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Trying To Sort It All Out ... Random Thoughts
March 12, 2010
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"A child of five would understand this. Send someone to fetch me a child of five. "
-- Groucho MarxA lot of news this week, and I'm trying my best to sort through it all and make sense of some of it for you readers.
I think I spent entirely too much time this week trying to figure out what that interpretive dance routine was doing on the Oscars broadcast and it took time away from more important matters at hand. But, I digress.
A new 32-page report from IFPI (The International Federation of the Phonographic Industry) released this week ( http://tinyurl.com/yjblnbt ) states record companies, large and small, invest around $5 billion a year in music talent, to support a global roster of thousands of artists and typically spend $1 million to break successful pop acts in major markets.
The report also states "Recorded music has a massive economic 'ripple effect,' helping generate a broader music sector, including live music, radio, publishing and audio equipment, estimated to be worth $160 billion annually. IFPI estimates that more than two million people are employed globally in this broader music economy."
According to Forrester Research, total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009, from $14.6 billion in 1999. ( Source: http://tinyurl.com/yep75ch )
And then there's this: "The music industry's global sales have fallen 30% over the last five years - even though digital sales grew by 940% in that time, according to the IFPI. It estimates that overall, music sales fell 10% in 2009 to $15.8 billion." (Source: http://tinyurl.com/y9dc26j )
I don't quite know how to break it down exactly, but if the global sales of prerecorded music were $15.8 billion in 2009, out of which $6.3 billion were in the U.S., and record companies do invest $5 billion a year to develop talent, it would seem that record companies are still getting a decent return on their investment, even though the return on their investment is obviously shrinking due to a changing marketplace and shifts in the way consumers listen to, and choose to buy music. (And yes, illegal downloading is factor, but even with millions downloading, there are still multi-Platinum success stories globally.)
In my opinion, the IFPI report is a great looking presentation with some interesting facts. It's got great pictures in it as well. It almost resembles those glossy and colorful annual reports sent to the stockholders of any of any major corporation, and it certainly is pro-big record labels. In the introduction it summarizes the results of their findings and says, "it debunks one big myth - that artists can easily build a sustainable and successful career in music without the help and support of a record label."
Well, sure. But what if the artists are established enough to own their own record label and just uses a major label for distribution? Wouldn't the same hold true? And if not, why not?
I'd also like to know how IFPI came up with the numbers they did. I'm sure there was a lot of research needed to come up with those figures in the billions. But then again, all the data in the world isn't that reliable unless we know how it was collected and put together.
As Einstein said, "Not everything that can be counted counts, and not everything that counts can be counted."
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THE 'A-SIDE' - TRACK 2
THE RIAA IMITATES PINK FLOYD AND FLOATS A PIG ... AND LABELS PAY FOR THIS?
(Thanks to Buzz Brindle at brindlemedia.com for the "heads up" on this one.)
"It's no surprise that RIAA is now employing silly frat-boy stunts, given its well-documented practice of suing college kids to rescue a bankrupt business model. It also seems appropriate for RIAA to use an inflatable pig as its mascot, since its foreign-owned members would be the biggest beneficiaries of performance tax pork. RIAA is losing this issue on Capitol Hill and in the court of public opinion, and today's demonstration represents a new low in a campaign of utter desperation." -- Dennis Wharton, Executive VP at NAB
This week, the RIAA sent some people to the National Association of Broadcasters' headquarters in Washington, D.C. with a blow-up pig (they couldn't even come up with an original idea; they had to cop one from Pink Floyd) to protest the NAB's stance against the Performance Rights Act. The NAB responded by sending them a sausage pizza. With the pizza, Wharton sent this note as well, "We're suggesting they provide this food to the scores of exploited musicians who have had to sue their record label to recoup allegedly unpaid album royalties." Checkmate, NAB.
I'm not going to get into the whole pro- or anti-Performance Tax issue again, except to say what I've said previously. All the artists who have earned a whole lot of money from selling a whole lot of records from a whole lot of radio play should think twice before they try and get what they wish for. Because if the Performance Tax is ever passed, a whole lot of newer artists won't have the same ability to make a whole lot of money from record sales because they will most likely not receive the same whole lot of airplay. But that's my opinion.
Back to the RIAA and their lame-brained stunt. Labels fund the RIAA, and they should demand the costs of the stunt be deducted from the salaries of all those in the association who thought it was a good idea to draw attention to a matter so far removed from the public's consciousness. It accomplished nothing and it allowed the NAB to retaliate with words the public is more likely to side with.
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THE 'A-SIDE' - TRACK 3
ELIO OUT AT EMI ... GEE, WHAT A SURPRISE ... NOT!
Some one once said "Nothing travels faster than light, with the possible exception of bad news, which follows its own rules."
The news about EMI's Elio Leoni-Sceti leaving the company after only 18 months certainly followed that rule. In mere minutes, the news was all over the Internet.
Back when Terra Firma's Guy Hands hired Leoni-Sceti I had this to say: "Guy Hand's hiring of Elio Leoni-Sceti as EMI Music's chief executive officer wasn't a move in the right direction, for starters. I have nothing against Mr. Leoni-Sceti, but: a) he never worked in the music industry before, and: b) he came from a "consumer goods company Reckitt Benckiser, whose products include Dettol, Nurofen and Finish dishwasher powder." (Source: http://tinyurl.com/m5dp5d ) Basically, what Mr. Hands did would be like Proctor & Gamble buying Dreamworks Pictures and making their chief marketing executive the head over Steven Spielberg. Wouldn't make much sense would it? Okay, maybe I'm over simplifying. But you get the picture don't you? And if you do, you can see it's clearly out of focus."
With all the problems going on at EMI, is anyone surprised? Of course not. The EMI news keeps getting worse each week, and the company shouldn't expect that removing Leoni-Sceti will help then turn the ship around.
EMI hit the iceberg awhile ago when Terra Firma came aboard.
Whether they can stay afloat or not without merging with the Warner Music Group (or some other music entity) is questionable at best. Right now, time is of the essence.
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THE 'A-SIDE' - TRACK 4
MTV PREZ MUST NOT HAVE READ THE NEWS ABOUT FACEBOOK HEADING TOWARDS $1 BILLION IN REVENUES
MTV's president Van Toffler admits that although MTV makes extensive use of online social networking tools, it's not likely to acquire them. He says if social networks are free, "it doesn't make sense to spend a lot of money to buy them." MTV, he said at an industry event, is a content company. (Source: http://tinyurl.com/yksouk8 )
With all due respect to Mr. Toffler, I wonder if he made his comments before the news was released last week (as I reported here in the newsletter) that Facebook is headed towards $1 billion in revenues.
Content company or not, $1 billion is a whole lot of change. What media company wouldn't want $1 billion in revenues from such an enterprise?
I guess MTV, in this case.
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THE 'A-SIDE' - TRACK 5
APPLE NOW THE 4TH LARGEST PUBLICLY TRADED COMPANY IN THE U.S.
Apple is approaching a $200 billion valuation, as its stock hit record highs last Friday. Investors seem to believe Apple's iPads will be another success for the company.
To beat Microsoft, Apple needs another $50 billion in change. (Source: http://tinyurl.com/y8em787 )
Innovation. Great products that consumers love. The naysayers still rant about the iPad, but Apple continues to deliver at retail.
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THE 'A-SIDE' - TRACK 6
IF YOU HAVE DISH SATELLITE TV AND THEIR DVR SERVICE, YOU BETTER READ THIS
There is news this week that Dish Network may be forced to disable as many as 8 million of its DVRs (Digital Video Recorders) within a month, after the satellite TV operator lost an appeals court decision last Thursday in its years-long battle with TiVo. Moreover, Dish could even lose the ability to offer a DVR altogether, according to Sanford Bernstein analyst Craig Moffett. The implications of the appeals court ruling for Dish Network "are enormous" -- its ability to continue to offer DVRS.
The U.S. Court of Appeals for the Federal Circuit upheld a lower court's contempt ruling against Dish and EchoStar, under which the companies would pay at least $300 million to TiVo. Following the announcement of the ruling shortly before 12 noon (ET), TiVo's stock price soared more than 50% to around $15.82 per share while Dish shares dropped 6%, to around $20.41 per share.
From the article: "Dish said it plans to appeal the decision with the full Federal Circuit and said DVR subscribers are currently not affected by the court ruling. The operator also said it will propose a new workaround that does not infringe TiVo's "Time Warp" patent."
You can read the rest here: http://tinyurl.com/y9b3yy3
And Now For Some News ...
New Report Says E-Commerce Will Hit $250 Billion By 2014
TechCrunchE-commerce sales in the U.S. will continue growing at a 10% compound annual growth rate through 2014, according to a new five-year forecast from Forrester Research. As a result, online retail sales in the U.S. will be nearly $250 billion by 2014 -- up from $155 billion in 2009.
Last year, online retail sales were up 11%, compared to 2.5% for all retail sales. Bigger picture, by 2014, e-commerce sales will represent 8% of all retail sales in the U.S. by 2014 -- up from 6% in 2009. In 2009, meanwhile, 154 million people in the U.S. bought something online -- 67% of the online population, or 4% more than in 2008. That year, three product categories -- computers, apparel, and consumer electronics -- represented more than 44% of online sales ($67.6 billion).
Read more about it by clicking here.
Pandora: Alive & Kicking
New York TimesThe New York Times profiles Web radio and music recommendation engine Pandora, which is apparently living on borrowed time. "For most of its 10 years, it has been on the verge of death, struggling to find investors and battling record labels over royalties," according to The Times.
Now, investment bankers are getting in line to wine and dine the startup's founder Tim Westergren. What tipped the scales of fortune? A successful iPhone app, according to The Times. Presently, Pandora's 48 million users tune in an average 11.6 hours a month. That's likely to increase significantly if and when the startup strikes deals with carmakers, and TV and stereos manufacturers.
Read more about it by clicking here.
Across The Pond, The Vinyl Story Is Growing As Well
The Sun(Thanks to Portland's well-know DJ, Clarence Duffy, for another "heads up" )
Vinyl Sales are increasing in the UK like they are here in the U.S. and there's no sign of it letting up anytime soon. Along with the vinyl growth, "Cassette sales are up too, after slumping 60% in the 1990s. Vintage blank tapes are selling for over £20 on auction websites.
And Internet search engine Yahoo recently reported a 210% increase in searches for "blank cassette tapes" and a 110% rise in users looking for "music cassette tapes".
Read more about it by clicking here.
Pink Floyd Sues EMI Over Digital Royalties And Wins Pronto
TelegraphUKPink Floyd launched a High Court action against EMI last week in a dispute over the calculation of online royalty payments and marketing of their music online.
I imagine other bands might now follow suit if they find themselves in the same situation that Pink Floyd did.
Read more about it by clicking here.
The Paid Content Thing: Research Group Says Few Would Pay For Hulu
TV NewsCheck/APHulu's days as a free online video site could be ending soon. Comedy Central's decision to pull two of the most popular shows on Hulu -- "The Daily Show" and "The Colbert Report" -- in a dispute over splitting ad revenue is the latest blow. Yet Hulu's most viable alternative -- charging for access to some videos -- could turn off viewers and stop growth. Many viewers are drawn to Hulu because of its ease of use, not because they couldn't get much of the same content elsewhere.
If Hulu charges for a TV show or movie, the viewer could simply watch it over the air live, be more consistent about recording it to view later or catch the program for free through a video-on-demand service offered by cable TV and other providers. "There are very few people who would be willing to pay for it," said Bruce Leichtman, president of the Leichtman Research Group. Chase Carey, COO of Hulu co-owner News Corp., has said that the site would have to start charging for some video eventually, but hasn't said when.
Read more about it by clicking here.
Twitter Majority Mostly Inactive According To New Report
MashableJust 1-in-5 Twitter users are actually "active," according to a new study from security firm Barracuda Labs (using a very generous definition of "active"). The study tracked roughly 19 million Twitter accounts and deemed active, or "True," all those that had at least 10 followers, followed at least 10 people, and had tweeted at least 10 times.
What's more, only 26% of Twitter users had 10 followers or more by December 2009, while only 40% were following 10 people or more. A majority of Twitter users, 51%, were following less than five people. Meanwhile, 34% of Twitter users hadn't sent a single tweet, while a clear majority, 73%, had tweeted less than 10 times.
Read more about it by clicking here.
FOGERTY HONORED:
BMI will honor John Fogerty as a BMI Icon at its 58th annual Pop Awards, slated for May 18TH at the Beverly Wilshire Hotel. The event will also fete the songwriters and publishers of the past year's most-performed pop songs in the U.S., and will climax in an all-star musical tribute to Fogerty.
THE MATERIAL GIRL DOES MATERIAL FOR MACY'S:
Madonna and Iconix Brand Group, Inc. announced its first direct-to-retail license agreement with Macy's for the "Material Girl" collection. "Material Girl" is a junior collection that will launch exclusively in approximately 200 Macy's stores and Macy's online at in August 2010 for the back-to-school season.
MORE DOORS:
The soundtrack to the Doors documentary "When You're Strange," due April 6th, will include Jim Morrison's poetry as read by Johnny Depp, who narrates the film. Rhino will also reissue the band's "Absolutely Live" and "Live in New York" as 180-gram double-album sets on March 16th.
GOING TO ERIN:
Arcade Fire have announced their first live gig this year. They'll headline Dublin's Oxegen Festival, NME reports. Jay-Z, Muse, Broken Social Scene, Vampire Weekend and the Black Eyed Peas are also confirmed for the event, which takes place July 8-11th.
3-D PHISH:
Phish are jumping into the lucrative 3-D game with an upcoming movie that'll have fans strapping on paper glasses. A new Website, Phish3Dmovie has launched, but the band isn't offering up any concrete details yet. Rumor has it the movie will feature footage from last year's Festival 8.
ADD IT TO HIS 'RAP SHEET' DEPT:
D'Angelo has been arrested for solicitation, the New York Post reports. The R&B singer reportedly offered an undercover policewoman $40 for oral sex in New York's West Village at 2:30 a.m. Saturday night and was arrested. In a statement released today, D'Angelo's publicist says the singer will plead not guilty and reports he "is in good health and extremely excited about his forthcoming new album."
BADA-BING AND NOW A BAND:
The Sopranos creator David Chase's next project looks to be a feature-length film about an emerging '60s band, reports Deadline New York.
3-D GA GA?:
Lady Gaga may leap into the 3-D game by developing a way to integrate the technology into her live show or releasing a 3-D DVD, her rep tells MTV News.
GA GA ROCK BAND:
Harmonix and MTV Games announced this week that a four-pack of songs from Lady Gaga, as well as a special Lady Gaga cover by Comedy Central's South Park's own Eric Cartman, will be added next week to the Rock Band Music Store of downloadable content for the Xbox 360(r) video game and entertainment system from Microsoft, PlayStation(r)3 computer entertainment system and Wii(tm).
IN THE MEANTIME:
If you've already mastered Rock Band 2, there's good news on the horizon: Rock Band 3 will be out in time for the 2010 holidays. A statement on the game's Facebook page promises the new title will "innovate and revolutionize the music genre once again." Green Day: Rock Band will arrive June 8th.
COLLINS FETED:
In addition to being inducted into the Rock and Roll Hall of Fame as a member of Genesis next week, Phil Collins will be honored at June 17th's Songwriters Hall of Fame gala in New York with the Johnny Mercer Award.
TAPPING INTO ANCILLARY REVENUES:
Kings of Leon's Tap Tap Revenge game Kings of Leon Revenge is being unleashed today for the iPhone and iPod Touch. The game features 10 songs including "Use Somebody," "Notion" and "Sex on Fire."
PASSING:
The Dramatics' Ron Banks has died at age 58 of a heart attack, Reuters reports. Banks was a founding member of the soul vocal group who are best known for their 1971 hit "Whatcha See Is Whatcha Get."
Quotes of the week
"I don't want people to know how I am in bed. Well, I guess it could have been a lot worse. My phone is ringing off the hook, I have to say."
-- Jessica Simpson, making light of former beau John Mayer's comparison of her to "sexual napalm," on The Oprah Winfrey Show."Do you dabble in music 'cause you were worried you weren't going to get laid enough?"
-- Jon Stewart, questioning Robert Pattinson's foray into music, on The Daily Show"After about seven times of hanging up on Akon ... he said 'I want you to come to Atlanta, you remind me of me, a little darker but you still remind me of me and I want to sign you.'"
-- T-Pain, recalling the shock of receiving his music break after he'd just picked up a job application at McDonald's, on Lopez Tonight"Even Lady Gaga can be celibate."
-- Lady Gaga, declaring her single status, to U.K.'s Mirror."The reports of my sobriety are greatly exaggerated."
-- Keith Richards, in the press last week. We believe you, Keith ... you certainly don't look like a man who's been living a sober life.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Bassist Unaware Rock Band Christian
ORLANDO, FL-Brad Rolen, the new bassist for Pillar Of Salt, remains oblivious to the fact that he is in a Christian rock band, sources reported Tuesday.
"Pillar's great," said Rolen, 22, who is unaware of his bandmates' devotion to Christ, despite playing on such songs as "Wade In The Water," "Eternal Life," and "Kiss Of The Betrayer." "We rock really heavy and hard, but we've got a positivity that you don't see in too many bands these days. I've only been with these guys for three months, but I feel like it's the perfect fit for me."
"I was between bands after Junkhorse broke up," Rolen said. "I went to check them out live and was just blown away. They had this awesome Black Sabbath-type stage set, with all these crucifixes and candles everywhere. Then, during [the song] 'False Idol,' a gold cow rose from the stage and [lead singer and songwriter] Jack [Rhineman] beat the shit out of it with his guitar. I thought, man, these guys put on a kick-ass show."
Read the rest here and laugh: http://tinyurl.com/2tlx9d.
THE RADIO INTERVIEW on 'THE AMERICAN PERSPECTIVE' - From newsblaze.com
"Steve Meyer is on the front line of global music sales and distribution which he expects will soar to pocket-bursting levels. What's more, he shares his insight and ingenuity with us. Steve gives us both historical perspective and futuristic vision as he chats with Judy about the love of his work, trends of the business and his personal points of view about success, happiness and blending life with the lust for life. Steve joins Judy and helps us discover the thrill of having it all with a sense of balance and purpose. "
You can listen to an interview I did with Judy Piazza of 'The American Perspective' by clicking here: (It runs about 15 minutes)
http://www.thesop.org/index.php?id=10306.
The Blogs
Check out Jerry Del Colliano's (the founder of INSIDE RADIO) daily blog, by clicking here: http://www.insidemusicmedia.blogspot.comWebsite
Check out attorney Ray Beckerman's website at: http://recordingindustryvspeople.blogspot.com where he prints news about the RIAA's ongoing activities
TinyURL
Check out www.tinyurl.com where you can make a smaller URL that will work for any webpage you wish to link to or reference. (As you can see, I'm using it in my news stories above!)
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