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Though Apple Shines, Wall Street Whines...And RIAA...
October 14, 2005
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While Sony/BMG Chief Andy Lack was singing "Should I Stay Or I Should I Go" to himself this week, there was a "whole lotta' shakin' goin' on" in the business this week.
To start things off, Apple unveiled its video iPods (see story below 'Apple and Disney Herald New Media Era' ) and announced that it quadrupled earnings in the fourth quarter of the company's fiscal year (which ended September 24). Income rose to $430 million, or 50 cents a share, compared with $106 million, or 13 cents a share, in the year-ago quarter, exceeding analysts' expectations.
But that wasn't good enough for Wall Street. Apple's revenue of $3.68 billion, a 57% increase from a year ago, fell short of expectations, which analysts' in had forecasted at in the $3.73 billion range. Though Apple shipped another six million plus iPods (more than three times what they shipped for the same period last year), that too fell just short of what the investor gurus had predicted.
Of course if one was to view Apple's performance objectively, without all the emotions and fever surrounding the company's ongoing growth in iPods and iTunes sales, one would have to say "Damn ... this was a pretty good year." But alas, those Wall Street guys were disappointed, so the stock took a slight hit. Amazing. I bet that every head of every major label (any company for that matter) would kill to announce the same kind of financial results.
I don't know who it was that said originally, "Nevermind Wall Street. If you want to see what's really going on, look at Main Street." My dad used to tell me that time and time again. And when it comes to seeing what's happening out here in the rest of America, I've realized that's always been true. Apple's been going on out here BIG time now for some time. If the Wall Street analysts are disappointed, to hell with them. The digital revolution started way before they saw it coming (although the same gurus hyped the public with the pyramid-dotcom bubble) and too many of those same analysts missed the boat on too many tech companies that are now blue chips.
And while Apple was busy unveiling its newest iPods, declaring record earnings, and talking about iTunes passing the half-billion mark in songs sold, the RIAA and MPAA (Motion Picture Association of America) raided multiple CD/DVD replication plants in locations in California and Texas, seizing as many as 500,000 CDs, one million CD inserts, and thousands of DVDs.
In May of this year I wrote in the newsletter: "Not all the industry's ills at retail can be blamed on illegal downloading, P2P file-sharing, and people burning copies of CDs. The fact is counterfeit piracy is running rampant and it's hurting all music and entertainment companies in every corner of the world."
I've always believed the RIAA's efforts to combat piracy would benefit the industry a whole lot more than the monthly lawsuits filed against downloaders. Those lawsuits do nothing to stop P2P file-sharing and will only serve to drive it further underground. (See the article below 'Darkets:P2P By Invite only')
And for those of you who keep track (and keep asking me in emails to keep putting this info here): for the year album sales are at 425.7 million units or 10.2% (48.3 million) fewer than last year at this time.
Darknets: P2P By Invite Only
By Tim Gnatek, The New York Times, Published: October 7, 2005Despite all the openness of the Internet, there are still places you cannot saunter into on the Web. You must be invited.
These are "darknets": exclusive peer-to-peer networks in which membership is based on circles of trust, whose activities are veiled from the general public. And though people who are adept at configuring servers and comfortable with File Transfer Protocol have used such systems for years, a spate of new online services aimed at everyday users is sure to draw new attention to under-the-radar file sharing.
Read more about it by clicking here.
Apple Posts Record Revenues for Third Quarter 2005; iTunes Sells 500 Million Songs
Apple Computer Inc. announced its best revenue and earnings in its history with the release of its third quarter results for the period ended June 25th. The company posted net income of $320 million and revenue of $3.52 billion (all figures U.S. dollars), representing revenue growth of 75 percent and net profit growth of 425 percent compared to last year's quarter.
Read more about it by clicking here.
Reality Shows Hit Hard Times
Ratings down for many programsLOS ANGELES, California (Hollywood Reporter) -- The big chill that blew through reality TV this summer is starting to look like a deep freeze.
Read more about it by clicking here.
Apple and Disney Herald New Media Era
Walt Disney and Apple Computer are to sell episodes of Desperate Housewives and other television shows over an iPod device capable of playing video. The companies made the announcement on Wednesday at an unveiling of the video iPod in Silicon Valley. The device, to go on sale next week, features a 2½ inch color screen and can hold up to 150 hours of video as well as music and photos.
Read more about it by clicking here.
BOY GEORGE IS NOT THE NAME YOU WANT TO HAVE IF YOU DO HAVE TO GO TO PRISON
After calling 911 to report a burglary last week, Boy George was arrested for drug possession when the police found cocaine in his apartment. A lawyer for Boy George denied that the drugs belonged to the singer and that George has no idea how 13 bags of cocaine wound up in his apartment. The singer could face up to 15 years in prison if convicted of drug possession.
LIL' KIM DOES NOT WANT 50 CENT
Lil' Kim telling reporters lat week she will not work with 50 Cent again, despite the success of their 2003 hit 'Magic Stick.' Lil' Kim, who is currently in prison for perjury, called his music "hardcore" and "violent." (Editor's note: Maybe Lil' Kim should think about this again after she's out of prison. Two ex-jailbirds doing some hip-hop stuff ... sounds like platinum )
DIAMOND DAVE IT IS ON THE EAST COAST
Ending months of rumors and speculation, it was announced this week that David Lee Roth will take over for Howard Stern in East Coast markets when Stern skips to satellite radio, while Adam Carolla will take over in West Coast
ROD THE MOD GETS HIS STAR
Rod Stewart set to receive a star on Hollywood's Walk of Fame Tuesday, one week before the release of his latest album, 'Thanks for the Memory ... Great American Songbook IV.'
EMINEM HITS
Eminem releasing a greatest hits album Dec. 6. (Editor's note: After all, he's had such a long string of hits. Can you name ten of them? Five? Remember when you knew EVERY song on a Greatest Hits album? ) The album, 'Curtain Call' will include at least two new songs.
SO COLD
Coldplay named Best Act in the World at Britain's Q Awards while Oasis snagged Best Album for Don't Believe the Truth and Led Zeppelin guitarist Jimmy Page was honored with the Icon Award.
WELL, MAYBE THIS IS THEIR NEW DEMOGRAPHICS?
The Rolling Stones debuting their video for "Streets of Love" on NBC's Days of Our Lives next Tuesday. The song will also be used as the soundtrack for some scenes in the soap opera in weeks to come.
IS ANYBODY REALLY GOING TO MISS THIS SHOW?
US WEEKLY reports that Fox TV has canceled upcoming season of The Simple Life due to Paris Hilton and Nicole Richie's "refusal to end their public feud."
WHAT COULD IT POSSIBLY SMELL LIKE?
Marilyn Manson telling Women's Wear Daily he is in talks with a "major" cosmetics company to launch his own fragrance early next year.
HOW TO EXTEND YOUR SHELF-LIFE
Mariah Carey reissuing The Emancipation of Mimi this fall with four new tracks, including her new single "Don't Forget About Us." The new version of the disc is due in stores Nov. 15.
SPECTOR SPECULATION?
Phil Spector's attorney filing a defense brief in his murder case claiming the legendary music producer was suffering from withdrawal symptoms from seven prescription drugs when he told police that he shot and killed actress Lana Clarkson at his mansion in 2003.
THE PIANO MAN IN A BOX
On Dec. 6, Billy Joel planning to release My Lives, a five-disc box set containing 23 never-before-heard tunes, as well as a live show from Frankfurt during his River of Dreams tour.
THE CONCERT FOR BANGLADESH REDUX
October 25th is the date that EMI will release an expanded two-CD edition of George Harrison's 1971 Concert For Bangladesh, the first concert that put rock superstars together for a good cause. The same day Rhino will release an expanded DVD of the concert as well. The new CDs feature a previously-unreleased performance of "Love Minus Zero/No Limit" by Bob Dylan. All artist royalties from sales of the CD will continue to go to UNICEF.
This week's releases
- Ashlee Simpson, I Am Me (10/18)
- Depeche Mode, Playing the Angel (10/18)
- Rod Stewart, Thanks for the Memory ... Great American Songbook IV (10/18)
- Stevie Wonder, A Time to Love (10/18)
- Melissa Etheridge, Greatest Hits: The Road Less Traveled (10/18)
2005 Industry Conferences
Date Name Location October 3-5 2005 Computer Disc Jockey Summit/Convention & Expo Tampa Bay, FL November 11-12, 2005 Portable Media Expo Ontario, CA 2005 Digital Entertainment & Media Expo (DEMXPO) November 30th, December 1st, Los Angeles, CA January 5-8 International CES Las Vegas, NV
Quotes of the week
"The FBI announced a new policy this week ... they will not hire you if you smoked pot more than 15 times in your life. Here's my question, who picked the number 15? After a guy has smoked dope 8, 10, or 13 times it's pretty obvious that he likes it. Are there a lot of stoners going, 'Oh man, this is my 14th joint. No more for me dude. I'm joining the FBI.'"
-- Jay Leno
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.
Date Name Location October 17 Business Plan Development Part I w/Harry Redinger Los Angeles October 24 Business Plan Development Part II w/Harry Redinger Los Angeles November 5 NARIP Workshop - Independent Distribution Solution w/Clay Pasternak Los Angeles
The B-Side - 'Blips'
NOR RAIN, NOR SLEET, NOR SNOW SHALL STOP THE MAIL: ANAMOSA, Iowa -- Evelyn Greenawald of Iowa has just learned how slow "snail mail" can be. Last week she mysteriously received a postcard from her daughter in Germany, 27 years after it was mailed. At the time, her daughter, Sheri, was beginning her opera career in Germany. She sent a postcard telling her mother how she fell in love with Europe and that she would be in Paris soon. Greenawald, now 97 years old, finally received the postcard on Wednesday after it was forwarded to her care center in Iowa. The card had aged significantly and even a magnifying glass couldn't bring the exact date into focus, but it was somewhere between 1975 and 1978.
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