-
Opportunities For A Secure Future
March 17, 2006
Have an opinion? Add your comment below. -
"The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty."
-- Winston ChurchillThis week, the National Association of Theater Owners (NATO) held their annual ShoWest convention in Las Vegas again and talked about their collective digital future. (See the article below ' Digital Tops Bill At Theater owners Confab' to get a glimpse into what's coming)
There's a whole lot of positives coming out of this meeting and it's encouraging to see so many people excited about the potential for new opportunities in their business model(s) as digital technology advancements and enhancements change their way of doing business.
One of my former tech clients had this to say to me after going to the show: " I can't believe the stuff that's going to happen, and it's going to happen fast. Digital distribution to theaters is going to save studios a fortune. But beyond that, I can tell you there's things I've seen in development in Silicon Valley that will just blow people minds this year and next. It's all exciting. How come the music industry is still so behind-the-curve in exploring and exploiting all these new possibilities? " And my answer of course: "Ah, but that's the $64,000 question isn't it?"
Recently the National Association of Record Merchants (NARM) stated in a study conducted by the NPD Group that " there are opportunities in the near-term to increase sales among an active group of consumers who still purchase physical music products. In addition, the report counsels the industry to exploit digital music technologies to spur greater overall music sales in the future. "
"The digital revolution is an unquestionable reality, and there's more competition than ever for the music shopper," said NARM President Jim Donio, "but consumers report they still enjoy and value physical music products, which accounted for 94 percent of total music sales in 2005." (Source: Click Here. )
No sooner had I read that press release when my e-mail alert went off and I received another news update stating that market research company In-Stat (www.instat.com) was projecting excellent growth for the digital music market and a continuing erosion in CD sales. InStat predicts that digital global music sales will reach $10.7 billion by year 2010 and eventually overtake physical online media around 2007. ( The report is titled The Online Music Market: Downloaded Music Outpaces Physical Media Bought Online in 2007)
I'm not rooting for the CD's demise as some readers have e-mailed me and suggested. On the contrary, I want to see the music industry healthy and strong. I've been a part of the industry now for 36 years and the only thing I wish for is a future that guarantees the industry's survival in meaningful fashion as technology knocks on our doors.
It seems like the theater owners and studios meeting here this week are creating new synergies and symbiotic relationships as the digital clock ticks faster and faster. The optimism is abundant despite a bad year at the box office. They see some light coming into their futures other than the light from the projector bulbs in those dark theaters.
I'd love to see the same type of synergies created by the labels, both major and independents with retailers, both brick-and-mortar and online, and with technology partners. Imagine the possibilities.
-----------------------
SPECIAL NOTE: One of the greatest gifts of working in this industry has been the privilege to meet with and work with so many talented professionals on both the radio and records side.
One of the best people I ever met was a young music director, Mike Lyons, at WORJ-FM in Orlando back in the early 1970's when I was Capitol Records Florida Promotion Manager. (Ooops, seriously dating both of us here!) WORJ-FM was one of the country's best AOR stations back then, and both Mike and his program director Lee Arnold, broke a lot of records for a lot of people.
I left Florida for the "left coast" and the Capitol Tower in 1976, but I always kept in touch with those friends I made at radio and still do to this day.
Today Mike is a Contributing Editor/Columnist at www.triplearadio.com where he shares his passions, and his weekly column The Forest is one of the most enjoyable pop culture reads online.
Starting next Monday (3/20), Mike will feature an interview he did with me recently about the state of the business and share some nostalgia about the "good old days" for two weeks in The Forest section at TripleARadio.com.
A First Look At Blu-Ray
Want to get a sneak-peek at what's ahead in the world of video-disc technology and why Blu-Ray technology is so incredible?
Read more about it by clicking here.
Netflix Meets Used-CD Store As 'La La' Nears Launch
Not many start-up businesses have been inspired by a rock band, but Fountains of Wayne is indirectly responsible for a newly launched music discovery and trading community called La La. Company co-founder Bill Nguyen has been friends with the band since before the group's "Stacy's Mom" was a hit. They often commiserated over how online and physical retailers offer such a limited selection and how hard it is to discover new music.
Nguyen already had considerable success creating technology-based companies, so he harnessed his experience to start La La. Then he raised $9 million in first-round funding from Ignition Partners, Bain Capital and other investors.
"Music should be a communal social experience, but in today's world 40 percent of music is purchased at places like Best Buy," Nguyen said.
At first glance, LaLa.com looks like just a trading post. The service matches members' "have" and "want" lists to facilitate exchanges for a $1 fee plus 49 cents for the prepaid shipping envelope. Members must sell an album to buy one.
Read more about it by clicking here.
Internet Brings Word-of-Mouth To Whole New Level
The elusive quality of "buzz" is one of the most sought-after in the music industry, though few insiders have ever perfected the formula for garnering it. Simply put, buzz means a lot of people are talking about a band -- and supporting it commercially by buying its albums and selling out its concerts. But how does this excitement begin in the first place? Read about how the Internet is now helping play a bigger part in breaking new bands by clicking the link below.
Read more about it by clicking here.
March Madness For Sale On iTunes
Apple Computer is offering iTunes Music Store customers a chance to buy a piece of March Madness.
As part of its continued expansion into video, Awill offer condensed versions of the 63 Division 1 men's NCAA basketball games, it said Tuesday. The games will go on sale a day after they take place for $1.99 apiece, or $19.99 for a "season pass" to all the series.
Read more about it by clicking here.
Radio Starts Year Big
Based on the RAB Radio Revenue Index of more than 150 markets radio jumpstarts 2006 with a 6% increase in national ad sales figures for January compared to the same month from 2005. Local Radio revenue slumped a bit, inching down 1% this January compared to last January. The biggest gain for the medium came in Non-Spot Revenue, which shot up 10% this January over January 2005.
Read more about it by clicking here.
How High-Res Movie Discs Can Save The Concept of a Record Album
Ultimately, the music industry needs to learn to create music videos in HD that are paired with the entire album, much like Pink Floyd did with the feature film release of "The Wall." Instead of blowing $6,000,000 on some bling-bling Jenny-From-Around-The-Block music video, hire a real director and have him or her work with the artist to use the new HD audio and video technologies to inspire the art of making music. Something has to inspire today's artists, as the yearly sales of music shrivels away from a historic high of over 30 billion dollars annually to a reported 11 billion in sales this year. The tools are out there.
Read more about it by clicking here.
Class Action Giant Sues Labels
One of the biggest names in class-action lawsuits has filed a complaint in federal court accusing major music labels of fixing prices for Internet music downloads and CDs, the court reported Thursday. San Diego lawyer William Lerach's suit says that Sony, BMG, Universal Music, Time Warner, Bertelsmann, and EMI fought together to keep the online music market from emerging, and then "conspired to fix and maintain" music prices once services like Apple's highly successful iTunes became inevitable.
Lerach's firm filed the suit on behalf of 11 plaintiffs who purchased music online or on CDs, and on behalf anyone who has "paid inflated prices" for music.
Read more about it by clicking here.
Digital Tops Bill At Theater Owners' Confab
As the movie theater industry's annual convention kicked off Monday in Las Vegas, the conversion to digital cinema is again on the agenda. But this year, instead of more talk about digital's promising future, there actually will be an opportunity to assess its practical, real-world applications at ShoWest.
With technical specifications in hand, business models under development, studios coming aboard and theater circuits making plans, 2006 is shaping up as the year digital cinema finally is ready for its close-up. Just don't expect the rollout to take place overnight.
Read more about it by clicking here.
HALL OF FAME NEWS
The Sex Pistols refused to attend their own induction into the Rock and Roll Hall of Fame Monday night, while Black Sabbath attended but refused to perform. Blondie, Miles Davis and Lynyrd Skynyrd were also inducted.
MORE IDOL TV
The TV Guide Channel launching 'Idol Tonight,' an hour-long live preshow before each 'American Idol' telecast on Fox, giving a behind-the-scenes glimpse at the hit talent show.
KILLERS WANT TO KILL LAWSUIT
The Killers asking a federal judge to toss a $16 million breach of contract lawsuit filed against them by the band's former manager.
ON THE ROAD
Blondie hitting the road with the New Cars, a retooled lineup of the seminal New Wave band, in VH1 Classic's Road Rage Tour 2006, kicking off in Robinson, Missouri on May 12.
WEST GOES CELLULOID
Kanye West executive producing and appearing in an as-yet untitled feature film from New Line Cinema inspired by his music, reps for the rapper and studio confirm.
JACKO PAYS THEM THEN CLOSES NEVERLAND
According to Fox News Michael Jackson has shut down his Neverland Ranch for good. Employees were summoned to the ranch this afternoon in staggered groups, given back pay for 12 weeks through today, and were told the ranch had been shut down by the California Department of Labor. Some of the employees of Neverland had been there with Jackson since he bought the place in the late 80s.
LOLLAPALOOZA MIXES IT UP
Kanye West, the Red Hot Chili Peppers and Wilco headlining Lollapalooza 2006 in Chicago's Grant Park Aug. 4-6.
KUDOS
Carrie Underwood and Brooks & Dunn receiving three nominations apiece for the CMT Music Awards, which will be presented April 10.
INVISIBLE DIVORCE
Phil Collins and wife Orianne announcing their separation in a joint statement Wednesday. The couple, who have two children together, said they have been living apart since the beginning of the year.
COMING SOON!
- Prince, 3121 (3/14)
- Tim McGraw, Greatest Hits Vol. 2 (3/28)
- Yeah Yeah Yeahs, Show Your Bones (3/28)
- Morrissey, Ringleader of the Tormentors (4/4)
- Drive By Truckers, A Blessing and a Curse (4/11)
2006 Industry Conferences
Date Name Location Digital Hollywood Spring March 28-30, 2006 Santa Monica, CA 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
" People in Utah are very upset with HBO because of the show that follows "The Sopranos" called "Big Love." It's about a man in Utah who has three families and seven kids with three different wives. Didn't that used to be called the NBA? How many watched last night? Pretty shocking episode. Tony Soprano got shot by junior. If you think about it, the Soprano's are a lot like the Bush administration. There are wire taps, people going to jail, and the second in command accidentally shoots his best friend."
-- Jay Leno"I have to meet someone who loves children and who loves ex-husbands and implants."
-- Pam Anderson in Us, on what she's looking for in a man. Pam might have to start singing "Two Out Of Three Ain't Bad."
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'
THIS WOULD BE A DREAM COME TRUE FOR SOME GUYS: OSLO, Norway -- It almost seemed like a miracle to Haldis Gundersen when she turned on her kitchen faucet and found the water had turned into beer. By an improbable feat of clumsy plumbing, someone at the bar in Kristiandsund, in western Norway, had accidentally hooked the beer hoses to the water pipes for Gundersen's apartment.
"We had settled down for a cozy Saturday evening, had a nice dinner, and I was just going to clean up a little," Gundersen, 50, said Monday. "I turned on the kitchen faucet and beer came out."
Gundersen said the beer was flat and not tempting, even in a country where a half-pint can cost about $3.75 in grocery stores. Per Egil Myrvang of the local beer distributor said he instructed bartenders by telephone how to reconnect the pipes.
"The water and beer pipes do touch each other, but you have to be really creative to connect them together," he said. Gundersen joked about having the pub send up free brew for her next party.
-
-