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Back To The Future
December 9, 2005
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"There was always music, and music being bought before radio and television, so I assume it will survive the Internet as well ... In every civilization ever found, a smile, frown, grimace, etc., means exactly the same as it does in all the other civilizations, and there is no civilization without some form of music. Interesting, huh? " - Legendary songwriter Jeff Barry.
While some of the top brass in the music industry are still debating whether they can somehow find a convincing argument to raise Apple's ninety-nine cents pricing of songs at iTunes (and elsewhere), I suggest they first look no further than their own rosters and examine the artists and the quality of albums they're asking the consumers to pay $15-$18 for at retail.
They actually need only look at the repeat retail success of the 'Now That's What I Call Music' CDs (or as I've called them before, 'musical lemonade' made from lots of lemons, i.e, CDs that only contain one or two good songs at best).
These 'Now' collections sell millions because they are nothing more than the good songs culled from CDs that (for the most part) were NOT worth the retail price in today's disposable income entertainment marketplace. In other words, the 'Now' collections are a reflection of what's going on online at iTunes and elsewhere. Consumers are just buying the same songs (or types of songs) they buy online, and they save money by doing so.
One reader e-mailed me recently and asked why I was "such a big Steve Jobs fan" ? I answered that e-mail by saying the following: " It's not that I am such a 'Steve Jobs fan' as much as I'm a fan of ANYBODY who utilizes technology at hand to advance the SALES of music online and keep consumers in the habit of BUYING." As I've said in the newsletter many times, Apple's iTunes has done that whether music industry executives want to give Mr. Jobs credit or not.
The recent SONY BMG rootkit fiasco is evidence of how NOT to utilize technology at hand. It appears that problem might still not be fixed because this week Sony announced a new risk had been found with a batch of 27 of its compact discs, which automatically install antipiracy software on hard drives when put into a computer's disc drive. Princeton computer science professor Ed Felten wrote in his blog on Wednesday (Click Here) that the patch itself could open computers to attack by hackers.
While the major labels spend time trying to implement technology to prevent CD copying and the RIAA continues to sue people with delusional thinking that the lawsuits will someday stop P2P downloading, business was off 12.9%, or 2.3 million, compared to the same week of 2004. The weekly total of 15.5 million pieces brings the year-to-date tally to 524.9 million, exactly 10% below last year.
It's time for all the music industry leaders (and the RIAA) to get back to the future and think about ways to embrace the technology at hand to create new consumers and increase consumer retention. As one reader said to me in another e-mail this week: "WalMart won't sue you if you don't shop with them. Let's not sue our customers if they don't shop with us. Let's give them more incentive to buy what we have to offer."
Broadcast Giants Join Forces On HD Radio
A group of major broadcast radio networks said Tuesday that they created a coalition that will allow them to jointly market new digital radio services. The networks also said they will collaborate closely as they divide up programming formats.
The big radio companies are the midst of a technology transformation -- similar to what's happening in the television industry with HDTV -- as they begin to broadcast in a new format called HD Radio. The radio industry is looking to the new digital format as the answer to satellite radio's growing popularity, and as a way to lure consumers away from
portable music devices such as Apple Computer's iPod.
Read more about it by clicking here.
Advertisers See Static In Radio's Future
The radio industry could find itself at the kids' table in the media banquet hall, as new technology threatens the business, advertising executives said this week at the Reuters Media and Advertising Summit. Satellite radio, digital music players and the Internet are slowly encroaching on traditional radio's stronghold on local entertainment and advertising. Plus, radio ads themselves are less memorable and creative, these executives said.
"Radio is at the center of a perfect storm of technological threats," said David Verklin, chief executive of media buying agency Carat Americas. "It has to reinvent itself."
Read more about it by clicking here.
The MySpace Generation
They live online. They buy online. They play online. Their power is growing
Business Week magazine takes a look at the growing and powerful online destination, myspace.com:
Read more about it by clicking here.
Future Is Digital For Music Sector
EMI chairman Eric Nicoli said Tuesday that the music industry in the coming years could return to single-digit percentage growth after a slump in recent years. Speaking at the UBS Global Media Conference, he touted the growth opportunities of digital music despite some recent Wall Street doubts and once again shrugged off merger talks.
Nicoli said that it is "very possible" that the sector will see a return to single-digit gains during the next three to four years as the recorded-music business recovers and digital continues to explode. Recorded-music margins could return to their record levels in the 15% region in about five years or so thanks to digital gains, he added.
Read more about it by clicking here.
DVD Sales Likely Nearing Global Peak
Movie sales on DVD are likely nearing their peak worldwide as more people look to computer downloads and video-on-demand to watch their favorite programming, according to a report released on Wednesday.
"The PC industry is champing at the bit to provide downloaded movies that might compete with DVD sales, and pay-TV services want to add movies to their video-on-demand services, to their new disk-drive-equipped set-top boxes, and to their emerging high-definition TV services," said Gerry Kaufhold, an In-Stat analyst and author of the report.
Read more about it by clicking here.
IT'S A GOOD THING SHE DIDN'T WIN
Julia DeMato, a top 10 contestant on season two of American Idol, arrested for possession of narcotics, marijuana and drug paraphernalia, and for drunk driving.
IT'S ONLY ROCK'N'ROLL, BUT IT WILL COST YOU
Amy Lee of Evanescence slapped with a $10 million breach-of-contract suit by her former management company, whom she fired last week, per the New York Daily News.
MORE VIDEO TO IPODS
NBC Universal announcing deal with Apple that will make programs from the NBC broadcast network, USA Network, Sci-Fi Channel and other outlets available for download and viewing on iPod devices via Apple's iTunes Music Store.
STEVIE DOES SUPERBOWL PRE-GAME SHOW
While the Rolling Stones will headline the NFL's Super Bowl Halftime Show, Stevie Wonder tapped to perform during the pre-game show at Detroit's Ford Field on Feb. 5.
DIDDY DOES GOOD
Sean "Diddy" Combs paying a surprise visit to teenage cancer patient Chalon Keen at Saturday's Chris Evert's charity tennis tournament on behalf of the Make-A-Wish Foundation.
BILLBOARD WINNERS
Green Day and 50 Cent each taking home six awards Tuesday at the 2005 Billboard Music Awards. Green Day winning Rock Artist of the Year and Rock Song of the Year and 50 Cent nabbing Artist of the Year and Album of the Year for Massacre. Mariah Carey, who was nominated in seven categories, winning five Billboard awards, while Shakira and Carrie Underwood took home three apiece.
GRAMMY NEWS
Mariah Carey tying John Legend and Kanye West with eight Grammy nods apiece as the 2006 Grammy Award nominations. Stevie Wonder, 50 Cent, Beyonce and Will.i.am each earned six nominations. 'Album of The Year' nominees are: Emancipation of Mimi, Mariah Carey; How To Dismantle an Atomic Bomb, U2; Late Registration, Kanye West; Love Angel Music Baby, Gwen Stefani; Chaos and Creation in the Backyard, Paul McCartney. 'Record of The Year' nominees are: "We Belong Together," Mariah Carey; "Feel Good, Inc.," Gorillaz, featuring De La Soul; "Gold Digger," Kanye West; "Boulevard of Broken Dreams," Green Day; and "Hollaback Girl," Gwen Stefani. The 48th Annual Grammy Awards will air live on CBS from Los Angeles on Feb. 8.
PEACE PIPE TIME
Linkin Park and Warner Music Group ironing out their contract differences so the band can go ahead with putting out a new album next year as planned.
COMING SOON!
- Bo Bice, The Real Thing (12/13)
- Daddy Yankee, Barrio Fino en Directo (12/13)
- Beck, Guerolito (12/13)
- Chris Brown, Chris Brown (12/13)
- Original Soundtrack, King Kong (12/13)
2005 Industry Conferences
Date Name Location International CES January 5-8, 2006 Las Vegas. NV Midem January 22-26, 2006 Paris 2006 Media Summit New York February 8-9, 2006 New York Digital Hollywood Spring March 28-30, 2006 Santa Monica, CA MusExpo 2006 April 30-May 3, 2006 Los Angeles, CA
Quotes of the week
"Me and Elvis? Are you kidding? I'm gonna' tell my dad. Maybe that will impress him."
-- Madonna, after being informed she now ties "The King" in having the most Top 10 singles ever - at 36 apiece."There is nothing sweeter than a hit record - with the exception of the check that follows."
-- Eric Kline, Video Producer and CEO, Inside the Music Business
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'
WHEN THEY TOOK HER MUGSHOT, YOU JUST KNOW THEY HAD TO SAY, "SAY CHEESE":
MEMPHIS, Tenn. -- Police in Memphis, Tennessee, say a woman mistook a block of cheese for cocaine -- and tried to hire a hit man to kill four men and steal it. Police say the 18-year-old woman was mistaken about the hit man, too. He was an undercover policeman. She's charged with four counts of attempted murder and four more of soliciting a murder. Authorities say the aspiring model was in the men's house recently when she saw the white, crumbly cheese that she thought was cocaine. Police say the undercover officer posing as a hit man gave her some non-functioning handguns, bought ammunition for her because she was too young, and accompanied her to the home under police surveillance. People in the home gave police permission to search it. They found only the cheese.
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