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And The (DRM) Walls Come Tumblin' Down - Part 3
August 17, 2007
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"DRM only serves to restrict consumer choice, prevents a larger digital music market from emerging, and often makes consumers unwitting accomplices to the ambitions of technology companies." -- eMusic President and Chief Executive David Pakman, whose company has sold more than 100 million unencrypted song downloads during the past three years. .
No sooner had I sent out last week's newsletter when the news came that the Universal Music Group is going to allow digital tracks from thousands of albums by artists such as Sting, 50 Cent and Stevie Wonder to be sold online without DRM copy-protection technology for a limited time. The tracks will be playable on devices that are compatible with the mp3 format, including Apple's iPods. The company will make DRM-free songs available Aug. 21 to Jan. 31
That's smart. EMI, the first major music company to allow its catalog of songs to be sold without DRM protection, has already seen increases from sales of its music online. In fact, any labels still waiting to do so are simply wasting time if they want to accelerate online sales.
What's not so smart in my opinion though is UMG's DRM-free tracks will NOT be available for sale at Apple 's iTunes store. They will be available on the recording artists' Websites and through several established online music retailers, including Amazon.com, Google, Wal-Mart, Best Buy, RealNetworks' Rhapsody, and others. (The same songs with DRM will still be available through iTunes just packaged with digital rights management according to at least one other news report. Source)
Whatever the reasons UMG may have for not making its DRM-free tracks available on iTunes, I wonder just how many of their major artists are satisfied with this arrangement. Wouldn't they want to be on iTunes with DRM-free music because of its global brand and because of the online store's success? (Already over three billion songs sold, and it's the #1 online retailer of music) Wouldn't they want to be on the online store that spends a whole bunch of money marketing itself so well?
I can't imagine any artists of stature being happy with the new arrangement unless UMG delivers the same potential sales as iTunes already generates for EMI's DRM-free titles. In a very rough time of retail for the music industry, wouldn't any artist want his/her songs available at as many online stores as possible in whatever format can sell the most? By not doing so, artists are then forced to seek alternative methods to maximize potential sales. (Just ask PRINCE; he sold over two million of his new CD "Planet Earth" in one day in London's Sunday Mail newspaper)
UMG head Doug Morris said the test "will provide valuable insights into the implications of selling our music in an open format." It sure will, Doug. But frankly, the "implications" and "valuable insights" are already apparent if you look at what EMI's already gained by making the move first?
I'm sure UMG will see similar increases in online sales, but EMI had its DRM-free music on iTunes, so UMG will have to measure its increased sales differently.
Any move away from DRM is one that will benefit the labels and the artists they have on their rosters via increased sales of music online - yet both the labels and artists will benefit even more if they make their music available at the world's #1 online store.
Not being on iTunes, at this point, is comparable to not having CDs in Wal-Mart, the nation's #1 retailer.
AS I WAS SAYING...
Last week, I talked about WMG stock reaching new lows and asked the second of my "Who's minding the store?" questions.
Now, it looks like at least one person, legendary book publisher/mogul Dick Snyder, is asking that same question and is filing a $100 million lawsuit against WMG CEO Edgar Bronfman, Jr., who he alleges cheated him out of a whole lot of money from the 2004 buyout.
While Bronfman denies all the allegations made by Snyder, Snyder's allegations are great reading. Especially in light of the fact that WMG stock keeps doing the "Limbo rock" and going lower.
Check out Snyder's claims in this article: http://tinyurl.com/35bkhe.
Note To All Label Execs Who Want To Keep Selling Discs: This Is A Must-Read!
A BLUEPRINT FOR THE FUTURE OF HIGH-RESOLUTION, 5.1 MUSIC
From: www.avrev.comBuried in the rubble of an audio disc format war with no winner, lie the remains of two high-resolution audio formats, SACD and DVD-Audio. These formats held tremendous potential in their day and have left the audiophile and music enthusiast communities desperate for a high-resolution answer to their audio needs. A deeper casualty from the high-resolution audio format war has been the death of the concept of the album, and the near-death of music mixed specifically for surround sound. While Hollywood movies in the theater and on various disc formats, HD videogame titles, and even Las Vegas shows like "Love" and Blue Man Group are designed to wow audiences with high-resolution audio in at least 5.1 channels, today's music is increasingly being sold the easiest way possible -- through low-resolution downloads for easy consumption on iPods and computers alike.
The question at hand is: Do consumers actually care about the high-end audio experience? The quick answer is absolutely "yes" - however, there are certain caveats. The idea of re-purchasing an entire collection of music is something consumers are actually willing to do, as they proved the 1980s when people migrated from LPs to compact discs. However, when faced with an intolerable value proposition that involves investing in a $1,000 new player, a new receiver and as many as nine cables to connect the system, that's enough of a barrier to leave the masses sticking with less-resolved CDs. Additionally, in order for consumers to be tempted to buy their music collection over again, labels need to offer enough compelling software. Anybody with a 5.1 sound system can blow their neighbors away with a demo of "Dark Side of the Moon" in 5.1 on SACD, but with none of the other Pink Floyd records released in surround sound or high-resolution audio, that $1,000-plus investment in surround sound equipment is just not that tempting, even for affluent consumers.
With over 50 million surround sound systems already installed, most of which are centered around a DVD player, the obvious question is: How could major and indie labels miss the opportunity to resell their music in surround sound and high-resolution to this audience? Especially when the cost to create the music is already pretty much paid for.
Read more about it by clicking here.
Film Splits Dylan's Personality Among Six Actors
How many actors does a movie need before it recreates Bob Dylan? The answer isn't blowing in the wind; it's six. That's the unusual approach filmmakers took for "I'm Not There."
The movie, opening Nov. 21 in limited release, uses an abstract concept to chronicle the life of Dylan, whose own freewheeling philosophy toward music made him one of his generation's most innovative and mysterious artists. Though films such as "Ray" and "Walk the Line" have rejuvenated the musical-biography genre in recent years, "I'm Not There" breaks all the rules of reality to craft a more poetic image of its subject.
Read more about it by clicking here.
Veoh Seeks Court Protection From Universal Music
Online video service Veoh said on Thursday that it is seeking court protection from any possible copyright-infringement lawsuits from Vivendi's Universal Music Group, the world's largest music label. Veoh said it has taken legal action to seek a declaration from the U.S. district court in the Southern District of California that it has not infringed on Universal's copyrights.
"Universal Music Group is enthusiastic about using technology to build communities, as evidenced by our deal with YouTube," a Universal Music Group spokesman said in a statement. "But that's not what Veoh is all about. Rather, it's about trying to build a business on the backs of our artists and songwriters without fairly compensating them for the use of their works."
Read more about it by clicking here.
Kids Justify Illegal Downloads, Euro Study Finds
Children in Europe are aware of the risks of illegal downloading, but often rationalize their act by saying that everyone--including their parents--is doing it, according to a major European Commission survey. Other excuses included: the download is for personal and private purposes; the Web sites presumably remunerate the artists; claims of harm inflicted on artists lack credibility; and DVDs and CDs are simply too expensive.
Read more about it by clicking here.
Column: The Future of Social Networking
Some say social networking may be headed for a huge bubble burst. Others think it will stay on an even keel and continue on as it already is. PC Magazine's Tim Bajarin, though, sees a different future for social networking sties: specialization. Could special interest and hobby sites turned social networks be the next wave?
Read more about it by clicking here.
English Orchestra Tunes Up For Virtual Concert
One of Britain's oldest symphony orchestras is to play a concert in "Second Life," the virtual Internet world, organizers said on Tuesday. The Royal Liverpool Philharmonic Orchestra is building a replica of its concert hall where it will perform works by Rachmaninov, Ravel and two contemporary composers from the northern English city.
The online audience will be able to cough, rustle sweet wrappers and check their phones for messages without upsetting those around them. After the concert, they can chat with the orchestra's principal conductor Vasily Petrenko and performers in the virtual bar.
Read more about it by clicking here.
PC Mag's Top 100 Classic Websites
Tired of sifting through a bunch of crappy websites searching for what you need? Then check out PC Magazine's definitive list of the best that the Internet has to offer in 2007. A team of editors scoured the Net to find the top websites in every category, including news, shopping, technology and much more. Try out their downloadable favorites installer, containing all the links for the classics list right in your browser.
Read more about it by clicking here.
Russian Court Acquits mp3 Music Site Owner
A Russian court on Wednesday acquitted the former boss of music download website Allofmp3.com of breaching copyright in a case seen as a key test of Russia's commitment to fighting piracy.
The Allofmp3 Web site angered Western music companies by offering downloads far cheaper than the market price in deals they said breached copyright law.
Read more about it by clicking here.
CONGRATS
CONGRATS #1 TO: Fats Domino, who received a whole lotta loving from the home crowd Monday when reproductions of 20 of the gold records he lost during Hurricane Katrina were presented to the rock-and-roll pioneer at a New Orleans nightclub.
THE LONG WAIT IS OVER
Look for a new Eagles album to be released in October. It will be the band's first all new full-length studio set since "The Long Run" in 1979. A tour is planned for 2008. "The Eagles Greatest Hits" album is the best-selling album of all time here in the U.S., racking up more than 30 million in sales thus far. Further proof that Mr. Henley and Mr Frey are America's Lennon & McCartney.
CUSTODY COURT
Britney Spears' confidant and assistant Alli Sims has been served with a subpoena in the ongoing custody battle between Britney and Kevin Federline. Other Spears' confidantes continue to get served by as well. Britney's former bodyguard, Daimon Shippen, was also issued a court summons Monday night and is expected to be forced to testify about Spears' parenting skills in the brewing custody battle.
IN THE MEANTIME
Magician Criss "Mindfreak" Angel is allegedly dating Britney Spears; they were seen together at a Beverly Hills hotel in the wee hours of the morning this past week. Here's hoping Criss is working on a new trick: making Britney disappear.
NEW BRUCE JUICE
Bruce Springsteen is set to return October 2nd with a new album, titled "Magic." This will be his first collaboration with the E-Street Band since the September 11t- inspired "The Rising" in 2002. Songs include the title track, the album opener "Radio Nowhere," "You'll Be Comin' Down," "Livin' in the Future," "Your Own Worst Enemy," "Gypsy Biker," "Girls in Their Summer Clothes," "I'll Work for Your Love," "Last to Die," "Long Walk Home" and "Devil's Arcade." Details on a worldwide tour featuring the band are expected shortly.
ESTATE COURT
A trustee who was accused of misappropriating $350,000 from James Brown's estate resigned and handed over a check for that amount during a court hearing Friday, the Augusta Chronicle reported.
INSTANT KARMA ONLINE
John Lennon's solo catalog is finally available online. Sixteen of John's solo LPs went up on iTunes this week, with the "Lennon Legend" and "Acoustic" collections making their worldwide digital debuts. For the next 30 days, bonus video content will be included with "John Lennon/Plastic Ono Band," "Sometime in New York City," "Walls and Bridges", "Milk and Honey" and the collections "Anthology" and "Working Class Hero."
NICE SEVERANCE PACKAGE FOR THE I-MAN
Don Imus has reached a settlement with CBS over his multimillion-dollar contract, pre-empting his threatened $120-million breach of contract lawsuit, according to a network spokesperson. Word is that Imus reportedly will get $20 million.
DAD & DAUGHTER DUET
A new video of Lisa Marie Presley singing "In the Ghetto" accompanied by her late father, Elvis, was posted Friday on the AOL music site Spinner.com, a company spokesperson said Tuesday. The younger Presley had her vocals added to the original version of her dad's hit song from 1969 to mark the 30th anniversary of his death.
AT THE TOP OF HIP-HOP
Jay-Z has more bling-bling than any other hip-hopster, with an estimated income of $34 million in 2006, according to Forbes.com's new list of Hip-Hop Cash Kings. 50 Cent came in second with an estimated $32 million in earnings and Diddy placed third with a $28 million payday.
WINEHOUSE ON HOLD
Amy Winehouse has postponed all her touring commitments for the foreseeable future in order to address "health issues," her rep said Thursday. The "Rehab" singer was hospitalized for severe exhaustion last week.
Quotes of the week
"There's no competition or threat. I see a hot woman, and what is she going to do, rape me? My girlfriends and I love going to strip clubs where we sit down with drinks while hot chicks walk around and aren't bitchy. In a regular club, the women are assholes -- everybody's in competition. You go into a strip club and it's like everybody's free-spirited, open-minded. It's safe."
-- Jaime Pressly, explaining to Playboy magazine why she prefers to hang out in strip clubs. I wonder how "open-minded" Jaime is about her man going to the same clubs."I don't know when I'm going to stop breast-feeding. I'll just keep going while I can -- like, he's getting his teeth, so it is a little bit scary. He's bitten me a few times!"
-- Working mom Gwen Stefani on her 14-month-old son, Kingston."I know she's going to be the best mom ever."
-- Paris Hilton, on pal Nicole Richie's pregnancy. No offense Paris, but coming from you, I don't think Nicole could take that a compliment."I've put on 10 pounds (thank you Sprinkles cupcakes, which I must admit are overrated). I hate reading magazines where the actresses are saying, 'Broccoli and fish, broccoli and fish.' You liars. You bulimic liars."
-- Courtney Love, on gaining back some of the weight she lost, on her MySpace blog and in Harper's Bazaar magazine.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Ben Affleck Hoping Jason Bourne Has Sidekick In Next Movie
LOS ANGELES-Actor Ben Affleck, best known for his role in the 2003 film Daredevil, told reporters Monday he would really like to see action hero Jason Bourne, played by longtime friend Matt Damon, acquire a sidekick in his next film.
"I was thinking that the character, who would probably be Bourne's childhood friend, could really breathe some new life into the series," said Affleck, adding that the Jason Bourne character ran the risk of boring American audiences if the superspy wasn't allowed to show a more human side in his films. "I envision the sidekick as being taller, slightly beefier, and having darker hair than Bourne. He may not be the smartest, but he could provide comic relief and would always look out for his best friend."
"I know a few people who would play the part," the Jersey Girl and Gigli star continued. "Hell, even I would put some projects aside to do it if that's what the producers wanted."
Read the rest and laugh here: http://tinyurl.com/3b2o8m.
The Blogs
Check out a great blog (that I contribute commentary to) 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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