tag:blogger.com,1999:blog-31261054975374627842024-03-12T22:07:44.336-07:00Tuning the BusinessNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.comBlogger97125tag:blogger.com,1999:blog-3126105497537462784.post-89898784201133014002008-01-10T07:36:00.000-08:002008-01-10T07:38:26.611-08:00Artists 'must benefit from touts'Artists and sports bodies should share profits from tickets resold on internet auction sites, MPs have said. <br />In a report on touting, they have stopped short of calling for a ban, but have told online touts to "clean up their act" because they exploit fans. <br /><br />They also criticised event organisers and promoters, saying they helped to feed the market with non-existent or inadequate returns services. <br /><br />The MPs' report calls for a voluntary industry code of conduct for reselling. <br /><br />The Culture, Media and Sport select committee said up to 40% of tickets were being sold on the internet. <br /><br />Dozens of UK venues and promoters gave evidence to MPs for the report, which concludes that "some secondary sellers indulged in dubious or suspect practices". <br /><br />'Voluntary solution' <br /><br />Committee chairman John Whittingdale said it was "neither practical nor in the interests of consumers" to ban ticket sales through the secondary market - where tickets are sold on. <br /><br />Instead, the MPs are calling on representatives from all sides to come together to provide a "voluntary solution". <br /><br />Mr Whittingdale said that if they failed to reach agreement on such a code, government legislation would be used as "a last resort". <br /><br />The committee's report also said: <br /><br /><br />The internet had made it easier for people to profit from selling on tickets. It concluded this was unfair.<br />Organisers wanted to protect their industry, saying they could just inflate prices if they wanted to boost profits.<br />Organisers should let people get refunds in some circumstances.<br />There should be an "across-the-board commitment" that the "distasteful" sale of tickets for free events and charity events - such as Concert for Diana - will be stopped.<br />There should be a ban on reselling tickets given free to children or people with disabilities.<br />Mr Whittingdale said giving event organisers a share in profits from resold tickets was the "middle way". <br /><br />"This represents a way forward which could benefit all concerned, and we call on all those involved in the debate to work together to develop it on a self-regulatory basis," he added. <br /><br /> <br />The Arctic Monkeys are among those calling for a levy on resold tickets <br />The Resale Rights Society (RRS) - representing the managers of the Arctic Monkeys, Radiohead and Robbie Williams and more than 400 other acts - has already said it would support a levy being added to resold tickets. <br /><br />A spokesman said the existing situation, where big profits can be made by touts with nothing going to the organisers or rights owners, was "unfair and must be addressed". <br />http://news.bbc.co.uk/2/hi/entertainment/7179834.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com3tag:blogger.com,1999:blog-3126105497537462784.post-69719983983717804512008-01-05T13:22:00.000-08:002008-01-05T13:26:55.929-08:00Radiohead-like business model has disappointing resultsNine Inch Nails frontman Trent Reznor admitted that he is "disheartened" by the results of a new music business model he attempted.<br /><br />As producer of rapper Saul Williams' new album 'The Inevitable Rise and Liberation of NiggyTardust', Reznor decided to employ a similar business model to that of Radiohead, which gave listeners the option of paying nothing for a download of the album, or $5 for higher-quality MP3s.<br /><br />In a posting yesterday (January 3) on Nine Inch Nails' website, Reznor revealed the sales figures, saying, "Perhaps by revealing of all our data -- our 'dirty laundry' -- we can contribute to a better solution."<br /><br />Giving the background that Williams' 2004 self-titled album sold 33,897 copies, Reznor revealed the following data.<br /><br />"As of 1/2/08, 154,449 people chose to download Saul's new record. 28,322 of those people chose to pay $5 for it, meaning: 18.3% chose to pay."<br /><br />Reznor added: "Is it good news that less than one in five feel it was worth $5? I'm not sure what I was expecting but that percentage -- primarily from fans -- seems disheartening."<br /><br />On the positive side, Reznor pointed out that they hardly spent any money marketing the album, adding, "Saul's music is in more peoples' iPods than ever before and people are interested in him. He'll be touring throughout the year and we will continue to get the word out however we can."<br />http://www.nme.com/news/nine-inch-nails/33469New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com1tag:blogger.com,1999:blog-3126105497537462784.post-61597475434095990962007-12-29T04:03:00.000-08:002007-12-29T04:04:54.693-08:00Wal-Mart shuts online video shopThe world's biggest retailer, Wal-Mart, has closed its video downloading service less than a year after it started selling films online. <br />It stopped the service on 21 December, according to a message on the discount chain's video download website. <br /><br />Wal-Mart said the decision had been forced by Hewlett-Packard withdrawing the software running the site. <br /><br />The move ends a challenge to Apple's iTunes store, Amazon and Netflix to win customers who rent films over the web. <br /><br />Hewlett-Packard spokeswoman Anna Ichel Buxbaum said the company had dropped the service because it "has not performed as expected" and would be looking at other digital entertainment ventures to invest in. <br /><br />"The broader internet video space continues to remain highly dynamic and uncertain," Buxbaum said in a statement. <br /><br />Competition <br /><br />The service had launched in February offering 3,000 films and episodes of popular television shows to US customers to watch on a PC or a portable device compatible with Microsoft Windows Media Player. <br /><br />The Wal-Mart downloads do not work on standard DVD players or on Apple computers or iPods. <br /><br />The market for online video downloads has become very competitive with video rental chain Blockbuster buying Movielink over the summer to expand into this area. <br />http://news.bbc.co.uk/2/hi/business/7163722.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-41257343027285840372007-12-29T03:58:00.000-08:002007-12-29T04:03:25.607-08:00Fox films 'for rent via iTunes'Apple and 20th Century Fox studio are to announce a deal that will allow consumers to rent the studio's films through iTunes, media reports say. <br />They will have a limited time to watch films downloaded from the iTunes store, a source told the Financial Times. <br /><br />If the reports are true, this looks like a new assault on the video and movie market, says BBC News technology correspondent Rory Cellan-Jones. <br /><br />Apple shares traded above $200 for the first time on Wednesday. <br /><br />Major event <br /><br />The rumours about Apple's products and software to be unveiled at the company's major event of the year, MacWorld 2008 in San Francisco on 14 January, are swirling around, our correspondent says. <br /><br /> <br />It looks like video could be a new key theme for Steve Jobs' Apple <br />Video sales on iTunes have been sluggish and the Apple TV - a set-top box linking the computer to your television - has failed to win a place in millions of living-rooms. <br /><br />Besides, the big players in television and in Hollywood have been wary of doing deals with Apple, after seeing the position of strength that Steve Jobs' company has built up in the music business. <br /><br />So the negotiations with the studios over movie rentals on iTunes have reportedly been tortuous. <br /><br />Now it looks as though Fox, owned by News Corp, has decided Apple is the only game in town when it comes to getting movies onto new platforms, our correspondent says. <br /><br />Legal way <br /><br />Particularly interesting is the idea that Fox would sell DVDs with Apple's Fair Play DRM protection, making it possible to put a movie onto an iPod. <br /><br />Of course, millions of people have already found ways of doing that, but this time, it would be legal. <br /><br />Apple and Fox will be hoping this will have the same impact on consumers as the arrival of the iTunes music store, which encouraged some of the millions who were swapping songs on the internet illegally to start paying for music online, our correspondent says<br /><br />http://news.bbc.co.uk/2/hi/business/7161609.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-27823958876914440132007-12-28T02:15:00.000-08:002007-12-28T02:16:57.230-08:00Warner agrees to use MP3 formatWarner Music Group is making its music available for US downloads from Amazon in MP3 format without copy protection. <br />Warner had been holding out against using the format because MP3 tracks are easier to share between users and may be freely burned onto CDs. <br /><br />Amazon.com's download store is a major US competitor to Apple's iTunes, which uses Digital Rights Management (DRM) to restrict the use of some of its tracks. <br /><br />Warner's artists include Led Zeppelin, Aretha Franklin and Sean Paul. <br /><br />Sony BMG is now the only major recording group not signed up with Amazon.com's download service, which is only available to US customers at present. <br /><br />"By removing a barrier to the sale and enjoyment of audio downloads, we bring an energy-sapping debate to a close," Warner Music chief executive Edgar Bronfman said in an e-mail to Warner employees. <br /><br />Amazon launched its US download store in September after reaching agreements to sell unprotected tracks from Universal Music Group and EMI. <br />http://news.bbc.co.uk/2/hi/business/7162280.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-78504093704102688412007-12-26T06:25:00.000-08:002007-12-26T06:27:12.643-08:00Death To Music Gives Away 10 Releases For Free Downloadposted Tuesday, December 25, 2007 at 10:43:30 PM by deathbringer. <br /><br />DEATH TO MUSIC prodcutions have fulfilled all "anti-contractual obligations" by providing 10 releases (albums & EPs) for free over the past few months - available via the official website, www.deathtomusic.com.<br /><br />Death To Music productions is the new "anti - record label" founded by James Fogarty - previously of experimental metal project Ewigkeit, also a former founding member of Black Metallers The Meads Of Asphodel, and was launched in order to release music for music's sake rather than the usual money-driven route of labels / distros / magazines in order to get music heard.<br /><br />"...all these fucking labels and other vampires of the music industry are just not neccesary anymore for artists writing and releasing music in more underground styles - for me and many, many other hard-working musicians & bands, our music is first & foremostly about getting your stuff heard by people, and certainly not about working your arse off to make money for other people..."<br /><br />"..as a statement of intent, I have now given away everything I have ever recorded, and now look forwards to working with new projects and artists on Death To Music....."<br /><br />James was tired of having to deal with record labels who didnt treat their artists fairly, and subsequently burnt all his record contracts and reclaimed the music.<br /><br />The first physical release is out now in the form of James Fogarty's new politico-industrial metal project The Bombs Of Enduring Freedom's self-titled debut album. You can check out some of their material on the band's MySpace page.<br /><br />2008 will see the release of more projects who are choosing to collaborate with Death To Music productions in order to get their music heard, rather than the usual route of labels / distros / magazines.<br /><br />http://www.metalunderground.com/news/details.cfm?newsid=32420New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-44877481849737927212007-12-21T04:12:00.001-08:002007-12-21T04:12:29.202-08:00Radiohead, W/C In Digital Licensing BreakthroughRadiohead and its long-time publisher Warner/Chappell Music have launched a unique "all rights" digital licensing service for the alternative rock band's new album "In Rainbows," Billboard.biz can reveal. <br /><br />The music publishing giant has created a global "one stop shop" solution for the critically-acclaimed set, which will enable potential rights users worldwide to secure licenses from a single destination, effectively side-stepping the label and traditional collecting societies networks. <br /><br />For the new album, Warner/Chappell will administer all digital rights, including mechanical, performing, synchronisation, lyrics, master recordings, image and likeness, and will license synch rights for both publishing and master rights for TV and film synch uses in the offline world. <br /><br />Jane Dyball, senior VP, European legal and business affairs, Warner/Chappell Music describes the new digital licensing development as an "experimental solution" which should benefit the Radiohead while "providing all their licensees with a new, highly flexible service."<br /><br />Radiohead blazed a new trail when the band recorded the album independently, and released it digitally through its official Web site from Oct. 10, allowing downloaders to name a price to own a virtual copy. <br /><br />The "honesty box" trial will conclude Monday, ahead of the album's tradition release through XL Recordings internationally on New Year's Eve. ATO Records Group will issue the album the following day in the United States, while Hostess Entertainment has a license agreement to release the album Dec. 26.<br /><br />billboard.bizNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-39383776906507189452007-12-21T04:11:00.002-08:002007-12-21T04:12:08.488-08:00Live Nation, CTS Team For Ticketing PlatformLive Nation is entering the ticketing business. The live music giant has struck a long-term agreement with CTS Eventim, the Bremen, Germany-based ticket marketer and promoter, to launch a worldwide ticketing business, with effect from Jan. 1, 2009.<br /><br />Through the initiative, unveiled today, Live Nation will exclusively license the Eventim platform in North America, while Eventim will provide back office ticketing services in the United Kingdom and ticketing services throughout Europe. Financial terms of the deal were not disclosed.<br /><br />In a statement, Live Nation president/CEO Michael Rapino described the development as "a monumental step forward in the evolution of Live Nation into a next generation music company." <br /><br />Rapino continued, "Eventim is the most technologically sophisticated ticketing platform in the world. Live Nation will use its most important asset, the concert ticket, to build artist careers and customer relationships, forge innovative sponsorship deals, create a fan and artist friendly secondary ticketing platform and provide a ticketing alternative for third-party venues. We believe that our partnership with Eventim will allow us to execute on this transformational vision."<br /><br />Live Nation notes that the new ticketing platform will allow it to control customer data to create "enhanced ticket-based concert products," and capitalize on expanded distribution channels and sponsorship opportunities.<br /><br />Meanwhile, Ticketmaster will handle ticketing for Live Nation's venues and thousands of events through the end of 2008. The contract between Ticketmaster and Live Nation dates back to 1998 and Live Nation's predecessor, SFX Entertainment. (Venues acquired as part of Live Nation's House of Blues acquisition last year are contracted with Ticketmaster through 2009.)<br /><br />billboard.bizNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-31155895599550307222007-12-21T04:11:00.001-08:002007-12-21T04:11:45.892-08:00Sony BMG To Embrace MP3sSony BMG Music Entertainment is about to make its first foray into the MP3 format when it launches artist-specific digital download album cards in mid-January, sources say.<br /><br />Apparently modeled on the iTunes digital download album cards, Sony BMG will place 40-50 album cards in about five large retailers. The cards will be a select mix of hit and catalog titles from artists such as Bob Dylan, Pink and Bruce Springsteen, as well as a few compilation releases. <br /><br />The cards, which sources say are priced at $12.99, will come with a code that can be redeemed at a Sony BMG download store, which is expected to be called musicpass.com. Currently, no such site is live on the web.<br /><br />Sony BMG is using an intermediary company, Incomm, which specializes in gift cards, to cut the deals with accounts. Sony BMG's move towards testing MP3 has been in the works for the last few months, sources say. They also add other MP3 tests are being contemplated by the company. <br /><br />Sony BMG declined to comment.<br /><br />billboard.bizNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-28196340449907640422007-12-21T02:03:00.000-08:002007-12-21T02:04:15.763-08:00Thom hits the Radiohead trebleThom Yorke has revealed the enormous success of Radiohead's download-only new album "In Rainbows". <br /><br />The singer says the group have made more digital income from the release than from the rest of their back catalogue put together.<br /><br />Earlier this year, Radiohead left EMI Records and decided to release the follow-up to 2004's "Hail To The Thief" themselves.<br /><br />Yorke says it's been a rewarding financial venture for them, helped by the fact that their former label had been taking a large proportion of download revenue.<br /><br />He explained: "In terms of digital income, we've made more money out of this record than out of all the other Radiohead albums put together, forever - in terms of anything on the 'net. <br /><br />"And that's nuts. It's partly due to the fact that EMI wasn't giving us any money for digital sales. All the contracts signed in a certain era have none of that stuff."<br /><br />Speaking to wired.com, Yorke also revealed the inspiration behind the idea to give the album away back in October.<br /><br />"It wasn't nihilistic, implying that the music's not worth anything at all, it was the total opposite. And people took it as it was meant. Maybe that's just people having a little faith in what we're doing.<br /><br />"It was simply a response to a situation. We're out of contract. We have our own studio. We have this new server. What the hell else would we do?"<br /><br />"In Rainbows" is released on traditional formats on December 31. <br />http://www.music-news.com/ShowNews.asp?H=Thom-hits-the-Radiohead-treble&nItemID=16910New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-24289654003880417522007-12-20T04:44:00.000-08:002007-12-20T04:45:39.186-08:00Customer's response to iPod Touchhttp://youtube.com/watch?v=PeuUFWnjXcENew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-53979828013397353272007-12-19T06:11:00.000-08:002007-12-19T06:12:42.145-08:00Universal Music Settles Lawsuit Against XM Satellite RadioUniversal and other major record labels had sued XM over its Pioneer Inno portable music player, which enabled subscribers to record music on the device for playback later. <br /><br /><br />Universal Music Group broke away from other record labels and settled a copyright-infringement suit against XM Satellite Radio, the companies said. Terms of the settlement were not disclosed. <br />Universal, a unit of Paris-based Vivendi, joined other major record labels last year in suing XM over its Pioneer Inno portable music player, which enabled subscribers to record music on the device for playback later. The multiyear deal announced late Monday covers recording capabilities in current and future devices, the companies said in a joint statement. <br /><br />In deciding to withdraw from the original suit, Universal said XM had agreed to provide "a new and exciting opportunity for music lovers around the world to discover and enjoy our content, while at the same time recognizing the intrinsic value of music to their business and the need to respect the rights of content owners." <br /><br />"We are pleased to have resolved this situation in an amicable manner," Doug Morris, chairman and chief executive of Universal, said. <br /><br />XM said the deal recognizes that the company is competing in a market in which consumers have more options than ever for music. "We commend UMG for being the first music company to take this step forward with us and look forward to continuing our discussions with our other partners in the music industry," Nate Davis, president and chief executive of XM, said. <br /><br />Universal, home to such popular artists as Amy Winehouse, Jay-Z and U2, had joined other labels in claiming that XM's licensing agreement did not give it the right to record, distribute, or reproduce copyrighted music. The record companies argued in the suit filed in New York in May 2006 that the Inno essentially amounted to XM acting like an online store, such as Apple iTunes, that sells music downloads. <br /><br />XM claimed to have done nothing wrong, and vowed to fight the suit. Legal experts said XM would likely argue that its device was no different than a digital video recorder that enables people to record TV shows and movies for playback later. <br /><br />The lawsuit asked the court for a permanent injunction to stop the service, and asked for unspecified monetary damages that would be determined in a trial. <br /><br />XM and its rival Sirius Satellite Radio are seeking approval from federal regulators for a merger. The companies argue that the music distribution business is so diverse and consumers have so many options that it's unlikely the market could support two satellite radio companies. Opponents, however, say the deal would severely stifle competition. <br /><br /><br /><br />http://www.informationweek.com/industries/showArticle.jhtml?articleID=204805981New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-77478194775252444232007-12-18T03:59:00.000-08:002007-12-18T04:01:52.165-08:00Social Music OverviewKeeping with the theme of Mike’s Online Photo Editing Overview, I wanted to cover some of the entrants into social music. Music was probably the first type of rich media to really go “Web 2.0″ and it’s become a pretty popular place for startups. As a result, there are some great Rich Internet Applications built around social music. Anyone who makes music a part of their daily lives has no shortage of options when it comes to finding new music and sharing with friends.<br /><br />FineTune<br /><br />Finetune is a relatively new application written in Flash. It’s my favorite out of the bunch and I covered it on my ZDNet blog. What makes Finetune stand out is that in addition to the standard “artist radio”, it allows users to build playlists of specific songs. The minimum playlist is 45 songs and you can have up to three songs per artist. With custom playlists, you can make sure you’re only listening to songs you want. Finetune also gets points because in addition to the web version, it runs on the Wii and there is an Apollo-based desktop client.<br /><br />Pandora<br /><br />Pandora is the granddaddy of the bunch and it’s one of the Web 2.0 applications that Mike can’t live without. It is built using OpenLaszlo and provides the cleanest experience out of all the applications on the list. Pandora uses the Music Genome Project to generate a stream of songs that you’ll like based on how you rate previous tracks. You create stations around artists, songs or albums and you can provide feedback (thumbs up or thumbs down) on the songs Pandora chooses. Tech Crunch’s coverage of Pandora is here.<br /><br />Last.Fm<br /><br />last.fm is another Web 2.0 veteran and is more socially-slanted than the others. Tagging is a big part of the last.fm experience and you can tag any song that comes along in addition to being able to listen to “user tag radio” which is based on tracks that users have tagged with a specific genera. last.fm has a separate desktop application that “scrobbles” the songs you listen to and generates a music profile that you can share with friends. See Tech Crunch’s coverage of last.fm here.<br /><br />MOG<br /><br />MOG is all about a music community. It’s very blog-centric and revolves around user pages, or “Mogs”. You build your Mog around songs you’re listening too and artists you like. That builds something like a profile for you that users can browse to and comment on. It also uses this profile to suggest other people or music that you might like. Tech Crunch’s coverage of MOG is here.<br /><br />RadioBlogClub<br /><br />radio.blog.club is another music service that builds playlists based on an artist or song you specify. I’ve heard the least about it, but the interface is good. When you browse to the site and type in an artist or song, it builds a playlist of 10 songs for you. In my experience the recommendation system for radio.blog.club wasn’t the best, but they do allow you to embed their player on your blog. This seems to be the least robust of the applications but still worth a mention.<br /><br />MyStrands<br /><br />MyStrands started off as MusicStrands and is a downloaded desktop application that works with your current music players to build recommendations based on what you’re listening to. In many ways it’s similar to last.fm’s “Scrobbling” but MyStrands ties in with your mobile device and seems to provide a more social recommendation system. By tying in with music on mobile phones, MyStrands is a bit ahead of the others and it helps tie all of your music collections together. Tech Crunch’s coverage of MyStrands is here.<br /><br />iLike<br /><br />iLike is an iTunes plug-in that makes your music library more social. It tracks what you’re listening too and recommends songs and people with similar tastes. It hooks in nicely with the iTunes interface and recommends music as you’re playing songs. I listen to some pretty obscure stuff and the recommendations were good. They also have a widget for MySpace that is formatted to sit nicely in the “Music” section of the profile. Tech Crunch’s coverage of iLike is here.<br /><br />iJigg<br /><br />iJigg is a digg-esque music discovery service that I had a lot of fun playing with. Users vote on individual songs and the most popular rise to the top of the front page. You can’t do any “related artists” with iJigg, but you can browse by genre so that you can target your music discovery. The iJigg player can also be embedded on other sites so you can share it with friends. As this service gets more popular, I think it will be a great way for bands to get discovered. Tech Crunch’s coverage if iJigg is here.<br /><br />http://www.techcrunch.com/2007/02/05/social-music-overview/New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-68221738074916629062007-12-18T00:32:00.000-08:002007-12-18T00:36:15.624-08:00If you can't beat them-join themNEW YORK (Reuters) - XM Satellite Radio Holdings Inc said on Monday it has settled a patent infringement lawsuit filed by Universal Music Group and hopes to reach deals with the other music companies. <br /><br />The dispute centers around XM's portable "Inno" device, which can store and record music from satellite radio.<br /><br />Major music labels including Vivendi's Universal, Warner Music Group Corp, EMI Group Plc and Sony BMG sued XM in May 2006, saying the Inno infringes copyrights and transforms a passive radio experience into the equivalent of a digital download service such as Apple Inc's iTunes.<br /><br />XM said on Monday it reached a multiyear deal with Universal, which will withdraw from the complaint. It said the pact covers all XM radios with advanced recording functions, including future products. XM did not give the financial terms.<br /><br />"We look forward to continuing our discussions with the other music companies in hopes of arriving at a resolution that benefits everyone, especially consumers," XM said in a statement.<br /><br />Warner Music, EMI and Sony BMG, a joint venture between Sony Corp and Bertelsmann AG, all declined comment.<br /><br />Warner Music is in talks with XM to try to settle the dispute and expects a resolution soon, said a source familiar with the matter who spoke on condition of anonymity.<br /><br />Janco Partners analyst April Horace said the Universal agreement would likely be followed by others.<br /><br />"Once you've created a precedent in how to resolve that issue, I think it's easier to resolve the others," said Horace.<br /><br />She said the two companies had likely agreed to a set fee for every related device XM sells, but noted that, since these devices were not XM's highest volume products, the payments were unlikely to have a material impact on XM finances.<br /><br />The original lawsuit, filed in New York federal court, had accused XM Satellite of "massive wholesale infringement" and sought $150,000 in damages for every song copied by XM customers using the Inno, which went on sale last year.<br /><br />XM argued the Inno, which is manufactured by Pioneer Corp, is a legal device that lets consumers listen to and record radio as the law has allowed for decades.<br /><br />"We are pleased to have resolved this situation in an amicable manner," Universal Music Chairman and Chief Executive Doug Morris said in a statement." XM is "recognizing the intrinsic value of music to their business and the need to respect the rights of content owners."<br /><br />XM, with more than 8.5 million subscribers, is waiting for regulatory approval to merge with No. 2 satellite radio company Sirius Satellite Radio Inc. Sirius already has a deal with the recording industry.<br /><br />http://news.yahoo.com/s/nm/20071217/wr_nm/xmsatellite_universalmusic_dc_7;_ylt=A0WTcUYWf2dHPgAB3wZHkPwANew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-56487660178198160482007-12-17T03:55:00.000-08:002007-12-17T03:57:59.437-08:00Hi-tech tools divide social sitesSOCIAL SITES: DAILY VISITORS <br />MySpace - 29 million<br />Facebook - 15 million <br />Friendster - 5.9 million<br />Orkut - 9.6 million<br />Bebo - 4.8 million<br />Source: ComScore July 2007 <br /><br /><br /><br />Social network sites are moving to make it much easier for software developers to write add-ons for the hugely popular web destinations. <br />Bebo, Facebook, Meebo and Friendster have unveiled plans to help them become more than places to keep in touch. <br /><br />The add-ons will allow users to add extras, such as video and music clips, to the personal profiles they maintain. <br /><br />The alliances behind the technologies also reveal the fierce competition between social sites for users. <br /><br />Tough choices <br /><br />In one of the broader announcements Bebo unveiled its Open Application platform which will produce a set of common interfaces that developers can use to create programs and applications that will work with the social network site. <br /><br />At the launch Bebo unveiled partnerships with more than 40 developers, including NBC Universal, Flixster and Gap. A sample application produced using the tools allows Beboers to create an interactive avatar that models Gap clothes. <br /><br />Significantly, Bebo's interface tools will work with Facebook's already announced development system. This will make it possible for the many developers who have written applications for Facebook to use their code almost unchanged for the Bebo network. <br /><br />Despite the tie-up on tools, Bebo and Facebook will not become a unified network. <br /><br /> Bebo said it would also support Google's Open Social initiative which aims to create a unified system of tools that can be used on any and every social network site. The Open Social tools are due to appear in early 2008. <br /><br />Social networking giant MySpace is backing Google's initiative. <br /><br />In a further boost for Facebook instant messaging network Meebo announced its support for the tool set. Meebo said it had no plans to support Google's initiative. <br /><br />At the same time Friendster announced that its development tools would be "open" so they can work on as many networks as possible. It has declared its support for Google's Open Social initiative. <br /><br />Finally, Facebook has announced plans to license its development system to other sites. Since it was announced in May 2007 more than 7,000 applications have been written for Facebook. <br /><br />This series of announcements shows how keenly contested this sector of the hi-tech market has become. <br /><br />The deals and technological tie-ups are all about building up as large an audience as possible in a bid to dominate the sector. <br />http://news.bbc.co.uk/2/hi/technology/7144143.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-11272698957946583452007-12-17T02:40:00.000-08:002007-12-17T02:41:23.861-08:00Emi boss wants more rights from artistsEmi's new owner, financier Guy Hands, wants artists signing to his label to agree to multiple rights contracts, allowing the music giant to profit from all aspects of their careers, from CDs to T-shirt sales. <br />Traditionally, music companies sign artists to recorded music contracts and they may also sign music publishing deals that entitle them to payment whenever the music is used. <br />However, Hands is understood to be planning to boost the number of multiple rights deals - sometimes called 360 degree deals. These mean the company will also take a share of tour and merchandising revenues. <br />One of the first to sign up was heavy metal group Iron Maiden, who joined EMI last week. <br />This type of deal is particularly suitable to artists such as Iron Maiden who get limited radio airplay but are hugely popular touring artists with strong record sales. <br />Music companies have been trying for some time to find other sources of revenue from their roster of artists as album sales fall in the face of the growth of online music. <br /><br />http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=427657&in_page_id=3New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-8938294293138478052007-12-17T02:38:00.000-08:002007-12-17T02:39:24.378-08:00Robbie Williams may quit EMIRobbie Williams's manager has raised the prospect that the star could quit EMI after he completes his final studio album for the struggling record company.<br /> <br />The singer, who is also contracted to release a best-of compilation, has been with the company for a decade and remains one of its biggest selling acts.<br />But his manager Tim Clark, co-founder of IE Music, told The Daily Telegraph: ''I would be very wary about signing him to any major at the moment."<br />Clark refused to comment on the star's current contract terms but said ''all options" were open once he has completed his obligations. That raises the possibility that Robbie could follow Paul McCartney and Radiohead, which have left EMI in the past two years and released new albums without a major label.<br />Last week EMI extended its 28-year recording relationship with heavy metal band Iron Maiden, in a deal that includes revenues such as touring, merchandise and sponsorship.<br />Williams is set to be the first major pop act to come up for renegotiation under EMI's new owner, the private equity giant Terra Firma.<br />Mr Clark said the internet offered opportunities for artists to reach their fans direct without the need for major labels. ''What concerns us with old ways is that we take overpriced and shoddy services, particularly now when we have a fantastic opportunity of getting to a fanbase direct. What we really don't want is the dead hand of multinationals throttling these brilliant opportunities," he said.<br />EMI's historic £80m 2002 contract with Williams pioneered the so-called 360-degree deal through a joint venture which manages the star's recording, writing, touring and performing activities.<br />He has yet to release an album since checking into rehab following his 2006 critical flop Rudebox. Terra Firma declined to comment.<br />EMI's rival Warner Music recently saw Madonna quit in a $120m (£59m) deal to join concert promoter Live Nation.<br /><br />http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2007/12/17/cnemi117.xmlNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-76735437270136854702007-12-14T04:35:00.001-08:002007-12-14T04:35:27.080-08:00Sir Paul McCartney puts his disillusion with EMI on recordSir Paul McCartney has accused EMI, his former record company, of becoming boring and taking him for granted. The former Beatle, speaking to The Times, complained that the British record company had become too bureaucratic – and how he had “dreaded going to see them”.<br /><br />“Everybody at EMI had become part of the furniture. I’d be a couch; Coldplay are an armchair. And Robbie Williams, I dread to think what he was. But the most important thing was, I’d felt [the people at EMI] had become really very boring, you know?”<br /><br />Last summer, after 4½ decades, Sir Paul left EMI to join the start-up Starbucks-owned record label Hear Music, which released Memory Almost Full. The album, which attracted positive critical reviews, has sold more than a million copies worldwide since its release this summer.<br /><br />Sir Paul accused EMI of being unimaginative, telling him that he should “go to Cologne” to market a new record. “This idea became symbolic of the treadmill, you know? You go somewhere, speak to a million journalists for one day and you get all the same questions. It’s mind-numbing. So I started to saying: ‘God we’ve got to do something else’.”<br /><br />EMI owns the rights to all the Beatles albums, which were released on its Parlophone label or the group’s Apple label. Although Apple was owned by the Fab Four, EMI retained the distribution rights in an agreement struck in the late 1960s and continued to distribute Sir Paul’s material after the band split up.<br /><br />He also complained about the long marketing lead times demanded by EMI, the so-called process of “setting up a record” in an attempt to enhance sales, recalling that John Lennon was able to force EMI to release Instant Karma a week after he had written it in 1970.<br /><br />Sir Paul said that he would ask EMI to release a song “next week”, to which executives would reply: “You can’t do that these days.” When told that EMI wanted six months “to figure out how to market it”, Sir Paul asked: “Couldn’t some bright people do that in two days? Jesus Christ, I said, ‘Look boys, I’m sorry, I’m digging a new furrow’.” <br /><br />The comments are a further embarrassment for Eric Nicoli, the former EMI chief executive who left the music major after its takeover by Terra Firma, the venture capital group led by Guy Hands. But Mr Hands is unlikely to be quite so concerned, as he is thought to agree with Sir Paul’s criticisms of the previous regime.New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-45674218948464909792007-12-13T01:04:00.001-08:002007-12-13T01:04:57.095-08:00Iron Maiden Closes Integrated Deal With EMIHeavy metal goliath Iron Maiden has struck an integrated international recording pact with long-time label home EMI, which branches out into other aspects of the band's business, including touring, merchandise and sponsorship.<br /><br />The recording deal covers the world except the United States, where Sanctuary handles the band's works. Financial details were not disclosed.<br /><br />Iron Maiden and EMI have a 28-year recording relationship. Since then, the band has since gone on to sell roughly 70 million albums, says EMI, including three No. 1 albums in the United Kingdom.<br /><br />And as the group prepares to embark on an extensive world tour, its management team says the timing was perfect to renew ties with EMI and bring the music major into other aspects of its empire.<br /><br />"For a band with a global following like Maiden, who rely on fan word of mouth, touring and marketing/sales expertise as they receive little or no radio or TV support, it is key that the 100% support and implementation of our visual marketing campaigns internationally is both effective and enthusiastic. EMI and their worldwide affiliates have always fulfilled this," comments manager Rod Smallwood.<br /><br /> <br />The band's 14th and most recent album, "A Matter of Life and Death" opened at No. 1 on Billboard's European Top 100 Albums charts, following its release in August 2006.<br /><br />The group's upcoming "Somewhere Back in Time" world tour has proved a box office smash, with stadium dates in Scandinavia, South America and Australia selling out in rapid fashion. The tour is due to kick off Feb. 1 at the Bandra Kurla Complex in Mumbai, India.<br /><br />Iron Maiden recently confirmed their first-ever U.K. stadium show, at the 50,000-capacity Twickenham Stadium in London on July 5.New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-48278955520102919422007-12-12T13:43:00.000-08:002007-12-12T13:44:23.285-08:00It looks all Christmasy for HMVMusic and books retailer HMV has reported reduced losses as it gets ready for the festive season. <br />Pre-tax loss before exceptionals in the six months to October was £28.7m, down from £29.2m in the same period in 2006. <br /><br />HMV's most important trading days are still ahead of it, with the retailer well prepared for Christmas, it said in a statement. <br /><br />The firm has struggled in recent years against stiff competition from supermarkets and internet retailers. <br /><br />"Less than a year into our three-year strategic plan, we are pleased with our progress," chief executive Simon Fox said in a statement. <br /><br />"At this stage, the most important days and weeks of our financial calendar are still ahead of us, and our stores and websites are very well prepared for Christmas," he added. <br /><br />Technology shift <br /><br />The group, which runs the Waterstones bookstore chain as well as music stores in its own name, saw total group like-for-like sales grow 5%. <br /><br />Like-for-like sales in HMV stores in UK and Ireland grew 9.2%, while sales at Waterstones were up 1.4%. <br /><br />Sales at the HMV.com website rose 68%. <br /><br />Overall, sales of technology products, games and DVDs were growing in line with the company's strategy, it said. <br /><br />HMV stores in UK and the Irish Republic were "successfully exploiting the high growth games and technology categories", Mr Fox said. <br /><br />Technology now accounts for 6% of sales in HMV UK and Ireland, almost halfway to the firm's three-year target of 13%. <br />http://news.bbc.co.uk/2/hi/business/7139870.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-87288030240884365832007-12-12T13:40:00.000-08:002007-12-12T13:42:00.191-08:00Microsoft buys UK mapping serviceMicrosoft has bought online mapping company Multimap to expand its web business, the US firm said. <br />Multimap, which was established in 1996, is among the UK's top 10 visited websites, receiving more than 10 million users each month. <br /><br />Microsoft hopes that the acquisition "will play a significant role in the future growth of our search business". <br /><br />Web search giant Google, Microsoft's arch-rival, provides its own online mapping service, Google Maps. <br /><br />'Huge opportunity' <br /><br />Microsoft's internet empire also includes services such as Virtual Earth, Live Search and Windows Live. <br /><br />Earlier this year Microsoft bought a 1.6% stake in social networking site Facebook for $240m (£117m) and US online advertising firm aQuantive for $6bn. <br /><br />It has not revealed how much it is paying for Multimap. <br /><br />Sharon Baylay, general manager of the Online Services Group at Microsoft, said that the deal with Multimap presented "a huge opportunity to expand our platform business beyond the UK and globally". <br /><br />Multimap has offices in America, Australia, South Africa and Turkey, as well as in London, and has a presence in 48 countries. <br /><br />http://news.bbc.co.uk/2/hi/business/7140920.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-2985842435581031172007-12-12T13:33:00.000-08:002007-12-12T13:36:31.611-08:00Spam advertasing growing LARGE<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSR1ios1J-ULV_VHDa-4CNikpQGMTZZ4G4baPOuIjCAdmHBvJpqUaKKlNJkvo_PVBITMlfVYTNa7q6hozi7OyoQCvX-zomwa4oXFcME0Ei9aunklf6ODn8lpjtaHZdv54NgCYoXYRRKnk/s1600-h/spampct.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSR1ios1J-ULV_VHDa-4CNikpQGMTZZ4G4baPOuIjCAdmHBvJpqUaKKlNJkvo_PVBITMlfVYTNa7q6hozi7OyoQCvX-zomwa4oXFcME0Ei9aunklf6ODn8lpjtaHZdv54NgCYoXYRRKnk/s320/spampct.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5143203050655763890" /></a><br /><br /><br />This news will come as a shock to none, but the volume of spam has continued to rise throughout 2007. So much so, in fact, that spam researchers say that electronic junk mail has long surpassed the volume of human-issued e-mail this year, despite efforts to thwart it. One company, Barracuda Networks, goes so far as to say that spam now accounts for 90 to 95 percent of all e-mail, with no end in sight. <br /><br />Related StoriesListen up: MP3 spam on the rise, despite being utterly stupid <br />The numbers come as part of the e-mail security company's annual spam report, in which it analyzed over one billion messages sent to its 50,000 customers. Barracuda says that the percentage of spam increased from 85-90 percent in 2006, and is way up from 5 percent back in 2001. After conducting a poll of 261 business professionals, Barracuda also found that over half—57 percent—consider spam to be the "worst form of junk advertising," almost double that of junk snail mail. Only 12 percent cited telemarketers as the worst. <br /><br />95 percent is awfully high (and as far as I can tell, accurately describes the ratio of e-mail that hits the server for me), but not everyone agrees on those numbers. Symantec has observed the overall spam volume increase from an average of 56 percent of all e-mail traffic in 2006 to about 71 percent in 2007, Symantec spokesman David Forstrom told Ars.<br />It's hard to say which company's numbers are more accurate—"Different monitors can legitimately get different results," University of Calgary computer science professor John Aycock told us. What's important are overall trends. One thing that everyone agrees on is that spam continues to morph in an attempt to get through filters. Both Symantec and Barracuda say that they have observed an increased use in file attachments in 2007, like PDFs and images, and security software vendor MXSweep says that spammers are also focusing on sending MP3 and Excel spam. <br /><br />Back in April, IDC predicted that spam would overtake human-issued e-mails in 2007, but this is one prophecy that we would have preferred didn't come true. The trend shows that the 2003 CAN-SPAM Act has done little to thwart spammers from upping the ante, despite suggestions to the contrary. A few charges may have been brought against spammers here and there, but the US government can only do so much when so many spammers are located elsewhere in the world and those in the US are so difficult to prosecute. <br /><br />http://arstechnica.com/news.ars/post/20071212-report-95-percent-of-all-e-mail-has-that-spammy-smell.htmlNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-87766265931419595282007-12-12T13:27:00.001-08:002007-12-12T13:31:12.442-08:00Apple TV- have you heard about that one yet?Why the Apple TV failed<br />By Charles Jade | Published: December 10, 2007 - 11:45AM CT <br /><br /> Way back in 1993, the first black Macintosh was a repackaged Performa LC 520 that came with a remote control—one that could control volume—and possessed a singular feature. The Macintosh TV let you watch TV using its cable-ready tuner, but not while you used the computer. It was an underpowered machine lacking expansion options, and it was canceled after a year. Fast forward 15 years and history may be repeating itself. Macworld reports on estimated numbers for the Apple TV in its first year. <br /><br />“In addition to the 400,000 Apple TV units we estimate Apple has sold thus far, the company will be lucky to sell another 400,000 in the year-end holiday rush, short of our one million estimate,” said Forrester analyst James McQuivey. <br /><br />Considering the level of interest, it will likely take more than luck to sell another 400,000 Apple TVs by Christmas. While "nearly half of all online adults" surveyed have heard of the Apple TV, only about 5 percent know—or apparently care—what it does, and fewer than 3 percent intend to purchase one. In contrast, Apple will likely sell 25,000,000 iPods this holiday season, but then there is no shortage of easily-available audio content. Not so with video for the Apple TV. <br /><br />Forrester analyst James McQuivey previously noted that NBC Universal made up 30 percent of the video content at the iTunes Store. A year after the Apple TV went on sale, there will likely be less content available for purchase, which may be why Apple appears to have agreed to higher prices for movies. However, a lack of content is only part of the problem. People buy music and they rent movies. Nearly a year after the introduction of the Apple TV, there are rumors that rentals may be coming, but what about visual quality? The Apple TV is designed with HD in mind, but video at the iTunes Store isn't even DVD-quality. <br /><br />If it isn't clear—and apparently it's not at Apple—the problem with the Apple TV is that its fate is ultimately in the hands of the content owners, not Apple. Those still thinking Steve Jobs will work out a deal with the movie studios like he did with the music labels need to understand that is exactly why he won't get such a deal. The best Apple can hope for in 2008 is high-priced, low-quality content, but that isn't going to save the Apple TV because it never should have existed in the first place. <br /><br />http://arstechnica.com/journals/apple.ars/2007/12/10/why-the-apple-tv-failedNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-37439253038798922192007-12-12T13:14:00.000-08:002007-12-12T13:18:28.617-08:00Bill Thompson thinks that iPod is mean..I want to admire Apple. I want to like them. In the last year I've bought - with my own money - three of its computers and two iPods, and enjoy them greatly. <br /><br />But its business practices do not stand up to scrutiny, and when it comes to music downloads it is just as bad as Microsoft on servers, putting its time and energy into creating barriers to competition instead of letting its developers and designers concentrate on doing great stuff. <br /><br />If Apple was serious about building a music industry around downloads and digital devices then it would open up its devices and interfaces to allow greater innovation and greater competition. <br /><br />It would have faith in its own products to compete in this larger ecosystem instead of trying to lock everyone in with tactics that resemble those of IBM in the days of the mainframe. <br /><br />I wrote a presentation this morning using Microsoft's PowerPoint, but displayed it using Apple's Keynote. Apple can sell Keynote because it took PowerPoint apart and figured out how the files work. <br /><br />Had Apple been unable to do so, or found that every time it figured out what was happening Microsoft changed the format, it would have complained loudly. <br /><br />Yet this is exactly the technique it is using against third party jukeboxes. And it is time it stopped. <br /><br />Read the whole article on:<br />http://news.bbc.co.uk/2/hi/technology/7002612.stm<br /><br /><a href="http://news.bbc.co.uk/2/hi/technology/7002612.stm"></a>New Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0tag:blogger.com,1999:blog-3126105497537462784.post-57933758308552519192007-12-12T12:51:00.000-08:002007-12-12T13:03:16.365-08:00How companies confuse their customers when DRM is involved-laugh with these critics!Last Updated: Tuesday, 11 December 2007, 11:56 GMT<br />The DRM maze for consumers<br /><br />The last few years in the history of digital content are littered with examples of Digital Rights Management (DRM) solutions that have been accused of being over complex and consumer unfriendly.<br /><br />WESTERN DIGITAL - FILE LOCK OUT<br />Western Digital sells a range of networked hard drives, which allows users to share files across both a local network of home computers and across the net.<br />But the firm has now blocked remote access to 30 different types of media files, including MP3s and MP4s, to users running its Anywhere Access program.<br />The company says it has done this as an anti-piracy effort, to prevent people from copying and sharing copyright files.<br />But the block makes no distinction between files which are user generated, such as home movies, and paid-for, DRM-protected content.<br /><br />ZUNE - SHARE AND SHARE NOT ALIKE<br />When Microsoft introduced its Zune media player to rival the iPod it boasted a supposed killer feature - the ability to share songs wirelessly with friends.<br />Unfortunately, the Zune not only failed to support the Digital Rights Management system Microsoft had pioneered for its partners, it also restricted the sharing of a song to "three plays or three days, whichever comes first".<br />Users were able to share a song but a friend had a limited number of plays and time, in which to listen to it.<br />And the restriction applied to any kind of music file - even if it was a track recorded by the user himself.<br />Strangely, many of the songs offered to Zune users for download from Microsoft's online store could not be shared at all due to "rights restrictions".<br />Microsoft has now lifted the time restrictions for listening to shared tracks.<br /><br />NOKIA - FREE MUSIC?<br />The world's largest mobile phone manufacturer has decided to tackle rampant music piracy by offering tracks for free to its customers.<br />The Comes With Music service will let owners of its premium handsets download as much music as they like to their phone or PC from the Universal catalogue.<br />There is no cost to download or a subscription fee. But there is a proviso - if users want to burn the music to a CD to play on a separate player, or in the car, they have to pay out.<br /><br />GOOGLE - NOW YOU SEE IT, NOW YOU DON'T<br />Before Google bought YouTube its foray into the world of online video was championed by its own-brand video store. The Google Video store let people buy TV shows such as Star Trek and CSI, which were protected by digital rights management.<br />Unfortunately, when Google decided to shut down the store in favour of supporting YouTube it left customers who had bought content unable to continue to play their videos.<br />Google initially offered its customers credit through its own online payment service, called Checkout, but after complaints it changed its mind and offered users a straight refund.<br />The issue highlighted concerns that digital content bought by consumers that is protected by DRM may not always be accessible if the content producer and/or distributors removes its support for the format.<br /><br />SONY - THE ROOT OF THE PROBLEM<br />In 2005 Sony took a new approach to protecting its CDs from copying by including software on the discs which automatically installed on a PC if the disc was played in a computer.<br />The software was designed to prevent copying but it also left PCs open to potential hacker and virus attacks.<br />Consumers were not told of the software on the discs and the discs themselves gave no indication of the copy protection software stored on them.<br />After the problems were highlighted Sony released a tool which would remove the program from users' computers - but it too had security issues.<br />Sony ultimately recalled the discs with the software installed and after a series of high-profile, class-action lawsuits paid out to consumers who had bought the CDs.<br /><br />ITUNES - DRM HERE BUT NOT THERE<br />When Steve Jobs issued his open letter decrying DRM on music many observers felt that the tide was beginning to shift against DRM.<br />Apple's iTunes store now offers users MP3s of music, without copy restrictions, from the EMI back catalogue.<br />But Steve Jobs has said the move did not mean an end to DRM on videos it sells via iTunes.<br />"The music and video markets are not parallel. The video industry does not deliver 90% of its content DRM-free," he said.<br /><br />CONSOLES - HI-DEF FUTURE?<br />The Xbox 360 and PlayStation 3 are capable of producing high definition video, up to 1080p, or so-called Full HD resolutions.<br />If you buy the HD-DVD player add-on for the Xbox 360 you can playback movies in the highest resolution available today, assuming your TV can support it, while PS3s can play Blu-ray movies out of the box.<br />However, all Xbox 360 consoles sold in the first 18 months from launch, and the first few months in the case of the low-end PS3's availability, do not have a so-called HDMI port. This is a digital interface to output video and audio, which can encrypt the information being sent to the TV to prevent copying.<br />HDMI is part of a system which allows content producers to protect their material by placing a protection flag on it, called an Image Constraint Token. This means devices that do not have a HDMI port (or DVI port) will not be able to play the content at the fullest resolution.<br />Potentially, it means many Xbox 360 owners and some early PS3 enthusiasts would not be able to play their legally bought HD-DVD and Blu-ray movies in the best quality, despite the fact Microsoft and Sony are leading supporters of HD technology.<br />So far, no HD-DVD or Blu-ray titles released have used the protection flag, but the technology is there to be implemented and it could mean millions of console owners would only be able to play their films at a quarter of the potential resolution.<br /><br />VIRGIN - SHUT OUT<br />When Virgin launched its digital offering, including a subscription "music club", in 2004 Sir Richard Branson boasted: "With a strong music heritage behind us, as a record label and a retailer, Virgin has a huge advantage, and platform to launch a digital service that will become the ultimate destination to buy, stream, burn and enjoy the best the music world has to offer."<br />Like many online music stores, it came with DRM designed to prevent copyright theft and to enable users to rent their music.<br />But when the site shut down in September this year it left members of The Music Club unable to play their songs, because they could no longer renew their monthly fee.<br />For customers who had paid extra to transfer their music to an MP3 player this was doubly frustrating.<br />http://news.bbc.co.uk/2/hi/technology/7136527.stmNew Business Concepts Music Industryhttp://www.blogger.com/profile/02943282771340854000noreply@blogger.com0