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Prince Sez The "Internet Is Completely Over" ... Maybe For Him, It Is
July 9, 2010
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The Internet's completely over. I don't see why I should give my new music to iTunes or anyone else. They won't pay me an advance for it and then they get angry when they can't get it. All these computers and digital gadgets are no good. They just fill your head with numbers and that can't be good for you.
-- The Purple OneLindsay Lohan was sentenced to jail for 90 days this week. No surprise there. Wasn't it Forrest Gump who told us, "Stupid is as stupid does"?
This week, the 'Stupid Is As Stupid Does' award goes to Prince, who has evidently been "standing in the purple rain" for far too long.
Dear Prince: iTunes is not a label; it's an online store. Labels gives advances, stores sell music. iTunes has sold over 10 billion songs. 10 billion. That means a whole lot of artists received some money from their sales of music on iTunes. It also means a whole lot of music consumers bought an awful lot of music they wanted to BUY, not steal, and I don't think any of them think "computers and digital gadgets are no good."
Prince's comments this week spurred a flurry of remarks by other artists who disagree with him. (Radiohead, Beck, Trent Reznor, to name a few. You can read more about their successes online here: http://tinyurl.com/26krp66 )
Prince also announced he was going to release his latest album, "20Ten," as an add-on to European newspapers and an upcoming issue of German Rolling Stone. Nothing new here.
Back in July 2007 Prince distributed his Planet Earth CD in the Sunday edition of London' Daily mail newspaper. Back then I wrote about here in the newsletter and said, "Sunday circulation of the Mail is estimated to be between 2 to 3 million. That means that's how many copies of Prince's new album will be distributed in one day. In essence, Prince sells a couple of million albums in one day. Not a bad day for the 'Purple One' at all. The financial information about how much the Mail paid Prince for this deal was not disclosed, but I would imagine Prince got a nice big fat check ... Prince's label, SONY/BMG, decided to pull the album from its U.K. release after Prince announced this deal. I'm guessing Prince expected that and doesn't really care. At a time when CD sales are dropping precipitously all over the globe, he took matters into his own hands and did what he thought was best. He's also giving the CD away to people that purchase concert tickets to any of his 21 London area concert dates. As of this moment, he's reportedly already sold over 200,000 tickets. Add the concert money he'll earn to the money he received from the Sunday Mail deal, and you can see how loud his cash register is ringing. Lots of CDs sold, lots of concert tickets sold."
Obviously, Prince's Lotusflow3r website, which launched in January 2009 to accompany the release of a triple-disc album, didn't deliver as much as he thought it might. Then again, Prince asked his fans to pay a membership fee in order to access Prince videos, music and more. This from a Rolling Stone article this week: "Ironically, a decade ago Prince was one of the artists openly endorsing the Internet in an age of Napster, releasing his remix album Rave In2 the Joy Fantastic exclusively to subscribers of his NPG Music Club, which also came to an abrupt end in 2006." (Source: http://tinyurl.com/3x7t6c3 )
Obviously, Prince likes the revenues he generates from sales of his music via newspapers. That revenue, and the promotional tie-ins, also generate more ticket sales when he tours. There's nothing wrong with any of his thinking regarding these deals. The problem is his thinking the "Internet is completely over."
Prince should realize that the generation of people listening to music today are all connected digitally one way or another, online and off. Most of them listen to music on their iPods or other MP3 players, most of them spend a great deal of time online on their computers, or online on their smartphones. His comments about the Internet are probably being laughed about by those same people he hopes will come to his concerts or buy his future albums (unless he plans on giving them all away via newspapers for lots of money ... but at the rate that newspapers are losing money these days, I don't think that's a good bet). The comments are certainly being laughed about by almost every person working in the tech industry all over the globe.
Maybe Prince didn't see the news this week that CD sales are down and digital music sales are up in the first half of 2010 (Read that story here: http://tinyurl.com/2ajxrhh ).
If he had seen it, maybe he wouldn't have made such an inane comment.
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THE 'A-SIDE' - TRACK 2
THE 'FUTUREHIT DNA' MID-YEAR REVIEW
Jay Frank is SVP/ Music Strategy for CMT and he oversees music strategy as it relates to all of the network's on-air and digital music initiatives across all properties, including CMT, CMT.com, CMT Mobile, games, touring and other businesses. He works closely with music labels and artists to create multi-platform promotions that leverage all of the CMT brands to enhance artist reach and drive awareness for the channel.
I had the pleasure of meeting Jay a year ago here in Las Vegas when he was in town for the annual Country Music Awards show and good friend and SonyBMG Nashville music exec, Butch Waugh, introduced us. Jay became a reader of the newsletter and sent me a copy of his book "FutureHit DNA- How The Digital Revolution Is Changing The Top 10 Songs" as soon as it was published.
The book is a fascinating read for anybody in the music biz, or any artists, producers, wanting to fully digest the analysis Jay has provided. This from a description of the book on amazon.com, "The avenues of choice and consumption make it too appealing for music fans to ignore. Millions of music fans have already jumped in head-first with iPods, internet radio, file trading, online music videos and streaming from personalized community pages and websites. While the makeup of this digital landscape has been well documented, there has never been any detailed analysis to what this all means for the music creation process. Listening habits are changing drastically. The methods in which music gatekeepers can understand what music will become hits are rapidly growing deeper than ever before."
This week Jay sent out an e-mail and shared his findings on the Top 50 selling downloads so far this year. (Great way to spend a holiday weekend, Jay!)
The findings back-up almost all the findings Jay has discovered about specific characteristics of hit songs in the digital era, and talked about in his book. (If you haven't read it yet, I highly recommend it)
For some great info, check out his mid-year overview at: http://www.futurehitdna.com/archives/640
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THE 'A-SIDE' - TRACK 3
EMINEM OVER 1 MILLION IN 2 WEEKS
Eminem's "'Recovery" album has sold over 1 million copies in just 2 weeks and holds onto the #1 spot on the Billboard Top 200 Album Chart.
I reiterate what I said last week in my commentary: "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 4
GRAMMY MAKES CHANGES
This week NARAS (the National Academy of Recording Arts & Sciences) announced that the eligibility rules in the Best New Artist category have been amended. (Changes were also made in a few other categories)
From the NARAS release regarding Best New Artist category: "The current eligibility requirements state that the artist must have released, as a featured performing artist, at least one album but not more than three; and the artist must not have been entered for Best New Artist more than three times, including as a performing member of an established group. Any previous Grammy nomination for the artist as performer precludes eligibility in the Best New Artist category (including a nomination as an established performing member of a nominated group.) These rules remain in effect, with the following exception: If an artist/group is nominated (but does not win) for the release of a single or as a featured artist or collaborator on a compilation or other artist's album before the artist/group has released an entire album (and becomes eligible in this category for the first time), the artist/group may enter this category in the eligibility year during which his/her/their first album is released."
You can read more at: http://tinyurl.com/38rhnc2
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THE 'A-SIDE' - TRACK 5
YOUTUBE MAKING ITSELF MORE LIKE YOUR TV
Further positioning itself as a TV alternative, YouTube has launched a new user interface option named "Leanback," with which users can more easily browse content at a distance.
"The design has sparked speculation that it is intended to complement the first generation of Google TV devices," writes Computerworld. "The new interface should help YouTube overcome the so-called '10 foot' problem, where interfaces which are highly effective at short distances become unusable with a remote over longer distances."
"The world's biggest video site wants to dominate every screen where content can be viewed and created," suggests the BBC. "With Leanback, YouTube is now vying for the attention of the user in the living room."
And Now For Some News ...
Apple Has Cracked The Consumer Code
FortuneCalling the iPhone 4 debut "Apple's biggest product launch ever,"Fortune magazine is commending the tech giant for successfully building a recurring revenue stream from a growing base of loyal users. And it's not the only one. "Mission accomplished," writes Piper Jaffray's Gene Munster in a report to clients issued early Friday.
"Apple has in three years built brand loyalty in the phone market that compels users to upgrade to the latest version and wait in line for one to six hours to pick up their iPhone." Indeed, 77% of the iPhone 4 buyers that Munster's team spoke to were upgrading from a previous version. That's up from 56% in 2009, and 38% in 2008. What's more, 'While we think Apple will sell between 1.0 million to 1.5 million iPhones in the first three days (including preorders)," writes Munster, "the actual number is largely irrelevant ... Apple is tapping into the global consumer spending sweet spot, mobile, and as a result iPhone numbers are going higher in the coming years."
Read more about it by clicking here.
Concert Ticket Sales Drop Big In First Half Of 2010
REUTERSCombined ticket sales for the biggest concert tours in North America during the first half of the year fell to their lowest point since 2005.
Read more about it by clicking here.
The Beatles Still Not Available On iTunes
WSJ/ALL THINGS DIGITALApple Records announced this week that it was releasing some albums on the label by artists other than the Beatles (Badfinger, James Taylor, Mary Hopkins, Billy Preston and others ) for digital downloads this fall.
The announcement mentioned nothing of about the possibility of the Beatles catalog becoming available soon. What goes on ? (And on?) Every single day the Beatles catalog is not available for sale online at iTunes and elsewhere it means that tens of thousands are still downloading the Beatles music illegally.
Read more about it by clicking here.
Music Video Product Placement Increases
NEW YORK TIMESLady Gaga is at the forefront of yet another trend, it appears: The increasing incorporation of brand pitches into music videos. Her "Telephone" video with Beyoncé includes product placements from Miracle Whip, Virgin Mobile and other brands, but she's hardly alone. Product placement in recorded music grew 8% in 2009 compared with 2008, while overall paid product placement declined 2.8%, according to a new report by PQ Media.
There are at least two reasons for the trend, Joseph Plambeck reports. First, videos have moved from TV to the Internet. Second, record labels hope to make videos a revenue source and not just a marketing tool for selling CDs. But at Atlantic Records, at least, musicians have the final say over whether a product will be included, says Jonathan Feldman, VP for brand partnerships. Atlantic has turned down alliances that aren't a good fit.
Read more about it by clicking here.
Mediation In The Ongoing Thomas-Rasset Case Fails, RIAA Gets The Bill
ARS TECHNICAMinnesota's top federal judge, Michael Davis, certainly seems like a man who just wants the (in)famous Jammie Thomas-Rasset peer-to-peer file-sharing case on his docket to just go away. And the recording industry, which has prosecuted Thomas-Rasset through one name change, two trials, and three years, appears to be under the distinct impression that it's getting picked on.
If you still require any proof whatsoever that the RIAA wastes the industry's time and money in pursuit of ridiculous judgments, read on.
Read more about it by clicking here.
Sirius XM Adds 583,000 Subscribers in Q2
MARKETWATCHIt looks like all those people who think that satellite radio isn't going to make it, may be proven wrong. (For now anyway)
Read more about it by clicking here.
3D TV Future Not In Focus Just Yet
CHICAGO TRIBUNEThe first sales figures on 3-D TVs and a new consumer survey indicate that the industry has a long way to go before the technology catches on in a big way, if it ever does. In the sets' first three months on the market, beginning in February, consumers nationwide spent about $55 million on 3-D-capable TVs and related equipment, according to an NPD Group. (The average price of the set is $2,500.)
Paul Gagnon, an analyst with market research and consulting firm DisplaySearch, calculated that based on the NPD figures, about 20,000 of the flat-panel sets were sold by those major retailers. That's tiny compared with the approximately 7 million TV sets overall that were shipped to retailers around that time frame, according to the Consumer Electronics Association trade group. Awareness of the technology is middling, but in 2014, Park Associates estimates 80% of TVs sold will be 3-D capable.
Read more about it by clicking here.
Wilco Sez Goodbye To Nonesuch, Considers Own Label
ROLLING STONEWilco have become the latest band to ditch a major label to explore their own independent options: A rep for Jeff Tweedy and Co. has confirmed to Rolling Stone.
Read more about it by clicking here.
GAGA BIGGER THAN OBAMA:
Last week Lady Gaga broke 10 million followers on Facebook making her the first living person to have so many friends on the social networking site. She had been running neck and neck with President Obama, bit surpassed him.
MORE GAGA:
Lady Gaga - The Remix, will be released on August 3. The Remix has already sold well internationally. The U.S. version of The Remix features 10 songs from The Fame and The Fame Monster, including Gaga hits like "Just Dance," "Poker Face," "LoveGame," "Paparazzi," "Bad Romance," "Telephone" and her latest, "Alejandro."
BLOCKBUSTER NO LONGER LISTED:
Blockbuster Video announced last week that its shares will be delisted from the New York Stock Exchange, after the company failed to receive enough shareholder votes to move forward with plans to regain compliance with exchange require.
WHAM BAM AGAIN:
Singer George Michael was arrested in Hampstead, London, on suspicion of being unfit to drive this week when police were called with reports that a car had crashed into a building.
"IDOL" TOUR IDLING:
It wasn't a great year for "American Idol" and it sure didn't compare to last year when Adam Lambert drove the show to great ratings and generated great ticket sales for the show's summer tour. Evidently, the public's lack of interest in this year's crop of contestants is being reflected in poor ticket sales. This summer's "Idols Live" Tour just launched on July 1st, is already in trouble. Several shows have been rescheduled or even canceled altogether.
MOBILE YOUTUBE:
Google's YouTube on Wednesday launched a revamped version of the mobile version of its website, which the company says is now serving 100 million videos a day.
PAUL SINGS TO RINGO ON HIS BIRTHDAY:
Those attending Ringo Starr's 70th birthday show at Radio City Music Hall got a great surprise. After Ringo did a show with his All-Starr band, Yoko Ono, Joe Walsh, Steve Van Zandt, Angus Young, Jeff Lynne, Nils Lofgren, Max Weinberg and Foreigner's Mick Jones came onstage to sing "With A Little Help From My Friends." But the frosting on Ringo's birthday cake when right after that Paul McCartney came onstage to sing The Beatles "Birthday." (From the 'White Album) Indeed, "a splendid time was guaranteed for all."
MY SPACE PAID SITE?
MySpace Music, the joint venture between News Corp. and the major record labels, is considering launching a paid subscription service before the end of the year.
The Music Industry Past, Present & Future, And The Internet I answer questions on EconTalk
I 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.
Quotes of the week
"I'm possibly the only person living in Hollywood that has no intention of acting."
-- Ex-Spice Girl and fashion designer Victoria Beckham, to PEOPLE. Well thanks for the news, Victoria, And we thank you for not even attempting to act. You can't sing, so acting would certainly be a stretch.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Internet Opens Up Whole New World Of Illness For Local Hypochondriac
MERIDEN, CT-All her life, Janet Hartley has suffered from a host of ill-defined viruses and inexplicable aches and pains, diagnosing herself with everything from diabetes to cancer. But ever since discovering such online medical resources as WebMD, drkoop.com, and Yahoo! Health, the 41-year-old hypochondriac has had a whole new world of imaginary illnesses opened up to her.
Read the rest here and laugh: http://tinyurl.com/2aqcn7g.
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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