Hypebot Report From Digital Hollywood

I spent most of the day at Digital Hollywood – an annual gathering of the geek tribe involved in all forms of digital entertainment.

Of course as with all good business people monetizing the mess and promise caused by broadband, P2P and related technologies was first and foremost on the minds of those in attendance.  Various schemes including digital rights management technologies, subscription services, and ad supported networks were all discussed in great detail with panelist and questioners alike taking whatever vision of the future their particular business was vested in.

Some random thoughts and opinions from the various panels I attended and conversations that I had:

– Subscribers to the various services (Yahoo, Napster, Rhapsody, etc.) are also avid purchasers of paid downloads.  That may change as various portability issues are resolved by the subscription services.

– Subscribers and downloaders are mostly adults who have "more money that time" according  to Yahoo! Music VP David Goldberg. But they may make up only 1"0% of the potential audience" according to Universal VP David Ring.

– Ring and others stated that a lack of easy (or better yet universal) system of publishing clearances and higher royalties sought by publishers slows growth and innovation in the digital music sector.  No one in attendance seemed to offer much hope for change in the immediate future.

– Mp3.com site director Laura Hess implored labels and content providers to give consumers "added value" with the purchase of CD’s in the form of exclusive access to online content, videos or "perhaps even an online concert broadcast."

– Hess also encouraged content providers to build community to help consumers cut through the mass of content to find things that match their tastes.

– Within a few years broadcast radio will be all talk and information as new audience measurement technologies show advertisers how often listeners flip stations when a song they don’t like comes on, predicted Yahoo’s Goldberg. As proof he reminded attendees that MTV cut back on videos when  measurement tools showed that viewers switch channels the second a video they didn’t care for aired. 

The smallish trade show area was a bit of a disappointment.  It always surprises me when high tech companies try to get you excited in a flashy and sometimes complex product with only a lap top of 17 inch monitor in on an almost bare tabletop with a cheesy banner behind and a glossy one sheet. Come on guys and gals.  This may not be the CES show but if you want to be worth a few million $’s you’ve got to look and feel like it.

Passes to Digital Hollywood at the Lowes Hotel in Santa Monica, CA are still available at the door with a number of strong music panels schedule for Wednesday.  In fact, I’ll probably be back there tom morrow.  – Bruce Houghton for Hypebot.com