Monday, January 28, 2008

snapshot 1/28/08

Qtrax backtracks on claims of music label deals
Qtrax, a new free music download service, backed off claims that it has deals with all four major music companies after Warner Music Group denied it had agreed terms with the start-up.


Sony Ericsson cuts deals with 10 music labels
Mobile phone maker Sony Ericsson said it had signed deals with 10 music labels to add content to its PlayNow service, which lets users download music via their mobile phones. T he venture said in a statement late on Sunday it had signed deals with Sony BMG, Warner Music Group (WMG.N), EMI, The Orchard (ORCD.O), IODA, The PocketGroup, Hungama, X5Music, Bonnier Amigo and VidZone.


Amazon to begin international roll-out of MP3 store
Online retailer Amazon.com Inc said on Sunday it will begin an international roll-out this year of its digital music store that offers songs without copy-protection technology known as digital rights management. Amazon said it is the only retailer to offer DRM-free MP3s from all four major music labels as well as thousands of independent labels. Amazon MP3, launched in September 2007, offers DRM-free MP3 music downloads, which now includes more than 3.3 million songs.


Charlatans choose Radiohead-esque album promotion
British rock group The Charlatans are the latest to experiment with an online music giveaway. The alternative rock band, known for such songs as "One to Another" and "Weirdo," said on its Web site that fans will be allowed to download its latest album, You Cross My Path, free of charge starting March 3. The music can be downloaded from the band's Web site or here. The album's digital distribution will be followed by the release of a physical CD beginning May 19. This will include the sale of a vinyl box set.


Exclusive Interview With RoyaltyShare's Steve Grady
Music industry technology provider RoyaltyShare has launched a new lower cost direct digital distribution platform for independent record labels which could eliminate the need for digital aggregators like The Orchard and IODA. (full Royalty Share story here). Just prior to today's announcement I spoke to RoyaltyShare president and COO Steve Grady from MIDEM about the new potentially game changing service.


Nokia to Share Revenue of Bundled Music With Mobile Operators
Nokia Oyj, the world's biggest maker of mobile phones, will share revenue with phone operators from a program to sell handsets with unlimited music access, Nokia's head of entertainment said. The Finnish company unveiled in December the ``Comes With Music'' program, which will allow customers to buy a phone with a year of unlimited access to millions of tracks included in the purchase price. Nokia agreed to offer tracks from Vivendi SA's Universal Music Group, and is in talks with other major labels.


Beyond the Album
Then there's the medium itself: In the digital age, physical CDs have become a clumsy way to package songs, a plastic spacesuit for the journey between the digital environment of record-company servers and the digital environment of a consumer's PC, iPod or phone. Now throw in the fact that consumers have resented the music-CD formats for years, deriding CDs as typically a couple of good songs and a bunch of filler, or asking why a movie soundtrack often costs more than the movie itself. Call the first contention unfair and the second ignorant of the different economics of the movie and music industries if you wish, but good luck convincing consumers in your local Best Buy.

Album fans, take heart: Dispensing with the album as a consumer item doesn't necessarily mean tossing it aside as an art form. Do today's readers think less of Charles Dickens' novels because they first appeared as serials? Radiohead is an album-oriented band, but wouldn't its recent experiment with "In Rainbows" have generated as much or even more buzz if the songs had appeared over time? Would fans of "Sgt. Pepper's," "The Wall" or "American Idiot" think less of those albums if the first journey through their component songs had taken weeks or months?


Direct-to-DVD Releases Shed Their Loser Label
But it’s not another failed straight-to-video movie collecting dust in Blockbuster. “Beta House,” which reached stores late last month, was made specifically for a DVD release and is likely to end up more profitable for Universal Studios than some of the company’s theatrical releases. The film, which cost less than $10 million to make, is expected to sell more than a million units — in line with two previous “American Pie” installments that were produced specifically for DVD release, according to Universal. That translates to sales of about $30 million before adding revenue from rentals and the sale of distribution rights to cable networks.

Hollywood’s new direct-to-DVD strategy rests on calculating a sequel’s chances at the multiplex. Three big-screen “American Pie” movies rained money on Universal, selling more than $750 million of tickets worldwide, according to Box Office Mojo. But Universal had a decision to make when it came to approving a fourth installment for a theatrical release. The third film, “American Wedding,” cost $55 million plus tens of millions more to market — far more than its predecessor. Yet its ticket sales were 28 percent lower.

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