Music industry set to embrace free downloads

I see the music industry has decided if you can't beat the pirates, join them! This article says 2009 will be a year in which many cellphone companies and online services providers start offering "free" unlimited as part of their service contracts. This development may not bode well for iTunes.

"Online and mobile services offering listeners unlimited “free” access to millions of songs are set to proliferate in the coming months, according to music industry executives.Unlike illegal file-sharing services, which the music industry says are responsible for billions of dollars in lost sales, these new offerings are perfectly legal. The services are not really free, but payment is included in the cost of, say, a new cellphone or a broadband Internet access contract, so the cost to the consumer is disguised. And, unlike pirate sites, these services provide revenue to the music companies."

Music Games bring new markets to recording artists

By golly, I think the music industry, like the street wench of "My Fair Lady", is finally starting to "get it!" Unfortunately, I can't get an iPhone with Verizon Wireless, but I see that the iPod Touch can play many of the games designed for an iPhone. My old trusty video iPod can't hold a charge beyond about an hour now anyway and I have to plug it into the computer for a recharge after my morning workout. I know I can buy a third party battery replacement for it but maybe I should be considering an upgrade!

Tap Tap Revenge, a free game that challenges players to keep up with catchy tunes by tapping in the right spots on the phone’s screen, was available in Apple’s iPhone application store when it opened in July.

It quickly climbed the store’s charts, and more than three million downloads later, Apple declared it the most popular free iPhone game of the year.

“We went to No. 1 in three days,” said Bart Decrem, co-founder and chief executive of Tapulous. “Within a week, artists reached out to have their music featured in the game.”

Many software companies have jumped on the iPhone bandwagon, seeing promise in the popularity of the phone and the demand for programs for sale or free download through the App Store. They include Smule, a start-up that created a program that turns iPhones into flutes; and giant game publishers like Electronic Arts, which recently released a version of its classic SimCity game for the iPhone.

Tapulous, based in Palo Alto, Calif., was founded in January after Mr. Decrem, a Belgian software executive, and his business partner, Andrew Lacy, came across an iPhone game called Tap Tap Revolution. They sought out its creator, Nate True, and brought him on board as a developer. (A third co-founder, Mike Lee, was forced out in August after the men disagreed over the company’s direction.)

For Mr. Decrem, who earlier helped create a social Web browser called Flock, the low cost and fast pace of making software for the iPhone made it feasible to create a company that focused exclusively on the device.

“It took two years and north of $5 million to bring Flock to market,” he said. “In this case, the longest you spend building an iPhone application is three months, and it takes four or five people. There’s less risk in terms of betting millions and years on something that might not work.”

To keep its game fresh the company created Tap Tap Thursdays, when it releases new music from artists like Michael Franti and the pop singer Katy Perry. Mr. Decrem said those songs regularly inspire a million game plays — and occasionally a lot of music sales, because players can click to buy the song through Apple. In October, Tap Tap Revenge players bought 50,000 copies of the featured track “Hot N Cold” by Ms. Perry.

The popularity of the game led Tapulous to begin introducing paid versions for $4.99 each, aimed at fans of specific artists or genres of music. In late October it released a Nine Inch Nails edition, followed by a holiday version called Christmas With Weezer, for which that band recorded some carols. Tapulous plans to release one of these each month, including a special edition featuring the Dave Matthews Band.

Tap Tap Revenge is patterned after games like Guitar Hero and Rock Band, which test players’ abilities to keep rhythm with popular songs. Those games have been hits on consoles like the Xbox 360, and strong sales of music through the games have given some hope to a beleaguered music industry. Harmonix, the creator of Rock Band, said last week that the game’s players had bought 30 million songs.

“The gravy train of the old days of having CD sales buffer you as an artist are gone,” said James L. McQuivey, a principal analyst specializing in media technology at Forrester Research. “Artists recognize that and are trying to be in more places at once.”

The British music label EMI, seeking a new source of revenue, collaborated with Tapulous on a version called Tap Tap Dance that includes tracks by Moby and Daft Punk.

“We absolutely feel these games could be the next big Rock Band or Guitar Hero,” said Cynthia Sexton, a vice president at EMI Music worldwide.

Ms. Sexton said she viewed the expansion into games and other outlets as a natural evolution of the music industry, though that revelation was not necessarily an easy one. “For a moment, we hid our heads in the sand and thought this was the end,” she said. “But it’s not. It’s really the beginning.” [FINALLY!!!]

Mr. Decrem said his company saw the opportunity in music sales. “We’re fortunate to be sitting at the intersection of a couple of powerful forces right now,” he said. “The iPhone is a device that is on fire, and artists are looking for ways to reinvent themselves.” - More, New York Times

Emusic to challenge iTunes

It finally looks like iTunes is going to get some serious competition. I use iTunes on a daily basis but, even though, their individual song price is reasonable, their video price at $9.99 is way too high. I'm hoping EMusic will be more reasonable with its video offerings. It looks like its audiobook offerings are going to be cheaper than Audible.com. However, since I have an extensive library on Audible.com, being one of their early members, I won't desert them now.

"The company that has given Apple’s iTunes the most competition in the song-download arena will now compete with it in selling audiobooks, too.

Beginning tomorrow, eMusic, which is second to iTunes in music download sales, will offer more than a thousand books for download, with many of them costing far less than on iTunes. For example, “The Audacity of Hope,” read by author Barack Obama, will cost $9.99 on eMusic compared with $18.95 on iTunes. The retail price for a five-CD version of the same book is $29.95.

The biggest selling point for eMusic is also its biggest point of controversy: the site uses the MP3 format, which works on any digital player but lacks the technology, known as digital rights management, that protects copyrighted material from unlimited duplication.

Some publishers are just dipping in a toe. Random House Audio, for example, will be selling about 500 titles, roughly 20 percent of its catalog, through eMusic. “We’re very interested in testing this, but we didn’t think it was appropriate to put all of our titles in a test program,” said Madeline McIntosh, the group’s publisher.

Like her counterparts in the music business, Ms. McIntosh is concerned about piracy, but doubts it will be as big an issue for audiobooks, which draw an older audience and are unwieldy to circulate. Unabridged audiobooks sold in stores often comprise more than a dozen CDs, and, in digital format, the enormous files cannot be e-mailed as easily as single songs.

Hachette Audio will start by selling only about 15 titles on the site, but that includes bestsellers like “America (The Book): A Citizen’s Guide to Democracy Inaction” by Jon Stewart.

At the other end of the spectrum is Penguin Audio, which will sell on eMusic all the audiobooks it currently makes available in a digital format on iTunes, about 150 titles. “Publishers have been waiting for other companies to play ball,” said Patti Pirooz, the executive producer.

Most publishers have been playing ball with Audible Inc., which pioneered downloadable audiobooks 12 years ago and sells its wares through iTunes and its own Web site, audible.com. Audible sells about 15,000 audiobooks and another 20,000 recordings of public radio shows and periodicals like The Wall Street Journal and The New York Times.

Audible has its own proprietary digital format, which plays on both iPods and non-Apple devices, but still cannot be duplicated except to copy onto CDs just once. Spokesmen from Audible and Apple declined to comment on eMusic.

Since it was founded in 1995, Audible has grown steadily. It went public in 1999, and its 2006 revenues of $82.2 million were up 30 percent over the previous year."

Music Publisher Association joins copyright suit against Google

Why am I not surprised???

English soccer's Premier League and music publisher Bourne & Co said Monday that eight more parties have joined their lawsuit charging Google and its YouTube online service with deliberately encouraging copyright infringement.

The new parties include the National Music Publishers' Association, which is the largest U.S. music publishing trade association, the Rugby Football League, the Finnish Football League Association and author Daniel Quinn.

Video programming owners have teamed up against YouTube, charging the top online video service with encouraging copyright infringement to generate public attention and boost traffic to its site.

Google has said it is abiding by existing law that protect Internet services from being liable for what is on their networks so long as they respond promptly to complaints.