Digital Round Up: Grooveshark legal spat takes interesting turns; Will Vevo swap YouTube for Facebook?; Megaupload action & more
If you’ve been following the story of Grooveshark’s most recent legal fray with major labels, spearheaded by Universal Music Group, you know that the federal lawsuit charges that executives at the digital music company personally uploaded illegal content. In an odd twist to the case, an incriminating anonymous post on Digital Music News from a supposed employee, lead to Grooveshark’s parent company serving the industry blog with a subpoena last weekend, which DMN responded to today. And in the midst of all the activity surrounding the lawsuits, Grooveshark released a new iPhone app this week, and also pulled the plug on its service in Germany citing too high of licensing costs from GEMA… Elsewhere this week, Ticketmaster launched its new robust Facbook app, which allows fans to see what shows or events their friends are attending as well as buy tickets within the Facebook platform, among a number of other social aspects, and it also features an integration with Spotify… Other Facebook news includes reports that major label-backed video site Vevo has been in talks with Facebook about moving the service over to the social network’s platform upon the conclusion of its current deal with Google-owned Youtube. Such a deal would be a considerable boon for Facebook’s music component, and while Vevo has grown to the second largest online video destination, its quick rise to popularity did come on the back of Youtube’s dominant position as the #1 online video destination… The bizarre saga of Megaupload (remember the song and promotional video featuring Will.i.am and other celebrities that was pulled offline recently?) may be coming to a close with major federal action being taken against the internet ‘locker’ service and its executives yesterday. The arrests and seizures were followed by retaliations from Anonymous hackers who targeted multiple websites including those of the DOJ, MPAA, Universal Music Group and others… Meanwhile, an interview this week on Fast Company tries to pin-down Slacker Radio’s CEO Jim Cady on the hotly-debated issue of whether or not streaming-music rates create a sustainable source of income for artists.
YouTube & record labels engaged in renewal talks
According to an article by Greg Sandoval on CNET this morning, Universal Music, Sony Music and EMI are all in the process of negotiating renewed licenses with YouTube, while Warner Music, whose relationship with the Google-owned video site has been particularly tenuous in previous years, is noticeably not mentioned. According to the piece, deals are close at hand, with the labels focused on increased anti-piracy measures by the site, as well of course, as larger licensing fees. It appears at least one of the three label groups may have already reached a new agreement with Youtube.
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Digital Round Up: Google Music launches
Just about one year after Google had originally planned to unveil Google Music, a service that spent much of the last two years changing in concept and approach, and of course engaging in numerous negotiations with record labels, the (almost) fully-fledged music service was revealed yesterday. Three of the four (soon to be two of the three) major labels are onboard, with music available from Universal, Sony and EMI, while Warner Music is expected to be joining sometime soon. So how does it work? Basically it’s similar to how Google Music Beta worked, with a locker where users can upload up to 20,000 songs for free, regardless of where they originated, but now Google has its own digital music store tied to the Android market as well, where users can purchase music that automatically goes to their lockers. There’s also a tie-up with T-Mobile that allows customers of the carrier to download music and have it included with their monthly billing. And that “twist,” which was teased recently, is indeed a sharing feature. Users can share songs or albums with anyone on Google+, who can then listen to the song or album once in its entirety for free. Additionally there is an Artist Hub feature, a much more interesting twist for independent artists, who can create their own page within the Google Music marketplace, and sell directly to customers without a middleman and collect their 70% cut of each sale… Much of the discussion following the release of the new service has been approached in the Google Music vs. iTunes manner – Apple finally launched iTunes Match last week with less fanfare – but as some observers are astutely pointing out, it isn’t about an iTunes-killer for Google, at least not right now. There are differences – Apple has the ’scan and match’ feature which bypasses the lengthy upload process, but Google Music offers almost the same amount of cloud storage for free – Apple has almost a decade-long head start, but Google is putting links into YouTube music videos that go directly to the song in their music store. But what’s important to each user varies, and more importantly it has to do with what kind of device someone owns. Android-based smartphones hold over 50% of the market currently, and what Google really did, is fill the huge mobile music void on the platform… And when it comes to how all the new subscription music players fit in with the overall discourse, as Evolver.fm points out, they’re two different animals all together. The Spotify’s, MOG’s, Rdio’s, etc of the world put a plethora of music at your fingertips, but they don’t allow users to ‘own’ their music, which is still a problem for many people. However, they’re great discovery or sampling tools, because you don’t have to commit to buying something (or heading to the torrents) before being able to make it accessible across multiple devices. Will something new that is the best of both worlds come along? Time will tell.
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Digital Round Up: New Google Music plans revealed, Rhapsody stands up to Spotify & more…
Going beyond beta
Back as a hot topic in the music + tech arena this week is Google Music, which follows the company’s halfhearted initial step into the cloud-music sector earlier this year with Music Beta. Now it appears that Google will be launching a digital music store in the coming weeks, but with a “twist,” as it is being reported, following Android chief Andy Rubin’s appearance at the AsiaD conference this week. Cnet reports that the twist will likely be social features, which will enable sharing capabilities among users – social enhancements are being touted as a big driver behind Spotify and similar services recent rapid growth. According to multiple reports, the only major label close to an agreement with Google right now for the new music service is EMI, while a number of independent labels are apparently already onboard. Other bits concerning the new Google Music talk include whether or not it will have a ‘mirroring’ component or ’scan and match’ that finds music already on a users’ computer – a feature that Apple’s upcoming new iCloud music offering will feature. Or as noted by Evolver.fm – if Google follows up their digital store by offering their own streaming-music subscription service, it could achieve the same outcome. Currently users of Music Beta have to upload their music to Google’s cloud-based music locker. While seemingly late to the game in all this, some observers are noting what a huge advantage and launching pad Google-owned YouTube will be for any new music service they bring, as the video site continues to reign as the largest free music site around… Following the recent acquisition of Napster, veteran music-subscription service Rhapsody continues on the publicity trail, with executives recently interviewed by Business Insider among others and speaking at this week’s CMJ Music Marathon conference. The biggest question has been about sustainability and relevance in light of all the new similar services, mainly Spotify, and how they plan to compete. But Rhapsody maintains that their business is healthy, they received a boost from all the press surrounding the aforementioned European startup’s launch in the U.S., and with the new Napster customer-base and planned wireless and cable provider deals, they’re doing just fine, and without a free offering to entice new users, for now… And how much of all the optimistic talk surrounding the bourgeoning on-demand and streaming music territory is hype vs. substance? A new report from the NPD Group, studying music listening habits, does show that in America at least, newer ways of accessing music are gaining real ground on traditional radio and CD listeners, with possibly the most revelatory statement being that “a tipping point is approaching when vehicles and portable devices move from a tethered connection to a more integrated one” – read more in the press release… In other quick items… Pandora has named its first chief marketing office in Simon Fleming-Wood… New music service Beyond Oblivion Inc., also known as Boinc and partially owned by News Corp., is reportedly close to finalizing licensing agreements with the four major label groups… Jimmy Iovine isn’t the only Universal Music exec with a penchant for high-end audio, as music industry veteran and co-CEO of Sanctuary 5B Artist Management, Carl Stubner, has been named to the advisory board of high-definition audio company Max Sound… And the popular music curating and aggregating site The Hype Machine has reached 1 million users.
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More Bits & Pieces: Warner Music gets new CEO, Blackberry Messenger music?, new Spotify numbers & more…
'chairman of the bored'
Today came the announcement that Edgar Bronfman Jr. will be exiting his role as CEO of Warner Music, a post he has held since 2004. He’ll remain on as chairman of the board at Warner Music Group, while Stephen Cooper will take up the reins as new CEO. Cooper’s track record, primarily as an interim CEO with a focus on turning around troubled companies, includes stints at Metro-Goldwyn-Mayer, Krispy Kreme Doughnuts and Enron, among others. It’s expected that Bronfman’s focus will transition to the current bid for EMI Group, continuing his long-desired goal of combining the two companies. If merger efforts fail, his continued involvement at Warners is questionable… Research In Motion is reportedly working on a new music service that will utilize the popular BlackBerry Messenger service, with some major labels supposedly already onboard, though it’s unclear exactly which ones. The service as it’s being described, though not by RIM, would be far from robust, but it’s being characterized as possible positive note for the struggling smartphone maker… A legal fray that has the Village People’s original lead-singer attempting to regain copyright control over his share of a number of works including “Y.M.C.A.” may prove to be telling in the coming battle over “termination rights,” that will pit many big-name artists against labels – a storyline that hit the mainstream media this week… Music and imagery from The Beatles are featured in a new anti-piracy video as a part of the UK-based Why Music Matters campaign. There’s a bit of irony here, as pointed out by Peter Kafka on AllThingsD, in that the Fab-Four’s music is still only (legally) accessible digitally in one place, that being iTunes, where it was first made exclusively available 10 months ago. With a plethora of other new digital music services out there, one can wonder how long it will be before the group’s music will be more widely available… Elsewhere, Music Ally has obtained a report that provides insight into Spotify’s subscriber numbers, particularly for the period following new restrictions on free accounts that were in acted earlier this year. Get the details HERE, but essentially with the changes, the number of free user accounts dropped by over 1.5 million, while the paying user base increased by roughly 1/3 of that amount. The conversion of users from free to paying isn’t insignificant, and that’s good news for Spotify, who has to pay royatlies regardless of whether a user pays for the service or not, but losing over 1 million potential listeners is not exactly good news for artists… And a group music publishers who joined a class-action lawsuit against YouTube-owner Google in 2007, came to a settlement this week, a resolution that in part will see pubcos given the opportunity to enter into a licensing agreement to receive royalties for musical works included in videos on the site. According to at least one person familiar with the situation, artists should expect to start receiving accounting for YouTube royalties from publishers right around the time they start receiving it from the record labels.
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Wednesday Bits & Pieces: Is it Already the End of Digital Music or Just a New Beginning? More UMG-Sony Music Red Rover & more…
Which way is the river flowing?
Over the weekend The New York Times published what has become an annual gloom and doom report regarding the state of music sales, using the International Federation of the Phonographic Industry’s report as the guidepost. In addition to the continued slump in physical, the recap for 2010 concentrated on the plateauing of digital sales and “not a lot of progress” in digital after a decade. However as Evolver.fm points out, the piece focused heavily on the slowing at marketplaces like iTunes and Amazon, while paying less attention to revenue generated from newer services like Pandora, Spotify, YouTube, etc – which is not the same as digital sales. The IFPI’s report contains various points of optimism, like in the growth of mobile access to subscription services due to new technology and compatibility improvements, as well as the significant expansion in the customers of new “freemium” services… Elsewhere, a Financial Times piece this week adds to the growing reports of Doug Morris seeking an early exit from his contract with Universal Music Group owner Vivendi, although it’s still unclear if he will get released in time for a presumed takeover for Sony Music CEO Rolf Schmidt-Holtz, whose contract is up at the end of March. More red rover continues between UMG and Sony, as Lucian Grainge taps former Sony A&R executive Larry Jackson as EVP of the IGA family of labels…. Meanwhile Guy Hands reportedly will get a last chance to hang on to EMI Music, as Citigroup asks the Terra Firma boss to make an offer to keep control of the music company, which is thought to be valued around £1.6 billion.
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Should the Industry Be More Gaga For YouTube?
Joe Fleischer
Which is a bigger gauge of Lady Gaga’s success, 15-million albums sold or 1-billion YouTube views? That’s the question posed in a piece on Fast Company yesterday, with BigChampagne’s Joe Fleischer commenting, “When you look at Lady Gaga hitting a billion views, I think that’s a very positive wake-up call for the industry–that we need to think about the metrics of success differently,” – BigChampagne’s newly minted Ultimate Chart was recently tapped as this year’s source for American Music Awards nominees. Read the full article HERE…
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In Case You Missed It: Vevo – MTV Standoff Continues, Imeem & MOG Founders on Startups & Spotify’s Ballsy Play…
Web TV Means Opportunity for Music
News, commentary and opinions in the tech + music arena were particularly plentiful this week, with many of the current players making headlines… Vevo and MTV are still at an impasse for a deal that would allow the former to sell ads on the latter’s properties and target their viewers, a scenario that MTV is not comfortable with. While publicity battling over who has the #1 spot in views has become common, the heart of the matter is that Vevo continues to capture the majority of the online music video market, with deals in place with all the major labels except Warner Music Group, but its sights are set on bigger targets in the form of deals like the recent Google TV partnership. AdAge has more on the standoff… And television increasing looks likes the next platform to conquer for digital music, with set-top boxes growing in availability and increased features, mainly apps. As smartphones multiply and the user base for those who get their music delivered via web and mobile apps increases, TV is quickly becoming a big part of the equation. More on why this is at Evolver.fm… The founder of the now deceased Imeem, Dalton Caldwell, gave some cautionary words to those looking to enter the music startup world this week, pointing to the difficulty to innovate in the current landscape… Though MOG CEO and founder David Hyman, was quick to share his opposing opinion via TechCrunch, saying, “digital music seems to be a game that every 20-something wants to try and play, and it’s almost as if creating a digital music product is a rite of passage for millions of young buck programmers. It’s unfortunate that because it’s a sexy space, and because there are tons of entrants into the field, all of the noise creates an impression that winning can’t be done. It certainly can”... [Update: Rhapsody weighs in on opportunity for music startups via SAI]… Former young buck behind Napster, Sean Parker, is feeling confident about Spotify in spite of continued roadblocks in the U.S., saying of the company’s model, which is creating most of the hesitation from labels in the states, “You have no choice. We’ve got you by the balls, you’ll have to become a subscriber.” Parker, who was speaking at a DailyBeast event, also claimed a launch of the service in the states will still happen before the year ends … Elsewhere, Google has launched its music service… In India… Viacom has tapped a new big gun lawyer to lead its next round in court against YouTube… The L.A. Times catches up with Tim Westergren on what’s next for Pandora… And Chamillionaire schools tech entrepreneurs and talks to ThisWeekIn…
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Thursday Bits & Pieces: Idol’s New Judge, EMI Earnings, YouTube’s Program Partners & more…
Chris Anderson: The Web is Dead. Long Live the Internet
The breaking American Idol news of the day, is that it appears Aerosmith’s Steven Tyler will be taking a spot as a new judge on the show, as was much rumored over the previous weeks. Now attention turns to the the expected announcement of a new third judge… EMI Group released its new annual report this week, and while it boasts of improved losses and improved performance, overall “considerable financial challenges” are still being faced. Both publishing and recorded music divisions reported year on year growth in revenue, and though digital numbers weren’t specifically provided, the report did indicate that their projections for digital earnings were too high, and that they and all labels are too dependent on a limited number of online music stores, read: iTunes… New YouTube data is being thrown around and it has the site logging over 3 billion monetizable video views a month from its top program partners, with the most views being generated by a few major publishers. Overall data from the report reveals that views from YouTube’s top 2,500 partners are increasing each month by over 6% with 72.1 billion views already generated… Elsewhere, Paul McGuinness provides GQ readers with his solution for saving the music industry while calling bloggers “anonymous gremlins”… Digital Music News lists their picks for the 10 Most Disastrous Music Industry Deals… And Chris Anderson, known by most as the Longtail Theory guy, has a new essay title The Web is Dead. Long Live the Internet…
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Wednesday Bits & Pieces – Legal Edition: Viacom’s Appeal, Lime Wire, Grooveshark & More…
VIA v. GOOG
The drawn out legal fight between Viacom and Google, over YouTube copyright issues, has reached its next phase as Viacom has filed an appeal in federal court today. This comes after last month’s comments from Veoh that the outcome of their legal skirmish with Universal Music Group could foreshadow the events of Viacom’s appeal… Lime Wire has filed a request for a jury trial in the lawsuit filed by by members of the National Music Publisher’s Association back in June… Merlin and Grooveshark have settled their legal scrap, and in doing so the online music service has licensed catalogs from Merlin’s indie record label members. Grooveshark settled a similar lawsuit brought by EMI last year… And song parody and viral video sensation “Newport State of Mind” has been yanked from YouTube via a taken-down notice from EMI Music Publishing at the behest of the seven writers of the song “Empire State of Mind”…
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