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The Politics Of Dancing
February 27, 2009
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"Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly, and applying the wrong remedies."
-- Groucho MarxThis week, inside the hallowed halls of the House of Representatives, The Committee Of The Judiciary Subcommittee on Courts and Competition Policy (whew, BIG government indeed), held hearings on the proposed Live Nation/TicketMaster merger.
I listened to a good part of the hearings (you could watch and listen to a live streaming webcast on the government's judiciary website) on Tuesday, but after awhile I had to turn it off. The Subcommittee politicians just played to the media, insinuating repeatedly that such a merger would really hurt the proverbial "little guy," the American consumer, the competition, Bruce Springsteen, et al.
Whatever opinion you have about the proposed merger isn't the issue here.
What came to mind while I was listening was the thought I've heard elsewhere from someone else: "Every two years American politicians fill the airwaves with the most virulent, scurrilous, wall-to-wall character assassination of nearly every political practitioner in the country -- and then they declare themselves puzzled that America has lost trust in its politicians."
The politicians danced around and around, throwing questions at Irving Azoff (TicketMaster head) and Michael Rapino (Live Nation head), and almost always (in my opinion) had their conclusions drawn regardless of the answers they received.
The issues the proposed merger has brought forth are far greater and more serious than any of the politicians really grasp. The issues of the merger bring to light a whole bunch more about the problems in the beleaguered music industry, but as I listened to the hearing I realized our (alleged) representatives in Washington, D.C. didn't really care about it all. Nope. They just put on their invisible white hats and played the role of the good guys looking out for us all. (Har-har-har-dee-har-har...)
What's most disturbing about this hearing, is that the people questioning successful businessmen, know nothing about how the music industry operates, and how it's very survival is at stake. Again, I'm not suggesting the merger is a solution to some of those problems. I'm merely saying that the people asking the questions should at least possess more knowledge about what's at stake here before they make any decisions.
"It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong." --Thomas Sowell
Amen.
And Now This...
I don't like to see anybody out of work. Especially in these most trying of economic times.
The news this week that the industry's (alleged) association, the RIAA, laid off between 25-30 of its staff (almost 20% of their total number), really came as no surprise to me, or many others.
With the RIAA's shift away from filing lawsuits against downloaders, gross revenues of recorded music sliding and bad economic times, the reduction in personnel was inevitable.
"Like so many other businesses and organizations in this economy, the difficult times required us to find a way to fulfill our mission with fewer employees," an RIAA spokesman said via e-mail. "We'll continue our work to defend our rights, to expand the marketplace, and to achieve parity across platforms." (Source: http://news.cnet.com/8301-1023_3-10172759-93.html)
In the meantime, RIAA CEO Mitch Bainwol and Pres. Cary Sherman have contracts extending through the end of 2010, and both make megabucks. With fewer employees.
AND THIS...
You would think that with all the recent media coverage of CEOs making millions in salaries and bonuses while their companies stock prices slide downward and profits evaporate, that someone in the media (other than media analysts) might have looked at the Warner Music Group's head man, Edgar Bronfman Jr.
This week WMG stock was as low as $1.79 a share, which should prompt somebody in the industry to ask (yet again) "Que pasa, guys?"
I wish Steve Jobs should just buy the whole damn thing. Imagine what he could do with that catalog.
AND THIS...
The Wall Street Journal has a great story about TicketMaster head Irving Azoff.
Whatever you think about the proposed merger with Live Nation, the article is a great read. Check it out and see why Azoff is still on the artists' side.
Read the article here: http://tinyurl.com/cmmrds.
Why Web Radio Faces Another Crisis
Few people know this, but for a little while last year, the music royalty rates that Web radio stations have complained about for years appeared to be behind them.
In a midtown Manhattan law office last November 6th, representatives from Webcasting companies and SoundExchange, the group that collects royalties for recording artists and labels, struck a deal "in principle," said sources familiar with the negotiations. The agreement was designed to restructure the royalty rates Webcasters have long said would decimate the sector. (From cenet.com)
Read more about it by clicking here.
Record Exec Says Music's Future Is in the Clouds
Terry McBride, who manages Avril Lavigne, Barenaked Ladies and Sarah MacLachlan, among other artists, thinks the smart phone is going to upend the current version of the record industry as profoundly as the iPod changed the last one.
In a speech to college musicians, Mr. McBride said smart-phone apps "will radically change the business." Apps are computer programs for smart phones such as those Apple provides for the iPhone. Upcoming smart phones from companies like Research In Motion, maker of the BlackBerry, are likely to create new business models, he said.
Read more about it by clicking here.
Bill Proposes ISPs, Wi-Fi Keep Logs For Police
Republican politicians on Thursday called for a sweeping new federal law that would require all Internet providers and operators of millions of Wi-Fi access points, even hotels, local coffee shops and home users, to keep records about users for two years to aid police investigations.
The legislation, which echoes a measure proposed by one of their Democratic colleagues three years ago, would impose unprecedented data retention requirements on a broad swath of Internet access providers and is certain to draw fire from businesses and privacy advocates. (From cnet.com)
Read more about it by clicking here.
Van Halen, Shakira, Seal Support Live Nation/Ticketmaster Merger
With the Live Nation/Ticketmaster merger facing an antitrust subcommittee right this moment, several artists have come out in support of the proposed merger that would unite the concert giant with the ticketing leader. Seal, Shakira, Journey and Eddie and Wolfgang Van Halen are among the artists who have voiced support of the merger in letters that were presented to the antitrust committee, according to Reuters.
Read more about it by clicking here.
EMI Sues Music Search Engine, On-Demand Site
LINKRecord label EMI has sued music search engine SeeqPod, music-on-demand site
Favtape, and the companies' investors for copyright infringement. SeeqPod
already faces a separate copyright lawsuit by Warner Music, filed in January
2008. In a lawsuit filed late last week in federal district court in New
York, EMI alleges that both SeeqPod and Favtape enable users to listen to
copyrighted music online.
Read more about it by clicking here.
Are Facebook And MySpace Becoming Uncool?
LINKAdvertising Age
For better or for worse, Advertising Age's Michael Learmonth says, social networking is no longer a youth phenomenon. In fact, he says, Facebook, with 52 million U.S. users and 170 million worldwide, is starting to look "like America."
As of January 2009, more than 50% of Facebook's users and 44% of MySpace's users in the U.S. were over age 35, according to comScore's estimates. The researcher also claims that the single biggest age demographic in the U.S. on both MySpace and Facebook is now between 35 and 44. And Facebook's fastest growing demo is 55-plus.
To a certain extent, that has to be expected, as both Facebook and MySpace don't have a lot of growing room left among younger demos. According to the Pew Internet and American Life project, 75% of online adults 18-24 already have a profile on a social network. Says Learmonth: "Generally, somewhere between growth and ubiquity is when uncool usually starts to set in."
College kids are usually a great barometer for what's cool. According to Anderson Analytics, Facebook is still the No. 1 website on college campuses. MySpace, however, has fallen from second last year to No. 4 this year.
Read more about it by clicking here.
How Twitter Is Like YouTube And Why Google Wants To Buy It
LINKIn a blog post, search guru John Battelle argues that Twitter is in virtually the same position as YouTube was before it was acquired by Google two-and-a-half years ago. While most people thought Google bought YouTube because it wanted to get into the video business, Battelle says that it's now clear that YouTube was a search play, not a video play. Because of this, he says, "Google could not afford to NOT own YouTube."
Twitter, by comparison, is also in the search business. The microblogging service provides real-time, conversational search. As such, "it's an asset Google cannot afford to not own, and also, one they most likely do not have the ability (or brand permission) to build on their own," Battelle says. Why doesn't Google build its own Twitter? Because technology, not community, is the company's strong point. Remember, Google tried to build its own YouTube competitor in 2005, but that strategy ultimately didn't work out.
So Google probably "really, really" wants to buy Twitter, but here's the kicker: Twitter doesn't want or need to sell to anyone. Co-founders Evan Williams and Biz Stone already sold a company to Google once (Blogger), and they are unlikely to do it again, Battelle says. Twitter's co-founders are rich enough, and the company has plenty of VC money to see through the recession and the founding of a legitimate business model.
Read more about it by clicking here.
OSCAR STILL NOT SHINING BRIGHT
Even though Sunday night's broadcast of the 81st Annual Academy Awards saw a slight increase in viewership from last year, it looks to be the third-lowest rated Oscars in history.
GOOD LUCK ELIO
EMI Music's Elio Leoni-Sceti is yet another one who wants Internet Service Providers to clamp down on consumers illegally downloading music. "The pipe owner has a responsibility to close the holes," he told the Times of London. I wish Mr. Leoni-Sceti all the luck in the world. His statement is evidence, once again, that label people are completely ignorant about technology and how people with computers can get around any efforts to stop them from downloading.
ANOTHER ONE BITES THE DUST
Season two "American Idol" runner-up Clay Aiken has reportedly been dropped by RCA. His 2008 album, "On My Way Here," sold a fraction of what his 2003 debut, "Measure of a Man," did -- which sold more than 2.75 million. Aiken joins such second-place finishers as Katharine McPhee, Diana DeGarmo, Justin Guarini, Blake Lewis and Bo Bice in being dropped from their major labels. In other "Idol" news, season two winner, Ruben Studdard, reportedly owes $254,119 in back state and federal taxes.
KILLERS COUNTER
The Killers have countersued their former manager nearly three years after they were sued for breach of contract. The Killers accuse their former manager Braden Merrick of double-dealing and incompetence that ultimately resulted in the band losing revenues. The legal battle began in2006 when Merrick sued the band for a whopping $16 million.
LABEL BOO-BOO
U2's new album, "No Line on the Horizon," which leaked last week and spread like wildfire on the Internet, wasn't leaked by a fan or a hacker. This time the source was U2's own label (outside the U.S.) that let the tracks out (by mistake?), sabotaging what was arguably Universal Music Group's most-anticipated release of the year.
OOPS, SHE DID IT AGAIN
Britney Spears's dad, Jamie Spears, testified in court that his daughter has been sneaking phone calls with former manager Sam Lutfi and ex-boyfriend Adnan Ghalib, the two men most associated with her breakdown. Jamie is attempting to make his restraining order against the two permanent, but says the duo snuck her a prepaid phone in order to communicate, TMZ reports.
IT WASN'T MINE, OFFICER, IT WAS HIS, DEPT
Arkansas police discovered 500 pounds of marijuana on rapper Fabolous' tour bus. Although the Fabolous was not on board at the time, the two men arrested in the bust told police that the weed belonged to Fab, and that the rapper loaded it onto the bus himself.
SONGWRITERS HALL OF FAME INDUCTEES
The Songwriters Hall of Fame will mark its 40th anniversary at the induction and awards dinner scheduled for June 18th at the Marriott Marquis Hotel in New York City. Chairman/CEO Hal David's announced the 2009 inductees, which includes Jon Bon Jovi and Richie Sambora; the Young Rascals' Felix Cavalieri and Eddie Brigati; Roger Cook and Roger Greenaway; Crosby, Stills & Nash; Hair's Galt MacDermot, James Rado and the late Gerome Ragni, and Stephen Schwartz. Special award honorees will be announced at a later date.
IF THE '80S ARE YOUR THING
Then this is a concert tour for you: Def Leppard, Cheap Trick and Poison will join forces for a full summer tour. Lots of hair, lots of noise.
Quotes of the week
"I keep up with the Oscars about as much as I do the Miss America pageant," he says. "I think it's just a dog-and-pony show. It's horseshit."
-- Angelina Jolie's ex-husband, Billy Bob Thornton, on the Academy Awards."I have decided to freeze myself when I die. You know, cryonics. You pay a lot of money and you get stuck in a deep freeze once you've been declared dead. Medical science is bound to work out a way of bringing us back to life in the next century or so, and I want to be available when they do. I would be doing the nation (England) an invaluable service."
-- Simon Cowell, being his funny self in the Mirror."Honestly, I'm very frugal. I haven't bought a car since I was 16 or any diamonds since I was 17. I have a lot of property. I've invested my money and I don't have to make any more, thank God, because I'm set. I'm now able really to be free and just do things that make me happy. I want to have a long career, be respected and not go off track. It's an effort to stay grounded."
-- Beyonce in London's Mirror. Well, Beyonce, if you don't "have to" make any more money, then don't. Why not give it all to charity? Hello? Beyonce?"We're still figuring that out. We'll see. I think Max will be there for most of it. I just got home from Europe, so I haven't even talked to Max to see what the latest news is. I know he was very much trying to figure it out. If there's a few shows where he's not there, I'm sure it will be fine. Most of the time he's gotta be there, though. There's no drummer that could replace Max. There might be someone temporary that comes in and we'll have to adjust the show accordingly. What nobody understands is that not only is Max a great drummer, Max reads Bruce's mind. You can't learn that. That's impossible to learn. You could spend months rehearsing and you'll never get that."
-- E Street's Steve Van Zandt, commenting on drummer Max Weinberg's joining Bruce Springsteen's tour, which kicks off a European leg two days before Conan's June 1st Tonight Show premiere."She has no plans to come back home right now and definitely doesn't want to go back to Camden. Who knows where she'll go, but for now she wants to be away from it all ... Despite what people say, Amy isn't a wild child. She's just a regular girl and isn't one for big parties."
-- Amy Winehouse's mother Janis tells Heat magazine her daughter has no plans to return to London. The singer has been holidaying in St Lucia since December. Uh, "just a regular girl" mum? Sounds like Amy's been sharing her stash with you."Everyone recognizes us, but they just hate us. The local papers always put a question mark after Nashville when they're writing about us. Like we're not really from there. But now we're so unpopular at home, it is becoming cool to like us. It's gone full circle."
-- Kings Of Leon bassist Jared Followill complains about the band's lack of success at home. The band won Best International Group and Best International Album at The BRITs. And if you haven't yet heard this band, you are missing one of the country's best bands out there today.
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.
Website
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
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!)