=====================================================================
THE INDUSTRY STANDARD'S
B E A T S H E E T
A Weekly Report on the Convergence of Music and the Net
=====================================================================
| http://www.thestandard.com |
Tuesday, February 8, 2000
TOP STORY:
* Big Labels Try Out Online Distribution
NET NOISE:
* Songplayer.com teaches Brit hits
UPBEAT/DOWNBEAT:
* MP3.com files countersuit against RIAA
* Barnesandnoble.com launches radio station
* Listen.com gets cash from major labels and Madonna
* BMG Germany's attempt to curb piracy runs aground
SOUND OFF:
This Week's Question: Do musicians need record companies?
/=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-=\
12 Essential E-commerce Research Reports
Now Available from The Industry Standard and Odyssey
Get a detailed analysis of the e-commerce trends that
drive consumer purchases in the Internet Economy.
http://www.thestandard.com/research/store/odyssey
\=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/
TOP STORY:
~~~~~~~~~~
Big Labels Try Out Online Distribution With the AlbumDirect trial
complete, major record companies move one step closer to sending their
music out over the Net.
By Julene Snyder
With the blinding speed of a lethargic slug on a sunny day, all the
major record labels have at last taken a concrete step toward
delivering music to consumers online. The big bugaboo for the labels,
of course, is security in the digital marketplace. Apparently it's
best not to move too quickly for fear of being burned by roving bands
of nefarious college students diligently cracking code just for
twisted kicks. Slow and steady, that's the ticket.
The AlbumDirect trial, which took six months, involved just one
thousand households - primarily in San Diego. The result was called
"successful" in a low-key announcement last week. IBM, in conjunction
with music companies BMG, EMI, Sony Music, Universal and Warner, took
part in the trial, which used IBM's Electronic Music Management
System, EMMS,to control factors like when particular tracks were
available and how many copies could be downloaded. The system also
provided security for online transmissions.
The end result? "Successful execution of nearly 4,000 downloads
comprising more than 50,000 music tracks." That averages out to less
than one download per month per household, all of which had cable
modems. Hardly an overwhelming response, but respectable enough, given
the limited scope of the music available, "more than 1,000 albums and
more than 200 singles from both current and catalogue titles." Finding
out what music was offered is easier said than done, given the
cloak-and-dagger mantle drawn over the specifics of the trial.
"It's proprietary information," Universal's Bob Bernstein said flatly,
before offering to forward a quote about AlbumDirect from Universal
eLabs President Larry Kenswil, which reads: "The AlbumDirect trial was
helpful in gaining data and learning more about what consumers want
regarding digital music distribution. It is important that we learn as
much about the marketplace as possible to ensure great consumer
experiences as digital music delivery becomes more of a reality." Hmm
- sounds like someone has a fine career as a politician ahead of him.
Over at IBM, actual information was a bit more forthcoming, but only a
bit. Hundreds of people have worked on developing the EMMS technology
over the past three years. IBM Global Media & Entertainment Industry
General Manager Rick Selvage described the challenges involved with
admirable understatement: "Trying to prioritize the functionality and
the requirements based on what we believe the market will demand or
how the consumer is going to react was a little difficult."
When asked when we can expect to see this technology for ourselves, Ed
Downs, Vice President of Advanced Technologies, IBM Software Group
said, "We expect there to be some movement now ... into
commercialization of the technology and offering it to the consumer.
When that will happen will depend totally on the music labels."
So all we have to do is step back and wait for the major labels to
make their move. That will happen when? Let's have BMG's Karl Slatoff
field that one: "It is very difficult to predict how quickly the
market for music downloading will evolve," he said in an online
interview. "Over this coming year, BMG will continue to support
SDMI-compliant technologies for digitally distributing music over the
Internet. BMG's plan is to support technologies that enable us to
protect our artists' content, achieve our overall business objectives,
and provide the consumer with the highest quality experience
possible."
Translation: Don't hold your breath.
/=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-=\
LOOKING FOR A WEB DEVELOPMENT FIRM?
WE HELP YOU FIND THE PERFECT MATCH.
Introducing TheStandard.com Web Services Buyer Directory. You select
the criteria. We match you with the firms best suited to your needs.
All in Internet time. http://www.thestandard.bsource.com/
\=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/
NET NOISE:
~~~~~~~~~~
Site Review: Songplayer.com
You've just got to love the British. Not just for their schism between
upper-crust aristocracy and dole-collecting malcontents, or for their
world-renowned pub-grub accompanied by thick, black pints of
high-octane beer. Just as enchanting - and certainly more palatable -
is their truly wacky taste in music. Over at Songplayer.com, you can
learn to play the guitar or keyboards by synchronising (note
Anglicized spelling) your CD collection with their software.
Selections are charmingly diverse: ABBA, Beck, Kate Bush, Culture
Club, Elton John, Gay Dad, Iron Maiden, The Monkees, Nirvana, Prefab
Sprouts, Super Furry Animals and Vince Gill. Just pony up a few
pounds, and you're off on your new musical career built around tunes
by the Human League, Geri Halliwell and Billy Bragg. But unless you're
bloody brilliant, don't quit your day job.
-----------------------------------------------------------------------
UPBEAT:
~~~~~~~
I sue you, you sue me, making lawyers hap-hap-ee
MP3.com files countersuit against RIAA
Monday's lawsuit filed against the Recording Industry Association of
America and its president and CEO, Hilary Rosen, "an individual,"
appears to be sweeping in scope. The action includes claims of
"defamation, trade libel, interference with prospective economic
advantage and unfair business practices." There's a hint of personal
affront in the latest suit, which claims that "RIAA and Rosen, on
behalf of and in concert with the RIAA's recording industry members,
have waged a campaign to impugn and disparage MP3.com as supporting
music 'theft,' 'piracy' and other disreputable practices, and to use
these false allegations to disrupt and interfere with MP3.com's
financial and business relationships, and market capitalization."
Could be a bitter fight ahead. Read full-text of the suit here:
http://www.mp3.com/news/570.html?hparticle0
Everything to everybody
Barnesandnoble.com launches radio station
BnRadio launched at Barnesandnoble.com last week, promising visitors a
chance to listen to music while they shop the online bookstore. The
hope, of course, is that you'll toss one of the CDs you're listening
to into your virtual shopping cart. The radio station is divvied into
categories that range from "The Best of 1999" (which startlingly
includes the Ramones' "Blitzkrieg Bop) to "Audio Books" (I tuned in
just in time to hear Dr. Atkins extolling the virtues of eating lots
of meat) to "Broadway and Soundtracks" (Eeeeek - "Cats") to soothing
"New Age" ditties that one might expect to actually hear over the
speakers in a bricks-and-mortar bookstore. One problem: to listen
without constant skipping, you've got to have Windows 98 or higher if
you plan to use another application. But if you simply want to shop
with a tune tootling away in the background, you're good to go.
Whoa, whoa, listen to the big bucks
Listen.com gets cash from major labels and Madonna
The latest round of venture financing over at the online music
directory Listen.com includes influxes of funding from four of the
"big five" record labels: BMG, EMI, Universal and Warner Bros. Since
Sony invested last time around, that puts Listen.com in the position
of being sanctioned by all the major players. Two principals from
Madonna's Maverick Records also participated in the latest round of
financing. One big selling point for the majors doubtless was the
emphasis that Listen.com puts on only pointing users to music files
that have been verified as legally distributed. They'll also get
access to user statistics the company gathers regarding which genres
and bands are gathering a buzz online.
http://www.thestandard.com/article/display/0,1151,9547,00.html
Yo ho ho and a bottle of Tums
BMG Germany's attempt to curb piracy runs aground
It's high time that somebody figures out how to copy-protect CDs, but
apparently there are at least a few bugs left to be worked out over
yonder in Germany. BMG Germany, citing "rampant copying of audio CDs"
(read: rippers) started copy-protecting discs last week, selling
100,000 units before howls of complaints from consumers put a halt to
sales of the discs. It seems that consumers were finding that some
normal CD players wouldn't play the CDs at all. The technology BMG
Germany used, Cactus Data Shield, was developed by Israeli software
firm Midbar. BMG Germany quickly put a halt to sales of the
copy-protected discs and presumably resigned themselves to potential
piracy, at least for now.
SOUND OFF:
~~~~~~~~~
This Week's Question: Do musicians need record companies? If so, what
for? If not, why not?
E-mail your opinions to julene@well.com with "Sound Off" in the
subject line and we'll print a selection of the responses in next
week's newsletter. Keep them short and include your name and
affiliation, if any.
Last Week's Question: Once you buy a CD, should you have the right to
listen to it in any medium you wish without paying additional fees to
the artist or label?
"Once a consumer has already paid the hyper-inflated retail price of a
CD, free listening rights on the Web are a value-add that's painless
to the label and substantial to the listener. Most other types of
content sites are beginning to recognize the power of "free," and the
labels had better wise up or be prepared for backlash."
- Stephanie Wiggins
Research Associate, Girl Games, Inc.
"You've stacked the deck in the form of your question. Companies such
as MP3.com have no right to catalog audio samples in any form without
the consent and/or payment to the publisher. Creative talent must be
properly compensated for their work. In most cases they've spent years
in poverty to develop their 'art.'"
- Brad Kaiser
CEO, Via Sacra Entertainment
"Music piracy is a multibillion dollar criminal industry. The people
who do it think it is OK, just like pimps and crack dealers think
their profession is cool, too. You don't really buy a CD, you are
granted a license to listen to a copy. Sound crazy? Try renting or
sharing "copies" of your favorite CD-ROM video games or other
software, and you'll get slapped with a billion dollar lawsuit."
- Cyrus Sullivan
Musician
"Hell yes. As long as I am not redistributing the material I'm still
within my original 'license' rights ... Personally, I *buy* more music
because of MP3's. I go to places like Epitonic.com and UBL to listen
to tracks off albums I'm considering buying. I'm more than willing to
admit I'm in the minority, but if labels started to take more steps to
get folks to 'try then buy' they'd be increasing their own sales.
Isn't that what they're trying to do in the first place?"
- Boon Sheridan
Staff Writer, Pop Culture Press Magazine
STAFF
~~~~~
Written by Julene Snyder. Send newstips and press releases to
julene@well.com.
GET THE MAGAZINE
~~~~~~~~~~~~~~~~
4 RISK-FREE issues at this URL:
http://www.thestandard.com/account/magazine
GET MORE NEWSLETTERS
~~~~~~~~~~~~~~~~~~~~
The Industry Standard newsletters cover the media, stock market,
e-commerce, music, law and more. Enter your e-mail address at the
following URL and select the newsletters you wish to receive:
http://www.thestandard.com/newsletters/
To UNSUBSCRIBE to any newsletters, log in at the following URL and
select the newsletters you wish to cancel:
http://www.thestandard.com/account/newsletters/unsubscribe
GET MORE NEWS
~~~~~~~~~~~~~
Go to http://www.thestandard.com for more coverage on the Internet
Economy. For technology news, go to our parent company's site at
http://www.idg.net.
ADVERTISING INFORMATION
~~~~~~~~~~~~~~~~~~~~~~~
For more information on advertising in The Industry Standard
Newsletters, contact Sacha Lien, Online Account Manager
mailto:sachal@thestandard.com
FEEDBACK AND PROBLEMS
~~~~~~~~~~~~~~~~~~~~~
Send letters to the editor at letters@thestandard.com.
Please contact us with any problems that arise.
Send e-mail to: customerservice@thestandard.com?subj
ect=Online Newsletters.
You can also contact us via phone or mail:
The Industry Standard, Customer Service
(402) 293-0386 (phone)
(402) 293-0794 (fax)
The Industry Standard, Production
315 Pacific Ave.
San Francisco, CA 94111
(415) 733-5400 (main)
(415) 733-5401 (fax)
Copyright 2000 The Industry Standard |