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What's Wrong With This Picture?
July 4, 2008
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"Music is not a loaf of bread."
-- Wilco's lead singer/songwriter Jeff Tweedy, in an interview in 2004.Whether it's true or not, Us Weekly reported in its latest issue that Madonna was receiving late-night visits from New York Yankee Alex Rodriguez at her Central Park West apartment in New York City. If indeed the Madonna divorce rumors are untrue, as PR flacks for both her and husband Guy Ritchie have put out there (albeit sparingly), then maybe A-Rod was just explaining the whole "Who's on first?" routine to the Material Girl. Either that he was stealing home. (And yes, that's my attempt at a double-entendre, folks)
In other news this week, Z-list celebrity Stephen Baldwin unintentionally motivated a whole bunch of people to vote in the coming presidential election. Baldwin, the brother of bigger star/brother Alec, most recently made an appearance on Donald Trump's "Celebrity Apprentice," and that's probably about the best work he could get at this point. This week, he told Fox News' Laura Ingraham he will leave the country if Barack Obama becomes the next president. Of course, big brother Alec said he'd leave if Bush was re-elected back in 2004 and he's still here, so we have no reason to believe Stephen will keep his word. But I suspect he gave a whole lot of people reason to vote for Obama.
But I digress. Down to business.
Back in 2003 when I started the newsletter, I wrote that the industry was now more about BUSINESS and less about MUSIC. I also said that when label people started referring to the music as "product to fill the pipeline," it was the beginning of bad times.
Giving further proof to the fact some people are still looking at music as "product" is the news this week that Terra Firma's Guy Hands was talking to former Procter & Gamble executive Elio Leoni-Sceti to possibly run EMI's troubled record division. Sceti is currently the head of the consumer product manufacturer Reckitt Benckiser in Europe.
Music, of course, is NOT a generic product. But Guy Hands obviously doesn't care. After all, Sceti worked for Procter & Gamble, makers of Charmin bathroom tissue, Tide detergent, Bounty paper towels, Crest toothpaste, Pampers, Duracell batteries, Bounce, Bounty, Cascade, Cheer, Clairol, Gillette products, Head & Shoulders and so on and so on ... and scooby-doobie-doobie ... and you get the picture, right?
Of course, as you read the list of all those products, you probably thought the same thing I did: "What the hell do any of these products have to do with anything in the music business ... and why would someone from a consumer products company with no experience in the music business have a clue about it?"
One of the most fundamental qualities inherent in all successful business leaders is that they have lengthy experience in the industry they work in, and they have a clear understanding of a company's core competencies within its market segment and industry. Mr. Sceti has neither of those qualifications on his resume. Yes, he's an incredibly successful marketing professional. Yes, he's worked for world-class consumer products corporations. So what?
Unless Mr. Sceti is completely schooled in the challenges facing EMI and the industry, unless he knows how to dialogue with creative talent, unless he knows the basic operational paradigms in the industry ... he's going to be behind the proverbial 8-ball. Big time.
Why Guy Hands would even consider talking to someone like Mr. Sceti is beyond me. Maybe he thinks that anyone who can market successful consumer products in nice neat colorful packages can actually transition into the music business and apply some of the same applications to selling more "product" for EMI. As one website put it so well, "It's a fitting choice for Hands, who made his mark turning around highway gas stations in part by offering cleaner restrooms." (Source: http://tinyurl.com/6jexgb )
EMI personnel who read this news this week could not help but feel depressed. I would imagine many are more convinced now it's time to "get the hell out of Dodge" and look for something else. If they had any hopes that Guy Hands would secure some real MUSIC people to reinvigorate EMI, those hopes are surely dashed now.
Maybe Guy Hands should really think about his decision-making process for filling this very important position. All he has to do is a Google Search on "wrong CEOs for the wrong jobs" and sort through the 950,000 results to read about companies that have ended up in disastrous situations after hiring executives from another company, who did not understand the cultural differences between the company and industry that they came from, and of the company and industry where they were joining.
Guy's driving down the highway on the wrong side of the road. We say that jokingly about everybody in England because, well, they drive on the wrong side of the road.
Of course, in this case I mean it allegorically. But I don't mean it to humorous. Guy's a product man. And in these times, that's the very last thing the industry needs. Delivering profits by cutting overhead (translation: good people losing lots of jobs) and thinking of better ways to sell "product" instead of investing in a label's future, are not plans for long-term success.
But then, who says Mr. Hands is in this for the long-term?
And Now This...
For years now I've said repeatedly that labels should lower CD prices.
It was rewarding this week to see that Billboard's director of charts came out and said the same thing in regards to the industry not reacting to slow the decline of CD sales.
"Record companies should try to get a more realistic price point for physical product in the marketplace. The industry has been teaching the consumer that if you buy an album at iTunes, it costs $9.99. While high-profile physical albums are priced at that level in the first week or two they are out, after that it's at least a $12 or $13 [price tag], if not higher, depending on where you find the album, " Geoff Mayfield said.
Anybody listening?
QUOTE OF THE WEEK...
"The music industry as a whole is quite healthy. It is the record companies that are ailing."
-- John Rose of Boston Consulting Group, interviewed on the Financial Times website, ft.com.
Rhapsody Embraces iTunes, Launches Competitor
iTunes competitor Rhapsody is launching a DRM-free mp3 store, which means that users of the online music service will now be able to purchase and play Rhapsody songs on Apple's iPods. Before now, Rhapsody, a joint venture of Viacom's MTV Networks and Real Networks, offered users a subscription service, allowing unlimited streaming music for $13-$15 per month.
Rhapsody VP Neil Smith said his company's service had been limited by not being compatible with Apple's iPod. "We're no longer competing with the iPod," Smith told Reuters. "We're embracing it." In conjunction with the launch of the new store, Rhapsody will supply music MTV's music websites and iLike, the social music application popularized on Facebook.
Read more about it by clicking here.
Reports: Facebook Valuation Below $5 Billion
TechCrunch/Silicon Alley InsiderIs Facebook worth $15 billion? Nope, not anymore, according to a few reports. Last week, TechCrunch's Michael Arrington reported that one California money manager is representing a seller with a block of Facebook stock with an asking price valuing the social network in the $3-$4 billion range, far less than the $15 billion valuation it received last year after Microsoft purchased a one percent stake for $240 million.
Meanwhile, a Silicon Alley Insider source floated a similar rumor earlier last week, asserting that the valuation was "less than $4 billion for sure." Then, after Arrington's report appeared, another unidentified source claimed a Facebook employee, inquiring on behalf of another Facebook employee, was offered a 0.25% stake in the social networking giant for $12.5 million, or a valuation of $5 billion.
Read more about it by clicking here.
Can Verizon V Cast Take On iTunes?
Verizon Wireless has updated its V Cast music store with DRM-free tunes and a new subscription service, but that likely won't be enough to make a dent in Apple's digital music dominance.
Read more about it by clicking here.
DRM-free Threats Bounce Off iTunes' Chest
With all the alleged hatred of DRM, how come more people aren't rejecting iTunes' DRM-laden music? Probably cause there's nothing better available.
Read more about it by clicking here.
EMI Sues VideoEgg, Hi5 Over User Video Uploads
EMI has sued ad network VideoEgg and social networking site Hi5.com for copyright infringement based on music videos uploaded by users. EMI alleges that the companies turn a blind eye to piracy by allowing people to upload unlicensed clips from groups like Coldplay and Black Eyed Peas. The lawsuit also alleges that VideoEgg directly profits from the clips by attaching video ads to them.
"While each of the defendants has the right, ability and legal obligation to prevent infringement of plaintiffs' copyrighted works, they have allowed infringement to go unchecked, content to profit handsomely from advertisements that appear side-by-side with infringing content," EMI alleges in the lawsuit, which was filed Friday in federal district court in New York.
Read more about it by clicking here.
RIAA Wastes More Time, Argues That Copyright Violation Ruling Should Stand
The record industry is urging a federal court to let a copyright infringement verdict stand against Minnesota resident Jammie Thomas, who was found liable last year by a jury for copyright infringement based on placing files in a Kazaa folder. In court filings this week in Duluth, MN, the record labels argue that making music tracks available on peer-to-peer networks like Kazaa in itself constitutes copyright infringement. Otherwise, the record companies argue, they would not be able to protect themselves from piracy. "Millions of people use services like Kazaa to make copyrighted works available for illegal downloading," the record labels argue. "Copyright owners typically have no way to monitor -- much less prove -- the actual transfer of those files."
At trial last year, federal district court judge Michael Davis instructed the jurors that they could find Thomas liable if she had made tracks available for uploading. They ruled against her and ordered the single mother to pay $220,000 in damages. But Davis had second thoughts in May and asked the parties to submit briefs about the issue. If he decides that he wrongly instructed the jury, he could order a new trial in the case.
Read more about it by clicking here.
MetroLyrics Becomes Most-Trafficked Lyrics Site
MetroLeap Media announced that its flagship site, MetroLyrics (www.metrolyrics.com), has become the most-trafficked lyrics site in the world. With more than 22 million unique users per month -- up from 14 million in December 2007 -- the site has jumped from the #3 spot to #1 in just six months and is now also among the fastest-growing sites on the Internet in many countries, including the U.S., Canada, the U.K., and Australia.
Read more about it by clicking here.
BON JOVI IN CENTRAL PARK
Bon Jovi will perform a free concert in New York's Central Park on July 12th to celebrate Major League Baseball's All-Star game at Yankee Stadium.
CAN'T IMAGINE WHAT THIS SOUNDS LIKE
Neil Young has begun performing the Beatles song "A Day In The Life" as the final encore on his summer European tour.
AEROSMITH GUITAR HEROES
Aerosmith announced the launch of "Guitar Hero: Aerosmith" in NYC this past week, the latest installment of the massively popular game and the first to be built around a single band. The new edition, which includes hits like "Love in an Elevator" and "Dream On," also has songs by artists Run DMC and Joan Jett.
BEATLES BACK ON THE BBC
The BBC will air a long-lost Beatles interview featuring John Lennon and Paul McCartney talking about the day they met and their songwriting partnership. The precious film sat forgotten for 44 years in a garage in south London until film fan Richard Jeffs realized a piece of pop history was contained inside.
SNOOP LIKES PANIC
Panic at the Disco and rapper Snoop Dogg are planning to collaborate together in the studio soon.
MACCA ATTACKA IN QUEBEC
Paul McCartney will help Quebec City celebrate its 400th anniversary by performing in the French-Canadian province on July 20th. The show is expected to be Macca's only North American concert this year, and his first performance in Canada since 2005.
THE WHO DO ROCK BAND
Rock Band, forced to watch Aerosmith join forces with Guitar Hero, will add a 12-pack by the Who to their playable catalog on July 15th. The dozen tracks will contain three songs from the band's famed "Live at Leeds" concert, marking the first time any installment of any of the music video games incorporated live songs into their playlists.
MADAM MARIE PASSES
Fortune teller Madam Marie, a figure of rock 'n' roll mythology, thanks to Bruce Springsteen mentioning her in his song "4th of July Asbury Park," has died. She was in her mid-90s.
WALK A MILE IN HIS SHOES
Kanye West and fashion designer Louis Vuitton are collaborating on a men's shoe line. The rapper also plans on starting a woman's wear collection for the fall.
IT WAS THE FACT THAT HE HAD A BEARD LIKE THEIRS THAT MUST HAVE ATTRACTED THEM
ZZ Top will be Rick Rubin's newest reclamation project, as the long-bearded band has signed to the producer's American Recordings.
BAD COMPANY TOGETHER
Three original members of '70s supergroup Bad Company are reuniting for a one-off concert at the Seminole Hard Rock Hotel in Hollywood, FL on August 8th. The performance marks the first time band members Paul Rodgers, Mick Ralphs and Simon Kirke have performed together as Bad Company since 1999. The band's founding bassist, Boz Burrell, passed away in 2006.
Quotes of the week
"I'm a huge pothead, and a big fan of legalization, so I'm happy to talk about it. In fact, all my stories usually start with, 'Okay, so I was really high ...'"
-- Matchbox 20 lead singer Rob Thomas at the premier of The Wackness in NYC last week"Dr. Phil is here, and in the sea of faces he has this miserable look -- he's been doing it for the last hour. I probably shouldn't say this, but maybe you need to see someone about that."
-- George Michael, shouting out to fan Phil McGraw, who was in the audience at his LA concert"Once you go black, you never go back, Dave!"
-- Will Smith, trading kisses on the cheek with David Letterman, on The Late Show"I don't know what part of me he wants to cut off, but that's a whole 'nother thing."
-- American Idol judge Randy Jackson, on receiving a sword for his birthday from Simon Cowell"Here's the problem, you don't get a castle just because your name rhymes with castle."
-- Craig Ferguson, pointing out a hole in David Hasselhoff's plan to buy a "Hassel castle" in Scotland for his concerts, on the Late Late Show
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Entertainment Scientists Warn Miley Cyrus Will Be Depleted by 2013
Unless Americans turn to alternative sources of entertainment, the 'Hannah Montana' star will soon be completely tapped out.
Watch the video here: http://tinyurl.com/3z7qxc.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out a great blog by Jerry Del Colliano, the Director Executive Programs, Clinical Professor Music Industry & Recording Arts, at the Thornton School of Music,University of Southern California, by clicking here: http://www.insidemusicmedia.blogspot.com.
Box Office
Check The Daily & Weekly Box Office (and more film info) at: www.boxofficemojo.com.
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)
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