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Whole Lot Of Shakin' Going On
July 28, 2006
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"A fundamental rule in technology says that whatever can be done will be done."
-- Former INTEL CEO, Andrew GroveA whole lot of news out there this week that evidences (yet again) just how fast and furious things change on a daily basis in the digital world we live in.
One of the big stories this week is about artist Cassie's Ventura success on the Billboard charts, and how she launched it via MySpace.com(See article below 'MySpace Creates Summer Hit') where she received 7.3 million page/profile views.
Cassie's success speaks volumes about MySpace.com's "growing reputation as the up-and-coming way for the entertainment industry to reach mass audiences" and anybody in the industry who doesn't recognize just how important and dramatic this success story is, is simply ignoring the equally dramatic shift in a very big part of the active music audience that is not listening to radio to find the music they like. In fact, they are "listening" online, sharing files, turning each other on to their favorite songs, and burning them on CDs or putting them on their iPods.
Yes, radio still plays the pivotal role in exposing music to the masses, but in this case, MySpace.com acted like the platform secondary and tertiary radio stations used to provide for new music from labels. That platform might still exist in reality, but it's become clearer and clearer that it takes longer to establish new music on radio today (though new artists have always been the lifeblood of the industry), so many artists are taking matters into their own hands and using the media of choice for their generation, the Internet.
In other news and developments (which you can read about in more detail below): broadband usage is increasing by leaps and bounds (which makes the PC even more of a competitor to TV); Microsoft will attempt to challenge Apple's ubiquitous iPod with their own device (this is definitely a BIG gamble); amazon.com is going to offer movie downloads; online ad spending is predicted to hit $25 billion by 2011; high-definition video will soon be available on iPods; and more.
But now, the bad news. Album sales in the U.S. continue to move downward in the first half of this year. Totals sales for 2006 reached approximately 297.9 million units so far and that figure remains five percent behind comparable 2005 levels.
The reasons for the continued decline can be attributed to a myriad of reasons, but no matter how you slice it and dice it, some very basic facts are easy to focus on: the lack of great CDs in the marketplace (not necessarily great artists, but great CDs that contain enough great music that makes consumers want to buy them); CD prices; alternative entertainment options; online digital sales increases; and more.
If each of those problems is focused on and attacked as separate and apart from the others, things might stabilize or the decline might decrease until the next big multi-million surprise comes along. But make no mistake about it, the handwriting is on the walls around the industry in big graffiti type letters. Most of it says, "we're moving on, even if you guys aren't."
FOLLOW-UP:
As a follow-up to my commentary last week 'REPORTS OF THE INDUSTRY'S DEMISE ARE GROSSLY EXAGGERATED,' I think I should note that Fox News did make a correction on their website two days after receiving my e-mail informing Mr. Friedman his numbers were wrong. ( Record Biz II: Numbers Corrected, Still Bad (http://www.foxnews.com/story/0,2933,204515,00.html#3 )
However, in Mr. Friedman's second article, he STILL failed to get the facts right. He states in his corrected column, that "the Top 20 totaled just over a million CDs." Well, it's almost 1.4 million to be exact, and I think that's a bit more than "just over a million CDs."
Mr. Friedman closes by saying: " Either way, a million CDs aren't going to pay many music executives' salaries. It also won't keep a lot of record stores open. At this point, for the execs and others in the business to think otherwise is just delusional."
Mr. Friedman's math is delusional as well. I wrote Fox News yet another e-mail. I'll keep you posted.
Sirius, Like XM, Stops Production Of Some Radios
Sirius Satellite Radio on Thursday said it had instructed some of its manufacturers to stop making radios that do not comply with federal emissions and frequency rules.
The move follows a similar action by rival XM Satellite Radio Holdings related to models with FM transmitters, which allow consumers to play the satellite service on a traditional radio.
Read more about it by clicking here.
Microsoft's Zune To Rival Apple's iPod
After trying for years to compete with the iPod through an array of partners, Microsoft confirmed Friday that it plans to directly go after Apple Computer with its own rival, Zune.
Confirming weeks of rumors, Microsoft said it will launch music software and players under the Zune brand, though the software maker left plenty unsaid in its confirmation.
Read more about it by clicking here.
MySpace Creates Summer Hit
MySpace.com's growing reputation as the up-and-coming way for the entertainment industry to reach mass audiences has just been kicked up another notch.
Cassie Ventura's "Me & U" is No. 3 on Billboard's Hot 100 singles chart and No. 2 on its Hot 100 Airplay chart. The song's viral growth, which started before Ventura signed with Atlantic-based Bad Boy Records earlier this year, can be attributed to vigorous online marketing--MySpace, specifically--and word-of-mouth.
Since posting the song on her MySpace page in November, Ventura has generated more than 7.3 million profile views.
Read more about it by clicking here.
Amazon Goes To The Movies
Apple Computer has all but cornered digital music, so Amazon.com has set its sights on video downloads. Next month, the online retailer is planning to launch Amazon Digital Video, a service that will deliver full-length feature films and TV shows to customers over the Web, according to a source with knowledge of the offering.
The source confirmed a story that appeared in Sunday's edition of Advertising Age. The trade publication reported that Seattle-based Amazon will make downloads available in two ways. One is through a subscription service, where customers pay a flat fee to view movies over a certain time period. The other will be either a pay-per-view or a pay-per-movie service.
Read more about it by clicking here.
Fanning's Snocap Tests Music Sales
Snocap, the digital-music company founded by Napster creator Sean Fanning, is testing a new service that enables bands to sell their music on Web sites like MySpace.
Snocap's Linx service is also designed to let online retailers sell music from the company's vast registry of songs. It has distribution deals with Universal Music, Sony BMG, EMI Group and Warner Music, along with a number of independent labels.
Read more about it by clicking here.
YouTube Dances The Copyright Tango
If Robert Tur has his way, YouTube.com will soon have its day of reckoning in court.
Tur, a helicopter pilot and journalist, accused the company in a recent lawsuit of encouraging people to steal copyright material. Tur's video of the 1992 Los Angeles riots appeared on YouTube and was viewed more than 1,000 times, according to the suit, filed in a Los Angeles federal court. YouTube said Tur's claims are "without merit."
Read more about it by clicking here.
Online Ad Spend Predicted To Reach $25.9b By 2011
Online Ad spending will continue to climb for the next five years, reaching an estimated $25.9 billion by 2011, according to a report issued today by JupiterResearch.
The report, "US Online Advertising Forecast, 2005 to 2011," is especially bullish on search marketing. JupiterResearch states that search advertising surpassed display ads last year, and predicts that search will dominate online advertising for at least the next five years.
Read more about it by clicking here.
Rupert Murdoch Talks About MySpace.com Explosive Growth
Twenty years after Rupert Murdoch upended the status quo in television with the launch of Fox Broadcasting Co., Murdoch and News Corp. are in the vanguard of another media revolution with its recently acquired Internet assets including MySpace.com. The News Corp. chairman and CEO recently spoke with The Hollywood Reporter contributing editor Diane Mermigas about his company's interactive expansion and what it augurs for traditional media giants.
Read more about it by clicking here.
Will The Cool Kids Go Gaga For Bebo?
Can't wait for the current cycle of talentless pop music to end? Bebo Bands wants to hear from you.
Social-networking site Bebo announced in early July that its 25 million members would have unlimited uploading and sharing of music files to its Bebo Bands site. In the last two weeks, more than 25,000 bands and tens of thousands of groupies decided to call Bebo Bands their home, according to Bebo.
Bebo seeks to distinguish its music networking features by becoming a democratic music site that allows members to play DJ, promoter and groupie.
Read more about it by clicking here.
High-definition Video Add-on Coming To iPod
In about five months, you'll be able to watch high-definition video on your iPod. San Carlos, Calif.-based ATO will come out with a sleeve with a built-in LCD (liquid crystal display) screen that slips around Apple Computer's iPod--whether it's a video iPod or not--and turns it into a portable high-definition video player, John Scott, CEO of the start-up, said at the AlwaysOn Innovation Summit taking place this week at Stanford University here.
The HD player will sell for between $199 and $250 and will be released in five months. The initial players will be able to handle MPEG 4, Divx, HD.264 and other video formats. The battery on the device will last about five hours.
Read more about it by clicking here.
WHITE HOUSE WELCOMES IDOLS
Taylor Hicks and the other top 10 Idol finalists scheduled to pay a visit to President George W. Bush in the Oval Office on Friday.
THIS WEEK'S 'WHO CARES' NEWS ITEMS
ITEM#1: Tina Fey announcing on the 'Tonight Show' Friday that she will not be returning to 'Saturday Night Live' (SNL) in the fall and will instead devote her focus to her new NBC show, '30 Rock.' Let's hope the new show is a whole funnier than the past few years of SNL which lost its original cutting edge humor/satire long ago.
ITEM#2: Lindsay Lohan hospitalized in Los Angeles Tuesday after she became "overheated and dehydrated" on the set of her upcoming film, Georgia Rule. Lindsay hospitalized yet again...so what else is new?
ITEM#3: Former Nosing member, Lance Bass, confirming to People magazine that he is gay and involved with Amazing Race winner Reichen Lehmkuhl. This will get surely get Lance more press than he ever had, even when N'Synch was at its height.
ITEM#4: Kylie Minogue launching her own line of fragrances and other products. Now she can be on the same shelf as the overpriced fragrances from Jessica, J-LO, and Britney.
ITEM#5: Jada Pinkett Smith telling People magazine that she and husband Will Smith have seen Suri Cruise during a couple of visits to Tom and Kate Cruise's Beverly Hills abode. Whoop-dee-doo.
NOW HE'LL HAVE TO SURVIVE THIS
Richard Hatch, the first 'SURVIVOR' winner, sent to a federal prison in Oklahoma to serve out his 51-month sentence for failing to pay taxes on his 'Survivor' winnings and other income. I don't think Mr. Hatch will be parading around these grounds naked as he did on 'Survivor.'
AREN'T YOU GLAD YOU DIDN'T SPEND ALL THAT MONEY ON TICKETS?
NBC broadcasting Madonna's 'Confessions Tour' Live in a two-hour special in November, marking the singer's first-ever broadcast network performance. (The "Material Girl" previously had HBO Concert Specials)
LAST WEEK IT WAS KID ROCK AND PAM ANDERSON, NOW THIS WEEK'S 'PEOPLE ARE ALREADY TAKING BETS ON HOW LONG THIS ONE WILL LAST'
Fred Durst announcing his engagement to Krista Salvatore, a 21-year-old Rhode Island native who he met over Memorial Day Weekend, according to a post on his MySpace account.
ROD ROCK AGAIN
Rod Stewart releasing his first rock album in eight years--'Still the Same...Great Rock Classics of Our Time'--on Oct. 10. And knowing how well Clive Davis is with putting these types of packages together, this one's sure to be a Platinum addition to Rod's collection.
AMERICA'S OLDEST TEENAGER GETS NODS
Dick Clark to be honored at next month's Emmy Awards in recognition of the 50th anniversary of American Bandstand's debut on ABC.
BOX OFFICE BOOM
'Pirates of the Caribbean' topping the box office for the third straight weekend, adding another $35 million to its treasure chest. The movie has earned $322 million to date, making it the fastest movie ever to reach the $300 million milestone. 'Cars' has now grossed over $230 million; 'Superman Returns' over $180 million; 'The Devil Wears Prada' almost $100 million.
BOX OFFICE BUSTS: M. Night Shymalan's 'Lady In The Water' sure to be his poorest effort at the box office with only $21 million to date after 5 days and the Luke Wilson/Uma Thurman 'My Super Ex-Girlfriend' proved it was anything but super with audiences, pulling in only $10 million in change after 5 days.
HERE COME THE LATE-NIGHT TALK-SHOW JOKES
Nicolas Cage signing on to star as Liberace in a new biopic, website TMZ.com reports.
THEY KEEP ROLLING AND ROLLING
The Rolling Stones kicking off the North American leg of their 'Bigger Bang' tour Sept. 20 in Boston.
MTV VID INFO
Madonna's video for "Like a Prayer" topping MTV's list of the Top 100 Videos That Broke the Rules. Britney Spears' "Baby, One More Time" coming in second and Michael Jackson's "Thriller" was third.
METALLICA SURRENDERS
Metallica admitting defeat in its long-running battle against the digital revolution and making its music available through iTunes Music Store.
EMI SAYS IT'S "NO GO"
EMI announced Thursday it is giving up on plans to merge with Warner Music that would've created the world's second-largest music group, after an antitrust ruling vetoed a similar music-industry merger.
KAZAA KA-CHING
The big five record labels reached a legal settlement with file-sharing network KaZaA that will see the latter pay more than $100 million in damages for enabling illegal downloading of copyrighted music and commit to going legit immediately.
BROADBAND SOARS
By the end of last year, there were 50.2 million U.S. homes and businesses connecting online via broadband--marking a 33 percent increase from 2004, according to a report released Wednesday by the Federal Communications Commission.
A Great Website
Website rehearsals.com puts you right into the rehearsal studio to watch recording artists prepare for concerts, television appearances, tours and recording sessions. They are committed to giving you a backstage pass that will make you feel as though you're actually sitting right there with the artists and their entire production support family.
I spent some time on the site this week and I think they did it right. Great video and audio! See passion and artistry come together, and experience the excitement and the process of music in the making.
Check it out at: www.rehearsals.com.
COMING SOON!
- Christina Aguilera, Back to Basics (8/15)
- OutKast, Idlewild (8/22)
- Bob Dylan, Modern Times (8/29)
- Old Crow Medicine Show, Big Iron World (8/29)
- Jessica Simpson, A Public Affair (8/29)
2006 Industry Conferences
Date Name Location CMJ October 31 - November 4 New York
Quotes of the week
"I garden topless. I'll be in my garden, you know, just being natural."
-- Alyssa Milano baring all in 'Us Weekly.' And I bet Alyssa's neighbors are just loving it."I think every decade has an iconic blonde--like Marilyn Monroe or Princess Diana--and right now, I'm that icon."
-- Paris Hilton being ever so egotistical in 'In Touch' magazine. If there's just one a decade, I guess that mean we only have to endure four more years until Ms. Hilton fades from the PR spotlight. Let's hope those four years fly by fast."They're getting married on a yacht. I think this is a good idea. Not only will Pam be the bride, she'll also serve as a flotation device."
-- David Letterman, on Pamela Anderson's upcoming wedding to Kid Rock"I love my wife. I have loved her since the day I met her. Please ... I love her. For a lifetime, I've tried to prove how much I love her. This is an aberration. I'm sorry. I'm contrite. I'm stupid. Foolish. No excuse."
-- Christie Brinkley's wandering husband, Peter Cook, to New York Post columnist Cindy Adams via his lawyer, Norman Sheresky.
NARIP Information
NARIP (The National Association of Record Industry Professionals) promotes career advancement, education and good will among record executives. To find out more about this great organization, how you can join or attend their events, just go to: www.narip.com.
The B-Side - 'Blips'
KIDS WILL BE KIDS...AND THEY'RE GETTING SMARTER, OR DUMBER, DEPENDING ON HOW YOU LOOK AT THIS: ELLICOTT CITY, Md. -- Authorities aren't happy about yellow, smiley face gumballs. The federal Drug Enforcement Agency is warning about so-called "Greenades," which are marijuana-containing gumballs.
The DEA is issuing an intelligence bulletin about the pot candies to police departments across the country. The smiley face gumballs were first discovered at a Howard County, Md., high school in January.
Police charged three 17-year-old students after a teacher alerted a school resource officer. She told the officer that she saw a student give a plastic bag that the teacher believed contained drugs to another student.
The officer seized the bag, which contained two "candy balls," police said. The gumballs came wrapped in colorful tin foil labeled as "Greenades" with a marijuana leaf on the wrapper and detailed instructions for use. Instructions on the foil told users to chew for 30 minutes to 1 hour "before you would like receive your high" and to "chew for as long as possible, then swallow."
Each gumball contained approximately one gram of marijuana, and the total net mass of the two gumballs was 17.5 grams.
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