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And The (DRM) Walls Come Tumblin' Down...
April 6, 2007
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"This is the future of digital entertainment. For consumers, this announcement means there is no longer a need to sacrifice quality sound simply for convenience."
-- Consumer Electronics Association president and chief executive Gary Shapiro, commenting on the EMI and Apple announcement about selling music without DRM (Digital Rights Management) protection..This week, the shoe that was dropping, finally hit the floor, and EMI made the announcement so many anticipated was coming for weeks. (See story below.)
Back in mid-February, after Steve Jobs launched his open letter to the music industry about why he thought DRM would benefit both the industry and consumers, a flurry of pros and cons by various industry people were hurled across the Internet, and much of it was reported here in the newsletter.
Back in the February 16 issue, I said in my commentary that EMI was already thinking about making music available without DRM and I said, "Whether or not EMI will announce this radical move is something we'll have to wait to see, but such a move would no doubt send waves across cyberspace. If it increased EMI digital sales, then what might others do?"
I think now we can rest assured that sooner, rather than later, another shoe will drop and some other label will join EMI. Yes, there's still arguments about whether this is a prudent move at this point in time, and iTunes (and other stores eventually) will sell the DRM-free music for a quarter more. Obviously, there are many who think consumers won't spend the extra quarter to have music they can transfer back and forth from their digital music players and computers easily now, and they can burn to CD without problems. I guess we will have to wait and see. But regardless, in my opinion, this is a BIG step in the right direction, for giving the consumers what they've been wanting for a long time.
Even Microsoft, which originally came out against Steve Jobs calling for an end to DRM, is now seeing the light of day. This week, however, the software maker said it does plan to offer DRM-free music from EMI and others. (See story below.)
In "Annie Hall," Woody Allen said, " A relationship, I think, is like a shark. You know? It has to constantly move forward or it dies. And I think what we got on our hands is a dead shark." DRM is now the industry's dead shark.
AND NOW THIS
Last week in my commentary "A Self-Fulfilling Prophecy" I talked about some of the reasons why I think the industry has lost its focus on the album, and how that has contributed to the loss of sales overall.
This week, I thought the following quote would make a nice postscript:
"The major labels wanted to kill the single. Instead they killed the album. The association wanted to kill Napster. Instead it killed the compact disc. And today it's not just record stores that are in trouble, but the labels themselves, now belatedly embracing the Internet revolution without having quite figured out how to make it pay. At this point, it may be too late to win back disgruntled music lovers no matter what they do. As one music industry lawyer, Ken Hertz, said recently, 'The consumer's conscience, which is all we had left, that's gone, too.'"
-- From a N.Y. Times op/ed piece written this week by online music retailers Tony Sachs and Sal Nunziato.
Sony Overseas To Musicians: Think Blogs, Not Demo CDs
Thinking of sending your band's demo CD to a music label in the hope of landing a deal? Don't try Sony BMG, which wants to sample your music online instead. Sony BMG, the world's second-biggest music company, said that starting Monday it would no longer accept hard copy formats.
Instead, budding musicians will be asked to sign up on a record label Web site such as www.columbiademos.co.uk or www.rcademos.co.uk to blog their music, photos and videos. "Blogging is clearly one of the major trends in music, media and entertainment," said Sony BMG's U.K. and Ireland Music Entertainment Chairman and Chief Executive Ged Doherty.
Read more about it by clicking here.
Sources: Apple, EMI In Deal, But Beatles Not Included
Apple and EMI Group will reveal a ground-breaking deal on Monday for Apple to sell the music label's songs free from copy protection limits, The Wall Street Journal reported on Sunday.
The report said music giant EMI plans to sell "significant amounts" of its catalog without anti-piracy software, citing people familiar with the matter, and that the music label is considering not only Apple's iTunes stores but other outlets.
However, a separate source familiar with the situation told Reuters a Beatles deal was not the focus of Monday's event. "There is no Beatles' announcement," the source said.
Read more about it by clicking here.
Apple's Long Shadow Over Mobile Music
Where's the iPod killer?The wireless industry is finally offering a long list of phones with the music features some pundits have long predicted would diminish Apple's control of the market for digital music.
Last week at the CTIA Wireless trade show in Orlando, Fla., Sprint Nextel reduced the price of its over-the-air music downloads to 99 cents per song, while AT&T announced it would offer new subscribers free access to the Napster music service for a year. Handset makers Samsung and Sony Ericsson introduced their latest music-focused phones, and mobile virtual network operator Helio introduced a new device specifically designed for tunes. But guess what? The most talked-about and sought-after device at the three-day conference was Apple's iPhone, which wasn't showcased at CTIA and doesn't even ship until June.
Read more about it by clicking here.
EU Blames Record Firms For iTunes' Limited Access
Major record companies are forcing Apple to curtail access to iTunes online stores across borders, leading to higher prices and less choice, the European Commission said Tuesday. The EU executive sent formal charges to Apple and the major record companies last week because consumers can only buy iTunes in their own countries and cannot shop around for cheaper prices and a broader catalogue in other states.
"Our current view is that this is an arrangement which is imposed on Apple by the major record companies and we do not see a justification for it," Commission spokesman Jonathan Todd told reporters.
Read more about it by clicking here.
Microsoft Sees DRM-free Music In Zune's Future
Microsoft plans to follow Apple in selling unprotected songs from EMI, though the company won't say just when such tracks will appear on the Zune Marketplace store.
When CEO Steve Jobs issued his open letter calling for an end to DRM, Microsoft said the total abolition of such protections would be irresponsible, since they are needed for subscription music and other new business models. However, the software maker said Wednesday that it does plan to offer DRM-free music from EMI and others.
"We've been saying for a while that we are aware that consumers want to have unprotected content," said Zune marketing director Jason Reindorp. Reindorp said he did not have a time frame for when unprotected songs will be added to the store.
Read more about it by clicking here.
Sony BMG Pushing Mobile Music In China
Sony BMG Music Entertainment has struck a deal with content aggregator Global Music International to distribute the company's music videos, full track songs and ringtones to mobile subscribers in China. Global Music will be distributing the Sony content through China Unicom, allowing subscribers to buy and download songs, music videos and ringtones onto their handsets. Global Music International will be able to offer a wide range of music from Sony BMG, including content from Chinese and Western artists.
With more than 300 million mobile subscribers and growing, China is an important market for the mobile content business. And interest in mobile content is growing.
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM #1: "The View"'s Elisabeth Hasselbeck said in People magazine this week that despite their differences in politics, she and Rosie O'Donnell are pals. Was anybody waiting for that bit of information? Well, now we know Rosie has at least one friend.
ITEM #2: Eddie Van Halen's ex, Valerie Bertinelli, best known for her 1975-84 sitcom "One Day at a Time," has landed a brand new role: joining Kirstie Alley as the new celebrity face -- and body -- for Jenny Craig, as reported by People magazine in its new cover story. " I know what you're thinking -- I'm fat," Valerie says in the article. Well gee, Val ... we don't have to think about it, all we have to do is look at the cover!
ELTON'S HOLLYWOOD DIGS
Elton John purchased a nearly $2.5 million high-rise apartment in West Hollywood's Sierra Towers. The singer's 20th-floor digs feature two bedrooms and two and a half baths in 1,831 square feet.
IS THIS AN AWARD YOU REALLY WANT?
Justin Timberlake won the award for favorite male singer at Saturday's 20th Annual Nickelodeon Kids' Choice Awards, which also featured an appearance by Dakota Fanning. Maybe now Justin should consider doing songs for the next SpongeBob movie.
CHRISTINA CLUBS IT
Christina Aguilera was reportedly doing choreographed moves with her backup dancers during an evening out at the Time Supper Club in tour stop Montreal. And yes, she does have all the right moves.
PEARL JAM JAMS
Pearl Jam confirmed an appearance at the closing night of the Lollapalooza festival in Chicago's Grant Park on Aug. 5, marking the band's only scheduled U.S. performance for 2007. The Seattle rockers kick off a three-week European tour on June 8.
THE BUG IS BACK
"Spider-Man 3" is debuting at the 2007 Tribeca Film Festival for its U.S. premiere on Apr. 30. The film opens in theaters worldwide on May 4.
DIVORCE COURT
The divorce of Whitney Houston and Bobby Brown has been approved by a judge in Orange County, CA and will become final on April 24.
SLOWHAND AND FRIENDS TO CHI-TOWN
Eric Clapton is having a jam session with more than a dozen of his favorite guitar-playing pals, and everyone is invited. Scheduled performers for the July 28 show in Chicago include B.B. King, Willie Nelson, Vince Gill, Sheryl Crow, Jeff Beck and John Mayer.
BACK TO THE BLOCK
Jennifer Lopez, who has proudly declared herself "just a girl from the Bronx," delighted fans in her old neighborhood Wednesday by appearing at a local record store to sign autographs and promote her first all-Spanish album.
WELL, REAL ESTATE IS IN A DOWN CYCLE RIGHT NOW, EVEN IN MALIBU
Website TMZ.com reports that Britney Spears is slashing the price on the seven-bedroom Malibu home she shared with Kevin Federline. The property was originally placed on the market for $13.5 million and is now listed at a mere $11.9 million.
2006 Industry Conferences
Date Name Location NAB April-14 - April-19 Las Vegas, NV 2007 ASCAP "I Create Music" Expo April 18-21 Los Angeles, CA MUSEXPO 2007 April 27 - May 2 Los Angeles, CA
Quotes of the week
"The strangest thing I've tried to snort? My father. I snorted my father. He was cremated and I couldn't resist grinding him up with a little bit of blow."
-- Keith Richards to British music magazine NME. A spokesperson for Richards later told the magazine it was all just an "April Fool's joke." Was it really? Keith's comment would go a long way to explaining why he looks like a zombie."If I was a gold digger I'd be a very wealthy woman now, and I'm not."
-- Heather Mills during a radio interview with Ryan Seacrest on Tuesday. You're not wealthy, Heather? So, all the millions Paul McCartney is giving you isn't enough to qualify you as a "wealthy woman"? By whose standards?"What's happened to Britney is all down to who she is as a person. If you want a piece of this business, you have to be able to deal with it. You can't complain about the pressures, the paparazzi, the madness, because that's the job."
-- Avril Lavigne to London's Sun, on the downfall of Britney Spears"Who cares?"
-- Paula Abdul, when asked by fellow "American Idol" judge Randy, "Where's Simon?" at the Kids' Choice Awards. You should care Ms. Abdul, because Simon is the ONLY reason people watch "American Idol." (Especially this season, since there are no real stars and there is no contest at all. Melinda will win.) You don't really think the audience cares one iota about what you or Randy have to say, do you? And if you do, you're as delusional as the god-awful people whom we see try out for "American Idol." Oh, and Simon doesn't have to do the Kids' Choice Awards -- you do."I feel like "Idol" is a drug of some kind. Like you think you can't live without it until you finally do, and then you realize, 'You know what? Life is fine without this show. I'm gonna be okay.'"
-- "American Idol" second season runner-up Clay Aiken."You have permission to call me anything you want - except sir, all right? Lord of lords, your demigodness, that'll do."
-- Bono, upon becoming a Knight of the British Empire"I love smart, intelligent men. That's the No. 1 one thing that keeps me interested in the long term."
-- Ivanka Trump. Oh, sure. That, and as long as they have as much money as daddy does.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Justin Timberlake Apathetically Crowned King Of Pop
LOS ANGELES-Performer Justin Timberlake, whose hit albums include Justified and FutureSex/LoveSounds, was crowned the de facto "King of Pop" Monday by recording-industry executives and millions of fans unable to think of anyone else to bestow the title upon.
A former member of the 1990s boy band 'N Sync, a musical act known primarily for its popularity, Timberlake has dominated the pop charts as a solo artist in recent years due to a trait music-industry insiders call "the magic 'whatever' factor"-the elusive star quality whereby the majority of listeners do not actively find a recording artist to be objectionable.
Read the rest and laugh here: http://tinyurl.com/2sh3sq.
The Blogs
Check out a great (that I contribute commentary to) 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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