The Music Industry’s Week Trends:Apple, Spotify, SocialMedia, AmieStreet,K'naan- MoonAlice and Gorillaz on Twitter & Trent Reznor

Weekly Digest on the Music Industry- April 12, 2009

Posted on 13. Apr, 2009 by Antonella Stellacci in Music Industry Trends, Trends

BREAKING NEWS

ONE BILLION DOWNLOADS FOR THE APPLE STORE

Apple’s numbers are worth noting, because the company reported 800 million downloads just a month ago, and hit half a billion back in January. iTunes, on the other hand, took two years to reach that number of songs downloaded. The all-time top 20 apps sees Facebook and Google Earth climbing past Pandora to become the top free apps, followed by Pandora, Tap Tap Range and Shazam. [VentureBeat]

TRENDS

SPOTIFY CEO INTERVIEWED BY THE GUARDIAN: MUSIC FANS WILL BUY MUSIC

“If you truly connect and empower your fan base, people will pay for music. Perhaps that revenue won’t come primarily from selling records, but ad-supported music services, subscription music, downloads, merchandise and live shows as well as CD sales are all going to make money for labels and artists,” the head of Spotify, Daniel Ek, told the Guardian. “I think the music industry as a whole can be in a better position than it has ever been,” said Ek. “There has been a massive shift from ownership to access but people will pay for music if packaged correctly and it offers them something special.”[The Guardian]

MONETIZING SOCIAL MEDIA – FORRESTER PREDICTION

Forrester research by Mark Mulligan (free summary; $750 for full PDF) predicts that even though social music may not generate much revenue now, monetization’s effectiveness must — and will — improve. Social music destinations will continue to build highly engaged audiences and deepen the relationship between fans and their music. But the labels will have to come to a compromise and change the licensing structure for streaming music. [Epicenter]

GOING UP, DOWN AND UNDER

DRM IS DEAD! ITUNES VARIABLE PRICING IS BORN

As announced in January, on Tuesday, Apple made good on its promise to remove DRM from every song in the iTunes store — a long-awaited move that the labels only allowed in return for Apple letting them price songs at three different points: 69 cents, 99 cents and $1.29. [Hypebot]

Only two days after, and Billboard reports that there was evidence the increases have hurt the sales rankings of songs given the higher $1.29 price.[BillBoard]

SPOTIFY API

It’s a good week for Spotify. Commercial terms were found with PRS [MusicAlly]

And on Tuesday libspotify, the company’s API, was launched to the public, which means that any developer (for approved devices) can build apps that access Spotify’s massive music catalog and use its P2P architecture, which streams Ogg Vorbis files between users like a streaming version of BitTorrent. [Epicenter]

VEVO IS COMING SOON

It’s now official: before the end of the year the new music video hub Vevo will see the light. Google/YouTube and UMG are working together at the new Join Venture and trying to get other labels on board. The big hope is to be able to better monetize music (videos). Will they be able to get to $25-40 CPM? [Billboard]

YAHOO MUSIC IS BACK

On Tuesday, Yahoo Music launches its redesigned artist pages incorporating music content from third parties:downloads from iTunes, albums from Amazon, streams from Pandora, music videos from YouTube, and tickets from Ticketmaster. Yahoo hopes this strategy will cut costs, while still providing music and videos for its 20-million-plus monthly visitors. [Epicenter]

LEGAL P2P COMEBACK? QTRAX (RE)-LAUNCH

The ad supported p2p finally “officially” launched last week with all four major labels on board. The subsidiary of Brilliant Technologies originally unveiled their service at the international music tradeshow Midem last year, but it quickly closed down after it turned out the company hadn’t finalized the major label agreements it said it had. Since then, Qtrax has signed licensing deals with all four major labels, and a number of independents.[Billboard]

SONGZA ACQUIRED BY AMIE STREET …SIX MONTHS AGO

TechCrunch was the first to discover that popular music store Amie Street has kept a deal it forged with Songza, a media streaming service, under wraps. The acquisition happened in October 2008 [TechCrunch]

WE7 AD-FREE SUBSCRIPTION AND REWARD SCHEME

We7 is funded by short adverts played at the beginning of each track alongside a paid-for download store. With the new rewards scheme, regular users collect points by spending time on We7 that they can exchange for ad-free days of music. The reward scheme will be followed in the summer by the launch of a paid-for subscription service for ad-free streamed music. This is likely to cost £9.99 for a month or 99p for a day. [MusicWeek]

GUNS N’ROSES AND ROCKBAND

“Chinese Democracy” will be released in its entirety into the Rock Band Music Store on April 14 and gamers will be able to download and play all 13 songs from the record, Harmonix and MTV Games announced Friday [Billboard]

SOCIAL MEDIA

TWITTER MUSIC POTENTIAL

Hip-hopper K’naan is revising his song “People Like Me” using fans’ tweets and the San Francisco sessions vets in Moonalice are planning a repeat performance of their real-time Twitter concert [UnderWire]

TWITTER PARTNERS AND GORILLAZ

No, Twitter Partners isn’t backed by Twitter, but Universal Pictures, Virgin Media and Gorillaz will use its services to launch on Twitter, soon. Supposedly virtual band Gorillaz is the first client to launch activity, promoting the documentary film Bananaz ahead of its theatrical release.[NewMediaAge]

FACEBOOK & PIRATEBAY

The Share on Facebook Pirate Bay feature didn’t last long. The Pirate Bay had recently made torrents more social by adding “Share on Facebook” buttons across its site. The social network asked TPB to remove the buttons. After being ignored, Facebook is now blocking all links to The Pirate Bay and its torrents—legal and otherwise. [Ars]

MUST READ

Trent Reznor Interview with Wired [TheUnderwire]

MUST WATCH: TRENT REZNOR INTERVIEWED BY KEVIN ROSE