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The Movie Industry Changes The Picture
April 8, 2011
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"Regardless of how this specific price point works out, the fact that Hollywood can try it illustrates why the movie business is faring much better against the digital disruption that has blown apart the music and newspaper businesses."
-- Peter Kafka, from his article 'Hollywood Rolls Out $30 Rentals. Smart.' ( http://tiny.cc/i6guy )If you haven't already heard about or read it elsewhere, Hollywood's top studios now have agreed to rent "premium VOD" (Video On Demand) movies for $30 a pop. (http://tiny.cc/2f6cs )
I have already discussed in the newsletter in previous issues why this would come about, and I how it would affect declining DVD sales and video-rental company RedBox.
In my opinion, the film studios have made a wise decision. With the "window" for VOD shortened, more people can now enjoy premium box office films in their homes without paying for parking, paying theater prices for a large butter-popcorn and two large sodas, and without waiting for the film to appear on pay-for-view, or the DVD to be released so they can rent it.
Of course, the Internet has something to do with Hollywood's decision as well. In a big way. By the time many films do currently make it to pay-for-view, a whole lot of people might have already watched it online via file-sharing sites, darknets or Intranets .
Some critics believe this move by the studios is destined to fail in light of ongoing video services available. This from another article: "It remains to be seen if the new service will be able to compete with the growing number of online services," Sofpedia writes. (http://tiny.cc/04v5e )
The "online services" will play a big part in whatever does finally happen down the road. With your TV set evolving into your big screen Internet monitor and entertainment center (seen the ads yet for the Samsung Smart TV?), you'll be able to watch more content than ever before.
Still, Hollywood studios recognizes the fact that they have to do something fast to recapture declining revenues and engage their audiences as much as possible as soon as possible. And that is a good thing indeed.
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THE 'A-SIDE' - TRACK 2
THAT TWITTER THING AGAIN
I'll keep saying what I've said about Twitter for a long time.
Recently Business Insider took a look at Twitter's numbers. Marketing people take note.
According to Twitter's "about" page, the service has 175 million registered users. However, "What ["registered users"] really means is the number of accounts," notes Business Insider. "So, according to Twitter, 175 million Twitter accounts have been opened during Twitter's history." How many people actually use Twitter? Well, there are currently 119 million Twitter accounts following one or more other accounts, according to a source with full access to Twitter's API.
Meanwhile, there were 85 million accounts with one or more followers. "With these figures, and Twitter's claim of 175 million accounts, a little subtraction shows us that there are 56 million Twitter accounts following zero other accounts, and 90 million Twitter accounts with zero followers," Business Insider concludes. By contrast, Facebook says 600 million people visit the site each month, and that half come back every day.
Read the rest here: http://tiny.cc/w7dx5
(And check out comedian Albert Brooks post after his first day using Twitter in the Quotes section below)
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THE 'A-SIDE' - TRACK 3
GRAMMY AWARDS CATEGORIES REDUCED FROM 109 TO 78
This will surely upset those artists in the categories that have been eliminated, but this week NARAS announced they would slash the number of categories to 78 from 109 for next year's ceremony.
Many existing categories will be merged, while some will be dropped outright with contenders from different musical genres required to compete in new, all-purpose categories. Read more about it here: http://tiny.cc/e71nx
(Now if they could only cut the show down to a tight two-hour broadcast that would feature only the biggest awards and great talent performing. Per the article, "Television viewers will not notice the changes, since only about 10 awards are announced during the three-and-a-half hour telecast.")
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THE 'A-SIDE' - TRACK 4
THE iPAD SMOKES THE COMPETITION
Apple grabbed a whopping share (95%) of the global tablet market in the third quarter, even as the company plotted its path to iPad 2.0.
Read more here: http://tiny.cc/1sm5d
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THE 'A-SIDE' - TRACK 5
IT'S THE SAME OLD SONG (The one about the RIAA wasting millions in courts) ... AND IF YOU KNOW THE MELODY, SING ALONG
Oral arguments were heard this week in the first file-sharing case to reach a federal appeals court, as Joel Tenenbaum continued to fight for a further reduction of the $67,500 in damages he was ordered to pay for sharing songs online, the Boston Globe reported. ( http://tiny.cc/jrhzu )
From the Globe article, "They arrived at the federal courthouse in Boston by the busload or joined a Facebook support group promoting the cause. If there is a legal fight that can define their generation, this is it."
And this: "Last year, US District Court Judge Nancy Gertner slashed the award by 90 percent to $67,500, or $2,250 a song, saying the jury's decision was "unconstitutionally excessive." The $67,500 would still serve to deter similar actions, she said. LOL
I guess the judge is not well-informed about darknets, intranets and the latest report that says the file-sharing juggernaut The Pirate Bay has now reached 5 million registered users. (See story below in 'Other News' postings)
Regardless of the outcome of this case, file-sharing won't ever go away (despite LimeWire being shuttered here), and the only thing this will serve to do is make all those who are currently downloading that much more determined to continue to do so if Tenebaum loses.
Either way, the only people winning here? The RIAA lawyers who keep racking up those bills.
And Now For Some News ...
UMG Launches Groovetown Vinyl
PR NEWSWIREThe Universal Music Group Distribution announced this week the launch of Groovetown Vinyl, an online storefront that will sell vinyl records bundled with "lossless" FLAC (Free Lossless Audio Codec) digital audio files at a discounted price.
Read more about it by clicking here.
Rick James Estate Sues UMG For Unpaid Digital Royalties
THE HOLLYWOOD REPORTERLast week I included a story from The New York Times (http://tiny.cc/dhu2h) about how older artists might benefit from the Eminem royalty case.
This week, the estate of late musician Rick James filed a proposed class action lawsuit against major label Universal Music Group, claiming unpaid royalties from the sale of digital songs and ringtones, according to The Hollywood Reporter.
Read more about it by clicking here.
The Pirate Bay Tops 5 Million Users, Yet More Proof File-Sharing Is Not Decreasing
TORRENTFREAKFile-sharing juggernaut The Pirate Bay has reached 5 million registered users, TorrentFreak reports.
Despite efforts from the entertainment industries that have tried to shut the site down for half a decade, The Pirate Bay keeps expanding. TorrrentFreak tells us how they got there.
Read more about it by clicking here.
China's Baidu To Launch Music Service
REUTERSChina's leading search engine Baidu plans to launch its own digital music service in May, following lawsuits and continued pressure on the company from record labels to crack down on unauthorized content available from its music search service, Reuters reported.
With China's population of over one billion, this store could explode with digital music sales.
Read more about it by clicking here.
Android Will Be On Half Of Smartphones World-Wide In 2012
WALL STREET JOURNALIndustry researcher Gartner Inc. said in a new report the Android operating system will likely run on roughly half of the world's smartphones by the end of 2012. The report outlines the handset software's continuing growth.
Read more about it by clicking here.
First Quarter Music Sales In U.S. Shows Only Moderate Decline
BILLBOARDTotal U.S. music sales slipped just 1.3% in the first quarter from the same period a year earlier, thanks to a surge in sales during six of the last seven weeks of the quarter. That marks a sharp improvement from a 6.1% year-on-year sales decline in the first quarter of 2010.
Digital sales are up, and the CD album, which has been declining at an 18%-20% clip over the last few years, also slowed to a 12.8% decline in the first quarter.
Read more about it by clicking here.
Hello Music Launches the First Ever Membership-Only Private Sales Site for Independent Artists
BUSINESS WIREHello Music, the digital music platform and power tool for independent artists, this week announced the launch of Hello Music Deals, the first membership-only private sale site for independent artists featuring limited-time daily deals on musical instruments, recording equipment, gear, accessories and more.
Read more about it by clicking here.
You Tube Plans Big Changes
WALL STREET JOURNALAmid a rise in "connected" living rooms, Google is reportedly planning a major, channel- and original content-driven overhaul of YouTube.
"YouTube is looking to compete with broadcast and cable television ... a goal that requires it to entice users to stay on the website longer, and to convince advertisers that it will reach desirable consumers," reports The Wall Street Journal.
Read more about it by clicking here.
BLOCKBUSTER BIDS:
Bankrupt video rental store chain Blockbuster has received bids from satellite TV provider DISH Network and billionaire investor Carl Icahn
BOSS DOES THE STONE PONEY AGAIN:
This past week Bruce Springsteen performed at the Stone Pony Reunion Show at the Wonder Bar in Asbury Park, New Jersey
THE SOCIAL COLLEGE OF COURSE:
Harvard University ranks No. 1 in StudentAdvisor.com's newly released list of the Top 100 Social Media Colleges -- perhaps not surprisingly, as it where Facebook's creators developed the service while attending as undergraduates.
NO BILLY BOOK:
Billy Joel has canceled the release of "The Book of Joel," a memoir that was set to hit stores in June.
ON THE ROAD AGAIN:
Social Distortion will do a string of U.S. tour dates, kicking off April 26th in Albuquerque, NM and finishing up May 20th in Nashville.
ONLY TIME WILL TELL IF WAS A GOOD DEAL:
Satellite TV provider DISH Network announced on Wednesday that it has emerged as the winning bidder for the assets of bankrupt video store rental chain Blockbuster, with a bid valued at $320 million.
GROOVESHARK OFF ANDROID:
Music-sharing service Grooveshark responded late Wednesday to having its Android app dumped from the Android Market, saying it wasn't sure why, exactly, the app had been pulled. "We were surprised by Google's removal of the Grooveshark App from the Android Marketplace, and are still unclear as to what policies have now been violated," the company said in an e-mail to CNET.
iPHONES WANTED BY 40% OF TEENS:
Nearly four-in-10 U.S. teens plan on buying an iPhone in the next six months, according to Piper Jaffray's latest bi-annual survey of high school students.
LADY ANTEBELLUM TOP COUNTRY DOWNLOAD:
Lady Antebellum's Grammy winner, "Need You Now," became the #1 most downloaded country song of all time this week.
SHAZAAM INDEED:
Mobile music ID service Shazam generated $16 million in revenue during its fiscal year ended June 30th, 2010.
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
"Whether you want to call it talent or not, they have multiple shows on the air."
-- Kris Jenner, defending daughters Kim, Kourtney and Khloe Kardashian, who "work 25 hours a day," to Redbook. Thanks Bruce ... those of us who have seen any of the sex tape that made Kim famous in the first place, already know about her talents."Somebody's singing and you want to say something, and then suddenly you realize you're not on the show and you're listening to somebody else. It's a really odd experience."
-- Simon Cowell, on watching "American Idol" now that he's no longer a judge."Have had much fun talking to everyone today. Best time since I used to go in the original AOL chat rooms as Barbara Streisand."
-- Albert Brooks, posting after his first day using Twitter"I didn't speak with as much clarity as I would have liked. Who am I to say 'Fuck you?' That's not what I meant. I completely understand when artists don't want a show or another artist to interpret their songs. In fact, I respect it. It's their personal work and I'd feel the same way. We get turned down all the time and I've don't fight it or even go back after a rejection."
-- Glee creator Ryan Murphy, apologizing for attacking the Kings of Leon for declining to license their song "Use Somebody" for an episode of the popular television series, in the Hollywood Reporter
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
5-Year-Old Critics Agree: Movie 'Cars' Only Gets Better After 40th Viewing
NEW YORK-According to a poll of 5-year-old film critics released Tuesday, the 2006 Disney-Pixar animated feature Cars only gets better after the 40th viewing.
Read the rest here and laugh: Click Here.
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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