Archive for August, 2006

Nettwerk: vendiamo musica, non dischi!

Sunday, August 27th, 2006

In questo articolo su Wired si fa riferimento ai nuovi modelli di promozione e vendita della musica utilizzati da Nettwerk, azienda che si occupa del management di artisti di grande successo come Avril Lavigne, Stereophonics, The Cardigans, Dido e molti altri.

Chiaramente controcorrente la loro policy di non perseguire chi condivide files degli artisti che stampano sulle loro etichette:

Litigation is destructive, it must stop …. as per Nettwerk copyrights, we have never sued anybody and all our music is open source to encourage fans to share it with others and help us promote our Artists. As per those Artists we manage on other labels (Majors), we take issue with those labels claiming that litigating our fans is in our interest, as it clearly is not.

Ecco alcune citazioni dall’articolo su wired:
“Let’s give away the ProTools files on MySpace. Vocals, guitars, drums, and bass. We’ll let the fans make their own mixes.” The room falls quiet. Musicians usually record their instruments and vocals on separate tracks; the producer and mixer combine those tracks into a finished product. McBride wants to make the individual files available so that amateur DJs can use them like Lego bricks to create something all their own. The record industry likes control. McBride is proposing unfettered chaos.
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“The labels were never in the business of selling music,” says David Kusek, vice president of Boston’s Berklee College of Music and coauthor of The Future of Music. “They were in the business of selling plastic discs.”
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Musicians generally make very little from the sale of their records. The costs of production, marketing, and promotion are charged against sales, and even if they go multiplatinum and cover those costs, their cut of any extra revenue is usually less than 10 percent. On top of this, the labels typically retain the copyrights to the recordings, which allows them to profit from the musicians’ catalogs indefinitely.
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“The future of the business isn’t selling records,” McBride says. “It’s in selling music, in every form imaginable.” And by establishing a series of so-called artist-run labels, McBride is creating the next-gen music company. “We become the management company, the publishing company, and the record company rolled into one,” McBride says. “We take our 20 percent cut of the whole pie. “More important, he says, the new model frees him and his artists from the overgrown bureaucracy of the music industry, and that means more money for everyone. He can book tours, sell ringtones, peddle songs to advertising agencies and, yes, give away free downloads without any of the complex, multiparty negotiations that once gummed up the works. “It used to take months to sell a frickin’ ringtone to Bell Canada,” McBride says. “With BNL, one phone call gets the job done.”
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McBride’s success will depend on what he calls “collapsed copyright.” Nettwerk will represent artists like BNL, but the bands will record under their own labels and retain ownership of all their intellectual property, an anomaly in the industry. The bands, in turn, can expect to earn considerably more money – say, $5 to $6 from the sale of each CD instead of the standard dollar or two.
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Nettwerk is also poised to take advantage of the significant changes in music marketing wrought by social networking sites like MySpace. Radio, and the labels that provide tunes for radio playlists, are no longer the gatekeepers to stardom. Some of the most promising new bands, like Arctic Monkeys and Arcade Fire, owe their success to online word of mouth and grassroots marketing. Nettwerk has tapped this phenomenon to the fullest, offering prizes to people who sell a certain number of CDs to friends and using software to keep close tabs on its extensive network of volunteer marketers, formerly known as fans.
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“The old system kept us from imagining what a music product could be,” McBride says. “Now we can really start to have fun.”
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Eventually McBride would like to pioneer another source of revenue with even greater potential: P2P networks. Earlier this year, he sparked a music industry uproar when he announced he would pay the legal defense for a Texas man being sued for piracy by the Recording Industry Association of America. “The lawsuits are hurting my bands,” he says. “If you could monetize the peer-to-peer networks, everyone would make more money.”
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In May, President Bush signed into law a revision of the tax code that will make it easier to sell intellectual property as a stock, with profits being taxed at the same lower rate as other capital gains. “Once we have access to all the intellectual property, we’re going to offer shares in individual artists and take in equity investments,” McBride says. “Eventually, a major band could be its own public company.” The key, he adds, sounding like an overzealous investment banker, is that the value of a band would be measured like a stock and would receive capitalization in expectation of future earnings. “At that point, even a band selling 100,000 units a year becomes profitable,” McBride says.
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In 2005, Ingenious Media launched Ingenious Music, which operates more like a VC firm than a label, running several equity funds that invest in bands, managers, and small labels. “We’re not interested in making a record company; we’re making a music company,” says Duncan Reid, the firm’s commercial director. Like Nettwerk, Ingenious wants a slice of every pie, not just the increasingly small morsels from CD sales.

200 milioni di vendite per ITMS in Europa

Friday, August 4th, 2006

via Mark Mulligan

Apple have announced that they passed 200 million downloads in European iTunes Music Stores. This is a pretty impressive number and actually just 3 million below the 203 million that Jupiter had internally forecasted they would reach by August. However, despite its impressive scale the 200 million indicates that Apple have actually been selling at a relatively flat rate of a little over 11 million a month since December 2005, when they had hit 110 million. And, more pertinently, the rate of growth is lower than the over 13 million monthly downloads they had between September and December 2005. There is of course a lot of seasonality involved there, so not too much should be read into the decline. However the key take away here is that despite Apple being the dominant European digital music store, growth is solid rather than astronomic. Which partially justifies Jupiter’s conservative stance on the prospects of digital music: we don’t think that the CD is about to disappear under a wave of downloading. Also, on a global basis, the ratio between the installed base of iPods and total iTunes tracks downloaded is now a fifth lower than at the start of 2005. Which illustrates the hierarchy of importance between the iPod and the digital music market.

Non è certo una novità il fatto che in media gli ipod contengano solo poche tracce acquistate dall’ iTunes Music Store.

La lunga coda, la musica folk e le suonerie giapponesi

Thursday, August 3rd, 2006

Ecco l’effetto della lunga coda sui contenuti musicali:

I have two friends in Canada who run a Canadian folk music label called Borealis. This is music from their album Six Strings North of the Border. While folk music fans are loyal, there simply aren’t enough of them in Canada to support this label, even though Borealis has a solid back catalog, which never goes out of style.

Then the Internet came along and they were able to find folk music fans who didn’t know the lyricism of Penny Lang or the songwriting of Ron Hynes. There’s little room on the retail shelves for any niche music, and most music–including folk–is niche music. The new reality of interconnectedness means Borealis is thriving with new audiences they never could have found before. Recently one of my friends told me that they just received a check for ringtone downloads in Japan, where the hip thing is to have acoustic music on your cell phone. That is the Long Tail.