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May 2004

May 30, 2004

Majority Of Youth Still Download Illegally Despite Understanding 'Copyright'

An understanding of copyright law is not enough to stop kids from downloading copyrighted software, games, music and other digital media through illegal, online file-sharing networks, according to a new Harris Interactive poll conducted for the Business Software Alliance (BSA).

A majority of youth are aware that digital media files are copyrighted (91 percent of young people are aware that books are copyrighted; 88 percent, movies; 88 percent, music; 86 percent, software; 83 percent, games and 64 percent, Web sites), yet many of them admit to downloading files anyway. Just over half say they download music (53 percent) and a third download games (32 percent), while fewer kids say they download larger digital files such as commercial software (22 percent) and movies (17 percent).

"Unfortunately, many kids and teens continue to download copyrighted works illegally even though more than half of them think there are laws against downloading digital works," said Diane Smiroldo, vice president of public affairs for BSA.

"What's most alarming is that eight out of 10 kids and teens understand the definition of copyright and nearly all of them, especially teens, are aware that software, music and movies are protected by copyright. The fact that kids know stealing software is wrong, and yet they behave like it's okay, clearly illustrates a challenging ethical dilemma."

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Buzz Example - Rance Blog

mr_xRance claims to be on the Hollywood A-List, but writes under a pseudonym. Some believe he may be Owen Wilson, Ben Affleck, Jim Carrey or George Clooney.

About three weeks ago, an entry was posted which claimed Rance is a high school student.

Or maybe it's Homer Simpson.

Whatever the case, this is an example of buzz in action. The Rance Blog has only been up since December 29, 2003 and only has 73 entries as of today, yet it's got people talking and the search "Rance Blog" is currently #2 on the Yahoo! Buzz Index, right behind "American Idol."

May 29, 2004

More CD Buyers Try Legal Digital Music Services

According to the latest data from The NPD Group, an increasing number of CD buyers are also purchasing from legal digital music download services, such as iTunes, Buy.com and others. Legal digital music services also appear to attract consumers who tend to purchase more CDs than the average consumer. This comes at a time when fewer of these consumers are using peer-to-peer (P2P) services to share music files illegally.

Just under five percent of CD buyers reported using a legal service to purchase music during the first quarter of 2004, which is nearly three times the level NPD observed among music buyers during the same period in 2003 (1.7 percent). Among music buyers who purchased both physical CDs and a song download from a legal service, the likelihood that they also downloaded a song illegally fell dramatically, from 64 percent last year to 42 percent in 2004.

Subscription services showed only a slight reduction in the number of CDs that they purchased at retail. The average consumer who paid for digital music as well as CDs purchased less than one fewer CD in 2003 compared to 2002.

"Paid services like iTunes and Rhapsody appear to be attracting core music buyers, which can create a firm foundation for legal digital music purchases," said Russ Crupnick, president of NPD Music. "To date, NPD data shows that there has been a small reduction in sales of CDs; however, that decline might be offset by the overall value of the digital customer and the downturn in illegal file sharing."

Source:

May 28, 2004

California Bill Would Send File-Sharer To Jail

SB 1506, authored by Senator Kevin Murray (D - Los Angeles), received strong, bipartisan support as the Senate approved the measure 33 ­ 0.

SB 1506 simply updates the law to apply to the most pervasive forum for piracy ­ the Internet. The measure will help consumers and law enforcement distinguish between legitimate works distributed on the Internet and pirated works.

This statute is a valuable tool for local and state law enforcement to go after piracy and has become the model statute for other states and other countries to combat piracy.

Violation of the statute would be a misdemeanor punishable by a fine of up to $2500 and/or up to one year imprisonment. The penalties do not apply to those distributing files to their immediate family or within their home networks. A minor who violated the statute would have to pay a fine of $250 for a first or second offense and a fine not to exceed $1,000, imprisonment in a county jail, or both, for a third or subsequent violation.

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May 27, 2004

35 Rules for a Band

1. Never start a trio with a married couple.

2. Your manager's not helping you.

3. Before you sign a record deal, look up the word "recoupable" in the dictionary.

4. No one cares who you've opened for.

5. A string section does not make your songs sound any more "important."

6. If your band has gone through more than four bass players, it's time to break up.

7. When you talk on stage, you're never as funny as you think.

8. If you sound like another band, don't act like you're unfamiliar with their music ("Oh, does Rage Against The Machine also do rap-rock with political lyrics?")

9. Asking a crowd how they're doing is just amplified small talk.

10. Don't say your video's being played if it's only on the Austin Music Network.

11. When you sign to a major label, claim to have inked the best contract ever. Mention "artistic freedom" and a "guaranteed three record deal."

12. When you get dropped, insist that it was the worst contract ever, and you asked to be let go.

13. Never name a song after your band.

14. Never name your band after a song.

15. When a drummer brings in his own songs, and asks to perform one of them, begin looking for a new drummer immediately.

16. Never enter a Battle of the Bands contest.

17. Learn to recognize scary word pairings such as "rock opera," "white rapper," "blues jam," "swing band," "open mike," etc.

18. Drummers can take off their shirts or they can wear gloves, but not both.

19. Break it to your parents: it's rock 'n' roll, not a soccer game. They've gotta stop coming to your shows.

20. It's not a "showcase." It's a gig that doesn't pay.

21. Getting a tattoo is like sewing platform shoes to your feet.

22. Don't hire a publicist.

23. Playing in Akron, Ohio doesn't mean that you're on tour.

24. Don't join a cover band that plays Bush songs. In fact, don't join a cover band.

25. Although they come in different styles and colors, electric guitars all sound the same. It's not necessary to keep changing them between songs.

26. Don't stop your set to ask that beers be brought up. That's what girlfriends & boyfriends are for.

27. If you use a smoke machine, your music sucks.

28. We can tell the difference between a professionally produced album cover and one you made with the iMac your Mom got for Christmas.

29. Remember: if blues solos are so difficult, why can so many 16 year olds play them?

30. If you ever take a publicity photo, destroy it. You may never know where, when, or how it will turn up.

31. Cut your hair, but don't shave your head.

32. Pierce your nose, but not your eyebrow.

33. Don't wear shorts onstage. Or a suit. Or a hat.

34. Rock oxymorons: "major label interest," "demo deal," "blues genius," "$500 guarantee," and "Fastball's second hit."

35. Three things that are never coming back: gongs, headbands, and playing slide guitar with a beer bottle.

Congressman Boucher Urges Protection Of Fair Use

The House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection today held a hearing on H.R. 107, the Digital Media Consumers' Rights Act, a bill introduced by Congressman Rick Boucher which would protect the "Fair Use" rights of the users of copyrighted material and thereby enable consumers of digital media to make use of it in ways which would enhance their personal convenience. Congressman Boucher (VA-09) first introduced the legislation with Congressman John Doolittle (CA-04) during the fall of 2002 and reintroduced the bill at the beginning of the 108th Congress.

H.R. 107 addresses two key provisions of the 1998 law which prohibit the circumvention of a technical protection measure guarding access to a copyrighted work even if the purpose of the circumvention is to exercise consumer Fair Use rights. First, the bill would limit the scope of the prohibition to circumvention for the purpose of copyright infringement. Circumvention for the purpose of exercising Fair Use rights would be permitted under the legislation.

In addition, the bill would also amend the provisions of the 1998 law which prohibit the manufacture, distribution or sale of technology which enables circumvention of the protection measures. Under the current law, trafficking in those technologies is a crime if the technology was primarily designed to be used for copyright infringement. Since this legal standard is too subjective to give manufacturers confidence to introduce new products, the legislation would instead focus on whether or not the technology has substantial non-infringing uses. If the technology is capable of substantial non-infringing use, the manufacture, distribution, and sale of the product would be lawful.

Source:

May 26, 2004

Introducting the iParty

iPartyEmailerThought this was a cool way to find out about new music.

What is an iParty?

It's the analog version of file swapping. You can listen to the night's iDJ's and you also have the chance to be the iDJ. Just bring your iPod loaded with a thematic 30 minute playlist and sign up. The hosts draw names from those who brought along their iPods in order to select the night's guest iDJs and to give away cool prizes - DVD's, software, CDs, etc.

More Marketing Lessons from a Gas Station

As luck would have it, I happen to know the guy who owns this particular gas station. He's a friend of mine who used to be a tour manager.

There is always a music connection in Nashville.

Was talking to him a few months ago about the snafu that is the Iraq War when I pointed out, "Well, at least you're making more money on gas."

And he told me that he barely makes ANY money on gas. Even with the hundreds of thousands of gallons he pumps out every month to the SUV-loving Soccer Moms of the area.

The gas is just a lead generation. This guy makes his money on stuff from the convenience store and the service department.

But it's a gas station, right? Shouldn't they make money by selling gas?

WHO CARES?!

As long as the guy is making money (and it's legal and ethical), it doesn't matter.

Same for you. You're a musician, but it could be that your money isn't from music at all. Maybe it's from t-shirts. Maybe you're like Iron Maiden with a version of Eddie's Megastore and you sell pencil cases and bath robes.

You're just looking for something that enables you to make music. Sometimes that won't be the music itself. Kiss sells a lot more merch these days than they do music. And P. Diddy makes a lot more from his TV shows, clothing line, and other business interests than he does his record albums.

For more information on the concept, come hang out with me and Joe on one of our music business conference calls. We can turn your business around and make it work for you.

May 25, 2004

Ring Tones as Viral Marketing

Are ring tones a viral marketing tool? According to Artemis Records, yes.

They're including Xingtone software on the “Palm Trees and Power Lines” CD from the band Sugarcult and hope that you'll use it to transform any song on the disc into a ring tone for your mobile phone.

An easy way to get people talking about your music. And right now the novelty is still there to get a little ink.

The only problem is that you have to register the Xingtone for $15. Why not just distribute the ring tone directly and bypass the software altogether?

The Way the Music Died

PBS is running a FRONTLINE about the music industry.

More info...

In the recording studios of Los Angeles and the boardrooms of New York, they say the record business has been hit by a perfect storm: a convergence of industry-wide consolidation, Internet theft, and artistic drought. The effect has been the loss of billions of dollars, thousands of jobs, and that indefinable quality that once characterized American pop music.

"It's a classic example of art and commerce colliding and nobody wins," says Nic Harcourt, music director at Los Angeles's KCRW-FM. "It's just a train wreck."

In "The Way the Music Died," airing Thursday, May 27, at 9 P.M. on PBS (check local listings), FRONTLINE® follows the trajectory of the recording industry from its post-Woodstock heyday in the 1970s and 1980s to what one observer describes as a "hysteria" of mass layoffs and bankruptcy in 2004.

"This is the story of how the pressures to perform financially have affected the ability of many pop musicians to make the art they want," says FRONTLINE producer Michael Kirk. "The starkness of the difference between the environment that exists in the midst of this 'perfect storm' and the way the business once operated is nothing short of astonishing."

The documentary tells its story through the aspirations and experiences of four artists: veteran musician David Crosby, who hopes his newest album will cash in on the resurgence of baby boomers buying music; songwriter/producer Mark Hudson, a former member of The Hudson Brothers band whose daughter, Sarah, is about to release her first single and album; and a new rock band, Velvet Revolver, composed of former members of the rock groups Guns n' Roses and Stone Temple Pilots, whose first album will be released in June.

But how will these artists fare at a time when the record industry is clearly hurting?

"It's a big moment," says Melinda Newman, West Coast bureau chief for Billboard magazine. "There are about 30,000 albums released a year, maybe a hundred are hits. Sales have fallen from $40 billion to $28 billion in just three years."

FRONTLINE follows the trends in the record business that led to unprecedented growth of more than 20 percent per year in the 25 years following the industry watershed at Woodstock. Crosby, for example, recalls how his new band's album made millions after Crosby, Stills, and Nash performed at the legendary rock concert.

"It was the moment when all that generation of hippies looked at each other and said, 'Wait a minute! We're not a fringe element. There's millions of us! We're what's happening here,'" Crosby tells FRONTLINE.

FRONTLINE follows the career of rocker Mark Hudson, whose group The Hudson Brothers began as a 1970s rock band. "It was post-Woodstock, pre-disco, pre-MTV. So it was a point when music still had truckloads of integrity," Hudson tells FRONTLINE. "Somebody was getting ready to exploit rock and roll."

Hudson tells his story of how the business changed him and how The Hudson Brothers ended up becoming TV stars as the summer replacement for the Sonny and Cher Comedy Hour.

In the early 1980s, MTV fueled a further explosion of interest and seemed to broaden the appeal of rock music.

"I thank God for the music video channels because they're another way of getting people to hear music," says music industry veteran Danny Goldberg, now president of Artemis records.

But surprisingly, there are those who now argue MTV was a negative force.

"What it did really is make the business a one trick pony--and everything became about the three minutes, the single, the hit single," entertainment attorney Michael Guido tells FRONTLINE. "I think the album died with MTV. The culture in the record companies in the last twenty years has been to reward artists for three minutes of music, not for forty minutes of music."

Some critics fear that the industry's need for quick hits has made it difficult for more adventurous artists to offer the unique sounds and challenging themes that have long been the hallmark of the best album artists.

FRONTLINE also examines the effect of consolidation of ownership on the music industry. "What you had were these people who had been tremendous entrepreneurs...bought up by a multi-conglomerate," Billboard's Newman says. "And it just changes the complexion. The whole way you're having to make decisions is based on different models."

Michael "Blue" Williams, manager of the Grammy Award-winning OutKast, agrees. "We're run by corporations now," he says. "We have accountants running two of four majors now, and they don't get it. It's a numbers game. And music has always been a feelings game."

The consolidation of the radio industry also negatively impacted the recording industry, observers say.

"Thousands of radio stations changed hands, and companies that wanted to really get on radio were able to pull up some enormous multibillion dollar mergers," Los Angeles Times reporter Jeff Leeds tells FRONTLINE. "Suddenly a company that once owned three dozen stations could suddenly own a thousand."

With programming decisions centralized at the corporate level, most stations follow a mandated play list. In some cases, it's just fourteen songs per week--leaving little airtime for the introduction of new artists.

FRONTLINE profiles Mark Hudson's daughter singer/songwriter Sarah Hudson as she prepares to release her first album at a time when the music industry is struggling. "For any new artist, the odds are almost insurmountable. I think if they knew the odds, they would never get in the first place. You know, the vast, vast majority of records go absolutely nowhere," Newman says.

Vying with Hudson for a place on the Billboard charts is Velvet Revolver, a "super band" backed by RCA Records, a label that is betting heavily on the group. FRONTLINE follows the marketing of the band as its members struggle to return to the spotlight. Velvet Revolver's manager says success takes more than an expensive video and a marketing campaign. "It's still all about the kids. If the kids want to request it, it gets played more and more. The more it gets played, the more people buy. The more people buy, the more records they sell. The more records they sell, shazam, you're a rock star," David Codikow says.

"The Way the Music Died" is a FRONTLINE co-production with the Kirk Documentary Group. The producer, writer, and director is Michael Kirk.

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