Posts Tagged ‘music downloads’

Music: Too Expensive to Be Free, Too Free to Be Expensive

Thursday, November 19th, 2009

Music: Too Expensive to Be Free, Too Free to Be Expensive

The Buggles' The Buggles’ “Video Killed the Radio Star,” the first music video played on MTV, applies as well to online streaming services now as it did to radio in the ’80s.

MySpace, rumored to be on the verge of purchasing the free music streaming site imeem, is struggling to keep up with its own payments to music copyright holders, according to a top News Corp executive — a problem that has plagued every other licensed free music service.

The digital music doubters could be right with the contention that advertising revenue can’t  cover the costs of licensing music. Meanwhile, illegitimate free music sources continue to proliferate, rendering paid music subscriptions irrelevant for most music fans.

Advertising was supposed to be music’s magic bullet, enabling fans to get the free music they’re going to find anyway while contributing at least something to copyright holder coffers. That dream is fading fast. As legitimate sources for free on-demand music dry up, fans will likely head back to file sharing networks, which is bad news for everyone involved in music — except for, perhaps, hard drive manufacturers.

Evidence and rumors are mounting to support the idea that free music websites are unfeasible.

    MySpace Music — the on-demand, ad-supported music service not to be confused with the band pages on the site — is losing money and could soon add subscription option. News Corp Digital head Jon Miller answered his own questions on the topic last week at a conference in Monaco. “Do I think the freemium model works, consistent with earlier discussions? Yes I do. Has that been figured out? No, it hasn’t, but it’s certainly something to look at,” said Miller. “Is [Myspace Music] profitable? No, it’s not. On an operating basis it’s getting in, but no, because of the payments due to the music companies.”

    Ad-supported music service imeem, which has been the subject of considerable speculation related to its running out of money over the past year, is reportedly in late-stage discussions to be acquired by MySpace, which has its own problems, as mentioned above. Like MySpace, imeem’s biggest challenge has been covering payments to labels.

    MOG, which planned to launch a free, ad-supported on-demand streaming service, decided that was impossible and went with a $5/month subscription instead.

    Spotify pushed back its U.S. launch to early next year, with CEO Daniel Ek admitting that when the service launches in the states, it might not be the same as it was in Europe where music fans enjoy a free, ad-supported version of the software or a 10-euro-per-month subscription option that removes the ads. A bundled version of the service that comes with your smartphone or ISP is an increasingly likely option.

    Google added play buttons to its music search results that allow anyone to listen to a song once for free through Lala or MySpace’s iLike service, after which they have to pay for it. If Google can’t figure out a way to support something with ads, it arguably cannot be done.

    YouTube remains the only licensed, free, on-demand music service that promises to break even, mostly because the visual nature of the services makes users more likely to encounter advertisements on the site. When the labels launch their Vevo YouTube spin-off, they hope to generate even more money from ads than YouTube does.

The upshot of the labels’ licensing demands: Music will continue its transformation into something that accompanies a visual element.

 

Source: Wired

Various Music Format Sales

Tuesday, August 25th, 2009

From an email from New Music Strategies:


You’re looking at it wrong


Posted: 17 Aug 2009 02:23 AM PDT
This great data visualisation from the NY Times comes to us via a really fascinating website called Information is Beautiful. It represents the sales in billions of today’s dollars of the various music formats over time.

NY Times graph

They claim it represents the dwindling death knell of the music industry. That’s not quite right (even leaving aside the nonsense assertion that the record business = the music industry). While put together in aggregate, the overall graph would show a larger, fatter, longer increase and decline, what this graph does not show is equally interesting.

The trailing tail to the right of the graph seems to indicate the death of music business. But look to the left. This graph does not start at the beginning of the music business. And nor does it start only a short while after the beginning of the music business.

It starts in 1973.

I don’t know about you, but I was around in 1973. I wasn’t very old, but I was old enough to be aware of music. It had been around long before I had. And even though the graph would have been tiny – at least in comparison to the uncharacteristically massive spike in CD sales around 1999 – there was no crisis in the music business then.

My guess, in fact, was that there was opportunity. In 1973, the small numbers meant that people who sought to do new and interesting things were able to do those new and interesting things. Less was at stake (at least, in aggregate) and so people took risks.

New and innovative kinds of music flourished in the margins. Funk, disco, punk, psychedelic, metal, and reggae all started to emerge as significant forces from that decade. Lots of tiny labels did amazing and sometimes incredibly profitable things. 

Risk-takers were sometimes massively rewarded. Those who kicked at the edges often flourished.

Skip forward to 1999 – ten years ago now – and you witness the height of corporatism in the recorded music business. A world of a few stars selling millions of copies of safe and frequently dull music. But most importantly, the business people who were teens in 1973 were able to take the music they loved from their youth and turn it into a multi-billion dollar industry.

And while the interesting new genres have been created in the margins all through that history, it’s the forms (and their often watered-down derivatives) loved by those execs that have massively prospered through the recorded music boom era.

Of course, music didn’t start in 1973. Or 1923 for that matter – and nor did the ability to make money from it. The last 35 years provides us with an interesting historical anomaly as far as that graph is concerned.

The boom and bust pattern of each recorded music format adds up to an overall rise and decline of corporatism in the recorded music industries. Culturally, this could well be something to celebrate.

Personally, I’m hopeful for new and interesting musical forms and genres coming from the margins and being able to reach a significant audience.

It’s cheaper to experiment now. It’s easier to reach an audience than ever before, and the economics are such that you don’t need for corporations to be making billions in profit in order to make a decent living at it.

I’m not saying that this is the best time in history for music. I’m actually hopeful that we haven’t yet seen the best time for music. It’s even possible that the biggest selling record of all time hasn’t been made yet.

My point is that the graph above only represents a crisis for a particular way of organising music business, and not for music business itself – and certainly not for music.

In fact, if we’re clever about it, this might be one of those golden ages for musical culture that seem to coincide with the skinny bits of that graph.

Source: New Music Strategies


Information is Beautiful: death of the music industry

Music Downloads Are Good For The Environment

Wednesday, August 19th, 2009


Category: Music

The Carbon Case for Downloading Music

Chart 

The greenhouse gas impacts of various ways to access music.

A new study has found that downloading music is substantially better from an emissions perspective than buying compact discs.

The study, which was financed by both Microsoft and Intel and written by two academics at Carnegie Mellon University and a third affiliated with Stanford University, found that buying an album digitally reduces carbon dioxide emissions by 40 to 80 percent relative to a best-case scenario for purchasing a CD.

That scenario involves a customer buying a CD online and having it delivered via a light-duty truck; the more carbon-intensive options examined by the study are express air shipment of the CD, and the customer visiting a store to buy the CD.

The advantage for digital comes largely because CDs must be manufactured, packaged and transported over long distances.

Even in a situation in which a consumer downloads the music — and then burns it onto a CD and puts it in a CD case — the carbon differential is 40 percent in favor of the download, the study found. If the downloaded music is not burned onto a CD, the differential rises to 80 percent.

However, there is room for debate. The high carbon cost associated with visiting the store, for example, rises when customers make the trip by car. If a consumer walks to the store instead, then buying a CD is “nearly equivalent” in carbon terms, the study says, to downloading the music and burning it onto a CD.

Large file transfer sizes can reduce the carbon advantage of downloads, owing to “increased Internet energy use for downloading.” The study also concedes that in some instances, the downloading and purchasing of hard copies are not perfect substitutes. Some consumers, for example, pursue albums for reasons beyond the music — say, for the album’s artwork.

While the artwork is sometimes available for digital download as well, this may not be “completely satisfactory for some customers,” the authors write.

The study also did not look at the comparative carbon impact of CD players and digital music devices like the iPod.

Source: NY Times