Motorola Acquires Online Music Store Soundbuzz

Motorola has acquired Singapore based music downloads site Soundbuzz.

Soundbuzz offers online music purchases throughout the South East Asia and Oceania region and currently has partnerships with Hutchison 3, Motorola, Airtel, SingTel, M1, Optus Zoo, Telstra/ BigPond Music, Microsoft (Windows Media Player 10), Creative Technology and Sony BMG. Downloads from the Soundbuzz retail store sell in Australia for $1.69 AUD ($1.47) per single.

Motorola said it would use Soundbuzz to expland its MOTOMUSIC service into India, Southeast Asia, Australia and New Zealand.

The terms of the acquisition were not disclosed.

One word of warning though, if you do wish to check out Soundbuzz, don’t try it with anything other than Internet Explorer

Link to TechCrunch Article

Sony Ericsson Plans Music Store, Pushes DRM-Free Options

Sony Ericsson recently announced plans to deliver a broader music store offering, a move that closely follows entrances from both Nokia and Vodafone in the UK. Sony Ericsson is not planning its release until the spring of next year, according to information disclosed Monday. The mobile music heavyweight will offer a total of five million songs, licensed from major labels and various independents. Sony Ericsson also noted that a "majority" of its store will feature DRM-free content, though obvious licensing issues remain.

The store represents a broadening of PlayNow, an initiative that currently offers ringtones, themes, wallpapers, games, and a limited selection of full-track, over-the-air (OTA) downloads. The upcoming store will be multi-platform, a more common approach to mobile music commerce. Currently, PlayNow is planted in 32 countries, according to the company. The stepped-up, "PlayNow Arena" represents the next phase of the vision, which first started in 2004 as a ringtone-focused preview and purchasing concept.

Link to Digital Music News Article

SpiralFrog: Free Music Alive And Hopping

Remember SpiralFrog that free music download service that announced itself nearly a year ago? Well, after slowly releasing invites to Canadians, we received a private beta invitation.

SpiralFrog originally made a splash when they sealed a deal with Universal BMG to give away free downloads of some of their songs in exchange for a share of on-site ad revenue. Later they closed a deal with EMI and have since added a bunch of smaller labels totaling over 700,000 songs. However, now we know a little more about how their free system works.

Songs on SpiralFrog are not ad-supported through interstitial advertising or free in the sense that you can bring them anywhere. Instead, you get DRMed songs (WMA) leased to you for a free 30 day membership (or you can buy on Amazon). You can renew your membership, and the lease to play your songs, by answering survey questions (# concerts per year, how you discover music, etc). All that data helps SpiralFrog know what kind of ads to serve on the site.

To keep the whole system secure, they’ve locked down the download process end to end DRM controls. First you have to get a download manager, and then ensure you have Windows Media Player 9.0 or up. The system is kind of annoying and only works on Windows machines since it uses Microsoft DRM. Although, Microsoft DRM has already been cracked. The DRM requirement also means the songs only play through Windows Media Player, making them unportable. Unlike other DRM setups, though, there doesn’t appear to be a limit to the number of computers you can download to as long as you set SpiralFrog up on them.

Once the system is in place, you can search for artists and download their songs/videos individually. The songs are queued in a download manager and stored locally by artist and album in your SpiralFrog folder. The system seems to have intentionally been crippled so you view more advertising, with downloads happening one at a time and only while on the site. Using the site, I was able to download a bunch of songs and play them with no problem, but other early beta user have had trouble.

I don’t know if SpiralFrog will be able to sustain their business off of on-site advertising and affiliate music sales. A lot of other services are simply going DRM free, not download free. Blogmusik also recently went legit in France, but the US courts and music industry are a lot harder to sway. However, limiting the lease time on the songs means they can continuously tweak what hoops their users need to hop through to keep playing the music they download. For now it may be a simple option if you want a (legal) source of free tunes.

Link to TechCrunch Article

Surprise! (Not.) Amazon Readying Music Service Launch

JEFF BEZOS' AMAZON.COM COULD DANCE to its own tune this month with a music service that targets consumers with advertisements and marketing messages similar to its book store and video download service.

The largest online store has tentatively set a mid-September date to launch the service, according to the New York Post, citing sources familiar with the project. Amazon did not return calls prior to publication, but rather sent an e-mail calling attention to a press release distributed in May.

The release states that Amazon would take the wraps off a music store later this year, offering millions of songs from more than 12,000 music labels in an MP3 format. The Seattle online retailer intends to free the music from copy restrictions known as digital rights management (DRM) by allowing consumers to download and transfer music limitlessly among Apple's iPod, SanDisk's Sansa and other MP3 players.

Amazon has long hinted at rolling out a digital download service that rivals Apple's iTunes Music Store, which accounts for 80% of the digital music sold. Not surprisingly, plenty of influential backers in the music industry who want to spur healthy competition among online digital music services show their support by running advertising and marketing campaigns on the site.

Sony BMG Music Entertainment's Columbia Records on Tuesday plans to premiere Bruce Springsteen's music video, "Radio Nowhere," at Amazon.com. The agreement promotes the first song released on the New Jersey rocker's upcoming album "Magic," the first album produced with the E Street Band since 2002.

Analysts are mixed in their opinions on whether Amazon has the technology and advertising model to make an online digital music store profitable. The retailer has developed links and click-through ads similar to Google that connect consumers with advertisers based on historic searches and purchases. It also lets consumers buy or rent digital movies and TV shows through Unbox either online or through TiVo, and runs promotions for music labels that give consumers one free song download with purchase of a music CD.

The services offer businesses like Sony BMG a plethora of opportunities to target advertising and marketing messages to a slew of customers worldwide. "It's just a matter of turning on the service and coming to terms with content owners for distribution and royalty structure," says Lazard Capital Markets Senior Research Analyst Colin Sebastian.

The online retailer supports about 70 million active registered users who are inclined to buy media online, says Sebastian, who estimates Amazon will generate about $9 billion in media sales this year, or 60% of total business sales--up from $7.1 billion in 2006.

Not all agree the technology is ready for prime time. "Shockingly enough, I think Amazon's Web site is deficient in functions as basic as search," says Edward Weller, analyst at ThinkEquity Partners, San Francisco.

In a research note published last May, he explains "Glitches within the web site, ill-conceived or downright irrational associations in marketing and shortcomings in functions as basic as search suggest Amazon might have been trying to do too many new things at the same time, that the very aggressiveness of the Technology and Content ramp-up might have been undermining its effectiveness."

Aside from Apple, Amazon faces a host of other competitors. In late August, Nokia announced several services under the brand name Ovi that would allow its phones to download music, games and maps.

Along with the news, the Finnish mobile phone maker introduced the Nokia Music Store, striking deals with four of the world's largest music labels--Universal Music, Warner Music Group, EMI and Sony BMG. DRM from Microsoft restricts the number of times consumers can copy songs from their PC to phone and back again.

Link to MediaPost Article

MTV Rolls Out a Mobile-Music Venture

Joins with Real Networks, Verizon for iTunes Challenger

By Andrew Hampp

Published: August 21, 2007

NEW YORK (AdAge.com) -- Two years after launching iTunes competitor Urge, with Microsoft, MTV Networks has a new partner in Real Networks. The two unveiled today a joint venture called Rhapsody America, which also includes mobile partner Verizon Wireless. The deal brings what MTV hopes will prove to be a unique element to the mobile-music space, and will help differentiate itself from the likes of Apple's iPhone and Zune, the portable music device Microsoft launched just months after its Urge partnership.

No PC connection needed
Like iTunes, Rhapsody America will allow users to download MP3 files to their PC for 99 cents. But unlike the iPhone or Zune, which require connection to a PC, users will be able to purchase music for their Verizon V Cast-enabled phones on-the-go -- meaning they can hear the latest Justin Timberlake song on their phone directly without having to plug anything into their computer first. Users will also have the option of "dual delivery," or the ability to download to their PCs as well as to their phones, via Verizon's V Cast music, a partnership previously existed with the MTV Networks' Urge program.

MTV serves as the content provider for the joint venture through its preexisting relationships with record labels for streaming music videos on V Cast. Van Toffler, president of MTV Networks Music & Logo Group, said in a statement, "It's like we've put the best lead singer, drummer and guitarist all on the same giant stage, allowing music fans to experience the purest music play in any way they want."

The pay model for Rhapsody America will mirror the ones already in place for Urge and Rhapsody, said an MTV spokeswoman. Individual MP3s will cost 99 cents, while unlimited monthly subscriptions will remain at $9.95 for PC-only, or $14.95 for "PC to go," which includes mobile. Music videos will continue to be available for free streaming.

Promotional spots announcing Rhapsody America will begin airing on MTV next week, with additional spots and integrations airing throughout the Video Music Awards on Sept. 9.

Link to AdAge Article

Limewire Readies Paid Download Store; Initial Outline Sketched

Leading P2P application Limewire is now preparing a paid download store, according to an announcement issued Tuesday. The file-sharing application, run by Lime Wire LLC, will position the store as a stand-alone, web-based outlet. The company will offer links to the store from its ultra-popular file-sharing application, and eventually layer the paid downloads into P2P results sets. "Subsequent releases will enable users to browse and purchase music directly from within the Limewire program," the company promised.

Limewire did not offer a concrete release date, though the announcement alluded to something imminent. The store will broker in MP3s, and offer a-la-carte or subscription buying options. Already, IRIS Distribution and Nettwerk Music Group have licensed their content to the play. "We are delighted to collaborate with these forward-thinking music companies and sell their authorized content through Limewire," said Jesse Rubenfeld, chief financial officer at Lime Wire LLC.

Other content holders are certain to jump aboard, though it remains unclear whether majors EMI and Universal Music Group will entertain the possibility. Currently, Lime Wire is in the midst of a protracted legal battle with the RIAA, one focused on copyright infringement. Limewire is now inviting interested content holders to contact them at storecontent@limewire.com.

Link to Digital Music News Article

Music Minus Protection: Step Toward Free Ad-Backed Songs?

UNIVERSAL MUSIC GROUP'S DECISION ON Friday to test selling digital music tracks online without copy-protection technology is seen by some as a step toward providing ad-supported digital music for free.

Although not available for purchase through Apple's iTunes store, thousands of music tracks from UMG artists Gwen Stefani, Stevie Wonder, Johnny Cash and others will sell through online retail stores Amazon, Google, Wal-Mart Stores, Best Buy, RealNetworks' Rhapsody, Trans World Entertainment, PassAlong Networks and Puretracks. The tracks are playable on any device compatible with the MP3 format, including iPods.

Early next year, UMG will reevaluate the service and determine whether to continue selling music available in a file format not protected by standard anti-copying software, known as digital rights management (DRM), which puts restrictions on how songs are downloaded, played and shared. "We are running this trial for six months to test consumer demand and the effects of piracy," says UMG spokesman Peter Lofrumento.

The deal relaxes restrictions that now prohibit consumers from transferring music files between music players, specifically to Apple's iPod. "You just need a label or two to lead with this DRM-free model and others will follow," says Kevin Nakao, vice president of music services at RealNetworks.

Other major labels also have begun to sell DRM-free music. Earlier this year, EMI Group allowed Apple and Snowcap MyStores--peer-to-peer technology that has hooked up with MySpace to let people share music for free--to begin selling versions of its songs without copyright protection.

DRM-free music content will open doors for ad-supported free music models, too. Nakao believes it will lead more brands like Heineken and Neutrogena to purchase music downloads in bulk and give to consumers as incentives or promotions because DRM-free music files can play on any MP3 player.

Martin Lafferty, CEO at the peer-to-peer trade group Distributed Computing Industry Association, and James McQuivey, principal analyst at Forrester Research, believe releasing music files from copyright restrictions will eventually lead more music download sites to offer both pay and ad-supported free music.

"Most music labels will begin to support sites that gradually incorporate purchase-this-track, ad-supported and subscription options," McQuivey says. "For now, music labels are just trying to stimulate competition by giving other companies a way to compete against Apple, which will sell about 20% of all music sold, not just digital, in the United States this year."

Recently launched digital music download service We7 and soon-to-debut Qtrax and SpiralFrog rely on DRM-free ad-supported models to distribute music.

We7, introduced in late April by musician Peter Gabriel, tech entrepreneur Steve Purdham and finance guru John Taysom, operates on an ad-funded music business model but also gives consumers an option to download ad-free content for a fee. The site relies on a file format not protected by DRM. Consumers can listen to all tracks on any MP3 player.

Gareth Reakes, chief technology officer at Oxford, London-based We7, says in the free music model, ads download with tracks. "We believe those who illegally download music want to see artists get paid, and others want to try new music but don't want to pay 99 cents at iTunes," he says. "When consumers download and sample tracks at We7 for free, artists are paid through ad revenue."

We7 supports about 60,000 consumers who have downloaded 250,000 digital music files, supported mostly by promotional ads. The dynamically created ads differ each time songs are downloaded, depending on the time of day, region, search history and download behavior.

Link to MediaPost Article

Google Key to Latest ITunes Challenge

NEW YORK -

Add gBox Inc. to the growing list of online music services hoping to chip away at iTunes's dominance.

The Cupertino, Calif., startup was forced out of a stealth mode when Universal Music Group announced late Thursday it would test sales of some digital music without the customary copy-protection technology.

Under the program, gBox will get referrals through ads Universal will buy through search leader Google Inc., gBox Chief Executive Tammy Artim said Friday.

Google will get standard advertising fees rather than a cut of sales under the arrangement. The ads, which would appear when a Google user searches for specific terms such as the name of an artist, will direct the user to gBox.

The arrangement with Universal and gBox is separate from Google's music search service, which directs users to online music stores when they search for specific albums or artists. The company says it does not get paid for such referrals, and it does not restrict links to a single retailer.

Google, which has said it has no plans to create a music store of its own, described the new arrangement as strictly an advertising relationship.

Songs at gBox cost 99 cents each. For the Universal songs that are part of the test, gBox will offer an MP3 version free of copy-protection technology known as digital-rights management, or DRM. A DRM-enabled version will be available at the same price.

DRM technology is designed to block or set limits on copying and CD burning.

Although DRM can help stem illegal copying, it can also frustrate consumers by limiting the type of device or number of computers on which they can listen.

Copy-protected songs sold through Apple's market-leading iTunes store generally won't play on devices other than its popular iPod digital player, and iPods won't play DRM-enabled songs bought at rival music stores, including gBox.

Although many independent music labels have for years sold their tunes without copy restrictions, the major recording companies have resisted.

Earlier this year, Britain's EMI Group PLC became the first of the major labels to embrace DRM-free tunes, letting Apple sell versions of songs with higher audio quality and without any built-in copying hurdles.

The test by Vivendi SA's Universal Music Group, while only encompassing a portion of its catalog, is significant because Universal is the world's largest recording company. That raises the prospect that other major labels could follow.

Universal Music will make DRM-free songs available Aug. 21 to Jan. 31. Amazon.com Inc., Wal-Mart Stores Inc., Best Buy Co. and RealNetworks Inc.'s Rhapsody are among the other retailers selling such tracks, but only gBox will get Universal's Google referrals.

Although gBox won't formally launch until Aug. 21, it already has a site with music from Sony Corp. and independent labels. Artim said the company has negotiated deals with other labels, but could not disclose them until the launch.

She also said gBox was working with other major labels to sell DRM-free tracks like Universal's, but such talks are ongoing.

GBox now works only with Microsoft Corp.'s Internet Explorer browser on Windows-based computers, but Firefox support will come by the launch date, Artim said.

It won't be compatible with Apple's Macintosh computers, however. Even though DRM-free tracks can play on any computer, the DRM versions won't, and gBox didn't want to confuse customers, Artim said.

GBox also is developing a "wish list" feature - software code that users can place on their blogs or social-networking profiles at News Corp.'s MySpace, Facebook and other sites. Friends visiting the blog or profile can buy a song for that user through gBox.

In relying on referrals through Google and social-networking sites, gBox is taking a different approach to marketing. Other retailers tend to drive music buyers to the store's home page to discover new songs and make purchases there.

"Instead of doing marketing and (advertising on) billboards on Highway 101 to go to gBox," Artim said, "we want to take advantage of the viral element that has been so successful for companies in the past."

Link to Forbes Article

O2 Germany Taps Muze on Mobile Music Subscription Play

O2 Germany is now pushing into the subscription-based mobile music realm, and tapping Muze as one of its key partners. According to information disclosed Tuesday, O2 Germany will also wrap MTV into the play, and use the alliance to craft splashy download specials. Muze will focus on the search, discovery, and consumption of mobile music assets through its Open Media Exchange. "We have partnered with world class organizations in order to bring our customers exciting, yet affordable digital media content," commented Lars Dueysen, head of music data services and portals for O2 Music.

Charges will be automatically billed to existing accounts, a mechanism that helped to fuel a booming ringtone industry. The service, which blends downloads into a subscription platform, allows consumers to simultanouesly download songs to their devices and PCs. That dual-download structure is becoming standard, and consumers can also download PC-based tracks and sideload them onto their devices. The service also supports progressive playback, which allows users to start listening to a song before the download is completed.

Link to Digital Music News Article

Verizon Snags AC/DC Download Exclusive, Restrictions Apply

Verizon Wireless is now trumpeting an exclusive download deal involving AC/DC, a longtime digital holdout. The deal is currently the focus of a number of Verizon Wireless advertisements, which also feature the LG Chocolate. Elsewhere, Verizon executives are hoisting the arrangement as a score over iTunes, normally a favorite for exclusives like these. "You won't be able to get this through any other mobile carrier and you certainly won't be able to get it through iTunes," said John Harrobin, senior vice president for marketing and digital media at Verizon Wireless in comments this morning to the Wall Street Journal.

Meanwhile, Verizon is heavily promoting the catalog to its subscribers both online and via mobile decks. But interested fans are being subjected to a number of strings attached, including an inability to purchase individual downloads. Except for the track "You Shook Me All Night Long," all full-song downloads must be purchased within bundled albums. Moreover, the remaining catalog must also be purchased on the Verizon Wireless website, and subsequently sideloaded to the device. The restrictions could explain the choice of partner for AC/DC, especially considering that Apple rarely permits album-only purchases. Verizon is also spinning a number of exclusive ringback tones from the band.

Link to Digital Media News Article

RealNetworks Claims Top Slot Among Subscription Services

Subscription-based music services may never live up to their lofty expectations, despite continued support from a number of companies. The concept appeals to a certain demographic, though overall tallies remain modest. Just recently, Napster disclosed subscriber totals of 830,000, though an upcoming earnings release will probably bump that number. Others, like Yahoo Music Unlimited and the recently-launched Zune Marketplace, have not released totals. Most recently, RealNetworks touted a tally of 2.7 million, up 1.63 million from last year, though that figure combines premium radio and Rhapsody subscribers.

Despite the foggy math, RealNetworks is now claiming the top slot among its subscription peers, and a second-place ranking within the larger space. During a second quarter financial review on Tuesday, the company pointed to a "commanding lead over Napster, Yahoo and Zune based on both revenue and overall subscriber numbers," and a "status as the second-largest player in the overall digital music market."

In terms of music-based revenues, RealNetworks revealed sales of $36.8 million, up 22 percent from the same quarter last year. Overall RealNetworks revenues reached a record of $136.2 million, a 52 percent gain, though net income plunged 96.6 percent to $1.3 million. The explanation for the dive comes from Microsoft, which completed its last payment obligations under a massive antitrust settlement during the first quarter of this year.

Link to Digital Music News Article

T-Mobile Spins UK-Based, Dual Download OTA Offering

T-Mobile is now offering UK subscribers an over-the-air, dual download service, according to an announcement issued last week. The service includes 500,000 tracks, all priced at 1 pound ($2.02). Like most other over-the-air services, separate downloads will be delivered to both the handheld and PC, a dual delivery concept that ensures compatibility across multiple platforms. The Mobile Jukebox concept features 500,000 tracks from all four majors, as well as key independents like V2 and Beggars Banquet. The company promised compatibility across a range of more than 30 devices, and delivery on both 2.5G and 3G delivery networks. Additionally, the service can be tapped by both monthly and pay-as-you-go subscribers. T-Mobile is offering five free tracks to new subscribers through July.

Link to Digital Music News Article

Samsung Unveils Digital Music Store, Taps MusicNet

Consumer electronics and technology behemoth Samsung is now launching a digital music store in the UK, France and Germany, according to information received late last week. The initiative, which first bubbled in September of last year, taps backend services from MusicNet. The ecommerce play involves a mobile-focused subscription service, as well as an a-la-carte download option. The store is being layered into the existing Samsung Media Studio (SMS), a proprietary media platform designed specifically for a range of Samsung devices. "We have linked our internationally popular devices with a music subscription service and store adding a new dimension to how consumers interact with their devices," said Seungsoo Park, vice president of Sales & Marketing at the Digital AV Division of Samsung Electronics.

The offering will vary from region to region. The UK version features roughly 3 million songs, including content from the four major labels and over 55,000 independents. The group did not disclose licensing partners for France, though the track total in that market surpasses 2.6 million. In terms of pricing, monthly subscriptions will cost 10.25 pounds ($20.65) in the UK, and 14.99 euros ($20.43) in France and Germany. Individual track download prices will start at 1.15 euros ($1.57). The service is optimized for recently-released K3, K5 and T9 portable music players, though the group indicated that earlier devices will also be supported. The service is currently available at SamsungPlay.com.

Link to Digital Music News Article

Samsung Launches Digital Music Service

SAMSUNG ELECTRONICS CO. HAS LAUNCHED a digital music service designed for its K3, K5 and T9 digital media devices. MusicNet will provide the platform for the Samsung Media Studio.

The company will start a marketing plan in France, Germany and the U.K to promote the product, which the company says will offer portable music subscriptions, unlimited downloads to Samsung portable devices for a flat monthly fee or purchase of single tracks or albums.--Karl Greenberg

Link to MediaPost Article