act requires that a physical object change hands (remember, this is a law that was written in 1976). EFF laid out this argument in its amicus brief in the Elektra v. Barker case, building on a 2001 article by University of Texas copyright law professor R. Anthony Reese.

Second, even if the “distribution right” reached Internet transmissions, a copyright owner must prove that a distribution actually took place (i.e., that someone actually downloaded from Ms. Thomas’ computer). As a result, Jury Instruction #15 is wrong when it asserts that the record companies can prevail “regardless of whether actual distribution has been shown.” For more on this issue, read the amicus brief filed by CCIA in Elektra v. Barker, as well as the 2005 ruling by Judge Patel in the Napster case.

If 8th US Circuit Court of Appeals rejects that jury instruction, the verdict against Jammie Thomas will have to be tossed and the case re-tried, if the RIAA is willing to get back into the ring.

http://www.futuremusic.com/blog/

Defecting from Music1.0 - what Radiohead, Madonna, Prince, The Charlatans, Korn, Jane Sibbery, Ani De Franco and The Eagles have in common

2007-10-13T03:57:00.000-07:00

I don't buy a lot of printed newspapers (why... well, you should see the inbox of my google reader ;) but something made me pick up a copy of the International Herald Tribune (IHT) today. The IHT is indeed my favorite international newspaper; with consistently great writing and sharp opinions.

I was delighted to find at least 2 major stories on the music industry in this edition: one on Radiohead and one on Madonna (this was the only cached IHT link I could find, but here are other details). I was happy to see that at least one of them is already available in their entirety (maybe they know a little but something about The End of Control...?) - but where is the Madonna feature I have in my print version?

So what is happening here?

Basically, faster, nimbler, less-control-obsessed and less-conflicted players are doing what the major record labels should have done five years ago: offering partnerships to artists and their managers, real profit (and responsibility) sharing, engaging with artists on all levels, not just on selling copies of plastic (or zeros and ones, for that matter). As the IHT puts it when talking about the Madonna-Live Nation deal: this is a "wide-ranging partnership", not a mid-term 'plantation agreement' (the latter expression is mine, not theirs).

And by and large, major record labels will not be welcome in this game, because:

they have little expertise in it
they have none or few people that could run something like this
by and large, they have a monopolist's mindset (which is not going to work here)
they have aptly and with great dedication eradicated trust across the board: with the artists, the managers, the producers AND the users
they don't like deals that create a level playing field
Here are some quotes from the IHT features which I like a lot:

"Radiohead couldn't be in a better position to market itself online, without middlemen. It has a huge and loyal, if contentious, fan base that has sold out arena concerts for more than a decade. Unlike Prince, who chose to go independent at a much earlier, slower stage of the Internet, Radiohead can count on broadband access from much of the world."

My comment: indeed. If Todd Rundgren and Prince would have had broadband-enabled fans instead of a dial-up crowd it would been all over for the major labels a few years ago.

"...Radiohead records and tours on its own budget and timetable, plays new songs before they're recorded, lets listeners hear its music with a click or two and sustains itself primarily through performing and direct sales"

My comment: I like that thought, too, yet I think they will indeed need very strong managers, smart advisers, hot branding teams, and cutting-edge service providers to make this work because large financial success is still a question of SCALE. That is, of course, what the major labels have indeed provided and maybe that is what they can provide in the future? But now, guess what, there are hundreds of companies gearing up to provide just that: scale, and access to very large audiences. Another tough reality check for the majors - as far access to large numbers of people goes, they will be competing with the likes of myspace, youtube, google, facebook, AOL, Yahoo etc, and a gazillion of startups such as Kyte, Blip.tv, iLike, Jamendo, Reverbnation, Sonific (woho knows;) etc.

"Historically, middlemen are expensive. Under typical major-label contracts, musicians have paid handsomely for market access. The luckiest ones receive perhaps 15 percent of what their albums earn after a label's expenses are recouped - as opposed to the 100 percent of revenues that Radiohead is getting from "In Rainbows" online...."

I think these, below are the driving factors behind all of this:

http://www.mediafuturist.com/

Beyonce-Phone Among New Devices Hitting The Market

2007-10-12T01:19:00.000-07:00

A host of new multimedia mobile phones are poised to hit retail shelves, just in time for the holiday sales season.

Just a week after Verizon unveiled a touch-screen iPhone competitor as part of its fall device lineup, Sprint pulled the curtain back on a pair of new devices as well. The biggest splash in the music department is a Beyonce-branded version of the UpStage music phone, originally introduced earlier this year.

The B'Phone, as it is called, features gold-and-burgundy colors designed by Beyonce, a Beyonce-themed startup screen, and the ability to download exclusive Beyonce photos, videos and a childhood song she recorded when she was 10.

"When I was 10, I recorded a song called '632-5792' - a phone number. It's a little embarrassing but it's cute. There's a recording of that song on the phone exclusively for my fans," said Beyonce.

The company also introduced the Rumor from LG, pitched as a "social networking" device based on various text messaging and IM functions. A "text tones" feature allows users to assign specific alerts for incoming text messages from different people, much like is done with ringtones today.

Additionally, Sony/Ericsson announced its new Walkman branded phone will be on store shelves this month. The W910 lets users shake the device to skip between music tracks and has a SensMe music recommendation feature. The company also introduced a line of portable Bluetooth speakers that can be used to stream music from a Walkman phone.

SOURCE

Report: Teens Moving From P2P To Paid Services

2007-10-12T01:17:00.000-07:00

The results of a teen survey, conducted by financial analyst firm Piper Jaffray, revealed young music fans are slowly accepting paid online music sources over P2P filetrading. P2P is still the primary way they acquire music, but its market share fell to 64% from 72% last fall. Meanwhile, 36% of teens said they now buy music from online services, up from 28% last year.

Of the paid services used, iTunes remains the primary resource, but it's market share is slipping at 79% from 91% last year. However it's not Rhapsody or Napster making up the difference, which each hold a 2% share of attention. Instead, the "other" category is now 16% of combines usage -- which includes sources like eMusic, Amazon.com and mobile music stores.

Exactly which of these service is making up the lag in iTunes' share is not clear, as the company did not ask the teen users to identify their alternative sources.

SOURCE

Ad-Supported Service Deezer Signs With Sony BMG

2007-10-12T01:12:00.000-07:00

Sony BMG France has signed an agreement which will provide users of French ad-supported on-demand streaming service Deezer with unlimited free access to 165,000 titles.

In a press release issued by Deezer, Sony BMG France chairman and CEO Christophe Lameignère said the agreement was "a first step towards a new form of music usage, respectful of copyright in the digital environment." Sony BMG was unavailable for comments at press time.

"Deezer is a digital jukebox," explains co-founder Jonathan Benassaya. End-users, he says, upload their own music, which is then scanned via U.S. fingerprinting solution Music IP.

While the business model is currently based on advertising, Benassaya says Deezer is considering launching an unlimited download service, which would be based on paid subscriptions.

While he would not unveil the details of the deal, Benassaya says Sony BMG's remuneration is mainly based on a percentage of Deezer's advertising revenue.

In August, French authors, composers and publishers collecting society Sacem signed an agreement with Deezer, which was also based on an undisclosed share of its advertising revenues, with a minimum set per streaming packages.

"Deezer is a practical answer to piracy," says Benassaya, who adds that the firm is currently in talks with several European ISPs to integrate the music service in their offer. In August, France's third ISP Free added a permanent link to Deezer on its homepage. Benassaya says a new version of the service will arrive by the end of October, which will include a social network and music news features.

Named Blogmusik until last August, the service had actually closed in March 2007 after an action taken by Sacem and by independent record labels collecting society SPPF. The service vowed to go legal and re-launched in April. However, Universal Music France issued a press release in August protesting against the use of its catalog without their agreement.

Sony BMG is the first record company to grant their rights. Deezer's offering to date has included 250,000 titles from the four major companies and from many independent labels, many of which are uncleared. While acknowledging this, Benassaya says negotiations are ongoing with the remaining major companies. An agreement with SPPF is close, he says.

Deezer claims a million registered members to date, up from 300,000 a month ago.

SOURCE

ZUNE'S NEW TUNE

2007-10-12T01:10:00.000-07:00

Microsoft's introduction of three new Zune devices, combined with an updated version of the Zune digital music service, suggests that the relatively lackluster response to the initial Zune offering has not fazed the computing giant from advancing its digital music agenda.

The key to what Microsoft is calling "Zune round two" is not so much the features of the new devices—such as the touch pad and flash memory—but rather the added social networking elements the company is integrating into the broader service, especially via a development that Microsoft is calling Zune Social.

The service will automatically list songs that Zune users have most recently played, allow members to customize their own list of favorite artists and let visitors stream full versions of each song. Additionally, each Zune Social profile (called a Zune Card) can be added, much like a widget, to other social network sites, blogs and Web sites.

Together with the elimination of the three-day limit on songs shared from one Zune to another and the new ability for users to forward shared songs to others, Microsoft's latest Zune effort attempts to combine pieces of other existing digital music initiatives into one offering.

"We've got the hardware, the software, and now we have community," Zune GM of global marketing Chris Stephenson says. "We think we can pull all three exciting areas together and create one improved consumer experience."

That's easier said than done. Such music communities as Last.fm and MOG have already attracted millions of users, and such initiatives as Imeem are embracing ad-supported models that allow users to stream full songs discovered on other users' profiles. Combined with the move toward digital rights management-free tracks and widget-based sales, an interoperable community of music discovery and distribution is already in development while Microsoft works to build a self-contained version.

Microsoft has sold 1.2 million units of the original Zune, snagging the No. 2 market-share position for hard-drive-based MP3 players. It wants to achieve the same with its new flash-based devices on the back of its social sharing and networking strategy, but faces strong incumbents and equally innovative newcomers. Sandisk is second in flash-based-device market share at about 10%, behind Apple's 74%, and is integrated with such services as Yahoo Music Unlimited and Rhapsody. Additionally, new Wi-Fi-enabled devices are expected to hit the market this holiday season, particularly the Slacker model—which comes integrated with an online personal radio service.

SOURCE

Mexico's Somexfon Shuts Down Digital Jukeboxes

2007-10-12T01:07:00.000-07:00

As part of a continued push to combat piracy at different levels, Mexico's Society of Video, Multimedia and Phonogram Producers (Somexfon), has seized 15 digital jukeboxes in Mexico City and Jalisco.

Over the past few months, Somexfon has asked jukeboxes owners across the country to monitor their content and ensure that all tracks, whether in CDR or digital format, are legally obtained.

Those who don't comply have been told their jukeboxes will be seized by authorities. Acting together with local authorities, Somexfon seized 12 jukeboxes in Mexico City and 3 in Jalisco.

SOURCE

Widget Enables Web Site Publishing On Social Sites

2007-10-12T01:00:00.000-07:00

Reverbnation.com launched TuneWidget, an application that allows bands to post a miniature version of their Web site on social networking sites and blogs. TuneWidgets can also copied and shared, and Reverbnation will track each posting of the widget.

ReverbNation is a Web site that provides social networking tools for musicians and real time statistics on the uses of those tools.

SOURCE

Melody Tunes Ramps Up Arab World Campaign

2007-10-12T00:59:00.000-07:00

Melody Tunes brings modern Western music to the Arab world.

Does the Arab world want its Melody Tunes? More precisely, does it want an all-English channel playing Western music by artists such as 50 Cent and Madonna?

Melody Tunes, a channel that launched in the Middle East in September, is betting that it does and launched an integrated campaign from ad agency Leo Burnett in Cairo, Egypt, to prove that there was a viable market for such music.

The campaign, which consists of six television commercials, five radio spots and print ads, plays off the idea of non-native English speakers singing along phonetically to songs by artists such as Akon and 50 Cent.

In the 30-second "Akon" spot, one teenager is seen writing on his living room wall while his friend watches him. The drawer's mother discovers him in mid-graffiti and smacks him to the ground. As he lies there, stunned, his friend begins singing and acting out Akon's hit "Smack That" over his prone body.

"The idea came from people in the country. Lots of them speak English and [the work is] targeted at them," said Mohamed Hamdalla, creative director, Burnett, Cairo, who also directed the spots. "Everyone on the street tries to throw English into conversations to make themselves seem educated even when they're not. We thought it would be fun to make fun of that."

Melody Tunes, which launched in September, is part of Melody, a media company similar to Viacom with several other channels focused on Arabic films and music. It is not the first media outlet to present Western music, but it will be the first all-English music channel. MTV, in November, will begin MTV Arabia, the company said. Similar to channels such as Rotana and Mazzika, it will air a mix of Western and Arab music.

Presenting Western music in the Arab world is not a guarantee of success. This summer MuchMusic's "Arab-yeah" failed to make a go of it and went off the air after only a few months. The Arab equivalent of Canada's Much Music styled itself as an Arab version of MTV and played a mix of Western and Arab music.

The campaign establishes Melody Tunes as an anti-authority, rebellious channel targeted at Arab youth.

"The target audience is young people who are very influenced by the West yet have had their own culture embedded in them growing up," said Gamal Marwan, CEO and chairman of Melody. "We wanted the campaign to be light and catchy and for Melody to be known as always pushing the envelope."

The spots, which are up on YouTube, have proven so successful that Burnett's Cairo office is developing the next round, which it plans to air in the next month or so. (The six spots average around 75,000 views apiece.) Melody, per sources, is spending between $7-8 million on the campaign.

"One of the things I've learned is that if you give an agency the creative freedom, this is what they'll give you," said Marwan. "With our next round of spots, since the formula is working, we'll stick with it."

SOURCE

Loud Launches Beverage Line

2007-10-12T00:56:00.000-07:00

Loud Records, founded by music mogul Steve Rifkind, has partnered with industry veteran Ron Urban for the launch of Loud Beverage Corp. A line of energy drinks will be the first to hit the market.

"This company's rich musical history has its roots in marketing, and that's the same approach we are taking with Loud Energy Drinks. We will launch this product market by market in the manner of breaking records," says Rifkind in a statement. "In addition to traditional beverage marketing, we utilize radio, DJs, mixtapes, club nights and promotions with non-traditional entertainment and lifestyle accounts."

Loud Energy Drinks currently come in two flavors (Classic Mix and Sitrus Stunner) with a third (Grapple Sauce) in production and a fourth (the sugar-free Pomberry Zero) completing formulation. The company also has several other lines in development.

Loud Energy Drinks are available in various cities nationwide, including San Francisco, Los Angeles and New York. Local promotions are planned with partner Universal Music Group at over 200 independent indie retail outlets.

SOURCE

Madonna morphs again; The mistress of reinvention leaves an old label for a new kind of distributor.

2007-10-12T00:55:00.000-07:00

Pop star Madonna's greatest talent may be her ability to provoke, but the one that has served her best is her keen eye (and ear) for trends. Her career has been one of constant reinvention, with the Material Girl adopting a new dance-pop style with almost every release. Now she has joined the vanguard of a new movement, becoming the latest big-name act to dump her label in favor of a new kind of distributor.

Madonna's managers reportedly told her longtime label, Warner Music Group, that she would sign a 10-year, $120-million deal with Live Nation -- a top concert promoter and venue owner that handled some of her previous tours.

That kind of money isn't unheard of for a star of her magnitude; two years ago, Sony BMG signed Bruce Springsteen to a deal reportedly worth almost as much (a move that precipitated Chief Executive Andy Lack's demotion to non-executive chairman). But it's easier for Live Nation to make a nine-figure offer because it doesn't have to rely solely on the 49-year-old singer's ability to sell $16 CDs. Instead, it can count on her track record selling far more expensive concert tickets. Her last tour grossed $86 million in North America alone and was expected to collect twice that amount worldwide, with an average ticket price of more than $180.

The deal has risks for Live Nation too, and yet it exemplifies the power shift in the music industry.

Overall CD sales have fallen sharply since 2000, and even the top-selling acts aren't putting up the numbers they did in the 1990s. Not so long ago, top acts routinely sold a million copies of a new CD the first week it was on the market. Now, the No. 1 spot often goes to artists selling a few hundred thousand discs.

The slump has put a crimp in the major labels' high-risk, high-reward business model, which counted on a handful of artists racking up hits big enough to offset the losses incurred by the rest of the roster. That's why top executives at Warner Music and EMI have talked for months about the need for a new model that gives artists a larger percentage of their CD sales in exchange for a share of the revenue from tours, fan clubs and T-shirt sales, all of which have been off-limits to the labels.

But as Madonna's deal demonstrates, artists increasingly have other partners willing to shoulder some of the risk. Retailers are stepping up to promote and distribute CDs, as Wal-Mart did for Garth Brooks and will soon do for the Eagles, and as Starbucks has done for Paul McCartney and Joni Mitchell.

Meanwhile, a growing number of artists in their prime are forgoing record contracts and releasing songs through their own websites. The list includes Radiohead -- which invited fans to pay whatever they wished to download its new album -- Oasis and Nine Inch Nails.

The news isn't all bad for the major labels. They recently won a $222,000 judgment against a single mother in Minnesota for sharing two dozen songs online through Kazaa. But an uncollectable judgment is cold comfort for an industry that's losing support on both ends of its business.

Not only are customers finding other ways to fill their musical needs, so are the musicians.

SOURCE

Island Def Jam To Launch Mobile Music Offering

2007-10-12T00:46:00.000-07:00

Island Def Jam Music Group is launching a mobile music subscription service dubbed IDJ Radio.

The service will feature six streaming "radio" stations and on-demand music videos featuring hip-hop/R&B, old school classics, and Reggaeton/Latin hip-hop from both Island Def Jam artists and those of other labels.

Mobile content firm mSpot is providing the technology behind the service. The company says one mobile operator will have an exclusive to the content, but did not name which one, nor did it reveal pricing. Details will emerge in the coming weeks according to mSpot.

Sprint is one of mSpot's biggest carrier partners, offering the company's various radio services and other applications.

SOURCE

Commission Confirms Approval Of Recorded Music Joint Venture Between Sony And Bertelsmann

2007-10-08T03:37:00.000-07:00

Commission Confirms Approval Of Recorded Music Joint Venture Between Sony And Bertelsmann

The European Commission has confirmed clearance under EU merger control rules for the creation of Sony BMG, a joint venture combining the recorded music businesses of Sony and Bertelsmann after concluding that the transaction would not create or strengthen a dominant or collectively dominant position in the music markets in the EEA (as regards EU Member States, restricted to the 15 countries who were members before 1 May 2004). The merger had first been approved by the Commission in 2004 (see IP/04/959). Following the annulment of this approval by the Court of First Instance in 2006, the Commission has conducted an in-depth re-assessment of the merger.

Competition Commissioner Neelie Kroes commented: "This investigation represents one of the most thorough analyses of complex information ever undertaken by the Commission in a merger procedure. It clearly shows that the merger would not raise competition concerns in any of the affected markets."

Before its absorption by the joint venture, Bertelsmann Music Group was a subsidiary of Bertelsmann AG, a German-based international media company whose activities also include television and radio production, broadcasting and book and magazine publishing. BMG's music labels included Arista and Jive.

Sony Corp of America belongs to the Japanese Sony group whose activities include consumer electronics and the entertainment industry besides the music recording and publishing business. In recorded music it acted through Sony Music Entertainment which owns the Columbia, Epic and Sony Classical, among other labels.

The 2004 decision

On 20 July 2004 (see IP/04/959), the Commission authorised under the then in force 1989 EU Merger Regulation the creation of the joint venture Sony BMG, combining the recorded music divisions of Sony Corporation and Bertelsmann AG (BMG). After examining the proposed transaction, the Commission found that it would not create or reinforce a dominant position for the involved firms alone or collectively with the other music majors (Universal, Warner and EMI).

The Court decision

In its 13th July 2006 ruling on case T-464/04 (see CFI press release n° 60/2006), the Court of First Instance however considered that the Commission made manifest errors of assessment and that the evidence relied on by the Commission was insufficient to justify the clearance decision and annulled it.

The second investigation

Following this annulment, the case was re-notified to the Commission on 31 January 2007 and the Commission started a new assessment of the transaction. On 1 March 2007, the Commission opened an in-depth investigation (see IP/07/272).

The new investigation was carried out under the previous Merger Regulation (EEC 4064/89), applicable to merger agreements signed before 1 May 2004, under which the Commission had to check whether a proposed merger would strengthen or create a dominant or collectively dominant market position in the territory of the European Economic Area as it stood before 1 May 2004 (including the 15 EU Member States at the time) or a substantial part thereof. However, the Commission re-evaluated the transaction in the light of current market conditions, taking into account developments since 2004, including the developments in the sale of online music. This means that the Commission was able to evaluate the actual impact of the merger on the market since 2004 and was not limited, as is usually the case, to an analysis of likely effects on the market in the future.

As a reminder, a merger in a concentrated market may significantly impede effective competition through the creation or reinforcement of a dominant position because it increases the likelihood that firms are able to collectively coordinate their behaviour to the detriment of consumers, notably through increasing prices, limiting production or dividing the market, for instance by geographic area or other customer characteristics.

In this investigation, the Commission examined in great detail all national markets for recorded music in physical format and for the licensing of recorded music in digital format. The investigation has focused in assessing the likelihood of the merger creating or reinforcing a collective dominant position of the major record producers, following the three criteria set in the Airtours judgment of the Court of First Instance (case T-342/99). These criteria are whether there is sufficient transparency in the market in order to spot deviations to the collusion, whether there is a credible retaliation mechanism by the companies on the market against any companies who would not collude, and whether there is any possibility for competitors or customers to undermine the effects of the collusion.

In particular, the Commission performed one of its largest and most complex econometric analysis so far in the context of a merger investigation, analysing all net prices, discounts and wholesale prices for all CD chart albums sold by all major record companies to all of their customers in the European Economic Area between 2002 and 2006 (equivalent to millions of data points) in order to find evidence of any possible collusion between record companies. In addition, the market for the licensing of recorded music in digital format, which was nascent at the time of the Commission 2004 investigation, has now been fully analysed in the light of its development since 2004.

The Commission also investigated all the various theories of price and non-price related coordination between major record companies provided by other market players. These theories included alleged coordination on budgets, on the pricing of each title, on pricing policy, on chart album prices, on access to retailers, on access to airplay, on chart rules, on release date, on coordination at the level of publishing activities and alleged negative impact on cultural diversity.

Taking into account the points raised by the CFI, the in-depth analysis of qualitative as well as quantitative aspects of the markets and third-party submissions provided in all instances, the in-depth investigation has provided no evidence of coordinated behaviour prior to the merger or as a result of it. This finding relates to both the markets for music in physical format and in digital format.

Bron: http://mi2n.com/press.php3?press_nb=103993

From The Rolling Stones To Joss Stone, PlayPhone Distributes EMI Music Ringtones

2007-10-08T03:34:00.001-07:00

From The Rolling Stones To Joss Stone, PlayPhone Distributes EMI Music Ringtones

Mobile entertainment company PlayPhone, Inc. (http://www.playphone.com) has entered into an agreement with EMI Music to distribute music ringtones from its extensive catalogue to PlayPhone.com and the far-reaching network of mobile entertainment destinations that are powered by PlayPhone (http://www.playphone.com/Company.aspx). Starting today, consumers can customize their mobile phones with all kinds of music ringtones -- from classics such as The Beach Boys and David Bowie to current chart-topping artists such as Coldplay, Norah Jones, KT Tunstall, MIMs and Lenny Kravitz.

"The mobile entertainment platform is a powerful way for music lovers to connect with our artists," said Lauren Berkowitz, senior vice president of digital for EMI Music North America. "The team at PlayPhone has the know-how, technology and experience to ensure a consumer-friendly user download experience so that anyone with a mobile phone can have access to some of the best-known musical talent on the planet."

"We couldn't be more honored to give our users access to such a legendary catalogue of artists," said Ron Czerny, chief executive officer at PlayPhone. "Having an organization such as EMI choose us as their distribution partner is further validation of our ability to put entertainment companies in touch with today's savvy mobile content consumer."

Bron:http://mi2n.com/press.php3?press_nb=103967

the New Music Model

2007-10-08T03:29:00.000-07:00

the New Music Model

The new music model is based off of the general cirumstances under which i will buy music. i download songs for free and if i like them i buy them or the album to support that artist in making more music that i will hopefully enjoy as well. Giving away your music (full versions of entire releases) via the internet and inviting people to support by either purchasing an actual cd, merchandise or just by making a donation is the basic outline. For new artists this gives exposure and a non-corporate fan-friendly image as well as an opportunity for fans to support with any amount they are able to or feel like giving. The music and concept speak for themselves and hopefully fans will step up and support. It is an alternative to the current standard business model for music that sacrafices the variety and quality of the artistic content to focus more on image and sales. Unfortunately there is a lot more of the ‘image and sales’ being pushed (both legally and illegally) over music based on it’s content.

‘The radio companies…control thousands of stations nationwide, including Clear Channel Communications Inc., Infinity which now operates as CBS Radio, Citadel Broadcasting Corp., Cox Radio Inc., Cumulus Broadcasting Inc., Pamal Broadcasting, and Entercom, Emmis Communications Corp. and ABC’

Under a tentative settlement with the Federal Communications Commission, four of the largest radio station owners have agreed to pay a total of $12.5 million to resolve claims that they accepted cash and other incentives in exchange for playing songs.

Some people i’m sure wouldn’t care if a bribe was all it took for them to become ‘famous!’, but making money and making art are completely seperate things and i think the art deserves the airwaves more than the money.

Record companies are obsolete when it comes to the music. They base music releases on business models. Why are we allowing businessmen to dictate the artistic content of our creative mediums? Who needs a record contract/company in order to write, record, and distribute music throughout the world with all the technological advancements of recent years? Let the music and what the artist is saying stand on it’s own. More and more people are downloading their music, legal or not. Support independent art and pirate corporate releases. Attend shows at venues that do not require pay-to-play. We need to take back control of the corporate domination of public airwaves.

Bron:http://groovemanifest.wordpress.com/category/blogging/

Microsoft Music Store Goes DRM-Free

2007-10-08T03:26:00.001-07:00

Microsoft Music Store Goes DRM-Free

Sending shockwaves through the industry and the crowd of the Digital Music Conference in Los Angeles today, Microsoft became the latest and largest music retailer to offer DRM-free digital music. Today's announcement comes less than two weeks after Amazon.com launched its own DRM-free digital music store. The Microsoft Music Store will offer consumers more than one million DRM-free songs.

"The industry standard has shifted in the past six months and the tide has turned in favor of consumers," Maura Corbett, a spokesperson for the Digital Freedom Campaign said. "The number of digital music retailers offering DRM-free music will soon out number those that do not, and consumers will soon live in a world where they can listen to legally purchased music when, how, and where they want. We congratulate Microsoft for joining the growing number of retailers and labels that have realized the best way to increase the sales of digital music, is to listen to their customers."

Bron: http://mi2n.com/press.php3?press_nb=103991

Viagogo And Live Nation Announce Secondary Ticketing Deal In The Netherlands

2007-10-08T03:25:00.001-07:00

Viagogo And Live Nation Announce Secondary Ticketing Deal In The Netherlands

viagogo (http://www.viagogo.com), Europe's leading online secondary ticketing company, has announced a landmark strategic partnership with the Dutch arm of Live Nation, Mojo Concerts to become the concert producer's official secondary ticketing partner in the Netherlands. The deal also sees the launch of viagogo's Dutch-language website, establishing a dedicated online presence for the Dutch market to complement the company's existing English and German websites. Live Nation, the world's largest live music company, recently announced the extension of its successful web platform LiveNation.com into the Netherlands (www.livenation.nl)

The agreement sees viagogo become the official secondary ticketing partner of Live Nation in the Netherlands. A co-branded internet page has been developed, called Live Nation Ticket Trade powered by viagogo, which provides Dutch fans with a way to resell and buy concert tickets in a totally safe, secure and guaranteed environment. Consumers seeking to resell or buy tickets no longer available through Live Nation's primary market will be directed to viagogo with the assurance that they are using the promoters' only official outlet for ticket resale. All tickets traded on this platform are checked if they are valid, cancelled and new tickets are sent to the new owner.

Eric Baker, CEO of viagogo, said: "We applaud Live Nation Netherland's commitment to creating a market-leading partnership that will deliver benefits for fans and both companies alike. Thanks to this agreement, fans now have the most secure access to the widest range of live events in the Netherlands."

Roberto Traxel, Chief Marketing Officer from Mojo Concerts agreed: "It is clear that fans want a convenient, safe and secure way to purchase tickets on the secondary market. This partnership with viagogo ensures that music fans can confidently purchase tickets for our events in the Netherlands through Live Nation Ticket Trade that are 100% guaranteed to be valid. Viagogo is a market leader in secondary ticketing and with their infrastructure we are confident that we will successfully deliver a much needed service to fans throughout the Netherlands."

Bron: http://mi2n.com/press.php3?press_nb=103978

Sex Pistols aim for Number One spot this week

2007-10-08T03:21:00.000-07:00

Sex Pistols aim for Number One spot this week

Could 'God Save The Queen' make a return to charts after 30 years?
57 minutes ago
The campaign to get Sex Pistols' classic punk anthem 'God Save The Queen' to Number One kicks off in earnest today (October 8).

The song is re-released today and NME.COM is calling on fans to help get it to the top of the charts on Sunday (October 14) by buying the track all week.

When the punk anthem was first released in 1977 it made it to Number Two in the singles charts - however, there was suspicion that the authorities had banned the track from topping the charts in the wake of the Queen's Silver Jubilee.

Strong rumours that the song's anti-authoritarian message was deemed unacceptable to 'the Establishment' have continued to this day.

Those responsible for collating the chart refused to deny the track had been banned from Number One, but Sex Pistols frontman John Lydon has told NME.COM he firmly believes the band were victims of a conspiracy.

"Let's be honest it, was Number One anyway," he declared. "They were taking us as a serious threat to an establishment and an industry. We were discussed in the Houses Of Parliament under the Treason Act!"

Well, now there's a chance to right that historical wrong and NME and NME.COM are calling on all music fans to send 'God Save The Queen' to the Number One spot in the UK.

The song will be re-released on special seven-inch vinyl and with downloads now counting towards the singles' chart, we want YOU to head down to the shops or download the track in your droves all of next week.

You can buy the song now from 7digital.com. Alternatively, downloaders like iTunes, etc, will also count towards the final chart placing.

You'll be in good company - practically every band we've mentioned the 'God Save The Queen' Number One campaign to has started gushing like a superfan about how much they love the song and how relevant it still is today.

From now until the chart is announced on October 14 we'll be running daily tributes from the likes of Foo Fighters, Nine Inch Nails, Blondie, Beastie Boys, Klaxons and many more who are backing the campaign.

Bron: http://www.nme.com/news/sex-pistols/31627

This week's releases: October 8 2007

2007-10-08T03:09:00.000-07:00

This week's releases: October 8 2007

Albums and singles released in the UK today
1 hour ago
The Sex Pistols re-release 'God Save The Queen' today (October 8).

NME.COM is campaigning to send the record to Number One after it was cheated out of the top spot back in 1977.

'God Save The Queen' was denied its rightful place at Number One because the authorities feared the punk anthem would spoil the Queen's Silver Jubilee celebrations 30 years ago.

We want to right that wrong by encouraging everyone to buy the record from today.

Either head down to your local record shop today or pre-order it now from 7digital.com/nme.

The Hives also release their new single 'Tick Tick Boom' today.

On the albums front Jack Penate releases 'Matinee' and Sugababes' new album 'Change' comes out.

Album releases :

Jack Penate - 'Matinee'
Sugababes - 'Change'
Pet Shop Boys - 'Disco 4'
Ed Harcourt - 'Until Tomorrow Then'
Band Of Horses - 'Cease To Begin'
Colbie Caillat - 'Coco'
The Fiery Furnaces - 'Widow City'
Jennifer Lopez - 'Brave'

Single releases:

Sex Pistols - 'God Save The Queen'
Metronomy - 'Radio Ladio Need Now Future'
The Hives - 'Tick Tick Boom'
Nine Black Alps - 'Bitter End'
Dave Gahan - 'Kingdom'
Natasha Bedingfield - 'Say It Again'

Bron: http://www.nme.com/news/this-week-releases/31594

Sony BMG Continues Digital, Mobile Push; Remains Protected

2007-10-08T02:56:00.000-07:00

Sony BMG Continues Digital, Mobile Push; Remains Protected

Sony BMG digital chief Thomas Hesse pointed to ramping digital sales during discussions last week, and offered little indication of a protection-free move. Hesse, an ardent backer of content protection, has remained rather quiet alongside DRM-free moves by both EMI Music and Universal Music Group. During a keynote discussion at the Digital Music Forum in Los Angeles, Hesse noted that US-based digital assets recently pushed past 30 percent, and projected a 40 percent ratio next year. But global digital sales are lower - 17 percent according to Hesse - and broader CD sales declines are dragging the larger average considerably.

During the chat, Hesse acknowledged a "disappointing year," a rather understated assessment of a near 15-percent drop in US-based recorded industry sales this year. But the executive assumed a rather optimistic tone, and pointed to massive potential across mobile formats - despite a softening ringtone. "We have seen a flattening of growth in the ringtone business this year, but we see much potential in ringback tones," Hesse said. "Ultimately, all-you-can-eat music services on the phone and sales of phones preloaded with music I think are the winning formulas," the executive said.

Bron: http://www.digitalmusicnews.com/stories/100707sony

As Recording Revenues Shrink, Artists Shift Accordingly

2007-10-08T02:55:00.000-07:00

As Recording Revenues Shrink, Artists Shift Accordingly
Recording labels are diversifying into related revenue streams like merchandising, advertising, and touring. Artists, on the other hand, have always viewed the market from a broader perspective. Still, it remains unclear just what role - if any - recorded assets will play in future artist revenue streams.

The question is important for artists at every level. Superstars are experiencing lowered recorded sales volumes, and many are experimenting heavily. Prince for example, has been using his albums as bait for bigger revenue opportunities, most recently by brokering a paid inclusion deal with the London-based Mail on Sunday. The unorthodox covermount concept yielded sales of more than three million.

Others are concentrating on bigger revenue sources like touring, a move that shifts the emphasis away from the studio and onto the road. "Where you really make your money is out on tour," said Jonathan Potter, executive director of the Digital Media Association (DiMA) during a recent discussion at the Digital Music Forum in Los Angeles. "The record is the presale for the concert - Bruce is making his money when you pay $400 for a concert ticket."

For smaller artists, the question is framed a bit differently. Music fans are used to free stuff, especially when it comes to unfamiliar content. In that light, recording assets are better as promotional tools, and lures towards other revenue generators. "If I develop five ways around the music to make money, then if I eventually get paid for the music itself, then I just found a sixth," said Timmy Grins, cofounder and vice president of Content at OnLoq.com.

Story by editor Paul Resnikoff in Los Angeles.

Bron:http://www.digitalmusicnews.com/stories/100407artists/view

SAVE | EMAIL | PRINT | RSS | REPRINTS

2007-10-06T05:20:00.000-07:00

Physical piracy has slumped in Spain over the last year, but illegal music downloading via the Internet is soaring, according to a new report.

The Spanish government's Ministry of Culture report on "cultural practices and habits in Spain 2006-2007" was released Oct. 1. The survey of 16,000 people aged over 15 shows that the "favourite cultural activity" of most Spaniards -- 87.9% of those interviewed -- is listening to music, followed by reading and visiting the cinema.

13.1% of those surveyed said they downloaded free music from the Internet -- a steep rise from the 3.6% who admitted illegal downloading one year ago. The ministry says this indicates some 4.9 million Spaniards have downloaded illegally.

The number of people who use a computer to listen to music has increased from 3.8% in the 2005-2006 ministry report to 20.3%, according to the latest survey. Some 38.3% of people have MP3-compatible music equipment in their homes, 28.9% have a mobile phone with a music player, and 13.7% of those surveyed use computers to watch videos.

With regards to physical recorded music, 22.5% of those surveyed said they had bought music in the previous quarter, most of them in bricks and mortar stores. Only 1.5% acknowledged they had bought pirated physical CDs or tapes in street markets or bars where people sell illegal music. The culture ministry report said that, although this figure is down on the 4.1% who recognised buying pirated music a year ago, it implies that some 578,000 Spaniards still purchase pirated physical music.

SOURCE

THIS YEAR'S MODELS

2007-10-06T05:19:00.000-07:00

The traditional label model took a beating this week in the United Kingdom, with three of Britain's most established bands announcing digital-only, no-label releases.

Together, Radiohead, Oasis and the Charlatans have accounted for U.K. and U.S. album sales of more than 33 million copies, according to the Official U.K. Charts Co. (OCC) and Nielsen SoundScan.

Radiohead's announcement that its much-anticipated new album, "In Rainbows," would be initially released Oct. 10 as a download from radiohead.com—with consumers able to name their own price—caused an instant frenzy among fans (see story, below).

But, coupled with the news that Oasis' new single, "Lord Don't Slow Me Down," would be a self-released, digital-only track, and that the Charlatans will give away their as-yet-untitled 10th album as a free download via modern rock radio network Xfm's Web site, industry execs were left contemplating the potential meltdown of their existing business model.

"This signals another nail in the coffin of the traditional music business," digital music expert/author Gerd Leonhard says. "Managers will take their acts directly to market, and they will do it in a way that will cut out middlemen that don't provide significant values."

But brick-and-mortar retailers remain philosophical about Radiohead cutting them out of the sales picture—at least until 2008, when a traditional CD release is planned. "If they come out with the CD, Newbury Comics will carry it," says Brighton, Mass.-based Mike Dreese, CEO of the 27-unit specialist chain. "I am not resentful for artists taking things under their own control."

U.K. market-leading retailer HMV will be selling the album when it is eventually made available, says its head of music Rudy Osorio. "The only frustration is that it gives a misleading signal to the media that this is the end of the music industry as we know it, which is patently not the case."

One precedent for consumers choosing their own price point is Canadian singer/songwriter Jane Siberry, now recording under the name Issa. Siberry suggests 99 cents per track, but according to statistics published on her Web site sheeba.ca, fans actually pay an average $1.18, with 14% opting to pay more than the suggested rate.

"In Rainbows" will not appear on The Billboard 200, although it will be eligible for the Top Digital Albums and Top Comprehensive Albums charts if the site reports its data to Nielsen SoundScan.

OCC chart director Omar Maskatiya explains that the album is not eligible to chart in the United Kingdom, as "Radiohead's store is not part of our reporting panel." To qualify, an album must also have a published net dealer price of at least £3.75 ($7.66).

No one in the Oasis camp would comment on the band's plans after this single, although Billboard understands the group is in negotiations with several majors and is ultimately likely to return to the label system.

But Charlatans frontman Tim Burgess says there's no turning back for his band. "A major label is not for us now," he says. The band hasn't received a fee from Xfm, he adds, but he estimates other income will increase as a result of the exposure. "Giving it away was us accepting the inevitable—people don't buy CDs anymore," he says. "Why let a record company get in the way of people getting the music?" ••••

SOURCE

Time Warner Cable Pushes Music Offering, Taps MusicNet

2007-10-06T04:10:00.002-07:00

Time Warner Cable is now pushing a digital music offering, and tapping MusicNet on the backend. The cable giant is unveiling Road Runner Music today, a subscription and download store, and offering compatibility components as well.

That means easy music access and centralized billing, a major competitive advantage. "I have spent the better part of my career in the cable business, and to see the advances made in providing consumers with such broad access to music is very satisfying," said Alan McGlade, president and chief executive of MediaNet Digital, of which MusicNet is now a division.

In total, Road Runner Music carries a catalog of 3 million tracks, a healthy collection that leaves few gaps. In terms of pricing, subscribers will face a $9.95 monthly charge, a sum that also includes access to streaming radio channels and music videos. Portability on three different devices is allowed for an extra $5 charge. Details on content protection were not discussed, though the offering most likely features WMA-protected tracks - and iPod incompatibility.

Time Warner most recently reported a subscriber volume of 14.7 across its video, high-speed data and residential telephone properties. The launch also involves Synacor, a technology company that frequently partners with MusicNet.

Story by news analyst Alexandra Osorio.

http://digitalmusicnews.com/stories/100407musicnet/view

Resnikoff's Parting Shot: Why Major Labels Just Lost

2007-10-06T04:10:00.001-07:00

The RIAA scored a quick victory on Thursday, and cooled future challenges in the process. Predictably, Cary Sherman underscored the illegalities of file-sharing, and the penalties that violators face. But that message has failed to resonate with music fans - young and old - no matter how resounding the ruling.

In fact, if the RIAA had lost this challenge, major labels would be better off. Why? In the face of a negative precedent, majors would be forced to craft more consumer-friendly approaches, accelerate their shift away from content protection, and adopt radically different access and pricing models. And they would stop committing valuable financial and legal resources towards an incredibly unsuccessful product preservation strategy.

Of course, deeper changes are happening in this market, and file-sharing is only one symptom. The underlying problem is that labels are simply having trouble selling recording assets - whether CDs, paid downloads, or even ringtones. Part of the problem is piracy, but a much larger issue surrounds increased competition for entertainment dollars, antiquated pricing strategies, and an incredibly hostile stance towards consumers.

Sure, everyone is a critic, especially when it comes to major labels. And to their credit, the big four are beefing new media departments and investing more heavily in digital initiatives. But RIAA-driven lawsuits are dragging progress, and generating serious consumer problems in the process. And labels are paying for this, despite the obvious and recurring problems.

If suing file-swappers curbed illegal sharing, propped CD sales, and directed traffic towards paid digital channels, then the strategy would make sense. But the exact opposite is happening. For starters, file-sharing volumes have been multiplying for years. And morality trips have had little effect on music fans - in fact, many consumers are hostile towards major labels as a result. Meanwhile, CD sales are dropping precipitously - more than 18 percent this year in the United States alone.

And paid channels are failing to patch the wound. Instead, they are mostly missing the target by charging higher prices and restricting access and usage (most downloads are still DRM-protected).

Some analysts wonder whether a market for recorded music will exist in a future marketplace. Certainly, a world of discrete, product-based recording purchases seems closer to obsolescence everyday. The internet is incredibly friendly towards open acquisition - and incredibly unfriendly towards controlled content strategies. The result is that music fans now have thousands of songs in their pockets, and most acquired these collections for free.

In that context, are any digital music sales strategies truly viable? Can Rhapsody ever gain traction alongside a 160GB iPod classic? Will OTA downloads ever compete against sideloaded content from a massive, PC-based collection of MP3s? Music fans are already stuffed on a oversupply of ubiquitous content - do they now need to buy more? Would you pay for a Big Mac after a gorging on a free buffet?

Most agree that if labels are to survive, it will only happen through massive transformation. The Universal Music Group of 2012 - if there is such a thing - will not be drawing its bread-and-butter from CD sales. Perhaps a successful transition is simply impossible, yet diversified revenue streams, mobile-based models, and broader licensing approaches offer hope.

But time is running out, and so are major label resources. The sobering reality is that labels can only endure so many years of double-digit declines - simple mathematics dictates it. And if labels are hoping to survive this massive market disruption, resources must flow out of money-losing, resource-draining strategies like individual infringement lawsuits.

Paul Resnikoff, Editor

http://digitalmusicnews.com/stories/100407parting/view

AOL Instant Messenger Upgrade Enables Shared Playlists

2007-10-06T04:07:00.000-07:00

AOL is now offering an instant messenger upgrade that enables shared, streaming playlists. AIM 6.5 allows a plug-in, AIM Tunes, which shares the collections of friends. The Windows-based release allows streaming on unprotected tracks only, a non-issue for many music fans. The result is a private channel, and a highly-customized streaming radio station.

The music enhancement is just one of several upgrades, including a number of messaging enhancements. AIM 6.5 allows text messaging from the chat client, and users can also broadcast messages to groups of friends. Of course, AIM remains incompatible with rival systems like Windows Live Messenger and Yahoo Messenger, as well as a recently-launched instant messenger from MySpace.

Story by news analyst Alexandra Osorio.

http://digitalmusicnews.com/stories/100407lala

Softening Ringtone Raises Questions on Mobile Music

2007-10-06T04:05:00.001-07:00

Mobile devices are supersaturated in many markets, and most consumers are inseparable from their phones. That has translated into huge wins on the data side, yet questions continue to surround the growth potential of mobile music formats. The sagging ringtone is drawing concern, and the future of concepts like OTA downloads remain uncertain.

The one-off ringtone has spilled billions in revenues, though the party appears to be slowly dying down. "It's been a great ride for everybody," said David Dorn, senior vice president of New Media Strategy at Rhino Entertainment during a recent executive discussion at the Digital Music Forum in Los Angeles.

The next phase is mostly unknown, though the decreases bode poorly for more complicated formats - at least in the US and Europe. Over-the-air (OTA) formats have performed only modestly - on both sides of the Atlantic - though expectations may have been set too high by a strapped recording industry. "We are still dealing with a business that has profound challenges," explained Adam Sexton, chief marketing officer at mobile music backend provider Groove Mobile.

That puts the pressure on "the next big thing," yet this platform remains in its infancy. "Mobile music is still less than one percent of the industry," said Dave Ulmer, senior director of Entertainment Products at Motorola Media Solutions.

Story by editor Paul Resnikoff in Los Angeles.

http://digitalmusicnews.com/stories/100407mobile/view

As Recording Revenues Shrink, Artists Shift Accordingly

2007-10-06T04:04:00.000-07:00

Recording labels are diversifying into related revenue streams like merchandising, advertising, and touring. Artists, on the other hand, have always viewed the market from a broader perspective. Still, it remains unclear just what role - if any - recorded assets will play in future artist revenue streams.

The question is important for artists at every level. Superstars are experiencing lowered recorded sales volumes, and many are experimenting heavily. Prince for example, has been using his albums as bait for bigger revenue opportunities, most recently by brokering a paid inclusion deal with the London-based Mail on Sunday. The unorthodox covermount concept yielded sales of more than three million.

Others are concentrating on bigger revenue sources like touring, a move that shifts the emphasis away from the studio and onto the road. "Where you really make your money is out on tour," said Jonathan Potter, executive director of the Digital Media Association (DiMA) during a recent discussion at the Digital Music Forum in Los Angeles. "The record is the presale for the concert - Bruce is making his money when you pay $400 for a concert ticket."

For smaller artists, the question is framed a bit differently. Music fans are used to free stuff, especially when it comes to unfamiliar content. In that light, recording assets are better as promotional tools, and lures towards other revenue generators. "If I develop five ways around the music to make money, then if I eventually get paid for the music itself, then I just found a sixth," said Timmy Grins, cofounder and vice president of Content at OnLog.com.

Story by editor Paul Resnikoff in Los Angeles.

http://digitalmusicnews.com/stories/100407artists/view

Does A Merged Sony BMG Hurt The Indies?

2007-10-06T04:02:00.001-07:00

If indie label associations like Impala are to be believed, the market -- and especially consumers, since their well being is the basis of antitrust regulation -- is worse off then before the Sony BMG merger in 2004. If we look at the album market share as an indicator of control in the recorded music industry (these numbers are only for the United States), it is clear that the merger has left the combined company with a weaker market position. (There is much more to the story that just album sales, but for the sake of this argument I will use only market share based on album sales. Digital downloads were in too much of an infancy stage in 2004.)

The Sony BMG merger was completed on August 5, 2004. The week before the merger, Sony's market share was 13.76% and BMG's share was 16.02%. The pre-merger combined album market share was 29.78%.

Six months later in February 2005, before any of the control and operational benefits would normally have time to kick in, Sony BMG's market share had dropped to 26.45%. Remember that the combined company had some integration problems.

Six months after that, in August of 2005, Sony BMG's album market share had dropped to 25.66%. By Christmas 2006, its share has dropped to 25.32%. (Note that very slight drop between August 2005 and December 2006. If you believe the company's rootkit problem hurt its market share, think again. Sony BMG's rootkit fiasco hit in November 2005 and appears to have had a negligible impact on market position.)

Sony BMG's current album market share is 21.76%. Again, the pre-merger combined share was 29.78%, a full eight points higher than where it stands today. Indies have gone from 17.58% in August 2004 to 20.55% today. (A sliver of that increase can probably be attributed to some majors' acquisition of labels, such as Roadrunner by Warner Music Group, during that time span.)

The reasons for Sony BMG's share erosion could range from poor releases to poor management. Regardless, it is clear from these numbers that the merger of Sony BMG has actually been beneficial to the U.S. market shares of its competitors.

An Impala presentation (read PowerPoint file) lists a strengthened "situation of collective dominance," "high barrier to entry" and "few incentives to compete on price" as some of reasons for its objection to the merger. Impala believes "increased concentration impedes market access" and "reduces consumer choice," and that music risks being devalued (because of bundling). The market decline is blamed on majors' behavior and their short-term vision. Impala predicts marketing costs and bidding prices for artists will increase. Oh, and here's the clincher: It will be easier to collude.

That "collusion" has helped transfer part of Sony BMG's market share to indies and the other three majors. Before Impala predicts the worst, it should reflect upon the numbers and recognize the industry's increasingly level playing field.

http://www.coolfer.com/blog/

Time Warner Cable Starts Music Subscription Service

2007-10-06T03:57:00.001-07:00

By Meg Tirrell

Oct. 4 (Bloomberg) -- Time Warner Cable Inc. began selling music to customers of its Road Runner Internet-access service, stepping up competition with Apple Inc.'s iTunes online store.

Road Runner subscribers can pay $9.95 a month for unlimited access to 3 million songs, ad-free radio and music videos, New York-based Time Warner Cable, the second-largest U.S. cable service, said today in a statement.

Time Warner Cable is jumping into an industry dominated by Apple. In 2006, iTunes sold 70 percent of tracks that were downloaded to computers, according to researcher NPD Group Inc. in Port Washington, New York. The new service isn't compatible with Apple's iPod devices, said Ann Garrett, spokeswoman for MediaNet Digital, the company providing the technology.

User fees will cover the costs of royalties paid to record labels, Garrett said. ``This is on all ends a for-profit business,'' she said.

Time Warner Cable, a unit of New York-based Time Warner Inc., gained 17 cents to $33.41 at 4:05 p.m. in New York Stock Exchange composite trading. Its shares have lost 19 percent this year.

MediaNet, operator of the MusicNet music subscription service, is owned by New York private equity firm Baker Capital. It is working with technology partner Synacor Inc. in Buffalo, New York.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atAPHAzqcmnQ

Four reasons why the RIAA won a jury verdict of $220,000

2007-10-06T03:55:00.001-07:00

Posted by Declan McCullagh

The Recording Industry Association of American got a chance on Thursday to show everyone just how heavy and intimidating the legal club of copyright law can be.

As my colleague Greg Sandoval wrote a few hours ago, a Minnesota woman named Jammie Thomas was sued by the RIAA for allegedly making available some 1,702 songs through the Kazaa network (though only 24 were at issue in the case). A federal jury sided with the RIAA and returned a verdict of $222,000.

I've put some recent documents in the case online here for your perusal.

So why did this verdict happen?

1. The RIAA was able to match a username and IP address with Thomas. There's not always a 1:1 mapping between IP address and a specific computer, of course, as people who are behind a corporate firewall probably know. But home users tend to be more easily identified, and it's trivial nowadays for a lawyer armed with a subpoena to find out who they are. Large Internet service providers have entire departments to respond to these requests.

The fact that Thomas publicly used the nickname "tereastarr" including as a tereastarr@hotmail.com e-mail address -- and then chose it as a Kazaa username as well -- may have helped the RIAA immeasurably. If she had used a Kazaa username of "anonymous" instead, I wonder if the jury would have been more likely to take her side. The jurors seem to have flatly rejected (and reasonably so) her lawyer's claim of possible IP address spoofing.

2. The RIAA's jury instructions. Both the RIAA and the defense submitted proposed jury instructions (see my link above). Both are pretty similar because of the constraints of 8th Circuit precedent.

The key difference is that the RIAA offered two suggestions, which would eventually become Jury Instructions 14 and 15, which the defense left out. Once U.S. District Judge Michael Davis sided with the RIAA on that crucial point, which he did, and adopted its suggestions, the recording industry had a much easier time of it. Those two crucial instructions are:

JURY INSTRUCTION NO. 14: The act of downloading copyrighted sound recordings on a peer-to-peer network, without license from the copyright owners, violates the copyright owners' exclusive reproduction right.

JURY INSTRUCTION NO. 15: The act of making copyrighted sound recordings available for electronic distribution on a peer-to-peer network, without license from the copyright owners, violates the copyright owners' exclusive right of distribution, regardless of whether actual distribution has been shown.

3. "Making available." Jury Instruction 15 is more important. It says that the RIAA doesn't need to offer any evidence that rapacious Kazaa users actually downloaded songs from Thomas' computer. All they need to do is claim that Thomas left the songs in a publicly accessible directory where they could have been downloaded. Big difference.

This is not an outlier, by the way. A Pennsylvania judge came up with the same making-available-is-infringement conclusion in February. Marybeth Peters of the U.S. Copyright Office has argued that "making (a file) available for other users of a peer to peer network to download... constitutes an infringement of the exclusive distribution right, as well of the reproduction right." Judge Davis' interpretation of the law may not be the only one, but it's a defensible one. Here's his reasoning.

4. Copyright law is harsh. Once the jury decided that Thomas was behind the IP address in question, there was almost certainly going to be a stiff fine--of at least $18,000. In this case, the jury was given these instructions:

JURY INSTRUCTION NO. 22: In this case, each plaintiff has elected to recover "statutory damages" instead of its actual damages and profits. Under the Copyright Act, each plaintiff is entitled to a sum of not less than $750 or more than $30,000 per act of infringement (that is, per sound recording downloaded or distributed without license), as you consider just. If, however, you find that the defendant's conduct was willful, then each plaintiff is entitled to a sum of up to $150,000 per act of infringement (that is, per sound recording downloaded or distributed without license), as you consider just.

In determining the just amount of statutory damages for an infringing defendant, you may consider the willfulness of the defendant's conduct, the defendant's innocence, the defendant's continuation of infringement after notice or knowledge of the copyright or in reckless disregard of the copyright, effect of the defendant's prior or concurrent copyright infringement activity, and whether profit or gain was established.

In this case, the jurors chose $9,250 in damages for each of the 24 songs, or $222,000. They could have gone as low as $18,000 in total or as high as $720,000, and seemed to want to pick something closer to the middle.

So what happens next? Thomas can appeal. Or, if the RIAA's smart, its lawyers will offer her some kind of not-entirely-punishing settlement that's a tenth of today's damage award and strongly encourage her to take it. That would avoid the worst of the negative publicity, but still let the record labels wave around a pretty big club.

http://www.news.com/8301-13578_3-9791764-38.html?tag=nefd.blgs

Major record labels 'stifling creativity' say independents

2007-10-06T03:53:00.000-07:00

By Ciar Byrne, Arts and Media Correspondent
Published: 05 October 2007

Independent record labels have warned that creativity in the music industry is being stifled by increasing consolidation following the European Commission's decision to approve the 2004 merger of Sony BMG.

Yesterday's ruling follows the steady acquisition of some of the best-known indies by major record labels, including Universal Music's purchase of Sanctuary, which manages Elton John, and V2, whose clients include Paul Weller and the Stereophonics.

Impala, the trade body which represents indies across Europe, has warned that major labels are not as good at discovering artists. This week's ruling follows a complaint from Impala, upheld by the European Court of First Instance, that the 2004 Sony BMG merger reduced competition.

It was widely expected that the European Commission would introduce a number of remedies to address concern over the increasing dominance of the big four record companies – Universal, Sony BMG, EMI and Warner – but it approved the merger without any conditions. The ruling has also increased speculation over a merger between Warner Music and EMI.

"Twenty years ago the market was balanced between the majors and big competitive independents. There was lots of new music and it was a really interesting market for consumers," said Helen Smith, the secretary general of Impala. "Today many consumers are not fascinated by what's going on. A part of that undoubtedly comes from concentration, which leads to complacency. It's not in the interests of big companies to be innovative."

The concern for indies is that the major labels have the financial clout to ensure their records are played on prime-time radio and featured prominently in record stores. Despite hopes that the internet would make it easier for indies to reach an audience, that is also dominated by the big record companies, Impala said.

Meanwhile, major record labels continue to snap up indies that are struggling to maintain their business in an overcrowded market.

Last week, the Office of Fair Trading launched an investigation into Universal's £7m acquisition of V2. Universal also agreed to purchase Sanctuary Music Group, the label founded by Sir Richard Branson in a £44.5m deal that includes £59.8m of debt.

In a submission to the OFT, the Association of Independent Music (AIM), which has 800 members who represent bands including the White Stripes, the Kaiser Chiefs and the Arctic Monkeys, warned against the "creeping dominance" of Universal, which it said often controls 40 per cent or more of the Top 75.

"Key independents like Island, Chrysalis, Sanctuary, Mute, Mushroom and V2 have been acquired by the majors over the years," said Ms Smith. "Universal is currently on a huge shopping spree. The effect of that is to reduce the competitiveness of the market.

"The independents are very strong at discovering new artists. They just need a fair crack at the whip. Let the consumer decide. But if the consumer can't hear what you've got to offer, they can't make a decision."

AIM's chairman, Alison Wenham, said British music was a "cultural asset" and called on the Government to review competition policy. "The UK is one of the finest laboratories in the world for new artists and I'm concerned the infrastructure will deny that opportunity," she said.

The Big Four

Universal Music

Owned by Vivendi of France, Universal's labels include Island, Def Jam, Polydor, Motown and Deutsche Grammophon.

Artists include Amy

Winehouse, Bon Jovi, P J Harvey, Kanye West, Kaiser Chiefs, Katie Melua, Razorlight and Stevie Wonder.

* Sony BMG

Fifty per cent-owned by Bertelsmann AG and 50 per cent by Sony Corporation of America, Sony BMG is organised into three music groups, RCA, Columbia and Epic. Labels include Jive, Deltasonic, 1965 Recordings, Syco Music, Cheeky Records and Phonogenic. Artists include Will Young, Justin Timberlake, Christina Aguilera, Bruce Springsteen, Kasabian, the Editors, Outkast, pictured, and Shakira.

* EMI

EMI Music's labels include Angel, Astralwerks, Blue Note, Capitol, Parlophone and Virgin. The company's roster of artists includes the Beatles, the Rolling Stones, Norah Jones, Robbie Williams, K T Tunstall, Gorillaz, Coldplay and Joss Stone.

* Warner Music

Labels that come under the Warner Music umbrella include Asylum, Atlantic, Bad Boy, Roadrunner, East West, Lava, Rhino, Rykodisc, Sire, Cordless and Maverick. Artists include Led Zeppelin, Bjork, Missy Elliott, Lil' Kim, Green Day andthe Red Hot Chili Peppers.

http://arts.independent.co.uk/music/news/article3028729.ece#2007-10-05T00:00:01-00:00

Jury Finds Jammie Thomas Liable for Infringement - Awards $222,000 To RIAA In First Trial Case

2007-10-06T03:50:00.001-07:00

October 4th, 2007
Jammie Thomas was found liable for copyright infringement in the nation’s first file-sharing case to go before a jury. Twelve jurors decided that the Minnesota woman, a single mother of two, must pay $9,250 for each of 24 shared songs that were the subject of the lawsuit, amounting to a whopping $222,000 in penalties.

After the verdict was read, Thomas with bowed head left the courthouse without comment. The jurors also declined to talk to reporters. The verdict, coming after two days of testimony and about five hours of deliberations, was a mixed victory for the RIAA, which has brought more than 20,000 lawsuits in the last four years as part of its zero-tolerance policy against pirating. The jury could have penalized her for up to $3.6 million in damages, or awarded as little as $18,000.

The outcome is likely to embolden the RIAA, which began targeting individuals in lawsuits after concluding the legal system could not keep pace with the ever growing number of file-sharing sites and services. The case, however, did set legal precedents favoring the industry.

In proving liability, the industry did not have to demonstrate that the defendant’s computer had a file-sharing program installed at the time that they inspected her hard drive, nor did they have to show that the defendant was at the keyboard when RIAA investigators accessed Thomas’ share folder. The judge in the case also ruled that jurors may find copyright infringement liability against somebody solely for sharing files on the internet. The RIAA did not have to prove that others downloaded the files.

The jury found her liable after receiving evidence her internet protocol address and cable modem identifier were used to share some 1,700 files. According to testimony, Thomas replaced her hard drive weeks after RIAA investigators accessed her share file and discovered 1,702 files. The RIAA sued on just 24 of those files.

http://www.futuremusic.com/blog/

Starbucks Rolls Broadened Music Strategy, Giveaways

2007-10-04T04:38:00.000-07:00

Starbucks Rolls Broadened Music Strategy, Giveaways

Starbucks rolled a number of music-focused initiatives this week, including a much-anticipated, $50 million iTunes Store giveaway. Already, millions of freebie download cards have been distributed, and each day features a fresh song. Discussing the play on Wednesday, Starbucks Entertainment president Ken Lombard hailed the program as a boost to the broader coffee-buying experience. "Everything we've done with music is about the experience," Lombard said during a keynote interview at the Digital Music Forum in Hollywood on Wednesday.

That means happier coffee customers, and a competitive edge, though Lombard was quick to dismiss loss-leader strategies. "Everything we approach is business positive," Lombard said. "We're not interested in a loss-leader philosophy." Accordingly, labels and artists are footing the bill on the play, a detail that Lombard characterized as "tremendously supportive".

Additionally, Starbucks is also positioning album download cards for sale, an easy stocking stuffer. Once purchased, the buyer - or gift recipient - can redeem the download on iTunes. That is part of a growing Apple partnership, one that also includes open WiFi access for iPhone-based iTunes purchases at select locations. The gratis wireless program also enables on-the-spot downloads of music currently playing in the store.

Starbucks certainly has the traffic, and a broader retail imprint than any other in the space. But is that translating into meaningful sales? Inaugural Starbucks label artist Paul McCartney achieved sales of roughly 500,000 on his release, Memory Almost Full, a result that seems lukewarm given the comprehensive, global marketing and sales blitz. Lombard credited Starbucks for contributing roughly 45 percent of total McCartney sales, though deeper questions related to the pre-recorded CD remain.

Meanwhile, the executive pointed to strong sales on a recently-released Joni Mitchell album, and promised younger signings ahead. "We know eventually we are going to sign an artist under 60 years old," Lombard joked.

Report by editor Paul Resnikoff in Los Angeles.

Bron: http://www.digitalmusicnews.com/stories/100307starbucks/view

European Commission Officially Approves Sony BMG Tie-Up

2007-10-04T04:37:00.001-07:00

European Commission Officially Approves Sony BMG Tie-Up

The European Commission has now officially re-approved the Sony BMG joint venture, an expected formality. The green light follows an original approval in 2004, though independent label group Impala sparked a reexamination last year. "This investigation represents one of the most thorough analyses of complex information ever undertaken by the Commission," said Neelie Kroes, competition commissioner for the European Union. "It clearly shows that the merger would not raise competition concerns in any of the affected markets." Over the past few years, CD sales have started to drop precipitously, a factor that affected the recent outcome. Sony BMG is a joint venture between Bertelsmann and Sony Corp.

Story by news analyst Alexandra Osorio.

Bron: http://www.digitalmusicnews.com/stories/100307ec/view

Music industry attacks Sunday newspaper's free Prince CD

2007-10-03T04:46:00.000-07:00

Katie Allen, media business correspondent
Friday June 29, 2007
The Guardian

The eagerly awaited new album by Prince is being launched as a free CD with a national Sunday newspaper in a move that has drawn widespread criticism from music retailers.
The Mail on Sunday revealed yesterday that the 10-track Planet Earth CD will be available with an "imminent" edition, making it the first place in the world to get the album. Planet Earth will go on sale on July 24.

"It's all about giving music for the masses and he believes in spreading the music he produces to as many people as possible," said Mail on Sunday managing director Stephen Miron. "This is the biggest innovation in newspaper promotions in recent times."

The paper, which sells more than 2m copies a week, will be ramping up its print run in anticipation of a huge spike in circulation but would not reveal how much the deal with Prince would cost.
One music store executive described the plan as "madness" while others said it was a huge insult to an industry battling fierce competition from supermarkets and online stores. Prince's label has cut its ties with the album in the UK to try to appease music stores.

The Entertainment Retailers Association said the giveaway "beggars belief". "It would be an insult to all those record stores who have supported Prince throughout his career," ERA co-chairman Paul Quirk told a music conference. "It would be yet another example of the damaging covermount culture which is destroying any perception of value around recorded music.

"The Artist Formerly Known as Prince should know that with behaviour like this he will soon be the Artist Formerly Available in Record Stores. And I say that to all the other artists who may be tempted to dally with the Mail on Sunday."

High street music giant HMV was similarly scathing about the plans. Speaking before rumours of a giveaway were confirmed, HMV chief executive Simon Fox said: "I think it would be absolutely nuts. I can't believe the music industry would do it to itself. I simply can't believe it would happen; it would be absolute madness."

Prince, whose Purple Rain sold more than 11m copies, also plans to give away a free copy of his latest album with tickets for his forthcoming concerts in London. The singer had signed a global deal for the promotion and distribution of Planet Earth in partnership with Columbia Records, a division of music company Sony BMG. A spokesman for the group said last night that the UK arm of Sony BMG had withdrawn from Prince's global deal and would not distribute the album to UK stores.

A Label's Last Days

2007-10-03T01:42:00.000-07:00

A brief statement from Universal Music Group on Sept. 5 hammered the last nail into the coffin of Sanctuary Group's much-vaunted "360-degree" business model, leaving artists and staffers in limbo.

"In consultation with senior management of the Sanctuary Group," UMG said, "it has been decided that its Sanctuary Records U.K. division will no longer continue as a stand-alone, front-line record label."

Although Universal declines to comment on its Sanctuary plans, informed sources say solid-performing divisions like merchandising business Bravado, booking agency Helter Skelter and management arm Trinifold will become stand-alone UMG operations.

The major's ambition is "to grow [that side of the] business," an executive close to the deal says, adding that UMG will begin that process "very soon." However, the source emphasizes, "Universal doesn't need a front-line Sanctuary record company."

Sanctuary's front-line labels have long underachieved, with one recent notable exception being the European performance of Morrissey's 2004 album "You Are the Quarry."

Morrissey is no longer with Sanctuary, but other artists on the roster have been told to "sit tight," says 19 Management's Mark Langthorne, who handles former Soft Cell singer/songwriter Marc Almond.

Earlier this year, Almond signed a three-album deal with Sanctuary imprint Sequel, which released his "Stardom Road" set in June. UMG has "about three months left" to decide if it wants to continue with Almond, Langthorne says. "We can't decide anything until they decide to take up the option," he says. "I hope they don't. [It would be] fantastic to go out and get a new deal; we have two other companies waiting."

Sequel also issued former Cranberries vocalist Dolores O'Riordan's debut solo album, "Are You Listening?," in May. But, her manager Don Burton says, "we're in limbo at the moment. We don't have a label. We're raring to go with a new single, the video is done, and we're stuck. Until I hear back from Universal, I don't know what plans they have."

Universal has until November to pick up O'Riordan's option, Burton says. Ironically, he adds, "we went with an indie because the Cranberries spent their entire career with Universal and we wanted to go with something smaller."

Rod Smallwood and Andy Taylor co-founded Sanctuary in 1976 as an artist management business. Three years later, the pair signed Iron Maiden for management, and they still handle the EMI-signed act.

After acquiring U.K. catalog specialist Castle Communications in 2000, Sanctuary embarked on a bullish series of label, publishing, management and merchandising acquisitions. It boasted annual revenue in excess of £220 million ($396 million) at its peak in 2003-04. But subsequent financial problems (Billboard, June 17, 2006) brought about an operating loss of £56.7 million ($107.2 million) in 2005-06.

Sanctuary divested its recording studio and publishing interests, plus its stake in the Rough Trade label, before UMG bought it Aug. 2 for £44.5 million ($87.7 million), and took on £60 million ($120 million) of debt.

Sanctuary began winding down front-line U.S. operations earlier this year. UMG has now entered a period of consultation regarding redundancies with the group's 60-plus U.K. staffers. The catalog unit—handling repertoire from Black Sabbath, Motörhead and the Kinks—will operate alongside Universal Music U.K.'s existing catalog division. But a source close to the deal admits few Sanctuary Records jobs will remain.

Billboard understands senior casualties include Sanctuary Records Group Worldwide CEO Joe Cokell and Sanctuary Records Group COO Roger Semon; neither could be reached, and Universal declined to comment.

As the survivors wait to learn their fate, one insider says: "The walls have finally caved in." But, he adds, "it's one of life's great mysteries it's taken so bloody long."

SOURCE

First trial starts over sharing copyrighted music online

2007-10-03T01:40:00.000-07:00

DULUTH, Minn. - The nation’s largest record companies took their fight against illegal downloads to court for the first time Tuesday, targeting a Minnesota woman they say improperly shared nearly 2,000 songs online.

Jennifer Pariser, head of litigation and antipiracy at Sony BMG, portrayed the federal copyright trial as a fight for survival.

‘‘It is imperative for Sony BMG to combat this problem,’’ Pariser, lead attorney for a coalition of music companies, said in her opening statement in the civil trial. ‘‘If we don’t, we have no business anymore.’’

Jammie Thomas, a 30-year-old mother of two from Brainerd, Minn., told reporters outside the courtroom that she was ‘‘innocent.’’

Thomas said that instead of paying a settlement to the record companies she had spent the same amount on her attorney’s retainer.

‘‘I refuse to be bullied,’’ she said.

The trial was expected to last just a few days.

Record companies including Capitol Records Inc. and Warner Bros. Records Inc. as well as Sony BMG, accuse Thomas of making 1,702 songs available on her Kazaa file-sharing account in 2005 without permission. In court, they will try to prove Thomas shared 25 specific songs in violation of copyrights the companies hold.

Thomas’s computer hard drive will be a key to the case. She says she replaced it after she had some computer problems in 2005. The record companies say she was trying to cover her tracks after they sent her messages saying she was illegally distributing their files.

Thomas, who works for the Department of Natural Resources of the Mille Lacs Band of Ojibwe, is at risk for a judgment of more than $1.2 million. The recording association is seeking damages set under federal law, of $750 to $30,000 for each copyright violation.

A recording industry group says record companies have brought more than 26,000 actions against people for downloads that violated copyrights, with most of the defendants settling by paying a few thousand dollars.

The record companies claim that on Feb. 21, 2005, online investigators at SafeNet Inc., found 1,702 files shared under what they said was a Kazaa account being used by Thomas. The songs included Swedish death metal band Opeth, German industrial group VNV Nation and American rock band Chevelle.

‘‘This individual was distributing these audio files for free over the Internet under the username 'tereastarrKaZaA' to potentially millions of other KaZaA users,’’ according to court papers.

Music downloads, both legal and illegal, have dampened sales of recorded music in recent years. In 2001, the industry persuaded a federal judge to shut down Napster, which made copyrighted music available on its own computers. Since Napster reopened, it has charged users for music.

The file-sharing programs that emerged to take Napster’s place point users to files available on a variety of computers and servers, instead of leading to files in a single location.

But the sharing programs’ impact has been the same: Millions of songs are being downloaded for free instead of purchased legally.

The recording industry began naming individual file-sharers users in lawsuits in September 2003. The industry association says the lawsuits have helped. But the number of households that have downloaded music with file-sharing programs has risen from 6.9 million in April 2003 to 7.8 million in March 2007, according to industry tracking.

Thomas’s 12-member jury includes an amateur musician and several people who have paid to download music from legally sanctioned sites. The musician, who works as an English teacher in Mora, Minn., found himself answering extra questions from the record company attorneys during jury selection.

They seemed satisfied after he said, ‘‘I personally never downloaded music illegally. I’ve paid for everything I’ve downloaded.’’

One prospective juror who acknowledged using a file-sharing program to download music a few years ago was dismissed from the jury pool.

A few jurors said they knew little about the Internet, much less music downloads.

‘‘I am the computer illiterate in the family,’’ one juror said.

There have been no claims that Thomas’s two children, ages 11 and 13, were involved in sharing music.

SOURCE

Getty Unveils New Licensing Service

2007-10-03T01:39:00.000-07:00

Getty Images unveiled its new music licensing service gained though it's acquisition of Pump Audio this June.

Called Soundtrack, the system provides an online, direct licensing platform for music provided by a host of independent and unsigned artists, for use in TV or film productions, advertising spots or other projects.

Getty executives say the company will soon expand its music initiatives to include content from major labels and publishers as well, in addition to other music-related partners, but gave no indication as to when that may occur.

SOURCE

JASRAC Launch Copyright Web Site

2007-10-03T01:38:00.000-07:00

A consortium of 17 Japanese copyright-management organizations, including local authors society JASRAC, is setting up a Web site that will allow members of the public to search for copyright information concerning literary works, photos and musical compositions.

Jasrac claim the site, due to be launched in April 2008, will be Japan's most comprehensive one-stop source for information on copyrighted content, adding that it will include the society's own 2.2 million song database. It will also provide users with contact information for rights-holders and give details of which conditions their works can be used under.

The database will also include information on works already in the public domain. The consortium, which includes local labels body the Recording Industry Assn. of Japan and the Music Publishers Assn. of Japan, says it also hopes to provide, under certain conditions, information on rights-holders who do not belong to any of the 17 organizations.

SOURCE

Radiohead's new album: band still to sign record deal?

2007-10-02T04:23:00.000-07:00

Radiohead's new album: band still to sign record deal?

EMI could sign Thom Yorke and co after free album release

Despite the news Radiohead will release 'In Rainbows' through their website and fans decide how much to pay, record label EMI have suggested they could still sign the band on a traditional record deal.

A spokesperson for the label told Music Week that the label were "continuing to discuss further plans" with the band.

Music industry experts have already speculated how Radiohead's new album could change the way music is sold. Following the band's announcement, The Charlatans also revealed that they would give their forthcoming new album away free.

You can now get a sneak preview of what the new Radiohead album sounds like on the NME Office Blog.

And, as you can name your own price, tell us how much you will pay for the new album.

Finally, find out on NME.COM whether 'In Rainbows' will be chart eligible and what the music industry's reaction is to Radiohead's unique release.

Keep checking NME.COM for the latest news on the new Radiohead album release.

Bron: http://www.nme.com/news/radiohead/31501

Questions Surround France Telecom, iPhone Deal

2007-10-02T04:19:00.000-07:00

Questions Surround France Telecom, iPhone Deal

France Telecom chief executive Didier Lombard pointed to an exclusive iPhone pact last week, though questions now surround the purported deal. The arrangement would involve France Telecom-owned Orange, though sticky contract points appear to be stalling negotiations. And unlike other European deals involving O2 in Britain and T-Mobile in Germany, the France Telecom tie-up has yet to be formally announced. Both groups may have been planning a splashy unveiling this week at the Apple Expo in Paris.

Commenting on the negotiations, French daily Challenges noted that disagreements could threaten a critical, holiday release. Discussions related to the commission that Apple would receive on iPhone subscriptions are reportedly snagging the talks, according to the paper. But the issue is far more complicated than that, as it also involves tricky French laws related to service and product tying - a core practice of the mobile phone industry. That could make it more difficult for Apple to successfully execute an Orange exclusive, at least on a full-price, non-subsidized device.

Challenges.fr, "Exclusif: Orange et Apple au bord"

Bron: http://www.digitalmusicnews.com/stories/092707france/view

British Airways, Leap Music Push Artist, Digital Single

2007-10-02T04:18:00.000-07:00

British Airways, Leap Music Push Artist, Digital Single

The modern music industry features a number of unlikely entrants, including Starbucks, Wal-Mart, Electronic Arts, and many others. Of course, the glitter of song has always attracted interest from non-traditional players, in part because of the emotional resonance that music carries with consumers. But a democratized digital landscape is making it easier than ever for newer players to enter the fold.

Among the latest to dabble is British Airways, a company that competes aggressively to build customer affinity. The airline is now releasing a digital download from singer-songwriter Brian Hodge, part of a collaborative effort with Leap Music. The track, "Angel Eyes," is being distributed by partner state51 to various outlets, including iTunes and Napster.

The track was created specifically for a British Airways marketing campaign, and threads aspects of "The Flower Duet" by Delibes, from the opera Lakmé. That makes sense, given that the operatic song is part of the British Airways sonic signature. "It perfectly encapsulates the message of British Airways' new advertising campaign, but also stands up as a single with strong radio airplay potential in its own right," said Richard Kirstein, managing director of Leap Music. Distribution efforts are now underway.

Story by news analyst Alexandra Osorio.

Bron: http://www.digitalmusicnews.com/stories/093007ba/view

More Details Emerge on Imeem, Sony BMG Deal

2007-10-02T04:17:00.000-07:00

More Details Emerge on Imeem, Sony BMG Deal

More details are now surfacing on the recent tie-up between social networking upstart Imeem and major Sony BMG. The deal first leaked last week, though the companies have now released official details on the partnership. From a top level, the agreement authorizes Imeem users to create and share streaming playlists containing tracks from Sony BMG artists. And according to Steve Jang, vice president of Marketing and Business Development at Imeem, the licensing pact covers both video and audio components. "We've gotten the user upload and streaming licenses for both audio and video," Jang told Digital Music News on Monday.

Jang indicated that proper publishing licenses were also secured through performance rights organizations ASCAP, BMI, and SESAC, though conversations are also happening with major publishing houses. Those discussions could pave the way for future music concepts, though streaming currently defines the music initiative. Meanwhile, Jang was bullish on ad-supported digital music, and pointed to incredibly successful offline models involving terrestrial radio and MTV. "I'm a big proponent of ad-supported music," Jang said. "It's been out there, but it hasn't been out there online."

Bron: http://www.digitalmusicnews.com/stories/100107imeem/view

Bertelsmann Considers Music Publishing Return

2007-10-02T04:16:00.001-07:00

Bertelsmann Considers Music Publishing Return

Bertelsmann is now considering a reentry into music publishing, despite the recent sale of its BMG Music Publishing unit. The German media giant offloaded the division as part of a larger plan to buyout minority ownership shares and avoid a public offering. But according to a recent report in the Financial Times Deutschland, Bertelsmann would have preferred to retain the property, and is actively considering a publishing reinvestment.

Music publishing offers a relatively stable revenue stream, a virtue recognized by other major label groups. That stands in stark contrast to the rather rocky recording sector - and Bertelsmann has experienced its share of ups-and-downs through its joint venture label partnership, Sony BMG. Meanwhile, Bertelsmann is not permitted to establish a publishing group until 2009 based on various non-compete clauses. That feels like an eternity in the current market, though Bertelsmann may have some interesting acquisition options by the end of next year.

Bron: http://www.digitalmusicnews.com/stories/100107bert/view

Classical Music Etailer ArkivMusic Grabs Warner Gems

2007-10-02T04:15:00.001-07:00

Classical Music Etailer ArkivMusic Grabs Warner Gems

ArkivMusic, an online retailer specializing in rare classical recordings, has recently licensed the Warner Music Group catalog. The deal involves Warner Classics, a broad collection that includes the back catalogs of Teldec Classics and Erato Disques. "Warner Classics is very pleased to be able to offer many treasured recordings from our catalog through ArkivMusic's ArkivCD program," said Lisa Nauful, US label manager at Warner Classics & Jazz. "It is a wonderful opportunity and refreshing to find a new outlet for noteworthy and sought-after recordings that are not currently available in the US market."

The ArkivMusic model enables cost-efficient inventory management on obscure albums. If a customer requests a hard-to-find album, Arkiv creates, packages and ships the disc on demand, a structure that minimizes inventory and overhead concerns. It also breathes life into the theory of the Long Tail, a concept that sometimes runs into practical and financial snags. "When labels delete CDs from their catalogs, it's all about sales numbers and rarely about quality," explained ArkivMusic president Eric Feidner. Arkiv has now secured licensing arrangements with all four major labels.

Story by news analyst Alexandra Osorio.

Bron: http://www.digitalmusicnews.com/stories/100107arkiv/view

Samsung Delivers Latest US-Based Mobile Music Phone

2007-10-02T04:14:00.000-07:00

Samsung Delivers Latest US-Based Mobile Music Phone

Samsung and carrier partner T-Mobile tossed the latest mobile music device into the US-based market on Monday. Like other music-focused handhelds, the appropriately-titled Beat blends telephony with song, and crams a massive number of functions into a tiny phone. Music fans will appreciate features like external music controls, stereo speakers, and support for Bluetooth stereo headphones.

Other features include a 1.3 pixel camera, a camcorder, and a pre-loaded 1GB microSD card. The Beat is being offered for an affordable $99, though takers will be roped into a two-year T-Mobile contract. That is a steep discount from the higher-profile iPhone, though iTunes Store downloads are incompatible with the Beat. The Samsung device offers support for codecs WMA, MP3, AAC, and ACC+, but not the critically-important Apple AAC. The diminutive device is a quadband, GSM/EDGE flip.

Story by news analyst Alexandra Osorio.

Bron:http://www.digitalmusicnews.com/stories/100107beat/view

Autoradio met opbergvakje

2007-10-01T14:51:00.000-07:00

Autoradio met opbergvakje

design :: speed

Dat de cd-speler in auto's ten dode is opgeschreven wisten we al een tijdje. De nieuwe autoradio van Parrot (bekend van handsfree-sets) zal de nodige vaart achter dat proces zetten. Hun nieuwe RK8200 headunit is een behoorlijke sprong vooruit ten opzichte van iPod-integratie en usb-poortjes. De Parrot heeft naast de usb-poort een sd-kaartreader, line-in, iPod-connector en Bluetooth stereo waar je telefoon mee uit de voeten kan. Omdat er geen loopwerk inzit van een cd-speler is er achter het frontje ruimte voor je telefoon, iPod en rijbewijs. Ideaal. En dat voor iets meer dan 200 euro.

Bron:http://www.bright.nl/

Nieuwe Sony Walkman met ingebouwde TV recorder

2007-10-01T14:46:00.000-07:00

Nieuwe Sony Walkman met ingebouwde TV recorder

living :: mobile :: music

Er zal een dag komen dat de iPod van Apple van de troon gestoten wordt. Sony doet halverwege november met de Walkman NW-A910 met ingebouwde tv-tuner in ieder geval een poging. De NW-A910 heeft een 2,4 inch scherm, formaat crerditcard, waarop je 'televisie voor je mobieltje' kan ontvangen. Je kan kiezen uit zwart of zilver en de drie modellen variëren van 4 gb tot 16 gb. Met het 16 gb model kan je tot 100 uur tv opnemen en de 74 gram lichte NW-A910 is goed voor 36 uur muziek en 8,5 uur televisie voordat je hem moet opladen. Met een prijs van zo'n 275 euro wint de 16 gb NW-A910 het van een 16 gb Apple iPod Touch, maar helaas is de nieuwe Sony Walkman voorlopig alleen beschikbaar in Japan.

Bron: http://www.bright.nl/

iPod Nano-spot verkoopfeest voor Feist

2007-10-01T14:33:00.000-07:00

iPod Nano-spot verkoopfeest voor Feist
cult :: music
De Canadese singersongwriter Leslie Feist was een paar jaar geleden al te spotten bij Broken Social Scene en ging daarna solo verder. Haar nummer '1234' hoorde je een tijdje geleden al in Tonies Tunes. Maar een paar weken geleden is Feist pas echt doorgebroken. De reden: Apple gebruikt het nummer in de commercial voor de nieuwe iPod Nano. Billboard meldt nu dat haar cd-verkopen explosief zijn toegenomen. Voor de Nano-spot werd '1234' tweeduizend keer per week verkocht, nu is dat 73 duizend keer. En haar cd staat op 28 in de Billboard 200. Doordat reclamebureau TBWA Feist in de spot niet noemde namen de zoektermen 1234 en Nano enorm toe op zoekmachines. En op YouTube is de videoclip van 1234 ehm, drie miljoen keer bekeken. En straks vier.

Bron: http://www.bright.nl/ipod-nano-spot-verkoopfeest-voor-feist

De iPhone revolutie

2007-10-01T06:10:00.000-07:00

De iPhone revolutie
mobile :: music :: special
Met de iPhone claimt Apple een revolutie teweeg te brengen in mobiel telefoneren. Een telefoon die zijn tijd vijf jaar vooruit is. Volgens David kunnen ze best wel eens gelijk hebben.
De iPhone lijkt mij de eerste écht bruikbare mobiele zakcomputer. Aan de geanimeerde iPhone demo's op de Apple site kan je dat in de eerste instantie niet echt afzien. Je ziet daar de iPhone met zijn fraaie interface in een mooi vormgegeven jasje, een geweldig 3,5 inch touchscreen met 160 ppi, een 2,1 megapixel camera en een reeks leuke features. De iPhone is een widescreen iPod, een mobiele telefoon en een internetcommunicator in één. Als je het zo bekijkt dan is er niets nieuws aan de horizon.

Een hele prettige interface.

Vrijwel alle concurrenten bieden soortgelijke mogelijkheden (en meer) en dat al geruime tijd. Neem bijvoorbeeld de Nokia N95. Vijf megapixel camera, upload naar Flickr, GPS, een soort Google Maps, HSDPA en wifi, muziek-, video- en foto speler en noem maar op. Een hele reeks features waar de iPhone in de verste verte niet aan kan tippen.
Nokia zegt over de N95: 'It's what computers have become.' Ik hoop het van harte niet want dan is de kans klein dat ik de vele mogelijkheden van de zakcomputer ooit zal gebruiken. Hoewel ik de N95 nog niet in handen heb gehad zal de interface grotendeels gebaseerd zijn op de N93 en de N73 waar ik wel mee heb mogen spelen. De N93 is een veel te groot apparaat en beiden hebben een complexe interface. Ik wil aan de slag en niet een vrij weekend nemen om door een handleiding te waden en de haren uit mijn hoofd trekken om een foto naar Flickr te uploaden. En dat ligt niet alleen aan mijn beperkte kunnen. Geen één van de handvol journalisten lukten het tijdens een workshop in Portugal onder begeleiding van Nokia om zonder hulp een foto naar Flickr te uploaden. En dat is precies waar de iPhone zich in zal onderscheiden.

Inzoomen? Gewoon met je vingers 'pinchen'.

Dat zie je meteen als je de keynote bekijkt waar Steve Jobs de iPhone demonstreert. De iPhone draait onder MacOS X inclusief alle toeters en bellen van het besturingssysteem. Werk je met een Mac dan is de drempel naar de iPhone bijna nul, omdat deze vrijwel hetzelfde is. Het geldt eigenlijk ook voor de PC gebruiker. De iPhone heeft namelijk een echte computerinterface en deze is minimalistisch zoals we van Apple gewend zijn. Het adresboek, de agenda, het mailprogramma en de webbrowser zijn vrijwel identiek aan die van je desktop. Daar heb je al van geleerd hoe die te gebruiken dus de handleiding kan in de kast blijven. De demonstratie van de iPhone gaf mij meteen het gevoel dat je een zakversie van je computer mee op stap neemt.
Je hoeft ook niet te pielen met joystickjes en knopjes om te navigeren. Er zit slechts één homeknop op de iPhone die je naar het hoofdmenu brengt. Via een touchscreen navigeer je. Glij met je vinger over het scherm en hij ontgrendelt de telefoon, een iPod artiestenlijst rolt voorbij over het scherm als je deze een zwiep geeft en door dubbelklikken of met je vingers zachtjes een foto of een tekst op een webpagina te knijpen zoom je in. Dit zijn uiterst natuurlijke en menselijke gebaren die nauwelijks een leercurve vergen.

SMS-en a la iChat.

De touchscreen lost bovendien meteen het probleem op van beperkte ruimte omdat je schermgrootte niet hoeft op te offeren aan een fysiek toetsenbord. Bij de concurrenten is het meestal een compromis; een apart toetsenbord met een groot scherm maakt het apparaat lomp of het scherm is te klein. En als dat het niet is, zoals op de meeste PDA's, dan moet je een enigszins onhandige styluspen gebruiken die je ook nog eens makkelijk kwijt raakt. Je vingers vormen nog altijd de meest accurate stylus die je hopelijk alle tien nog hebt.
Maar niet alleen de bekendheid met een computerinterface en een intuitieve touchscreen zullen de iPhone zo gebruiksvriendelijk maken. Ja, de iPhone kan rich html mail aan, volledige webpagina's verticaal en horizontaal tonen en heeft Google Maps geintegreerd. Prachtige features maar de revolutie zit hem in de minimalistische details. Tik je een telefoonnummer in dat te langer is dan de breedte van het scherm dan verkleinen de letters automatisch. Ontvang je een email met een telefoonnummer in de tekst dan dubbelklik je dat nummer en de iPhone belt. Een SMS 'conversatie' ziet eruit als een chronologische conversatie. Met Visual Voicemail kies je welk bericht je als eerste wil horen en hoef je niet langer de hele waslijst af te luisteren voordat je aan dat ene belangrijke bericht toekomt. Dit zijn slechts een paar van de vele kleine details die wat mij betreft de iPhone revolutionair maken. Revolutionair omdat het deze zakcomputer echt bruikbaar maakt.

Kies welke voicemail je wilt beluisteren.

De iPhone kent ook zwakke kanten. Een 2,1 megapixel camera is voor ons Europeanen niet van deze tijd. Dat heeft met de Amerikaanse markt te maken die in megapixels achterlopen op Europa, zoals wij achterlopen op Korea en Japan. Hetzelfde geldt voor beperkte ondersteuning van 3G mobiele netwerken. De eerste generatie iPhone beperkt zich tot EDGE en ondersteunt geen UMTS of HSDPA. Steve noemde wel tussen neus en lippen door dat het er wel aan zit te komen. Stop er dan meteen ook een GPS in zodat we foto's kunnen geotaggen. Net zoals de iPod kan je de batterijen zelf niet vervangen of het geheugen uitbreiden. Zo zijn er nog wel een reeks tekortkomingen op te noemen maar voor een eerste generatie ben ik onder de indruk.
Ik maak me nu wel al zorgen over het scherm. Ik draag mijn huidige mobiel los in de broekzak, gebruik hem dikwijls in een stoffige en vettige werkplaats met alle gevolgen van dien. Gezien de prijs van de iPhone zal ik die gewoonte moeten aanpassen en toch een beschermend jasje voor dat ding moeten kopen.
Hoewel ik het verwachtte, is het toch teleurstellend dat wij in Europa nog een klein jaar moeten wachten voordat de iPhone beschikbaar komt. Wat dat betreft was de keynote een downer, maar de Apple TV die in september werd aangekondigd is in februari beschikbaar. Lijkt me leuk als ik volgend jaar met de iPhone via wifi bij vrienden thuis op hun Apple TV met slechts één druk op het touchscreen zonder een handleiding te lezen de laatste Uitpakparty van de iPhone op hun televisie kan tonen. iPhone: 'It's what computers should be

Bron: http://www.bright.nl/de-iphone-revolutie

Sony, onthult 's werelds eerste OLED-tv

2007-10-01T06:06:00.000-07:00

Sony, onthult 's werelds eerste OLED-tv

Maandag 1 oktober 2007, 14:14 - Sony heeft maandag de eerste OLED-tv onthuld. Het scherm van de XEL-1 is slechts 3 millimeter dik.

OLED-technologie biedt veel voordelen ten opzichte van LCD- en Plasma-tv's. Zo kan er vanuit grotere hoeken gekeken worden, is de responsietijd korter en zijn de kleuren en het contrast beter.

Daar staat tegenover dat OLED-schermen moeilijk te maken zijn en een beperkte levensduur hebben. Sony claimt dat de XEL-1 zo'n 30.000 kijkuren biedt, goed voor 10 jaar kijkplezier als de tv acht uur per dag aanstaat. Het 11-inch scherm is vanaf 1 december in Japan verkrijgbaar voor ongeveer 1740,50 dollar.

Tags: sony, OLED, scherm, televisie, xel-1.

Bron:http://www.webwereld.nl/articles/48124/sony--onthult--s-werelds-eerste-oled-tv.html

Oud-Microsoft-medewerker is drm zat

2007-10-01T05:58:00.000-07:00

Oud-Microsoft-medewerker is drm zat

Donderdag 27 september 2007, 16:00 - Een voormalig Microsoft-manager doet zijn Windows Media Center eruit en overweegt zelfs over te stappen op LinuxMCE, omdat de drm-software onoplosbare problemen oplevert.

Jesper Johansson was senior manager bij de beveiligingstechnologie-afdeling van Microsoft, maar stapte een jaar geleden over naar webwinkel Amazon. Maandag schreef hij op zijn bloghet Windows Media Center van zijn pc te halen. Een poging om een video voor zijn 5-jarige zoontje hiermee af te spelen was uitgelopen op een softwaredrama, dat nieuwssites als CNet overnamen van zijn blog.

Vooral de drm-software kreeg ervan langs van Johansson. Deze antikopieerbeveiliging zou slechts handenvol geld kosten en niet tegen piraterij werken. "Hoeveel miljarden heeft de industrie niet besteed aan drm-systemen, die kwaadwillenden in een paar weken kraken?", aldus de oud-Microsoft-medewerker. Van het Windows Media Center overwoog Johansson over te stappen op LinuxMCE, de open-source add-on van het Ubuntu besturingssysteem.

Geschrokken van alle publiciteit rond zijn blog heeft hij zijn toon inmiddels iets gematigd. Nu wijst Johansson erop dat vooral de drm-software hem parten speelt, hoewel hij tegen ieder misbruik van intellectueel eigendom zegt te zijn.

Bron: http://www.webwereld.nl/articles/48093/oud-microsoft-medewerker-is-drm-zat.html

Sony BMG, Starwood Hotels Partner Up

2007-09-29T07:20:00.001-07:00

Sony BMG has announced an exclusive partnership with Starwood Hotels and Resorts Worldwide that will customize the entertainment experience at the company's nation-wide chain of hotels, including Sheraton, W Hotels, Westin and St. Regis. The two companies will work to create custom playlists, in-room TV, compilation albums, live performances and more. The first part of the partnership calls for the companies to create playlists matching the personality of the hotel chain—W Hotel is likely to play artists in the vein of Imogen Heap, while Sheraton patrons will hear more mainstream artists like Bruce Springsteen.

The two companies will also create a compilation CD unique to every hotel that will be sold for 20 dollars. W's has already been developed and includes artists such as Goldfrapp, Nina Simone, DJ Krush and Dirty Vegas. Starwood hotels have turned towards TV, giving Sony BMG a free channel that will loop artist interviews, music videos and other exclusives. And that's not all—Sony BMG and Starwood are planning a number of live perfomances, the first with Train's Pat Monahan, to be held September 19 at Sheraton New York Hotel & Towers. It will be open to both guests of the hotel and the public.

Source: cmj.com

Sony, BMG recorded music units merger set for EU clearance

2007-09-29T07:18:00.000-07:00

BRUSSELS (Thomson Financial) - The European Commission is set to clear the proposed merger between Sony Corp and Bertelsmann AG's BMG recorded music units without conditions, a source familiar with the matter told Thomson Financial News.

The commission, which has until Oct 10 to decide on the in-depth, 'second-phase' inquiry, will be keen to present an error-proof ruling this time around after its original green light for the 50-50 joint venture in July 2004 was overturned by the EU courts in July last year.

The source said the commission has done a much more "thorough" job this time around, spurred on by greater legal scrutiny from the Luxembourg-based courts, and will set out its its reasoning more effectively. The source also said the commission's arguments would be supported by changes in the industry, with combinations now seen in a more favourable light.

The source said that it would be surprising if the EU executive attaches conditions to the transaction.

The EU's second-highest court, the European Court of First Instance, annulled the commission's decision following an appeal lodged by the Independent Music Publishers and Labels Association (Impala), representing 3,500 independent labels.

It argued that Sony BMG Music Entertainment Inc -- which has the rights to more than a million songs by recording artists such as Usher, Dido and Christina Aguilera and Beyonce as well as classic hits by acts including Bruce Springsteen and Bob Dylan -- would block new entrants to the market and impede effective competition.

The court said the commission did not demonstrate effectively enough that the combined music giant would not create a dominant position.

More precisely, it did not provide enough legal evidence to argue that promotional discounts for Sony/BMG products would not hamper competition. The court said this argument was impaired by a "manifest error of assessment."

The key to the present inquiry is the commission's analysis of the competitive effects that major sector consolidation has on consumer prices, based on the evolution of past, present and future market conditions.

The commission has previously noted that the case deals with an environment that is exceptionally difficult.

On the one hand, the market is characterised by the strong position of a small number of major players, while on the other hand, the entire industry has been going through significant changes such as digitalisation of music and changing consumer behaviours.

Equally, the investigation is unusual in that it is being conducted after the completion of the merger, it said.

The inquiry into Sony/BMG comes after the commission at the end of May cleared French company Vivendi SA's Universal Music Group's proposed 1.63 bln eur acquisition of Bertelsmann's BMG publishing arm, subject to conditions.

The deal combined the No. 3 and No. 4 music publishing catalogues, resulting in a 22 pct market share that would scrape ahead of current market leader, the UK's EMI Group.

Unlike the recording business, which sells CDs and other products to be sold at retail, music publishers make money by licensing songs for use in movies, TV shows, CDs, video games, ringtones and other media.

The companies also collect performance fees when songs are played on the radio or in public venues such as clubs.

The commission said its "serious doubts" as to the effects on competition of the deal would be "removed" by the remedies package proposed by the parties concerning the divestiture of a number of publishing catalogues. simon.zekaria@thomson.com sz/lam

Source: iii.co.uk

RIAA Cracks Down On Colleges... Again

2007-09-29T07:14:00.000-07:00

2007-09-27 10:34:22.943,
Story by: Michael Gonzalez

The Recording Industry Association Of America (RIAA) will continue their fight against illegal downloading with the release of 403 pre-litigation settlement letters to 22 different universities. The letters, which are sent to the universities and forwarded to the appropriate network users, inform the school of a forthcoming copyright infringement lawsuit against one of its students or personnel. This marks the eighth wave of letters during the new block of enforcement actions that the RIAA, on behalf of the major record companies, has been taking over the following months. Arizona State University, University Of Massachusetts and University Of Wisconsin are among the top schools served with pre-litigation letters.

According to a statement released by the RIAA, they feel they've made great progress in the three and a half years since taking legal action against individuals for illegal file-trafficking and have witnessed an immense growth in national awareness of it. They also call legal action against students "unfortunate but necessary," sighting statistics that state college students alone accounted for more then 1.3 billion illegal music downloads in 2006. There are some, whoever, who feel the students are a scapegoat and the RIAA isn't getting the larger issue.

"RIAA is definitely missing the point on what's going on with illegal downloading. They aren't exploring the reasons why so many students download music this way," says Nate Honoré, general manager at WSUW Whitewater, one of the schools at the top of the list. "Who can afford [buying CDs] anymore, especially with rising cost in tuition? These pre-litigation letters are not the solution to this so-called 'problem.' Can so many people be wrong about this?"

Source: CMJ.com

BETA Records Partners with Limelight Networks for Internet Streaming and Downloading of Songs and Videos

2007-09-29T07:08:00.000-07:00

LOS ANGELES, Calif. - Sept. 24 (SEND2PRESS NEWSWIRE) -- Georg van Handel (CEO) and Chris Honetschlaeger (President) with BETA Records, LLC, announced today that they will partner with Limelight Networks to allow users to stream and download songs and videos at lightning speeds. Using their reliable network to distribute content globally, music fans will enjoy a high-quality rich media experience.

BETA Records will utilize Limelight Networks to enhance a highly immersive and engaging music experience that creates close connections between unsigned artists and indie music fans on the new site slated for release later this year. "We're excited to partner with Limelight for many reasons, including the support Limelight brings to all our partner countries," Honetschlaeger stated.

"We decided to go with a CDN to ensure the artists and fans of our upcoming site will have the best experience possible in getting music, videos, and photos quickly. Limelight Networks has proven to be a solid, flexible platform with reasonable rates, superb sales support and excellent customer service," said Chris Harper, BETA's Chief Experience Officer.

"People worldwide want to connect with each other via a common interest in music - whether they are looking to discover new talent or collaborate together on creating new music," said Lou Greco, Limelight VP of North American enterprise sales and channel operations. "By leveraging Limelight's advanced CDN service, BETA Records solves a business challenge that many user-generated music sites are facing today - providing the best possible experience to a rapidly growing community of users and ensuring reliable and high-quality delivery of rich media regardless of audience size or activity."

About BETA Records
BETA Records combines online techniques and label resources to discover independent artists and present them in an upcoming robust social music community of listeners. With localized versions of the site in multiple countries, artists can truly get exposed to a world-wide audience. www.betarecords.com

Business Development Contact
William Vablais, 760.217.5000, william@betarecords(.com)

Media Contact
Scott G, 818.223.8486, scottg@betarecords(.com)

About Limelight Networks
Limelight Networks is a high-performance content delivery network for digital media, providing massively scalable, global delivery solutions for on-demand and live Internet distribution of video, music, games and social media. Limelight Networks' infrastructure is optimized for the large object sizes, large content libraries, and large audiences associated with compelling rich media content. Limelight is the content delivery network of choice for more than 850 of the world's top media companies, including Akimbo, Amazon Unbox(TM), Belo Interactive, Brightcove, "BuyMusic" @ Buy.com, DreamWorks, LLC, Facebook, FOXNews.com, IFILM, ITV Play, MSNBC.com, MySpace, NC Interactive, Valve Software and Xbox Live. www.llnw.com

Limelight Networks Media Contact
Kristen Leon, Waggener Edstrom Worldwide
415.547.7027 - kristen1@waggeneredstrom(.com)

All trademarks acknowledged.

NEWS SOURCE: BETA Records, LLC

Album art gets short shrift in digital marketplace

2007-09-29T06:56:00.000-07:00

By Antony Bruno
Fri Sep 21, 8:44 PM ET

DENVER (Billboard) - Does album art have a place in the future of digital music?

In today's digital music environment, album art -- like liner notes, lyrics and other extras considered commonplace in the physical world -- exists as a mere afterthought, if that. Its primary purpose is to serve as icons when shoppers scroll through vast music libraries on the computer or iPod.

In a move that was part protest and part publicity stunt, English band Hard-Fi in August released its album "Once Upon a Time in the West" with just the words "No Cover Art" printed on it, citing the irrelevance of album art in the digital space.

It doesn't have to be this way. There's no reason digital distribution channels can't spark the greatest innovations in cover art since the days of the vinyl LP. Animated album covers, interactive booklets and liner notes that link to other Web sites and multimedia material, customized album art where fans can place their own images -- all are possible in the digital distribution future.

The Musika game for the iPod, in which Sony BMG recently participated, is an example. Technically, it's not an album art innovation, but rather a game that draws on the metadata of Sony BMG titles. But it is a good example of what can be done with digital music as a visual format.

When given the choice, fans downloading full albums from pirate BitTorrent sites almost universally choose files that include scans of the album art and booklet over those that don't.

"It's always more extensive than the album art included in the official package," Warner Music Group (WMG) senior VP of strategy and product development George White said of the art available on pirate sites. "That alone shows that people who aren't bothering to pay for music value the album artwork enough to look for packages that contain it."

TECH LAG

So if fans want digital album art and related material as part of their digital music download, why aren't the labels and digital music services making that available?

For starters, the services don't have the capabilities to offer it yet. According to White, none of today's digital retailers or device manufacturers -- save Apple -- have implemented the technology needed to support advanced album art or other interactive features, such as Flash or Java. Nor have they added a display mechanism capable of anything other than a static image. Of all the services, only iTunes has a downloadable video feature.

WMG tried adding interactive booklets to about 75 albums sold on iTunes this spring, providing extra photos, lyrics and links to multimedia content much like extras on a DVD. But the booklets require Flash technology, which Apple later disabled in Quicktime because of a security flaw for which it has yet to release a patch. White said WMG planned to make the digital booklets a standard element for all top-line releases, but the initiative is on hold indefinitely as a result.

But the music industry needs to agree upon technological and operational standards for how to provide this material across multiple services. It's not fair to expect iTunes or others to create different album art features and technology for each label.

The only thing that will motivate labels to do that is the promise of more sales. White said advanced cover art and interactive features would be limited to full-album sales or that of smaller EP bundles, not individual tracks. The hope is that fans will buy more digital albums rather than cherrypicking singles if more features were attached.

At this early stage, the evidence is at best circumstantial, and the focus is on digital album art as a new form of creative expression.

"One of my major goals is to keep artists in the loop with what the capabilities are and get them to think through (it) as they're creating new records," White said. "It's about providing a platform for artists to get their creative vision across to consumers who have moved on to a new generation of devices that have a whole new set of capabilities and have acquired new habits for how they acquire music."

Reuters/Billboard

http://news.yahoo.com/s/nm/20070922/wr_nm/art_dc

Online music fees pose digital dilemma

2007-09-29T06:53:00.000-07:00

By Robert Plummer
Business reporter, BBC News

As record labels struggle to find new ways of selling music in the digital age, some companies are clearly more confused than others.

Even a dose of bling could not save Sony's Atrac format

Take Sony, for instance. It owns 50% of Columbia Records, the oldest and most venerable name in recorded sound.

Columbia's co-chairman, Rick Rubin, has joined the list of music industry executives who think that an online flat-rate subscription service is the way to combat digital piracy and file-sharing.

"You'd pay, say, $19.95 (£10) a month, and the music will come from anywhere you'd like," he told the New York Times earlier this month.

"In this new world, there will be a virtual library that will be accessible from your car, from your cellphone, from your computer, from your television."

Unfortunately, no-one shared this joined-up vision of the future with Sony Corporation bosses, who announced just days earlier that they were closing down the company's download store.

The decision comes as part of what is, in effect, the wholesale scrapping of Sony's entire digital music strategy.

Until now, Sony's digital players had been primarily designed around its proprietary Atrac audio format, although initial Atrac-only players were replaced three years ago by ones that would also play MP3 files.

Now it is getting rid of Atrac altogether and phasing out its Sony Connect music store from March 2008. Future Sony players will handle a range of formats, including Microsoft's Windows Media Audio (WMA).

'Prime sub' hopes

But how likely is it that somone will realise Rick Rubin's vision of an all-embracing legal digital music service?

EMUSIC SUBSCRIPTIONS (UK)

eMusic Basic: 30 song downloads a month; £8.99 a month
eMusic Plus: 50 song downloads a month; £11.99 a month
eMusic Premium: 75 song downloads a month; £14.99 a month

Well, there are currently two types of online subscription model on offer, neither of them exactly what Mr Rubin has in mind.

One is available from eMusic, the world's number two digital music service with 10-11% of the market.

For a monthly fee, customers have the right to download a certain number of songs in MP3 format without any digital rights restrictions.

Music lovers can choose from 2.9 million tracks owned by 20,000 independent labels.

The snag is that none of the Big Four major record companies - EMI, Sony BMG, Universal and Warner - are included.

NAPSTER SUBSCRIPTIONS (UK)

Napster PC music service: Unlimited protected downloads; £9.95 a month
Napster To Go: Also allows transfer to compatible players; £14.95 a month

The other is offered by a number of different firms including Napster, once a byword for illegal file-sharing and now one of the internet's best-known legitimate services.

Under this system, consumers essentially rent their music.

For a monthly fee, they can download as many tracks as they like, but the music sits on the computer's hard drive and cannot be transferred, although there is a more expensive service that allows copying to a compatible player.

The music lasts only as long as you keep paying the monthly subscription. After that, the licence expires and the tracks become unplayable - unless you can crack the Digital Rights Management (DRM) that controls them.

Celestial jukebox

The chief executive of eMusic, David Pakman, is understandably keen to exalt his company's system over any other possible kind of subscription. But he swiftly points out the flaw in the "Rubin model" of music service.

"Per capita spending on music in the US in 2005 was $24 a year," he says. "Music as a utility would pre-suppose that Americans are prepared to spend more on music than they did then, but speculation is that it's somewhat less than that now."

In other words, Americans probably spend in a year on music what Mr Rubin would like them to spend in a month - and there is no reason to believe that people in the UK or elsewhere are any different.

eMusic's boss says the world is not ready for music as a utility

In any case, as far as Mr Pakman is concerned, his customers simply don't want what he calls the "jukebox-in-the-sky" version of music subscription.

"We are a business that's really focused on customers who are 25 years and older," he says.

"We have a subscription-based system in that consumers pay monthly, but they are buying a pre-set number of downloads.

"Every song, you own and can keep forever. Our age group still thinks of music in an ownership capacity. They're not ready to think about a rental model.

"I think it's a long-term view. It's quite possible that music will be a service, but that's really a model that's not been adopted by consumers."

'Digital air'

The main problem with subscription-based services is that the leading name in music downloads, Apple's iTunes, has managed to corner two-thirds of the market without resorting to them at all.

With most tracks retailing at 79p each and albums at £7.99, Apple is doing so well selling digital music as goods that the idea of music as a service still seems a long way off.

But as sales of virtual music rise, traditional record shops are looking increasingly beleaguered.

David Killington calls virtual music "digital air"

In the UK, there are only two national chains of High Street record retailers left after a number of high-profile casualties. One of those, Virgin, has just changed hands and is to be rebranded as Zavvi.

Smaller shops, too, are going under - yet some store owners may still have the last laugh.

David Killington had to close his Mr CD shop in London's Berwick Street, as reported by the BBC News website in June.

But as he says, there are drawbacks to owning all your music as digitised information instead of physical artefacts.

"When [bad] times arise and you need to raise some cash, there is always a chance to sell off some rarely-played discs that can be sacrificed from your collection," he says.

"With buying downloads, you are purchasing digital air without any resale value whatsoever."

The idea of music subscriptions is not going to go away, and many in the music industry are hotly debating how to make it work.

The latest suggestion, from Universal Music Group, is to make people pay through their internet service providers for the right to swap music.

But pricing levels will be crucial - or else the cost of "digital air" could well leave consumers breathless.

http://news.bbc.co.uk/1/hi/business/6989973.stm

Vivendi Calls Apple iTunes Contract Terms 'Indecent'

2007-09-29T06:47:00.000-07:00

Vivendi condemned as "indecent" the contract terms between its Universal Music Group (UMG) unit and Apple Inc, the computer maker whose iTunes online store dominates the digital music market.

Vivendi is one of many large media companies that are trying to challenge Apple's grip on the digital entertainment market and obtain more control over pricing. It said it was in talks with rival distributors.

"The split between Apple and (music) producers is indecent ... Our contracts give too good a share to Apple," Vivendi Chief Executive Jean-Bernard Levy told reporters at a gathering on Monday organised by the association of media journalists in France.

At present, UMG, the world's largest record company, gets 0.70 euro ($0.99) out of the 0.99 euro retail price charged by iTunes, Vivendi said.

Among other things, Levy called for the remuneration of a new release to be higher than for a 30-year-old classic. "We should have a differentiated price system," he said.

UMG renews its music distribution contracts with Apple every month after having failed to agree a longer-term arrangement earlier this year.

The music publisher can end its contract with Apple at one month's notice, but Levy declined to say whether UMG was ready to bypass Apple altogether.

"We are in a phase during which many different actors are talking to each other ... We are trying to put in place several projects to ensure that music is better remunerated ... We are not just talking to Apple," he said.

In August, NBC Universal, a unit of General Electric, decided against renewing its contract to sell television shows on iTunes and this month reached a deal to sell TV downloads to online retailer Amazon.

Commenting on the outlook for revenues at UMG, Levy said: "At constant exchange rates, we should probably be stable again in 2007."

Fleshing out UMG's strategy, Levy said it planned to focus on better exploiting the "monetisation of an artist's image" which included branded clothes and TV shows.

"This is what we hope will revive our business," Levy said. "People indulge in piracy but spend a lot of money on many other things that are linked to an artist."

Levy forecast that "in the not so distant future", traditional music products such as DVDs and CDs would make up less than 50 percent of music publishing revenues.

At the half-year stage, digital music sales made up 15 percent of UMG's total music revenue.

Separately, Levy said Vivendi expects the profitability of its pay-TV group Canal Plus to improve in 2007, excluding restructuring costs.

"We hope to generate, excluding restructuring costs, an EBIT margin of above 7 percent this year" at Canal Plus, Levy said.

In 2006, Canal Plus's earnings before interest and taxation (EBIT) reached between 4 and 5 percent of revenue, on a comparable basis excluding restructuring costs.

Levy said Canal Plus aimed to reach an operating margin of 20 percent by 2010, matching the level of British rivals and narrowing the gap with U.S. peers with margins near 30 percent.

"To get there, we need savings and particularly in (TV) content," Levy said, adding that Canal Plus planned to cut 200 to 250 million euros in TV content costs, which now hovered around 2 billion euros annually.

But Levy acknowledged that competition for good TV content such as film or sports rights remained high, particularly against new entrants such as France Telecom which he described as a "semi-public company" with deep pockets.

Vivendi shares closed down 1.2 pct at 29.74 euros.

http://www.billboard.biz/bbbiz/content_display/industry/e3ib429a97580f60ae20985851c6c575e82

Some Yahoo Music and Other Entertainment Properties Changes Coming

2007-09-29T06:40:00.000-07:00

We’ve been hearing that some changes are afoot at Yahoo’s (NSDQ: YHOO) Santa Monica-based entertainment properties, and Yahoo Music might be the one most affected, and could include Yahoo TV as well. An announcement might come as soon as tomorrow. Some changes along those line are expected as new CEO Jerry Yang is in the midst of his 100-day review of the company. WSJ suggested earlier this month on Yahoo Music changes.

For Yahoo Music, it might mean the closure of its subscription music service, which has never really gained any traction against competition. The unit has about 250 to 300 staff, and it could involve some layoffs, though nothing major. Other property which has been on the rocks is Yahoo TV, which has struggled to maintain its identity in face of other entertainment blogs and destination sites. Yahoo PR didn’t respond until publish time.

Another trial balloon I will float right now: how long before Yahoo considers closing its Santa Monica offices, and move the properties back up North? No inside info on it, just my hunch on a long term change that might come.

http://www.paidcontent.org/entry/419-some-yahoo-music-and-other-entertainment-properties-changes-coming/

Sony BMG Reaches Deal With Imeem

2007-09-29T06:37:00.000-07:00

Sony BMG Music Entertainment has agreed to make its music available to online social media network imeem.com, according to sources familiar with the situation.

Representatives for imeem and Sony (nyse: SNE - news - people ) BMG declined to comment Wednesday.

Meanwhile, representatives for Vivendi's Universal Music Group and EMI Group confirmed Wednesday that they are holding talks with imeem about possible content partnerships.

Sony BMG is the second major label to reach a content deal with the San Francisco company, which enables users to share music and video content. Warner Music Group concluded a similar deal with imeem in July.

Imeem also has agreements in place with independent labels such as Nettwerk, Beggars Group, Matador Records, XL Recordings and other labels distributed by leading indie distributor companies IODA, The Orchard, Redeye Distribution and others.

In exchange for making their content available to imeem users, Warner and the independent labels receive a cut of the ad revenue that imeem generates.

Registered users of imeem can post songs or videos on their accounts and share them with other users. If imeem has a content deal with the recording artist's label, users can stream the songs or videos in full. If no deal is in place, users see or view a 30-second snippet of the song or video.

Imeem has one of a growing number of new Web sites that allow music fans to share and listen to music online. When imeem first launched its ad-supported interactive music service in June, none of the major labels agreed to participate. But sustained declines in recorded-music sales have forced the majors to be more flexible in considering new distribution platforms.

http://www.forbes.com/business/2007/09/26/sony-bmg-imeem-biz-media_cx_lh_0926music.html

MusicStation arrives, but will we pay for digital music? Vodafone thinks so

2007-09-29T06:28:00.000-07:00

By Andrew Orlowski

The Great White Hope of the music business - and many network operators - has arrived in the UK. The music business hopes it will persuade people to start paying for licensed digital music, while operators hope it will persuade people to start using their expensively built, but under-utilised 3G networks.

Vodafone will launch Omnifone's MusicStation service here on three new handsets in time for Christmas. MusicStation offers unlimited downloads, file and playlist "sharing" (we'll explain the quotation marks in a moment) with no additional data charges to the subscriber - all for £1.99 a week. The goal is "any song, anywhere".

MusicStation, which operates out of the old Island Records HQ, has snagged the big four labels and about 30 carriers globally for its service, making it the biggest arrival since iTunes in 2003.

Voda will bundle it with the upgraded, 8GB version of the Nokia N95, Sony Ericsson's W910i and an updated version of Samsung's touch screen & QWERTY phone the F700. It's shunned Nokia's new music flagship the N81, but given the prototype condition of the phone on its first public outing recently, that isn't such a surprise. More importantly, existing Vodafone subscribers will also be able to download the MusicStation software and sign up for a free trial. Omnifone says MusicStation runs on 70 per cent of the world's handsets.

While industry analysts will peg MusicStation as a rival for services such as iTunes Store, Rhapsody or mobile eMusic, the newcomer will really put a much bigger proposition to the test: whether people want to pay for recorded music at all.

They're all really competing with the convenience and rich repertory of unlicensed P2P services - and no licensed digital download service has captured the imagination, or the wallets, of the public. As a consequence, while music has never been so popular, next to nothing is being returned to the creators, producers and distributors. So the music business watches one licensed business whither away, while refusing to licence another.

Because mobile offers easy billing, ubiquity, and the devices and networks are more controlled, it's long been touted as a potential saviour of the music business, and as the best way of competing with free downloads.

Ominous figures from Japan confirm that no one has got it remotely right yet. Japan is closely watched, because of the high penetration of mobile networks, the high degree of socialisation around mobile devices, and its successful history for mobile services. However, last week, the Recording Industry Association of Japan (AIAJ), reported that the volume of licensed downloads had fallen for the first time, down to 111.6m in Q2 from 114.3m.

How could MusicStation succeed where so many others - particularly subscription-based offerings - have failed?

Well, there's no nasty data charge surprises, capping or quotas - since the £1.99 includes all data costs and unlimited downloads. (A £2.99 service runs on a PC or Mac and allows you to browse the catalog and acquire music from a desktop). Unlike eMusic, it has the four major labels and unlike iTunes or Napster, it's genuinely mobile. And unlike Nokia's beta Music Store, it runs on the majority of the world's handsets. But MusicStation's biggest advantage over the networks' own music stores is that it's much easier to use, is cross-carrier, and is very forgiving. So if you lose your handset or change operator, you don't lose your music. The user interface has received a lot of thought, and offers by far the best experience we've seen on a mobile.

As for file and playlist sharing, it's actually encouraged. When one MusicStation phone receives a playlist from another, it's populated over the network.

Because the songs are locked down with DRM, much depends on how Omnifone and the carriers market it. If it's sold as music acquisition, then it has flaws, since your collection disappears when the subscription ends. If it's sold as a "radio" service, then it offers a lot more value: such as caching and user control. Being able to call up any song on demand, anywhere, is certainly an attractive goal.

But we'll soon see whether the public have an appetite for paying for digital music. It's competing with free. ®

Universal charges into legal P2P

2007-09-27T03:18:00.000-07:00

Then charges back out again
By Andrew Orlowski → More by this authorPublished Friday 14th September 2007 18:50 GMTJobsite - find your next IT job quickly & easily The world's biggest record label is touting a scheme that would permit internet users to swap DRM-free music under a blanket license, according to a report. Universal Music Group's "TotalMusic" program would allow customers of ISPs who signed up to the program to exchange files freely - but only if the ISP signed up.

The report in Digital Music News this week also suggested that UMG was considering forcing ISPs to adopt the program - causing widespread puzzlement throughout the music business. That's because it lacks the technical, legal and financial resources to back up any threats.

Even though newer network inspection technologies give ISPs a much better idea of the activity on their networks - and AT&T recently promised to use it to identify copyright infringement - ISPs have legal protection from mandatory demands. Nor has UMG the resources to engage in a war of attrition, as a glance at the numbers illustrates.

UMG contributed around $3bn in revenue to its parent, the French-based Vivendi group, in the first six months of this year. By contrast, AT&T's "data services" business alone snagged almost $6bn last year (a mere 10 per cent of its revenues), while broadband ISP revenues will swell Comcast's cable business by around $3.5bn this year. And broadband revenues are climbing, while music sales are falling at Vivendi. So while it's the 800lb gorilla of the music business, UMG alone doesn't wield a big stick.

Meanwhile, many file sharers would welcome the end of the Digital Rights Management era, but TotalMusic as reported offers only a murky, semi-legal respite. For example, a file-sharer downloads a UMG track from another file-sharer with a licensed ISP, they would be presumably be OK - but if it's a non-UMG track, then they're liable for a steep fine. And what if UMG tracks make their way to a user whose ISP isn't a TotalMusic subscriber?

Given the ease with which unlicensed music is traded today, P2P sharers are unlikely to take the trouble to identify UMG material, and destinations, on behalf of the record giant - so presumably this is where watermarking and packet detection comes in.

"They'll end going for a subscription scheme, and like all subscription schemes so far, it'll fail. You have to offer everything," a senior industry source told us.

Nevertheless, it's a sign of how far the record labels have come in their thinking in 2007.

As recently as January, recording representatives were decrying blanket licensing as the destroyer of local culture. By June this had tempered somewhat.

And this month saw UMG's new joint boss Rick Rubin was talking up "a subscription model" so good that no one has to use unlicensed services.

If only it was 1997. ®

http://www.theregister.co.uk/2007/09/14/universal_blanket_license/

Music industry cripples eDonkey network

2007-09-27T03:17:00.000-07:00

File sharing reduced
By Jan Libbenga → More by this authorPublished Thursday 20th September 2007 14:34 GMTJobsite - find your next IT job quickly & easily The International Federation of the Phonographic Industry (IFPI) has shut down six eDonkey servers in Germany through a series of injunctions from regional courts in Hamburg, Cologne, Düsseldorf, Leipzig, and Frankfurt.

The IFPI claims the actions have dramatically reduced file sharing.

According to P2P Blog, the servers taken down were known as "Donkey Server No. 1" through "Donkey Server No. 6". However, IFPI Germany says it has closed 16 servers so far this year and expects the courts to issue more injunctions.

eDonkey is a decentralised, peer-to-peer file sharing network used primarily to exchange audio files, video files, and computer software. Files are not stored on a central server, but are exchanged directly between users. However, the nodes are essential for communication.

The servers were seized despite the fact the owner of the server, after being contacted by IFPI lawyers, immediately installed filters that would stop the trading of unauthorised songs.

Last year MetaMachine, the developer of the eDonkey2000 client, agreed to pay $30m to avoid potential copyright infringement lawsuits brought by the RIAA.

It also decided to discontinue distribution of its software, but that didn't prevent existing users from exchanging files. Since then BitTorrent has surpassed eDonkey as the P2P protocol of choice.

http://www.theregister.co.uk/2007/09/20/music_industry_shuts_down_edonkey/

A Thought for Record Labels About Mobile Music

2007-09-27T03:14:00.001-07:00

Mark Mulligan | September 20, 2007, 11:38 AM

The hype around mobile music is building and building, with record labels looking on with starry eyes. But, counter intuitive as it may sound, now might be a good time for the record labels to take a step back and take a long hard look at their involvement in mobile.

Mobile music ironically looks less compelling in many ways now than it was a couple of years ago:

• 24 months ago ring tone sales were booming and true tones sales were ramping up. The music industry looked at ring tone growth as being indicative of major mobile music opportunity. The problem is that ring tone adoption has more in common with logo buying than it does music listening. Its identity not music consumption. Hence the anticipated mass market conversion factor hasn’t happened.
• The other factor is that 24 months ago mobile handsets were much more of a closed ecosystem where OTA downloads was the main realistic way of getting music onto your handset…unless you struggled with Bluetooth. Now handset manufacturers such as Nokia and Sony Ericsson (and of course Apple) have shifted the focus to developing devices that are designed to work with computers. Thus mobile phone music playback is going to look pretty much the same as MP3 player usage i.e. the majority of content is going to be from sources other than digital stores.

The other inherent hurdles facing mobile music are well documented (battery life, download speeds, file quality etc.) but they are improving. Nokia and Apple’s focus on WiFi downloading of full quality tracks (rather than the industry norm of dual delivery) is a smart move that dodges the download and quality issues inherent with 2.5 and 3G networks. Nonetheless, mobile music downloading will remain an inferior experience to PC music downloading. Mobile ‘broadband’ speeds will always pale in comparison to PC broadband speeds. Even with WiFi the processing power of mobile handsets means that downloads are significantly slower than to a PC or laptop.

Most crucially, these inherent limitations mean that mobile music will remain a single track dominated business for the midterm future at the very least. The music industry is already close to crisis point with PC digital music with single track downloads accounting for the vast majority of downloads, thus pushing consumers away from buying full albums and thus reducing label revenues and margins. But whereas the industry can realistically try to tackle that trend and drive sales of albums on PC stores, that is prohibitively difficult on mobile.

Thus the more weight of expectation that the record labels place on mobile music to drive digital revenues, the less able they will be to reverse the return-to-singles trend. The risk is that their short-term gain will be at the expense of long-term loss. More consumers may buy more mobile digital music over the next couple of years but those consumers will increasingly rely upon mobile for music buying and in turn become less likely to buy albums. In short, mobile music consumers will buy more digitally, but will spend less on music overall.

http://weblogs.jupiterresearch.com/analysts/mulligan/archives/2007/09/a_thought_for_r.html

BitTorrent Expands Global Reach with New Subsidiary in Japan

2007-09-27T03:03:00.000-07:00

Monday September 24, 11:01 am ET
BitTorrent Launches BitTorrent Japan to Address Content Delivery Demands in Japanese Market

SAN FRANCISCO & TOKYO--(BUSINESS WIRE)--BitTorrent Inc., home to the global standard for delivering high-quality files and media over the Internet, today announced that it has established BitTorrent Japan as a wholly owned subsidiary headquartered in Tokyo, Japan. BitTorrent founded BitTorrent Japan to address the growing demand for peer-assisted content delivery technology among Japanese content publishers and consumer electronics (CE) manufacturers.
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Japan has long been a leader in Internet innovation. The country has the world's most advanced broadband and mobile networks, CE devices and game consoles, and Web services. As a result, there is high demand among content publishers and electronic software providers for BitTorrent DNA, a secure, managed peer-assisted networking platform that significantly reduces bandwidth and content delivery costs. BitTorrent DNA, which stands for Delivery Network Accelerator, enables websites to provide the best end-user experience by seamlessly adding speed, reliability and efficiency to their current content delivery infrastructure. There is also high demand among Japanese hardware manufacturers to integrate BitTorrent's software development kit (SDK) into next-generation CE devices. BitTorrent is already working with Japanese device manufacturers such as Buffalo Technology and Planex Communications to integrate its technology into the latest network-attached storage (NAS) devices, wireless routers and set-top boxes.

"We are intrigued by Japan's advanced broadband environment that exists as a result of innovation and competition among ISPs. BitTorrent has the ability to leverage the capacity that exists within the Japanese Internet to create great user experiences for online applications while dramatically reducing infrastructure costs for publishers," said Ashwin Navin, President and Co-founder of BitTorrent, Inc. "Although P2P technologies are still misunderstood as a result of their abuses, we are confident BitTorrent, due to its security, performance, efficiency, and technical merits, will become the leading peer-assisted delivery platform in Japan for on-demand video, software, and video games. Having a physical presence in Japan promises an unparalleled level of support to our Japanese partners and commitment to customer success."

The newly established subsidiary, BitTorrent Japan, commenced its business operations in Q3 2007 under the leadership of general manager Hirotoshi Wakiyama. Wakiyama has over 25 years of business development and sales experience for start-up companies seeking entry into the Japanese market. As president of Netmanage Japan K.K., Wakiyama contributed a great deal to the boom of Japan's Internet community. He has established business development teams and sales channels from the ground up for companies like Liberate Technologies, Array Networks and IronPort Systems, selling services and products to customers that included Internet Service Providers (ISPs), enterprises and academic institutions.

The establishment of BitTorrent Japan will allow BitTorrent to bolster its leadership position in Japan by distributing its products and services, such as BitTorrent DNA and BitTorrent's SDK, directly to the Japanese market. BitTorrent Japan will also be able to better provide direct business development, engineering and sales support to local Japanese customers.

About BitTorrent Japan

BitTorrent Japan is a wholly owned subsidiary of BitTorrent, Inc., home to the global standard for delivering high-quality files over the Internet. Established in 2007, BitTorrent Japan is headquartered in Tokyo, Japan.

About BitTorrent

BitTorrent is the global standard for delivering high-quality files over the Internet. Millions of users worldwide are using BitTorrent's leading peer-assisted content delivery platform to publish, discover and download digital entertainment content quickly, easily and securely. Founded in 2004, BitTorrent is a privately held company backed by venture capital firms, Accel and DCM (formerly known as Doll Capital Management). The company is headquartered in San Francisco, California. For more information, visit www.bittorrent.com.

BitTorrent is a trademark of BitTorrent, Inc.

http://biz.yahoo.com/bw/070924/20070924005852.html?.v=1

Outlining the logic of the Flat Rate for Music, and more details on ‘Music Like Water’ Part 1

2007-09-27T02:52:00.000-07:00

Lately, a lot of people have been asking me why I am so sure that a Flat Rate for Music would be a good thing, how it can be brought about and how it may actually work.

Since I have just started preparing for a potentially mind-boggling (ehem) keynote speech at the Flat Rate Music event in Iceland (Oct 17, 2007) I am getting pretty well tuned up on this, so, here is a bit of a FAQ on the flat rate and what I have come to call 'Music Like Water'.

I will publish more details as I proceed but please feel free to chime in with questions and comments that I can work into the next few posts on the topic – thanks.

First of all, these statistics below, gathered by eMarketer, clearly illustrate the current conundrum - albeit from a U.S. centric point of view so some of this may or may not apply to Europe in exactly the same way; please have mercy on me in this regard as I am still fishing for more intel on this.

Basically, what’s happening is that a much higher percentage of the total population is actually buying music today (32% of the U.S. population in 2006, versus 20% in 1980), BUT (and this is a very big but) the amount spend per capita has been almost halved – and that does not even account for inflation since $100 is obviously worth a lot less now than it was in 1980. In fact, what cost $100 in 1980 would cost $267.76 in 2006 so $198 back in 1980 would be $530 today - I guess one could safely summarize that if we adjust for inflation it has actually shrunk by 75%!

Why is this happening? Well, for one thing, people can now buy individual songs (i.e. pick the cherries rather than buy the whole album), they can download music for free anywhere (nope... not me), they can swap music on IM, Skype and via blue tooth, and they have myriads of other options to get free music (Satellite Radio, Pandora etc) - plus the competition from other entertainment categories such as gaming is huge. The entertainment share of the consumers wallet is under serious siege, no matter how you look at it, and music has not kept the top spot here (to put it mildly).

In any case, this development reflects that as far as music is concerned more and more people seem to want higher value at ever lower prices, and that they are tired of having been forced into buying an entire album only to get the 1 or 2 ‘good’ songs that were on it. Digital music has buried the concept of a ‘must-have-the-album’, finally.

The downward price pressures and value perception shifts that go with this are rock-solid trends that we can only accept as reality, and ultimately we must now counter with a radically new model: let’s lower the price of on-demand ACCESS TO MUSIC (since that is what it’s all about - i.e. NOT COPIES), get 98% of the population to auto-pay a very low minimum, every month, suck them into the music vortex (so to speak) and then take them upstream to sell them other stuff. Not rocket science, really – see cable TV, cell phone services, software, games etc.

The bottom line, however, is this: we urgently need everyone to have ‘feels like free’ access to music; access that will generate solid, recurring and expandable revenues that are build into the ecosystem rather than remain an option that a user must select (and pay for) every single time he clicks on ‘get this song’. That model simply won’t scale - the Net Generation (those ADD-prone 12-27 year olds that have grown up as ‘digital natives’) just won’t buy the OLD MUSIC FORMAT anymore – that model is asking too much, too early, too rudely, too disconnectedly.

Sounds like a tax?
It kind of does, and that may be one way of looking at it, but I would much rather see this as a voluntary collective license (again, just like Radio!). Having said that, the thought of a universally and unanimously agreed-upon or ‘common-good’ payment may seem somewhat un-American, and therefore my hunch would be that Asia and Europe will be first to implement such a concept. After all, most Europeans already pay for a public TV and Radio license, and for levies for devices and recordable CDs. And most Europeans love their libraries, too.

But anyway, here is my simple appeal to the labels and publishers (and of course to the artists they represent, and their managers): License Music on the Internet just like you licensed Radio! *at better rates of course ☺

In fact, the Internet, and social networks in particular, are already like Radio, and the likes of Facebook will be as crucial to music promotion and marketing as Radio was 20 years ago.

And just like during the humble beginnings of radio, Internet sites and services are by and large not yet licensed for the use of music because no workable, realistic and practical license model exists. The rights holders and industry bodies have miserably failed to come up with a workable model. The result: Permission denied. End of Story.

As a consequence – just like Radio! – large percentages of Internet users are now basically forced to merrily engage in unlicensed behaviors of some kind or the other (such as streaming tracks on-demand on their blogs, ripping webcast streams... never mind p2p filesharing) - a fact that is increasingly attracting the criticisms of the European Commission who wants this paradox situation to be resolved asap. There is a market, there is demand, there is revenues – how come there is no license? Hello?

So, to begin with, what IS a flat rate for music?
Basically, it's the simple concept that quite literally everyone, in some way or the other, should be able to pay for basic access to music and that everyone’s open-access consumption of music should finally be sanctioned and legitimized - but in a way that does not feel like a major decision or impending credit card transaction every single time you do it. It is the idea of a build-in, universally accepted payment for a service that one cannot and wouldn’t want to live without, akin to water, electricity, and of course TV and Radio (certain people would probably want to add the Blackberry, SMS, and email here, too;).

Similar to how cell phones only started to take off when device prices came down and flat-fee (or prepaid) offerings came about, and to how cable TV took off only after it was offered at a very low price point, the idea is to get 95% of the population engaged in the payment-already-made consumption of music so that they can become satisfied, happy and engaged users, and then be converted to active market participants that are likely to buy something 'upstream'. Again, just like the cell phone or cable TV (or... EasyJet?), the mission is to get everyone into the system, at a very low price-point, and then crank up the business with all kinds of extra offerings. Engage not enrage!

Music is not a luxury offer for an exclusive group of buyers - we must stop pushing expensive one-off deals (i.e. CDs and a la carte downloads) to a very exclusive group of buyers (e.g. 45-year olds that want to ‘do the right thing’, are not online a lot and have more money than time – and that like stylish devices) and launch offers that can bring everyone aboard at a very low entry point and with an irrefutable value proposition. A value proposition that can feel like free yet in the aggregate generate large amounts of cash.

Do the math: get 90% of the population (i.e. everyone that is connected in some way or the other, be it on the TV, the computer, or the cell phone) engaged at 1 Euro / week, and you instantly have a very sizable pool of money that would rival or even surpass the still existing revenue streams derived from CDs and downloads. And that would just be the beginning!

Without wanting to get too granular here, this is how I am envisioning the Music Flat Rate structure:

• For unrestricted streaming use: a revenue share (and / or a share of expenses, such as in the case of non-revenue earning entities) in the neighborhood of 10%; for both the use of the master and the compositions, exact split tbd. This would not include downloads (fka digital phonographic delivery) however it would need to cover any and all types of 'listening' uses including full length tracks, on-demand, and interactive and unrestricted uses, plus it would include all platforms including Mobile (remember - there is no such thing as 'the mobile web' - so why should this be any different?)

• For downloads (fka ‘copies’), a flat rate per registered user on a given site / ISP / platform / network; I'd propose 1 Euro / 1 $ / 1 GBP per user per week, with the exact fee to be adjusted in each country, of course. This would give every user unfettered access to ‘use’ i.e. download unprotected (!) music files on / via any network of their choice (e.g. ISPs, telcos, operators, search engines, portals, social networks). The catalog would need to be very substantial but quite a bit of it could also be subject to premium charges (such as live concerts etc). It is not unthinkable to have some sort of ceiling here (say, 500 downloads) but that probably wouldn’t really do anything for anyone, so…why bother.

Most importantly, do keep in mind that most users will not actually pay the flat rate charges, themselves. Rather, their service providers will wrap the payment into other payments (similar to how XM satellite radio is bundled ‘for free’ into new cars, or how 911 / emergency calling access charges are bundled into all U.S. phone bills), and they will find many new ways to subsidize this via advertising, sponsorships or upstream-selling programs. Why would they do that? Because now they can build a business around this, and count on the content being part of it, for sure (again... like radio!).

How would the artists and creators of music get paid?
Any and all use of music on the networks can be monitored and tracked, i.e. any user that streams or downloads music will create a data-trail that is used to determine which music by which artist was used in a given month / week / day / hour) and in which territory. Leaving aside the complex and possibly daunting privacy and data security issues (which I believe can and will be solved) this means that an artist’s income will be totally proportional to the level of attention he or she is actually getting on the networks, e.g. if your music amounts to 3.1% of all streaming and 2.5% of all downloads in any given month in any given territory, you would receive the exact pro-rate amount of the available pool of money in that month, as well. Of course, both rights (master and composition) would need to be covered and paid for, so the total payment would be split up in a yet-to-be-determined ratio - my proposal would be a 50-50 split but this will obviously be subject to the authors agreeing with the performers (or rather, their representatives) – that’s probably another arbitration panel heading our way.

The total aggregate of all user payments, i.e. the ‘pool of money’ as my fellow flat rate evangelist and disruptor Jim Griffin likes to say, could be collected by an appointed agency; for now, by territory, but sooner or later on a per-continent or even global basis. This is a potential job for the existing societies but I personally don’t see this happening for them since the commission for doing this IT job will probably be no more than 2% of the revenue or something in that ballpark.

As an example, if a German ISP wanted to provide ‘free’ music to all of their users they would pay, or rather, generate 1 Euro per week via advertising, bundling or simply by using their marketing budgets, and pay that money into the German pool of all providers that are licensed under the flat rate. Note that this pool would probably increase over time, as well, since more services would take advantage of the Flat Rate as it becomes apparent how they can generate new revenues with or on top of it. Also, a interesting side effect could be that any single given user may well end up having several access points such as their ISP, their wireless operator, and their favorite social network, all of which would be likely to pay the 1 Euro for the very same user, thereby increasing the total size of the pool, over time.

Would the Flat Rate completely kill CD sales and other physical products?
Definitely not. Keep in mind that buying CDs is already de-facto voluntary since anyone that has a computer and a Net connection can already search for and instantly find a myriad of ways of getting those digital copies for free. Of course, the music industry can no longer afford to, literally, bank on those voluntary actions and – to be mean - random acts of kindness, and is becoming painfully obvious in almost all territories that the percentage of people that continue do this will rapidly decline over the next few years.

The advent of the Music Flat Rate will without a doubt create a very powerful environment that will spurn the discovery of new music which may in some cases result in foregone CD sales but in many more cases actually revive them – provided of course that CDs (or whatever comes after them) can deliver real value and come down in price. Better sound quality, nice artwork, bonus material and a very competitive price should do the trick here.

www.mediafuturist.com

Like Amazon's DRM-Free Music Downloads? Thank Apple

2007-09-27T02:36:00.000-07:00

By David Kravets 09.25.07 | 3:00 PM

Amazon's Tuesday launch of a DRM-free music store with some 2 million tracks represents the music industry's clearest repudiation yet of the elaborate copy-protection schemes it once staked its future on. And though it may not be obvious at first, it's Apple we have to thank.

Along with thousands of independent labels, major music producers Universal Music Group and EMI have signed on to sell songs on Amazon's new service, representing half of the "Big Four" music publishers. True, both Universal and EMI had already experimented with DRM-free downloads, but there are signs that the rest of the industry will soon follow.

Edgar Bronfman, Jr., the Warner Music Group chairman, told Goldman Sachs investors in New York last week he was considering removing DRM from Warner's music downloads -- this just months after suggesting Warner would never abandon DRM. He blamed Apple for the apparent change of heart.

"We need some online competition" for Apple's iTunes Music Store, Bronfman said. He conceded the iPod is "the default device" and iTunes the "download model."

DRM -- digital rights management -- allows downloads to expire, or to be shared and played only a limited number of times or on certain devices.

The self-created headache for the industry is that the highly popular iPod and new iPhone only play music protected by Apple's proprietary FairPlay DRM solution or music that isn't protected at all. And Apple chairman Steve Jobs has repeatedly balked at licensing FairPlay for use on competing download services or devices.

That meant music companies had to choose between using iTunes or going DRM-free. The industry stood by and allowed most of its music-download sales to come from Apple. Recognizing opportunities lost to Apple's dominance, the music industry is moving toward throwing DRM overboard in a bid to open up new retail markets and promotional opportunities.

"As a consumer, when you buy a slice of bread you want to know you could put it in any toaster," said Jeanne Meyer, a vice president at EMI, in an interview ahead of the Amazon announcement.

Phil Leigh, an analyst with Inside Digital Media, put the industry's predicament in layman's terms.

"As long as the iPod is dominant, they're going to have to reconcile themselves with dealing with what the consumer wants: something that will play on the iPod," Leigh said. "The smartest thing they can do is sell music without DRM. It's not as though DRM is stopping pirating in other ways, anyway."

The irony of the industry's predicament was not lost on Steve Jobs, Apple's chairman. Jobs described the industry's sagging business model as self-created by EMI, Sony BMG, Universal Music Group and Warner Music Group, the so-called "Big Four" leaders of sales and label ownership, with control of 70 percent of the world's music distribution market.

"When Apple approached these companies to license their music to distribute legally over the internet, they were extremely cautious and required Apple to protect their music from being illegally copied," Jobs wrote Feb. 6 in a letter posted on the Cupertino company's website. "The solution was to create a DRM system, which envelopes each song purchased from the iTunes store in special and secret software so that it cannot be played on unauthorized devices."

Apple announced Sept. 10 that it had sold 1 million iPhones, 74 days after their June 29 debut. More than 100 million iPods have sold since the 2001 launch of the device, and more than 3 billion songs have been purchased from its iTunes Music Store following its 2003 inception.

The Microsoft Zune, by contrast, has sold more than a million units since its Nov. 14 debut in the United States, and it does not play iTunes DRM-restricted music.

Warner's Bronfman told investors that one problem for his industry is that consumers are more loyal to the iPod than to any particular artist. That means the industry's content must play on an Apple device.

"Never before in the history of content has the hardware been more valuable than the software," Bronfman said. "You think about the VCR or the video cassette -- the video cassette always had more value than the VCR that you shoved it into. Apple has been able to turn that model on its head."

http://www.wired.com/entertainment/music/news/2007/09/drm_part_one

Apple: Thoughts on music

2007-09-24T09:54:00.000-07:00

Steve Jobs
February 6, 2007

With the stunning global success of Apple’s iPod music player and iTunes online music store, some have called for Apple to “open” the digital rights management (DRM) system that Apple uses to protect its music against theft, so that music purchased from iTunes can be played on digital devices purchased from other companies, and protected music purchased from other online music stores can play on iPods. Let’s examine the current situation and how we got here, then look at three possible alternatives for the future.

To begin, it is useful to remember that all iPods play music that is free of any DRM and encoded in “open” licensable formats such as MP3 and AAC. iPod users can and do acquire their music from many sources, including CDs they own. Music on CDs can be easily imported into the freely-downloadable iTunes jukebox software which runs on both Macs and Windows PCs, and is automatically encoded into the open AAC or MP3 formats without any DRM. This music can be played on iPods or any other music players that play these open formats.

The rub comes from the music Apple sells on its online iTunes Store. Since Apple does not own or control any music itself, it must license the rights to distribute music from others, primarily the “big four” music companies: Universal, Sony BMG, Warner and EMI. These four companies control the distribution of over 70% of the world’s music. When Apple approached these companies to license their music to distribute legally over the Internet, they were extremely cautious and required Apple to protect their music from being illegally copied. The solution was to create a DRM system, which envelopes each song purchased from the iTunes store in special and secret software so that it cannot be played on unauthorized devices.

Apple was able to negotiate landmark usage rights at the time, which include allowing users to play their DRM protected music on up to 5 computers and on an unlimited number of iPods. Obtaining such rights from the music companies was unprecedented at the time, and even today is unmatched by most other digital music services. However, a key provision of our agreements with the music companies is that if our DRM system is compromised and their music becomes playable on unauthorized devices, we have only a small number of weeks to fix the problem or they can withdraw their entire music catalog from our iTunes store.

To prevent illegal copies, DRM systems must allow only authorized devices to play the protected music. If a copy of a DRM protected song is posted on the Internet, it should not be able to play on a downloader’s computer or portable music device. To achieve this, a DRM system employs secrets. There is no theory of protecting content other than keeping secrets. In other words, even if one uses the most sophisticated cryptographic locks to protect the actual music, one must still “hide” the keys which unlock the music on the user’s computer or portable music player. No one has ever implemented a DRM system that does not depend on such secrets for its operation.

The problem, of course, is that there are many smart people in the world, some with a lot of time on their hands, who love to discover such secrets and publish a way for everyone to get free (and stolen) music. They are often successful in doing just that, so any company trying to protect content using a DRM must frequently update it with new and harder to discover secrets. It is a cat-and-mouse game. Apple’s DRM system is called FairPlay. While we have had a few breaches in FairPlay, we have been able to successfully repair them through updating the iTunes store software, the iTunes jukebox software and software in the iPods themselves. So far we have met our commitments to the music companies to protect their music, and we have given users the most liberal usage rights available in the industry for legally downloaded music.

With this background, let’s now explore three different alternatives for the future.

The first alternative is to continue on the current course, with each manufacturer competing freely with their own “top to bottom” proprietary systems for selling, playing and protecting music. It is a very competitive market, with major global companies making large investments to develop new music players and online music stores. Apple, Microsoft and Sony all compete with proprietary systems. Music purchased from Microsoft’s Zune store will only play on Zune players; music purchased from Sony’s Connect store will only play on Sony’s players; and music purchased from Apple’s iTunes store will only play on iPods. This is the current state of affairs in the industry, and customers are being well served with a continuing stream of innovative products and a wide variety of choices.

Some have argued that once a consumer purchases a body of music from one of the proprietary music stores, they are forever locked into only using music players from that one company. Or, if they buy a specific player, they are locked into buying music only from that company’s music store. Is this true? Let’s look at the data for iPods and the iTunes store – they are the industry’s most popular products and we have accurate data for them. Through the end of 2006, customers purchased a total of 90 million iPods and 2 billion songs from the iTunes store. On average, that’s 22 songs purchased from the iTunes store for each iPod ever sold.

Today’s most popular iPod holds 1000 songs, and research tells us that the average iPod is nearly full. This means that only 22 out of 1000 songs, or under 3% of the music on the average iPod, is purchased from the iTunes store and protected with a DRM. The remaining 97% of the music is unprotected and playable on any player that can play the open formats. It’s hard to believe that just 3% of the music on the average iPod is enough to lock users into buying only iPods in the future. And since 97% of the music on the average iPod was not purchased from the iTunes store, iPod users are clearly not locked into the iTunes store to acquire their music.

The second alternative is for Apple to license its FairPlay DRM technology to current and future competitors with the goal of achieving interoperability between different company’s players and music stores. On the surface, this seems like a good idea since it might offer customers increased choice now and in the future. And Apple might benefit by charging a small licensing fee for its FairPlay DRM. However, when we look a bit deeper, problems begin to emerge. The most serious problem is that licensing a DRM involves disclosing some of its secrets to many people in many companies, and history tells us that inevitably these secrets will leak. The Internet has made such leaks far more damaging, since a single leak can be spread worldwide in less than a minute. Such leaks can rapidly result in software programs available as free downloads on the Internet which will disable the DRM protection so that formerly protected songs can be played on unauthorized players.

An equally serious problem is how to quickly repair the damage caused by such a leak. A successful repair will likely involve enhancing the music store software, the music jukebox software, and the software in the players with new secrets, then transferring this updated software into the tens (or hundreds) of millions of Macs, Windows PCs and players already in use. This must all be done quickly and in a very coordinated way. Such an undertaking is very difficult when just one company controls all of the pieces. It is near impossible if multiple companies control separate pieces of the puzzle, and all of them must quickly act in concert to repair the damage from a leak.

Apple has concluded that if it licenses FairPlay to others, it can no longer guarantee to protect the music it licenses from the big four music companies. Perhaps this same conclusion contributed to Microsoft’s recent decision to switch their emphasis from an “open” model of licensing their DRM to others to a “closed” model of offering a proprietary music store, proprietary jukebox software and proprietary players.

The third alternative is to abolish DRMs entirely. Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store. Every iPod ever made will play this DRM-free music.

Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy. Though the big four music companies require that all their music sold online be protected with DRMs, these same music companies continue to sell billions of CDs a year which contain completely unprotected music. That’s right! No DRM system was ever developed for the CD, so all the music distributed on CDs can be easily uploaded to the Internet, then (illegally) downloaded and played on any computer or player.

In 2006, under 2 billion DRM-protected songs were sold worldwide by online stores, while over 20 billion songs were sold completely DRM-free and unprotected on CDs by the music companies themselves. The music companies sell the vast majority of their music DRM-free, and show no signs of changing this behavior, since the overwhelming majority of their revenues depend on selling CDs which must play in CD players that support no DRM system.

So if the music companies are selling over 90 percent of their music DRM-free, what benefits do they get from selling the remaining small percentage of their music encumbered with a DRM system? There appear to be none. If anything, the technical expertise and overhead required to create, operate and update a DRM system has limited the number of participants selling DRM protected music. If such requirements were removed, the music industry might experience an influx of new companies willing to invest in innovative new stores and players. This can only be seen as a positive by the music companies.

Much of the concern over DRM systems has arisen in European countries. Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly.

Taken from: http://www.apple.com

Mobile download makes history

2007-09-24T07:46:00.000-07:00

da Corr Vs Fedde Le Grand's 'Let Me Think About It' entered the UK singles chart on Sunday at number 64 on mobile download sales alone.

This is the highest position for a mobile only release - the track, gets its full & digital download release this week.

'Let me think about it' takes Ida Corr's original track and turns it into a pure party pleaser. Already receiving massive airplay on the UK's dance stations and BBC Radio 1 with Pete Tong giving it essential new tune status.

SOURCE

Starbucks to give away music as new service starts

2007-09-24T05:40:00.000-07:00

NEW YORK (Reuters) - Starbucks Corp said on Monday it will give away millions of songs via downloads starting next month as it launches a wireless music service with Apple Inc.

From October 2 to November 7 at more than 10,000 U.S. Starbucks locations, customers can receive "Song of the Day" cards redeemable on Apple's iTunes store for a complimentary song hand-selected by Starbucks Entertainment, the company said.

Starbucks said it will give away 1.5 million downloads per day for a total of more than 50 million free songs. Customers will have until the end of the year to redeem the song on iTunes.

Earlier this month, Apple and Starbucks said they had reached a deal to allow people to buy songs wirelessly from Apple's iTunes music store in Starbucks coffee shops without paying WiFi connection fees.

The service is to debut at more than 600 Starbucks stores in New York and Seattle on October 2, and will be expanded to other major U.S. cities later this year and next.

SOURCE

Aantal betaalde downloads in Japan daalt voor het eerst

2007-09-24T05:25:00.000-07:00

Aantal betaalde downloads in Japan daalt voor het eerst

Dinsdag 4 september 2007, 10:56 - Voor het eerst is het aantal betaalde muziek- en videodownloads in Japan gedaald. Een duidelijke verklaring hiervoor ontbreekt.

Gedurende het tweede kwartaal van dit jaar daalde het aantal downloads in Japan van 114,3 miljoen in het eerste kwartaal naar 111,6 miljoen. Dit blijkt uit cijfers van de Recording Industry Association of Japan (RIAJ).

Het is voor het eerst, sinds de RIAJ in 2005 met het bijhouden van de betaalde downloads begon, dat er een daling is opgetreden. De RIAJ heeft onder meer de cijfers van de Japanse iTunes Music Store en Yahoo Music meegeteld.

Niet alleen daalde het aantal downloads van betaalde muziekbestanden van internet met 9 procent, ook is het aantal downloads van ringtones in drie maanden tijd met 10 procent gekelderd tot 54,7 miljoen stuks, aldus de RIAJ.

Wel steeg het aantal verkochte ringbacktones, ringtones die klinken voordat aan de andere kant wordt opgenomen. Daarvan werden er in het tweede kwartaal ruim 25 miljoen verkocht. De Japanse muziekorganisatie heeft geen verklaring voor de plotselinge daling van het aantal betaalde downloads.

Bron: http://www.webwereld.nl/articles/47804/music

'Apple doet niet aan koppelverkoop'

2007-09-24T05:23:00.001-07:00

'Apple doet niet aan koppelverkoop'

Donderdag 6 september 2007, 15:19 - Apple maakt zich niet schuldig aan koppelverkoop met zijn iTunes Music Store en de iPod. Tot die conclusie is de Nederlandse Mededingingsautoriteit (NMa) gekomen.

36 reacties Door Edwin Feldmann
De Consumentenbond diende in januari een klacht in over vermeend misbruik van de economische machtspositie door Apple. Volgens de bond kunnen consumenten die muziek via iTunes kopen, deze alleen afspelen op een iPod. Volgens de NMa klopt dat argument helemaal niet.

"Consumenten die muziek inkopen via de internetwinkel van Apple kunnen én mogen deze ook op andere apparatuur dan een iPod afspelen", zo stelt René Jansen van de NMa.

"Ook kunnen consumenten muziek die ze bij andere muziekwinkels hebben gekocht, overzetten naar een iPod. Van koppelverkoop is daarom geen sprake."

De Consumentenbond is teleurgesteld over het besluit van de NMa. Het is geen koppelverkoop omdat de beveiligingstechnologie op de muziekbestanden van iTunes te omzeilen is door de liedjes op een cd te branden en vervolgens weer te kopiëren naar de computer, stelt de bond.

"Hoewel Apple in de voorwaarden verbiedt om de beveiligingstechnologie te omzeilen of te wijzigen, gaan we toch niet in hoger beroep", aldus Consumentenbond-woordvoerder Ewald van Kouwen. "Door alle commotie heeft Apple aangegeven opnieuw naar de slotjes en de voorwaarden te kijken." Bovendien wordt de klacht van de Consumentenbond nog behandeld bij de Consumentenautoriteit.

Bron: http://www.webwereld.nl/articles/47841/music

Sony onthult opvallende muziekspeler Rolly

2007-09-24T05:20:00.000-07:00

Maandag 10 september 2007, 11:53 - Sony heeft in Japan zijn nieuwste muziekspeler geïntroduceerd. De Rolly rolt en draait op de grond terwijl het muziek afspeelt.

22 reacties Door Edwin Feldmann

Over de Rolly is de afgelopen twee weken al steeds meer bekend geworden. Zo was al bekend dat er slechts één knop op zit. Dat is de aan- en uitknop. Aan de uiteinden zitten twee speakers verstopt onder een klepje.

Het volume kan ingesteld worden via een ring op het toestel. Met deze ring kan de gebruikers ook de motor van de Rolly aanzetten die het apparaat op de muziek laat meebewegen.

De Rolly weegt 300 gram, heeft een ingebouwd flashgeheugen van 1 GB en kan mp3-, aac- en atrac-bestanden afspelen. Aac-bestanden die zijn gekocht via de iTunes Music Store zijn voorzien van een drm-beveiliging en kunnen niet worden afgespeeld. Tot slot heeft de Rolly een Bluetooth-functie waardoor het ook streaming muziek kan afspelen.

De Rolly is vanaf 29 september in Japan verkrijgbaar voor 40.000 yen (circa 255 euro). Of en wanneer de muziekspeler elders in de wereld wordt geïntroduceerd, is nog niet bekend.

Bron: http://www.webwereld.nl/articles/47865/music

TNO adviseert bedrijven en overheden over “the long tail”

2007-09-24T04:27:00.000-07:00

TNO adviseert bedrijven en overheden over “the long tail”
De “long tail” is populair in de mediasector. Het idee dat in de toekomst een grote hoeveelheid nichekanalen kan zorgen voor het grootste deel van de omzet zorgt voor de nodige hoofdbrekens bij gevestigde partijen als operators, omroepen en uitgevers. Niet alleen zijn er nieuwe businessmodellen nodig, ook op het gebied van bijvoorbeeld auteursrecht zijn er veel onduidelijkheden. De overheid is zich dan ook aan het oriënteren op beleid dat anticipeert op deze trend. TNO adviseert bedrijven en overheden hoe ze kunnen inspelen op deze ontwikkeling.

“The long tail” is populair gemaakt door de Amerikaan Chris Anderson, toenmalig hoofdredacteur van Wired, die er in 2004 een artikel en twee jaar later een boek aan wijdde. Hij beschrijft hoe het internet traditionele markten als televisie, video, boeken, muziek en ook de detailhandel op z’n kop zet. Zijn stelling is dat de vraag naar online producten met een relatief kleine kopersgroep die van de traditionele ‘bestseller’ verkoop via winkels voorbij zal streven.
In een grafiek plaatste Anderson op de horizontale as producten als tv-zenders, websites en andere contentproducten. Op de verticale as zijn de aantallen klanten weergegeven. Het begin van de horizontale as, het hoofd, bestaat uit de meest populaire tv-zenders die hoge kijkcijfers halen. Daarna volgt een eindeloze reeks nicheproducten die afzonderlijk veel lager scoren, maar bij elkaar een evengrote of zelfs grotere markt vormen dan de massamarkt. De online-winkel Amazon haalt inmiddels al meer omzet uit de “staart” dan uit bestsellers.

Inspiratie
TNO-expert Sander Limonard: ‘Het kijken naar zenders van publieke en commerciële is diep ingesleten in onze gewoontes. Spotreclame is de belangrijkste inkomstenbron. Voor themakanalen op tv en internet, sociale netwerken als Hyves of videosites als YouTube gelden heel andere wetten. TNO onderzoekt alternatieve businessmodellen, de mogelijkheden die nieuwe zoektechnologie biedt, het auteursrecht en initiatieven als Creative Commons. Zo doen we veel voor de ministeries van OC&W en EZ en voor de Europese Commissie.’
Eerder dit jaar verrichte hij met collega Richard Tee een studie in opdracht van Freeband/B@Home over “the long tail” van audiovisuele content op tv en internet.‘User generated content hoort daar ook bij. Telecom- en kabelbedrijven zijn al begonnen eigen diensten aan te bieden, zoals KPN met het online video platform Shoobidoo en regionale experimenten met MediaMall. De grote vraag is wie welke kanalen beheert, wat ermee te verdienen is en hoe je gebruikers daadwerkelijk actief laat worden.’

Beeldenstorm
Partijen als operators, kabelaars, omroepen en uitgevers hebben volgens Sander Limonard allemaal te maken met sterk en snel veranderende rollen in de markt en behoeften van de consument. Nieuwe nichespelers als YouTube duiken uit het niets op en verschuiven in korte tijd van de staart naar het hoofd. De Nederlandse Esmée Denters is binnen 11 maanden 40 miljoen keer bekeken op Youtube en treedt nu op met Justin Timberlake. De staart bevat schijnbaar onbetekenende nieuwe producten waarvan vele echter potentiële groeiers zijn.
'Maar ook zonder succesnummers die populair worden is het aantrekkelijk om veel niches te exploiteren, mits daar veel vaste kijkers of bezoekers aan verbonden zijn. Interessant voor adverteerders die meer impact willen hebben in de huidige beeldenstorm. Onze boodschap aan de gevestigde partijen is dan ook je niet afzetten tegen de nichepartijen maar juist met ze partneren. Dat is de reden waarom TNO nauwlettend volgt welke mechanismen er in the long tail aan het werk zijn.’

Bron: http://www.tno.nl/nieuwsbrief_ict2/nb03ned.htm

Study: Baby Boomers Key Group For Physical Product

2007-09-21T02:30:00.000-07:00

Baby boomers are now the most important age-group buying CDs, according to a study conducted by the NPD Group, in conjunction with AARP, and on behalf of the National Assn. of Recording Merchandisers.

Baby boomers, those born in the period from 1941-1964, constitute and audience of 76 million consumers, 70% of whom still buy music, mainly in the CD format. Last year, boomers accounted for 33% of all CD sales, up from 30% in 2002, according to the study.

While their market share of physical purchases are growing, baby boomers’ overall purchases have dropped from 252.7 million units in 2002 to 191.2 million units last year, which can be attributed to the overall album marketplace decline of 13.6% during that time period, according to Nielsen SoundScan. Also, compared with two years ago, 35% of boomer say they are buying less music, 22% say more and 43% answered about the same.

"This report proves that there is an increased need and urgency for the music industry to improve the way it communicates, merchandises and markets to this age group," NARM president Jim Donio said in a statement.

For those buying less music, about 38% of them said the main reason is they listen to radio instead. Other reason cited for buying less include 29% of boomers citing less time listening to music nowadays; 28% cited being satisfied with existing music collection; 24% said music is more expensive now; 18% answered there is no new music they want; 14% said favorite artist hadn't release any new music recently; 13% said they spend money on other entertainment products; 11% said they have no time to buy new music, and 11% said they couldn't find what they wanted in stores.

Of the boomers who buy music, 68% of them, or about 36 million, buy physical music product only; 26%, or almost 14 million people, buy both physical and digital product; while 6% of them, or slightly more than 3 million, make digital only purchases.

When making CD purchases, 29% of baby boomers said they most likely will do so at mass merchants, 21% answered online, 12% said record stores; 9% said book stores, and 3% indicated warehouse clubs.

When listening to music, most said they do so in cars, and of those who gave that answer, 79% cited the radio as the number one way, 55% named a CD player, and 16% named satellite radio

The study suggests there is $700 million in potential incremental revenue among boomer music buyers and may hold the key to supporting the CD during the current industry transition period. If each boomer buys one more CD a year, that translates into $330 million in revenue, according to the study. "While the recording industry struggles with piracy and sharing among younger consumers, there's at least one group with the income and inclination to pay for music," NPD entertainment industry analyst Russ Crupnick said in a statement.

In order to increase purchases, the study suggests that music manufacturers partner with AARP, whose membership are the older segments of society. It also suggested that labels take advantage of anniversaries and related events to release compilations, gift sets and remaster, and create boomer-centric merchandising programs.

SOURCE

Album Buyers Show Up...And Buy CDs

2007-09-21T02:29:00.001-07:00

Album Buyers Show Up...And Buy CDs
A couple things stuck me about the first-week sales totals for Kanye West, 50 Cent and Kenny Chesney. First, like many people I was surprised by the quantity of sales. West's Graduation sold 957,000 units, an incredible amount in a year when album sales are down 14%. 50 Cent's Curtis moved 691,000. Obviously the manufactured rivalry between the two rappers spurred sales. Chesney's Just Who I Am: Poets and Pirates moved 387,000, a number that would be for #1 in a typical week. Majors' release schedules have been flat this year and its new album launches have failed to inspire and excite consumers. Last week, there was finally some excitement in the air.

The other thing that stood out about last week's top three albums was their relatively low digital-to-total album percentage. From what I've seen over the years the higher album sales go, the lower that percentage becomes. To punch up to the high six digits, the CD needs to be as broadly distributed as possible. Digital sales are, of course, growing, but digital sales alone won't push an album to the top of the chart.

Last week, Kanye West's digital sales represented 14% of total sales. For 50 Cent and Kenny Chesney, the numbers were 8% and 9%, respectively. What those numbers tell me is those artists' labels and distributors did an good job moving the CD and getting sell-through (though I don't know what was shipped on each title). The albums' digital shares were good but lower than I expected. As a point of comparison, Grey's Anatomy Vol.3 debuted at #16 with sales of 26,000 and a digital share of 43%. Maroon 5's It Won't Soon Before Long has sold 1.24 million units in 17 weeks and has a digital share of 18%.

CD sales are down about 20% in 2007, but as these sales numbers show, the physical format still has some life left in it. The timing of the releases coincide with a season typically targeted because students are recently back to school and have money in hand. These are the same students that download music from P2P networks and by most reports have given up on the CD. So unless students suddenly discovered the CD, older consumers were the ones excited by last week's release schedule. (I'll point out that I haven't seen any new release CDs in the Vanderbilt bookstore in the last month. The one display rack, practically out of view, has product left over from last school year.)

Graduation sold more digital albums in one week than any other album. Digital sales, though, were not the reason for the huge first week. By squeezing as much as it could out of physical distribution, Def Jam and Universal Music and Video Distribution scored a fantastic first week.

Posted by glenn on September 19, 2007 10:06 AM
Bron:
http://www.coolfer.com/blog/archives/2007/09/album_buyers_sh.php

De nieuwe platenmaatschappij: YouTube

2007-09-21T02:29:00.000-07:00

De nieuwe platenmaatschappij: YouTube
[di 27 feb 2007, 11:38]
Door gastblogger Ralf Hesen van Tribal DDB Amsterdam.

Ja, MySpace en consorten zijn ook druk bezig zich als muziekwinkel te profileren, maar zij menen nog steeds dat het idee is om MP3’s te verkopen. Dan is het revenue sharing model dat YouTube binnenkort zegt te zullen introduceren (en Revver.com al enige tijd aanbiedt en ongetwijfeld zal worden nagevolgd door vele anderen) veel meer web 3.0. Degene die zijn filmpjes via Si-Mi aanbiedt ontvangt nu zelfs al 90% van de inkomsten!

Wat is er voor een band makkelijker dan je eigen videoclip te uploaden en vervolgens zoveel mogelijk traffic naar die clip te genereren. Elke view levert je inkomsten op en tegelijkertijd promoot je hiermee je band. Met wellicht als afgeleid resultaat toch nog downloads van (betaalde en onbetaalde) MP3’s? Links plaatsen op de MySpace-pagina van de band, van de leden van de band, van de vrienden van de leden van de band, van de fans, van de vrienden van de fans etc. Het fenomeen Alamo Race Track, de Nederlandse band waarvan een eenvoudig filmpje van een unplugged performance in de kleedkamer zo’n 300.000 maal werd bekeken op YouTube, geeft overigens aan dat we dat begrip videoclip hierbij heel ruim kunnen interpreteren.

Mark my words: we krijgen binnenkort net als bij eBay een club zelfstandige ondernemers (in dit geval dus creatieve audio en video content ontwikkelaars) die met deze tak van sport de kost gaan verdienen. En die mannen/vrouwen worden in deze tak van sport dan vanzelf weer sterren. Dus tel die views en ontdek de nieuwe sterren!

Had ik al gemeld dat ik in mijn vrije tijd deel uitmaak van de band Lemon? Ik ga maar eens snel aan de slag. Binnenkort op YouTube en Lemonline.

Bron:http://www.molblog.nl/online/4695

Popkomm Debates On Indies, Internet

2007-09-21T02:27:00.000-07:00

Mike Batt, founder and managing director of Dramatico Entertainment, used his Popkomm keynote speech this afternoon to call for a truce between independent and major music companies.

"A lot of us who run indie labels tend to think of the majors as the enemy. They're not," said Batt, who in March was appointed deputy chairman of U.K. labels body the BPI. "The landscape has changed and now we need each other."

Rather than bicker among one another, Batt said majors and indies ought to fight for the common cause on broader issues, such as the topical term of copyright extension in the United Kingdom. "Instead of fighting against majors, and slagging them off, you can work with them," he told delegates, during his panel conversation with Billboard's group editorial director Tamara Conniff. "Companies buy each other. It's just trade," he explained. "Universal is buying Sanctuary at the moment partly for the live business and partly for the catalog. There's nothing wrong with that."

Batt also gave executives an insight into life at the cutting edge of running a successful independent label. "I'm an expert in failure," he admitted. "I know a little about success and a lot about failure," commented the music all-rounder, whose protégé Katie Melua's "Piece by Piece" was the best-selling British female artist in the world last year, shifting more than 3.5 million units in Europe.

"To run a record company, you have to have a mixture of being sensible and being foolish. You have to be a bit reckless, swinging through the jungle without knowing there's another piece of jungle after you take the first swing. It's exciting, but you know you're going to fall sometimes." Batt -- a self-confessed "40% sensible" executive -- admitted to one such fall, which left him £700,000 ($1.4 million) out of pocket when he backed a TV-advertised nostalgia reissue campaign for his 1970s novelty act the Wombles.

"You could say I'm a glutton for punishment, but you do learn from those things," Batt reflected. "I was so sure that Katie was the real thing that if I was advising anyone else, the most important thing of all, the best marketing of all, it's the A&R. If you get that right, the right artist, the right song, at the right time, then the marketing is so much easier. You're selling what people want."

What people don't want, panellists said in a later session titled "New Major (music) Players," is digital rights management on music files. "Today it's not about protection. Its about un-protection," said Sonific CEO Gerd Leonhard. "That's how you make money. Nobody cares about protected music. That's a fact."

The discussion drilled into the possibilities for extracting revenues from service providers and telcos. None, perhaps, more controversial than the theory proposed by Scott Cohen, founder and VP of international of the Orchard. "There's 1.1 billion Internet accounts worldwide. And there's 2.6 billion mobile phone accounts," he said. "I would go further than a blanket license. Something more radical. A tax on every access point. If there was $1 added to each of those accounts, think of the possibilities."

Hanoi Rocks frontman Michael Monroe was the star of the show at a lively "Artists as Architects" panel, which wrapped day two of Popkomm.

Chaired by Billboard global editor Mark Sutherland, the panel -- which also included Jon Tufnell of U.K. electro-rockers Plastic Toys, Robin Sato and Lene Toje from Berlin-based "organic electro" act Sanagi and Belgian singer-songwriter Sioen -- discussed issues of artistic control, Bon Jovi and rows with record companies.

Monroe revealed the time he once fell out with his label over their marketing campaign for his "Not Fakin' It" solo album, in which he was billed as "the brains behind Hanoi Rocks."

"Hanoi Rocks had no brains, that was the whole point," he quipped. "They ended up pulling the whole campaign and it killed the record. But I couldn't be portrayed as a phoney and I've never regretted the decision."

SOURCE

Looking Inside An Ipod

2007-09-20T01:06:00.001-07:00

iPod represents a wide array of moveable media players which have been designed and are sold by Apple Inc. It was first launched in October 2001. iPod models generally cover digital audio players with a central click wheel to iPod Shuffle that uses various buttons because of its small size. iPod Nano, a fifth generation, was launched in September 2006. This led to discontinuation of iPod mini, which it stored the data on an internal hard disk. iPod Shuffle and Nano employ flash type of memory for smaller size. These devices also act as an external medium for data storage.

iPod was inspired by the shortcomings of existing digital music players, which were not physically compact and the user interface were not very friendly. Apple assembled a group of engineers and within a year, it unveiled the iPod. It was launched as a product which was Macintosh compatible with a hard drive of 5 GB. Apple used PortalPlayer`s reference for its software. The company Pixo helped iPod for developing user interface. But these were refined by Apple after development. The naming of the device as `iPod` was suggested by Vinnie Chieco, who is a freelance copywriter. Coincidently, Apple had the name registered for `internet kiosks`, but it never used it for this purpose.

iPod can run MP3, M4A/AAC, AIFF, Protected AAC, Audible Audio book and WAV format. It also introduced the displaying of images ability with PNG, TIFF, GIF, BMP, and JPEG formats. The 5th generation models can even play MPEG 4. From the 2nd generation model, the software also started working with Windows along with Macs. It doesn`t support Microsoft`s WMA audio format. WMA and MIDI files can be changed using iTunes, a service provided by Apple through which you can view and download latest songs and movies on your device player. iPods having colored displays use texts and graphics which are anti-aliased and sliding animations. The operating system is stored in a dedicated storage medium of the device. Each device player has 32 MB Ram, though later ones have 64 MB Ram. Most of it is used to cache songs through the storage medium.

Apple also added PDA type functionality so that text files can be viewed and an address book can be maintained through a computer. Also, some built-in games like brick are also included. In fifth generation iPod, the brightness of the screen can be adjusted and games can be downloaded from iTunes Store. For first and second generation models, as well as Nano and Shuffle, internal lithium polymer batteries are used and for third and fifth generation models, internal lithium batteries are used. Initially, iPods came with a FireWire connection for charging the device, but with introduction of multipurpose USB ports, they became outdated. Recent iPod models can be charged using USB 2.0.

Many accessories, even by third parties, have been made for iPods. Some additional accessories developed by Apple were sound recorders, FM Radio Tuners, Remote Control and Audio-Visual Cables for TV. Other accessories are external speakers, protective cases, and wireless earphones. Third parties manufacturing most of these accessories are Griffin Technology, Belkin, Bose, and SendStation. BMW was the first car company to launch an iPod automobile interface, thus allowing newer vehicles to control iPod through steering wheels. Later Apple made this technology available to many other car brands too. Even certain Airlines started provided iPod connectors in the seat.

Apple markets its own iPod earphones and claims that they are better fitting for ears and provide better sound quality. Since it was launched, iPod has been market leader in digital players because of their high quality, supreme aesthetics and ease of use. With more cash flowing into research every year, there is no reason for this fact to change.

This article is under GNU FDL license and can be distributed without any previous authorization from the author. However the author's name and all the URLs (links) mentioned in the article and biography must be kept.

Source

Germany Promises State Aid To Music Start-ups

2007-09-20T01:04:00.001-07:00

The German government says it is prepared give financial support to small-and-medium sized start-ups in the German music market.
The move was announced by German minister of economics Michael Glos at the Popkomm trade fair in Berlin today (Sept. 19).
Full details of the budget and how the aid will be allocated have not yet been announced. However, this is the first time the government has publicly made a commitment to helping new music industry businesses. Previously, government had claimed said it was too difficult to assess the value of music-related enterprises and determine how much financial assistance to give.
Dagmar Sikorski, president of the German Music Publishers' Association, is among the industry insiders welcoming the government initiative. He says it would "strengthen competitiveness in all segments of the market, especially as smaller music companies need help in the first years after they start a business," Sikorski declares.
At Popkomm, Glos unveiled government statistics which showed the German music industry generated than $6.93 billion in 2006. That figure included $2.36 billion from the recorded music market and $4.99 billion from the concert business.

Source

eMusic Launches DRM-Free Music Tool

2007-09-20T01:02:00.000-07:00

eMusic introduced a new music management tool for it's DRM-free digital music service designed to let users more easily transfer tracks acquired through eMusic to existing music management software, such as iTunes, Winap or Windows Media Player.

Before, users had to manually transfer eMusic-acquired files to their respective digital jukeboxes. The new tool allows them to simply select their preferred application, and any song downloaded from eMusic will automatically be added to its library.

The Open Source application works on both Mac and PCs, as well as Linux. As an Open Source application, third-party developers will have access to the source code and thereby develop additional functionality. It uses technology from Open Source firm Mozilla, meaning it can work with may of the add-on programs developed for Web browsers Firefox, including FoxyTunes, gTalk Sidebar, TwittyTunes and Wordpress.com Sidebar.

Source

Popkomm Panelists: Music, Auto Industries Must Align

2007-09-20T00:55:00.000-07:00

Vehicles will drive a viable revenue stream for record labels in the coming years, panelists said at the "Auto Mobile Music: The Dashboard Jukebox" session today, on day one of Popkomm, the international music and entertainment conference being held in Berlin. The event runs September 19 - 21.

"Cars have been an offline silo for a long time. Now they are starting to come online," noted moderator Ty Roberts, co-founder of chief technical officer of Gracenote.

While in-car music interfaces are currently limited by technology and safety issues, the participants noted, new voice-activated devices are poised to enter the market, breaking-open the possibilities for tuning in at the wheel.

"We will connect our cars with the Internet in the next three to four years. It's small steps we are taking," explained Wilbert Hirsch, principal of acg audio consulting group in Germany. "The iCar is not far away."

Stephen White, Gracenote's senior director product and content management, urged music companies to align with car manufacturers. "The big opportunity is to work with the automobile industry now. It is a new frontier for digital music," he explained. "We have to see what the reaction is to the user community. You need to think of automotive as a distribution channel."

The sophisticated devices of the future, built into existing satellite-navigation systems, will enable drivers to customize their playlists on the go.

"Personalized downloads to the car will become a viable business model," Hirsch added.

And music videos will inevitably come into the mix. "Music videos in the car are not good for the driver," quipped Chrisa Haussler, senior VP, Sony BMG Music Entertainment Germany. "But how do you entertain the kids in the back. It's a good option."

Other speakers suggested downloads could be bundled into the price of car repayments, and delivered when the vehicle is being serviced.

"When we talk about filling the car up, we could be talking about filling it up with music," Roberts said.

Later in the Popkomm program, the complex system of rights collecting in Europe and the slowing market for ringtones came under the microscope.

Philippe Kern, CEO of KEA European Affairs, and founder of European independent music companies trade body Impala, took moderation duties for the afternoon panel, "Collecting societies joining together: entent cordiale or David vs. Goliath."

The session pitted executives from European collecting societies Buma/Stemra, SACEM, GEMA and labels body IFPI. And although it never quite descended into the battle it promised, attendees were treated to an insight into the competitive nature of European rights organizations.

"Harmonia is ready to cooperate with everyone. We need cooperation from all the societies," commented Thierry Desurmont, deputy chief executive of France's SACEM. Along with Italy's SIAE and Spain's SGAE, SACEM is a crucial cog in the Harmonia one-stop licensing alliance. "But it means the small collecting society will also need to improve their measures of administration to achieve better efficiency."

Speaking from the audience, Joe Mohen, founder and CEO of ad-supported digital music firm Spiralfrog chipped in, "I've come into the industry from a computer programming background. Music is the most complicated intellectual property ever. It makes software seem like a vacation."

Later in the day, executives admitted on the "Stepping into the Popkomm ring" panel that the market for ringtones - until recently a revenue power-player for the industry - has seen its heyday. "It's not a growing business. I hope that it will stay stable, but that is optimistic," said Gudrun Schweppe, VP of music licensing at German ringtone and download firm Jamba. "Handsets are improving and the typical ringtone buyer can edit his music on his computer and turn into a ringtone. We're looking at new business models, such as selling full-track to mobiles. We need to find new ways of having people pay for music. But it's still very difficult to operate on an EU-wide basis."

Source

Want2BDiscovered.com Gives Global Exposure to Indie Artists via Live Webcasts

2007-09-18T04:55:00.000-07:00

NASHVILLE, Tenn. - July 24 (SEND2PRESS NEWSWIRE) -- Are you a frustrated musician or vocalist seeking a record deal? Are you an unsigned or indie music artist who is looking for that first big break? Want2BDiscovered.com, LLC is giving unsigned artists more exposure than any other web site and has launched a seven-month urban talent competition - the Urban Showcase Series - to help get musicians discovered and the public involved.

(c) Send2PressOn June 27, 2007, Want2BDiscovered (www.Want2BDiscovered.com) started a competition of unsigned music artists. Broadcast live from the Rutledge in Nashville, TN, six shows are scheduled with four contestants per show (24 in total). There will be a total of six winning contestants who will battle it out, live, at the seventh show on December 14. The finale, as well as the first six shows, will be viewable on the Want2BDiscovered web site.

The six finalists will compete to be the recipient of cash, prizes and the first place title. The remaining artists will be spotlighted on Want2BDiscovered.com's web site and featured as an exceptional talent or rising star.

Remaining competition dates are: July 27, August 31, September 21, October 26, and November 30.

On July 27, there are four contestants and three spotlight musicians scheduled to appear live on stage before hundreds of people, and potentially, thousands via the Internet.

Showcases and competitions are live and web streamed on the web site at: www.Want2BDiscovered.com. Performances are publicly displayed for the world to view and people are encouraged to vote for their favorite artist. Musical categories cover the spectrum and include all genres: rock, jazz, blues, country, alternative, gospel, reggae and more. The focus of the Urban Showcase Series is rap, rhythm and blues, and soul.

So, how do unsigned artists join to live stream their performances? Unsigned artists simply need a Webcam, or camcorder that can be used as a Webcam, and a computer. A musical profile is required prior to signing up for this benefit.

Musical artists who want to get a free music profile can simply click on the "register your music" button on the site and follow the directions.

"And, anyone who is interested in hearing free, live, indie music from the comfort of their living rooms" Ron Link, owner of Want2BDiscovered.com, said, "is welcome to watch and vote online for their favorite indie music artist. We encourage interaction and want to hear from anyone and everyone who loves music and wants to hear something new and edgy."

Want2BDiscovered.com has a mission to introduce the talents of unsigned, indie artists to the world. The company live streams music events to encourage record deals and to promote unsigned and indie music artists. They open up the world to unlimited discovery potential while providing interactive entertainment for people of all backgrounds and ages.

Source

Globalization of Online Record Company Continues With Launch of BETA Records UK

2007-09-18T04:52:00.000-07:00

Indie Artists and Fans Are Invited to Join www.betarecords.co.uk Starting September, 2007 as BETA Adds Another Country to a Growing List of Locations

LOS ANGELES, Calif. and LONDON, England - Sept. 4 (SEND2PRESS NEWSWIRE) -- BETA Records, the online record company, officially launched BETA Records UK (www.betarecords.co.uk) on September 1, opening a London office and a portal for music lovers and artists of every style.

Caption: Founders Georg van Handel and Chris Honetschlaeger BETA RecordsFollowing the success of BETA Records in the USA, Germany and Mexico, company founders Chris Honetschlaeger and Georg van Handel are moving forward with creation of an interconnected online community for the sharing of musical and social experiences. Additional expansion is planned with pending deals in the Netherlands and China expected by year-end.

"BETA Records is opening its online portal to singers, songwriters, instrumentalists, bands and fans everywhere, but with the additional advantage of local land-based operations, expanding global distribution channels and new revenue opportunities across BETA's multiple ecosystem platforms," states Honetschlaeger.

"By combining online's social interaction with the personalization of local facilities, BETA Records offers the best of both worlds to everyone who makes or enjoys music," van Handel states. "We love being an online record company, but there are many advantages to having terrestrial operations, including recording studios, mobile recording facilities, A&R representatives, video and broadcast professionals, and distribution channels," van Handel added.

"Unsigned artists joining BETA Records receive their own personal Web presence, complete with hosting of songs, photos, biographical and contact information, and a wide variety of additional features, including opportunities for networking, studio appearances, live shows, airplay on BETA Radio (www.BETA.fm), and presentation to decision-makers throughout the fields of music, motion pictures, television, radio and live venues," says Honetschlaeger.

"Every advancement in technology, recording, distribution and promotion at BETA Records brings independent artists closer to enjoying all the advantages formerly reserved for artists on one of the four major record labels," notes Chris Harper, BETA's Chief Experience Officer.

About BETA Records:
Blending 21st century digital technology with traditional brick-and-mortar approaches, BETA Records is both online and terrestrial. Using a growing network of offices, BETA finds, produces, and showcases unsigned artists and distributes content to fans globally.

bron

Universal finds new way of distributing music - Ringles

2007-09-18T02:37:00.000-07:00

Still experiencing an inner struggle after not renewing its contract with iTunes, Universal Music has now thought of a fun, new way of distributing music and additional content. Ringle, as that's its name, is an 'offline' retail product that will feature three songs, one ringtone and a wallpaper for mobile phones, all in a flashy, yet to be unveiled package. Already hunted by the likes of Wal-Mart and Best Buy, the Ringle will be very competitive price wise to what iTunes has to offer as it will only cost $5.98, lower than what you'll pay for the same content combination on iTunes. Of course, the problem of it being a retail product still remain, as it will not be as easy to purchase (you actually have to get out of the house!) and it still isn't clear what copy protection method they will use. But, desperate times call for desperate measures. Ringles!

http://www.hardware.info/nl-NL/extcontent/ZpaZbphlmZzGZpSUyA/Universal_finds_new_way_of_distributing_music__Ringles/