-
The YouTube Phenomenon Continues
September 22, 2006
Have an opinion? Add your comment below. -
"Technology is changing entertainment, and Warner Music is embracing that innovation. Consumer-empowering destinations like YouTube have created a two-way dialogue that will transform entertainment and media forever."
-- Warner Music Group Chief, Edgar Bronfman Jr.A whole lot of news about YouTube filled my inbox this week. And for good reason. As predicted, the video website is shaking things up in the industry quite dramatically. (You can read a few of the news stories below)
I first talked about YouTube in the newsletter back in June ( DISC&DAT, 'You Tube, I Tube, We Can All Groove To You Tube', June 30th, 2006 ) and said the following, " The Web landscape is cluttered with a myriad of websites and startups that have come and gone also within their own '15 minutes of fame,' but YouTube.com, started by a pair of twenty-something friends last year, has now exploded into something its creators never envisioned and it looks like it will dramatically alter the way most of us view a whole lot videos from this point on."
I never imagined just how fast YouTube would soon shake the windows and rattle the walls inside our industry, but it's obvious that the times they are a changin' again. (Apologies to Mr. Dylan for the paraphrase)
This week those tech folks up there in Redmond, Washington at that little old software company known as Microsoft, launched a beta version of a new service called Soapbox, that lets people upload videos like they can on YouTube, Google Video, Yahoo Video, and others. ( Source: 'Microsoft to take on YouTube'.
Far be it for me to discern just how much Microsoft wants a piece of that pie, but let's face facts: Microsoft doesn't go after any market competition unless they already know it's worth going after.
This week, while UMG's (Universal Music Group) chief, Doug Morris, promised to take legal action against YouTube, MySpace, and other online websites that are possibly in violation of copyright infringements on certain uploaded content, WMG (Warner Music Chief, Edgar Bronfman, announced an agreement whereby WMG will distribute and license its copyrighted songs and other material through YouTube.
Of course Mr. Bronfman didn't do so without ensuring there's some kind of revenue for WMG, and although specifics about that have not been detailed, in the meantime a whole bunch of music videos are probably being transferred to YouTube as I write this. Maybe, the videos are already online and up for all to see.
Other labels have already taken advantage of YouTube for exposure as well. The recent success of the group OK GO, was due in part to their video being posted on the website.
I commend Mr. Bronfman on making the deal with youTube, instead of seeing the website as an adversary. His comment that heads this article says it all. " Consumer-empowering destinations " are indeed where all entertainment is headed. (And again, I have to repeat again the words of ex-HP chairwoman, Carly Fiorina, who said at NAB in 2004 about consumer empowerment: " In the digital era, the future is one in which consumers watch or listen to what they want to watch, when they want, at any time they want, on any device. This is a generation that will not wait for content to be delivered to them at a prescribed time." )
I hope UMG's Mr. Morris will quickly make some type of similar agreement with YouTube and the others. To stifle the exposure these new media offer labels and new artists would be detrimental in a time when it's getting increasingly harder and harder to break new artists.
Then there's the fact that there are now 60 million iPods out there. (Yup, 10 million more than I said there were just two weeks ago...and now you see why Microsoft is manufacturing its Zune player) Like it or not, it is an iPod world the consumers are living in, and the iPod has also contributed to consumer empowerment as well by allowing people to download what they want so they can listen to what they want when they want.
Among those 60 million are millions of video iPods, and sales of the video iPods are increasing daily. With all that YouTube has to offer, it makes sense that there's going to be a HUGE audience out there tuning in to videos they've downloaded onto their iPods.
What label, artist, manager, wouldn't want that kind of exposure?
Americans Say They're Listening To More Radio, Not Less
At a time when conventional terrestrial radio appears to be under siege from an array of new technologies from iPods to webcasts to satellites, as majority of Americans say they are listening to the same amount of radio, and a fifth say they are listening to more radio than they did five years ago. Those are the findings of a survey released late last week by American Media Services. But the survey, which was immediately embraced by radio broadcasters as evidence of the medium's reach and ability to engage, begs an important question: Why is radio still doing so badly?
The survey of 1,008 adults was conducted for AMS from August 11-13 by Omnitel, a polling service. Among its other positive findings: 63 percent of respondents said they still discover new music from radio play--ahead of talking with friends, TV, and the Internet--demonstrating the medium's value as a marketing and promotional tool.
Read more about it by clicking here.
Must-See Computer Screens
As Fall Shows Debut Online, Network Execs Experiment With Web Strategies
[ As a follow-up to my commentary last week about how some TV execs are utilizing the Internet to broaden audience appeal (" the smart ones are streaming shows now online..."), the following news from AD AGE this week.]
NEW YORK (AdAge.com) -- To catch this season's must-see TV, TVs appear to be optional. Indeed, every major network -- and one not so major -- are experimenting with the web as both a marketing tool and an alternative distribution channel. Ad supported or ad free, streamed on sibling websites or on partner portals, the networks are throwing every imaginable mix against the wall to see what sticks.
National advertisers are watching these network moves closely, aware that this year's experiment could become next year's ad strategy. 'These deals are on the leading edge of what's to come,' said John Cate, VP-national media director at Carat Fusion.
Read more about it by clicking here.
A Travel Back In Time With The Beach Boys
I got this link from my son, and it's a true audio gem, all forty minutes of it!
January 8, 1965: The Beach Boys enter the studio to record what will become their second number one hit, 'Help Me Rhonda.' Well into the session, a drunken Murry Wilson (Brian, Carl and Dennis' Dad) arrives and proceeds to commandeer the session with psychodrama, scat singing and weepy, abusive melodrama.
The session tape captured it all, and versions of these tapes have been floating around bootlegs for years. The fact that the tapes survived is itself surprising - you can hear Brian and Murry fighting over the tape recorder controls at the 35:30 mark of the full version, Murry wanting to stop the recording, with Brian ultimately keeping the tape rolling. And it's a good thing that Brian won out, because this audio verifies many of the Murry Wilson horror stories described in the Steven Gaines book, 'Heroes and Villains: The True Story of The Beach Boys.'
Read more about it by clicking here.
Review: A Major Overhaul of Apple iTunes 7
iTunes 7 launched with more than 75 films in its library, including a good helping of family-friendly fare from Pixar and Disney.
It took about 30 minutes each for PCMAG.com's people to download 1.3GB, 640- by 480-pixel movies. The films looked good, if a bit soft, when played full-screen on a 19-inch monitor and on the 5G iPod. But the big question they had to consider was whether anyone wants to watch an entire movie on a 2.5-inch LCD.
They tell you if movies from iTunes are worth your time, in their review.
Read more about it by clicking here.
Download Start-up Takes Aim At DVDs
Video download site EZTakes doesn't have the same selection of first-run films and TV shows that sites like Movielink or Apple Computer's iTunes do, but it offers something else: Consumers can burn movies to a disc.
The Easthampton, Mass.-based start-up, which is removing the beta label from its movie download service this week, hopes to carve a name for itself in the highly competitive digital entertainment realm by providing convenience.
With EZTakes' service, users order a movie or television show online, with prices ranging from free to $12 and above. The company's servers then send a digital copy to the consumer's hard drive, and they can burn two copies to blank DVD discs and watch what they downloaded on their TVs or other device.
Read more about it by clicking here.
YouTube Partners With Warner Music
Music videos from artists such as Madonna, Red Hot Chili Peppers and Sean Paul will be legally available for the first time on YouTube, a popular online video sharing site, after signing its first commercial partnership with Warner Music Group.
YouTube, which has more than 100 million videos viewed every day and Warner Music, the world's fourth-biggest record company, said on Monday that the pact would help Warner distribute music videos, behind-the-scenes footage, artist interviews and original programming.
The companies said YouTube users would also be able to incorporate music from Warner's catalog into the videos they create and upload.
Read more about it by clicking here.
Can YouTube Grow Up And Stay Cool?
The quick consensus on Monday's tie-up between Warner Music Group and YouTube: Finally, an old-media dinosaur gets it! By agreeing to license its artists' songs and videos to the video-sharing Web site, Warner embraces the digital revolution. Meanwhile YouTube shows other crusty media conglomerates how to get with the program.
This is indeed a coup for Warner, which is taking great pains to convince investors that the Internet is an opportunity for the company, not a revenue destroyer. It's also important for YouTube, which has more than 100 million videos on its site.
Read more about it by clicking here.
Yahoo sSells DRM-free Jesse McCartney Album
Two months ago, Yahoo Music offered a Jessica Simpson single for sale in MP3 format, stripped of the digital rights management (DRM) coding that can limit where and how often a music file can be played.
Now the music service--which features streaming music, radio stations and music videos in addition to downloads--is going a step further by selling DRM-free copies of pop singer Jesse McCartney's new album, "Right Where You Want Me." Music buyers will be able to choose between MP3 and WMA formats of the album, which was released online and in stores Tuesday. It retails for $9.99.
Read more about it by clicking here.
Credit Suisse: Radio's Rich, But Stuck In A Ditch
Despite the gnashing of teeth over radio ad revenues, the business is still remarkably profitable, according to Credit Suisse analyst John Klim. In fact, in a report released Monday, Klim wrote: "We view radio as a superb business, particularly as it relates to the business' strong free cash-flow characteristics." Klim even suggested that his company "would love to own radio stations." Klim said radio is a solid business because there isn't a lot of capital investment necessary to run a radio station--but it provides a steady stream of income.
Given that model, radio seems to resemble the newspaper business--an established medium with serious new competitors, including the Internet--that still delivers high profit margins. In 2005, radio profit margins hovered around 40 percent of revenues, while the overall operating profit margin for newspapers was 19.2 percent.
Read more about it by clicking here.
Chuck D Lays Down The Law On DRM
Digital rights management has its benefits, but should not overly restrict users, according to musician and mobile entrepreneur Chuck D.
The rapper, who was a founding member of hip-hop group Public Enemy and now runs a content service, told delegates at the Mobile Content World conference in London that he had always looked at technology as "something you can apply to a better world if you stay on top of it and don't let it stay on top of you."
"[Napster founder] Shawn Fanning revolutionized the way we get music--he doesn't get the respect he deserves, even today," Chuck D said on Tuesday. He said he does "believe in some sort of DRM" but pointed out that MP3 was the most popular compression format because it does not limit how the customer can use the file once bought.
Read more about it by clicking here.
Yahoo, Current Launch Vlog Network
Yahoo will start a new video-sharing site through a partnership with Current TV, the cable network founded by former Vice President Al Gore.
The Yahoo Current Network encompasses both professional and amateur videos aimed at 18- to-24-year-olds, and will debut with four channels on Yahoo Video. Current Buzz will feature segments highlighting popular Web stories, and will be produced by Madeleine Smithberg, co-creator and former executive producer of "The Daily Show with Jon Stewart."
The other three channels will focus on sports, autos and travel, respectively. A total of eight channels are expected to be offered by the end of 2007. Each channel will carry one studio-produced segment and 8 to 10 user-created pieces each day.
Read more about it by clicking here.
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM#1: Lindsay Lohan briefly hospitalized yet again, this time after falling and breaking her wrist last Friday in New York, according to 'Access Hollywood.' Lindsay is ending up in the hospital more than the cast of 'Grey's Anatomy.'
ITEM#2: Kevin Federline is offering a free autographed photo of himself to the first 500 people who preorder his debut album, Playing with Fire, through his online store. 500, 5000, or 50,000, in the end it won't make any difference Kevin. Either it's in the grooves or it's not.
ITEM#3: 'Saturday Night Live' saying goodbye to Horatio Sanz, Chris Parnell and Finesse Mitchell, NBC confirmed Wednesday. The 32nd season of the show kicks off Sept. 30th if anybody reading this is still watching.
CONGRATS
CONGRATS TO: Mariah Carey, the Red Hot Chili Peppers, Nickelback and the Black Eyed Peas nominated for three American Music Awards apiece. Mary J. Blige, Eminem, Kanye West, Jamie Foxx, T.I., Rascal Flatts, Pussycat Dolls, Kelly Clarkson and Carrie Underwood nabbed two each. The winners to be announced in a Nov. 21 ceremony.
CONGRATS 2: To Bob Seger, who's first album in over a decade, debuts at #4* on the Billboard Top 200 Album Chart. Bob said, "Rock'n'Roll Never Forgets" and from the retail response from fans, he was right.
CONGRATS 3: To Madonna, who finished her 'Confessions' tour Thursday at the Tokyo Dome as the top-grossing tour ever by a female artist. Although final numbers are not all in, tour producer Arthur Fogel puts the tally at $193.7 million from 60 shows that drew nearly 1.2 million in paid attendance. Madonna's happy and Cher probably isn't...she had the previous record.
CONGRATS 4: To triple platinum ex-American idol winner, Carrie Underwood, who is becoming poster girl for "Read Ya'll," Oklahoma's statewide literacy campaign. The project is funded in part by the American Idol winner's hometown library system.
CONGRATS 5: To the cast of HBO' 'Entourage' which was just renewed for a fourth, 12-episode season. The final eight episodes of the series' interrupted third season air early next year.
iTUNES RINGING UP MOVIE SALES
In its first week of selling movies through iTunes Music Store, Disney generating $1 million in revenue, chief exec Robert Iger said Tuesday. Pirates of the Caribbean topping the download list.
BASEMENT RECOGNITION
The British government granting a suburban basement where the Beatles played some of their earliest gigs protected heritage status, meaning it has "special architectural or historic interest," and can never be demolished. The venue still contains original artwork by the band and musical equipment from the '60s.
HIS LAST NAME MIGHT BE LOVE, BUT HE ISN'T SHOWING IT
A judge tossing out part of former Beach Boy Mike Love's $2 million lawsuit that claims ex-bandmate Al Jardine illegally used the surf band's name at performances.
WHO'S ON FIRST? NO, WHO IS ON THE RADIO. WHAT? NO, WHO IS ON THE RADIO!
The Who launched its own Sirius satellite radio channel on Sept. 21. The band just kicked off a world tour in support of its first new studio album since 1982.
WELL, HE'S ON THE ROAD AGAIN, WHAT DID YOU EXPECT?
Willie Nelson and four members of his band were issued misdemeanor citations for drug possession during a traffic stop this Monday, after police pulled over their tour bus and discovered over a pound of marijuana and several ounces of magic mushrooms on board.
J.J.CALE BACK IN NOVEMBER WITH CLAPTON
After years of admiring each others musical masterworks and Clapton covers of Cale songs such as "After Midnight" and "Cocaine," guitar greats J.J. Cale and Eric Clapton have teamed up for the first time to create an original album together, 'The Road To Escondido.' Guest musicians including, Taj Mahal, John Mayer, Derek Trucks, Doyle Bramhall II, Albert Lee, Nathan East, Willie Weeks and Steve Jordan. The album is scheduled for release on November 7th.
SUE ME, SUE YOU BLUES
Ashanti took the stand Monday at a trial to determine how much she owes producer Genard Parker. A previous jury decided she broke her contract with him, and Parker claims he should receive more than $2 million for helping start the singer's career, but Ashanti's lawyer argues the producer is owed no more than $50,000.
REMEMBER WHEN IT WAS THE REASON FOR SO MANY OF THE INDUSTRY'S PROBLEMS?
Online music service Napster said on Monday that it hired UBS Investment bank to help it look at strategic alternatives, which could include the sale of the company. Shares of Napster surged 11 percent.
THE FORCE WAS WITH HIM, SO HE'S GIVING BACK
George Lucas donating $175 million to the University of Southern California School of Cinematic Arts, his alma mater. Yup, you read that right. $175 million. That's almost the figure for the total production costs on the first four 'Star Wars' films.
HOWARD'S SERIOUS ABOUT STAYING WITH SIRIUS
Sirius Satellite Radio said Tuesday that reports suggesting that shock jock Howard Stern was planning a return to mainstream radio was "wrong." The New York Post, citing Inside Radio editor Tom Taylor, reported Tuesday that there were rumors among radio insiders that Howard Stern may be planning a return to free airwaves.
THEY'RE STILL ROLLING
The Rolling Stones kicked off the second U.S. leg of their much-delayed A Bigger Bang tour, to a crowd of more than 40,000 in Foxborough, Massachusetts, Wednesday night.
COMING SOON!
- Janet Jackson, 20 Y.O. (9/25)
- Alan Jackson, Like Red on a Rose (9/25)
- The Killers, Sam's Town (10/2)
- Evanescence, The Open Door (10/2)
- Beck, The Information (10/2)
- The Decemberists, The Crane Wife (10/2)
2006 Industry Conferences
Date Name Location CMJ October 31 - November 4 New York
A Highly Recommended Read
'Convergence Culture', by Henry Jenkins. The book deals with the collision of popular culture and technology and in my opinion is a must read for anybody who wants some great insights into what might emerge from the outcome.
Quotes of the week
"It wouldn't be very smart for the girl off a reality television show to take a film like that for her first motion picture."
-- 'American Idol' runner-up, Katharine McPhee, on speculation that she's up for the role of Wonder Woman, in 'Entertainment Weekly.' Yup, especially if you're going to release an album and want to be taken seriously as an artist. And after singing duets with Andrea Bocelli perfectly, Ms. McPhee is obviously making the right move."I had to get the grown man look going on. I wasn't going over 30 with cornrows."
-- Rapper-actor Ludacris, who turned 29 on Sept. 11th."I think that's long overdue. I think everybody knows what (U.S. Sen.) John McCain said is right: We've pretty well lost the war on drugs doing it the way we're doing it. Drugs are more available and cheaper than ever before. What we're doing is not working."
-- Kinky Friedman, the often irreverent singer, entertainer, and mystery writer, running as an independent in a bid to unseat Republican Gov. Rick Perry, saying he favors legalizing marijuana to keep nonviolent users out of prison."If you answer too fast it means you didn't really look. If it's too slow, it means you didn't like it. So it doesn't really matter what you say, you're just wrong. So I just drink a lot now. And it helps."
-- Ashton Kutcher, on installing a wet bar in his closet to deal with the dreaded "How do I look?" question (from wife Demi Moore), on Conan O'Brien."Maybe I had one too many champagne cocktails, but I got home and opened up my door, and it wasn't my kitchen! I realized my key opens up somebody else's door in my building!"
-- Scarlett Johansson in Us magazine. I'm betting that there's a whole slew of guys that live in Scarlett's building that are hoping next time her key opens their door.
The B-Side - 'Blips'
HONEY, I HAD TO GO OUT WITH THE STAFF AFTER WORK, BUT I DID IT FOR US: If you're looking to make more money at your job, have a cocktail. A recent study, based on an article published in the Journal Labor Research earlier this year, found that drinkers take home more money than those who avoid libations altogether.
Female drinkers earn 14 percent more than nondrinkers, while male drinkers make 10 percent more than abstainers, according to a study from the Reason Foundation, a nonprofit think tank.
Additionally, social male drinkers -- those who visit a bar at least once a month -- bring home another 7 percent in pay on top of the 10 percent premium.
"Social drinking builds social capital," said Edward Stringham, an economist at the foundation. "Social drinkers are out networking, building relationships and adding contacts to their BlackBerries that result in bigger paychecks."
No wonder they call it Happy Hour.
Box Office
Check The Daily & Weekly Box Office (and more film info) at: www.boxofficemojo.com.
-
-