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Putting The Music Back Together
July 2, 2010
Have an opinion? Add your comment below. 24 years working in executive promotion capacities at both Capitol Records and at Universal Studios' MCA Records. Recognized as one of the industry's top professionals.
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A piece of art is not a loaf of bread. When someone steals a loaf of bread from the store, that's it. The loaf of bread is gone. When someone downloads a piece of music, it's just data until the listener puts that music back together with their own ears, their mind, their subjective experience ... We live in a connected world now. Some find that frightening. If people are downloading our music, they're listening to it. The Internet is like radio for us ... Treating your audience like thieves is absurd. Anyone who chooses to listen to our music becomes a collaborator.
-- Wilco's Jeff TweedyThis week Eminem's new album, "Recovery," sold over three-quarters of a million copies. It was the biggest sales debut for any album on the Billboard Top 200 chart in two years.
The album leaked on the Internet before the release date, which means of course that potentially millions of people could have already downloaded it onto their iPods, PCs, or burned their own CDs.
Assuming a whole lot of people did hear the leaked album online and then downloaded it, one might then ask the question "Gee, if it leaked on the Internet, how come it sold so many copies?"
Of course, the RIAA and the labels would ask "If it sold this many with an online leak, I wonder how many more we would've sold if it hadn't leaked?"
But what if the leak actually spurred sales of the album? What if people who got to hear the album online really liked it and they bought it anyway? Maybe, just maybe Jeff Tweedy is right then. Maybe the leak of the album acted as one big online broadcast heard by an untold number of music enthusiasts, and it caused them to actually buy the album.
Of course, what happened with Eminem this week isn't going to happen very often. Not because online file-sharing and P2P usage is still rampant, but because not every album that leaks online will be as good as "Recovery." Lots of albums have leaked online in the last few years, and none have had the sales success close to the numbers Eminem achieved this week. Lots of those albums didn't end up selling lots of quantities at retail in the end, either. Maybe, just maybe, those albums just weren't that good.
I've reported in the newsletter that a 2009 study by Forrester Research shows the record industry in one decade, from 1999-2009, went from $14.6 billion to $6.3 billion in revenues. The industry blames that on online piracy. On the other hand, there are studies all over the world that have been done that have shown those who download music illegally also happen to be the biggest consumers of music. Maybe, just maybe, the sales Eminem received this week bear out the latter fact.
Whatever side of the argument you're on, one thing is certain. Even with uncontrollable P2P file-sharing existing, some artists are selling lots of music these days. Maybe, just maybe, the music consumers are acting as collaborators in the marketplace. Maybe, just maybe, they are putting "the music back together with their own ears." The really good music they choose to BUY.
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THE 'A-SIDE' - TRACK 2
RADIO'S MUSIC DISCOVERY SOLUTION
Another great column from Jerry Del Colliano's INSIDE MUSIC MEDIA ... check it out here: http://tinyurl.com/29sxvt9
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THE 'A-SIDE' - TRACK 3
iPHONE 4 ... 1.7 MILLION OUT THE DOOR
Apple this week announced that it sold over 1.7 million iPhone 4 units between last Thursday, when the device first went on sale, and Saturday, June 26th. "This is the most successful product launch in Apple's history," said Apple CEO Steve Jobs.
"The iPhone 4 has once again re-defined the smartphone landscape," according to GigaOm. "Witness Apple's competitors: they are introducing feature packed, big screen devices that are powered by beefy processors."
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THE 'A-SIDE' - TRACK 4
18 MINUTES OF MUSIC VIDEO TO ENJOY
The Fab Faux playing the side 2 Abbey Road suite. If you haven't ever seen the Fab Faux and you're a Beatles fan, you must check them out ... note for note they recreate The Beatles music.
"This is real people playing real physical instruments in a physical space, living their passion, singing their hearts out."
http://brianstorms.com/2010/06/set-aside-18-minutes-sit-back-and-enjoy.html
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THE 'A-SIDE' - TRACK 5
MICROSOFT'S KIN ... ANOTHER MISTAKE FOR THE COMPANY
Microsoft has enjoyed incredible success with its Windows 7 release. Their Kin cellphones are another story.
From an article about on CNET: "Despite a significant TV ad campaign, the phones have gotten comparatively scant attention since their launch. The Kin, designed to target a similar demographic as the Sidekick, has faced steep competition from the iPhone and other smartphones, which don't cost any more per month and offer the ability to run thousands of applications. Over the weekend, Verizon quietly cut the price of both Kins. The lower-end Kin One dropped from $49 to $29, while the Kin Two went from $99 to $49. Those prices require users to sign a new two-year contract and agree to a $29 or higher monthly data plan, in addition to voice service."
Then, just yesterday Microsoft announced it was shutting down the phone line because of paltry sales, just 48 days after the phone was released. (Obviously, the lower prices announced earlier were to sell-off whatever inventory was out there)
It's beginning to look like déjà -vu all over again. Remember the Zune player?
And Now For Some News ...
T-Bone Burnett Speaks Up, Says Lady GaGa's Income From Video Streams Is "Paltry"
From MEDIAPOSTGoogle and Microsoft are seeking ways to please the entertainment industry. Both search engines this week launched separate music services. The move may gain points with recording labels, but it's not clear if they'll satisfy artists. The stakes become higher for everyone as rumors heat up online about Google launching a rival music service to iTunes.
T-Bone Burnett, writer for the best original song, "The Weary Kind" from Crazy Heart, told the audience during a panel discussion on technology that Lady GaGa had 220 billion hits on one music video, but her total income from streaming music sales last year was $10,000 (we were not able to confirm this figure).
Read more about it by clicking here.
Songwriters Ringtone Royalty Rate Decided
From LAW JOURNALA federal appeals court last week upheld the Copyright Royalty Board's rate of 24 cents for songwriters on mobile phone ringtones.
Cell phone ringtones have become a big business, but one unsettled legal question was just how much money copyright owners should get paid for ringtones using their work. The answer: 24 cents, according to the U.S. Court of Appeals for the D.C. Circuit. The court upheld a decision by the Copyright Royalty Board setting the ringtone royalty rate, rebuking a challenge by the Recording Industry Association of America. (Gee, I guess the alleged industry association doesn't work on behalf of everyone, do they?)
Read more about it by clicking here.
ASCAP Fights Electronic Frontier Foundation & Digital Rights Groups
From LAW JOURNALThe association representing 380,000 composers, songwriters, lyricists and others associated with the music industry has begun a fund-raising campaign to stifle groups that support free culture and digital rights.
The American Society of Composers, Authors and Publishers is urging the membership to donate money to battle the Electronic Frontier Foundation, Public Knowledge and even Creative Commons.
Read more about it by clicking here.
RumbleFish Music Licensing Goes Mainstream
From TechCrunchMusic licensing company Rumblefish has debuted a new music program for YouTube users that lets them buy a lifetime, worldwide music license on a particular music track for $1.99, which they can then fully edit into their videos. Visitors to the Friendly Music online store can access Rumblefish's catalog of copyright-cleared songs -- of about 35,000 tracks -- which they can use to create soundtracks for their videos. The service, which launched today but had been announced last week, provides a solution to CG videos getting pulled because they used copyrighted music.
Read more about it by clicking here.
mSpot Debuts Cloud Service For Music Lovers
From PRWEBDigital entertainment distributor mSpot on Monday announced the public launch of its cloud-based music service, which lets users access their music collections over the Internet via computers and smartphones.
Read more about it by clicking here.
Pitchfork Launches Altered Zones
PITCHFORKPitchfork has announced the upcoming launch of Altered Zones, a new sister site that will focus on left-field pop, experimental, and home-recorded sounds.
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.
GAGA SETS DOWNLOAD RECORDS:
Lady GaGa has become the first artist in download history to have three songs ("Poker Face," "Just Dance" and now "Bad Romance") hit the four-million mark.
NO MORE GARAGE BAND:
GarageBand.com, an online music community and digital music store, announced that it will shutter on July 15th after more than 10 years in operation, TechCrunch reported.
SOUNDEXCHANGE WRITES CHECKS:
SoundExchange, the recording industry entity set up to collect and distribute digital music royalties, said this week that it made a record $54.8 million in payments to artists and labels in the second quarter.
PRINCE DOES IT AGAIN:
Prince will give away his new album, "20Ten," in the U.K. with more than 2.5 million copies distributed with the Daily Mirror and the Scottish Daily Record on July 10th. Prince gave away his 2007 album, "Planet Earth," with the Mail on Sunday. That deal that prompted his then-label, Columbia, to decline to release the album in the U.K. Obviously, the Purple One didn't care then, and he doesn't care now. He wants to sell concert tickets, and that he will.
LENNON 70th:
EMI Music will release eight of John Lennon's classic solo albums, digitally remastered, to commemorate what would have been John Lennon's 70th birthday on October 9th.
DARKNESS DELUXE:
Bruce Springsteen is releasing a special version of his 1978 album, Darkness on the Edge of Town, this fall. E Street Band guitarist Steve Van Zandt says the set will feature at least ten outtakes - and possibly more. In an interview with a U.K. radio station, Van Zandt said, "We're doing a little bit of fixes on some Darkness on the Edge of Town outtakes, which is going to be a really fun reissue coming for Christmas."
THE KING REIGNS NO MORE:
Not that it surprised many people, but Larry King announced his departure from CNN this week after 25 years on the air. King's ratings have been declining for awhile. (To watch some of Larry's worst interview moments, go here: http://tinyurl.com/2cgn5jv
EVIDENTLY GETTING YOURSELF WAXED INTO MADAME TUSSAUD'S AIN'T WHAT IT USED TO BE:
At one time, Madame Tussaud's displayed the wax figurines of people who were really famous. This week comes the news that Kim Kardashian is getting her own wax figure at Madame Tussauds in NYC.
TOP 10 IN FORBES:
Forbes Magazine has released their 2010 Celebrity 100 Power list. The Top 10 with earnings are: 1. Oprah Winfrey - $315 million; 2. Beyonce - $87 million; 3. James Cameron $210 million; 4. Lady GaGa $62 million; 5. Tiger Woods - $105 million; 6. Britney Spears - $64 million; 7. U2 - $130 million; 8. Sandra Bullock - $56 million; 9. Johnny Depp - $75 million; 10. Madonna - $58 million.
ONLINE DEMENTO:
After some 40 years on the traditional airwaves, syndicated radio veteran Dr. Demento's show is heading online
DEADLINE FOR COLLEGES:
U.S. colleges and universities receiving Title IV federal aid had a deadline of Thursday to implement new anti-piracy protocols under the Higher Education Opportunity Act (HEOA) of 2008.
PASSING:
Bill Aucoin, who managed and launched Kiss into a major headline act, died this week at the age of 66 of complications from prostate cancer. He also managed Billy Squier and Billy Idol after he parted with Kiss in the early 1980's.
Quotes of the week
"We have a meeting in L.A. in a couple weeks and we're going to sit down and talk. They did a poll and I think it was Madonna, P. Diddy, Howard Stern and myself, and I took 50% or 60% of the vote and that's tremendous. I would love to be a judge on American Idol. I think I would bring a lot to the table."
-- Bret Michaels. Be careful what you wish for, Bret. With Simon gone, the show has no place to go, except down."I'm thrilled young girls are claiming their sexuality for themselves. I love bold women: Madonna and Scarlett Johansson -- sexy and gorgeous, but not only that. And Miley Cyrus -- fantastic! And Lady GaGa. I love the way she's elevated pop to performance art, or dragged performance art down to pop, or maybe made a wonderful amalgam of the two."
-- Dame Helen Mirren tells NY Magazine. Uh, Miley Cyrus?!
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Unconventional Director Sets Shakespeare Play In Time, Place Shakespeare Intended
MORRISTOWN, NJ-In an innovative, tradition-defying rethinking of one of the greatest comedies in the English language, Morristown Community Players director Kevin Hiles announced Monday his bold intention to set his theater's production of William Shakespeare's The Merchant of Venice in 16th-century Venice.
"I know when most people hear The Merchant Of Venice, they think 1960s Las Vegas, a high-powered Manhattan stock brokerage, or an 18th-century Georgia slave plantation, but I think it's high time to shake things up a bit," Hiles said. "The great thing about Shakespeare is that the themes in his plays are so universal that they can be adapted to just about any time and place."
Read the rest here and laugh: http://tinyurl.com/348pla5.
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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