In 2008 there were a number of areas in which the focus turned to the role and place of independent labels and artists in the digital landscape.
Of significance was the continued concern over access by independents to terrestrial radio. In a survey conducted by A2IM, the American Association of Independent Musicians, 92% of respondents indicated that their relationship with terrestrial radio broadcasters remains unchanged since the investigation into Payola was conducted and voluntary agreements were entered into.[1] The continued lack of access to mainstream media creates significant impediments for independent artists.
In October 2008 the new MySpace Music service was launched in the United States but with the exception of content from The Orchard, there was no independent content on the site.[2] This was primarily due to disagreements regarding the remuneration of artists.[3] Major labels were given an equity stake in the music service however this was not forthcoming for independent artists.[4] Shortly after the launch IODA which represents over 50,000 artists and administers over 100,000 tracks signed on however to date there has been no agreement with other independent labels including more than 12,000 which are represented by Merlin. [5] Unsigned artists were also absent – while they remain able to upload their own music, there is no mechanism in place for them to receive compensation for the streaming of their tracks.[6]
IODA also warned member labels against entering into agreements with Imeem and LaLa in January 2008 because the terms that were being offered were significantly different to what was being offered to major label artists.[7]
A number of independent labels and artists are also seeking to bypass iTunes to sell music directly from artist websites as a way of both saving money and because of the failure of iTunes to feature independent artists.[8]
Merlin which began in January 2007 now has a membership of 12,000 record labels and is considered the most commercially significant group outside of the major record labels -arguably as large as EMI.[9] The organisation is designed to ensure that independent labels have the ability to negotiate terms and conditions for licenses in an easy way with the bargaining strength to ensure that independent artists are not faced with inequitable levels of remuneration.[10]
Collectively independent labels account for 27.5% of total music sales worldwide.[11]
[1] Future of Music Coalition, Payola and Indie Access to Commercial Airwaves (23 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/payola-and-indie-access-to-commercial.html> at 27 October 2008; Digital Music News, Independents: We Got Playlist & Payola Problems... (21 October 2008) <http://www.digitalmusicnews.com/stories/102008a2im> at 22 October 2008; Digital Music News, DeWolfe: MySpace Actively Talking to Independents (4 April 2008) <http://www.digitalmusicnews.com/stories/040308myspace2> at 8 April 2008
[2] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008; The Register, Poptastic MySpace Launches, without indies (26 September 2008) <http://www.theregister.co.uk/2008/09/26/myspace_music_launch/> at 5 October 2008; ArsTechnica, MySpace Music extends right hand of fellowship to Big Four, middle finger to indies (25 September 2008) <http://arstechnica.com/news.ars/post/20080925-myspace-music-extends-right-hand-of-fellowship-to-big-four-middle-finger-to-indies.html> at 26 September 2008; Digital Music News, MySpace Music Goes Live; All Majors On Board (25 September 2008) <http://www.digitalmusicnews.com/stories/092408myspace> at 26 September 2008; TechDirt, Independent Record Labels Missing From MySpace Music (25 September 2008) <http://www.techdirt.com/articles/20080925/1530262378.shtml> at 26 September 2008
[3] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008
[4] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008; Digital Music News, Drama Hits MySpace Music: Why Are Indies So Mad? (26 September 2008) <http://www.digitalmusicnews.com/stories/092508myspaceindie> at 5 October 2008; Digital Music News, Independent Equity Details Surface on MySpace Music (21 April 2008) <http://www.digitalmusicnews.com/stories/042008myspace> at 26 April 2008
[5] ArsTechnica, MySpace Music signs IODA, "virtual fifth" Merlin still MIA (23 October 2008) <http://arstechnica.com/news.ars/post/20081023-myspace-music-signs-ioda-virtual-fifth-merlin-still-mia.html> at 25 October 2008; Digital Music News, MySpace Music Inks IODA; Million-Plus Independent Songs (23 October 2008) <http://www.digitalmusicnews.com/stories/102308ioda> at 24 October 2008
[6] Future of Music Coalition, MySpace Music: Penthouse or Third-Floor Walkup (21 October 2008) <http://futureofmusiccoalition.blogspot.com/2008/10/myspace-music-user-review.html> at 27 October 2008
[7] Digital Music News, IODA Just Says No: Imeem, LaLa (16 January 2008) <http://www.digitalmusicnews.com/stories/011608ioda> at 20 Janaury 2008
[8] ArsTechnica, Indie labels bypass iTunes, give digital sales a shot (17 March 2008) <http://arstechnica.com/news.ars/post/20080317-indie-labels-bypass-itunes-give-digital-sales-a-shot.html> at 18 March 2008; WashingtonPost/Reuters/Billboard, Indie labels take e-commerce into their own hands (15 March 2008) <http://www.washingtonpost.com/wp-dyn/content/article/2008/03/15/AR2008031501795.html> at 18 March 2008; Digital Music News, Queen of Soul Leaving Arista, Independent Strategy Underway (6 February 2008) <http://www.digitalmusicnews.com/stories/020508franklin> at 19 February 2008
[9] Digital Music News, Merlin: We're Just as Big as EMI Music... (9 June 2008) <http://www.digitalmusicnews.com/stories/061108merlin> at 13 June 2008; ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008
[10] ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008
[11] ArsTechnica, "Fifth major" Merlin signs 12,000 indie labels, eyes MySpace (5 May 2008) <http://arstechnica.com/news.ars/post/20080505-fifth-major-merlin-signs-12000-indie-labels-eyes-myspace.html> at 6 May 2008
Thursday, November 20, 2008
Year in Review: Filtering
There was further discussion, trial and policy endorsement regarding the introduction of content filtering around the globe in 2008.
Australia
The Australian Government conducted research trials into the effectiveness of content filters seeking to commence ISP level filtering for the purposes of child safety.[1] Reports concerning the proposal indicated that despite there being significant costs and the likelihood that entire content distribution sites such as Facebook and YouTube may be blocked, that 60% of web traffic, namely that offered through peer to peer networks, would be unaffected by the introduction of such a scheme.[2] This is primarily due to the technical limitations that exist with respect to deep packet inspection.[3]
Belgium
In 2007 the Belgium ISP Scarlet was ordered to impose content filters (Audible Magic) to prevent the distribution of copyright infringing material.[4] In October 2008 however the decision was overturned after the court accepted evidence that such filtering would be expensive and ineffective.[5]
Denmark
In February 2008 the Danish ISP Tele2 was ordered by a court to block access to the Pirate Bay. Immediately after the decision The Pirate Bay created a new url – jesperbay.com – to allow users to continue to access the site.[6]
Ireland
Litigation against the Irish ISP Eircom was initiated in 2008 with representatives of the content industry arguing that the ISP has an obligation to impose filtering technology on all file transfers.[7]
Europe
In October 2008 the European Commission rejected a proposal designed to ensure member countries impose ISP level filtering, instead respecting the need for open communication on the internet.[8] It appears as though the initial push toward adopting ISP filtering across Europe came from France.[9]
Technological Developments
Brilliant Digital Entertainment operated by Kevin Bermeister and Michel Speck announced that they had developed software which is entering its final testing phase which would operate at an ISP level and direct file sharers to legitimate content over illegal content.[10] The scheme which they seek to introduce with the cooperation and assistance of ISPs and content owners would include revenue sharing between the parties for each of the purchases made.[11]
The limitations of filtering technologies became evident in two separate studies in 2008. The Internet Evolution invited 28 filtering companies to participate in a study in order to determine the effectiveness of their technology.[12] Only five companies volunteered to participate and only two ended up publishing their results.[13] Of the two that published it was evident that significant impediments remain as to the accurate identification of protocols both with and without the use of encryption.[14]
An Australian filtering study also highlighted significant limitations to the filtering of content based on deep packet inspection.[15]
Despite the limitations evident in the use of this technology, representatives of the content industry continue lobbying to have it implemented.[16] Most ISPs continue to resist its implementation however some appear willing to enter into trials.[17]
Filtering Legitimate Content
The tendency of filtering systems to block legitimate content was further illustrated by reports that the W3C site was being blocked by some ISPs on the ground that it contained objectionable content.[18] The site manages standards for the web and is operated by the developer of the World Wide Web Tim Berners-Lee.[19]
[1] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[2] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[3] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[4] OutLaw, Beligian ISP wins reprieve in copyright infringement filtering case (28 October 2008) <http://www.out-law.com/page-9537> at 30 October 2008; TechDirt, Belgian Court Realizes That ISPs Shouldn't Be Forced To Block File Sharing (27 October 2008) <http://www.techdirt.com/articles/20081027/0428512655.shtml> at 29 October 2008; The Register, Belgian judge reverses moon-on-stick music copyright ruling (27 October 2008) <http://www.theregister.co.uk/2008/10/27/scarlet_isp_belgium_reversal/> at 28 October 2008
[5] OutLaw, Beligian ISP wins reprieve in copyright infringement filtering case (28 October 2008) <http://www.out-law.com/page-9537> at 30 October 2008; TechDirt, Belgian Court Realizes That ISPs Shouldn't Be Forced To Block File Sharing (27 October 2008) <http://www.techdirt.com/articles/20081027/0428512655.shtml> at 29 October 2008; The Register, Belgian judge reverses moon-on-stick music copyright ruling (27 October 2008) <http://www.theregister.co.uk/2008/10/27/scarlet_isp_belgium_reversal/> at 28 October 2008
[6] Digital Music News, Pirate Bay Gets Shorted In Denmark, ISP Blocks Access (6 February 2008) <http://www.digitalmusicnews.com/stories/020508pirate> at 19 February 2008
[7] Sydney Morning Herald, Music industry opens new front on piracy (25 April 2008)<http://www.smh.com.au/news/web/music-industry-opens-new-front-on-piracy/2008/04/25/1208743215717.html> at 27 April 2008; ArsTechnica, "Year of filters" turning into year of lawsuits against ISPs (11 March 2008) <http://arstechnica.com/news.ars/post/20080311-year-of-filters-turning-into-year-of-lawsuits-against-isps.html> at 18 March 2008
[8] ZeroPaid, European Parliament Rejects Anti File Sharing Proposal (28 September 2008) <http://www.zeropaid.com/news/9775/European+Parliament+Rejects+Anti-File-Sharing+Proposals> at 5 October 2008
[9] ZeroPaid, French Minister Pushing For Mandatory ISP Level Filtering Across Europe (2 August 2008) <http://www.zeropaid.com/news/9670/French+Minister+Pushes+for+Mandatory+ISP+Level+P2P+Filtering+Across+Europe> at 6 August 2008
[10] The Age, Rivals combine to combat crime (29 October 2008) <http://www.theage.com.au/news/technology/biztech/kazaa-foes-join-up-to-fight-pirates-and-porn/2008/10/28/1224956013205.html?page=fullpage#contentSwap1> at 30 October 2008); ArsTechnica, Ex-Kazaaer wants to turn pirates into paying customers (28 October 2008) <http://arstechnica.com/news.ars/post/20081028-new-service-aims-to-turn-pirates-into-purchasers.html> at 30 October 2008; ZeroPaid, KaZaA Founder, Former RIAA Anti-Piracy Head Join Forces to Fight Piracy (27 October 2008) <http://www.zeropaid.com/news/9825/KaZaA+Founder%2C+Former+RIAA+Anti-Piracy+Head+Join+Forces+to+Fight+Piracy> at 30 October 2008
[11] The Age, Rivals combine to combat crime (29 October 2008) <http://www.theage.com.au/news/technology/biztech/kazaa-foes-join-up-to-fight-pirates-and-porn/2008/10/28/1224956013205.html?page=fullpage#contentSwap1> at 30 October 2008; ArsTechnica, Ex-Kazaaer wants to turn pirates into paying customers (28 October 2008) <http://arstechnica.com/news.ars/post/20081028-new-service-aims-to-turn-pirates-into-purchasers.html> at 30 October 2008; ZeroPaid, KaZaA Founder, Former RIAA Anti-Piracy Head Join Forces to Fight Piracy (27 October 2008) <http://www.zeropaid.com/news/9825/KaZaA+Founder%2C+Former+RIAA+Anti-Piracy+Head+Join+Forces+to+Fight+Piracy> at 30 October 2008
[12] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[13] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[14] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[15] ZeroPaid, Australian Study - ISP Level Filters Improved, but Insufficient for p2p (5 August 2008) <http://www.zeropaid.com/news/9680/Australian+Study+-+ISP+Level+Filters+Improved%2C+but+Insufficient+for+P2P> at 6 August 2008; ZDNet, BitTorrent hole in ISP filter tests (28 July 2008) <http://www.zdnet.com.au/news/communications/soa/BitTorrent-hole-in-ISP-filter-tests/0,130061791,339290888,00.htm> at 29 July 2008
[16] ZeroPaid, RIAA Wants Anti-Virus Software to Filter Pirated Content? (7 February 2008) <http://www.zeropaid.com/news/9251/RIAA+Wants+Anti-Virus+Software+to+Filter+Pirated+Content%3F> at 8 February 2008; Public Knowledge, RIAA wants content filters and proposes spyware too (6 February 2008) <http://www.publicknowledge.org/node/1388> at 8 February 2008; The Register, RIAA chief calls for copyright filters on PCs (8 February 2008) <http://www.theregister.co.uk/2008/02/08/riaa_wants_filters_for_end_users/> at 8 February 2008; TechDirt, RIAA Says Copyright Filters Could Be Put In Anti-Virus Software (7 February 2008) <http://www.techdirt.com/articles/20080207/131223199.shtml> at 8 February 2008; Digital Music News, Industry Keeps Rallying Against Dumb Pipes (29 January 2008) <http://www.digitalmusicnews.com/stories/012808isp> at 30 January 2008; TechDirt, NBC Universal Explains Why ISPs Should Filter Copyrighted Works (15 January 2008) <http://www.techdirt.com/articles/20080115/153752.shtml> at 18 January 2008 ; The Register, Music biz targets ISPs - official (27 January 2008) <http://www.theregister.co.uk/2008/01/27/ifpi_digital_threat/> at 30 January 2008
[17] ZeroPaid, Verizon to Hollywood: 'We Won't Help You Fight Piracy' (6 February 2008) <http://www.zeropaid.com/news/9247/Verizon+to+Hollywood%3A+%27We+Won%27t+Help+You+Fight+Piracy%27> at 7 February 2008; TechDirt, ISP Copyright Filter Debate Continues: Verizon Stays Away, While Rep. Bono Is All For Filtering (30 January 2008) <http://www.techdirt.com/articles/20080130/152634129.shtml> at 4 February 2008; ArsTechnia, IFPI fantasy: 2008 the year ISP filtering "becomes reality" (24 January 2008) <http://arstechnica.com/news.ars/post/20080124-ifpi-fantasy-2008-the-year-isp-filtering-becomes-reality.html> at 31 January 2008; EFFector, AT&T's Proposed Net Filtering Plan Gets Attention Vol. 21, No. 03 (24 January 2008) <http://www.eff.org/deeplinks/2008/01/3-things-ts-proposed-net-filtering-plan> at 30 January 2008; ZeroPaid, Experts Debate on AT&T Filtering the Internet (22 January 2008) <http://www.zeropaid.com/news/9212/Experts+Debate+on+AT%26T+Filtering+the+Internet> at 30 January 2008; TechDirt, Why AT&T's Plans To Filter The Internet Will Only Do More Harm To AT&T (And Everyone Else) (18 January 2008) <http://www.techdirt.com/articles/20080118/164201.shtml> at 30 January 2008; TechDirt, Is AT&T Siding With NBC To Get Rid Of Neutrality? (9 January 2008) <http://www.techdirt.com/articles/20080109/024249.shtml> at 11 January 2008; Digital Music News, Mega-ISP AT&T Considers Less Dumb Pipes (9 January 2008) <http://digitalmusicnews.com/stories/010908isps> at 11 January 2008
[18] TechDirt, What Kind Of Filtering System Thinks W3C Is A Porn Site? (30 September 2008) <http://www.techdirt.com/articles/20080929/0118232395.shtml> at 5 October 2008
[19] TechDirt, What Kind Of Filtering System Thinks W3C Is A Porn Site? (30 September 2008) <http://www.techdirt.com/articles/20080929/0118232395.shtml> at 5 October 2008
Australia
The Australian Government conducted research trials into the effectiveness of content filters seeking to commence ISP level filtering for the purposes of child safety.[1] Reports concerning the proposal indicated that despite there being significant costs and the likelihood that entire content distribution sites such as Facebook and YouTube may be blocked, that 60% of web traffic, namely that offered through peer to peer networks, would be unaffected by the introduction of such a scheme.[2] This is primarily due to the technical limitations that exist with respect to deep packet inspection.[3]
Belgium
In 2007 the Belgium ISP Scarlet was ordered to impose content filters (Audible Magic) to prevent the distribution of copyright infringing material.[4] In October 2008 however the decision was overturned after the court accepted evidence that such filtering would be expensive and ineffective.[5]
Denmark
In February 2008 the Danish ISP Tele2 was ordered by a court to block access to the Pirate Bay. Immediately after the decision The Pirate Bay created a new url – jesperbay.com – to allow users to continue to access the site.[6]
Ireland
Litigation against the Irish ISP Eircom was initiated in 2008 with representatives of the content industry arguing that the ISP has an obligation to impose filtering technology on all file transfers.[7]
Europe
In October 2008 the European Commission rejected a proposal designed to ensure member countries impose ISP level filtering, instead respecting the need for open communication on the internet.[8] It appears as though the initial push toward adopting ISP filtering across Europe came from France.[9]
Technological Developments
Brilliant Digital Entertainment operated by Kevin Bermeister and Michel Speck announced that they had developed software which is entering its final testing phase which would operate at an ISP level and direct file sharers to legitimate content over illegal content.[10] The scheme which they seek to introduce with the cooperation and assistance of ISPs and content owners would include revenue sharing between the parties for each of the purchases made.[11]
The limitations of filtering technologies became evident in two separate studies in 2008. The Internet Evolution invited 28 filtering companies to participate in a study in order to determine the effectiveness of their technology.[12] Only five companies volunteered to participate and only two ended up publishing their results.[13] Of the two that published it was evident that significant impediments remain as to the accurate identification of protocols both with and without the use of encryption.[14]
An Australian filtering study also highlighted significant limitations to the filtering of content based on deep packet inspection.[15]
Despite the limitations evident in the use of this technology, representatives of the content industry continue lobbying to have it implemented.[16] Most ISPs continue to resist its implementation however some appear willing to enter into trials.[17]
Filtering Legitimate Content
The tendency of filtering systems to block legitimate content was further illustrated by reports that the W3C site was being blocked by some ISPs on the ground that it contained objectionable content.[18] The site manages standards for the web and is operated by the developer of the World Wide Web Tim Berners-Lee.[19]
[1] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[2] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[3] The Australian, Filter to cause World Wide Wait (30 October 2008) <http://www.australianit.news.com.au/story/0,24897,24575125-5013044,00.html> at 31 October 2008; ZeroPaid, Australian Government to Finance Faulty Internet Filtering Technology (13 September 2008) <http://www.zeropaid.com/news/9749/Australian+Government+to+Finance+Faulty+Internet+Filtering+Technology> at 21 September 2008
[4] OutLaw, Beligian ISP wins reprieve in copyright infringement filtering case (28 October 2008) <http://www.out-law.com/page-9537> at 30 October 2008; TechDirt, Belgian Court Realizes That ISPs Shouldn't Be Forced To Block File Sharing (27 October 2008) <http://www.techdirt.com/articles/20081027/0428512655.shtml> at 29 October 2008; The Register, Belgian judge reverses moon-on-stick music copyright ruling (27 October 2008) <http://www.theregister.co.uk/2008/10/27/scarlet_isp_belgium_reversal/> at 28 October 2008
[5] OutLaw, Beligian ISP wins reprieve in copyright infringement filtering case (28 October 2008) <http://www.out-law.com/page-9537> at 30 October 2008; TechDirt, Belgian Court Realizes That ISPs Shouldn't Be Forced To Block File Sharing (27 October 2008) <http://www.techdirt.com/articles/20081027/0428512655.shtml> at 29 October 2008; The Register, Belgian judge reverses moon-on-stick music copyright ruling (27 October 2008) <http://www.theregister.co.uk/2008/10/27/scarlet_isp_belgium_reversal/> at 28 October 2008
[6] Digital Music News, Pirate Bay Gets Shorted In Denmark, ISP Blocks Access (6 February 2008) <http://www.digitalmusicnews.com/stories/020508pirate> at 19 February 2008
[7] Sydney Morning Herald, Music industry opens new front on piracy (25 April 2008)<http://www.smh.com.au/news/web/music-industry-opens-new-front-on-piracy/2008/04/25/1208743215717.html> at 27 April 2008; ArsTechnica, "Year of filters" turning into year of lawsuits against ISPs (11 March 2008) <http://arstechnica.com/news.ars/post/20080311-year-of-filters-turning-into-year-of-lawsuits-against-isps.html> at 18 March 2008
[8] ZeroPaid, European Parliament Rejects Anti File Sharing Proposal (28 September 2008) <http://www.zeropaid.com/news/9775/European+Parliament+Rejects+Anti-File-Sharing+Proposals> at 5 October 2008
[9] ZeroPaid, French Minister Pushing For Mandatory ISP Level Filtering Across Europe (2 August 2008) <http://www.zeropaid.com/news/9670/French+Minister+Pushes+for+Mandatory+ISP+Level+P2P+Filtering+Across+Europe> at 6 August 2008
[10] The Age, Rivals combine to combat crime (29 October 2008) <http://www.theage.com.au/news/technology/biztech/kazaa-foes-join-up-to-fight-pirates-and-porn/2008/10/28/1224956013205.html?page=fullpage#contentSwap1> at 30 October 2008); ArsTechnica, Ex-Kazaaer wants to turn pirates into paying customers (28 October 2008) <http://arstechnica.com/news.ars/post/20081028-new-service-aims-to-turn-pirates-into-purchasers.html> at 30 October 2008; ZeroPaid, KaZaA Founder, Former RIAA Anti-Piracy Head Join Forces to Fight Piracy (27 October 2008) <http://www.zeropaid.com/news/9825/KaZaA+Founder%2C+Former+RIAA+Anti-Piracy+Head+Join+Forces+to+Fight+Piracy> at 30 October 2008
[11] The Age, Rivals combine to combat crime (29 October 2008) <http://www.theage.com.au/news/technology/biztech/kazaa-foes-join-up-to-fight-pirates-and-porn/2008/10/28/1224956013205.html?page=fullpage#contentSwap1> at 30 October 2008; ArsTechnica, Ex-Kazaaer wants to turn pirates into paying customers (28 October 2008) <http://arstechnica.com/news.ars/post/20081028-new-service-aims-to-turn-pirates-into-purchasers.html> at 30 October 2008; ZeroPaid, KaZaA Founder, Former RIAA Anti-Piracy Head Join Forces to Fight Piracy (27 October 2008) <http://www.zeropaid.com/news/9825/KaZaA+Founder%2C+Former+RIAA+Anti-Piracy+Head+Join+Forces+to+Fight+Piracy> at 30 October 2008
[12] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[13] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[14] ZeroPaid, UK - New P2p Scheme: Charge for Unauthorised Content - Problem DPI Unfeasable (13 August 2008) <http://www.zeropaid.com/news/9697/UK+-+New+P2P+Scheme%3A+Charge+for+Unauthorized+Content+-+Problem%3A+DPI+Unfeasable> at 20 August 2008; ZeroPaid, P2p ISP Filtering Test Published, Labels Deny Ensuing Criticism (17 April 2008) <http://www.zeropaid.com/news/9409/P2P+ISP+Filtering+Test+Published%2C+Labels+Deny+Ensuing+Criticism> at 26 April 2008; TechDirt, Turns Out P2P Filters Don't Actually Work (1 April 2008) <http://www.techdirt.com/articles/20080328/135304687.shtml> at 3 April 2008; ArsTechnica, Deep packet inspection for P2P traffic put to the test (27 March 2008) <http://arstechnica.com/news.ars/post/20080327-deep-packet-inspection-for-p2p-traffic-put-to-the-test.html> at 30 March 2008
[15] ZeroPaid, Australian Study - ISP Level Filters Improved, but Insufficient for p2p (5 August 2008) <http://www.zeropaid.com/news/9680/Australian+Study+-+ISP+Level+Filters+Improved%2C+but+Insufficient+for+P2P> at 6 August 2008; ZDNet, BitTorrent hole in ISP filter tests (28 July 2008) <http://www.zdnet.com.au/news/communications/soa/BitTorrent-hole-in-ISP-filter-tests/0,130061791,339290888,00.htm> at 29 July 2008
[16] ZeroPaid, RIAA Wants Anti-Virus Software to Filter Pirated Content? (7 February 2008) <http://www.zeropaid.com/news/9251/RIAA+Wants+Anti-Virus+Software+to+Filter+Pirated+Content%3F> at 8 February 2008; Public Knowledge, RIAA wants content filters and proposes spyware too (6 February 2008) <http://www.publicknowledge.org/node/1388> at 8 February 2008; The Register, RIAA chief calls for copyright filters on PCs (8 February 2008) <http://www.theregister.co.uk/2008/02/08/riaa_wants_filters_for_end_users/> at 8 February 2008; TechDirt, RIAA Says Copyright Filters Could Be Put In Anti-Virus Software (7 February 2008) <http://www.techdirt.com/articles/20080207/131223199.shtml> at 8 February 2008; Digital Music News, Industry Keeps Rallying Against Dumb Pipes (29 January 2008) <http://www.digitalmusicnews.com/stories/012808isp> at 30 January 2008; TechDirt, NBC Universal Explains Why ISPs Should Filter Copyrighted Works (15 January 2008) <http://www.techdirt.com/articles/20080115/153752.shtml> at 18 January 2008 ; The Register, Music biz targets ISPs - official (27 January 2008) <http://www.theregister.co.uk/2008/01/27/ifpi_digital_threat/> at 30 January 2008
[17] ZeroPaid, Verizon to Hollywood: 'We Won't Help You Fight Piracy' (6 February 2008) <http://www.zeropaid.com/news/9247/Verizon+to+Hollywood%3A+%27We+Won%27t+Help+You+Fight+Piracy%27> at 7 February 2008; TechDirt, ISP Copyright Filter Debate Continues: Verizon Stays Away, While Rep. Bono Is All For Filtering (30 January 2008) <http://www.techdirt.com/articles/20080130/152634129.shtml> at 4 February 2008; ArsTechnia, IFPI fantasy: 2008 the year ISP filtering "becomes reality" (24 January 2008) <http://arstechnica.com/news.ars/post/20080124-ifpi-fantasy-2008-the-year-isp-filtering-becomes-reality.html> at 31 January 2008; EFFector, AT&T's Proposed Net Filtering Plan Gets Attention Vol. 21, No. 03 (24 January 2008) <http://www.eff.org/deeplinks/2008/01/3-things-ts-proposed-net-filtering-plan> at 30 January 2008; ZeroPaid, Experts Debate on AT&T Filtering the Internet (22 January 2008) <http://www.zeropaid.com/news/9212/Experts+Debate+on+AT%26T+Filtering+the+Internet> at 30 January 2008; TechDirt, Why AT&T's Plans To Filter The Internet Will Only Do More Harm To AT&T (And Everyone Else) (18 January 2008) <http://www.techdirt.com/articles/20080118/164201.shtml> at 30 January 2008; TechDirt, Is AT&T Siding With NBC To Get Rid Of Neutrality? (9 January 2008) <http://www.techdirt.com/articles/20080109/024249.shtml> at 11 January 2008; Digital Music News, Mega-ISP AT&T Considers Less Dumb Pipes (9 January 2008) <http://digitalmusicnews.com/stories/010908isps> at 11 January 2008
[18] TechDirt, What Kind Of Filtering System Thinks W3C Is A Porn Site? (30 September 2008) <http://www.techdirt.com/articles/20080929/0118232395.shtml> at 5 October 2008
[19] TechDirt, What Kind Of Filtering System Thinks W3C Is A Porn Site? (30 September 2008) <http://www.techdirt.com/articles/20080929/0118232395.shtml> at 5 October 2008
Tuesday, November 18, 2008
Year in Review: eMusic
eMusic continued to operate as the most popular digital media store for independent artists throughout 2008.
In August 2008 it was reported that the eMusic catalogue had surpassed 4 million tracks which are supplied by over 40,000 independent labels.[1] The site has served over 200 million downloads in four years.[2] As of January 2008 eMusic has more than 400,000 subscribers up from 350,000 in November 2007 and 250,000 in the beginning of 2007.[3]
Despite the lack of major label content and capitalising on the economics of the long tail it was reported that the company consistently sells at least one copy of 67% of its inventory per quarter.[4]
In 2008 eMusic undertook a major upgrade of its site with integration of web 2.0 features such as Wikipedia and YouTube as well as enhancements such as interactive reviews.[5]
eMusic also begun an A&R program seeking to feature new unsigned artists on its site. The artists are required to sign a 60-day digital exclusive agreement and provide previously unreleased material.[6]
Further announcements were made with respect to the expansion of eMusic’s classical catalogue with around 27,000 classical labels now signed to sell music from the site.[7]
There was also a small increase in the subscription rates for basic members with new subscribers paying $US11.99 for 30 downloads per month and existing basic members $US11.99 per month for 40 downloads.[8]
In April 2008 eMusic was ranked as the third most popular download store in the United States with annual revenue of $US42 million.[9]
In September 2008 eMusic CEO David Pakman publicly questioned the arrangements that were negotiated between UK ISPs and the recording industry.[10] He noted that in the event that ISPs cooperated by sending warning letters to users for their file sharing behaviour in exchange for licensing deals with the content industry, that existing music stores such as eMusic may be disadvantaged.[11] ISPs could attempt to redirect traffic to their sites rather than maintain the neutrality of the internet and the even playing field that companies such as eMusic depend on.[12] To date two ISPs in the UK, Sky and BT, have announced licensing agreements with the recording industry.[13]
[1] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[2] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[3] Digital Music News, Holiday Offensive Pushes eMusic Past 400,000 Mark (28 December 20070 <http://www.digitalmusicnews.com/stories/122807emusic> at 11 January 2008
[4] ArsTechnica, eMusic making good money from back catalog (4 March 2008) <http://arstechnica.com/news.ars/post/20080304-emusic-making-good-money-from-back-catalog.html> at 6 March 2008
[5] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[6] Digital Music News, eMusic Starts Fishing for Talent, Dons A&R Cap (13 February 2008) <http://www.digitalmusicnews.com/stories/021208emusic> at 19 February 2008
[7] Digital Music News, eMusic Courts Classical Aficionados Once Again (23 January 2008) <http://www.digitalmusicnews.com/stories/012308emusic> at 30 January 2008
[8] Digital Music News, eMusic Raising Subscription Rates; Entry Level Affected (17 June 2008) <http://www.digitalmusicnews.com/stories/061608emusic> at 20 June 2008
[9] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[10] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[11] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[12] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008l Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[13] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
In August 2008 it was reported that the eMusic catalogue had surpassed 4 million tracks which are supplied by over 40,000 independent labels.[1] The site has served over 200 million downloads in four years.[2] As of January 2008 eMusic has more than 400,000 subscribers up from 350,000 in November 2007 and 250,000 in the beginning of 2007.[3]
Despite the lack of major label content and capitalising on the economics of the long tail it was reported that the company consistently sells at least one copy of 67% of its inventory per quarter.[4]
In 2008 eMusic undertook a major upgrade of its site with integration of web 2.0 features such as Wikipedia and YouTube as well as enhancements such as interactive reviews.[5]
eMusic also begun an A&R program seeking to feature new unsigned artists on its site. The artists are required to sign a 60-day digital exclusive agreement and provide previously unreleased material.[6]
Further announcements were made with respect to the expansion of eMusic’s classical catalogue with around 27,000 classical labels now signed to sell music from the site.[7]
There was also a small increase in the subscription rates for basic members with new subscribers paying $US11.99 for 30 downloads per month and existing basic members $US11.99 per month for 40 downloads.[8]
In April 2008 eMusic was ranked as the third most popular download store in the United States with annual revenue of $US42 million.[9]
In September 2008 eMusic CEO David Pakman publicly questioned the arrangements that were negotiated between UK ISPs and the recording industry.[10] He noted that in the event that ISPs cooperated by sending warning letters to users for their file sharing behaviour in exchange for licensing deals with the content industry, that existing music stores such as eMusic may be disadvantaged.[11] ISPs could attempt to redirect traffic to their sites rather than maintain the neutrality of the internet and the even playing field that companies such as eMusic depend on.[12] To date two ISPs in the UK, Sky and BT, have announced licensing agreements with the recording industry.[13]
[1] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[2] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[3] Digital Music News, Holiday Offensive Pushes eMusic Past 400,000 Mark (28 December 20070 <http://www.digitalmusicnews.com/stories/122807emusic> at 11 January 2008
[4] ArsTechnica, eMusic making good money from back catalog (4 March 2008) <http://arstechnica.com/news.ars/post/20080304-emusic-making-good-money-from-back-catalog.html> at 6 March 2008
[5] Digital Music News, So Independent: eMusic Catalog Crosses Four Million (5 August 2008) <http://www.digitalmusicnews.com/stories/080408emusic> at 7 August 2008
[6] Digital Music News, eMusic Starts Fishing for Talent, Dons A&R Cap (13 February 2008) <http://www.digitalmusicnews.com/stories/021208emusic> at 19 February 2008
[7] Digital Music News, eMusic Courts Classical Aficionados Once Again (23 January 2008) <http://www.digitalmusicnews.com/stories/012308emusic> at 30 January 2008
[8] Digital Music News, eMusic Raising Subscription Rates; Entry Level Affected (17 June 2008) <http://www.digitalmusicnews.com/stories/061608emusic> at 20 June 2008
[9] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[10] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[11] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[12] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008l Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
[13] ArsTechnica, eMusic: UK P2P warning letter pact "smells very funny to us" (4 September 2o08) <http://arstechnica.com/news.ars/post/20080904-emusic-uk-p2p-warning-letter-pact-smells-very-funny-to-us.html> at 12 September 2008; The Register, eMusic rattles ISPs over legal downloads (3 September 2008) <http://www.theregister.co.uk/2008/09/03/emusic_david_pakman_isps/> at 4 September 2008; Digital Music News, British Letter-Writing Deal Raises Competitive Concern... (4 September 2008) <http://www.digitalmusicnews.com/stories/090308emusic> at 4 September 2008
Monday, November 17, 2008
Year in Review: Education Campaigns
Education campaigns initiated in Australia in 2008 consisted of the launch of a ten minute video by MIPI highlighting the difficulties faced by musicians in Australia.[1] The film is to be distributed to high schools and contains a segment dealing with file sharing.[2] The majority of press coverage concerned the inclusion of Lindsay McDougall of Frenzal Rhomb who claimed that he was misquoted and would not have participated if he had know in was designed to discourage the trading of music over the internet.[3]
In the United States the National Centre for State Courts published a pamphlet which many suggested contained incorrect information in stating that file sharers would be held criminally responsible for their actions.[4]
Other notable examples at attempts to educate students in the United States regarding their responsibilities for file sharing included the creation of a compulsory six question quiz for students to get file sharing access at Missouri University of Science and Technology on a times basis.[5] The scheme requires students to get all questions correct before being allocated six hours access to file sharing networks.[6]
The University of Michigan developed the BAYU system – Be Aware You Are Uploading.[7] Students are notified via email each time it is detected that they are uploading as away to discourage participation in file sharing networks and to raise awareness of the potential liability from doing so.[8] The system was open sourced and made available to other universities with at least one – Northwestern University – also implementing the email notification system.[9]
In the UK Virgin Media agreed to participate in a letter writing campaign at the request of BPI in which users were sent letters advising that they had been monitored participating in file sharing activity, providing details as to potential liability and alternative legal sources of music.[10]
The Green Party of Europe also released a video criticising the content industry and main stream media for treating file sharing as a form of theft and characterising every day citizens as criminals.[11]
The charity Childnet also began an education campaign with pamphlets to be distributed to 21 countries to help raise awareness of file sharing implications.[12]
[1] Australian Music: In Tune (April 2008) <http://www.in-tune.com.au/> at 29 April 2008
[2] The Age, Please don't rip off our music (29 April 2008) <http://www.theage.com.au/articles/2008/04/29/1209234824947.html> at 29 April 2008
[3] TechDirt, Musician Claims He Was Tricked Into Appearing In Anti-Piracy Video (1 May 2008) <http://www.techdirt.com/articles/20080501/035740998.shtml> at 2 May 2008; Sydney Morning Herald, Musician 'duped' into anti-piracy video (1 May 2008) <http://www.smh.com.au/articles/2008/04/30/1209234943373.html> at 2 May 2008
[4] TechDirt, Totally False Propaganda About File Sharing Being Given To Students As Educational Material (22 August 2008) <http://www.techdirt.com/articles/20080822/0233162059.shtml> at 25 August 2008; ZeroPaid, RIAA Comic Tries to Scare Kids, Says They Face Years In Jail (21 August 2008) <http://www.zeropaid.com/news/9709/RIAA+Comic+Tries+to+Scare+Kids%2C+Says+they+Face+Years+in+Jail> at 22 August 2008
[5] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008; ZeroPaid, College Allows File-Sharing for Student Who Ace Copyright Law Test (19 May 2008) <http://www.zeropaid.com/news/9503/College+Allows+File-Sharing+for+Students+Who+Ace+Copyright+Law+Test> at 21 May 2008; TechDirt, University Makes Students Take Copyright Quiz To Get Timed Access To P2P (16 May 2008) <http://www.techdirt.com/articles/20080515/1907211130.shtml> at 21 May 2008
[6] Associated Press, Copyright quiz limits students' music file sharing (5 June 2008) <http://ap.google.com/article/ALeqM5jCWtRbLKE-7NlcLKQok2RQVSTgvgD913E9880> at 5 June 2008; ZeroPaid, College Allows File-Sharing for Student Who Ace Copyright Law Test (19 May 2008) <http://www.zeropaid.com/news/9503/College+Allows+File-Sharing+for+Students+Who+Ace+Copyright+Law+Test> at 21 May 2008; TechDirt, University Makes Students Take Copyright Quiz To Get Timed Access To P2P (16 May 2008) <http://www.techdirt.com/articles/20080515/1907211130.shtml> at 21 May 2008
[7] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008
[8] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008
[9] ArsTechnica, Northwestern fighting campus P2P use with... e-mail? (27 August 2008) <http://arstechnica.com/index.ars> at 28 August 2008
[10] ZeroPaid, UK ISP, Record Industry Join Forces to Fight Illegal File Sharing (11 June 2008) <http://www.zeropaid.com/news/9545/UK+ISP%2C+Record+Industry+Join+Forces+to+Fight+Illegal+File-Sharing> at 13 June 2008
[11] ZeroPaid, Green Party of Europe creates new video supporting file sharing (22 January 2008) <http://www.zeropaid.com/news/9210/Green+Party+of+Europe+Creates+New+Video+Supporting+File-Sharing> at 30 January 2008
[12] BBC News, Charity advice on music downloads (30 April 2008) <http://news.bbc.co.uk/2/hi/technology/7375621.stm> at 3 May 2008; TechDirt, Recording Industry Funds Charity To Run Its Latest Brainwashing Program (2 May 2008) <http://www.techdirt.com/articles/20080430/090922985.shtml> at 3 May 2008
In the United States the National Centre for State Courts published a pamphlet which many suggested contained incorrect information in stating that file sharers would be held criminally responsible for their actions.[4]
Other notable examples at attempts to educate students in the United States regarding their responsibilities for file sharing included the creation of a compulsory six question quiz for students to get file sharing access at Missouri University of Science and Technology on a times basis.[5] The scheme requires students to get all questions correct before being allocated six hours access to file sharing networks.[6]
The University of Michigan developed the BAYU system – Be Aware You Are Uploading.[7] Students are notified via email each time it is detected that they are uploading as away to discourage participation in file sharing networks and to raise awareness of the potential liability from doing so.[8] The system was open sourced and made available to other universities with at least one – Northwestern University – also implementing the email notification system.[9]
In the UK Virgin Media agreed to participate in a letter writing campaign at the request of BPI in which users were sent letters advising that they had been monitored participating in file sharing activity, providing details as to potential liability and alternative legal sources of music.[10]
The Green Party of Europe also released a video criticising the content industry and main stream media for treating file sharing as a form of theft and characterising every day citizens as criminals.[11]
The charity Childnet also began an education campaign with pamphlets to be distributed to 21 countries to help raise awareness of file sharing implications.[12]
[1] Australian Music: In Tune (April 2008) <http://www.in-tune.com.au/> at 29 April 2008
[2] The Age, Please don't rip off our music (29 April 2008) <http://www.theage.com.au/articles/2008/04/29/1209234824947.html> at 29 April 2008
[3] TechDirt, Musician Claims He Was Tricked Into Appearing In Anti-Piracy Video (1 May 2008) <http://www.techdirt.com/articles/20080501/035740998.shtml> at 2 May 2008; Sydney Morning Herald, Musician 'duped' into anti-piracy video (1 May 2008) <http://www.smh.com.au/articles/2008/04/30/1209234943373.html> at 2 May 2008
[4] TechDirt, Totally False Propaganda About File Sharing Being Given To Students As Educational Material (22 August 2008) <http://www.techdirt.com/articles/20080822/0233162059.shtml> at 25 August 2008; ZeroPaid, RIAA Comic Tries to Scare Kids, Says They Face Years In Jail (21 August 2008) <http://www.zeropaid.com/news/9709/RIAA+Comic+Tries+to+Scare+Kids%2C+Says+they+Face+Years+in+Jail> at 22 August 2008
[5] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008; ZeroPaid, College Allows File-Sharing for Student Who Ace Copyright Law Test (19 May 2008) <http://www.zeropaid.com/news/9503/College+Allows+File-Sharing+for+Students+Who+Ace+Copyright+Law+Test> at 21 May 2008; TechDirt, University Makes Students Take Copyright Quiz To Get Timed Access To P2P (16 May 2008) <http://www.techdirt.com/articles/20080515/1907211130.shtml> at 21 May 2008
[6] Associated Press, Copyright quiz limits students' music file sharing (5 June 2008) <http://ap.google.com/article/ALeqM5jCWtRbLKE-7NlcLKQok2RQVSTgvgD913E9880> at 5 June 2008; ZeroPaid, College Allows File-Sharing for Student Who Ace Copyright Law Test (19 May 2008) <http://www.zeropaid.com/news/9503/College+Allows+File-Sharing+for+Students+Who+Ace+Copyright+Law+Test> at 21 May 2008; TechDirt, University Makes Students Take Copyright Quiz To Get Timed Access To P2P (16 May 2008) <http://www.techdirt.com/articles/20080515/1907211130.shtml> at 21 May 2008
[7] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008
[8] ArsTechnica, RIAA v. U: the state of P2P file sharing on campus (26 August 2008) <http://arstechnica.com/articles/culture/raa-v-u-on-campus.ars/2> at 28 August 2008
[9] ArsTechnica, Northwestern fighting campus P2P use with... e-mail? (27 August 2008) <http://arstechnica.com/index.ars> at 28 August 2008
[10] ZeroPaid, UK ISP, Record Industry Join Forces to Fight Illegal File Sharing (11 June 2008) <http://www.zeropaid.com/news/9545/UK+ISP%2C+Record+Industry+Join+Forces+to+Fight+Illegal+File-Sharing> at 13 June 2008
[11] ZeroPaid, Green Party of Europe creates new video supporting file sharing (22 January 2008) <http://www.zeropaid.com/news/9210/Green+Party+of+Europe+Creates+New+Video+Supporting+File-Sharing> at 30 January 2008
[12] BBC News, Charity advice on music downloads (30 April 2008) <http://news.bbc.co.uk/2/hi/technology/7375621.stm> at 3 May 2008; TechDirt, Recording Industry Funds Charity To Run Its Latest Brainwashing Program (2 May 2008) <http://www.techdirt.com/articles/20080430/090922985.shtml> at 3 May 2008
Year in Review: DRM
There were major changes to the digital eco system with respect to the use of digital rights management technology in 2008. A number of stores migrated to mp3s and stopped using DRM leaving consumers of music in a precarious situation. Other forms of digital delivery emerged which use DRM and there was further discussion regarding the implications of the use of this technology.
Migration Away from DRM
A number of existing digital music stores negotiated with the record labels to allow consumers to purchase songs without DRM. iTunes was successful in transitioning away from the technology with respect to tracks from EMI and some independent artists.[1] Similarly WalMart and Yahoo were able to negotiate the right to sell music without DRM protection.[2] In the UK 7digital and Tesco also moved away from the use of DRM while the new classical site Passionato launched without the use of DRM.[3] New stores such as Amazon, Rhapsody (paid downloads), Napster (paid downloads), Limewire and Hot Topics also launched without using protected music.[4] Streaming services such as LaLa and Imeem also recognised consumer preferences for unprotected songs.[5] The new physical form of SlotMusic also entered the market without DRM protection for tracks.[6]
The Place of Consumers
In the process of transitioning away from the use of DRM on music three stores initially announced that in doing so they would remove the support for consumers that had already purchased protected music. This would have meant that existing customers would be unable to reauthorise the use of their music on new computers. In the face of public outcry MSN Music announced that its servers would remain online until 2011, Yahoo issued vouchers to existing users to enable them to replace the music they had purchased with equivalent tracks, while WalMart agreed to maintain its servers but failed to specify how long this would remain.[7]
New Services Using DRM
A number of new services were launched which retained the use of DRM.[8] This included QTrax, an ad supported closed peer to peer network that limits the use of music through the use of this DRM and employs embedded watermarks for the purposes of tracking downloads and remunerating artists.[9] TDC also launched a streaming service in Denmark with uses DRM to ensure that music is not shared without permission.[10]
Other Developments
Snocap, the business commenced by Shawn Fanning the developer of the original Napster, was sold to Imeem but largely failed in its attempt to introduce DRM technology in the file sharing environment that would enable the tracking of songs and distribution of funds to artists.[11]
A new form of DRM was deployed for use in Australian Indigenous communities which determines the personal information of computer users for the purposes of restricting access to cultural works that are considered inappropriate based on the sex, age and role within the cultural boundaries of those communities.[12]
Legal Issues
Concern for consumer protection remained high in Norway where, after 2 years of negotiations, it was determined that the limitations imposed by iTunes are worthy of litigation with the Norwegian Consumer Ombudsman announcing that it would run a test case to argue that the inability of consumers to use iTunes tracks on non iPod mp3 players is unfair.[13]
The Canadian Privacy Commissioner also lobbied against the introduction of laws supporting DRM that enables the tracking of personal information.[14]
[1] Digital Music News, iTunes DRM-Free Licensing Moves Continue, PIAS Latest (22 January 2008) <http://www.digitalmusicnews.com/stories/012009pias> at 30 January 2008
[2] Digital Music News, Warner Music, Wal-Mart Work It Out... MP3s Online (7 May 2008) <http://www.digitalmusicnews.com/stories/050708warner> at 10 May 2008; TechDirt, Wal-Mart Ditches DRM... And Lots Of Major Label Music With It (8 April 2008) <http://www.techdirt.com/articles/20080408/003857784.shtml> at 13 April 2008; Digital Music News, Wal-Mart Reaffirms Commitment to MP3s; Standoff Continues (7 April 2008) <http://www.digitalmusicnews.com/stories/040608walmart> at 8 April 2008; Digital Music News, Developing: Sony BMG, Warner Music Downloads Missing at Wal-Mart (4 April 2008) <http://www.digitalmusicnews.com/stories/040308wal-mart> at 8 April 2008; Digital Music News, Yahoo Negotiating DRM-Free, Retreading Music Strategy (23 January 2008) <http://www.digitalmusicnews.com/stories/012308yahoo> at 30 January 2008
[3] Digital Music News, More MP3s In Britain: 7digital Goes Full Circle (17 September 2008) <http://www.digitalmusicnews.com/stories/091608seven> at 21 September 2008 ; Digital Music News, Warner Goes DRM-Free In Europe; Licenses 7digital (3 March 2008) <http://www.digitalmusicnews.com/stories/030308digital> at 5 March 2008 ; Guardian.co.uk, 7digital first to sign up big four to unrestricted MP3 (17 September 20080 <http://www.guardian.co.uk/music/2008/sep/17/netmusic> at 21 September 2008; Digital Music News, DRM-Free Dealmaking Continues; Tesco Inks WMG (16 September 2008) <http://www.digitalmusicnews.com/stories/091508tesco> at 21 September 2008; Digital Music News, MP3 Fever Spreads: Tesco Latest to Dump DRM (16 April 2008) <http://www.digitalmusicnews.com/stories/041508tesco> at 17 April 2008; The Register, Classical downloads service hits right note on DRM (11 September 2008) <http://www.reghardware.co.uk/2008/09/11/passionato_launches_drm_free_downloads/> at 21 September 2008
[4]The Register, Amazon to take MP3 downloads international (28 January 2008) <http://www.reghardware.co.uk/2008/01/28/amazon_mp3_rollout_this_year/> at 30 January 2008; The Register, DRM now dead, as Amazon snags Sony (11 January 20080 <http://www.theregister.co.uk/2008/01/11/amazon_sony_music_drm_now_dead/> at 20 January 2008 ; Digital Music News, It's Official: Sony BMG Delivers MP3s to Amazon (10 January 2008) <http://www.digitalmusicnews.com/stories/011008sony> at 20 January 2008 ; CNet News, Hot Topic launches DRM-free music service (29 October 2008) <http://news.cnet.com/8301-17939_109-10078414-2.html> at 31 October 2008; ZeroPaid, Rhapsody Opens DRM Free Music Store (1 July 2008) <http://www.zeropaid.com/news/9599/Rhapsody+Opens+DRM-Free+Music+Store> at 4 July 2008; ZeroPaid, Napster Comes Full Circle, Launches DRM-Free mp3 Store (22 May 2008) <http://www.zeropaid.com/news/9509/Napster+Comes+Full+Circle%2C+Launches+DRM-Free+MP3+Store> at 5 June 2008; Digital Music News, Resnikoff's Parting Shot: Putting Napster's MP3s Into Perspective (15 May 2008) <http://www.digitalmusicnews.com/stories/052008parting> at 21 May 2008; Digital Music News, Napster Gets It Done: MP3s For Everyone (19 May 2008) <http://www.digitalmusicnews.com/stories/052008napster> at 21 May 2008; Billboard.biz, Napster Goes DRM-Free (20 May 2008) <http://www.billboard.biz/bbbiz/content_display/industry/e3i9189f73c48e7dd51669d4bee4dc1d1b1> at 21 May 2008; Digital Music News, The DRM-Free Drag... Why a Broader Rollout Remains Elusive (2 April 2008) <http://www.digitalmusicnews.com/stories/040208drm/> at 8 April 2008; Digital Music News, LimeWire Store Starts Bearing Fruit; DRM-Free Catalog Appears (19 March 2008) <http://www.digitalmusicnews.com/stories/031808limewire> at 23 March 2008
[5] EFF Deeplinks, DRM for Streaming Music Dies a Quiet Death (15 August 2008) <http://www.eff.org/deeplinks/2008/08/drm-quietly-dies-streaming-music> at 25 August 2008; ArsTechnica, Evolution of DRM: streaming services use unencrypted MP3s (18 August 2008) <http://arstechnica.com/news.ars/post/20080818-streaming-media-services-skip-the-drm.html> at 22 August 2008
[6] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[7] Technologizer, 25 Arguments for the Elimination of Copy Protection (13 October 2008) <http://technologizer.com/2008/10/13/copy-protection/> at 20 October 2008; TechDirt, Microsoft Keeps DRM Servers Alive For Now; Won't Screw Over Own Customers For A Few More Years (19 June 2008) <http://www.techdirt.com/articles/20080619/0907281455.shtml> at 26 June 2008 ; Digital Music News, Microsoft: We'll Support Your Downloads After All (17 June 2008) <http://www.digitalmusicnews.com/stories/061808msft> at 20 June 2008; EFF Deeplinks, MSN Music Debacle Highlights EULA Dangers (5 May 2008) <http://www.eff.org/deeplinks/2008/05/msn-music-debacle-highlights-eula-dangers> at 8 May 2008; ArsTechnica, DRM sucks redux: Microsoft to nuke MSN Music DRM keys (22 April 2008) <http://arstechnica.com/news.ars/post/20080422-drm-sucks-redux-microsoft-to-nuke-msn-music-drm-keys.html> at 27 April 2008; Digital Music News, MSN Music: The DRM Aftertaste Really Lasts... (24 April 2008) <http://www.digitalmusicnews.com/stories/042308msn> at 26 April 2008; Digital Music News, Microsoft's Final 'Up Yours' To Those Who Bought Into Its DRM Story (23 April 2008) <http://www.techdirt.com/articles/20080422/234401923.shtml> at 26 April 2008; Digital Music News, Yahoo Music Makes Good; Offers DRM-Free Replacements, Refunds (31 July 2008) <http://www.digitalmusicnews.com/stories/073008yahoo> at 7 August 2008; SiliconValley/Associated Press, Yahoo offers coupons for songs that stop working when it shuts download service (30 July 2008) <http://www.siliconvalley.com/news/ci_10044573?nclick_check=1> at 6 August 2008; TechDirt, Yahoo Offers Refunds Or DRM-Free Music In Exchange For Shutting Down DRM Servers (29 July 2008) <http://www.techdirt.com/articles/20080728/1455551813.shtml> at 31 July 2008; CNet News, EFF: Yahoo Music should compensate customers (24 July 2008) <http://news.cnet.com/8301-1023_3-9999244-93.html> at 28 July 2008; EFF Deeplinks, Here We Go Again: Yahoo! Music Throws Away the DRM Keys (24 July 2008) <http://www.eff.org/deeplinks/2008/07/here-we-go-again-yahoo-music-throws-away-drm-keys> at 28 July 2008; Digital Music News, About Those Yahoo Music Unlimited Downloads You Bought... (25 July 2008) <http://www.digitalmusicnews.com/stories/072408yahoo> at 28 July 2008; TechDirt, Did Yahoo Not Pay Attention To What Happened When Microsoft Pulled The Plug On Its DRM Server? (24 July 2008) <http://www.techdirt.com/articles/20080724/0341381775.shtml> at 28 July 2008; ArsTechnica, DRM still sucks: Yahoo Music going dark, taking keys with it (24 July 2008) <http://arstechnica.com/news.ars/post/20080724-drm-still-sucks-yahoo-music-going-dark-taking-keys-with-it.html> at 25 July 2008; ArsTechnica, Wal-Mart joins MSN and Yahoo, leaves DRM servers online (10 October 2008) <http://arstechnica.com/news.ars/post/20081010-wal-mart-joins-msn-and-yahoo-leaves-drm-key-servers-online.html> at 12 October 2008; TechDirt, Surprise, Surprise: WalMart Changes Its Mind, Keeps DRM Servers Running (For Now) (10 October 2008) <http://www.techdirt.com/articles/20081010/0020522511.shtml> at 12 October 2008; EFF Deeplinks, And Walmart Makes Three: Another Music Service Plans to Shut Down DRM Support (28 September 2008) <http://www.eff.org/deeplinks/2008/09/and-walmart-makes-three-another-music-service-plan> at 5 October 2008; Digital Music News, Wal-Mart Moves On; Ditches Support on DRM Downloads (30 September 2008) <http://www.digitalmusicnews.com/stories/092908walmart> at 5 October 2008; ZeroPaid, Another DRM Music Store Scheme Bites the Dust - WalMart Shuts Off DRMd Music (1 October 2008) <http://www.zeropaid.com/news/9780/Another+DRM+Music+Store+Scheme+Bites+the+Dust+-+Wal-Mart+Shuts+Off+DRMed+Music> at 5 October 2008; TechDirt, Reason #9,358 For Not Buying DRM'd Music: Wal-Mart Shuts Down DRM Servers (29 September 2008) <http://www.techdirt.com/articles/20080929/0004132388.shtml> at 5 October 2008
[8] ArsTechnica, If music DRM is dead, the RIAA expects its resurrection (8 May 2008) <http://arstechnica.com/news.ars/post/20080508-if-music-drm-is-dead-the-riaa-expects-its-resurrection.html> at 10 May 2008; TechDirt, RIAA, MPAA In Denial About The Death Of DRM (8 May 2008) <http://www.techdirt.com/articles/20080508/1414361067.shtml> at 10 May 2008
[9] Wired, Qtrax Licenses Universal Music Group International (14 October 2008) <http://blog.wired.com/music/2008/10/qtrax-licenses.html> at 15 October 2008; Wired Listening Post, Qtrax Inks Deal With Universal for Legal P2P Music (6 May 2008) <http://blog.wired.com/music/2008/05/qtrax-inks-deal.html> at 7 May 2008; TechDirt, Yet Another Report Of Free Label Music That Isn't (28 January 2008) <http://www.techdirt.com/articles/20080128/02035986.shtml> at 30 January 2008
[10] Digital Music News, TLC for TDC? Why a Danish Model Is Getting So Much Attention (20 October 2008) <http://www.digitalmusicnews.com/stories/101708tdc> at 21 October 2008; TechDirt, Danish ISP Latest To Offer Crippled DRM-Infested Music Subscription Service (1 April 2008) <http://www.techdirt.com/articles/20080401/104543715.shtml> at 3 April 2008
[11] Digital Music News, Right idea, wrong time: Snocap's corpse washes up at Imeem (7 April 2008) <http://www.theregister.co.uk/2008/04/07/imeem_acquires_snocap/> at 8 April 2008
[12] BBC News, Aboriginal archive offers new DRM (29 January 2008) <http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/technology/7214240.stm> at 31 January 2008
[13] Technologizer, 25 Arguments for the Elimination of Copy Protection (13 October 2008) <http://technologizer.com/2008/10/13/copy-protection/> at 20 October 2008; WashingtonPost/Reuters, Norway consumer body challenges Apple over iTunes (1 October 2008) <http://www.washingtonpost.com/wp-dyn/content/article/2008/10/01/AR2008100101183.html> at 5 October 2008; Digital Music News, Norway Starts Sticking It to iPod+iTunes... (30 October 2008) <http://www.digitalmusicnews.com/stories/092908norway> at 5 October 2008; TechDirt, Norway To Move Forward In Trying To Force Apple To Open Up iTunes (30 September 2008) <http://www.techdirt.com/articles/20080929/1902222408.shtml> at 5 October 2008
[14] ArsTechnia, Canadian Privacy Commissioner: Just say no to intrusive DRM (20 January 2008) <http://arstechnica.com/news.ars/post/20080120-canadian-privacy-commissioner-just-say-no-to-intrusive-drm.html> at 31 January 2008
Migration Away from DRM
A number of existing digital music stores negotiated with the record labels to allow consumers to purchase songs without DRM. iTunes was successful in transitioning away from the technology with respect to tracks from EMI and some independent artists.[1] Similarly WalMart and Yahoo were able to negotiate the right to sell music without DRM protection.[2] In the UK 7digital and Tesco also moved away from the use of DRM while the new classical site Passionato launched without the use of DRM.[3] New stores such as Amazon, Rhapsody (paid downloads), Napster (paid downloads), Limewire and Hot Topics also launched without using protected music.[4] Streaming services such as LaLa and Imeem also recognised consumer preferences for unprotected songs.[5] The new physical form of SlotMusic also entered the market without DRM protection for tracks.[6]
The Place of Consumers
In the process of transitioning away from the use of DRM on music three stores initially announced that in doing so they would remove the support for consumers that had already purchased protected music. This would have meant that existing customers would be unable to reauthorise the use of their music on new computers. In the face of public outcry MSN Music announced that its servers would remain online until 2011, Yahoo issued vouchers to existing users to enable them to replace the music they had purchased with equivalent tracks, while WalMart agreed to maintain its servers but failed to specify how long this would remain.[7]
New Services Using DRM
A number of new services were launched which retained the use of DRM.[8] This included QTrax, an ad supported closed peer to peer network that limits the use of music through the use of this DRM and employs embedded watermarks for the purposes of tracking downloads and remunerating artists.[9] TDC also launched a streaming service in Denmark with uses DRM to ensure that music is not shared without permission.[10]
Other Developments
Snocap, the business commenced by Shawn Fanning the developer of the original Napster, was sold to Imeem but largely failed in its attempt to introduce DRM technology in the file sharing environment that would enable the tracking of songs and distribution of funds to artists.[11]
A new form of DRM was deployed for use in Australian Indigenous communities which determines the personal information of computer users for the purposes of restricting access to cultural works that are considered inappropriate based on the sex, age and role within the cultural boundaries of those communities.[12]
Legal Issues
Concern for consumer protection remained high in Norway where, after 2 years of negotiations, it was determined that the limitations imposed by iTunes are worthy of litigation with the Norwegian Consumer Ombudsman announcing that it would run a test case to argue that the inability of consumers to use iTunes tracks on non iPod mp3 players is unfair.[13]
The Canadian Privacy Commissioner also lobbied against the introduction of laws supporting DRM that enables the tracking of personal information.[14]
[1] Digital Music News, iTunes DRM-Free Licensing Moves Continue, PIAS Latest (22 January 2008) <http://www.digitalmusicnews.com/stories/012009pias> at 30 January 2008
[2] Digital Music News, Warner Music, Wal-Mart Work It Out... MP3s Online (7 May 2008) <http://www.digitalmusicnews.com/stories/050708warner> at 10 May 2008; TechDirt, Wal-Mart Ditches DRM... And Lots Of Major Label Music With It (8 April 2008) <http://www.techdirt.com/articles/20080408/003857784.shtml> at 13 April 2008; Digital Music News, Wal-Mart Reaffirms Commitment to MP3s; Standoff Continues (7 April 2008) <http://www.digitalmusicnews.com/stories/040608walmart> at 8 April 2008; Digital Music News, Developing: Sony BMG, Warner Music Downloads Missing at Wal-Mart (4 April 2008) <http://www.digitalmusicnews.com/stories/040308wal-mart> at 8 April 2008; Digital Music News, Yahoo Negotiating DRM-Free, Retreading Music Strategy (23 January 2008) <http://www.digitalmusicnews.com/stories/012308yahoo> at 30 January 2008
[3] Digital Music News, More MP3s In Britain: 7digital Goes Full Circle (17 September 2008) <http://www.digitalmusicnews.com/stories/091608seven> at 21 September 2008 ; Digital Music News, Warner Goes DRM-Free In Europe; Licenses 7digital (3 March 2008) <http://www.digitalmusicnews.com/stories/030308digital> at 5 March 2008 ; Guardian.co.uk, 7digital first to sign up big four to unrestricted MP3 (17 September 20080 <http://www.guardian.co.uk/music/2008/sep/17/netmusic> at 21 September 2008; Digital Music News, DRM-Free Dealmaking Continues; Tesco Inks WMG (16 September 2008) <http://www.digitalmusicnews.com/stories/091508tesco> at 21 September 2008; Digital Music News, MP3 Fever Spreads: Tesco Latest to Dump DRM (16 April 2008) <http://www.digitalmusicnews.com/stories/041508tesco> at 17 April 2008; The Register, Classical downloads service hits right note on DRM (11 September 2008) <http://www.reghardware.co.uk/2008/09/11/passionato_launches_drm_free_downloads/> at 21 September 2008
[4]The Register, Amazon to take MP3 downloads international (28 January 2008) <http://www.reghardware.co.uk/2008/01/28/amazon_mp3_rollout_this_year/> at 30 January 2008; The Register, DRM now dead, as Amazon snags Sony (11 January 20080 <http://www.theregister.co.uk/2008/01/11/amazon_sony_music_drm_now_dead/> at 20 January 2008 ; Digital Music News, It's Official: Sony BMG Delivers MP3s to Amazon (10 January 2008) <http://www.digitalmusicnews.com/stories/011008sony> at 20 January 2008 ; CNet News, Hot Topic launches DRM-free music service (29 October 2008) <http://news.cnet.com/8301-17939_109-10078414-2.html> at 31 October 2008; ZeroPaid, Rhapsody Opens DRM Free Music Store (1 July 2008) <http://www.zeropaid.com/news/9599/Rhapsody+Opens+DRM-Free+Music+Store> at 4 July 2008; ZeroPaid, Napster Comes Full Circle, Launches DRM-Free mp3 Store (22 May 2008) <http://www.zeropaid.com/news/9509/Napster+Comes+Full+Circle%2C+Launches+DRM-Free+MP3+Store> at 5 June 2008; Digital Music News, Resnikoff's Parting Shot: Putting Napster's MP3s Into Perspective (15 May 2008) <http://www.digitalmusicnews.com/stories/052008parting> at 21 May 2008; Digital Music News, Napster Gets It Done: MP3s For Everyone (19 May 2008) <http://www.digitalmusicnews.com/stories/052008napster> at 21 May 2008; Billboard.biz, Napster Goes DRM-Free (20 May 2008) <http://www.billboard.biz/bbbiz/content_display/industry/e3i9189f73c48e7dd51669d4bee4dc1d1b1> at 21 May 2008; Digital Music News, The DRM-Free Drag... Why a Broader Rollout Remains Elusive (2 April 2008) <http://www.digitalmusicnews.com/stories/040208drm/> at 8 April 2008; Digital Music News, LimeWire Store Starts Bearing Fruit; DRM-Free Catalog Appears (19 March 2008) <http://www.digitalmusicnews.com/stories/031808limewire> at 23 March 2008
[5] EFF Deeplinks, DRM for Streaming Music Dies a Quiet Death (15 August 2008) <http://www.eff.org/deeplinks/2008/08/drm-quietly-dies-streaming-music> at 25 August 2008; ArsTechnica, Evolution of DRM: streaming services use unencrypted MP3s (18 August 2008) <http://arstechnica.com/news.ars/post/20080818-streaming-media-services-skip-the-drm.html> at 22 August 2008
[6] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[7] Technologizer, 25 Arguments for the Elimination of Copy Protection (13 October 2008) <http://technologizer.com/2008/10/13/copy-protection/> at 20 October 2008; TechDirt, Microsoft Keeps DRM Servers Alive For Now; Won't Screw Over Own Customers For A Few More Years (19 June 2008) <http://www.techdirt.com/articles/20080619/0907281455.shtml> at 26 June 2008 ; Digital Music News, Microsoft: We'll Support Your Downloads After All (17 June 2008) <http://www.digitalmusicnews.com/stories/061808msft> at 20 June 2008; EFF Deeplinks, MSN Music Debacle Highlights EULA Dangers (5 May 2008) <http://www.eff.org/deeplinks/2008/05/msn-music-debacle-highlights-eula-dangers> at 8 May 2008; ArsTechnica, DRM sucks redux: Microsoft to nuke MSN Music DRM keys (22 April 2008) <http://arstechnica.com/news.ars/post/20080422-drm-sucks-redux-microsoft-to-nuke-msn-music-drm-keys.html> at 27 April 2008; Digital Music News, MSN Music: The DRM Aftertaste Really Lasts... (24 April 2008) <http://www.digitalmusicnews.com/stories/042308msn> at 26 April 2008; Digital Music News, Microsoft's Final 'Up Yours' To Those Who Bought Into Its DRM Story (23 April 2008) <http://www.techdirt.com/articles/20080422/234401923.shtml> at 26 April 2008; Digital Music News, Yahoo Music Makes Good; Offers DRM-Free Replacements, Refunds (31 July 2008) <http://www.digitalmusicnews.com/stories/073008yahoo> at 7 August 2008; SiliconValley/Associated Press, Yahoo offers coupons for songs that stop working when it shuts download service (30 July 2008) <http://www.siliconvalley.com/news/ci_10044573?nclick_check=1> at 6 August 2008; TechDirt, Yahoo Offers Refunds Or DRM-Free Music In Exchange For Shutting Down DRM Servers (29 July 2008) <http://www.techdirt.com/articles/20080728/1455551813.shtml> at 31 July 2008; CNet News, EFF: Yahoo Music should compensate customers (24 July 2008) <http://news.cnet.com/8301-1023_3-9999244-93.html> at 28 July 2008; EFF Deeplinks, Here We Go Again: Yahoo! Music Throws Away the DRM Keys (24 July 2008) <http://www.eff.org/deeplinks/2008/07/here-we-go-again-yahoo-music-throws-away-drm-keys> at 28 July 2008; Digital Music News, About Those Yahoo Music Unlimited Downloads You Bought... (25 July 2008) <http://www.digitalmusicnews.com/stories/072408yahoo> at 28 July 2008; TechDirt, Did Yahoo Not Pay Attention To What Happened When Microsoft Pulled The Plug On Its DRM Server? (24 July 2008) <http://www.techdirt.com/articles/20080724/0341381775.shtml> at 28 July 2008; ArsTechnica, DRM still sucks: Yahoo Music going dark, taking keys with it (24 July 2008) <http://arstechnica.com/news.ars/post/20080724-drm-still-sucks-yahoo-music-going-dark-taking-keys-with-it.html> at 25 July 2008; ArsTechnica, Wal-Mart joins MSN and Yahoo, leaves DRM servers online (10 October 2008) <http://arstechnica.com/news.ars/post/20081010-wal-mart-joins-msn-and-yahoo-leaves-drm-key-servers-online.html> at 12 October 2008; TechDirt, Surprise, Surprise: WalMart Changes Its Mind, Keeps DRM Servers Running (For Now) (10 October 2008) <http://www.techdirt.com/articles/20081010/0020522511.shtml> at 12 October 2008; EFF Deeplinks, And Walmart Makes Three: Another Music Service Plans to Shut Down DRM Support (28 September 2008) <http://www.eff.org/deeplinks/2008/09/and-walmart-makes-three-another-music-service-plan> at 5 October 2008; Digital Music News, Wal-Mart Moves On; Ditches Support on DRM Downloads (30 September 2008) <http://www.digitalmusicnews.com/stories/092908walmart> at 5 October 2008; ZeroPaid, Another DRM Music Store Scheme Bites the Dust - WalMart Shuts Off DRMd Music (1 October 2008) <http://www.zeropaid.com/news/9780/Another+DRM+Music+Store+Scheme+Bites+the+Dust+-+Wal-Mart+Shuts+Off+DRMed+Music> at 5 October 2008; TechDirt, Reason #9,358 For Not Buying DRM'd Music: Wal-Mart Shuts Down DRM Servers (29 September 2008) <http://www.techdirt.com/articles/20080929/0004132388.shtml> at 5 October 2008
[8] ArsTechnica, If music DRM is dead, the RIAA expects its resurrection (8 May 2008) <http://arstechnica.com/news.ars/post/20080508-if-music-drm-is-dead-the-riaa-expects-its-resurrection.html> at 10 May 2008; TechDirt, RIAA, MPAA In Denial About The Death Of DRM (8 May 2008) <http://www.techdirt.com/articles/20080508/1414361067.shtml> at 10 May 2008
[9] Wired, Qtrax Licenses Universal Music Group International (14 October 2008) <http://blog.wired.com/music/2008/10/qtrax-licenses.html> at 15 October 2008; Wired Listening Post, Qtrax Inks Deal With Universal for Legal P2P Music (6 May 2008) <http://blog.wired.com/music/2008/05/qtrax-inks-deal.html> at 7 May 2008; TechDirt, Yet Another Report Of Free Label Music That Isn't (28 January 2008) <http://www.techdirt.com/articles/20080128/02035986.shtml> at 30 January 2008
[10] Digital Music News, TLC for TDC? Why a Danish Model Is Getting So Much Attention (20 October 2008) <http://www.digitalmusicnews.com/stories/101708tdc> at 21 October 2008; TechDirt, Danish ISP Latest To Offer Crippled DRM-Infested Music Subscription Service (1 April 2008) <http://www.techdirt.com/articles/20080401/104543715.shtml> at 3 April 2008
[11] Digital Music News, Right idea, wrong time: Snocap's corpse washes up at Imeem (7 April 2008) <http://www.theregister.co.uk/2008/04/07/imeem_acquires_snocap/> at 8 April 2008
[12] BBC News, Aboriginal archive offers new DRM (29 January 2008) <http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/technology/7214240.stm> at 31 January 2008
[13] Technologizer, 25 Arguments for the Elimination of Copy Protection (13 October 2008) <http://technologizer.com/2008/10/13/copy-protection/> at 20 October 2008; WashingtonPost/Reuters, Norway consumer body challenges Apple over iTunes (1 October 2008) <http://www.washingtonpost.com/wp-dyn/content/article/2008/10/01/AR2008100101183.html> at 5 October 2008; Digital Music News, Norway Starts Sticking It to iPod+iTunes... (30 October 2008) <http://www.digitalmusicnews.com/stories/092908norway> at 5 October 2008; TechDirt, Norway To Move Forward In Trying To Force Apple To Open Up iTunes (30 September 2008) <http://www.techdirt.com/articles/20080929/1902222408.shtml> at 5 October 2008
[14] ArsTechnia, Canadian Privacy Commissioner: Just say no to intrusive DRM (20 January 2008) <http://arstechnica.com/news.ars/post/20080120-canadian-privacy-commissioner-just-say-no-to-intrusive-drm.html> at 31 January 2008
Friday, November 14, 2008
Music with a Message
Here are some of the tracks I will be playing on my radio program this Saturday night:
Eskit, Wussies for War
Lead Belly, Uncle Sam Says (Bottle Up and Go)
Lead Belly, Hitler Song
Billie Holiday, Strange Fruit
Cleo Kennedy, City Called Heaven
Fannie Lou Hamer, Go Tell it on the Mountain
Willie Peacock, Calypso Freedom
Willie Peacock, Get on Board Children
SNCC Freedom Singers, We Shall Not Be Moved
Sunnyland Slim, Be Careful How You Vote
Anti-Crew, Anti-Republican
Joe Glazer, There’s Power in a Union
Joe Glazer, Casey Jones (The Union Scab)
Neon Prophet, One World
Midnight Oil, One Country
Bruce Cockburn, If A Tree Falls
Neon Prophet, Save the Planet
The John Butler Trio, Treat Yo Mama
Jamiroquai, Emergency on Planet Earth
Bjork, Declare Independence
Yothu Yindi, Treaty
Joni Mitchell, The Magdalene Laundries
Phil Ochs, I Ain’t Marching Anymore
The Roots, False Media
Beastie Boys, Right Right Now Now
Ice Cube, Amerikka’s Most Wanted
The Disposable Heroes of Hypocrisy, Satanic Reverses
Graham Nash, Military Madness
Rise Against, Prayer of the Refugee
Dan Kelly & The Alpha Males, Drunk on Election Night
Black Eyed Peas, Third Eye
Eskit, Wussies for War
Lead Belly, Uncle Sam Says (Bottle Up and Go)
Lead Belly, Hitler Song
Billie Holiday, Strange Fruit
Cleo Kennedy, City Called Heaven
Fannie Lou Hamer, Go Tell it on the Mountain
Willie Peacock, Calypso Freedom
Willie Peacock, Get on Board Children
SNCC Freedom Singers, We Shall Not Be Moved
Sunnyland Slim, Be Careful How You Vote
Anti-Crew, Anti-Republican
Joe Glazer, There’s Power in a Union
Joe Glazer, Casey Jones (The Union Scab)
Neon Prophet, One World
Midnight Oil, One Country
Bruce Cockburn, If A Tree Falls
Neon Prophet, Save the Planet
The John Butler Trio, Treat Yo Mama
Jamiroquai, Emergency on Planet Earth
Bjork, Declare Independence
Yothu Yindi, Treaty
Joni Mitchell, The Magdalene Laundries
Phil Ochs, I Ain’t Marching Anymore
The Roots, False Media
Beastie Boys, Right Right Now Now
Ice Cube, Amerikka’s Most Wanted
The Disposable Heroes of Hypocrisy, Satanic Reverses
Graham Nash, Military Madness
Rise Against, Prayer of the Refugee
Dan Kelly & The Alpha Males, Drunk on Election Night
Black Eyed Peas, Third Eye
Thursday, November 13, 2008
Year in Review: Digital Sales
Reports consistently indicate an increase in the level of music sales in the digital format. There has also been further speculation as to the introduction of variable pricing as well as some experimentation with new digital formats.[1]
Sales
Digital sales in 2007 as reported by RIAA now account for 23% of US based recording revenues.[2] There was an increase of 38.1% for paid downloads to 809.9 million units ($US801.8 million).[3] Digital albums were up 54% with 42.5 million units sold ($US424.9 million).[4] Mobile formats including downloads and ringtones increased to 361 million units, up 14.6%.[5]
However, overall sales in the United States over the 12 month period between January and December 2007 dropped 16.1%.[6] The increase in digital sales this has not been enough to make up for the continued decline in CD sales.[7]
During the first quarter of 2008 digital sales increased 28.7% to 281.4 million units.[8] In the first half of 2008 sales of digital albums in the United States continued to increase, rising 34% to 31.6 million units accounting for 15.5% of overall album sales.[9] Digital singles increased 30% to 524.7 million units from 399 million units.[10]
Globally digital revenue rose from $800 million to $2.9 billion in 2007, from 11% to 15% of total music revenue.[11] However the IFPI suggest that illegal downloads still out number legitimate sales 20:1.[12] It took iTunes 5 years to sell 5 billion tracks while it is estimated that 1 billion tracks are traded for free on file sharing networks per month.[13]
Sales statistics for each of the main digital music services are more difficult to find. In April 2008 USA Today published rankings of all the digital music stores.[14] It stated that iTunes was the most popular digital music store in the United States with estimated annual revenue of $1.8 billion with Napster ranked second at $125 million and eMusic ranked third at $42 million.[15] Rhapsody challenged this ranking reporting 2007 revenue of $149.1 million arguing that it should be ranked in second place behind iTunes and ahead of Napster and eMusic.[16]
On a label by label basis it is also difficult to find comprehensive data. SonyBMG has been reported as suggesting that 30% of its business is now in the digital format.[17] Warner estimates its digital revenue to be around 15.7% of overall sales.[18]
Variable Pricing
Wal-Mart has begun introducing lower prices for selected digital sales.[19] While this music service had already introduced some tracks being sold for $0.88 cents each, in October it was announced that some songs would be sold on a promotional basis for $0.74 cents each.[20] Most tracks remain priced at $0.94 cents each.[21]
Warner announced in May 2008 that it was considering a trial of liquid variable pricing through the use of technology developed by Digonex.[22] The technology gauges the popularity of tracks and can be used to spur up sales through temporary discounts.[23]
Formats
In September 2008 it was reported that ScanDisk were introducing Slot Music sales to selected retail department stores in the United States.[24] MicroSD cards with 1 gig capacity are being trialled for 29 artists. Each card will be sold for $15.00 each and contain songs and other multimedia material such as liner notes, album art and videos.[25] There will be no use of Digital Rights Management technology.[26] They are designed for use in new models of mobile phones but are also being packaged with USB compatibility to allow for use on PCs, Mac and Linux machines.[27]
[1] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[2] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[3] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[4] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008
[5] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[6] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Albums Keep Dropping; Bottom Remains Murky (11 April 2008) <http://www.digitalmusicnews.com/stories/041008sales> at 13 April 2008
[7] Digital Music News, PwC: Australian Recordings Going Down Under (6 August 2008) <http://www.digitalmusicnews.com/stories/080508pwc> at 7 August 2008
[8] Digital Music News, Album Sales Bath Continues During First Quarter (3 April 2008) <http://www.digitalmusicnews.com/stories/040208quarter> at 8 April 2008
[9] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[10] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[11] Slyck, P2P Downloads Crush iTunes/Digital Sales 20:1 (24 January 2008) <http://www.slyck.com/story1642_P2P_Downloads_Crush_iTunesDigital_Sales_201> at 31 January 2008; Other reports suggest that globally music accounts for an estimated 18% of total revenue: ArsTechnica, Fragmented European market hurting digital music sales (28 February 2008) <http://arstechnica.com/news.ars/post/20080228-fragmented-european-market-hurting-digital-music-sales.html> at 3 March 2008
[12] The Age, 95% of music doanloads are illegal (25 January 2008) <http://www.theage.com.au/news/web/95-of-music-downloads-are-illegal/2008/01/24/1201025084723.html> at 31 January 2008
[13] Slyck, P2P Downloads Crush iTunes/Digital Sales 20:1 (24 January 2008) <http://www.slyck.com/story1642_P2P_Downloads_Crush_iTunesDigital_Sales_201> at 31 January 2008
[14] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[15] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[16] Digital Music News, Rhapsody Challenges Recent Researcher Ranking (2 April 2008) <http://www.digitalmusicnews.com/stories/040108rhapsody> at 3 April 2008
[17] ArsTechnica, Fragmented European market hurting digital music sales (28 February 2008) <http://arstechnica.com/news.ars/post/20080228-fragmented-european-market-hurting-digital-music-sales.html> at 3 March 2008
[18] Digital Music News, Digital Percentages Accelerating Rapidly at Majors (28 February 2008) <http://www.digitalmusicnews.com/stories/022708percentages> at 29 February 2008
[19] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[20] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[21] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[22] Digital Music News, Warner Music Group Pilots True Variable Pricing (6 May 2008) <http://www.digitalmusicnews.com/stories/050508warner> at 7 May 2008; THR.Com, Warner music Group to try dynamic pricing (5 May 2008) <http://www.hollywoodreporter.com/hr/content_display/news/e3i33d4223fc20859064e611002f6284804> at 7 May 2008
[23] Digital Music News, Warner Music Group Pilots True Variable Pricing (6 May 2008) <http://www.digitalmusicnews.com/stories/050508warner> at 7 May 2008; THR.Com, Warner music Group to try dynamic pricing (5 May 2008) <http://www.hollywoodreporter.com/hr/content_display/news/e3i33d4223fc20859064e611002f6284804> at 7 May 2008
[24] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; TechDirt, SanDisk Makes Music Even Less Convenient (22 September 2008) <http://www.techdirt.com/articles/20080922/0247072325.shtml> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[25] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[26] The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[27] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
Sales
Digital sales in 2007 as reported by RIAA now account for 23% of US based recording revenues.[2] There was an increase of 38.1% for paid downloads to 809.9 million units ($US801.8 million).[3] Digital albums were up 54% with 42.5 million units sold ($US424.9 million).[4] Mobile formats including downloads and ringtones increased to 361 million units, up 14.6%.[5]
However, overall sales in the United States over the 12 month period between January and December 2007 dropped 16.1%.[6] The increase in digital sales this has not been enough to make up for the continued decline in CD sales.[7]
During the first quarter of 2008 digital sales increased 28.7% to 281.4 million units.[8] In the first half of 2008 sales of digital albums in the United States continued to increase, rising 34% to 31.6 million units accounting for 15.5% of overall album sales.[9] Digital singles increased 30% to 524.7 million units from 399 million units.[10]
Globally digital revenue rose from $800 million to $2.9 billion in 2007, from 11% to 15% of total music revenue.[11] However the IFPI suggest that illegal downloads still out number legitimate sales 20:1.[12] It took iTunes 5 years to sell 5 billion tracks while it is estimated that 1 billion tracks are traded for free on file sharing networks per month.[13]
Sales statistics for each of the main digital music services are more difficult to find. In April 2008 USA Today published rankings of all the digital music stores.[14] It stated that iTunes was the most popular digital music store in the United States with estimated annual revenue of $1.8 billion with Napster ranked second at $125 million and eMusic ranked third at $42 million.[15] Rhapsody challenged this ranking reporting 2007 revenue of $149.1 million arguing that it should be ranked in second place behind iTunes and ahead of Napster and eMusic.[16]
On a label by label basis it is also difficult to find comprehensive data. SonyBMG has been reported as suggesting that 30% of its business is now in the digital format.[17] Warner estimates its digital revenue to be around 15.7% of overall sales.[18]
Variable Pricing
Wal-Mart has begun introducing lower prices for selected digital sales.[19] While this music service had already introduced some tracks being sold for $0.88 cents each, in October it was announced that some songs would be sold on a promotional basis for $0.74 cents each.[20] Most tracks remain priced at $0.94 cents each.[21]
Warner announced in May 2008 that it was considering a trial of liquid variable pricing through the use of technology developed by Digonex.[22] The technology gauges the popularity of tracks and can be used to spur up sales through temporary discounts.[23]
Formats
In September 2008 it was reported that ScanDisk were introducing Slot Music sales to selected retail department stores in the United States.[24] MicroSD cards with 1 gig capacity are being trialled for 29 artists. Each card will be sold for $15.00 each and contain songs and other multimedia material such as liner notes, album art and videos.[25] There will be no use of Digital Rights Management technology.[26] They are designed for use in new models of mobile phones but are also being packaged with USB compatibility to allow for use on PCs, Mac and Linux machines.[27]
[1] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[2] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[3] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[4] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008
[5] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Digital Hits 23 Percent of US-Based Revenues, RIAA (28 April 2008) <http://www.digitalmusicnews.com/stories/042708riaa> at 30 April 2008
[6] RIAA, 2007 End Year Shipment Statistics (April 2008) <http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf> at 30 April 2008; Digital Music News, Albums Keep Dropping; Bottom Remains Murky (11 April 2008) <http://www.digitalmusicnews.com/stories/041008sales> at 13 April 2008
[7] Digital Music News, PwC: Australian Recordings Going Down Under (6 August 2008) <http://www.digitalmusicnews.com/stories/080508pwc> at 7 August 2008
[8] Digital Music News, Album Sales Bath Continues During First Quarter (3 April 2008) <http://www.digitalmusicnews.com/stories/040208quarter> at 8 April 2008
[9] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[10] Digital Music News, July Already? Album Sales Keep Sinking In '08... (3 July 2008) <http://www.digitalmusicnews.com/stories/070208album> at 4 July 2008
[11] Slyck, P2P Downloads Crush iTunes/Digital Sales 20:1 (24 January 2008) <http://www.slyck.com/story1642_P2P_Downloads_Crush_iTunesDigital_Sales_201> at 31 January 2008; Other reports suggest that globally music accounts for an estimated 18% of total revenue: ArsTechnica, Fragmented European market hurting digital music sales (28 February 2008) <http://arstechnica.com/news.ars/post/20080228-fragmented-european-market-hurting-digital-music-sales.html> at 3 March 2008
[12] The Age, 95% of music doanloads are illegal (25 January 2008) <http://www.theage.com.au/news/web/95-of-music-downloads-are-illegal/2008/01/24/1201025084723.html> at 31 January 2008
[13] Slyck, P2P Downloads Crush iTunes/Digital Sales 20:1 (24 January 2008) <http://www.slyck.com/story1642_P2P_Downloads_Crush_iTunesDigital_Sales_201> at 31 January 2008
[14] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[15] Digital Music News, Who's Number Two? Three? Researcher Starts Counting Benjamins... (1 April 2008) <http://www.digitalmusicnews.com/stories/033108number> at 2 April 2008
[16] Digital Music News, Rhapsody Challenges Recent Researcher Ranking (2 April 2008) <http://www.digitalmusicnews.com/stories/040108rhapsody> at 3 April 2008
[17] ArsTechnica, Fragmented European market hurting digital music sales (28 February 2008) <http://arstechnica.com/news.ars/post/20080228-fragmented-european-market-hurting-digital-music-sales.html> at 3 March 2008
[18] Digital Music News, Digital Percentages Accelerating Rapidly at Majors (28 February 2008) <http://www.digitalmusicnews.com/stories/022708percentages> at 29 February 2008
[19] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[20] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[21] Digital Music News, Wal-Mart Introduces... The 74-Cent Download (29 October 2008) <http://www.digitalmusicnews.com/stories/102808walmart> at 30 October 2008
[22] Digital Music News, Warner Music Group Pilots True Variable Pricing (6 May 2008) <http://www.digitalmusicnews.com/stories/050508warner> at 7 May 2008; THR.Com, Warner music Group to try dynamic pricing (5 May 2008) <http://www.hollywoodreporter.com/hr/content_display/news/e3i33d4223fc20859064e611002f6284804> at 7 May 2008
[23] Digital Music News, Warner Music Group Pilots True Variable Pricing (6 May 2008) <http://www.digitalmusicnews.com/stories/050508warner> at 7 May 2008; THR.Com, Warner music Group to try dynamic pricing (5 May 2008) <http://www.hollywoodreporter.com/hr/content_display/news/e3i33d4223fc20859064e611002f6284804> at 7 May 2008
[24] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; TechDirt, SanDisk Makes Music Even Less Convenient (22 September 2008) <http://www.techdirt.com/articles/20080922/0247072325.shtml> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[25] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[26] The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
[27] ZeroPaid, 'Slot Music' - Record Labels to Sell Music On MicroSD Cards (24 September 20080 <http://www.zeropaid.com/news/9771/%27SlotMusic%27+-+Record+Labels+to+Sell+Music+on+MicroSD+Cards> at 26 September 2008; The Wall Street Journal, SanDisk, Record Companies Plan New Music Format (22 September 2008) <http://online.wsj.com/article/SB122204010273861109.html> at 26 September 2008
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