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A Dear Jon (Bon Jovi) Letter
March 18, 2011
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"Things ain't what they used to be and probably never was."
-- Will RogersIf you haven't already heard about it or read about it online, this week another brilliant rock star, Jon Bon Jovi, has blamed all the ills of the current day music business on Steve Jobs.
Bon Jovi said in The Sunday Times Magazine, "Kids today have missed the whole experience of putting the headphones on, turning it up to 10, holding the jacket, closing their eyes and getting lost in an album; and the beauty of taking your allowance money and making a decision based on the jacket, not knowing what the record sounded like, and looking at a couple of still pictures and imagining it. God, it was a magical, magical time. I hate to sound like an old man now, but I am, and you mark my words, in a generation from now people are going to say: 'What happened?' Steve Jobs is personally responsible for killing the music business."
His comments prompted me to write this open letter to him in response.
Dear Jon:
You've been making records a long time. In fact, when you had your first Billboard chart hit in 1984 ("Runaway," which peaked at #39) CDs had already been in the retail music market two years.
Now, 39 years after CDs were first introduced to the consumer, you seem to have forgotten that it was the CD, not Steve Jobs, that made kids miss "the whole experience of putting the headphones on, turning it up to 10, holding the jacket, closing their eyes and getting lost in an album; and the beauty of taking your allowance money and making a decision based on the jacket, not knowing what the record sounded like, and looking at a couple of still pictures and imagining it."
Once the vinyl album gave way to the CD, it removed the very emotional and personal experience you describe, and it did it years before iTunes and iPods ever existed. There was no "holding the jacket" of a CD to capture one's imagination or spark one's curiosity about the music inside the plastic package.
While there were record buyers back in the '80s who decried the CD format because of the connection the vinyl album made with them, they soon fell by the wayside as CD sales rapidly increased and more and more people started replacing their vinyl collections with CDs, and started throwing out the cassette tapes they played in their cars as they installed CD players in their dashboards.
Funny thing about CDs, I don't ever remember any artists I worked with at the time complaining about the hefty royalty checks they were receiving as their catalog(s) were released in the new format and sold millions all over again. Not a one. Nope. It was a good time for the labels and all their artists as billions were generated in revenues just from re-releasing older albums on CD.
I have never seen one of your royalty checks Jon, but since Bon Jovi has reportedly sold in excess of 130 million albums worldwide ( http://tiny.cc/sxrel ), I assume a whole lot of those sales were from CD. Back then, when you were receiving those checks, did it ever occur to you that the record buying experience you miss today, was long gone?
The transformation of music to a digital format was inevitable as technology advanced. If you don't like the fact that technology did that, that's a separate issue altogether, and not one you can blame Steve Jobs for, either.
iTunes was introduced by Apple Inc. on January 9th, 2001 and 10 months later on October 23rd, 2001, the iPod was introduced. Steve Jobs thought it would make sense to try and create an online music retail destination for people to BUY music rather than steal it. Yes, of course he wanted to do so to facilitate the sale of iPods and increase Apple's business. But so what?
As of February 2010, iTunes had surpassed 10 billion songs sold ... 10 billion ... 10 billion sold means 10 billion less were stolen. It also means a whole lot of artists collected money from the sales of their music on iTunes they would not have received otherwise. I wonder how many of those artists who have received checks from iTunes sales think, "Steve Jobs is personally responsible for killing the music business."
While iTunes was getting people to BUY music, the major labels did nothing for the most part. They didn't like the fact that consumers could "cherry pick" their favorite tracks instead of buying a whole album. Then again, maybe most consumers got tired of spending $10-$15 on CDs that only had one or two good tracks. But, that's a whole other story about the loss of great A&R and artist development that gave labels a long-term vision for their futures. Ah, those good old glory days in the music biz.
This past week the RIAA reported that Lady GaGa is has surpassed 20 million digital download sales, making her the highest-certified artist in the digital sales history. (See 'Track 5' below) I don't think Lady GaGa believes for one second that "Steve Jobs is personally responsible for killing the music business," do you?
Blaming Steve Jobs for the problems in the industry today are no different than those blaming "American Idol" for what's happened to the business. Those who point fingers at "Idol" seem to have forgotten that anything that motivates people to BUY music is a good thing. It's always been that way.
There is good news, Jon, a whole bunch of kids today can now experience what you long for and miss about the business. You see, vinyl has made a nice little niche market for itself all over again and vinyl stores are thriving in many cities across the country. Maybe you've seen a late-night talk-show host hold up the latest vinyl-album before he introduces the band that's about to play. Maybe you've even read a few of the many articles that have appeared in print and online about vinyl's comeback. Then again, maybe you haven't.
I hate to say it Jon, but you do sound "like an old man now."
There's nothing wrong with looking back at what was, but as Kierkegaard said, ""Life can only be understood looking backwards; but it must be lived forwards."
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THE 'A-SIDE' - TRACK 2
BUH-BYE ZUNE ... ANOTHER MICROSOFT FAILURE
"Everyone knows programming isn't a core competency at Microsoft. Marketing is the only core competency here. By next year, the marketers just might have this whole place to themselves." -- Anonymous Microsoft programmer.
I have nothing against Microsoft.
While many people criticize the company and have complained for years about every new version of Windows(r) released, I don't think any company has been more responsible for making the PC a part of our everyday lives, both at work and at home.
What I have criticized Microsoft for over the years is for straying from its core competencies.
Remember the Kin (Microsoft's social-networking cellphone that died a quick death)?
Microsoft has not been successful launching products to compete in a marketplace where other companies so clearly rule -- especially when it comes to trying to compete with Apple.
The iPod has become the digital music player of choice for hundreds of millions of people globally, and Microsoft thought (too late in the game in 2006) they could get a share of that market with its Zune player. At that time (believe it or not) Microsoft's CEO, Steve Ballmer, actually predicted that Microsoft could one day overtake Apple. "We can beat them, but it's not going to be easy," Ballmer said in a November 2006 interview.
This week, news is leaking on the Internet that Microsoft "will stop introducing new versions of the Zune music and video player because of tepid demand, letting the company shift its focus to other devices, according to a person familiar with the decision." (Source: http://tiny.cc/zrayg )
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THE 'A-SIDE' - TRACK 3
VEVO KEEPS GOING AND GOING AND GROWING
Vevo now streams 750 million music videos monthly worldwide, and 350 million in the U.S., Billboard reported, citing figures presented during the Canadian Music Week conference.
The Billboard article not only gives you great numbers information behind Vevo's growth, but also the latest YouTube numbers, a Nielsen survey that reports 11% of U.S. men and women have purchased music online in the last 30 days, and more.
Read it all here: http://tiny.cc/bldwz
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THE 'A-SIDE' - TRACK 4
ONCE UPON A TIME THEY ACTUALLY SAID YOU COULDN'T MAKE ANY MONEY IN THE ONLINE WORLD ... NOW HEAR THIS
Interactive media ranked as the second-most-profitable industry segment from 2006 to 2010 after cable operators, according to a new study by Ernst & Young. The interactive category, which includes companies providing access to information and entertainment through search engines, portals and other online formats, had an average EBIDTA margin of 35%, compared to 38% for cable service providers.
Read the rest here: http://tiny.cc/nm0jv
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THE 'A-SIDE' - TRACK 5
ONCE UPON A TIME THEY ACTUALLY SAID ARTISTS COULDN'T MAKE ANY MONEY IN THE ONLINE WORLD, NOW HEAR THIS -- AND AGAIN, THIS IS WHAT HAPPENS WHEN YOU HAVE A REAL ARTIST AND NOT A FLAVOR-OF-THE-MONTH
The Recording Industry Association of America (that wonderful association that does little more than pay lobbyists to wine and dine politicians, pay lawyers to sue people for downloading, and certify sales of music) has recognized Lady Gaga as the highest-certified artist in the digital sales history. Her multi-platinum hits "Just Dance," "Poker Face," "Bad Romance," "Paparazzi," and "LoveGame" have sold 20 million downloads in the U.S. to date. This number doesn't include sales of Gaga's other multi-million sellers "Telephone" feat. Beyoncé, "Alejandro" and "Born This Way," which are yet to receive a certification from RIAA.
And Now For Some News ...
161 Million Will Be Cloud-Based Music Subscribers By 2016
BUSINESS WIRECloud-based music streaming services, such as those offered by Rhapsody and Spotify, "will become a more important form of access to music than owning albums or songs by 2016, according to a report from market researcher ABI Research that "believes that number will exceed 161 million subscribers in 2016, meaning a compound annual growth rate of nearly 95%."
Read more about it by clicking here.
Rocksmith: A Real Guitar Game That Teaches You How To Play
ROLLING STONERocksmith is a video game that is going to teach you guitar. Not a fake, plastic toy with color-coded buttons or even some hybrid game controller. Guitar. Six strings and a fretboard. There's no avoiding it. If you play the game you'll be strumming out notes alongside songs you know and pick up a skill in the process. That is the core idea driving Ubisoft's unique new music game: plug any actual guitar with an electric output jack into your Xbox 360, PlayStation 3 or PC using a provided quarter-inch-to-USB cable and simply "learn as you play."
Read more about it by clicking here.
The Federal Government's New "IP Czar" Wants Felony Charges For Illegal Web Streaming
ARS TECHNICABe forewarned, the government wants to make illegal streaming of copyrighted content in music and movies a felony.
Read more about it by clicking here.
The iPad2 Blows Out At Retail ... So What Else Is New?
WALL STREET JOURNALGee, what a surprise. NOT.
The iPad 2 is living up to the hype, and surpassing the original Apple tablet when it comes to initial sales. Analysts have estimated the upgraded iPad sold 400,000 to 600,000 units over the weekend, with the device selling out at stores in major cities on Friday only hours after hitting shelves.
Read more about it by clicking here.
The DVD Sales Slump Continues And Studios Look For News Ways To Get to Consumers
ECONOMISTPeople are rapidly discovering new ways of watching films at home that pose a grave threat to the most profitable part of the film business.
I've talked about how falling DVD sales will expedite a faster pay-for-view window on-demand services with cable and satellite TV companies as studios try to capture new revenues.
Read more about it by clicking here.
Is Netflix The Next HBO, AMC or Showtime?
INVESTORS BUSINESS DAILYIn what would be a company first, Netflix is reportedly angling to get into original programming. Netflix outbid several top cable networks, including HBO and AMC, for a new drama series 'House of Cards' starring Kevin Spacey. The deal is estimated to be worth more than $100 million.
Read more about it by clicking here.
The Administration Advocates Online Privacy Bill Of Rights
MEDIA POSTAt a Senate Commerce Committee hearing Wednesday in Washington, the Obama Administration called for an "online privacy bill of rights," while the FTC detailed progress on the "do not track" rules it proposed in December.
Read more about it by clicking here.
Streaming Movie Service, Zediva, Streams New Movies Via Legal Loophole
WIRED.COMA two-year-old company called Zediva is offering streaming of new-release movies not available on any other digital service, claiming a legal loophole enables it to offer the films without licenses from any studios, Wired.com reported.
Read more about it by clicking here.
ONCE UPON A TIME AOL BOUGHT TIME/WARNER:
Just days after closing its $315 million acquisition of The Huffington Post, AOL on Thursday cut about 900 jobs -- or 20% of its workforce -- in an attempt to mesh the two staffs.
NETFLIX ON TOP RIGHT NOW:
Netflix commands 61% of the total digital movie streaming and downloading market, according to a report from market research firm NPD Group.
THINGS CHANGE:
Sean Parker, an early co-founder of Napster and investor in Facebook, is part of a group of investors angling to acquire major record label Warner Music Group, which put itself up for sale in January, All Things D reported, citing sources.
STOCK WATCH:
Groupon, the group buying service and chief rival of LivingSocial, could be valued as high as $25 billion when it prices its initial public offering (IPO), which could happen later this year, Bloomberg reported.
SIMON NAMES HIS FIRST 'X FACTOR' JUDGE:
Island Def Jam Chairman Antonio L.A. Reid has signed on as a judge with Simon Cowell's The X Factor. As a result, he will leave the label as UMG let him out of his deal early to pursue the TV opportunity.
GAGA HELPS JAPAN:
Lady Gaga has raised more than $250,000 for victims of the Japanese earthquake and tsunami, thanks to bracelets she has designed. She announced, via Twitter, the sale of the $5 red-and-white Japan Prayer Bracelet shortly after the country was hit with the natural disaster.
CNN UBIQUITY:
By early summer, CNN plans to introduce its answer to TV Everywhere -- "making it possible for subscribers of Comcast Xfinity, Dish, Cox and Verizon FiOS to watch CNN live across platforms and devices," paidContent reports. CNN.com also plans to launch a new video player, which takes advantage of the native HD now being used for most of its footage, CNN Digital announced this week.
NO GO ON YELLOW SUB:
Yellow Submarine, the 3D remake of the psychedelic animated Beatles film that Zemeckis had set up to direct at the Disney studios in August 2009, has been killed. Whether Zemeckis will take the project to another studio remains to be seen.
GEE, ONLY A BILLION IN CHANGE:
A federal judge has limited the potential copyright infringement damages that file-sharing service LimeWire could have to pay record labels to $1.5 billion, Reuters reports.
A SPECK OF HOPE FOR AN APPEAL:
A California state appellate court panel is set next month to hear the defense's appeal in the case of record producer Phil Spector, who was convicted in the 2003 shooting death of actress and nightclub hostess Lana Clarkson.
CALL HIM DOCTOR:
Clive Davis will receive an honorary doctorate at NYU's 2011 Commencement, May 18th.
APPLE KEEPS ITS CUSTOMERS HAPPY:
For the fifth year in a row, U.S. consumers said they are more satisfied with Apple's iPhone than any other competing smartphone, according to J.D. Power and Associates' 2011 U.S. Wireless Smartphone Customer Satisfaction Study.
ORCHARD UPDATES:
The Orchard, a digital distributor of independent music and video, on Wednesday launched Artist Builder, a software dashboard that helps labels and artists update multiple social profiles simultaneously from one location.
PASSING:
Owsley Stanley, the Sixties counterculture icon who collaborated with the Grateful Dead and popularized LSD in the psychedelic rock scene, died in a car crash in Canberra, Australia this week at the age of 76.
PASSING:
Ronnie Hammond, the former lead singer for the Atlanta Rhythm Section, of heart failure. He was 60.
PASSING:
Nate Dogg, the singer and rapper best known for his collaborations with Snoop Dogg, Dr. Dre, Warren G and Eminem, has died at the age of 41.
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
"About a year ago, Elton (John) came and found me in a ditch at the side of the highway and he took me up to the hospital and treated me like a king."
-- Leon Russell, at his induction into the Rock'n'Roll Hall of Fame"Sober up, Charlie. And get back on TV, if it's not too late. This is America. You want to really piss off Chuck and Warner Brothers and CBS? Beg for America's forgiveness. They will give it to you. And then go back."
-- Alec Baldwin, giving advice to Charlie Sheen on the Huffington Post"There's nothing worse than a fat coke head."
-- Former world heavyweight champ Mike Tyson, on letting himself go before getting sober and becoming vegan, on The Ellen DeGeneres Show."I think it's because I'm English she kind of thinks of me as a butler."
-- Russell Brand, on tending to wife Katy Perry, on The View. No, Russell, she probably thinks of you that way because you have no real talent and that will be your future role in the marriage.
The B-Side - 'Blips'
THE ONION (www.theonion.com) STORY OF THE WEEK:
Your Obsessive Love Or Hatred Of Me Means Nothing In The Grand Scheme Of Geological Time
By Justin BieberAs the undisputed No. 1 teen pop sensation in the world, I have become something of a fulcrum upon which the extremes of human emotion pivot. On one side, you have people who have vaunted me to such lofty heights it is tantamount to deification; on the other, my high-spirited song-and-dance routines elicit an almost murderous rage. But, I ask, when viewed within the context of the geologic timescale, wherein chronological development is measured by evolutionary and stratigraphic events over countless eons rather than transitory human experience, what does any of it truly matter?
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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