-
First Round: Apple & EMI Win, Hands Down
June 15, 2007
Have an opinion? Add your comment below. -
"We are committed to embracing change, and to developing products and services that consumers really want to buy." -- Eric Nicoli, chief executive of EMI. Nicoli cited internal EMI tests in which higher-quality, DRM-free songs outsold its lower-quality, copy-protected counterparts 10-to-1..
"What we're adding is a choice -- a new choice." -- Apple chief, Steve Jobs, regarding Apple's decision to make available two levels of sound quality and of DRM restriction..
It's only been two weeks since Apple's iTunes store started selling DRM-free EMI music, but the early results are evidence (in my opinion) that if given the choice, the public wants to buy DRM-free songs and albums, and they are even willing to pay a bit more for it.
I received the breakdown of online sales at iTunes from a label executive, and it shows the increase in online sales the first week was more dramatic than the second week.
The report said in part, " During the first week, there was a greater impact on album/playlist sales than on individual track sales. We can not breakdown which tracks/playlists were sold with or without DRM, but looking at their SoundScan numbers below, there was an impact on EMI's share...The median playlist below had a 135% increase in sales. Almost every title had an increase in digital market share, with the median increasing from 15% to 22% share."
When EMI releases The Beatles catalog for sales online, I'm sure we'll see even greater sales. But the fact is, more people bought more EMI music online the past two weeks at iTunes. ANYTHING that gets more people to BUY more music instead of steal it, is a positive move at this point. Any labels still thinking DRM is the way to go versus DRM-free, will simply find online sales flat lining and decreasing as EMI spreads its DRM-free content to other online stores (a move they are already making).
Once there is enough data from EMI & Apple and other online stores to show just how well DRM-free is doing to increase online sales, more artists are likely to join the fold and see the light. Many might ask, if The Beatles, Pink Floyd, and dozens of other EMI artists are selling DRM-free music successfully, why not me?
Whether or not the lawyers, business affairs people at labels, and other label executives like selling DRM-free content is not the issue anymore. The public clearly wants their online purchases DRM-free if given the choice.
The issue remains how the industry can best survive the slings and arrows of outrageous digital fortune.
AND NOW THIS
While Apple and EMI were celebrating their first few weeks of DRM-free online sales, the news about physical album sales here at home during the week ending June 3 came out. It wasn't good news.
Sales continued to slip. They were down 10.6 percent compared to the comparable period last year, according to figures published by Nielsen Soundscan. Cumulative CD sales remain 16.4 percent below last year's figures. Meanwhile, download sales pushed past 355.1 million for the year, an increase of 49.8 percent from comparable figures recorded last year.
Unless immediate steps are taken in some measure to keep the CD in the marketplace for whatever shelf-life remains (see my commentary in last week's issue, "The Storm Is Coming And It Has Nothing To Do With Global Warming"), download sales are going to grow exponentially and expedite the demise of disc sales even faster.
AS I WAS SAYING...
When Les Moonves signed Katie Couric to a $15 million annual gig to anchor the CBS Evening News, I wrote in this newsletter that very week that CBS would be very lucky if they saw any real return on their hefty investment.
My thinking wasn't based on my liking or not liking Ms. Couric, it was based on the simple rationalization that with half-a-dozen 24/7 cable news channels to choose from, and the Internet serving as a more important media of choice than TV execs ever imagined, the public just doesn't care that much who reads them the words off the teleprompter anymore.
This week, in reaction to ex-CBS Evening News anchor Dan Rather's recent negative comments about the news broadcast with Couric, Mr. Moonves, CBS chief executive, suggested that sexist attitudes were partly to blame for the faltering performance of Katie Couric.
"I'm sort of surprised by the vitriol against her. The number of people who don't want news from a woman was startling," Mr. Moonves said. Ms Couric this month brought ratings for the CBS Evening News to a 20-year low.
Why Mr. Moonves would make such a statement when female news personnel are all over cable news channels, is surprising. CNN and CNN Headline News have plenty, so does MSNBC, Court TV, Fox, etc. Oh sure, the good looking female news people on those channels aren't personalities like Ms. Couric, but evidently the public doesn't care. If they weren't delivering ratings, there would be changes made. The only changes I've noticed are more female news people on cable, not less.
Perhaps Mr. Moonves is actually thrilled to have this media controversy occurring right now. It deflects a whole bunch of criticism about why he signed Couric in the first place and gave her so much money. Maybe in some perverse way he thinks criticism in the press and on TV might make some new viewers tune in to see what all the fuss is about. But in the end it will make no difference. Ms. Couric started out strong in her debut week and her ratings dropped precipitously since then. The audience sampled, they picked up their remotes, and clicked to another channel as each week passed with Ms. Couric in the anchor seat.
The simple fact is, the network news at 6 O'clock just ain't as important as it used to be thanks to the Internet and those cable news channels.
Mr. Moonves, and his peers at the other alphabet networks, should think long and hard about what the next phase will be for successful network news broadcasts.
Bon Jovi Bundles iTunes Album With Ticketmaster Sales
In what's being billed as a first, Bon Jovi is bundling a digital iTunes copy of the band's upcoming album, Lost Highway, with advance tickets for October concerts in Newark, N.J. The stand, which begins October 25 and may be expanded beyond the initial five shows, will open the new Prudential Center in Newark.
The online presale program will be available exclusively to American Express cardholders beginning June 12 through June 14, and to the general public from June 15 through June 22. Tickets without the digital-album download will then be available for purchase by the general public beginning June 23.
Read more about it by clicking here.
Hollywood's YouTube Frustration Grows
Google and its YouTube subsidiary are trying Hollywood's patience. The search engine has made significant progress in recent weeks signing content partnership deals for YouTube. But a growing number of studio executives, irritated by no-shows at meetings and canceled test programs, say they are frustrated with Google's inability to scrub the site of copyright-infringing material.
While CEO Eric Schmidt made big news in Las Vegas two months ago when he said the company was very "close to turning on" a system that will streamline the takedown process, when that system actually will be deployed is a mystery.
Read more about it by clicking here.
Review Roundup: The Best Tech Deals for Summer
You may think that $200 won't get you much these days; think how easily you can blow that much on a splurge at your favorite record shop or going out for a fancy dinner. But just two little Benjamins can score you some really sweet tech gear to send you into summer wired and ready to go. Go on, grab yourself-or someone you need to buy a present-a new MP3 player, digicam, or booming new headset. Check out our picks for the five budget summer gadgets.
Read more about it by clicking here.
Studios Balk At Apple Movie Rental Plan
Apple plans to enter the nascent online movie rental business drew skepticism on Monday from Hollywood executives who questioned pricing, copy protection and the timing of a possible launch.
Sources inside and outside the major movie studios confirmed news reports the maker of computers and iPods is considering online film rentals to complement digital movie downloads that are already sold at Apple's iTunes Web site. But the sources, who declined to be named because film licensing talks are preliminary, questioned Apple's desire to fight copy piracy and the reported $2.99 price per rental.
Read more about it by clicking here.
European Music Service Wants To Rob iPhone Thunder
A music service that lets consumers directly download an unlimited number of songs to their cell phones for a weekly fee is launching Thursday in Europe. Britain's Omnifone said it had signed content deals with the four biggest music groups in the industry and had agreements with 30 mobile operators in a bid to steal the thunder of the much-hyped iPhone from Apple.
The service called MusicStation will be suitable for 75 percent of mobile handsets already available in the market and will launch first in Sweden on Thursday. It will then launch across Europe, the Asia-Pacific and Africa in the coming days and weeks. Omnifone is targeting 100 million phones in a year and can offer over 1 million songs.
Read more about it by clicking here.
Sony Ericsson Tunes In To New Walkman Phones
Sony Ericsson on Thursday launched two new music phones in its popular Walkman range, as well as two new camera phones. The W960 Walkman is aimed at the top end of the market, where it will compete with products such as Apple's much-hyped iPhone. It has a touch screen, built-in Wi-Fi wireless access and enough memory to store up to 8,000 tunes.
The W910 Walkman slider phone has an innovative control mechanism that allows consumers to shuffle through their music collection by shaking the phone.
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM #1: By now you all know that Paris Hilton was ordered to return to jail Friday to serve out her entire 45-day sentence for violating her probation on an alcohol-related driving charge, one day after she was "reassigned" to house arrest due to an undisclosed medical condition. In the meantime, Barbara Walters (who has lost any credibility now as a serious journalist) interviewed her in jail and now Paris (like so many other inmates) says she has found God. Allegedly he was shopping on Rodeo Drive in Beverly Hills.
CONGRATS
CONGRATS #1 TO: To Al Pacino who was honored with the American Film Institute's Life Achievement Award last week, with Hollywood heavyweights including Oliver Stone, Kirk Douglas, Andy Garcia and Robin Williams turning out to sing his praises. The actor is the 35th recipient of the award; past honorees include Steven Spielberg, Martin Scorsese and Elizabeth Taylor. Look for the event to be televised sometime soon.
CONGRATS #2 TO: To Bob Dylan, who was awarded Spain's Prince of Asturias arts award, one of the country's most prestigious honors, this Wednesday. " He's considered one of the most important figures of song, a form in which he combines, in a majestic way, the beauty of his poetry and ethical commitment. For this reason, his music and message have had an outstanding influence on several generations of young people," the prize foundation said in a statement.
PUT THAT IN YOUR COFFEE AND DRINK IT
Paul McCartney's much anticipated debut release on the Starbuck's Hear Music label sold 161,000 this week but had to settle for a #3 chart entry. While many industry people thought the Macca release would easily come in at #1 with all the Starbuck's pre-publicity, McCartney was beat out at #1 by T-Pain, and at #2 by Rihanna. Industry observers will be watching subsequent sales weeks for McCartney to see if his sales totals will surpass his last few releases. McCartney's debut at number three, makes it his highest ranking in a decade. But whether this will be one of McCartney's best-selling albums remains to be seen...it's got a long way to go.
HERE COME DA' JUDGE
A judge has cleared the way for Olivia Newton-John to sue Universal Music International in Los Angeles over royalties for the soundtrack to Grease. The singer-actress claims the company owes her more than $1million for the album, which was released in 1978. Universal Music International had tried to get the case dismissed, arguing that it is based in the Netherlands and does no business in California, but was ultimately denied.
WHAM, NOW COMMUNITY SERVICE
George Michael avoided jail on a charge of driving while unfit through drugs, but was sentenced to 100 hours of community service and banned from driving for two years. The singer pleaded guilty to the charge on May 8, after police discovered him slumped over the wheel of his car at an intersection in February.
PRINCE DOES COLUMBIA
Prince has signed with Columbia Records to distribute his new album, Planet Earth, due in stores July 24. The artist kicks off his upcoming tour Aug. 1 in London.
TROUBLE RIGHT HERE IN RIVER CITY?
Kelly Clarkson has parted ways with her manager Jeff Kwatinetz of the Los Angeles based company The Firm, PEOPLE has confirmed. In an exclusive statement to PEOPLE, a spokesperson for The Firm says, "Kelly Clarkson is an enormously talented artist and we are pleased to have served as her managers in her well-deserved rise to stardom. We have only the best wishes and hopes for her in the future." (Yeah, as long as she doesn't do better than she did with you guys.) Following the announcement about her management change a rep for Clarkson also announced " Plans for Kelly Clarkson's summer tour have been shelved for now as the singer and her team reevaluate her show's size and scope." Okay, you guys do the math. It adds up to T-R-O-U-B-L-E.
WHETHER YOU LIKED THE ENDING OR NOT
Almost 12 million viewers tuned in for 'The Sopranos' finale on HBO Sunday, making the show more popular than anything else aired on network television last week, with the exception of NBC's premiere of America's Got Talent, which drew 13 million viewers, per Nielsen Media Research.
DVD RENTAL BIZ GETS TOUGHER
No. 1 U.S. video rental chain Blockbuster said it lowered prices for its online movie subscription plans. New and existing mail subscription plans will now start from $4.99 per month, the company said and added that the new subscription plans will include the three-out unlimited movie plan, which will now be offered at $16.99 for subscribers.
YOUNG TURK
Rod Stewart's son, Sean Roderick Stewart, one of the stars of A&E's "Sons of Hollywood," is free on $60,000 bail as he awaits arraignment on felony charges of assaulting a couple and vandalizing their truck as they left a party in the Hollywood Hills in April. Stewart was arrested on a felony warrant Tuesday and is due to be arraigned on July 3.
THE WAIT IS ALMOST OVER ... MAYBE
There are rumblings that the new Eagles album should be released on or about Oct. 30, because Don Henley reportedly announced the date at a solo show over last weekend. The album, "Long Road Out of Eden," whenever released, will be the first album of all new Eagles material since 1979's "The Long Run."
CELLULOID HEROES NEVER DIE
The two much-treasured Traveling Wilburys albums, complete with four bonus tracks and a DVD of home movies from the sessions, are being reissued by Rhino as The Traveling Wilburys Collection, after more than 10 years' absence. "Maxine" and "Like a Ship," featuring George Harrison and Bob Dylan, respectively, on lead vocals, are previously unreleased outtakes from Vol. 3. The DVD features the original music videos, along with a 24-minute documentary told in the group's own voices. There are also home videos shot during the recording of both albums.
PACKING THEM IN
The Country Music Association's 2007 festival in Nashville drew in a record attendance of 191,154 people over four days. The music festival featured dozens of artists including Alan Jackson, Reba McEntire, Brooks & Dunn, Martina McBride, Brad Paisley, Carrie Underwood, Dierks Bentley, Gretchen Wilson, Trace Adkins, Sugarland and Big & Rich.
IT'S GOOD TO BE KING (OR QUEEN) DEPT.
Forbes' annual Celebrity 100 Power List has Oprah ranking at #1, with an estimated yearly income of $260 million. Tiger Woods comes in second with $100 million, the most any athlete has ever earned in a single year, and Madonna is third with $72 million. Tom Cruise, who ranked number one on last year's list slipped to number eight.
WANTED: FOR GIVING US ALL THOSE BOY BANDS
Former Backstreet Boys and 'N Sync manager Lou Pearlman was taken into custody by the FBI Thursday in Indonesia after six months on the lam. Authorities have been seeking Pearlman in connection with an investigation into whether he was behind a bogus investment scheme that defrauded investors out of hundreds of millions of dollars and banks out of an addition $150 million.
Quotes of the week
"It's sad that the whole world had to watch her make mistakes that all of us have made at one time or another."
-- Britney Spears' mother, Lynne, to Us Weekly. Well, actually, Lynne, I don't know how many of us would've shaved our heads, taken a baseball bat to our ex-spouse's car, married K-Fed in the first place, and the list goes on and on."Britney Spears has been telling her friends that she's planning on getting back together with Kevin Federline. Britney says it wasn't an easy decision, but she knows in her heart it's the stupid thing to do."
-- Conan O'Brien"I needed to know how this song was going to be used. I didn't want the song to be part of a blood-bath, if that was going to be the closing moment. In order for me to feel good about approving the song use, they had to tell me what happened. And they made me swear that I would not tell anybody. I loved when Tony is going through the little jukebox at the table. They stayed really tight on Tony Bennett, and I thought, 'Well, there it is, Tony would play Tony Bennett.' He presses the buttons and the next thing you know a Journey song starts. But the tension was insane."
-- Ex-Journey front man Steve Perry in PEOPLE magazine, on the use of his song "Don't Stop Believing" in the final "Sopranos" episode."I know it's not going to do what 'Breakaway' did, 'cause it's not as mainstream. I get that. Some of the songs are not what 10-year-olds are probably going to listen to. But we all go through situations for certain reasons, and I think we should share that. This record is more intense, it's more raw, it's more emotional. But it's not that different. It's not Metallica. Even if it does tank, who cares? It's one album!"
-- Kelly Clarkson, commenting on her new album "My December," in Entertainment Weekly. Yes, Kelly, it's only one album. I think that's what Hootie & The Blowfish said about their follow-up after they sold about 10 million on their big album. I think that's what Hoobastank might've said after their big album with "The Reason" as well. But you get the picture, right? Oh, and who cares? Your label."It was a painful episode to watch. A young woman, begging her mother, the person who should have taught her right from wrong, to help her, to teach her the rules of life. It was a little too late. And so she wept as the Universe was bringing the teaching and settling the score."
-- Jamie Lee Curtis, in an article about Paris Hilton titled "Mom, It's Not Right" on The Huffington Post.com."It's very hard for anyone to follow Rosie. She brought a lot of excitement and great talent to the show."
-- Barbara Walters, talking to Ryan Seacrest this week about Rosie O'Donnell. "Great talent" Barbara? Confirmed. Ms. Walters now joins the Larry King club for overrated celebrity interviewers with brown noses."This just in: Al-Qaida is claiming credit for the vague ending to "The Sopranos."
-- David Letterman"Paris Hilton said in an interview with Barbara Walters that she will no longer act dumb. So apparently she's taken a vow of silence."
-- Jay Leno
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Cracker Barrel Announces Plans To Build Another One Out By The Highway
ALDERWINE, MO-Cracker Barrel CEO Michael Woodhouse announced Tuesday that the restaurant and retail chain would expand to a new location out by Highway 18, near the Harmon Road turnoff.
"At Cracker Barrel, our mission is to give our customers hearty, all-American food and old license plates on the walls to look at while they eat," said Woodhouse, gesturing toward a scale model of the future restaurant, which is the same model used for all new location announcements. "That's why we're proud to announce our newest location, just up a ways past the Flying J."
The new location will be the fourth Cracker Barrel in town, fifth if you count the one half a mile from the city limits where the dirt track speedway used to be.
Read the rest and laugh hard: HERE.
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!)
-
-