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Record Store Day: Bigger ... And Maybe Telling Us Something
May 21, 2010
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It's just too bad this kind of thing can't happen all the time, where you get people really excited to go to physical stores and pore over records,
-- Billboard's Keith CaulfieldI'm a little late talking about Record Store Day, but better late than never. I think what's happening on Record Store Day tells us all a lot about Record Store Day, which occurs annually every April, is gaining real momentum and becoming a great retail day for independent record stores all over the country.
Some of the news about this year's event: (As reported in the L.A. Times here: http://tinyurl.com/2ex6zm2 )
* Approximately 990 independent record stores in the country participated in the event.
* The Alliance Of Independent Media Stores (AIMS) reported ""Every single AIMS store has reported that this was the best day they ever had, whether they were a 5-year-old store or a 15-year-old store" and declared the event "more important than Christmas, or Christmas week" in regards to seeing sales increases.
* Album sales in the independent sector were up 12% over the prior week.
* Sales of vinyl records were up 119% for the week at indie stores, according to SoundScan, and single sales at indie retailers experienced a whopping 529% charge.
Sure, the percentages from the independent retailers don't compare to the actual totals of the best sellers on the charts sold nationwide at every WalMart, Target, Best Buy, et al.
But what's happening at independent record stores across the country is significant. It tells us all that when consumers are engaged at music retail, they respond by spending more time in the stores, and buying more music in physical configurations, not digital.
Yes, the earphones you see everybody using as they listen to music on their iPods, means listening to music digitally on the go is the overwhelming choice of consumers.
But listening to music on an iPod is a completely different experience from picking up a vinyl album, reading the liner notes, admiring the cover art, opening the album and getting the smell of the ink from the album cover and the vinyl inside, putting the needle down on a record, and sitting back and enjoying the music that comes from your speakers.
That experience, of course, will never replace the digital world of music and media we now live in. But that experience is obviously worth it to a whole bunch of new consumers who are discovering it for the very first time.
Record stores played an integral role in capturing and engaging consumers at retail in the music industry's glory days ... and they seem to be doing it again today.
Whether they are selling loads of vinyl, or more CDs, record stores are what I consider a "missing link" in the music industry. The connection between the labels and the retailers who created great retail environments was severed when selling hundreds of thousands of a CD title to Best Buy became more important. Those quarterly profits at the big labels demanded those big quantities be sold to make numbers, so that's what happened.
Don't get me wrong. I understand the nature of all big business, and it means doing whatever has to be done to satisfy the stockholders and Wall Street analysts every fiscal quarter. As Calvin Coolidge said, "The business of America is business." (Then again, does anybody ever talk about Calvin Coolidge?)
This week the #1 album in Billboard by Justin Bieber sold only 60,343 units (ouch), and the combined sales of the Top 10 albums sold under 500,000. You can't blame the miserable sales week on all those people illegally downloading music. Not when physical sales of some artists are still in the multi-million category.
Nope. There are too many other factors to consider.
Like people not having enough great music retail environments to ignite their senses when they shop. (And when their senses are ignited, like at Amoeba Music in Los Angeles and San Francisco, it's a whole other story)
Like people not being able to really dialogue about new music with knowledgeable sales people like they once did in great music retail environments.
Yeah, I know. It's a different time and technology has changed everything. We can never go back to what it all once was.
But that doesn't mean there can be new and more creative ways to engage music consumers. They are out there and their numbers are growing steadily.
Record Store Day 2010 was evidence of that.
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THE 'A-SIDE' - TRACK 2
STRATEGIC ALLIANCES AGAIN: JVC & THE ALL-AMERICAN REJECTS
JVC Mobile Entertainment wants consumers to remember that listening to music through a car radio while cruising with friends can be fun in the latest iteration of its three-year-old Turn Me On viral video campaign.
"We're trying to sell the 'entertainment'" of JVC Mobile products, Chad Vogelsong, general manager of JVC Mobile Entertainment, tells Marketing Daily. "At the end of the day, driving around with your car stereo on is just fun."
This year's campaign, which launches this week, features the All-American Rejects in a four-minute music video. The video depicts female fans of the band listening to the group on their radio (many in their cars, although some are on a fire escape), when a news update alerts them that the band has taken control of its tour van and is heading to a private show somewhere in Los Angeles. The fans use the car radios (and navigation systems within them) to find the band and the show.
"It's more than just product placement. The script is written so the radio is a character in the video," Vogelsong says. "It's a true collaboration with the band."
Read the rest here: http://tinyurl.com/2dkeqch
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THE 'A-SIDE' - TRACK 3
TABLETS TO EXPLODE IN SALES
From the International Data Corporation Report: "The nascent market for media tablets, fostered by the launch of Apple's iPad, will be driven by the device's attributes as a content consumption platform and the compelling applications and services that will be created to take advantage of them ... According to a new forecast from International Data Corporation (IDC), worldwide media tablet shipments will grow from 7.6 million units in 2010 to more than 46 million units in 2014, representing a compound annual growth rate (CAGR) of 57.4%. In comparison, IDC expects 398 million portable PCs will be shipped in 2014." (Source: http://tinyurl.com/2bleamo )
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The 'B Side'
(I usually put the 'B Side' -- the Onion story of the week -- at the end of the newsletter, but this week they wrote a story that goes beyond being just funny because so much of what's funny in it, is simply the truth. This week's story of the week is about Social Networks...)
New Social Networking Site Changing The Way Oh, Christ, Forget It
Let Someone Else Report On This Bull***t
NEW YORK-While millions of young, tech-savvy professionals already use services like Facebook and Twitter to keep in constant touch with friends, a new social networking platform called Foursquare has recently taken the oh, f***ing hell, can't some other desperate news outlet cover this crap instead?
Launched last year, Foursquare is unique in that it not only allows users to broadcast their whereabouts, but also offers a number of built-in incentives, including some innovative new crap The New York Times surely has a throbbing hard-on for.
In fact, why don't we just let them report on this garbage and call it a day?
"Foursquare is a little bit of everything -- a friend-finder, a local city guide, an interactive mobile game," said company cofounder Dennis Crowley, as if reading from the same tired script used by every one of these Web 2.0 or whatever-the-f***-they're-called startups. "But more than that, Foursquare is an [endless string of meaningless buzzwords we just couldn't bring ourselves to transcribe]."
Read the rest here and laugh: http://tinyurl.com/27mphvx
And Now For Some News ...
You Tube At 5 Years Old: 2 Billion Views A Day
YouTube.comFive years ago, after months of late nights, testing and preparation, YouTube's founders launched the first beta version of YouTube.com in May, with a simple mission: give anyone a place to easily upload their videos and share them with the world. Whether you were an aspiring filmmaker, a politician, a proud parent or someone who just wanted to connect with something bigger, YouTube became the place where you could broadcast yourself.
Read more about it by clicking here or here.
Paul McCartney Blames EMI For Beatles Not Being On iTunes
The RegisterYou can blame him for "Band on the Run" or "Ebony and Ivory," but according to Sir Paul McCartney, it's not his fault that the Fab Four's oeuvre isn't available on iTunes.
"It's been business hassles," the world's most famous left-handed bass guitarist told the BBC's Newsbeat. "Not with us or iTunes. It's the people in the middle, the record label. There have been all sorts of reasons why they don't want to do it."
It's EMI's fault, in other words. But in a sniffily-worded soupcon of corporatese, EMI told Newsbeat: "Discussions are ongoing. We would love to see The Beatles' music available for sale digitally."
Read more about it by clicking here.
Google Launches Competition For iTunes
TechCrunchYesterday, at Google I/O, Vic Gundotra introduced Froyo, aka Android 2.2. But he also went a bit beyond Froyo. Coming soon, is a way to download an app through the Android Market over the web -- and have it automatically download on your Android devices, too. But that's not all. Gundotra also showed off a new section of the market -- Music. Yes, an iTunes competitor on the web from Google.
Read more about it by clicking here.
Legal Experts Say LimeWire Is Likely Doomed
CNET.comA federal court judge has likely dealt a death blow to LimeWire, one of the most popular and oldest file-sharing systems, according to legal experts.
Last week CNET broke the news that U.S. District Judge Kimba Wood granted summary judgment in favor of the Recording Industry Association of America (RIAA), which filed a copyright lawsuit against LimeWire in 2006. In her decision, Wood ruled Lime Group, parent of LimeWire software maker Lime Wire, and founder Mark Gorton committed copyright infringement, induced copyright infringement, and engaged in unfair competition.
"It is obviously a fairly fatal decision for them," said Michael Page, the San Francisco lawyer who represented file sharing service Grokster in the landmark case, MGM Studios, vs. Grokster and also represented Lime Wire's former CTO in the company's most recent copyright case. "If they don't shut down, the other side will likely make a request for an injunction and there's nothing left but to go on to calculating damages."
Read more about it by clicking here.
Canadian Court Rules 30-Second Samples Are Exempt From Royalties
BillboardBizCanada's federal appellate court has ruled that online music services do not have to pay performance royalties on 30-second streaming song samples.
Read more about it by clicking here.
Spotify Launches New Music Streaming Options in U.K.
Spotify.comStreaming music service Spotify on Tuesday launched two new service offerings for its U.K. users, Spotify Unlimited and Spotify Open. The Unlimited option offers ad-free streaming to a computer for £4.99 ($7.15) per month; the plan that adds mobile access still costs £9.99 ($14.32) per month. The new Spotify Open offers free streaming with ads but caps listening at 20 hours per month. The company's basic free streaming service still requires an invite to join.
Read more about it by clicking here.
Sweden's Pirate Party Becomes The Pirate Bay's New Host
TorrentFreakAfter its previous bandwidth provider had to take the site offline due to concerns over an aggressive Hollywood injunction, this week The Pirate Bay is fully back in operation with a surprising new supplier. From a few hours ago, in a move intended to "stand up for freedom of expression," the Swedish Pirate Party became the site's new host.
Read more about it by clicking here.
Musicnotes.com Releases Sheet Music App for the iPad
BusinessWireMusicnotes.com, the leading digital sheet music retailer and publisher, announced today the company has launched the Musicnotes Sheet Music Viewer application for the iPad, enabling musicians to instantly connect their Musicnotes.com digital sheet music library with their iPad.
Read more about it by clicking here.
Mobile Music Downloads Slow To Catch On
ReutersFewer than 2% of mobile users in the United States and western Europe used their phone to download music in the first quarter, showing the uphill task facing Apple iTunes challengers like Nokia.
Although 24% listened to music on their phone, the vast majority loaded the tracks on to their handset from music they already had on a computer, according to data from industry tracker comScore released on Wednesday.
Read more about it by clicking here.
Google & Intel Plan Living Room Invasion
The Financial TimesGoogle, Intel and Sony are about to announce an ambitious plan to bring Web services to consumers' TV sets, reports The Financial Times. For Google, the so-called "Smart TV" platform will represent a "significant breakthrough into consumer electronics and the broadcast industry," FT.com writes. "Intel's Atom microprocessor and Google's Android operating system are spearheading their assault on set-top boxes and TVs featuring integrated Internet services."
To date, technology companies have had little success penetrating the TV industry, but both Google and Intel are now seeking to take advantage of service providers and TV manufacturers desire to catch consumers' attention with newfangled web capabilities and interactive content. An official announcement is expected during Google's annual developer conference in San Francisco on Wednesday or Thursday.
Read more about it by clicking here.
Is Hulu The Death Of TV?
Smart MoneyThe latest TV threat could come from Hulu, the second-most-popular site for free online video. A reportedly planned change to the site's revenue model raises new questions about the outlook for television companies, says Smart Money. Today, Hulu offers a menu of free streaming TV episodes, movies and clips for free, but the site plans to start charging a monthly subscription fee of $9.95 to access its full archive of videos. The last few episodes of most shows would remain free. Hulu also poses a danger to the networks because it could be changing audiences' expectations. Sites like Hulu are also "retraining the consumer that premium content is supposed to be free," says Laura Martin, a senior analyst covering entertainment, cable and media at Needham & Company.
Still, Hulu's backers are NBC, ABC, Fox, which explains why they want subscription fees to help pad the bottom line. Perhaps they grew impatient waiting for the ad revenues to grow to acceptable levels -- as opposed to Google, which is patient in handling YouTube's move toward profitability. Ironic that Hulu, which rose to popularity because it was free would resort to a paid model, reports Reel SEO. And what would Hulu say to users who prefer paying $9.95 a month to Netflix and gain access to much more content than Hulu is able to offer?
Read more about it by clicking here.
Ford Fiesta To Demonstrate 'Internet On Wheels'
MediaPostFord is using its new Fiesta car to demonstrate that cars can be mobile Internet devices. The company is sending two Ford Fiestas, loaded with high-tech applications and University of Michigan students, on a road trip. The trip is the culmination of a year-long project -- American Journey 2.0 -- with the university, supported by Microsoft and Intel, offering a group of UM students a chance to define the future in-car experience.
Read more about it by clicking here.
Google Gets Simplify Media Software To Power Music Syncing
TechCrunchMore news coming out of I/O... Google just announced the acquisition of a small maker of software that lets users share their iTunes music across digital platforms. Simplify Media's software lets users share music and photos using programs like iTunes, iPhoto and Windows Media player. Terms of the deal were not disclosed.
Simplify "connects people directly with their content, without the hassles of syncing or uploading all their files," according to the company's website. "Simplify users can also share their personal media with family and close friends in a private, secure group." Tech Crunch suspects that that deal may have taken place in March, when the company announced a "new direction" on its blog, discontinuing its software to users and removing its iPhone app from Apple's App store. Notes TechCrunch, "Clearly the new direction was over to Google headquarters in Mountain View."
Read more about it by clicking here.
The Music Industry Past, Present & Future, And The Internet
I answer questions on EconTalkI did an interview about the industry and the Internet at EconTalk with host Russ Roberts. Russ is also a professor of economics at George Mason University, blogs at Cafe Hayek, and has written three novels that teach economics. He's also the co-creator of the Keynes-Hayek rap video. (And if your understanding of the economic meltdown that occurred needs to be enlightened, this video will do it)
In the interview we talk about the evolution of the music industry, the impact of the digital revolution, and I give my reasons for believing in the virtues and potential of the Internet in enhancing the music industry. I point out, as I have many times here in the newsletter, that the internet allows numerous artists to make money from their music and it can enhance revenues from live performances by expanding an artist's base. We also discuss the challenges facing record companies and I suggest that the full potential of the Internet as a distribution channel has yet to be fully exploited. There's a lot of ground covered, but based on the comments already posted of those who have tuned in, they've enjoyed it.
Read more about it by clicking here.
MACCA NEWS:
Paul McCartney's 'Up and Coming Tour' will visit the new Rio Tinto Stadium in Sandy, Utah, on July 13th. McCartney has also confirmed his first concert visit to San Francisco since the Beatles played Candlestick Park in August 1966. On July 10th, he'll take the stage at AT&T Park, the home of the San Francisco Giants. Tickets for both shows go on sale to the public on May 24th.
WORLD MUSIC AWARDS FOR GAGA:
Lady GaGa swept the World Music Awards in Monaco last night, snagging FIVE trophies -- World's Best Single, Best Album, Best Pop/Rock Artist, Best New Artist and Best Selling Artist From America.
ARCADE FIRE READY:
Arcade Fire delivered a handwritten note via the Web this week announcing news about the follow-up to 2007's "Neon Bible." The short note, addressed to "The Internet," reads simply, "Howdy y'all - Just finishing up pressing our 12". Should be in stores in the next couple weeks, God willing. Good luck with finals, see you this Summer! AF." No specifics about the 12" were revealed - and since both albums and singles are pressed on 12" vinyl, fans can't be sure what to expect According to an Amazon preorder page, Arcade Fire will release a new single called "Suburbs," backed by another new track titled "Month of May," on June 1st. The band has yet to confirm that release.
BONHAM JR. TO DO ZEPPELIN REDUX:
Jason Bonham, who stepped in and played drums for his deceased father at the Zeppelin reunion show, is offering the next best thing: a summer tour with his new project the Led Zeppelin Experience. Bonham is hitting the road to honor the 30th anniversary of his father's death with a 30-date tour featuring Bonham playing the band's greatest hits. Dates along with the lineup of musicians backing Bonham will be announced soon.
LEIBER & STOLLER HONORED:
Rock and Roll Hall of Fame songwriters Jerry Leiber and Mike Stoller received NARM's 2010 Outstanding Achievement Award for Musical Collaboration at the Chicago Hilton this week.
BRET MICHAELS BACK IN HOSPITAL:
After suffering a brain hemorrhage, Bret Michaels has been re-admitted to the hospital after suffering a "warning stroke," or Transient Ischemic Attack (TIA), his reps told fans via Facebook on Thursday. Earlier this week, Michaels underwent a series of tests, including an MRI and CAT scan. He tested positive for Patent Foramen Ovale (PFO), meaning the singer has a hole in his heart. Doctors believe the PFO caused the warning stroke.
SCORSESE DOCUMENTARY COMING ON GEORGE HARRISON:
Director Martin Scorsese's documentary on the "Quiet Beatle," Living in the Material World: George Harrison, will feature never-before-seen images of the late rock great and new interviews with his bandmates Ringo Starr and Paul McCartney. The film might also include some unearthed music by Harrison.
PASSING:
Ronnie James Dio, whose mythic tales of a never-ending struggle between good and evil broke new ground in heavy metal, died Sunday, according to a statement from his wife and manager. He was 67. Dio revealed last summer that he was suffering from stomach cancer.
PASSING:
Jazz pianist and composer Hank Jones, whose 70-year career included a stint as Ella Fitzgerald's pianist and Marilyn Monroe's accompanist when she sang "Happy Birthday" to President John F. Kennedy, has died, his manager said Monday. He was 91.
Quotes of the week
"When I first heard about the campaign to get me to host Saturday Night Live, I didn't know what Facebook was. And now that I do know what it is, I have to say it sounds like a huge waste of time."
-- Betty White, during her SNL opening monologue"There's no bigger question for the summer. We have to find a judge to replace Simon that has music credibility and provides incredible entertainment value."
-- Fox entertainment chairman Peter Rice talking about Simon Cowell's replacement for 'American Idol'"We have seen throughout this crisis that banks have been reluctant to take control of companies in these situations, and Guy is counting on that to push Citi into doing a deal on EMI's debt."
-- A Terra Firma investor, quoted on ft.com.
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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