snapshot 5/6/08

Microsoft brings TV shows from NBC, others to Zune
Microsoft Corp said it will start offering television shows for its Zune portable media device, more than two years after Apple Inc introduced the feature for its iPod player. Microsoft's Zune has one thing that Apple's market-defining iPod and accompanying iTunes store does not -- TV programs from General Electric's NBC Universal.

Those shows and more than 800 TV episodes including Comedy Central's "South Park" and MTV's "The Hills" will be available at the Zune store starting on Tuesday for the equivalent of $1.99 in Microsoft points that must be purchased in advance.


Warner Music Group Plays with the Price of Music
The price of digital music could be in flux. Warner Music Group plans to run a test starting this month that will alter the price of certain songs on a number of unspecified online music stores to reflect demand.

Like an artificially intelligent version of Amie Street, Warner's partner on the project Digonex "gathers sales data in real-time, analyzes purchasing behavior, and sets new prices that hit the 'sweet spot' where consumer demand and market potential meet." Nettwerk Records experimented with the same system last year, charging 33, 66, or 99 cents for singles, and between $3.30 and $10 for albums.


WMG Set To Broaden DRM-Free Offering
As Digital NARM opens in San Francisco today, sources are pointing towards Warner Music Group broadening its DRM-free mp3 offering beyond Amazon. Variable pricing appears to have been a major reason for the hold-up including demands by WMG, Sony BMG and Universal for higher prices for new and hit product. With WMG dropping demands that most download stores would not agree to, plus mp3's from EMI and the indies, a tipping point should be near that forces Sony BMG (who are rumored to be close to following WMG's lead) and Universal (whose offering is unpredictably selective) to follow.


Panelists: Music retailers must expand to video, online to survive
Also on Monday, NPD presented the findings of a consumer survey studying reactions to new hybrid CD products. Many of these choices mixed a physical disc filled with songs, plus exclusive access to bonus video content. With Music Video Interactive (MVI), tunes sit within a physical DVD that also serves up bonus Web site material. NPD's survey showed that younger consumers had a relatively strong affinity for the product. Teens are considered the most notorious music pirates, according to NPD. Yet 44% of survey respondents ages 13 to 17 said they would definitely and/or likely purchase an MVI album.

NPD also singled out the USB Memory Drive as a product to potentially enhance CD sales. Upscale adults ages 45-54 seem enamored with this music alternative, according to NPD. This consumer type also is valuable for retailers, because they tend to buy more during one shopping trip than any other age demographic.


A bridge to the future of the iPod
Apple is at a crossroads in the evolution of the product that arguably saved its bacon. Without the iPod fueling Apple's profits and investments, we probably wouldn't have spent the past year talking about Apple's surging Mac business or its game-changing iPhone.

After years of double-digit gains, iPod growth has finally trailed off. The market is arguably saturated: do you know anyone who wants to take their music on the go who hasn't bought an MP3 player? But at the same time, the iPod is undergoing a bit of a revolution: it's morphing from a simple music player to a full-fledged computer.


IODA Unveils Branded Download Stores
IODA, the global leader in digital distribution, marketing, and technology solutions for the independent music industry, today announced the general availability of IODA Label Stores™, a unique download storefront solution that enables labels and artists to sell digital music directly to consumers. The announcement was made at the NARM 2008 conference in San Francisco. IODA Label Stores expands upon the company’s existing suite of integrated marketing and distribution products and services with another way for independent artists to grow their businesses. Fully integrated into the company’s industry leading Rightsholder Dashboard, IODA Label Stores operates seamlessly with IODA’s catalog management, accounting, and marketing tools.


NARM Notes: Nielsen Numbers, Talk of a Hybrid CD
The NARM website is hosting a PDF of the Nielsen presentation titled "State of the Industry." Lots of juicy numbers if you're into that kind of thing. Lots of positive spin as well. "Consumers made 1.6 billion purchase decisions in 2007 (1.3 billion in 2006)," it says on page three. Other interesting tidbits: 450,344 albums (80% of the total) sold fewer than 100 units in 2007 (page seven); 1,000 of the 570,000 albums that sold at least one unit account for 50% of all sales (page eight); and 37% of all album sales in 2007 were from new releases -- the lowest percentage since SoundScan was launched (page eight).


Barnes & Noble and Zinio take magazines digital for those who just can’t leave the computer
Today, the world’s largest bookseller, Barnes & Noble, is attempting to bring the magazine back — in the digital world. BN.com (Barnes & Noble’s website) has teamed up with electronic publisher Zinio to sell subscriptions for more than 1,000 magazine titles. Subscriptions will be available both in digital and regular formats at prices up to ninety percent off the newsstand price. The digital version will be available to start reading just minutes after purchase.


Qtrax finally signs major record label
On Tuesday, the company announced it has inked a deal with Universal Music Group, the largest of the four major record companies. The partnership comes four months after the labels denied the company's claim that they had agreed to supply music for the site.


The Day The MSN Music Died
"The Electronic Frontier Foundation says that Microsoft has "betrayed" MSN Music customers and wants the company to make things right by issuing an apology, refunds, and eliminate digital rights management technology from the Zune music player. Microsoft stirred some controversy last week by announcing that it would no longer issue DRM keys for defunct MSN Music after August 31. This effectively will prevent former customers from transferring their songs to new devices after the deadline. Customers could potentially lose their music if they get a new computer or if the hard drive crashes on their current one. EFF, an advocacy group for Internet users, said in a statement that it sent a letter to Microsoft Chief Executive Officer Steve Ballmer on Tuesday outlining steps the company should take, such as issuing refunds and launching a publicity campaign to educate former MSN Music customers about their options."