-
Grokster Shuts Down...So What?
November 11, 2005
Have an opinion? Add your comment below. -
"The headlines really are the win here: 'Here's another rogue P2P player that's found its judgment day.' Practically speaking, I don't expect it to have an impact on the larger P2P phenomenon."
-- BigChampagne's Eric Garland, in the Washington PostI'm glad Mr. Garland spoke the truth in regards to Grokster shutting down this week.
If only RIAA head Mitch Bainwol could so the same. In the same article he said, "We can't jam the genie entirely back in the bottle, but we can get to a point where the legal services will dominate." Well, that's certainly what all in the industry will hope will happen, but again, here's Microsoft's CEO Steve Ballmer on this topic: " Most people still steal music," he said. "We can build the technology, but there are still ways for people to steal music."
And in the very same article in the Washington Post, Eric Garland said the Grokster settlement is equivalent to benching "a ball boy," because Grokster's technology is basically out-dated and has already been surpassed with newer and more advanced services. (eDonkey, BitTorrent, etc.)
If you're a regular reader of this newsletter then you know I've repeatedly questioned the RIAA's effectiveness in serving the industry that supports it. It's time (again) for Mr. Bainwol and his RIAA co-workers to (no pun intended here) "get with the program."
The fact is P2P file-sharing has not decreased one iota since Grokster and other sites have shut down. The fact is: file-sharing will NEVER disappear from the technological landscape despite any and all efforts the RIAA and major labels. (Again, if anyone doubts this, I suggest they speak to some tech people in Silicon Valley as I've done and still do regularly) In fact, Grokster shutting down has only caused more people to create more "darknets" (hidden P2P sites that exist under Internet radar) and to navigate to other less known P2P sites.
Once the RIAA accepts that fact (I know it's a hard pill to swallow, but denial is worse), it can go about REALLY setting a course for future industry growth and opportunities. ( Note to Mr. Bainwol: The legal bills from the monthly lawsuits you file against 700+ people each month for downloading songs illegally must be pretty high. Wouldn't that money be better spent in finding real solutions for future industry opportunities? )
While Grokster shut down, this week a well-respected industry legend, Jac Holzman (who founded Elektra Records four decades ago) decided to create the first all-digital music label operated by a major record company, the Warner Music Group. (See article below 'Opening The Door On A CD-less Label') Mr. Holzman has seen the future...and his vision for a new success model is encouraging and bold.
"Independent record making is a process and a point of view and a flexibility," Mr. Holzman said, noting that he and his partners have already agreed to sign bands just hours after hearing them. "There's a nimbleness that larger companies, where decision mechanisms have become cumbersome, have lost." Amen.
So while the RIAA fiddles about Grokster and others shutting down, Mr. Holzman is actually doing SOMETHING. Are you getting this, Mr. Bainwol? Why can't the RIAA have such vision?
Grokster is gone and the lawsuits continue. And year-to-date sales total 467.2 million albums. That's 49.4 million less than last year at this time, for a 9.6 % deficit.
Opening The Door On a CD-less Music Label
Forty years ago Jac Holzman left a deep mark on popular music with the release of The Doors' first album on his independent Elektra music label. Today he wants to do the same with Cordless Recordings. Holzman's Cordless label is the first all-digital music label operated by a major record company, the Warner Music Group, launching Thursday on the Web and on digital music services such as iTunes and RealNetworks' Rhapsody.
Music from the label's first six bands is being sold only online for now, in three-song "clusters" instead of full albums. Instead of big tours, the bands will be promoted on blogs and sites like MySpace.
Read more about it by clicking here.
Satellite Radio Channels Hit Weekly Charts
Rival satellite radio providers XM and Sirius announced Wednesday morning they would expand their pacts with Billboard's Radio Monitor publication, which tracks U.S. radio airplay for songs.
Read more about it by clicking here.
Last Waltz For Grokster
File-swapping company Grokster has agreed to stop distributing its peer-to-peer software, following a $50 million legal settlement announced Monday with Hollywood studios and record labels.
Read more about it by clicking here.
The Beat Goes On - Satellite and Internet Radio Are Helping to Save Niche Genres of Music
Newsweek's Malcolm Beith covers how satellite and internet radio allow niche music genres to reach affluent audiences without major label involvement.
Read more about it by clicking here.
MATERIAL GIRL ABOUT TO WHIRL?: Madonna may launch a tour in support of her new album, Confessions on a Dance Floor, which hits stores Nov. 15. The first single, "Hung Up," is heating up the charts and was also featured in episodes of CSI: Miami and CSI: NY this week.
ASK HIM IF HE CARES: Howard Stern receiving a one-day suspension from his morning radio show after he spent much of Monday promoting his move to Sirius Satellite Radio next year. He's due back on air Wednesday.
ZEPPELIN STILL FLYING IN SWEDEN: Led Zeppelin and Russian conductor Valery Gergiev receiving the annual Polar Music Prize from the Royal Swedish Academy of Music for their contributions to music. King Carl XVI of Sweden will bestow the award of 1 million Swedish kronor at a gala ceremony May 22 in Stockholm.
LENNON CATALOG GOES DIGITAL. Yoko Ono announced this week that John Lennon's entire solo catalog will be available for exclusive digital access (starting with the new greatest hits album, Working Class Hero) to purchase in download form. In December, the entire Lennon solo catalog will then be made available digitally as well on a variety of digital music services. (But not available on iTunes for now, due to the Beatles' Apple vs. Jobs' Apple lawsuit.)
GROUND CONTROL TO MAJOR TOM: Former Beatle Paul McCartney is planning to broadcast live into space from a U.S. concert to two astronauts circling the globe. He will play "Good Day Sunshine" and one of his latest songs, "English Tea," to NASA astronaut Bill McArthur and Russian cosmonaut Valery Tokarev, who are on an international space station 220 miles above Earth. McCartney, who will be singing into space Saturday from Anaheim, Calif., via NASA television, got the idea when he discovered that the crew of the Shuttle Discovery were treated to a burst of "Good Day Sunshine" in August as a wake-up call from Mission Control.
YALE MUSIC SCHOOL NOW FREE: NEW HAVEN, Conn. - Yale University's School of Music is doing away with tuition after receiving a $100 million donation. Acting Dean Thomas C. Duffy said Wednesday the university will stop charging students next year. Duffy said the donors want to remain anonymous. Duffy said the donation will also allow the school to buy technology to host clinics and workshops with people around the world. Tuition this year at the Yale School of Music is $23,750.
TOOK THE MONEY & RAN? Singer k.d. lang filing a lawsuit against her former business manager, alleging he scammed thousands, and possibly millions, of dollars in excessive fees from her account.
KARAOKE BEEN BERRY BEERY BAD TO BERRY: Rock legend Chuck Berry suing three leading karaoke music distributors for allegedly failing to obtain a license and to pay royalties on sing-along versions of his most popular tunes, including "Johnny B. Goode."
NEVERLAND NO MORE: Michael Jackson's father, Joe Jackson, telling the Associated Press that the singer will visit the United States again after his acquittal on child molestation charges, but will never make it his home. The elder Jackson also expressed hope for a possible Jackson 5 reunion.
BRITNEY SPARED: A U.S. District Court judge dismissing an Indiana songwriter's copyright infringement claim filed against Britney Spears over the tune "Sometimes." The singer's attorney emphasized the suit was tossed and money never switched hands. Meanwhile, according to MTV, Spears planning to release B in the Mix: The Remixes, a remix album that will feature the new tune "And Then We Kiss," on Nov. 22.
PARTS OF CARS BACK ON THE ROAD?: Heavy rumors flying around this week that the Cars will tour again next year. However, lead singer/songwriter Ric Ocasek is NOT supposed to be part of the reunion. How this makes for a real Cars reunion tour is beyond me, but it's also rumored that Todd Rundgren will be taking on the Ocasek duties. OK, so it will be new Cars, not old Cars. Stay tuned.
COMING SOON!
- Madonna, Confessions on a Dance Floor (11/15)
- Bruce Springsteen, Born to Run: 30th Anniversary Three-Disc Set (11/15)
- Carrie Underwood, Some Hearts (11/15)
- Original Soundtrack, Harry Potter & The Goblet of Fire (11/15)
- Big & Rich, Comin' to Your City (11/15)
2005 Industry Conferences
Date Name Location Portable Media Expo November 11-12, 2005 Ontario, CA 2005 Digital Entertainment & Media Expo (DEMXPO) November 30th, December 1st Los Angeles, CA International CES January 5-8, 2006 Las Vegas. NV
Quotes of the week
"As you may have heard, Regis Philbin and Donald Trump have recorded a CD full of Christmas music. It's doing very well overseas. The police in Paris are using it to disperse rioters."
-- David Letterman"Did you all see that cruise ship on the news that was attacked by pirates? Wasn't that something? They fired a cannon at it, they fired machine guns at it ... look, I know Kathie Lee is annoying but that seems a little harsh. "
-- Jay Leno"There are plans for a new five star hotel in Baghdad. Unlike most five star hotels all the rooms in this one will be smoking."
-- Conan O'Brien
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.
This week I had the pleasure of attending NARIP's program, "Music Business Opportunities in Vegas: The New Hollywood" It was a great evening of intimate conversation with record industry luminaries JERRY and BOB GREENBERG who discussed their careers, how to harness opportunity and their decision to bring a piece of Hollywood rock 'n roll history to Vegas.
Both Jerry and Bob want to be pro-active in helping establish Las Vegas a recording hub and as great breeding ground for new artists. With the success of their Las Vegas RAINBOW BAR & GRILL already established, Las Vegas should be thrilled they are here.
If you're coming to Las Vegas, put the RAINBOW on your "must do" list.
The B-Side - 'Blips'
IT'S A LOT BETTER NAME THAN 'VINO FINO': In the Michael Jackson case, one of the phrases that will have a life long after the trial ends will be "Jesus Juice" -- the name Jackson's accusers say he had for wine that he allegedly served his young guests. Now, a Los Angeles couple is trying to market a wine called "Jesus Juice" and the label has a Jackson-like figure who appears to be impaled. The couple filed to get a trademark for the name in January of last year. The application is still pending -- as is a plan to get the wine to market.
ANOTHER REASON PUBLIC SCHOOLS MIGHT BE IN TROUBLE: RIVERSIDE, Calif. -- The winner of a school board election didn't campaign, attend forums or even go to any school board meetings before the vote -- because he was in jail. Randy Logan Hale won 831 votes in Tuesday's election, securing one of three open seats on the Romoland School District Board in a community about 70 miles north of San Diego. "This is wild, he'll be glad," said his wife, Penny. Hale, 40, was returned to prison in September for violating his parole on 1998 convictions for spousal abuse and drug possession, the California Institution for Men in Chino said, and is due to be released Feb. 15. He declared his candidacy in August. His wife and a district trustee confirmed he was imprisoned. The election of an inmate to the school board is a conundrum for the district, and Superintendent Roland Skumawitz said he's consulting lawyers to figure out how to handle the situation.
-
-