<![CDATA[Valleywag: iTunes]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: iTunes]]> http://valleywag.com/tag/itunes http://valleywag.com/tag/itunes <![CDATA[ Apple bans comic book from iPhones because it's seriously disgusting ]]> Infurious Comics created an iPhone app called Comic Reader, which does just what it sounds like it does, and featured a book called Murderdrome as the app's first title. Murderdrome is a story about a "game where the only way to score a goal," one character explains as he cuts into another's skull, "is with the severed head of an opposing player." Because Apple prohibits "any obscene, pornographic, offensive or defamatory content" in iPhone apps, Apple quickly booted Comic Reader and Murderdrome from its iTunes App Store.

Naturally, this upset Murderdrome's creator Paul Jason Holden, who called — "infuriously," we suppose — for action on his blog: "PLEASE leave a comment. We’ll forward ALL of these to Apple, so that we can ensure that not only Murderdrome, but that ANY comic submitted to Apple doesn’t fall foul of the same censorship." (Do hyperviolent comic book authors also always go by three names?) By this morning, tech-news aggregator Techmeme was dutifully full of sympathetic retellings of Infurious's plight.

Not here though. We'll only make the obvious point that we'd never heard of the Comic Reader app, Infurious Comics or its just-plain-gross comic Murderdrome until now. Publicity for being banned worked commercial wonders for even James Joyce's unreadable Ulysses, so we bet it helps Mr. Holden's gore-porn sales just plenty.

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Thu, 28 Aug 2008 14:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5043220&view=rss&microfeed=true
<![CDATA[ Kid Rock has a hit without iTunes ]]> "All Summer Long" is one catchy tune. Built on the groove of the late Warren Zevon's "Werewolves of London," spiced up with Skynyrd's "Sweet Home Alabama," the song nonetheless soars on Robert James Ritchie's down-homey delivery of one of the best ballads to hit the airwaves in years. I've heard it on Top 40, country and classic rock stations in the past week. Kid Rock's album, Rock 'n Roll Jesus, is now at #2 on Billboard's chart. All this without iTunes. Why on earth would record labels withhold an album from America's largest music retailer?

There's no one big reason. This WSJ report lists several:

  • ITunes, with few exceptions, requires that songs be made available separately. Some artists see their albums as one piece of work, and don't want them dismantled.
  • Their handlers believe they can make more by selling complete albums for $10 to $15 than by selling individual songs.
  • Apple isn't willing to sell songs for more than 99 cents. Most record labels see higher prices as critical to increasing revenue.

Classic rock band manager Irving Azoff says "I'm underwhelmed by the sales for the classic bands." A rough estimate by Eagles bandleader Glenn Frey found that their iTunes royalties to date "amounted to 39 minutes on stage in Kansas City." (Photo by AP/Carlos Osorio)

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Thu, 28 Aug 2008 10:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5043015&view=rss&microfeed=true
<![CDATA[ Four reasons Apple's iPhone 3G fails ]]> In agreeing to sell the iPhone, does Best Buy know what its getting itself into? Steve Jobs is issuing mea culpas about MobileMe, Apple's flaky email-and-synching service. But there are no Jobsian apologies over the iPhone 3G. Sure, sales are fine, $30 million changed hands through iTunes App Store in its first month, and Apple's market cap is now larger than Google's. But InternetNews.com's Andy Patrizio says it's obvious there's something wrong with the device itself.

Specifically, the "3G" part of "iPhone 3G." Patrizio writes that "on disabling 3G, service improved immediately. There were no more dropped calls. Audio quality was fine. Battery life was much better." An analyst tells Patrizio a chip inside the phone is the problem: "We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier." Patrizio's three other problems with the iPhone:

  • Steve Jobs's kill switch:
    Jobs confirmed if you install applications unapproved by Apple, the app will be removed as soon as you plug it in to synch and recharge. What would happen if Microsoft did this?

  • Cracking cases. After The Unofficial Apple Weblog reported "Cracks 'appearing' in new iPhone 3Gs," they updated their story to write:
    Commenters are literally pouring in to tell us that as careful as they've been with their iPhone 3Gs, even the most babied devices are showing cracks.

  • App developers are angry over NDAs. Developers building apps for the iPhone have a hard time helping each other out because Apple forces them to sign strict non-disclosure agreements. The response? FuckingNDA.com.

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Wed, 13 Aug 2008 17:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5036518&view=rss&microfeed=true
<![CDATA[ Shadowlayer ]]> In a post about iPhone apps sales hitting $30 million a month, today's featured commenter Shadowlayer gives a stark prediction:

It will be a fad, why? because Jobs has a very narrow mind regarding software, and that means we won't see the kind of cool stuff that PalmOS used to get in the late '90s/early '00s.

The iPhone-as-modem app just got canned, and that was way more useful that most of the crap on the store. Ask any gamer and he'll tell you that using non-physical buttons (like in some DS games) is a nightmare.

After the peak hype, only 10-20 percent of the user base will be buying (instead of just getting the free ones) apps in the store.

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Mon, 11 Aug 2008 16:40:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5035743&view=rss&microfeed=true
<![CDATA[ Apple working with developer to give you the runaround ]]> Nullriver, a software developer, released an iPhone application called NetShare, which enables an iPhone to be used as a portable modem for computers. Despite being a violation of AT&T's terms of service, Nullriver got it onto Apple's iTunes App Store. Over the past week, Apple took it down, reinstated it, and then took it down again. Both companies are now laying the blame at each other's doorsteps, as one blogger realized in his attempt to get a refund for his purchase. Might just want to call your credit card company to get the charge removed. That seems easier.

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Mon, 11 Aug 2008 08:20:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5034972&view=rss&microfeed=true
<![CDATA[ Jobs: iPhone app sales hit $30 million in a month ]]> Apple CEO Steve Jobs says iPhone and iPod Touch users downloaded more than 60 million apps from the iTunes App Store during its first month of business, spending about $1 million per day for a sales total of $30 million. "At the current pace," report the quantitative analysts at the Wall Street Journal, "Apple stands to reap at least $360 million a year in new revenue from the App Store." Said Jobs: "This thing's going to crest a half a billion, soon. Who knows, maybe it will be a $1 billion marketplace at some point in time. I've never seen anything like this in my career for software." Note Jobs's crafty wording!

Apple only gets to keep 30 percent of that cash — so we're really talking about adding $100 million to Apple's multibillion-dollar bottom line. Jobs said the point isn't for Apple to make money off application sales, but to market them as only available on Apple hardware. "We think, going forward, the phone of the future will be differentiated by software," said Jobs. Videogames maker Sega told the Journal its sold 300,000 copies of Super Monkeyball at $9.99 a pop. "That's a substantial business," Sega exec Simon Jeffery said. "It gives iPhone a justifiable claim to being a viable gaming platform." With all this cash changing hands, we wonder: Why would anybody build widgets for Facebook and not the iPhone?

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Mon, 11 Aug 2008 07:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5035431&view=rss&microfeed=true
<![CDATA[ Do-nothing "I Am Rich" iPhone app found 8 buyers with enough taste to click "buy" ]]> Before Apple succumbed to jealous cries of the hoi polloi and removed his "I Am Rich" application from its iTunes App Store, developer Armein Heinrich sold eight copies of his $999.99 pristinely useless software — six to refined buyers in the United States, one to a collector in Germany and another to one in France. From a technical perspective, all "I Am Rich" did was glow red. Metaphysically, it was known to provide elation only found in the delicate, snow white comfort of a Himalayan white tiger fur coat. Heinreich told the LA Times: "I have no idea why they did it and am not aware of any violation of the rules to sell software on the App Store." SAI performed the gauche math and figures Heinrich profited $6,000 from his work; Apple kept 30 percent of that for "store upkeep."

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Fri, 08 Aug 2008 08:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5034715&view=rss&microfeed=true
<![CDATA[ Frightened husband accidentally pays $999.99 for useless iPhone app ]]> After discovering Armin Heinrich's $999.99 do-nothing "I Am Rich" iPhone widget, Apple iTunes App Store reviewer Lee5279xx claims that he "clicked buy, thinking it was a joke, to see what happened. I forgot my wife had 'iclick' activated on my laptop and it really bought this app for $999." Lee5279xx probably meant Apple's 1-Click feature which overrides Apple's standard "Do you really want to buy this?" dialog box. But that was meant for 99-cent songs, not thousand-dollar timewasters.

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Thu, 07 Aug 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5034188&view=rss&microfeed=true
<![CDATA[ Vudu sexes up its set-top box, but is it too late? ]]> Vudu, a startup which sells a set-top box for downloading HD movies over the Internet, has finally added adult content to the mix through a partnership with AVN. Neither Netflix nor Apple will let you watch folks bump uglies — in stunning 1080p resolution, no less. Vudu rival FyreTV won't let you download anything but porn, so it's certainly a differentiator. But is it enough to save Vudu's business model? Unlikely. At $299 (marked down from $399), the box is pricey, the selection of videos still limited, and the premise that viewers will spend up to $20 to virtually "own" Ashlynn Goes to College 3 questionable. And of course, the real competition isn't other paid services — it's the millions of hours of free porn available on the Internet.

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Wed, 06 Aug 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5033948&view=rss&microfeed=true
<![CDATA[ 10 "I Am Rich" ratings reveal how delightfully cynical online product reviewers can be ]]> Armin Heinrich's "I Am Rich" iPhone App, sadly no longer available for $999.99 in the iTunes App Store, was probably the most important software development of our time. Wonderfully, some 502 iTunes App Store shoppers took the time to review it, giving it a rating of two stars out of a possible five. Our 10 favorite reviews — sometimes marked by calm, playing-along cynicism, sometimes by wide-eyed fury — are below:










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Wed, 06 Aug 2008 13:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5033764&view=rss&microfeed=true
<![CDATA[ Apple's new MobileMe boss punished with a promotion ]]> Eddy Cue, the vice president in charge of Apple's iTunes Store, where outages contributed to the iPhone 3G's messy launch, isn't getting fired. Instead, Apple CEO Steve Jobs is promoting him to head all of Apple's Internet services — iTunes, the App Store, and MobileMe — and will report directly to Steve Jobs. Does this mean that Cue's former boss, Sina Tamaddon, right, is taking the fall for MobileMe's buggy launch? One person definitely getting slapped: Rob Schoeben, the executive responsible for MobileMe during its launch. (Photo of Cue, left, by matteorenzi)

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Tue, 05 Aug 2008 14:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5033416&view=rss&microfeed=true
<![CDATA[ Amazon limps its way to 4 percent of U.S. digital-music market ]]> eMusic CEO David Pakman estimates that Amazon.com's MP3 store may have sold 27 million tracks since opening 6 months ago — which sounds good until you consider that Apple's iTunes moves 2 billion songs a year. Pakman also estimates that Amazon's store is adding $7 million, after the labels' take and expenses. At least people are looking forward to a new Kindle, right? [Silicon Alley Insider]

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Wed, 16 Jul 2008 15:20:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5025975&view=rss&microfeed=true
<![CDATA[ Which iPhone apps make the most money? ]]> Tracking the number of reviews written for each iPhone application sold in the iTunes App store won't tell you how many times that application has been purchased and downloaded. It won't reveal that apps' volume writes Medialet's David Hill. But Hill contends tracking the number of reviews users give apps will give you a sense of each app's "relative volume" — the app's approximate share of of the App stores' overall volume. Multiply the number of an app's review against the app's price and Hill says you get an approximation of its revenue, or at least its "relative revenue," which is good enough for making comparisons. Doing this math, Hill worked up the chart above. What's Hill's chart reveal? That there's riches in niches. Check out ForeFlight mobile, an app for airline pilots that costs 70 bucks a pop, earning more more revenue than any other app but one.

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Tue, 15 Jul 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5025274&view=rss&microfeed=true
<![CDATA[ Apple employee: iPhone 3G launch failure is "shitty" ]]> NEW YORK — Apple's iTunes store, required for activating the new iPhone 3G is failing, causing massive chaos from coast to coast. Even Apple employees are — when they don't realize a reporter is in earshot — acknowledging this. "I can't believe there's just so much stuff going wrong," says one employee at the Fifth Avenue Apple Store as he takes his lunch break sitting next to me. "It's not very Apple-like. It's shitty. It just shouldn't happen." His friend agrees: "I called my dad and his phone still doesn't work."

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Fri, 11 Jul 2008 14:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5024366&view=rss&microfeed=true
<![CDATA[ Neil Young to fix iTunes' sucky audio quality once and for all ]]> "Putting on a headphone and listening to an MP3 is like hell," 62-year-old rock eccentric Neil Young has said, while praising the sonic qualities of old vinyl records. Now, taking a clue from the fix-it-yourself Web 2.0 kids, Young told the Financial Times that he's working on an alternative digital distribution platform that won't drive his ears nuts:

It has every media component you could want, and they're all married together in a platform. That means other artists could use it, other record companies could use it and gain the knowledge of our 15-year development curve.

If you doubt the man's seriousness about screwing around with technology, check out this live 1982 performance of the vocoder-driven "Sample and Hold." See? Those old analog vocoders beat the pants off T-Pain's digital auto-tuner. At the JavaOne conference, Young eagerly extolled the virtues of the entertainment industry's production standard of 96kHz, 24-bit digital audio.

Why do golden-ear types like Young hate MP3s? The format results in lower dynamic range, lossy compression artifacts and is thin in the upper frequencies. Digital audio also produces harsh even-order harmonics and not the odd-order harmonics which add textural timbre to chords, and integrated circuit amplifiers have a high noise floor because of radio-frequency interference. Even young consumers prefer the sound of analog hi-fi systems like Jackson Pollock's. (Photo by Andrea Barsanti)

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Wed, 02 Jul 2008 18:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5021639&view=rss&microfeed=true
<![CDATA[ Nine years later, Napster repeats its feat of making MP3s widely available ]]> MP3_KittyLG_90x99.jpgThe celestial jukebox is back, far too late to matter. Napster is now selling a library of 6 million songs, from all four major labels, as MP3 files, a format which lacks copy protection and hence is compatible with any number of devices — most importantly, the iPod. In other words, the state of affairs that existed nine years ago at Napster's original launch, save for the 99-cent fee now charged per download. Egghead Netscape cofounder Marc Andreessen notes the irony without explanation. For the slightly less brilliant among us, here it is: The record labels, having killed Napster once, have now rallied behind it, hoping to weaken Apple, a company whose iTunes store is already the dominant music retailer in the U.S.

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Wed, 21 May 2008 11:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=392468&view=rss&microfeed=true
<![CDATA[ Following bloggers, musicians are the latest group to whore themselves to Apple ]]> LeopardMusicVideo.jpgBloggers know that a good Apple story is a sure-fire way to precious pageviews and ultimately, cash. Music groups are figuring out how to capitalize on the cult of Steve Jobs, too. Silicon Alley Insider reports that since appearing in an Apple ad on April 27, "Shut Up and Let Me Go" by The Ting Tings shot up to No. 11 on the iTunes charts and No. 93 on Billboard's top 100. Additionally, Apple fanboys snatched up copies of "Music Is My Hot Hot Sex" after Apple debuted the song in an ad on October 28, and then "New Soul" by Yael Naim took its turn on the charts after Apple featured it in its MacBook Air ad campaign. So the capitalist-friendly among us can't help but cheer music group The Bird & the Bee for their video director Dennis Liu's cynical attempt at an Apple-whoring music video, embedded below.

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Wed, 14 May 2008 13:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=390408&view=rss&microfeed=true
<![CDATA[ Apple adds HBO to iTunes, but only by caving on pricing ]]> As a a part of a deal to bring HBO shows to the iTunes store, Apple will allow a content producer to break its $1.99-per-show price structure for the first time, HBO employees involved in the deal told Portfolio. Last summer, Apple CEO Steve Jobs refused to allow NBC to do the same, so NBC boss Jeff Zucker took his shows elsewhere — to Microsoft and the Zune, specifically. Why did HBO get the deal while NBC didn't?

Scarcity. Viewers can access NBC for free from their TVs, NBC.com, Hulu.com, and, oddly enough, from their iPhones. Other than an ongoing trial in Wisconsin, HBO shows aren't available on the Web and viewers even have to pay to see them on their televisions. And isn't the difference between NBC's Crime Scene and HBO's The Wire worth paying extra for?

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Mon, 12 May 2008 11:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=389569&view=rss&microfeed=true
<![CDATA[ Jeff Zucker's Zune revenge ]]> What a ZuckerHaving dropped Apple's iTunes store in a dispute over pricing, NBC Universal will soon start selling downloads of TV shows like The Office and 30 Rock for its Zune media player. If NBC chief Jeff Zucker manages to scrape some sales out of Microsoft's handheld also-ran, it will be a miracle — and the surest proof yet that content, not hardware, is king. Don't hold your breath. Microsoft's Zune has always seemed like a parody of Apple's iPod. Want to buy songs? Well, first you buy "points" from Microsoft, which you can then exchange for music at some bizarre exchange rate. Nothing about its user interface seems quite right compared to Apple's polish. The system for TV shows is no better. Though Microsoft also makes the Xbox, shows downloaded to a Zune won't play on the videogame console unless you're adept at fiddling with cables. By going with Microsoft, Zucker is betting that technology doesn't matter, design doesn't matter, and market share doesn't matter. He must really believe in his prime-time lineup. (Photo via Fake Steve Ballmer)

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Tue, 06 May 2008 09:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=387606&view=rss&microfeed=true
<![CDATA[ Merlin megalabel to represent indies in licensing negotiations ]]> merlin_logo.jpgThe music snobbery is going to get a whole lot thicker on MySpace now that thousands of independent labels have signed on for "virtual major" Merlin.
While most indie albums sell in small numbers, indie labels collectively account for 27.5 percent of total music sales worldwide; when banded together, they represent one of the largest labels on the planet.
The purpose of the organization is to allow online distributors like MySpace and iTunes to have one contact to negotiate deals on behalf of thousands of small companies. All of it means more choice for customers online — those of you who introduced your crush to Os Mutantes can be forgiven if your expression of affected indifference melts into a smile, if only for a moment. Now the glossy, pop crap from the likes of EMI will have to compete on par with the delights of Sympathy for the Record Industry's catalog.

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Mon, 05 May 2008 17:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=387389&view=rss&microfeed=true
<![CDATA[ Obscene iTunes profit margins finally win Hollywood's heart ]]> Steve Jobs has finally wooed all the major studios, including Fox, Warner Bros., Sony, Paramount and Universal, to sell movie downloads on the day DVDs are released. On Friday, you'll be able to wait a while as American Gangster downloads over your crappy American broadband connection for $14.99. And it will be delivered in lower quality than standard DVDs, without any of those annoying extra features. But it will have Apple's DRM installed with every copy! What finally brought Hollywood to the table?

As Defamer points out:

Time Warner CEO Jeff Bewkes cited a 60%-70% profit margin during a VOD trial for Warner Bros. films on cable — more than twice the return on Time Warner DVD rentals.
If those margins hold for Internet distribution, and customers start adopting digital movie downloads in big numbers, it'll be hookers and blow time in Hollywood again soon enough. (Photo by James Thompson) ]]>
Thu, 01 May 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=386323&view=rss&microfeed=true
<![CDATA[ Twee hipsters can now download Juno from iTunes ]]> Everyone's favorite over-allusive Indiewood hit Juno is now available for download at the iTunes Music Store for $14.99. The move marks Fox's first foray into offering new DVD releases as paid downloads through Apple's popular service, with the studio joining Paramount and Disney. Amazon's Unbox already carried the title, where it's also available to rent. Apple TV owners won't be able to rent Juno until May 14.

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Wed, 16 Apr 2008 15:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=380621&view=rss&microfeed=true
<![CDATA[ What MySpace Music backers don't get: Recorded music is no longer a product, but advertising ]]> jay_z_american_gangster.jpgShawn "Jay Z" Carter signing with LiveNation demonstrates that one of the most entrepreneurial artists of our generation has decided that the business of recording music is advertising. The No. 1 digital music retailer, iTunes, has understood this for some time — Apple sells iPods, and iTunes is a service to make it relatively cheap and easy to fill those iPods. Carter will be happy to make a little chump change from digital sales, but the MC knows the real money is in branded events and merchandise. What the labels call "piracy" is actually free distribution of promotional material, and such a model is not without precedent.

It's called radio, and more recently, music videos. In both cases, record labels basically paid to promote album sales — either through payola, in the case of radio, or through seven-figure film budgets, in the case of music videos. The content itself was given away for free. Thankfully, digital tools make recording and mastering that much cheaper as well. The only change in thinking (and artist contracts) required is to see the recordings themselves as a loss leader for stuff you actually can sell, like tickets and T-shirts, fan club memberships and licensing rights.

The new MySpace Music, like industry-backed efforts with MusicNet, PressPlay and Bertelsmann's Napster, is doomed to failure because the labels persist in seeing recorded music as a profit center, not as a promotional platform for leveraging artists' brands. Of the four majors, only EMI hasn't signed on with that effort yet, and if former Googler Douglas Merrill has any sense, he'll tell the company not to bother. (Photo by AP/Peter Kramer)

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Fri, 04 Apr 2008 11:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=376018&view=rss&microfeed=true
<![CDATA[ Apple now top music seller in America, beating Wal-Mart ]]> Apple now holds a 19 percent share of the U.S. music market, beating Wal-Mart's 15 percent and taking the No. 1 spot for the first time. Just last month, Apple moved past Best Buy for the No. 2 spot. The data, from an NPD survey, came from a leaked internal email from Apple. Ars Technica suspects the increase in buying is related to Christmas gifts of iPods and iTunes gift cards. Most surprising to me? People still buy music.

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Thu, 03 Apr 2008 12:20:00 PDT Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=375681&view=rss&microfeed=true
<![CDATA[ Why Steve Jobs wants to sell you a music subscription ]]> Why is Apple suddenly in talks with record labels about bundling an unlimited music plan with new iPods, after resisting such a move for years? Steve Jobs has scoffed at music subscriptions in the past, saying customers want to "own their music." Never take Steve at his word: For years, he shot down the idea of iPods with video or an Apple-branded cell phone — until he made them happen. The same is about to happen for music subscriptions, I suspect — but not because Jobs has suddenly changed his mind about consumers' tastes.

No, this is about the twisted dynamics of the music industry. Selling unprotected MP3s is all the rage now, even though label executives have insisted for years on copy-protected formats, like the kind Apple sells through iTunes. Forget Jobs's propaganda about Apple wanting to "free" music from copy protection. He doesn't care one bit about the digital-rights management software, or DRM, that record labels insist on. And he knows that most consumers don't care about the issue. He just wants to sell iPods, and his customers just want to buy them.

What Jobs does care about is other music stores having something Apple doesn't. The labels have been favoring competitors like Amazon.com with licenses for MP3 files — because they now fear Apple more than they fear piracy. And Jobs knows that DRM doesn't work to stop piracy, anyway. But what it does do is lock music to devices, because hardware manufacturers can't risk breaking the DMCA's circumvention provisions.

So Apple needs a new hook to win the labels back. Selling subscription music would allow Apple to lock down its music once more. According to reports of the proposals Apple and the labels are considering, iPod buyers would pay anywhere from $20 to $100 to get all the music they can download. Ah, but they'd have to download it from iTunes, onto an iPod.

Bundling music would give Apple a huge edge over the competition. Nokia's also proposing an all-you-can-hear music plan. But for all of Nokia's talk about cell phones replacing MP3 players, only 7 percent of cell-phone owners listen to music on their handsets. Amazon.com could try a subscription plan, but it's hard to see how it would make money, since it doesn't have the iPod's hefty profit margins.

Jobs comes out on top, again. Apple sells more iPods by giving the record labels what they want — copy protection and revenue — without having to share the iPod's profits. The compliant tech press corps will hail his plan as genius, forgetting he ever said anything about consumers wanting to own their music. The losers here are the musicians. Apple and the labels will divvy up subscription revenues, and the artists' cut will likely be smaller than what they'd make off of by-the-song sales. But since when has anyone asked their opinion about how to run the music business?

(Photo by AP/Paul Sakuma)

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Fri, 28 Mar 2008 13:40:00 PDT Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=373519&view=rss&microfeed=true
<![CDATA[ Can't you tell how clever John Mayer is from his bug report to Apple? ]]> JohnMayer.jpgJohn Mayer sat there waiting — waiting — on his iTunes to load. It never did. And like the rest of us, he had to force quit. But instead of doing so and moving on, Mayer felt compelled to write a cheery missive to the folks at Apple. "Hi guys. John Mayer here. Nothing's worse than running to stale music on your iPod, am I right?" He goes on in such a manner. We know this because Mayer posted the below screenshot of his report to his blog, fully indicating his cleverness to those paying attention. At the end of his post, Mayer wonders how Apple engineers will react to his letter. Anyone care to inform us how it was greeted at One Infinite Loop?

JohnMayerProblemReport.jpg

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Wed, 26 Mar 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=372388&view=rss&microfeed=true
<![CDATA[ We're not buying Apple's new unlimited music plan ]]> Apple has opened negotiations with the major record labels by offering only $20 per customer for a proposed unlimited plan at the iTunes music store, according to the Financial Times. Nokia is offering $80, but then cell-phone manufacturers have the price of phones subsidized by carriers who've gotten used to paying hundreds of dollars to acquire new customers. Apple has traditionally made its profits on the devices themselves, since iTunes margins are paltry, and are already slashing prices on units in order to meet sales forecasts. Labels are looking to get as much as $100 from iPod buyers and $8 a month from iPhone subscribers. Both sides are really fighting over how much of the profit from music they'll keep. Me, I'll stick with vinyl. (Illustration by Gizmodo)

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Tue, 18 Mar 2008 21:48:54 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=369496&view=rss&microfeed=true
<![CDATA[ Warner Music has signed a deal with 7digital.com ... ]]> Warner Music has signed a deal with 7digital.com to sell its entire catalog DRM-free in the U.K., Ireland, Germany, Spain and France. What's 7digital, you ask? An online music store that's not Apple's iTunes, which seems to be Warner's only requirement in a partner these days. [Crave]

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Tue, 04 Mar 2008 12:50:03 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=363733&view=rss&microfeed=true
<![CDATA[ "Good Luck Chuck" available on iTunes, 601 other promised titles not ]]> Good_luck_chuck.jpgApple's iTunes movie rental store has only 399 titles available for download. That's 601 fewer than CEO Steve Jobs promised at Macworld in January. Jobs has always maintained that Apple's market share isn't what matters — it's the quality of its products. Check out the top 12 iTunes movie rentals below — a list which includes cinematic thrills like No Reservations and Stardust — and see if that applies here.

iTunes_top_12.jpg

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Tue, 04 Mar 2008 09:16:11 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=363450&view=rss&microfeed=true
<![CDATA[ NBC's Zucker explains why he thought he could push Steve Jobs around ]]> NBCJobs.jpgNBC Universal head Jeff Zucker told a hall full of future Harvard MBAs yesterday that Steve Jobs booted NBC television from the iTunes store last summer because Zucker merely asked to experiment with show pricing. In fact, Zucker went on, NBC Universal films are now a part of the iTunes movie store only because Jobs bowed to NBC's demand for variable pricing. It's a convenient narrative, but not what actually happened.

Truth is, last summer, Zucker not only asked to set pricing, he demanded that Apple share some of its hardware revenues. Jobs said no. Zucker's subsequent public statements suggest the fact that this rebuff actually surprised him. Now we know why. Yesterday, Zucker told the students at Harvard that before its dismissal, NBC shows led the iTunes video market with 35 percent share. In the metaphorical physics of most businesses, that's called leverage. In Cupertino, that's not enough to let you touch Steve's iPhone.

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Thu, 28 Feb 2008 08:30:09 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=361788&view=rss&microfeed=true
<![CDATA[ Apple is now the second largest music retailer, ... ]]> Apple is now the second largest music retailer, beating Best Buy, in the United States. NPD Group, the market-research firm which tracks sales, estimates 12 single-song downloads as an album. Why don't they just count revenues? That would be easier. [BusinessWeek]

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Tue, 26 Feb 2008 11:54:57 PST Mary Jane Irwin http://valleywag.com/index.php?op=postcommentfeed&postId=360982&view=rss&microfeed=true
<![CDATA[ Linkin Park plays at SoHo Apple Store ]]> linkinparkimage.pngSo much for a "special event".Linkin Park played a short set at the SoHo Apple store last night. The show was taped for an exclusive iTunes release next month. It's possible that Apple bumped them from an actual secret event because of the leak, but unlikely. [Billboard]

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Thu, 21 Feb 2008 10:23:18 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=359222&view=rss&microfeed=true
<![CDATA[ BBC and Apple have partnered up to sell BBC ... ]]> BBC and Apple have partnered up to sell BBC programming through the UK iTunes store. [Reuters]

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Tue, 19 Feb 2008 13:10:33 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=358294&view=rss&microfeed=true
<![CDATA[ Amazon.com buys Audible.com for $300 million ]]> audibleandamazon.pngWhat's the value of the spoken word? $300 million, according to Amazon.com, which just purchased the leading digital audiobook reseller, Audible.com. The amount is a premium of more than 20 percent on yesterday's closing price. The purchase of Audible, which just celebrated its 10th anniversary, shows that Amazon is serious about digital content. Amazon has sold Audible's audio downloads since May 2000, and the purchase is a natural fit as Amazon offers more content via digital delivery. But what does it mean for the consumer?

In addition to selling audiobooks through Amazon, since 2003 Audible has been the sole provider of audiobooks through Apple's iTunes store. Details of Apple and Audible's deal have not been made public, but we doubt that it will be renewed when it expires. For Amazon, this a bit of a broadside against Apple. Amazon launched a DRM-free music store last year and managed to sign up a number of record labels which have thusfar refused to offer DRM-free music on the iTunes store. The music-store arms race shows no signs of cooling down.

But what about the iPod, the natural destination for Audible's audiobooks? The Kindle, Amazon's recently released e-book reader, has a bare-bones MP3 player and could be a possible delivery mechanism for Audible's wares, as it has a wireless Internet connection built in — EVDO, not Wi-Fi, so it works almost anywhere.

Amazon is serious about digital distribution — and has a chance to challenge Apple's dominance in this market like no other digital store has.

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Thu, 31 Jan 2008 10:20:27 PST Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=351153&view=rss&microfeed=true
<![CDATA[ NBC CEO Jeff Zucker puckers up to Steve Jobs's posterior ]]> NBCJobs.jpg"We've said all along that we admire Apple, that we want to be in business with Apple," NBC Universal CEO Jeff Zucker said in the Financial Times this morning. Of course you have, Jeff. Except for maybe that time last fall when you told an audience at Syracuse University that "Apple has destroyed the music business ... If we don't take control on the video side, they'll do the same [there]." What does Zucker's pirouette mean?

Two things. One, fanboys might be drooling over the MacBook Air Steve Jobs announced last week, but studio bosses like those at Zucker's Universal are more excited about movie rentals on the remodeled Apple TV. And two, entrepreneurs seeking quick cash might consider taking on Zucker in a game of Texas Hold 'em.

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Mon, 21 Jan 2008 09:45:38 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=347124&view=rss&microfeed=true
<![CDATA[ New Time Warner bandwidth plan could make Apple TV movies rent for $34 ]]> Time Warner Cable's new billing scheme, a test to charge users by bandwidth consumption, could crush Steve Jobs's hopes and dreams for Apple TV.

Up north, they're already charging by the bit. According to Bits, under Bell Canada's bandwidth pricing plan — one which Time Warner it is looking to as a potential model for its own — customers would pay $30 each time they rented an HD movie from Apple TV, on top of Apple's $3.99 rental fee. Even with gas prices where they are, driving to Blockbuster suddenly looks much more appealing.

And DSL Prime editor Dave Burstein told Bits the effect such a surcharge would have on Apple's new movie rental business is every bit intentional. "The smart people at Time Warner are scared of people watching TV directly over the Internet," he told the Times. "'Lost' and 'Desperate Housewives' look better over the Internet than they do on digital cable."

A Time Warner spokesperson denied the charge. "This is not targeted at people who download movies from Apple," Time Warner PR flack Alexander Dudley told the Times. "This is aimed at people who use peer-to-peer networks and download terabytes."

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Fri, 18 Jan 2008 10:45:10 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=346548&view=rss&microfeed=true
<![CDATA[ Wall Street unimpressed with Jobs, less impressed with competition ]]> Stock traders weren't blown away by Steve Jobs's Macworld announcements, sending Apple shares down 5 percent. Rivals faired even worse, however. From the numbers, they expect Apple's movie-rental service with support from all of the major studios to pummel brick-and-mortar competitor Blockbuster, and to a lesser extent Netflix. Blockbuster is trading down more than 15 percent in after hours while Netflix is down 3 percent.

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Tue, 15 Jan 2008 15:30:40 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=345260&view=rss&microfeed=true
<![CDATA[ Apple lands all six major studios for movie rentals ]]> Just confirmed at Macworld: all six major studios are onboard for iTunes movie rentals. That's Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal.Variety thought Sony, Universal and Warner Bros. were unlikely to sign on for "various competitive reasons." Maybe there's hope for the flailing Apple TV yet. Why? It's all you need to access the films. No computer required. (Photo by Boereck)

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Tue, 15 Jan 2008 09:39:30 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=345064&view=rss&microfeed=true
<![CDATA[ Netflix removes limits on online rentals ahead of Apple's news ]]> Netflix.jpgIs Apple CEO Steve Jobs prepared to announce iTunes movie rentals tomorrow? Netflix is sure acting like it. Over the weekend, it announced that it will remove restrictions on how many movies its customers can stream in a month.

Formerly, Netflix customers were limited to one hour of viewing per dollar they paid in monthly subscriptions. They now have access to 6,000 movie and TV titles online, with unlimited viewing. (By contrast, Netflix has 90,000 titles on DVD.) Unlimited, that is, except for those folks paying $4.99 a month to rent two DVDs at a time. But those cheap bastards get what they deserve.

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Mon, 14 Jan 2008 11:20:29 PST Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=344541&view=rss&microfeed=true
<![CDATA[ Is Europe a country? Don't ask Apple ]]>
Is Europe a country? The question puzzled gameshow contestant Kellie Pickler. And now even the European Commission seems confused. Apple has appeased the pangovernmental body by offering Britons the same price for iTunes downloads as the Continentals. But the original complaint remains unaddressed: Why can't Europeans shop at any national iTunes store, since the region is ostensibly one open market?

Jonathan Todd, the commission's antitrust spokesman, states:

Contrary to what we had been led to believe, the fact that the same content is not available in all EU countries is not the result of restricted business practices between Apple and the record companies, but of the restricting copyright legislation.
So it's the government's fault after all. Glad we cleared that up! The European Commission is eager to make companies do its bidding, but getting fractious nation-states to update their laws appears to be beyond its ken.

Some will view Apple's statement that it "will reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the U.K. to the pan-European level within six months," as bullying. But this is the reality: If anyone has the clout to force changes in the music industry and its regulatory regime, it's not the European Commission. It's Steve Jobs, savior of iPod users everywhere.

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Wed, 09 Jan 2008 13:29:56 PST Tim Faulkner http://valleywag.com/index.php?op=postcommentfeed&postId=342888&view=rss&microfeed=true