MaxxoMedia Digital Media and Entertainment Trends

Here’s an article from Slate about a proposed plan by Warner Music Group to fight piracy and in essence give the people what they want – freedom to download whatever they want, DRM free and share it all they want for a flat rate fee every month.

I actually like the idea to a point. I’ve been a Rhapsody subscriber for years and find great value in the subscription model. The underlying question I have in the Warner plan is if the music is freely shared all around the net, how do they account and pay to the artists who work so hard to produce the music in the first place.

Let me know what you think.

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The Music Industry’s Extortion Scheme by Reihan Salam

The record labels want you to pay a tax on music. It’s not as horrible as it sounds.

What would you do if a bully—let’s call him “Joey Giggles”—kept snatching your ice-cream cone? OK, now what if Joey Giggles then told you, “If you pay me five bucks a month, I’ll stop snatching your ice cream.” Depending on how much you hate getting beaten up, and how much you love ice-cream cones, you might decide that caving in is the way to go. This is what’s called a protection racket. It’s also potentially the new model for how we’ll buy and listen to music.

Let’s back up for a second. Four companies (Universal Music Group, Warner Music Group, Sony BMG, and EMI) control a staggering 90 percent of all record sales in the United States, and they’re hopping mad. CD sales are in free fall, and the recording industry’s revenues have shrunk from $15 billion to $10 billion in less than a decade. Instead of blaming themselves for failing to embrace the Internet soon enough, Big Music has pointed the finger at piracy, shaking down scofflaw MP3 downloaders with capricious, multimillion-dollar lawsuits. This has not strengthened the record companies’ position—at this point, they’re losing money and everybody hates them.

Now Big Music is mulling the Joey Giggles approach. Warner Music Group is trying to rally the rest of the industry behind a plan to charge Internet service providers $5 per customer per month, an amount that would be added to your Internet bill. In exchange, music lovers would get all the online tunes they want, meaning that anyone who spends more than $60 a year on music will come out way ahead. Download whatever you want and pay nothing! No more DRM! Swap files to your heart’s content—we promise, we won’t sue you (or snatch your ice-cream cone)! More

Sonific.com goes offline on May 1, 2008

A message by Gerd Leonhard, Co-Founder & CEO

As a consequence of a the unworkable music licensing situation and the resulting lack of solid revenue modeling Sonific’s founders and investors have decided to temporarily take Sonific.com and Sonific.net offline.  While we are looking for other ways to realize our vision we are also open to talking to any interested party that may have use for Sonific’s user base, content relationships, technologies or distribution network (please contact us anytime to find out more). Together with some other partners, we may also investigate the concept of making Sonific a paid-for service that is provided to artists, record labels and other content providers on a white-label basis.

Here are some background details on our decision:

What’s A Blogger?

Bloggers are younger and higher percentages are Hispanic & African American than the general population. A higher percentage of Democrats than of Republicans are blogging.

Now that Blogging might better be called a market segment rather than a market niche, it’s useful with regard to positioning the marketing message to understand what a Blogger looks like, as distinguished from the rest of the population. According to the BIGresearch Simultaneous Media Survey, 26% of all adults say they regularly or occasionally blog. Of those:

• 53.7% are male
• 44.7% are married
• 28.4% hold a professional or managerial position
• 10.4% are students.

Bloggers tend to be younger, averaging 37.6 years old, compared to 44.8 for adults 18+ (the “general population”). Ethnically:

• 69.7% of Bloggers are White/Caucasian (vs. 76.1%)
• 12.2% are African American/Black (vs. 11.4%)
• 3.7% are Asian (vs. 2.0%)
• 20% of Bloggers are Hispanic, compared to 14.8% of adults 18+

From Kenradio.com

The World’s Broadband

Four European Union (EU) nations have the best broadband deployment rates in the world. The Single Telecoms Market Progress Report has shown that Denmark, Finland, the Netherlands and Sweden saw penetration rates in excess of 30 per cent at the end of last year. Along with the UK, Belgium, Luxembourg and France, these countries saw higher rates than the US in 2007, with some 19 million EU broadband lines added last year.

By Mark Levy, CEO MaxxoMedia

In a recent ICOM survey of U.S. shoppers, 77% of the respondents in the 18-34 age group see their coupon use increasing if they could use some form of paperless coupon technology … and 63% of those 35-54 said paperless would increase their usage.

The mobile phone is one of the best ways to reach the elusive set of 18-34 year-old adults who have disposable income to spend, brands with which to affiliate, but neither the time nor interest to read newspapers or watch scheduled television.

San Jose-based Cellfire has been working hard for over five years to meet that demand. Cellfire is the only nationwide discount offer service, enabling consumers to conveniently receive and retain savings right on their mobile phones. Today, 68% of Cellfire users are between the age of 18-34, and 27% are over 35.

Currently they offer coupons for popular retailers such as Hollywood Video, Hardee’s, Domino’s Pizza, T.G.I. Friday’s, Peet’s Coffee, 1-800-flowers.com, Omaha Steaks, North Beach Pizza, Pizz’a Chicago and more directly to your cell phone. The service is available on all major cell carriers.

By Mark Levy, CEO MaxxoMedia

Last week, Las Vegas played host to the telecommunications industry’s annual CTIA conference. Over 20,000 people converged for the event to exhibit and explore the many opportunities of the wireless telecom world. Vendors were on hand to showcase the latest mobile-based applications — here are a few that stood out for me.

PC Games Come To Life On Mobile Phones

Back in 2003, Universal Pictures released “The Incredible Hulk” movie. About one month prior to the movie hitting theatres, I was part of a team that licensed the mobile content rights to the movie from Universal and Marvel. We had the rights to make a mobile game along with releasing various ringtones and graphics. Given the time frame to produce and release the game, we opted to produce a simple puzzle game.

By Mark Levy CEO of MaxxoMedia

In the midst of recent pronouncements that ringtone sales are in decline, Clear Channel Radio announced that mobile content offerings will be integrated into the websites of over 650 stations within the chain. The service, offered in partnership with Thumbplay, a leading mobile content retailer, will offer listeners direct access to purchase the tones for their cell phones.

Ringtone sales are projected to drop over 7% to $510 million in sales for the US in 2008. BMI says this is the second year of the declining sales trend. Some of the reasons blamed for the decline include high or complex content pricing models, advanced handsets that allow consumers to side-load content, mobile content sharing websites, social networks and the waning novelty factor.

From Paidcontent.org Rafat Ali

A known secret of the music industry: the labels, though becoming open to new business models from startups, are asking for a hefty upfront advances for licensing music and in some cases a substantial equity stake in the company, and Billboard explores the practice. Someone like Universal Music Group is making the equity stake standard in any deal, our sources say.

Among the examples: troubled online ad-supported music service SpiralFrog has given more than $3 million in upfront advances to UMG alone before it even went live, and has paid additional millions in licensing fees since the original term expired. Imeem is said to have paid major advances and gave labels equity in the company, the story says. We reported on the Buzznet-UMG deal last week, which involved equity as well.

divinity Metrics has launched a weekly chart that tracks not only the views of online video from 20 top US brands but also the ‘health’ of them. By using VMI – Video Marketing Index, dM ranks the validity of each video for its marketing value by analyzing the video’s views, comments, ratings and other consumer reactive data points.

You can check out the latest chart here – divinity Metrics Brand20 Index