snapshot 12/10/07

MySpace gears up for more music with Transmissions
Hoping to broaden its relevance to the music industry in the face of increasing competition from other social networking sites, MySpace will roll out a suite of services and initiatives as part of what company officials are calling MySpace Music 2.0. But a new policy at Universal Music Group (UMG), the world's biggest record company, limiting full-song streaming on the site illustrates the challenges ahead.

The first hint of MySpace's music effort is Transmissions: The site (http://vids.myspace.com/index.cfm?fuseaction=vids.channel&Chann elID=115631898) features video of participating artists in the MySpace studios, performing select songs and conducting interviews, both of which MySpace has the exclusive rights to stream. Bowing to label pressure to start monetizing MySpace traffic that to date has been mostly promotional, MySpace will provide links for users to buy songs by all featured Transmissions artists. According to MySpace VP of marketing and content Josh Brooks, the idea is to create more opportunities for "instant gratification" music purchases. However, the company won't dictate how those purchases are made.


Universal Music Group in Web deal with Imeem
Universal Music Group on Monday said it signed an agreement with music-based social networking Web site Imeem Inc to provide free, on-demand streaming of its digital music and videos that will be supported by advertising. Universal, which is owned by French media group Vivendi, is the fourth major music company to strike a deal with the Web site, following Warner Music Group Corp, EMI Music and Sony BMG Music Entertainment, a joint venture between Sony Corp and Bertelsmann AG.


Songza’s Free Internet Jukebox: Any Song Instantly
Songza is a music search engine that acts as a free internet jukebox. It locates songs posted on the net and lets you listen to them in their entirety and add them to playlists or blogs. To try it out, visit songza.com, choose the song or artist you wish and Songza will search for your request and play it. Its all presented via a clean, clutter-free design and transparent remote control ( play, share, rate and add to playlist). Unlike KaZaa or Bit Torrent, Songza does not enable unauthorized downloads of digital music files; users can only listen to songs, not obtain copies. And unlike Last.fm or Rhapsody, Songza permits users to choose exactly the song or artist they want to hear, and does not require them to subscribe or pay for the service.


Stars Are Aligning for Subscription Music
Now, changing consumer behavior is giving subscription advocates new hope. Members of the Facebook Generation are bombarded with music recommendations every day, and don't necessarily want to pay a buck to check each one out. And since people are used to getting e-mail, appointments, and news feeds streamed to smartphones and other devices, many industry watchers assume they'll want the same for music. "If I can access whatever I want whenever I want," says Ted Cohen, who led EMI's digital music efforts and now runs an entertainment consultancy called TAG Strategic, "why do I need to own it?"


Music Retail Bleeding Continues, Handleman Shows Declines
Music and entertainment retailer Handleman Company reported revenue and earnings declines during the recent quarter, an all-too-familiar result in the sector. For the company's fiscal second quarter ending October 27th, revenues dipped 4.5 percent to $315.5 million, and losses widened $6.8 million to $15.0 million. Those are movements in the wrong direction, and part of a larger bloodletting in music retail.

During its recent quarterly report, the company pointed to "lower music sales in the United States and Canada," as well as a severed relationship with distribution partner ASDA in August. The company also outlined losses from various "cost saving initiatives," and heavy charges from currency fluctuations. Additionally, Handleman incurred a serious loss related to a 2005 investment in London-based startup Blueprint Digital Ltd.


Universal Music Restricting Music Streaming On Certain Sites
Universal Music Group, the largest music label, has implemented a new online streaming policy for its artists: each song for its artists will be limited to either 90-second clips or full-songs that contain promotional voice-over messages, reports Billboard. Excluded are any online services that UMG has a commercial licensing deal with, which means it is getting compensated for each stream. The policy applies to MySpace (which UMG is suing for violation of copyright law) and others. The story says UMG is concerned that users won’t buy the track or album if they get free streaming of full songs.


Video games score headshot against DVDs this season
DVD sales are lagging and game sales are up. Something's gotta give, as they say. Retail shelf space is a finite thing in the world of brick and mortar, so each inch has to be maximized with product that is going to sell. As video games continue their rise, we're likely to see less and less shelf space given to DVDs, and more to video games and related merchandise.

Retailers don't have any loyalty to the DVD market; if they can make more money by stocking their shelves with video games and hardware, they will. With even 7-11 locations beginning to stock games for big launches, games could become the dominant product on the shelves of historically music- and movie-focused stores.


Bands and the net make sweet music The possibilities of the web are setting new challenges for the music business, says Barry Mansfield
After years of kicking and screaming, there are signs that the industry is coming to terms with the fact that the market has changed for good. The internet is now the stage where stars will be born and established artists can indulge their fans in the hope of sell-out crowds when touring.
With the launch of KylieKonnect (kyliekonnect.com) last month, Kylie Minogue became the first star to create a dedicated social-networking site. It allows her fans to create personal profiles, upload images and blogs, and communicate with other fans across the globe using their mobile phone or web browser. Similarly, Habbo (habbo.co.uk), one of the largest virtual worlds for teenagers, has been used by McFly and Bullet for My Valentine to engage with their fans. Artists have an avatar created that looks like them and then chat with their fans in a public room on the site in real time. Other artists, such as Oasis and Sean Kingston, have chosen Habbo to launch previews of new material.

'Everyone is talking about the demise of the music business, but it's really just the demise of big business in music,'' explains Shelley Taylor, the site's founder. "Digital has not, and will not, become the cure for what ails us. We also need to continue to deliver quality, for which there is no substitute.'' That Elton John and the Rolling Stones can command up to pounds 350 per seat at their concerts demonstrates the true value of a star performer. At the root of the music industry's transformation is a rediscovery, or a renewed appreciation, of the communal origins of music-making and listening. As MP3 players and online video have grown in popularity, so has an appreciation that music isn't just something that goes on between your ears.


Wired Decides: Zune or iPod This Holiday Season?
Hardware -The iPod has a nice 2.5-inch screen and a familiar and simple scroll wheel. But the Zune has a larger 3.2-inch, 320 x 240-pixel LCD, a full 0.7-inches bigger than the iPod classic's screen. Yes, the Zune's touchpad is quirky, but it's also elegant.

Content - iTunes is still king of content, but cracks are starting to show. It can't rip DVDs and the hemorrhaging of some content (Goodbye NBC) has blackened the eye of the once unstoppable juggernaut. The Zune marketplace has been re-designed from the ground up and features an ever-expanding library of audio and video content. 3 million songs and growing, all available on an affordable subscription plan.

Networking - iTunes syncing is seamless and quick (but not wireless) and there's no integrated FM radio. Sharing songs or "squirting" them to friends may sound disgusting, but it actually works pretty well. Unlike the iPod, no dongle is needed to listen to FM stations.