hypebot

Today Is They Day We Find Out If Bloggers Can Influence The iTunes Charts

A large group of bloggers and podcasters are urging their fans to join together today March 22nd and make an independently released track #1 on the iTunes chart with a campaign titled "Bum Rush The Charts"

The beneficiary track is "Mine Again" by the band San Francisco band Black Lab. The act was chosen for the campaign in part because it was dropped from two major record labels (Geffen and Sony/Epic) and then had to fight to get their masters back. By making Black Lab #1,even if just for today, organizers hope to send a message to the major labels both about the multitude of great music they fail to support and the power in new independent media. We'll keep ya posted.

KCRW Gets $500K To Experiment Online

LA's KCRW-FM has been awarded a $500,000 grant from The Annenberg Foundation to develop business models to sustain webcasting activities and further its innovative online music service.  The station has been a pioneer on the Internet launching three live streams (simulcast, all-news and all-music) in 1999.

KCRW's GM Ruth Seymour believes that “public broadcasting faces unique challenges in the online world. We have spent years educating the audience about the relationship between listener contributions and programming. But that relationship doesn’t appear to resonate online. Many users listening on the Web may not even understand that they are hearing a real radio station. This is especially true for KCRW’s most successful podcast programs.”

Currently, KCRW.com generates more than 1.6 million live streaming hours per month. In January  nearly 1 million podcasts were downloaded.

LA Times Podcasts Conversations With Legendary Critic Robert Hilburn

In a wonderful series of podcasts new LA Times pop music critic Ann Powers talks music and the music industry with her predecessor, the legendary Robert Hilburn.

Episode 1: Ann Powers and Robert Hilburn chat about their favorite SoCal concert venues (17:12 minutes) DOWNLOAD MP3 (19.6 MB)

Episode 2: Ann Powers and Robert Hilburn file through (don't say list) the artists and albums they've been enjoying so far this year and look ahead at some release to come. (18:25 minutes) DOWNLOAD MP3 (21.0 MB)

Episode 3: How can critics actually listen to every album that comes out? Ann Powers and Robert Hilburn offer insight into the life of the pop music critic. (30:16 minutes DOWNLOAD MP3 (34.6 MB)

Episode 4: Is the continued popularity of "American Idol" the beginning of the end or the end of an era? Ann Powers and Robert Hilburn offer their diverging views. (12:51 minutes) DOWNLOAD MP3 (14.7 MB)

Indie Labels Warming To Podcasting But Majors Still Wary

From cNet News via RAIN  "...to date, the major labels have been reluctant to license full-track songs to the podcasting community because podcasts are downloaded files free of digital rights management protection."

"But there has been some movement on the musical front. Noncommercial radio station KCRW Los  Angeles has posted audio podcasts of its programming since last March, and in January expanded into video podcasting."

"On a case-by-case basis, KCRW has scored permission from major labels to podcast the in-studio performances of acts...(including)Medeski Martin & Wood and Robbie Robertson...KCRW plans soon to launch a "Song of the Day" podcast, featuring music by emerging bands."

"But the music in these podcasts is limited to what is recorded in the studio or from independent acts. Getting full-track studio cuts of major-label content is next to impossible."

"The major labels aren't interested in digital distribution or promotion through podcasting," KCRW assistant general manager Jennifer Ferro says. "I think they're waiting for it to go away..."  Read the full artilce here.

KCRW Offers Two More Daily Music Podcasts

LA innovator KCRW- FM adds two new daily music podcasts to its already impresive online offerings.

Today’s Top Tune will present a song a day that represents a cross section of KCRW’s eclectic format.  Tracks selected are chosen from recent and upcoming releases as well as songs performed live on Morning Becomes Eclectic.  Each song will be available to download and podcast for 24 hours.

The Buzz is a daily four minute commentary featuring a line-up of music critics and pop culture observers who will talk about the latest music industry news, trends and new releases as well as some entertaining personal reflections.  (Find more on The Buzz after the jump followed by the full text of the full press release.)

Each week listeners tune in to over 450,000 hours of streaming and archived audio content on KCRW.com, KCRWmusic.com and KCRWworldnews.com, including upwards of 100,000 hours of video-on-demand and an additional 700,000 podcasts.

Podbop Hooks You Up With New Bands On Tour

The just launched Podbop provides another great example of how the net can democratize music discovery .  Pop in your zip code and the site shows you bands coming to your area and provided you with free downloadable mp3's of the bands to check out.  Grab a little RSS code and the mp3's will download to you automatically podcast-style when a band on the system hits your town. As they describe it:

• Old way: Looking up concerts in your town on an event site, googling 100 different bands, tracking down an MP3 for each band, and then deciding which show you want to go to.
• The Podbop way: Type in a city, get MP3s, discover a band you like, and go see them.

The site is a digital mashup of information driven by new calender and event listing site Eventful.com and unfortunately any events must be listed there first to come up in a search. (Wouldn't linking with a more complete concert database like Pollstar.com, MusicToday, or CelebrityAccess make more sense? Hey, Podbop guys, if you read this and want us to we'll try to hook you up.) And we suggest adding a kind of wide area search.  Our zip code 20 miles outside of LA netted no listings.

But smart indy labels like Saddle Creek, Sub Pop, and Vagrant are already providing free downloads of more than 2300 songs by 1500 artists.  So perhaps as more people get involved and more shows get listed, Podbop's potential can be achieved.

Renegades Like Chris Blackwell & Bob Lefsetz Provide Music Industry Insight With New Podcasts

In The City is a growing UK music convention that seems to still have some of the excitement and openness that is missing in so many industry gatherings.   

Podcasts of two convention keynotes by a pair of  the music industry's most outspoken renegades - commentator Bob Lefsetz and label head Chris Blackwell - have recently been posted on iTunes.  More episodes are promised and you can sign up free subscription to the series there.  The Lefsetz rant can also be downloaded directly here. Worth a listen if for no other reason than to hear someone from the music business speak the truth.

UK Labels License Music To Podcasts

Podcasting may prove to be a fad in the long run, but right now it's the growing media of choice for hipsters and trendsetters. But as is too often the case with new technologies, the music industry is woefully behind the times.  Record labels blame publishers who blame artists who blame record labels.  The net effect is that only music by Indy artists who waive all of their rights and royalties can be featured in this hot new media.  That was until now...

Leave it the Brits, whose music industry is often more adventurous than ours, to find a simple and elegant solution.  The UK's Association Of Independent Music is offering it's member labels and podcasters a blanket global license. While some details are still being worked out ;this creative solution attempts to discourage illegal file sharing by requiring podcasters to place a voice over on top of the first 10 seconds of each track. 

Only time will tell if this six month experiment works. But in the meantime UK Indy labels are going to get exposure that others are missing via some of the thousands of podcasts produced regularly worldwide.

Read the full AIM press release here.

Net Music Promotion Coming Of Age

The net is not just the music promotion vehicle of the future; it's the preferred promotion engine of today.  Hypebot has written a lot about MySpace and internet success stories like Hawthorne Heights.  And much has been written here and elsewhere on how bands like Bright Eyes and labels like Vagrant and more recently Victory use the web to spread the word as radio once did.

An LA Weekly piece gives another nice behind the scenes look at the phenomenon of viral net music promotion which by most accounts has reached the tipping point:

"The year 2005 marked a clear shift from the era of airwaves to the era of iPods. The digital landscape has been laid; the critical apparatus necessary to govern its borders is settling into place. It’s a hierarchy of Web zines, MP3 blogs, podcasts, and message boards with peculiar names like Music for Robots, Coolfer, Stereogum, Brooklyn Vegan and Tracks Up the Tree. An artist can make or break a career via a thousand different sites that are insignificant on their own, but together quite powerful. Even the majors have realized this. New albums by Neil Diamond and Madonna debuted on MySpace.com. The Strokes’ new record has been strategically leaked to the Web, and they are playing a full slate of “secret” shows this December, with the primary intention of generating Internet buzz.."

Read the full LA Weekly article here.

New Video iPod and iTunes Video Download Service Presents New Opportunities For The Music Industry

Apple Computer Inc. has just unveiled anew iPod capable of playing videos evolving the music  device into a multimedia platform.

Videos will now be sold alongside songs on Apple's iTunes Music Store providing a huge potential revenue stream for record labels. But which will be smart enough to jump on the bandwagon with creative products like "the making of" interview clips sold alongside classic songs?  Or will the labels simply recycle old videos.  Not that that is bad, but it doesn't begin unleash the potential for fan satisfaction and revenue that this new device and iTunes video downloading presents.

Related to the new iPod release Jobs also announced a groundbreaking deal with ABC TV allowing the online iTunes store to sell episodes of hit shows like "Desperate Housewives" and "Lost" for $1.99 each, making them available the day after they air on television.  Could video Podcasting be far behind?

Yahoo Jumps Into Podcasting. Music Industry Lags Behind

Reacting as every digital savy company must do, Yahoo "...just launched a beta podcasting service, complete with search capabilities and neatly organized subject areas. The new site, available at podcasts.yahoo.com, also compiles recommendations from Yahoo editors and fans." according to Digital Music News. "The entrance follows a major podcasting push by Apple..."... and investors have bet $8.85 milliom on PodShow a "start-up created by "podfather" Adam Curry that aims to be a key distributor for the format."

Insiders are predicting Google will be the next big palyer to jump into podcasting which now has about 5 million somewhat regular users of this time-shifting technology.  Record labels and other music comoanies are eyeing podcasting too cautiously as they alweays do with new trends.  Songwriter and other royalties remain an issues, but smart music marketers need to find creative ways to jump into the space as Rhino has with their podcasts by music commentator and historian Bob Lefsetz.

Check out Yahoo podcasting here.

Digital Hollywood Opens Today

This week HYPEBOT will be reporting live from the Digital Hollywood gathering.  Learn more about this industry event here.  Passes are still available including an incredibly affordable $10 pass to the trade show only.  The agenda looks impressive.

HERE IS AN EXCLUSIVE INVITATION FOR HYPEBOT READERS ONLY:

Hypebot, if you or your readers want to attend a great session --contact me via email at joycecom@aol.com and I'll arrange for a special one-session only comp to the panel I'm moderating : Tuesday, September 20
3:50 PM - 5:00 PM
Track II:
Next Generation Entertainment and Media Realities: DTV, PVR, Broadband and Hollywood This session is about the future of entertainment, media and technology. The convergence is in progress and we are trying to make sense out of it. Stacy Jolna, Senior Vice President, General Manager, TV Guide Television Group
Cory Treffiletti, SVP, Managing Director, Carat Interactive
Cory Mitchell, Executive Vice President, Business Development, National Cinemedia
Sinbad, comedian, actor & producer
Ritch Colbert, Program Partners -- see you there....P.S. if you email me tell me you saw my note in Hypebot's blog!!!

Joyce Schwarz, JCOM Emerging Entertainment Marketing, Moderator

Email:	joycecom@aol.com
URL:	http://www.joycecom.com
IP:	71.105.76.233

Adam Curry's PodShow Creates PodSafe Network For Musicians, Podcasters, And New Music Fans

According to CNet.com, "The PodSafe music network is designed to give podcasters access to music, other content and tools to create royalty-free podcasts, the company said Tuesday. Musicians can use the network to promote and market their music, while listeners can access music in single-play or podcast formats, the company said..."

"The company said PodSafe will feature music provided by artists or labels that own the rights but are willing to offer their music royalty-free for use within podcasts, as a promotional measure."

"Listeners can subscribe to their favorite music shows...Using CastBlaster tools, producers can create, upload and manage their shows and promote their podshows, the company said."

"...By empowering artists and podcasters, we have created the framework for an entirely new form of music promotion and discovery to emerge."

Music Marketers Must Embrace An Amp'd Up World

Today's young music consumer lives an "always connected" lifestyle that music marketers need to understand and embrace. 

"...They live on e-mail, communicate via instant messaging, change ring tones on their cell phones at the drop of a baseball cap (turned backward, naturally), play video games, download music (sometimes they'll even pay for it), get more of their news from the net than TV and print, experiment with podcasting, read and write their own blogs and access RSS feeds," according to Adam L. Penenberg writing for WiredNews.

"Most of all, they expect to customize their entertainment experience.."

"In short, they are technology consumers....Yet none of the big cell-phone providers like Sprint, Verizon or Cingular has addressed this market exclusively, even though members of gen WHOIS are among their most steadfast customers."

"This is where Amp'd Mobile comes in..."

"...He says that everything you can do at home -- watching TV, viewing movies, listening to the radio or your iPod, downloading music, accessing MapQuest or global positioning systems -- you'll be able to do on a bus, in your car or walking down the street. And you'll do it on a cell phone, which about 60 percent of Americans already own...Combine Wi-Fi with cell phones and satellite radio, and you can create an unbelievable social device."

In the envisioned Amp'd Mobile world your cell phone will be a hub for almost all digitally stored and delivered information and entertainment either functioning as or controlling music listening and downloads, TV (live and recorded), net surfing, GPS and almost anything currently available and imagined on your computer or your cell phone.

Music marketers need to understand and embrace this increasingly personalized experience and provide tools and content that take advantage of this I want what I want when I want it and how I want it" mentality.  Why make the fan wait for the release of a whole album when a song is finished in the studio? Why not have Mick Jagger call you (and 20,000 others) on your cell phone with a link to download last night's concert?  Or if the show is sold out to view live video feeds for a few dollars on your cell phone?  The possibilities are endless if we can embrace the change.

Why Don't We All Use The Many New Ways To Market Music?

For several years now we've wondered why record labels don't point more resources towards the media that does expose new music instead of fighting for the same few spots on broadcast radio.  In a Lefsetz Letter column last week Bob Lefsetz said the same:

You'd think instead of paying for play on terrestrial radio labels would be supporting satellite radio and net radio, with their wide variety of options, with their unlimited playlists. God, sign up for satellite and get five CDs free. Isn't this how "Rolling Stone" built its business?

To those outlets we'd add podcasts, magazine CD and download samplers, P2P's, Mp3 blogs and email newsletters, eCards linked to free downloads and other viral marketing plus a growing variety of music sampling and sharing services.  Get with it music marketers or get left behind!

DIGITAL MUSIC NEWS WEEK IN REVIEW

• The week got started with an unexpected legal challenge. In response to a standard RIAA lawsuit for illegal file uploading, a single soccer mom from New York has decided to go to trial. That is the first challenge of its kind, with most opting to settle out of court.
• Meanwhile, Yahoo will retain rock-bottom pricing on its Music Unlimited service. The store will be heavily promoted by a big-budget advertising campaign later this month.
• Warner Music endured an executive shake-up this week, with Atlantic chief Jason Flom exiting. The move comes at a rough time for the label, and could have been driven by pressure from investors.
• Elsewhere, Sprint Nextel indicated that it would open a mobile music download store by the end of the year. Over-the-air downloads will cost about $2 each. And Sony Ericsson is preparing to launch its W800i Walkman phone in the US later this month.
• Network Live, a new consortium involving AEG, AOL and XM Satellite Radio, will deliver its first concert with Bon Jovi in September.
• And podcasting start-up PodShow recently received an $8.85 million first round cash infusion.

From DigitalMusicNews.com

DIGITAL MUSIC NEWS - WEEK IN REVIEW

• - The biggest news this week came from Japan, with the iTunes Music Store crossing one million downloads after just four days. The intensified a stalemate with Sony, which refuses to license its tracks to Apple.
• - Meanwhile, the US Patent and Trademark Office (USPTO) issued a non-final rejection to Apple on a submission detailing the iPod user interface. The USPTO pointed to an similar patent submitted earlier by a current Microsoft researcher.
• Following a substantial payola settlement involving Sony BMG and New York attorney general Eliot Spitzer, the FCC has now opened its own investigation into the matter.
• Clear Channel continued to advance its plans to spin off both its outdoor and live business units, eventually creating three, separately-traded business groups.
• Online media monitoring firm BigChampagne finalized a data-sharing deal with AOL Music. And at Music 2.0 in the Bay Area, Sony BMG Executive Thomas Hesse pointed to new digital music concepts like release windowing and varied pricing, while also placing a greater emphasis on new formats like ringtones.
• In the financial world, Loudeye posted strong revenues while also suffering deeper quarterly losses. And Creative also suffered a disappointing quarter, with heavy pricing pressures and a write-down in inventories causing net losses, despite increased unit sales.

From Digital Music News

Ex-Byrd Roger McGuin Uses Blog To Connect With Fans

Roger McGuinn may be best known for his work with The Byrds, but those of us who watch the technosphere also know that he's an avid early adopter of technology and the advantages and opportunities it provides musicians.

McGuinn was giving away free MP3's monthly via the old MP3.com long before it was fashionable.  Unlike many "former rock stars", McGuinn could still easily get a record deal, but last year he chose not only to record his own CD in his home studio and to forgo brick and mortar distribution totally by making it only available via online stores like Amazon, the various legal download services like iTunes, and on his own RogerMcGuinn.com . 

McGuinn is already producing a podcast available via iTunes, but it's his blog that caught our eye.  He's certainly not the first musician to use a blog to connect with their fans, but there is something particularly effective about this one including some extremely well written "Roadie Reports" from his wife and traveling companion Camilla. A recent post about McGuinn recording with Dolly Parton is a great example:

• "Roger sat down with Dolly at the recording board and played the tune, then he suggested to Dolly that there was a nice harmony part she could sing. She asked Roger to sing the part. The CD, "Those Were The Days," will be released October 11, 2005 and is filled with the people who sang on the original songs. I wish I could have been a fly on the wall for all those sessions."

Many musicians and music marketers could learn from the straight-forward and honest style of this blog.

Check out the blog here.

Reports From MUSIC2.0 Digital Music Gathering

According to a Radio & Records report from this week's Music 2.0 conference, "The industry consultants and analysts on yesterday's "Roadmap for the Future: Analyst Views of Market Trends and Predictions" ... were generally optimistic about the future of digital music and the record labels..."

"...things are changing in fundamental ways. "People are starting to use MP3 players and portable audio devices differently than portable devices have been used in the past" -- not just for portability but as "central repositories" for their music collections," one panalist said.

"Creative Strategies analyst Ben Bajarin cited his company's research with high school and junior college students, which has found that they often respond to legal digital music services with something along the lines of, "Yeah, it's cool. But I'm not really paying for it yet."

"...Bajarin recommended that the music industry "evolve to develop relevant content" and "push the envelope" artistically to increase their appeal to these young consumers..."

Read the full R&R story here along with other Radio & Records reports from Music 2.0 including "Flexibility, Invisibility Focus Of Music 2.0 DRM Panel" and "'Can Digital Save The Music Industry?".

New Book: "The Art Of Digital Music"

A new book The Art Of Digital Music is getting some buzz and seems worth a read.  We have not seen a full copy yet, but here is an overview from the book's web site:

"Recordable CDs now outsell conventional discs by more than 7 to 1 as millions of music enthusiasts rush to create their own personal soundtracks. Today, nearly every piece of music we hear is touched by digital technology. Following the trajectory of other revolutions such as desktop publishing, musical tools have finally reached that magical intersection of power, ease of use, and standardization that enables the average person to unleash the music that’s within them. And world-class artists have benefited even more from this new creative freedom."

"This book is designed to instruct and inspire two groups of readers: those who want to use technology to make better music, and those who want to learn how technology is changing the way music is created, experienced, and shared. Unlike a typical how-to book, The Art of Digital Music will captivate readers by showing them firsthand how top artists — pioneers such as Alan Parsons, Herbie Hancock, BT, Todd Rundgren, Steve Reich, and Phil Ramone — use digital technology in their work."

"In addition to interviews with artistic pioneers, The Art of Digital Music features lively discussions with...the producers, engineers, software wizards, and Internet visionaries who are shaping the sound of the future. The authors enhance the book with numerous how-to sidebars and provocative pull quotes..."

Amazon has the book on sale at discount here.

Yahoo Launches Music/Audio Search Engine

According to ZDNet "Yahoo recently debuted a beta version of its audio search engine, available at audio.search.yahoo.com. The engine carries an index of over 50 million tracks, and retrieves results from leading stores like iTunes, Rhapsody, MSN Music and Napster. The service also offers a wide range of non-musical files, including podcasts. The engine is designed to be first stop for a wide range of digital music searches, and could help Yahoo increase its overall search engine audience."

"While Yahoo lists results from a long list of digital music stores, the Yahoo Music Unlimited service gets top billing...Listings for 7 other digital music services are revealed after the track title is clicked. For users that want to review their options, Yahoo helps to sift through varying price points, codecs, and even provides direct download links. Clicking an iTunes Music Store download link, for example, spawns the iTunes application and directs the user to the proper download. That type of referral is extremely valuable, and could raise overall volume on paid downloads and subscriptions considerably. But those increases could come at a cost for digital music stores, with Yahoo potentially disrupting carefully cultivated customer relationships."

Defunct Music Magazine TRACKS Debuts Podcast

Staffers of recently defunct music magazine TRACKS have put together the first music magazine in podcast form free to former subscribers.

• TRACKS Audio Edition is now a podcast that focuses on "Music Built to Last." Award winning writer and editor Alan Light covers interesting people and happenings in the music industry, and shares this information through the podcast.
  
  Upcoming Features Include:
• Part One of Alan's interview with platinum selling artist Jason Mraz
• - A report on Ry Cooder's new album Chavez Ravine
• - A profile of the Numerous group -- a Chicago reissue label specializing in unearthing records you didn't even know you wanted to own.
• - New music from
  Benjamin Diamond
  Kathleen Edwards
  Andrea Echeverri
  Iron & Wine.
  Sufjan Stevens
  Sleater-Kinney
  The Decemberists
  Sound Tribe Sector Nine
  
  Published every two weeks, the content of TRACKS is delivered via podcast or as an email attachment. Either way, a subscriber can listen on a computer or the audio file can be copied to a mobile player. According to a letter sent former subscribers the podcast will focus on music that "stands the test of time". It will cover all genres, as well as business, social and spiritual trends in music.

Learn more here.

Click below for the original letter sent to former Tracks subscribers.

CC Radio's Harrison Reveals Net Strategy

FMQB interviews Clear Channel Radio's internet guru Evan Harrision, "It’s been a little over eight months since Harrison’s arrival..."

"...On the Sneak Peek initiative: "There are a lot of options these days for artists and managers and I want to make sure we’re in that game aggressively. What Sneak Peek brings to the table that’s different, obviously, is on-air promotion to millions of music fans a week. At the end of the day, it’s the dual medium that will define what we’re offering here, where we can make something an event on-air and drive people online."

"On the launch of Z100’s Phone Tap podcast and subsequent expansion: "It’s been a huge way to extend our brand. We’ve delivered over one million pieces of content in just over four weeks...Now we’re going to start selling these on a local level where an advertiser can have a 15-second message before that five-minute piece of premium content."

" On the expected overhaul of Clear Channel's radio station Web sites: "You’ll see a complete overhaul of all of our music Web sites before the end of July..."

"On why Clear Channel will win online versus other music Web sites: "In the end, it’s radio’s unique ability to bring something to life on-air, really make an event out of it, and to drive people to a brand that they already trust. To bring them to our own brands online is natural for a listener, and it’s where radio really exceeds in that one-two punch of on-air and then being able to experience it online that really separates us from the pure play online competition."

"On goals for the next year: "Fine-tune the projects that we just started to roll out and...One key feature you’re going to see out-of-the-gate on those Web sites is all of the stations will have a listing of the last ten songs that played as well as the Top 10 songs and any other Top 10 type feature that the station wants to program locally. You’ll also see us pay more attention to label-produced music videos."

The Week In Review From Digital Music News

• The biggest news this week came from the trio of AOL, AEG, and XM Satellite Radio. The group announced a joint venture called Network Live, which will seek to license and distribute live concerts across a number of different platforms. The move comes on the heels of an ultra-successful Live 8 presentation by AOL, which set streaming records.
• Apple also smashed some records, with new earnings and revenue records reported Wednesday. The company quieted concerns about soft iPod demand, with more than 6 million units shifted for the most recent quarter.
• In other earnings news, EMI posted an improved result for its fiscal year-to-date, powered by recent releases by Coldplay and Gorillaz.
• In the wireless space, XM expanded its broadcasting spectrum through the purchase of WCS Wireless. That set the satellite leader back $196 million.
• And earlier this week, the RIAA dropped its case against Charter Communications, opting not to challenge an unfavorable ruling with the Supreme Court. The decision means that the RIAA will continue with John Doe proceedings for future lawsuits against individual file uploaders.

Despite New Media Growth Radio Still Strong

From Radio & Records: "Consumer awareness and use of such new entertainment options as satellite radio, digital music players, Internet radio and podcasting is on the rise, but a new study released yesterday by Paragon Media Research says that all that new media isn't putting a dent in radio listening...

"A full 97% said they listen to radio, compared to 52% for those who listen to Internet radio, 38% who burn CDs and 20% who have MP3 players. The survey also found that a full 82% of respondents have heard of satellite radio and 80% are aware of MP3 players. 75% have heard of Internet radio, and 33% are aware that podcasting is out there...

"...the new media that holds the most potential for future new listening is Internet radio, at 28%. followed by MP3 players, at 22%, and then satellite radio, at 17%."

Read the full Radio & Record Article here.

iPod Sales Soar

For the fiscal third quarter, Apple reported revenues of $3.52 billion, and profits of $320 million, or $.37 a share. Last year profits we're a mere $61 million on revenues of $2.01 billion. While Macintosh sales were healthy at 1.18 million, iPod shipments reached a astounding 6,155,000 units. "We're very pleased to report 75 percent revenue growth and a 425 percent increase in net income," said Apple CFO Peter Oppenheimer. "Looking ahead to the fourth quarter of fiscal 2005, we expect revenue of about $3.5 billion and earnings per diluted share of about $.32."

DIGITAL MUSIC NEWS - WEEK IN REVIEW

• It was an absolutely huge week in digital music, with the Supreme Court dropping a heavy gavel on MGM v. Grokster. The court unanimously ruled against both Grokster and StreamCast Networks, ruling that the pair had knowingly encouraged and profited from copyright infringement. But the court stopped short of condemning P2P technology, limiting liability to those that show a clear intent to encourage and benefit from piracy.
• While file-sharing levels remained largely level this week despite the ruling, the RIAA continued to deliver individual lawsuits. And the Department of Justice coordinated an international offensive against several operators of servers distributing pirated content. Meanwhile, US album sales continued to slide.
• Apple also made a fairly momentous announcement this week, unwrapping its podcast-enabled iTunes v4.9. After just two days, the service received over one million subscriptions. The company also realigned their iPod lineup somewhat, announcing a new batch of podcast-friendly devices that will all carry color screens.
• In the mobile music arena, Verizon reiterated plans to deliver a music store within six to eight months. And more rumors bubbled on a possible deal involving Cingular and the iTunes phone. Meanwhile, the ringtone space continued to balloon, with a recent report showing a $4 billion global market, with a growing $300 million market reported in the US.
• In the satellite radio sector, XM inked a deal with Hyatt, while Sirius announced plans to expand into Asian-language content. Meanwhile, global satellite radio provider WorldSpace unveiled plans for an IPO.

Podcasting Soars And Music Industry Misses The Boat

Apple says that it has surpassed more than 1 Million subscribers to it's free (for now) podcasting download service which was unveiled just 2 weeks ago.  Once again, however, the music industry is late to the party with licensing issues making most music related podcasts illegal, impossible, or unprofitable.  (Sound familiar?).  By missing the potential to reach trendsetting early adopters via podcasts, major labels and artists are ignoring a great way to break new music and costing themselves future revenue.

"With the release of iTunes 4.9, listeners are voting with their ears," former MTV DJ and podcasting guru Adam Curry, told Digital Music News "I predict over the coming months that iTunes will introduce tens of millions of new listeners to the world of podcasting."  LA NPR affiliate KCRW-FM is also reporting tremendous increases in traffic since Apple's unveiling of the new operating system. 

Infinity Broadcasting Bets On Cell & Net Delivery

From The Chicago Tribune, "Joel Hollander, chief of radio giant Infinity Broadcasting, thinks he has seen the future--and it's already in your pocket or purse."

"What happens when you're running a big media company, you have to make bets on the future," Hollander said in an interview Tuesday. "The bet I'm making is cell phones."

"Chicago's WBBM-FM 96.3 looks to be among the first beneficiaries of a deal Infinity cut earlier this year for Visual Radio, a service from Nokia and Hewlett-Packard that enables listeners to receive local FM radio on their mobile phones synchronized with interactive text and graphics."

"...New to the U.S., Visual Radio already is in use in Germany, Sweden, Finland and the United Kingdom. Combined with Infinity's forays into digital broadcasting and Internet streaming, it offers a sense of how the Viacom-owned outfit thinks it will hold its own against competition from iPods and satellite pay services."

"One satellite service, Sirius (which gets Infinity morning moneymaker Howard Stern at the end of the year), just did a cell-phone deal with Sprint. Another, XM, has an Internet arrangement with AOL."

"...Infinity's podcasting experiment with making Steve Dahl's WCKG-FM 105.9 show available for download--minus commercials--is going forward but is 60 to 90 days away...And Infinity's embrace of HD Radio, which provides multiple channels and improved audio, has resulted in WUSN-FM 99.5 adding a second channel."

Read the full article here.

DIGITAL MUSIC NEWS WEEK IN REVIEW

• Perhaps the biggest news this week didn't happen at all, with a widely-expected Supreme Court decision now scheduled for Monday morning. That made this week the calm before the storm, with Monday certain to be an intense day.
• - In the mobile music space, Verizon pointed to a music service by the end of the year, and Japanese mobile operator KDDI counted its 10 millionth full-song, over-the-air download. Meanwhile, Sprint has slowly started to open its closed network, leading to speculation that Verizon will soon follow suit. And BT started testing a mobile service that will deliver tv and radio streams, with Virgin Mobile part of the initial rollout.
• Satellite radio also saw some activity this week, with both XM and Sirius getting a green light to open services in Canada. That will be a tricky rollout for both companies, with a large number of Canadians already tapped into the US-based services. Meanwhile, Sirius inked a deal to transmit BBC Radio 1 broadcasts.
• In the P2P world, BigChampagne joined forces with Yahoo Music, further widening its reporting breadth. And StreamCast unveiled an upgraded Morpheus application, timed to coincide with the imminent Supreme Court ruling. And in the lab, Microsoft continued to tinker with a next-generation peer-to-peer concept, with its Avalance system emulating aspects of the BitTorrent protocol.
• In online music, MySpace pointed to possible e-commerce relationships with Napster and RealNetworks. And New Jersey approved a sales tax on internet content, effectively raising the price of an iTunes download to $1.05.
• Several regulatory proposals also surfaced this week. In Canada, a bill was introduced that would update various parts Canadian copyright law to better address digital formats. In the US, Register of Copyrights Marybeth Peters proposed an overhaul of Section 115 of the Copyright Act.

R & R Convention Mulls Future Of Radio

The Radio & Records convention is happening this week in Cleveland and the challenges facing radio are at the top of the agenda.  Two articles in R & R Magazine offered some suggestions as to how programmers can continue to compete:

- Broadcasters were urged to persue a multi-media/new media future.

"WTOP/Washington Internet Operations Manager Stephen Dolge told the crowd at today's R&R Convention Technology session that radio stations must embrace new delivery methods and find new ways to reach listeners in an emerging digital marketplace." 

Read the full article here.

- Panel of experts preach that radio must innovate to compete.

"A top-notch group of experts told those at today's Jacobs Media Summit at R&R Convention 2005 in Cleveland that technology is evolving at such a fast rate that no one can seem to keep up with it. Among those in on the discussion were Wired Features Editor Thomas Goetz, Electronic Arts Worldwide Executive/Music Steve Schnur, AOL Music Executive Director Jack Isquith, iBiquity VP/Marketing Dave Salemi and Vibes Media exec Jack Philbin...Radio is in better shape than the other media because consumers like radio, they already have it and they use it. They just need to choose it." He also urged radio to avoid the fate of TV and the music industry by "experimenting, innovating, adapting and staying tuned."

Read the full article here.

Live365 Launches Indy Label Podcast Series

Rock Ridge Music, an artist development company/label that launched last year, is taking part in new podcast series on Live365.com called "Live365 SPOTcast."  This series of weekly podcasts will be released this summer, with each week focusing on a different independent label and hosted by the award-winning programmer of BAGel Radio, Ted Leibowitz . Rock Ridge Music’s featured SPOTcast debuted on Friday, June 17th and includes tracks and interviews from label artists and clients. Listeners can download or subscribe to the XML here.

Live365.com is the world’s largest internet radio community, with thousands of stations and three million listeners a month.  The initial podcast series focuses on independent alternative and indie rock and highlights new digital labels and forward-thinking established independent record labels. As one of these tastemaker companies, Rock Ridge has put together a varied and stellar podcast which features: Sinch ("All That’s Left Behind" and interview), Sister Hazel ("World Inside My Head"), Stroke 9 ("Set You Free" and interview), and Love.45 ("Don’t Ask Me" and interview).

Launched last summer, Rock Ridge Music offers its artists a label, artist management (if needed), national distribution, and a place to develop and maintain a solid career in the music business. Rock Ridge Music can be found online at here.

SIRIUS OVER YOUR SPRINT CELL

Digital Music News is reporting that Sprint and Sirius Satellite Radio are planning a wireless internet radio service. "Sprint, which has already dipped its toes into streaming audio and video content, will soon feature several Sirius channels to its subscribers...The move follows a mobile-based streaming audio offering in Britain, with Virgin Radio delivering broadcasts to 3G-enabled devices earlier this year..."

"While the possibility of mobile streaming audio is enticing, many users would simply prefer to have FM-radio access on their phones...The area is just developing, but carriers are more excited about opportunities like the Sirius one because it raises monthly charges, while an FM-radio, device-based installation does not..."

Expect many similar announcements from other cell companies and content providers in coming months.

PS: Sell your the broadcast radio stocks in your portfolio....

DIGITAL MUSIC NEWS WEEK IN REVIEW

• In the portable mp3 player space, Apple announced an iPod recycling program, curbing criticism from environmental groups. Meanwhile, Wall Street investors continued to voice concern over soft iPod demand. Looking forward, Steve Jobs previewed the upcoming iTunes application, which will include integrated podcasting features.
• In satellite radio, XM inked a new partnership with digital audiobook provider Audible. That relationship will see the development of next generation satellite devices, which will be capable of storing Audible content. Meanwhile, Sirius extended its deal with Ford, with the automaker feeling more confident on increased subscriber levels.
• In the regulatory environment, EU mostly expressed satisfaction over a Microsoft compliance  proposal, following months of wrangling. A modified version of the Windows OS is slated for OEM delivery June 15th, with the package lacking a bundled Windows Media Player. Separately, MSN is now said to be readying a music subscription service.
• On the label end, CD sales slipped once again, part of a continued decline in 2005. Meanwhile, scans of the recent Coldplay album appear to be strong.
• But the biggest development came from the indie sector, with a long list of independent labels creating a new consortium.
• And Clear Channel Radio beefed up its online initiative, announcing its first exclusive pre- release album stream.

MICROSOFT MAY ADD MUSIC SUBSCRIPTION SERVICE AND UNVEILS MODIFIED OPERATING SYSTEM IN EUROPE

According to Digital Music News, "Microsoft may be moving closer to delivering a music subscription service, with more sources pointing to an imminent launch. While Microsoft has always left the door wide open to such a move, a big entrance by Yahoo may be accelerating the plans....Of course, Microsoft has remained quiet on the issue. The new service will likely be heavily integrated into the existing MSN Music download store, which has trailed significantly behind iTunes."

"...A big push by Microsoft into the digital living room could also be motivating the move, with Microsoft hoping to play a big role in next-generation entertainment experiences. Meanwhile, the combination of Microsoft, Yahoo and RealNetworks in the subscription space will offer the greatest test for the format yet, with the jury still out on whether consumers want to rent music."

On a related front Digital Music News also reports that, "Microsoft is planning to debut its modified operating system throughout Europe on June 15th, with the Windows Media Player separated from the package. The modified release will be named "Windows XP Home Edition N,"with the "N" indicating that the OS is "Not With Media Player". The unbundled operating system will not replace the current version, it will merely offer an additional option to OEMs...The release follows a tense interlude with the European Union, with Microsoft feeling big heat from the regulatory agency.

KCRW-FM & KCRW.COM ADD LEXUS AS PODCAST SPONSOR

As another example of how far podcasting has come, public radio station KCRW in Santa Monica, CA (89.9 FM and KCRW.com) announced today that the Southern California Lexus Dealers will be the exclusive sponsor of the station’s podcasting line-up, for 26 weeks starting at the end of October.  KCRW is the number-one rated public radio station in Southern California. Unfortunately the station's innovative music program will not be a part of the podcasting initiative dues to complex music licencing issues.

On March 1, 2005, KCRW.com began podcasting its line-up of locally produced talk, news, cultural programs and commentaries, free of charge. The station boasts an impressive number of original shows.

Described by Business Week as "the uber-techie NPR station in Santa Monica,” and as “the cutting-edge…public radio station that has been on the forefront of Internet Radio,” KCRW went online in 1995, positioning itself as an “early adopter” of digital technologies.

KCRW.com now averages 1.5 million page views each week, as well as 500,000 streaming hours weekly. Since March 1, the average number of podcasts downloaded per week was 25,000. During the first week of June, 2005 the number leaped to 75,000.

KCRW.com operates three streams ( the on-air simulcast, an all music channel and a world news service) and features an online audio and video archive of live in-studio performances, as well as an on-demand feature for its most popular music programs, Morning Becomes Eclectic, Metropolis and Nocturna neither of which will be podcast.

Three podcasts that should be of interest to hypebot.com readers include:

• The Treatment   Elvis Mitchell, entertainment/pop culture interviews

• The Business   Variety's Claude Brodesser examines the entertainment biz

• On the Beat with Celia Hirschman   The music industry analyzed

Download the KCRW podcasts here.

Wireless Internet Radios To Be Introduced In US

As if broadcast radio isn't already loosing ground to new media, satellite services, and now podcasting, watch for Internet broadcasting to explode as wireless high speed streaming to cell phones and other devices becomes more common and affordable. According to a press release "...Tatung, a manufacturer of consumer electronics and electrical home appliances in Taiwan, signed strategic alliance with California-based Roku, a globally leading designer of digital media players, to cooperate in development and manufacturing of wireless Internet-radio MP3 players which are equipped hard disk drives (HDDs) and able to receive online radio and download paid music...

"Roku will begin to sell the Tatung-made wireless Internet-radio MP3 players in the US and Europe under its brand name 'Roku' in July this year while Tatung will market them in Asia under its brand name 'elio' in September, pursuant to the strategic alliance..."

The New Yuppie Music Buyer

A recent NY Post story rather unflatteringly profiled a new kind of music fan that music marketers need to pay attention to: "Meet the new yuppie: the urban striver who listens to "O.C."-approved indie rock, checks the right blogs to find out about "secret" rock shows, considers white iPod earbuds the ultimate fashion accessory - and is a lawyer with a mortgage and a baby on the way."

"Whereas once a yuppie was defined as being part of the establishment - think the '80s corporate drone who wore power suits, watched "thirtysomething" and loved the soundtrack to "The Big Chill" - today's yuppie strenuously identifies with all things counterculture."

"The strain was first identified a few weeks ago by Vice Records label manager Adam Shore, who derided what he called the newly created "indie-yuppie establishment" in an interview with the Columbia Spectator."

"He tagged offenders as anyone who identifies themselves through their love of what he considers the ultimate in polite, passive alternative rock: bands like the Shins, the Arcade Fire and the Postal Service that he derides as "comfy music."

Read the full article here.

Infinity Radio Expands Podcasting. Music Shows Still Left Behind.

According to the Hollywood Reporter, "Viacom Inc.'s Infinity Broadcasting radio unit unveiled an expansion of its podcasting activities to its nine all-news stations Thursday as it continues to look for new models amid a challenging radio environment. Subscribers to the free feeds from the all-news stations will get top local and national news, sports, business and entertainment headlines, along with weather and traffic updates. The initiative will begin in July with podcast programs of varying lengths from flagship New York station 1010 WINS. "

When will labels and publishers get smart and eliminate the legal hurdles that make music show podcasts possible?  Can you imagine the potential of a genre specific podcast of new releases hosted by someone you trust landing on your computer or mp3 player weekly?

Paid Product Placement For The Music Industry?

COMMENTARY: A Federal Communications Commissioner has called for an investigation into the growing practice of product placement and paid product pitches in TV and film.  They're not illegal if they are disclosed according to Democratic commissioner Jonathan Adelstein, but too often any disclosure is well hidden or totally absent.

Product placement has become an increasingly effective tool in an era of commercial skipping and TiVo.  And music on TV - whether an appearance on Letterman, a song played on the O.C., or as part of a car commerical - has often proved to be a very effective promotional tool.

So why haven't record labels sought paid product placement of songs or even live performances on TV and film?  Obviously Letterman wouldn't put a band on stage for a few dollars, but why can't Antigone Rising be playing in the background when Jenifer Gardner kicks some evil doer's ass?  Why shouldn't a Spring stein song be given royalty free to the ALF-CI in exchange for promo in exchange for us in a TV campaign.  Wouldn't everyone win?  Ask Sting and Michael McDonald what TV commercials have meant to their careers.

It can't possibly be that labels are morally opposed to pay for play. After all they've been doing that in wide variety ways since God created independent promotion.  It's probably because music marketers - particularly in these downsized times - are among the most uncreative and conservative thinking marketers we've ever seen. 

Product placement is no panacea. But in an era of tight radio playlists and a highly competitive entertainment marketplace, it should be an important arrow in any music marketer's quiver.

Two New Surveys Offer Surprising Insights Into Digital Music

Two new surveys provide interesting insights into digital music usage. 

"While most within the terrestrial radio space view portable mp3 players as a threat, a new study challenges that conclusion," reports Digital Music News. "According to findings published by radio research group Bridge Ratings, the use of portable mp3 players does not significantly alter the amount of time spent with traditional radio. Specifically, the group uncovered an interesting usage pattern, with radio listening levels reducing within the first months of portable mp3 ownership, only to bounce back later. And after a period of several months, Bridge reports that the level of traditional radio listening time actually increases...The survey involved 3120 participants, aged 12 and older, in the markets of Los Angeles, Boston, Phoenix, Ventura, CA and Chicago."

In another survey reported by Digital Music News, "consulting firm Network Management Group (recently surveyed) a large group of consumers to get a better idea of what might succeed. ..Topping the list are over-the-air, full song downloads and commercial-free streaming radio, with ad-supported videos not far behind."

"...Currently, both Verizon Wireless and Sprint are offering video offerings for a $15 monthly surcharge. Verizon is putting big weight onto its V Cast service, which recently added concert footage as part of a deal with Clear Channel. But survey respondents were lukewarm on those offerings, greatly preferring free, ad-supported video content. Meanwhile, price points on full song downloads were also examined, with a large percentage of respondents preferring a 99 cent per download option, mirroring established price points online...The survey involved over 1,000 respondents between the ages of 13 and 34."

Apple Unveils New iTunes Software

According the the SF Examiner,  Apple "...is working on a new update of its popular iTunes music software that will accommodate podcasts, Chief Executive Officer Steve Jobs said Sunday night."

"The new version of iTunes will let users of Apple's music management program and integrated online music store find and download podcasts, which are homemade radio-style shows that have become a grassroots phenomenon on the Internet."

"...Jobs gave a preview of the software at D: All Things Digital, an annual technology conference sponsored by the Wall Street Journal. He later said the new version of iTunes won't be released for a "few months.''

"...Many podcast subscribers already use the iTunes software along with a third-party program to find, download and transfer the shows to their music players. But Apple is designing iTunes to handle all of those functions."

"In addition, Jobs said Apple plans to add a special podcast section to the iTunes Music Store that highlights hot or interesting podcasts in the same way the service already does for songs, music videos, audio books and movie trailers."

"Jobs noted in his presentation that there were already about 8,000 free podcasts available on the Internet, and that Apple plans to create a way for podcasters to submit their work for inclusion on the iTunes Music Store..."

Read the full article here.

Some Indy Bands Allow Podcasters Free Use

From The Wall Street Journal: "Music copyrights are a worry for fans of a new audio medium called podcasting. An online repository for aspiring musicians, GarageBand.com, hopes to turn the problem into an opportunity.

"The San Francisco company is a popular source for people who add music to podcasts, a radio-program style audio file that can be automatically delivered to personal computers and portable music players. That is because artists who store music on GarageBand typically allow songs to be distributed without restrictions, hoping to build a following. Podcasters who use other material, including songs from major record labels, risk lawsuits without negotiating licenses and royalty payments. "

"Creating and subscribing to podcasts typically requires special software. It can be confusing for beginners. So GarageBand is converting its big catalog of music files into a format needed for podcasts, and making it easy for users to subscribe..."

"The new initiative, called GarageBand Podcast Studio, lets music fans subscribe to receive new songs automatically from artists without having to look for them... Users who post playlists of recommended songs on the site also can turn those into podcasts, adding commentary to the music... "

"... The company may insert advertising into podcasts or begin charging for some of the new features, which are now free..."

Study Predicts Demise Of Paid Music Dowloads And Rise In Subscritipions

(CelebrityAccess MediaWire) While online music stores like Apple's iTunes have attracted millions of customers by selling downloads of songs or albums, changing market conditions will make subscription-based music services the dominant model for selling online music in the future. That is the conclusion of "Online Music: Will Napster Be the Next iTunes as Subscriptions Replace Downloads?" a new report from global technology research and consulting firm Strategy Analytics. According to this report, the shift toward subscription music services will be driven by a combination of changing consumer expectations as well as pressure from broadband service providers and record companies.

"The retail download model popularized by iTunes is costly and inefficient," says Martin Olausson, senior analyst with the company's Broadband Media & Communications service. "As the online music market matures, most consumers will place greater value on having access to a wide range of music instead of purchasing a smaller number of songs."

"In addition to changing consumer needs, the report notes that many broadband service providers prefer to offer a subscription service, such as Real Networks' Rhapsody, which generates steady monthly revenues and helps deter broadband churn. Finally, major record companies are dissatisfied with the revenue they receive from low-cost download sales, and will increasingly focus on alternative business models for selling music online." As the online music market evolves, Strategy Analytics recommends that stakeholders in the industry embrace the subscription-based business model and position themselves to take full advantage of the broadband opportunity for online music.

By Bob Grossweiner and Jane Cohen

Hypebot: And this study looks like it was done prior to Yahoo!Music Unlimited entering the marketplace and shaking things up with 30-50% lower pricing!

DIGITAL MUSIC NEWS WEEK IN REVIEW

• While the beta version of the Yahoo Music Unlimited store started to sink in, attention turned this week towards a possible price war. Both Napster and RealNetworks stood firm against price drops in public comments, while MSN offered a curiously-timed digital download giveaway.
• Infinity Broadcasting continued to make noise, most recently experimenting with the first simulcast HD Multicast Radio station. Chicago country station WUSN-FM 99.5 HD-2 now delivers a second programming stream over the same frequency.
• In the portable mp3 player space, discussions in Britain continued to focus on a proposed "iPod tax" to compensate rights holders. A levy on iPod sales is already in place in countries like Germany. Meanwhile, several new devices were unveiled this week, including new contenders from Rio and iRiver. But iPod competitors are starting to feel the squeeze, with Singapore-based Creative experiencing continued stock drops. And some not-so-typical devices are also starting to knock on the door, including a new PDA from palmOne that will be compatible with the Rhapsody application from RealNetworks.
• The battle between ISPs and the recording industry continued to play out in several countries this week. While a regional German court delivering a setback to labels, a Canadian federal appeals court rejected an ISP subpoena request but potentially opened the door to future enforcement. Meanwhile, a big court drama is brewing in The Netherlands.
• In the satellite radio space, XM crossed the 4 million subscriber mark, with company CEO Hugh Panero pointing to ongoing discussions with various mobile carriers.
• On the label end, Warner Music Group announced modest losses in its latest quarter, while Universal Music showed a slight move into the black. And Sony BMG continued to demand the pull-down of its online music videos, with insiders pointing to early negotiations with AOL Music.
• In mobile music, Motorola continued to point to an upcoming iTunes-compatible phone release, downplaying any suggestion that carriers are resistant to the device.

From Digital Music News

Broadcast Radio Threatened By New Technologies

Mark Ramsey in the Mercury's Radio Marketing Nexus writes about how new technologies are challenging broadcast radio, "The phenomenon of podcasting will allow listeners to get both music and non-music content while bypassing radio of any kind...  Meanwhile, my sister doesn’t listen to radio. Her office, her co-workers, and the hundreds of listening quarter-hours they represent every week belong to streaming audio, which will only grow as high-speed connections become ever more ubiquitous... High-speed Internet connections to cell phones are on the horizon – and (unlike radios) cell phones are commonly upgraded every two years... WiFi will be widely available and free to all in cities like Austin, Portland, Philadelphia, New York City, San Francisco and others... Reuters reports that 'Slightly more than 100 U.S. cities…are setting up wireless networks now…[and] close to 1,000 local governments worldwide have plans in the works..." 

Now doesn't seem like a great time to buy Clear Channel stock; does it?