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Get It? Got It? Good!
September 15, 2006
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"The Internet is the Viagra of big business. Control your own destiny, or someone else will."
-- Jack Welch, Chairman and CEO of General Electric between 1981 and 2001.It's hard to imagine anyone not seeing the digital handwriting on the computer screens across the country and around the world that points to the Internet as the media of choice now for tens of millions.
But the news blips keep coming out about how newspaper and magazine circulations continue to drop, and how publishers, TV execs, and the Hollywood film community at large, are all trying to figure out what to do about the Internet's incredible encroachment on traditional media. (Note to any and all newspaper execs who might be reading this: There's no turning back the tide and circulation will continue to drop, so create more meaningful online ads to replace lost print ad revenues)
While they try to sort it all out, the smart ones are streaming shows now online, film studios are spending millions creating dynamic websites to promote upcoming films, and others are creating whole new models for online media that are becoming more powerful than print, radio, and even TV in many cases. (e.g. YouTube.com, MySpace.com, etc.)
This week the number of news blips I received about all the changes happening on a daily basis with companies adapting to online business models seemed endless. Some of the news stories below deal with those very issues. But the question that kept coming to mind was why don't some industry heavyweights realize just how much everything has changed in regard to our media choices? Why did they take so long to fully grasp the power of online media? (Maybe because it's not yet traditional 'Hollywood'?)
Four weeks ago I wrote in the newsletter: " CBS BETTER HOPE SHE WAS WELL WORTH THE BIG BUCKS: Katie Couric might've gotten the last big deal for any news anchor. CBS is of course gearing up big for her September 5th debut as the CBS Evening News Anchor. But in the meantime, in the nine weeks since she left the "TODAY" show ratings are now 20% ahead of ABC's "Good Morning America " and NBC is now reportedly considering expanding the "TODAY" show to four hours each morning. Hmmmn, more viewers now that she left...that can't be good news for the CBS brass who expect big things from Ms. Couric."
This week, Ms. Couric started in 3rd place and her ratings even fell on the fifth anniversary of 9/11. (Click here to read the whole story: http://www.variety.com/VR1117949947.html )
What made CBS execs think that hiring Ms. Couric was the remedy to falling ratings for the CBS six o'clock news? It's somewhat obvious, that in a world of 24/7 news channels and news hitting the Internet at light speed (and sometimes with more details than on TV), the public at large doesn't care who reads them the news off a teleprompter anymore. If they did, CNN's Anderson Cooper would have more viewers than his counterparts on Fox News with all the PR, magazine covers, Oprah appearances, and the money spent on promoting him. But he doesn't, he's far behind his competition.
It's not Ms. Couric's fault she's not delivering slam-dunk ratings (well, not entirely...CBS also over estimated Ms. Couric's like-ability factor; and Meredith Viera's debut as Katie's replacement on the 'Today Show' shot through the roof and creamed the morning competition), it's just that things have changed that dramatically in viewers habits and the way in which they receive their daily news.
Four years ago I wrote column after column about how all the efforts of anybody trying to stop hackers from stripping DRM (Digital Rights Management) from online music stores would prove temporal at best.
In last week's new item in the newsletter, ' Hackers Crack Apple, Microsoft Music Codes' the following was written: " To maintain the confidence of the record labels and other content providers, the tech giants have to scramble to close the holes. But even though they have largely been able to do so, the fixes tend to be temporary as new holes are found."
Again, things have changed dramatically from the Internet of 1996 versus the Internet 2006. There are more tech savvy people than ever online and they are going to continue to break codes, hack websites, and steal content, despite the best efforts of anyone trying to stop them.
It's far past the time for all media people to "get it" when it comes to fully understanding the Internet and realizing just how powerful it can be for them in generating new audience, and hence, more revenues. Anyone in any position of responsibility in any company who doesn't have the vision to see how the digital highways are converging (HDTV, the Internet becoming a broadcast media, a distribution vehicle, etc.) won't be around much longer in their corporate offices.
And music, that all important part of all our lives that brings a smile to our faces, brings tears to our eyes, and with which we have an extraordinary relationship (as Springsteen sings, "We learned more from a three minute record than we ever learned in school." ), should have a bright and dynamic future online if music companies, artists, publishers, etc., all unite and realize that they need only embrace all the potential the Internet offers.
It's time to "get it" for the common "good" of everybody who is a part of this great big online galaxy that's expanding faster than the world we live in.
Is YouTube A Video Version Of The Original Napster?
YouTube.com is quickly becoming the most popular website among video clip surfers on the Internet. The site allows users to upload their own videos to share on the World Wide Web. Sound familiar? Perhaps that's because YouTube provides a similar service to what Napster gave to music hungry Internet surfers who did not want to pony up the dough for compact discs. One has to wonder if sites like YouTube, just one of many video download sites, will start an epidemic of copyrighted video material that can easily be transferred from user to user around the net.
Read more about it by clicking here.
Apple Forges Path To Digital Living Room
At an event this week in San Francisco, Apple unveiled new iPods, movies on iTunes, and device that links PCs to TVs.
Apple Computer overhauled its digital music and video offerings on Tuesday, introducing new iPods in three categories and announcing plans to make movies available for purchase through the iTunes store.
Movies from four studios owned by The Walt Disney Company will be available on iTunes 7, the new version of the download software, the same day they are released to DVD, Apple CEO Steve Jobs said in outlining the new offerings at a product showcase here. Preorders and movies purchased in the first week will cost $12.99; the price then bumps up to $14.99 for new releases.
Apple also plans to introduce a product in the first quarter of 2007 that lets consumers stream their movies or music to televisions, Jobs said. The new device, code-named iTV, has 802.11 wireless built in. It will sell for $299 and works with PCs and Macs. "We think it completes the picture here," Jobs said.
Read more about it by clicking here.
Apple's Sound Strategy For The iPod
More than three years after the music companies handed Steve Jobs the keys to the kingdom by releasing their catalogues to him in digital form, Apple's dominant position in the digital music business looks secure.
Bad strategy and execution on the part of rivals have made its position seem more impregnable than it is. But even with better planning, there is probably little they could have done to change this picture. That is worth remembering this week after news of yet another apparently radical attack on Apple's stronghold, in the shape of an advertising-supported music download business.
Read more about it by clicking here.
Mobile Content Not Clicking With Consumers
Despite all the dramatic advancements that the mobile entertainment industry has made, there is a still one important ingredient it has not obtained: customers.
There has been a flurry of content-related deal-making and partnership activity in the past year between those who create content and those who distribute it. Granted, this was a necessary step in the development of the mobile entertainment industry, but the focus is shifting to how to sell this newly acquired content properly.
"The content is there, and there's plenty to choose from," says Richard Siber, an industry consultant who formerly led Accenture's mobile media division. "It's just not intuitive to discover or actually purchase (the content). It's about making the discovery easier and making the transaction seamless."
Read more about it by clicking here.
T-Mobile, EMI Test Ad-Supported Video Service
LOS ANGELES--T-Mobile is working with European record label EMI Group and Rhythm NewMedia on an advertising-supported mobile music video service being tested in the United Kingdom.
The companies announced the partnership Monday, a day before the mobile industry gathers here for the Cellular Telecommunications & Internet Association's semiannual trade show.
The service, which is only in the trial phase, allows T-Mobile's mobile-phone users in the United Kingdom to watch entertainment, news and music clips from their cell phones. California-based Rhythm NewMedia will operate the service, providing video content to users after they sit through a short advertisement. Microsoft and Coca-Cola are among the first companies to advertise on the new T-Mobile service.
Read more about it by clicking here.
Web Video Turns South Korean Into Global Guitar Star
SEOUL (Reuters) - South Korean student Lim Jeong-hyun has basked in five minutes and 20 seconds of fame nearly 9 million times over.
Lim, 22, was identified by the New York Times about two weeks ago as the mysterious man bathed in sunlight who played guitar in one of the most-watched videos of all time on the popular video sharing YouTube.com Web site.
About eight months ago, a video simply titled "guitar" appeared on YouTube. It shows a young man sitting between his desk and bed, bowing his head so that his baseball cap covers his eyes, ferociously playing a rock version of Johann Pachelbel's "Canon" -- the music often played at weddings. The guitarist's face is never seen. His real name is not mentioned but he calls himself "funtwo". The focus is on his fingers.
Read more about it by clicking here.
Internet Radio Reaches A Crescendo
Bill Goldsmith has converted the upstairs floor of his two-story California home into a radio studio that broadcasts his favorite rock, blues and folk tunes over the Internet. What started six years ago as a labor of love has turned into a viable business, and the recent introduction of standalone Internet radios could bring even greater success as people change how they receive their radio music and news.
"So far it is working out very well for us," the former FM radio disk jockey said, explaining that he lives off listener donations. "People really enjoy our programming enough so they feel its worth paying for."
On Radio Paradise, he offers about 59 minutes of music per hour, compared to about 40 to 50 minutes per hour on most conventional commercial FM stations. Even former commercial-free FM areas such as National Public Radio now repeatedly air sponsorship announcements akin to advertising.
Read more about it by clicking here.
Nielsen Mulls Radio Measurement; In Talks With Clear Channel
Arbitron may get even more competition for its portable people meter electronic ratings service. In a surprise move, Nielsen Media Research Monday said it is in talks with Clear Channel's electronic ratings committee about measuring radio listening. If Nielsen gets serious about entering the radio ratings business, the company could pose a serious challenge to Arbitron's PPM and increase its stronghold on the entire media ratings business.
Read more about it by clicking here.
eMusic To Launch Download Service Across Europe
Digital music download service eMusic is launching across Europe on Tuesday in a bid to become the top alternative to market leader iTunes, the same distinction it holds in the United States. eMusic will be the first service to launch in all 25 European Union member nations, going head-to-head with iTunes in big markets such as Germany and Britain and bringing the first legal downloading to smaller ones including Malta and Hungary.
The service differentiates itself as the only one on a large scale delivering songs in the MP3 format, meaning they can be played on any portable music player including the iPod. Apple Computer's iTunes can be used only with an iPod.
Read more about it by clicking here.
PC Magazine's Top 99 Undiscovered Web Sites
Think of it as the friends who are always forwarding you links to cool sites you'd never find on your own. That's who PC magazine aims to be with this list of 99 Undiscovered Web Sites.
The following list is made up of sites that are still flying under the radar, but are useful, funny, or interesting enough to merit entre into the Web's public consciousness.
Read more about it by clicking here.
Microsoft Unwraps Zune For Holiday Season
Microsoft took the wraps off its Zune media player on Thursday, though what's underneath is largely what enthusiasts had come to expect.
The device, which the company anticipates will be ready in time for the holidays, will come in three colors and be capable, via its built-in Wi-Fi, of sharing full-length songs with other nearby Zune devices, the software giant said. As had been revealed through regulatory filings, it includes a 30GB hard drive as well as a 3-inch screen. The Zune will come in black, brown and white, but the company has declined to reveal any pricing information.
Read more about it by clicking here.
A Toast To Bob Dylan--And Digital Music
Remember last year when the video iPod was announced? I do. It was Oct. 5, 2005. That day was extremely important in my mind because it signaled the fruition of so many things we all expected and were waiting for. The world of on-demand entertainment had been hinted at for years, and video on-demand was starting to come into its own, but the video iPod signaled the first true time shift device as well as a location shift device for mass media entertainment (beyond pure music) that would be accessible by the masses. I personally found it to be quite exciting. Well, now it's Sept. 13 and the world has come full circle because if you've seen the new iPod commercials you've seen that the one and only Bob Dylan is singing in an iPod commercial. This is a relatively momentous occasion, if you really sit and think about it. I mean, the only time Bob has ever shown up in on the commercial airwaves was in a lingerie ad. In 2004 Bobby lent his image and name to a commercial for Victoria's Secret, so it would appear that the closest thing to the love of a good woman to Bob is... an iPod!
Read more about it by clicking here (Registration may be required, but it's free).
THIS WEEK'S 'WHO CARES?' NEWS ITEMS
ITEM#1: MGM is planning to make 'Legally Blonde 3' without Reese Witherspoon. Is there ANY reason to make this movie after the less than stellar receipts on 'Legally Blonde 2'? No wonder box office receipts are falling annually.
ITEM#2: Religious groups in Moscow protested Madonna's mock-crucifixion scene in her concert this week. She does this stuff just so you people will protest, don't you "get it" yet? It's all about marketing, she gets more press, she sells more tickets, and the money goes 'round and 'round, and into her pockets.
ITEM#3: Greenstone Media, a radio company whose founders include social activist Gloria Steinem and actress Jane Fonda, has launched an all-women, all-talk network across the United States. Steinem said the network, which is run by women, aims to provide an alternative to current radio talk, which she describes as "very argumentative, quite hostile, and very much male-dominated." Ms. Steinem and Ms. Fonda's immediate answer? Have three female comedians do on-air stints. Oh sure, that will work. Just ask Air America, the network filing for bankruptcy this week, how that worked.
ITEM#4: Surprise, surprise. After 14 years of alleged marriage, Whitney Houston filed for a legal separation from Bobby Brown. Whitney plans to officially file for divorce in October. Wait a minute, maybe I should've put this in the 'Congrats' catgeory? This is the first smart thing Whitney's done in a long time.
ITEM#5: Lukas Rossi chosen as the winner of 'Rock Star: Supernova' Wednesday and will front a new group that includes Mötley Crüe drummer Tommy Lee, former Guns N' Roses guitarist Gilby Clarke and former Metallica bassist Jason Newsted. Nobody watched the first 'Rock Star:Supernova' and I have no idea how many (how few?) watched this one. But isn't a bit silly to call this show 'Rock Star:Supernova'?
CONGRATS
To Johnny Mathis, receiving the 15th annual Ella Award from the Society of Singers on Tuesday in honor of his 50th anniversary in show biz and his contributions to humanitarian causes. Burt Bacharach, Patti Austin, Dionne Warwick and Frank Sinatra Jr. are among those scheduled to perform at the ceremony. It sure sounds like good friend, industry veteran, and Society of Singers President & CEO, Jerry Sharell, put on a great show and "a splendid time was guaranteed for all."
ALL THAT MONEY AND HE COULDN'T REGISTER THE LAMBO?
50 Cent was pulled over by police Friday in midtown Manhattan last week while taking his silver Lamborghini for a spin. The rapper was cited for a lane-change violation, and for having an expired license and no registration, said Detective Christopher Filippazzo, a police spokesman. Police said he could face as much as $220 in fines surcharges...which would amount to about .0011 % of what a $200,000 Lamborghini cost. (And that's the price for an entry level Lambo)
BRIDGE CONCERT 2006
Pearl Jam, Trent Reznor, Dave Matthews Band and Neil Young among the bands performing at the 20th anniversary Bridge School Benefit, to be held Oct. 21-22 at Shoreline Amphitheatre outside San Francisco. The school serves students with severe physical and speech disabilities and was founded by Young and his wife.
THESE WILL SELL OUT FAST AND I BET MOST FOLKS WON'T USE THEM TO MAIL LETTERS
The British Royal Mail honoring the Beatles by issuing six commemorative stamps based on the band's classic album covers.
NO OFFENSE BARBARA, BUT IT MIGHT BE TIME TO HANG UP THE SPIKES
Barbara Walters claiming on Tuesday's 'View' that her dog, Cha-Cha, said "I love you" to her. Someone please tell Barb no more cocktails at lunch.
CARTOON STONES?
Variety reporting that Mick Jagger will coproduce the animated film 'Ruby Tuesday,' through his Jagged Films production slate. As part of the deal, 12 Rolling Stones songs will be featured on the soundtrack.
SONY GLITCH WITH NEW WALKMAN
This week Sony said that it would postpone by a week the Japan launch of a new Walkman music player due to malfunctioning microchips. First their batteries explode in Dell laptops and now this.
MURDOCH BUYS YET ANOTHER COMPANY
Rupert Murdoch's News Corp. has struck a $188 million deal to buy a majority stake in VeriSign's ring-tone subsidiary Jamba, creator of the Crazy Frog ring tone. The merger will give News Corp. one of the largest mobile entertainment businesses in the world. News Corp. will integrate Jamba--which develops and distributes ring tones, wallpapers and other mobile entertainment content throughout the world--with Fox Mobile's entertainment assets.
ANOTHER ONE BITES THE DUST
The parent company of popular file-sharing network eDonkey has agreed to pay $30 million to settle a copyright infringement case brought by six music labels, according to court documents filed this week.
ROCK'N'ROLL AT THE SUPERDOME
U2 and Green Day slated to make a special appearance to mark the reopening of the Louisiana Superdome in New Orleans during ESPN's Monday Night Football pregame show.
GET WELL WISHES TO
Marianne Faithfull, Mick Jagger's girlfriend from the '60s, canceling a world tour after being diagnosed with breast cancer. The 59-year-old singer is expected to make a full recovery.
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
Quotes of the week
"I was just really hungry and I wanted to have an In-N-Out burger."
-- Paris Hilton to Ryan Seacrest, on the circumstances that led to her DUI arrest last week. Sure, an In-N-Out burger with a bottle of Dom or Cristal."It's her first offense and hopefully it will never happen again."
-- Elliot Mintz, Paris Hilton's publicist, speaking after the star of television's 'The Simple Life' was arrested and charged with driving under the influence last week. Actually Elliot, it was Paris' second offense. You didn't forget about her releasing a CD did you?"We've come to face the facts that we've seen our day in the sun in terms of radio airplay. All we want now is to make good albums. Bernie Taupin and I have been working together on and off for 40 years; sometimes it didn't seem possible we could bridge the gap between us, but we have, and we're stronger than ever."
-- Elton John in the Allen Room of Jazz at Lincoln Center for Condé Nast-sponsored concert last week, to raise funds for his AIDS Foundation. (As reported in the NY POST's 'Page Six' section)"It was the hardest boyfriend I ever had to break up with."
-- The Black Peas' Fergie, describing her struggles with crystal meth addiction in the past in TIME magazine. Hardest or not Fergie, a boyfriend you don't need."I think I'm too hard to be in love with. It ends up on the cover of every magazine. I scare people away. I'm a lot to take on."
-- Jessica Simpson to Ellen DeGeneres, on her single status. Maybe that's the case Jess babe, but there's a whole lot of guys who would like to take a shot at it."It's not about being a control freak, it's about being maybe smart enough to go, 'No, that's a bad idea.' That's all it's about - keeping the ability to at least have a shot as opposed to something that's just an obvious disaster. I want to make a good record. I don't want to throw a brick. This cannot be Shaq at the free-throw line."
-- Axl Rose, on why the next Guns'N'Roses album "Chinese Democracy' still has not been released after some 6 years in the making. This is really an Axl Rose album since the original Guns'N'Roses hasn't existed for quite some time, and since the Gun's'N'Roses fans are now 15 -17 years older than when they bought 'Appetite For Destruction', I don't think anyon'e holding their breath Axl."As for romantic gestures, if I'm in a hotel room with a chick, I'll go down the hallway to get ice."
-- 'Jackass' star Steve-O in Star magazine. What a guy!
The B-Side - 'Blips'
YOUR PIZZA IS YOU: DUBLIN, N.H. -- The Old Farmer's Almanac is on newsstands again now predicting the weather by researching sunspots. And while it predicts a harsher than normal winter, this year's edition also helps predict the outcome of dinner dates with more down-to-earth research, on pizza toppings.
The almanac's pizza personality profile is based on work by the Smell and Taste Treatment and Research Foundation in Chicago. It has concluded that people who prefer one meat topping, for instance, are irritable, argumentative procrastinators "who frequently conveniently 'forget' work and home obligations."
It said natural leaders chose nontraditional toppings, such as pineapple, while the pizza with one veggie topping typically is ordered by people who make ideal parents. Such people tend to be "empathetic, understanding, well-adjusted (and) easygoing."
THE SKIES ARE SAFE AGAIN FROM THIS MAN: CHICAGO -- All charges have been dropped against a man who said an airport security guard mistakenly thought he said he had a bomb in his backpack. Mardin Amin, 29, has said he told a guard at O'Hare International Airport that the object was a "pump" -- for his penis. But his attorney has said that the guard misunderstood Amin as saying it was a "bomb."
Amin's attorney also said that he whispered to the guard because he was traveling with his mother and didn't want to be embarrassed in front of her, since he was carrying a sexual device. Amin had been charged with felony disorderly conduct and faced up to three years in prison if convicted.
Prosecutors chose to follow the lead of the Transportation Safety Administration, which recently concluded that the matter did not warrant prosecution, said Cook County state's attorney spokesman John Gorman.
Box Office
Check The Daily & Weekly Box Office (and more film info) at: www.boxofficemojo.com.
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