Jay-Z may have shunned iTunes on this latest release, American Gangster, but the rapper is embracing other platforms. Apple refuses to offer album-only downloads, a stance that caused Jay-Z to pull his content from the iTunes Store. But live performance streams are less permanent and more promotional in nature, and that allowed MSN and Control Room to broker an upcoming broadcast.
On Tuesday, the duo will stream a Jay-Z show from the Hammerstein Ballroom in New York, the first date on a short, six-city tour. Diddy, Li'l Wayne, and Rock Boyz are also on the bill. "Control Room's mission is to bring artists of this caliber and exclusive live performances, like this one, to a worldwide audience," explained Aaron Grosky, president of Control Room. The performance is part of a larger, multi-year partnership between Control Room and MSN, a pact that first surfaced late last year. American Gangster was the best-selling album last week, though digital sales were predictably small.
The broadcast starts at 2 o'clock pm EST at music.msn.com/jayz.
Link to Digital Media News
Showing posts with label iTunes. Show all posts
Showing posts with label iTunes. Show all posts
Wednesday, November 28, 2007
Universal Music Takes on iTunes
Universal chief Doug Morris is enlisting other big music players for a service to challenge the Jobs juggernaut
Relationships in the entertainment world can be famously fraught. And few are more so these days than the one between Steve Jobs and Universal Music chief Doug Morris. You may recall that Morris recently refused to re-up a multi-year contract to put his company's music on Apple's iTunes Music Store. That's because Jobs wouldn't ease his stringent terms, which limit how record companies can market their music.
Now, Morris is going on the offensive. The world's most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service. BusinessWeek has learned that Morris has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S. Besides competing head-on with Apple Inc.'s (AAPL ) music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft's Zune media player and Sony's PlayStation and by working with the wireless carriers. The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music. (Morris was unavailable for comment.)
This isn't only about Jobs; Morris badly needs to boost his business, and Apple is the one to beat. The iTunes store has grabbed about 70% of downloads in the U.S. And the iPod--well, what's left to say about that juggernaut? Plus, music companies have been here before. A few years ago they launched services with the aim of defeating Napster-style file-sharing--and failed miserably. And let's not forget that existing subscription services have signed up only a few million people, vs. hundreds of millions of iTunes software downloads.
While the details are in flux, insiders say Morris & Co. have an intriguing business model: get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that's essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players. "Doug is doing the right thing taking on Steve Jobs," says ex-MCA Records Chairman Irving Azoff, whose Azoff Music Management Group represents the Eagles, Journey, Christina Aguilera, and others. "The artists are behind him."
Morris and Jobs were once the best of allies. When Jobs began pushing his idea for a simple-to-use download store in 2003, Morris backed him. Industry insiders say Jobs felt that Morris, unlike many other music executives, understood that they had to adapt or die. And in the years that followed, Apple and Universal moved in near lockstep.
But before long, Morris realized he and his fellow music executives had ceded too much control to Jobs. "We got rolled like a bunch of puppies," he said during a recent meeting, according to people who were there. And though Morris hasn't publicly blasted Jobs, his boss at Universal parent Vivendi is not nearly so hesitant. The split with record labels--Apple takes 29 cents of the 99 cents--"is indecent," Vivendi CEO Jean-Bernard Levy told reporters in September. "Our contracts give too good a share to Apple."
After unilaterally breaking off talks with Apple in July, Morris continued offering Universal's roster--Eminem, 50 Cent, U2, and other artists--to Apple, but on a month-to-month basis. That freed Universal to cut special deals with other vendors, such as cell carriers eager to generate revenues. AT&T (T ) is packaging ringtones and music videos of Universal artists and is expected to start selling downloaded tracks with videos soon.
That's not all: In August, Morris announced a five-month test with Wal-Mart (WMT ), Google (GOOG ), and Best Buy (BBY ). The three companies will sell music downloads that can be played on any device--a freedom not available to buyers of iTunes songs, most of which play only on Apple devices and software. Morris wants to see if the downloads, which won't have copy protection, will help cut into piracy and hike sales. And of course he won't be upset if iPod owners bypass iTunes.
With the Total Music service, Morris and his allies are trying to hit reset on how digital music is consumed. In essence, Morris & Co. are telling consumers that music is a utility to which they are entitled, like water or gas. Buy one of the Total Music devices, and you've got it all. Ironically, the plan takes Jobs' basic strategy-- getting people to pay a few hundred bucks for a music player but a measly 99 cents for the music that gives it value--and pushes it to its extreme. After all, the Total Music subscriber pays only for the device--and never shells out a penny for the music. "You know that it's there, and it costs something," says one tech company executive who has seen Morris' presentation. "But you never write a check for it."
The big question is whether the makers of music players and phones can charge enough to cover the cost of baking in the subscription. Under one scenario industry insiders figure the cost per player would amount to about $90. They arrived at that number by assuming people hang on to a music player or phone for 18 months before upgrading. Eighteen times a $5 subscription fee equals $90. There is precedent here. When Microsoft was looking to launch a subscription service for Zune, Morris played hardball. He got the tech giant to fork over $1 for every player sold, plus royalties. Total Music would take that concept even further. "If the object is to wrest control of the market from Steve Jobs," says Gartner analyst Mike McGuire, "this is a credible way to try it."
Of course, Morris still needs Jobs. It's noteworthy that Universal has not pulled its music from iTunes--Morris simply can't afford to do that. Universal's earnings fell 25% in the first half. Jobs, of course, knows that and can afford to be magnanimous. "Doug's a very special guy," the Apple chief told BusinessWeek. "He's the last of the great music executives who came up through A&R. He's old school. I like him a lot."
Link to BusinessWeek Article
Relationships in the entertainment world can be famously fraught. And few are more so these days than the one between Steve Jobs and Universal Music chief Doug Morris. You may recall that Morris recently refused to re-up a multi-year contract to put his company's music on Apple's iTunes Music Store. That's because Jobs wouldn't ease his stringent terms, which limit how record companies can market their music.
Now, Morris is going on the offensive. The world's most powerful music executive aims to join forces with other record companies to launch an industry-owned subscription service. BusinessWeek has learned that Morris has already enlisted Sony BMG Music Entertainment as a potential partner and is talking to Warner Music Group. Together the three would control about 75% of the music sold in the U.S. Besides competing head-on with Apple Inc.'s (AAPL ) music store, Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft's Zune media player and Sony's PlayStation and by working with the wireless carriers. The service, which is one of several initiatives the music majors are considering to help reverse sliding sales, will be called Total Music. (Morris was unavailable for comment.)
This isn't only about Jobs; Morris badly needs to boost his business, and Apple is the one to beat. The iTunes store has grabbed about 70% of downloads in the U.S. And the iPod--well, what's left to say about that juggernaut? Plus, music companies have been here before. A few years ago they launched services with the aim of defeating Napster-style file-sharing--and failed miserably. And let's not forget that existing subscription services have signed up only a few million people, vs. hundreds of millions of iTunes software downloads.
While the details are in flux, insiders say Morris & Co. have an intriguing business model: get hardware makers or cell carriers to absorb the cost of a roughly $5-per-month subscription fee so consumers get a device with all-you-can-eat music that's essentially free. Music companies would collect the subscription fee, while hardware makers theoretically would move many more players. "Doug is doing the right thing taking on Steve Jobs," says ex-MCA Records Chairman Irving Azoff, whose Azoff Music Management Group represents the Eagles, Journey, Christina Aguilera, and others. "The artists are behind him."
Morris and Jobs were once the best of allies. When Jobs began pushing his idea for a simple-to-use download store in 2003, Morris backed him. Industry insiders say Jobs felt that Morris, unlike many other music executives, understood that they had to adapt or die. And in the years that followed, Apple and Universal moved in near lockstep.
But before long, Morris realized he and his fellow music executives had ceded too much control to Jobs. "We got rolled like a bunch of puppies," he said during a recent meeting, according to people who were there. And though Morris hasn't publicly blasted Jobs, his boss at Universal parent Vivendi is not nearly so hesitant. The split with record labels--Apple takes 29 cents of the 99 cents--"is indecent," Vivendi CEO Jean-Bernard Levy told reporters in September. "Our contracts give too good a share to Apple."
After unilaterally breaking off talks with Apple in July, Morris continued offering Universal's roster--Eminem, 50 Cent, U2, and other artists--to Apple, but on a month-to-month basis. That freed Universal to cut special deals with other vendors, such as cell carriers eager to generate revenues. AT&T (T ) is packaging ringtones and music videos of Universal artists and is expected to start selling downloaded tracks with videos soon.
That's not all: In August, Morris announced a five-month test with Wal-Mart (WMT ), Google (GOOG ), and Best Buy (BBY ). The three companies will sell music downloads that can be played on any device--a freedom not available to buyers of iTunes songs, most of which play only on Apple devices and software. Morris wants to see if the downloads, which won't have copy protection, will help cut into piracy and hike sales. And of course he won't be upset if iPod owners bypass iTunes.
With the Total Music service, Morris and his allies are trying to hit reset on how digital music is consumed. In essence, Morris & Co. are telling consumers that music is a utility to which they are entitled, like water or gas. Buy one of the Total Music devices, and you've got it all. Ironically, the plan takes Jobs' basic strategy-- getting people to pay a few hundred bucks for a music player but a measly 99 cents for the music that gives it value--and pushes it to its extreme. After all, the Total Music subscriber pays only for the device--and never shells out a penny for the music. "You know that it's there, and it costs something," says one tech company executive who has seen Morris' presentation. "But you never write a check for it."
The big question is whether the makers of music players and phones can charge enough to cover the cost of baking in the subscription. Under one scenario industry insiders figure the cost per player would amount to about $90. They arrived at that number by assuming people hang on to a music player or phone for 18 months before upgrading. Eighteen times a $5 subscription fee equals $90. There is precedent here. When Microsoft was looking to launch a subscription service for Zune, Morris played hardball. He got the tech giant to fork over $1 for every player sold, plus royalties. Total Music would take that concept even further. "If the object is to wrest control of the market from Steve Jobs," says Gartner analyst Mike McGuire, "this is a credible way to try it."
Of course, Morris still needs Jobs. It's noteworthy that Universal has not pulled its music from iTunes--Morris simply can't afford to do that. Universal's earnings fell 25% in the first half. Jobs, of course, knows that and can afford to be magnanimous. "Doug's a very special guy," the Apple chief told BusinessWeek. "He's the last of the great music executives who came up through A&R. He's old school. I like him a lot."
Link to BusinessWeek Article
Wednesday, September 5, 2007
NBC Runs From iTunes Into The Arms Of Amazon
Last week a lot of drama developed between Apple and NBC over who broke up with who. All we really know is that the pair allegedly split over conflicts around DRM and pricing control. It was quite a hit for Apple, with NBC making up 40% or iTune’s digital video downloads.
Today NBC found a friend in Amazon, announcing
Beginning on September 10, Amazon Unbox customers will download for free — in advance of their network premieres — the pilot episodes of NBC’s new shows Bionic Woman, Chuck, Journeyman and Life. New episodes will be available for purchase on Amazon Unbox the day after they air on TV. Complete seasons may be purchased as soon as the season concludes.
The deal is yet another twist in NBC’s ongoing plans to monetize their content online. NBC has already announced plans to release the same content on their new site Hulu, with no word on how the new deal will affect the offering. (Bit Torrent, however, is still up and running)
Thursday, August 16, 2007
Apple Jumps Into Widget Game, Spins Portable iTunes Apps
Apple is the latest to capitalize on a consumer appetite for portable media applications, one tearing across social networking destinations and blogs. The company is now offering a trio of iTunes-related widgets, all of which offer tie-ins back to the application. The customized modules include information on latest purchases and top reviews, and feature neatly-organized album images. "My iTunes widgets are simple, self-updating add-ons for your web page, social-networking profile, or blog," the company said. Apple also offers a number of different cosmetic styles, and also offers RSS reader compatibility.
Link to Digital Music News Article
Link to Digital Music News Article
Monday, August 13, 2007
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."
Friday, August 10, 2007
Universal Music Group Spreads DRM-Free, Spites iTunes
Universal Music Group is now triggering a multi-month, DRM-free download experiment, a significant step that follows a similar move by EMI. But unlike EMI, Universal is leaving iTunes out of the fun, and playing a dicey strategic game in the process.
Just recently, the mega-label indicated that it would soon offer portions of its catalog DRM-free to a number of online outlets, including Rhapsody, Amazon, Wal-Mart, and even Google. But the iTunes Store is not being handed the same luxury, a move that follows a period of dissatisfaction with the online retailing giant.
In a discussion Thursday, an executive at RealNetworks confirmed that portions of the Universal Music Group catalog will be positioned on Rhapsody starting August 21st, and continuing through January. Those tracks will be playable on iPods and a broad number of other players, according to the source. The executive also noted that songs from 50 Cent, Amy Winehouse, Johnny Cash, and a long list of others will be offered as MP3s, and sold at the same price as protected songs. Tracks will be encoded in 256kbps quality.
Universal Music Group is expected to release more information in the near future, though the Rhapsody experiment is likely to resemble rollouts by rival retailers.
Wednesday, August 1, 2007
iTunes Store Tops Three Billion Songs
CUPERTINO, California—July 31, 2007—Apple® today announced that more than three billion songs have been purchased and downloaded from the iTunes® Store (www.itunes.com). iTunes is the world’s most popular online music, TV and movie store featuring a catalog of over five million songs, 550 television shows and 500 movies. iTunes recently surpassed Amazon and Target to become the third largest music retailer in the US.*
“We’d like to thank all of our customers who have contributed to this incredible milestone,” said Eddy Cue, Apple’s vice president of iTunes.
With Apple’s legendary ease of use, pioneering features such as Cover Flow™, integrated podcasting support, iMix playlist sharing, seamless integration with iPod® and iPhone™, and the ability to turn previously purchased songs into completed albums at reduced prices, the iTunes Store is the best way for PC and Mac® users to legally discover, purchase and download music and video online.
*Based on data from market research firm the NPD Group’s MusicWatch survey, which captures consumer reported past week unit purchases equivalized so that one CD equals 12 tracks, excluding wireless transactions.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.
Tuesday, July 17, 2007
Starbucks Entertainment Prepares iTunes Store Exclusives
Starbucks Entertainment is now preparing a number of iTunes exclusives, part of a steadily growing music strategy. The Apple partnership, first announced in October of last year, initially involved a dedicated Starbucks section within iTunes. Starbucks is now pushing downloads of Rissi Palmer, Alice Russell and WinterKids into the online outlet starting Wednesday. Each artist will deliver a four-track digital EP to the effort, and receive airplay within Starbucks locations. The EPs will only be accessible from the iTunes Store, a bricks-to-clicks concept that helps Starbucks address the iPod+iTunes (and iPhone+iTunes) crowd more effectively.
For Starbucks, the emerging artist group represents the latest in a string of exclusives. Just recently, Starbucks signed Paul McCartney to its Hear Music record label, and pushed his album within its coffee stores aggressively. The album, Memory Almost Full, pulled first-week sales of roughly 161,000, a modest number that ranks highly for a McCartney solo release. Still, the outcome can be viewed as disappointing given the absolute marketing blitz applied. Other aspects of the broader Starbucks music strategy include a New England-based unsigned band competition, and an upcoming, star-studded cover album of Sonic Youth material.
Link to Digital Music News Article
For Starbucks, the emerging artist group represents the latest in a string of exclusives. Just recently, Starbucks signed Paul McCartney to its Hear Music record label, and pushed his album within its coffee stores aggressively. The album, Memory Almost Full, pulled first-week sales of roughly 161,000, a modest number that ranks highly for a McCartney solo release. Still, the outcome can be viewed as disappointing given the absolute marketing blitz applied. Other aspects of the broader Starbucks music strategy include a New England-based unsigned band competition, and an upcoming, star-studded cover album of Sonic Youth material.
Link to Digital Music News Article
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