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The Week In Review From Digital Music News

• The biggest news this week came from the trio of AOL, AEG, and XM Satellite Radio. The group announced a joint venture called Network Live, which will seek to license and distribute live concerts across a number of different platforms. The move comes on the heels of an ultra-successful Live 8 presentation by AOL, which set streaming records.
• Apple also smashed some records, with new earnings and revenue records reported Wednesday. The company quieted concerns about soft iPod demand, with more than 6 million units shifted for the most recent quarter.
• In other earnings news, EMI posted an improved result for its fiscal year-to-date, powered by recent releases by Coldplay and Gorillaz.
• In the wireless space, XM expanded its broadcasting spectrum through the purchase of WCS Wireless. That set the satellite leader back $196 million.
• And earlier this week, the RIAA dropped its case against Charter Communications, opting not to challenge an unfavorable ruling with the Supreme Court. The decision means that the RIAA will continue with John Doe proceedings for future lawsuits against individual file uploaders.

DIGITAL MUSIC NEWS - WEEK IN REVIEW

- The biggest news this week came over the weekend, with Live8 drawing a massive audience both online and off. Over 2 billion reportedly viewed the event worldwide in some form, while AOL set a streaming record through its multi-city coverage. MTV, VH1 and ABC also carried the event, though ratings were low and many complained about limited coverage.

-The satellite radio sector was predictably active, with XM announcing the addition of 640,000 new subscribers. That brings the US market leader to a 4.4 million total.

- In the portable mp3 space, HP completed its co-brand support for all iPods, with the shuffle rounding out the lineup.

- In online music, Target is reportedly preparing a digital music store, and Apple started the countdown towards half-a-billion paid downloads.

- And P2P trading volume increased in June, with average simultaneous users nearing 9 million worldwide. That is part of a steady climb.

DIGITAL MUSIC NEWS - WEEK IN REVIEW

• It was an absolutely huge week in digital music, with the Supreme Court dropping a heavy gavel on MGM v. Grokster. The court unanimously ruled against both Grokster and StreamCast Networks, ruling that the pair had knowingly encouraged and profited from copyright infringement. But the court stopped short of condemning P2P technology, limiting liability to those that show a clear intent to encourage and benefit from piracy.
• While file-sharing levels remained largely level this week despite the ruling, the RIAA continued to deliver individual lawsuits. And the Department of Justice coordinated an international offensive against several operators of servers distributing pirated content. Meanwhile, US album sales continued to slide.
• Apple also made a fairly momentous announcement this week, unwrapping its podcast-enabled iTunes v4.9. After just two days, the service received over one million subscriptions. The company also realigned their iPod lineup somewhat, announcing a new batch of podcast-friendly devices that will all carry color screens.
• In the mobile music arena, Verizon reiterated plans to deliver a music store within six to eight months. And more rumors bubbled on a possible deal involving Cingular and the iTunes phone. Meanwhile, the ringtone space continued to balloon, with a recent report showing a $4 billion global market, with a growing $300 million market reported in the US.
• In the satellite radio sector, XM inked a deal with Hyatt, while Sirius announced plans to expand into Asian-language content. Meanwhile, global satellite radio provider WorldSpace unveiled plans for an IPO.

MUSIC INDUSTRY CHEERS AS SUPREME COURT RULES AGAINST GROKSTER IN P2P CASE. BUT DOES IT MATTER?

From a HollywoodReporter.com bulletin:" In a unanimous decision that marks a big win for the entertainment industry and intellectual property rights, the Supreme Court on Monday ruled that file-sharing services may be sued for copyright infringement if they encourage customers to download files illegally. The case, MGM v. Grokster, pitted a Hollywood studio against one of the most-popular peer-to-peer services that many blame for hurting the music and motion picture industries....Justices said there was enough evidence of unlawful behavior for the case to go to trial."

HYPEBOT COMMENTARY: It may be bad news for Grokster and slow the tide illegal downloads for a few days or weeks but in the end it means nothing. There are many ways for those that want free music to get it and they'll learn to use them.  Not until the labels stop spending energy on suing their potential customers and start developing new talent as well as creating g value for the customers (extra content, lower prices, videos, related web content, etc) will music sales grow again.

For additional related news and opinions click below:

From TheStreet.com

From The Inquirer

From ZDNet

WATCH THIS SPACE FOR UPDATES AND MORE INDUSTRY COMMENTARIES.

DIGITAL MUSIC NEWS WEEK IN REVIEW

• Perhaps the biggest news this week didn't happen at all, with a widely-expected Supreme Court decision now scheduled for Monday morning. That made this week the calm before the storm, with Monday certain to be an intense day.
• - In the mobile music space, Verizon pointed to a music service by the end of the year, and Japanese mobile operator KDDI counted its 10 millionth full-song, over-the-air download. Meanwhile, Sprint has slowly started to open its closed network, leading to speculation that Verizon will soon follow suit. And BT started testing a mobile service that will deliver tv and radio streams, with Virgin Mobile part of the initial rollout.
• Satellite radio also saw some activity this week, with both XM and Sirius getting a green light to open services in Canada. That will be a tricky rollout for both companies, with a large number of Canadians already tapped into the US-based services. Meanwhile, Sirius inked a deal to transmit BBC Radio 1 broadcasts.
• In the P2P world, BigChampagne joined forces with Yahoo Music, further widening its reporting breadth. And StreamCast unveiled an upgraded Morpheus application, timed to coincide with the imminent Supreme Court ruling. And in the lab, Microsoft continued to tinker with a next-generation peer-to-peer concept, with its Avalance system emulating aspects of the BitTorrent protocol.
• In online music, MySpace pointed to possible e-commerce relationships with Napster and RealNetworks. And New Jersey approved a sales tax on internet content, effectively raising the price of an iTunes download to $1.05.
• Several regulatory proposals also surfaced this week. In Canada, a bill was introduced that would update various parts Canadian copyright law to better address digital formats. In the US, Register of Copyrights Marybeth Peters proposed an overhaul of Section 115 of the Copyright Act.

NET RADIO BROADCASTING TO CELL PHONES INCREASING

Internet radio stations on your cell phone are already a reality according to an article in today's RAIN newsletter "Orban/CRL has announced that several Internet netcasters are now streaming high-quality stereo audio programming to 3GPP mobile devices via Orban’s OPTICODEC-PC aacPlus streaming software. Groove Salad, Secret Agent, and Indie Pop Rocks from San Francisco netcaster SomaFM and Santa Fe, NM’s Blu 102.9 FM are all streaming using 3GPP streaming technology in addition to their normal aacPlus audio streams.

"According to Rusty Hodge of SomaFM, '3GPP aacPlus streams can actually sound better than FM radio. With these netcasters using this innovative technology, it is sure to help set the pace for more high quality streams and content to become available to the exploding wireless communications market.'...

"These stations join the many other netcasters who are listed on www.tuner2.com, a free streaming directory listing site for OPTICODEC-PC aacPlus netcasts. 3GPP streams are now also listed at www.tuner2.com/tuner/tuner2.wml for WAP browsers.

"Compared to MP3 and Windows Media Audio, these stations have found that OPTTICODEC-PC’s advanced aacPlus codec can reduce their bandwidth costs by almost two-thirds while increasing the audio quality they deliver to their listeners..."

HYPEBOT: It's all a bit technical for us. But new software that lowers bandwith requirements while increasing sound quality therefore making broadcasting to cell phones possible and bandwidth costs for all net broadcasting lower, then we're damn excited.

In Europe Internet Drowning Out TV And Radio...But There Is Hope For Music.

15-24 year olds across Europe are spending less time watching TV and listening to the radio as a result of using the Internet, according to research from the European Interactive Advertising Association (EIAA), the pan-European trade organisation for sellers of interactive media.  Almost half of 15-24 year olds (46%) are watching less TV, preferring instead to browse the web while 22% are listening to less radio. A third of those questioned are even reading less, choosing to consume information over the Internet.

Activities done less as a result of using the Internet:

• Watching TV                           46%
• Talking on the phone               34%
• Reading newspapers                33%
• Reading books                         32%
• Listening to the radio              22%

Across Europe, this key target audience is spending almost a quarter of their media time (24%) online, more than reading newspapers (10%) or magazines (8%). In comparison, the average European devotes 20% of their media activity to the Internet. Among 15-24 year olds, TV continues to represent the largest share of media time at 31% with radio just ahead of the Internet on 27%.

Music dominates online activity for this age group with the Internet providing a cheaper and more convenient means of purchasing and downloading tracks. A quarter of 15-24 year olds are now buying music online having previously purchased it in the shops. Almost half of those questioned (47%) would be prepared to pay for music download services, while 52% of youths listen to music online now instead of elsewhere.

Read more about the study here.

Radio On Your Cell Gains Steam

According to BussinessWeek.com, "A small deception is being practiced in Los Angeles and Washington, D.C. In those cities, 300 people who might look like typical headphone-wearing commuters are listening to the radio while stuck in traffic or holding on as their overcrowded train chugs along in the morning rush hour. But they carry a secret."

"They aren't listening to music on their portable radios, nor playing podcasts of homebrewed radio programs on their iPods. They're grooving to the radio, all right, but it's flowing from an unexpected source: their cell phones."

"This small army of testers is checking out Motorola's iRadio service, expected to launch by yearend. And these listeners won't be on their lonesome for long. Scores of handset makers, wireless carriers, Web portals, and even satellite radio companies are starting up services that offer radio over cell phones -- betting that the market for such services could be as big as camera phones and ringtones."

"...And many users want that addition. According to surveys conducted by America Online, a unit of Time Warner, more than half the respondents say they would listen to the radio on their phones. AOL is in talks with wireless service providers to offer its online radio stations on mobile phones within months..."

"Cell-phone radio might have greater appeal than mobile video. Handset maker Nokia is currently testing cell-phone video over a new network, but it has discovered that many consumers end up using the video broadcasts as radio. They listen to them most of the time, instead of squinting at the phones' two-inch screens..."

To learn more about the companies exploring broadcasting to cells and the struggle over finding the correct delivery technology, read the entire article here.

AOL Offers Free Content

Today (Tuesday) is the day that AOL opens the doors for free to much of it's once "subscriber only" content.

Jonathan Miller, America Online CEO, is heading this shift in the company's approach seemingly influenced by his time as an entertainment executive and relationship with parent corporation Time Warner. He described AOL's plans to remake the company from internet content provdier to true media conglomerate to The Hollywood Reporter.

The full interview can read online here.

Study Predicts $11.3 Billion Mobile Music Market In 5 Years

According to Digital Music News: "Just how big will the mobile music market be in 2010? Certainly, things will look a lot different than they do now, with a new market being shaped by beefier devices, faster delivery networks, surging interest and more robust batteries. That has most research groups asking just how high this market will rise, with Informa Telecoms and Media projecting an $11.3 billion market by 2010. Realtones will account for $6.8 billion of that total, outpacing polyphonic tones next year. Current ringtones sales, including both real and polyphonic tones, account for an estimated $4.9bn this year according to the research."

"While Informa sees a painful death for the iPod as the mobile music market evolves, the Apple devices are currently enjoying a nice reign...Ringtone sales themselves could start to feel a pinch, with many still amazed at just how much money one tone can fetch. That offers an interesting opportunity for companies like Xingtone and Primetones, which both other do-it-yourself ringtone creation tools...Meanwhile, many newer phones offer embedded ringtone creation tools, posing another major threat for existing ringtone revenues."

TOP MUSIC INDUSTRY LEADERS HOLD TWO DAY RETREAT

On Thursday the leaders of key music organizations completed a two-day CEO retreat near Napa, CA focused on issues confronting the industry as well as strategies to ensure a healthy future for the U.S. music community.

The retreat brought together the top leaders of virtually every component of the music industry to engage and share information and perspectives on issues of the day. A broad range of topics was discussed, and the impending Grokster Supreme Court decision and concerns regarding music piracy figured prominently and engendered great cooperation and unity of purpose.

Entertainment attorney John Frankenheimer, who served as the moderator/facilitator for the retreat, stated: "It is clear that there is commonality of interests across a broad series of issues within the industry. This was an invaluable opportunity for the music industry's leadership to candidly exchange ideas and perspectives and identify common ground."

Organizations whose attended included The Recording Academy, Recording Industry Association of America, The Songwriters Guild of America, American Federation of Television and Radio Artists, American Association for Independent Music, American Federation of Musicians, Church Music Publishers Association Action Fund, Gospel Music Association, Harry Fox Agency, National Association of Recording Merchandisers, National Music Publishers' Association, Recording Artists' Coalition, R&B Foundation, SESAC, and SoundExchange.

A commitment was made both to future meetings and continued cooperative effort.

Ericsson & Napster Launch Music Service

According to the Associated Press "wireless equipment maker LM Ericsson and online music distributor Napster Inc are launching a digital music service for mobile phones."

"The service will let users download Napster's music files to their handsets, or other mobile devices..."

"...The announcement came as wireless providers and device makers rush to deliver music, video and ringtones to mobile phones, viewed by many as the next medium of choice for entertainment."

"Motorola Inc. plans to launch a cell phone that can buy and play songs from Apple Computer Inc.'s iTunes..."

"...The service offered by Napster and Ericsson is set to go live in Europe within the next 12 months and will initially be offered to operators in selected markets in Europe, Asia, Latin America, and North America."

SIRIUS OVER YOUR SPRINT CELL

Digital Music News is reporting that Sprint and Sirius Satellite Radio are planning a wireless internet radio service. "Sprint, which has already dipped its toes into streaming audio and video content, will soon feature several Sirius channels to its subscribers...The move follows a mobile-based streaming audio offering in Britain, with Virgin Radio delivering broadcasts to 3G-enabled devices earlier this year..."

"While the possibility of mobile streaming audio is enticing, many users would simply prefer to have FM-radio access on their phones...The area is just developing, but carriers are more excited about opportunities like the Sirius one because it raises monthly charges, while an FM-radio, device-based installation does not..."

Expect many similar announcements from other cell companies and content providers in coming months.

PS: Sell your the broadcast radio stocks in your portfolio....

Execs Seek Music's Next Killer App.

Music industry execs have been trying to read the tea leaves for the next killer music app for some time.  Legal P2P?  Subsriptions?  Ringtones? Downloads and streaming to cell phones?  At the recent Digital Music Forum in LA "video" seemed to be on everones lips...

According to Digital Music News, "...Wendy Nussbaum, senior director of eLabs at Universal Music, pointed to increased experimentation on various music video formats and distribution methods....the new possibilities include selling video downloads, streaming video content to mobile devices, and pushing the nascent video ringer. That could be a pre-cursor to an increasingly visual mobile world, with streaming video already hitting the marketplace through services like VCast from Verizon."

"But one mobile VP was less enthusiastic on the trend of streaming mobile videos, with Mike Gaumond of Motorola pointing to some thorny delivery issues. According to Gaumond, the economics and bandwidth are just too taxing, even within a 3G delivery network..."

"But mobile audio playback is still a big future market, with a rush of new devices now coming with mp3 capabilities. According to Gaumond, 750 million new phones will be shipped this year, and “a huge amount will have mp3 capabilities, while a subset will have the memory to store 1-4GB of content on them”.

Read the full Digital Music News article here.

Wireless Internet Radios To Be Introduced In US

As if broadcast radio isn't already loosing ground to new media, satellite services, and now podcasting, watch for Internet broadcasting to explode as wireless high speed streaming to cell phones and other devices becomes more common and affordable. According to a press release "...Tatung, a manufacturer of consumer electronics and electrical home appliances in Taiwan, signed strategic alliance with California-based Roku, a globally leading designer of digital media players, to cooperate in development and manufacturing of wireless Internet-radio MP3 players which are equipped hard disk drives (HDDs) and able to receive online radio and download paid music...

"Roku will begin to sell the Tatung-made wireless Internet-radio MP3 players in the US and Europe under its brand name 'Roku' in July this year while Tatung will market them in Asia under its brand name 'elio' in September, pursuant to the strategic alliance..."

More Than 1.5 Million Text Messages For Live 8 Tickets

(CelebrityAccess MediaWire) The text-message-ticketing system employed for the upcoming Live 8 show in London attracted over 1.5 million entries within hours, vying for the 150,000 available passes in the raffle.

Entrants aged 16 and up were invited to text message the answer to a multiple choice question on their cell phone to a special number for the contest.

The participants were asked: “Which city is nearest to the G8 summit in July? A) Berlin, B) Moscow, C) Edinburgh.” After June 12, a computer will randomly select 72,500 people with the correct answer to each receive a pair of tickets.

Aside from the London gig, Live 8 shows will be held in Philadelphia, Paris, Berlin and Rome. The highly anticipated London show, the only city requiring ticketed entry, features acts such as Coldplay, Elton John, Paul McCartney, Madonna, U2, The Cure, Robbie Williams, Mariah Carey, and others.

A Live 8 spokesman told the media that the vast number of entries had already been received. “Bob’s delighted. I’ve just told him and he said: ‘It’s great’.”

He added that anyone texting between now and midnight on June 12 will have an equal chance.

Money raised by a £1.50 text charge for the competition will all go toward charity. The first £1.6 million will be split by The Prince’s Trust and Help A London Child, with the rest being designated to cover the costs of the concert and to going to the Band Aid Trust.

SoBe Beverages Extends Brand With Music & Mobile Content

According to Digital Music News "SoBe Beverage Company recently unveiled a new mobile play, extending its brand through ringtones and action sports content. Following its lizard theme, the new SoBe mobile phone offering delivers original "LizTones," part of an effort to further distinguish the fitness-focused drink. The new tones include special mixes from various SoBe DJs, offered exclusively on the sobebev.com website. aThe ringtone content is flanked by wallpapers and videos of action sports highlights and stunts. Behind the scenes, mobile content provider Versaly Entertainment teamed with wireless branding firm 5280 Mobile to deliver the solution. Online, SoBe has also partnered with BuyMusic, offering select singles at a discounted 79 cent price point."

New Studies Show US Ringtone Growth

Emarketer.com recently reported and commented on Jupiter Research new cell phone ringtone study.  Read all about the explosive growth here.

 

New Book "The Future Of Music - A Manifesto For The Digital Music Revolution " An Industry Must Read

THE FUTURE OF MUSIC - A Manifesto For The Digital Music Revolution is a new book that takes a hard and creative look at where the music industry is headed in the digital age.  It is a must read for both professionals and fans who don't want to be left behind by changes in technology and consumer preferences.

One of the smartest and most out-of-the box music industry thinkers we know, Mike Dreese (the co-founder of the Newbury Comics indy music store chain near Boston) says, "Kusek and Leonhard lay out critical visions of the past, present, and future. A must-read for music and media culture futurists."

The authors have also set up a pretty cool blog too that you can check out here.

Cell Phone Ringtone Beats Coldplay To Top UK Music Charts

According to the Associated Press:

"A cell phone ring tone appeared set to top the British singles chart Sunday, outselling the new single by the band Coldplay by nearly four to one, a music retailer said." "Crazy Frog Axel F," a ring tone based on the sound of a revving Swedish mo-ped, is the first tune being used on mobile phones to cross into mainstream music charts..."

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Two New Surveys Offer Surprising Insights Into Digital Music

Two new surveys provide interesting insights into digital music usage. 

"While most within the terrestrial radio space view portable mp3 players as a threat, a new study challenges that conclusion," reports Digital Music News. "According to findings published by radio research group Bridge Ratings, the use of portable mp3 players does not significantly alter the amount of time spent with traditional radio. Specifically, the group uncovered an interesting usage pattern, with radio listening levels reducing within the first months of portable mp3 ownership, only to bounce back later. And after a period of several months, Bridge reports that the level of traditional radio listening time actually increases...The survey involved 3120 participants, aged 12 and older, in the markets of Los Angeles, Boston, Phoenix, Ventura, CA and Chicago."

In another survey reported by Digital Music News, "consulting firm Network Management Group (recently surveyed) a large group of consumers to get a better idea of what might succeed. ..Topping the list are over-the-air, full song downloads and commercial-free streaming radio, with ad-supported videos not far behind."

"...Currently, both Verizon Wireless and Sprint are offering video offerings for a $15 monthly surcharge. Verizon is putting big weight onto its V Cast service, which recently added concert footage as part of a deal with Clear Channel. But survey respondents were lukewarm on those offerings, greatly preferring free, ad-supported video content. Meanwhile, price points on full song downloads were also examined, with a large percentage of respondents preferring a 99 cent per download option, mirroring established price points online...The survey involved over 1,000 respondents between the ages of 13 and 34."

VERIZON & CLEAR CHANNEL BRING CONCERTS TO CELL PHONES

(CelebrityAccess MediaWire) Verizon Wireless and Clear Channel Entertainment Properties haved launched the V CAST Encore Channel exclusive to Verizon Wireless V CAST customers, broadcasting concert performances from artists in rock, pop, alternative, country, world and hip-hop. Concert performances will be broadcast in the days following select live shows for one week. Artists and songs available for viewing rotate as new performances take place around the country.

The V CAST Encore Channel is a continuation of Verizon Wireless' focus on delivering music to its customers, which began with ringtones and then evolved to Ringback Tones. The V CAST launch earlier this year offered customers full-length music videos. "Our relationship with Clear Channel Entertainment Properties brings a broad range of popular artists to our wireless multimedia service," said John Stratton, vice president and chief marketing officer for Verizon Wireless. "Clear Channel's unparalleled artist relationships will allow our V CAST customers to see and listen to concert performances from artists they love - regardless of whether their tastes are pop or alternative, country or hip- hop."

...Within days of a recent concert, each participating artist will offer a few of their songs for a limited time on the V CAST Encore Channel in the Entertainment category on Verizon Wireless V CAST-enabled wireless phones. For example, at launch V CAST customers can tune in to watch three songs from Velvet Revolver's May 18 show in Pittsburgh.

For more and a list of upcoming V Cast shows click below.

Concert Going Goes Interactive Via Cell And Boomerang Mobile Media

At almost any concert one can see dozens of cell phones held up like the cigarette lighters of yesteryear.  Some are sending the show via an open phone line while others send photos or even video.

Now thanks to a new service from Boomerang Mobile Media "...beginning with the summer Clay Aiken tour, audiences can do a lot more with their phone...large screens in each venue on the tour will offer audiences a way to display text messages for all to see," according to an article in the Hollywood Reporter.

"...There also will be a call-in number for purchasing a variety of official merchandise...You see something you like, and we deliver it to your home," according to Boomerang founder Glenn Field. "These are exclusive items purchased through the security of your phone, and the day it should have arrived you'll get a follow-up phone call to confirm you received it." This is the first U.S. project from Boomerang and Simon Renshaw's Strategic Artists Management, which recently announced their strategic partnership. Other Renshaw clients include Dixie Chicks, Anastacia and Miranda Lambert."

DIGITAL MUSIC NEWS WEEK IN REVIEW

• While the beta version of the Yahoo Music Unlimited store started to sink in, attention turned this week towards a possible price war. Both Napster and RealNetworks stood firm against price drops in public comments, while MSN offered a curiously-timed digital download giveaway.
• Infinity Broadcasting continued to make noise, most recently experimenting with the first simulcast HD Multicast Radio station. Chicago country station WUSN-FM 99.5 HD-2 now delivers a second programming stream over the same frequency.
• In the portable mp3 player space, discussions in Britain continued to focus on a proposed "iPod tax" to compensate rights holders. A levy on iPod sales is already in place in countries like Germany. Meanwhile, several new devices were unveiled this week, including new contenders from Rio and iRiver. But iPod competitors are starting to feel the squeeze, with Singapore-based Creative experiencing continued stock drops. And some not-so-typical devices are also starting to knock on the door, including a new PDA from palmOne that will be compatible with the Rhapsody application from RealNetworks.
• The battle between ISPs and the recording industry continued to play out in several countries this week. While a regional German court delivering a setback to labels, a Canadian federal appeals court rejected an ISP subpoena request but potentially opened the door to future enforcement. Meanwhile, a big court drama is brewing in The Netherlands.
• In the satellite radio space, XM crossed the 4 million subscriber mark, with company CEO Hugh Panero pointing to ongoing discussions with various mobile carriers.
• On the label end, Warner Music Group announced modest losses in its latest quarter, while Universal Music showed a slight move into the black. And Sony BMG continued to demand the pull-down of its online music videos, with insiders pointing to early negotiations with AOL Music.
• In mobile music, Motorola continued to point to an upcoming iTunes-compatible phone release, downplaying any suggestion that carriers are resistant to the device.

From Digital Music News

Broadcast Radio Threatened By New Technologies

Mark Ramsey in the Mercury's Radio Marketing Nexus writes about how new technologies are challenging broadcast radio, "The phenomenon of podcasting will allow listeners to get both music and non-music content while bypassing radio of any kind...  Meanwhile, my sister doesn’t listen to radio. Her office, her co-workers, and the hundreds of listening quarter-hours they represent every week belong to streaming audio, which will only grow as high-speed connections become ever more ubiquitous... High-speed Internet connections to cell phones are on the horizon – and (unlike radios) cell phones are commonly upgraded every two years... WiFi will be widely available and free to all in cities like Austin, Portland, Philadelphia, New York City, San Francisco and others... Reuters reports that 'Slightly more than 100 U.S. cities…are setting up wireless networks now…[and] close to 1,000 local governments worldwide have plans in the works..." 

Now doesn't seem like a great time to buy Clear Channel stock; does it?

Roll Up King Sillerman Telegraphs New Play

According to PollstarOnline.com, fomer SFX/Clear Channel roll-up king Robert Sillerman told graduates of Boston's Emerson College that there is "seismic shift" occurring in media and entertainment.

Sillerman used some examples including Elvis Presley and "American Idol," his two recent acquisitions. "That change, that shift, is the transfer of power away from the mass distributors of content to the ultimate consumers of content: You, me, us," he told some 1100 graduates. "Elvis has sold well over 1 billion records, much more than anybody else in history," Sillerman told the graduates. "That includes today's pop icons like Jay-Z, Dave Matthews, Linkin Park, Britney Spears, Usher, Snoop Dogg and legends such as Bruce Springsteen and Madonna, all put together." The new digital on demand world alllows fans to emmerse themselves in their favortie stars 24/7 and provides almost unlimited opportuntities for the owners of content to re-package and monetize them. "My conclusion is that this increase in ease of access will not only extend the life of traditional entertainment offerings, but much more impactfully. This proliferation of ways of consuming entertainment will finally provide the freedom from the traditional gatekeepers that will cause a tidal wave of new, non-homogenized creative output," according to Sillerman. In other words - you guys can cry and moan, but I think I've found a way to make money.

Are Condom Makers Smarter Than Record Label Execs?

Are Condom Makers Smarter Than Record Label Execs?

It's an age old question; and we're afraid that once again label execs are on the short end of the brain stick.  AdAge.com reports that, "in an effort to reach young listeners with risque marketing messages at the same time it avoids FCC decency rules, condom maker Durex has purchased product placement advertising in podcasts." 

Why aren't the record labels exploring the podcasting space?  After all if you want the hipsters to love your product and tell their friends, you should go where hipsters go; and right now that's podcasting.

"Although it only emerged as a viable mass medium within the last six months, podcasting is already a craze among younger "digerati," says AdAge.com. "The new entertainment technology has also quickly drawn mainstream advertisers like General Motors Corp. An estimated 22 million Americans have iPods or MP3 players that can play podcast audio files."

"Durex last month launched an unusual brand integration campaign featuring unscripted X-rated banter on the “The Dawn and Drew Show,” the No. 2 podcast as currently ranked by visitors to PodcastAlley.com. Dawn and Drew are a Wisconsin husband and wife team whose freewheeling audio files are now distributed almost instantly to younger listeners around the country as well as the world."

“...The 18 to 24 [year old] segment is the first generational wave where we’re really starting to see the impact of broadband,” said Liz Daney, senior vice president and chief media officer for Interpublic Group of Cos.' Fitzgerald & Co., Atlanta, which arranged the Durex podcast buy. “It’s the first group where they’re spending more hours online than they are with TV.”

Podcasting gives Durex “a way to demonstrate the brand in a way that’s very, very relevant,” she said. “We could have the product actively being used. We’re showing it exactly as we want to position the brand, as fun, as playful and sensual.”

"And tasty. On the first podcast originally uploaded last month, Dawn and Drew and their dog, Hercules, put various samples from a Durex variety pack to the taste test. In a subsequent show, they tried a new line of tingling lubricants."

XM In Talks To Broadcast To Cell Phones. Hits 4 Million Subcribers.

From CNet News.com: "XM Satellite Radio is holding active discussions with wireless carriers about offering some form of its radio service on mobile phones, XM CEO Hugh Panero said on Monday...

"Panero [said] in an interview: 'They are clearly looking for content to support their platform, and we are a logical place for them to go.'

"XM, which earlier on Monday said it extended its lead in the nascent pay radio market tomore than 4 million subscribers, does not have any deals in place, and Panero did not specify how close it is to signing an agreement."

Read the full CNet News story here.

HotLocalMusic Offers Affordable Ringtone & Text Message Promo Services

You don't need to be a big name artist or sign your life away to use the current cell phone craze to promote a band. Affordable and easy to use ringtone and text messaging services are being offered for as little as $50 a month under the unfortunately limiting name HotLocalMusic.com.

Check out a demo:

Mobot Connects Cell Camera Users To Music

Now anyone with a camera phone can point, click and connect to music. Mobot has developed a way to connect consumers to ring tones or music on their phone.  Take a picture of a CD cover with your camera phone, send it to Mobot and it links you instantly to any ring tones or music from the artists that are available on your phone. No wading through tiny screens of information. With Mobot pictures become a shortcut directly to  mobile music.

Music marketers interested in the service can contact mailto:bizdev@mobot.com for more info.

Free Service ORB Streams Your Own Music & Video To Mobile Devices

"If you've got a big collection of digital music and video, you know that bringing it with you when you roam can be a hassle. Large media files can quickly overload a notebook's hard drive and they certainly won't fit on most cell phones or PDAs," according to PCWorld.com.

"That's where Orb Networks comes in. The Web-based service streams music, video, and photos from your Windows XP PC to other Web-connected devices, including any notebook, many PDAs (generally including PocketPCs, but not Palms), and Microsoft Smartphone cell phones. If your home PC has a TV tuner, you can even watch live television on your portable device."

"I tested the service--which recently changed from charging a $10 monthly fee to offering free accounts--using both a notebook and a Nokia 6620 cell phone. I found that it worked remarkably well for such a new technology."

"...In addition to showing the media files on your own PC, Orb shows you content (some free, some paid) from providers such as Audible and Beatport. The company plans to make money by selling customers content."

Read the full PCWorld article here.

DIGITAL MUSIC NEWS' WEEK IN REVIEW

• Linkin Park rattled the cage noisily this week, with the group attempting to exit its Warner Music contract. The move comes ahead of a big IPO, with the band accusing top management of allocating too little funds for its future development.
• Other artists were also active this week, including Weezer, which is now offering its upcoming album as a stream on MySpace. Meanwhile, Radiohead released its past catalog digitally for sale on charity site War Child Music. And Bruce Springsteen topped the charts last week, with his latest album exclusively released in the DualDisc format.
• Sirius announced an upcoming podcast show, with Adam Curry scheduled to air user submissions.
• An online advertising explosion is taking root, with PricewaterhouseCoopers reporting revenues of $9.6 billion total for 2004. That is helping players like AOL Music, which recently inked a sponsorship deal with Chevrolet.
• Yahoo expanded its mail service to 1GB, with big implications for one-to-one file-sharing. The company will also deliver an audio search engine.
• Nielsen has teamed with BigChampagne, layering P2P-based data into its existing airplay monitoring. And SnoCap recently inked a licensing deal with EMI, though a product launch date is unclear.
• And the Apple shuffle has made a big impact, with recent figures points to a 58 percent flash-based market share in the United States.

- From Digital Music News

DIGITIAL MUSIC NEWS WEEK IN REVIEW

• RealNetworks made the biggest news this week, announcing a new portable subscription service. The company also improved its Harmony transcoding software, promising that its downloads are once again compatible with every iPod model.
• Sony BMG and Warner Music Group publishing unit Warner/Chappell inked a new alliance, opening the door for quicker licensing of new tracks for new digital technologies.
• Coldplay got off to a strong start online, with its single "Speed of Sound"
• topping iTunes Music Store rankings in every country. The EMI group will release its album June 6th.
• In the portable mp3 space, both Creative and iRiver suffered big net losses, with heavy price chopping leading to the declines. Meanwhile, SanDisk is hitting some unexpected success, quietly leveraging its substantial retailer relationships to support a recent mp3 player expansion.
• In satellite radio, both XM and Sirius reported strong revenue and subscriber increases in the latest quarter. But overall losses continued, with XM the only one in the pair to narrow the gap.
• In mobile music, Nokia revealed plans to introduce a 4GB music phone, with PC-transfers and over-the-air downloads supported. The N91 will rollout worldwide by the end of this year. On the content end, MTV announced a new relationship with China Mobile, part of an overall global expansion for the Viacom cable channel.
• Infinity has made a big move into podcasting, converting a money-losing AM station in San Francisco into a podcast-only broadcast.
• And the RIAA remained on the offensive, ending the week with 725 new lawsuits.

From Digital Music News.

Nokia Announces New Music & Video Enabled Phones

At least 10 times a day we hear stories of music and entertainment companies scrambling to take advantage of what is certain to be the next wave of music delivery and promotion opportunities: the cell phone.

In a move matching recent cell phones promised from Motorola, Nokia today upped the stakes by announcing a new line with advanced features including hard drives, improved cameras, video, and music storage.

According to a company press release the N91 can store 3,000 songs on its four-gigabyte hard disk, a capacity similar to that of Apple Computer's iPod Mini and will go on sake by the end of this year. The N70, Nokia's smallest so-called third-generation, (3G) hone will provide faster data-transmission speeds and will start selling in the third quarter.

Global mobile phone sales rose 10 percent in the first quarter, slowing from a 44 percent increase in the quarter a year earlier, according to a survey from the consulting firm Strategy Analytics according to Reuters.

The first "Nseries" handset, the N90, will go on sale within a month or two and it includes optics from the German lens maker Carl Zeiss and has a video recorder and i nternet browser. The company gave no prices.

Yahoo!Music VP Predicts Radio's Demise

During a keynote at last weeks Radio And Internet News Summit in Las Vegas Yahoo!Music and Launchcast VP David Goldberg spoke about his companies successes and challenges as well as his vision of a drastically re-shaped marketplace for music and entertainment delivery and enjoyment.

Predicting both the demise of both the CD and music on broadcast radio, he stated, "We really want to replace broadcast radio for music discovery. We believe music will migrate off of terrestrial radio to the services we are offering because we can deliver the music consumers want, when they want it, where they want it," he explained. "CDs will be replaced by on-demand subscription services. 'Personalization' and 'community' features will be key ways we'll be able to deliver the right music to people at the right time, on devices, on a global basis."

Strong words, but words the music industry needs to pay attention to. Read more about his keynote in RAIN.

Motorola Unveils iRadio & Music Friendly Mobile Phones

Tech New World reports that "through both its partnership with Apple and its new iRadio service to be tested in the U.S. next month, Motorola is looking to expand the capabilities of its handsets, making mobile phones into multimedia platforms that allow consumers to carry their music wherever they bring their cell phones."

"Motorola, which will soon offer Apple's popular iTunes music service over some of its multimedia handsets, is also highlighting its iRadio solution -- intended to use high-speed Internet connections, Bluetooth wireless technology and affiliation with Internet broadcasters to deliver commercial-free radio through mobile handsets."

"With some additional technology and possible deals with automakers, the iRadio solution will also allow users to play their music on car stereos..."

"Motorola's multimedia moves -- being matched by a number of other satellite and wireless service providers in various forms -- are an effort to take advantage of the increased power of mobile phones, which have proved to be one of the most pervasive technologies for consumers."

"...Motorola...will sell iRadio as a subscription for less than US$10 a month, said iRadio will "mobilize" commercial-free Internet radio, giving broadcasters the ability to extend their services beyond the PC to consumers in the car and on the go."

Internet Radio Update

There are some interesting insights in today's Radio And Internet Newsletter on current opportunities and issues in iternet radio.

Rain publisher Kurt Hanson shared that declines in "At Home" and "In Office" radio listening per person represent "an opportunity...because that's where Internet radio can reach people".

For this and more read the article here.

The Week in Review From Digital Music News

• Infinity revealed a mobile-based radio broadcasting strategy this week, joining rival Clear Channel. A target date of mid-2006 was discussed.
• Britain successfully combined its download and CD-single charts, with both formats approaching 400,000 units weekly. The BPI pointed to heavy representation from independent artists, part of an effort to downplay concerns over indie inclusion from groups like the Association of Independent Music (AIM).
• In the satellite radio space, Sirius announced a new deal with Martha Stewart, with the homemaking diva grabbing a $30 million guarantee.
• In the music destination arena, AOL struck video licensing arrangements with both Universal Music and Warner Music, opening up access to tens of thousands of major label videos.
• Meanwhile, RealNetworks started to build the story on paid subscription services, announcing its one millionth subscriber.
• And sales of pre-recorded CDs continued to lag behind 2004 levels, with the gap now crossing 10%. That adds to a tough climate for an upcoming Warner Music IPO, with the company preparing to offer 32.6 million shares within the price range of $22-$26.

Aspiring Rappers Battle Online

The LA Times reported Thursday on  "Net-cees" or rappers who engage in the "MC battles" made famous in the movie "8 Mile" over the Internet rather than in front of a crowd of fans. Aspiring rappers either post their rhymes as text or use cheap online editing software to create tracks and rap over it, then they post the track on websites like HipHopPoetry.com or RapFlava.com hosting "battle boards".

WHY WOULDN'T A SMART LABEL MARKETER SET UP A SITE FOR ASPIRING RAPPERS TO DO BATTLE WITH AN AN ESTABLISHED ARTIST?

Read  the entire article here.

RealNetworks Exceeds 1 Million Subscribers

(CelebrityAccess MediaWire) -- RealNetworks, Inc. now has more than 1 million subscribers to its premium subscription music services, including its Rhapsody service and commercial-free Internet radio services. "We've now crossed a critical mass milestone in digital music," said Rob Glaser, chairman and CEO of RealNetworks. "By offering consumers the best way to get unlimited legal access to digital music, we have the #1 digital music subscription business in America. Now, we're accelerating our growth by working with partners such as Comcast to make it really easy for consumers to get Rhapsody in entirely new ways."

RealNetworks total revenue for the first quarter of 2005 was approximately $76.6 million. This compares to the company's previous first quarter revenue guidance of $73 million to $74.5 million and represents an approximately 27% increase from $60.4 million in total revenue for the first quarter of 2004. This result also represents a record quarter of revenue for RealNetworks.

RealNetworks will hold a press conference to unveil a revolutionary new initiative in digital music and a free concert featuring multi-platinum recording artists Good Charlotte at Radio City Music Hall in New York on April 26. --Bob Grossweiner and Jane Cohen

Toyota Understands The Importance Of Music In People's Lives

According to Digital Music News "Toyota is working on a next-generation wireless platform for future car models, with music playing an integral part. The new system, which expands on a concept created by GM's On-Star, is designed to offer drivers safety, directions, and a host of entertainment options...The system will also give drivers access to an immense library of music, with Toyota pointing to a 10,000 song celestial jukebox. According to company plans, tracks can be sampled up to three times for 40 seconds prior to purchase. That could revolutionize the automobile listening experience, with karaoke one easy lure for Japanese consumers. Currently, the system remains in R&D, with no hard release dates announced."

Cell Phone Use To Double To 3 Billion By 2010

Just in case you ever doubted the importance of the music industry working aggressively with cell phone manufacturers and cell service providers, Gartner Research has released a report predicting that the number of mobile users worldwide will double from 1.5 billion people to more than 3 billion people by 2010. 

Now that's a growing market!

Universal Offers Tracks Via Verizon Ringbacks

Digital Music News reports that, "Verizon has taken the ringback concept one step  forward, incorporating over 500 tracks from Universal Music into its existing service. Ringbacks, which replace the tone that callers hear while waiting for pickup, are currently offered by Verizon in Southern California and Sacramento. The new catalog addition will cross several genres, including rap, metal, alternative, and pop, with customers encouraged to download multiple tones for different callers. The tones can be downloaded from a ringback-specific site on verizonwireless.com, or users can grab tones via text messaging. Verizon offers the tones for $1.99, on top of a $.99 monthly fee.

Infinity Radio Embraces Content Rich Mobile Phone Broadcasts

From Digital Music News: "Terrestrial radio continues to eye mobile opportunities,and  with Infinity Broadcasting the latest to announce an initiative. The conglomerate stepped up discussions on its "Visual Radio" offering, following news that rival radio giant Clear Channel is also moving into the mobile space. Infinity pointed to information-rich, mobile-based radio broadcasts, with consumers viewing text data like song titles and artist names alongside streams."

"Visual Radio will update current one-way broadcasts, with HP helping to power a backend that encourages user interactivity. Purchasing opportunities will involve concert tickets, ringtones and mobile music downloads, with radio station promotions also likely to receive big tie-ins. Discussions with carriers are ongoing, though deals are yet to be finalized. Nokia is expected to rollout compliant devices by mid-2006, a target date for the service launch. Infinity, a division of Viacom, currently controls a network of over 180 radio stations."

Record Labels Turning to Cell Phones for Digital Music Profits. LA Times Reports On Motorola's New Non-Apple Music Phone Inititative iRadio.

CNet and Digital Media Wire report that, "...major record labels, frustrated by Apple's reluctance to negotiate on price points for songs on its iTunes Store or license its technology for rival MP3 players, are now looking to the cell phone market as a potentially more lucrative market for digital music...Apple CEO Steve Jobs has reportedly rejected record label appeals to charge less than 99 cents for catalog titles while increasing the price for new releases, and has rebuffed calls to open its FairPlay security technology so that songs purchased on iTunes can play on devices other than the iPod.

"We hate the current situation," one top record industry executive said.. "No record company by itself can basically tell Steve Jobs, 'You're not going to get our catalog unless you open up FairPlay to Microsoft.' We can't do it together."

"The labels recognize that many more cell phones than iPods are in circulation, and that wireless carriers are more open to a staggered pricing scheme. Likewise, carriers have been reluctant to subsidize a recent Motorola phone that would have let users upload songs purchased on iTunes from their PCs -- sidestepping potential revenues from the cost of downloading those same songs over their networks. "Carriers subsidize phones and features when they drive network usage," Iain Gillott, a wireless industry consultant, told News.com. "Yet here was a phone that I was supposed to sync to my PC so I could buy music from Apple. Why would the carriers subsidize that?"

HYPEBOT: Today's LA Times reports on Motorola's newest music phone initiative that bi-passes Apple entirely. Read the article here.

Read the full CNet article here.

U2's Smart Use Of Text Messaging

From MediaPost's Online Spin: "This past weekend I was lucky enough to see U2 play a sold-out show in San Jose. If you haven't seen U2 in the last few years, you need to do so immediately!...During the show, Bono dedicated some microphone time to the topic of human rights, and as part of their desire to raise awareness for this timely topic, they asked everyone to take out their cell phones and text message their names to the number 86483 to be added to a petition of people who pledge their support to improving human rights around the globe. Bono stated they were looking for 1 million names and when I looked around the arena I think it's realistic that they'll get it."

"The cell phone is now as ubiquitous, and as useful at a concert, as the lighter was in the '80s. What's more, 20 minutes later, the names of the people who had texted themselves was scrolled across the big screen hovering over the band, allowing the crowd to see their names in lights and tied forever in the image of their minds to that show. As one of the people who saw his name in lights, I can personally attest that the experience was fantastic and a one-of-a-kind feeling. It allowed me to connect with my inner rock star, if only for a brief moment. Of course, I could go on and on writing a review of a U2 concert, but as those of you know from reading what I write, this article is not about my obsessions with rock and roll; it's about human behavior and the implications these behaviors have on advertising."

"That night I witnessed just how integral the cell-phone has become and how second thought it is for people to text message. I only started texting heavily about six months ago, but I am now an addict. In our hectic, cluttered lives, texting allows you to say your peace, make a connection, and get back to what you were doing without all of the niceties....That night, after my name was scrolled for the world to see, I received four text messages from other people in the crowd who'd seen my name in lights and wanted to say 'Hi.'... Our society is moving in this direction of immediate response - quick and concise information sharing, and continuing to allow the audience to be in control of the experience..."

"...Seth Godin wrote about permission marketing more than six years ago and his idea is still central to where advertising is headed. Just because you build it, does not mean they will come. You can build it, and then ask me if I'm interested in it, and then I'll come. If you are developing text messaging campaigns, keep this rule of permission in mind and maybe you will be as effective as Bono and company...".

Cory Treffiletti is the senior vice president, managing director at Carat Interactive San Francisco.

Read the full online column here.  (Free sign-up may be required.)

SMART PRE-RELEASE PROMO: Cingular Wirelss To Debut Songs As Ringtones Before Radio

The HollywoodReporter.com writes that "Cingular Wireless will debut new music singles from top artists as cell phone "ringtones" on its network before those songs make their traditional radio debut..."

Cingular said it will launch the "Cingular Sounds" program with the new Coldplay track "Speed of Sound." The song does not release to radio until April 18 and the band's new album is not due until early June..."

"...The global ringtone market is estimated at around $3 billion. Cingular, a venture of SBC Communications and BellSouth, is the largest U.S. wireless carrier. It said last month it had reached 50 million subscribers. The company sells ringtones for $1.99 to $2.49."

What Is The Next Digital Musi Industry Hit ?

From DigitalMusicNews.com Editor Paul Resnikoff: "Ask Clive Davis about success in the music business, and he'll talk to about making hits. Big smashes, the kind that grow moss at the top of the charts."

"Davis, one of the most successful figures in the industry, has crafted countless careers by stringing together a series of smash songs. Whether it's The Beatles or 50 Cent, big hit songs have been a major part of this industry, perking ears and opening wallets..."

"...So how does this relate to new music distribution technologies? The digital music industry is also tremendously hits-driven, with the killer app taking the place of the #1 smash song. What are the big technology hits so far? The mp3 codec, the original Napster P2P file-sharing network, decentralized sharing after that, ringtones, and the iPod are all major hits in this early business..."

"...Within the context of the iPod, iTunes can be considered a technology hit, facilitating...nut as a stand-alone service, paid downloads have yet to catch fire. Apple recently pointed to 300 million downloads, but those levels are simply dwarfed by P2P sharing volumes. Other digital delivery options, like the Rhapsody subscription service, have also failed to catch fire, still smoldering with the promise of future success."

"Ask any A&R veteran, and you'll find out that hits often come out of nowhere.. The same is true in digital music, with applications like the original Napster experiencing a similar path to glory. Now, several new technologies could be poised to pop, including portable subscription downloads, satellite radio, mobile music videos and mobile full song downloads. Theoretically, all of those technologies make great sense, offering consumers lots of convenience, fun and access..."

"But coaxing the kind of consumer frenzy that surrounds formats like ringtones is tricky business, with the value proposition not always obvious or predictable. That certainly keeps things interesting, with the next big hit potentially a big surprise."

Sony Fights The iPod Wave With New Walkman

Sony is finally fighting back against the iPod's market dominance with it's long overdue NW-HD5 Network Walkman. 

But will anyone care?

The world got an unauthorized advance look last week thanks to some detective work by engaget.com.  See some comparison photos here and some lively debate ensued.

What took you so long Sony-san?

Motorola Goes Silent On iTunes Enabled Phone

The Associated Press reports for some reason Motorola abruptly changed course, "...just as it was going to unveil a new cell phone featuring the iTunes music download service from Apple"

"Motorola initially said it acted alone, then quickly pointed to Apple, citing the computer company's long practice of never unveiling new products until they're actually available to buy."

"Many industry players, however, suspect that a wireless service provider intervened, essentially telling Motorola that, 'I'll be darned if I'll sell your phones to my customers if it means they can buy songs through Apple and Motorola without giving me a piece of the pie."

"...The rush is on to deliver music and video to mobile phones, with wireless providers and device makers jockeying for position to grab their share of the payday, all parties mindful of the surprising billions being spent on musical ringtones."

Radio @ AOL Cuts Cingular Deal

America Online has reportedly cut a deal with Cingular Wireless to deliver it's 200 format broadcast stream to telephones before the end of 2005. 

US Music Marketers Could Learn From UK

I'm on the way back from the ILMC (International Live Music Conference) in London and during this, my second brief visit to the city, I was struck by how much more pervasive and creative music and music marketing is throughout the British media than in the US.

Most US industry pros are familiar with the numerous live performance opportunities for music on British TV as well as the diverse Indy label and club scenes.  But I was stuck how much farther the Britts also seem to take their music marketing than we do in the US. 

At least three of the daily papers we're giving away great 10 or so track sampler CD's stuffed inside their expansive entertainment sections.  One featured mostly new music (The Killers, etc) where as another was more thematic - pop crooners if I remember correctly - and features a bunch of classic tracks by the like of Dobie Grey and Chaka Kahn.

A sizable upstart cell phone provider named 3 has centered their entire marketing pitch around the ability of their network and phones to deliver music (in the form of mp3 downloads and streaming full length videos) and sports (news and videos of game highlights) to subscribers.  In fact, later this month they are streaming an entire concert by up and comer Natasha Beddingfield exclusively via the 3 mobile network.  I don't know how many people will actually watch a full concert on their phone, but it certainly seems like a win for all concerned promotionally.  Wouldn't it make sense for some savvy US provider (T Mobile?) to target this same market and for US labels and artists to trade content for direct to consumer exposure?

At the ILMC I also heard a lot about efforts to improve the fan experience (much like what we're hearing about in the US from Clear Channel) including providing (and charging for) value added services that go beyond the usual premium seating to a things like a ticket that includes an InstantLive post concert CD's or downloads.  Floated was the idea of exclusive pre-show backstage video delivered to ticket holder's mobile phones in the lead up to the performance or during breaks.

The overall result in the UK seems to be that music is a much more pervasive and important part of daily life than it us in the US.  To try to achieve that here, it seems that US music marketers could learn a lot just by looking across the pond and around the world.

Labels Still Blaming P2P

It seems as if the major labels will never stop blaming piracy for all there woes.  Acording to FMQB "Sony-BMG CEO Andrew Lack said the music industry is still on shaky ground because of Internet piracy while speaking at a Billboard magazine conference on Thursday. "It's devastating our business," he said. "Until we attack piracy, there is no growth model and no stability."

"The New York Daily News reports that while iTunes and rising music sales to cell phones have given the music business reason to be optimistic, Lack said that is still only a tiny fraction of the industry. CD sales in the U.S. did begin to recover last year, but they are down 11 percent so far this year. Sony-BMG is working on boosting sales with the new DualDisc technology, which features a CD on one side and a DVD on the other. Lack also is pushing Sony-BMG into the movie and television business, looking for productions to pair with the company's artists. "We have three to four projects," he told the Daily News."

"Meanwhile, Lack and many others in the entertainment business are waiting as the Supreme Court prepares to hear a case against Grokster, claiming that the company is responsible for the illegal actions of its users since Grokster makes file swapping software. As FMQB reported in January, P2P companies have already won earlier battles in lower courts, including last August when the 9th U.S. Circuit Court of Appeals ruled that they were not at fault for their users' actions in breaking copyright laws."

Enough already. Illegal downloads cost the major labels a lot of money. But it exists and it's not going anywhere.  Instead of embracing technologies and concepts that monetize P2P and untilize incredible it's promotional power, the suits and bean-counters keep closing their eyes to the truth, remember past glories and sue individual downlaoders. 

What about investing in better A&R and more creative marketing?

VIRGIN RADIO STREAMS TO CELL PHONES

From The Times of London: "Virgin Radio yesterday became the first commercial British station to be heard around the world by listeners on the move, as it made available software allowing the station to be picked up on mobile phones."

"The move is the latest step taken by the SMG-owned station — the target of a £100 million hostile bid — to reverse the decline in listening on its traditional AM channel by broadcasting over the Internet and third-generation mobile. Other radio stations are expected to follow suit..."

"'Less and less people are tuning in to AM, but we can see platforms that are replacing it. Obviously digital radio sets are one way, but this is another useful way of getting audience,' James Cridland, head of new media at Virgin Radio, said."

"Over the past five years, Virgin Radio has lost about 40% of its listeners as the public has begun to shift away from the poorer quality AM to FM and digital services... However, Internet broadcasting has worked well for Virgin Radio; the flagship station claims a reach of 1.03 million listeners in February, making it the 'most listened to online radio station in the world'."

Read the full article online here.

Radio Fights Back

Traditional broadcasters are exploring the use of a new weapon in their fight against satellite and Internet radio.  Reuters reports that "several leading U.S. radio operators are considering forming a cooperative national network tapping new bandwidth freed by emerging digital technology that would compete with increasingly popular satellite radio offerings, according to industry executives. Such cooperative programing would enable broadcasters, who are moving to convert stations to high-definition digital radio, to offer diverse formats not currently available on traditional AM and FM stations at lower prices than satellite radio, industry experts said."

"High-definition digital radio provides CD-quality song and traffic data and will ultimately allow broadcasters to deliver up to eight more channels over the same amount of spectrum."

"Entercom chief executive David Field told analysts last week... that there was an opportunity for either a profitable subscription-based or ad-supported network. 'Envision a scenario in which a group of radio companies would form a consortium and roll out new channels on a collective national basis,' Field said. Such an effort would also 'deflect the appeal of other radio services that are in the marketplace,' he said. 'There will be conversations within the industry... on formulating the best strategy to deploy that (additional) bandwidth,' Field said during the conference call."

But why not also aggressively explore Internet broadcasting and broadcasting to cell phones?  Perhaps station are just more comfortable working to add these side channels because it feels more like regular broadcasting even though a new $600-$1000 receiver is required to hear them?

Let's say it again...with the advent of flat rate wireles broadband on your cell phone Internet based radio is the future.

Read the full Reuters article here.

A Media Hub For The Car

From FMQB.com:  "The demand for multi-media access in cars is rising as nearly 12 percent of vehicles currently have screens for viewing DVDs or other data. Alpine Electronics estimates that this number will rise to 50 percent in just five years, and the company is responding with a new device called the Vehicle Hub, according to Business 2.0. The Hub will be released this month, and the device not only links up with satellite radios and iPods, but it also allows passengers to simultaneously watch two different movies, and in the near future, different television channels. The Vehicle Hub will retail for $299."

"But Alpine is not the only company getting involved in the car entertainment game. Comcast, Microsoft, Sirius and XM are all banking on cars becoming multi-media hubs. XM's NavTraffic service, which will become widely available this spring, feeds real-time traffic data into a driver's Global Positioning System and offers alternate routes. Sirius has promised a similar product, and in January it partnered with Microsoft to license Windows Media software, which will allow Sirius technology to deliver satellite video to cars. Comcast also is on the same track, as the company is working with mobile electronics firm Delphi on a video service. One idea is that Comcast programming could be sent to a subscriber's home computer, and then downloaded to a Delphi in-car hard drive. And later this year, RaySat will release an antenna capable of delivering both Internet access and satellite TV to cars."

"Business 2.0 says that by 2020, roughly 9 million cars are expected to be sold each year with broadband access. By then, consumers could spend an estimated $7 billion annually for satellite navigation hardware, rear-seat entertainment systems, and other multi-media products."

Germany's MotorFM Might Just Be The Future Of Radio

For some time now we have envisioned the the future of "radio" as thousands of niche stations programmed by creative and knowledgeable music lovers streamed to homes and offices via broadband and portably to cell phone based devices. An in recent weeks there have been a flurry of announcements and partnerships from cell phone makers and providers as well as a variety of tech companies that all point in this same direction.

Now comes Germany's MotorFM which appears to be the the first real word example of how these various emerging technology can transform broadcasting.  According to Wired.com, "MotorFM is determined to transform radio in Germany, and it thinks it has the tools to do it: MP3 downloads and songs streamed directly to mobile phones. "

"The first step has seen MotorFM, launched Feb. 1, abandon on-air commercials in favor of generating revenue from MP3 downloads and targeted sponsoring of its programming. The next step will be streaming audio directly to 3G cell phones and letting listeners pay for downloads by SMS text message. "

"...Focusing on hip alternative rock and electronic music, the station was founded  by three former music executives who profess a real love and knowledge of music: Tim Renner and Markus Kuehn both worked in senior positions at Universal Music, and Mona Rübenstein founded MTV Germany."

"We left because Universal and MTV don't support any good music anymore. They're boring," said Kuehn, who was marketing manager of Universal's German division."

"In the short term, we don't think that the downloads will be able to finance the station -- maybe in two or three years -- but that's why we have sponsors," said Kuehn. "However, there are some interesting technological developments coming on stream. Listeners will be able to get downloads of music direct to their cell phones or get an audio stream on the phone at the touch of a button."

"Media analyst Tim Crook at the University of London said MotorFM's proposal is "an interesting and alternative way to fund radio broadcasting -- the internet streaming could fund the analog music output, but this is only feasible if the music with an anticipated demand is only available on a pay-to-listen basis."

"Ultimately the station will become an advertisement in its own right: If listeners hear a song they want to buy, they simply send an SMS text message from their phone and the song will be downloaded, either to an account on the MotorFM website or to the cell phone itself."

Read the full Wired.com article here.

NET RADIO & MUSIC ON CELL PHONES

From FMQB.com "...Yesterday, Motorola introduced iRadio, a new service that will allow Internet radio to reach mobile phones. The iRadio technology fine-tunes existing media-ready mobile phones and allows them to record select Internet streams (XM, Sirius anyone?) when connected to a personal computer. Music from participating download services can also be transferred to iRadio ready phones. Once the phone leaves its PC dock, the contents can be listened to through headphones or through a car stereo system equipped with an iRadio Bluetooth adapter. Motorola also introduced a mobile phone that will store and play music, using Apple's iTunes Music Player. iRadio trial versions will begin in a few months, with the fourth quarter of 2005 targeted for mass release."

"In March, the world's sixth biggest mobile phone producer, Sony Ericsson, is set to launch digital Walkman phones. While some Sony Ericsson mobile units already have a digital music player, the new version will contain more music features, including a significant amount of memory to store songs imported from a variety of devices and have access to Connect, Sony's digital download service..."

"Also on the slate for this year, the world's leading phone maker, Nokia, has announced a deal with Microsoft that will allow music to be loaded from a PC to mobile units. Using Microsoft's Windows Audio, the Nokia mobiles will allow for a download from a PC or from a wireless phone network. The model that Nokia unveiled with this capability has a gigabyte of storage, which is one-quarter of an iPod Mini’s capacity. The company also cut a deal with Seattle-based Loudeye Corp. for a download service..."

READ THE FULL ARTICLE HERE.

P2P File Sharing On Your Cell Phone

Melodeo a developer of mobile music delivery technology, announced on Thursday that it has developed a new peer-to-peer mobile music sharing service, that lets cell phone owners send purchased tracks to one another over Bluetooth connections. The service will let the recipient listen to a 30-second sample of a track sent over Bluetooth, and then purchase the full track -- with Melodeo sending a decryption key over the carrier's network to unlock the song and billing the purchase to the recipient's cellular account. Seattle-based Melodeo also lets users purchase and download track to their own cell phones. The company said it will initially launch the new music-sharing service in Europe during the first quarter.

RINGTONES SALES WILL SURPASS HALF BILLION MARK

Performing rights organization BMI, which represents more than 300,000 songwriters, predicts that retail sales of cell phone ringtones in the U.S. this year will surpass $500 million, up from $245 million in 2004 and $68 million in 2003. The organization, which has processed over 150 million ringtone sales since entering the market in 2001, said it based its projection on census-based sales data aggregated from 225 mobile entertainment retailers. "We see the growth trend in ringtones and mobile entertainment continuing through mid 2006," said Richard Conlon, BMI vice president of business development. "We believe that the market will double for the ringtone sector alone. Any revenues derived from the ringback-tone services and mobile subscription music services, which have just begun to roll out in the U.S., will be incremental."

Digital Music Forum Announces Keynotes

This year's Fifth Annual Digital Music Forum has announced its keynote speakers for the conference, which will be held March 2 in New York City. Opening the event will be a keynote speech from Terry McBride, CEO/founder of music promotion and management firm Nettwerk. Also giving a speech will be David Goldberg, VP/GM of Yahoo! Music. Featured interviews will include with Shawn Fanning, the founder of Napster who is now Chief Strategy Officer and founder of digital music rights software company Snocap, as well as with Mike Conte, GM of MSN Marketplaces. Among the other speakers involved in the all-day event will be executives from EMI Records, Sony/BMG, Warner Music, Napster, Billboard, Universal Music Group, the RIAA and many more. Further information on the Digital Music Forum can be found here.

THE ORCHARD AND EMUSIC GO WIRELESS

The Orchard, a large distributor of independent music owned by Dimensional Associates, announced on Monday that it has licensed portions of its 300,000-song catalog to eight mobile services, which will in turn offer them as master ringtones to their customers. The deal will license The Orchard's content to Dwango Wireless, Zingy, 9 Squared, HIFI Ringtones, IAM Mobile, Securycast, Arvato Mobile and Hudson Soft. In addition to tracks from artists ranging from Beck and Coldplay to Ravi Shankar, the agreement includes comedy tracks from Jerry Seinfeld and George Carlin. Additionally, New York-based Dimensional Associates announced the formation of Dimensional Mobile Entertainment (DME), a new unit that will focus on mobile media through development and acquisitions. DME plans later this year to launch an eMusic Mobile service, offering a single subscription to its eMusic catalog for both PC and mobile usage.

Cingular and Sony Join For Hip Hop Talent Search

Cingular Wireless said on Thursday that it partnered with Sony Ericsson and Sony Urban Music on a hip-hop artist talent search that will include the chance for finalists to perform alongside hip-hop artist Xzibit on his upcoming national tour. Selected finalists who submit an original song will have their track converted into a ringtone that Cingular will distribute, asking subscribers will vote for their favorites via text-message.

Full Length Songs On Your Cell

Chaoticom, a provider of mobile music download services, announced on Thursday that it has signed a license agreement with major record label EMI, to offer full-length song downloads of 200,000 tracks from EMI artists to cell phone users. The deal now gives Massachusetts-based Chaoticom's agreements with all the major record labels for mobile music delivery. The company's service is currently available to 24 million European wireless subscribers through carriers Eurotel, Orange, Pannon and Telenor.
http://www.chaoticom.com 

MTV & VH1 GO MOBILE

From FMQB: MTV Networks, which controls MTV, VH1, Comedy Central and Nickelodeon, has struck a deal with Verizon Wireless to deliver television programming to cell phones. MTV Networks will launch 3G (third generation) video programming in conjunction with Verizon's launch of its broadband EV-DO service in February, according to the New York Daily News. MTV plans to take shows like VH1's Best Week Ever, for example, and customize it for cell phone users.

"Consumers are increasingly incorporating wireless content into their daily lives and MTV Networks will extend our reputation for creating compelling programming into the wireless world in even bolder new ways," said MTV Networks CEO Judy McGrath."

"In addition to this new venture, MTV is also expanding its ringtone business. The Daily News says that MTV plans to unveil a service called "Made Hear" which offers original ringtones. The network also is creating an album featuring original ringtones created by Rap producer Timbaland. And VH1 just launched a mobile content store where users can buy thousands of popular ringtones as well as exclusive pop culture wallpaper images."

Hypebot Is Seeking Nominations For 2004's Top Campaigns, Trends, and Products In Music

As the year draws to a close we're seeking nominations for a list of the top campaigns, trends and products shaping the music industry in 2004-2005.

Nominations are being accepted in two categories: Big Budget Campaign, Trend Or Product and Small Budget/No Budget Campaign, Trend Or Product.  “We know that big money and major labels are often not the driving force behind new and powerful trends and it’s time that the underground and independent innovators get honored too,” say Hypebot.com founder Bruce Houghton of Skyline Music.

Up to ten nominations per category should be emailed to nominations@hypebot.com prior to January 10^th.   Ten winners in each of the two categories will be chosen by Hypebot and panel of industry professionals and will be announced before the end of January.

Hypebot Is Seeking Nominations For 2004's Top Campaigns, Trends, and Products In Music

As the year draws to a close we're seeking nominations for a list of the top campaigns, trends and products shaping the music industry in 2004-2005.

Nominations are being accepted in two categories: Big Budget Campaign, Trend Or Product and Small Budget/No Budget Campaign, Trend Or Product.  “We know that big money and major labels are often not the driving force behind new and powerful trends and it’s time that the underground and independent innovators get honored too,” say Hypebot.com founder Bruce Houghton of Skyline Music.

Up to ten nominations per category should be emailed to nominations@hypebot.com prior to January 10^th.   Ten winners in each of the two categories will be chosen by Hypebot and panel of industry professionals and will be announced before the end of January.

Music Choice & Sprint Create Mobile Phone Music Channel

Music Choice and Sprint have luanched a music subscription service designed for mobile phone users complete with video and programmed channels. This is the first music streaming service available to U.S. mobile consumers. Music Choice president and CEO David Del Beccaro said that the service was designed so that people who might only have a few minutes at a time can enjoy it. Subscribers choose from a variety of music genres plus news, gossip, live performances and other content produced by Music Choice. Music Choice joins streaming audio and video from such sources as NBC, CNN, ABC, Fox Sports, the Weather Channel, Discovery, E! Entertainment, mFlix, 20th Century Fox, and the Cartoon Network.

Jupiter Says Sunscription Services Will Outpace Downloads

(From CelebrityAccess Media Wire) JupiterResearch's latest survey on digital and online music, Consumer Survey Report: Music, 2004, which is based on a survey of over 2,300 online adults and also compares results with a survey of over 2,100 online teens, ages 13-17, strongly supports two critical JupiterResearch forecasts: subscription services will eventually outpace à la carte downloads and CDs will not be replaced by digital music any time soon in the next five years, and subscription services will eventually outpace à la carte downloads. Indeed, even in 2009, digital music sales will represent just 12% of consumer music spending.

The majority (51%) of online adults, 51%, think physical music is more valuable than digital. "They should," said JupiterResearch VP and Senior Analyst David Card "CDs offer higher sound fidelity, aren't burdened with awkward copy protection and are compatible with pretty much every way people listen to music. MP3 players and portable rentals could turn around that value perception, but it will take time.

While 16% of online adults are interested in downloading a 99-cent single, 17% are tempted by subscription services. Interest in subscription services increases for teens ages 13-17 (19%), nearly doubles for young adults ages 18-24 (31%), and hits 37% for the music aficionados, those who have spent more than $45 on music in the past three months and engage in digital music activities on a regular basis, who are the best customers for digital music.

"Digital music is a young person's game," said Josh Green, analyst at JupiterResearch. "Forty one percent of 18-24 year-olds rip burn CDs and 321% use file-sharing. For the over 25 crowd, those numbers are only 14% and 4%."

In its "Market Forecast Report: Music, 2004 to 2009," JupiterResearch forecast that digital music sales will more than double compared to last year, reaching more than $270 million in 2004, and will grow rapidly to $1.7 billion in 2009, totaling 12% of consumer music spending. While digital music will return the U.S. music industry to growth after four years of steeply declining sales, digital music still will not replace CDs or bring music sales back to its 1999 peak. --Bob Grossweiner and Jane Cohen

Net Radio On Your Cell Phone Getting Closer

In the kind of technological advance that we have been predicting that will lead internet radio on your cell phone ComputerWeekly.com reports that Cingular Wireless plans to offer 3G mobile data service in a number of U.S. cities next year and in most major U.S. markets by the end of 2006.

"The service uses UMTS technology to deliver average data speeds between 400Kbps and 700Kbps, according to the company..."

"The UMTS service will allow subscribers to use data services and make phone calls at the same time. Cingular envisions 3G applications such as high-speed mobile Internet, enterprise productivity applications, audio and video streaming, high-resolution image capture and playback and multiplayer online gaming... Cingular currently offers nationwide data services over a GSM network with speeds as high as 135Kbps."

Read this full story from Computer Weekly here.

Fox Launches Digital Music Store

Fox has made the move to digital music sales by launching its own online music store. Like Apple's iTunes, FoxMusic.com will sell downloads from its catalog of songs and TV and film scores for 99 cents per track. The site also offers ringtones of its music that cell phone users can order and download directly to their phones.

"This is an opportunity to see if for a little investment we can start a viable digital business and not simply cede all of our distribution," Fox Music's Robert Kraft told Variety.

The studio will make available nearly all of its themes and original songs for which it has been able to maintain the rights. The catalog currently consists of roughly 10,000 tracks.

The new online store, built and managed by Navio Systems, also allows Fox to cross-promote its other products, such as DVDs and books, via an accrued point system.

Eminem Offers Free Ringtone Incentive

Mobile entertainment publisher Mobilss said on Tuesday that the double-disc collector's edition of rapper Eminem's album "Encore" will include a link to a free downloadable cell phone ringtone of the single "Just Lose It." The CD will employ Infotects' CDKey technology to unlock the bonus material.

http://www.infotects.com/cdkey_index.htm 

http://www.mobliss.com 

http://www.eminem.com/shadychristmas

Cell Phones As Portable Music Players

FMQB Reports: "This week in Europe, mobile phone company Vodafone launched a new mobile phone music download service that is powered by Musicwave. The company is confident that droves of people across Europe will soon find it natural to use their cell phone as a music store and portable music player, but they're not so sure it will catch on in the U.S..."

"Obviously, a lot more people use cell phones than use iPods or other portable digital music players. But the U.S. market for digital music remains dominated by computer-based programs. A handful of music services for cell phones have been launched, notes CNet, but these largely involve downloading music to a PC and then transferring it to a phone. But in Europe and Asia, cellular carriers and record labels see Internet-connected, multimedia phones as a more advanced Walkman that will make it easy for people to impulse-buy music at any time."

"...Some of the problems that are holding up the cell phone music market in the U.S. are network capacity, digital rights management and the lack of phones that can handle storing the music."

Read the entire story here.

Napster To Go: Music For Your Phone

The Hollywood Repoter writes: "For the first time ever, music fans can put music from a subscription on their mobile phone following Napster's announcement Wednesday that its Napster to Go service is available for those who use the new AT&T Wireless-based Audiovox SMT5600 Smartphone. Napster to Go
subscribers will be able to transfer and play an unlimited number of full-length songs to their Smartphone at the standard monthly price of $14.95. "Napster was the first service to make the promise of the portable subscription model a reality, and today we are taking that innovation to the wireless marketplace," Napster chairman and CEO Chris Gorog said, adding that the new capability "furthers Napster's mission to provide music lovers with the ability to conveniently enjoy the most comprehensive digital music experience available."

FUSE TV AND AMERICAN GREETINGS PLAN JOINT MUSIC PROMOTIONS ACROSS VIRTUALLY ALL COMMUNICATION PLATFORMS

Fuse, the nation's only all-music, viewer-influenced television network, and AG Interactive, the new media subsidiary of American Greetings Corporation, have announced their intention to jointly develop, distribute and market an interactive music experience, delivering content through virtually all communication platforms.

The alliance represents an opportunity for U.S. wireless carriers, handset manufacturers and advertisers to tap into Fuse's powerful audience of tech-savvy young adults, the fastest growing segment driving the exploding wireless marketplace. It also signals the strategic extension of Fuse's convergent music programming philosophy that has made a leading network in concentration of 12-34 year-old viewers and number one among mobile phone-owning teens.

One example of the plan which is already in place is Fuse's "Daily Download" television show, where viewers are rewarded with a special word of the day -- called the "D" word -- which they plug into the Fuse website receiving free, legal music downloads for their PCs, and soon ringtones and wallpapers for their mobile phones.

To drive the promotion to a broader audience, Fuse and AG Interactive partnered with Tower Records to engage consumers through their U.S. retail storefronts and leading online presence. The "Daily Download" promotions feature on-air appearances by acclaimed recording artists, such as Usher, Metallica, Eminem with D12 and Good Charlotte, giving Fuse viewers access to the artists' music through free downloads to their computers and wireless phones. It also gives consumers access to other unique content through television offers, the Internet and music retail.

By year's end, Fuse plans to explore wireless applications for all of the network's original interactive programs. Some potential features in development include music video dedications, photoblogs, text messaging, voting and polling, video game demos, music news alerts, local market concert and event updates, and special promotions.

CD's For Cell Phones But @ A Hefty Price

From ZDNet News: "Singer Robbie Williams' greatest-hits album arrives in music stores Tuesday, as well as some phone shops, marking a first for the United Kingdom: It will be released, pre-loaded, on a mobile memory card.

"The album will feature video content as well as a 'CD-quality' version of the album...

"While a CD copy will cost about $16.22 from online outlets, the preloaded card will cost about $54.13.

"Carphone Warehouse and Williams' record company, EMI Music, are currently negotiating the release of further albums in time for the lucrative Christmas period."

hypebot: And they wonder why people pirate music?

Read this entire article online here.

Stream Your Home Music & Video Collection To Your Cell?

Associated Press reports that "in a move sure to raise the eyebrows of Hollywood and its partners, a California startup will unveil a service Monday that allows subscribers to remotely access their digital media files - even watch live television - from any gadget with an Internet connection."

"Want to watch your HBO while waiting at the doctor's office, or use your cell phone instead of a portable music player to listen to songs from your home's digital jukebox?" asks AP.

"The technology from Orb Networks Inc., based in Union City, grabs a user's music, video, or photo files stored on their home PCs and streams them to Web-enabled devices such as cell phones, laptops, or personal digital assistants. A user's cable or satellite TV can also be accessed as long as the video output is somehow hooked up to a home computer network.

"Orb contends any files on a user's PC - including copy-protected ones, such as songs downloaded from Apple Computer Inc.'s iTunes Music Store, or films from online movie service MovieLink - will be playable on-the-go through their service."

This level of protability and personal control is a concept that Hollywood and other content providers have fought in the past. In the end, however, consumers have often won this battle by refusing to buy products that take away their control. Video tapes, cassettes, and recordable CD's and DVD's are all examples of the consumer eventually getting what they want - sometimes at the possible expense of the content's creators.

While Hypebot can hear the howls echoing down Sunset Boulevard as we write this, it's only a matter of time until the definition of portability includes streaming to locations and hip pockets near (or right on) us all.

CELL PHONES: THE FUTURE OF PORTABLE MUSIC

MP3.com (a remade Cnet owned site that shows a great deal of potential) columnist Eliot Van Buskirk has written a good overview and commentary on the future of music via cell phones.

Here is an excerpt:

"We covered a lot of ground that day, but one thing Foreman (of real Networks) said really took me by surprise. He said that as early as next year, the bottom could fall out of the MP3 player market. Why? Because people will use cell phones to listen to their music instead, Foreman said.

My reaction was similar to the one you're probably having right now: "Yeah, right. Keep dreaming, dude." Aside from the fact that people love their iPods too much to replace them with phones, his idea violates one of my central theories about portable electronics -- that people will end up carrying two devices, because they need two different batteries. My reasoning is that you wouldn't want to watch movies and listen to music to the point where your battery dies, thus rendering you out of reach of your coworkers, friends, and family. In other words, you need one portable for fun and another one for the more serious stuff of life.

But as we talked Foreman's idea through, I saw that it had some merit. Besides, several phones already support MP3."

READ THE FULL COLUMN HERE.

AT&T Wireless Opens Mobile Phone Music Site

The convergence of various technologies and digital devices continues as HollywoodReporter.com reports that "AT&T Wireless launched its mMode Music Store today, marking the first time U.S. consumers can discover, sample and purchase music using their appropriately sophisticated mobile phone. The store was built in cooperation with digital media solutions company Loudeye using Microsoft Windows Media Series and Windows Media Digital Rights Management, and is designed to integrate with home computers. It offers a library of about 750,000 songs, each of which costs 99 cents. Purchased songs are downloaded to buyers' Windows PCs and automatically billed to their "choice of their regular monthly AT&T Wireless statement or credit card."

54% of Cell Phones Will Double As Digital Music Players By 2009

Cell phones capable of storing and playing digital music will grow to account for 54% of the global market by 2009, when high-speed 3G cellular networks are more widely deployed, according to a report from Boston-based market research firm Strategy Analytics.

The firm pointed to Nokia's 3300 and 5510 handsets, as well as Motorola's alliances with MTV and Apple to illustrate the growing interest in such devices. It also predicts that MP3 will remain a requisite format even on cell phones. "Music will be a 'bridesmaid' value-add mostly found on converged devices and high end camera phones until 3G services are more widely deployed," said Strategy Analytics analyst Chris Ambrosio. "Then, it is up to device vendors to make significant improvements in sound quality reproduction, storage capacity, wireless-fixed connectivity, and the user interface to make cellular music a broader reality."

Motown Tries Mobile Promo

Motown Records has tapped wireless community www.accessmob.com to promote four of their newest CD releases. In this campaign, consumers answer trivia questions using their mobile phones for the chance to win free music. Designed as an Urban Soul care package, this gift pack includes CDs from BadBoy Records, and new Motown artists like Donnie, Girl5 and R&B sensation, Latif.

As part of the campaign consumers enter their information on the website and can choose to receive trivia contests on their cell phone. Twice a week multiple choice questions are sent out, responses tallied up and the chosen winners receive their musical bundle through the mail. Motown’s mobile campaign started on August 30th and will continue until the 1,000 CD sets are completely given out.

ACCESSconcepts.

Japanese Music Companies Raided In Ringtone Scandal

Associated Press reports that "Japan's anti-monopoly agency raided several top record companies Thursday on suspicion they illegally blocked other firms from offering music ringtone services to mobile phone users. Fair Trade Commission official Toshihiko Oizumi said investigators suspect more than 10 companies violated Japan's fair trade laws by preventing the Japanese mobile phone operators from offering the service.

Sony Music Entertainment, Universal Music, EMI-Toshiba Ltd., Avex Inc., Victor Entertainment Inc. and Label Mobile Inc. were among those raided, said Oizumi. He refused to disclose all the record companies' names.
The allegations center around the lucrative business of letting mobile phones users download a hit song to play as the ringer, a service first offered in late 2002.

Record companies now hold a dominant share of the industry, estimated at 10 billion yen ($91 million) a year. They charge about 100 yen (90 cents) per song, which includes royalty fees. Downloading a music-only version of a song from phone operators costs 10 yen (9 cents)...Experts estimate that Japanese download some 300,000 songs a day to their mobile phones."

Madonna Adds Ringtones To Web Site

Proving again that she's smarter than most of us Madonna has added ringtones for purchase on her web site. OK, so everyone is jumping on the ringtone bandwagon. But Madonna goes one smart step further saying, "if you want these cool tones you must enter my web (site)" where she can tell them about toour dates and sell them swag. "The material...the material...the material girl."

Dowloading Track To Cell A Hit In Europe

Wired.com reports that, "the ability to download complete tracks directly over cell-phone networks to mobile phones is becoming a reality in Europe. O2 Music, the music arm of U.K.-based international telecom operator mmO2, has started offering songs for download in Germany and the United Kingdom.

The emerging trend of selling full-length songs directly to mobile phones in Europe has been triggered by better understanding and cooperation between mobile phone operators, handset manufacturers and record labels. In addition, the launch by year's end of the new third-generation networks is expected to give consumers a range of new services in which music downloads will play a major part."

hypebot: Why os he US music industry always behind the curve?

READ THE FULL ARTICLE

RCA Music Boosts Mobile Promo

Boost Mobile and Motorola have inked a with RCA Music Group that lets the former align with various RCA artists for grassroots marketing campaigns, launch parties and tours. The first such relationship is with Mario, an artist on RCA's J Records. Boost will host events around Mario's upcoming release, Here I Go Again.

Jarrod Moses, president/CEO of Grey ad agency unit Alliance, which put together the deal, said he will help Boost and Motorola choose other artists. "What we're doing on an ongoing basis is sitting down with RCA and matching up likenesses of what the brands need," he said.

T-Mobile UK Launches Music Downloads For Cell Phones

T-Mobile, the second largest mobile group in the Western world, today announces the launch of Ear Phones, introducing a totally new category in music, enabling customers for the first time to browse, download, store and play CD quality, digital music in their T-Mobile phones...

"Ear Phones is simple and rapid. With Mobile Jukebox, three clicks and you can browse and download. On 2.5G phones, download is approximately 2 minutes a mobile mix track. On 3G phones, it is around 30 seconds a mobile mix track... And, with Ear Phones, there is no second stage of transferring from PC or Mac to digital music player; no need to buy a separate digital music device...

"At current rates of sale and upgrade of customer handsets, T-Mobile conservatively estimates it will have sold over 1 million Ear Phones by mid next year, and over 4 million by end of 2006."

Read this press release online here.

Warners Music And Mobileway Partner For Ringtone Promo

WMG, MOBILEWAY USE INNOVATIVE MOBILE MARKETING FOR ARTIST PROMOTIONS
First Major Music Company To Use “Short-Codes” On CD Packaging In The U.S.

Warner Music Group (WMG) today announced a unique partnership with wireless entertainment and marketing company Mobileway to become the first major music company in the U.S. to incorporate wireless branding into its CD packaging.

Using five digit codes – known as short-codes – that will be featured on CD packages, album posters, artist web sites and online banner ads, consumers in the U.S. will be able to directly access ringtones from WMG artists in one simple step from their mobile phones. Additional content such as screensavers and wallpaper from WMG’s world-renowned record labels, including Atlantic, Lava and Warner Music Latina, will be made available by short-code later this year.

“Working with Mobileway allows us to use the fast-growing mobile music market as another way to promote our music,” said Michael Nash, senior vice president, Internet Strategy and Business Development at WMG. “With the growing popularity of mobile ringtones, integrated short-codes are a natural extension of our marketing efforts.”

“By progressively embracing cross-carrier, premium SMS wireless music services, Warner Music Group now allows music fans in North America to connect with their favorite artists whenever and wherever they want to,” said Scott Hannan, general manager of Mobileway North America.

READ THE FULL PRESS RELEASE.

UK'S TOP RINGTONES - The Top 10 Chart Of The Future?

A UK company has posted the UK's Top 10 Ringtones of 2003. Ringtones are estimated to be a $3 million business worldwide that is just starting to explode in the US ibecause of inferior US mobile technology.
Is this a permanent part of the music promotional landscape or just a passing (if important) fad?

TOP 10 UK RINGTONES - 2003
Musical work/ Ringtone - Writer (s) - Original Artist (s)
1. Where Is The Love - Board/ Pajon/ Fratantuno/ Curtis /Adams/ Timberlake/ Gomez/ Pineda - Black Eyed Peas
2. Muppet Show - Pottle/ Henson - TV Theme
3. Mission Impossible - Schrifin - TV Theme
4. In Da Club - Elizondo/ Young/ Jackson - 50 Cent
5. Pink Panther - Mancini - TV Theme
6. Roobarb and Custard - Pritchard/ Hawksworth - TV Theme
7. Ignition - Kelly - R. Kelly
8. Addams Family - Mizzy - TV Theme
9. Lose Yourself - Mathers/ Bass/ Resto - Eminem
10. Happy Days - Fox/ Gimbel - TV Theme

Read the full story @ Mi2N - Music Industry News Network