Artist Quote of the Week

"Music is your own experience, your own thoughts, your wisdom. If you don't live it, it won't come out of your horn. They teach you there's a boundary line to music. But, man, there's no boundary line to art."


- Charlie "YardBird" Parker

EMI jostles into busy online market

EMI is planning to enter the crowded digital music market, forming its own site to join the likes of iTunes and MySpace and marketing its artists’ music directly to fans online.

EMI.com, a consumer-facing portal to be launched before Christmas, has been closely monitored by Guy Hands, head of the Terra Firma private equity group that bought the record label for £2.4bn ($4.2bn) last year.

The digital project, which began this year, will offer audio and video content. Users will be able to buy music and download it. There will also be unique content and elements of the site will be free. EMI declined to comment further about its plans.

The record label wants to position EMI.com as a “learning lab” where people can discover new music as part of a broader digital strategy.

Mr Hands has accused the music industry of being flabby, bureaucratic and refusing to face the challenges of the internet. He has spoken often about the prospects of the internet for marketing and online communities.

However, similar digital initiatives by the music industry, such as Sony’s PressPlay, failed because they did not offer consumers access to the catalogues of rival labels.

One music industry executive said: “Research has shown that when consumers are looking for music they want it all in one place. They want to buy Beyoncé when they are buying Rihanna. I am not quite sure what EMI will get for the money they have spent on it.”

Last year EMI – whose artists include Kylie Minogue and Coldplay – had a 13 per cent share of the global music business; Universal Music had 28 per cent; Sony BMG about 17 per cent; and Warner Music 15 per cent, according to Music & Copyright.

Most of the important music labels have some consumer-facing offering. Universal Music, whose acts include Amy Winehouse, also intends to launch a video portal service that will offer professionally produced music videos and original programming early next year. That product is intended more for professional website owners and for developers than for consumers.

There are also high hopes for music downloads on mobile phones, including services such as Nokia’s “Comes with Music”, which has signed up all the big labels.

MySpace Caters To Majors, Not Indies

"KOCH Records, as the #1 Independent label in the U.S. for the last 7years, was disappointed to see MySpace's 'smoke and mirrors' announcementregarding its new music service. Essentially it has announced a deal withthe majors and has in effect become MajorSpace.

"It is unconscionable that it would give equity positions to the majors andtreat the independent community as second class citizens after having builtits service on our backs, as its CEO has acknowledged. It makes no sense atall the that the Majors will benefit from the utilization of ourcontent without our participation as well. To be clear, our issue is notwith the Majors having equity but with MySpace believing that we wouldaccept this without similar terms. MySpace continually states that it isembracing the independents. It's a pretty listless and cold embrace."

About KOCH Entertainment

KOCH Entertainment, founded in 1987 and now in its twenty-second year, isthe leading and fastest-growing independent music company in the U.S.KOCH's operations encompass record and video labels, music publishing aswell as distribution companies in the U.S. and Canada. KOCH Entertainmentis the market leader among independent labels and distributors in both theU.S. and Canada. Its record label KOCH Records is the # 1 independentlabel in the U.S. and had the largest number of Billboard charting albumsamong independents for seven years in a row (2001 - 2007). KOCHEntertainment is a subsidiary of Entertainment One Ltd. which is listed onthe London Stock Exchange's AIM market (ticker symbol "ETO"

Music Business Service for Project Financing and Investments

Bandstocks is another music business service introducing an alternative to the ad supported free music business. Bandstocks is about financing music projects.

As the music industry is on the move the term project might become an interesting subject. Creativity today is not only required by the artists themselves to create something that is desired, but too by creators of concepts and marketers in the entertainment business to establish a successful business. As one may state that the time of the million billion dollar business is over for the music industry today new concepts might be needed to establish a business model based on art. Art might be the right term beside music as there indeed exists a broad playing field consisting of music, video opportunities and further ways of expression. Maybe a more comprehensive and integrated approach might be the new success model in the entertainment business. This is a chance to a broader range of market participants, the established entertainment business, independents and new artists as well as for other players like programers and even event organizers.

Artist Quote of the Week

"I don't know anything about music, In my line you don't have to." -Elvis Presley

SoundCloud Streamlines Music Sharing For Industry Professionals

Transferring large files on the web has always been a hassle, especially when you need to do it frequently. One field especially prone to this problem is the music industry - artists often collaborate with eachother by sending rough versions of tracks, but have to rely on clunky services like YouSendIt or FTP servers. SoundCloud, a German startup that launches on October 10, is looking to streamline this process by allowing an artist to upload a file once and easily distribute it to whomever they’d like. The site is currently in private beta, but you can grab one of 500 invites here.

SoundCloud isn’t meant as a consumer site - rather, it’s a service for industry professionals, including artists, music labels, and producers. From the outset, it’s clear that SoundCloud is very well designed, with an intuitive interface that falls firmly under “Web 2.0″. The site revolves around artist profiles and the tracks they’ve uploaded, which are presented in an embeddable basic music widget (you can see one below). Aside from standard playback, the widget also allows artists to open up their tracks to comments from outside visitors, which can be appended to specified times.

Artists can specify how much control their users will have over their content, setting their music to stream-only, or as available for download. The site also supports listener analytics, so artists can see how many visitors have listened to their tracks. And the site supports a wide variety of audio formats, with no restrictions on file size.

SoundCloud also includes some basic social features, with artist profiles detailing professional contact information, much like a musician’s social network, and a follow system that allows you to receive alerts whenever a friend or colleague uploads a track. There’s also a Dropbox that allows visitors to submit songs to you for review - it’s a digital version of the mailed-in demo tape.

Provided SoundCloud can get a foothold in the music industry (which isn’t an easy thing to do), it seems poised for success. There are many other options for media sharing, but SoundCloud has executed extremely well, with an interface that should make sense to even the most technically-challenged users. Major producers and music labels may be hesitant to embrace it in the near future, but there’s a massive market for indie artists and fledgling musicians that will pounce on the service immediately.

Music Business 101: Chapter 6 - Watch a funny movie here