$279.99, exactly.

What do you get for that? The same thing the band and EMI Music Group are already selling for $219: All of the band’s music, in a remastered stereo mix. But if you’re willing to pay extra, you can now get the same tunes bundled up in a single USB stick. Like so:

People who care about this stuff will be pleased to know the files will be available in both FLAC and MP3 formats. More details here, although there does seem to be some confusion about whether there are 30,000 of these puppies or just a couple hundred. Either way, they go on sale Dec. 7 in the U.K. and the next day in the U.S.

By the way, if you’re the kind of Beatles fan who considers plunking down more than $200 for music you already own, then you’ve most likely seen this. But it’s free to everyone, thanks to Google’s (GOOG) YouTube:

That’s the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me.

Apple (AAPL) isn’t tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box or its long-rumored tablet/slate device. Instead, the company is presenting the offer as an extension of its iTunes software and store, which already has 100 million customers.

A so-called “over the top” service could theoretically rival the ones most consumers already  buy from cable TV operators–if Apple is able to get enough buy-in from broadcast and cable TV programmers.

That’s a big if: Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.

Industry executives believe that if anyone jumps first, it will be Disney (DIS), since CEO Bob Iger has shown a willingness to experiment with Apple and iTunes in the past: In 2005, Disney was the first player to sell its programming on iTunes, via a-la-carte downloads. And Apple CEO Steve Jobs is Disney’s largest single shareholder, a result of Disney’s 2006 acquisition of Jobs’s Pixar animation studio. Apple didn’t respond to requests for comment.

Network executives I’ve talked to are intrigued by the idea–they are eager to find new revenue streams–but are also wary, for several reasons.

Cable networks, for instance, don’t want to threaten existing relationships and subscription fees from cable providers like Comcast (CMCSA). And programmers are also worried about the effect a subscription service would have on advertising revenue: Even if the service didn’t distribute TV programs until after their initial air date, that could cut into ratings, which now measure viewership over the course of several days.

But the move to deliver TV and movies over the Web is already well under way. Netflix (NFLX), for instance, already bundles free streaming movie and television along with its disc-by-mail subscription service. iTunes and Amazon (AMZN) rent movies on a one-off basis, and Google’s (GOOG) YouTube is trying out the same thing. Meanwhile, Hulu, the joint venture between GE’s (GE) NBC, News Corp.’s (NWS) Fox, and ABC, is figuring out how to launch a paid service that may include rentals, paid downloads or subscriptions.

So Apple’s proposed subscription service, which the company has floated in the past, is no longer a huge stretch. Says one executive briefed on the company’s plans: “I think they might get it right this time.”

The search giant is working on a new service that will provide searchers with streaming music, which sounds a whole lot like a content play at first blush. But Google will only be offering limited bits of music, and it will be relying on other companies to actually provide the tunes.

Sources describe the service, which they refer to as “One Box,” as a refined set of answers for music queries. The idea: Punch in, say, “Madonna,” and you’ll be presented with one or more songs, which may be partial clips or full-length versions, then guided to other sites where you can purchase the music.

That is: If you’re looking for Google (GOOG) to launch a rival to Apple’s (AAPL) iTunes or to music streaming services like iMeem and MySpace Music, this isn’t it.

In fact, Google is actually partnering, in a way, with News Corp.’s (NWS) MySpace: iLike, the music start-up that MySpace purchased earlier this year, is one of the two services providing music to Google, industry sources tell me. The other is Lala.com, which has a novel streams-plus-cheap-songs concept. (This is presumably one of the “big announcements” Lala founder Bill Nyguen was referring to yesterday when I spoke to him).

UPDATE: Streaming music service imeem will also be providing songs for the new service, I’m told by people familiar with Google’s plans. It’s unclear to me whether the company will provide full streams in search results. No comment from Google, Lala, MySpace or Imeem. Or the labels, for that matter.

At this point I’m not clear how Google and the labels will determine how much of a song a searcher will be able to listen to. Last I time I checked, iLike didn’t have the ability to provide full song streams at all. And Lala’s licenses only allow the service to provide listeners with a full song once–after that, they have to purchase the track from the service.

One other note: “OneBox” is the name of an existing Google feature that offers up not just links, but actual answers to certain queries. (Think of weather, or stock results). So while it’s possible that Google intends to brand the service with that name, I wouldn’t be surprised if this was the term the company has been using internally and with the labels, and that the service will have a different name when it launches.

TechCrunch first reported about the service this morning.

That’s the pact that Apple (AAPL) and Sony (SNE) have reached this week over the upcoming release of the Jackson’s newest stuff: Anyone who wants to buy a copy of “This Is It,” the song, via iTunes will also have to buy some extended-play version of “This Is It,” the album

Here’s the official word from Apple, following a couple days’ worth of erroneous and confusing reports (one of which I wrote):

We look forward to offering the new Michael Jackson album, as well as a digital-only EP with six previously unreleased tracks, providing fans a great way to get all of the new songs. The iTunes Store will offer the album-only single “This Is It” on both the album and EP starting October 26.

To spell that out: Apple will not be selling the single by itself.

That’s an unusual arrangement for Apple, which generally insists that labels sell their music on a track-by-track basis. If the labels had their way, they would consistently force customers to buy an entire album for $10 or more. No word on pricing yet, but it’s a fair bet to assume that even the six-song EP will sell for more than $1.29, Apple’s highest price for an individual song.

Apple does make an occasional exception here and there. For instance, many of the songs on iTunes soundtracks are only available as part of an album. But while “This Is It” does accompany a movie by the same name, it’s not technically a soundtrack, so that’s not what’s going on here.

Sony has sold a staggering amount of Jackson’s stuff since his death last summer, so it’s possible that Apple is simply trying to take advantage of what appears to be insatiable demand. But that doesn’t sound right to me: Even a huge hit on iTunes does very little for Apple’s books.

My guess: Apple maintains a vise-grip on the digital sales, but every now and then likes to throw the labels a bone. For instance, it used to insist that all of the labels sell all of their songs for 99 cents, but earlier this year, Apple changed its policy and now offers three different price points.

EARLIER: After Michael Jackson died, fans flooded iTunes to snap up his music. But when “This Is It,” the singer’s final work, comes out this month, they’ll have to look somewhere else: Apple’s digital store won’t be selling the album.

So says Digital Music News, citing “confidential information.” The problem, supposedly, is that Sony (SNE) and Jackson’s estate want to sell the entire double album as a set, while Apple insists that all of the music it sells needs to be available as singles.

I’m checking with Sony and Apple to confirm, but the story is a familiar one, because it’s a longstanding dispute between Apple (AAPL) and the music business. The industry, for both financial and artistic reasons, has tried to keep music bundled together, while Apple insists on selling it a la carte.

Apple usually wins these disputes: Even the stubborn iconoclasts in Radiohead eventually bowed to Steve Jobs’s will and turned their precious albums into individual songs.

If there is a clamor for the new Jackson music online, it will reportedly benefit Amazon (AMZN), whose MP3 store does offer album-only releases.

But I’m not sure how loud the clamor will be: As best I can tell, the “new” release contains only a smattering of Michael Jackson you haven’t heard before: Two versions of the title song, plus “a recently discovered spoken word poem.”

The rest? Greatest hits you can already buy, song-by-song, on iTunes.

But here’s a very slight twist: The sales decline slowed in the most recent quarter. U.S. sales dropped 11.1 percent in Q3, compared to a 14.5 percent drop in Q2, according to Nielsen Soundscan.

That’s the good news. The bad news is that Michael Jackson isn’t going to pass away again–and that unless they finally do come to Apple’s (AAPL) iTunes, there probably isn’t another way to repackage the Beatles again. Billboard:

Renewed interest in the Beatles and Michael Jackson slowed the decline of U.S. album sales in the third quarter, although the industry is still on track to fall for the eighth time in nine years….

Music retailers are hoping that the continued performance of Jackson and Beatles albums and a strong fourth-quarter release schedule will continue to make up lost ground.

During the quarter, Jackson’s June 25 death fueled sales of about 5 million units, and the September 9 re-release of the Beatles catalog has sold 1.3 million units so far.

So far this year 11 albums have topped the 1 million-unit mark, the same number as in 2008. In 2008, the top seller was Lil Wayne’s “Tha Carter III,” at 2.5 million units; this year’s top seller is Jackson’s “Number Ones,” at 1.8 million units.

If you’re lucky, you can get the press to do some marketing for you. And if you’re really lucky, you can get Apple (AAPL) to do your marketing for you.

The newest set of Apple ads focuses on apps made by big brands–Barnes & Noble, Pizza Hut, Gap, Epicurious and Zagat–that can certainly afford their own promotional pushes.

And certainly those guys paid cash or some other kind of compensation for the consideration, right? Not as far as Advertising Age can discern: The trade mag notes with a bit of dismay that there isn’t any kind of application process to get into Apple commercials and that “the marketers in question didn’t request to be in the commercial at all.”

As far as I can tell, this mirrors Apple’s overall policy for iTunes, whether you’re talking about music, movies or apps: Unlike traditional retailers or even competitors like Amazon (AMZN), there’s no way to buy shelf space at Apple’s digital store. If you want Apple to shine a spotlight on your stuff, you just have to hope that someone there likes your stuff. AdAge:

Apple did not immediately respond to requests for comment on the story, but it’s clear the company looks for apps that use as many aspects of the iPhone as possible, such as sound, shaking, GPS or the camera. It also seemed to favor anything that highlights features of the newest operating system, such as in-app payment. Additionally, it appears that brands are given more credit for good user experience than whether or not they can match Apple’s own cool factor.

Pizza Hut, for instance, doesn’t have many common associations with the tech giant but its app was the first from the quick-service industry that let users place delivery orders.

*Note that Apple’s app ecosystem has grown faster than its ad agency expected; the new campaigns announce that there are 75,000 apps, but that number is 10,000 short, according to a release Cupertino put out yesterday.

How do we put that in context? A couple different ways.

For starters, let’s note that the velocity of apps Apple (AAPL) is delivering is increasing: It took Steve Jobs and company a little more than a year to serve up the first 1.5 billion apps, which averages 4.1 million downloads per day. But Apple moved the next 500 million apps within 76 days. That’s a 6.6 million-per-day average.

Next, let’s acknowledge that while the money Apple makes from the app store is secondary to its core hardware business, it’s still a sizable amount.

Even if you assume that the majority of apps are downloaded for free, the remainder may still be generating sales of $200 million a month, mobile ad network AdMob guesstimates. Apple keeps 30 percent of that, which works out to be $720 million a year. Not bad for a side business.

Turns out he’s figured out how to do it: By going back to work for CBS.

The broadcaster, which canned Carolla from his radio job earlier in the year, is now going to sponsor his podcast. It will promote the show, handle ad sales and let Carolla program his own Web radio station.

The press release announcing the deal describes it as a “partnership.” I’m trying to figure out if that means Carolla will become an employee again or if it’s a real partnership, whereby, say, he retains ownership of his show and shares revenue with CBS (CBS).

I’m guessing it’s the former, since selling ads for podcasts still requires a lot of work and not that much return. It’s much easier for CBS to sell ads against a local radio station with an audience of a million or more than for Carolla’s show, which reaches an average of 130,000 people at a time.

Still, Carolla’s show is frequently in Apple (AAPL) iTunes’s Top 10 podcast list, and someday, someone will figure out how to take advantage of its (relatively) small but dedicated audience. And the show already has one sponsor–Carolla has started doing a “live read” for Adam & Eve Stores, the “the nation’s number one source for all things erotic.”

Here’s an interview I conducted with Carolla in March, where he explains his not-entirely voluntary move to the Web and his attempts to turn it into a money-making venture.

And here’s the release:

CBS RADIO FORGES ONLINE PARTNERSHIP WITH ADAM CAROLLA

Popular Entertainer’s Podcast To Be Featured Across CBS RADIO Properties;
Carolla To Also Program His Own Streaming Radio Station, K-ACE

CBS RADIO today announced it has partnered with Adam Carolla, comedian, TV star, radio host, actor and entertainer to present his successful podcast to legions of listeners and fans nationwide.  “THE ADAM CAROLLA PODCAST” can be heard for free on-demand at www.adamcarolla.com and is additionally available for download on iTunes.

Promotion for Adam Carolla will appear across CBS RADIO’s portfolio of station properties with direct links to the entertainer’s dedicated website.  Once there, fans can listen to the latest audio rant from Adam, as well as sample archived podcasts.  Ad sales for the podcast will be handled by CBS RADIO.  Pre-roll, in-stream audio and live reads are available for local and national clients looking to reach Adam’s target audience of Men 18-49, among others.

In addition, an Adam Carolla focused radio station, called K-ACE, debuts on Monday, September 28, and will offer fans segments from Carolla’s popular podcasts interspersed with rock music and programming selected by Carolla, “The Aceman,” himself.  K-ACE can be heard via CBS RADIO’s streaming platform, Yahoo! Music Radio, AOL Radio, and on select mobile devices such as the iPhone, iPod Touch and the Blackberry.

“THE ADAM CAROLLA PODCAST” began in February 2009 and currently reaches over 130,000 listeners per show.  The podcast remains a constant in the Top 10 of iTunes’ Top Podcasts chart.  Carolla, famous for his rants on various outrageous topics, uses his podcast to broadcast his opinions, while hosting an assortment of influential and popular celebrities and friends, as he charms guests and listeners alike with his witty sense of humor and biting sarcasm.

“I’m thrilled to be back in business with my friends at CBS RADIO and feel like I’m at the vanguard of an exciting new technology,” says Carolla.  ”Now, if somebody could just tell me what the hell a POD is!”

“We are excited to once again be working with Adam Carolla providing our listeners with the same Adam that so many fans have come to know and love over the years,” says Chris Oliviero, Vice President of Programming, CBS RADIO.  “Adam has an uncanny ability to relate to everyday people in a funny and engaging manner, and the popularity of his podcast is a testament to that.

“This distinctive partnership showcases CBS RADIO’s commitment to growth in the digital space and highlights the accessibility, portability and cutting edge programming available on radio.”

Adam Carolla, who is best known for his work in television and radio, has previously hosted CBS RADIO’s “The Adam Carolla Show,” was co-host of the nationally syndicated radio call-in show “Loveline,” co-created, and executive produced and co-hosted Comedy Central’s ”The Man Show,” co-created, executive produced and was a character on “Crank Yankers,” as well as was a contestant on ABC’s popular series “Dancing With The Stars.” Carolla also starred, wrote and produced the award-winning indie film “The Hammer.”  He is currently writing his first book to be published by Crown in Fall 2010.  In addition to “THE ADAM CAROLLA PODCAST,” Carolla is host of “Carcast,” a podcast devoted to those who share Carolla’s passion and pastime of all things automobiles.

]]> http://mediamemo.allthingsd.com/20090915/former-cbs-dj-adam-carolla-gets-a-new-gig-cbs-podcast-host/feed/ 0 http://mediamemo.allthingsd.com/20090908/let-it-be-beatles-still-not-coming-to-itunes-tomorrow/ http://mediamemo.allthingsd.com/20090908/let-it-be-beatles-still-not-coming-to-itunes-tomorrow/#comments Tue, 08 Sep 2009 15:51:31 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=10759 iPods with cameras? Maybe. iTunes with new features? For sure. iTunes with Beatles? Nope.

I’m sure that Apple (AAPL) will indeed sell the Fab Four’s music via its digital music store one day. But it’s not happening at Apple’s keynote presentation tomorrow.

The Beatles estate, Electronic Arts (ERTS) and Viacom’s (VIA) MTV will be releasing a new version of “Rock Band” that features the band’s songs tomorrow. And on the same day, EMI Music Group will release all of the band’s music on remastered compact discs.

But that’s it, a source familiar with the band’s plans tells me. For now.

UPDATE: Want an on the record source? The Financial Times obliges with a follow-up:

“Conversations between Apple and EMI are ongoing and we look forward to the day when we can make the music available digitally. But it’s not tomorrow,” Ernesto Schmitt, EMI’s global catalog  president, told the FT’s Andrew Edgecliffe-Johnson.

Beatles-to-iTunes is a story that never goes away. And some day, it will turn out to be true–there’s no good reason for it not to happen. But predictions that it will happen Wednesday have been tied to wafer-thin logic.

Two years ago, the Web was convinced an announcement was in the offing because of the wording of an Apple keynote invitation. This year, even sober-minded publications are noting the timing of Apple’s keynote event and the Rock Band and CD launches, concluding that an iTunes launch makes sense too.

But I’d argue that it makes less sense: If you’re trying to convince people to spend $16.99 for a remastered copy of the White Album or as much as $250 to play along with the band’s ghostly avatars, why offer a competing product from Apple at the same time?

Nor do I see Steve Jobs expressing much interest in coordinating his marketing announcements with the likes of Viacom.

Anyway, if you really want to get the Beatles on the Web, you don’t have to wait for Apple–a quick Google search will do. Or you can head to Google’s (GOOG) YouTube, which is flooded with great clips like this:

]]> http://mediamemo.allthingsd.com/20090908/let-it-be-beatles-still-not-coming-to-itunes-tomorrow/feed/ 6 http://mediamemo.allthingsd.com/20090820/gamestopped-video-game-sales-slump-hits-video-game-sales-giant-who-knew/ http://mediamemo.allthingsd.com/20090820/gamestopped-video-game-sales-slump-hits-video-game-sales-giant-who-knew/#comments Thu, 20 Aug 2009 14:41:35 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=10099 When videogame sales tank, what happens to sales at the world’s biggest videogame retailer?

The answer shouldn’t be a surprise, but somehow the performance Gamestop reported this morning managed to catch Wall Street off guard anyway.

The company’s revenue of $1.74 billion was in line with estimates, but earnings of 23 cents a share missed consensus by five cents. More worrisome is that the company had to knock down its guidance for the rest of the year and says that comparable store sales will be down between four percent and eight percent through 2009. Now Gamestop (GME) shares are trading down five percent in a flat market.

Did I mention that this shouldn’t be a surprise? Game sales, once thought to be immune to the recession, have been slumping for months. Turns out that a tough economy may indeed prompt more gamers to huddle in the basement in front of their Xboxes, but it won’t prompt them to buy new games (used ones may be a different story).

Gamestop says it’s still optimistic that coming games, like yet another Call of Duty sequel from Activision (ATVI) and yet another version of Halo from Microsoft/Bungie (MSFT), will help perk things up. But I’m interested to note that the company didn’t cite the new Beatles version of Rock Band, from Electronic Arts (ERTS) and Viacom’s (VIA) MTV as a catalyst.

By the way, for fantasists who persist in pretending that the Beatles are coming to iTunes at Apple’s (AAPL) event next month: Stop! It’s not true.

]]> http://mediamemo.allthingsd.com/20090820/gamestopped-video-game-sales-slump-hits-video-game-sales-giant-who-knew/feed/ 1 http://mediamemo.allthingsd.com/20090818/not-dead-yet-the-cd-still-rules-music-but-itunes-is-closing-the-gap/ http://mediamemo.allthingsd.com/20090818/not-dead-yet-the-cd-still-rules-music-but-itunes-is-closing-the-gap/#comments Tue, 18 Aug 2009 13:41:46 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=9979

[CORRECTION: My assertion about NPD's unit sales data below is incorrect: The tracking service counts 12 digital download singles as the equivalent of one CD. That makes Apple's share of the market that much more impressive, since singles make up the majority of iTunes sales.]

Ready to toss dirt on the old, unloved CD? You’re going to have to wait a while. Compact discs are increasingly hard to find (at least in physical stores), but someone out there keeps buying them: The ancient format still makes up the majority of music sales in the U.S.

Here are the data for the first half of the year, via the NPD Group consumer-tracking outfit: CDs made up 65 percent of the music market, while paid digital downloads accounted for 35 percent. The digital share has increased from 20 percent two years ago, and Apple’s iTunes (AAPL) alone makes up 25 percent of overall sales*, so you’re going to hear lots of proclamations about Steve Jobs’s ascent to the to top of the music industry.

But hold off on that, just a bit. Because those numbers are skewed even more in favor of the CD than they appear at first glance: They’re measuring unit sales, not dollars. And given that the majority of digital sales are in the single format (i.e., a dollar or so a pop), that means CDs (at $10 or so a pop) still account for the vast majority of music revenue.

Which is why the industry is still tied to CDs, even though no one you know buys them anymore. And it explains why the industry is working on two separate digital formats (dubbed “Cocktail” when sold by Apple, and CMX when sold by anyone else) designed to induce buyers to pay for CD-like bundles.

It won’t work. At best, they’ll convince some digital album buyers to upgrade, but the music business is once again a singles business, and it’s going to remain that way. But you can’t blame the industry for trying.

By the way, there are decent odds you’ll hear about Cocktail at Apple’s September event, which Digital Daily’s John Paczkowski says is scheduled for Sept. 9. Mark your calendar.

*If you’re keeping track: Wal-Mart (WMT) and Target (TGT) trail Apple in the overall market. And iTunes still dominates the digital download market with a 69 percent share, while Amazon (AMZN) is a distant second with eight percent.

]]> http://mediamemo.allthingsd.com/20090818/not-dead-yet-the-cd-still-rules-music-but-itunes-is-closing-the-gap/feed/ 0 http://mediamemo.allthingsd.com/20090814/the-pirate-bay-still-hasnt-gone-legit-still-enjoys-poking-big-media-in-the-eye-how-to-get-a-675000-mixtape-for-free/ http://mediamemo.allthingsd.com/20090814/the-pirate-bay-still-hasnt-gone-legit-still-enjoys-poking-big-media-in-the-eye-how-to-get-a-675000-mixtape-for-free/#comments Fri, 14 Aug 2009 13:00:25 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=9938 Remember how the rascals at file-sharing site The Pirate Bay, chastened by the Swedish courts, were going to straighten up and go legit? Going to have to keep waiting on that one.

A reminder of the site’s outlaw status is splashed up on the site’s front page right now, in the form of a feature promoting “DJ Joel’s $675,000 Mixtape,” which is supposedly “Approved by the RIAA,” the U.S. lobbying/litigating arm of the big music labels.

It’s not approved by the RIAA, of course. Instead, the feature steers visitors to a page that where they can illegally download 30 songs that just cost grad student Joel Tenenbaum $675,000. That’s the amount a federal jury decided he owed the RIAA after being found guilty of copyright violations for sharing the tunes via a filesharing network.

It’s the kind of cheeky move The Pirate Bay revels in and one of the reasons the Web site has such a large and devoted base of users. The main reason, of course, is that The Pirate Bay is a huge repository for free, illegal copies of movies, music, games.

That’s supposedly going to stop after August 27, when Global Gaming Factory X, a Swedish software/Internet cafe outfit, says it will go through with plans to buy the site, and then try to make it legal.

As I’ve explained before, there’s no chance that will happen.

Even if the deal really goes through, the only way The Pirate Bay’s users will stick around is if they can continue to grab whatever they want, whenever they want. And there’s no way the big music labels and movie studios and videogame companies, et al, are going to go for that.

But it will be interesting to watch!

In the meantime, here’s the track listing for the 30 songs that landed Tenenbaum in trouble. I’m pretty sure most of them are available at Apple’s (AAPL) iTunes store:

01 – Incubus – New Skin
02 – Green Day – Minority
03 – Outkast – Wheelz of Steel
04 – Incubus – Pardon Me
05 – Nirvana – Come As You Are
06 – Green Day – When I Come Around
07 – Green Day – Nice Guys Finish Last
08 – Nirvana – Heart Shaped Box
09 – Nine Inch Nails – The Perfect Drug
10 – Blink 182 – Adam’s Song
11 – Limp Bizkit – Rearranged
12 – Limp Bizkit – Leech
13 – Linkin Park – Crawling Hybrid
14 – Deftones – Be Quiet And Drive
15 – The Fugees – Killing Me Softly
16 – Red Hot Chili Peppers – Californication
17 – Red Hot Chili Peppers – By The Way
18 – Red Hot Chili Peppers – My Friends
19 – Beck – Loser
20 – Eminem – My Name Is
21 – Eminem – Drug Ballad
22 – Eminem – Cleaning Out My Closet
23 – Beastie Boys – (You Gotta) Fight for Your Right (To Party)
24 – The Ramones – The KKK Took My Baby Away
25 – Monster Magnet – Look To Your Orb For The Warning
26 – Aerosmith – Pink
27 – OutKast – Rosa Parks
28 – Rage Against The Machine – Guerrilla Radio
29 – Goo Goo Dolls – Iris
30 – Aerosmith – Water Song/Janie’s Got A Gun

]]> http://mediamemo.allthingsd.com/20090814/the-pirate-bay-still-hasnt-gone-legit-still-enjoys-poking-big-media-in-the-eye-how-to-get-a-675000-mixtape-for-free/feed/ 5 http://mediamemo.allthingsd.com/20090812/realnetworks-still-barred-from-the-dvd-backup-business-why-does-realnetworks-want-to-be-in-the-dvd-backup-business/ http://mediamemo.allthingsd.com/20090812/realnetworks-still-barred-from-the-dvd-backup-business-why-does-realnetworks-want-to-be-in-the-dvd-backup-business/#comments Wed, 12 Aug 2009 19:16:55 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=9821 So now that the RealNetworks attempt to get into the movie-copying business has been rebuffed by a federal court once again, I’ve got a question: Why, exactly does RealNetworks (RNWK) want to be in the movie-copying business?

To recap: Real wants to sell a $30 piece of software called RealDVD that lets you rip and store DVDs on your computer. Real’s software adds its own set of locks to the ripped file to prevent DVD owners from passing along their files to someone else, but that isn’t nearly enough to placate Hollywood.

Real and the studios have been in court since last fall, when U.S. District Court Judge Marilyn Hall Patel issued a restraining order preventing Real from selling the software. Yesterday, Patel (whom you may recall from the old Napster days, when she essentially shut that service down) turned the restraining order into an injunction, along with a sharply worded ruling that basically described Real as a group of willfully obtuse doofuses.

Now Hollywood is dancing, and Real says it needs to “determine our course of action.” I have a suggestion for Real: Move on.

I know there’s a legitimate use for software that lets you rip DVDs you own–and more importantly, software that lets you circumvent the locks the studios put on their discs. But why not let the many other smaller companies fighting this fight, fight this fight?

Best-case scenario is that you end up with software that’s useful for a relatively small group of people: The ones who buy DVDs and want to watch them multiple times. Worst case is the one you have now: An expensive legal battle and the prospect of a product you’ll never be able to sell.

I’ve been puzzling about Real’s plan for this software from the get-go. Why release a product that is destined for a court battle?

A few people familiar with the company’s thinking have tried to explain that this fits into CEO Rob Glaser’s vision for Real’s future, which involves creating software that maintains a connected home entertainment hub. But that seems like a roundabout way to get there.

I have another theory: Glaser is a smart, pugnacious guy with a fondness for big public fights.

He spent some time in the earlier part of this decade jousting with Steve Jobs about Apple’s (AAPL) walled-garden approach to iTunes music, and lost that one. But he did get Microsoft (MSFT) to hand over $760 million to settle an antitrust case in 2005, and he still has a chunk of that cash in the bank.

Or maybe there’s an entirely different impulse behind RealDVD. But whatever it is, I’d love to hear it. Here’s a clip of Rob Glaser explaining the software’s features, but not the rationale behind it, to BoomTown’s Kara Swisher:

]]> http://mediamemo.allthingsd.com/20090812/realnetworks-still-barred-from-the-dvd-backup-business-why-does-realnetworks-want-to-be-in-the-dvd-backup-business/feed/ 0 http://mediamemo.allthingsd.com/20090721/live-apple-q3-earnings-call/ http://mediamemo.allthingsd.com/20090721/live-apple-q3-earnings-call/#comments Tue, 21 Jul 2009 22:32:04 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=9516 This is now an Apple earnings-call tradition: Analysts try their hardest to convince Apple (AAPL) executives to express interest in the booming market for cheap netbooks and Apple executives make it perfectly clear how much disdain they have for netbooks.

If that’s the kind of thing that makes you happy, then you would love today’s call, in which the exact same thing happened again. Twice! From my transcription/paraphrase this afternoon:

Q: What about getting into the low priced/netbook category?

Apple COO Tim Cook: “Our goal is not to build the most computers, it’s to build the best. Whatever price point we can build the best in, we will play there. At this point, we don’t see a way to build a great product at that price point, $399, $499.” We think many customers buying those find themselves “disenchanted” after buying cheapo/netbooks.

Q: Do you think there is an emerging market for a “truly mobile device” with a larger screen, a market big enough that you may want to participate?

Cook: “Never want to discount anything in the future,” and never want to answer specifically your question about new products. [Duh.] But boy, do we think netbooks are lousy, and we think customers agree.

Two things here:

1. Apple has a history of disparaging products and markets right before they unveil their own. So it’s not unreasonable for analysts to keep asking about the prospects for a supercheap Mac laptop. But Apple really is emphatic about its distaste for these machines.
2. Apple is not ruling some sort of device that’s more expensive than a netbook and less expensive than a $999 MacBook…and may have a big touchscreen…and is bigger than an iPhone, etc. Something, perhaps, like an $800 iTablet. We’ll see.

EARLIER:

Joining call late; analysis of Q3 results here.

Reading from prepared statement:

• Eight billion songs purchased and downloaded from iTunes store.
• Slight uptick at Mac retail stores. 50 percent of Macs sold at stores to customers who didn’t own Macs before. 258 stores. 27 store remodels.
• Gross-margin improvement: Component cost increase not as high as expected; weaker U.S. dollar helped.
• Cash pile: Will be invested in short-term investments. First week of Q4, made $500 million payment to Toshiba for future supply of NAND flash memory.

Q&A:

• Please talk about your relationship with wireless carriers (i.e., when will you dump AT&T (T) for Verizon (VZ). Tim Cook: “I think that most of the carriers we’re doing business with are thrilled with lower churn…and, of course, their customers are demanding the iPhone.” Do you see opportunity beyond the iPhone, like data plans for laptops with AT&T? “Nothing to be announced today.” How’s your relationship with AT&T? “I think it’s an excellent relationship and we’re very happy with it.”
• Discussion of education and professional market for Mac laptops/PCs–both affected by economy more than consumer market, i.e., schools and corporations are less likely to spring for shiny new Macs than Joe Sixpack.
• How is the $99 iPhone performing? As we made changes–launch of 3Gs and lower-priced iPhones–we saw acceleration of unit sales. But won’t break down mix. Supply of phones has been “constrained” and demand is robust. Opportunity for enterprise sale? Big opportunity. Doing well with small business, and with big corporations and agencies where employees can purchase for themselves.
• Guidance details? No change in thinking regarding guidance offerings. We usually see an increase in Mac units from June to September, but we think the sequential increase will be less than in previous years since we’ve refreshed our lines a while back. Also, education sales are “under pressure from budget shortfalls.” Same thing with the iPod: We think we’ll see a decline for regular players but an increase for the iPod touch. Seasonality makes projections a little funky this time around given timing of product launches.
• Channel inventory for iPhone lower is than we would like; there are 1.83 million phones in inventory.
• Given the $999 MacBook and price cuts for the Mac line, is the MacBook more or less elastic than anticipated? As we expected, some people are now buying up, because they can get the Macbook Pro for $1,199, down from $1,899. “We’re not thinking fundamentally different about the Mac business than we were before.” If we can build great Macs at lower prices, we will, but we won’t put the Mac brand on products that aren’t up to our standards.
• Update on Snow Leopard? Why such a low price point? Snow Leopard is priced aggressively so that all our users can upgrade to it, and we expect that they will. What commodity prices are you worried about, what should we think of the Toshiba prebuy? Are others coming? The market for DRAM and large-size LCDs has “shifted to constrained environment” and prices have moved accordingly. The NAND supply is getting better. We have a long-term supply agreement with Toshiba. We view flash as key component because we use it in so many products, and we’re a big consumer on a worldwide basis. We’re always open to similar deals. We’ve done one with LG on LCDs. We may do others, but we’re not working on one now.
• Please talk more about consumer demand for lower-priced laptops. No details forthcoming. But on macro level: Once price changes, people are upsold from $999 unit to $1,199 unit. [We just heard that.] Prior to change, we had seen people leaning toward the $999 product. What about pricing on iPhone side? Sounds like $99 3G iPhone helped drive traffic to the $199 3GS iPhone. Was that the plan? We’re focused on total iPhone units. So we’re psyched about 5.2M iPhones sold. Also, take note that the 3GS is in short supply and not available in all territories. Also, early in cycle, you have more upgraders, and upgraders are more likely to get higher priced phones. Still, too early to tell about product mix.
• Competitors are now finally coming out with rival app stores–Pre (barely), BlackBerry, etc.). What are you up to in answering back? Well, we just launched OS 3.0. That’s pretty great. It has an Installed base of 45 million (iPhones and iPod touch). We have a gazillion apps. According to the latest numbers from Nokia (NOK) and RIM (RIMM), they have a couple thousand each; Android has maybe 5,000. “We feel extremely good about our competitive position and continue to believe that we’re light years ahead of other people.”
• What about getting into the low-priced/netbook category? Tim Cook: “Our goal is not to build the most computers, it’s to build the best. Whatever price point we can build the best in, we will play there. At this point, we don’t see a way to build a great product at that price point, $399, $499.” We think many customers buying those find themselves “disenchanted” after buying cheapo/netbooks.
• Is the carrier network strong enough to handle all the apps and the more robust apps you’re coming out with every day? Non-answer. Do you think you guys will make investments on the side to take pressure of carrier-capacity issues? No plans. When we entered business, we looked at it, decided what we could do well was deliver the handset. I think there are other people that have more skills in the network area, and I think we have a lot of those partners.
• Back to netbooks and things like netbooks, but better, like the iTablet: Do you think there is an emerging market for a “truly mobile device” with a larger screen, a market big enough that you may want to participate? Cook: “Never want to discount anything in the future,” and never want to answer specifically your question about new products. [Duh.] But, boy, do we think netbooks are lousy and we think customers agree.
• Any info on iPhone sales split between new buyers and upgrades? Nope. Okay, how about the app store? It looks like prices are in a “race to the bottom”; there are lots of 99 cent apps. Are you worried about that? And can you help customers distinguish between good ones and “garbage”? Cook: “We realize there’s further opportunity for improvement” regarding promoting quality apps, etc. Regarding price: It’s up to the developers. As the installed base grows, it makes more sense to have lower prices, but that’s up to the developers.

Call finished.

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