Some interesting new research from Jupiter:
Jupiter thinks the European music industry is facing “a demographic time bomb”. In its report “European Music Consumer Survey, 2005″ it says that European consumers who download music from illegal file sharing networks currently outnumber those downloading from legal services such as Apple’s iTunes Music Store by a factor of three to one.
Some 15% file share while just 5% pay to download. Uh oh.
Jauntily upbeat however, Jupiter says “there is solid demand for paid downloads”, with 10% of European consumers willing to pay, rising as high as 31% in Sweden.
But file sharing penetration in Europe is highest among younger consumers (34% of 15-24 year olds) and is impacting the way they value music with many having little concept of music as a paid commodity. Among the 46% of European online 15-24 year olds who use the Internet to consume music, the CD is becoming increasingly irrelevant: 40% do not consider the CD to be a good value for money and 43% prefer to copy rather than buy CDs. Unless these consumers are encouraged to develop music purchasing behavior soon they may never develop meaningful music buying habits.
In a release Mark Mulligan, Analyst at JupiterResearch said: “Illegal activity is a key threat. The Digital Youth of today are being brought up on a near limitless diet of free and disposable music from file sharing networks. When these consumers age and increase spending power they should become key music buying consumers. But unless the music industry can transition these consumers whilst they are young away from free consumption to paid music formats, be they digital or CDs, they may never develop music purchasing behavior and the recording industry could suffer long-term harm.”
Public Enemy’s New Wireless Order: Public Enemy (which pioneered using MP3s) is getting into wireless. On Nov. 28 the group will make the music from its new album, New Whirl Odor, available through wireless phone networks using distribution technology from privately held m-Qube. “It’s like the Internet in ‘98, but with a business plan,” says Walter Leaphart, who manages Public Enemy leader Chuck D.
Streaming radio service Live365 is being scrutinised by the Recording Artist Association of America (RIAA) which is interested in user-generated stations that do not properly comply with various DMCA (Digital Millennium Copyright Act) statutes. The RIAA says it will “reserve the right to shut them down or otherwise restrict access” and Live365 has emailed its users with exactly that warning. What this means, of course, is that the glittering new world of ‘user generated content’ may turn out to be a mirage, killed off by a hail of lawsuits.
Is Podcasting turning into a viable media business? Maybe. Podshow this week add 30s shows to its network and plans a major marketing push to lure more podcasters into its fold, broadening the network of shows it can sell to advertisers. Meanwhile Paige Heniger and Gretchen Vogelzang, who’s “Mommycast” is about the joys of motherhood have signed a 12-month sponsorship agreement with Dixie paper products, worth more than $100,000.
Microsoft’s XBox site has published a document that shows how to turn the XBox 360 gaming device into an iPod accessory:
“We’re happy to report that the Xbox 360 video game and entertainment system works with MP3 music files on Apple iPod portable audio players, right out of the box. Just connect your iPod’s USB cable into any controller port on your Xbox 360 console, then go to the Media area of the Xbox Dashboard to select or create a playlist.”
However, it doesn’t look like it will play iTunes files, given that “Xbox 360 is compatible only with AAC files that are not protected by DRM.” We knew there’d be a catch…
The San Francisco Chronicle (R.I.P. CDs) argues that there’s no reason to buy another compact disc ever again now that we have iPods, satellite and digital radio and the Net. MP3 blogs like The Hype Machine and Largehearted Boy offer daily links to free music available online.Online radio stations are “becoming a safe haven for anyone who just wants to hear some good music.” With subscription digital music services like Rhapsody and Napster, “Owning music is so last century.” Social networking sites like MySpace.com can showcase 55,000 unsigned bands (of varying quality of course). In the US, satellite radio like Sirius offers more variety than “even a 60-gig iPod and more unpredictability”. Of course, there#039s the iTunes Music Store and BitTorrent. Even Amazon is touting free music MP3s to entice people to buy new music.
[MacUser]: Apple is facing legal action of the alleged breach of two patents in its iPod, iTunes and Mac products. Illinois-based Premier claims that the Apple products violate patents which describe a system for creating lists of audio works – in other words playlists. Premier is seeking an injunction and damages, while Apple doesn’t comment on legal disputes.
Gina Harkell speaks about her experience being sued by the BPI after her son downloaded music illegally.
Pete Jenner (former manager of Pink Floyd) on why Podcasting is cool: “Podcasting feels like FM radio did in the 60s.” (Jenner is the second speaker).
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