FTC Expected to Approve Sony-BMG Merger Today

Music Industry No Comments »

The US Federal Trade Commission is this afternoon expected to give approval to the planned merger of Sony and BMG after the European Commission gave its unconditional blessing to the deal yesterday evening.

European Union antitrust regulators said they approved the merger of Sony and Bertelsmann AG’s music units because there was insufficient evidence the deal would harm consumers, but warned they would keep a close watch on any further consolidation in the industry.

The European Commission approved the 50-50 joint venture between Sony Music and BMG late Monday without conditions. The deal will reduce the number of music “majors” from five to four.

Related Reading

EC Approves Sony-BMG Music Merger [CNN.com]
Sony BMG Merger Gets the Nod [the Register]
EU to Keep `Close Watch’ on Music Business With Sony-BMG Merger [Bloomberg]
Sony and BMG Merger Backed by EU [BBC News]
Sony BMG Merger Gets the Green Light [MusicbizNews24]
BMG-Sony Merger Case Continues
[MusicbizNews24.com]
European Indie Labels Nervous at Proposed Sony BMG Merger [MusicbizNews24]

Fourth Gen iPod Revealed

iPod, Gadgets, Mobile Tech, Digital Audio, Apple No Comments »

Newsweek magazine give an exclusive look at the new look iPod’s online on their MSNBC affiliated online presence today (which can also be seen in print in the July 26th ‘iPod Nation’ cover story).

4th generation ipods

The streamlined digital music player gets a slightly thinner (by 1 millimetre) case and 50% longer battery life this is accomplished, Apple says, not by a heavier battery but diligent conservation of power. More importantly the retail price takes a $100 price reduction for the 20gig (now $299) and the 40gig flagship model (now $399). The 15gig ‘midrange’ model is to be discontinued.

The Newsweek feature did not say when the new iPods would be available. The details were revealed as part of a cover story on the iPod and its impact. The cover shows Apple CEO Steve Jobs holding one of the new, still-white models.

Related Reading

Apple Hatches 4th Generation iPod [CNet News]
iPod Nation [Newsweek]
New iPod Arrives Tomorrow [P2PNet]
New iPod Expected Monday, is Thinner, Cheaper, 12 Hour Battery [MacWorld UK]

Its A Wrap

Internet, MP3, Digital Audio, Music Downloads No Comments »

Wraptor, a unit of Free Radical Networks that has developed a new multimedia format and legitimate file-sharing technology called .wrap , said last week that it had signed a four-year agreement with the Vans Warped Tour, to create a compilation CD of unsigned artists that will also be distributed online, in the company’s proprietary .wrap file format.
Wraptor, a new DRM'ed P2P format

Slightly different circumstances now, but back in 2000, another new P2P system (the then under seige ‘original’ Napster) had just anounced a $2million deal to sponsor the summer Limp Bizkit tour. Also back then a Napster clone called Wrapster had emerged that enabled files other than mp3 to be shared on the Napster network.

Wraptors proprietary .wrap file format is a free form digital container that encrypts an .MP3 audio file for security and then wraps it with additional content such as lyrics, photos, biographies, discographies, CD labels, tourdates and album artwork. The main difference here is that it offers a flexible DRM protection method.

.wraps are digitally signed for extreme security. Unlike normal encryption/decryption, .wraps store the private key elsewhere, not within the .wrap. .wraps are interpreted data (runtimes), not executable files, making it impossible to store a virus within a .wrap. Additionally these runtimes are digitally signed as well.

So the .wrap seems to be treading on similar ground to the increasingly popular (though still very much niche) Weed files. Here burning and transferring of the audio file is restricted until purchase. Anyone can download a .wrap for free, but they can only view and listen to it a certain number of times before the .wrap expires. After that they’ll still be able to view all the visual content, but only the first 30 seconds of the audio will play until they pay to unwrap.

Weed rewards people who share files and respect artists’ rights. You can play a Weed file three times for free on any PC. After three free plays, you’re asked to pay for the file. You can use any current Windows Media-compatible player software to play the file. The Weed software, which keeps track of your account information, is used to purchase files.

Related Reading

Wraptor FAQs [Wraptor.com]
Weedshare FAQ [Weedshare.com]

iTunes Reaches The Magic 100 (Million) Downloads

Music Industry, Digital Audio, Apple, Music Downloads No Comments »

Apples popular iTunes download store reached the 100 million download target late Sunday in the US when Kevin Britten of Hays, Kansas downloaded the DJ Dangermouse remix of UK electronica act, Zero 7’s downbeat ‘Somersault’.

Apple launched its 100 million song promotion on July 1st and offered just over 5 million songs for download in in July, a rate of just over 2.5 million songs each week.

Back in October 2003 Apple CEO Steve Jobs had predicted the 100 million download landmark to be reached by the (then with only US availability) music service by its April year anniversary. By the second week in March this year Jobs admitted the figure was nearer half that figure.

There was an ironic twist to todays iTunes 100 million download headlines. DJ Dangermouse was in the news back in February for a different reason when his album ‘the Grey Album’ remixed the vocals from Jay-Z’s ‘The Black Album’ and music sampled from the Beatles’ ‘White Album’ caused widespread panic amongst the music industry, in particular copyright owners EMI who issued cease and desist notices to websites hosting the ‘banned music’. The resulting ‘Grey Tuesday’ protest saw an estimated 1 million tracks downloaded in a day.

Elsewhere in other iTunes news the Times newspaper reported that Apple is on the verge of agreeing a deal with independent record labels (or more precisely the Association of Independent Music the organisation that represents the labels interests) that will allow its iTunes music service to sell their tracks, citing sources close to the talks, the newspaper said a pact could be announced on Tuesday, ending a feud that has kept independent labels off iTunes since its launch in the UK, France and Germany last month.

The new deal is expected to ease the concerns of independent record labels that they would be locked into long-term contracts at fixed prices.

The percentage cut that they receive from songs sold over iTunes is also expected to be closer to the rates received by multinational record companies such as EMI and Sony Music. The royalty that Apple pays record companies from sales of songs over iTunes is a closely guarded secret, but is understood to range between 45 per cent and 60 per cent of the retail price.

Related Reading

Apple iTunes Music Store Hits 100 Million Song Mark [Mac News Network]
iTunes Tops 100M Downloads Mark [BBC News]

Canadian Music Industry Appeal File Sharing Decision

Internet, Copyright, Music Industry, File Sharing, Music Downloads No Comments »

The Canadian Recording Industry Association (CRIA) today appealed a court ruling in which a judge ruled that peer-to-peer file sharing was legal in Canada.

Like its American counterparts the RIAA, the Canadian group is trying to sue file-swappers who are trading copyrighted music online. But in March, a court blocked the label’s trade group from obtaining the identities of alleged file traders, saying that trading music over programs like Kazaa did not appear to be illegal.

The Federal Court of Appeal should set a date for arguments in the appeal in several weeks. CRIA said in its appeal that the lower court should have allowed its cases against alleged copyright infringers to go forward, and reiterated its stance that unauthorized file-sharing constitutes copyright infringement.

Full story:CNet News

Related Reading

Canadian Downloaders Less Likely to Buy Music [MusicBizNews24]

P2P File Sharing Still On The Rise

Internet, Copyright, MP3, Music Industry, File Sharing, Music Downloads No Comments »

Despite entertainment industry attempts to curb online song and movie swapping with lawsuits and education campaigns, more people than ever are using peer-to-peer services.
BigChampagne, which tracks Internet file sharing, says 8.3 million people were online at any one time in June using unauthorized services like Kazaa and eDonkey — up 19% from 6.8 million in June 2003.

The majority of files being traded were music, BigChampagne says. Porn videos and images were the second-biggest category
Since September, the Recording Industry Association of America has filed 3,500 lawsuits against music sharers who uploaded songs to the Internet. It has settled about 600 of them for fines ranging from $2,000 to $15,000.

Phil Leigh, senior analyst at research firm Inside Digital Media, says the findings are the strongest evidence to date that the lawsuits aren’t scaring people away from so-called P2P programs. “Many just don’t think they’ll be caught,” he says. And users have become savvier about adjusting software so they can’t be traced.

After the initial wave of lawsuits, research firms released studies suggesting people were spending less time on the peer-to-peer services. “What people say and what they do are two different things,” says BigChampagne CEO Eric Garland. “People were not willing to be forthright and admit to something that might get them sued. The fact is, peer-to-peer usage is much more widespread than it was a year ago.”

Full story:USA Today

Related Reading

Poll Shows Opposition to Download Suits [MusicBizNews24]
Music Downloads Overtaken by Movies [MusicBizNews24]
RIAA vs. the People [Electronic Frontier Foundation]

iPod, Say Hello to Pocketster

Internet No Comments »

We reported on the ‘Napster For PDA’s’ here back at the beginning of June (thanks to the lead from the Register).
Back then it was reported that a small European software company had done what the giants of the consumer electronics industry daren’t do - and put a potential Napster in every pocket.
Simeda, based in Bucharest, has ported Rendezvous to the Pocket PC platform and bundled it with a web server.

The software automatically discovers other devices on a WiFi network and allows people to stream or share music with just a couple of clicks.

Seems things have developed a little further and the new app has been christened Pocketster. Pocketster allows your Pocket PC to be discovered by other Pocket PCs in the area or by any PC running a Zeroconf (a.k.a Rendezvous) discovery stack.

pocketster

You can also discover other Pocketster users anywhere on your wireless LAN. Pocketster includes a web server (that you can use to publish information) and a music preview utility that allows you to stream music files from nearby Pocketster users. The Pocketster Pro version now includes an iPod module that allows you to transform your iPod into a wireless jukebox and stream music wirelessly directly from your iPod to a nearby computer or another Pocketster user.The module enables you to publish your iPod playlists and have anyone in the area listen to previews or download tracks wirelessly from those playlists.

The pictures included in the documentation on the Pocketster website are particularly explanatory of what it does and how easy it is to transform a DRM enabled device into a free networked music server.

Needless to say the software (which costs around $15) runs an explicit warning on their website, “Warning ! Simeda takes no responsability regarding the legality of the procedure described below. This procedure allows you to broadcast and/or share the music on your iPod. You must check the legislation that applies to you and decide accordingly…..”

A cynical stab at Napster like notoriety no doubt, but certainly an app that wont go un-noticed amongst rabid iPod geeks.

Related Reading

Pocketster Pro and the iPod [Simeda.com]
P2P Without a Network [Tech Central]
iPod Hacks [iPodHacks.com]
iPod Hacks and Help [Method Shop]

Music Downloads Overtaken By Movies

Internet, File Sharing, Downloads, Video, Music Downloads, Bit Torrent, Film No Comments »

Two surveys emerged during the last week both making much light of the fact that movies have apparently over taken music as the most downloaded file of choice.

On Thursday the increasingly paranoid MPAA were drumming up several (sometimes) hysterical headlines in the press.
“Illegal Downloads Are Growing, Hollywood Says” (Information Week),
“Video, Software Downloads Overtake Music” (Biz Report)
“Online Piracy Dogs Movie Industry” (the Guardian)
“Movie Piracy Takes Off Worldwide” (ECommerce Times) and 100’s more.

The Motion Picture Association of America (MPAA) says its worst fears are coming true. People are illegally downloading more movies, and as a result they’re paying to view movies less frequently, according to a ‘worldwide’ study conducted by the MPAA and online research firm OTX.

The ‘World Wide Internet Piracy Study’(PDF), released Thursday, indicates that nearly a quarter of Internet users have downloaded unlicensed copies of films, and that half of those did so for the first time within the past year. It also found that more than one-fourth of downloaders are buying fewer films on DVD and videotape, and 17% say they’re attending fewer theater screenings.

The ‘worldwide’ study was infact data samples taken from eight countries, the U.S., U.K., France, Germany, Japan, Australia, Italy, and Korea. Study participants were screened to be active moviegoers. With the help of OTX sample provider partners GoZing and Ciao, a total of 400 respondents were initially recruited in each country. This sample was augmented in several countries in order to provide a minimum sample of 100 movie downloaders per country.

Not everyone is convinced of the veracity of the findings. Jim Burger, an attorney with the Washington, D.C., law firm Dow Lohnes & Albertson, says the study lacks any empirical evidence.

“It is impossible to tell with any clarity that this is a valid study,” says Burger on Information Week
. “It’s interesting, but as far as I can tell, it may be picked out of the sky.” He says the MPAA is essentially making a connection between users saying they’re downloading more films and the fact that Hollywood saw a 3% drop in box office sales in 2003, when the two things may be unrelated.

Burger says the study’s findings could very well serve a political purpose as Congress considers the Inducing Infringement of Copyright Act of 2004, which would hold technology companies liable for enabling copyright infringements whether or not there is intent to do so.

The MPAA’s findings are backed by a seperate, second report from the Organisation for Economic Cooperation and Development (OECD), which says more movies were illegally downloaded last year than music tracks.The report to be published Monday says that across the OECD’s 30 industrialized member countries, music accounted for 48.6 percent of files shared online, compared with 62.5 percent in 2002, according to excerpts of the report seen by The Associated Press.

The OECD research, which was compiled with help from statistics from Big Champagne, a Los Angeles company that tracks digital downloads, says that illegal movie and TV downloads accounted for more than 34% of downloads over peer-to peer networks such as KaZaA, Limewire and Bearshare. The OECD report does not give separate numbers for pirated downloads and those that do not infringe copyright.

The study, which will be included in a larger technology report later this year, emphasizes that P2P technology should not just be equated with illegal downloading of music and movies. It is, the report said, a powerful technology that allows efficient distribution of legitimate files and data of all types.

“We see the technology as opportunity,” Wunsch-Vincent of the OECD said in ECommerce Times. Music and movie downloads “are only the start of how one could creatively exploit the idea of peer to peer networks.”

South Korea leads the world in the number of people who use broadband connections. Nearly 80% of the country’s residents have high-speed connections at home.

“Within two and a half years, we expect more than 70 per cent of our households will have Internet connections with access speeds of 20 megabits per second, which will allow them to download movies to watch on their high-definition TVs,” Chin Daeje, South Korea’s minister of information and communications said recently.

Its not by accident that countries with a higher reach of broadband access at home have more download activity. So that would make South Korea and Canada the ‘busiest’ file sharing countries in the world. So the OECD study claim that web surfers based in Italy, Belgium, France, Norway, Britain, Finland and Poland also downloaded a higher percentage of movies than those in the United States doesn’t make sense.

Poland has one of the smallest broadband reaches in Europe, the UK , despite government claims for a ‘wired Britain’ trails 20th in the world for broadband reach (only slightly ahead of Italy). The US. broadband reach is climbing towards 50% while in the UK only one in four has access to high speed internet.

Related Reading

Piracy Paranoia [the Fool]
Software Downloads Overtake Music [Yahoo! News]
Film Industry Needs an iMovies [Net Imperative]
Online Film Piracy Set to Rise [BBC News]
Respect Copyrights [RespectCopyrights.org]
Broadband Access in OECD Countries [OECD]
A Guide to Wireless Broadband for Public Sector Procurers UK (PDF) [Dept of Trade and Industry]
DSL Reports USA [DSLReports.com]
Broadband Use in the UK [ADSL Guide]
the Bandwidth Capital of the World [Wired]
US Broadband Dream is Alive in Korea [CNet-May 2003]

Apple Bites Back at Sony Claims

iPod, Gadgets, Mobile Tech, Digital Audio, Apple No Comments »

When Sony released details of the 20GB NW-HD1 Walkman they claimed to have trumped Apple with the number of songs that their device could hold — 13,000 compared to the iPod’s 10,000 — even thought the total capacity was half of the iPod’s. That message is misleading to consumers, according to Apple.

“We thought it was time to help set the record straight,” Greg Joswiak, vice president of Hardware Product Marketing at Apple, told MacCentral. “We’re disappointed that Sony has chosen to mislead folks with a marketing gimmick — we just want to make sure customer have the information so they can make an apples to apples comparison, if you will.”

Sony’s 13,000 song measurement is based on its ATRAC3 (Adaptive Transform Acoustic Coding for MiniDisc 3) compression system at the relatively low rate of 48Kbps (kilobits per second) while Apple’s measurement is based on the AAC compression system at 128Kbps. At the same bit rate, the Walkman can store around half as many songs as the iPod, which is consistent with it having half the storage capacity.

“ATRAC3 at 48Kbps is nowhere near CD quality,” said Joswiak. Funnily enough neither is Apple’s ‘near-CD quality’ 128Kbps. Normal CD’s are in general encoded at a bitrate of 1,411Kbps, AAC, MP3 and ATRAC are all ‘lossy compression’ methods and are most often used for compressing sound or images. In these cases, the retrieved file can be quite different to the original at the bit level while being indistinguishable to the human ear or eye for most practical purposes. Compression in the case of Apple’s sampling rate removes almost 90% of the original audio.

At the normal CD sampling rate each minute of audio takes up 10mb of space, audio compression shrinks that to roughly 1mb per minute (using Apple’s sampling rate example).

Apple also points out that Sony’s Connect online music store sells songs at 132kbps – proof, it says, that a higher bitrate is desirable.

Related Reading

Apple Attacks Sony’s Network Walkman Claims [NewsFactor Network]
Apple Sour With Sony [the Courier Mail]
The iTunes Phenomenon, P2P Networks and Music Lite [TechNewsWorld]
Sony’s First Walkman-Branded Hard Disk Player, NW-HD1 [Gizmodo]
First NW-HD1 Review (translation) [PC Watch-Japan]
iTunes Europe-A Preliminary Analysis (Buzzsonic.com)
Sony Introduce 20GB Music Player [Buzzsonic.com]
Sony vs. Apple, Sony Takes it up a Notch [EWeek]
EBU Technical Review-Internet Audio Codecs (PDF) [European Broadcasting Union,Switzerland]
Codec Review [Codecreview.com]
Results of Multiformat at 128kbps public Listening Test [Rjamorim.com]

Music Companies Get Ringtones Warning

Internet, Mobile Tech, File Sharing, Digital Audio, Downloads, Music Downloads No Comments »

The BBC has provided figures from a report published by Baskerville/Informa Media, which forecasts that ringtones will account for 12% of total music sales by 2008. The report suggests that the music industry needs to adopt a more “pragmatic” approach to ringtones than it has taken with other ways of selling digital music and should “rein in ambitions for unrealistically high royalties.”

According to this report, the ringtone market was worth $3 billion in 2003. Of this total, authors’ societies received $148 million in royalty collections, equivalent to year-on-year growth of almost 50%. The report forecasts that the value of ringtone sales in 2008 will be $4.7 billion. Assuming that the value of traditional music sales increase’s at 2% each year, ringtones will account for around 12% of total music sales.

According to the report, although piracy has yet to impact on the ringtones market, it could become a potential threat. “As the revenues in mobile music become more compelling, arguments over revenue shares look set to increase tensions,” said report co-author Steve Mayall, an analyst with Informa Media.

There are also worries that ringtones could become the target of pirates. Numerous websites are offering ringtones from artists without having the necessary licences to do so, said the report. Some countries have established agreements about the collection of royalties but in some there are no procedures in place. “Mobile piracy could decimate this still fragile business,” warned Mr Mayall.

There’s also the emergence of new software like Xingtone . Xingtone (who Seimens have a stake in) sells a $15 software package that allows consumers to transfer songs and other digital content that they already own to their cell phones, completely cutting out the music vendor. With other similar apps on the way too a ‘mobile version of Napster’ is a viable threat.

According to P2P monitor Big Champagne ringtones could be 6% of files traded using P2P software and websites.
Ringtones are delivered across a wide variety of file types, usually manufacturer specific. They include .rng (Nokia ringtone), .kws (Kyocera ringtone), and .emy (Ericsson ringtone). Those file types are not heavily traded, though non-proprietary MIDI files represent about 6% of total P2P traffic. BigChampagne`s Eric Garland said in Digital Music News this week, “MIDI is not ringtone-specific, but our inclination is that most MIDI files are probably ringtones.”

Last year in the UK, royalty bodies the PRS and MCPS recouped 2.5m UK pounds in ringtone revenue and only 0.02m from full downloads (pre-Napster/Connect/iTunes) via their Joint Online Licence scheme.

Related Reading

Music Firms Warned Over Ringtones [BBC News]
Mobile Entertainment Industry and Culture-study (166pg. PDF) [McGain.org]
Ringtonia [Textually.org]
MCPS-PRS Joint Online Licence [PRS/MCPS UK Ringtones Licence]
the Future is Now [MusicTank]
High-end Handsets - a Potential Threat [MusicBizNews24]
Fast Phones are Key to Mobile Growth
[MusicBizNews24]
Ringtones Worth $4 Billion a Year [MusicBizNews24]

File Sharing Micropayments Slow Progress

Internet, File Sharing No Comments »

On the subject of teenagers, credit cards and file sharing, Canadian music mag Chart Attack said recently, ” as record companies will readily inform you, the majority of illegal downloaders are young teens who, unless they’re spoiled little brats who get their own car for their 16th birthday, have no access to a credit card to access most legal download sites. Is it really a surprise that these young people, who are either not working at all or have some low paying retail job, are not rushing out to pay what they do make on music they can take for free?”

No surprise then that digital music stores are embracing prepaid cards as an alternative payment method for under 18s. Real Rhapsody, Napster and iTunes have all introduced pre-payment cards for sale in mainstream US. outlets like 7-Eleven, Best Buy, Target and Wal-Mart (amongst others).

One major profit drain for download services comes from credit card fees, which can rise above 20-cents per 99-cent download. “With royalties often crossing 70-cents per download, that leaves pennies in profits,” according to Rob Carney, VP of  Marketing for micropayment processor Peppercoin.

So what is holding digital music stores back from embracing a micropayment processing scheme that would reduce their per-transaction burden? According to Carney, “optimizing margins and profitability is just happening” as digital music stores exit their initial setup and customer acquisition phases. Although digital music stores are for the most part not using micropayment technologies currently, Carney told Digital Music News that Peppercoin has had “meaningful conversations with everyone”.

Peppercoin just announced an upcoming version 2.0 payment processing package, which migrates away from a clunky download and separate registration process into something more invisible. The micropayment technology passes along savings by aggregating an individual’s transactions across various merchants to spread out fixed credit card fees. It essentially takes lots of little payments and makes them into larger payments, with every merchant paying a smaller fixed cost fee.

PayPal, Pico Pay and UK based Music Engine are some of the other names currently all making tentative inroads into the micropayment field.

Related Reading

Of Mouse Clicks and Burgers [P2PNet]
PayPal Slashes Micropayment Fees [InternetNews.com]
PayPal Announces New Pricing For Digital Music Companies [PayPal press release]
Whitepaper: Paying for Digital Music with Advertiser-funded Micropayments [Pico-Pay]
PPay: Micropayments for Peer-to-Peer Systems (PDF) [Stanford Univ.]
the Death of Micropayments? [ECommerce Times]
Credit Card Micropayments [Rentzsch.com]
Monetising Anarchy [the Feature]
the Micropayments and the Ad:Tech Conferences in NYC [Digital Deliverence]

Canadian Downloaders Less Likely To Buy Music

Internet, MP3, Music Industry, File Sharing, Music Downloads No Comments »

Canada’s recording industry hopes a new study will dispel the perception that music downloaders will eventually buy copyrighted music.

The survey, commissioned by the Canadian Recording Industry Association and released by research firm Pollara Inc., indicates that 28 per cent of respondents who reported buying less music over the last 12 months cited the decline was mainly due to “downloading, file-sharing and CD-burning.”

While 52 per cent of non-downloading music consumers said they bought music in the past month, the survey reported, only 35 per cent of downloaders said they had purchased music in the same period.

“This research clearly indicates that music consumers who download are less likely to purchase music than those who don’t download,” comments Brian Robertson, President, Canadian Recording Industry Association (CRIA). “This negates arguments to the contrary that peer-to-peer activity is just sampling and those people go out and buy the music later from a legitimate source.”

The twin villains in the research were CD burners and illegal file-sharing sites like Kazaa. Recent use of CD burners to copy music has grown from 18 per cent in late 2001 to 35 per cent today (measured over the prior 6 months).

Almost half of music consumers who download said that all of the music they burned to CD came from file sharing sites like Kazaa.

Between Fall 2001 and Spring 2004, the number of music consumers admitting to using Kazaa in the past month had climbed from 8 per cent to 26 per cent. Almost half of those who regularly visit the file-sharing sites say they downloaded between 20 and 100 songs in the past month. Taken at face value, this amounts to an average of 180 million tracks per month, according to Pollara estimates.

CRIA reports that the Canadian music industry has experienced retail sales losses in excess of $465 million since 1999 as well as industry layoffs of over 25 per cent throughout the past year. More than 45,000 individuals are directly or indirectly dependent upon the health of the recording industry in Canada, including those in songwriting, recording studios, manufacturing, retailing, broadcasting, music publishing, concert promotion, management and many other primary and support services.

The CRIA’s attempts at mass RIAA style downloader suits and litigation have been blighted all the way in Canadian courts thus far. Canadian heritage minister Helene Chalifour Scherrer was ready to re-write Canada’s copyright laws to enable the Big Five record labels to open Canada and Canadians up to lawsuits.

In March Justice Konrad von Finckenstein ruled that putting music into a computer directory that may, or may, not be shared by someone else online doesn’t constitute copyright infringement under Canadian law. And last month’s Supreme Court online music tariff decision popularly known as the Tariff 22 case culminated nine years of legal wrangling as the Society of Composers, Authors and Publishers of Music in Canada (SOCAN), a leading Canadian music collective, failed in its attempt to pin a new royalty for downloaded music on Canada’s Internet service providers.

The Tariff 22 case dates back to 1995 when SOCAN first applied for a new tariff for downloading online music. After four years of hearings, the Copyright Board of Canada issued a decision in 1999 that largely absolved Internet Service providers from collecting such a tariff.

In a somewhat conflicting survey a Statistics Canada report released today reveals that slightly less than 38% of regular home Net users report downloading music in 2003, “down from a high of 48% in 2001.”

Read more:CRIA News

Related Reading

New Industry Study Shows Downloading and Burning Discourages Music Sales [CRIA News]
File Sharing No Threat to Music Sales [Washington Post]
Balancing Rights of Creators, Users [theStar.com]
Top Court Rules ISPs Not Liable for Royalties [CBC News]
Online File Swapping Legal:Court [CBC News]
The Recording Industry is Trying to Kill the Goose That Lays the Golden Egg [Bricklin.com]
RIAA Facts and Figures [RIAA]
Global Music Sales Fall by 7.6% in 2003 [IFPI]
Record Sales Up, Shows Soundscan, RIAA Playing With Stats? [Magnatune Blog]

iPod Mini Gets UK Release Date

iPod, Gadgets, Mobile Tech, Digital Audio, Apple No Comments »

Apple’s iPod mini music player will be released in the UK on 24 July. The 3.6oz, 4GB device, which holds up to 1,000 ‘CD-quality’ (in Apples proprietory AAC format) songs, will be available from Apple’s website, retail stores and authorised resellers for �179 later this month.

iPod mini for Mac and Windows has been only officially available in the U.S since its February debut there.

The mini iPod was originally penned for a UK launch in April though a harddrive shortage delayed the plans. Tight supplies of the tiny Hitachi hard drive at the core of the iPod mini forced Apple to delay increasing manufacturing (and worldwide availability) until July.

“The iPod mini has been a smash hit in the US, and we’re thrilled to finally be able to offer it to music lovers the world over,” said Apple chief executive Steve Jobs in a statement.

The iPod mini will be available in five colours: silver, gold, pink, blue and green. It has a click wheel similar to that found on the larger version and works with the iTunes music store, launched in the UK last month.

Related Reading

iPod Mini’s Set to Head Overseas [CNN Money]
World to Get iPod Mini [the Register]
Mini iPod to Debut Outside of US. [ZDNet News]
New Smaller, Flashier iPod Sells Out Fast [USA Today]
All Things iPod [iPodLounge.com]
iPod Mini Review [CNet Reviews]
MP3 Player:iPod Mini Review [PC Magazine]
Apple Unveils Smaller iPod, New Software [ATT.com]

CD Buyers Do It For Themselves

Gadgets, Mobile Tech, Music Industry, Digital Audio, Music Downloads No Comments »

A US. company is jumping into the whirlpool over downloading music with its own way to get customers to pay: stations where they can mix and burn their own custom CDs.
Mix+Burn Music Kiosk
St.Paul, Minnesota based Mix & Burn Inc has developed a laptop-size, touch-screen kiosk called a “Music Tablet” where consumers can download from a catalog of more than 200,000 songs spread among 200 music genres.

The kiosks, which are sold to retailers, will appear in two area stores in coming weeks. At $10 for the first seven songs and $1 per song after that, it’s not as cheap as free, but it is legal. And the service addresses a fundamental problem with how the music industry sells its product: People don’t like paying $15 for a 10-song album when they want only two of the tracks. An album can be created at a Mix & Burn station in about four minutes.

Mix & Burn expects to be testing the Music Tablet in further retail environments that include music specialty, mass merchandise, college universities, military bases, coffee shops and an assortment of other new channels for music retailing by this summer.

Back in May this year Minneapolis based Navarre Corporation acquired a 45 per cent share of Mix & Burn.

Eric Paulson, CEO of Navarre Corporation, stated, “We are excited about Mix & Burns development of The Music Tablet solution. Navarre hopes that this technology, together with our network of high level contacts at both the major labels and national retailers, will provide Mix & Burn with the ingredients for a successful launch. We hope that this new consumer experience will provide retailers a new and exciting breakthrough for in-store music purchasing. He added, “Our relationships with major record labels and independent labels helped them get licenses.

Navarre Corporation is a leading distributor of propriety and non-propriety home entertainment PC software, music and DVD.

The success of iTunes has persuaded the music industry to grant licenses to other legal download services. In March, Starbucks added kiosk-style listening and burning stations to its menu at some stores, selling albums for $6.99 for five tracks and $1 for each additional song.

Last month EMusic introduced a digital download service Emusic Live at Maxwells venue in New Jersey, enabling live music fans to download high-quality CDs of the performance they just saw in as few as 10 minutes after the last song has been played by loading performances directly onto their digital music player or USB pen drive via a state-of-the art kiosk.

Read more:Star Tribune

Related Reading

Instant Live Concerts [Instant Live]
In Store Music Discovery Kiosks [Savage Beast]
Product Solution Centre [Kiosk Magazine]
eMusiclive USB Keychain Drives Provide Concert-goers Legal Bootlegs [Audioholics.com]
Memorystick Adds Musical Dimension to Japanese Multimedia Kiosks [MemoryStick.com]
HMV, OD2 Sued Over Download Patent [ZD Net]
HMV Adopts Liquid Audio for In-Store Digital Music Kiosks [StreamingMedia.com- Sept. 2000]

Legal Asian Music Download Store Gears Up

Internet, Music Industry, Music Downloads No Comments »

Singapore based legal music download service Soundbuzz joined forces with computer audio equipment maker Creative Technology in a joint alliance to relaunch the service today. 250,000 songs are now available at $1.16 each in a format designed for quick downloading into Creative’s digital music players. The audio of choice is actually the Windows Media format.

Soundbuzz, which started in 1999, had pursued the big boys to come on board for four years. Prior to Sony, Warner and Universal saying yes, it had only linked up with EMI and BMG, and smaller, independent labels like Edel and Diva Records. It had a library of only 50,000 songs before the relaunch. Read the rest of this entry »

iTunes Europe - A Preliminary Analysis

Internet, iPod, Music Industry, Digital Audio, Apple, Music Downloads No Comments »

It can’t be denied that Apple’s iTunes music download store (or iTMS to give it the official acronym) has become something of a media phenomenon, it has also become one of the most over hyped services in living memory. With unadulterated positive press flowing endlessly, iTunes, if you listened to the majority of the mainstream press, can do no wrong.

Thankfully some sense of balance seems to be returning as chinks in Apple’s seemingly impenetrable positive PR armour appear. Randall Stross in todays New York Times article, ‘From a High-Tech System, Low-Fi Music’ rightly points out that far from being the claimed ‘CD quality’ that all legal download stores claim (not just Apple) the paid downloads are are actually heavily compressed versions of the originals. Using a ‘lossy format’ codec and an audio file that is a fraction of the size of the original. Lossy, means lossy, converting the Apple AAC file to lossless Wav does not restore the lost audio.

The Times article goes on. Defending the company’s decision to encode its music at the low end of the bit rate range, an Apple spokesman, Derick Mains, says 128 provides good sound quality, “especially when used in iPods.” “The majority of people,” Mr. Mains said, “have absolutely no idea what a bit rate is.”

“The smaller files are handy for speedy downloads, space-saving for storage and perfectly serviceable for listening through ear buds when riding on the subway. Not what you will want, however, when your desktop computer becomes the home jukebox and wirelessly sends these simulacra to the entertainment center in the living room.” Explains Randall.

Customers are led to believe that they are getting a CD in all respects except the trouble of going to the mall. The iTunes store does not warn about the permanence of its method of compression; once freeze-dried, there is no way to reconstitute the music into CD quality for playing through a good stereo.

The bit rate for iTunes, 128kbps, is so low that when played side by side against the original (the sampling rate for normal CDs is 1,411kbps) the difference is audible not only to audio enthusiasts, but also to mortals with ordinary hearing.

Wes Phillips, contributing editor at Stereophile, says “128 is like an eight-track,” and he describes the combination of iPod and iTunes as “buying a 21st-century device to live in the 1970’s.”

Elsewhere, students at the Berkman Center’s Digitial Media Project (at Harvard Law School) have published a report that considers the legal foundation of iTunes Europe and the interplay of the service with European law. ‘iTunes Europe: A Preliminary Analysis’ examines the implications of the expansion of iTunes on the future of digital media, technology, business strategies, and international law.

The report points out that although Apple is the most popular Internet-based music service, its sales constitute at most 2% of total recording industry sales. At the same time, the record industrys apparent willingness to give up the staggered release dates and price discrimination practices in their sales through Apples iTMS is a striking reflection of the power that an end distributor like Apple has managed to garner in the music business. Apples iTunes Europe launch may very well have marked a change in how power and control are distributed in the music industry.

Read full report: ‘iTunes Europe: A Preliminary Analysis’ (PDF)

Related Reading

Low-Fi iTunes Downloads [P2PNet]
From High Tech Gadget, Small Files But Lower Quality Music [International Herald Tribune]
the Joys of the Celestial Jukebox [Guardian Unlimited]
Audio Data Compression
[Wikipedia]
Perceptual Coding: How Mp3 Compression Works [Sound on Sound]
Audio & Multimedia MPEG-2 AAC [Fraunhofer IIS]
Digital Audio Formats Codec Basics [Global Music Resource]

Technology, Law, and the Future of Entertainment

Internet, Copyright, MP3, Music Industry, File Sharing, Music Downloads No Comments »

William W. Fisher III is the Hale and Dorr Professor of Intellectual Property Law and Director of the Berkman Center for Internet and Society at Harvard Law School.

Next month Fisher’s book “Promises to Keep: Technology, Law, and the Future of Entertainment” is published by Stanford University Press and promises to provide the first comprehensive, accessible overview of the conflict surrounding music distribution and the emergence of digital communications networks.

The book looks at how changes in the technology used to make and store audio and video recordings,in the last 15 years, combined with the communication revolution associated with the Internet, have generated an extraordinary array of new ways in which music and movies can be produced and distributed. Both the creators and the consumers of entertainment products stand to benefit enormously from the new systems.

And how we have failed thus far to avail ourselves of these opportunities. Instead, much energy has been devoted to interpreting or changing legal rules in hopes of defending older business models against the threats posed by the new technologies. These efforts to plug the multiplying holes in the legal dikes are failing and the entertainment industry has fallen into crisis.

The provocative book chronicles how we got into this mess and presents three alternative proposals each involving a combination of legal reforms and new business models for how we could get out of it.

One of those is ‘An Alternative Compensation System’, which takes up the whole of chapter 6 and is downloadable as a PDF preview, pre publication (August 9th).

Further Reading

Chapter 1:Promises To Keep:Introduction (PDF)
Alternative Compensation Systems [CrossCommons.org]
A Better Way Forward: Voluntary Collective Licensing of Music File Sharing (PDF) [Electronic Frontier Foundation]
A Full, Fair And Feasible Solution To The Dilemma of Online Music Licensing [Quicktopic.com]
Private Copying, Levies and DRMs against the Background of the EU Copyright Framework [Europa]


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