Thursday, July 26, 2007

snapshot 7/26/07

Living the DRM-Free Life
How I get away with it is no big secret. It's a little low-tech, in fact. I avoid the Zune marketplace—and iTunes, and Napster, and other online stores—the way I'd avoid the very depths of Hell. I get my music by purchasing…wait for it…CDs.

I know that some stores offer DRM-free music, usually at a premium. Apple's iTunes has started offering music free from DRM infestation for more than it offers DRM music, and only from certain publishers. Here's what I want. I hate subscription services like Napster and eMusic. I prefer to own my albums, and I have very picky musical taste. I don't want to have to worry about syncing my device to ensure my songs don't suddenly stop playing; when I buy music, it's mine.


Study: 1 in 5 adults watch Web videos
One in five online Americans view video over the Internet on any given day, thanks to speedier Internet connections and a wider selection of clips, a study finds. On a typical day, 19 percent of U.S. Internet adults watch some form of video. News ranked first and comedy second overall.


Can Nokia beat iPhone at its own tunes?
By the time Apple's iPhone hits Europe later this year, CEO Steve Jobs can expect a serious counterattack from the world's biggest handset vendor, Nokia. Just as Apple is marching onto Nokia turf with its first-ever phone, Nokia will reciprocate with its own long-anticipated online music service.

Fortune has learned from sources involved in the project that Nokia CEO Olli-Pekka Kallasvuo will launch the new worldwide service Aug. 29 at a London event that will include live music at the Ministry of Sound nightclub. The new Nokia Web site will let consumers download songs to their PCs and transfer them to mobile phones and other portable music players, similar to Apple's iTunes. Nokia is expected to let users transfer songs to non-Nokia phones using digital-rights-management software.


The Full Text Of Banned LA Times "Free Music" Column
A few days ago The LA Times killed a column by Patrick Goldstein advocating more free music giveaways like Prince's recent UK newspaper deal. The move was apparently to avoid music industry backlash. Here is the full text of the banned column:


ABC.com Launches HD Streaming (in Beta)
But if your computer screen can handle HD video (a minimum 1024 x 768 resolution is recommended), you don't need to buy an HD TV. ABC.com is experimenting with streaming shows over the Web in HD . You will need to download a new player from Move Networks (that won't let you fast-forward through the ads, sorry) and a broadband connection.


Virgin pulls the plug on mobile video
Virgin is to switch off its mobile broadcast video service early next year. The announcement comes less than 10 months after the service was launched, and is a result of BT Movio (the bandwidth provider) cancelling its contract with GCap Media, which owns the frequency.

Business Week has produced an interesting analysis of the business model around broadcast mobile video, in light of Crown Castle shutting down its transmitter network (and Modeo service) in New York.


7 Digital Media UberTrends
And so I thought it would be good to highlight what are some very important uber-trends which starting to emerge in the digital media space. To most readers, they likely may seem obvious, but perhaps serve as a reminder what’s likely in store. And where there is change there is opportunity; the following seven identified trends are perfect opportunities for startups to leverage:


Another Week, Another Launch: New Music Videos Section!
Some of the highlights include:
  • Featured Videos, bringing you the newest, hottest videos courtesy of John Lenac and his crack team of music programmers.
  • Personalized Video Recommendations, based on your tastes. A whole section devoted to the music videos we think you’ll enjoy the most. Looking at mine right now: Groove Armada, Chemical Brothers, Basement Jaxx, Moby…right on algorithm!
  • Video Charts, showing what you all have played the most each week, every week.
  • Video Stations, giving y’all a way to play great videos in your favorite genres with one click of the mouse.
  • Video Playlists, my personal favorite. The new playlist builder tool (accessible from the My Music bar on the right-hand side of the pages) lets you easily build and edit your own video playlists.

Universal Music Revenues Slip Slightly, Digital Growth Continues
During the second quarter, Universal Music Group shed a few pounds financially, though its revenue scorecard was mostly stable. For the first half, the sales drop was a more pronounced 4.9 percent, a reflection of difficult physical sales conditions. Despite a downer recorded music market, Universal reported a quarterly performance that beat industry averages, though specific information related to unit sales were not disclosed.

The company reported digital sales of €155 million ($212.5 million) during the quarter, a rise of 49 percent. Both mobile and online sales were robust during the period, according to the financial summary.


Apple's music business remains strong
Apple's music business remained strong during its June quarter to help the company post record-breaking revenue, with music-related sales accounting for 40 percent of the Cupertino-based company's total revenue during the quarter. Apple's other music revenue surged 33 percent year-over-year fueled by strong iTunes Store sales, and research firm NPD announced that the iTunes Store has become the third largest overall music retailer in the U.S. above Amazon and Target.


Getty Images is listening through Paper Thin Walls
By all appearances, it seems as if Paper Thin Walls is about to make a play in the already crowded music-based social networking arena – the PTW “places” are much like the personalized pages found on Last.fm, Mog, imeem, and a host of other Web 2.0 companies looking to make a dent in MySpace’s music dominance. Ultimately, the basis of the site is for labels and unsigned bands to sell their music.


Tunstall, Blur Join Musicians' Tutorial Site
KT Tunstall, Blur and Supergrass are among the artists who have signed up to a new Web site which aims to get music fans playing along to their favorite hits. The DRM-free downloadable video tutorials at www.nowplayit.com show the artists providing techniques, guidance and stories about the tracks that made them famous.


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Almost lost in the euphoria of Apple's (AAPL) earnings report yesterday -- indeed, almost lost since the initial hoopla of its introduction -- is Steve Jobs' foray into the TV set-top market.

Apple and AT&T together sold 270,000 iPhones in Q3. Let's assume that 90,000 of those were AT&T sales (1,800 stores times an average of 50 units a store). That leaves 180,000 iPhones sold at Apple stores. Figuring $600 a unit (since most people bought the 8 gig model), that's about $108 million in deferred revenue for the iPhone. $180 million minus $108 million leaves $72 million for Apple TV sales. Figuring $350 per Apple TV (splitting the difference between the $299 and $399 models), I get ...
206,000 Apple TVs sold in Q3 2007.

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