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Abundant Entertainment Options Mean Radical Changes
July 14, 2006
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"The average file-trading network has more songs than any music store - by a factor of more than 100. Music fans had the opportunity for limitless choice, and they took it. Today, listeners have not only stopped buying as many CDs, they're also losing their taste for the blockbuster hits that used to bring throngs into record stores on release day. If they have to choose between a packaged act and something new, more and more people are opting for exploration."
-- Chris Anderson, WIRED magazine's editor-in-chief, from his new book 'The Long Tail: Why the Future of Business Is Selling Less of More' (c) 2006.The above quote is from one of the best articles I've read in a long, long time. (See link to the entire article below 'The Rise And Fall Of The Hit')
The sub-header says, " The era of the blockbuster is so over. The niche is now king, and the entertainment industry - from music to movies to TV - will never be the same." Amen. And truer words have not yet been spoken about just how much everything has changed in the entertainment industry in the past few years.
Last week was the least-watched week in recorded history for the four biggest broadcast networks. CBS, ABC, NBC and Fox averaged 20.8 million viewers during the average prime-time minute last week, according to Nielsen Media Research.
Of course the week of the July 4th holiday always has less viewers than other weeks during summer reruns, but these new low numbers are just further evidence that the public is starved for something/anything new in a time when the network executives assume (and have assumed forever) just because it is summer, there's no reason to put on anything worthwhile. (Of course every cable show success story launched in the summer months defeats that belief) Putting on something as mindless as NBC's "America's Got Talent" attracted 10 million viewers just because it's new. Imagine if it was really good how many more people might tune in.
But the big four networks have other problems. Cable TV, Pay-For-View, Tivo are all eroding their once dominant automatic ad-agency buys. Radio of course is facing similar problems from satellite broadcasts, online stations, podcasts, etc.
On the music side, U.S. album sales were down 4.2 percent in the first half of the year, while sales of music downloaded online soared 77 percent. Total sales of albums across different formats - CDs, digital albums, cassette and others - stood at 270.6 million between Jan. 2 and July 2, compared to 282.6 million in the same period last year, according to Nielsen SoundScan figures. The biggest growth was in the country music genre which saw a 17.7 percent increase in sales over the first half of 2005.
One can try and analyze this decline. Perhaps part of the reason is a lack of big hits compared to the same period in 2005. But maybe music buyers are just doing more "exploring" as Robinson says in his article. Whatever the reason(s), it's becoming more and more apparent that traditional methods of generating revenues and success stories are fast becoming outdated as new technologies and electronics enter the marketplace at breakneck speed.
The success of the 'Now That's What I Call Music' CD series (and the next one is released next week) reflects the immense success of Apple's iTunes/iPods as a virtual a 'Best Of" iTunes type compilation. (And with the success of these, why would anyone at a major label wonder why the industry at large has problems?)
Robinson closes his article with this: " The mass market is yielding to a million minimarkets. Hits will always be with us, but they have lost their monopoly. Blockbusters must now compete with an infinite number of niche offerings, which can be distributed just as easily. Justin Timberlake still makes albums, but today he has thousands of bands on MySpace as rivals. The hierarchy of attention has inverted - credibility now rises from below. MTV and Tower Records no longer decide who will win. You do."
But make no mistake about it. There's billions of dollars to be reaped from these minimarkets. If entertainment companies are smart, they will start shifting their paradigms now.
The Worst Products of Q2
In late April, PC MAGAZINE reported on the worst products they had seen in the early part of the year. Some were real stinkers, and people couldn't wait to find out what they were.
So without further ado, here are the worst products of for the second quarter of 2006.
Read more about it by clicking here.
The Rise and Fall of the Hit
The era of the blockbuster is so over. The niche is now king, and the entertainment industry - from music to movies to TV - will never be the same.
From Wired magazine: Chris Anderson adapts a discussion about the transformation from mass markets to minimarkets from his new book 'The Long Tail: Why the Future of Business is Selling Less of More.'
What caused a generation of the industry's best customers - fans in their teens and twenties - to abandon the record store? The labels cried piracy: Napster and other online file-sharing networks, along with CD burning and trading, had given rise to an underground economy of stolen music. Of course, there's something to that. Despite countless record-industry lawsuits, traffic on the peer-to-peer file-trading networks has continued to grow, and about 10 million users now share music files each day.
But technology didn't just allow fans to sidestep the cash register. It also offered massive, unprecedented choice in terms of what they could hear. The average file-trading network has more songs than any music store - by a factor of more than 100. Music fans had the opportunity for limitless choice, and they took it. Today, listeners have not only stopped buying as many CDs, they're also losing their taste for the blockbuster hits that used to bring throngs into record stores on release day. If they have to choose between a packaged act and something new, more and more people are opting for exploration.
Read more about it by clicking here.
Chicago's Jazz Radio Succumbs To MP3 Era
The iPod and a growing need for local news have done the unthinkable: They have cost Chicago, one of America's great jazz cities, its last major source for jazz programming on local radio.
WBEZ, Chicago's National Public Radio member station and among the oldest public radio outlets in the United States, has decided to scrap scheduled music programming--the bulk of which was nightly jazz--and move to a 24-hour news and public-affairs format. The change, which has sparked a backlash from loyal fans, speaks volumes about the worries facing independent radio stations.
Read more about it by clicking here.
MySpace Grabs Top Spot Among U.S. Sites
Online hangout MySpace.com has overtaken Yahoo's e-mail gateway as the single most-visited U.S. Web site, although Yahoo's network of sites retains a broader audience, according to a report issued Tuesday.
According to Internet traffic measurement firm Hitwise, News Corp.'s MySpace accounted for 4.46 percent of all U.S. Internet visits for the week ended July 8, pushing it past Yahoo Mail for the first time and outpacing the home pages of Yahoo, Google and Microsoft's MSN Hotmail.
Read more about it by clicking here.
Minor Alternatives To Major Labels; A Crash Course In Free Music Online
So, is anyone besides the RIAA making money with music online? Absolutely.
The widespread idea that popular music is popular due to its quality is incredibly misguided. Sure, independent music varies widely in artist ability and talent but, in an Internet connected world its becoming increasingly easy to find amazing independent musicians to listen to and love.
Read more about it by clicking here.
Texting Radio's iTunes Groove
Pop2Life is in talks with Apple Computer to provide a text-messaging link that connects iTunes to dozens of terrestrial radio stations in major urban markets in the United States.The New York City-based startup, which lists itself as a marketing and promotions agency, recently introduced P1 SMS, a text-messaging system that allows listeners to purchase songs they hear on the radio.
When a song comes on the radio, listeners can text a five-digit trigger word, like the station's call letters. They then receive a menu of items related to the song, such as full-track downloads, ringtones, concert tickets, CDs, and in the future, videos.
Read more about it by clicking here.
Mobile Music To Beat Online in Five Years
According to a recent IDC study, U.S. wireless music services will have over 50 million users and generate more than a billion dollars in revenue in 2010, just 5 years after appearing in late 2005.
Susan Kevorkian, program manager, Consumer Markets: Audio, said "Wireless OTA music services... brings the music industry new opportunities to reach consumers and drive revenue. Wireless music services... are expected to quickly gain traction during the forecast period. By the end of this year, the number of U.S. OTA customers will be approximately half that of online music service users, but may surpass them by the end of the forecast period."
Read more about it by clicking here.
Podcast Users Outnumber Bloggers
U.S. adults who fownload podcasts now outnumber those who publish blogs, according to new data byNielsen//NetRatings.
More than 9.2 million Web users, or 6.6 percent of U.S. adult Web users, have downloaded an audio podcast in the last 30 days, compared to 6.7 million users (4.8 percent) who published blogs in that time, according to the research company. Nielsen//NetRatings also reported that around 5.6 million online adults (4 percent) have downloaded a video podcast in the last 30 days.
Podcast downloaders tend to be younger than the online population at large. Web users between the ages 18 and 24 are 72 percent more likely than the average Web user to listen to audio podcasts and 47 percent more likely to view video podcasts. Users older than 45 were less likely than average to listen or view podcasts.
Read more about it by clicking here.
Time Warner To Disclose AOL Strategy Soon
Company refutes news report that AOL will continue to lose money through 2009, offer more free services.
Time Warner said on Tuesday it would soon disclose its business strategy for Internet unit AOL, dismissing a Wall Street Journal report that it will lose up to $1 billion through 2009 as it offers more free services.
"Recent media reports appear to be based on unauthorized disclosures, including of incomplete and largely erroneous financial information," Time Warner said. "The company cautions investors not to draw conclusions regarding AOL's future strategy until the company's presentation on August 2."
Read more about it by clicking here.
HERE THEY GO AGAIN
Less than two months after Taylor Hicks was named the newest 'American Idol' on the show's season-five finale in May, it's already time for open auditions for season six. Tryouts will begin at the Los Angeles Forum on Tuesday, Aug. 8, the show's producers have announced. Other cities for where hopefuls can tryout: San Antonio, Tex.; East Rutherford, N.J.; Birmingham, Ala.; Memphis, Tenn.; Minneapolis, Minn.; Seattle, Wash.
OTHER IDOL NEWS
'American Idol' fourth runner-up Chris Daughtry turned down the opportunity to front Fuel, but he's still been penning songs with the band's Carl Bell in recent weeks. He has also been working with Ed Kowalczyk of Live and plans to collaborate with Chad Kroeger of Nickelback. Looks like even if you lose being crowned the new Idol, you can win anyway.
PASSING
Pink Floyd co-founder Syd Barrett died this past week. He was 60. Barret was the inspiration for the Pink Floyd's songs: "Shine On You Crazy Diamond," and "Wish You Were Here."
PAINT IT BLACK
Because it has "gone as far as it can go," Prince has shut down his pioneering website, NPGMusicClub.com. He said that people would have to "wait and see" why he shut down the site. We won't hold our breath.
LIVE NATION BUYS HOUSE OF BLUES
Live Nation, a concert promotion spinoff of Clear Channel, has announced plans to acquire House of Blues Entertainment for $350 million, with the deal expected to close by end of 2006.
NOW JESSICA CAN SING ABOUT YOU TOO
Epic Records and Jessica Simpson giving fans the option of personalizing Simpson's new song, "A Public Affair," by inserting their own names into the lyrics upon downloading the tune. The gimmick launches at Yahoo! Music on Tuesday.
TONY AND HIS BOYS NOT BACK UNTIL MARCH '07
HBO announcing this week that the final episodes of "The Sopranos" won't air until March of next year, a couple of months later than expected, because star James Gandolfini injured his knee, delaying production.
THIS WEEKS "WHO CARES?" MEDIA EVENT
Just when we thought we were finally rid of them, E Entertainment television announced that they have ordered another season of the Paris Hilton and Nicole Richie "The Simple Life" series. Obviously, shows on cable do not need big ratings to get renewed.
NASHVILLE'S VERSION OF 'AMERICAN IDOL' RETURNS
Season five of USA's Nashville Star is set to premiere in January 2007.
SEE THEM, FEEL THEM
The Who launching its first major world tour in over 20 years, Pete Townshend and Roger Daltry announced Thursday. The North American leg kicking off Sept. 12 in Philadelphia.
COMING SOON!
- Golden Smog, Another Fine Day (7/18)
- Los Lonely Boys, Sacred (7/18)
- Tom Petty, Highway Companion & Revelations (7/25)
- New York Dolls, One Day It Will Please Us to Remember Even This (7/25)
2006 Industry Conferences
Date Name Location CMJ October 31 - November 4 New York
Quotes of the week
"It's hard getting older; it's hard not to be the young one anymore, to see your face change, your skin change, and not judge it."
-- Courteney Cox, on plastic surgery, to Marie Claire. You just figured all that out now, Courtney?"I'm not supposed to be this big huge pregnant superstar."
-- Britney Spears, in an excerpt of a Harper's Bazaar interview obtained by USA Today. Really Britney? Then why do a cover of a major magazine naked and pregnant?"Marcia Cross made the mistake of getting married the same weekend as Nicole Kidman. Her marriage went straight to video."
-- David Spade in Us magazine"I'm sure you've heard by now "Pirates of the Caribbean: Dead Man's Chest" had the biggest movie opening in history. It's the most popular movie that was originally based on a ride, well, since the Paris Hilton video."
-- Jay Leno"You all know Albert Einstein? They now say he had as many as ten girlfriends. So I guess E equals more than mc squared."
-- David Letterman
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'
YO-YO LOVERS EVERYWHERE BEWARE: FORT PIERCE, Fla. -- A convenience store clerk was held without bail after he allegedly attacked a boy for not buying a yo-yo, police said. Amar Shreiteh, 24, is charged with attempted murder and false imprisonment, The Palm Beach Post reported Tuesday. Shreiteh was working at the store Monday morning when 14-year-old Jeremius Howard came in with his sister. As the girl browsed for snacks, Howard played with a yo-yo, police said. After she paid for the items, Howard put down the toy and tried to leave the store. Police said Shreiteh demanded the boy pay for the yo-yo, but Howard told him it was already opened and he didn't want it. Shreiteh then punched the boy, according to police.
He pulled Howard behind the counter and stabbed him on the back of his arm with a butcher knife, police said. Another clerk, Azzam Sabla, 41, tried to stop Shreiteh and suffered a serious wound to his right forearm. Howard was treated and released. Sabla remained hospitalized.
"I can't believe a $1.59 yo-yo would cause people to be stabbed," said Marilyn Burch, Howard's cousin.
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