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And The Winner Is...
February 18, 2011
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Did you watch the Grammys?
If you haven't heard Arcade Fire won for Best Album Of The Year. (Resulting in most people watching asking the question, "Who the hell is Arcade Fire?")
It's great news to see such a young, talented band be rewarded by the industry on Grammy night. It would be even more rewarding if Arcade Fire's album vaulted into the Top 10 (which it hasn't as of yet) and more people would buy more music from REAL artists that make albums that contain far more than just one or two good tracks,
So what's the #1 album in Billboard this week? 'Now That's What I Call Music, Volume 37'. It sold a whopping 150,000+ in change.
The 'That's What I Call Music' volumes are the new generation K-Tel albums. All the yummy hits on one album so you don't have to buy all the albums by all the artists on the collection, since most of the albums aren't worth buying. Sure, they'll throw in a Taylor Swift and sometimes a Lady GaGa. But how many albums are Mike Posner, Far East Movement, Pitbull, Edward Maya, Willow Smith, The Ready Set, Andrew Allen, Mindless Behavior, Jacob Latimore and Greyson Chance, going to sell? How many albums by those people did you buy? You can find all of them on the latest volume.
There's nothing wrong with these collections. They're cheap ... and if they sell in good quantities (this one has a long way to go in that category), I suppose they provide labels and artists an ancillary revenue stream after the one-off tracks have gone their course at radio and retail.
But after a Grammy show where great talent like Arcade Fire, Mumford & Sons, Esperanza Spalding, The Avett Brothers and others were showcased, it would have been nice if some of them sold more than a rehashed collection of recurrent hits.
In the Los Angeles Times last week, Clive Davis said in an interview (the link to that is in my News items below) "We've got to be careful that we not just concentrate on having hit records, but that we launch the careers of stars. We just have to make sure we don't just become that industry convert to singles and abandon albums. We need the full panoply; we still need the great album artists, whether historically that's been the Who or Pink Floyd or Bruce Springsteen. With some of the new artists like Arcade Fire and Mumford & Sons, I'm hopeful we're not going to be that homogenized."
Amen to that, Clive.
Let's hope the labels reinvest in good A&R and artist development again. Otherwise, the #1 album in 2020 will be 'Now That's What I Call Music, Volume 125'
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THE 'A-SIDE' - TRACK 2
IT'S ALL THE INTERNET'S FAULT, AD NAUSEUM, ETC.
Here we go again.
This week yet another industry person chimes in on how the Internet is destroying the future for music and musicians.
"EMI's problems should be a wake-up call. How did they get into this mess? It all comes back to the impact of illegal downloading. We have to change the legislation in this country and come down much harder on piracy. Otherwise, guys in little bands starting out now are never going to be the next Rolling Stones. When you download an album illegally, it's not the record company guys that get fucked - those people are still on massive salaries - it's 19-year-old kids, it's guys in bands making 100 pounds a gig." -- Creation Records founder and indie stalwart Alan McGee
Dear Mr. McGee: I pose to you the same question I have posed numerous times in this newsletter to all who have made similar statements: Do you actually believe that if you could eliminate all the websites all over the world that people go to for illegal download purposes, that all the problems that currently exist in the industry for record labels and artists would disappear?
It is too late to try and legislate the technology already developed and in the hands of hundreds of millions of people. More important, as any computer-savvy person knows, there really is no way to ever stop people from creating even newer technologies to skirt whatever legislation might be written anyway.
What happened at EMI and might happen to other labels because of technology and the Internet is indeed a cause for concern. But legislation is not the answer.
The answer has always been to realize that the industry cannot turn back the hands of time, to seek new business models and learn to co-exist in a world with the technology at hand.
When did EMI ever sit down with the best creative minds in technology and try to create new revenue models? If they didn't (and if other labels still haven't done so), they are derelict in their duties.
The first decade of the 21st century is already past, the Internet is decades old, and all the politicians and all the lawyers won't ever put the industry back together again the way it once was.
Oh yes, and as far as those "19-year-old kids" you are worried about, Mr. McGee, I don't think they are as worried as you are about their futures. They use the Internet for their means of exposure. They already know that their future won't be made with record sales; it will be made in live touring, merchandising, licensing and sponsorships.
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THE 'A-SIDE' - TRACK 3
THIS IS WHAT HAPPENS WHEN YOU HAVE REAL ARTISTS (DESPITE ALL THE ILLEGAL DOWNLOADING)
Lady GaGa shattered all iTunes records with her new single the day it was released.
In just five hours, "Born This Way" became the #1 song in 21 countries. America, Spain, Germany, United Kingdom, France, Portugal, Mexico, Italy, New Zealand, Norway, Sweden, The Netherlands, Ireland, Finland, Canada, Greece, Switzerland, Belgium, and Austria, among them.
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THE 'A-SIDE' - TRACK 4
VERIZON BLOWS OUT SALES WITH iPHONE
For those who didn't already hear about it, Verizon sold out its online stock of iPhones on Day 1. (Source: http://tiny.cc/7n06x )
In addition, growth from Google's Android and Apple's iPhone helped spur worldwide smartphone shipments to rise 74.4% in 2010, to 302.6 million units, according to a report from market research firm IDC.
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THE 'A-SIDE' - TRACK 5
REDBOX TO START STREAMING LIKE NETFLIX, AND MOBILE MOVIES GETTING BOOST
DVD rental system Redbox continued to offer few details, while reiterating last week it would follow Netflix by attempting to launch an online streaming service in 2011. Separately, the CEO of parent Coinstar said it is exploring offering videogames in its kiosks nationwide, an expansion on a current test. Read about it here: http://tiny.cc/b8p45
More streaming news: Future Android devices will be able to instantly stream TV shows and movies from Netflix, thanks to new Snapdragon mobile processors from Qualcomm. "Instant streaming is the hottest new way to get movies into the hands of users," writes VentureBeat. To date, however, "It has been possible on connected home machines such as video game consoles, Blu-ray players, and connected TVs ... But mobile devices haven't really been capable of streaming movies and TV shows in a reliable way." If Qualcomm can deliver, Android users will be able to watch their Neflix movies on the fly without having to worry about download time.
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THE 'A-SIDE' - TRACK 6
TWITTER OVERVALUED?
Word that Twitter raised another $80 million, along with new valuations of $8 billion-to-$10 billion, has everyone talking tech bubbles -- or at least reassessing the value of today's tech leaders.
"This for a company that, people familiar with the matter said, had 2010 revenue of $45 million -- but lost money as it spent on hiring and data centers -- and estimates its revenue this year at between $100 million and $110 million," says The Wall Street Journal.
Read the rest here: http://tiny.cc/g5dkh
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THE 'A-SIDE' - TRACK 7
I HAVE BEEN SAYING THIS NOW FOR SEVERAL YEARS
I have been telling people for some time now how little money there is in writing content on the Internet. Now, New York Times media writer David Carr takes on the hottest topic bedeviling journalists today: the cost of writing for free.
"The Huffington Post, social networks and traditional media may all seem like different animals, but as advertising, the mother's milk of all media, flows toward social and amateur media, low-cost and no-cost content is becoming the norm," he writes. For those of us who make a living typing, it's all very scary, of course."
Carr ends with a pertinent reference to Mayhill Fowler, the citizen journalist whose work for HuffPo was nominated for a Pulitzer -- but garnered not a cent of revenue for the writer herself. These days she's just posting on Twitter: "The check is in the mail, Mayhill," he quips.
Read the article in the New York Times here: http://tiny.cc/aemct
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THE 'A-SIDE' - TRACK 8
TABLETS EVEN MORE EXPLOSIVE THAN PREVIOUSLY THOUGHT
iSuppli predicts annual tablet computer sales, including the Apple iPad, will increase 1,110% from 19.7 million in 2010 to 242.3 million in 2015. Those using the Android operating system are predicted to grab more and more market share.
Read more here: http://tiny.cc/y9zf2
And Now For Some News ...
Clive Davis Chats With The L.A.Times
LOS ANGELES TIMES"We've got to be careful that we not just concentrate on having hit records but that we launch the careers of stars. We just have to make sure we don't just become that industry convert to singles and abandon albums. We need the full panoply, we still need the great album artists, whether historically that's been the Who or Pink Floyd or Bruce Springsteen. With some of the new artists like Arcade Fire and Mumford & Sons, I'm hopeful we're not going to be that homogenized."
Read more about it by clicking here.
Apple Is The Most Valuable Company On Earth
CNBCAnalysts have had three weeks since Apple reported its best quarter ever to break down the results and the verdict is finally in: Apple should be the most valuable company on earth.
Read more about it by clicking here.
Pandora Files For IPO
PR NEWSWIREShowing the resilience of ad-supported streaming media -- and perhaps the over-eagerness of investors -- Pandora has filed an IPO and plans to raise $100 million.
Bloomberg reports, the personalized radio platform "appeared to be a bust three years ago when the business was buried in music-royalty fees." Yet, in a dramatic turnaround, "Pandora negotiated better terms with the music industry, narrowed its losses and attracted more than 80 million users." paidContent points out, "The filing shows a company operating at a loss but with advertising revenues rising dramatically."
Read more about it by clicking here.
Sony Debuts Its New Music Serice
SYS-CONSony on Thursday announced the launch of its new subscription-based music service, "Music Unlimited powered by Qriocity," in the U.S., Australia and New Zealand.
"Music Unlimited powered by Qriocity(TM)" is a new, cloud-based, digital music service which gives music lovers access at any time to a constantly growing catalogue of millions of songs from major labels including Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Music as well as leading independent labels and major publishers worldwide.
The "Music Unlimited powered by Qriocity" catalogue will initially offer about six million songs and will continue to expand over time.
Read more about it by clicking here.
Last.fm Sez Free No More
MARKETING CHARTS.COMLast.fm, the music streaming service owned by CBS, announced last week that it will begin charging a subscription fee for the version of its radio service streamed to mobile and home entertainment devices.
Now let's see how many people will actually pay for it. Will you?
Read more about it by clicking here.
Warner Music Revenues Down, Digital Just Up A Notch
MARKETWIREMajor record label Warner Music Group said its first-quarter digital revenues rose a modest 1.6% to $187 million, accounting for 24% of its $789 million in total revenues -- which were down 14% from the same period a year ago.
Read more about it by clicking here.
Loud Is On The Way Out
MIX ONLINE(Thanks to Portland's Notorious DJ Clarence Duffy for this item)
The future of music delivery is not the CD. Sure, the CD will be around for selling offstage and at gift shops, but the CD is on its way out as the dominant delivery format. How many young music buyers actually buy CDs? How many artists' primary delivery format will be CDs when the recording school graduates of 2011 are in the prime of their careers 10 years from now?
File based delivery is the future. Whether it's iTunes, Pandora, iPods or whatever, file-based playback is how most people listen today and it will completely replace the CD in the very near future.
Read more about it by clicking here.
Berklee & Steve Vai Want To Break Guiness Record For Online Guitar Lesson
BERKLEE MUSICBerklee Music, the online continuing education division of the Berklee College of Music, along with guitar virtuoso Steve Vai, announced "a call to action for guitarists around the world to join forces and set the Guinness World Record for the largest online guitar lesson on March 3rd, 2011."
Read more about it by clicking here.
Smartphones Outsell PCs
READ WRITE WEBMarking a major milestone for mobile technology, smartphone sales in the final quarter of 2011 passed global PC shipments for the first time in history. "Simply put, smartphones just outsold PCs for the first time ever," ReadWriteWeb summarizes. Makers of mobile devices distributed a total of 101 million smartphones in the last three months of the year -- up 87% year-over-year, according to International Data Corp.
Read more about it by clicking here.
3-D TV Without Glasses Is Not Happening Anytime Soon
TWICEThere's a "false expectation" that glasses-free 3D TV is set to come very soon, because major companies in the field have been demonstrating the feature, writes Stewart Wolpin.
However, such companies know -- and so should we -- "that affordable glasses-free 3D is a chimera, a myth, a ghost. What the TV makers aren't telling you is that the technology and the pricing for glasses-free 3DTV is more than just a few years off of being ready for the mass-market retail floor." By hyping this feature, TV makers are just adding to "consumer confusion," says Wolpin.
Read more about it by clicking here.
NEW iPAD ON WAY:
Apple Inc. has started manufacturing a new version of its iPad tablet computer with a built-in camera and faster processor, reports The Wall Street Journal. The new version now under production will feature a front-facing camera, faster processor and more memory, among other improvements.
NO MORE BUZZ ON IDOL:
Last week's numbers are in and it seems American Idol's first Hollywood show didn't do as well as past years. It was down 4% week-to-week, making it the lowest Thursday showing in Idol history.
ELVIS HITS THE ROAD:
This May Elvis Costello will revive the "Spectacular Spinning Songbook" for an American theater tour. Originally staged in 1986, the tour will feature a large wheel of 40 songs that is spun between songs to randomly determine the setlist.
YOU TUBE 3D:
YouTube has partnered with LG Electronics to help users capture 3D images and video via mobile devices and upload it all directly to the Web. To get in on the 3D action, consumers will need LG's new Optimus 3D smartphone, which uses Google's Android mobile operating system, and features a dual-lens camera for 3D image and video capture.
JOBS WORKING OUT OF THE HOUSE:
Apple CEO Steve Jobs, who announced a third medical leave of absence from the company three weeks ago, continues to take business meetings at home and by phone, and has also been spotted at the company's headquarters and out in public with company executives, people familiar with the matter told The Wall Street Journal.
SONY SEZ NO GO TO JAILBREAKING PS3:
Sony has asked a federal judge to compel Google and Twitter to turn over the identities of users believed to be involved with sharing code that can be used to "jailbreak" its PlayStation 3 video game console, so it can play pirated software, Wired.com reports. In other Sony news, they announced that they have now shipped more than 150 million units of its PlayStation 2 console, since the device's launch in 2000.
SONY MAY PULL SONGS OFF iTUNES:
MacNews is reporting that Sony might pull its catalog of songs of iTunes once it launches its own online store to compete with the service. ( http://tiny.cc/g0pq3 )
ARETHA TO PERFORM SOON:
Aretha Franklin has announced her first show since canceling a run of concerts last year due to illness at the Seneca Niagara Casino in Buffalo, New York on May 28th. Franklin will also release a new album, "Aretha: A Woman Falling Out of Love," on May 3rd through WalMart.
THE CARS ARE ROLLING:
The Cars have recorded a new album and it will be released on May 10th by Hear Music. "Move Like This" was recorded last year in Los Angeles and upstate New York by the entire surviving band
IT WAS 50 YEARS AGO:
Fifty years ago, February 9th, 1961 -- The Beatles made their debut at The Cavern Club in Liverpool, England.
SATELLITE RADIO UP:
Sirius XM Radio added 1.4 million net new subscribers last year, ending 2010 with a record 20.2 million subscribers, up 8% from the end of 2009.
HALL OF FAME UPDATES:
The Rock and Roll Hall of Fame has revealed that Neil Young will induct fellow iconoclast Tom Waits; Elton John will do the honors for his primary influence Leon Russell; and Paul Simon will honor fellow Brill Building songwriter Neil Diamond. Additional "peechifying" will be done by Rob Zombie for Alice Cooper, John Legend for Dr. John and Bette Midler for Darlene Love. Elektra Records founder Jac Holzman will be inducted by Doors drummer John Densmore, while Speciality Records founder Art Rupe will be inducted by Lloyd Price.
NOT THIS TIME:
Radiohead, the band that let fans choose what they would pay to download its last album, "In Rainbows," has this time around set price points for downloads of its forthcoming new album, "The King of Limbs."
BONNAROO LINEUP:
Bonnaroo has officially announced the lineup for its 10th anniversary festival. Headliners include Eminem, Arcade Fire, The Strokes, Lil Wayne, My Morning Jacket, Widespread Panic and The Black Keys. It will also feature the only festival appearance of Buffalo Springfield, featuring original members Neil Young, Stephen Stills and Richie Furay.
MORE BIEBER BIG-SCREEN:
A deluxe version of the Justin Bieber feature doc "Never Say Never" -- including 20 musical segments not in the original movie -- will hit theaters on March 4th. The expanded flick will be titled "Never Say Never 2.0."
ON THE ROAD AGAIN:
David Crosby and Graham Nash will hit the road for their first joint tour since 2008.
FAKE iSTUFF SEIZED BY FEDS:
Authorities in Los Angeles have seized over $10 million in counterfeit iPods, iPhones, Sony PSPs and other gadgets, the Los Angeles Times reports.
VERIZON LIKES GAGA:
Verizon announced a contest in which 10 bloggers (nine from within 100 miles of one of the pop star's upcoming "Monster Ball Tour" stops and one international winner) will be selected as official "tour bloggers," with special VIP access to the show and the venue.
OPRAH OWN NOT SO GOOD:
In its fifth week of programming, OWN: The Oprah Winfrey Network's ratings are significantly lower than last year's numbers for Discovery Health, the network it replaced. OWN plummeted 17% last week from the week before for its core audience, women 25-54.
PASSING:
Gary Moore, who played guitar for Thin Lizzy during three separate stints and also had a successful career as solo artist, died two weeks ago at the Kempinski Hotel in Estepona, Spain.
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.
Quotes of the week
"We've started to see a trend with kids this age and what they can do. I like the idea that a 12-year-old on this show can compete with an older singer ... times have changed. You have to make a case-by-case decision based on them as a person. [I learned] I have to be more open-minded. I don't believe Susan Boyle would have got through in the old-fashion audition method ... God only knows what we would have said to [Lady Gaga] if she walked into Idol with a lobster on her head three years ago."
-- Simon Cowell, talking about what he will be doing with 'The X factor' when it airs this fall on Fox"Streams of music are eclipsing everything. It's a different digital currency to downloading. You're dealing there with 175m single tracks bought a year compared to 7bn streams of music. The revenues are significantly growing, and I fundamentally believe that streaming and subscription models with unlimited access on all devices are the future of our business. But will people still listen to albums, or just single tracks, or send playlists to their friends? Answer: all of the above."
-- David Joseph, the handpicked successor of Lucian Grainge as CEO of Universal Music U.K. in 2008, quoted in The Guardian"Who the f*** is Kim Kardashian? Some stupid old tart from somewhere or other."
-- Elton John, on his confusion over Kim Kardashian, to The Word. (But he got it exactly right.)"Justin doesn't study the people who made it, he studies those that haven't."
-- Justin Bieber Manager Scott Braun"Let me explain, you foreigners: You do not punch Anderson Cooper - you punch Snooki. That's how we do it here. You keep your dirty hands off our silver fox."
-- Jimmy Kimmel, stepping up for the CNN correspondent who was attacked by a group of protestors while reporting in Egypt, on his late show. I wish they would take your advice Jimmy."Those events that look so much fun in the photos you see ... it's mostly people looking over their shoulders at everyone. They're MISERABLE, those parties."
-- Andrew Garfield to DETAILS on Hollywood parties.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Joe Walsh Wakes Up On Stage Mid-Solo Again
The Blogs
Check out Jerry Del Colliano's (the founder of INSIDE RADIO) daily blog, by clicking here: http://www.insidemusicmedia.blogspot.comWebsite
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
Smart Marketing Consulting Services
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.
"And the beat goes on, the beat goes on ... drums keep poundin' rhythm to the brain."
"Work is life, you know, and without it, there's nothing but fear and insecurity." -- John Lennon
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