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So What Are You Gonna' Do About It?
March 19, 2010
Have an opinion? Add your comment below. -
If you're proactive, you don't have to wait for circumstances or other people to create perspective expanding experiences. You can consciously create your own.
-- Stephen R. Covey, Author of 'The 7 Habits of Highly Effective People'In a commentary titled 'Nobody Stole The Pie' ( http://tinyurl.com/yf2utka ), Joshua P. Friedlander, VP of Research for the Recording Industry Association of America writes "Industry analysts, executives critics, and academics have been debating the impact of digital piracy for a decade. During that period, the U.S. music industry fell from nearly $15 billion annually to $8.5 billion. While a quickly growing digital market helped offset the decline in physical sales, and great strides were made constraining the growth in illegal P2P traffic, still roughly 4 out of 5 digital music downloads in the U.S. are via P2P and other unauthorized services. Some pundits have ascribed the problems solely to the industry, but you would think by now there should be no doubt that the online theft of music has caused significant harm."
I don't believe anybody would deny that the online theft of music has caused harm. (According to Forrester Research total revenue from U.S. music sales and licensing actually plunged to $6.3 billion in 2009, according to Forrester Research. In 1999, that revenue figure topped $14.6 billion. ( http://tinyurl.com/yjuq8fe ) I reported that news back on February 5th and the Forrester Research was published in several places. Mr. Friedlander's figure of $8.5 billion is over $2 billion more than what Forrester reported, so there's a big gap between the two, but both show the market has declined BIG time.)
Mr. Friedlander also said in the article I linked to above, "There have been a lot of changes over the past 10 years. The industry is adapting to consumer's demands of how they listen to music, when and where, and we've had some growing pains in terms of monetizing those changes."
I wrote in the newsletter back in that February 5th issue in response to that, "Yes, "growing pains" indeed Mr. Friedlander. And still the RIAA hasn't done a thing about "adapting to consumer's demands." But to give Mr. Friedlander the benefit of the doubt, I'll look forward to hearing from him (or any reader) about all the things the RIAA has done to assist the industry in transitioning from a world where every label was reaping tens of millions in profits from CD sales, to a digital world that every label tried to ignore far too long."
I don't believe the RIAA has done anything to assist the industry in terms of "monetizing those damages" since Mr. Friedlander said that, and though I realize the RIAA is working for the labels on many issues they have to deal with inside Washington D.C., that doesn't really solve the problems at hand.
Friedlander ends his latest post with this: "Music companies continue to develop more ways for fans to enjoy their favorite artists and songs legitimately -- and provide additional sources of revenue. But when more music is obtained illegally, and less money is available to invest in finding, developing, and recording new artists, the resources available for the next round are diminished. So if the investments dry up, and fewer new artists are able to be developed, will file sharers who stole bit by bit look at each other and say it was "Not I" who stole the pie?"
I don't believe any file sharers will ask themselves that at all. They know that new artists will be developed because of the Internet and new media, and they are already utilizing new media to discover many artists not signed by major labels at all. If anything, the Internet has enabled more artists to expose their music to a bigger audience than ever before. This might "dry up" potential investments by major labels in the future, but there will be no less music available to the millions of people who seek to find it. If Mr. Friedlander assumes the majority of the people only become exposed to new music because of what labels do, he is disconnected from the realities of the marketplace today. NOTHING moves faster than technology, and existing technology moves at light speed when it comes to people finding new music, new videos, and entertainment online.
But more important: The RIAA (and others) have had (in my opinion) the attitude that "there's nothing we ca do in this digital environment" for too long.
What about looking at all potential alternatives? The answers I get back from many in the industry are "We've tried this ... we've tried that ... nothing has worked ... that's just the way it is."
Really? How about considering another approach to seeking any possible solutions? Because if you don't, then you've surrendered without a fight.
As I've said before, there is no silver bullet to kill the beast (the technology that enables people to steal content as it exists that will never go away), but nobody is going to convince me there are not new methods to generate revenues from new models yet to be created.
At the very least, if the RIAA and its members care about the industry's future, there needs to be dialogue with technology people interested in sharing in the future revenues the industry could possibly generate. (Why this hasn't been done yet by the RIAA is still a puzzle to me) What about the ideas that can be generated from college students in new media classes all over the country?
It's a stinking situation, right?
So, what are you gonna' do about it?
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THE 'A-SIDE' - TRACK 2
OKAY, SO ABBA IS IN THE R&R HALL OF FAME ... BUT WHAT ABOUT THESE?
Abba was inducted into the Rock & Roll Hall of Fame this week along with Genesis, The Stooges, The Hollies, Jimmy Cliff and legendary songwriter Barry Mann.
I have no idea how the artists get voted into the Hall of Fame, but maybe somebody should find out why some of these artists haven't yet been inducted now that Abba has been. (Nothing against Abba, but in my opinion, some of these artists seem a bit more relevant to what the Rock & Roll Hall of Fame is supposed to represent.)
Among those still waiting for inductions are: Depeche Mode; The Cure; Chicago; Moody Blues; E.L.O.; Peter Frampton; Heart; Bon Jovi; Public Enemy.
There are many others I'm not mentioning (Kiss, Journey, Cheap Trick, Rush, just to name a few), but I think several of the acts I did mention might have deserved a spot before Abba.
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THE 'A-SIDE' - TRACK 3
LAST WEEK APPLE WAS THE 4th LARGEST COMPANY, THIS WEEK IT MOVES UP TO NUMBER 3
'Apple has been able to generate over $75 million in revenue in one day on a product that 99.9% of purchasers haven't touched or for that matter, even seen in person.' -- analyst Victor Castroll of Valcent Financial Group
There's little doubt that last Friday's re-order/sale date for Apple's new iPad helped catapult the company's stock to a new high of $227 in change. That stock price drove Apple's valuation to $206.5 billion (passing Wal-Mart), making it now the third largest company in the U.S. (Remember, I told all readers to buy Apple stock way back in January in anticipation of the iPad's release)
The lowest cost iPad is currently $499. If Apple sells just one million this year (estimates are higher than that), their revenues will grow by almost $500 million dollars. (That's a half-billion, folks)
At the same time, Apple is also experiencing huge growth (39%) in its sales of Macs in January and February. That works out to some 2.8 to 2.9 million Macs sold over the period. (Source: http://tinyurl.com/yayfb4y )
And if all that wasn't enough, for that special lady in your life "Mervis Diamond Importers has done its part to ensure Apple's pricing will always look cheap. The company announced on its site recently that it will offer a Diamond iPad for $19,999."
(Source: http://tinyurl.com/yevjt67 )
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THE 'A-SIDE' - TRACK 4
WHY DOES ANYBODY STILL LOOK AT THE MTV VIDEO ADDS?
Back on February 12th, I noted MTV's marketing head Tina Exarhos (talking about the MTV logo change,) said, "The people who watch it today don't refer to MTV as music television. They don't have the same emotional connection that, say, the people who are writing about the logo change do."
I received many e-mails from readers after that appeared in the newsletter, most told me they noticed their own kids weren't watching MTV for music, they were listening to music online on their computers and watching music videos on YouTube.
Yeah, MTV is BIG call letters. Yeah, they have ratings. Yeah, when they REALLY play a video a lot (how can they with all their reality shows?), it must increase sales. But the fact of the matter is, as Ms. Exarhos said so clearly, today's youth simply doesn't "refer to MTV as MUSIC television."
'The Jersey Shore' might be a big hit for MTV, and it's obviously getting ratings. But that show, and all the others MTV airs ain't selling any music for anybody.
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THE 'A-SIDE' - TRACK 5
MORE ON WHY THE RIAA LAWSUITS DON'T PAY
For years I've written about the failure of the RIAA lawsuits (and those elsewhere) to stop illegal downloading. Despite what IFPI and the RIAA spin, the fact is online theft of songs is just as prevalent as ever, and maybe even more so since off-line Intranets cannot be detected and "darknets" fly under online radar detection .
This week INSIDE MUSIC MEDIA'S Jerry Del Colliano has a great post titled, 'The Online Price Of Music (When Caught) Is Coming Dow"n with some very wise thoughts about it all as well check it out here http://tinyurl.com/yaotyuc
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THE 'A-SIDE' - TRACK 6
THE DISAPPEARING VIDEO STORE ... HERE COME HOLLYWOOD'S NEXT PROBLEM
I'm sure many of you have either read about Blockbuster and Hollywood video store closures, or witnessed them in your own neighborhoods.
Netflix, the one dollar Redbox DVD rental vending machines, and OnDemand cable services (pay-for-view movies) are all soaring and have expedited the decline of retail video stores. But there are more reasons behind the stores disappearing. Another big reason? People are realizing they don't need to own so many DVDs of movies that aren't really worth owning after one or two viewings.
Remember when retail record stores started to disappear? Sure you do, and we all know why. The business changed dramatically, and as the Internet spread like wildfire, retail record stores lost business.
DVD sales provided Hollywood studios with significant revenues after box office runs were done, and DVD sales are down. "Disc sales took a nosedive among U.S. viewers in 2009; Adams said that the number dropped 13% year-over-year to just $8.73 billion, down from $10.06 billion in 2008. " (Source: http://tinyurl.com/ybgmlqp )
The film industry is experiencing the first tidal wave of the transition that will take place in their business. More tidal waves will roll onto the studio lots a whole lot faster in the next few years.
And Now For Some News ...
Sony Gives Michael Jackson Estate A $250 Million Deal
Various SourcesIf you haven't already heard about it elsewhere, this week Sony Music made a $250 million 10-album deal for previously unreleased music and the catalog from the late Michael Jackson. It's the biggest recording deal in history and it speaks volumes about Michael Jackson's ongoing popularity worldwide, and his ability to still sell lots of records.
The first release of new music is scheduled for a November release.
Read the rest here: http://tinyurl.com/y9mjxtr or here: http://tinyurl.com/yahu87a
Are We in a Music Retailspin?
An Interview with Six Seattle Record Store Heads on How Their Stores are SurvivingA survey of six Seattle record-store bosses paints a picture that, while not all blue skies and "la la la"-laden choruses, is far from the dirge-y, pitch-black scenario some observers think it is. Yes, record stores are struggling, like many other businesses, and nobody's buying fleets of Ferraris by selling circular bits of plastic and aluminum with music data on 'em. However, these cagey survivors of the music-retail wars lean slightly more toward the view of the crate being half-full than half-empty. They give one hope that we won't all soon be soullessly purchasing (or pilfering) MP3s online in miserable isolation.
http://www.thestranger.com/seattle/are-we-in-a-music-retailspin/Content?oid=3581853
Are Musicians Making Too Much Music?
AVclubFrom the article: "Here's a statistic that may or may not surprise you: Listening to every song The Beatles officially released during their eight-year recording career-all their albums, EPs, singles, and B-sides-would take a little less than 10 hours...Here's another statistic that also may or may not surprise you: Listening to every song officially released by Animal Collective during a similar timeframe would take you almost exactly the same amount of time, to the minute."
So what? So bands are, as a rule, a lot more prolific these days than in the past. The reasons why are an interesting story, one by which you can trace the impact of almost every economic and technological development on the music industry since the birth of the album format and the ascendance of rock 'n' roll in the early 1960s. But the important question-the one music fans and critics are likely to ask themselves with increasing frequency as time goes on-is "Is it a good thing for music?"
Read more about it by clicking here.
UMG Lowers CD Prices To $10...Or Less
Billboardbiz.comAs the sales of CDs have declined steadily over the years, I've often asked in the newsletter many times why labels wouldn't try new lower priced strategies in hopes of engaging more consumers and slowing the percentage of the drop off in physical sales. The end result could possibly provide extended retail life for the CD, and with the music marketplace in transition to digital delivery, such a move is indeed proactive.
This week, the Universal Music Group is doing exactly that.
From the article I link to below: "While some may deem UMG's strategy as "too little, too late," the move does put the price of physical discs in line with what digital music services like iTunes charge for full album downloads, making physical discs a more attractive option. "We think it will really bring new life into the physical format," Universal Music Group Distribution president/CEO Jim Urie said. "
I don't believe such a move is "too little too late" at all. To do nothing would be criminal at this point. If labels do have any desire to keep the CD in the marketplace this is certainly a step in the right direction, and I congratulate Jim Urie and the UMG team on their decision.
Read more about it by clicking here.
Leaked UK Record Industry Memo Sets Out Plans For Those Breaking Copyright
BoingBoing.com(My thanks to Paul Fischer, a reader of the newsletter)
Well, here's some unsettling news. In a leaked, six-page e-mail, Richard Mollet, the Director of Public Affairs for the British Phonographic Institute (the UK's record-industry lobbyists), sets out the BPI's strategy for ramming through the Digital Economy Bill, a sweeping, backwards-reform to U.K. copyright law that will further sacrifice privacy and due process in the name of preserving copyright, without actually preserving copyright.
Mollet's memo, entitled "Digital Economy Bill weekly update 11 March 2010," appears to be a weekly status report on the DEB's progress. On the CC list are executives from major record labels, staff at IFPI (the international record industry lobby), PR agents from The Open Road, and others.
In the memo, Mollet identifies Britain's top spies as being a stumbling block to the bill's passage -- worried, apparently, that creating a Great Firewall of Britain will make it harder for spies to spy on naughty sites (someone should tell MI5 about Ipredator, the excellent proxy service from the Pirate Bay; after all, that's the same proxy that everyone else in Britain is likely to use to get at the blocked sites if the BPI gets its way).
Read more about it by clicking here.
Is The U.S. Next For Spotify?
Digital BeatEuropean music streaming service Spotify is gearing up for a big U.S. invasion.Exactly when that will be, however, remains a question mark. Chief executive Daniel Ek says the service, which debuted in 2008, now has 320,000 paying subscribers, and about 7 million users across countries like the U.K., Sweden and France. In Europe, Spotify offers free, ad-supported access to streaming songs.
A premium version is available for around $15 a month, depending on the exchange rate of each country. Meanwhile, Ek says Spotify's U.S. version might be "slightly different" from its European one, "suggesting the company is still having trouble securing the appropriate rights agreements to bring a free version to the States," notes Digital Beat.
Read more about it by clicking here.
Online Video Viewing Is Up
MediaPost NewsIn February, the number of consumers viewing video online was up 10.5% year-over-year, according to new data from The Nielsen Company. To be precise, unique video viewers increased from 127.6 million in February 2009 to 141 million in February 2010.
Total streams, meanwhile, were up 15.8% year-over-year to just over 10.3 billion; average streams per viewer increased 4.7% to 73 streams per month; while the average time spent viewing videos was up 7.4% to 181 minutes per month.
And again, for those who believe that paid content model will be answer to all online media companies seeking revenues, the Nielsen Company says "nearly eight out of every 10 respondents -- 79% -- said they would no longer use a website that charges them, presuming they can find the same information at no cost. "
Read more about it by clicking here.
Based On Sampling, Initial iPad Sales Will Be Strong
Fast CompanyBased on a sampling, CNN is estimating the total product sales at Apple's online store to be about 125,000 on Friday. "Once you subtract the average sales of 16,500 and multiply by the average number of iPads bought, you come up with just shy of 120,000 iPads sold," concludes Fast Company. "It's an estimate, sure, but a conservative one, and that number is reasonable."
The estimates are based on a sample of iPad and other Apple product purchasers taken by CNN. It would also appear as though all three versions of the iPad (16GB, 32GB, and 64GB) sold equally, while most consumers -- 70% -- opted for the Wi-Fi-only model, compared to the 30% who chose the 3G model. Fast Company also notes that the 3G model is expected to ship after the Wi-Fi-only iPads, would likely influenced consumers anxious to show off their new toys.
Read more about it by clicking here.
Blackberry Users Ready To Switch To iPhones
Ars TechnicaAttention all those with "CrackBerry" addiction -- there might be a cure and it's called the iPhone. Indeed, two in five BlackBerry owners plan to swap their current device for an Apple-made phone when it's time to upgrade, according to new data from market researcher firm Crowd Science. The data suggests that "RIM isn't keeping up with consumer demand in its efforts to combat growing encroachment from the likes of iPhone and Android," concludes Ars Technica.
Despite RIM's entrenchment among business users, the iPhone platform has grown at a faster rate than the BlackBerry over the last year. Why? For one, Crowd Science finds that consumers are increasingly using their smartphones for both personal and business use. Nearly a third of iPhone owners use their device for strictly personal use, versus just 16% for BlackBerry users. Meanwhile, just 1% of iPhone owners use their device for business only, while two-thirds are using an iPhone for business and personal use.
Read more about it by clicking here.
PBS 'Digital Nation' Life On The Virtual Frontier
Pbs.orgIf you missed the 90-minute PBS broadcast of "Digital Nation, Distracted By Everything," I highly recommend it. It's a terrific piece about how the digital revolution has changed our lives, is continuing to change it everyday, and what's happening to many of us because of what's happened.
Read more about it by clicking here.
GAGA NUMBER ONE AGAIN, AND BEYONCE SCORE BIG TIME:
"Telephone," Lady Gaga and the track's featured artist Beyonce have tied the record for most No. 1s since the Nielsen BDS-based radio airplay chart launched in 1992. The pair joins Mariah Carey, who tallied six toppers between 1993 and 2005. Lady Gaga and Beyonce pass Avril Lavigne, Pink, Britney Spears and Justin Timberlake, each with five No. 1s.
GA GA GOES GARGANTUAN:
Lady Gaga first announced her Monster Ball tour in October 2009, after her planned Fame Kills trek with Kanye West was canceled, and she debuted the live spectacle a month later. She then revamped the show into a massive arena show for its European kick-off in February. Now Ga Ga is upping the ante once again, announcing an ambitious 31-date summer tour starting June 28th in Quebec. The tour will make stops at arenas in Philadelphia, New York, Cleveland, Los Angeles, Detroit and other major U.S. and Canadian markets. Tickets for most dates go on sale this Friday, March 19th, through Live Nation; and special guests will be announced shortly.
GUNS & ROSES GETS RAINED OUT:
Guns n' Roses canceled a show in Rio this past week due to a stage collapse caused by heavy rain. Axl Rose reported the news on his Twitter, confirming the accident resulted in minor injuries but no fatalities.
DIXIE CHICKS, URBAN, HOOK UP WITH THE EAGLES:
The Dixie Chicks will hit the road for the first time in four years this summer when they team up with Eagles and Keith Urban for a co-headlining stadium trek. So far, only eight June dates have been announced.
CLASH WITH GORILLAZ:
The Clash's Mick Jones and Paul Simon both play on Gorillaz's new "Plastic Beach," and Spinner reports the pair might be considering joining Damon Albarn's outfit on a brief tour. If true, it would mark the first time the former band mates have shared a stage in public since 1983.
RAY TO THE BIG WHITE WAY:
"Unchain My Heart," a musical about Ray Charles, will make its Broadway debut November 7th, the AP reports.
WINEHOUSE THREADS:
Amy Winehouse is getting into the fashion business, launching a new line for Fred Perry. The singer's website announces that her 17-piece black and pink-dominated collection features polo shirts and pencil skirts and is due in October.
U2 VINYL:
U2 will release their "Artificial Horizon" remix album as a triple-vinyl set on May 14th. According to the album's site, Trent Reznor, Justice and Hot Chip are among the 13 producers who reworked songs from "Pop" to "No Line on the Horizon."
PATTI HONORED:
Patti Smith will receive the ASCAP Founders Award and perform at the group's 27th annual Pop Music Awards on April 21st in Los Angeles.
PUMPKINS CELEBRATE RECORD STORES:
Smashing Pumpkins will launch Record Store Day on April 17th with a special performance in L.A. hosted by Rocket Science Ventures and Amoeba Records. Fans will be able to pre-order "Teargarden by Kaleidyscope Vol 1: Songs For A Sailor" exclusively at indie record shops on the 17th as well.
CONAN FOX UPDATE:
Fox Broadcasting is closer to bringing Conan O'Brien back to late night. Key Fox executives, including Rupert Murdoch, are on board with the plan and would like to finalize a deal in coming weeks so they can make a splash on May 17th when the network unveils its fall lineup. But several significant issues remain, like cost. NBC spent close to $90 million a year to produce the show, which included O'Brien's salary of more than $12 million a year. Fox wants to spend less than $60 million annually. .
Quotes of the week
"First of all, anybody who at the age of 60 calls himself Sting is an idiot."
-- Simon Cowell, continuing his feud with the singer in an interview with "X Factor" co-star Piers Morgan, after Sting called Cowell's reality shows "televised karaoke.""Am I smiling? You guys, am I smiling?"
-- Heidi Montag, joking bout her plastic surgery in a public service announcement on Funny or Die online. (And yes Heidi, you do look like you're smiling ... we aren't)"I like to categorize the various levels of heartbreak ... A letdown is worth a few songs. A heartbreak is worth a few albums."
-- Taylor Swift, breaking down how she uses her love life as musical inspiration, to Elle magazine
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Report: Music Industry Made $18 In 2009
NEW YORK-The Recording Industry Association of America announced Tuesday that the combined revenue brought in by Warner, Sony, EMI, Universal, and countless independent music labels in 2009 totaled $18. "The music industry is back," RIAA representative Doug Fowley said. "Not only was Kenny Chesney's Greatest Hits CD purchased at a Knoxville, TN Borders for $12.99, but we also had two songs downloaded through iTunes, and our ringtone sales reached three." Fowley added that as long as no one returns or exchanges the CD, the music industry would continue to be a vital and creative force in American culture.
Read the rest here and laugh: http://tinyurl.com/yfhnyrn.
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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