Industry News: Is A New Cloud-Based Version Of iTunes Coming?
July 28, 2010, 10:40am
By Lauren Wilson for Music Dealers
After iTunes’ acquisition and subsequent shutdown of online music service Lala, music geeks have been wondering if a new, cloud-based version of iTunes was on the horizon. Apple hasn’t yet announced plans or a timeline regarding a move in that direction but there’s still plenty of speculation to mull over.
A cloud-based music service like the now-defunct Lala allows users to access their music online anywhere and everywhere much like online storage/drop box systems people now use to store documents. Billboard.biz cited a recent Forbes Q&A with Evan Schwartz, CEO of another cloud-based service, Thumbplay Music. Thumbplay provides subscription-only content such as downloadable music, videos, and games for people’s mobile phones. When asked his thoughts on a cloud version of iTunes, Schwartz said, “When they launch they'll put a lot of marketing and a lot of money behind it and it'll educate all consumers about the value of cloud-based music, which is good for everybody who is in this business.” He acknowledged iTunes had much greater resources for hardware and marketing but countered that “…they’re not the only game in town. I think it’s a good thing for everybody if Apple launches.”
Apple’s huge one billion dollar North Carolina data center fueled rumors that the center will be used to develop the company’s cloud computing. Macrumor.com reports the center should be up and running by the end of this year.
In another article, Macrumor.com warns that a cloud-based iTunes might still be far off if major music labels don’t sign off on a deal. Apple could try to jumpstart the online streaming service without figuring out new negotiations but that would also be a quick way to get slammed with lawsuits. Like Schwartz said, a cloud-based business model could benefit everybody but if you’re eagerly awaiting Apple’s version, don’t hold your breath.
For the full Q&A with Schwartz click here.
Industry News: Home News CD Era One Step Closer To Retirement?
July 23, 2010, 3:26pm
The music industry continues to struggle as it looks for ways to close the technological gap that has seen CD sales continue to slide.
This is a natural industry switch to the newer, more flexible format as its predecessor continues to disappear. Vinyl made an appearance in the 1950s and remained solid until the early 1980s, when cassettes became the format of the era. Cassettes were eventually phased out by CDs, but lingered for years to come. New cars are less likely to include CD/cassette in favor of CD/MP3.
I’m just 24 years old, but I’ve purchased just a select few CDs since high school. Since then, I’ve tested peer-to-peer downloads in the earlier days, legal MP3 downloads, and online radio/streaming services.
Around three years ago, Nielsen SoundScan research indicated 90 percent of music sold was on CDs, while digital downloads came in at 10 percent. However, recent 2010 SoundScan figures reveal a significant change that is expected to continue into the future — CD sales accounted for 79 percent, while digital downloads slotted in at 20 percent.
Despite the decline in CD sales, there is no correlation towards a decline in music demand. In fact, Apple iTunes leads the market and reached 10 billion music downloads last February — and additional competitors continue to expand into the growing market as quickly as possible.
To combat the downward sales trend of music CDs, Universal Music has set a $10 sales cap on all music CDs. The record studio now aims to sell CDs between $6 and $10, but the lower prices also hasn’t helped stop the sales slide.
I don’t foresee music CDs — even though they’re vanishing from store shelves — to disappear any time soon. There are still enough loyal followers who enjoy CDs alongside music downloads, especially since some musicians see larger CD sales than newer, younger artists.
By Randomus for MYCE
Industry News: Beatles Piano Expected To Sell For $300,000
July 23, 2010, 1:01pm
A piano used by The Beatles to record `Paperback Writer`, `Ob-La-Di Ob-La-Da` and `Tomorrow Never Knows` will be sold at auction and is expected to go for more than $300,000.
The Challen upright piano was part of the Abbey Road studios in London. It was bought by the studios in 1964 and was not only used by The Beatles but also Pink Floyd on ‘Wish You Were Here’.
It was the piano in Studio III, the smallest studio at Abbey Road. Floyd recorded ‘Wish You Were Here’ that studio.
The studio decommissioned the piano in 1980.
By Paul Cashmere for Undercover
Industry News: Live Nation To Adopt A More Customer-Friendly Business Model
July 20, 2010, 9:31am
By Lauren Wilson for Music Dealers
The weak concert sales this summer have clearly been the kick in the rear Live Nation needed to change their act.
The company has a lot at stake after merging with Ticketmaster earlier this year. The Los Angeles Times reports that in a meeting with investors, Live Nation Entertainment executives revealed the top 100 touring band’s ticket sales were down 12 percent this year compared to 2009. That’s not to mention the company’s 2010 operating income could potentially be down by as much as $80 million from the previous year. According to billboard.biz, Live Nation claims it sold 4 percent fewer tickets in the first half of 2010 than in 2009. Gross ticket revenue also decreased 9 percent.
Those statistics do not bode well for Live Nation’s shares which fell 8.7 percent from $10.19 to $9.30 in afternoon trading Friday. The stock has yo-yoed from $5 to $16.90 in the past year. So how is Live Nation going to solve its problems? While CEO Michael Rapino and executive chairman Irving Azoff predict an equally bleak second half of 2010, they’re slightly more positive about the upcoming 2011. More major artists such as Journey, Neil Diamond, and Van Halen will hit the road as well as Christina Aguilera who previously postponed her 2010 tour. They also noted the cast of Fox’s cultural juggernaut, “Glee,” will add more live shows after a brief but extremely successful tour.
Rapino and Azoff are also promising a more customer-friendly business model for 2011. The company acknowledged that ticket prices need to be reduced which they plan to accomplish by adding more pricing tiers and a purchasing system similar to airline fares where ticket prices may vary on the days leading up to the show depending on demand.
Another overdue but very welcome change: ending Ticketmaster’s $2.50 charge for consumers to print their own tickets. Live Nation also pledges to finally begin refunding service fees on tickets of canceled shows. As of now, Ticketmaster only refunds the cost of a ticket, not the fees that are usually stacked upon it.
In the meantime, Live Nation has been trying to alleviate high ticket prices with their rock-bottom Tuesday deals. Fans can see favorite artists such as Aerosmith or the Jonas Brothers for only $10 as part of the promotion. Of course, this doesn’t come without some controversy – the discount angers diehard fans who have already purchased their tickets. In some cases like the Jonas Brothers’ September 19 gig in Irvine, CA, some fans will have paid $99.70 for seats while luckier ones will get in for a tenth of the cost.
On a happier note, in an article for billboard.biz, Brian O’Connell, President of Live Nation’s Country Music Department noted that he “couldn’t be any happier with the way things are going” as far as country music tours are concerned. Lower prices are a big factor of the genre’s thriving tours. Billboard reports that the average ticket prices of Taylor Swift and Tim McGraw are $61 and $49, respectively. Those numbers are considerably lower than the Jonas Brothers’ average of $91 at Nashville’s Bridgestone Arena. The teen heartthrobs were forced to cancel the show after selling only 3,500 tickets for an 11,000 capacity venue. We can only hope other artists will begin to follow country music’s example.
For the full story on Live Nation revamps Click Here.
For the full story on Live Nation’s $10 deals Click Here.
For Billboard’s stats on Live Nation Click Here.
For the full story on country music tours Click Here.
Industry News: Sad Times For The Concert Industry
July 14, 2010, 5:23pm
By Lauren Wilson for Music Dealers.
The music industry just can’t get a break.
It seems nothing, not even the once unstoppable “American Idols Live” tour, can overcome the slump in summer concert sales. The return of Lilith Fair after an 11 year absence was marred by the cancellation of 13 dates and relocation to smaller venues. Many other artists including the Jonas Brothers, Rihanna, and Christina Aguilera have similarly been forced to cancel dates or in Aguilera’s case, push 20 US shows to 2011. On top of it all, Bono’s emergency back surgery in May caused U2 to cancel its entire North American tour this summer which certainly didn’t help matters considering, the Irish super group was the top-selling act in 2009, grossing $123 million.
In an article for Variety, Terry McBride, CEO of Nettwerk Music Group which helps put on Lilith Fair, cites the economy as the reason for the dip in ticket sales. “The only thing that is up is unemployment,” said McBride. “Concerts are discretionary spending.”
Perhaps it’s time for touring musicians to consider lowering their oftentimes exorbitant ticket prices. While it may have been acceptable to set ticket prices in the hundreds before, it’s no secret that in these days, concertgoers’ wallets are a little thinner than they used to be. An online poll at billboard.biz asked if retailers’ CD price cuts were too little too late. 83% voted yes, that “these measures should have been adopted years ago.” The concert industry should take note and make changes before they too suffer a similar response.
Speaking of album sales, billboard.biz reports there is a small silver lining. Although album sales are far from as high as they used to be, the few (very few – five this year compared to 17 in 2005) records to sell over 1 million units have the largest portion of total sales since 2006. That’s not saying much for the rest of the industry but it’s better than nothing.
For the full story and all the stats on album sales click here.
For the Variety’s story on concert sales click here.
