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Blame Al Gore, He "Invented the Internet"...NOT!
April 7, 2006
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"During my service in the United States Congress, I took the initiative in creating the Internet"
-- Al Gore during an interview with Wolf Blitzer on CNN on March 9, 1999.So there it is. The Internet, the reason for so many of the industry's ills, is all Al Gore's fault. (And to think that so many people in Hollywood in the industry supported him in 2004 )
Okay, let's give credit where credit is due. Mr. Gore supported a host of technological advances related to the advancement of the Internet and making it more accessible to the public, but to say that he took the initiative in creating the Internet is a bit much. (Okay, it's an out and out lie) In reality, the Federal Government created the Internet and it grew out of a rather intricate defense technology project. (If you want to read all about it click here: )
I thought I should clear all that up once and for all since the Internet and online file sharing continues to take hits in a variety of news stories I saw online and off. (Yes, there was actually other news being reported this week other than Katie Couric's leaving 'The Today Show' to go to CBS to anchor the CBS Evening News and do some fluff pieces on '60 Minutes')
This week the International Federation of the Phonographic Industry filed about 2,000 cases Tuesday in 10 countries, bringing the total of suits to 5,500 people in 18 countries. (See the stories below. 'U.K. Music Biz Vexed By File Sharing,' and 'Music Industry (Outside of U.S.) Files 2,000 More Lawsuits')
We all know by now that file-sharing is largely blamed for having a profound impact on music revenues worldwide. According to the data in the news story below, over $1.93 billion has been lost in just England alone over a three-year period, based on reduced music expenditures among file-sharers.
The truth is the real effects of file-sharing globally are hard to define. Though some data and recent sales figures show declines that they correlate to increased file sharing, there's a host of contrary data as well. Read 'Music Sharing Doesn't Kill CD Sales', for just one opposing research study and results. Or do a Google search for yourself and you'll find many articles of similar nature. (Another you might want to check out: 'Record Sales Up: Credit File Sharing')
While many still believe they can do battle with the Internet in some fashion to protect content, as time has shown us, it's simply not possible. If it were possible, Bill Gates and Microsoft, who lose billions annually to global piracy despite all the encryption technology they continually develop, would have figured out how to stop online theft and piracy long ago.
The facts are that despite trying to put a positive spin on it, the RIAA said overall retail revenues were off eight-percent last year. And the association's Lone Ranger, Mitch Bainwol said this:
"The music community has pivoted hard to the digital age, and fans are the true beneficiaries. We have transformed the way we do business and deliver music to consumers. The ways fans can enjoy music-and the ways the industry can recognize a return on its investment-have never been greater: download and subscription services, mobile phone content, enhanced value CDs, burn-on-demand kiosks, digital radio services. We are working hard to deliver consumers the music they love in the formats they want."
(Translation: We didn't transform the way we do business, the consumers did, and now we'd better some serious catch-up and generate new revenues anyway possible)In the meantime, iTunes still soars (except in France, see the 3/24 DISC&DAT issue with 'Remember, The Coneheads Were From France' for reference), XM Satellite Radio added more than 568,000 net new subscribers in the first quarter, taking its total subscriber base to more than 6.5 million (they expect to reach their goal of nine million subscribers by the year's end), and 45 plus million people are using iPods not only to listen to their favorite songs, but to download their favorite radio broadcasts and watch TV shows on the newer video iPods.
Even AOL's chief Jonathan Miller predicted at an influential trade show this week that "Video consumption is exploding on-line and on-demand is going to be the dominant way to consume content." Internet users are also showing that they want to consume and watch
entertainment in different ways today, Miller pointed out. (Okay, I know that's a big Homer Simpson 'DUH!', but the fact that even AOL is admitting this means they get it...finally)
So there it is. The Internet. This marvel of technology that connects us all globally and allows all this to happen. It's the reason for all these things happening so fast. But there's no reason to fear the changes. If the industry embraces technology at hand (and more being developed) and puts it to good use, who knows what tomorrow may bring?
In the meantime, if you don't like what the Internet's done, we really can't blame Al Gore. How about we do what the guys from 'Southpark' did? Yeah. Let's 'Blame Canada.'
Record Labels Not Boarding Podcast Bandwagon
A year ago podcasting was just a fad with a cool name. In recent weeks, the format has taken several steps toward becoming big business, but the major record labels are not eager to partner with the growing format.
The audio blog phenomenon that began as free, grassroots rantings is being commercialized through advertising and subscription fees.
To date, the major labels have been reluctant to license full-track songs to the podcasting community because podcasts are downloaded files free of digital rights management protection.
But there has been some movement on the musical front. Noncommercial radio station KCRW Los Angeles has posted audio podcasts of its programming since last March, and in January expanded into video podcasting. "The major labels aren't interested in digital distribution or promotion through podcasting," KCRW assistant general manager Jennifer Ferro says. "I think they're waiting for it to go away."
Read more about it by clicking here.
U.K. Music Biz Vexed By File Sharing
The British music industry lost more than 1 billion pounds ($1.8 billion) in the past three years as a result of people illegally file sharing on the Internet rather than paying for music, its trade organization said Tuesday.
The British Phonographic Industry (BPI) released its data as the International Federation of the Phonographic Industry, which represents the industry globally, launched almost 2,000 cases of legal action in 10 countries in Europe and in Hong Kong.
The British industry lost 414 million pounds ($727 million) last year as a result of illegal swapping of music on the Internet, up from 376 million pounds ($660.35 million) in 2004. In the three years to 2005, the total loss amounted to 1.1 billion pounds ($1.93 billion), the BPI said.
Read more about it by clicking here.
Reasons to Love Open-Source DRM
Aside from the fact that most savvy music listeners (justifiably) hate DRM, the very idea of using open-source software to enforce digital rights management runs counter to everything commonly assumed about the technology: that it needs to be secret, obscure, proprietary.
But open-source DRM is exactly what Sun Microsystems has proposed, with its DReaM initiative. Its goal is to promulgate an open-source architecture for digital rights management that would cut across devices, regardless of the manufacturer, and assign rights to individuals rather than gadgets. Assuming it catches on, this would create a bizarro world version of the copy-protection landscape.
Read more about it by clicking here.
Music Industry (Outside of U.S.) Files 2,000 More Lawsuits
The music industry has launched a new wave of lawsuits and criminal proceedings against file sharers across Europe. About 2,000 cases were launched Tuesday in 10 countries, the International Federation of the Phonographic Industry said, bringing the total to 5,500 people in 18 countries.
That figure does not include the United States, covered by its sister group, the Recording Industry Association of America, which has filed about 18,000 lawsuits.
Read more about it by clicking here.
HERE COMES A BIG PART OF THE FUTURE OF FILM DISTRIBUTION
Warner Bros., Universal Studios, 20th Century Fox, Paramount, Sony and MGM will begin selling digital downloads of major releases later this week via their jointly-owned Movielink Website.
MATERIAL GIRL TO HIT THE ROAD
Madonna announcing dates for her upcoming the 'World Is My Dance Floor' tour supporting her hit album, Confessions on a Dance Floor. The trek will kick off in Los Angeles May 21 and hit cities across the U.S. and Canada before heading over to Europe and then Japan.
JOE WALSH AND JAMES GANG REUNITE FOR THE ROAD
Also announcing tour dates on Monday was the James Gang. Original members Jimmy Fox, Dale Peters and Joe Walsh kick off their first joint tour in more than 35 years in Denver on Aug. 9.
JUNO NODS
Vancouver crooner Michael Bublé snagging four prizes at the Junos, Canada's version of the Grammys. Rock legend Neil Young won for Best Alternative Album for 'Prairie Wind' and Best Producer.
A GORILLA AT RETAIL
Peter Jackson's remake of King Kong earned a whopping $100 million after selling 6.5 million DVDs its first week in stores. That's the largest six-day sales ever for Universal Studios Home Entertainment.
BANK-RAPT
An attorney for Marion "Suge" Knight saying the rap mogul is declaring bankruptcy today after getting hit with a $107 million judgment in a 2005 civil suit. The courts are expected to take control of Death Row and other assets.
WHILE IN THE SLAMMER, HE'LL GATHER NEW MATERIAL FOR HIS NEXT CD AFTER HE'S RELEASED
Rapper Black Rob sentenced to seven years in the slammer for a November 2004 hotel robbery in which he stole a woman's purse and pocketed more than $6,000.
GLOBAL BEST SELLERS
According to figures compiled by the IFPI, Coldplay's X&Y was the biggest seller in the world last year and sold over 8 million copies to head the international trade org's Top 10 best-selling albums list.Following Coldplay on the IFPI Top 10 chart are Mariah Carey's The Emancipation of Mimi, 50 Cent's The Massacre, the Black Eyed Peas' Monkey Business, Green Day's American Idiot, Madonna's Confessions on a Dance Floor, Kelly Clarkson's Breakaway, Eminem's Curtain Call, and James Blunt's Back to Bedlam.
HIP-HOP TO DIVORCE COURT
Rap mogul Russell Simmons, 48, and model-wife Kimora Lee Simmons, 30, are separating after seven years of marriage, the couple confirmed in a statement.
NIRVANA MONEY
Courtney Love selling off a 25 percent stake of the Nirvana catalog for an estimated $50 million, according to Rolling Stone.
PASSING
Gene Pitney, who was inducted into the Rock and Roll Hall of Fame in 2002, was found dead in his bed in a Cardiff hotel in England this week. Pitney was 65.
THAT WAS QUICK
Eminem filing for divorce a second time from his wife, Kim, 82 days after they remarried.
GETTING WITH THE PROGRAM
Dave Matthews Band putting its entire catalogue online for the first time last Tuesday after striking a deal with Apple to sell the band's songs and albums through iTunes Music Store.
ROCK KUDOS
VH1 debuting the VH1 Rock Honors next month with inaugural honorees KISS, Queen, Def Leppard and Judas Priest.
IF YOU WANT TO KNOW WHAT MARIAH MIGHT SMELL LIKE
Mariah Carey partnering with Elizabeth Arden to launch her own fragrance line, the company said Thursday. The scent is slated for a spring 2007 release.
HEADED MULTI-PLATINUM IN PAPERBACK
More than 500,000 copies of The Da Vinci Code selling in the novel's first week of paperback release, leading the publishers to up an initial printing of 5 million to 6 million.
COMING SOON!
- Drive-By Truckers, A Blessing and a Curse (4/11)
- Godsmack, IV (4/25)
- Tool, 10,000 Days (5/2)
- Pearl Jam, Pearl Jam (5/2)
- Jewel, Goodbye Alice in Wonderland (5/2)
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
"There is only one way to reduceunemployment in France: you have to explain to the French people that they have to work harder."
-- Nicolas Sarkozy, French Interior Minister, on the proposed liberalization of employment laws that have sparked two weeks of protests across France."65% of people say that cheating on your income tax is worse than cheating on your spouse. The other 35% were women."
-- Jay Leno"Apparently, now that the ranch is over 15 years old, [Michael] Jackson just isn't that attracted to it anymore."
-- David Spade in Star on Neverland closing down
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'
IRVINE, Calif. -- If you don't want to pay top dollar for a new car, there's good news for you. Kelley Blue Book has released a list of what it calls top-10 cool, affordable new vehicles. The prices start at about $15,500, topping out under $18,000.
Top 10
Top 10 coolest new cars selling under $18,000, according to Kelley Blue Book:
Blue Book Value
* 2007 Toyota Yaris: N/A
* 2006 Scion xB: $15,524
* 2007 Dodge Caliber: $15,985
* 2006 Kia Sportage: $16,134
* Chevrolet HHR: $16,472
* Ford Fusion: $17,084
* 2006 Nissan Frontier King Cab: $17,179
* 2006 Mazda3: $17,860 2006
* 2006 Honda Civic: $17,860 2006
* 2006 Scion tC: $17,960 -
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