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Posts Tagged ‘records’

Apple Shows it’s Hand

Thursday, September 10th, 2009

So Apple came out with its revamped Ipod range. Many are calling it a bit limp with the biggest news being that Steve Jobs is back at work and healthy. However I think a mild repositioning has taken place.

What was new then? Ipod Nanos were given a ton of functionality from cameras (video) to pedometers. Apple are trying to make them a lifestyle product which happen to play music. They increased storage capacity on the old school Ipods and upgraded the Itouch to similar internal specs as the Iphone but without the camera. Thats right, without the camera.

Whats goings on here? Its simple; ever since they launched the Iphone it was expected that at some point there would congestion and overlap with the Apple product portfolio. Hence Apple have clearly decided to give with some products but take with others. Want an Ipod that has a camera but can’t afford the phone? Your option is the Nano. Want a touch Ipod but do not want the phone, get the Itouch, but it won’t do everything you need. Each product is either reaching out to specific consumers or are designed in such a way as to infruite them and hence force them to own multiple devices or continually upgrade!

Now on the music front, there was no demonstration of a Tablet, and hence my prediction for what it might mean for the music industry is still out there. Whatch the next 6 months for that story to continue to bubble as it won’t die down. However they did launch their new version of the LP. A download that includes a lot more artwork, interviews, lyrics and other content. Itunes LP is what they are calling it, and Im not going to say that for the cost to produce that content, ‘it won’t work’. Im sure it will bring in extra revenue for the labels and publishers and should be welcomed. However don’t for a minute jump to hyping this to a return to the ’shared experience’ of all of us buying an album again.

Id like to see them sign some exclusive album or content deals and only sell them in this format. It would be an interesting experiment. If the content was compelling enough and sold at the right price would the LP format harm, boost or make no difference to sales?

Recent other developments, in Europe at least, are that Apple has approved a Spotify app, which means you can now get music onto your Itouch/Iphone devices from places other than Apple. A lot has been written about how major this is. Its not. Not really. For quite sometime we have been able to buy music from Emusic, Amazon and many others and place it on our Ipods and Itouch devices. So this is just a wee bit different as its an integrated app, and hence feels much more embedded into the device.

Maybe Im pushing for Apple to move into a space they will never move into, but whether it be the tablet or new functionality for the Itouch and Ipod range, I feel that at some point they will have to embrace music interactivity. Its not as if they are  unaware of it, Garage Band is a key free product with their Macs, but perhaps they have not yet joined up the dots and seen its value as a lifestyle element for their lifestyle products as well as their computers.

The Year where the application became more important than the music?The

Tuesday, September 8th, 2009

The Beatles: Rock Band will be out on the 9/9/09 and its already been reviewed on multiple sites. They love it. Its the same old music, many of us already have, remixed and mastered as part of a game or game format many individuals already have and enjoy. What is interesting is that box sets of the same remixed and remastered recordings are being released along side the game.

Which will sell the more copies? Which will generate more revenue for the labels and publishers? This will be a huge milestone if the game does significantly better. It won’t be the start of a trend, far from it, but due to the historic nature of the content and act it will be a marker, a confirmation of all that we have learnt over the last 3-5 years.

Over the same time period new Ipod Touch products will be released. These may be nothing more than the same as the new (well not, so new now) Iphones, with faster CPU and graphics along with the cameras enclosed. However there has been speculation that along with a tablet type device (the jury is still out as to whether it will see the light of day) a new form of music purchase will be announced. A package of content, which includes videos, perhaps lyrics and who knows what else. Im still of the thinking that it might include some kind of Garage Band (the software for Macs) inspired tool for remixing tracks, as the actual individual instruments and vocals would be sent. Why pay for remixes when you can in effect get your audience to create them for you!

So will this be the month or even year where the music industry puts its hands in the air and recognises that whilst the music is important, what consumers want is interactivity but interaction with compelling content? Watch this space.

Its been a while, so here is a round up

Thursday, May 21st, 2009

Its been a while since we updated this blog. That is not because there is a lack of news in the music industry! Far from it! However it is simply because we have been pulled in different directions by the industry itself. At the moment there any tons of opportunities to make money and pursue new audiences in the music and sound sectors. Indeed the creative industry sector is expected to grow over the next 5 years, and that despite the global economic downturn. 

Does this mean the times are good for everyone or even that the money you can potentially make from your ‘art’ and skills is of a high volume? Well lets tackle those two questions.

Times are clearly not good for everyone in the creative sector. As we know large record labels are failing, indeed they have been for sometime. However the recession is accelerating the rate at which their old business model is dying out. This is due to a number of factos such as:

  • People having less money on non essential purchases, such as music
  • When they do want to buy music, they want it for less (same with films, see the crash in DVD prices!)
  • Other industries which might have utilised music as part of their model, and hence are a customer of the music industry’s are trying to pay less, as they are making less. Ad funded websites for example.
  • Recessions are time when people invest in new businesses with new models, and the record labels do not represent this sector of business.
  • Some of the record label’s mother companies, which might have once absorbed their losses for strategic reasons are themselves losing money. Sony for example. Hence that puts more strain on any part of the overall business which is shrinking or failing, the music part for example. 
Its not just the music sector having to face up to new realities. In the UK, one of the largest commercial broadcasters, ITV, announced losses of almost £3 billion! This is due to a collapse in advertising revenue, the same problem that is resulting in many websites either downsizing, going bust or looking for new business models. Rupert Murdoch’s Newscorp is now actively looking at ending the ‘news and content’ for free culture on their websites and are publicly talking about introducing a subscription format for many or all of their websites.
However, despite the challenges and ‘bad news’ for the large companies, people still need content. In many ways, people need more of it now than ever. There are more and more websites that need to fill their pages. Due to the recession people are ‘in’ more than ever and need to be entertained at home. Hence we are witnessing the success and growth of the small to medium sized business in the creative sector. Due to the equipment needed to produce film, music and games being so much cheaper than it was, even 5 years ago, many of these businesses can now produce content to a professional standard. This is leading to them picking up work where previously traditional suppliers would have been automatically been chosen (due to to history and convenience). 
Each job itself might be worth less, perhaps substantially less, but the business’s costs are so much lower that it works in this new economic landscape. In many ways I do not see things going back to how they were with overpriced video suites and large recording studios in swanky locations. Id like to think that we have now reached a point in the development of the creative industry sector where in many ways we have gone back to the pre-industrialised way of making creative products, such as pottery, clothing, art etc. The idea of the artisan, in their home, or village producing on a small scale. 
So is the creative industry sector growing? Yes.
Is there going to be a much larger number of players in the market than there were previous to the recession? Yes
Will they be smaller in terms of turnover and employees than previous? Yes.
Is this good? Yes!!!!