hypebot

Week In Review: Rhapsody MP3, Shakira 360, Pirate's Dilemma & More

• FEATURE:  WHERE HAVE ALL THE GOOD MANAGERS GONE?

> Rhapsody goes all MP3 with a $50M ad campaign.

> Warners signs on with Nokia's Comes With Music service.

> Shakira signs a 360 deal with Live Nation. Rumor: Nickleback may be next. 

> Revenue streams tipping to digital and mobile for UK labels.

> NARM calls for common digital and retail release dates.

> Book: The Pirate's Dilemma. Many important innovations have morphed from borrowed beginnings.

> US Copyright Office finally adds online registration.

> Some out-of-print Frank Zappa catalog gets digital release 7/8.

> EMI will distribute Welk's Vanguard and Sugar Hill.

> VIDEO: Bono's new music subscription service to benefit (RED) AIDS charity.

> SoundCloud offers free track delivery. Grab one of 200 beta invites.

Zappa Catalog Hits iTunes, Amazon 7/8

I'd post this for the photo alone, but in fairness Tunecore scores again with the delivery of some long out-of-print Frank Zappa CD's to digital as of 7/8.

The Zappa Family Trust will celebrate Independence Day by making Zappa's "Beat The Boots" series, totaling 148 tracks, for sale online. These will be the only authorized Frank Zappa albums available on iTunes.

Originally conceived by Frank Zappa as a way to outsell bootleggers...

Celebrate Independents Day '08

July 4th is Independence Day in America, but worldwide it's also a celebration of independent music.

Starting in New Zealand and ending in the US, activities include an auction of independent music memorabilia via eBay and limited edition albums featuring independent talent from all over the globe supported by a retail campaign and series of one-off music shows and retrospectives across TV and radio. Proceeds benefit independent music initiatives. Learn more and get involved here.

Pirate's Dilemma: Best Stuff Is A Steal

In his controversial book "The Pirate's Dilemma - How Youth Culture Reinvented Capitalism" author Matt Mason argues that most innovations are drawn from the previous creations of others.  Attempts to stop "borrowing" slows progress and stifles creativity according to Mason and from the industrial revolution to mix tapes, he makes a compelling argument.

In keeping with his own manifesto Mason is offering a free download of the book using the Radiohead pay what you want model here. The book turns the concept of piracy on its head much like the Ramones did for pop music - its honest, irritating and exciting all at the same time. Watch a video summary after the jump.

Shakira Inks $70M Live Nation 360

Shakira has inked a full 360 with Live Nation for a reported $70-$100 million.  The concert giant will now handle the pop star's recording, touring, merchandising and other rights. But first she must deliver three records to Epic: one English, one Spanish and a greatest hits.

These deals leave me asking : Do mega 360's like this which join LN's portfolio of Madonna, U2 and Jay-Z really make financial sense?  And how can labels, who have no concert arms, compete? Or could concert competitors like AEG and C3 partner with major labels to offer their own alternative?

Today's Music Briefing: Mid-Year Sales, NIN, Guitar Hero & More

> Thanks to a 30% rise in digital, overall music sales are down only 11% in the first 6 months of the year compared to 15% drop last year. (Billboard Mid-Year Sales)

> iHipHop has launches as an online community offering hip hop music, videos, news, forums, commerce and social networking tools. Formerly crackspace.com, iHipHop launches with almost 800,000 users.

> Nine Inch Nails is once again using TuneCore to deliver their music to online retailers. The band's new album, 'Slip,' will be made available digitally via TuneCore at iTunes and AmazonMP3.

> UK youth pop culture hub SuperSweet has added a digital music store and fashion shop.

> Album release partnerships as a promo strategy for music sites. (cNet)

> Analysis: Will Guitar Hero Save The Music Industry? (DMW)

> Razor & Tie pacts with manger Gary Gersh's ATO for an indie imprint. (FMQB)

Last.fm Streams Radiohead On Demand

Radiohead is using Last.fm for free, ad-supported on-demand streaming of "In Rainbows". The full album will be made exclusively beginning this afternoon here. The rights were licensed through the one stop digital licensing platform that Radiohead and publisher Warner/Chappell Music created last year. The service enables rights users around the world to secure from one destination all the necessary digital licenses across both the recording and publishing rights subject to band approval.

Revenue Streams Tipping For UK Labels

Figures released by UK record company trade organization BPI show that label revenues other than physical or digital sales increased 13.8% to £121.6 million in '07 from £106.9m in '06. These additional revenues now account for 11.4% of UK label income. 360 deals with newer artists helped grow additional income by 13.8% to £121.6m as these new business models begin to generate returns..

While new revenue streams are still in their developing stages. they provide hope for a beleaguered label sector. I was unable to find similar figures for the US. but suspect we're behind  the UK particularly in 360 revenues.

Starbucks To Close 600 Stores

On the heels of an announcement that Starbucks is cutting back on music for sale in stores to a mere 4 CD's, comes word that they are closing about 600 underperforming company-operated stores in the U.S. including 100 targeted in a previous announcement. Starbucks also expects to open fewer than 200 new U.S. stores in fiscal 2009. (more)

CIMS Indie Store Top 200 Chart

For the week ending June 29, 2008
    
TW LW Artist       Title
1 D SIGUR ROS MED SUD I EYRUM VID SPILUM END
2 1 COLDPLAY VIVA LA VIDA
3 D ESCOVEDO,ALEJANDRO REAL ANIMAL
4 4 LIL WAYNE THA CARTER III
5 2 MY MORNING JACKET EVIL URGES
6 6 FLEET FOXES FLEET FOXES
7 D LESS THAN JAKE GNV FLA
8 D MOTLEY CRUE SAINTS OF LOS ANGELES
9 D RECKLESS KELLY BULLETPROOF
10 5 WOLF PARADE AT MOUNT ZOOMER

Wednesday's Music Briefing: EMI Layoffs, MySpace Inflators & More

> The layoffs continue at all EMI labels.  I hear new sad stories almost daily coming from almost every corner except publishing and digital. Artist managers are telling me they have no one to talk to and see few left to market their releases. Inevitably this is a transition for the label group, but at this moment with blood everywhere and an an empty top executive suite, its hard to imagine a bright future for EMI and those left to run it.

> A look at the world of inflated MySpace play counts and who site OurStage may be the new A&R source of choice. (Listening Post)

> Spiral Frog has added an automated update to Windows Media Player 11 which helps the service run better. (press release) 1) Is this press release worthy? 2) Isn't this admitting your platform isn't very felxible? 3) Don't you know that anything that updates something on their computer automatically makes people nervous?

> 7digital.com is giving away a Tricky track celebrating launch of the new album, "Knowle West Boy". The UK based download store is also streaming the album free, a week before the release.

> WORTHY CLICK: TheBizmo.com lets you create a UK based web store to sell downloads, images, ringtones, tickets, merch and more.

Nokia's Comes With Music Adds WMG

Warner Music Group has added its catalog to Nokia's Comes With Music service and the Nokia Music online stores. Universal, EMI and Sony BMG have previously inked deals that are said to have come with a hefty price tag. (Correction: EMI is still in negotiations with Nokia.)

Comes With Music is expected to launch in the second half of '08 on array of Nokia devices in select territories. With a new device purchase, consumers will have access...

SoundCloud: Free Track Transfer

200 EXCLUSIVE INVITES FOR HYPEBOT READERS

Sometimes I need to send tracks to 10 or even a 1000 people on a media lost or fan club.  Up until a Hypebot reader who thought it should have made my Top 10 Music Marketing Tools told me about SoundCloud there was no good solution. This free online service solves the problem, enabling easy track transfer to a predetermined network or a group of email addresses.  You get to choose if the files are downloadable or not and they even throw in an embedded player.  With SoundCloud you can:

SEND MUSIC - Send tracks to one or 1000 people; any size, any format, super fast and flexible.

RECEIVE MUSIC - Email, FTP and Mega Super Send File all suck for receiving music. Get a music only inbox instead (play button included).

EXCLUSIVE INVITES: Because SoundCloud is for music professionals, the free service is invite only. But if you're one of the first 200 Hypebot readers to hit this link you can consider yourself in.

NARM Calls For Fixed Release Dates

NARM has issued a strong call for common release dates across digital and physical retailers in an attempt to protect its core brick and mortar membership. But digital pre-releases and online promotions are now a core promo strategy and it's doubtful they can reverse the trend.

"While recognizing the continuing shift in physical and digital album sales patterns, the Board of  Directors of the National Association of Recording Merchandisers (NARM) reminds the industry that the accepted practice is for all album releases, regardless of format, to come to market  simultaneously  on Tuesday.

It is simply good for business that this practice is respected. If not, the Board feels we are opening the  door for chaos in the marketplace

Video: (RED) Charity Music Subcription

Aids in Africa charity (RED) is launching a new monthly $5 for three exclusive tracks subscription service with some heavy hitters like U2 and Elton John.  Revenues will be split between the charity and the artists and labels. PassAlong was chosen to power the downloads and in this video from DMW, the company's Dave Jaworski shares details.

Copyright Office Adds Online Registration

The U.S. government can seldom be called an early adopter and the Copyright Office kept that tradition alive with their slow paper based copyright process. That all finally changes today with eCO and online registration.  The new system offers:

• $35 vs. $45 filing fee for a basic claim;
• faster processing
• earlier effective date of registration;
• online status tracking;
• secure payment by credit or debit card, or electronic check
• ability to upload certain categories of deposits directly into eCO as electronic files.

Tuesday's Music Briefing: Rhapsody Yawns, EMI Sues Hi5 & More

(UPDATED) HYPEBOT FEATURES:

• WMG becomes 4th major to ink with Nokia's Comes With Music
• SoundCloud offer free rack transfer.
  
  • 200 EXCLUSIVE INVITES!
• VIDEO: Bono's (RED) charity music subsription
• US Copyright Office adds online registration
• EMI to distribute WELK's Vanguard, Sugar Hill and Ranwood
• JOIN THE DISCUSSION: Where Have All The Good Managers Gone?

> Live Nation close to $70M 360 deal with Shakira. (NY Post)

> Neil Young this digital download audio sucks and he's talking to labels about his plan to do something about it. (FT)

> Rhapsody's new mp3 store gets a big yawn from ars. I agree. Also I've now learned that free full song streaming is limited to 25 per month. Too bad.

> EMI has filed suit against social networking site Hi5 claiming the usual copyright infringement. (Billboard.biz) Sometimes the most exposure these new sites is when they get sued.

> Talk about viral...Shaquille O’Neal’s notorious anti-Kobe Bryant freestyle rap now available as a free ringtone downloadable at FunMo.com.

> I'll do a full post later this week but don't forget that July 4th is also Independents Day '08  celebrating independent music worldwide.

> CORRECTION: I got the links wrong on this last week; so wanted to correct it and republish it. Digital music entrepreneur Bruce Warila postulates "Digital music can't be marketed; it can only be found." (Music Think Tank) I don't agree, but Bruce is a smart guy and its worth the short read.

Live Nation Names Ticketing Head

Live Nation has promoted Nathan Hubbard to CEO of the company's ticketing unit. In this expanded role, Hubbard will lead Live Nation’s exit from Ticketmaster and the creation of their new ticketing unit as well as LiveNation.com.  Hubbard came to Live Nation in 2006 through the purchase of Musictoday, where he was CEO. Musictoday pioneered a system which Live Nation now uses to sell 2 million tickets annually to registered fan club members. (Press Release)

EMI To Distribute Welk's Vanguard And Sugar Hill

Welk Music Group, which includes labels Vanguard, Sugar Hill and Ranwood, has entered into an agreement for EMI to provide digital and physical sales and distribution services on a worldwide basis.  In addition, EMI will provide licensing and synchronization services on a non-exclusive basis.

ANALYSIS: Welk has previously been one of the rare labels that was self-distributed. But at a time when "going indie" is the trend, it is interesting that a solid label group like Welk would pact with a major. The move could, however, reflect both the cost of maintaining a sales force despite shrinking physical sale industry wides and EMI's desire to put more product through its existing sales system. PRESS RELEASE AFTER THE JUMP.

Rhapsody Gives Away 100K Albums

The first 100,000 people to sign up for an account on Rhapsody's new mp3 store will receive a free digital album of their choice.

• Grab your free album here
• Press Release
• More info on the launch

Where Have All The Good Managers Gone?

Acerbic music commentator Bob Lefsetz recently wrote a column Saving The Music Business:

"Want to save the music business? Manage a band. Nurture talent. Do everything in your power to get it exposed...Talent. That’s where the business is focused today."

Bob is right; management is where it's at. I'm not talking about the old guard like Irving Azoff's Frontline. He and his cohorts stopped developing new talent long ago. These mega - managers hold great power, but use it to smartly prolong careers and monetize somebody else's luck and hard work.

That leaves a younger generation of managers to save the business. But as the head of  Skyline Music, a booking agency with both established and developing acts, I can say first hand that the industry is suffering from a drought of good new managers that possess the skills needed to help artists succeed in the new music business.

10 or 20 years ago hundreds of smart people who...

Rhapsody Makes $50M MP3 Bet + Analysis

PARTNERS INCLUDE YAHOO, MTV, iLIKE. VERIZON ADDS MOBILE MP3'S.

Rhapsody America opens an all mp3 store today backed by a $50 million marketing campaign aimed straight at iTunes. Rhapsody's reach is extended as the download provider for Yahoo,MTV and iLike whose music application is popular on Facebook. The DRM free tracks are also available over the air via Verizon Wireless.

Rhapsody is the leader in subscription music, but decided it also had to compete with iTunes head on to succeed. "We're no longer competing with the iPod. We're embracing it," said VP Neil Smith. Consumers can listen to full songs before buying vs. 30 second samples on most stores. Tracks are $.99 with albums at $9.99. This matches iTunes and Napster, but is higher than Amazon. (Details and a Verizon press release after the jump.)

ANALYSIS: With $50 million in marketing and partners like MTV and Verizon, Rhapsody may be able...

Monday's Music Briefing: Baidu, Nashville, Shockhound & More

HYEPBOT FEATURES:

• Rhapsody Bets $50M On An All MP3 Store & Analysis
• Where Have All The Good Managers Gone?
• EMI Claims It's Profitable After Cuts
• U2 Defends Radiohead In A Letter to NME
• Last Week's Music 2.0 Week In Review

> The major labels may be suing Chinese ISP Baidu but 3 large local labels are partnering with it for a new music service. (Variety Asia)

> A good series on the new realities of the music industry in Nashville.  (Tennessean)

> AIDS non-profit RED is set to launch a $5 three song monthly music subscription with exclusive content from super-stars like Bono, Bob Dylan, Elton John and Elvis Costello. Half goes to the charity and half to the artists and labels. (NY Times)

> Vodaphone makes a deal to add its music events broadcast on MySpace. (Reuters)

> Shockhound is a new download store run by youth clothing chain Hot Topic that sells more than just downloads. (NY Times) Indie music stores have taken the more than music approach with great success in recent years. More download stores could differentiate themselves and boost profits by following Shockhound's lead.  Amazon, which already carries many related items in other stores should test this concept ASAP.

> An essay "How We Listen" on how downloads, Ipods and large music collections are changing listening habits and the music industry. (DigitalAudioInsider)

U2 Defends Radiohead In Letter To NME

"I wanted to set the record straight on behalf of the members of U2 on comments made to the BBC by our much-loved and valued manager, Paul McGuinness, regarding Radiohead's decision to make the music of 'In Rainbows' available as a download, using the 'honesty box' idea for payment."

EMI Records Profitable After Cuts

Terra Firma's Guy Hands has told a group of key investors that EMI's recorded music division returned to profitability two months into its fiscal year.  The numbers include Radiohead's "Best Of" but not the recent successful Coldplay launch.

Also contributing to profitability was a drop in returns from 40% to less than 20% by cutting back on the industry practice of over-shipping. "Guy was clearly pleased with the results but he stressed that it was too early for people to start saying things had turned around," an investor who attended the meeting told the UK's Telegraph.

ANALYSIS: Also not included in the march towards profits were the massive layoffs that began to play out in earnest this week. And while smartly shifting more resources towards catalog and digital efforts. Hands & CO. are still not aggressively addressing the core issue that will define EMI's future - new artist acquisition and development.