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The Capitol Records Thing
February 2, 2007
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"The music business shows exciting growth potential, but the environment remains extremely challenging. In order to thrive and meet the demands of a rapidly evolving and dynamic music market, we must rethink our operations..."
-- EMI Chief Executive Eric Nicoli..Based on the number of emails I received from readers this past week, I'm assuming that by now most of you have heard the news about Capitol Records.
I emailed out last week's newsletter with the prophetic quote, "It's EMI now, but it could be any one of us in a month's time. This is a year of significant change in the music industry, it's potentially cataclysmic." Before I finished cleaning up my inbox and responding to daily emails, I received the news myself.
In his press release announcing Capitol Records would be merged with Virgin Records, Eric Nicoli, the CEO of EMI Group, said, "The music business shows exciting growth potential, but the environment remains extremely challenging. In order to thrive and meet the demands of a rapidly evolving and dynamic music market, we must re-think our operations, not only to make them efficient, but also more effective and focused on creative excellence. By bringing Capitol and Virgin into one label group, we will be better equipped than ever to promote and nurture artistic talent. We remain strongly committed to developing artists in America in all genres as this is a key repertoire source for the world, and to that end, we will maintain our A&R focus and keep a presence in both L.A. and New York. This structure will also allow us to further build our digital capability."
Translation: We were bleeding in losses and awash in red ink, by doing this we save $200 million plus annually, and we might survive in the brave new digital world.
I, for one, do not see how these changes "better equip than ever" the new Capitol Music Group to "promote and nurture artistic talent." Perhaps Mr. Nicoli will expand on those possibilities at some future date. But I don't know how diminishing size enables any label to stay on equal footing competitively.
But wait, this is the same Mr. Nicoli who said in Newsweek back in October 2005 ('EMI: A Different Tune'): "We're finally seeing a raft of new initiatives from really big players ... and this stuff is happening all day, every day now."
He said that in reference to how he, and the other major music companies at the time, were allegedly "winning" the battle against illegal P2P use and how he (and the others) saw the bright possibilities of the coming (although already there) digital online future. Of course, the industry was NOT winning the battle (still isn't) at all and all the lawsuits and other attempts to shut down existing technology were a waste of time.
In response to Mr. Nicoli's comments back then I wrote in this newsletter: "What's surprising (well, OK, it's NOT really surprising) is that Mr. Nicoli would say these 'initiatives' are 'happening all day, every day now.' That's almost an admission that EMI and its counterparts (Universal, Sony BMG, Warner) have been asleep at the wheel for far too long." And of course, despite all the excuses, they all were.
What's happened at Capitol isn't surprising if one's been following the label's shrinking market share against the competition. Mr. Nicoli cannot be blamed for all the problems that caused Capitol to lose its edge against the competition. But I received a whole bunch of emails from readers this past week about this latest industry shakeup/tragedy and the majority had a common thread/comment, and it was that PEOPLE make the difference.
That's not to say they weren't and aren't really good, hard-working, talented people working at Capitol. I knew (from having worked there for 14 years) and still know many. But a once great label is now reduced to almost nothing more than an famous imprint, and, in my opinion, it's mostly because there was no real leadership and direction at the label, not because of the Internet, downloading, and all the other problems ever other label has faced as well.
But no one individual can be blamed because Capitol was adrift far too long in a sea where the waters were getting rougher by the day and competitors were gobbling up bigger market shares. The question is, why did the people responsible for steering the label through so many storms wait so long to see that change was needed?
It's all irrelevant now. What's done is done. I, for one, wish Jason Flom, who will now head the newly formed Capitol Music Group, the best of luck for success. If he can breathe new life into the new Capitol/Virgin company, it's a sign that PEOPLE do make a difference.
One thing is certain. After all is done, any success that comes out of the ashes will look good.
A NOTE TO NAPSTER CHIEF EXECUTIVE CHRIS GOROG
This week, Napster Chief Executive Chris Gorog said Apple's approach is "anti-consumer" and had held back the subscription model.
"The key obstacle to date to moving into mass adoption for the subscription model has been the iPod, which has had the very large majority of market share with MP3 players, " said Gorog.
So, Apple develops and markets one of the most successful consumer products ever, and they are to blame for Napster's problems?
Mr. Gorog, the iPod has been in the marketplace now for almost six years. I'm assuming you (like Bill Gates) read the same news about its sales increases year after year. If you did, then you should have planned accordingly when Napster went to its subscription model.
If the iPod is your biggest obstacle, I expect you won't use it as an excuse if your plans for Napster's expansion and growth via the mobile market do not come to fruition.
Report: New Eagles Album In The Works
LAS VEGAS, Nev. (AP) - After nearly 30 years, California's classic rock group the Eagles may soon release their first album of all-new music. Founding member Don Henley said during a private weekend concert that the band was nearing completion on an album of all-new material, the Las Vegas Review-Journal reported on Tuesday.
"It's coming out in 60 to 90 days, if we don't kill each other first," Henley told the crowd Saturday at the MGM Grand Garden Arena.
Read more about it by clicking here.
This Web Site Can Name That Tune
Do you ever find yourself humming a song whose title, to your frustration, you don't know or can't remember? New search Web site Midomi is designed to actually identify that song for you in as little as 10 seconds.
Launching in beta mode on Friday, Midomi allows people to search for a song by singing, humming or whistling a bit of the tune. The site then offers search results that include commercially recorded tracks or versions of the song recorded by others who have used the site. The technology also lets people listen to the exact section of each of the results that matched their voice sample. People also can type in a song title or artist to get results. The system recognizes misspelled words.
Read more about it by clicking here.
Gates: Internet To Revolutionize TV In 5 Years
The Internet is set to revolutionize television within five years, due to an explosion of online video content and the merging of PCs and TV sets, Microsoft chairman Bill Gates said on Saturday.
"I'm stunned how people aren't seeing that with TV, in five years from now, people will laugh at what we've had," he told business leaders and politicians at the World Economic Forum in Davos, Switzerland.
The rise of high-speed Internet and the popularity of video sites like Google's YouTube has already led to a worldwide decline in the number hours spent by young people in front of a TV set. In the years ahead, more and more viewers will hanker after the flexibility offered by online video and abandon conventional broadcast television, with its fixed program slots and advertisements that interrupt shows, Gates said.
Read more about it by clicking here.
Internet TV Is Finally a Reality Show
After years of build-up, it looks as if content, computers, and consumer electronics are all finally converging.
Apple may be ticking the technology world off with its insistence on limiting the files played on its iPod, but it's taught its competitors that simplicity sells. Cool design helps, too, but Apple devices can be connected with relative ease, one of the main reasons for its success.
This is the lesson tech companies' are applying to their Web TV efforts. Companies like Sony, HP and others are creating software that can be used across devices like PCs, TV's, video-game consoles, handsets and DVD players. Connected software also makes it easier for third-party developers to develop products for a particular company.
Analysts say this is precisely what's needed for Internet TV to thrive. Microsoft estimates the market will be 70 million in just two years, up from 5.3 million this year. iSuppli projects 65 million. Companies like Comcast, Sony and AT&T will compete with Google, Microsoft, Apple and startups such as Brightcove and Joost. Convergence will ultimately lessen demand for some hardware products, like DVD players and eventually set-top boxes, but that's the nature of the beast.
Read more about it by clicking here.
Sony Settles With FTC In Rootkit Case
Sony BMG Music Entertainment announced on Tuesday that it has reached a proposed settlement with the Federal Trade Commission over the controversial embedding of antipiracy software its CDs without users' knowledge.
The antipiracy software, otherwise known as a rootkit, could not only limit the use of the CDs but could also pose serious security risks, according to the FTC. The controversy erupted two years ago, when it came to light that Sony was embedding copy protection software, or digital rights management technology, in its CDs. Under the proposed settlement, consumers would be able to exchange their Sony BMG CDs through June 31 and may also receive reimbursements of up to $150 to repair damage their computers may have sustained when users attempted to remove the rootkit software.
Read more about it by clicking here.
Review: Great-Sounding, Great-Looking Speakers
Terrific sound from a pair of speakers is always welcome, but if they also look great, then that's a bonus-and that's the case with the Logitech Z-10 Interactive 2.0 Speaker System. These speakers have good sound quality and zero distortion, with only a few flaws. Check out our review and see why the Logitech Z-10 interactive speakers make a fine addition to any desktop or home office.
Read more about it by clicking here.
Networks Losing Control Of Content...Reruns? As If.
( From my weekly commentary and contribution to INSIDE MUSIC MEDIA )The media is talking a lot these past few weeks about the death of TV as we know it. Then Microsoft's head guy, Bill Gates, comes out and echoes the same sentiments and says that in five years the Internet will completely alter the way we watch TV. (Gee, I thought it already had).
Whatever dialogue ensues about this topic from this point on, one thing is certain: the public is surfing through their galaxy of a hundred plus channels as fast as their remote control permits. The loyalty factor for their favorite shows is declining (with the exception of 'American Idol' which defies all traditional analysis at this point)...Instead of Attention Deficit Disorder, they get Viewing Deficit Disorder. And the shows they once were glued to, become faded memories faster than you see Larry King's hair turning gray.
Read more about it by clicking here.
VH1 Launches UGC Push
VH1 has entered a partnership with user-generated advertising platform ViTrue to create a series of user-submitted content sites for the music network. The first site developed, talentload.tv, serves as a promotional tool for advertisers, as well as a filter for casting reality shows on VH1 and MTV.
Last month, Warner Bros. used talentload.tv to promote the Feb. 14 release of "Music and Lyrics," starring Drew Barrymore and Hugh Grant, with a contest that invited users to upload videos of original love songs. The competition, which ran until Jan. 20, drew 400 videos from aspiring singer-songwriters and more than a million page views. The winner chosen by online voters will be flown to Los Angeles to attend the movie's premiere and will have their song professionally recorded.
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM #1: Andrew Lloyd Webber will appear as a guest judge on the Feb. 11 episode of "Grease: You're the One that I Want," NBC announced Tuesday. The composer is slated to offer his opinion on the last 12 hopefuls vying to play Sandy and Danny in the upcoming Broadway revival of "Grease." OK. But with the show not even in the Top 20 ratings, how long will the revival last?
ITEM #2: NBC is reviving "Last Comic Standing" with new host Bill Bellamy. The unscripted series is scheduled to resume its search for the next breakout comedian this summer. What? The "next breakout comedian"? So far the show hasn't produced one breakout comedian.
CONGRATS
CONGRATS #1 TO: To "Little Miss Sunshine," which won the Best Ensemble prize at the Screen Actors Guild Awards last Sunday night.
CONGRATS #2 TO: To Christina Aguilera and Mary J. Blige, who will headline entertainment for the NBA All-Star 2007 games in Las Vegas.
CONGRATS #3 TO: To Ben Stiller and Scarlett Johansson, slated to receive this year's Hasty Pudding awards from a student drama group at Harvard University. The awards are given to actors who have made a "lasting and impressive contribution to the world of entertainment." Johansson will receive her award Feb. 15; Stiller will get his on Feb. 23. Don't know about the lasting impressions Ben's made on us, but Scarlett leaves them for sure.
CONGRATS #4 TO: To Beyonce, who was named the Most Desirable Woman of 2007 in a poll of askmen.com readers.
CONGRATS #5 TO: To Carrie Underwood, Sugarland, The Dixie Chicks, Rascal Flatts and Kenny Chesney, who are leading the field in nominations for the 2007 CMT Music Awards with three apiece. Winners will be determined by online voting and announced April 16.
CONGRATS #6 TO: To David Letterman, who marked 25 years in late-night television on Thursday's "Late Show" this week.
MIMI'S CONTINUING EMANCIPATION
Mariah Carey is emancipating herself from most of her clothing in order to pose for a spread in the March issue of Playboy, but stopping short of baring it all.
HEADING TO N'AWLINS
Rod Stewart, Norah Jones, Van Morrison, Dr. John and Allen Toussaint are among the headliners for the 2007 New Orleans Jazz & Heritage Festival, which spans two weekends in April and May.
AVRIL APRIL
Avril Lavigne's third album, "The Best Damn Thing," is slated for an April 17 release, RCA Records announced Monday.
THE ILL IS GONE
81-year-old bluesman B.B. King was released from a Texas hospital last Saturday after being admitted with flu-like symptoms the previous Thursday. B.B. was said to be in good health.
POLICE BACK IN UNIFORM
Thirty years after first forming, The Police are set to reunite and perform the opening number at the Grammy Awards Feb. 11.
KISS DOES COMICS
KISS are partnering with comic book production company Platinum Studios to create a new comic book entertainment company called the KISS Comics Group.
BRITNEY'S MALIBU PAD FOR SALE
Britney Spears is putting the Malibu home she shared with Kevin Federline during their two-year marriage on the market for $13.5 million.
NO LOVE FOR IDOL
A rep for Courtney Love stating there is "no truth whatsoever" to reports that the rocker might take a turn as an "American Idol" judge. The denial comes after Love reportedly told Us Weekly that executive producer Nigel Lythgoe called her office last week to find out if she would be interested in being a judge on the talent contest. Meanwhile, Lythgoe issued a statement denying that he ever called Love and claiming there are no plans to replace any of the judges.
NO BEACH BOY LOVE
A judge ruled that there is sufficient evidence for former Beach Boy Mike Love's lawsuit against ex-bandmate Al Jardine to go to trial. Love sued Jardine in 2003, maintaining that only he has the right to perform under the Beach Boys name and seeking to collect money he claims Jardine earned by using the name without permission.
THE PIANO MAN IS BACK
Billy Joel will release "All My Life," his first pop single in 14 years, which he recorded as an anniversary present to his wife, Katie Lee Joel. The song will be available for download through People magazine's website on Feb. 7 and through iTunes on Feb. 20.
DIVORCE COURT
Whitney Houston is looking to speed up her divorce from Bobby Brown by requesting a default judgment last December and indicating that no community property needs to be divvied up between them.
2006 Industry Conferences
Date Name Location Media Summit New York February 7-8 New York
Quotes of the week
"I'm sorry I'm not Britney Spears, but I'll work on my dance routine."
-- Gwyneth Paltrow, to a group of children at the Sundance Film Festival who were apparently hoping she was a different blond superstar."Every time Randy Jackson opens his mouth, I look like a Nobel Prize winner. Every time Simon opens up his mouth, Borat sounds like a Nobel Prize winner. Ryan, I really do love him. Almost as much as he loves himself. These three brothers are the best thing to ever happen to me. Just ask my therapists."
-- Paula Abdul, accepting the Woman of the Year award from the Nevada Ballet Theatre."I just knew I had to sing my way out of it. I don't believe in looking back, and I didn't look back."
-- Jennifer Hudson, telling Essence magazine she was "abused, misled and brainwashed" during her experience on "American Idol." With her awards and nominations for "Dreamgirls," she shouldn't care."I listen to most new music released every week."
-- John Mayer, when asked by an aspiring writer on the MTV reality show "I'm From Rolling Stone" if he has "ever purchased a Jessica Simpson album." Well, what a perfectly correct non-answer. John must be taking lessons from some of our politicians."I worked with Pam seven years ago and haven't seen her since. And I've never been to that restaurant."
-- George Clooney, in a statement addressing rumors that he went out on a date with Pam Anderson. And what a double-entendre that quote is when taken out of context!"Short of letting everybody have a feel, I don't know what else to do. I really am pretty happy with what God gave me."
-- Jennifer Aniston to People magazine, denying rumors that she had a boob job. We're happy too Jen -- but we might like to take you up on that offer.
The B-Side - 'Blips'
SHE LOOKED GOOD FOR HER AGE: LONDON -- The world's oldest mother has a confession. She said she lied about her age so she could receive fertility treatment.
In an interview with a British newspaper, 67-year-old Carmela Bousada said she told a U.S. fertility clinic she was 55. That's the clinic's cut-off age for treating single women. Bousada was 66 at the time but said the clinic didn't ask for any ID.
The doctor who treated Bousada told The Associated Press that the clinic does verify identity, but that he didn't know his patient was 66.
Bousada said she sold her house in Spain to pay for the in vitro fertilization. Now she's hoping to find a younger husband to help raise her twin sons, who were born Dec. 29. (I hope by younger, she means a guy in his late 50's)
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.
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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