snapshot 7/8/08

Nickelback latest to join Live Nation in global deal
Canadian rock band Nickelback has signed a global recording, touring and merchandising deal with concert promoter Live Nation, the company said on Tuesday. Financial details were not disclosed but an industry source familiar with the talks said the deal was worth between $50 million to $70 million. The Nickelback deal is the latest in a string of high profile, multi-faceted deals Los Angeles-based Live Nation has signed with major artists including Madonna, Jay-Z and U2 in recent months.


Digital threat prompts movie industry downgrade
A Lehman Brothers analyst downgraded the entertainment industry Monday and slashed forecasts for its five major companies, saying digital downloads of movies and TV shows posed a huge threat to profits from DVD sales that the companies rely on. "Shifts from physical to digital will disrupt the marginal economics of the TV and movie businesses, just as it did for music," analyst Anthony DiClemente said during a conference call.


Online video catching on, but DVD consumers' favorite
Generations X and Y are far ahead of their parents in the consumption of emerging Web-based video, but DVD remains the most popular home entertainment choice among all demographics, according to new research from Knowledge Networks.

In Knowledge Networks’ “How People Use the Video Marketplace” report, 98% of the 30- to 43-year-old Gen X and the 13- to 29-year-old Gen Y groups, and 88% of 44- to 54-year-old Young Boomers said they use DVDs. Sixty-seven percent of Gen Y said they buy DVDs at least once a month; 71%, Gen X; and 51% Young Boomer. Additionally, 67% of Gen Y said they rented at least once a month; 65%, Gen X; and 44%, Young Boomer.

The pattern starts to diverge with Web-delivered content, with 52% of Gen Y, 37% of Gen X and just 21% of Young Boomers saying they stream video. With downloading, the breakdown is 37% Gen Y, 18%, Gen X and 11%, Young Boomer. However, both younger and older generations indicate they normally do not pay for this new media video usage. With video streams, 3% of Gen Y said they bought monthly; 4%, Gen X and 3%, Young Boomers. With video downloads, 2% of Gen Y said they bought monthly; 2% Gen X and N/A for Young Boomers.


Music fans looking online for guidance
Nearly eight out of 10 consumers are turning away from professional music reviews and looking online for guidance when buying CDs or downloads. The latest Trust Index research from e-commerce firm Avail Intelligence said that many listeners are turning to online music stores or social networking sites for opinions on new albums or acts.

Recommendations made while browsing music stores such as iTunes or social networking applications such as I Like on Facebook proved popular for 40 per cent of respondents. This was just pipped by the opinion of family, friends and other shoppers at 41 per cent of respondents.


Wii Will Rock You
Surprisingly, the savior of classic rock may turn out to be the videogame industry. With titles like Electronic Arts' (nasdaq: ERTS - news - people ) "Rock Band" and Activision's (nasdaq: ATVI - news - people ) "Guitar Hero," players--particularly younger ones--are getting a taste of what their parents used to rock out to.

In January, Activision announced that the "Guitar Hero" franchise had generated more than $1 billion in sales in just 26 months. As of May, the franchise has sold 16.3 million copies, according to the NPD Group. Between November 2007 and January 2008, consumers downloaded over 5 million songs, with prices ranging from free to $6.25 for a three-song pack, according to Activision.

"Rock Band" fans have bought some 2.4 million copies of the game at $170 per copy, NPD says. And as of June 30, players have paid to download 15 million songs, most for $2 each.