As Music Streaming Grows, Royalties Slow to a Trickle
February 1, 2013
FROM THE NEW YORK TIMES: 'As Music Streaming Grows, Royalties Slow to a Trickle'
As music streaming grows, it's proving it's at cost to professional musicians. From the article, "A decade after Apple revolutionized the music world with its iTunes store, the music industry is undergoing another, even more radical, digital transformation as listeners begin to move from CDs and downloads to streaming services like Spotify, Pandora and YouTube.
As purveyors of legally licensed music, they have been largely welcomed by an industry still buffeted by piracy. But as the companies behind these digital services swell into multibillion-dollar enterprises, the relative trickle of money that has made its way to artists is causing anxiety at every level of the business."
THE 'A-SIDE' - TRACK 2
THE INDEPENDENTS REACH OUT WITH A MANIFESTO
The Worldwide Independent Network, a representative organization exclusively for the worldwide independent music community founded in July 2006 in response to business, creative and market access issues faced by the independent sector everywhere, has issued a manifesto from MIDEM.
Forming a Global Council, the manifesto "opposes further market consolidation and confronts market abuse."
THE 'A-SIDE' - TRACK 3
NOKIA LAUNCHES SUBSCRIPTION MUSIC SERVICE
Nokia today announced Nokia Music+, a new subscription-based upgrade to its free-to-stream mobile music service. The new service charges users $3.99 (3.99 in select European markets) per month for additional features.
THE 'A-SIDE' - TRACK 4
HAVE YOU EVER WANTED TO LIVE THE MILLIONAIRE ROCK STAR LIFESTYLE? THIS GUY DID ... BUT READ ON
I guess it's every musician's dream to make it big and live the millionaire lifestyle with charter jets, yachts, expensive homes, and more.
That exactly what Lights Over Paris frontman Robert Mawhinney did. But he did it by tricking banks into funding his extravagant lifestyle, authorities say. "Court documents reveal that over a two-year period that began in August 2009, Mawhinney sought out loans from Comerica Inc. amounting to $6.2 million, the Associated Press reports."
And boy, did he live it up BIG time.
THE 'A-SIDE' - TRACK 5
READ ABOUT DAVE GROHL'S 'SOUND CITY' DOCUMENTARY
In his new movie about the famed Van Nuys recording studio, the drummer-turned-director goes beyond music and delves into something much deeper.
Yes, it's a look at the studio and established artists like Neil Young, Tom Petty, Fleetwood Mac, Nirvana. Johnny Cash, Red Hot Chili Peppers, Foreigner, Rick Springfield, and others who recoded there, but it goes deeper than that.
THE 'A-SIDE' - TRACK 6
THIS SONGWRITER/SINGER NOT AT ALL 'GLEE' FUL
From CNN, "That was a pretty catchy, sing-songy version of Sir Mix-A-Lot's rap hit "Baby Got Back" in Thursday night's episode of "Glee." It was also very familiar to fans of indie singer-songwriter Jonathan Coulton.
As angry Coulton fans are clamoring on Twitter, Coulton arranged and recorded an eerily similar "Baby Got Back" cover. So similar, in fact, that the "Glee" version included Coulton's line "Johnny C's in trouble," replacing the lyric "Mix-A-Lot's in trouble" in the original song."
THE 'A-SIDE' - TRACK 7
OPINION: JUSTIN TIMBERLAKE'S SINGLE SALES ARE NOT THAT HOT
Justin Timberlake's highly anticipated new single "Suit and Tie" is apparently not as hot as it should be at retail.
Showbiz411's Roger Friedman wonders if it's because Justin's been away too long, whether it's Jay-Z's involvement, or something else.
THE 'A-SIDE' - TRACK 8
THE FUTURE IS CLOSER THANK YOU THINK: DIGITAL DNA ON THE WAY
An article in The Wall Street Journal says a new technique one day may replace hard drives as Web leads to information deluge
Scientists have stored audio and text on fragments of DNA and then retrieved them with near-perfect fidelity -- a technique that eventually may provide a way to handle the overwhelming data of the digital age.
THE 'A-SIDE' - TRACK 9
GOING MOBILE BIG TIME
Is there anybody still out there without a cellphone?
A whopping 1.6 billion mobile phones were shipped globally in 2012, 700 million of which were smartphones, reports Engadget, citing new data from research from Strategy Analytics.
Last year, Samsung shipped 213 million devices -- more than any other phone maker. Conversely, Apple, the smartphone pioneer saw less growth in 2012 than in 2011 and may hit a plateau in market share in 2013, according to ABI Research.
THE 'A-SIDE' - TRACK 10
RDIO GOES GLOBAL WITH STREAMING
Music subscription startup Rdio just expanded it free music streaming service to 15 of the 17 countries in which it already operates, including the UK, Australia, Belgium, Canada, and France. U.S. users have access to the free steaming service since 2011.
"It believes that free is a powerful way to help get people in the door," The Next Web writes of Rdio.
THE 'A-SIDE' - TRACK 11
YOUTUBE WILL TEST PAID SUBSCRIPTIONS
Google is planning to test out paid YouTube subscriptions Geek.com reports. In the near future, qualifying producers could charge willing subscribers anywhere from $1-to-$5 a month for their content. What's wrong with YouTube's ad-supported model? According to Geek.com: "These new channels are significantly larger scale operations with budgets that can only be reached with the help of some guaranteed monthly cash."
THE 'A-SIDE' - TRACK 12
OH YES, IT'S A TABLET WORLD
During the last quarter of 2012, about 52.5 million tablets were shipped worldwide, according to new estimates from IDC.
"Apple's iPad once again took first place, although it slipped slightly to 43.6% market share," The Next Web notes, citing IDC's report. Samsung and Amazon ranked second and third, respectively, though their combined market share was still not enough to equal that of Apple.
THE 'A-SIDE' - BONUS TRACKS
* BlackBerry 10 is finally here. With "over 1,000 top apps committed to BlackBerry 10," the Z10 is the flagship new phone, with a modern design and features fans want. Read more
* "Windows 8 itself is still not successful," Acer Pres. Jim Wong told Bloomberg in an interview. "The whole market didn't come back to growth after the Windows 8 launch, that's a simple way to judge if it is successful or not."
* Facebook shares sag as investors, analysts question future. The company's share price is down 3.5% in early trading following yesterday's earnings report. One analyst wonders: where are the near-term catalysts? Read more
* Apple is getting ready to launch a new iPad model with 128 GB of memory storage, based on a rumor released by 9to5Mac. Read more
* Sony boosts Music Unlimited to 320kbps: In a bid to compete with rival Spotify, Sony has announced it is increasing the quality of its Unlimited Music streaming catalog to 320 kbps. Read more
* If you haven't checked out Google Play (Google's online store for books, music, electronics, etc.) as an alternative to amazon and other online stores, check it out here
Short News Items ...
HAVE ANY ROCK'N'ROLL COLLECTIBLES?:
Blow the dust off your old vinyl because VH1 Classic is digging through pop culture collectibles with hosts Gary Dell'Abate and Jon Hein, to find out what they're really worth in the new series, "For What It's Worth." Premiering Thursday, February 21st at 10 PM on VH1 Classic, "For What It's Worth" will explore the intricate world of music and pop culture memorabilia, and the mind of "The Collector."
CLIVE TO KEYNOTE AT SXSW:
Sony Music Entertainment chief creative officer and legendary industry exec Clive Davis will be the keynote speaker at the 2013 South By Southwest.
TINA GIVES UP U.S. PASSPORT:
Tina Turner, who has been living in Switzerland since 1995, will soon receive Swiss citizenship and will give up her U.S. passport, Swiss media reported Friday. "I'm very happy in Switzerland and I feel at home here ... I cannot imagine a better place to live," Turner told German language daily Blick.
TIMBERLAKE IN MARCH:
Justin Timberlake's highly anticipated new album, The 20/20 Experience, will be released on March 19th on RCA Records.
Duane Allman will get a fitting tribute to his legacy on March 5th when Rounder Records releases a comprehensive seven-disc box set. Curated by Scott Billington and Bill Levenson and produced by Levenson and Allman's daughter Galadrielle, Skydog: The Duane Allman Retrospective spans the guitarist's too-short career. The 129-song compilation featuring recordings from Allman's early garage-rock days in the Allman Joys, the Escorts and the Hour Glass; studio sessions with Aretha Franklin, Wilson Pickett, Boz Scaggs, Clarence Carter and more; and, of course, selections from the Allman Brothers Band and his work with Derek and the Dominoes.
GOOD LUCK WITH THIS ONE:
"American Idol" is at the centre of a racism row after nine black former contestants claimed that they were all forced off the show as part of a racist plan to boost ratings. The singers, from various seasons, are preparing to take legal action against the hit talent show which they say "permanently and severely impaired" their personal and professional lives. Read about it
OF COURSE HE'LL WRITE RAP SONG ABOUT IT AND MAKE EVEN MORE MONEY:
Chris Brown allegedly punched fellow singer Frank Ocean during an argument over a parking space, according to the Los Angeles County Sheriff's Department. If Brown did in fact strike Ocean, the singer could be in legal trouble: Brown was sentenced to five years' formal probation for his 2009 assault on then-girlfriend Rihanna.
OF COURSE HE'LL WRITE RAP SONG ABOUT IT AND MAKE EVEN MORE MONEY, #2:
Rapper Rick Ross crashed a silver Rolls Royce while trying to avoid gunshots early on the morning of his 37th birthday, Fort Lauderdale police said. The rapper was driving in the city at 5a with a female companion when he heard shots being fired in his direction and sped away, losing control of his vehicle, police said.
Eric Clapton will release a new album, Old Sock, on March 12th, marking the guitar icon's 21st studio record. The LP also includes several guests: Blues legend JJ Cale lends backing vocals and guitar on "Angel," R&B singer Chaka Khan sings back-up on "Get On Over," Clapton's old Blind Faith mate Steve Winwood plays organ on "Still Got the Blues" and Paul McCartney plays bass and sings on "All of Me."
An hour before Coachella announced this year's lineup, the Red Hot Chili Peppers were just agreeing to take the headliners' spot.
KEYS TO BLACKBERRY:
At the close of its BlackBerry 10 launch event this week, BlackBerry CEO Thorsten Heins introduced 14-time Grammy Award winning singer, songwriter and entrepreneur, Alicia Keys, as BlackBerrys new Global Creative Director.
Johnny Cash will be memorialized by the U.S. Postal Service this year with his very own stamp. The country legend will be a part of a new "Music Icons" series of stamps, and his version features a photograph by Frank Bez taken for 1963's Ring of Fire: The Best of Johnny Cash.
NICKS & LADY ANTEBELLUM:
Stevie Nicks and country trio Lady Antebellum convened at L.A.'s Sony Pictures Studios Tuesday to tape an upcoming episode of CMT's 'Crossroads'
15 MINUTES OF FAME AND YOU GET A SHOW? YUP:
Ke$ha is going to be on MTV this April. The singer announced 'Crazy Beautiful Life', a new documentary series. The series will track the recording of the singer's latest album, Warrior, and her exploits around the world.
'ENTOURAGE' BIG SCREEN:
"Entourage" is coming to the big screen, Deadline reports. Warner Bros. has green-lighted a movie version of the HBO series that ran from 2004-11, which would reprise the exploits of Adrian Grenier's movie star Vinnie Chase, his cronies and, of course, his backbiting agent Ari Gold, portrayed by Jeremy Piven.
STUPID IS AS STUPID DOES:
Rihanna is back with the man who beat her, Chris Brown: "We Know Exactly What We Have Now. Even if it's a mistake, it's my mistake." she tells Rolling Stone. Great role model for young women, Rihanna.
Sonicbids, the privately held, Boston-based platform for bands to connect with promoters and market themselves online, has been acquired by Backstage, a provider of casting, auditions and entertainment-industry opportunities. Terms of the deal were not disclosed.
LOOKING FOR HOME IN L.A.?
Madonna is looking to unload her Beverly Hills mansion for a mere $22.5 million. The "Material Girl's" nine-bedroom, 15-bathroom home, listed by Sotheby's, features a two-story dining room, a junior dining room, a full-size screening room, a gym and two guest houses.
SIGNS OF INTELLIGENT LIFE HERE ON EARTH:
Is MTV's 'Teen Mom 2' headed the way of 'Jersey Shore'? The NY Post reports the reality show's "days are numbered" in the wake of erratic behavior by (moronic) co-star Jenelle Evans. (One can only hope The Post is right. Knowing MTV, they are just as likely to do 'Teen Mom 2' if it means ratings)
Metallica will receive a Lifetime Achievement award at the fifth annual Golden Gods Awards in L.A. in May.
The Ohio Players frontman Leroy "Sugarfoot" Bonner died Saturday in his hometown near Dayton, OH, according to his Facebook page. He was 69. No cause of death was announced.
David Braun, 81, a prominent music business attorney and former PolyGram label head, who represented Bob Dylan, Neil Diamond, George Harrison and Michael Jackson, among others, passed away in Santa Barbara after a long illness.
Quotes of the week
"I'm not going to get married, Ryan. I'm not interested in that. I don't have to prove to people that I'm straight."
-- Chelsea Handler, after pestering guest Ryan Seacrest on when he's going to pop the question to girlfriend Julianne Hough, on her talk show.
"She was getting paid, but at the same time we were selling more records and selling out concerts on multiple nights,"
-- Prince, talking about Madonna, and problems he had with Warner Bros Records, in the New York Daily News
"I think that Nirvana had signed with the David Geffen Company and they gave us . . . maybe $100,000 to make, or $60,000 to make a record. And rather than just send us a check to Seattle, they decided they wanted us to come to L.A. so they could keep an eye on us. We couldn't afford one of the fancy places downtown, so we found out about this place that had an old Neve board. None of us had ever been there before."
-- Dave Grohl, talking about the Sound City studio in his new documentary 'Sound City' in Rolling Stone
"I do believe her life would have turned out differently. It would have been easier for her to get sober and stay sober. Instead she was with someone who, like her, wanted to party. To me, he never seemed to be a help to her in the way she needed."
-- Whitney Houston's mother Cissy, talking about Bobby Brown being married to Whitney in hger new book 'Remembering Whitney'
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Nation Would Not Be Surprised At This Point If Chris Brown Allegedly Traveled Back In Time And Punched Anne Frank
LOS ANGELES—Following reports of singer Chris Brown's recent involvement in a vicious brawl over a parking space, Americans admitted Monday they would not be all that surprised at this point if news leaked that the short-fused R&B performer had somehow traveled back in time and punched Holocaust victim Anne Frank in the face.
The Music Industry Past, Present & Future, And The Internet I answer questions on EconTalk
I did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
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Smart Marketing Consulting Services has been in business sixteen years, and consults clients in the music, entertainment, attraction, media, and technology industry on branding, marketing, online exploitation, maximizing new media, and more.
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