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Yes They Can
February 13, 2009
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"It is always advisable to be a loser if you cannot become a winner."
-- Frank ZappaThe big music industry news this week is about the TicketMaster-LiveNation merger.
I was going to write my commentary about that news and offer my opinions about the merger, but when I received a few dozen e-mails from readers Monday morning asking me if I watched the Grammys and if I would comment on the show again, I thought I'd leave the TicketMaster-Live Nation story to the various news sources that are reporting it. (I will comment on the merger at some later date, after all the naysayers have had their say, after all the dust settles, and after we can clearly see how the merger will affect both the industry and consumers.)
So, in the meantime, in answer to the question "Did I watch the Grammys?", the answer is yes. I almost felt it would be irresponsible of me not to watch it if I indeed did want to comment on the show. And what if (and that's a big "if") it was a great show and I missed it?
I really didn't think it would be a great show, but I watched it anyway. But I was right. It wasn't a great show.
This from just one source, Chicago Sun-Times pop music critic Jim DeRogatis: "'Music's biggest night,' Grammy producers called the 51st annual awards show. That claim can be debated, but one thing was sure during the live telecast Sunday from the Staples Center in Los Angeles: It certainly felt like the longest ... As for the performances, the producers continued to follow the ill-advised cross-genre/cross-generational programming that has dominated the last several telecasts. These may sound like intriguing ideas on paper, but in practice, they're never as satisfying as hearing the individual artists on their own ... And Stevie Wonder and the Jonas Brothers paired up for a clunky, cross-generational performance."
DeRogatis' comments about the Stevie Wonder/Jonas Brothers pairing is actually kinder than many others I've read. In my opinion, it was sheer embarrassment. Putting a musical icon like Stevie Wonder on the stage by himself is good enough, having the Jonas Brothers try to add some "blue-eyed soul" to Stevie's "Superstition" was an utter failure. (The exception being that any Jonas Brothers fans watching probably thought it was cool even though they might not have known who the blind-guy playing keyboards was. And if you think I'm kidding, then you don't know the Jonas Brothers demographic appeal)
There were so many low points on the broadcast, it's a whole lot easier to just pick the high spots since they were in lesser quantity. Paul McCartney playing "I Saw Her Standing There" with Dave Grohl on drums, rocked the audience with obvious delight; Neil Diamond (who was this years MusiCares honoree the night before) had the entire audience singing along to 'Sweet Caroline" (and since he was the MusiCares honoree this year, shouldn't they have done something more -- maybe a retrospective of Diamond's incredible career?); Sugarland and Adele gave chilling vocal performances; Robert Plant and Alison Krauss sang songs in great harmony from their well-deserved Grammy winning Album Of The Year, "Raising Sand."
Queen Latifah talked about Dean Martin receiving a lifetime achievement award against a backdrop of his glory days with Frank Sinatra, Sammy Davis Jr. and the other members of the legendary "Rat Pack" that played the Sands Hotel in Las Vegas its heyday. She segued that story into introducing the "Rap Pack," which consisted of T.I., Lil Wayne, Jay-Z, Kanye West and an about-to-pop very pregnant M.I.A. To give their performance a retro-look, it was broadcast in black and white. (Get it? We didn't have color TV back in those days of the "Rat Pack.")
Rather than give my opinion of just how bad the entire concept and performances were, I'd rather you go online and see it on YouTube or elsewhere. Good intentions on the part of these platinum rappers or not, it didn't work.
NARAS president Neil Portnow's shout-out to President Obama bordered on idol worship, and then he suggested that the president create a new cabinet position, Secretary Of The Arts.
Secretary Of The Arts? How very PBS and NPR of Neil to offer up that suggestion. Note to Neil: Yeah, that's what we need, the government overseeing what they view as "art."
I don't think what any of us need at this point is more government and wasted tax dollars in our lives. The new trillion-dollar stimulus package our wonderful politicians just loaded with pork and rammed through the House and the Senate will cost us and our grandchildren (and their children) quite enough. Adding new cabinet positions isn't exactly the type of 'Change' this administration promised. Big government begets more big government. And so on, and so on, and scooby-dooby-dooby.
But I digress. Enough politics. And enough politics from all the people on all the award shows. Just entertain us and we'll be happy.
And speaking of Mr. Portnow, I read on several websites that he bought Neil Diamond's 1957 white Thunderbird, which he donated to the MusiCare auction the night before the show, for $75,000. I'm thrilled Mr. Portnow contributed $75,000 to a good cause. But jeez Louise, how much does this guy pull down a year working for a non-profit industry association?
Back to the show. It was three-and-a-half-hours long. Way too long. Can they make it shorter and better? Yes, they can.
It's easy to understand why the hottest ticket in town is not a ticket to the Grammy show, but a ticket to get into Clive Davis's now famous pre-Grammy party. It's well-produced, and year after year, attendees say the show that Clive puts on is better than the one NARAS puts on. I've even heard a few people say over the years that Clive could put on a better Grammy show if he was one of the producers. (No, the people who I heard it from did not work for Clive)
There are also reports that NARAS is being criticized inside the industry for using its "super-delegates" (supposedly 15-20 officials and insiders) to possibly sway the final voting process. I have no idea no idea if these allegations are true, but if so, every single NARAS member should be protesting immediately. The voting process should be completely based on member votes, otherwise NARAS will end up operating like the Democrat Party and not recognize certain primaries. (Ooops, sorry ... an election flashback took control of my keyboard)
Michael Greene, a past NARAS president, once tried explaining how NARAS members cast their votes in all the different fields and said, "It's a very complicated process. It's too damn complicated. I don't know if God intended music to be classified."
I'm pretty sure God has other things a whole lot more important on his plate than worrying about the Grammys or how music is classified by NARAS or anybody. Greene sure didn't instill any confidence in anybody wondering how the voting process really worked back then. I do remember somebody saying something about "hanging chads," but my memory is foggy about it all.
The real question people in the industry should be asking is "Why is it, with all the great talent available, that NARAS can't just put on a blockbuster show?" The kind of show that people are talking about at the water coolers the next day, instead of hearing about the show someplace and then saying, "Oh, was the Grammys on last night?"
The kind of show that would be so good, nobody would want to change the channel while the show was on. The kind of show that was so good, people would be eager to watch it. If the show was programmed with power-sweeps of great artists, hit after hit (both new and old), great artist retrospectives, great stories from artists and producers about the making of some of greatest albums in music history, imagine the possibilities. With three-and-a-half hours to fill, I see too many missed opportunities.
Mr. Portnow and NARAS are probably thrilled this year's show scored better in the ratings. They would do well to remember that quantity does not equal quality. Remember, Milli Vanilli sold a ton of records.
I hope that NARAS seeks out some great creative people who might put together a truly memorable show in the future. A show that the industry would be talking about for weeks after it aired. This show is already gone from our memories.
Can they make the show better? Yes they can.
Will it take hard work and some creative vision to do that? Yes it will.
And Now This...
Last week I reported that in a Wall Street Journal article titled "Deal to Rock Music Industry," Ethan Smith talked about a potential merger between TicketMaster and Live Nation and wrote, "The new firm, to be called Live Nation Ticketmaster, would create an entity the industry never has contended with before: a company capable of dominating some of the most lucrative parts of the business, from ticketing, to concert promotion, to artist management. Smaller competitors would face an immediate disadvantage as they tried to negotiate deals or sign new talent."
As I said last week, "such a deal would forever change the industry landscape."
This week, as most of you probably know by now, that merger became a reality.
Read the links to the news stories below for more.
AND THIS...
The news article below, 'A Seismic Shift in Internet Age Mass,' is a must-read for anybody doing business online. The research is not only surprising, but it shows (yet again) just how much of the population is wired, online, and spending less time with other media.
TicketMaster and Live Nation Agree to $2.5 Billion Merger
The L.A. Times interview with Irving Azoff and Michael Rapino is an especially worthy read. From that article, this from Mr. Azoff, "The government is saying, 'If our economic stimulus plan works, this is what will happen. If our plan happens ... it can, should and will result in lower ticket prices in the primary market. If that plan fails to come to pass, artists, consumers and the industry will not be the better for it ... The system is broken. This is about being in the music business -- not just the record business, not just touring, not just ticketing. With the almost complete collapse of the ability to monetize recorded music, we think this model will allow artists to control their fate along several product lines within the music business."
Read the L.A. Times article 'Ticketmaster, Live Nation make case for merger' here: http://tinyurl.com/dk2qtq.
'Live Nation, TicketMaster Merger Risks Anitrust Scrutiny' at: http://tinyurl.com/d9hgr2.
'Live Nation and Ticketmaster Merge Into Concert Giant' at: http://tinyurl.com/cws2mk.
Why Microsoft & The Labels Still Cling To Music Subscriptions
(From CNET.com) -- For anybody wondering why Microsoft and the top music labels continue to promote subscription music services, the answer was revealed Thursday. Label exec David Ring says download sales by themselves won't solve music industry's woes. David Ring, executive vice president of business development for Universal Music Group's digital arm, said at the EconMusic Conference that the recording industry simply can't sustain itself from download sales alone.
"If what we're trying to do is one-by-one downloads ... that's not a business that can grow," Ring told conference attendees during panel discussion he participated in. "It won't be healthy for the industry."
Maybe not, David, but as the aricle states "There isn't a single music-subscription service selling music from the top labels that generates significant revenue. Yahoo couldn't make a go of it and got out. Napster and Rhapsody, RealNetwork's subscription service, continue to appeal to niche audiences. People just don't like the idea of losing their music if they stop paying fees."
Read more about it by clicking here.
Sony Music Woes Extend To Digital Sales
With everyone focused on Sony's troubles with Rick Rubin, Apple, and lower revenue, perhaps nobody noticed the label's tumbling share of digital market.
Read more about it by clicking here.
Total Music: "Free" Can't Compete With Free
Universal Music first floated the idea of Total Music in 2007 as a way to give customers an alternative to free MP3s available on file-trading networks and anonymous Internet sites.
Nokia eventually launched a similar plan, "Comes With Music," but Total Music (which became a joint venture between Universal and Sony Music) ran into some antitrust questions and eventually shifted its focus to ad-supported streaming and paid downloads. Now it's dead along with Ruckus, a college-specific music download service that Total Music quietly purchased last summer.
What did Ruckus offer? DRM-encrusted downloads that couldn't be transferred to a Zune, much less an iPod. What did Total Music offer? We don't know because it never launched, but I'm willing to bet it didn't have a clear and compelling customer benefit.
Read more about it by clicking here.
Who Will Buy Sirius XM Radio?
This week The Wall Street Journal reported that satellite television mogul Charles Ergen made an offer to take control of Sirius XM Radio late last year. He was rebuffed. Now he apparently has the mother of all bargaining chips -- the $174.6 million in debt that Sirius needs to repay this month.
It remains to be seen what Echostar's debt-acquiring stunt will ultimately accomplish. With capital-raising sources dwindling for Sirius, it's left with little choice but to negotiate with Ergen. It can also naturally file for Chapter 11 bankruptcy protection, but that would be a bigger betrayal of its fiduciary responsibility to its shareholders. Either way, it's not a good time to be Sirius CEO Mel Karmazin.
Read more about it by clicking here.
Hulu: A Real Online Video Business
The EconomistOnline video, once heralded as the future of video advertising, has turned out to be a confusing format. Amid that confusion, Hulu.com, the joint venture from NBC and News Corp., seems to have the firmest grip on what consumers and advertisers want, according to The Economist.
When Google acquired YouTube in 2006, it seemed manifest that the online video sharing giant was the future. Two-and-a-half years later, advertisers still won't touch YouTube's user-generated content (still the vast majority of its content) "with a barge pole." In the meantime, traditional media companies started to pull their content from the Google video site and partner with Hulu, which only serves up professionally produced content instead. According to The Economist, Hulu already has over 110 content partners.
Almost every permutation of an online video strategy has been tried. Amazon, Apple, Netflix, Joost, ABC, CBS and many, many others have attempted online video offerings of their own, with a variety of different business models and varying degrees of success. Still, none have matched the "phenomenon" that is YouTube. Even so, The Economist argues that YouTube "is not a business" whereas Hulu undoubtedly is. And while the joint venture is still far behind YouTube in terms of total number of users, it is not far behind in terms of ad revenue. More importantly, Hulu's revenue appears to be sold out, which puts the site "in the rare position of being able to increase inventory (through new content and more views) and make money from it."
Read more about it by clicking here.
A Seismic Shift in Internet Age Mass
According to surveys through 2008 by the Pew Internet and American Life Project, larger percentages of older generations are online now than in the past, and they are doing more activities online. Generation X (not Y) is the most likely group to bank, shop, and look for health information online. Boomers are just as likely as Generation Y to make travel reservations online. And even Silent Generation internet users are competitive when it comes to email.
The biggest increase in internet use since 2005 is the 70-75 year-old age group. While just over one-fourth (26%) of 70-75 year olds were online in 2005, 45% of that age group is currently online, and doing more activities online.
Instant messaging, social networking, and blogging have gained ground as communications tools, but email remains the most popular online activity, particularly among older internet users, writes Sydney Jones and Susannah Fox in the report. 74% of internet users age 64 and older send and receive email, making email the most popular online activity for this age group. 89% of teens claimed to use email in 2004. Now, just 73% currently say they use email.
Read more about it by clicking here.
Analyst: Cell Phones Have Reached Saturation Point
This year is definitely going to be a tough one for the cell phone industry. With cell phones having reached a saturation point in the U.S. market, declining consumer spending and a lack of must-have new features could add up to the industry's worst year ever.
Read more about it by clicking here.
Here Comes The $99 iPhone
Apple is expected to debut a $99 iPhone, as well as an iPhone 3G with updated performance, sometime in June or July, according to RBC Capital Markets analyst Mike Abramsky.
This will give the iPhone an already bigger market share and introduce more cell phone users to the iPhones advantages.
Read more about it by clicking here.
WILCO STANDS UP FOR INDIE RECORD STORES
Wilco will release their new live DVD "Ashes of American Flags" on Record Store Day on April 18th, two weeks before its wide release. "Without these stores, there's just no way Wilco would still be around. They've been with us from the very beginning, through thick and thin," Wilco's Jeff Tweedy told Billboard.com.
N'AWLINS JAZZ FEST NEWS
Bon Jovi has been added to the New Orleans Jazz Fest as this year's lineup continues to trend towards rock. The fest, taking place over the weekends of April 24-26th and April 30-May 3rd, also features Dave Matthews Band, Wilco, Kings of Leon and Spoon.
MACCA TO DO SIN CITY HARD ROCK
Paul McCartney will help reopen the Hard Rock Hotel & Casino's Joint in Las Vegas with a special concert on April 19th, says Pollstar. The show comes just days before his high-profile gig at Coachella. The Joint venue shut down this weekend in order to add new lighting and sound, plus double the venue's capacity.
SNOOP OUT OF THE GEFFEN DOGHOUSE
Snoop Dogg's relationship with Geffen/Interscope has come to an end. The Doggman confirmed to All Hip-Hop that he and his label of 10 years have abruptly parted ways. "We are pushing the envelope on getting everything finalized," Snoop said. "But I will not be releasing anymore projects under Interscope/Geffen."
MAY GREEN DAY
Green Day's new album, "21st Century Breakdown," is scheduled to hit retail in May. The album will be followed by a massive world tour of indoor arenas starting in July.
THE BORDERS ARE SHRINKING AT RETAIL
Borders Books has announced (as expected) that they are reducing their music and DVD inventory by 70%. The chain has already started a 30% off sale to liquidate stock in 97% of their stores. What will remain will be best-sellers and new releases by mostly established artists. After all is said and done, only a mere 14 stores will keep an inventory with of a large number of titles.
THIS MIGHT BE MUSIC TO YOUR (ELEVATOR) EARS
Muzak has filed for Chapter 11 bankruptcy protection. According to Billboard.biz, Muzak has accumulated between $100 and $500 million worth of debt, yet has assets that are only worth $50,000. (Sounds like they might qualify for some of that Federal bailout money, huh?)
WHITE STRIPES SAY GOODBYE TO CONAN
The White Stripes will perform together for the first time since summer 2007 when they appear on the final episode of Late Night With Conan O'Brien on February 20th. Previously, Meg and Jack White played Conan's show five straight nights in 2003.
LIMPING BACK
Limp Bizkit will reunite with guitarist Wes Borland back in the fold. Fred Durst and the rest of the original lineup plan to go on tour and record a new studio album, and according to a joint statement, "We decided we were more disgusted and bored with the state of heavy popular music than we were with each other."
PASSING
Dewey Martin, best known as drummer for Buffalo Springfield, died last Saturday. He was 68. Cause of death is believed to be natural causes.
Quotes of the week
"In regards to Slash, I read a desperate fan's message about, what if one of us were to die and looking back I had the possibility of a reunion now, blah blah blah. And my thoughts are, 'Yeah, and while you're at the show your baby accidentally kicks a candle and burns your house down, killing himself and the rest of your family,' Give me a fucking break. What's clear is that one of the two of us will die before a reunion and however sad, ugly or unfortunate anyone views it, it is how it is. Those decisions were made a long time ago and reiterated year after year by one man."
-- Axl Rose, dispelling for once and for all (again), any hopes of any reunion with Slash."He's obviously going to Julliard or something like that -- and they'll take him at the drop of a hat, because he is ready. And the kid can act, too. He is a part of Van Halen. Permanently."
-- Eddie Van Halen, commenting on his son Wolfgang's future participation with the band. (Wolfgang played bass on a few songs on the last Van Halen tour)"The same way her debut album took a while to put together, you just don't do it by going into a computer. You wait for the material to justify a new album. Pretty much, it's come in."
-- Clive Davis talking about Whitney Houston's next album project."I get to hang with the Jonas Brothers. Have you seen those guys? They're adorable."
-- Lil' Wayne, reading one of Top 10 'Reasons I'm Looking Forward to the Grammy' on David Letterman."He tells me, 'So we've got this rehearsal space for, like, three hours, but I like to play rock & roll for a couple hours just to get warmed up.' I was like, 'Fuck, okay. Let's do it, dude!"
-- Foo Fighters Dave Grohl, talking about his playing drums for Paul McCartney at the Grammys"I didn't come here to win it. I've come to be in it!"
-- Paul McCartney, backstage at the Grammys
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!)