In Digital Music Market iTunes Still No.1

According to Ipsos’ fifth annual TEMPO Digital Music Brandscape study iTunes is the No. 1 fee-based digital music venue. Apple’s music distribution service managed to hold on to its position despite Amazon’s success this year, and RealNetworks’ Rhapsody’s gains, Retailer Daily reports. The object of the study was tracking fee-based online music brands and consumer digital music behaviors. The survey revealed to Ipsos that awareness and use were steady among the most dominant brands this year.

While iTunes grew in terms of awareness, usage, familiarity, and “best brand” mentions, Amazon’s first year also proved strong. According to the study, initial awareness, usage, favorability and “best brand” ratings were comparable to any of the top brands following iTunes. In fact, the online music retailer managed to match iTunes’ user satisfaction level. Rhapsody gained in both aided and unaided awareness, usage and favorability, but not as much as iTunes and Amazon did, of course. For the rest of the brands, total awareness, familiarity, and favorability decreased – not by much, though!

The reason iTunes’ brand strength has not weakened in light of increasing competitive pressure is that, during this same time frame, consumers became more demanding of the digital music services they use. iTunes dominates this market, but that by no means suggests that there isn’t room for innovative competitors with differentiated offerings.

The business side and creativity of music

As you all know having someone in your corner early in your music career to steer you in the right direction is vital, and along with that being confident enough to trust someone to handle your business affairs. But keep in mind what I said earlier, watch your manager like a hawk no matter who they are.


But on the plus side, a manager who has music business and creative vision will see beyond making money from just managing your affairs but know the right A&R people for your style of music. Along with that, session players who are suitable for stage and studio work if your band has to take on hired guns. Along with being able to see what markets are suitable for your genre of music which may not be in North America, But Europe or Asia.


An agent should be separate from a Personal Manager to better enable an agent to concentrate on bookings in clubs, festivals, and bigger venues along with setting up concert dates where a band can start opening for others. Having an agent take care of the money gigs and a manager setting up your music business and taking care of personal affairs, enables you and your band to concentrate on the creative end of musicianship. But musicians should at least have a working knowledge of the business side of music. That way if you and your manager part ways, you and the other band members can take over the business end temporarily.


Learning about music and thinking differently:


Even if you've been in the business for years you can still learn from guitarists who've only been at it for a few months believe it or not. They may play something at a jam session that totally floors you and end up using that little riff or chord structure as an element of your style, by changing it slightly so you're not just stealing it. As well, and I keep saying this, learn as much as you can about the music industry from others and reading magazines such as Canadian Guitar Player Magazine, Canadian Musician and Guitar Player to learn the latest innovations and to constantly educate yourself. Associate yourself with musicians who are serious about their craft and you won't constantly find yourself spinning your wheels in bands that go no where.



I may be getting a bit off topic, but what I'm talking about in this article is imperative to do. I know a lot of music industry people would disagree with me on when to hire a manager and how to run one's music business, but then again you have to think differently guys.

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