hypebot

Music 2.0 Week In Review: iTunes Turns 6, ASCAP Court Action, Nokia's Pays Price & Much More

> JOIN THE DISCUSSION: Are indie labels and musicians being left out of Music 2.0 thanks to recent deals by the  four major record groups?

> iTunes turns 6 years old, but new challenges lie ahead. POLL: What will iTunes' market share be in 5 years?

> More court action is possible between ASCAP and Real, AOL and Yahoo! according to the DiMA.

> As new details emerge it becomes apparent that Nokia's Comes With Music comes at a high price.

> eMusic has launched in Canada.

> Universal and Sony BMG have invested in music social networking site MOG. But a feature in MOG raises fears of label control of you music collection.

> Video game Grand Theft Auto IV adds in game tags to Amazon for download purchase.

> Top 10 Stations on Sirius and XM.

> With a concert pre-sale Nine Inch Nails proves again that they know how to serve fans. Watch them and learn.

> OP-ED: Will labels and artists share new and proposed "taxes" with the artist?

> Ticketmaster has bought VIP ticketing firm SLO.

> The American Association Of Independent Music (A2IM) is turning three.

> New Coldplay single explodes on Last.fm.

This Week's Unsigned Acts Worth Watching via Crazed Hits

• Age Of Daze - rock in the Hinder/Nickelback lane
• Marliese - 13-year old indie rock/pop artist
• Article A - pop/rock, very catchy and radio friendly
• Lovers Make Liars - pop/punk from Los Angeles
• Fatis Valour - Australian indie rock quartet

More @ www.crazedhits.com

DiMA Says More ASCAP Court Action Possible

The U.S. District Court for the Southern District of New York ruled late Wednesday that AOL, Yahoo and RealNetworks must pay higher licensing fees to ASCAP.  The net companies  had asked the court to set the rate based on revenue directly attributable to music uses. Instead, the decision sets a formula based on gross website revenue multiplied by the portion of website activity that is music-intensive.  Some estimates put the back payments due as high as $100 Million.

The executive director of DiMA, a trade group representing the net broadcasters,  Jonathan Potter, issued a statement:

"DiMA agrees that Internet portals and multi-faceted online services should pay fair royalties to songwriters and music publishers.  We are disappointed, however, that the court ruled that online services' royalties should be based in part on service-wide revenue, not simply on revenue directly attributable to music usage."

"DiMA is studying the 153-page decision, and at this point the only certainty is that the court's complex rate formula will require several weeks of additional consideration, including perhaps additional court hearings, before its impact on the parties (Yahoo!, AOL and RealNetworks) and other ASCAP licensees is known.”

A copy of the ruling can be found here.

Ticketmaster Buys VIP Firm SLO

Just in case you wanted to spend even more money than you already are on concert tickets, Ticketmaster has acquired SLO Limited, a provider of VIP ticketing services to major touring artists and special events.

SLO's services include concierge delivery of premium seats on behalf of its touring and event clients, creation and fulfillment of unique consumer ticket packages, production and hosting of on-site fan experiences, and concert travel packaging for fans.

eMusic Grabs 2 Earthlink Execs. Joins Caravan Project.

Just days after their move into Canada, eMusic is beefing up its marketing department by naming former Earthlink marketing VP Kip Morgan as Chief Marketing Officer. To support those efforts former Earthlink VP Anna Punsal has joined the music subscription service as VP of Customer Customer Relationship Management. (more)

eMusic's audio book division has also joined the Caravan Project, a partnership designed to boost sales non-profit publishers, as the first digital audio retailer of Caravan Books. Approximately 60 Caravan titles from distinguished non-fiction publishers including Yale University Press, Harvard University Press and The University of North Carolina Press will be available on eMusic in the US and EU within the next few months. (more)

Friday's Music 2.0 Briefing: XM Sirius, Meebo Grabs $25M & Much More

FEATURED STORIES:

• Ticketmaster buys VIP ticketing firm SLO.
• eMusic Grabs 2 Earthlink execs and joins Caravan Project?
• Indie label trade group A2IM turns 3 and hooks up with international Independents Day
• JOIN THE DEBATE: Are Indies bing left out of Music 2.0? and Will the labels share new "taxes" with artists?

> Sirius and XM extended their merger deadline as the FCC's decision looms. (press release)

> Digital NARM will be held next Tuesday and Wednesday in San Francisco.  Hypebot will have full coverage.

> ASCAP responds to the court decision forcing major online music sites Yahoo!, AOL and Real to pay millions of dollars in royalties. (ASCAP) Here's the court decision as a PDF.

> At the same time, more US House members are signing on to oppose performance royalty payments from broadcast radio. (FMQB)

> Meebo, a provider of cross platform web messaging and chat rooms that can be embedded on local sites has grabbed $25 million in funding. (press release)

> A new IFPI and RIAA pamplet and campaign tryies to scare parents into stopping their kids from downloading music  (pdf) Viruses,lawsuits and bear, Oh my!

Winner Of Free Digital NARM Pass

The winner of our free pass to next week's DIGITAL NARM is Laurence Trifon.

I chose Laurence because he's both a contributor to Andrew Dubber's Music Think Tank blog, as well as, an electronic music producer and one-half of the Bay Area group Trifonic. I think he'll have a unique viewpoint to share.

Stay tuned next week for Laurence's posts from Digital NARM. I'm working on some more contests and prizes to keep things interesting. And if you're attending Digital NARM, we'd love to hear from you too. CONGRATULATIONS LAURENCE!

A2IM Turns 3, Joins Independent's Day Celebration

The American Association of Independent Music (A2IM) will celebrate its third anniversary this July 4th in conjunction with Independent's Day 2008, a global event spotlighting the importance of independent music.

July 4 - 6, A2IM will join with the World Independent Network (W.I.N.) for Independent's Day 2008. With 14 trade organizations participating worldwide, the day will include the release of a limited edition digital compilation and an eBay auction of rare paraphernalia.

With 300 members, A2IM is a leading US voice for independent music. In 2007, independent music labels represented over 30% of music sales and 39% of non-terrestrial radio airplay (web radio, satellite radio, cable services, etc.). "The music industry finds itself at a crossroads," says A2IM President Rich Bengloff. "With physical sales diminishing while digital music sales grow both online and in the mobile marketplace, A2IM has become a strong voice for independent labels in meetings with the major labels, artists and their representatives, and third parties who distribute and market our music.

But after three years A2IM as well as other indie advocacy organizations are facing their biggest challenge yet. The major labels are negotiating deals with next generation  music services like MySpace Music, YouTube and Nokia's "Comes With Music" and the indies are treated as an afterthought.

MORE: Will  Indies Be Left Out Of Music 2.0? as well as more about A2IM after the jump.

Will Indies Be Left Out Of Music 2.0?

Behind all the talk of the web empowering the artist and small labels, there's a dirty little secret:

independent artists and smaller record labels are being shut out of Music 2.0.

From MySpace to YouTube and Nokia, the major labels are cutting deals with Music 2.0 companies that include advance payments, equity or a share of revenue. The majors may have lost their stranglehold on distribution and the media, but they are using the clout they have left to grab many of the new revenue streams that are replacing the profits lost from sales.

SURVIVING ON LEFTOVERS AGAIN...

But very few deals have been announced with indie labels or revenue offered to D.I.Y. artists.  Trade groups like Merlin and A2IM are "in talks", and the net companies say, "Be patient, we'll get to you".

What will be left for indie music once the major labels have grabbed equity positions in some companies and drained other revenue streams dry?

WHAT DO YOU THINK?

Thursday's Music 2.0 Briefing: Online Owes $100M, HypeMachine Worth $10M & Much More

HYPEBOT FEATURES:

• Are Indie Artists & Labels Being Shut Out Of Music 2.0 By The Majors?
• eMusic has launched in Canada

> Online music services could have to pay songwriters as much as $100 million in royalties according to a court ruling. (Reuters)

> Rumors have Viacom trying to buy music blog aggregator Hype Machine for $10M. (ValleyWag) Rupert, I'm over here!

> Radiohead says the pay what you want album release experiment was a one off. (Reuters)

> Virgin Mobile has teamed with Burger King for a $1 ringtone promotion.

> An ad hoc group called Project Unfound Artist is using crowd sourcing to find artists with unclaimed royalties sitting with SoundExchange. (P2Pnet)

> A judge has rejected the "because its available to share, it must be illegal" theory that the RIAA has been using to sue thousands. (News.com)

We're Teaming With Crazed Hits...

We're teaming with the popular A&R focused blog Crazed Hits who will be carrying Hypebot's Daily Music Industry News briefing every morning. And at least once a week we'll be sharing some of Crazed Hits' picks for up and coming artists.

Stay tuned..

eMusic Launches In Canada

eMusic launches its subscription music and audio book service in Canada today. The company's catalog of 3.5 million tracks includes such Canadian indie labels as Nettwerk, Arts & Crafts, Justin Time, Secret City, Mint and Paper Bag.

Canadian pricing is a bit higher than in the US. After 50 free downloads and 2 free audio book at sign-up:

Music

• eMusic Basic  -  30 downloads $11.99
• eMusic Plus  -  50 downloads $17.99
• eMusic Premium  -  70 downloads $23.99 

Wednesday's Music 2.0 Briefing: XM & Sirius, EMI Cost Rises & Much More

HYPEBOT FEATURES:

• eMusic launches in Canada
• Universal and Sony BMG have invested in MOG
• The Top 10 Stations on SM and Sirius
• Grand Theft Auto adds in game downloads from Amazon
• New Coldplay explodes on Last.fm
• JOIN THE DEBATE: Will labels share new "tax" revenue with artists?  We're working on an indepth story and want to here from you.

> XM and Sirius have delayed their annual meetings pending their merger.

> The cost of Terra Firma's purchase of EMI could rise 170M pounds sterling because of previous pension plan commitments. (FT)This could also be slowing restructuring plans.

> MySpace has launched a karaoke channel powered by fellow Fox company kSolo.  Users with a mic can sing along to hits and store up to 10 songs for the world to hear. (OurDigitalMusic)

> Weezer is promoting its new CD via a "Food Fight" on Buzznet. (press release)

>  Retailer HMV is launching a social networking site "Get Closer". (Telegraph UK)

> WORTHY CLICK: Mobilearts.net's mission is to share music from many countries with the world.  This French based English language site shares free downloads and more.

Universal And Sony BMG Invest In MOG

Universal and Sony BMG have joined The Angels Forum 74 in a $2.8 million investment in music social networking site MOG. The major labels are desperately trying to broaden their failing business model; and part of that strategy has meant investing in Music 2.0 companies including Buzznet and now MOG.

COMMENTARY: There's a lot to like about MOG including a nice player and some deep user generated content.  But I've never been a fan of the part of their interface which requires that you let MOG look at the music you store on your computer.  Will Sony BMG and Universal now be able to see that copy of Bowie Live in Berlin that I grabbed from Pirate Bay? And if so, what will they do about it? 

Top 10 Stations On Sirius And XM

Based on weekly cume via RAIN

At Sirius:
   1. Howard Stern’s “Howard 100”: 1,200,000
   2. “Hits 1” (CHR): 584,800
   3. “Howard 101” (description here): 501,100
   4. “New Country”: 468,300
   5. “Big 80s”: 417,900
   6. “Octane” (hard rock): 383,700
   7. “Classic Vinyl” (early classic rock): 347,100
   8. “Classic Rewind” (later classic rock): 335,500
   9. “The Pulse” (90s and contemporary hits): 330,000
  10. “Totally 70s”: 309,400

At XM:
   1. “Top 20 on 20” (CHR): 1,049,200
   2. “Flight 26” (modern AC): 741,600
   3. “80s on 8”: 698,300
   4. “70s on 7”: 687,400
   5. “60s on 6”: 581,300
   6. “Highway 16” (new country): 579,500
   7. “Top Tracks” (classic rock): 534,900
   8. “The Blend” (Lite pop hits): 532,400
   9. “The Heart” (love songs): 493,400
  10. “Fox News” (news/talk): 464,800

New Coldplay Explodes On Last.FM

1 PLAY EVERY TWO SECONDS SINCE RELEASE

UPDATE:  As of Wednesday AM  it has currently been listened to on Last.FM over 33,000 times, still around 1 play every 2 seconds.

Last.fm says the new Coldplay single ‘Violet Hill’ has been listened to 10,000 times in the 5 hours since it was released this morning. That’s 1 play every 2 seconds. The last time a track was listened to this much on Last.fm was ‘15 Step’ from In Rainbows, which clocked up close to 22,000 listens in 12 hours.

"It’s a pretty impressive listening figure for Violet Hill, suggesting you can’t go wrong giving people access to free music – something you know we approve of." says Last.fm PR manager Christian Ward. Coldplay are one of the most popular bands on Last.fm with 51 million listens.  The track is also being offered as a free download for a week on the band's web site and free NY and London concerts are said to be in the works.

Grand Theft Auto Tags Amazon For In Game Downloads

Starting today, players of Grand Theft Auto IV can look up songs they hear in the game with the touch of a controller, then access and download personalized playlists of those songs from Amazon MP3.

Amazon has also added a dedicated storefront promoting music from Grand Theft Auto IV. The store is organized by radio stations within the game, and will feature the new 16-song album “The Music of Grand Theft Auto IV”.

Here’s how "discover and download" works: While playing Grand Theft Auto IV, players can listen to 200+ songs across 16 in-game stations. A new GTA IV feature called ZIT lets customers ‘tag’...

N.I.N. - Serving The True Fan, Again

Yesterday Nine Inch Nails announced a unique concert pre-sale that offers registered fans the best seats, a ticket imprinted with their name, early venue access and more. Mastermind Trent Reznor even shares that he's not sure he can't do better:

"We've been working very hard to get the best tickets in the hands of the fans, bypassing scalpers, ticket resellers, and ticketing agencies... This has been a difficult process to bring together outside of The Spiral (NIN's fan club), and frankly, it's a work in progress."

Combine the pre-sale with the recent d.i.y. album release that offers everything from a free 9 track sampler to a $300 Ultra Deluxe Limited Edition, and you get a picture of a musician deeply concerned with serving fans.  Whether the motivation is morality or commerce really doesn't matter. Reznor gives all his fans - from the casual to the committed - what they want.

There's really nothing revolutionary here, he borrows many of his marketing concepts from others. But like any good artist that borrows from the past and present, he  combines concepts in unique ways that speak to his audience. In doing so, Reznor is paving the way for the next generation of musicians who control their content and thrive via a connection to fans. There's no reason that next-gen music execs can't follow Reznor's lead as well.

Tuesday's Music Briefing: WalMart Pricing, ProjectPlaylist Sued, Coachella Radio & More

UPDATED

HYPEBOT FEATURES:

• Nine Inch Nails - Serving The True Fan, Again
• Op-Ed: Will Labels Share New "Taxes" With Artists?
• Nokia's "Comes With Music" Comes With High Price
• iTunes Turns 6. Danger ahead.
• WB Records seeks LA interns
  
• VOTE:  An iTune's market share poll

> WalMart continues to push CD prices downward with a slew of $5-$10 newer titles. (WalMart.com CD's Under $10 via DMN)

> Apple is threatening UK lawsuits to stop cheaper iPods imported from the US. (Register) I guess Steve thinks he can manipulate the global economy too.

> Nine labels are suing ProjectPlaylist.com citing massive copyright infringement. (Reuters)

> Clear Channel is launching a new eclectic radio format inspired by the Coachella Festival. It debuted this weekend as a mock pirate radio station at the festival and now moves online at erockster.com and eventually to HD radio. (NY Post)

> TouchTunes is partnering with Rock The Vote for a mobile register to vote campaign. (press release)

> A look at the next generation of music execs at EMI and Sony BMG. (FT) When they talk about guys in their 40's being the "next gen" in banking, I accept it. When its music, next gen should mean 20's.

Warner Brothers Records LA Seeks Interns

FROM WBR: If you are in the LA area,we are seeking interns. You can get school credit. We need interns who can work their way through technology systems such as mailing list managers, content management, uploading graphics, updating social networking sites.

Basic HTML or PHP is a huge plus. We have a cool work environment that is super casual and fun.

E-mail wbrtech(@)gmail.com with a resume.

Op-Ed: Will Labels Share New "Taxes" With Artists?

Former indie promo man David Sherbow shares a very different perspective in this rebuttal to our recent Op-Ed from Music Manager Forum CEO John Webster on the a proposed iPod tax:

Through my independent promotion company I have broken over 100 No. 1 records over the past 10 years.  I have managed and booked lots of acts in my life.  There is not much I don't know about record companies and what they do. 

Lately, record companies especially are doing everything they can do to manipulate  ISP's and device manufacturers to pay what amounts to a tax to help subsidize creativity and facilitate the future for musical artists everywhere.  Does Mr. Webster or anyone else for that matter know exactly how those at the top of the value chain, i.e. record companies, plan on filtering this potential billions of dollars collected by them down to artists at the bottom of the value chain?  Mr. Webster does not speak to this.

I have seen a lot of recording contracts in my 30 years in the business and I don't remember seeing any clauses anywhere that will cover how an artist signed to a particular label may share in these types of proceeds that will be generated from this new "tax."

I have never had faith in the integrity of large record companies distributing their proceeds fairly.  Maybe some of that faith will be restored if  I can really understand how record companies plan to share this money with their artists and what procedures will be put in place to insure a fair and equitable distribution of these new funds. - David Sherbow

Nokia's "Comes With Music" Comes With High Price

NEW DETAILS EMERGE

Nokia is looking at a "crippling" financial bill for its "Comes With Music" program bundling free music downloads with phones, according to the UK's Register.

Universal Music and Sony BMG are on board and The Register claims that Nokia must pay the wholesale per-unit rate for downloads over a certain ceiling - reportedly just 35 songs per user. "It will cost Nokia a fortune - it's a reckless business move," an insider and supporter of the concept told the Register who also claims that at least two senior execs have been replaced over problems with the business strategy.

COMMENTARY: Something feels wrong with these numbers; but as I've written before, the devil is always in the details. I've asked repeatedly how the money would trickle down to artists and that question remains unanswered. But if the Register's reporting is true, the money the labels will receive are even higher than anticipated.

I also predict that if these numbers are correct "Comes With Music" will not come for long.

iTunes Turns 6 - Much To Celebrate, But Danger Ahead

iTunes celebrates its 6th birthday today.  With an estimated 70% of the worldwide music download market, Steve Jobs & Co. have much to be proud of. A new InStat survey predicts that 25% of the overall worldwide music market for iTunes by 2012. But to maintain its dominant position, iTunes has much work to do and some tricky competitive waters to navigate.

Six month after Amazon began offering DRM free downloads from all four major labels and thousands of indies, the majority of music sold on iTunes still carries Apple's proprietary DRM that tethers downloads to Apple created products. The labels may or may not be to blame, but its hard to imagine that Jobs could not move the DRM-free forward if he chose to.

As DRM free music spreads to more stores and new services, iTunes will find that it has more than just Amazon to compete with. MySpace Music, Nokia's Comes With Music, imeem, WE7, SpiralFrog, Rhapsody and Napster, niche players and services not yet imagined each have the potential to whittle away at Itune's market share.

Then there's the slow rate of digital music adoption. 85% or more of music is still sold via physical formats. Some consumers are unwilling to give up their home stereos and their autos don't have compatible docks. So, for many, the CD still feels like a more portable product.  RIAA lawsuits, label embedded copy-protection and Apple's insistence on its own proprietary DRM have all led to consumer confusion and among younger buyers deep cynicism.

Congratulations iTunes, on your 6th Birthday. But look over your shoulder; there are a bunch of kids chasing you.

POLL: WHAT DO YOU THINK ITUNES' MARKET SHARE WILL BE BY 2012?  VOTE HERE.

POLL: Predict iTunes' 2012 Market Share

Opinion Polls & Market Research

Monday's Music 2.0 Briefing: RIAA Stats, We7, Metallica D.I.Y. And Much More

HYPEBOT FEATURES

• The Music 2.0 Week In Review
• Join the debate: "Will Music Become A Modest Niche Business?"
• A Seeqpod player with all the Coachella bands

> The RIAA releases in depth sales figures for 2007.  No surprises, but interesting reading if you want to understand the stats behind the pain. (pdf)

> The biggest IP offenders are in Russia, China...and Canada...A new study via ars.

> We7 adds promised free streaming for 500,000 SonyBMG acts and some indies. (press release)

> Metallica hints they be the next major band to go the D.I.Y. route. (Rolling Stone)

> Irish ISP is sued by record labels for aiding piracy. (DMW)

> iTunes could capture 25% of worldwide music market by 2012. (Wired)

Did You Miss Coachella?

Thanks to Seeqpod, here's a great way to sample music from each of the bands. It's also a smart use of new technologies to share Coachella to those who could not be there.

Join The Debate: Will Music Become "Modest Niche Business"?

"It's very 'in' now to hate the major labels, and I won't defend many of their practices. But the fact remains that at least 75% of your favorite albums came from one of theses companies. To think that the death of these companies will not result in lower-quality releases is wrong." - Barry M

"Is there money to be made in music 2.0? Absolutely! Accessibility is as great as ever and music consumption is at all time highs. Now, we must figure out a way to monetize that situation." - Adam Wexler

"Music will never become just a niche business. 99% of those in the digital music space continue to abdicate the function of new core artist music discovery to major labels and their larger independent counterparts." - David Sherbow

JOIN THE DISCUSSION HERE.

Music 2.0 Week In Review: Capital Layoffs, Nokia Denies Payments, Starbucks Cuts Music & Much More

> There were major layoffs at Capital and Virgin Records, but Greg Thompson was promoted to EVP of a combined promo staff

> Nokia denies making high payments to labels for "Comes With Music". Sony BMG says they'll sign on anyway. I still want to know how the acts get paid.

> The slow economy is beginning to effect entertainment spending

> Starbucks is pushing music to the back burner

> Only 42% of music consumed in US is paid for

> Microsoft says it will stop supporting license keys for songs bought at its own former MSN Music. Bad move.

> Will music become a "modest niche business"?

> Music magazine ad revenue dropped 28% last quarter

> An Op-Ed from Jon Webster of the Music Managers Forum in support of the UK iPod tax

> MySpace has launched 1000 outside applications for use on personal pages

> Looking back at a big month of deals and changes in the new music industry

> Concert giant Live Nation plans an ambitious slate of summer contests despite a slowing economy

> Sonific's Songspot has shut down blaming major labels.

IN BRIEF: SXSW sets '09 dates, eMusic added more classical, EMI Pub promoted two execs, Sony bought Gracenote, Fontana to distribute Pulse, Andy Kingston now EVP Sonicbids, SprialFrog hired Russ Geiger as VP