Archive for the ‘Music Industry Inside’ Category

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Nine Inch Nails may have changed the Business Model for Music, It’s FREE

February 10, 2009

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Since completing his earlier major record label contract, musician Trent Reznor has been experimenting with a variety of new and unique business models for his band, Nine Inch Nails, to reach and connect with fans. This case study explores Reznor’s experiments, examining what has worked and what has not – and why. Speaker: Michael Masnick (Editor/President & CEO, Techdirt Blog/Floor64)

Its basically means this:


Connect With Fans (CwF) + Reason To Buy (RtB)
= The Business Model ($$$$)

Entitled ‘The Slip’, the 36-track instrumental record, recorded in a ten-week period last year, is available in a variety of download options and as a physical copy.

The options are a free download featuring the collection’s first nine tracks, a $5 download featuring the whole album, a $10 two-CD set (either via the website or in shops from April 5) and a $75 deluxe edition, including a hardcover book and a data DVD and a Blu-ray disc featuring high definition recordings and a slide show.

There is also an “ultra deluxe” limited edition version for £300 which features the same items as the $75 version, but also signed and numbered by Trent Reznor.

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Ireland’s biggest ISP agrees to a 3 strikes disconnection

February 4, 2009

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The great copyright debate contiues with a move forward from Ireland.

Eircom, Ireland’s biggest internet service provider (ISP), has agreed to disconnect users that record companies identify as copyright infringers. The agreement was reached eight days into an Irish High Court trial.

The former state monopoly ISP, which is now privately owned, has agreed to give two warnings to subscribers before cutting them off.

Record industry group the International Federation of the Phonographic Industries (IFPI) said that it would be taking action against other ISPs to ensure they did the same.

“The record companies will supply Eircom with the IP addresses of all persons who they detect illegally uploading or downloading copyrighted works on a P2P [peer to peer] basis,” said a statement from the IFPI.

“Eircom has agreed that it will from now on implement a graduated process,” it said. “The record companies have agreed that they will take all necessary steps to put similar agreements in place with all other ISPs in Ireland.”

The case involved the four major labels EMI, Universal, Warner and Sony.

Eircom said that when it received the labels’ list of people they suspected of engaging in illegal file-sharing, it would tell its customers that infringement had been detected.

If the activity continues Eircom will warn the subscriber that they will be cut off if there is no change in behaviour. If the file sharing continues the customer will be disconnected.

EMI Ireland managing director Willie Kavanagh is also the head of the Irish Recorded Music Association (IRMA), which is affiliated to the IFPI.

“[This is] something we’ve had to work together to make sure this got to a stage where we can deal with what is an enormous difficulty within the Irish and worldwide record business,” he told broadcaster RTE.

The ‘three strikes and you’re out’ policy is a popular one with rights holders, who are lobbying Governments across Europe to force ISPs to implement it.

The UK Government stopped short of including such a demand in its Digital Britain report last month. It said that it plans to force ISPs to pass details of subscriber activity to rights holders but did not demand that they disconnect users.

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Concert Industry May Be A Bust This Summer

February 3, 2009

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There are already signs that 2009 will be a tough year for live music promoters.

For the last decade, the music industry has countered declining profits from album sales by raising the prices of concert tickets. The average price of a ticket to the top 100 acts rose a stunning 8.4% last year, according to Gary Bongiovanni, the editor in chief of Pollstar, a box office trade magazine.

“That’s not a prescription for a healthy business,” he says, “but that’s what we’ve been doing.

One month into 2009, the good times may be over.

Coachella, the annual rock festival near Palm Springs, Calif. produced by AEG Worldwide, recently announced it would offer a layaway plan for fans who want to spread out the $269 it will cost for a three-day pass. Like a department store pushing hard to sell furniture, the festival will let fans pay half now and the rest by April 1, or put 10% down with equal installments of $121.05 in March and April.

The business model has worked for StageCoach, the country companion to Coachella. Layaway tickets made up a quarter of all sales, promoters say.

Other festivals that offer layaway plans include the All Points West Festival in New Jersey, the Bonnaroo Music and Arts Festival in Tennessee, and the Rothbury Festival in Michigan.

None of it bodes well for the live music industry. Even if customers are able to purchase tickets, they may not be able to purchase high-margin items like beer and T-shirts at the venue. For example, Live Nation (nyse: LYV – news – people ), the world’s largest promoter, loses 4% on each ticket sold, but makes 43% of its overall revenue from extra charges like parking and food.

That puts the company in a precarious place, analysts say. “Tickets are a luxury item that people cut back on,” said Alan Gould, an analyst at Natixis Bleichroeder in New York. David Kerstenbaum, an analyst at Morgan Joseph, agreed, saying, “The company is going to have to be very careful about its price points. They won’t be able to raise prices as much as they probably would have liked.”

Live Nation maintains customers are continuing to buy tickets because their typical consumer goes to just one or two concerts a year. The company says they saw little difference in ticket sales between 2007 and 2008, when the recession kicked in.

Artists, meanwhile, may be hit especially hard by any dip in ticket sales or prices. The upper tier of performers make 7.5 times more money from touring than from recorded music sales, according to a study by Marie Connolly and Alan B. Krueger at Princeton University.

Musicians have leeway in setting ticket prices but are often reluctant to cut prices. “They think ‘Well, so and so got that much, so I’m worth

Source: forbes.com

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Music Industry Inside: Ringtones can cost more than the actual song!

January 30, 2009

ringtones

Juniper Research released a report in 2005  stating that the ringtone industry could bloat to $9.3 billion (USD) by 2009.

Lets take a look at Britian’s  No1 in the charts right now to get a feel of where things are headed.  Introducing  Lady GaGa

Just Dance (Download)
by Lady GaGa

Price: $0.99
Remix "Just Dance Feat. Colby O'Donis"

Just Dance (Ringtone)
by Lady GaGa

Remix "Just Dance Feat. Colby O'Donis"
Hmmm so it appears the standard pricing is that the ‘actual song’ is nearly three times the cost to purchase than a snippet in ringtone format.

” While the downloads of mobile ringtones and realtones will comprise the bulk of revenues ($4.8 billion), the market for full-track downloads is expected to increase from just $20 million in 2004 to nearly $1.8 billion in 2009, while ring-back tones – already generating substantial revenues in Asia – should be worth $2.7 billion worldwide by the end of the decade”

And depending which source you read a staggering $14 Billion by the end of 2011 (ezinearticles.com)

Still waiting to find the results of that particular forcast however there is no deneying the effect that the music industry is in a strange position right now where the ringtone can cost more than the actual song.

Music sales worldwide fell by about 7 percent last year as another sizable jump in digital sales failed to make up for a deepening decline in the compact disc market, according to John Kennedy, chief executive of the industry’s main international trade group. The IHT reports.

Revenue from music sold over the Internet, via mobile phones and in other digital forms, rose by 25 percent last year, to $3.7 billion, the International Federation of the Phonographic Industry said in a report set for publication Friday. Digital sales accounted for 20 percent of the industry’s revenue, up from 15 percent a year earlier.

Meanwhile, growth in downloads from online music stores like Apple’s iTunes has slowed. … That is hastening the music industry’s push to develop new business models for digital music.

Major record labels have joined with Nokia, the maker of cellphones, to provide free, unlimited music downloads in Britain. …

“The industry has shifted to Plan B,” said Mark Mulligan, an analyst at Forrester Research. “The record companies have realized that the only way they can fight free is with free itself.”

“Mobile Music Sales Will Reach $3.2 Billion by 2012 But Analysts Say ‘Tracks Must Be Free’, The music industry has got to be prepared to give music away for free”according to analysts Screen Digest.

But full-track downloads will only make up half of that, with the rest still coming from things like ringtones. The report warns “paying for music is progressively becoming a niche activity as the value of recorded music is already in steep, possibly terminal, decline”.

In 2000, U.S. consumers bought 785.1 million albums; last year, they bought 588.2 million (a figure that includes both CDs and downloaded albums), according to Nielsen SoundScan. In 2000, the ten top-selling albums in the U.S. sold a combined 60 million copies; in 2006, the top ten sold just 25 million. Digital sales are growing — fans bought 582 million digital singles last year, up sixty-five percent from 2005, and purchased $600 million worth of ringtones — but the new revenue sources aren’t making up for the shortfall.

Hense Crazy Frogs mere existence

crazy-frog

Source:
http://ezinearticles.com
http://www.ringernews.com