Tag Archive for 'Digital Distribution'

Amazon Makes A Big Move with MP3s

Spotted on: Digital Music News

Mega online retailer Amazon is preparing to offer their MP3s in every language.? The company cites an overwhelming demand from customers for their DRM-free music downloads (which includes titale from all of the major labels).

Given the size and power Amazon carries on the internet, they are poised to set a new precedent for selling music digitally.? The largest online retailer of music by far is iTunes, and it will be interesting to see how Amazon’s shift to DRM-free music changes the playing field.

Bottom Line: Amazon offering their MP3 catalog worldwide will shift the landscape and methodology of digital music sales.

Controlling the Internet

Spotted on: Digital Music News / ArsTechnica ?

As if throttling Bit Torrent, blocking access to sites like AllofMP3.com and PirateBay, and endless industry litigation aren’t eroding net neutrality enough, the IFPI is taking it a step further.? The IFPI is an international version of the RIAA, and the recently sent a memo to the European Union about file sharing.

The IFPI wants to see Europe’s internet monitored, managed, and controlled.? They are presenting a “complete solution to piracy”.? This three step process looks something like this:

1.? Scan the entire internet for audio files, and block files that don’t match up to a database of music.? This practice is called content filtering.? Although it seems benign, the practice of monitoring the entire internet is a slippery slope toward full scale surveillance.? Aside from harming commerce and academic research, having a huge government database of people’s web activity can be used for more malicious purposes then chasing down people who are illegally downloading music.

2.? Blocking peer to peer protocols.? A protocol is a standard for connecting and sharing data, and p2p networks have their own protocol.? If ISPs systematically ferret out and block these protocols, academics and businesses won’t be able to share large files, either.

3.? Blocking websites that offer illegal content.? Although the practice of blocking sites that offer pirated music is a method of controlling the practice, it is a legal precedent that governments can block web sites.? The power of the internet is its freedom, and blocking sites is a step toward censoring that freedom.? Once governments are free to block one kind of website, where will they draw the line?
Consider that a corporation is lobbying a government to restrict and monitor the internet airwaves.? If the IFPA has their way, they are setting the stage for full scale internet controls and censorship. While the intention of protecting their corporate interests isn’t truly malicious, the methods they suggest pave the way for an internet that is no longer open and free.
Bottom Line:? Setting a precedent for government control of the internet is a precursor to full scale internet censorship.? Considering the human tendency to use any means at our disposal, creating this kind of monitoring and control apparatus is a disturbing action for personal liberty.

Throttling Bit Torrent:

Spotted on: Half Life Source

Bit Torrent throttling is becoming a real issue. Although it has not yet seen much mainstream attention, controlling users access to internet bandwidth is a disturbing precedent to flow of free information. Seemingly an effort to control the illegal sharing of files, the impact of throttling can be far reaching.

Somewhere around a third of all web traffic is Bit Torrent File Sharing. Keep in mind that a significant amount of Bit Torrent traffic is legitimate, such as file backups for large companies, or as a tool for academic research. A neurocognitive scientist posted on the DSLReports forum how bandwidth throttling is hindering scientific research in a field where leading researchers live great distances from each other. In other words, limiting people’s ability to use their internet waves affects more than porn and Britney Spears.

People transferring large files across the internet can affect other uses online experience negatvely. However, if the uses are legal (and more and more users of Bit Torrent are using it for legal purposes), what legal right do ISPs have to limit our uses of their service? As Slashdot elegantly posed the question in February, “Do they want to irritate their BitTorrent-using contingent, or let BitTorrent flow unhindered at the risk degrading the experience of those who don’t download torrents?’”

Comcast, the # 2 internet provider in the United States, is being served a class action suit for limiting the bandwidth of Bit Torrent users. The suit alleges that it is a breach of contract for a user’s bandwidth to be limited. “The filing asserts that Hart upgraded his internet service to Comcast’s high-speed internet… package in September 2007 to gain faster speeds specifically for the blocked applications in question. In the subscriber agreement… none of the terms stated that Comcast would impede or limit the blocked applications.” (quoted from the Half Life Source article).

According to the The Consumerist, A recent internal ComCast memo gave call senter emplyees a strict script to deliver if customers had questions. Any employee who says anything not in the script would be subject to immediate termination. Adding oddness to the issue is a recent MSNBC article that shows tests confirm the throttling is happening.

Recently, a major Canadian ISP admitted they have been throttling Bit Torrent traffic for months, even going as far as to refuse service to users that consume large amount of bandwidth. An analysis on Bell Sympatico’s tactics can be seen on p2pnet.net.

The CEO of Bit Torrent, Ashwin Navin, said in an interview that throttling is “a symptom of a larger problem”.

Net Neutrality – Not just a fancy term

Network neutrality “…refers to a principle that is applied to residential broadband networks, and potentially to all networks. Precise definitions vary, but a broadband network free of restrictions on the kinds of equipment that may be attached and the modes of communication allowed…” (quoted from Wikipedia).

Simply put, once companies can set limits on our ability to use the internet, where will it stop? Once the door cracks open, how do we close it?

I can sympathize with broadband companies that are concerned with Bit Torrent users sucking up all their bandwidth. It can get quite expensive to have to conitnually upgrade internet servers to meet capacity. The same thing happens in grocery stores when they have to open another checkout line. In capitalism, we often refer to this as “the cost of doing business”.

Bottom Line: Bit Torrent is the biggest single use of internet traffic. ISPs can save lots of money by throttling our use of bandwidth, or charging us if we pass monthly limits. To do so based on what we are doing violates network neutrality, and sets a precedent for controlling the internet.

The Major Record Labels are Collapsing

Spotted on: BoingBoing

The original article was in TheWeekDaily.com

I suggest you read the whole article yourself.? Here are a few of my favorite quotes, along with a bit of snappy patter:
“Ringtones, in fact, are now the fastest-growing source of music-industry revenue. “I find myself, when I’m signing a record deal now, asking, ‘Can this sell as a ringtone?’” said Steve Rifkind, president of SRC, a label affiliated with Universal.” - I’ll know I’ve made it when I’m #1 on Nokias…

“…seven years ago—an album would have to sell about 500,000 copies to reach No. 1. But Johnny Cash’s posthumous release last June reached the top of the Billboard charts after selling only 88,000 copies.” - The business model of major labels fails under these conditions.? Great news for indie labels though.

“The industry seems to have devoted most of its energy to largely futile efforts to prevent illegal downloading…big companies hunting and suing single moms and students has been a public-relations disaster. ”? - Is there anyone who doesn’t see this?

“The record industry has to find new ways of making money that do not depend on selling CDs for $16 apiece…the companies are devoting more resources to parts of the business that just a few years ago were mere afterthoughts or that didn’t even exist… some record-industry visionaries say the future won’t have much to do with making physical “records” at all.”? -? They knew all this ten years ago.

With every passing day, we see the continuing deterioration of the old guard.? The question becomes:? How will musicians make a living in the post major label environment?

Why Are Radiohead’s Sales Figures So Important?

Spotted on: TechConsumer

This has been all over the internet this morning. I was forwarded the link above, so TechConsumer gets the nod. Here’s the official statement from Radiohead regarding the recent sales reporting of In Rainbows, first reported by comScore Inc.

Let’s look at it from a different angle.

Consider that no one but the band’s organization has accurate sales totals, and they are not required to release those figures. While comScore may have a powerful system to approximate results, it’s still speculation. Fans don’t care how many albums the band sells, they’re buying it for the music. So why is the industry racing to release information that the ‘experiment’ is a ‘failure’, and why is the media scrambling to report sales totals for In Rainbows?

If In Rainbows proves to be a success (and I predict the band will make more money for themselves then they did on Kid A), then platinum artists don’t need major labels to promote them anymore. Major labels are scrambling to show the experiment doesn’t work to protect their interests. Their marketing machine propelled Radiohead to the spotlight, and now the band can generate media frenzy on their own. If this works for Radiohead, it can work for all artists with millions of loyal fans.

Thanks to the overwhelm of media coverage on the album, Radiohead doesn’t need to spend a penny on promotion if they choose. Once an artist reaches iconic status, they need no entity to propel their career, as long as the music is quality (and the reviews of In Rainbows are glowing). This kind of free publicity eliminates the need for huge marketing pushes. Without multi-platinum artists to buffer the bottom line, major labels are nothing more than upper-tier indie labels with massive back catalogs. Thus, the need to publicly show that the method doesn’t work. The reporting of In Rainbows isn’t about album sales or revenue, it’s about keeping mega-stars on major label rosters.

This story does not represent a shift in the music industry, it represents a shift for mega-artists. Once an artist has broken into international stardom, they no longer need the promotional muscle of major labels. The echo chamber of media almost guarantees releases from superstar artists will be plastered all over media outlets, with the hopes of generating readers, viewers, or web hits. The major label business model does not account for artists leaving the label after they are mega-stars. That’s where the major labels became major in the first place.

However, In Rainbows has little or no effect on the rest of the industry, as there are not many bands that can be compared to Radiohead in terms of success. For the 95% of artists that have not had a decade of major label development and promotion, Saul Williams‘ new release (produced by Trent Reznor) is the one to watch. Released with an option to buy or download at a lower bit rate, his sales figures are a measure of what is available for a mid level artist using this tactic. Of course, Saul Williams’ Q Score is much lower than Radiohead’s, so we haven’t heard much about this.

The story here isn’t Radiohead’s actions around In Rainbows, but rather the power they have to cause huge ripples in public conversation without the major label that broke them. Regardless of the amount of money made, In Rainbows shows that superstar acts can release an independent album and maintain their media spotlight.

The sales figures are a red herring for the real issue: Major labels have lost their ability to be the only avenue for mega-artists success, and these artists represent a huge part of their revenue.




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