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Trying To Legislate It All Away
June 25, 2010
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Piracy is theft. Clean and simple. It's smash and grab. It ain't no different than smashing a window at Tiffany's.
-- VP Joe Biden at a press conference in Washington, D.C. last weekLast week at a press conference in our nation's capitol, Vice President Joe Biden made the above statement. Standing side by side with him was Victoria Espinel, the U.S. intellectual property enforcement coordinator, to introduce the government's strategy on protecting the country's intellectual property.
This from a CNET article about it all: "Espinel issued a report that included more than 33 recommendations, such as cooperating with foreign governments to go after foreign-based pirate sites. Biden and Espinel were scheduled to discuss how to implement the recommendations following the press conference. Through reporters, Espinel issued a warning to those who infringe on U.S. intellectual-property rights. "We have committed to putting you out of business," she said, adding that copyright owners who are losing money to piracy can rest assure "help is on the way." (Source: http://tinyurl.com/26avk4b )
NBC Universal general counsel, Rick Cotton, said "The big picture is that the sands are shifting. An important political consensus is emerging."
(The major Hollywood studios and labels should remember the saying "I'm from the government and I'm here to help you." is often refereed to as one of the "big lies.")
Vice President Biden also said, "This is not just about the new 'Robin Hood' movie. It's not just about creative talent ... It's about a Kevlar [bulletproof] vest we are putting on some guy and whether it works or not."
Of course, there is no digital "Kevlar" vest to ever protect people from stealing music and media content online. If our politicians and legislators don't realize this by now, all the king's horses and all the king's men won't put Hollywood back together again.
Biden and Espinel also spent time discussing online piracy and illegal file sharing and Biden suggested Internet service providers should cooperate with the anti-piracy efforts of the film and music sectors. As we now know, that's been a very slippery slope since it was suggested a few years ago.
I do not under any circumstances condone illegal file-sharing or downloading, and I've said so dozens of times in this newsletter. In fact, I started the newsletter in 2003 in hopes that some people in the industry would see the opportunities the Internet potentially offered, instead of the threats. I still believe in those opportunities and see so much potential for creative content providers out there.
However, I have also said many times in the newsletter that regardless of legislation or attempts to get cooperation from ISPs and control intellectual property, the fact is that online piracy will never be eliminated and it will only create "offline" piracy on non-detectable Intranets and "darknets."
There is no way to eliminate online file-sharing, and all the efforts put in place so far have done next to nothing to stop people from stealing music. People who want to steal music will find a way to do so. The efforts to make stealing it harder are always overcome by the same technology that allows tech companies to build (hopefully) secure firewalls. But, as we now know, even the most savvy tech companies get hacked. Daily.
There need to be NEW revenue streams created online and off for music companies to survive. As content providers/holders, the possibilities are as limitless as one's imagination. (And oh yes...the lawyers) But, the opportunities are there and the industry needs to be as innovative in seeking them as Steve Jobs is in developing products the consumers love.
This week, I received an e-mail titled 'Fast Changing Consumer Behavior Forcing New Business Models' from The Center For Media Research that talks about the new report from PricewaterhouseCooper, 'Global Entertainment and Media Outlook: 2010-20.' (You can about the report and get some great information from it here: http://tinyurl.com/378jvyf )
The report states that digital migration and consumer behavior changes have put extreme pressure on existing business models. The proliferation of platforms and rising consumer expectations mean companies can no longer "be everything."
Ken Sharkey, US leader, entertainment, media & communications practice, PricewaterhouseCoopers, says "The industry must radically rethink its approach to monetizing content in capturing new revenue sources, from transactions or from participation with others operating in the evolving digital value chain... "
Music is one of life's greatest joys ... and it touches us all. The music will never go away. How the consumers get it in the future is the key. Creating ways to get it to them that at the same time provides the distributor/content provider with revenue are of course essential.
I don't pretend to have the answers, and there are no easy solutions.
But I know that legislation will be as ineffective as all the RIAA lawsuits in stopping online piracy and illegal downloading.
Yes, something needs to be done. Yes, any meaningful efforts are worthwhile. But trying to wave a legislative wand over the problem(s) will not solve them in the end.
Back in 2004 Microsoft's CEO Steve Ballmer said, "Most people still steal music. We can build the technology, but there are still ways for people to steal music."
Stop those you can anyway you can via legislation, but like it or not, it's time to realize (some six years later) that Mr. Ballmer was right, swallow that pill, and create new revenue streams.
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THE 'A-SIDE' - TRACK 2
3 MILLION AND COUNTING ... AND THE NEW iPHONE IS RED HOT (OF COURSE)
Apple announced on Tuesday that sales of its iPad have now surpassed 3 million units, only 80 days after its release in the U.S. The company also added that developers have created over 11,000 new iPad apps. You can read more about it here: http://tinyurl.com/28y6gzy
Apple also released their new iPhone this week, and as usual, people lined up at stores all over the globe to get the latest version. It's estimated the company will sell one million of the new phone on the first day. (Boy, am I glad I bought Apple stock!)
Read more here: http://tinyurl.com/2aj2ezb
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THE 'A-SIDE' - TRACK 3
E-READERS DROP IN PRICE BIG TIME
Maybe it's because the iPad has sold 3 million, maybe not, but this week Barnes & Noble unveiled a $149 Wi-Fi-only Nook e-reader and they announced they are also lowering the price of the 3G-enabled Nook from $259 to $199. The changes represent "the first serious attempt at undercutting Amazon's Kindle e-reader business with a store and hardware combo," Fast Company writes. "But it's more than that: It's a sign of the changing e-reader game," which the magazine calls a "the beginning of the race to the bottom."
In other words, as with netbooks, e-readers are destined to become cheaper and less differentiated. Fast Company calls the new $149 price tag "truly magical," and a force to be reckoned with when combined with Barnes & Noble's huge e-bookstore "ecosystem."
Furthermore, being tethered to wireless networks isn't likely to turn off too many consumers -- most of whom download reading material far less frequently than, say, check their e-mail.
And as expected, after Barnes & Noble's move on Monday to cut the price of its Nook e-book reader from $259 to $199, Amazon.com followed suit by discounting its own Kindle e-book reader from $259 to $189.
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THE 'A-SIDE' - TRACK 4
FACEBOOK HEADING TOWARDS 1 BILLION
All the criticism recently directed toward Mark Zuckerberg doesn't seem to have humbled the young CEO. On the contrary, Zuck is boldly predicting it is "almost a guarantee" that Facebook will reach 1 billion members -- up from more than 500 million, today. In slightly more measured words, according to the U.K.'s Guardian, Zuck said this week at Cannes: "If we succeed [in innovating and remaining relevant] there is a good chance of bringing this to a billion people ... it will be interesting to see how it plays out."
By Zuck's calculations, "We are down to just four countries where we aren't the leading social network." Those countries include Russia, Japan, China and Korea. In Russia, Facebook had just 1 million users, but member numbers are "doubling every six months," according to Zuckerberg. As for whether Facebook will ever get around to filing for an initial public offering, Zuck said: "At some point, sure."
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THE 'A-SIDE' - TRACK 5
WINDOWS 7 A BIG HIT
Microsoft says it has sold 150 million Windows 7 licenses, "reinforcing its position as the fastest selling operating system in the company's history," writes The Next Web.
Microsoft has sold 150 million copies in just under nine months, selling seven copies of Windows 7 every second. (Source: http://tinyurl.com/27knrzj )
And Now For Some News ...
30 Billion Videos Watched Online in April
From COMSCOREAccording to a recent comScore Video Metrix service, 178 million U.S. Internet users watched online video during the month, and topped 30.3 billion videos in April, with Google Sites ranking as the top video property with 13.1 billion videos, representing 43.2% of all videos viewed online.
YouTube accounted for the vast majority of videos viewed at the property. Hulu ranked second with 958 million videos, followed by Microsoft Sites, Viacom Digital, and Yahoo! Sites
Read more about it by clicking here.
The 'Thriller' Diaries
From VANITY FAIRThanks to Portland, Oregon's DJ Clarence Duffy for sending me this article.
A great read about the making of Michael Jackson's 14-minute 'Thriller' video, which changed everything in the world of music video when it debuted back in 1983.
Read more about it by clicking here.
EMI to Combine Publishing, Recorded Music Units Under Faxon
From EMIEMI on Friday announced a restructuring plan that will see the company combine its music publishing and recorded music divisions, to be led by former EMI publishing head Roger Faxon.
Read more about it by clicking here.
Google Beats Viacom In Billion-Dollar Lawsuit
From ARS TECHNICAThree years after Viacom filed a $1 billion copyright infringement suit against YouTube, a federal judge threw the case out Wednesday, ruling that the Google unit could not be held responsible for the clips users post online.
Viacom, which plans to appeal the ruling, said it is "fundamentally flawed and contrary to the language of the Digital Millennium Copyright Act, the intent of Congress and the views of the Supreme Court."
Read more about it by clicking here.
FCC To Regulate Internet?
From FINANCIALTIMESThe Federal Communications Commission on Thursday took its first formal step towards the adoption of new regulations for the broadband industry, setting the stage for what could become one of the most expensive lobbying campaigns to hit Capitol Hill by major telecommunications and cable providers.
In a 3-2 vote along party lines, Democrats at the FCC on Thursday agreed to begin formal consideration to adopt new rules for high- speed Internet companies such as Comcast and AT&T, which have until now operated virtually free of the FCC's oversight. Technically, the FCC's majority passed a motion to "open for comment" new broadband rules, the first step to passing the rules.
Read more about it by clicking here.
U.K. Labels Ask Google To Stop Links To File-Hosting Sites
From CNETThe BPI, Britain's record label trade group, has written to Google asking that it remove links to file-hosting sites such as Megaupload and MediaFire -- which are used in some cases to share copyrighted music, CNET News.com reports.
Read more about it by clicking here.
MP3 Founder Robertson Sez EMI Made False Claims
From MICHAELROBERTSONDespite claims in court filings that major record label EMI has only ever made three songs available for free download, a blogger-fueled survey found nearly 1,400 songs from EMI-represented artists available, according to MP3.com founder Michael Robertson -- whose current venture MP3tunes is being sued by EMI for copyright infringement.
Read more about it by clicking here.
Mobile Is No Longer Just Out-Of-Home
From MEDIA POSTThe so-called third screen is increasingly finding itself at home alongside the TV and computer screens, according to a new study.
The report, by media agency Initiative, found that 60% of mobile Web usage is now taking place at home, bringing smartphones closer to the promise of being "always on" devices.
Read more about it by clicking here.
Rdio Taps Music Reports for Rights Administration
Music Reports, a provider of music rights administration services, said on Wednesday that it will provide its services to Rdio, the new online music service from the creators of Skype and Kazaa.
Read more about it by clicking here.
Apple's App Store Does 1% Of Company Profits
From CNN/FORTUNESince its launch in July 2008, it has generated revenue of $429 million for the company
Apple (AAPL) claims to run the App Store at or near break even, and apparently that's not terribly far from the truth.
Read more about it by clicking here.
Microsoft Enables Users To Sample TV, Movies, Music Via Search
MEDIAPOSTMicrosoft rolled out a section related to entertainment on its Bing search engine Tuesday night that allows consumers to watch television shows, get movie information, play games and listen to music without leaving the page. The step aims to make it easier for consumers to click, play, listen and watch.
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.
NUMBER ONE NEXT WEEK:
Eminem's June 21st disc, "Recovery," will set the record for the biggest sales week of 2010 and debut at #1 on the Billboard Top 200 Album Chart next week.
GRACELAND READIES FOR ELVIS' 75TH:
It's Elvis Presley's 75th birthday year, and Graceland is preparing a big celebration. Taking place August 10th-16th at Graceland in Memphis, Elvis Week 2010 will feature a host of special events and concerts, including the finals for the international Ultimate Elvis Tribute Artist Contest, a special screening of "Elvis on Tour" (featuring a newly-remastered version of the award-winning concert documentary), fan club events, charity fundraisers, celebrity guests and more.
FLOWERS IN SEPTEMBER:
The Killers' frontman, Brandon Flowers, will release his solo album, "Flamingo," on September 14th on Island Records.
ROCK BAND NEWS:
Viacom's MTV Games and developer Harmonix unveiled new gameplay modes and instrument accessories for its upcoming "Rock Band 3" game, including a new keyboard and six-string guitar with 102 buttons.
GREG ALLMAN SURGERY:
Allman Brothers Band cofounder Gregg Allman underwent successful liver transplant surgery this week. The surgery caused the band to cancel its performance at Eric Clapton's Crossroads Guitar Festival at Chicago's Toyota Park on Saturday. The Derek Trucks Band will replace the Allmans on the lineup, which also includes Jeff Beck, John Mayer, B.B. King and Buddy Guy.
LIBRARY OF CONGRESS INDUCTEES:
Tupac Shakur's "Dear Mama," R.E.M.'s "Radio Free Europe" and three of Rolling Stones' 500 Greatest Albums of All Time - Patti Smith's "Horses," the Band's self-titled second album and Willie Nelson's "Red Headed Stranger" - are among the 25 recordings that will be inducted into the Library of Congress' Recording Registry.
T-BONE DOES RANDOLPH:
Robert Randolph and the Family Band's new T Bone Burnett-produced album, "We Walk This Road," looks back over the past 100 years of rock and blues music, featuring an eclectic mix of covers that blends traditional gospel songs with tracks by John Lennon, Bob Dylan and Prince.
MICHAEL JACKSON ESTATE $1 BILLION & COUNTING:
Since Michael Jackson's death a year ago, the King of Pop's assets have grossed more than $1 billion, Billboard reports. The money is due to a new record contract with Sony, renewed interest in his catalog, and the concert rehearsal documentary This Is It, already the most successful film of its kind in history.
AND NEVER-SEEN JACKSON PIX TO HEAD FOR AUCTION:
Never-before-seen portraits of Michael Jackson shot by French photographer Arno Bani in 1999 will hit the block this October at the Pierre Berge Associes auction house.
PASSING:
Pete Quaife, the original bassist in the Kinks who played with the British Invasion band from their formation in 1961 through 1969, has died. He was 66.
Quotes of the week
"Woodstock without the burden of legends."
-- Comedian Jeffrey Ross in the press tent, referring to Bonnaroo"When I wake up in the morning, I feel just like any other insecure 24-year-old girl. Then I say, 'Bitch, you're Lady GaGa, you get up and walk the walk today.' "
-- Lady GaGa in the new issue of Rolling Stone"I was like, 'No, I don't know if I want to do this one, Clive. This one's a little challenging.' And he would stay on the phone for at least 45 minutes to an hour, three times in one year, and I was like, 'Oh, lord ...' But then I started realizing that someone with that intense passion of commitment couldn't be wrong, so I had to trust him. And it was incredible."
-- Carlos Santana, talking about Clive Davis's suggesting his next album be another "Supernatural"-style all-star collaboration, but this time on a collection of iconic rock songs by the likes of the Beatles, the Rolling Stones, Led Zeppelin, AC/DC and others. The album is due out in September."He's got more talent in those bangs than I've got in my whole body."
-- Megan Fox, the latest casualty of Bieber fever. And since Megan has so little talent, that's not saying much about Justin Bieber."I'm sure I probably bought weed from him."
-- Cameron Diaz, on former high school classmate Snoop Dogg, to Playboy
The B-Side
FOR THIS WEEK'S COMIC RELIEF... STEVE MARTIN'S TOUR RIDER RELEASED
For any of you that have heard about the demands that rock stars and divas make when they tour, this will surely make you laugh. (Again, a tip of the hat to DJ Clarence Duffy for sending it on)
Read the rest here and laugh: http://tinyurl.com/29sphq9.
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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