snapshot 8/14/07

Universal Goes DRM Free, But Not on iTunes
Universal said late Thursday that it planned to start selling music tracks from its artists in MP3 format for a limited time, however not through Apple's iTunes Music store. Also a surprise in the announcement: Google plans to begin selling MP3s directly from its search engine, BetaNews has learned.

Universal will make the tracks available through the Web sites of the artists themselves, as well as selected online retailers. The tracks will be available from August 21 to January 31, 2008. Among the retailers to offer the MP3s would be Amazon, Wal-Mart, Best Buy, RealNetworks' Rhapsody, among others.


Blue Note Web site embraces the graying of digital
The label is in the process of revamping the site to become a social network and digital music store for fans of jazz and blues -- the staples of the Blue Note catalog -- rather than a simple promotional Web site for its artists.


Google to stop Web video rentals, sales
Google Inc. is shutting down a service that sold and rented online video, ending a 19-month experiment doomed by the proliferation of free clips on other Web sites like the Internet search leader's YouTube subsidiary. The video section on Google's Web site will remain open, but will stop showing paid programming Aug. 15.


John Lennon Solo Catalog Debuts on iTunes Store
Apple® today announced the debut of the John Lennon solo catalog on the iTunes® Store (www.itunes.com). Sixteen of Lennon's solo works from EMI Music are available for the first time on iTunes starting today, with the “Lennon Legend” and “Acoustic” collections making their worldwide digital debuts. For a limited period of 30 days, exclusive video content will be included with the albums “John Lennon/Plastic Ono Band,” “Sometime in New York City,” “Walls and Bridges,” “Milk and Honey” and the collections “Anthology” and “Working Class Hero.”


Video Surge Divides Web Watchers
Researchers have long warned that rapid increases in Internet usage could strain the capacity of the data lines and gear that make up the network, severely slowing traffic and even knocking out service. For years, they've been wrong as Internet-access providers and telecom carriers have added routers and other hardware to keep ahead of demand, and the data-carrying capacity of the Internet pipes has greatly expanded thanks to technical advances.

"One of the key possibilities for 2007 is that the Internet could be approaching its capacity," analysts at Deloitte Touche Tohmatsu wrote in a January report. "Our belief is we'll start to see some brownouts or service slowdowns or service issues," says Phil Asmundson, the national managing partner leading Deloitte & Touche USA's Telecommunications practice.


BitTorrent revolution builds on old model
Beginning next month, the San Francisco video and media-distribution company will offer some of its library of television and feature films which include titles such as "Letters from Iwo Jima" and "24" for free as streaming videos, supported by advertising.


Universal's MP3 Watermarks Could Contain Unique Identifiers
Andrew Friedman of Contentinople [and others] confirmed that Universal's watermarked numbers refer to songs, not individual files. The "weak DRM" of unique identifiers is not in play this time, but could be used in later "open MP3" offerings.


Google Key to Latest ITunes Challenge
The Cupertino, Calif., startup was forced out of a stealth mode when Universal Music Group announced late Thursday it would test sales of some digital music without the customary copy-protection technology. Under the program, gBox will get referrals through ads Universal will buy through search leader Google Inc., gBox Chief Executive Tammy Artim said Friday.


McDonald's, Yahoo, Ne-Yo Spark User-Generated Lyrics Play
Hit songs have memorable lyrics, and fans can usually recite every word by heart. Now, McDonald's and Yahoo Music are joining forces on a user-generated lyrical play, one focused on urban artist and songwriter Ne-Yo. According to information received by Digital Music News on Monday, the action will revolve around a new Yahoo Music property called Lyricmakers (music.yahoo.com/lyricmakers). Through that service, fans will soon be able to upload their lyrical concepts, and Yahoo Music visitors will vote for the winner.


GameStop Spins Madden NFL Download Giveaway
Just recently, EA Sports unveiled the soundtrack for Madden NFL 08, a lineup that includes Sum 41, Daddy Yankee, and Timbaland. Now, gaming retail giant GameStop is offering a number of free downloads from the soundtrack to those that pre-purchased the title. The giveaway involves New Jersey-based Dropcards, a company that ties multimedia asset giveways into redeemable plastic cards.
The cards also include the trailer for the game, which uses the Airbourne track, "Running Wild.” Dropcards estimates that the effort will reach roughly 70,000 pre-buyers. The game arrives at retailers today.


Strayform Tries New Indie Music Model
Strayform is a Texas startup that, like SellaBand and the recently funded Amie Street, is giving unsigned artists a way to promote and sell their music.

Like SellaBand, artists sign up, upload some of their music and then create proposals for new music they want to create. Fans can listen to and download the music (DRM free), and donate directly to proposals they like. The proposals are all different. One artist, for example, says he will mention the name of person who pledges the most in the song itself.


Are Movie Viewers Down on Downloads?
Video downloads may not replace physical DVDs anytime soon, judging by US consumers' opinion of download quality. Parks Associates' "Global Digital Living II" found that those who had downloaded videos generally had a negative experience. Only 16% of US consumers thought that there was a good selection of downloadable videos available online. Just 13% said video downloads were sold at a reasonable price. Less than one-fifth said they planned to download videos again in the future.


Lime Wire to Enter Music Download Market With New Digital Store and Inks Deals With Music Companies
Lime Wire LLC, maker of the popular LimeWire file-sharing software, announced today that it will open a digital music store. Initially the store will be a stand-alone website, also accessible from links in the file-sharing software. Subsequent releases will enable users to browse and purchase music directly from within the LimeWire program.


How Rhapsody Will Handle DRM-Free
Tracks will be 256kbs, DRM-free MP3s. Unlike the way iTunes sells EMI's DRM-free files, Rhapsody will offer only a DRM-free version and will not sell a protected version. Rhapsody subscribers will pay $0.89 per track for UMG's MP3s while non-subscribers will pay $0.99.


Apple Gets Into Social Music Scene with My iTunes
Apple has launched My ITunes , a set of widgets that may be a first step in taking their fair share of the social music market. Niall Kennedy caught sight of it a couple of days ago.

There are currently three embeddable widgets to choose from. One shows recent iTunes purchases. Another shows music you’ve reviewed on iTunes. The last shows a sort of tag cloud of artists you’ve purchased on the iTunes store. The widgets can be customized by size and color.


Movielink-Blockbuster Deal: Cash $6.6M
Blockbuster purchased all of the outstanding membership interests of Movielink from MGM On Demand Inc., DIGICO Inc., SPDE - MF Holdings, Inc., Universal VOD Venture Holdings LLC, and WB - MF LLC for $6.6 million in cash, subject to adjustment for Movielink's working capital at the closing.