Wednesday, April 25, 2007
FINAL
It’s a beautiful thing to see the playing field of the music business more leveled than it ever was before. Artists are more accessible to potential audiences through the accessibility if the internet. Music, video, and artist information is finally within reach without the dependence of magazines, MTV, or an album sleeve.
It’s a thrill to discover an artist’s songs simply through a few clicks on MySpace Music. How utterly fascinating is it to carry your entire music library in your pocket? I still wonder how I ever managed to carry around my portable CD player and CD cases around school before I had an iPod.
It’s overtly convenient to purchase music through the iTunes online store, rather than a gas-guzzling trip to the local Tower (RIP) or Amoeba record store.
…but where there lies a convenience in accessibility, leads to a grappling of how an entire industry will change along with this new shift. Although the New Music Experience is more comfortable for consumers, heavy hitters in the industry are having a hard time embracing to New Business models that have must be implicated in order to accommodate non-traditional media. Danny Goldberg, Chairman and CEO of Artemis Records has affirmed the general consensus in a PBS interview, here: http://www.pbs.org/wgbh/pages/frontline/shows/music/perfect/internet.html . He remarked, “I don't know about other business, but I think in the entertainment business in general, people who are successful tend to fear change and fear the unknown...In terms of dealing with the Internet, it's been a profound challenge for the music business.”
Record labels are mourning the death of the CD, whilst avenging the demise of sales through the RIAA’s ‘cease and desist’ mailings to the thousands of once-loyal customers. The current state of the business looks as if it is about to end from illegal downloading. But where there is death, new life sprouts from its deathbed.
There are new modes to flourish and proliferate when non-traditional (or new and exciting) forms of media are coming into place. Now, the industry is being taken over by portable MP3
Players (iPod), online music stores (iTunes, SnoCap), video on demand (YouTube), the video game industry, and social networks (MySpace). Ted Cohen, the Senior Vice President of Digital Development & Distribution of EMI Music had stated, "the billions of songs downloaded from the Web monthly has shown that the digital music revolution is well underway...music fans and artists are going to benefit from the new paradigms and new business models that are emerging.”
Before the Digital Age, customers were wary of new bands, and less willing to expose themselves to new artists because of the dependence on radio, limited accessibility to song samples and cost of a CD. This once put artists in a disadvantageous position to have less exposure than today, without the possible springboards of MySpace. Thankfully to MySpace, today, there is less risk to expose oneself to new artists. We are no longer paying to hear a full length song, buying magazines to read an album review, waiting to view artist photos, or relying on MTV to air an artist’s music video.
Everything is smaller, faster, stronger and most importantly, EASIER. In the next five years, everything will have to be easy.
Portable MP3 Players:
Seeing since DRM is already well on its way out of the window, The Music Industry may later on allow file-sharing or DRM free devices for the iPod and Zune. These devices, along with Sim Cards and Micro SD cards (memory chips for MP3’s) may be the sole mechanisms used for playing songs. In fact, people may just get rid of MP3 playing devices altogether, and stick to memory chips, like the Sim or Micro SD card. These chips have already been used to play music in cell phones and audio sound systems for vehicles. Audi and many other car companies have already implicated packages in their cars that can store one or even two cards as music libraries for audio systems. These nickel-sized chips withhold leaps and bounds of memory, are lighter than a quarter, and are fairly priced (even in today’s market). Even more fascinating about these memory chips is that they can be navigated through (like an iPod) audio players (like car audio systems) simply through a display screen and buttons supplied by the device using it. Laptops and computers will have ports for these chip cards so one can easily upload music with it, without the need for a USB wire or firewire cable.
Online Music Stores:
It’s still debatable whether all music will be free in the next 5 years, but The Music Industry may entirely embrace DRM-free music for all songs that they will carry. One could play, rip and burn songs to their hearts content, without the digital stamp that has blessed MP3’s and AAC files for so long. If music may still not be free, it will be marked down even more. Music buying may arrive in the form of subscriptions where users pay a small, monthly fee to download an excessive or unlimited number of songs, at high quality and format. With this, may also bring unlimited downloads of artist videos, interviews and photos through the very same online store. iTunes or other online stores could later on introduce ticket sales and merchandise through the same online store. This way, the user is more likely to have a one-stop shop, in an easy online format.
Video On Demand:
YouTube is and will be the go-to for on demand artist music videos. The mechanism for easy sharing and viewing of footage has only made it more versatile than other online media player. The advent of portable mobile devices has only expanded the many ways the public is able to utilize, watch and share media through YouTube, now that a large portion of these devices can capture and play video. According to YouTube’s Fact Sheet (http://www.youtube.com/t/fact_sheet), “The explosion in consumer devices with video capability is giving users control over the videos they record, watch, and share, and YouTube is dedicated to making their experience as easy and entertaining as possible.” While YouTube is predominantly used for the searching of old episodes of primetime sitcoms, archived television shows, or home movies, YouTube has taken shape into a social networking interface as well. In Time’s best invention of 2006, Lev Grossman wrote, “The way blogs made regular folks into journalists, YouTube makes them into celebrities.” The article can be viewed here: http://www.time.com/time/2006/techguide/bestinventions/inventions/youtube2.html.
Given YouTube’s current buy-out from Google, it is still unclear where the pioneer of easy video on demand may be five years from now. But online video on demand will be used in the future more to display live acts from artists, music videos, and fan testimonials…all at a quicker, easier rate.
Video Games:
The Future of Music book has accounts from experts in the music industry, one of them being Steve Schner. According to Steve Schnur, the Worldwide Executive of Music, for Electronic Arts, he sees this change in the industry before his very eyes, watching business models change. He acknowledges that it is an industry “…at the crossroads. For those of us who left the record business to go into the music business, video games are the new rock 'n' roll. But no matter where this revolution begins or ends, the industry must learn to respect and react to its consumers.” Five years from now, video games may be the last place for artists to receive a huge bulk of revenue from. Video game companies may also create online music stores for video game players to purchase music, solely for use with their video games. Rock Band and Guitar Hero II are planning on implementing this idea in the very near future.
Social Networks:
Some may debate that today’s white-hot flame of Social Network may diminish into a tiny glow in five years. It is indeed possible that these huge networking webs will break up into smaller interest groups, but it leaves out users who choose to be actively cross-banded with everyone and anyone. Naysayers are missing the fact Social Networking sites have almost gifted all of its users with a sense of self-validation. People like to be recognized, acknowledged and adored…The Facebook and MySpace give this self-gratification to most of its users, and lots of its users have grown addicted to it as a result of this. I cannot see how these Social Network addicts are going to be willing to give this up. People are predicting that MySpace will implode on itself, because of its massive size and others say that it is destined to lose touch like Friendster’s fade out. A large number of people rely on MySpace for networking with Facebook-less people and MySpace Music.
Myspace music is indeed destined to carry on within the next five years. This is because of the rebirth of the playlist. Myspace will likely design an interface for its users that allow them to cherry pick songs from different artists and arrange them into a mix or playlist. This playlist will be posted on the user’s profile, most likely titled, “What I’m Listening To Right Now.” The playlist will also double as an alternating music player on a profile page, rather than a single song widget on each profile. This way, users will be able to sift through 2-50 songs that a profile displays in a playlist. It gives more exposure for more artists, to more users, in a smaller amount of time....rather than a single widget player.
Sunday, April 15, 2007
Ozzfest: Too Good To Be True?
Now that the hollering about a free Ozzfest has subdued, people start asking questions with suspicion. A free show that thousands once paid a pretty penny to attend is now free of charge? It raised some eyebrows, to say the least. How could such a business model for this epic tour be supported? One tours for two reasons, band promotion and generating revenue. Sharon Osbourne, the shrewd business woman that she is, has her sleeves full of tricks this year. She will never set up a tour without intent of making profit, bank on it, my friends!
People want to know exactly how much it would cost to run a national tour of this sized magnitude. Sharon Osbourne mentioned that band’s salaries were becoming increasingly over-inflated over the years. She once remarked that the band who got their start on Ozzfest, was now demanding well over $100,000 to be included in the tour. Apparently, it was System Of A Down’s price tag that grew to be the last straw in the camel’s back. System of A Down was demanding a reported $325,000 to be included in the Ozzfest gig list. Given , a band does have huge tour expenses over the course of a national tour, for room, board, transportation and crew.
But now, Ozzfest is a whole new ballpark. This year, no matter how popular the band, no matter how good their act, each band was rumored to cough up $100,000 to Ozzfest to be included in the tour. This tour has morphed into the notorious business of the Hollywood music venues: Pay to Play.
After some casual research, the expense figures changed. An anonymous tipper at Century Media, a label who supplies a healthy number of bands for Ozzfest, has confirmed that each band must submit a fee upwards of $75,000 to be included in the tour. In reality, this expense fee could be going to actual tour costs, but there is still no confirmation as to how this fee will be used towards the tour.
The official at Century Media has also remarked that he is unsure if bands can or will recoup from the expenses. He predicted that given, merchandising is also limited and taxed by Ozzfest, it will only cover so many costs. He also mentioned that if anything, Ozzfest’s intention (for bands at least) is to promote their bands. With the high volume of new people coming to see Ozzfest because of it’s cost-free nature, new markets will be exposed. The tour is to generate band hype, from a record label’s point of view.
In addition to how Sharon plans to profit from such a tour, Ozzfest has recently announced that if fans pre-purchase Ozzy Osbourne’s new album which debuts May 22nd, they are automatically given a secret code that allows them to reserve 2 seats for an Ozzfest show of their choice, 4 days in advance of the general public. The web page from Sony, titled “Pre-order Black Rain to get first dibs on FREE tickets to Ozzfest” gives directions as to how to obtain tickets ahead of the rush.
Indeed a sly move on part of the Osbournes, but all the more bold and inventive. Regardless of intention, the Osbournes do deserve credit for trying something new, in order to stay afloat from sinking business models in the past. View the details, here: http://www.sonymusicstore.com/store/catalog/MerchandiseDetails.jsp?merchId=117577&skuId=117583&sms=alt-ozzy
Wednesday, April 4, 2007
Wouldn’t it be nice if both sides of this furious battle between file-sharers and copyright protectors called a truce?
Impossible! It’s a very tough call. Can the RIAA stop the cog of illegal file sharing? Whether you will take a side or not, you cannot stop illegal music downloads. Monthly sales from file sharing exceed what the music industry makes in one whole year! The music industry itself is powerless as a drop in a bucket of water. Should the RIAA and record industry take a wider stance? Should more notices be sent out to IP addresses that commit this crime? Why do people download? For one, CD prices have spiked up since the days of Napster. Labels tried to make up for their profit losses due to P2P by bumping up their Suggested Retail List Prices. Instead of keeping a steady flow of income for the labels, it deterred music fans away from the purchase of an album or single. Why pay for something at a record store when there is another one being looted next door? Everyone has joined the free-for all.
What record labels should have done a long time ago was take EXTENSIVE action against file-sharing networks in the beginning. The lawsuits against Napster were not enough. Record labels should have taken extra measure to banish all servers, including Limewire, which is still in existence today. The plant should have been nipped at the bud.
But the aggressive stance of RIAA isn’t helping their image either. They are not the Superman to the Record labels. Their menacing tactics and excessively punitive measures have made them look like the bad guys, hurting their image and the image of the record labels. They look money hungry, greedy and soul-less in their notice letters and damage claims against college students and dead grandmothers. The RIAA claims to be protecting the rights of the artist, looking out for their best interest and their copyright protections. But where was the RIAA when artists and bands got sucked dry from their very record labels that claimed to be “helping them.” Artists were not making money from their music and artists are not making money from their music now.
There have been countless bands that have flourished by taking a chance to distribute their music at no cost for giving more incentive to listeners to hear their music and possibly become fans. Countless students agree that they became bigger fans of music when they began downloading for free. When they had the opportunity to obtain new music from new bands till their little heart’s content. They are more willing to be curious; they can afford to listen when new music is free.
However, many music fans listen to music and nothing else. There is a chance that downloaders will not spend their saved revenue on merchandise or concert tickets. They can be content off of sole songs. They don’t need a band t-shirt or the experience of a live show. But this is where the music industry will have to downsize
Labels are already downsizing, compounding into smaller groups, and joining forces. This is the nature of the game. What goes up must come down. This is a trough in success for the industry, but until new technology, software or media pops up for music to latch on to as a new mode for flourish, they might have to stick it out until then.
Los Angeles: No Longer the Famed Music Hotbed
The late 70’s ushered in new music movements to the
The 90’s brought the LA Riots, heroin-chic and the birth of West Coast hip-hop ushering in hard hitting rappers like Dr. Dre, TuPac, Eazy-E, Ice-T and Snoop Dogg. The genre is still, if not more successful.
Regardless of bad taste or judgment, one could count on
But this is my concern:
Warner and V2 Step Up With Trying Before Buying.
Perhaps the labels weren’t deaf. Perhaps the labels are increasingly feeling pressured to meet the public’s demands as music sales decrease. Buying music should be like going to Costco or Trader Joe’s. You walk around, browse the aisles, and come across a sample station to taste morsels of curried chicken, seasoned fries or sliced herb sausage in little paper cups. 90% of the time you really enjoy your sample of food, and end up putting a box or two of the food item you had just sampled in your shopping cart, anxious to eat it at home. This concept needs to be applied to music as well. Although iTunes does offer 30-second clips of the music that you are browsing around for, 30-second clips don’t sound like the entire song. You can’t hear the intro, the verses, the solos, etc...iTunes usually features the clip at the choral parts of the song. This poses a problem for music buyers who become reluctant to purchasing music from iTunes based on a 30-second sample. Let’s face it: music buyers need the whole sample…they need to try the entire song/album before they buy it.
Thankfully, according to NMA.co.uk, a news article by Alex Farber, titled, “Warner and V2 to offer 'try before you buy' download service” may be answering our prayers. Warner and V2 records have agreed to use the try before you buy feature on an online service. “Warner Music and V2 have today agreed to take up eListening Post's viral channel as a way to sell more digital downloads.” These guys are way behind in the race. MySpace has been doing just this for years, exposing users and non users to full-length songs of every artist imaginable. MySpace allowed for fast streaming, making its music player champion among windows media player and quicktime. It's speed and accessibility put others to shame and gave listeners more incentive to hear more artists, in more time, creating MORE fans. It's still hard to believe that some labels out there are having a hard time putting up more songs for listeners to enjoy through MySpace, in fears that they might lose money, or give away "too much" of a song. The real problem is that they disadvantage themselves for limiting material on the web and their Myspace profiles. But with eListening Post's viral channel listeners are aloud up to 5 full listens before purchasing a song. Although music fans are able to listen to full clips of music for free on MySpace, its selection of songs is very limited...then again MySpace does not limited the number of times you can play a song! It’s not yet confirmed if the music players for try and buys allow for rewind, pause and forward features, but it’s another step towards a changing industry as DRM is slowly diminishing. The original aim of the service is to spark interest in a song, hopefully causing listeners to pass the songs on to their friend to try it out too.
The article can be viewed at : http://www.nma.co.uk/Articles/32550/Warner+and+V2+to+offer+
Tuesday, April 3, 2007
Will EMI’s DRM Free Frenzy be agent for a Domino Effect?
…Hopefully. So much has been happening in a single year since the age of digital anarchy came along. People are scrambling left and right for answers, and new ways to reform a symbiotic relationship with the record industry. Music Industry Optimists everywhere are blogging about the DRM-free news with high acclaim. Is this it? Will EMI’s removal of digital rights management (DRM) from songs bear good omens? It’s a small step, but a bold step. EMI has a lot of gusto for being the first of the Big labels to step up and change, despite the fact that Warner also verbalized for several years that it did not believe in DRM. Apple’s iTunes store will be the first to feature these DRM free downloads, but Beatles fans need not apply, since the greatest rock n’ roll band has yet to be included in EMI’s catalogue. That is still a sign of hesitation for EMI, since The Beatles catalogue is a huge truckload of money and liability for the label, not to mention a prized possession.
But the freedom to burn comes with a heftier price tag…DRM free downloads must be purchased to the tune of $1.29 per song, rather than plain old $0.99. Along with this, DRM-free files are available in all sorts of formats, including AAC, WMA and MP3. Personally, there are probably 10-20 songs that I would use over and over again in my CD mixes, therefore making it hard to say how consumers will have the burning need to shell out $1.29 for DRM-free music too.
On a jollier note, EMI’s website had this to say:
“EMI Music will continue to employ DRM as appropriate to enable innovative digital models such as subscription services (where users pay a monthly fee for unlimited access to music), super-distribution (allowing fans to share music with their friends) and time-limited downloads (such as those offered by ad-supported services).”
The section about subscription services and super-distribution is entertaining, considering the fact that these two business models offered through labels are quite new. Although these models still feature DRM, they offer windows to how we might get our music from the future. Hopefully subscription services with low monthly fees become a reality for everyone, incorporating the use of super-distribution and the execution of DRM. We hoped to be DRM-free, its only a matter of time until the rest follow suit.
Gizmodo article: http://gizmodo.com/gadgets/home-entertainment/official-emi-to-release-music-drm+free-248836.php
EMI Press Release: http://www.emigroup.com/Press/2007/press18.htm