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	<title>Snowcrashing &#187; Itunes Variable Pricing</title>
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		<title>Weekly Digest on the Music Industry- April 12, 2009</title>
		<link>http://snowcrashing.com/2009/04/13/the-music-industry%e2%80%99s-week-trends/</link>
		<comments>http://snowcrashing.com/2009/04/13/the-music-industry%e2%80%99s-week-trends/#comments</comments>
		<pubDate>Mon, 13 Apr 2009 04:35:31 +0000</pubDate>
		<dc:creator>Antonella Stellacci</dc:creator>
				<category><![CDATA[Music Industry Trends]]></category>
		<category><![CDATA[Trends]]></category>
		<category><![CDATA[AmieStreet]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[Gorillaz]]></category>
		<category><![CDATA[Guns N'Roses]]></category>
		<category><![CDATA[Itunes Variable Pricing]]></category>
		<category><![CDATA[K'naan]]></category>
		<category><![CDATA[Music Streaming Services]]></category>
		<category><![CDATA[Qtrax]]></category>
		<category><![CDATA[Songza]]></category>
		<category><![CDATA[Spotify]]></category>
		<category><![CDATA[Trent Reznor]]></category>
		<category><![CDATA[Twitter Partners]]></category>
		<category><![CDATA[Yahoo Music]]></category>

		<guid isPermaLink="false">http://snowcrashing.com/?p=43</guid>
		<description><![CDATA[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 [...]]]></description>
			<content:encoded><![CDATA[<div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fsnowcrashing.com%2F2009%2F04%2F13%2Fthe-music-industry%25e2%2580%2599s-week-trends%2F"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fsnowcrashing.com%2F2009%2F04%2F13%2Fthe-music-industry%25e2%2580%2599s-week-trends%2F" height="61" width="51" /></a></div><p><strong>BREAKING NEWS</strong></p>
<p>ONE BILLION DOWNLOADS FOR THE APPLE STORE</p>
<p>Apple’s numbers are worth noting, because the company  <a id="ko-c" title="reported  800 million downloads" href="http://venturebeat.com/2009/04/10/2009/03/17/app-store-25000-apps-800-million-downloads/">reported  800 million downloads</a> just a month ago, and <a id="cxtk" title="hit half a billion back in January" href="http://venturebeat.com/2009/04/10/2009/01/16/the-quickening-apple-app-store-hits-a-half-billion-downloads/">hit half a billion back in January</a>. 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. [<a title="Apple Store countdown to 1 billion downloads" href="http://http://venturebeat.com/2009/04/10/apple-app-store-closes-in-on-1-billion-downloads/" target="_blank">VentureBeat</a>]</p>
<p><strong>TRENDS</strong></p>
<p>SPOTIFY CEO INTERVIEWED BY THE GUARDIAN: MUSIC FANS WILL BUY MUSIC</p>
<p>&#8220;If you truly connect and empower your fan base, people will pay for music. Perhaps that revenue won&#8217;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,&#8221; the head of Spotify, Daniel Ek, told the Guardian. &#8220;I think the music industry as a whole can be in a better position than it has ever been,&#8221; said Ek. &#8220;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.&#8221;[<a title="Spotify CEO Interview" href="http://www.guardian.co.uk/technology/2009/apr/06/spotify-digital-music-downloads" target="_blank">The Guardian</a>]</p>
<p>MONETIZING SOCIAL MEDIA &#8211; FORRESTER PREDICTION</p>
<p>Forrester research by Mark Mulligan <a href="http://www.forrester.com/Research/Document/Excerpt/0,7211,53740,00.html">(free summary; $750 for full PDF)</a> predicts that even though social music may not generate much revenue now,  monetization&#8217;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. [<a title="Social Media Monetization" href="http://blog.wired.com/business/2009/04/social-networks.html" target="_blank">Epicenter</a>]</p>
<p><strong>GOING UP, DOWN AND UNDER</strong></p>
<p>DRM IS DEAD!  ITUNES VARIABLE PRICING IS BORN</p>
<p>As announced in <a title="Apple to remove DRM" href="http://blog.wired.com/business/2009/01/apple-promises.html" target="_blank">January</a>, on Tuesday, Apple made good on its promise to remove DRM from every song in the iTunes store &#8212; a long-awaited move that the labels only allowed in return for Apple letting them price songs at <a href="http://www.wired.com/techbiz/media/news/2009/04/reuters_us_apple_itunes">three different points</a>: 69 cents, 99 cents and $1.29. [<a title="Itunes variable pricing" href="http://www.hypebot.com/hypebot/2009/04/129-prices-another-missed-opportunity.html" target="_blank">Hypebot</a>]</p>
<p>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.[<a title="New Itunes pricing hurting top songs" href="http://www.billboard.biz/bbbiz/content_display/industry/e3i7917210cb575a9b9adc60840c7d7f16e" target="_blank">BillBoard</a>]</p>
<p>SPOTIFY API</p>
<p>It&#8217;s a good week for <a title="Spotify" href="http://www.spotify.com" target="_blank">Spotify</a>. Commercial terms were found with PRS [<a title="Spotify and PRS find an agreement" href="http://musically.com/blog/2009/04/08/spotify-signs-deal-with-prs-for-music/" target="_blank">MusicAlly</a>]</p>
<p>And on Tuesday <a href="http://developer.spotify.com/en/">libspotify</a>, the company&#8217;s API, was launched to the public, which means that any developer (for <a href="http://developer.spotify.com/en/libspotify/terms-of-use/" target="_blank">approved</a> devices) can build apps that access Spotify&#8217;s massive music catalog and use its P2P architecture, which streams Ogg Vorbis files between users like a streaming version of BitTorrent. [<a title="Spotify API" href="http://blog.wired.com/business/2009/04/spotify-opens-a.html" target="_blank">Epicenter</a>]</p>
<p>VEVO IS COMING SOON</p>
<p>It&#8217;s now official: <a title="Vevo" href="http://musically.com/blog/2009/04/09/umg-and-youtube-officially-announce-vevo/" target="_blank">before the end of the year </a>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? [<a title="Vevo hopes" href="http://www.billboard.biz/bbbiz/content_display/industry/e3ie9cf6d4fe9496d056c57a4cb0c196cdf" target="_blank">Billboard</a>]</p>
<p>YAHOO MUSIC IS BACK</p>
<p>On Tuesday, <a title="Yahoo Music" href="http://new.music.yahoo.com/" target="_blank">Yahoo Music</a> 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. [<a title="Yahoo Music re-launch" href="http://blog.wired.com/business/2009/04/yahoo-to-return.html" target="_blank">Epicenter</a>]</p>
<p>LEGAL P2P COMEBACK? QTRAX (RE)-LAUNCH</p>
<p>The ad supported p2p finally &#8220;officially&#8221; 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 <a title="Qtrax launch in 2008" href="http://blog.wired.com/music/2008/01/qtrax-first-loo.html" target="_blank">hadn&#8217;t finalized the major label agreements</a> it said it had. Since then, Qtrax has signed licensing deals with all four major labels, and a number of independents.[<a title="Qtrax launch plan" href="http://www.billboard.biz/bbbiz/content_display/industry/e3id54466e9215cc2ba9df6f99b8e0080cc" target="_blank">Billboard</a>]</p>
<p>SONGZA ACQUIRED BY AMIE STREET &#8230;SIX MONTHS AGO</p>
<p><a title="AmieStreet Acquires Songza" href="http://www.techcrunch.com/2009/04/08/news-flash-amie-street-swallowed-songza-six-months-ago/" target="_blank">TechCrunch</a> was the first to discover that popular music store <a title="AmieStreet" href="http://www.amiestreet.com/" target="_blank">Amie Street</a> has kept a deal it forged with <a title="Songza" href="http://www.songza.com/" target="_blank">Songza</a>, a media streaming service, under wraps. The acquisition happened in October 2008 [<a title="AmieStreet Acquires Songza" href="http://www.techcrunch.com/2009/04/08/news-flash-amie-street-swallowed-songza-six-months-ago/" target="_blank">TechCrunch</a>]</p>
<p>WE7 AD-FREE SUBSCRIPTION AND REWARD SCHEME</p>
<p><a title="We7" href="http://we7.com" target="_blank">We7</a> 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. [<a title="We7 Ad-free Subscription and Reward Scheme" href="http://www.musicweek.com/story.asp?storycode=1037464" target="_blank">MusicWeek</a>]</p>
<p>GUNS N&#8217;ROSES AND ROCKBAND</p>
<p>&#8220;Chinese Democracy&#8221; 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 [<a title="Guns N'Roses and RockBand" href="http://www.billboard.biz/bbbiz/content_display/industry/e3id54466e9215cc2ba71a635b60bea9e79" target="_blank">Billboard</a>]</p>
<p><strong>SOCIAL MEDIA</strong></p>
<p>TWITTER MUSIC POTENTIAL</p>
<p>Hip-hopper <a href="http://en.wikipedia.org/wiki/K%27naan">K&#8217;naan</a> is revising his song &#8220;People Like Me&#8221; using fans&#8217; tweets and the San Francisco sessions vets in Moonalice are planning a repeat performance of their real-time Twitter concert [<a title="Twitter Potential for Music" href="http://blog.wired.com/underwire/2009/04/twitters-musica.html" target="_blank">UnderWire</a>]</p>
<p>TWITTER PARTNERS AND GORILLAZ</p>
<p>No, Twitter Partners <a title="TwitterPartners" href="http://http://venturebeat.com/2009/04/09/twitter-has-real-business-partners-and-fake-ones/" target="_blank">isn&#8217;t backed by Twitter</a>, but  Universal Pictures, Virgin Media and Gorillaz will use its services to launch on Twitter, soon. Supposedly <span style="font-size: x-small;">virtual band Gorillaz is the first client to launch activity, promoting the documentary film Bananaz ahead of its theatrical release.</span>[<a title="NewMediaAge" href="http://www.nma.co.uk/Articles/42113/Twitter+backs+first+UK+ad+partner.html" target="_blank">NewMediaAge</a>]</p>
<p>FACEBOOK &amp; PIRATEBAY</p>
<p>The Share on Facebook Pirate Bay feature didn&#8217;t last long. The Pirate Bay had recently made torrents more social by adding &#8220;Share on Facebook&#8221; 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. [<a title="Facebook and The Pirate Bay" href="http://arstechnica.com/web/news/2009/04/facebook-not-interested-in-pirate-bay-booty-blocks-torrents.ars" target="_blank">Ars</a>]</p>
<p>MUST READ</p>
<p>Trent Reznor Interview with Wired [<a title="TrentReznor Interview" href="http://blog.wired.com/underwire/2009/04/trent-reznor-wa.html" target="_blank">TheUnderwire</a>]</p>
<p>MUST WATCH: TRENT REZNOR INTERVIEWED BY KEVIN ROSE</p>
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