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The Storm In The 'Clouds'
April 15, 2011
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"Technology makes it possible for people to gain control over everything, except over technology."
-- John TudorLast July in an issue of the newsletter I write the following in my section titled "The Clouds Are The Future:" From The Center For Media Research come this news: "According to the fourth "Future of the Internet" survey conducted by the Pew Research Center's Internet & American Life Project and Elon University's Imagining the Internet Center, a solid majority of technology experts and the general public participating in the survey expect cloud computing will mostly replace desktop computing by 2020. That is, most people will access software applications online and share and access information through the use of remote server networks, rather than depending primarily on tools and information housed on their individual, personal computers. They say that cloud computing will become more dominant than the desktop in the next decade. ("Cloud computing" is the usage of remote server-based, rather than desktop-based, tools and information. Software and data is virtually stored on the Internet, meaning computer users do not need to download any software or maintain a physical database to store information). Read more here: http://tinyurl.com/2fvrgep
I included a few news articles that week as well about Cloud Computing with the comment, "It's happening faster than you think." (You can find that complete issue here: http://tiny.cc/0uq2h )
Then last September I wrote: "Apple had already bought cloud-based music company LaLa Media last December and closed it in April (also reported in the newsletter back then), and many watching expected Apple-branded cloud service announcement. As of yet that hasn't happened, but companies don't buy other companies to lose money. They either buy them to break them up into little parts and sell them for more than what they originally purchased a company for, or because they have something else in mind. What is it? I don't know, but pay no attention to that man behind the curtain, for right now Steve Jobs is the Wizard of Oz in technology land. Steve Jobs has said, "You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new."
Recently, the results of a new GfK Business & Technology online survey of 1,000 adults, reports nearly half of consumers today are aware of the "cloud," but only 9% acknowledge that they fully understand it. According to IMS Research, there will be a greater need for consumers to move their data to cloud-based services as the growth of connected devices is expected to reach 22 billion within the next decade. (http://tiny.cc/06c4x )
While consumer awareness might be very low at this point in time, make no mistake about it, cloud computing is moving ahead at light speed and it will radically alter how we use our PCs in the very near future.
One reason we are hearing more about cloud computing right now is because Amazon.com has launched its new Cloud Drive locker service. Amazon claims the service has increased sales at its Amazon mp3 store, while restating its stance that it does not need additional licenses to operate the service, Billboard reports. (Read that article here: http://tiny.cc/tr4e4 or more about it here: http://tiny.cc/75gsu )
Amazon is meeting with the major record labels to discuss their Cloud Drive digital music online locker service, since "Music labels are furious that Amazon has not paid for licensing rights to stream music to consumers. They argue that Amazon only has licensing rights to sell digital downloads." ( http://tiny.cc/8n42l )
At the same time, it seems that Google is increasingly frustrated with the state of its licensing negotiations with record labels on its planned music service, and is contemplating following Amazon's lead and launching a less-fully-featured service without licenses, according to multiple reports. (Read more about that here: http://tiny.cc/8w76k )
Apple, Amazon, Google and every major tech company already knows that cloud computing is the future whether consumer awareness is high or not. The technology is already in place and it's already operating.
As the clouds roll in, the battles for who will win the "skies" of the Internet will accelerate, and we will start hearing about new developments every week.
Those battles will include new battles fought over intellectual property, copyrights, content, licensing, and more. And yes, it will get ugly.
In the meantime, the "clouds" are rolling in.
And in this case, as Bob Dylan once said, "You don't need a weatherman to know which way the wind blows."
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THE 'A-SIDE' - TRACK 2
FOLLOW-UP TO MY COMMENTARY LAST WEEK 'THE MOVIE INDUSTRY CHANGES THE PICTURE'
As expected, theater owners are not happy about the plans of major Hollywood film studios to shorten the window to video-on-demand
This summer, movie theater owners could give more of their screens to studios that are not part of the new premium video-on-demand plan that will shorten the window movies are available exclusively in cinemas, reports the Financial Times, citing an interview with John Fithian, chief executive of the National Association of Theatre Owners. (http://tiny.cc/hemo2 )
For example, Paramount Pictures, which has "privately come out against" the project, would be favored over Warner Brothers and 20th Century Fox, which are working on the VOD deal with DirecTV.
Whatever happens, it's obvious a battle is heating up between those who support theaters owners, and the studios.
For another opinion, read 'Stupid Theater Owners Retaliate Stupidly Against Their Coming Irrelevancy' by John Nolte on Brietbart's Big Hollywood website here: http://tiny.cc/lqcdj
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THE 'A-SIDE' - TRACK 3
THE FUTURE OF TV ADVERTISING? TURNER NETWORKS WANTS TO BETTER INTEGRATE COMMERCIALS WITH CONTENT
Turner's three general entertainment cable networks -- TBS, TNT and Tru -- have begun offering advertisers the chance to buy commercials tailored to the content that surrounds them, in the culmination of an effort begun in 2007. This isn't a new practice, but the chance to offer regular messages of this type, rather than typical one-off deals, is.
Here's how it works: Turner tags specific moments in series and movies in an effort to find content that echoes a message advertisers might want to make, and then develops related ad segments.
Read more here: http://tiny.cc/cwtvr
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THE 'A-SIDE' - TRACK 4
THAT PAYWALL FOR CONTENT THING AGAIN: NY TIMES ONLINE TRAFFIC INITIALLY DOWN DOWN 5-15%
Since The New York Times instituted a paywall on its website on March 28th, overall visits to the site have declined by an estimated 5% to 15%, according to a report from market research firm Experian Hitwise.
While it's still too early to tell what the outcome will eventually be, they compared the total visits to NY Times.com for a 12 -ay period before the launch of the pay wall to the 12 days following the launch. For the majority of the days, there was a decrease in the overall visits between 5% and 15%.
You can read more here: http://tiny.cc/kmauw
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THE 'A-SIDE' - TRACK 5
AND STILL MORE ABOUT TWITTER
Fortune tells us that Twitter is not well. "Besides the CEO shuffles, there are secret board meetings, executive power struggles, a plethora of coaches and consultants, and disgruntled founders," it writes. "These theatrics, which go well beyond the usual angst at a new venture, have contributed to a growing perception that innovation has stalled and management is in turmoil."
Twitter exes say they spent much of last year investing in infrastructure to make the service more reliable, while they also have taken steps to address management shortcomings. "Yet even as management tackles its executive and product problems, a major challenge looms," according to Fortune. "Twitter needs to figure out what it wants to be when it grows up."
Jack Dorsey, who co-founded the company four years ago, recently returned to help answer that question. According to Fortune, Twitter CEO Costolo is adamant that the company isn't a "social network." Then, asks Fortune, what the heck is it? Read more here: http://tiny.cc/hmvos
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THE 'A-SIDE' - TRACK 6
THAT REBECCA BLACK YOUTUBE VIDEO
I don't think anybody is keeping count anymore, but YouTube sensation Rebecca Black has now passed 150 million views. Pretty staggering to say the least.
The song is #74 on the Billboard Hot 100 next week, dropping down from #66.
Yeah, it's a "teen record." So are all of Justin Bieber's hits.
How anybody in radio who wants to attract and engage listeners (the same ones who call their request lines for Bieber, et al) can NOT play a monstrous song like this baffles me. Rebecca Black has been on mainstream TV shows such as "The Tonight Show" and "Good Morning America" and now her song is going to be featured in an upcoming "Glee" episode.
150-plus million YouTube views and still going strong. The "focus group" research is done. No need for "callouts" on this one. Ask all those teens who love the song and they will tell you flat out (*as one told me this past weekend) "This is why I don't listen to radio that much ... we watch YouTube and listen online."
And Now For Some News ...
BTIG's Richard Greenfield Asks 'Why Would Anyone Want To Buy Warner Music For $2.5 Billion'?
BTIGA good article by Greenfield that states "Beyond the vanity element that drove Guy Hands/Terra Firma's disastrous acquisition of EMI, we simply do not see a reason why someone would pay $2.5 bn for WMG, particularly with EMI for sale as well. We continue to believe EMI's music publishing asset is far better positioned than Warner Chappell."
Read more about it by clicking here.
Indie Labels To Get $3.6 Million From XM Radio
BLISSTUNESXM Satellite Radio (now Sirius XM Radio) will pay $3.6 million to settle a 2006 lawsuit from independent record labels, over tracks played on devices like the Pioneer Inno that let users record and replay satellite radio broadcasts.
Read more about it by clicking here.
Spotify Considering Offering Less Free Music
CNETSpotify is considering a plan to further cut back the amount of free music it offers to users and is expected to impose new limits perhaps as soon as this week, sources with knowledge of the plans told CNET.
Read more about it by clicking here.
Apple's iPad Will Lead The Tablet Market Into 2015
GARTNERDespite mounting competition from other operating systems (OSs), Apple's iOS will continue to own the majority of the worldwide media tablet through 2015, according to Gartner, Inc. Due to the success of Apple's iPad, iOS will account for 69% of media tablet OSs in 2011, and represent 47% of the media tablet market in 2015. (Yet another reason why buying Apple stock is still a wise decision in my opinion)
Read more about it by clicking here.
The Orchard Is In The Black
WALL STREET JOURNALDigital music and media distributor The Orchard has achieved profitability, and saw revenues increase 14.7% in 2010, the company tells Billboard.
Read more about it by clicking here.
James Cameron Wants To Help Bring 3-D To Television
REUTERSDirector James Cameron isn't content to develop new 3D technology for such movies as "Avatar." Now he wants to popularize the use of the process in episodic television and sports programming, as well as advertising. So, working with "Avatar" cameraman Vince Pace, Cameron founded the Cameron-Pace Group, to "develop a new generation of camera systems, services and creative tools," according to Reuters.
Among the group's missions: lowering 3D production costs to fit realistically into budgets, and "proselytizing to get people to change their perception" about the technology.
Read more about it by clicking here.
U2 BRING IN BIG BUX:
U2 360° has broken the previous record held by the Rolling Stones' Bigger Bang Tour, which grossed $554 million from 2005-'07. With 26 shows left before the Live Nation-promoted tour finishes in Canada on July 30th, U2 360° will also set a new record as the top-grossing tour of all time, with final ticket sales due to surpass $700 million. The tour has played to five million people across Europe, Russia, North America, South America, South Africa, Australia and New Zealand. By the tour end on July 30th, more than seven million people will have seen the production. Now maybe the group's manager, Paul McGuiness, will stop worrying about the Internet.
TWINS LOSE APPEAL:
The Ninth Circuit Court of Appeals has rejected an appeal from the Winklevoss twins, who were seeking a new settlement with Facebook over charges that founder Mark Zuckerberg stole their idea when they were all students at Harvard.
WINNING VIA LOSING:
22-year-old New York native Pia Toscano signed a deal with Interscope Records almost immediately after her leaving "American Idol" because she didn't get enough votes.
OZZIE OWES UNCLE SAM:
Ozzy and Sharon Osbourne owe more than $1.7 million in back taxes to the IRS, according to Financial-Planning.com. The rocker-turned-reality star, 62, and his wife and manager, 58, reportedly owe $718,948 from 2008 and $1.024 million from 2009.
ENGULF & DEVOUR:
Google has acquired mobile entertainment publisher PushLife for a reported $25 million. The technology and talent from Canadian mobile startup PushLife will allow consumers to import their iTunes library into Google's forthcoming music library supporting Android-operated phones.
DUH! REALITY:
Well, maybe the reality finally hit him. After all he was making almost $2 million a week for work in a half-hour sitcom. Charlie Sheen told a Boston radio station he was in talks with "Two and a Half Men" executives about possibly returning to the show.
KEYS 10TH:
Alicia Keys is set to release a 10th anniversary reissue of her debut album "Songs in A Minor" on June 28th. A deluxe two-disc set and a three-disc Collector's Edition will be released with previously released and original bonus material. The album will also be released on vinyl for the first time.
WE LOVE OUR MEDIA:
Buoyed by the ubiquity of digital devices and media, Americans now spend an hour and 21 minutes more per day with media than in 2001, according to a study conducted by Arbitron and Edison Research. That's roughly 20% more time spent not only on the Internet but on broadcast media -- stats that came from a telephone survey of 2,020 people.
APPLE TV:
Apple could enter the television market by the end of this year with its own Internet-connected HDTV, Apple Insider reported
LIVE YOUTUBE:
Google's YouTube last Friday announced the launch of YouTube Live, which will initially offer a limited set of users the ability to stream live video via the site.
LISTEN WHILE YOU PLAY:
Sony has made its Music Unlimited streaming service available on its PSP portable game device.
GUITAR HERO JUST ON HOLD:
A vice president at game publisher Activision told GamesIndustry.biz that the company's "Guitar Hero" franchise is "on hiatus," and not permanently canceled.
IDIOT TO BIG SCREEN:
Green Day's "American Idiot" may soon hit the big screen. According to the Hollywood Reporter, Universal is in negotiations for the screen rights to the stage musical version of Green Day's blockbuster album.
PASSING:
Roger Nichols, 66, Grammy-winning engineer and producer, died April 9th after a yearlong battle with pancreatic cancer. Nichols was best known for his work with Steely Dan, collecting three Grammys
PASSING:
Charles Laufer, 87, a high school teacher who founded the teenage girl magazine Tiger Beat, died of heart failure in Northridge, California this week.
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
"I'm seeing Dave next week. I hear that Dave is saying stuff in the press like, 'I'll do it, but Ray doesn't want to do it.' This is me saying, 'Ray will do it if Dave does it.'"
-- Ray Davies telling Rolling Stone in a new interview he's open to a Kinks Reunion tour."I'm not a tour rat. I'm not crazy about it. It's a challenge, though everybody in the band is telling me that I'm singing better than on the last tour. Again, it's a challenge to sing good up there for two hours when you're 65. I'm really minding my Ps and Qs. I know I'm still smoking and that's bad, but I'm gargling and I've got a lot of lozenges. I pop one every 45 minutes."
-- Bob Seger, in Rolling Stone, talking about his new tour."I have never had plastic surgery, and there are many pop singers who have. I think that promoting insecurity in the form of plastic surgery is infinitely more harmful than an artistic expression related to body modification."
-- Lady GaGa in Bazaar magazine"I figured Detroit was a good place to tell some crack stories. Show of hands -- who here has done crack?"
-- Charlie Sheen, talking to his Detroit audience his first week on the road.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
'Ghost Hunters' Enjoys Surprising 100% Success Rate
LOS ANGELES-Despite the fact that in all of human history not one person has ever provided definitive empirical evidence of the afterlife, the crew of the second-tier cable network television show Ghost Hunters has shocked statisticians and theologians alike with an incredible and uncanny 100% success rate in documenting proof of spiritual presences from beyond the grave.
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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