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Changes In Latitudes, Changes In Consumers Attitudes
April 21, 2006
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"A fundamental rule in technology says that whatever can be done will be done."
-- Former INTEL Chairman/CEO Andrew GroveThe Federal Communications Commission launched formal investigations this week into pay-for-play practices at four of the nation's largest radio corporations, the biggest federal inquiry into radio bribery since the congressional payola hearings of 1960 (see story below ' FCC Launches Payola Probes of 4 Radio Giants') after practically being forced to do so after New York Attorney General Eliot Spitzer rattled too many cages and shook things up pretty well.
Last week in this newsletter I again wrote about why independent labels thought they would have an easier time getting music onto radio ('Be Careful What You Wish For, DISC&DAT, 4/14/06). With the FCC now digging deeper into the goings-on at certain radio stations, I think it's a good guess that things across the board for both major labels and independents is going to get even a bit tighter now before they get better. (If they ever get better again and as good as they used to be when radio and record professionals worked together synergistically)
While the FCC was spending taxpayers' money hoping to find out what records made their way onto playlists and at what cost and how it was all done, things elsewhere were still happening at light speed outside "the matrix." (I'll go on record now and say that whatever is discovered will be minor in the overall picture of the hundreds of records that are promoted every year my music companies seeking to do what they've been doing for decades ... expose great new music to the audiences that are dying to hear it.)
Last week, ABC Television announced they were going to put episodes of several of their hit TV shows ('Desperate Housewives,' 'Lost,' 'Grey's Anatomy') up on their website for people to view for FREE after they air first on the network. The catch? Viewers online can't speed through the advertisements like they can if they have TiVo or DVRs (digital video recorders) with their cable or satellite system.
But ABC sees the Internet as a real potential ancillary avenue for revenue generation and they want to form alliances with their advertisers in this bold move for their mutual benefit. Smart move and if it works in minimal fashion, expect other networks to follow and quickly adopt this model. (This week, PBS announced they too would like to put content online in whatever media platform their audience chooses to use) ABC knows In this new wave of technology, you can't do it all yourself, you have to form alliances.
I've written several articles in this newsletter over the past few years about CD pricing and the relevance of the CD in today's marketplace against other entertainment options. I was not surprised then to see an article on AudioVideoRevolution.com this week about the very same thing. (See story below 'Cost Per Minute: Are Compact Discs A Good Value?') Oh sure, there have been many articles with similar content written in other places about the same issue in the last few years as well, but this article puts it in very simple terms and makes some compelling observations about consumer spending habits. (I still believe that lower prices would stop the precipitous decline in CD sales if prices were lowered, but as it says below the masthead of this newsletter, this is just "one man's opinion")
This week too, it was finally announced that The Beatles music is being prepped for online sales. ( See story below 'Beatles Fans Get Digital Ticket To Ride') The entire catalog is being remastered for maximum digital quality and this is indeed good news for the millions of Beatles fans who have waited a long time for this to happen. Expect to see major online and offline promotion and marketing as soon as the date is set for the songs to appear online.
The growth of the online digital music market evidences the public's thirst for music is still strong and it shows no sign of slowing down anytime soon. While their listening habits have changed dramatically (just look around you and see all the iPods in people ears, in their offices, their cars, homes, etc.), the fact that music has become more portable in its digital format, has only re-enforced the belief that music is something that the consumers want as part of their everyday lives.
Charlie Parker once said, " They teach you there's a boundary line to music. But man, there's no boundary line to art."
And there's no boundary lines when it comes to bringing the music to as many people as possible in whatever format they choose to hear it.
Worldwide Music Wholesaler Super D Signs Exclusive Distribution Agreement With CD Baby to Distribute to Retailers Worldwide
Super D, a Worldwide Music Wholesaler has signed an exclusive distribution agreement with Internet retailer CD Baby to distribute CD Baby's 160,000 unique titles of independent artists' music to retailers worldwide. CD Baby has over 128,000 artists who have consigned their CDs to be sold on CD Baby and now these independent artists have worldwide distribution to retailers through Super D. CD Baby gave the independent artists an opportunity to offer and sell their product online and now the artists have a distribution channel to retailers worldwide.
IRVINE, CA (PRWEB) April 14, 2006 -- Super D, a Worldwide Music Wholesaler has signed an exclusive distribution agreement with Internet retailer CD Baby to distribute CD Baby's 160,000 unique titles of independent artists' music to retailers worldwide. CD Baby has over 128,000 artists who have consigned their CDs to be sold on CD Baby and now these independent artists have worldwide distribution to retailers through Super D. CD Baby gave the independent artists an opportunity to offer and sell their product online and now the artists have a distribution channel to retailers worldwide.
What does this mean to the individual artists?
Read more about it by clicking here.
Our 'Idol' Obsession
Network executives, writers, historians, music executives and even a comedian try to figure out why "American Idol" rules the airwaves.
Now in its fifth year, "American Idol" has become a ratings juggernaut and a national obsession. It handily defeats even the toughest competitors, even the Winter Olympics and "Lost."
This season, the singing contest has hit its highest note yet: An average of 31 million Americans are tuning in to watch Chris Daughtry, Kellie Pickler, Taylor Hicks and the others vie for instant success and celebrity, to follow in the recording contract footsteps of previous Idols Kelly Clarkson, Ruben Studdard, Fantasia and Carrie Underwood. Last year, the show that effectively handed Fox its first trophy in the race for 18-to-49-year-olds for the whole season became a bona fide phenomenon with an average of 26 million viewers.
Read more about it by clicking here.
Beatles Fans Get Ticket To (Digital) Ride
LOS ANGELES - After years of sitting out the digital music revolution, the surviving members of the Beatles have finally decided to let it be and begin selling online downloads.
Read more about it by clicking here.
Warner Music the Remix
CEO Edgar Bronfman's effort to adapt a storied label for the digital age could provide a blueprint for the salvation of the recording industry--and of the reputation of one of America's most intriguing moguls.
Read more about it by clicking here.
Subscriptions For A Song
So when was the last time you bought a CD? In this MP3 age, many people would really have to think before answering that question. Let's face it: the emergence of music subscription services-a result of the Napster revolution, no doubt-has made it possible to listen to hundreds of songs each month for about the same price as one album on CD. But with so many options-not to mention the rate at which they evolve-how do you choose?
Read more about it by clicking here.
Commentary: XP and Vista To Get New Media Player
Microsoft plans to jazz up its music player in Windows Vista, the company's next operating system. But at least some of the new features will debut much sooner.
The software, which will be built into Vista, is designed to offer better synching with portable devices, make it easier to scroll through long libraries of music, and be tightly integrated with Urge, a new subscription and download music service co-developed by Microsoft and MTV Networks.
Read more about it by clicking here.
FCC Launches Payola Probes of 4 Radio Giants
The Federal Communications Commission on Wednesday launched formal investigations into pay-for-play practices at four of the nation's largest radio corporations, the biggest federal inquiry into radio bribery since the congressional payola hearings of 1960.
Two FCC officials with direct knowledge of the matter confirmed that the agency had requested documents from Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting Corp. over allegations that radio programmers had received cash, checks, clothing and other gifts in exchange for playing certain songs without revealing the deals to listeners, a violation of federal rules.
Read more about it by clicking here.
Cost Per Minute: Are Compact Discs A Good Value?
You've heard many times on the pages of AVRev.com about how the woes of the music industry can't be placed solely on the shoulders of peer-to-peer file swapping or piracy. The fact that the compact disc is still a poor value was never more evident to me than when I was at the mega electronics store WOW! in Long Beach, California this weekend.
This lost "brick and mortar" sale due to an overpriced disc is becoming a common occurrence. I have often heard my friends saying, " I just don't buy music any more, because it's too expensive and just not worth it," or "Why don't you just get it used?' People are still buying DVDs by the millions each week, with "King Kong" selling a reported 6.5 million copies in its first week. A number-one-selling compact disc might be lucky to do 10 percent of that amount ... the music industry, retailers included, needs to take a hard look at their prices and put their products better in line with the pricing structure of DVDs and videogames.
Read more about it by clicking here.
Apple's No. 1 Hit - RECORD BIZ MAY SING JOBS' ITUNE AFTER ALL
The record industry may be on the verge of waving the white flag in front of Apple boss Steve Jobs, and abandoning its demand for iTunes to charge different prices for different songs, The Post has learned. Negotiations between Apple and the four major music companies - with which iTunes deals all expire in the next two months - have reached a crucial point as several record executives now say they are unlikely to convince Jobs to allow variable pricing, sources said.
This marks a change of tune for the record industry as late last year several executives said they believed variable pricing - something the music companies have been pushing for - was imminent.
Read more about it by clicking here.
SIMON SAYS, "IT'LL COST YOU!"
The price of a 30-second ad during the American Idol season finale swelling to $1.3 million, per AdAge.com.
'ONE' WON
The line "One life, with each other, sisters, brothers" from U2's "One," voted Britain's favorite song lyric in a poll conducted by VH1.
ALL YOU NEED IS 'LOVE' IN VEGAS
Tickets went on sale Wednesday for Love, a new Las Vegas Cirque du Soleil show that combines the acrobatic troupe's signature high-flying antics with classic Beatles tunes. The Fab Four's original producer, Sir George Martin, helped arrange the score. Love premieres June 30 at the Mirage hotel.
APPLE TO HIT THE ROAD
Fiona Apple announced a summer headlining tour in support of Extraordinary Machine, kicking off June 20 in Phoenix.
NEW JACK-O?
Michael Jackson joining forces with Bahrain-based Two Seas Records to record a new album, which he hopes to release next year, the label said in a statement.
NASHVILLE MERGER
RLG and Sony Music Nashville, will come together under one roof as SONY BMG Nashville it was announced this week.
DIAMOND DAVE TO GO OFF-THE-AIR
CBS Radio close to pulling the plug on David Lee Roth's morning radio show and replacing him with Opie and Anthony's syndicated XM satellite radio show.
BIDS PLEASE
Dave Matthews, Paul McCartney, Glenn Close and Martha Stewart among the headliners at the Third Annual Chevy Chase Earth Day Auction.
BUT WHAT WILL IT SMELL LIKE
KISS launching a new fragrance line for both men and women, due to hit department stores in September.
ABBA TO THE SILVER SCREEN
Daily variety reporting that Mamma Mia, the stage musical inspired by the music of ABBA, is being adapted to the big screen by Tom Hanks' production company.
COMING SOON!
- Godsmack, IV (4/25)
- Tool, 10,000 Days (5/2)
- Pearl Jam, Pearl Jam (5/2)
- Jewel, Goodbye Alice in Wonderland (5/2)
- Red Hot Chili Peppers, Stadium Arcadium (5/9)
- Paul Simon, Surprise (5/9)
- The Raconteurs, Broken Boy Soldiers (5/16)
2006 Industry Conferences
Date Name Location MusExpo 2006 April 30-May 3, 2006 Los Angeles, CA Streaming Media East 2006 May 23-24, 2006 New York, NY Home Entertainment 2006 June 1-4, 2006 Los Angeles, CA
Quotes of the week
"I don't want my wife watching porn because I don't want her to compare me to anything, really. If she does, I tell her, 'The camera adds 10 pounds. Everywhere."
-- Ray Romano in Us Weekly"Michael Jackson has made a deal with a New York investment group to re-finance $300 million dollars in loans. After the deal was worked out they told Michael don't spend the money all on one kid, ok?"
-- Jay Leno"I'll tell you how I knew my marriage was over: I was told."
-- Ex-newlywed Nick Lachey dishing about his breakup with Jessica Simpson in a new interview with Rolling Stone.
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'
THE VERY FACT THAT HE WAS MAKING HOUSE CALLS SHOULD'VE BEEN A BIG TIP-OFF: Lauderdale Lakes, Fla. -- A Coconut Creek man is accused of pretending he was a doctor and performing free in-home breast exams. Authorities say 76-year-old Philip Winikoff told several residents at a Lauderdale Lakes apartment complex that he was a doctor from a North Miami hospital. He apparently carried a medical bag that belongs to his wife, a registered nurse. A spokesman for the Broward Sheriff's Office says one of Winikoff's alleged victims realized he wasn't a doctor when he didn't use gloves to examine her. The woman's boyfriend called authorities. Winikoff was arrested Wednesday and charged with sexual battery and simple assault. Authorities believe he targeted women who don't speak English well and women who don't have health insurance.
HEY BUDDY! WHERE YOU GOING?: WADSWORTH, Ohio -- Firefighters dousing a blaze in a new home were confused when the presumed owner suddenly fled -- until they found $700,000 worth of marijuana plants in the basement, officials said. "It seemed so strange to me," said Wadsworth Fire Chief Ralph Copley. "If it were my home burning, I'd want to be there."
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