Tuesday, October 16, 2007

snapshot 10/16/07

Napster relaunches with Web-enabled platform
Napster Inc, the digital music service, said on Tuesday it plans to attract more customers by moving to a Web-based platform allowing users to play their music from any computer without having to download any additional software. The move is intended to open up the service and attract more paying subscribers by making the Napster platform more flexible and compatible with any Internet-enabled device. Napster says it has 770,000 subscribers.


MySpace in ad-supported music deal with Sony BMG
MySpace, the world's largest social networking site, said on Tuesday it has signed a music video licensing deal with Sony BMG Music Entertainment supported by sharing advertising revenue. News Corp unit MySpace said the deal will enable its 70 million U.S. monthly active users to experience music videos and select audio material from Sony BMG artists.


Do You Really Own Your Music?
You like to own your music. You would never consider “renting” your music from a subscription service. When you buy music, you want to own it for the rest of your life, right? Well, I have news for you: you may already be renting your music and not even know it. In fact, you may not actually own any of those tracks you think you purchased online.


Early Radiohead Sales Numbers: $5-$8 Per Album
Word on the street among London music insiders is that the average price paid for the digital version of Radiohead's In Rainbows album is between $5-$8. The earlier average was £4 ($8), and then the second number, discussed last Friday, was £2.50 ($5), indicating that the average price per album was higher among those who pre-ordered the album, and that fans who downloaded it later generally paid less.


PressPLay / MusicNet 2.0?
The idea of working with device manufacturers to get revenue directly for music is not actually that crazy an idea. In fact, we’re working on a report which incorporates that exact theme. We’re still working on the numbers, but based on the scant (rumoured) details we have on Total Music, I think the approach we’re suggesting is more workable for all parties.

Labels are good at discovering, nurturing and marketing artists. They are not retailers. The major labels tried and failed to become digital music retailers at the turn of the century with PressPlay and MusicNet.


Sony Looking Towards Music and Movie Distribution on PS Network to Revive Flagging PS3 Sales
In a move that reiterates the fact that Sony is putting the PlayStation 3's media capabilities first and its gaming capabilities fourth, they're working on a plan to distribute music and video through their PlayStation Network. In order to boost sagging sales of the console, they want to compete more directly with Microsoft's Xbox Live service with video (along with the PS3 DVR functionality they're rolling out in Europe) instead of gaming, a move that's as back-asswards as you can find. Ask anybody on the street why they're not buying a PS3 and we'll bet you $100 that it's not "because I can't download movies on it."


No Sale In Sight, Movie Gallery Files For Chapter 11 Bankruptcy
It should come as no surprise to anyone that video-rental chain Movie Gallery has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division, while announcing a plan to reorganize and restructure its debt. This has been coming for a while, following a failure to meet certain financial obligations and a futile search for strategic alternatives, such as a sale. As the AP notes, the company has been under a heavy debt load since its 2005 purchase of Hollywood Video for $1 billion. Release.

The company has also tried to turn its performance around by making digital investments, such as its purchase of Moviebeam earlier this year, and its planned launch of an online DVD rental service to counter Netflix (NSDQ: NFLX) and Blockbuster. But, while they might play a role in recovery, neither of these things could counter the deterioration of its core retail business.


Apple to end flat-rate song pricing in 12 mos
EMI today warned that pricing may not remain flat-rate, however. Label head Alain Levy said at a press conference today that his company was "having discussions" with Apple that would change iTunes pricing for EMI music depending on the popularity of the track. Major releases would see elevated per-song prices while less consequential tracks would sell below the 99-cent threshhold. Apple has traditionally resisted a break from fixed pricing since the iTunes Store's launch in 2003 but is said to be acknowledging the inevitability of having to change its price strategy, according to Levy's presentation.

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