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Why Music Is Broken – The Artist To Consumer Connection

By Alex Wilhelm                         http://thenextweb.com/

There is a fascinating story on TorrentFreak regarding the revenues for an artist from a streaming service such as Spotify. Or, more correctly, the lack thereof. The popular Lady Gaga makes quasi-nil from Spotify, despite being a top artist on the service.  This is an excellent example of the inherent problem in the musical industry. If we cannot fix this, piracy will never be abated.

The problem is the lack of a connection between the dollar of the consumer, and collection of that money by the artist. Right now, the lengthy and convoluted transfer process sucks the dollar dry, depositing a few spry cents in the hands of he artist.

Of course, this is supposed to be “the way it works,” due to high costs involved with music production and the like, but it seems to be nearly endless. Once an artist has paid back the recording costs in royalties, the rates that artist receives are still pathetic.

If I put my music on Amie Street, and I sell a song, I get the majority of the money. If I am a major label artist, and I sell a song on iTunes, I get a far, far smaller cut.

The connection from the fan to the band, financially, has been broken. The fan knows that their purchase will hardly help the band, or more precisely that the marginal benefit from their purchase to the band is near zero, so why do it? The cost to the fan is much higher than the marginal benefit to the band, so the fan just torrents the damn song. 

There was a lot of noise when Brogan and Gary V wrote their books. Pundits said that internet people do not actually buy things, so both books were straight going to fail. Bullshit, it turned out. Crush It and Trust Agents both did well. People will still pay for quality, and they will pay if the know where the money is going.

How many people do you think bought Crush It because it was a good book, versus it being the Gary V book. Something to think about.

The vision from the consumer of the music industry is a dark room with cigar smoking lawyers. A far cry from the mixing board or the stage.

The point is, until there is a much more direct line from my purchase, to the coffers of my favorite band, I will (euphemistically) be inclined to take the lowest cost route, and fire up The Pirate Bay.

What to do? Well, artists need to stand up and attempt to take control of the situation, especially with emerging market openings such as Spotify. There is no industry without artists.

It has long been like this, out of proportion. But there was never an alternative solution to acquiring music. Now there is. I would make a healthy wager that if there was a way for people to buy music, where a full 50% of the total cost went to the band, sales would double. Overnight.

Food for thought. What do you think about the artist pay model with Spotify, and in general?

http://thenextweb.com/

 

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Spotify and Facebook Team Up to Ruin Our Lives With the Magic of Sharing...

Spotify’s response, from Billboard.biz:

To us, this is all about creating an amazing new world of music discovery. To make this as good and simple as it possibly can be, we’ve integrated Spotify login with Facebook login. By adopting Facebook’s login, we’ve created a simple and seamless social experience…

 

Techdirt:

Last week there was a lot of talk about Facebook’s new setup, which would allow for tighter integration and sharing of everything that people do, with music being a key example. Whether or not that’s a good idea, I have no idea. To be honest, I think that it could make sense long term—but the way that it’s been implemented seems like a disaster to me, as I discovered when I logged into Spotify today. Apparently, Spotify is pissing off a ton of people by requiring a Facebook login to use the service now. I have less of an issue with that than I do with the fact that Spotify popped up a box telling me I had to connect to Facebook, but not making it at all clear what that meant. It notes that Spotify can share the details of what I’m listening to with others, but does not explain what that means. Will it share everything I play with everyone automatically? Will it give me the option of what to share? Will it give me the option of who I’m sharing it with? That’s not clear at all. Even worse, nowhere is there any explanation of how or where I can find out more. Instead, Spotify just opens as normal.

It turns out that Spotify just starts sharing everything you play on Facebook, without even making it clear to the user that it’s doing that…

 

New York Times:

Message board lighted up with complaints, and Spotify issued two statements about the change, the second one saying, in part: “As most of our users are already social and have already connected to Facebook, it seemed logical to integrate Spotify and Facebook logins.”

Questions also spread through the music and technology industries about whether Facebook had required Spotify to make the change as part of their agreement. MOG, another digital music service included in Facebook’s new media platform, will also require new users to log in with Facebook, said David Hyman, the company’s chief executive. But Rdio and Rhapsody, two other services, did not make such changes…

 

The BBC wonders, ‘Is Spotify too friendly with Facebook?’

Last week the music streaming service Spotify got the kind of endorsement money can’t buy. At Facebook’s F8 event, Spotify’s founder Daniel Ek was invited to share the stage with Mark Zuckerberg, and explain just how “awesome” it was going to be to share your music tastes with your friends.

That privilege was not extended to Facebook’s other music partners, and it looked at first as though this was a deal which offered a lot more to the European start-up than to the social network.

Now though it is becoming clear that there may have been a price to pay, with Spotify apparently tying its whole future to Facebook. The risk is that this will alienate its existing customers who are already up in arms about one aspect of the deal…

 

Facebook Music Dashboard: September Launch Likely With Huge Potential Impact

 

 Facebook has announced a major developers conference for September 22nd in San Francisco; and while details are scarce most observers expect the launch of a Facebook music dashboard. Spotify, Pandora, Last.fm, Rdio and MOG are all rumored to be included in the new dashboard which will be accessed from the users home page. Facebook has also signaled that it will offer a more social music experience with playlist sharing and some form of group listening.

Huge Potential Upside For Music:

Given it's huge user base - more than 750 million active users, 50% of who log in on any given day - Facebook Music could drive significant music discovery and purchase, as well as, revenue for the services included. The average Facebook user has 130 friends they can influence and many have hundreds more. Together they 700 billion minutes interacting, according the stats provided by the social network.

Also expected to launch at the September developers conference are expanded mobile options including the launch of their first iPad app.

4 Gig Booking Sites: BandSurfing, Indie On The Move, Getagig Info, Sonicbids

by hypebot

My recent discussion of DIYgigs.com returned some suggestions for similar web services. Here I briefly discuss four sites, BandSurfing, Indie on the Move, Getagig Info and Sonicbids, focusing on their usefulness for indie musicians booking their own gigs.

  • BandSurfing is still in process but the emphasis on connecting bands and people booking shows is central to the concept. Here's a basic demo of the service and the pricing once you get past three free monthly "plugs".
  • Getagig Info is a free site with a UK focus but a search for London venues seemed surprisingly short. Since you can submit gig requests to venues via a form on Getagig, it may cut through some noise with promoters who've registered for the service.
  • Indie on the Move is clearly focused on the United States with its interactive map of US venues. It seemed the most useful of all the sites for booking gigs at clubs in the States with a full range of free options. Reviews are attributed to account names so anonymity is an option for artists rating and reviewing clubs.
  • Sonicbids is probably the most well-known of this bunch and their listings were primarily focused on special events such as festivals with opportunities not found on the other sites. Though one can identify some venues that book musical acts on an ongoing basis, it's not really set up for that. SonicBids facilitates the application process and is available with two subscription levels.

We have some promising resources but none are at a point where they can clearly dominate the field, though Indie on the Move seems closest.  The proprietary application platforms do show promise of cutting through some noise so their growth is worth watching.  Overall musicians are still faced with stitching things together on their own.

6 Standout Apps From SF Music Hack Day

image from evolver.fm This guest post comes from Eliot Van Buskirk, a longtime technology writer for Evolver.fm, CNET, Wired and other publications, two-time book author, and frequent guest on NPR and other media outlet who believes that apps are the future of music.


Music Hack Day, where app developers and hardware gurus gather to build functional music “hacks” that often incorporate technologies from a variety of companies by mashing up their APIs, arrived in tech mecca San Francisco earlier this month, much to the delight of anyone who is interested in clever music stuff.

All told, San Francisco Music Hack Day was a slightly more subdued affair than the New York City event held in February –- but that didn’t preclude a ton of great hacks from coming out of the two-day event.

As in New York, hacks were largely based on the APIs presented to the crowd, with Rdio, Soundcloud, and The Echo Nest (publisher of Evolver.fm) being three of the most popular.

All 55 hacks presented were cool in their own way; we chose six to highlight that stood out from the rest.

Photo courtesy of Flickr/Thomas Bonte

Google has started internal testing of its planned music service, according to reports.

http://www.musicweek.com/

CNet claims this is proof that the service is close to launch. It said, “Employees at the online behemoth have begun a process commonly referred to in Silicon Valley as dog-fooding, in which employees try out a new service or product.”

This follows the emergence earlier this month of details surrounding Google's proposed music service and its links to the Android operating system.

Hackers on the XDA Developers Forum messageboard found that if the leaked Honeycomb (an updated version of the Android OS) music player is installed on a device, it can sync music collections with Google's servers.

This, in theory, would let users host their music in the cloud and stream tracks to connected devices.

CNet quoted sources claiming that Google's negotiations are “on going” with the four major labels and leading publishers. It added, “The delays are largely due to the complexity of the subject matter. Google is after cloud music rights and not just for songs acquired from Google Music.”

In January, details leaked around Google's talks with Merlin, representing the independent label sector. DigitalMediaWire published sections of an email sent by Merlin CEO Charles Caldas to the organisation's member companies. In it, he said he said he was addressing worries about indies being excluded from negations.

He wrote, "We now hope to achieve a Merlin agreement with Google on behalf of our members, which both addresses those concerns and reflects fully and properly the value of our members' repertoire via a Merlin licence."

Meanwhile, it is being reported that Spotify will appoint Steve Savoca as US content head in the run up to its launch there.

Savoca is head of digital at Domino Records and PaidContent says he will join Kenneth Parks, Spotify's US MD, to bring the service to North America.

Spotify recently revealed that it has 1m paying subscribers in Europe, accounting for 15% of its active user base.

 

Net radio listening up 28% in second half of 2010

Posted by: Michael Schmitt

PUREPLAYS GREW 40% OVER SIX-MONTH PERIOD

Inside Radio, analyzing data from Ando Media, reports that Internet radio’s audience (Mon-Fri 6am-8pm AAS) grew 28% from July 2010 to December 2010, lead by pureplay webcasters, which as a group grew over 40%.

During the period analyzed, Cumulus led the way with 73.5% growth, Inside Radio writes, with Slacker (73.1%) and AccuRadio (66.1%) following closely behind. Pandora ranked fourth with 43.2% growth (albeit over a much higher base audience).

It should be noted that Slacker’s “growth” is at least partly due to Ando Media adding the webcaster’s mobile streams to its reporting in December 2010  .

Entercom came in at fifth with 24.1% growth, or “double the terrestrial industry average,” according to Inside Radio. Entercom VP of digital strategy and enterprise platforms Tim Murphy says the progress is due to their “Entercom everywhere” push, which involved building “individually tailored apps” for its 74 district radio brands — attracting 937,000 unique downloads so far.

What caused the strong growth for other webcasters? “Lower spotloads, a faster embrace of mobile platforms and the ability to personalize their listening experience,” writes Inside Radio. Holiday-related listening in December may also have played a part.

“Most pureplays have embraced mobile in a big way but terrestrial radio, apart from Clear Channel and CBS Radio, hasn’t been as quick to respond,” said Ando Media senior VP of marketing Patrick Reynolds. You can hear more from Reynolds at RAIN Summit West 2011 (more here). To read more from Inside Radio, subscribe here.

FORTUNE: RACE FOR FUTURE OF CAR RADIO IS ON

“The battle between Internet radio and traditional broadcasters is coming to a dashboard near you,” writes Fortune in a new article about “the great online car-radio race.”

The article pins Pandora against Clear Channel, both racing to grab “the 70% to 80% of radio listeners who tune in from their cars in any given week.”

At least one car-maker rep hopes both services succeed. “They’re different enough for people to want to listen to them at different times,” said Toyota’s advanced-technologies manager, Jim Pisz.

Concludes Fortune, “The winner of this latest clash may not be the company with the best tunes or the coolest deejays, but the one that makes flipping through online stations — while driving — as easy as just turning the dial.” .

This is the second article from Fortune recently on Internet radio. Earlier they penned an article arguing that Pandora’s IPO is not the sign of a second dot-com bubble.

Clear Channel's Purchase Of Thumbplay All About Forthcoming Personalized Radio Service, Bob Pittman Says

 

By Glenn Peoples, Nashville

Clear Channel didn't buy Thumbplay for its cloud-based, on-demand subscription service. It bought the company for a not-yet-launched personalized Internet radio service that could debut within "a couple months," Bob Pittman, a Clear Channel investor and its chairman of media and entertainment platforms, told Billboard.biz.


"Our strategy is to be where our listeners are with the products and services they expect," Pittman said. And right now that means radio -- both broadcast and Internet.


He has done it before: Pittman was a founder of MTV and later the president and chief operating officer at America Online, Inc. He has plenty of experience with ad-supported, mass media products.


Clear Channel, he said, felt an urgency to enter the personalized Internet radio market and improve the company's digital products. So the company decided to buy Thumbplay rather than build its own service. "It speeds us to market tremendously," he said of the acquisition. Although only 3% of its listening comes from digital, the company sees personalized Internet radio as a growth opportunity. "We want to be in front of it."


Thumbplay's existing on-demand product, however, attracted little of Clear Channel's interest. "It's very hard to acquire paying customers," Pittman said. "It's very, very expensive. Look at Sirius XM: great revenue, not much earnings. Not because they're not doing a great job, but because it's expensive."


Pandora, which filed for an IPO last month, has proven the popularity of personalized experience. But Pittman contends that type of product doesn't make for a good standalone business. "It reminds me of AOL instant messenger," he said of his days as at AOL. "Very powerful feature. People loved it. But it wasn't a freestanding business."


Besides, he added, people listen to radio because they like to connect with people, not algorithms. "You can't bond with a robot."


Like broadcast radio, Internet radio is a business that requires scale - it needs a big audience. Paid on-demand services don't have that kind of potential. Free, ad-supported services, on the other hand, have the proven ability to reach a large critical mass.

Isn't Pittman worried that personalized radio will harm Clear Channel's core product: broadcast radio? No, he says, because a Pandora-like service will complement the company's existing products just as personal music collections have always complemented radio. "Radio has always lived with people having their own music collection."


So the plan is to integrate Thumbplay's personalized Internet radio service into Clear Channel's iheartradio product and push it to Clear Channel's listenership using its vast corporate infrastructure. "We, unlike anyone else, have the promotional power to promote it. We've got 228 million monthly listeners. No one comes close."

ReDigi Says They'll Sell Your Used MP3's Legally

image from www.clean-energy-ideas.comStartup ReDigi will be opening "the world's first online marketplace to legally recycle, buy and sell, used digital music files" this summer. On the ReDigi Marketplace, music "owners" can "manage their music libraries by selling their unwanted digital music, or purchasing the music they do want, at drastically discounted prices".

Exactly how ReDigi will identify ownership or navigate the legal objections that labels have thrown at previous attempts (like Bopaboo) to resell digtal music is unclear; but there are a few hints:

"Being a group of computer geeks when someone tells us something can't be done, we immediately set a course to figure out how to do it," says the company's Larry Rudolph, a former member of the  MIT faculty. "There are many layers that go into ReDigi that make it work, legal and technical being just a few. Our team figured out what could be done to legally ensure that consumers regain the freedom to manage their own personal music collections."

In addition to unspecified technology that ReDigi says will satisfy rightsholders, the company is also "granting a portion of each sale to artists and record labels each and every time a track resells." 

A look at public portions of the site and an intro video show that at least some track sales on ReDigi will be in trade for credits that can be used to obtain other tracks rather than a cash transaction.

We've asked ReDigi for clarification of their business model, but in the meantime: 

Do you think the re-sale of digital music files should be legal?

 


 

Dfd

A brand new mash up of Last.fm, Billboard, and YouTube has emerged called Tubeify. It turns YouTube into a jukebox. Tomas Isdal, founder of the site, noticed how poorly YouTube handled music and decided to transform it into a traditional desktop music

player. The most interesting feature of the service is "Time Travel."

This allows fans to pull up the Billboard chart for any week since 1964 and listen to the songs that were popular. Users can share their playlists with friends and playlist links can be shared anywhere. Through Tubeify, I'm listening to the latest Girl Talk album. It plays without interruptions. The search, since it's powered by Last.fm, works amazingly. If the sound quality was cranked up a notch, it's easy to imagine what the wonders of Spotify will feel like... one day. (via TorrentFreak)

 

TV Show Released On BitTorrent Raises $20,000 Pretty Damn Fast

(Business Models)

by Mike Masnick

You may have seen the recent stories about the "TV show" Pioneer One that was made with the plan all along to release the show on BitTorrent, and to set up a tiered system to fund future episodes. While some people insist that BitTorrent users never download authorized content, after the show was released, it quickly became a top download beating out lots of more "famous" competitors. On top of that, it appears that people are donating. Zubin Madon alerts us to the news that in just about a week, the producers of the show have hit their goal of raising $20,000 to produce the next batch of episodes. This isn't a "give it away and pray" sort of deal. It's a recognition that the first episode is the "pilot" and the scarcities that are being sold are the creation of more episod! es. This is one of the more complicated scarcities for people to understand: content, once created and released to the world, is infinite. However, content not yet created is scarce. So it's a perfectly reasonable business model to try to sell the creation of new content, which is exactly what the producers here have done successfully.

And, to cut off the expected usual crew of Hollywood defenders in the comments, no I'm not saying that all TV shows/movies/etc. should or could be funded this way. And, yes, $20,000 is definitely a very low budget. But it is an example of this sort of model working, and there's certainly no indication that it can't or won't scale.

Startups hum amid music-business blues

 

The music industry is looking for an answer to the digital piracy that has decimated its business.

Two Bay Area startups think they’ve found part of the answer.

The two are already selling mobile access to vast libraries on the Internet as speculation mounts about whether Apple and Google are preparing to introduce web streaming services of their own.

Skype Technologies’ founders unveiled San Francisco-based subscription service Rdio this month.

Meanwhile, MOG founder and CEO David Hyman thinks his Berkeley company, which added a subscription streaming music service to its blogging and advertising services in December, has the jump on the competition.

“We’re not messing around here, dude,” said Hyman as he proudly showed off features of his music service, which sells online access to 8 million licensed tracks for $5 a month and will soon release a mobile and desktop application for $10 a month.

Amidst a decade-long slide in revenue driven by digital piracy, the global music industry is casting desperately about for ways to get consumers to pay for legal content.

People will pay, Hyman hopes, for unlimited, on-demand access to streaming music, as well as high tech tools for finding music, like fast search technology, social network integration, customizable listening channels, and playable song lists created by regular users and famous artists alike.

Equally important will be easy mobile access, said Hyman, who was previously CEO of the Emeryville music data company Gracenote, which Sony bought for $260 million in 2008.

Hyman expects to release an iPhone application in weeks, with an Android version to follow. He hopes the iPhone will be transformative, as it was for Pandora Media, the popular ad-supported streaming “radio” company in Oakland.

MOG’s mobile applications will even allow people to download songs onto their phone for replay offline as long as accounts stay current.

Portability is key

Subscription services, which don’t have listening restrictions like Pandora, have been around for a while and include the legal version of Napster, now owned by BestBuy, and Rhapsody.

But those streaming services lacked portability among devices in the past, and revenue dropped worldwide from $234 million in 2007 to $213 million in 2009, according to the Recording Industry Association of America.

“Before the advent of smartphones and 3G, it was more a pipe dream than a reality,” Hyman said of the long-dreamed “celestial jukebox” that has lured numerous prior companies onto the rocks. “It’s a combination of product, price and portability.”

Now others see the pieces coming together as well, and many experts think Apple may be preparing to offer a streaming music service — with expectation heightened since Apple in late 2009 announced it was buying Lala, a Palo Alto streaming service.

Last month, Google also showed off a potential iTunes competitor and said that it had bought a company with software that will help Android phones to stream music.

This month, Skype Technologies founders Janus Friis and Niklas Zennstrom unveiled Rdio, a subscription service based in San Francisco that is now in public trials after a year of development.

Rdio’s staff of 23 consists largely of former employees of Imeem, an ill-fated Internet startup that broke ground by securing licenses from the four biggest U.S. music labels for its ad-supported streaming service.

Imeem raised more than $30 million in venture funding before it was acquired for a reported pittance in December by News Corp.’s MySpace Music, which shut it down.

Openness to licensing

“People are not interested in owning CDs anymore. Sales have fallen off a cliff,” said Rdio CEO Drew Larner, who like Hyman emphasized discovery and portability as being attractive to consumers.

Decibel: Music Metadata On Steroids

Could More Info Mean More Music Discovery?

image from  www.decibel.net Remember pouring over album liner notes to learn who played that great sax solo on the new Stones album?  OK maybe you're too young for that, but there have probably been times when you wanted to learn more about the track you were listening to.

New startup Decibel trys to solve that problem by replacing the usual title, album cover art, artist name, and track length with 150 fields of metadata including things like bacgkorund singers, genre, and production assistants.  With the data Decibel can also offer sophisticated music discovery service that relating tracks "three dimensionally" rather than  just by artist, genre or beats.

How to Turn Your Songs into Opportunity Magnets – For Free

Those of you who know me probably know I’ve been working for years trying to solve the quality music filtering problem. There is just so much talent and so many songs already out there (and millions more being created each year) that it can’t all be evaluated for commercial deals the way it should be.

What I’ve learned is that nothing replaces the expert human ear when it comes to A&R. However, technology has emerged that can enhance the music industry’s human skills in much the same way a medical doctor’s skills are enhanced by the X-ray machine and other modernities. The X-ray machine doesn’t do the job of the doctor. It just gives the doctor additional information upon which better decisions can be made. Today, no one would consider seeing a doctor who doesn’t use state of the art technology.

So whether it has been using computers to help predict hit songs or developing an A&R platform that harnesses state-of-the-art technology to help the industry perform better, solving the music filtering problem has been my passion for a long time.

I’ve been thinking about a clever way to describe Music Xray’s new Song to Opportunity (Sâ‚‚O) Matching system and the best way I’ve come up with (so far) is that:

It turns your songs into opportunity magnets.

Or maybe it’s the match.com for songs and opportunities to find each other.

Maybe it’s the Pandora for A&R…

However we describe it, I think it’s pretty cool. You upload your songs for free and then sit back and wait to be alerted when an industry professional is seeking a song like yours. Give it a shot. The more songs you upload the more alerts you will get.

Here’s how it works:

  1. Some of the hundreds of music industry professionals who use Music Xray to find songs and acts have given us a few “seed” songs. That is, songs that have a musical style and sound similar to what they would like to have submitted to them. For example, if they are seeking a new single for Britney Spears they might give us a few of her songs plus an additional song in the style and sound they are seeking.

  2. Music Xray uses software to analyze the acoustic properties and underlying mathematical patterns of the “seed” songs and compares them to those in songs that have been uploaded for free into the company’s system by artists and rights holders.

  3. Music Xray notifies the artists when there is a match between what professionals are seeking and the artists’ songs.

We’re not making any formal announcements nor really talking much about this while the service is in beta. Nevertheless, we’re thrilled that Music Xray is pushing the envelope. It’s the first enhanced A&R platform in the world. It harnesses cutting edge technology to enable the industry to filter through large quantities of music to find the most appropriate songs for each opportunity.

This is A&R on steroids.

Collecting In The Age Of Streaming Music

image from farm4.static.flickr.com
The world is about to embrace streaming music and and a lot has been written about the technical specifications of several streaming music services already. What is often still underexposed however, is the way this new era of consuming music is affecting the way we listen, organize and collect music. The music lover is standing on the threshold of a collection that consists only of links to streams. In the era of streaming music, what is left of the relationship between the collector and his collection?

Why Collect?

In the 1930s the German culture philosopher Walter Benjamin wrote about collecting and the relationship between the collector is his collection in the famous essay .Unpacking my library'. When Benjamin unpacks his books after moving to another house, he recalls the places where he bought his books and the memories that are connected to them. For all of us, this is a recognizable feeling. The first single that was bought, the album that was played often with a young lover and the CD that accompanied the whole summer holiday.

The collector is connected with the separate parts of his collection and without the owner, the collection also loses the biggest part of its meaning. A collection therefore is more than a chaotic gathering of stuff, it is a way to structure and visualize images and memories from the past. It's a reflection of someone's life and his identity. How often do we look at someone's music collection to find out what kind of person he or she is?

The End of Tactile Information Carriers

The tactile collection like Benjamin described it has been disappearing in the last years. Vinyl got replaced by CDs in the 1980s, the CD collection was ripped to the computer and eventually it was transferred to iPod or smartphone. The developments in online streaming music are now making music disappear from our hard drives. More and more the collection will be stored in the cloud. What remains of the relation between the collector and his collection when the collection is a weightless, endless cloud of data?

New Influences & New Life.


When the American author Julian Dibbel in 2000 wrote an essay in line with Benjamin, he describes how he is digitizing his CD collection. When digitizing his collection he declares that this doesn't feel like just moving the music but more like reviving it.  Those who have already transferred their MP3 collection to Spotify will probably share this opinion. Like unpacking the books made Benjamin remember all those moments in his life and this also happened with Dibbel ripping his CD collection this will also happen when organizing the new online streaming music collection.

Of course the developments in the personal music collection results in the disappearance of some trusted elements that are associated with collecting. The most important of them probably is the disappearance of tangibility. Like many book lovers are attached to having a book in their hands, many will also love to hold carriers of music, whether these are gramophones, vinyls or CDs. This tangibility was already steadily decreasing in the era of MP3 and will continue to do so in the age of streaming music. However, the developments also result in new infusions becoming a part of collecting. The most important of them
probably is the amplification of the social element in music. Music has always been a part of social life but developments in online music have amplified this element and gave it more attention. Napster connected music lovers to fellow collectors, Last.fm connects people with the same taste in music and in the latest updates of big stream services like Spotify and MOG, music collections are being tied to Facebook profile pages giving social features like sharing and discovering music via friends a central place.

Old habits and pleasures don't have to disappear in the age of streaming music though, which can be seen in the popularity of playlists and personal compilation albums that are being assembled and shared in and around these new music services. In history, one of  the main activities of the collector has been making order in the different parts of his collection. Vinyls and CDs were arranged on release date, genre or special occasion and keeping this order in the collection was an activity that enabled the collector to take a trip down memory lane. This habit persists and revives in the age of streaming music with the ease with which everyone can organize their collection into compilations and sub-collection with just a few clicks.

A Revived Relationship.


In the age of streaming music, the way one builds a music collection, the looks of it and the way it is maintained differs from the collection as we used to know it. But is the intimate relationship between collector and collection disappearing in the age of streaming music? The ease with which an old classic record can be rediscovered, the accessibility of the collection and the renewed connection with fellow collectors shows that this opinion would be wrong. When we look at the developments in online streaming music, we can see that the ways in which a collector can give meaning to an otherwise rather chaotic gathering of stuff, is only increasing. With this, the passion that goes into collecting is only increasing in the age of streaming music.

Pandora Presents Emerging Problem for Broadcast Radio

In a Web survey of more than 26,000 rock radio listeners from around the United States, Pandora is emerging as the runaway winner among Internet radio music services. Jacobs Media President Fred Jacobs comments, "Radio broadcasters may think the competition is the radio station down the dial. Pandora is emerging as the premier Internet radio station, winning new listeners and fans as streaming and mobile devices become popular. It is a threat to terrestrial radio."

Of streamies -- those who listen to Internet radio -- nearly four in 10 (37 percent) tune in Pandora. Among the long list of streaming radio stations that respondents could choose from, Pandora is the clear favorite, showing a strong four-year listening trend.

Pandora also has momentum. Of those who listen, 43 percent say they are tuning in more often, while 15 percent already listen frequently. Owners of iPhones, Androids and BlackBerry devices are listening to Pandora more frequently.

Pandora compares very well to terrestrial music stations. More than half of those who listen to Pandora (55 percent) say that it is better than most commercial radio music stations, while only 5 percent say it is worse. Of those who listen, 37 percent have no complaints, but 25 percent say the service does not allow them to skip enough songs.

Jacobs Media's Technology Web Survey VI was conducted mid-February/early March 2010.

Pandora and Facebook get social music right

Facebook made several important announcements on Wednesday. I'll leave the details to others--this is a music-focused blog, after all--but I think that Facebook's leaders have positioned it as the infrastructure provider of the emerging social Web and potentially as the first Internet company to challenge Google's dominance in online advertising.

Basically, now that everybody (400 million users) is on Facebook, the company is trying to extend itself to the rest of the Web, allowing you to broadcast your likes and dislikes from other sites back to your Facebook friends, and allowing your Facebook social graph to extend beyond the confines of the site. (Robert Scoble has a good roundup of the implications.)

See what your Facebook friends have been listening to on Pandora. (Some portions of this image have been obscured for privacy reasons.)

A good example of how this could play out can be found in a partnership with Pandora, the popular personalized radio service. Today, if you go to Pandora and select "Friends' Music," it will ask if you want to connect your Pandora and Facebook profiles. Enter your Facebook username and password, and suddenly, all your Facebook friends will be imported into the Pandora app. You can see what they've been listening to on Pandora recently, and click on embedded links to import their stations into your own Pandora player.

This is far better than other efforts to capture the social nature of music listening and recommendations. First, unlike the case with notification music apps like Serenade and Cardinal, I'm not posting to my profile or spamming my Facebook friends every time I change stations or hear a new song. (If I want to do that, I can still hit the "share" button on the Pandora radio player.) More importantly, Pandora now uses the social network I've already built and that I most frequently use--I don't have to go through the hassle of trying to create a new one from scratch, as Microsoft's Zune social system asked me to do.

Even cooler: music sites, such as record labels or band sites, will be able to place a new type of Facebook "like" button next to songs on their sites. As users select songs they like, this data will be collected by Facebook and shared with Pandora, so even if you've never logged into Pandora, it will immediately begin playing music it thinks you like, based on your activities around the Web--not just your listening habits on Pandora.

A brief word about privacy, because I know that it'll come up: Yes, the privacy implications could be alarming, especially when this kind of integration is applied to other types of services. But for music? The value of getting new recommendations from friends whose musical taste I trust outweighs any embarrassment I might feel from broadcasting my affection for, say, Rush and Faith No More.

Pandora's Seventy Percent
by David Harrell

The fact that Pandora (along with other Internet radio stations) pays out a large percentage of its revenues for royalties to BMI, ASCAP, and Soundexchange isn't news. But something really struck me about this bit in the Wall Street Journal's weekend magazine piece on Pandora founder Tim Westergren:

      Almost 70 percent of our revenue is paid to royalties. In most businesses, as you get bigger, you get advantages of        scale. Things get cheaper by the pound, cheaper by the minute. But that's not true in our case. It's the same price

"Almost 70 percent" is nearly the same amount as the 70 cents that Apple pays labels for 99-cent downloads from the iTunes store. Which, as Apple has long claimed, is pretty much run on a breakeven basis. While some have questioned that assertion, because Apple makes such a healthy margin on iPods and iPhones, it could certainly afford to run the iTunes store for minimal profit. Or even, perhaps, at a small loss. Ditto for Amazon and its mp3 store, which pays a similar percentage to labels for the digital downloads it sells. Amazon has long been willing to sell content at a loss to establish itself as a market leader, as shown by the $9.99 pricing of digital books for its Kindle reader.

Despite not having a high-margin physical product, Pandora has been in the news because of its first-ever profitable quarter -- and rumors that it will purse an IPO. It's certainly possible, of course, that with new products, services, or tweaks to its business model, that Pandora will grow its profit margin. But without changes to how content providers (labels, artists, and publishing firms) are compensated, there are definite limits to the ultimate profitability of any music streaming business.

Zimbalam’s Digital Music Distribution Service Launches in North America

Zimbalam, the largest digital music distribution and marketing network, today announced the launch of the US version of its distribution network. Zimbalam, owned by independent music distributor and service provider Believe Digital, provides artists with access to 25 of the most popular music stores such as iTunes and Spotify and unprecedented global reach through several hundred additional stores worldwide.

Zimbalam delivers transparency and marketing control to artists with real-time daily sales data, CRM tools such as email newsletters and social networking promotional widgets. Zimbalam’s widgets make global marketing easy by automatically detecting a person’s location and then promoting to the most popular music stores for that region.

To maximize artist revenues, Zimbalam simply charges an industry-low annual fee so artists can keep 100% of royalties. Zimbalam’s nominal fee is $29.99 in year one then $19.98 per year after for an EP or album. Once the fee is recouped, artists keep 100% of royalties generated from sales. After the initial year, artists are only charged if they have sold enough music to cover the low fees, essentially eliminating financial risk.

To celebrate the South by Southwest (SXSW.com) festival, Zimbalam is offering a special rate through the end of March, with distribution of the first album at a reduced rate of $5.99. Artists taking advantage of the special rate can effectively start making money after only one album is sold. Artists can take advantage of this offer by using the code SXSW when signing up at www.zimbalam.com.

“With Zimbalam, our goal is to bring the largest distribution network, the strongest marketing tool set and the greatest revenue potential, all at the lowest price point, to the US independent music community,” said Believe Digital and Zimbalam CEO Denis Ladegaillerie. “We want to make sure that independent artists have the chance to not just realize the best business opportunities, but also to realize the opportunity to break through on a global basis.”

Bridging the gap between the independent music community and major labels, Zimbalam also gives artists with breakout potential the opportunity to benefit from the A&R team of parent company Believe Digital (www.believedigital.com). Artists with strong performance on the Zimbalam network are assigned a personal A&R manager to provide valuable advice and support on release strategy, marketing and promotion investment and to ensure they are receiving the greatest exposure while maximizing monetization opportunities.

Believe Digital is the largest distributor for independent music community, based on both geographic reach and number of distribution outlets. Founded by top music executives from companies including Vivendi Universal, MP3.com, eMusic, BMG Entertainment and Sony, the company has received support from top VCs XAnge and Ventech. Internationally, Believe is supported by a staff of 70 dedicated employees in six countries across Europe (the United Kingdom, France, Italy, Germany, Spain and Portugal) and the United States.

Slacker adds stations curated by artists, experts

March 09, 2010 - by Matt Rosoff

I usually think of online radio service Slacker as a direct competitor to Pandora: both offer user-customizable radio stations based around individual tastes, both are available for the iPhone and other mobile platforms, and most important, both are available for free, with optional subscription versions--Slacker Radio Plus and Pandora One--offering additional benefits.

But unlike Pandora, Slacker also has a big investment in more traditional one-to-many Internet radio, with actual humans programming stations or playlists based on particular genres. This is nice if you really don't know what you want, or simply want to be surprised. This week, the company took this programmed radio model another step and introduced stations curated by alternative rock band AFI and hip-hop magazine The Source. In each case, the curators not only pick songs, but record introductory spots or between-song banter. Slacker automatically inserts this material between songs the first time you play a particular track on that radio station, then makes sure you don't hear that same banter again. It's sort of like a podcast, but constantly changing, and with no fixed length.

If neither of these stations appeal to you, stay tuned: Slacker expects to add more stations curated by artists and music publications in the next few months.

The Echo Nest Gets $500,000 Grant From National Science Foundation


March 05, 2010 - hypebot

Music recommendation platform The Echo Nest has been awarded a $500,000 Phase IIB SBIR grant from the National Science Foundation. 

Since 2005, The Echo Nest has been indexing and analyzing music fan activity across the web.  The NSF-funded project, entitled "Automated Community and Sentiment Mining for Global Media Preference Understanding" will augment the company’s existing “Fanalytics” capabilities, providing in-depth understanding of an artist’s existing and potential online fan base.  Commercial applications of Fanalytics include targeted music promotion, demographic and psychographic profiling of artist fan bases and behaviorally - targeted advertising for online music applications, according to The Echo Nest.
The Phase IIB SBIR grants are the result of a  peer review by leading scientists, entrepreneurs and investors, with a focus on the commercial potential of the proposed technology. "With the NSF's help, we are excited to be able to approach  next generation analytics, machine learning and data mining problems that are crucial to understanding music fans and to helping artists find their audience online.” says Dr. Brian Whitman, co-founder of The Echo Nest.

RIAA Tells Fans To Stop Nibbling

March 04, 3020 - Hypebot

In a post on the RIAA blog, VP of Reaserach Joshua P. Friedlander titled "Nobody Stole The Pie" argues that the decline in music sales is like the story of the same name by Sonia Levitin. In it the town of Little Digby annually bakes a giant lollyberry pie.  When one year the celebrated pie is gone, all the townsfolk who had picked away at it bit by bit claim it was “Not I who stole the pie".

image from www.ruthys.com "... the top 10 albums in 2009 sold a total of 21 million copies, and the top 10 tracks totaled 36 million paid downloads.  But the top 10 albums in 1999 totaled 55 million in sales ..top sellers fell by more than 50%. 

In the last 10 years, the major record labels’ direct employment in the United States fell from about 25,000 people in 1999 to less than 10,000 today – a drastic reduction of over 60% in people who enable the creation and development of new music."

...So if the investments dry up, and fewer new artists are able to be developed, will filesharers who stole bit by bit look at each other and say it was “Not I” who stole the pie?"

 

The Fate of a Format: Will MusicDNA Catch On?

March 02, 2010 - by Kyle Bylin (@kbylin) 

Twenty-seven and a half years ago, the manufacturing of the world’s first compact disc took place at a Philips factory in Langenhagen, Germany.  Upon its introduction, the CD was marketed to music fans with regards to its superior sound quality and scratch free durability.  But, as time when on, those claims were both highly debated among audiophiles, and, in the case of durability, or “Perfect Sound Forever” as they called it, even refuted completely.  When compared to the record in terms of the trade-off between fidelity and convenience that music fans made when choosing formats, it’s clear that the CD offered up far more convenience than records did at the time.  Their higher portability and capacity to allow effortless skipping between songs gave the CD a definite edge.

In contrast, the record tended to resonate more deeply with music fans for the reason that it offered a considerably higher degree of fidelity.  It has been passionately argued that the record contained more natural sounding music — where the warmness of the instruments and voices hadn’t been lost.  Nor had the much finer nuances — such as background noise, minor mistakes, or even the slightest cough — been removed, adding an essence of human touch and imperfection to the format.  There was this distinctive, yet intangible quality surrounding records — that seemed representative of the culmination of artistry and musicianship that bleed into their production.  Their artwork and liner notes garnered identity not only to the music, but to the music fans themselves who preeminently displayed their vast collections.

Despite the presence of these two subtle components: aura and identity, records were replaced by CDs because their inconvenience trumped their fidelity.  This trade-off would happen again once MP3s became widely available, as their ease of use, in the minds of many people, made up for their sheer lack of quality.  Not to mention the fact that for several critical years they could be downloaded for free at a time when most CDs, regardless of the pricing war that occurred, were still considered a relatively expensive commitment for the fans who only wanted access to a couple radio singles.  Then, iTunes and the social phenomenon of the iPod ignited the penchant for the MP3 over the CD among fans and pushed the format back into what technology writer Kevin Manley calls the fidelity belly.

Almost always, he argues, new technologies start out there, and, at the end of their lifecycle, old ones inevitably fall below this threshold.  Once a product or service possesses so little of either convenience or fidelity that consumers are no longer motivated to act, they have fallen into the fidelity belly — where people are no longer excited about them, because, like CDs, they are no longer perceived as needed nor are they deeply loved by fans.  This is the place that Manley, after nearly two decades of writing about the technology sector, named “the no-man’s-land of consumer experience,” once he observed that products or services that only offered so-so fidelity, and were only somewhat convenient, didn’t catch on.  It’s this problem, he argues, that’s drastically hurting CD sales.

MusicDNA, said to be “the successor to the MP3,” is hoped to amend this disconnect between the desires of fans and the record industry’s current offerings by granting owners of the format access to “additional updated content, including lyrics, artwork, tour dates, blog posts, videos, and Twitter feeds.”  Much like the format advancements made by the CD and MP3, the appeal of MusicDNA is based entirely on higher convenience, seeing as all the content that it seeks to make available to fans already exists online, elsewhere.  The idea is that by only allowing purchased versions of the format to be updated, while pirated versions remain static, fans will feel more encouraged to purchase these songs and curb their file-sharing habits.  But, is locking out “pirates” the right strategy to adopt?

II.

Currently, the record industry is structured around a top-down, highly centralized “push” marketing model — where a few key gatekeepers anticipate the demand for their product in the marketplace and finance the production of music from a small number of artists — based upon what they want to sell to music fans, not on what music fans want to buy.  The problem that arises here — if music fans become unsatisfied not only with the product being distributed, but the means through which it is distributed — is that, in times of change, the highly specified, centralized, and restrictive nature of the record industry, and their push systems, prevent them from adapting.  It prevents them from experimenting, improvising, and learning as quickly as possible about the changes in consumer behavior.

In From Push to Pull, John Seely Brown argues that, “Push systems not only inhibit product innovation but — even more important — make it much harder to implement incremental process innovations rapidly.”  He believes, “The next frontier of innovation will require the broader adoption of pull capabilities as well as less reliance on traditional push systems, which, as demand becomes more and more difficult to forecast, increasingly fail to even deliver the efficiency they were designed to promote.”  Over the course of a decade, the record industry’s “push” marketing model, the CD-Release Complex, has severely weakened.  Once fans migrated to the Internet and began discovering music outside of the mediums that major labels used to promote new music, the record industry began to decline.

“For as long as anybody in the business could remember, labels relied on MTV, radio, and record stores for exposure,” Steve Knopper writes in Appetite for Self-Destruction.  “Push the gatekeepers at those place aggressively enough — in some cases, bribe them — and you’ve got a hit.”  But, the “push” mentality of the record industry could not be extended into the digital realm, because all three of these institutions — that they built themselves on the back of — deteriorated in the face of the societal and technological shifts that the Internet brought forth.  With that, the media landscape fractured into niches and it rendered push marketing nearly impossible.  In its place, what the web, the proliferation of digital technologies, and the rise of the networked audience leads to is "pull" marketing.

“Rather than treating producers as passive consumers whose needs can be anticipated and shaped by centralized decision makers, pull models treat people as networked creators even when they actually are customers purchasing goods and services,” Brown explains.  “Pull platforms harness their participants’ passion, commitment, and desire to learn, thereby creating communities that improvise and innovate rapidly.”  Prior to the Internet, music was pushed out through specific delivery mechanisms like radio and MTV wherein the fans on the other end were regarded as passive participants in the process.  Push marketing was something that you did to fans, but it didn’t involve them.  Today, music fans are actively engaged, have the choice to participate, and are “pulled” in directly.

What’s unique about MusicDNA in this respect and the true opportunity that it embodies is that the format’s updatable nature enables “pull mechanisms” to be built within the music itself, rather than existing outside of it.  All of the media surrounding an artist can be leveraged at the point of interaction with the music to encourage the participation of audiences.  It is in this instance that a commercial culture defined by passivity converges with a participatory culture that promotes activity — where all of the conversations that once occurred in the absence of the music become a vital part of its identity and further evolve it as a social object.  In theory, then, the record industry should want to have as many MusicDNA tracks in circulation as possible, to ensure engaged and well-informed fan bases.

So, by only allowing legitimately purchased MusicDNA tracks to be dynamically updated, while unauthorized versions remain static files, what the  record industry is denying itself the is ability to engage with “pirates,” to use these songs as “pull mechanisms,” and to leverage this additional media as marketing designed to convert them into paying customers.  In denying “pirates” convenient access points to their artists marketing efforts all the record industry ensures by doing this is that these fans will remain as passive consumers of music. When instead they could be cultivated into active participants – those more deeply involved in the career of an artist — who are the most likely to want to buy stuff from them.  Even if in the end what they buy is not digital files, but higher priced rarities.

III.

 Making the MusicDNA format widely accessible, low-cost, and dynamically updateable by anyone, of course, is not likely the approach that the record industry will take.  It is intended to be a scarcity in the face of radical abundance – one that is “hoped” to deter piracy and get fans excited about buying music again.  The problem with those claims, though, as author Pip Coburn pointed out in The Change Function, is that, “Sometimes technologists forget just how vast the chasm is between them and real people.”  Further arguing that, “it is real people and not technologists who determine the fate of technologies.”  In that case, what will be a more realistic fate of MusicDNA?  There’s no doubt that it offers convenience, but whether or not is high enough is the big question looming.

Since the MP3 file by default already offers relatively low-fidelity, MusicDNA’s only shot is to be super-convenient, of which digital distribution takes care of in terms of ease of use, but another huge aspect of convenience happens to be cost.  If MusicDNA is more expensive than the standard MP3 by too much than the labels risk putting up a barrier that may leave fans thinking that the added value just isn’t worth the extra cost.  Seeing as most savvy and diehard fans will have taken the effort to seek out the additional content that’s being tied in with MusicDNA, how the format rates in the eyes of casual fans is what matters.  If the appeal isn’t there, it may never leave the fidelity belly, “where neither the convenience nor fidelity is good enough to attract a mass-market audience.”

If that’s the result, a huge opportunity will be lost, and unfortunately, MusicDNA would only serve as an example of how out of touch the record industry is in terms of knowing who their listeners are, let alone knowing what they want.  For far too long, fans have been regarded as passive participants and denied access to the experiences they want, and file-sharers have been ignored and litigated.  When in fact, as William Patry argues, “Copyright owner’s problems are market problems, and they can only be solved by responding to market demands: strong copyright protection cannot make consumers buy things they do not want to buy and, as the RIAA’s ill-conceived, ill-executed, and ill-fated campaign of suing individuals demonstrates, laws cannot stop individuals from file-sharing.”      

This is where the record industry went wrong, in thinking that all “pirates” are created equal and are solely motivated to file-share music because it’s free, not because they are in some way, shape, or form left unsatisfied by the current system.  The means through which fans discover, acquire, and consume have evolved so prominently over the course of the last decade; to the point where it’s hard to imagine that our largely unchanged ecosystem still reflects upon the needs of the fans whose obligation it is to service.  What MusicDNA presents is the chance for the record industry to reach out to file-sharers, engage them with the content surrounding their artists, acquire their e-mails and permission to market, and to finally propose unique propositions and monetize “pirates” as fans.

At present, though, there is no sober reason to think that fans and file-sharers will be motivated to adopt MusicDNA outright, unless the offering is realistically positioned in terms of price and ease of use.  Otherwise, in the fidelity belly it will stay.  In order to avoid this fate, an alternate strategy should be considered: flood the networks.  Make it so file-sharers ought to want MusicDNA — that they go out of their way to ensure they replace their MP3s with it.  Then, activate these files and begin dynamically updating them.  From there on out, connect with pirates and give them reasons to buy.  In 2008 alone, there were 40 billion chances to do just that.  This approach may not ‘save’ the record industry per se, but at least it's better than what they've been doing since the rise of file-sharing.

Home Cooking Is Killing The Restaurant Industry!

February 25, 2010 - by Mike Masnick

For many years, whenever people insisted that the ability to download movies would kill the movie business -- including the box office revenues -- we've made the analogy that just because people can prepare food at home (for much lower cost!) it hasn't changed the fact that sometimes people still go out to dinner. It's an apt analogy. People go out to dinner for a variety of reasons, despite cheaper (and potentially healthier) fare at home. Basically the overall experience makes it worthwhile as a social experience. That applies equally to movies and eating out. I was reminded of this recently. A whole bunch of you sent over Gizmodo's post about the old Dead Kennedys cassette tape mocking "Home Taping is Killing Music" by leaving the second side blank so "you can help":


This image (or a similar one) shows up every couple of years and makes the blog rounds. So, at first I wasn't going to bother posting it, but then the Freakbits guys pointed me to various "offshoot" slogans and images, including the following one that's so good it needs to be shared widely: Yes, folks, home cooking is killing the restaurant industry. Why won't Congress and the USTR deal with this pernicious problem?

ReverbNation & Audiolife Partner For Reverb Store

February 24, 2010 - hypebot.com

image from profile.ak.fbcdn.net Music marketing platform ReverbNation has partnered with direct to fan e-commerce provider Audiolife to launch of the Reverb Store following a private trial involving more than 15,000 bands.

image from www.newmusicseminar.biz Using on demand production, the Reverb Store allows musicians to sell t-shirts, hoodies, hats, CDs, downloads and ringtones direct to fans on Facebook, social networks, their blog and homepage without any up front expense.

Artists set the final price above the cost and keep 100% of the profits. They can order larger quantities of their CDs and merchandise at discounted prices for sale at shows. Some artists also use on demand production to test market new merchandise before producing larger quantities.

A Video Demo:

The store is designed to be easy to set up. In this demo an existing ReverbNation user creates a t-shirt and is selling it on Facebook in 2 minutes.

Selling Merchandise on Facebook in Two Minutes or Less from ReverbNationBlog on Vimeo.

“Any artist can connect with fans to sell music and products in less than two minutes using the Reverb Store,” said Michael Doernberg, CEO of ReverbNation. “Reverb Store integrates seamlessly inside Facebook with two applications for artists: the leading all-in-one promotional application for bands called ‘MyBand,’ and the stand-alone store application for musician pages called ‘Store.’”

"The Reverb Store was designed with one thing in mind: to create a streamlined tool for the artist that would require no financial investment but would afford the musician, band, or label a way to monetize their products through leveraging current technologies," said Brandon Hance, founder and CEO of Audiolife.

February 22, 2010 - by Tess Cychosz

Music Blogs are the new A&R scouts for new music. Music Fans and Record Labels use influential music blogs to filter out and find new music. Some Music Blogs write about popular music and give reviews, gossip and MP3’s, but the most influential ones are usually written by one blogger who writes about music he loves and does not follow the mainstream music scene. Nomad_bannerMusic readers on these sites go there because they have the same musical tastes of those bloggers and want to discover cool new music. As a result if your band is lucky enough to be positively reviewed on a site it can bring you new fans to your shows and your websites.

Well how do these Bloggers find new music to write about? They go to record stores (yes there are still a few around) and ask the clerks what is new and cool. They ask friends and check out lots of live shows. The last way is they almost all take submissions and on their site where they explain how to submit your music. The challenge is most bloggers have no time to listen to everything sent in so the chances of them listening to your MP3 and getting put on their blog are slim.

However, we at MusicNomad have heard from music bloggers themselves on the do’s and don’ts for submitting your music. So we have compiled a list that will hopefully increase your chance of them opening up your submission and getting mentioned in their music blog.

Do’s

  1. Make sure you check out the style of music the blogger likes and send your music to only those bloggers that like your style/genre.
  2. Personalize the email and refer to something you read in the blog that you liked. Mention some of the bands the blogger likes and that you are in the same genre as them.
  3. Tell the blogger some cool bands you think he will like and then in your signature put your band’s myspace page, etc and tour dates.
  4. Use the subject matter to draw attention to something important such as you are touring through the bloggers town or you sound like one of his favorite bands.
  5. If you are touring through the bloggers town, let him know and ask him to come down and check you out.
  6. Send MP3 links

Don’ts

  1. Don’t show up at their home or place of business, they don’t like stalkers
  2. Don’t send CD’s unless they specifically ask for it.
  3. If you are a rap artist don’t send your MP3 to an indie rock blogger and vice versa.

In the end most bloggers write about music they like and share it with their readers that have come to respect them for their recommendations and taste. These influential bloggers help bring people to an artists show and promotes the artists concerts. They also get pleasure in helping the bands they like and bringing new fans to them. I hope this article helps your chances of getting on some influential blogs.

The Average Spotify User Has 15,000 Tracks In Collection, CEO Daniel Ek Says
by Robin Wauters - Feb 17, 2010

Spotify CEO Daniek Ek on stage in a session on Mobile Entertainment & Lifestyle at the Mobile World Congress in Barcelona said that the average user has 15,000 tracks in his or her collection.

This is way more than the average PC user, Ek claimed, who has about 500 tracks on their drives. Ek also repeated that Spotify users have so far created over 100 million playlists.

In a Q&A session, Ek said Spotify is very keen on inking more deals with mobile operators from around the world, and that there are lots of conversations ongoing. He reiterated that the packaging will be key, in the sense that bundling Spotify with data plans in a smart way will be crucial both for the music company and carriers, ISPs and device manufacturers.

The two key partnerships Spotify has in place right now are with 3 in the UK and TeliaSonera in Sweden. The latter deal is particularly interesting, Ek said, because the operator is the exclusive carrier for the iPhone in Sweden, and that Spotify clearly has the same appeal for users as the combination of iPod / iTunes does.

In case you were wondering: not a word about a possible imminent launch in the United States.

Last.fm’s new Timeline charts the history of your music taste

Last.fm Scrobbling TimelineHere’s something that avid Last.fm users will find fascinating – a new tool that charts your listening habits over time.

Innovation has been thin on the ground recently at London-based Last.fm. Since the music service got a design overhaul in summer 2008 there have been lots of commercial deals (with Microsoft’s XBox Live service, for example) but little in the way of new features for long-time users to get their teeth into.  

One place where the innovation has continued is the Last.fm ‘Playground‘, an experimental section of the site similar to Google’s Labs. Much of what’s available here is locked away only for use by paid-up subscribers to the ad-free version of the Last.fm.

However, a new Scrobbling Timeline has just been launched that is open to all, and if you’re a heavy user of Last.fm you’ll be data visualisation heaven. The graph shows exactly how many songs you have listened to throughout your membership of the service, picking out key milestones like your 5000th track or your 10,000th.

You can compare your graph with that of your friends and a ‘cumulative’ mode shows how quickly you’re adding to your overall total of songs listened to. In the example below you can see that I’m much more of a Last.fm addict than my brother.

It would be great to see data visualisations like this make their way into the main Last.fm site. New features would renew interest in the service among long-time users whose enthusiasm for it may have waned. In the era of hot new music start-ups like Spotify it’s easy to forget that Last.fm was there way before them and is sitting on a lot of interesting listening data.
Last.fm Scrobbling Timeline

  

 The top three social media tools for bands

February 12, 2010 - by Pierce King
Since MySpace Music has failed to show much staying power, tools on other networking sites have risen to fill the void.

Here are a trio of features, which encourage fan engagement and help you easily manage fan relationships reaady for this ever-changing new era of social networking.


1. Improve your Facebook Page with ReverbNation's MyBand

The Fan Page has revolutionized the way that bands can interact on Facebook, but Pages have always lacked the familiar look and feel of sites that are native to showcasing music. MyBand, on the other hand, lets you put your band’s photo, streaming tracks, and upcoming shows front and center. Set your preferences to show the MyBand tab by default, and suddenly people can get an instant snapshot of your band without scrolling or fumbling around.


2. Share Songs on Twitter with Twiturm

Introduced at the beginning of 2009, Twiturm lets bands upload music and share it through their Twitter profiles without sending listeners off to the depths of MySpace to access streaming music. By integrating with your band’s Twitter account, Twiturm allows you to post your music and track listens. You can also choose whether or not listeners can download the track. Additionally, users can share the track with their followers with one click.

3. Reward Increased Engagement with FanBridge

Acquiring new fans is only half of the battle. Maintaining your relationship with them is a crucial part of ensuring that they continue to engage with your band.

This means taking a calculated approach to keeping in touch. Your fans may engage with you in only one place, such as e-mails or now in multiple places. FanBridge, a subscription service that was first introduced in 2007 and entered the black this year, aims to do just that by taking the guesswork out of e-mailing and texting fans.

It even allows you to offer exclusive multimedia to those who sign up for your list. Service begins at around $7 per month and scales upward to about $250, a good deal for what is essentially a music-specific contact management system.

Report: Music could save ISPs ‘hundreds of millions’ in churn costs

churnFebruary 10, 2010 - http://musically.com

There’s a theory that ISPs launching their own music services could be quids in when it comes to reducing the number of customers that ‘churn’ to rival providers. But how much?

Billboard has been crunching the numbers, based on US ISP Comcast, and claims that if the ISP launched its own music service and reduced churn by 10%, over five years the positive impact would be $162 million. Reduce it by 20%, and it’d be $325 million.

“These numbers show that broadband providers have reason to place a large value on a music service that is properly integrated into its product offering,” claims Billboard’s Glenn Peoples. “For this reason, record labels have ample reason to pursue deals with broadband providers.”

Music Gets More Social As It Moves To The Cloud

by Mark Mulligan February 08, 2010

"Social tools and media are of course already inherently connected and inherently cloud based, whether it be Facebook, Twitter or MySpace.  When woven into the fabric of a digital music offering they bring that experience to life.  In a connected music experience that exists across multiple devices and multiple platforms, social connectivity is more important than ever. Social connectivity turns a bored 10 minutes waiting for a train into a connected a fun engaged interaction with a friend, sharing playlists on MySpace. It transforms looking for something new to listen to on your iPhone into a social discovery journey."  


The Pirate’s Guide To Paying For Music

music pirate The Pirates Guide To Paying For MusicThere is no need to rehash the endless discussion over what the effects of peer-to-peer music transfer are. It does however have one inextricable problem for those engaging in the sharing of music files, how do you support the artists that you love?

So for the pirate looking for a way to keep the flexibility of downloading discographies of music while keeping the price low and supporting the band, this is the pirate’s guide to paying for music.

We are going to look at three different services: Zune, Spotify, Play.me, and MOG in detail. Each has a different feature set, and a different plan for how to interact with music. After, we’ll get into what else is out there

Each was selected under the following criteria:

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  • Must have a library in the millions of tracks which included mainstream labels.
  • Must have a subscription option for simple payment.
  • Must allow for unlimited listing.

Of course, there are a host of other music options, but we wanted to present you with a concise list of the star players. We are not including iTunes because it requires individual album/track purchases. It and Amazon have similar models. If you just want to buy a single track, those are good options. The selected options are tailored for an experience similar to torrent music: get quite a lot at once for a low, low price.

Zune

 The Pirates Guide To Paying For Music

Quick facts: costs $14.99 monthly, you get some music forever, only in the US.

When Zune launched its devices and software, both were panned from the get go. While the devices have never found a serious audience, the software has excelled its hardware brother and become something to respect. I use Zune to manage my (annoyingly) massive library, you can read about the software itself here.

The Zune Pass costs $14.99 a month, and has two important points. First, you can download as much music as you want. If you keep paying the fifteen dollars monthly, those tracks are good to go. Stop paying, and they go dark. Also as part of the deal, is ten songs a month that you get to keep forever. Once you get used to a Zune Pass, it becomes quite intoxicating to download songs by the hundred, legally.

Of course, if you want, Zune sells tracks for a buck a piece or so, but you have to use Microsoft Points, so avoid it.

Problems: If you are not in the 50 States of Puerto Rico, you can get lost.

Spotify

2 The Pirates Guide To Paying For Music

Quick facts: streaming service that costs either nothing or €9.99 monthly.

Spotify has two flavors, free and premium. If you are a free user, you can listen to music, with advertisements, as much as you like. If you want to pay, for just ten euro you can be a premium user. This means no audio advertisement interruptions, higher sound quality,  and no branding of the player.

Spotify, as does everyone it seems, sells songs for around a pound a piece.

The service has over six million tracks, and even integrates with Last.fm. For just ten euro, you get a heck of a lot: access without interruption to all the music you want instantly, no potential guilt.

Problems: If you do not live in Sweden, Norway, Finland, the UK, France or Spain, you are out of luck.

Play.me

 The Pirates Guide To Paying For Music

Quick facts: simple streaming service, low price, keep some songs.

Play.me is a completely browser-based service, except when they let you download .mp3’s. A newcomer, Play.me is more similar to Spotify then Zune. It lets you stream 2.5 million songs on its website, and gives you some free tracks to keep at the end of the month.

The free service is just ten hours a month, but oddly gives you a free download. For $9.99 you get unlimited streaming and five .mp3s monthly. Not a bad deal for just ten bucks. Also, you can save playlists and put them onto your iPhone via an application, meaning that you can make your streams good for the go.

Problems: Their library is smaller, US only.

MOG

4 The Pirates Guide To Paying For Music

Quick Facts: MOG is a big streaming service with millions and millions of tracks, cheap.

MOG is like Play.me, but cheaper, and with a better user interface. You can stream a a larger library than Play.me has, but their monthly plan does not include any .mp3’s that you keep. That might be a problem if you place a high value on what you have rights over.

At $5 a month, MOG All Access is ad free music nirvana. The service has received rave reviews for its construction, something that we cannot say about all music startups. It may have an odd name, but MOG is a cheap option if you like streaming.

Once Again, Be Careful What You Wish For With Net Neutrality Once The Lobbyists Get Done With It

February 02, 2010

We've pointed this out in the past, but those who support regulations in favor of net neutrality should be careful. Once the lobbyists get done with them, any rules won't resemble what you think they should. The EFF is already up in arms over the fact that the proposed net neutrality rules would allow blocking BitTorrent, even though it was Comcast's blocking of BitTorrent that helped kick off the latest round of attention in net neutrality. That does seem a bit ironic... but, again, it shows that, just because you call something "net neutrality," it doesn't mean it is about a neutral network. With the entertainment industry redefining net neutrality to their own liking (i.e., so that file sharing can still be blocked), you can bet that other lobbyists (including the telcos) will work hard to redefine it to their liking as well.

MusicDNA – new digital file that is son of MP3 unveiled

Alexandra Topping

Technology by team behind the MP3 will offer fans a new way to listen to music and could be key in the fight against piracy

Buying a MusicDNA file of Florence and the Machine's album Lungs will allow fans to watch videos of recent shows, find out tour dates and follow blogs or tweets

A new way of experiencing music – billed as the most significant development in digital music since the invention of the MP3 – was unveiled at the biggest ­conference in the music industry calendar today.

MusicDNA, a digital music file, could help the embattled industry by encouraging music lovers to pay for the latest hits, according to developers.

The team that first worked on the MP3, which turned the music industry on its head, today revealed what they hope will become its successor at the Midem industry conference in Cannes. MusicDNA files will not only contain music but bring together a range of artist information, from artwork and song lyrics to tour dates and Twitter feeds.

A fan buying a MusicDNA file of Florence and the Machine's Lungs, for example, could watch – on their computer screen or music player – videos of recent performances, pore over artwork and sleeve notes, find out about concerts and buy a tour T-shirt, while following any blogs or tweets the musician might write.

"Out of a rusted old VW Beetle we are making a Ferrari," said Stefan Kohlmeyer, the chief executive of Bach Technology, which has developed the file.

"We are taking an existing idea, giving the end user a lot more and making that file much more valuable – like transforming a tiny house into a huge villa."

The file is one of a range of ideas being proposed by technology companies as they clamber to meet the needs of the rapidly developing digital music market. Technology giant Apple released iTunes LP last September, a format which includes interactive album artwork and bundles multimedia elements alongside the music. A similar format, known as CMX, is being developed by the four major record labels. Meanwhile MXP4, another music tech company, has created a file that provides multimedia content as well as interactive music applications.

Which of the formats will come out on top remains to be seen, but they are a step in the right direction, according to Paul Brindley, of digital music specialists Music Ally. "It is difficult to recreate the value of a physical product digitally but we are going to see a lot more artists offering a premium product to real fans that are special and higher value," he said.

The MusicDNA technology could prove key in the fight against piracy, said Kohlmeyer. The information given with the legally downloaded files will update automatically with tour dates or releases, but pirated files will remain static. "At the moment there is no real incentive to buy a legal file. If we concentrate on making the legal file, we can help the entire music industry," he said.

It is not known how much the technology will cost. Bach says the price will be set by record labels and retailers, but hopes it will be in a similar range to current digital files. It will be launched this spring.

The company has joined forces with independent labels including UK-based Beggars Group – home of Arctic Monkeys and Radiohead – as well as Tommy Boy Entertainment and Delta records in the US, though no major labels are yet on board.

Tom Silverman, the founder and CEO of Tommy Boy, said MusicDNA would provide a much-needed boost to artists and fans because it would connect the two long after the initial sale.

"It is a boon for fans as it can offer multiple levels of artist stuff based on the fan's passion level. It's a boon for labels because this high-value consumer experience is not clonable, yet highly viral, and gives them full content and pricing flexibility. Their imagination is their only limit … If MP3s were the cassette, MusicDNA will be the CD."

Apple Meets With Major Labels, iCloud To Launch This Year...

January 22, 2010
Apple executives have spoken to the top four recording companies about plans to offer a streaming music service free of charge to consumers, multiple music industry sources told CNET….Apple’s managers haven’t revealed many details about their plans but did discuss offering iTunes users a means to store copies of their music libraries on Apple’s servers. The benefits to an iTunes user would include the ability to back up music and access songs off the Web from any Internet-connected device and conceivably from anywhere in the world….Apple’s song downloads apparently aren’t affected. Apple has told some music executives that they see the streaming feature as a “value add” that could help stimulate download sales. Apple indicated in talks that the streaming service could be ready to roll out as soon as this spring.
Apple’s Secret Cloud Strategy And Why Lala Is Critical
by Michael Robertson on January 19, 2010
www.techcrunch.com

 For years there’s been speculation that Apple would supplement their $1/song (now $1.29) iTunes business with a monthly subscription service, but their upcoming plans are quite different and once again are positioning them to lead the digital music industry into a new era. Leveraging their ubiquitous iTunes software Apple plans to upgrade their users almost over night to a cloud music service in an ambitious move to beat Amazon and others to a cloud music service. Record labels are wary to give Apple even greater dominance which is why Apple’s new strategy is designed to sidestep new licenses from the major labels.

Apple’s recent acquisition of digital music startup Lala rekindled speculation of an iTunes subscription service. There’s no shortage of subscription offerings (Napster, Rhapsody, Spotify, Pandora, etc), but none have attracted the millions of subscribers necessary to make the high royalty structures work. Experts have pondered that Apple’s design expertise and hardware integration could make subscription work. And leveraging Lala’s digital library, licenses from the major labels, and a management team who cycled through several business models including the ten cent web song rental could make it a reality. It’s a logical assumption, but after talking to a wide variety of insider sources it’s clear there is no upcoming Apple subscription service and Apple has far different plans.

Lala will play a critical role in Apple’s music future, but not for the reasons cited above. Lala’s licenses with major labels are non-transferable, so they’re not usable for any new iTunes service. The 10 cent song rental model never gained traction and does not cover mobile devices thus is of little value to Apple. What is of value is the personal music storage service which was an often overlooked component of Lala’s business. As Apple did with the original iPods, Lala realized that any music solution must include music already possessed by the user. The Lala setup process provides software to store a personal music library online and then play it from any web browser alongside web songs they vend. This technology plus the engineering and management team is the true value of Lala to Apple.

An upcoming major revision of iTunes will copy each user’s catalog to the net making it available from any browser or net connected ipod/touch/tablet. The Lala upload technology will be bundled into a future iTunes upgrade which will automatically be installed for the 100+ million itunes users with a simple “An upgrade is available…” notification dialog box. After installation iTunes will push in the background their entire media library to their personal mobile iTunes area. Once loaded, users will be able to navigate and play their music, videos and playlists from their personal URL using a browser based iTunes experience.

Apple will link the tens of millions of previously sold iPods, Touches, AppleTV and iTablets to mobile iTunes giving users seamless playback of their media from a wide range of Apple branded devices. Since media will be supplied from the user’s personal collection, Apple is freed from the hassles of device and region limitations. iTunes shoppers will be able to continue to buy music and movies as they can now with purchases still being downloaded, but once downloaded they will be automatically loaded to their mobile iTunes area for anywhere access. Again because users are in possession of the materials no new licenses are required from the record labels or publishers.

Some are curious why Apple with thousands of engineers would need Lala talent and technology. For sure Apple could copy Lala technology, but time is of the essence and Lala lets Apple move faster in transitioning from their PC software business to a cloud service. They get a knowledgeable digital music engineering team, plus a code base to build upon which already does uploading and web playback. There’s precedence for this strategy. The iTunes software did not originate within in Apple but came via an acquisition. Finally, Apple gets the quick witted, brilliant, but occasionally loony Lala CEO Bill Nguyen who will play a future role in Apple. (Although one wonders how Jobs and lime light relishing Nguyen can co-exist.)

It’s critically important that technology companies build and maintain a core strength. This cornerstone allows them to command a significant portion of the profit stream and is a beachhead to launch other initiatives. Think Amazon/e-commerce, Microsoft/OS, Google/search, Apple/media. Jobs is keenly aware of the digital transition from PC to cloud centric programs and services. It’s imperative Apple lead in this transition or risk ceding leadership in media to others such as Amazon, Real, Microsoft, Yahoo, etc. Lala will help Apple protect their media franchise from encroachment by accelerating their cloud efforts. iTunes users can expect mobile iTunes in 2010.

MP3 co-creator wants to smarten-up dumb devices

Money Expert: Industry Should Compete With Music Piracy

Written by enigmax on January 05, 2010 

While warning that consumers could get ripped off if they don’t shop around when buying music, an expert on saving money says that if it’s serious about winning over pirates, the music industry must wake up and embrace price competition.

Journalist, TV presenter and Internet entrepreneur Martin Lewis is a pretty popular guy in the UK. Known to millions as the “Money Saving Expert,” he has regular slots on TV and radio where he shares tips on how people can make the most of their cash and fight back against corporate and retail might, by reversing bank charges, getting tax refunds and slashing credit card bills.

His first website, Moneysavingexpert.com, was founded in 2003 for around $150 but has since grown to receive around 7.5 million users each month. Lewis’s new venture, Tunechecker, is designed to help music fans get the best deal from online music stores.

Recent research by the site has revealed some alarming differences in prices for exactly the same products. Downloading all of 2009’s top 40 albums from the cheapest retailers would cost £864 less than if they were all bought from iTunes. That’s a lot of money.

When looking at singles, specifically last week’s number 1 record in the UK, the cheapest retailer offers the track for $0.49, while iTunes wants $1.29 – nearly two and a half times more. The cheapest retailer sells Michael Bublé’s number 1 album at $7.99, while the iTunes price is $12.99.

Not surprisingly, recent research by TorrentFreak and millions of users worldwide reveals that the biggest savings are to be made on file-sharing networks, where all tracks by all artists, big and small, on any label, in any country, are to be found for free.

These are savings that Lewis can only dream about, but being realistic, most people recognize that the labels, musicians and the companies behind them have to earn a living. Lewis notes, as we did yesterday, twice, that the solution lies with competing with piracy.

“The music industry needs to wake up and embrace price competition. it’s facing annihilation from illegally download tracks, yet there are still remnants of an attitude that price doesn’t make a difference.

“If it promoted cheaper, legit music it’d mean fewer illegal downloads.”

Yet while millions flock to file-sharing networks and the knowledge on how to use them continues to spread, there is still a huge and largely untapped market out there, eager to funnel money through the official channels.

“Since we launched the TuneChecker.com a month ago we’ve had 400,000 users, an indication there’s a real appetite to download music at the lowest price,” concludes Lewis.

We get the feeling it’s is going to be a recurring theme in 2010. Pressurizing ISPs, monitoring Internet users and throwing around meaningless warnings is going to do little to bring customers back to the music industry.

The solution, the only solution, is good product, available now – right now, at a fair price. But that’s not going to happen, not for a long time yet.

Higher iTunes Prices? How Much Goes To The Artists?

December 29, 2009 - TechDirt

from the well,-how-about-that dept

Earlier this year, Apple finally agreed to strong pressure from the major record labels to introduce variable pricing on iTunes -- which officially would make some popular songs $1.29 and (in theory) also offer older, back catalog songs for $0.69. In reality, it's pretty difficult to find any of those $0.69 songs. However, as a musician, which would you prefer? Well, as Shocklee alerts us, most musicians might not see any of that additional fee (that report is a little misleading, though, in that it suggests -- incorrectly -- that all songs were driven up to $1.29). I have to admit that I'm a bit surprised by this, and wonder if it's really accurate. The telling quote in the article is this one:

"Artists receive fixed residuals for music sales based on individual contracts via their respective record companies," says Max Clingerman, a music executive for MixJam Records who explains "the staggering price increases are not for the artist interest, rather intended for executive pockets."
While I'm sure the intention was very much for exec pockets, I was under the impression that most major label contracts included royalty rates based on retail price. And while most signed musicians never recoup their advance, and thus never see any royalties whatsoever (no matter what the price), I do wonder if it's really true that musicians don't get a larger cut of higher priced digital sales (at least in the fictional accounting systems the labels use).

Of course, the larger point made by the article is almost certainly true. In increasing the price to $1.29, the demand for such songs has been driven down significantly, leading people to look for alternative sources for the same music.

FreeAllMusic.com Launches In Private Beta

December 22, 2009

image from assets.bizjournals.com FreeAllMusic, a new site that will offer mp3's in exchange for watching a single video commercial enters private beta today, December 22nd.

There is no software required and once a user chooses a brand to sponsor their download, that brand owns every part of the download process, which includes video advertising, through to the download into their offline music library.

During the private beta, the company is testing offers of 15 to 20 free downloads per month, five per user session, starting every New Music Tuesday, based on the usage patterns of a typical “hits-oriented” iTunes customer. Brands supporting the beta include Coca-Cola, Warner Bros. TV, Zappos.com, Lionsgate fillm Daybreakers, LG mobile phones and Inconcert3D.

Public public beta is expected to start some time in January 2010. Free All Media, LLC is headquartered in Atlanta, GA, and with sales offices in New York and Los Angeles. Richard Nailling is CEO and Brian McCourt is the Executive Vice-President of Business Development and Affiliate Relations.

Behind the music: Unlimited downloading is a risk worth taking

December 17, 2009

As media groups wrangle over charging for music downloads, should we redefine 'unlimited' – and what would you pay?

An unlimited future? ... downloading music from iTunes. Photograph: Martin Ruetschi/Keystone/Corbis

Earlier this summer, Virgin Media and Universal Music Group announced they were teaming up to launch an online music subscription service, offering unlimited downloads and streams. All they needed was to get the other record labels on board and hammer out the small detail of exactly how much the service would have to charge per month, in order for the labels to make this giant leap of faith.

During the autumn, there were rumours that Sony thought the suggested £10 per month was too little and EMI wanted the unlimited download offering to be capped (though that would negate the word "unlimited", wouldn't it?). And so the launch of the service has been put on ice.

On 9 December, Virgin Media told Billboard that it still intended to launch an unlimited service. Yet this week, a source close to the negotiations tells me that looks extremely unlikely. Instead, talks have moved on to debating how many tracks (for the price of £10 a month) would be enough to entice customers to sign up.

It was with great disappointment that I heard this news. Last year, when I wrote about the imminent launch of Nokia's Comes with Music, I was wary of the risks posed in allowing people to download as much music as they wanted for a fixed price. But after the launch of numerous limited music download services, most with a lukewarm customer response, I think it's a risk worth taking. It may even be the vital step we need to turn around (or at least slow down) the downward spiral of revenue from recorded music.

Ad-funded streaming has so far proved an unsustainable business model on its own. Even Spotify will need a healthy uptake of their Premium subscription option to survive in the long run. Though unlimited streaming services are important, the majority of people still like to download drm-free tracks, if only for the convenience of being able to listen to their music on any device, anywhere. Owning the tracks also means that they won't lose them if the music service goes under, gets bought by another company, or if they stop subscribing.

Nokia's Comes with Music offer has so far been less than successful, partly, I believe, because of a confusing ad campaign and partly because it still has its limitations. The recently launched Sky Songs offers 10 single downloads for £6.49 a month (15 for £7.99) and unlimited streaming. BSkyB says that they "do not break-out customer numbers for the service" so it remains to be seen how well it does, but with a per-track price of between 50p-65p, it may not be attractive enough for people used to ordering a la carte tracks from Amazon.co.uk for 69p (new releases can cost as little as 29p on Amazon).

I believe that Virgin Media's proposal for unlimited downloads for a monthly fee is necessary to truly give an attractive alternative to P2P. People want to have the freedom to download 40 tracks one month and five the next. Even if they only end up downloading 10 tracks a month, it's the perception of limitlessness that counts.

If Virgin Media charged £10 a month, it adds up to £120 per customer a year. It appears record labels are worried that the service would cannibalise record sales, that "the £50 bloke" would be history. But judging by recent surveys like this Ipsos Mori one, there aren't many of those blokes left. The survey puts the average spend on music by the UK consumer at between £40-£50 a year.

Sure, there is a risk that some customers will subscribe for a year, download as much as they can, then unsubscribe and never spend anything on music again. However, sources close to Nokia's Comes With Music say that, in their experience, few customers download huge amounts from their service.

Partnering with an ISP in this way also gives the ISP an incentive to help reduce piracy. Virgin Media has already partnered with British technology consultancy Detica to monitor levels of file-sharing.

But as the unlimited option (according to our source), appears now to be off the table, the question is: How many tracks would be enough for you to sign up to a £10 a month service? eMusic.com gives you 24 downloads for £9.99 a month, 35 for £13.99 and 50 for £17.99 per month. The eMusic subscribers I know say that's more than enough, and it actually encourages them to try out unknown artists, just to use up their monthly quota.

From what I hear, the figure thrown around in the Virgin Media negotiations is 40 downloads – that's three to four albums – for £10 a month. Would that be a good enough deal, in the absence of an unlimited option? It's the best offer I've heard so far.
Myxer Launches MobileStage, A Mobile Marketing Platform For The Music Industry 
by Leena Rao on December 15, 2009

Mobile content delivery company Myxer Myxer is getting into the marketing arena with the launch of MobileStage, a suite of mobile marketing services aimed towards the music industry. The suite of services includes app marketing, analytics, mobile website creation and fanlist management

Myxer says that they are aiming to create a “MySpace Music for Mobile” with MobileStage. The suite is fairly comprehensive and aims to create suite tools to artists to better expand and analyze their mobile offerings. Part of the deal is that Myxer will promote artist apps to its user base of 30 million customers via its own mobile site. Myxer already works with artists for its ring tone and mobile content business. Myxer just delivered 10 million ringtones to users and offers over 2 million free ad-supported ringtones, wallpapers and videos. Users can also make their own ringtones, videos and wallpaper from music and files a customer already owns.

MobileStage is launching with several partnerships with musicians and digital platforms, including ReverbNation, Kedar Entertainment, Amie Street, SonicBids, OurStage, INgrooves,The Orchard, Audiolife and SellaBand. MobileStage also plans to offer full-track downloads, streaming audio and video, as well as links to artist merchandise outposts, concert ticket purchase options and more in the future.

Average American Consumes 34 Gigs Of Data Per Day; Good Thing ISPs Want To Limit You To 5 Gigs/Month

from the unworkable dept

There's a new study that's making the rounds, noting that the average American consumes about 34 gigs worth of data/information each day. That number has been increasing at a pretty fast pace as well. This is, obviously, not just internet data. It includes TV, radio, mobile phones, newspapers, video games, etc. However, what struck me is that more and more of that is moving to the internet, and that seems like a trend that will continue. And, yet, we still hear stories of ISPs looking to put in place broadband caps that are as low as 5 gigs per month. Clearly, something has to give. Even Comcast's relatively generous cap of 250 gigs per month could run into trouble at some point as well.

And, indeed, this is part of what concerns me most about efforts to put in place broadband caps. As we consume more data and a growing amount of that data consumption moves to the internet, more and more people may find themselves butting up against those caps. Even though plenty of studies (and many comments from the technology -- not policy or marketing -- people at ISPs) show that ISPs can easily invest in infrastructure upgrades to keep pace with the traffic, the move to put in place broadband caps may create serious unintended consequences for broadband. They add a mental transaction cost to any kind of internet usage (you have to think if it's worth it) and limit the interest and/or ability to build newer, more powerful internet applications and services that can serve what we need.

Name: Glyde

Quick Pitch: Glyde combines the great deals of a person-to-person
online marketplace with the ease, simplicity and safety of a retail store.

Genius Idea: Glyde makes it easy to buy and cell CDs, books, DVDs or video games, without the hassle of listing fees or finding a trusted seller.
glyde-sm
Like a lot of people, I’m a big media fan. I have an ever-growing collection of DVDs and Blu (Blu)-ray discs, music CDs, books and video games. I’m always on the lookout for a good deal and also for an easy way to sell items I’ve either upgraded from (like going from DVD to Blu-ray) or that I no longer want or need.

It’s not hard to find items to buy, but as places like eBay become more like regular retail sites, the deals that you could find 10 years ago just don’t exist anymore. To get around high listing fees, more and more sellers charge really high rates for shipping, even though they just end up sending stuff by Media Mail anyway. Selling items means I have to get all the shipping stuff together to mail out an item, which can be a hassle if you aren’t a frequent seller.

This is why I like Glyde, a new marketplace that makes it super easy to buy and sell media. Think of Glyde as a listing service and an Escrow service combined into one. You can list your items for free and when the item sells, Glyde will take 10% of the sale price and the cost of the Glyde Mailer. What’s the Glyde Mailer? When you item sells, Glyde will send you a pre-stamped, pre-addressed Glyde Mailer. All you have to do is drop you item in the envelope and mail by the next day.

As soon as the buyer receives the item, money is deposited into your Glyde account. That’s a really hassle-free way of selling new or used media items.

glyde-sell

For buyers, your payment is protected until you get your item. Glyde tracks your item and sends you an e-mail upon delivery. If you are happy with your item, Glyde releases your payment to the seller. If you don’t get your item, you get a refund. If you aren’t happy with what you received, you have 48-hours to return the item.

A really interesting part of Glyde is its transaction policies. There’s always a risk when buying or selling an item that something either won’t be as it is described or that a buyer will renege after receiving their purchase. Glyde handles this by enforcing a shared responsibility approach. If you receive your item (and it isn’t suspected of being counterfeit or illegal), you can return it and be reimbursed the item cost, but you pay half of the return shipping (around $2.50). The seller pays the other half of the return shipping fee, plus the cost of the mailer ($1.00 – $1.75).

If a seller consistently gets bad feedback or items are sent back, Glyde can cancel their account. If a seller sells something that is illegal or a counterfeit, all fees are charged to the seller and they are banned from the site and authorities are contacted. I like this shared responsibility approach because it gives everyone an incentive to list items accurately and take buying an item seriously.

Overall, Glyde’s website is attractive and easy to use. I especially like how Glyde has combined an Escrow service with a listing service.

=====================================================

iPhone Streaming Radio Services Compared

Many of the major players in streaming personalized radio have developed an iPhone application since the release of the iPhone App Store. After waiting a few months to let them work out some kinks and with the release of Slacker’s app this week, i thought it would be a good time to dive in and compare some of these services.

Last.fm is my choice for best of class. Even though it lacks some of the editorial and genre stations provided by other services, it makes up for it with tag radio, recommendations and artist information. However the main reason I use it over the others is that Last.fm is directly tied to my iTunes listening (my main consumption arena) so the recommendations are the most representative of what I’m listening to day to day. 

Pandora provides some excellent programming as well and their “Quick Mix” station provides a good stream of recommendations based on other stations I have created. The simple UI and basic feature set make it super easy to use.

Slacker, the newest entry, is a slick and rich experience. The combination of editorial, genre and artist/song seeded stations provides lots of choice. the ability to fine tune each station is an excellent differentiator. The addition of artist bios and album reviews provides great non-audio discovery mechanisms. The ability to see the next song is also a very nice feature.

Deezer doesn’t have much going for it in terms of a broad feature set. The main reason I use it is something I assume is due to it’s French origin – the recommendations are similar to other services but somehow different enough – I seem to discover some interesting bands I don’t think i would encounter with the others.

Finetune’s iphone app is pretty similar to their website and desktop application. In addition to some good editorial stations (e.g. Best of 2008 genre charts) and artist radio, you can also access your own playlists. unfortunately you cant add items you hear on stations to those playlists. There isn’t much else here feature wise but again worth checking out to see if you like their recommendations.

Feature   Last.fm Pandora Slacker Deezer Finetune
Editiorial Stations      
Genre Stations  
Subgenre Stations    
Tag-based Stations      
Artist-based Stations
Song-based Stations      
Recommendations Station      
User-based Stations        
Saved Stations  
Recent Stations      
Bookmarks/Loved Songs    
Album Reviews        
Artist Bio    
Related Artists        
Events        
Listeners        
Tags        
Ads        
Skips Unlim 5/hr 6/hr Unlim 5/hr
See Next Song        
Bookmark Song    
Rate Song    
Share Song      
Tag Song        
Add to Playlist        
Buy on iTunes    
Finetune Station