May 2003 News
../Roxio Unveils Their Online Music Strategy
Roxio has agreed to purchase pressplay, the joint online music venture of Sony and Vivendi Universal. Roxio, a Santa Clara company known primarily for their CD burning software, has committed to buying a majority stake in pressplay for 3.9 million shares of stock and $12 and half million in cash.
Last November, Roxio purchased the name and intellectual property of Napster for $5.3 million and rumors swelled as to how the California concern was going to leverage the brand into their core business. Pressplay, the online music service that was hatched by the two major labels a couple of years ago, was essentially doomed from the start due to its very restrictive personal use rights, subscription based model, poor usability and its total disregard for the end user's "qualtiy of life." This hard push into the tentative online music space by Roxio comes after the successful launch of Apple's music store last month. In fact, Apple had more sales of music in its first week of operation, then pressplay and Musicnet had together since they launched. However, Apple's service is only for Macintosh users which only account for 5% or less of the total computer market and it will only be after a few months of true evaluation that Apple Music can be deemed a success. Its Futuremusic's position, that the million recorded downloads were mostly from the Apple evangelista and not necessarily by the general online music audience. Even if Apple's service continues at a million downloads a week for the rest of the year, that only equates to a little over $50 million in revenue in a multibillion dollar market. Roxio obviously sees a significant opportunity to jump into the fray while Apple readies its Windows based service due to launch in the fall and will obviously take a close look at Apple model.
The new Napster service will use pressplay's infrastructure but have a different feel and be as "liberal as is reasonable" in regard to personal use rights according to Chris Gorog, Roxio's CEO. Let's hope so. The first offering of pressplay shoe-horned the user into a subscription service that was cumbersome and limiting. Most users bailed after a single attempt and went back to the easy to use peer to peer file sharing services such as Limewire and Kazaa. What Roxio really needs to do is get access to Sony's consumer electronics division and create their own version of Apple's iPod. Clearly, owning the entire vertical has made Apple's service much more attractive to end users as a seamless one brand solution. Although all services are innately hampered by a limited catalog of music, Apple has convinced several major artists into joining their service and its continued success will set the pace for the market.
Roxio, with an installed user base of over 100 million users of its software offerings, hopes to hurdle Apple by committing over $20 million in its relaunch of Napster. The name, which has been dead for years, still holds weight in the market with over 90% recognition with consumers based on Roxio's latest research. However, the Napster name is still provoking litigation which could ultimately derail Roxio's steaming train. Universal, who is now a shareholder in pressplay, recently sued Bertelsmann AG (BMG) for "numerous actions that directly and materially contributed to the millions upon millions of illegal acts of copyright infringement by the users of the Napster system." Universal argues that BMG is accountable for the continued infringement of copyrights by fueling Napster with additional funds that kept it in business. Universal seeks $150,000 per infringement in a jury trial.
The Future: MusicNet and pressplay were dead on arrival when they hit the scene two years ago. Kazaa and others will continue to thrive as they side step litigation and the RIAA by positioning themselves in overseas based operations where they're out of harms way. Many users will adopt the new Napster only if its extremely easy to use, offers a substantial catalog, has liberal personal use rights and can be used anywhere via a sexy portable device.
../Adobe Buys Syntrillium - Makers of Cool Edit Pro Audio Software
Adobe Systems Incorporated announced an agreement to acquire the technology assets of Syntrillium Software on May 19, 2003. Terms of the agreement were not disclosed. The purchase brings a Desktop Audio solution into the Adobe family of products and complements its offerings in many ways.
"Cool Edit Pro has won recognition across the music and video industries, and by teaming-up with Adobe we will be able to bring this complete multi-track recording application to an expanded set of customers," said Bob Ellison, president of Syntrillium. "Introducing Cool Edit Pro into the Adobe family is great news for our customers, who will benefit from the company's complementary product line and commitment to delivering high quality products."
The Future: Who's your Daddy?! Cubase, Logic, Acid, and now Cool Edit...The Buying spree continues!
../Access Blows Its Download *Exclusive*
Access, makers of the popular Virus brand of synthesizers, has recently released a new version of their operating system that disables the keyboard in some older models. The update, available for download on their website, is the most recent upgrade to their OS. Without any warning messages on their site, some Virus owners have discovered that installing the update on their synths has disabled the keyboard controller PIC Card rendering the keyboard part of the synth useless.
Access, in an email communication with Futuremusic, claimed that "some keyboards out there (had) a wrong keyboard controller PIC installed from the beginning" - however, this doesn't make much sense to our technicians who feel that Access knew beforehand that updating the OS on certain models would trash the keyboard controller and adopted a "don't ask, don't tell" mentality.
Access also went on to state that "Access never made an official announcement about this since this has only happened to a very few keyboards."
Access has touted its free OS updates as a major selling point in marketing their brand worldwide. Futuremusic feels that it is irresponsible for a synth manufacturer to not warn their customers about the potential hazards of installing a software update. At the very least, we feel that Access should specifically states on their download page what exactly can go wrong and which keyboards are subject to the keyboard controller failing.
Access will replace the keyboard controller free of charge. However, that doesn't go far enough in our opinion. The inconvenience of having to ship the keyboard to an "authorized" service center, wait for the new card to be installed, and then have it shipped back is certainly not worth the operating system update. Our recommendation is that if you have an older Virus kb Keyboard do not update the OS until Access comes clean about the perils their web site.
../Sony Buys Sonic Foundry's Desktop products
Sony quietly announced that they are acquiring all of Sonic Foundry's Desktop Software Products including its successful Acid Pro, Sound Forge and Vegas properties. Sony agreed to purchase Sonic Foundry for $18 million in cash. Sonic Foundry will apparently shed some employee weight as the purchase affects about 70 of 190 workers. Sonic Foundry will use the sale to fuel development of its web based communications product, MediaSite Live and pay off its extensive $7 million in debt.
"Consummation of this agreement will give us the cash we need to pay our debt and allow us to focus our attention on writing the next successful chapter of Sonic Foundry's story - rich media - and building upon the early success we've already achieved with our Web presentation solution, Media Site Live," said Rimas Buinevicius, chairman and CEO of Sonic Foundry.
The Future: Apple buys Emagic, then Sony buys Sonic Foundry who's next in the Computer Audio rollup craze??
../Futuremusic Releases 'Dirty Girl' By Jim Stout
Futuremusic will release Jim Stout's 'Dirty Girl' this month. Jim Stout, formally of Nebula Nine, has returned after a hiatus from recording and performing. Nebula Nine pioneered the trail for a wealth of domestic trance artists such as Deepsky in the early nineties with their groundbreaking live show that featured a fusion of live percussion and truly live electronic performance. With 'Dirty Girl,' Stout wipes his musical palette clean and returns with two distinctive mixes: an 'ElectroClash Mix' and the tech-house 'F*ck'd Mix.' A 'Tribal-Tech' Remix by Illbient artist Urban Rhythm rounds out the offering.
Learn more about Jim Stout and listen to 'Dirty Girl' by hitting:
http://www.futuremusic.com/jimstout.html
../Rocket Network Runs Out Of Gas
Rocket Network has ceased operations after 5 years of service. The online service which allowed musicians to collaborate on music projects online was only able to attract about 64,000 users during its run. Many people loved the idea of the service but found the steep subscription fees and slow connectivity to be its downfall.
The idea behind the service was definitely ahead of its time. "We believe it will be a couple of years yet until the market begins to embrace digital delivery and collaboration," stated Rocket Network President and CEO Pam Miller.
The Future: Look for this feature to bow in a future version of Logic. Apple, who recently acquired Emagic, is perfectly suited to create a service that will allow Logic users to collaborate online.
../Clear Channel Severs Ties with Music Promoters
In a blow to "The Network" - the notorious name given to Independent Radio Promoters - Clear Channel has cut ties with promoters who are paid by labels to pimp their songs to radio. Clear Channel, owners of over 1200 stations in the US alone, has claimed that the contracts, which are due to expire this summer, have "never influenced airplay." However, many lawmakers have stated that this is a thinly disguised payola system. With increasing pressure from several key members of Congress, Clear Channel has decided to cease these relationships. Eliminating "The Network" will create a significant power shift in the way the labels conduct business with radio since "The Network" was actually created as a loophole to skirt the payola laws by distancing the labels from radio.
Since going on a major buying spree and acquiring hundreds of stations after regulations were lifted a number of years ago, Clear Channel has found that it has become the punching bag for the radio industry. By eradicating its relationships with Independent Promoters and developing more straightforward connections to the labels, it hopes to clean up its image and promote a more positive image of the industry.
The Future: Labels will have to find new ways of "influencing" radio programmersÉmeaning what unctuous company is going to get rich coming up with the next payola scheme?
../Computer DJ Uses Biofeedback from Clubbers to Pick Songs
The Research and Development labs at Hewlett-Packard are getting their groove on. Hewlett-Packard has developed a computerized DJ that measures biofeedback from dancers on the floor and adjusts its set list in realtime to keep clubbers shaking their booty.
The DJ software can seamlessly beat match one record into the next and works out the best sequence of songs based on wireless devices attached to the wrists of the audience. The devices measure heart rate, perspiration rate, and how active the dancer is per song. It then sends this info wirelessly to the DJ software. Once the data is received the software then determines the audiences preferences and then tweaks its song selection to keep the clubbers bumping.
The Future: Remember the Chess duel between IBM's Big Blue and Kasparov? Well how about HPDJ VS. Carl Cox??
../Authentek Ready New Release
Authentek have just finished two new tracks for their next Futuremusic release. 'MI-6' which bowed at Space during the Winter Music Conference is now in the hands of progressive house tastemakers Paul Van Dyk, Danny Howells and Pete Moss. On the B Side is a deep progressive house warm-up titled "Trans-Am"
Hear a preview of this release: http://www.futuremusic.com/authentek.html
Also online is a stream of a recent Authentek live show featuring turntables, samplers, live electronic percussion and effects:
http://www.futuremusic.com/authentek.html
../Verizon Fights the RIAA
Verizon has appealed a ruling requiring the Internet Service Provider to give the Recording Industry Association of America (RIAA) the name of an individual subscriber who shared hundreds of songs on a peer to peer (P2P) network such as Kazaa. Verizon countered that it isn't legally required to turn over the name because the songs were not stored on their servers, only on the individual's hard drive which Verizon doesn't control. However, the judge ruled that under current copyright laws Verizon is responsible to identify infringers utilizing its service.
This case is extremely important in that it will set a major precedent in this contested arena. Unknown to many, the RIAA has successfully acquired the names of about 90 "mother load" distributors of illegal MP3 files from other ISP's without a fuss. Verizon argues that this opens the door for the RIAA and other groups who claim copyright infringement to access personal data on its customers. Privacy Protection advocates support Verizon and believe this will start an undesirable chain reaction where third parties will be able to obtain personal email and other private communications based on a copyright witch hunt.
The Future: By going after P2P "SuperUsers," the RIAA hopes to invoke fear into the mindset of file traders. However, most of these SuperUsers are simply college students who want to prove they've got the biggest library. By alienating this contingent, the labels are only hurting themselves.
../Futuremusic Launches New Online Store
Futuremusic has just launched their new online store. Shop Futuremusic features the ability to buy Futuremusic releases direct, Futuremusic branded apparel, as well as special products that will be only offered online. This month's special products include the new Futuremusic "What's Next" T-Shirt and a limited edition EP from Urban Rhythm.
A special early release White label of Jim Stout's 'Dirty Girl' is also available while supplies last.
Hit http://www.futuremusic.com
Copyright 2003 Futuremusic. All Rights Reserved.
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