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Getting The Whole Story Is No Longer A 'Mission Impossible'
May 12, 2006
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"The worst things in history have happened when people stop thinking for themselves, especially when they allow themselves to be influenced by negative people."
-- Donald TrumpAll the talk in Tinseltown and on the half-hour TV shows made up of PR releases, gossip, and agents hype ('Entertainment Tonight,' 'Access Hollywood,' 'Extra,' 'The Insider,' etc.) this week was about Tom Cruise's alleged box-office disappointment with his opening weekend take of $47 million for 'MI-3.' By mid-week, "Hollywood friends" rallied to support Mr. Cruise. (Source)
Of course, nobody really had to come to support Cruise. In reality, the film has already grossed over $120 million worldwide (Source) and is well on it's way to grossing between $350-$400 million worldwide when all is said and done.
I'm guessing you didn't hear that analysis on any of those TV shows. No, the news on these types of shows is condensed and delivered to us in five minute packages and written by hacks (if that sounds too harsh, then ask yourself if ANY of these shows are reporting REAL news) who try and bend the truth to grab audience with the shortest sound byte they can create.
I only mention all this because after reading this week that there are now 694 million people, age 15+, using the Internet worldwide from countries that comprise 99 percent of the global Internet population ( Source). That means there's an awful lot of people with the ability to go online and do research, dig for information, and find out more about whatever it is they want to know about. Of course, that also means, they can find REAL facts that often contradict what they see and hear about in the mainstream media "news" presentations.
For the past year we've heard about falling box-office receipts and how it's caused panic in the studios and back lots in Hollywood. We've all heard about how skyrocketing production costs have made it difficult for production companies and studios to recoup investments. We've all read about the difficulties in the music business due to downloading and new technological developments that have affected profits at all major labels.
I've written about many of those same issues here in this newsletter. But I've also written about the many opportunities new technologies have created for new revenue generation. If anything, I've criticized those who still wait on the sidelines for something to come along and change things for the better. (i.e. legislate technology) But in truth, the technological developments already at hand, HAVE changed things for the better whether one likes the developments or not.
Almost 700 million people are online, which means in short time there will be one billion. Anyone who sees that number as a threat to their existing business model(s) is looking at the glass as half empty instead of half full and topping off fast.
Seven hundred million people online means of course, there's a great big dynamic marketplace that's waiting to be exploited by those who act swift enough to capitalize on the single greatest "one stop" of all. The major film studios and TV networks are already setting course for their futures online and starting to use the Internet for distribution. Whether it's via video Podcast downloads, or actual online viewing (check out www.abc.com if you missed last week's episode of 'Desperate Housewives' or 'Lost' ... and you can watch them for free! The hitch? You have to sit through a few online commercials), they see the opportunities for new strategic alliances, new marketing opportunities across multiple media platforms, and yes, new revenue generation.
So, don't believe all you hear on these shows about how terrible things are in the entertainment industry. There's a dynamic shift taking place in how the consumer will receive the content they want and how they will use it, but those who control the content will all be on the winning side as long as they seize the technology of today and use it to their advantage.
The Money Tree
Everyone seems to be joining the 'Idol' rich.
In its fifth season, "American Idol" is re-arranging the entire showbiz landscape. There are hits and there are hits; this show is a full-fledged cultural phenom.
"Idol" is steamrolling every show in its path and generating hundreds of millions of dollars every year in ad sales for Fox. But "Idol" riches are also trickling into many other sectors of the showbiz economy.
Read more about it by clicking here.
Warner Music Faces 14 Suits Over Download Fees
The Warner Music Group reported on Friday soaring digital music sales, even as the company continues to lose money and faces numerous lawsuits related to alleged price fixing of music downloads.
In documents filed with the Securities and Exchange Commission, Warner Music said the company has been named in 14 class-action lawsuits, most of which allege a "conspiracy among record companies to fix prices for downloads."
"The company intends to defend against these lawsuits vigorously," Warner Music said in its quarterly statement filed Friday.
Read more about it by clicking here.
Beatles Judge Finds iTunes 'Nothing to get hung about'
Is your hard drive equivalent to a compact disc? The Beatles said yes, Steve Jobs said no.
And in the end, a judge ruled in favor of Apple Computer. The long and winding road to Apple Computer's victory Monday over Apple Corps, the record label launched by The Beatles, hinged on a U.K. judge's interpretation of a 1991 agreement that forbade the computer company from distributing music on physical media, such as tapes or CDs, according to legal experts.
With Justice Anthony Mann's ruling, which is likely to be challenged on appeal, Apple Computer can continue to operate its iTunes Music Store in the U.K. using its name and logo.
Read more about it by clicking here.
Return To The 'Dark Side'
Roger Waters on Pink Floyd's landmark 'Moon'On March 17, 1973, a band in musical transition named Pink Floyd hit the Top 200 chart with the release of its new album, "Dark Side of the Moon." It entered the chart at No. 95, the top debut that week. And then a funny thing happened: It never left. Or almost never, anyway.
More than 14 years later -- 736 weeks, to be precise -- in July 1988, it fell off the Billboard 200. Add a later run on that chart and another 759 weeks on the Top Pop Catalog Albums chart, and Pink Floyd this week reaches the staggering plane of 1,500 weeks on the charts.
Read more about it by clicking here.
Sony Bites Music Bullet, Opts For Apple Compatibility
Sony is moving to make its music management software compatible with Apple Computer's audio file format in the latest evidence of Apple's dominance in digital music. The behemoth Japanese conglomerate, which once controlled the portable music market, announced Tuesday that the company's data compression technology would be compatible with a number of rival formats, including Apple's format of choice, AAC.
In the past, Sony has fiercely held to its own Atrac system. By switching to a technology that supports AAC, Sony appears to be acknowledging Apple's dominance in the digital music playing market, say analysts.
Read more about it by clicking here.
Music Technology: The Times They Are A-Changin'
"A new wave of digital commerce, from mobile to broadband, is rolling out across the world," said IFPI Chairman and CEO John Kennedy. "It is generating billions of dollars in revenues, and it is being driven, to a large extent, by music -- by the people who create music, who produce it, and who invest in it."
Streaming digital audio and video, MP3 ripping and CD burning, podcasts, webcasts, satellite radio, digital audio broadcasting (DAB) and now streaming mobile wireless: The rapid advent of new digital audio technology has created a wealth of options and opportunities for technology providers, new and established music companies, musicians and music lovers alike.
It has also caused panic, consternation and dramatic, painful changes -- sometimes massive restructuring -- of relationships between recording companies, broadcasters and musicians. For a long time, those relationships have been volatile, but if they were not always cozy, they were often hugely financially rewarding and mutually beneficial.
Read more about it by clicking here.
Universal Music Settles Payola Probe
Universal Music Group Recordings Inc., the world's largest record company, has agreed to pay $12 million to settle a payola case that claimed the company provided vacations, electronics and other bribes to increase radio play for their artists, New York Attorney General Eliot Spitzer said Thursday.
The bribes and gifts were used to gain airplay for songs that included records by Nick Lachey, Ashlee Simpson, Brian McKnight, Big Tymers, and Lindsay Lohan, Spitzer said.
Read more about it by clicking here.
ONCE A NAME ALWAYS A THREAT, REGARDLESS OF MEDIA REPORTS OF ODD BEHAVIOR
Tickets to George Michael's first European tour in 15 years selling out within a matter of hours of going on sale, proving that the singer's fans are still keeping the faith. An American leg to the tour in 2007 is imminent, though dates have not yet been announced.
AND THAT SYSTEMATIC PLAN IS CALLED EATING
Nicole Richie telling Vanity Fair she knows she's "too thin" and plans to do something about it. A doctor working to treat Richie said he was developing "a systematic plan to get more calories in."
AND LET'S HOPE THIS ONE GETS TO SIT IN A BABY SEAT AND NOT ON HER LAP WHEN SHE'S DRIVING
Britney Spears made a surprise appearance on The Late Show with David Letterman Tuesday to confirm that she is expecting her second child with Kevin Federline, and is not just getting fat.
DESPITE WHAT YOU MIGHT HAVE HEARD
Howard Stern denied reports this week that he is considering a return to terrestrial radio. "I'm very flattered terrestrial radio can't let go of me," Stern said on his satellite show Wednesday. "But I would throw up if I had to go back. I'm never going back."
THE GLIMMER TWINS ARE STILL IN BUSINESS
This week a Rolling Stones spokeswoman stated that Keith Richards neither suffered brain damage nor underwent a second operation to treat his head injury. The rep called the first surgery "100 percent successful" and said Richards "continues to improve as expected."
CLIVE ROCKS
This week the #1 and #2 debuts on the BILLBOARD Top 200 Album chart belong to Tool and Pearl Jam, and both are released by Clive Davis' BMG division. Both are acts who haven't released albums in quite some time. Congrats to Mr. Davis and his team!
SUE ME, SUE YOU BLUES UPDATE
CBS Radio is reportedly "very close" to hammering out a settlement in its $200 million-plus breach of contract suit against Howard Stern. No one's talking about what deal is on the table, but those of you who have Sirius might be able to get some info from Howard on his show when all is said and done.
COMING SOON!
- The Raconteurs, Broken Boy Soldiers (5/16)
- Dixie Chicks, Taking the Long Way (5/23)
- Def Leppard, Yeah! (5/23)
- Ralph Stanley, Distant Land to Roam (5/30)
- Zero 7, The Garden (6/6)
2006 Industry Conferences
Date Name Location Streaming Media East 2006 May 23-24 New York Home Entertainment 2006 June 1-4 Los Angeles
Quotes of the week
"I remained faithful during my marriage. And I defy anyone to refute that."
-- Richie Sambora to 'Us Weekly,' denying that he took up with Denise Richards before splitting with Heather Locklear."There's talk in Hollywood of making a movie based on the old TV show 'Knight Rider.' Remember the show 'Knight Rider,' starred David Hasselhoff and a talking car? You know where they got the idea of a talking car? The producers saw David act and said, 'Why don't we give the car a few lines?'"
-- Jay Leno"Britney Spears was here last night. While she was here her baby was outside driving around looking for a parking spot."
-- David Letterman"Retire? I can't spell the word. I'd play on in a wheelchair."
-- Keith Richards in People
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'
EVIDENTLY THE 'JUST SAY NO' CAMPAIGN DIDN'T MAKE IT INTO THESE PARTS: HANOVER, Pa. -- A 13-year-old Pennsylvania boy said his mother required him to do his homework first thing when he got off the school bus -- then smoked marijuana with him as a reward. According to court documents, she'd been doing it since the boy was 11. Police said they searched Amanda Livelsberger's home in York County last weekend and seized marijuana, drug paraphernalia and $600 in cash that she said belonged to a drug dealer. The 30-year-old woman was scheduled for a preliminary hearing Friday on charges of marijuana possession, corruption of minors and other offenses. Police said Livelsberger told them she also smoked marijuana with two of her son's friends, who are 17 and 18. Police said the 18-year-old told investigators he bought heroin from her.
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