Tag Archive for 'Digital Music News'

Amazon Makes A Big Move with MP3s

Published on January 29, 2008 in Blog. 0 Comments Tags: , , , , , , , , , , , , .

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.

CD Sales Continue to Meltdown

Published on January 22, 2008 in Blog. 0 Comments Tags: , , , , , , , .

Spotted on: Digital Music News

According to this daily industry bulletin, there was a 21% drop in music sales between Thanksgiving and Christmas.? This is traditionally the hottest time of the year for music sales.? This is on top of a 15% drop in sales for the year of 2007.

Bottom Line: Given plummeting sales and the major restructuring going on at EMI, 2008 may be the year where we see a major shift in how major labels operate.

XM + Sirius = Bad News

Published on December 3, 2007 in Blog. 1 Comment Tags: , , , , , , , , , , .

Spotted on: Digital Music News

The XM-Sirius Satellite merger is imminent. Insiders are saying the Department of Justice will approve (and probably this week), followed by the FCC. It doesn’t take a rocket scientist to figure out the competitive advantage here: Consolidate the satellite radio waves completely.

Clear Channel is railing against the “peril” of this merger: “[T]he filing concludes by suggesting that if the FCC approves an XM/Sirius merger, it should also allow Clear Channel to expand beyond its current ownership…of radio stations”.

I want to share a quote with you: “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony [. . . ]“ That’s the Sherman Anti Trust Act.

I wan unable to find any information that this act has been repealed. Will an XM-Sirius merger monopolize any part of trade or commerce? If so, it’s illegal.

A perfect storm is brewing. XM and Sirius merge, Clear Channel sucks up even more radio stations to be competitive. With only be two companies left serving radio, will this have an affect on advertising and play lists? Will it lead to further erosion of net radio?

You can see a timeline of the FCC filing history here.
Here’s the DOJ’s Antitrust page. No mention of this merger (yet).
My favorite article: Merger Enforcement Is Alive and Well at the Department of Justice

The Bottom Line: An XM-Sirius merger is a monopoly. If Clear Channel is allowed to expand, then there will be only two companies controlling almost all of the airwaves. Whatever happened to diversity?

In Rainbows Shows People Buy Music, Even If It’s Free

Published on November 6, 2007 in Blog. 2 Comments Tags: , , , , , , , , .

Spotted on: Digital Music News

Digital Music News bills itself as “the news and information authority for music industry and technology executives. Our readership is a … digital music executive audience representing … traditional labels, music subscription and download stores, online music stores, digital radio companies, P2P applications, legal services, portable mp3 player manufacturers, and micropayment firms, just to name a few”

So far, approximately 38% of fans have bought the new Radiohead album In Rainbows. Considering that Radiohead reaps 100% of the profits, they’re probably making more than they did before.

“According to the data, 17 percent [of fans] paid an average of $4 for the album, while 12 percent paid between $8 and $12…Radiohead sold well past one million units on the album.” If the numbers above are accurate reflections of what people are paying, the total rake for this album so far is a significant amount of money. And in short span of time.

“The result deflates the excitement surrounding the effort, heralded by many as a groundbreaking model. It also challenges the levels of loyalty that established bands can expect from longtime fans.” How does this deflate the model? If a million people buy an album they can get for free, doesn’t that show there’s still a demand? Apparently even when music is totally free people still choose to buy it. The only group of people disenfranchised by this development are major labels, who will be forced to abandon almost all artist development and marketing models in the face of this trend.

“Elsewhere, large numbers of fans continue to grab the album outside of the Radiohead website on free file-sharing networks, another unexpected development.” Unexpected? How can anyone who follows the current industry trends see file sharing as an unexpected development?

Kudos to Alexandra Osorio on having a detailed breakdown of the sales of In Rainbows. As far as the analysis goes, its obvious who their readership is when they call file sharing of In Rainbows unexpected.

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