An interesting article from the BBC takes a look at how file-sharing web sites can actually make a music act more popular. In fact, the research cited in the article shows that the most-pirated songs tend to be those at the top of the charts.

Think of the potential impact of this on Apple (NASDAQ: AAPL). I remember the halcyon days of Napster and the likes, when you could go online and find songs from various artists (I even found Scruffy the Cat on Napster, not an easy task) and download as many as you want.

Well, when the RIAA and Metallica decided to wade into the fray -- sites like Napster were either summarily shut down or had to start charging for their services.

Continue reading Are music pirates good for artists?

Are music pirates good for artists? originally appeared on BloggingStocks on Mon, 18 May 2009 14:30:00 EST. Please see our terms for use of feeds.

Warner Music Group (NYSE: WMG) released its Q4 earnings on Tuesday. Did the numbers have all the makings of a hit? To start off, revenues declined over 1%. That's not hit material, to be certain. Here's something that might get your toes tapping, however: income from continuing operations came in at $0.04 per share, a pretty musical achievement considering that analysts thought that a loss of $0.02 per share would be recorded. And I have to note that the company did pretty good on the free-cash-flow front (I also noted this in a previous piece).

But here's the deal with Warner Music Group: like the music industry in general, it's still trying to adjust to the digital age. Buying music recorded on physical media just isn't where it's at these days, thanks to Apple (NASDAQ: AAPL) and others. The music industry would really love to get more money for their content, but because of the popularity of the low-pricing scheme at iTunes and other download sites, I don't think that's going to happen anytime soon. Indeed, when I purchase songs at Amazon (NASDAQ: AMZN), I really appreciate that $0.99 price point, and I probably would loathe paying $1.29, $1.39, etc., per tune.

In the end, even with the earnings beat, I'm not sure I could seriously consider Warner Music Group as a great investment idea. Forget that the company's release schedule is reportedly being affected by the recession and that this may shift potential earnings excitement to the latter part of the year -- you've got to remember that this is a low-priced stock in a difficult market environment. As of Tuesday's close, Warner Music Group was trading for less than $3 per share. The stock has been very weak lately, a falling knife, in fact. Best not to attempt a catch of this particular blade.

Disclosure: I don't own any company mentioned; positions can change at any time.

Hey, Warner Music Group beats expectations - but who cares? originally appeared on BloggingStocks on Wed, 26 Nov 2008 12:50:00 EST. Please see our terms for use of feeds.

Wal-Mart set to score big with exclusive AC/DC release originally appeared on BloggingStocks on Fri, 24 Oct 2008 11:50:00 EST. Please see our terms for use of feeds.

As an Activision Blizzard (NASDAQ: ATVI) shareholder, I'm extremely gratified by the unqualified success of the Guitar Hero franchise. However, I'm none too happy about statements made by Warner Music Group (NYSE: WMG) CEO Edgar Bronfman Jr. who believes that Activision Blizzard should be paying more to license the songs. When I first heard about that, I admit, I became a bit worried. After all, if the publisher has to pony up a higher amount of cash to the music industry, then there could be pressure on the stock.

Well, I'm glad I caught a blog post by Eliot Van Buskirk for Wired over at Portfolio.com. Looks like Activision Blizzard CEO Robert Kotick isn't taking too kindly to those in the music industry who suggest his company needs to share a higher percentage of the spoils. He basically told Bronfman Jr. to chill out, suggesting that the impact of his software platform on music sales for artists that are contained within it almost argues that the publisher shouldn't pay a dime to the music industry.

The shareholder in me says "right on, Bob!" In this digital age, the music industry needs all the help it can get in promoting its artist roster. Gone are the days when consumers opened their wallets for physical CDs. That aspect of the music industry is dying in favor of the iTunes model that powers Apple (NASDAQ: AAPL) and its iPod empire. Therefore, I agree with Buskirk's assertion that the boat shouldn't be rocked here. Music companies should just accept the licensing structure as it exists, look at it as a loss leader if they feel that's what it is, and just be satisfied with the ancillary promotion they receive.

Continue reading Activision Blizzard is no hero to Warner Music Group

Activision Blizzard is no hero to Warner Music Group originally appeared on BloggingStocks on Wed, 01 Oct 2008 09:45:00 EST. Please see our terms for use of feeds.

Continue reading Sony's Music Pass: An easy way to combat declining CD sales?

Sony's Music Pass: An easy way to combat declining CD sales? originally appeared on BloggingStocks on Fri, 12 Sep 2008 14:08:00 EST. Please see our terms for use of feeds.

Oasis ready to release new album via deal with Sony BMG originally appeared on BloggingStocks on Thu, 19 Jun 2008 16:04:00 EST. Please see our terms for use of feeds.

Napster (NASDAQ: NAPS), a music-download service, reported Q4 and full-year results on Wednesday. I must admit, for a very low single-digit stock, the results seemed pretty cool.

For the fourth quarter, revenues increased about 6% to $30.8 million and the net loss for the quarter came in at $0.10 per diluted share; this was much better than the loss of $0.20 per diluted share seen in last year's comparable quarter, which also included $0.03 attributable to discontinued operations. Briefing.com says this performance beat Wall Street's expectations by three pennies. For the full fiscal year, the top line increased a nice 15% to $127.5 million and the bottom-line loss was $0.38 per diluted share versus a net loss of $0.85 per diluted share in fiscal 2007. Perhaps even more important is the fact that Napster is, according to the release, generating positive cash flow, an achievement the company has kept up for four quarters now.

Of course, the big story this week is Napster's attempt at upping its game against competitors such as Apple (NASDAQ: AAPL), Wal-Mart (NYSE: WMT), and Amazon (NASDAQ: AMZN) by opening a music-download site dedicated to the sale of MP3 tunes (I wrote an post on the subject, and so did Richard Driver). This is meant to broaden the company's appeal by going after consumers who don't necessarily dig the subscription model. I'll tell you, though, it's going to be a long while before Napster supplants the dominance of the iTunes store.

Continue reading Napster (NAPS): Still not music to my ears

Napster (NAPS): Still not music to my ears originally appeared on BloggingStocks on Thu, 22 May 2008 10:47:00 EST. Please see our terms for use of feeds.

EMI may sell sponsorships for artists originally appeared on BloggingStocks on Wed, 16 Jan 2008 15:30:00 EST. Please see our terms for use of feeds.

With Sony BMG deal, Amazon will offer unlocked MP3s from all major labels originally appeared on BloggingStocks on Fri, 11 Jan 2008 15:46:00 EST. Please see our terms for use of feeds.

Music industry debt plans frustrated by credit loss originally appeared on BloggingStocks on Thu, 29 Nov 2007 17:00:00 EST. Please see our terms for use of feeds.

Radiohead launches TBD Records to release 'In Rainbows' disc originally appeared on BloggingStocks on Mon, 12 Nov 2007 17:21:00 EST. Please see our terms for use of feeds.

Madonna's Warner (WMG) departure: Are artists taking back control? originally appeared on BloggingStocks on Thu, 11 Oct 2007 15:20:00 EST. Please see our terms for use of feeds.

EMI memo divulges new digital plan originally appeared on BloggingStocks on Wed, 10 Oct 2007 17:20:00 EST. Please see our terms for use of feeds.

Nokia (NYSE: NOK) made a big fuss today as it launched an online music system and several multimedia phones. Some will have new touch screens like the Apple (NASDAQ: AAPL) iPhone. These are going to market in Europe almost immediately. Apple has not given a date for an iPhone launch there.

Most of the competition for Apple's music and device products is laughed at on Wall Street, Steve Jobs & Co. have sold over 120 million iPods which fuels traffic to iTunes. The iPhone is the most anticipated handset launch ever.

But, Nokia has what no other company can claim--a 36 share of the global handset market. Reuters writes that the company estimates that the global multimedia phone market will grow by 50% to 120 million units this year from 80 million in 2006.

With such a large market share, investors want to know where Nokia will go for future growth. It says the new revenue will come from software and service. The software will power multimedia phones. The services will include its new music store.

It is a frightening exercise for Motorola (NYSE: MOT) shareholders to look back at the launch of the RAZR and hit tremendous success which was still evident less than two years ago. Nothing prevented Motorola from riding the sales of that handset to get into the mobile media download business.

And, now it is too late.

Douglas A. McIntyre is a partner at 24/7 Wall St.

As Nokia launches iTune and iPhone competition, Motorola fades originally appeared on BloggingStocks on Wed, 29 Aug 2007 09:45:00 EST. Please see our terms for use of feeds.

Continue reading Paul McCartney switches to caffeinated: Is the music industry dozing?

Paul McCartney switches to caffeinated: Is the music industry dozing? originally appeared on BloggingStocks on Fri, 04 May 2007 19:45:00 EST. Please see our terms for use of feeds.

A little bit rock and roll (emphasis on "little"): new Donny Osmond album hits stores originally appeared on BloggingStocks on Tue, 24 Apr 2007 14:09:00 EST. Please see our terms for use of feeds.

Pricing expert looks at Apple's 99-cent music store originally appeared on BloggingStocks on Mon, 09 Apr 2007 17:00:00 EST. Please see our terms for use of feeds.

Yahoo! Inc. (NASDAQ: YHOO) and SanDisk Corp. (NASDAQ:SNDK) are launching a new MP3 player with WiFi capacity, joining a host of rivals to Apple Inc.'s (NASDAQ: AAPL) iPod, including the Microsoft Corp.'s (NASDAQ: MSFT) Zune.

The iPod currently has 70% of the portable music player market, and, that number appears to be holding. If the iPhone sells well, Apple will have another horse in the music download space. Cellphones that can download music are offered by the large handset manufacturers including Nokia Corp. (NYSE: NOK) and Motorola Inc. (NYSE: MOT), but there is little evidence that they have done any damage to the iPod's growth rate.

As much as it must pain Apple's competitors, no one has been able to throw anything in front of the company to slow the momentum of the iPod and its download service iTunes. The European Union recently announced that it would look into pricing issues involving iTunes and the record companies. That may eventually hurt Apple just as antitrust actions by the EU have slowed Microsoft's progress on the Continent.

Apple's only enemy appears to be its own success.

Douglas A. McIntyre is a partner at 24/7 Wall St.

One more iPod competitor originally appeared on BloggingStocks on Mon, 09 Apr 2007 08:15:00 EST. Please see our terms for use of feeds.

As I continuously ruminate about the state of music, album sales, and the growth of online digital markets, how much consumers care about these topics is something I have not strayed too close to. I think it is safe to say that consumers do care, but I cannot say if it is to the degree with which I am fascinated and write about it.

I was reminded by a mentor and colleague a few days ago how easy the use of Apple Inc.'s (NASDAQ: AAPL) iTunes Store and iPod are if you are hoping to listen to only one song or a few songs, but not an album. Of course, that very dynamic is what I so often write about in my blogs about the death of the album, but who exactly is decrying the death of the album? No matter how much I write about that death, it is very apparent that those who are worried about the death of such a money maker are the labels and the industry.

The nice thing about iTunes and other digital stores is that if you are just browsing you can listen to clips of the songs. This is not a method of shopping that you can easily acquire at stores like Best Buy (NYSE: BBY) or Target (NYSE: TGT), although Best Buy is beginning to incorporate computer stations where you can make test runs of programs like Rhapsody and Napster. They hope you will then sign up for a subscription to that service through Best Buy. Browsing at stores like these only ever really entails looking at the product. If you know nothing about it, then you cannot know if it will be something you are happy to spend your money on.

Continue reading Do consumers care if the album dies?

Do consumers care if the album dies? originally appeared on BloggingStocks on Sun, 08 Apr 2007 12:10:00 EST. Please see our terms for use of feeds.

Vote for the Worst enjoys being a fly around the Tyrannosaurus Rex that is "American Idol."

`"American Idol" isn't really a talent competition," said Dave Della Terza, who founded the snarky Web site in 2004, in an interview. "It's a carefully crafted realty show."

Della Terza hasn't made many friends at Fox and its corporate parent News Corp. (NYSE: NWS) or among rabid fans who regularly accuse him of trying to ruin America's most popular television show. Their angry emails on Vote for the Worst are hysterical.

Topic number one on the minds of his readers is Sanjaya Malakar. For those of you who are in a cave or in a coma, Malakar is a hapless young man who has managed to charm his way into the hearts of the American public. Every week, millions of viewers wait to find out what pop song the 17-year-old will butcher next.

In other words, Malakar is perfect for Vote for the Worst.

"It's pretty obvious that he's scared out of his mind," he said. "It's so awkward that the judges never know what to say."

Last night was no exception. Malakar put his long flowing brown hair into a mock Mohawk. His rendition of No Doubt's "Bathwater" was weird. Simon Cowell summed it up perfectly when he said that at this point it doesn't matter what the judges say about Malakar. Cowell is Sanjaya's "favorite" judge because he's "brutally honest," according to the show's Web site.

This season has had a few highlights for Della Terza. Idol contestant Chris Sligh, the chubby guy with the curly hair, gave him a shout out after finishing one of his songs. The site was also mentioned on VH1's "Best Week Ever."

"He understands the humor behind our Web site," he said of Sligh.

Maybe he'll have more time to enjoy Vote for the Worst. Sligh's rendition of "Every Little Thing She Does is Magic" didn't rock the house.

Try as it might, Fox can't ignore Vote for the Worst.

The site gets about one million hits a day and as many as four million hits on show nights. I had trouble getting on Vote for the Worst during last night's broadcast.

Vote for the Worst makes money, but not enough for Della Terza to make a living, he said.

Della Terza took pains to point out that he has a real job. Actually, he's got two of them.

"This is definitely not a job," he joked.

Media World: Vote for the Worst pokes fun at "American Idol" originally appeared on BloggingStocks on Wed, 28 Mar 2007 09:56:00 EST. Please see our terms for use of feeds.