Future of The Music Industry

Thursday, February 17, 2005

Closing the Analog Hole


“The analog hole is the result of consumers making high-quality copies of original DVD content from the analog outputs of their DVD player, DVD recorder, or PC.  Macrovision ACP prevents or distorts copies of DVDs made over an analog interface to DVD recorders, PCs, digital video recorders (like TiVo, ReplayTV and Media Center PCs), in addition to D-VHS recorders (DVRs) and VCRs.“

Wednesday, February 16, 2005

Napster hack leads to free downloads

this is the good old boring story of lamely recording what you hear from the speakers to distrubute illegal music. but i didn’t know about microsoft initiation about this. amazing.

"Microsoft has created software to help block this kind of ripping, but it has rarely been used by content providers. Dubbed "Secure Audio Path," it adds noise to an audio file as it is sent to the sound card. Compatible cards can remove the noise before it reaches the speakers. Any attempt to tap the audio stream before it reaches the sound card would result in a near-unlistenable copy. "

i love microsoft.

Tuesday, February 08, 2005

from Future of Music summit.

Back in May I went to this summit about the Future of Music. I joined only a few of the panels but the rest of discussions were available online almost the day after. Here's one about alternative Compensation Systems:


 "Impose a small sales tax (1%) on a subset of all devices sold, services offered - that tax applied applied to 105 of the total volume = $1 billion for every one percent of tax. Total royalties in EU and US, was ~ $3 billion. "

Friday, February 04, 2005

mashing up trend - Music hackers/crackers

what the hell is going on with these music renegades? I can’t believe there are musicians out there who have time to remix an album completely.

“The Prodigy have been given the same honour twice. Last November ‘Music For The Bootleg Generation’ an unofficial remix of the ten year old rave classic ‘Music For the Jilted Generation’ appeared on BitTorrent and mash-up websites. Their last album, ‘Always Outnumbered, Never Outgunned’ appeared on P2P networks, remixed, as  ‘Always Outsiders, Never Outdone’ even before the release of the official album.

The Chemicals unofficial remix/mash-up album ‘Flip The Switch’ will be available for download tomorrow, with renegade reworkings from mash up scene hipsters like Cry.On.My.Console, Fake ID, Dunproofin, McSleazy, Big Bad Baz and others. The official album ‘Push The Button’ is released the same day.”

…read the rest on musicbiznews24

Digital Media Project - Content and Control paper

Assessing the Impact of Policy Choices on Potential Online Business Models in the Music and Film Industries.

 The main body of the paper assesses the policy implications for each model comparatively while four appendixes evaluate each model (Digital Media Store, P2P Stores, Collective Blanket Licensing, and Ancillary Products and Services) in greater depth. (link)

(via derek slaters weblog)


Last few days I’ve been listening to one of my favorite compilation series of all time: Sampled series

Thats why I thought I should share what I saw at the Trade Mark blog of Martin Schwimmer.

The music plagiarism project. where they have a list of  copyright infringement cases in history. The project  presents audio and graphic representations of musical works that are, or have been, the subject of adjudicated music plagiarism cases.



DRM articles

Derek Slater has put links to new Digital Rights Management articles online.

Thursday, January 20, 2005

Apple Itunes back together

According to a posting on Apple's Web site, Pepsi plans to distribute up to 200 million free songs in a promotion that kicks off at the end of the month.


Friday, January 14, 2005

Promotional Music Downloads

Promotional Music Downloads  - A Tool for Branding and Sales Generation

Pundits declared the recent Pepsi/iTunes promotion a mediocre success because only five million of the 100 million winning caps were redeemed during the two-month period of the campaign. Despite the lack of overwhelming success, additional promotional music download campaigns are proliferating throughout the US.

Key Questions

  • How can marketers and music services best use promotional downloads?
  • What audiences should companies target with these campaigns?

payment breakdown comparison CD vs. Itunes

ITunes Breakdown:

$0.99 download single song price to the consumer
less $0.34 to Apple
left $0.65 x 130% ( wholesale markup) x 12% (net artist net rate) = $0.10

$0.99 download single song price to the consumer
less $0.34 to Apple
left $0.65 x 130% (wholesale markup) x 3% (producer rate) = $0.025


CD Breakdown:

Here is a price breakdown from CD sales from Furdlog

This breakdown of the cost of a typical major-label release by the independent market-research firm Almighty Institute of Music Retail shows where the money goes for a new album with a list price of $15.99.

$0.17 Musiciansunions
$0.80 Packaging/manufacturing
$0.82 Publishing royalties
$0.80 Retail profit
$0.90 Distribution
$1.60 Artists royalties
$1.70 Label profit
$2.40 Marketing/promotion
$2.91 Label overhead
$3.89 Retail overhead




gates and communists

Bill Gates recently had an interview with CNET that all ipod hipsters responded by shouting "he's calling us communists! bahahaha!" here's Gizmodo's interview with him after that. I love his metaphor of speedbumps for DRM and this is exactly what I think DRM is about.

There will always be new ways and techniques for copying music illegally but hopefully purchasing music will be so much more convenient than it is now that people will prefer to go the respectful way. For now however, I see there are no fines for ipod users driving over the speed limit.

Here's the interview:


"Well, ignore DRM for a second. Should an artist that creates a great song be paid for that song? That's where you have to start. You don't start with DRM. DRM is just like a speed bump that reminds you whether you're staying within the scope of rights that you have or you don't. So you don't start with DRM. That's like saying, 'Do you believe in speed bumps?' You have to say, 'Should people drive at 80mph in parking lots?' If you think they should, then of course you don't like speed bumps."

a new blog, an obscure future

Nobody knows what the future will be for the music industry. In this blog we'll try to have an idea, guess and predict this future. Step by step. tune by tune.