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Another Year, Another Chance To Get It Right
January 5, 2007
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"If you wanted to torture me, you'd tie me down and force me to watch our first five videos."
-- Jon Bon JoviWell, another year gone. It seems they go by faster now, doesn't it? Of course, Paul Simon sang about that years ago and said, "The nearer your destination, the more you're slip-slidin' away." So before anymore time slip-slides away from us, let's get down to business.
First: Final sales totals for 2006 were down about 5% compared to 2005, at 588 million units, and Nielsen SoundScan reported that music sales in the U.S. totaled just over $1 billion last year.
From a news article released this week (see the link to it below, "Nielsen SoundScan Announces Dramatic Increases In U.S. Digital Download Sales"): "Nielsen SoundScan has reported a dramatic growth in the sales of digital music downloads for 2006. Through the first 49 weeks of 2006, sales of individually downloaded digital tracks are up more than 67% over the same period in 2005, accounting for more than 525 million digital downloads; already 173 million more than 2005's annual total.
"Historically digital downloads have dramatically increased year-over-year. In 2005, digital track sales reached 353 million; 150% higher than total track sales for all of 2004. In 2004, digital download track sales broke the 100 million mark with more than 140 million digital tracks sold."
In the meantime, a new U.S. Census Bureau's Statistical Abstract of the United States for 2007 says adults and teens will spend nearly five months (3,518 hours) next year watching television, surfing the Internet, reading daily newspapers and listening to personal music devices. So the music industry will have to try even harder to hold market share in an ever-increasing, ever-changing entertainment environment where consumers have more choices than ever.
But, there are real signs that the wheels are turning. It seems that after two years of "putting it all under the microscope," many in the music industry are finally taking the first steps toward embracing podcasting. For a variety of reasons (including fear of piracy and the need to be paid), the major labels and music publishers that control the rights to the majority of the commercially released music in the U.S. refused to make deals that would make podcasting yet another potential new media revenue source or, at the very least, offer more exposure for new artists. (Which would, of course, generate more revenues if the artist[s] ended up with success.)
And then there's the big news (in my opinion, anyway) that labels are ready to ease DRM (Digital Rights Management) restrictions. (See the first story following my commentary, "Ailing Music Biz Set To Relax Digital Restrictions.")
As my good friend and USC Thornton School of Music Professor Jerry Dell Colliano wrote in his blog (www.insidemusicmedia.blogspot.com) this week: "The labels have tried everything to maintain their DRM position, but they are losing the battle. The same generation that blew up the business plans of established labels will end up dictating that they will not accept DRM. How could this be? How could the marketplace be more influential that the labels? The Internet has brought democracy to the music business. The labels don't get to choose whether DRM is a keeper. Consumers do."
So here we are. It's seven years since the Millennium. (And doesn't that seem like only yesterday?)
Maybe, the right steps will be taken this year for the industry to turn the ship in midstream against all the opposing currents. Maybe, just maybe then, it can start sailing on calmer seas.
Ailing Music Biz Set To Relax Digital Restrictions
The anti-digital rights management bandwagon is getting more crowded by the day. Even some major-label executives are pushing for the right to sell digital downloads as unprotected MP3s.
In 2007, the majors will get the message, and the digital-right management (DRM) wall will begin to crumble. Why? Because they'll no longer be able to point to a growing digital marketplace as justification that DRM works. Revenue from digital downloads and mobile content is expected to be flat or, in some cases, decline next year. If the digital market does in fact stall, alternatives to DRM will look much more attractive.
Revenue from digital music has yet to offset losses from still-declining CD sales, and digital track sales remain a cause for concern. Month-over-month download figures were largely flat through 2006, even in the face of year-over-year gains. If the expected post-holiday spike in download numbers that has occurred in the past two years is weak, look for the glass on the panic button to break.
Read more about it by clicking here.
Nielsen SoundScan Announces Dramatic Increases In U.S. Digital Download Sales
Nielsen SoundScan reports that through the first 49 weeks of 2006, sales of individually downloaded digital tracks are up more than 67% over the same period in 2005, accounting for more than 525 million digital downloads; already 173 million more than 2005's annual total.
Digitally downloaded albums have increased more than 100% with 29.7 million YTD in 2006 versus 14.5 million in the same time period in 2005. In 2006 to date, 11 albums have sold more than 100,000 units digitally comparing to only three for the entire year in 2005 and none in 2004.
Read more about it by clicking here.
Rock Legends Sue Over Online Concert Streams
Some of rock 'n' roll's biggest names have teamed up to sue the owner of a Web site that specializes in streaming rare concert recordings.
Wolfgang's Vault offers thousands of recordings of rare audio and video music performances collected over 30 years by Bill Graham, a famous concert promoter who died in 1991. On Monday, major rock names including Grateful Dead Productions, Carlos Santana and members of Led Zeppelin and The Doors, sued the current owner, claiming it was illegally offering recordings to stimulate sales of other products.
Read more about it by clicking here.
Sony Has Far To Go In Rootkit Case
Sony BMG is making amends in California and Texas for secretly loading antipiracy software onto customers' computers. But the record label has a long way to go before putting the public relations nightmare behind it.
Sony BMG, which Sony operates jointly with Bertelsmann Music Group, agreed earlier this week to pay $1.5 million in fines and pay customers in California and Texas whose computers suffered damage as a result of Sony's surreptitiously installed digital rights management (DRM) software. The company declined to comment for this story other than to say that it was pleased to have reached the agreement with California and Texas.
Likely so, but the deal with California and Texas won't be the end of the "rootkit" fiasco for the music giant. Sony still has to contend with a consortium of 13 states, including Massachusetts, Nebraska and Florida, that are expected to look for a similar deal, according to Jeff McGrath, deputy district attorney for Los Angeles County, which took part in California's case against Sony.
Read more about it by clicking here.
Classic Rock Central Media Launches New Network, ClassicRockCentral.com
Featuring Exclusive Artist Interviews and Radio On DemandASHBURN, Va.--(BUSINESS WIRE)--Classic Rock Central Media LLC announced it has created a new network, ClassicRockCentral.com to reach the needs of fans of classic rock music in the U.S. and around the world. ClassicRockCentral.com will present original interviews with rock artists and network radio programs and specials which were produced by co-founder Denny Somach and his company DSP. Many of the interviews and radio programs originally aired on network radio during the past 25 years.
ClassicRockCentral.com launched today in beta form, and features interviews with The Beatles, Pete Townshend, members of Pink Floyd and Led Zeppelin. The site is also presenting Radio On Demand with streaming network radio programs such as a 4-hour special celebrating the 25th Anniversary of the release of Pink Floyd's historic album Wish You Were Here which ran on network radio in 2000, a legendary radio special that originally aired in 2001 titled A John Lennon Christmas, and Meet The Beatles...Again which aired on network radio in 2004 and was produced to celebrate the release of The Beatles Capitol Records Albums.
Every week additional artist interviews and Radio On Demand programs from the over 10,000 hours of original programming will be added to the site, and fans can sign-up to receive a free newsletter to inform them of new features as they are added. Classic Rock Central is co-founded by Denny Somach, Andy Zipfel and Anthony Buono.
Read more about it by clicking here.
The Beatles To Be Featured On Royal Mail Stamps
The Royal Mail, the national postal service of the UK, is issuing a specially produced set of stamps to celebrate the cultural contribution and impact of The Beatles' music. The six stamps feature the cover artwork of With The Beatles, Help!, Revolver, Sgt Pepper's Lonely Hearts Club Band, Abbey Road and Let It Be stacked upon other Beatles' albums.
To be featured on a Royal Mail stamp is a unique and historical event, and the Royal Mail have produced a set of highly collectible items in conjunction with this special issue.
Read more about it by clicking here.
On The Radio Chart, It's All In The Genre
On first glance, it appears that R&B and hip-hop's dominance of the radio airwaves took a substantial hit in 2006. Last year, 60% of the top 100 hits on the Nielsen BDS/Arbitron/Radio & Records national radio airplay chart were R&B/hip-hop records. This year, 49% receive that classification, while pop's share jumps from 20% to 26%.
However, that drop may be the consequence of a border dispute rather than a wholesale change in listening tastes. The lines between many pop and R&B/hip-hop records are more blurred than ever before - about half of the records on the top 100 classified as pop (on the basis of radio format success, musical style and artistic image) could arguably be labeled R&B/hip-hop and might have been classified as such in earlier years before the genres became less distinct.
Read more about it by clicking here.
Study: Zune Fails To Crack Top 10 In Sales
Although Microsoft's Zune captured a decent slice of the hard-drive-based audio player market at large retail stores, it failed to crack into the top 10 list of models in overall sales, according to market researcher Current Analysis. The top 10 models included 8 different iPods from Apple Computer as well as 2 models from SanDisk, according to the firm, which tracks sales at Best Buy, Circuit City, CompUSA, Staples and RadioShack.
The Zune, meanwhile, captured 12 percent of the hard-drive-based player market for December, although Current Analysis' study does not include many retail sales outlets, including Wal-Mart Stores and Apple's own retail stores. An earlier study by the same firm partway through the holiday season found roughly similar results.
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM #1: Mike Tyson was arrested on suspicion of driving under the influence and possession of cocaine after police stopped him shortly after he left a Scottsdale, AZ nightclub during the holidays. Mike's rap sheet must now look like an Excel spreadsheet with lots of red ink.
ITEM #2: Britney Spears collapsed for the second time in two weeks, at Pure Nightclub in Las Vegas on New Year's Eve, cutting short her New Year's Eve appearance at the Caesar's Palace megaclub. (Her manager sez Brit was "just tired.") Britney was also helped out of Hollywood's Les Deux club about 2a on December 22. (Source) Maybe her new album could be called "Intervention."
ITEM #3: Ruben Garay, the webmaster of leading Britney Spears fansite worldofbritney.com, announced he is shuttering his online tribute to the pop princess, due to his belief that "Britney is unfortunately done for me, at least." (His decision had nothing to do with Item #2.)
ITEM #4: Geraldo Rivera's syndicated newsmagazine "Geraldo at Large" is canceled after it fails to find an audience.
CONGRATS
CONGRATS #1 TO: To Joan Baez, Booker T. & The MGs, Maria Callas, Ornette Coleman, The Doors, The Grateful Dead and Bob Wills, who were all selected to receive lifetime achievement awards at the 49th Annual Grammy Awards on Feb. 11.
CONGRATS #2 TO: To the Rolling Stones, who grossed $138.5 million for 39 shows across North America in 2006, giving the band the top-selling tour for the second consecutive year in a row, according to Pollstar. Barbra Streisand came in second, with $92.5 million for just 20 shows.
CONGRATS #3 TO: To Martin Scorsese. The Chicago Film Critics Association named "The Departed" their pick for Best Film of 2006, as well as for Best Director and Best Adapted Screenplay.
CONGRATS #4 TO: To Rod Stewart, who was named a Commander of the Order of the British Empire in the Queen's New Year's Honors list Monday.
AUTOGRAPHED BEATLES ALBUM BRINGS IN BIG BUX
A "Meet The Beatles" album cover signed by all four Beatles as a gift for George Harrison's sister has sold at auction for more than $115,000 last week. The sale, to an unidentified buyer, was believed to set a record price for a signed Beatles album purchased at a public sale, said Mark Zakarin, President of the online auction company ItsOnlyRockNRoll.com.
NO LONGER A 'PALE' SHARE OF THE PROFITS
A judge in England awarded a 40% share in the copyright of "A Whiter Shade of Pale," one of the most famous pop songs of all time, to the former organist for Procol Harum, Matthew Fisher. Lead singer Gary Brooker and lyricist Keith Reid always claimed credit for the hit and said they wrote it before Fisher ever joined the band. But in his ruling, the judge decided that organist Matthew Fisher was entitled to both credit and royalties because "his contribution to the overall work was on any view substantial but not, in my judgment, as substantial as that of Mr. Brooker."
SIR BONO
Irish rocker and humanitarian Bono will become a knight of the British Empire and will receive his honorary knighthood from the British ambassador to Ireland, David Reddaway, in a Dublin ceremony shortly after New Year's Day.
'INDIANA JONES 4' ON THE BURNER
After a decade in development, the fourth "Indiana Jones" film is finally due to begin shooting this year, George Lucas said last week.
SIRIUS HITS SERIOUS POSITIVE CASH FLOW
Sirius Satellite Radio Inc. said this week that it would report positive free cash flow for the fourth quarter of 2006, ending the year with more than 6 million subscribers, adding 2.7 million subscribers last year, and bringing its total to 6.024 million paying customers. The figure represents an 82% improvement over the 2005 total.
SHE WON'T 'GO ON AND ON' AFTER DECEMBER
Celine Dion's Las Vegas show, "A New Day," is set to close Dec. 15 after a nearly five-year run. Celine had originally signed a $100 million three-year deal in March 2003, which was extended through 2007.
THIS COULD GIVE A WHOLE NEW (NOT NECESSARILY WHOLESOME) MEANING TO BEING MISS USA
Donald Trump is allegedly considering whether to allow Miss USA Tara Conner to pose for the cover of Playboy when she gets out of rehab.
2006 Industry Conferences
Date Name Location NAMM January 18-21 Anaheim, CA Midem January 20-25 Cannes, France Media Summit New York February 7-8 New York
Quotes of the week
"I think I'm going to stop talking to Simon Cowell. I'm just going to give him the hand. 'Talk to the hand, baby.'"
-- "American Idol" judge Randy Jackson, sharing his New Year's resolution with the Las Vegas Fremont Street New Year's Eve crowd."James Brown introduced me to soul. Because of him I was given a clear view of what a real performance is and should be. I learned showmanship from him."
-- Usher, on the late Godfather of Soul, to People magazine"So what happens/when u say the emperor has no clothes/the combover goes ballistic/via phone to (Larry) King."
-- Rosie O'Donnell, firing off the latest salvo against Donald Trump in their war of words, on her blog"Rosie got mentally beaten up by me, because she's a mental midget, a low-life. I think she's got a death wish."
-- Donald Trump's response, to the New York Post's "Page Six.""I need a man with interests outside of himself -- someone with similar beliefs... That would be sexy."
-- Pamela Anderson, on her official website, looking for "new love" as she continues with divorce proceedings from Kid Rock.
The B-Side - 'Blips'
TRAILERS BECOME GREAT REAL ESTATE INVESTMENT: BRINY BREEZES, FL -- Joke all you want about living in a mobile home. A group of Floridians in Briny Breezes doing just that may soon be having the last laugh -- all the way to the bank. Their community sits on oceanfront land just south of Palm Beach. It's the kind of land that makes developers drool -- so much so, that an offer is on the table could make the trailer owners overnight millionaires.
The nearly 500 owners have until next week to decide whether to accept or reject a $510 million offer. A two-thirds majority is needed.
Many residents are all for it -- like the guy who paid $37,000 for his trailer nine years ago and would now make about $800,000.
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.
The Charts
Check out the weekly top album and singles charts from around the world at: http://top40-charts.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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