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Vinyl Ain't Going Away
October 8, 2010
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The one thing that has survived intact has been vinyl record sales. There are vinyl reissue labels and labels that now do better business with their vinyl releases than they do with CD releases. Obviously the primary mode of music is going to be electronic, but people still want to have permanent evidence of their appreciation of a band. Hi-fi shops are doing great business selling record players. I don't see the vinyl record disappearing in my lifetime.
-- Steve Albini, in GQ magazine (See link to interview with Albini in news stories below)Over the past few years I've written many articles about the comeback of vinyl records, and included dozens of articles on the same subject from various sources as well.
The passion that music consumers have for vinyl is contagious, and it appears that vinyl record stores are popping up more frequently all across the country, and other record stores find themselves once again stocking vinyl titles and inventory as the demand grows year over year.
There's a myriad of reasons why vinyl is having this rebirth, too many to list here, but I decided that talking to people in this segment of the industry would be interesting to many readers. Starting this week, I will talk to labels experiencing growth via their vinyl titles and catalog, people operating vinyl stores, people who run vinyl swap meets, people dealing in rare vinyl, and others who have never given up their turntables and vinyl for the digital world. I'll run interviews with people as often as I can find time to do so. Any segment of music retail that shows as much passion and growth as this (even if the actual dollar amount annually is still insignificant to all major labels) deserves attention.
This week, I kick it off with an interview with Marshall Blonstein, founder and president of Audio Fidelity and Morada Music and Morada Vision. (http://www.audiofidelity.net)
Marshall Blonstein started his long industry career, first as a promotion executive at ABC and Epic Records, then as a principal and co-founder of Ode Records, one of the greatest independent success stories in music business history. With Ode, Blonstein helped foster the success of Carole King's landmark and timeless "Tapestry" album and Cheech and Chong's memorable "Big Bambu," a multi-Platinum album that set a new standard for comedy records; and he built two of the biggest cult-film franchises, which still draw loyal audiences today -- "The Rocky Horror Picture Show" and Cheech and Chong's "Up in Smoke."
He then served as President of Island Records, the label that virtually single-handedly broke artists like Steve Winwood and Robert Palmer to a worldwide audience and launched the career of reggae's noted spiritual spokesman, Bob Marley.
Blonstein was among the first to recognize the value and future of the compact disc and turn that foresight into successful and highly-respected specialty record labels. In 1986, he founded DCC Compact Classics; a company that became the premier audiophile imprint in the marketplace, as well a mainstay in the reissue arena. Blonstein's foresight let DCC take full advantage of the marriage between digital technology and the massive and colorful back catalog of rock and pop classics. Among its many major achievements, DCC released titles by The Eagles, The Doors, Elvis Presley, Jethro Tull, The Beach Boys, and Nat King Cole. In 1999, in conjunction with the Sinatra family, Blonstein created Artanis Records where rare recordings -- including "Sinatra '57 Live in Concert"; and "The Summit," featuring Dean Martin and Sammy Davis, Jr., found a home.
Additionally at DCC were an impressive collection of entertaining compilations, among them "Music for a Bachelor's Den," noteworthy as the very first lounge compilation series; "Divas of Dance"; "Night Moves"; "Rock the First"; and the "Cosmopolitan" and "Omni" musical series in association with Cosmopolitan and Omni magazines. After exiting DCC in 2002, Blonstein joined forces with John Paul DeJoria to establish Morada Music/Audio Fidelity as an imprint from which to explore even newer technologies and opportunities.
Audio Fidelity's audio releases include the Beach Boys, Simon & Garfunkel, Rod Stewart, Stevie Wonder, The Doors, Jethro Tull, Linda Ronstadt, Cat Stevens, The Pretenders, Yes, Alice Cooper, Deep Purple, Lynyrd Skynyrd, The Doobie Brothers and Bob Marley, just to name a few.
Q. How long have you been has Audio Fidelity been in business?
MB: I started Audio Fidelity in 2001; I had just resigned from DCC Compact Classics after 15 years.
Q. What gave you the idea that there would be a market for to manufacture 24K Gold CDs ... and what are the differences between them and a normal CD?
MB: After 15 years at DCC we had built up a great reputation on the world's stage for our 24K and 180+ vinyl titles. The market for quality titles will always be there. There's a group of people worldwide who really do appreciate great music. I think there always will be. The difference between a traditional CD and an Audio Fidelity 24K CD is the care and the effort we put into the title. We always search out the best source for the master and with our two engineers, Steve Hoffman and Kevin Gray, we feel we have the two best mastering engineers in the business. We always research the packaging to ensure that we can duplicate the original visual experience as well as the finest audio experience for anyone who buys an Audio Fidelity 24K. The gold disc has always given us instant recognition with our see through slipcase. Whether it's in print, on the Internet or in a retail outlet, our 24K titles are instantly recognizable.
Q. When did you start making 180+ virgin vinyl records available, and explain what 180+ means? \
MB: The term "180+ vinyl" really refers to the density or the thickness of the vinyl used in manufacturing. Most traditional vinyl is 120g in thickness -- much more likely to warp. We always insist only virgin vinyl is used, never recycled vinyl in the manufacturing process. We started making vinyl back in the '90s with DCC Compact Classics. When I started Audio Fidelity in 2001, one of our first releases were John Lee Hooker and Lightnin' Hopkins, both 180+ vinyl titles.
Q. The vinyl segment seems to be growing year over year ... slowly, but it's growing. While it's a niche market, how do you account for the growth of vinyl records and stores that carry vinyl?
MB: The traditional music retail stores as we once knew them are gone, at the same time there's a strong traditional "unique" retail base of retailers that have found a way to do more than survive; they're thriving. When CDs first came out, there were unique. It was a new format ... digital. Vinyl and cassettes starting declining rapidly in sales. The uniqueness and the improved sound quality made the CD an almost instant success, but it lacked the emotional connection consumers experienced with vinyl. The resurgence of vinyl shows us that connection is being made again ... the consumer likes to hold a vinyl LP, study at the artwork. The sound quality of vinyl, when mastered properly from the proper source, is like nothing one can get from CD sound. It has a special warmth to it. It's called the "sweet sound of vinyl". It's now become a very "hip" format again, and when you see consumers shopping for vinyl at stores, you see them spending more time looking to buy music.
Q. How do you go about choosing titles you want to get to release on vinyl or 24K CD?
MB: We're always open to suggestions and we get many suggestions every day. There's a great enthusiasm that the consumer shares with us when they're requesting titles what we put on 24K or vinyl. We're also very aware of what titles the labels are willing to license. So it's a balancing act between what we would like to release, what the consumers are asking for, and what the labels will license. In some cases, we've waited several years to get a title that we've wanted to release. Our recent Stevie Wonder release, "Talking Book," and our upcoming release of Stevie's "Music Of My Mind" were first requested in 2003. So, as you can see, sometimes one needs to be patient. There are so many things that go into license of a title. In some cases artist approval, in some cases contractual restrictions, all these elements come into play when licensing a title.
Q. Do you think the major labels are ignoring what's happening with vinyl? Or is it just not a segment big enough to merit investment in on their part?
MB: The major labels are well aware of what's happening with vinyl and they've all entered the market at one time or another with different degrees of enthusiasm. I know that Warner has an aggressive program with vinyl. Sony, UMG, and EMI all are releasing vinyl in the market. It seems that companies like Audio Fidelity, Mobil Fidelity, Acoustic Sounds are much more visible.
Q. How do you view the current state of music retail? Are your products unaffected by what's happening online?
MB: The state of retail is changing almost daily. When we talked about retail 10 years ago, we were referring to the traditional brick-and-mortar store and the large retail chains such as Best Buy, Tower Records, Musicland, etc. As we all know, most of the large music retail chains are now gone. When we talk about retail today we're talking about all sales no matter where they come from: brick-and-mortar big box stores, online, mail order, etc. Retail has expanded because of the Internet, and our product is really enhanced by what's happening with online sales. We get orders from people living in Croatia, China, Germany, Australia, all around the world. People all over are now able to buy our 24K and vinyl titles because of the Internet. The Internet enables us to advertise and market our titles to a broader audience worldwide. The phenomena of downloading doesn't effect us at all. You can't download vinyl and even if you could, you'd be going from an analog format to a digital format and losing the whole idea of vinyl. If you were to download one of our 24K titles you would lose the magic that we spend so much time creating to make the audio on that CD so much better.
Q. What other products does Audio Fidelity carry?
MB: The parent company of Audio Fidelity is Morada Music. Morada Music releases titles that are not 24K or 180 vinyl. Titles such as Spirit's California Blues Redux, Scott Holt's Tribute to Buddy Guy, Walking With The Kings, etc. We also have our Tangiers DVD line which includes DVDs by Elvis Presley, Lene Lovich, The Beatles, Playboy After Dark, etc.
Q. Will Audio Fidelity ever consider securing titles by indie artists and bands?
MB: We're always open to trying new artists. We have in the past and we will in the future. It's still a pretty exciting to participate in breaking a new artist.
Q. Can consumers find your CD and vinyl titles in retailers, or is it strictly via online sales? Do you do online advertising?
MB: Audio Fidelity titles can be found at retail as varied as Best Buy to Amoeba. Online sales are certainly growing, but we still spend a lot of time, resources and effort into keeping very visible at retail.
Q. Any last thoughts?
MB: Music really is the soundtrack to our lives. In the future, the format and how music is brought to the consumer will change, but the passion and the listening experience will always be part of our lives. Music isn't a luxury, it's a necessity.
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THE 'A-SIDE' - TRACK 2
THE iPAD MARCHES ON
The iPad continues to roll on and on in sales. iPad sales are now outpacing the iPhone in initial year, and have now surpassed sales of the iPhone and the DVD player combined, making it a "runaway success of unprecedented proportion," a Bernstein Research analyst said in a note to investors earlier this week.
With Apple selling over three million iPads in the first 80 days, and an estimated 4.5 million over the three months ending in September, Bernstein Research retail analyst Colin McGranahan said that the tablet is destroying all previous records of consumer electronics adoption.
The tablet market may have more new entries, but right now it will be hard for any competitor to capture any significant alternative market share.
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THE 'A-SIDE' - TRACK 3
THE BLOCKBUSTER STORY ... A BAD MOVIE INDEED
I wrote a few short pieces previously on the Blockbuster bankruptcy and how Netflix and Redbox ate their lunch.
Last week TIME magazine had an article, 'Why Blockbuster Couldn't Avoid Bankruptcy', and it sheds more light on the story. Writer Stephen Gandel says, "When Viacom owned Blockbuster, they tried to turn the stores into a dumping ground of Viacom merchandise. Dolls and toys and books and other stuff." Like popcorn and pizza. Natural as it may sound, they didn't sell. Check it out here: http://tiny.cc/5c0ta
In Ad Age, meanwhile, eMarketer senior analyst Paul Verna tells us why Netflix has already won the digital TV/Video war against the likes of "newcomers" such as Google, Apple, Amazon, Hulu and nearly the entire entertainment industry. "As long as Netflix continues to get the content licenses it needs to keep its users happy, their attention -- and dollars -- will continue to go to Netflix," he says.
Check that out here: http://tiny.cc/w1pz4
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THE 'A-SIDE' - TRACK 4
THE KARMA CASH REGISTER RINGS AGAIN, THIS TIME FOR A FORMER ENEMY OF RADIO & RECORDS
The man who (in my opinion) extorted millions of dollars from both the record labels and radio while New York's Attorney General, Eliot Spitzer, then later got caught with his pants down (literally) when as New York's Governor he was exposed as a client of a high-priced prostitution ring, debuted this week on a CNN primetime talk show with conservative journalist Kathleen Parker.
The show received scathing reviews, with comments on Tuesday ranging from "unbearable" to "icky" and "obnoxious."
The New York Post headlined its review "Freak show unbearable to watch," while the Baltimore Sun summed up the first show as "a load of obnoxious, self-important noise."
And this from Radar online: "The Manhattan madam who supplied the former New York Governor Eliot Spitzer with high-priced call girls has labeled his new CNN primetime show a bore -- "just like he was in bed".
The karma cash register just went ka-ching.
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THE 'A-SIDE' - TRACK 5
APPLE'S iPHONE COMING TO VERIZON
It's been rumored for months all over the Internet, but this week the Wall Street Journal reported that the iPhone will be available from Verizon by year end.
According to The Journal, mounting competition from Google and its Android mobile operating system has inspired Apple to finally break its exclusive carrier relationship with AT&T.
Read about it here: http://tiny.cc/am8rq
And Now For Some News ...
The Echo Nest
THE ECHO NESTThe Echo Nest makes music applications smarter. Powered by the world's only music machine learning system that actively reads about music and listens to music everywhere on the web, The Echo Nest opens up a huge repository of dynamic music data for every stakeholder in online music - from independent developers to the largest media companies in the world. To date, over 80 music applications have been built on The Echo Nest platform.
Read more about it by clicking here.
Sony Music Entertainment Launches Beta for Classical Music Store Ariama.com
PR NEWSWIREAs anticipated, Sony Music has launched a one-stop shopping solution for classical CDs and digital downloads from more than 50 major and independent labels
Enhanced search tools make buying music easier and more enjoyable, and it's a terrific looking website.
Read more about it by clicking here.
Streaming Ad-Supported Music Service, We7, In UK Loses Over $5 Million
THE TELEGRAPHThe viability of free music streaming websites is in question again with news that We7, the British music website that allows users to listen to songs for free online, suffered a net loss of £3.66 million, according to its 2009 financial results filed to Companies House.
The losses have lead some industry experts to question whether the free, advertising-supported streaming model used by We7 and similar rival services, such as Spotify, are financially viable in the long term.
Read more about it by clicking here.
Punk Pioneer Steve Albini On Music Festivals And Why He Hates The Music Industry
GQ MAGAZINESteve Albini was the engineer behind universe-altering neo-punk records like The Pixies' Surfer Rosa and Nirvana's In Utero, as well as lead singer/guitarist of seminal Chicago noise-rock band Shellac. He has very outspoken independent mindset and his interview makes for good reading.
Read what he has to say about the mainstream music industry, his thoughts about indie bands, and how the Internet has empowered more bands than ever.
Read more about it by clicking here.
The Bob Dylan Mono Recordings 1962-1967
CNETCNET's hi-end audio columnist, Steve Gutteneberg, reviews the new Bob Dylan mono collection and talks to reissue producer Steve Berkowitz to get more details about how the transfers were done.
Read more about it by clicking here.
Sirius XM Increases Year End 2010 Subscriber Base
PR NEWSWIREMel Karmazin, CEO of SIRIUS XM Radio, announced this week that the company expects to finish 2010 with approximately 20.1 million subscribers, an all-time subscriber high for the company. SIRIUS XM's projection implies the company now expects net subscriber additions of approximately 1.3 million in 2010.
Read more about it by clicking here.
The Logitech Speaker Lapdesk ... A Great Idea
CNETCNET is often sticklers about good speakers in laptops because not many of them really offer anything to top what you'll get out of headphones.
Logitech's new lap desk, the N550, could address the problem in a jiffy with its built-in array of stereo speakers. In addition, the N550 also acts as a comfortable heat-shielding surface for your laptop.
Read more about it by clicking here.
A BILLION FOR GAGA AND BIEBER:
Lady Gaga and Justin Bieber are set to become the first artists to pass one billion views on YouTube, according to analytics firm TubeMogul. The company estimates that Gaga will pass the milestone around 20 October, while Bieber is set to reach it around 1 November. They're well ahead of the third most-popular artist on Google's video site, Michael Jackson
YEAH, BUT I DON'T THINK ANYBODY WILL REMEMBER THEM IN 5O YEARS:
With six debuts on this week's Billboard Hot 100, the cast of "Glee" will pass the Beatles for most non-solo-act appearances in the chart's 52-year history.
FARM-AID RESULTS:
This past weekend's Farm Aid benefit concert in Milwaukee, which drew 35,000 people, raised over $2 million, from ticket sales alone, for the owners of family-run farms.
SO FAR NO BOOKS BY ANY EX-MUSIC BIZ EXECS HAVE SOLD, BUT HERE'S ANOTHER:
Ex-Sony Music head Tommy Mottola wrote his autobiography, "The Last Starmaker," and it will be published by Grand Central Publishing for release in early 2012.
YAOLHOO?:
Rumors continued all over the Internet this week about the possibility of a mega-merger between AOL and Yahoo.
MAYBE YOU SHOULDN'T PUT A DOLLAR SIGN IN YOUR NAME:
In response to a $14 million lawsuit filed against her by a former manager, Ke$ha said that her 2006 contract with DAS Communications should be voided because the company was unlicensed in California, a violation of the Talent Agencies Act.
STAYING ON THE ROAD:
Bob Dylan has tacked on an additional 12 concerts to his autumn jaunt, including three nights at New York's Terminal 5 on November 22th-24th.
RING-DING-DING-DINGY DOWN:
Performing rights organization BMI projects that the U.S. market for mobile ringback tones will fall 7.2% in 2010, to $181 million from the $195 million reported in 2009.
JERSEY BOYS HEADED FOR THE BIG SCREEN:
The Tony Award-winning Broadway musical will make the jump to the big screen: GK Films have bought the rights ... and Frankie Valli will serve as an executive producer.
BRAXTON BROKE AGAIN:
Singer Toni Braxton, reportedly $50 million in debt, has, for the second time, filed for Chapter 7 bankruptcy. Among her creditors: AT&T, the Flamingo Hotel in Las Vegas and Orkin Pest Control. (Probably had Orkin because too many creditors were "bugging" her)
BROADWAY ROCK OF AGES GETS TWISTED:
Twisted Sister rocker Dee Snider will join the Broadway musical "Rock of Ages" for an 11-week run starting October 11th.
DICK GRIFFEY, R.I.P.
Dick Griffey, 71, founder of the Solar Records label, died on Sept. 24th in L.A. after complications from a quadruple bypass surgery. Solar stood for Sound of Los Angeles Records, and was launched by Griffey in 1977 as a spi-noff from Soul Train Records, the label he started with the show's host Don Cornelius
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
"Is that on PBS?"
-- Zach Galifianakis, claiming ignorance about" The Jersey Shore," on Jimmy Kimmel Live. (And of course, it couldn't be on PBS because it would lower their viewers' IQ)"The music industry was asleep at the wheel and didn't have the balls to go and sue every fresh-faced, freckle-faced college kid who downloaded a clip, so now we're left with hundreds of people without jobs,"
-- ne Simmons, at MIPCOM this past week"I definitely saw a bit of irony in that. But for me personally, at the time that Napster came out, it sort of hit the scene in a big way. I was probably 19 or 20, the age that I would have been going to college had I not avoided that to try not to have a real job. But I found myself emotionally -- I remember what it was like -- I found myself emotionally actually identifying more with the defendants than-the plaintiffs being the record labels who were suing these college kids for downloading music. [whispering] I probably would have done it myself.
-- Justin Timberlake, commenting on his playing Napster and Plaxo founder Sean Parker, in 'Social Network'"Looks like today's show is brought to you by the number 38 and the letter double D."
-- Amy Poehler, in a skit with cleavage-baring Katy Perry that spoofed the singer's controversial Sesame Street segment with Elmo, on SNL
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Quiet Riot Speaks Out Against Nation's Poor Metal Health Care
LOS ANGELES-In their first public appearance since breaking up three years ago, surviving members of the hard-rock band Quiet Riot reunited Friday to raise awareness of the urgent need for metal health care reform.
Read the rest here and laugh: Click Here.
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
Smart Marketing Consulting Services
Smart Marketing Consulting Services has been in business sixteen years, and consults clients in the music, entertainment, attraction, media, and technology industry on branding, marketing, online exploitation, maximizing new media, and more.
"And the beat goes on, the beat goes on ... drums keep poundin' rhythm to the brain."
"Work is life, you know, and without it, there's nothing but fear and insecurity." -- John Lennon
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