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The Sky is Falling
                     Music Like Water
                                                                          (Digital Music News, 11/07/07), noted analyst Richard
                                                                          Greenfield of Pali Research issued an incredibly bearish opinion
                              The Digital Music Landscape                 on Warner. The analyst changed his recommendation back to
                          Fragmentation, Mobility, Opportunity                                       "No matter how
                                                                          sell, and targeted a $7.50 share price.
                                                                          many people the RIAA sues, no matter
                                  Stuart W. Volkow                        how many times music executives point
                                                                          to the growth of digital music, we believe
                                Svolkow@ucla.edu                          an increasing majority of worldwide
                                www.beatplay.com
                               www.stuartvolkow.com
                                                                          consumers simply view recorded music
                                                                          as 'free',"

                                                                                                                                       2
© Stuart W. Volkow 2012                                          © Stuart W. Volkow 2012




                                                                                                                        Tower Records
                          The Music business has                                                                        Closes its
                            been transformed.                                                                           Doors 9
                   Most people are getting music from                                                                   October 2006
                   their friends — either burning CDs or
                   ripping digital files. And despite the
                   record industry’s crackdown, there is
                   no reduction in the number of people
                   of peer-to-peer file sharing service.

                               NPD Market Research 2008




© Stuart W. Volkow 2012                                          © Stuart W. Volkow 2012
2003



                                                                                                       2009

                                                                                                                          2007



© Stuart W. Volkow 2012                                                                      © Stuart W. Volkow 2012




             A Brief History of Digital Music
        • October 1st 1982 Billy Joel's 52nd Street, becomes the first album released on            Short History of Digital Music
          a “Red Book” audio CD. It becomes one of the most rapidly adopted CE formats
          in history and is the cash cow for the record industry for the next 20 yrs. A CD
          has a nominal capacity of 80 minutes.

        • July 7th 1994, The Fraunhaufer Inst. released the first software MP3 encoder.
          MP3 uses Perceptual Encoding realizing a 10 fold compression ratio whilst
          maintaining good fidelity.

        • 2000 Shawn Fanning Approaches the Labels to Create a Legal Approach to File
          Sharing and they return the favor by suing him out of business.

        • Time Westergren’s Music Genome Project Begins

        • October 23, 2001 Apple introduces the first iPod at 5 GB and $399. It was
          based on the “Portal Player” reference and with help from an outside UI design
          firm. January 9th 2001 Apple releases iTunes. 1,000 songs in your pocket now
          looks laughably small.

        • 2005 Pandora Launches on the Web

        • April 9, 2007—Apple® announced that it had sold the 100 millionth iPod®. On
          9 Jan 2007 at Macworld, Jobs declares that iTunes has sold over 5 billion songs
          have been sold on iTunes and Apple is now the nations 4th largest music
          retailer.

        • October 2008, MySpace makes a deal with the 4 majors and streams 1 billion
          plays.                                                                  7                                              8
© Stuart W. Volkow 2012                                                                      © Stuart W. Volkow 2012
Digital Music 2011
      • Over 275 million iPods Sold
                                                                                                               But......
      • iTunes is the 3rd most widely installed Windows Application.
                                                                                      • iTunes sold Four billion songs after nearly five
      • iTunes has sold over 10 Billion songs and is the largest music                     years. It took Apple about two and one-half years
        retailer in the USA                                                                to accomplish its first billion.
      • App store downloads; over 3 billion

      • Pandora reportedly has 125 million subscribers, is deployed on                • The fourth billion happened after roughly seven
        over 450 devices and has 68% share of Internet Radio (Pandora                      months, about equal to the time between the
        News Release).                                                                     second and third billion.

                                                                                      • The second billion was announced in early
                                                                                           January of 2007, and the third came at the tail end
                                                                                           of July.



                                                                         9
© Stuart W. Volkow 2012                                                      © Stuart W. Volkow 2012




                                                                                                       World’s Largest!



                          State of the Industry



                             13 million copyrights




© Stuart W. Volkow 2012                                                      © Stuart W. Volkow 2012
$3.38 Billion
                                                                                                                                                           Market Cap
                                                         23% US Market
                                                                                                                                                           21% US Market
                                                                                          More than one million compositions
                                                                                                                                               Warner Music reported a loss
                          Now: Sony Music Entertainment Inc.                                                                                   of $16 million, or 11 cents per
                                                                                                                                               share, in the quarter ended
                                                                                                                                               Dec. 31, after a profit of $18
                                                       ✦Arista                                                                                 million, or 12 cents per share,
                                                                                                                                               in the year-earlier period.
          A failed union                               ✦Columbia
                                                       ✦Jive                                                                                   The results sent shares of the
                                                                                                                                               New York-based music
                                                       ✦RCA                                                                                    company tumbling $1.80, or
                                                                                                                                               20.6 percent, to $6.94
 Originally formed as a JV in 2004,                    ✦Epic                                                                                   Wednesday. The stock has
 Sony BMG's revenue fell over 46.3%                    ✦Jrecords                                                                               traded in a 52-week range of
 over five years, while the number of                                                                                                           $4.57 to $21.51.
 employees at the label dropped from                   ✦Legacy                                                                                 AP 6 Feb 2008
 4,880 in 2003, to 2,851 in 2007. Sony                 ✦Rocnation
 bought out Bertelsman’s 50% stake in
 2008.                                                 ✦Verity
© Stuart W. Volkow 2012                                                  © Stuart W. Volkow 2012




                          Warner Music Group                                 At home, Warner Music Group hit another
                                                                             milestone, as U.S.digital music unit sales
                                                                             surpassed those from physical for the first
                                                                             time. “We’ve crossed the threshold of 50/50
                                                                             in the U.S.,” new CEO Steve Cooper told
                                                                             analysts. “The rest of the world is still about
                                                                             two thirds to a third.”


                                                                                                                    Digital music sales have helped shield Warner Music's
                                                                                                                    revenue from declines in three of the past four
                                                                                                                    quarters.
                                                                                                                    But the privately-held company said its digital future will
                                                                                                                    be put in jeopardy if the planned acquisition of rival EMI
                                                                                                                    by Universal Music Group and Sony/ATV goes ahead.
                                                                                   AP,updated 2/9/2012 3:43:05 PM   Chief Executive Stephen Cooper told analysts
                                                                                                                    Thursday that the purchase of EMI for $4.1 billion
                                                                                                                    would "significantly impair" Warner's ability to compete.
                                                                                                                    The company has argued the deal would impart a
                                                                                                                    dominant market share to Universal in recorded music
                                                                                                                    and Sony/ATV in publishing.

© Stuart W. Volkow 2012                                                  © Stuart W. Volkow 2012
EMI Group                                                                              New Order ?
                              Worlds largest publisher
                              with over 1 million songs        £1,751.5 million

                                                                                                                   Over 1,000 Radio Stations
                                                                      8% US
                                                                      Market



                                                                    •Capital
                                                                    •Virgin
                                                                    •Blue Note
                                             EMI revamp tougher than
                                             expected, says owner Guy                                                  10 year $120 million
                                             Hands
                                                                                                                                              12 year deal with U2
                                                   3,000 jobs cut
© Stuart W. Volkow 2012                                                           © Stuart W. Volkow 2012




                                                                                                                      F A I L
                                                                                         ✦ Napster
                                   DIY                                                   ✦ Qtrax
                                                                                         ✦ Spiral           Frog
                           ghosts.nin.com                                               ✦ Ruckus
                          www.radiohead.com                                             ✦ Imeem
                          www.madonna.com/                                              ✦ iLike
                          www.davemathewsband.com                                       ✦ MyStrands
                          www.ArcadeFire.com                                            ✦ Zune
                                                                                         ✦ Sony        Music Store
                                                                                         ✦ UMG         Music Store



© Stuart W. Volkow 2012
1 Billion Streams
                                                                                        in First Week                                           From $580 Mln in 2005 to $35 Mln
                                                                                                                                                  to Specific Media in June 2011
                                                                                                                                                      (Justin Timberlake Invested)




                                                                                                                                         Text




© Stuart W. Volkow 2012                                                               © Stuart W. Volkow 2012




                                                                                                         Seeqpod (http://www.seeqpod.com)
                    Imeem (http://www.imeem.com)
                     • Legal, Yes.                                                         •    Classic internet search engine -
                                                                                                but with emphasis on 'playable
                                                                                                search results'
                     • Sensible?                                                               •    Crawls for media files (including a
                          “Far from a breakthrough, it is a death sentence for
                                                                                                    youtube adapter)
                          Imeem. Under a dark cloud of looming lawsuits,
                          Imeem entered into a crushing financial agreement                    •    A 'vector-space' (tf-idf) model of text
                          that allows them to survive as long as venture capital                    around the link to the media content is
                                                                                                    collected (i.e. terms found near the link
                          money continues to flow into the company, but spells                      are thought to be related to it)
                          almost certain financial calamity once outside funding
                          halts.”                                                              •    Exposes keyword searches to the user

                          Michael Robertson
                          http://www.michaelrobertson.com/archive.php?minute_id=250
                                                                                           •    Doesn't host only searches.
WMG Vs Seeqpod Lawsuit Key Points
                                                      ....WMG Differs




    Copyright Stuart W. Volkow 2008                                     25       Copyright Stuart W. Volkow 2008                                       26




                                                                                                                   Songza (http://www.songza.com)
                                      SkreemR (http://skreemr.com)

•    MP3 search engine                                                       •   Track metadata keyword search
                                                                                 by artist, title, album.
    •        Media crawler
    •        Audio ‘quality’ ranking                                         •   Content from Youtube (music
                                                                                 vids), Imeem (track plays) and
    •        Search by track metadata (artist /
                                                                                 others
             title)

•    Doesn't host any content,                                               •   Links to Amazon MP3 to buy
                                                                                 tracks
     just provides searches.
    •        Uses embedded player/widgets                                    •   "Songza pays for licenses from all the
                                                                                 major performing-rights organizations
    •        Saved Playlists                                                     (ASCAP, BMI, SESAC), who then pay
•    “SkreemR respects the intellectual                                          the publishers and writers in
     property of others, and we ask our users                                    proportion to the number of plays
     to do the same. If you believe in good                                      they get on Songza."
     faith that materials we link to infringe
     your copyright, you (or your agent) can
     contact us requesting that we remove the
     links to the material. “
FAIL                                                     FAIL
            October 2008
            Nokia unveils
       Comes With Music
    U.K.-only deal touts access to
          millions of tracks



Nokia's unlimited "Comes
With Music" plan misses
 the boat due to DRM
  David Chartier, Arstechnica.com




© Stuart W. Volkow 2012                  © Stuart W. Volkow 2012




                                                                          Social Music
                                                                         Discovery/Sharing
                                                                      imeem




                                                        Mediaraptor




       Copyright Stuart W. Volkow 2008
                                         © Stuart W. Volkow 2012
Internet Music Services




                                                                                                                                            33

© Stuart W. Volkow 2012                                                                                                                                            © Stuart W. Volkow 2012




   Why Pandora Is on Virtually Every Device
   On Fridges, Fords and Phones, It's Become the De Facto Radio App After Being on the Brink of Bankruptcy
   By: Andrew Hampp
                                                                                 FEBRUARY 11, 2011, 7:25 PM I.P.O./OFFERINGS


                                                                                 Pandora Files to Go Public
                                                                                 BY EVELYN M. RUSLI

                                                                                                                               Thor Swift for The New York Times
                                                                                 Tim Westergren, founder of Pandora Media.



                                                                             "Smartphones really turned
                                                                             Pandora into an anytime,
                                                                             anywhere service without us
                                                                             doing anything," Pandora
                                                                             founder Tim Westergren said,
                                                                             noting that half of smartphone
                                                                             listening is done in users'
                                                                             cars.




      Yvonne Malmgren, a
      spokeswoman for the BMW
      Group, said Mini drivers                                          Kurt Jovais, director of Samsung's home
      overwhelmingly asked for                                          appliances, said, "The apps on our LCD
      the service when the                                              refrigerator are all kitchen-specific for the
      automaker started                                                 new kitchen center, and Pandora was the
      researching potential                                             easy choice as a music service people
      partners for its new Mini                                         know and love."
      Connected App player.




© Stuart W. Volkow 2012                                                                                                                                            © Stuart W. Volkow 2012
Curation, Recommendation




 VEVO was created in partnership by Universal Music Group (UMG), Sony Music
 Entertainment (SME) and the Abu Dhabi Media Company. It is operated independently by
 a dedicated management team with offices in New York, Los Angeles, Chicago, Detroit
 and San Francisco.
© Stuart W. Volkow 2012                                                                 © Stuart W. Volkow 2012




                          Mobile and Subscription                                                          Live, Local, Music Services

                    $4.99/$9.99                                               $9.99



                                                                        $9.99

          $35-$65



                          $11.99




© Stuart W. Volkow 2012                                                                 © Stuart W. Volkow 2012
DIY Artist Services/Promotion
                                                      Hyperfragmentation of the music audience

                                                                            Music Consumption
                                                                       Everywhere, Anytime, Any Tune


                                                  “Music Like Water (MLW)” “Feels Like Free (FLF”




                                                                                     The$hyper(fragmented
                                                                                        world$of$music:
                                                                              Marke:ng$considera:ons$and$revenue$
                                                                              maximisa:on,$Nielsen$Media$Research,$
                                                                                      MIDEM,$March,$2011



© Stuart W. Volkow 2012                      © Stuart W. Volkow 2012




                                                                             Music is Mobile




          © Stuart W. Volkow 2008            © Stuart W. Volkow 2012
Music is Mobile




                                                   Copyright Stuart W. Volkow 2008   46
© Stuart W. Volkow 2012




© Stuart W. Volkow 2012                     © Stuart W. Volkow 2012
© Stuart W. Volkow 2012   © Stuart W. Volkow 2012




                                                    Music Consumption Varies by Region




© Stuart W. Volkow 2012   © Stuart W. Volkow 2012
Who pays for Internet Radio ?



              • Terrestrial Radio is STILL king with 290 million
                  weekly terrestrial radio listeners in the USA
                                                                                                                  •   2011   -   $.0019   per   performance
                  generate $20 Billion / Yr in ad revenues.                                                       •   2012   -   $.0021   per   performance
                                                                                                                  •   2013   -   $.0021   per   performance
                                                                                                                  •   2014   -   $.0023   per   performance

              • Internet Radio generated a diminutive $15                                                         •   2015   -   $.0023   per   performance


                  million in ad revenue.                                                                     Webcasters have a minimum fee of the greater of  
                                                                                                             $25,000 or 7% of expenses.  The 7% of expenses is also
                                                                                                             required under the microcaster deal. As it will be
                                                                                                             mostly larger “small” webcasters, ones with concerns
                                                                                                             about the $1.25 million dollar cap or the 5 million
                                                                                                             aggregate tuning hour limit under the microcaster deal,
                          Arbitron Infinite Dial 2008 Report                                                  who elect this deal, most will have revenues in excess
                                                                                                             of $250,000, and thus would owe the $25,000
                                                                                                             minimum fee in any event.  That minimum can be paid          (iii) Transmission. — A
                                                                                                             in quarterly installments.                                complaining party may recover
                                                                                                                                                                       an award of damages for each
                                                                                                                                                                       transmission or communication
                                                                                                                                                                       that violates section 1002(e) in
                                                                                                                                                                       the sum of not more than
                                                                                                                                                                       $10,000, as the court considers
© Stuart W. Volkow 2012                                             © Stuart W. Volkow 2012                                                                            just.




                                                                                                                      Metadata
                                                                       Metadata is becoming almost as valuable as the data itself
                SoundExchange:
                 An independent, nonprofit performance rights
                 organization that is designated by the U.S.
                 Copyright Office to collect and distribute
                 digital performance royalties for featured
                 recording artists and sound recording
                 copyright owners (usually a record label)
                 when their sound recordings are performed
                 on digital cable and satellite television music,
                 internet and satellite radio (such as XM and
                 Sirius).
                www.soundexchange.com


                                                                           Copyright Stuart W. Volkow 2008                                                                                 56
© Stuart W. Volkow 2012
•   EchoNest
                                                                         •   Myna
                                          Algorithmic                    •   Fraunhaufer
                                           Metadata                      •   Gracenote
                                        Collaborative
                                         Filtering and                   •   Music Intelligence
                                        Recommendatio                    •   Magix Mufin Music Finder
                                           n Systems                     •   The Filter
                                                                         •   Platinum Blue
                                                                         •   Itunes Genius


                                       Copyright Stuart W. Volkow 2008                          58




                                              Visual Search, Browse,
                                                     Discovery




Copyright Stuart W. Volkow 2008   59
http://discovr.info/   http://www.mpme.com




               Radio ONELLAMA

•   Live internet radio
    stations often with
    real DJs (i.e. not
    personalised internet
    radio but a way of
    finding internet radio
    shows playing now
    that suit your tastes)


•   Legal?
www.musicplasma.com




  http://company.onellama.com/section/labs/
                                                      Creative Commons
http://company.onellama.com/flash/discover.swf

                                                •   Creative Commons licenses allow artists to share their works freely
                                                    for certain uses, on certain conditions; or dedicate their works to the
                                                    public domain.

                                                •   “Our tools give everyone from individual creators to large companies and
                                                    institutions a simple, standardized way to grant copyright permissions to their
                                                    creative work.The Creative Commons licenses enable people to easily change
                                                    their copyright terms from the default of ‘all rights reserved’ to ‘some rights
                                                    reserved’.”



                                                • http://search.creativecommons.org/
                                                    Find creative commons content (including filters based
Creative Commons Licenses


       •   Attribution: Lets others distribute, remix, tweak, and build           Creative Commons Labels/Sites
           upon the work, even commercially, as long as they credit the
           author of the original creation.
                                                                                              •    Generally support academic,
       •   Attribution Share Alike: Lets others remix, tweak, and                                  research or non-commercial uses
           build upon the work even for commercial reasons, as long as
           they credit the author and license their new creations under
           the same terms.
                                                                                              •    Donation or flexible pricing models
                                                                                                   for personal or other uses

       •   Attribution No Derivatives: Allows for redistribution,
           commercial and non-commercial, as long as it is passed along
           unchanged and in whole, with credit to the author.

       •   Attribution Non-Commercial: Lets others remix,
           tweak, and build upon the work non-commercially. New works
           must acknowledge the author and be non-commercial.




           ccMixter (http://ccmixter.org/)


                                                                          “Jamendo is a community
“ccMixter is a                                                            of free, legal and
community music site                                                      unlimited music published
featuring remixes                                                         under Creative Commons
licensed under Creative                                                   licenses.
Commons where you
can listen to, sample,                                                    Share your music,
mash-up, or interact                                                      download your favorite
with music in whatever                                                    artists!”
way you want.”
Magnatune (http://www.magnatune.com)




•   Record label
    publishing music
    under creative
    commons licenses
    with flexible pricing
    models (Pay what
    you want and
    receive high quality
    versions of tracks)

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Music likewater volkow-4up

  • 1. The Sky is Falling Music Like Water (Digital Music News, 11/07/07), noted analyst Richard Greenfield of Pali Research issued an incredibly bearish opinion The Digital Music Landscape on Warner. The analyst changed his recommendation back to Fragmentation, Mobility, Opportunity "No matter how sell, and targeted a $7.50 share price. many people the RIAA sues, no matter Stuart W. Volkow how many times music executives point to the growth of digital music, we believe Svolkow@ucla.edu an increasing majority of worldwide www.beatplay.com www.stuartvolkow.com consumers simply view recorded music as 'free'," 2 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Tower Records The Music business has Closes its been transformed. Doors 9 Most people are getting music from October 2006 their friends — either burning CDs or ripping digital files. And despite the record industry’s crackdown, there is no reduction in the number of people of peer-to-peer file sharing service. NPD Market Research 2008 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 2. 2003 2009 2007 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 A Brief History of Digital Music • October 1st 1982 Billy Joel's 52nd Street, becomes the first album released on Short History of Digital Music a “Red Book” audio CD. It becomes one of the most rapidly adopted CE formats in history and is the cash cow for the record industry for the next 20 yrs. A CD has a nominal capacity of 80 minutes. • July 7th 1994, The Fraunhaufer Inst. released the first software MP3 encoder. MP3 uses Perceptual Encoding realizing a 10 fold compression ratio whilst maintaining good fidelity. • 2000 Shawn Fanning Approaches the Labels to Create a Legal Approach to File Sharing and they return the favor by suing him out of business. • Time Westergren’s Music Genome Project Begins • October 23, 2001 Apple introduces the first iPod at 5 GB and $399. It was based on the “Portal Player” reference and with help from an outside UI design firm. January 9th 2001 Apple releases iTunes. 1,000 songs in your pocket now looks laughably small. • 2005 Pandora Launches on the Web • April 9, 2007—Apple® announced that it had sold the 100 millionth iPod®. On 9 Jan 2007 at Macworld, Jobs declares that iTunes has sold over 5 billion songs have been sold on iTunes and Apple is now the nations 4th largest music retailer. • October 2008, MySpace makes a deal with the 4 majors and streams 1 billion plays. 7 8 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 3. Digital Music 2011 • Over 275 million iPods Sold But...... • iTunes is the 3rd most widely installed Windows Application. • iTunes sold Four billion songs after nearly five • iTunes has sold over 10 Billion songs and is the largest music years. It took Apple about two and one-half years retailer in the USA to accomplish its first billion. • App store downloads; over 3 billion • Pandora reportedly has 125 million subscribers, is deployed on • The fourth billion happened after roughly seven over 450 devices and has 68% share of Internet Radio (Pandora months, about equal to the time between the News Release). second and third billion. • The second billion was announced in early January of 2007, and the third came at the tail end of July. 9 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 World’s Largest! State of the Industry 13 million copyrights © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 4. $3.38 Billion Market Cap 23% US Market 21% US Market More than one million compositions Warner Music reported a loss Now: Sony Music Entertainment Inc. of $16 million, or 11 cents per share, in the quarter ended Dec. 31, after a profit of $18 ✦Arista million, or 12 cents per share, in the year-earlier period. A failed union ✦Columbia ✦Jive The results sent shares of the New York-based music ✦RCA company tumbling $1.80, or 20.6 percent, to $6.94 Originally formed as a JV in 2004, ✦Epic Wednesday. The stock has Sony BMG's revenue fell over 46.3% ✦Jrecords traded in a 52-week range of over five years, while the number of $4.57 to $21.51. employees at the label dropped from ✦Legacy AP 6 Feb 2008 4,880 in 2003, to 2,851 in 2007. Sony ✦Rocnation bought out Bertelsman’s 50% stake in 2008. ✦Verity © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Warner Music Group At home, Warner Music Group hit another milestone, as U.S.digital music unit sales surpassed those from physical for the first time. “We’ve crossed the threshold of 50/50 in the U.S.,” new CEO Steve Cooper told analysts. “The rest of the world is still about two thirds to a third.” Digital music sales have helped shield Warner Music's revenue from declines in three of the past four quarters. But the privately-held company said its digital future will be put in jeopardy if the planned acquisition of rival EMI by Universal Music Group and Sony/ATV goes ahead. AP,updated 2/9/2012 3:43:05 PM Chief Executive Stephen Cooper told analysts Thursday that the purchase of EMI for $4.1 billion would "significantly impair" Warner's ability to compete. The company has argued the deal would impart a dominant market share to Universal in recorded music and Sony/ATV in publishing. © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 5. EMI Group New Order ? Worlds largest publisher with over 1 million songs £1,751.5 million Over 1,000 Radio Stations 8% US Market •Capital •Virgin •Blue Note EMI revamp tougher than expected, says owner Guy 10 year $120 million Hands 12 year deal with U2 3,000 jobs cut © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 F A I L ✦ Napster DIY ✦ Qtrax ✦ Spiral Frog  ghosts.nin.com ✦ Ruckus www.radiohead.com ✦ Imeem www.madonna.com/ ✦ iLike www.davemathewsband.com ✦ MyStrands www.ArcadeFire.com ✦ Zune ✦ Sony Music Store ✦ UMG Music Store © Stuart W. Volkow 2012
  • 6. 1 Billion Streams in First Week From $580 Mln in 2005 to $35 Mln to Specific Media in June 2011 (Justin Timberlake Invested) Text © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Seeqpod (http://www.seeqpod.com) Imeem (http://www.imeem.com) • Legal, Yes. • Classic internet search engine - but with emphasis on 'playable search results' • Sensible? • Crawls for media files (including a “Far from a breakthrough, it is a death sentence for youtube adapter) Imeem. Under a dark cloud of looming lawsuits, Imeem entered into a crushing financial agreement • A 'vector-space' (tf-idf) model of text that allows them to survive as long as venture capital around the link to the media content is collected (i.e. terms found near the link money continues to flow into the company, but spells are thought to be related to it) almost certain financial calamity once outside funding halts.” • Exposes keyword searches to the user Michael Robertson http://www.michaelrobertson.com/archive.php?minute_id=250 • Doesn't host only searches.
  • 7. WMG Vs Seeqpod Lawsuit Key Points ....WMG Differs Copyright Stuart W. Volkow 2008 25 Copyright Stuart W. Volkow 2008 26 Songza (http://www.songza.com) SkreemR (http://skreemr.com) • MP3 search engine • Track metadata keyword search by artist, title, album. • Media crawler • Audio ‘quality’ ranking • Content from Youtube (music vids), Imeem (track plays) and • Search by track metadata (artist / others title) • Doesn't host any content, • Links to Amazon MP3 to buy tracks just provides searches. • Uses embedded player/widgets • "Songza pays for licenses from all the major performing-rights organizations • Saved Playlists (ASCAP, BMI, SESAC), who then pay • “SkreemR respects the intellectual the publishers and writers in property of others, and we ask our users proportion to the number of plays to do the same. If you believe in good they get on Songza." faith that materials we link to infringe your copyright, you (or your agent) can contact us requesting that we remove the links to the material. “
  • 8. FAIL FAIL October 2008 Nokia unveils Comes With Music U.K.-only deal touts access to millions of tracks Nokia's unlimited "Comes With Music" plan misses the boat due to DRM David Chartier, Arstechnica.com © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Social Music Discovery/Sharing imeem Mediaraptor Copyright Stuart W. Volkow 2008 © Stuart W. Volkow 2012
  • 9. Internet Music Services 33 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Why Pandora Is on Virtually Every Device On Fridges, Fords and Phones, It's Become the De Facto Radio App After Being on the Brink of Bankruptcy By: Andrew Hampp FEBRUARY 11, 2011, 7:25 PM I.P.O./OFFERINGS Pandora Files to Go Public BY EVELYN M. RUSLI Thor Swift for The New York Times Tim Westergren, founder of Pandora Media. "Smartphones really turned Pandora into an anytime, anywhere service without us doing anything," Pandora founder Tim Westergren said, noting that half of smartphone listening is done in users' cars. Yvonne Malmgren, a spokeswoman for the BMW Group, said Mini drivers Kurt Jovais, director of Samsung's home overwhelmingly asked for appliances, said, "The apps on our LCD the service when the refrigerator are all kitchen-specific for the automaker started new kitchen center, and Pandora was the researching potential easy choice as a music service people partners for its new Mini know and love." Connected App player. © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 10. Curation, Recommendation VEVO was created in partnership by Universal Music Group (UMG), Sony Music Entertainment (SME) and the Abu Dhabi Media Company. It is operated independently by a dedicated management team with offices in New York, Los Angeles, Chicago, Detroit and San Francisco. © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Mobile and Subscription Live, Local, Music Services $4.99/$9.99 $9.99 $9.99 $35-$65 $11.99 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 11. DIY Artist Services/Promotion Hyperfragmentation of the music audience Music Consumption Everywhere, Anytime, Any Tune “Music Like Water (MLW)” “Feels Like Free (FLF” The$hyper(fragmented world$of$music: Marke:ng$considera:ons$and$revenue$ maximisa:on,$Nielsen$Media$Research,$ MIDEM,$March,$2011 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Music is Mobile © Stuart W. Volkow 2008 © Stuart W. Volkow 2012
  • 12. Music is Mobile Copyright Stuart W. Volkow 2008 46 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 13. © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 Music Consumption Varies by Region © Stuart W. Volkow 2012 © Stuart W. Volkow 2012
  • 14. Who pays for Internet Radio ? • Terrestrial Radio is STILL king with 290 million weekly terrestrial radio listeners in the USA • 2011 - $.0019 per performance generate $20 Billion / Yr in ad revenues. • 2012 - $.0021 per performance • 2013 - $.0021 per performance • 2014 - $.0023 per performance • Internet Radio generated a diminutive $15 • 2015 - $.0023 per performance million in ad revenue. Webcasters have a minimum fee of the greater of   $25,000 or 7% of expenses.  The 7% of expenses is also required under the microcaster deal. As it will be mostly larger “small” webcasters, ones with concerns about the $1.25 million dollar cap or the 5 million aggregate tuning hour limit under the microcaster deal, Arbitron Infinite Dial 2008 Report who elect this deal, most will have revenues in excess of $250,000, and thus would owe the $25,000 minimum fee in any event.  That minimum can be paid (iii) Transmission. — A in quarterly installments. complaining party may recover an award of damages for each transmission or communication that violates section 1002(e) in the sum of not more than $10,000, as the court considers © Stuart W. Volkow 2012 © Stuart W. Volkow 2012 just. Metadata Metadata is becoming almost as valuable as the data itself SoundExchange: An independent, nonprofit performance rights organization that is designated by the U.S. Copyright Office to collect and distribute digital performance royalties for featured recording artists and sound recording copyright owners (usually a record label) when their sound recordings are performed on digital cable and satellite television music, internet and satellite radio (such as XM and Sirius). www.soundexchange.com Copyright Stuart W. Volkow 2008 56 © Stuart W. Volkow 2012
  • 15. EchoNest • Myna Algorithmic • Fraunhaufer Metadata • Gracenote Collaborative Filtering and • Music Intelligence Recommendatio • Magix Mufin Music Finder n Systems • The Filter • Platinum Blue • Itunes Genius Copyright Stuart W. Volkow 2008 58 Visual Search, Browse, Discovery Copyright Stuart W. Volkow 2008 59
  • 16. http://discovr.info/ http://www.mpme.com Radio ONELLAMA • Live internet radio stations often with real DJs (i.e. not personalised internet radio but a way of finding internet radio shows playing now that suit your tastes) • Legal?
  • 17. www.musicplasma.com http://company.onellama.com/section/labs/ Creative Commons http://company.onellama.com/flash/discover.swf • Creative Commons licenses allow artists to share their works freely for certain uses, on certain conditions; or dedicate their works to the public domain. • “Our tools give everyone from individual creators to large companies and institutions a simple, standardized way to grant copyright permissions to their creative work.The Creative Commons licenses enable people to easily change their copyright terms from the default of ‘all rights reserved’ to ‘some rights reserved’.” • http://search.creativecommons.org/ Find creative commons content (including filters based
  • 18. Creative Commons Licenses • Attribution: Lets others distribute, remix, tweak, and build Creative Commons Labels/Sites upon the work, even commercially, as long as they credit the author of the original creation. • Generally support academic, • Attribution Share Alike: Lets others remix, tweak, and research or non-commercial uses build upon the work even for commercial reasons, as long as they credit the author and license their new creations under the same terms. • Donation or flexible pricing models for personal or other uses • Attribution No Derivatives: Allows for redistribution, commercial and non-commercial, as long as it is passed along unchanged and in whole, with credit to the author. • Attribution Non-Commercial: Lets others remix, tweak, and build upon the work non-commercially. New works must acknowledge the author and be non-commercial. ccMixter (http://ccmixter.org/) “Jamendo is a community “ccMixter is a of free, legal and community music site unlimited music published featuring remixes under Creative Commons licensed under Creative licenses. Commons where you can listen to, sample, Share your music, mash-up, or interact download your favorite with music in whatever artists!” way you want.”
  • 19. Magnatune (http://www.magnatune.com) • Record label publishing music under creative commons licenses with flexible pricing models (Pay what you want and receive high quality versions of tracks)