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A Million Reasons To Celebrate...And To Think
November 5, 2010
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"I'm intimidated by the fear of being average."
-- Taylor SwiftLast week I noted that Taylor Swift's new album "Speak Now" was expected to explode at retail. Explode it did, selling over one million copies the first week. She will probably sell another million in the next two to three weeks.
Last week I wrote "An artist who sells this many albums today at retail, proves once again that despite all the illegal downloading and file-sharing that exists, when the artist creates a great album of great music, it sells BIG time. Of course, that's no surprise or revelation, it just means that the RIAA and the labels can't blame the Internet for all their problems. It's obvious great talent, coupled with great artist development, goes a whole lot further than those records put out by mediocre talents that contain only one or two decent tracks. And every time artist like Taylor Swift, Eminem, Lady GaGa, Lady Antebellum and others sell multi-platinum, it's apparent that the industry needs more real artists and less disposable flavor-of-the-month music."
This week should be a clarion call to every executive at every label who might be saying, "If only we had a few more Taylor Swifts on our label..."
I have no doubt that there are new and yet undiscovered artists out there who write great songs, and are doing everything they can to expand their audiences locally, regionally and hopefully, nationally. I have no doubt some will make it and be the next bunch to reach the same heights one day as Taylor, Lady GaGa, Eminem, Lady Antebellum, and others.
It isn't easy to find that talent. That job falls on the shoulders of good A&R people, or just plain old good music people in any capacity that hear something they believe is so special, they are willing to attach their name to it. (Again, congratulations to Scott Borchetta at Big Machine on this incredible week with Taylor)
Once upon a time in the record biz we witnessed artists selling a million a week often. Yes, they were the big artists. But the ones we worked long and hard to get to those levels. It was all part of long-term artist development thinking and strategies.
Yeah, I know. "It was a different time...it's all changed now."
Really?
This week a young lady by the name of Taylor Swift sold a million albums.
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THE 'A-SIDE' - TRACK 2
THE GIFT OF MUSIC ... AND THE RIAA GIVES US YET MORE EVIDENCE OF THEIR INANE AND INSANE BEHAVIOR
Well, it's that time of year. This weekend we turn our clocks back and that also means it must be time for the annual NARM (National Association of Record Merchants) "Gift Of Music" campaign.
The campaign is actually a very good one. It reminds consumers everywhere just how powerful an emotional connection can be made by giving someone a gift of music during the holidays.
And now this from RIAA head honcho, the illustrious Mitch Bainwol: "As we enter this holiday season, there really is no better gift than the gift of music. Few things can spark the soul or speak to the heart like music. The music community has come together in a powerful and singular way to promote this initiative, including this handy one-stop-shopping site for tips that fans need to know about gifting music."
I laughed hard when I read Mitch's perfunctory comment. Why? First: Moments after winning an injunction against Limewire, the RIAA site was torn down and the clandestine vigilante collective "Anonymous" claimed responsibility The group had first announced 'Operation Payback' on Thursday, and this is obviously part of an ongoing plan to screw up the RIAA anyway it can.
Second: With complete ignorance of what's happening outside of the Matrix the RIAA lives in, they pursued a third trial against Jammie Thomas-Rassett for copyright violations for her sharing a whopping 24 songs online. Their pursuit of Ms. Thomas-Rassett is bad enough, although again, the lawyers continue to rake in the big bucks every time the RIAA wastes time and goes to court, or hires lobbyists to get useless legislation passed in Washington, D.C.
What's completely insane is the new judgment against Ms. Thomas-Rassett. A jury has ordered Jammie Thomas-Rassett to pay $1.5 million in damages, or $62,500 per song. In the previous trial, the judge reduced a jury award of $1.92 million to $54,000, calling the amount "shocking."
I guess that wasn't good enough for Mitch and his crusaders. Their statement: "We are again thankful to the jury for its service in this matter and that they recognized the severity of the defendant's misconduct. Now with three jury decisions behind us along with a clear affirmation of Ms. Thomas-Rasset's willful liability, it is our hope that she finally accepts responsibility for her actions."
It is my hope that the case is appealed yet again, and that some judge somewhere sees this judgment as completely ridiculous.
But whatever happens, one thing is certain. The RIAA obviously has no intention of doing something good for the industry overall. They continue to waste millions in legal fees and lobbying while the industry contracts in size year over year.
I have asked label executives repeatedly to e-mail me and defend their alleged industry association and the money it spends. So far not one has done so. But several have sent me e-mails saying they agree with my comments completely. But here's your chance again to speak up if you want.
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THE 'A-SIDE' - TRACK 3
THE PAID CONTENT THING ... STILL NO GOOD NEWS YET
Sure to trouble publishers far and wide, The (U.K.) Times has so far convinced just 0.5% of its readership to pay for premium content. As PaidContent notes, "Many observers cite 5% as an industry benchmark for proportion of paying customers against free users in a 'freemium' service environment." Worse still, only half of that those 105,000 paying readers actually subscribe -- as opposed to pay per day -- so a mere 0.25% of The Times' online audience have become regular customers.
But, don't expect The Times to reconsider its new four-month-old business model anytime soon. According to paidContent, the publisher "has made a grand, long-term strategic readjustment in its conception of the role of readers between its output and its income -- from 'visitors' to 'customers.'" One must also consider that, along with various new websites, The Times has recently launched new products -- namely, an iPad edition -- which are only just beginning to penetrate the broader market.
Read more here: http://tiny.cc/zjf80
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THE 'A-SIDE' - TRACK 4
E-COMMERCE UP TO $32.1 BILLION
Online retail spending reached $32.1 billion in the third quarter of the year, according to new estimates released by comScore on Monday. That represents a nearly 10% increase year-over-year, and the fourth consecutive quarter of positive year-over-year growth following a year of flat or negative growth rates. Read the rest here: http://tiny.cc/3f7q3
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THE 'A-SIDE' - TRACK 5
A LOOK BACK TO THE FUTURE
Portland's DJ Clarence Duffy sent me the link to this wonderful clip from an ABC-TV '20/20' show that was aired back in 1980.
It's now a very funny look back at what some record execs were predicting about the future of the business and technology. Check it out here (and don't laugh too hard): http://tiny.cc/ylj90
And Now For Some News ...
12-24 Year Olds Purchase A Whole Lot Less CDs, Going To Less Concerts
EDISON RESEARCHI don't think the news about 12-24 year olds buying less CDs is shocking news. Anybody following the sales of computers the last decade know that those demographics are online listening to music, trading files and (dare I say it?) illegally downloading.
As for the concert biz, the news isn't good, either. According to statistics in a survey from Edison Research (actually about radio's future), 12-to-24 year-olds are going to just 0.9 concerts per year on average, down from 2.1 in 2000. That represents a 57.1% drop.
Quick snapshot:
- In 2000, 24% surveyed attended 3+ shows annually.
- In 2010, that number moved to just 12%.
- In 2000, 43% reported not going to one concert.
- In 2010, that figure expanded to 64%.
Read more about it by clicking here.
Michael Jackson Is Gone, SONY Music Feels It
WALL STREET JOURNAL ALL THINGS DIGITALNow that Michael Jackson sales have come back to earth, Sony reports that last quarter's sales dropped another 10.8%, or a mere 6% if you strip out the effect of currency fluctuations.
Operating income dropped 6.1%.
Read more about it by clicking here.
First Listen: Bruce Springsteen's 'The Promise'
NPR.ORG"The Promise," subtitled" The Lost Sessions: Darkness on the Edge of Town," is not the usual odds-and-ends reissue package. In 1975, after "Born to Run" made him a megastar, Bruce Springsteen found himself in a lawsuit with his then-manager, which blocked the singer from making a follow-up for nearly two years until the suit was settled. While lawyers bickered, Springsteen toured and wrote prolifically. And the album that began taking shape in the months after "Born to Run" ultimately became - some 70+ songs later - a very different album: 1978's fierce "Darkness on the Edge of Town." As Springsteen himself reflected, "It's a reckoning with the adult world ... with a life of limitations and compromises."
Read more about it by clicking here.
Apple's iTunes Goes To 90-Second Samples
CNETApple tells the labels (in no uncertain terms) in a letter it is adopting 90-second song samples on iTunes. Apple's letter appears to be directed at the scores of independent record labels, industry insiders said.
Managers at some of the bigger indie labels were reluctant to comment today, saying they hadn't seen Apple's letter or hadn't had time to analyze it. Two did acknowledge that it seemed that Apple was playing hardball.
Read more about it by clicking here.
Smartphones Are Now 28% of U.S. Cellphone Market
NIELSENThanks to the growing popularity of iPhones and Android-powered devices, 28% of U.S. mobile subscribers now have smartphones, Nielsen reports. Among those who acquired a new cell phone in the past six months, 41% opted for a smartphone over a standard feature phone, up from 35% last quarter. With their computer-like operating systems, smartphones allow for a far more advanced content and communication experience, and are thus seen as fertile ground for advertising and other monetization opportunities.
In the U.S., the Apple iPhone has practically caught up to the RIM Blackberry OS, with 28% and 30% market share, respectively. Meanwhile, Google's Android mobile OS is now at 19% and growing, according to Nielsen. (Other estimates suggest that Android has a significantly larger share of the U.S. market.) Among those who chose a device in the last six months, however, Android took the lead in the third quarter, while RIM Blackberry and Apple iPhone are practically tied for second place.
Read more about it by clicking here.
Guy Hands Loses His Case With Citigroup
MUSICALLY.COMWell, I hate to say "I told you so..." but Guy Hands is a loser in the case against Citigroup over the company's acquisition of EMI in 2007.
If you haven't been following the story, it means little. But if you followed the whole story from when Terra Firma (that's Latin for "Solid Ground" ... quite a misnomer, huh?) first purchased EMI, then you knew this would eventually come to an ugly end. And it has.
Read more about it by clicking here.
Back in January 2008, this is what I wrote about what was the happening with Hands and EMI: "This week, only seven months after the purchase, Terra Firma's Guy Hands said the following: "We have spent a long time looking intensely at EMI and the problems faced by its recorded music division which, like the rest of the music industry, has been struggling to respond to the challenges posed by a digital environment. The changes we are announcing today will ensure that this iconic company will be creating wonderful music in a way that is profitable and sustainable."
The changes? Mr. Hands plans to cut 2,000 jobs at EMI.
No sooner had Mr. Hands made his announcement, came the news that yet more talent has chosen to leave EMI. The Rolling Stones announced their decision to release their new album, "Shine A Light," (which will accompany a Martin Scorsese film of the same name that features two live shows the band performed in New York in 2006) through rival Universal Music in March...When Eric Nicoli of EMI announced almost a year ago that (for all intent and purposes) Capitol Records was going bye-bye, he said, "By bringing Capitol and Virgin into one label group, we will be better equipped than ever to promote and nurture artistic talent."
To that I said, "I for one, do not see how these changes "better equip than ever" the new Capitol Music Group to "promote and nurture artistic talent." Perhaps Mr. Nicoli will expand on those possibilities at some future date. But, I don't know how diminishing size enables any label to stay on equal footing competitively."
It's not that I expect any company not to cut overhead when corporate survival is at stake. Indeed, when it serves a company's best interests, it is the responsibility of management to take steps necessary to remain fiscally sound. Now it will be Mr. Hands' chance. He's up at bat now, but I think he'll find it difficult assuring EMI's roster of artists (and any he hopes to attract) how he expects EMI to stay on equal footing against the competition after he makes the planned changes. Somebody has said, "Much of what is called investment is actually nothing more than mergers and acquisitions, and of course mergers and acquisitions are generally accompanied by downsizing."
And so it goes. And so it goes.
MySpace Is Running Out Of Time
YAHOO NEWSIt's hard to believe that MySpace, once the giant social place to be online, is now in serious financial trouble. But the losses are mounting and time is running out as News Corp. (MySpace's parent) sees the losses as "unsutainable" at the current pace.
Read more about it by clicking here.
STOP ARRESTING THESE RAPPERS, IT ONLY HELPS THEM SELL MORE RECORDS:
Rapper Gucci Mane was in jail again after being arrested Tuesday for obstruction and multiple traffic charges in Atlanta. Officers used pepper spray to subdue the MC (real name: Radric Davis) after he wouldn't stop fighting with an unnamed person. He was taken first to the hospital for inspection before being transported to the Fulton County Jail, where he remained until early Wednesday when he was released.
HIS ROYAL PURPLE ONE SELLS OUT MSG:
Prince's two December shows at Madison Square Garden -- where he'll lead an all-star revue featuring Janelle Monae, Maceo Parker, Sheila E. and others -- sold out 30 minutes after going on sale Tuesday. The shows are scheduled for December 18th and 29thh, with three in New Jersey on December 14th, 15th and 17th.
WHAT NOT TO DO IF YOU FRONT A ROCK BAND:
Motley Crue lead singer Vince Neil has signed on to compete in ABC's "Skating With the Stars," starting November 22nd. He'll team up with actress Sean Young.
MICHAEL JACKSON ALBUM IN DECEMBER:
After nearly a year-and-a-half of rumors and false reports, Epic Records have finally announced plans for their first collection of posthumous Michael Jackson material --though most details remain frustratingly unclear. What's known for sure is that the album will be called "Michael" and will be released on December 14th. A teaser for the project will be posted on MichaelJackson.com on Friday
A PARTRIDGE FAMILY GUY?:
Former Partridge Family star David Cassidy was arrested Wednesday night in Florida on suspicion of driving under the influence, failure to maintain a single lane and having an open container. He was given a Breathalyzer test and registered a 0 .139 and 0.141, well over the state's legal limit, and was released on $350 bail.
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 don't think anybody steals anything; all of us borrow."
-- BB King"We're the McDonalds of rock. Were always there to satisfy, and a billion served."
-- Paul Stanley, KISS
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
'Good Old Days' Traced Back To Single Weekend In 1948
BOSTON-A study published Monday by a group of linguists, historians and semioticians has proved the concept of "the good old days" can be traced back to the weekend of June 19, 1948.
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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