On August 1, 1981, a cultural and entertainment juggernaut flickered onto TV screens and rocketed out of obscurity with these six words: "Ladies and gentlemen, rock and roll."
With that, the iconic cable network, MTV, was launched and a popular entertainment category--music videos--was born. Now, 28 years later, MTV has largely abandoned the genre and the record industry is preparing for the debut of a possible successor.
On Tuesday, video start-up Vevo is scheduled to launch. Supported by three of the top four largest record companies (sources say EMI has agreed to provide content to the site) and backed by the technological muscle of YouTube, Vevo is a Web site that will feature videos from many of the world's biggest recording stars, including U2, Cold Play, the Black Eyed Peas, Lady Gaga, Avril Lavigne, Bruce Springsteen, and Pearl Jam, according to the site's backers.
The move comes three years after Google's YouTube began proving that the masses still love music videos. Professionally made music clips are by far the most popular fare on the Web's No. 1 video site, accounting for 14 of the 25 most viewed clips ever. The labels involved with Vevo boast a combined total of about 15 billion views on YouTube.
Much of the music industry, including a score of independent labels that have recently signed on to the project, think it's time for music videos to take the next step in their evolution. They want a standalone site packed with high-definition clips from marquee acts.
Don't look for any user-generated content on Vevo, according to Doug Morris, chairman and CEO of Universal Music Group, the man who came up with the idea for the service. He said he wants to offer music fans as well as advertisers a more polished digital stage. That's one of the main reasons the venture was built, to charge advertisers premium rates in exchange for premium content.
Another motivation for building the site was to give the music industry a greater say in what happened to its content.
In an interview with CNET last week, Morris made no bones about the fact that by launching Vevo, the music industry is serving notice: no longer will middlemen or third parties profit from the labels' video content without giving up a fair share.
"What we're really doing is taking back control of everything," said Morris, who operates the largest of the top four recording companies. "This is us taking control of our future...Vevo enables us to provide consumers with about 80 percent of all the music videos in the world. So, this is really like MTV on steroids. We're starting with that kind of audience. But now we're in control of it. We don't have to go through a middleman anymore."
The problem as defined by the music sector started with MTV and extends all the way to YouTube.
When MTV was created, everyone told the labels not to worry about getting paid because the cable channel helped promote artists. "It was good exposure," they were told. The experts said the same thing in 2006 when YouTube started to emerge as one of the Web's favorite music sources. For a long time, the record companies seemed happy to go along, even as MTV built a financial empire from the videos.
But this time around, the music industry can't afford not to be the one who cashes in. The rest of the business is in decline, as CD sales shrink and profit margins on downloads are sliver thin. Record execs have been criticized for not finding new revenue models, so that's what they are trying to do. They believe there's new money to be had from the videos, even as they readily acknowledge that getting to it hasn't always been easy.
Morris remembers seeing a video from a Universal artist posted to Yahoo a couple of years ago and asking one of his employees what the portal paid for it. The exec told Morris the video was considered promotional and Yahoo paid nothing.
Promoting what? The video was five years old and Yahoo was pocketing the ad money without sharing it with the creators, Morris recalled telling the employee.
"I then called up (former Yahoo CEO) Terry Semel," Morris said. "And I said, 'Terry, we want to be paid.' Semel replied 'Absolutely not.' Then, we took our videos down from Yahoo and AOL and their viewership declined, at which point they came back and they paid us. They paid us a percentage of a cent for each view."
Morris isn't implying that Vevo's music clips will no longer be used to promote music or that Vevo plans to charge to watch videos. No, they will still be offered to viewers free of charge.
What is changing is that music videos, which often cost tens of thousands of dollars to produce, won't be treated as loss leaders anymore--not in this economic environment.
Nonetheless, Vevo faces plenty of challenges.
Nobody has proven whether advertisers are willing to pay top dollar for online videos, even professionally made music videos. There's also the question about whether interest in the genre will wane just as did with previous generations of music fans. After all, MTV switched to reality shows for a reason, no?
Rio Caraeff, Vevo's CEO, says the music video is only one of the site's features. The obligatory playlists will be available but music lyrics will also be offered. Visitors will have more access to their favorite performers than ever and Vevo's video quality will be as much as three times as what is typically available online.
All these upgrades were absolutely necessary to draw the kind of top advertising dollar that label honchos seek, according to Caraeff. He said typical ad rates for Web video run somewhere between $3 and $8 for every thousand views. Vevo's mission is to attract rates of $25 to $40.
"Successful was how we felt about YouTube, in terms of the shear popularity of our programming," Caraeff said. "But what we felt was that there could be a better way to drive a business around it. Advertisers had some reticence and some reluctance to fully embrace music videos on YouTube. We felt that there was work to be done to restore the premium luster and really create a better experience for advertisers."
In the short run, look for Vevo to be an online music store where downloads are sold as well as the merchandise created by artists, such as clothes and perfumes. In the long run, a music-video subscription service could be rolled out, one that offers full-length concerts.
"I do believe we will have a subscription service where we will stream live concerts from all over the country to viewers for a monthly fee," Morris said. "This is futuristic. We have not built this yet, but we're working on it."
Facebook has formed a safety advisory board comprised of five Internet safety organizations to consult with the social-networking site on issues related to online safety, the company announced Sunday.
Facebook said it plans to meet regularly with board members to review the existing safety resources it provides its users, develop new materials, and seek advice on general safety best practices.
"We believe that the only way to keep kids safe online is for everyone who wants to protect them to work together," Elliot Schrage, Facebook's vice president of global communications and public policy, said in a statement. "The formation of a board to advise specifically on safety issues is a positive, innovative and collaborative step towards creating a more robust safety environment, and we are thrilled that such a well-respected, trusted group of organizations has joined us in this endeavor."
Facebook cited the new board as being part of an effort that includes cooperating with state attorneys-general to rid the social-networking site of registered sex offenders. The board's formation comes on the heels of New York Attorney General Andrew Cuomo announcing Tuesday that more than 3,500 sex offenders from his state had been purged from Facebook and MySpace.
The five organizations on the board are Common Sense Media, ConnectSafely, WiredSafety, Childnet International and The Family Online Safety Institute.
Apple has acquired struggling streaming music service Lala, an Apple spokesman told CNET News on Sunday.
Apple spokesman Steve Dowling confirmed the acquisition but did not disclose the terms of the deal or what the company intends to do with the 4-year-old Lala. The company scans users' hard drives and creates a duplicate music library that owners can access from Web-enabled devices. The company also sells songs for a dime each.
CNET News reported Friday that Apple was close to finalizing the sale and that one of the reasons Apple was interested in acquiring Lala is to obtain some of the company's payment and fulfillment systems, which a source with knowledge of the talks said could save Apple money.
However, it's unclear whether Apple may also be planning to launch some kind of streaming-music or so-called cloud storage feature.
The New York Times reported that Apple was approached by Lala after the company concluded that reaching profitability was unlikely. All Things Digital reported that Lala was acquired for a sum that meant a loss for its investors.
If things keep going this way, pretty soon there won't be any digital music space to cover. Many of the players around a year ago are gone: Ruckus and SpiralFrog closed. MySpace is gobbling up iLike and soon Imeem. Apple got Lala.
The frontrunners now appear to be Pandora, Amazon, Spotify, MySpace Music, Last.fm (owned by CBS, parent company of CNET) and Zune's Marketplace.
To this point, not one of them has generated the kind of market share to challenge iTunes.
There's a wonderful Borders bookstore in the middle of London's Oxford Street. Or at least there was. I went there in September and suddenly it was no more. Indeed, the U.K. arm of Borders recently reached for a form of bankruptcy protection.
So how interesting that one of the greatest successes in online book retail, Amazon, is rumored to be troubling real estate agents in its search for retail premises in the U.K. According to London's impeccable Times, Amazon is looking for very fine locations in order to, well, fulfill orders.
Perhaps some might find it a touch amusing that such a dot-com icon has decided to trouble the physical world. However, it appears that the British are suffering from frightful attacks of impatience while waiting for their erudite tomes, wickedly catchy tunes and other more substantial purchases to arrive by ponies that may be less than express.
The Times says that Argos, a U.K. catalog retailer of, oh, useful and useless stuff, has 18 percent of its online orders picked up in store. Indeed, the company believes that 50 percent of its holiday television sales will be transacted in this manner.
Amazon's customer service has become so progressive that its presence in American, as well as British, malls might serve as something of an inspiration to the more complacent establishments.
And now that Amazon seems to be able to sell you everything from woodworking equipment to vacuum cleaners, it surely puts extra pressure on postal services and that nice man in brown who comes to my house and always looks tired.
What a revolutionary concept it would be to go to a store and know that the thing you want is actually there. It just might catch on.
You may need a little Xanax after observing this. Equally, you may never want to take any drugs ever again.
For Quentin Tarantino, he who makes movies that contain blood, gore, and many homages to Asia, recently shot a TV spot for the Japanese cell phone company Softbank.
As well as an astute grasp of Japanese, you need to have a very firm grasp of existential philosophy to fully appreciate this spot. Without an astute grasp of Japanese, I can tell you that this is the latest in a series of spots that features the White family.
Just to give you a sense of how this ad follows in the rumbunctiously absurd tradition of much Japanese advertising, the regular members of the White Family are Me, a Softbank saleswoman, Older Brother, played by American actor Dante Carter, Mom, and Otousan, the talking dog who is, in fact, Dad. (Yes, I am entirely sober.)
I will leave you to create your own version of what is going on here. Though, to my untrained, pained eyes, the story seems to concern Tarantino, whose character is Uncle Tara-chan, and his parading a live dog as some kind of competition to Otousan, the plastic pooch who is, in fact, Dad.
The blond lady near the end of the spot appears to be playing Tara-chan's wife and, as so many wives of famous Americans these days, she doesn't appear happy with her husband. Though she is screaming down the phone rather than wielding a three-iron.
I have embedded the short and long versions of the ad, just because the long version doesn't seem to make the short version any more understandable. Several people made similar comments about Tarantino's "Kill Bill" series.
However, Brad Pitt has already appeared in Softbank spots, so one must suppose that the most understandable part of Tarantino's performance is the fee.
(Credit:
Screenshot by Leslie Katz/CNET)
If orangutans can post photos to Facebook, then toddlers can certainly Twitter.
And now they have a prototype gadget for doing that--the Twoddler, a tricked-out Fisher Price Activity Center with pictures of family members and friends attached and an Arduino board inside.
When a child presses a certain picture for a select amount of time, software captures sensor data from the activity center and selects and sends a predefined text related to that data.
For example, when Bobby plays with Mom's picture for more than three minutes, a Twitter message will post to Bobby's personal Twitter account saying, "@mommy_bobby Bobby misses mommy and looks forward playing with her this evening" (or as the messages get more refined and personalized: "@mommy_bobby Bobby is having a temper tantrum and wants mommy home now."
Twittering toddlers can also communicate with their social-networking peers by pushing buttons that generate effects, such as colored, blinking lights, on their friends' Twoddlers (a scenario that could easily turn day-care into a disco). Twoddler is connected to the Internet and to other activity centers using the home area networking standard ZigBee.
Twoddler emerged from a course on mobile and pervasive computing at Belgium's Hasselt University. Earlier this year, Twoddler beat out around 40 submissions for the top prize at the 09 Innovative and Creative Applications competition, where judges called it a "good, well-implemented idea, with a lot of potential that allows people/children that are not capable of verbal communication to communicate through an inventive combination of hardware and software."
As we mentioned, Twoddler is just a prototype for now, so don't expect to get an endless stream of tweets from your overexcited 3-year-old just yet.
INCA Award 2009 WINNER: Twoddler from IBBT on Vimeo.
(Via Engadget)
DARPA says the balloons will be in readily accessible locations and visible from nearby roads.
(Credit: DARPA)Update at 10:56 p.m. PST: The MIT Red Balloon Challenge Team (PDF) has won the competition.
You may have heard about that DARPA balloon challenge, where the first team to identify the latitudes and longitudes of 10 moored weather balloons across the continental U.S. wins $40,000? Well, as of Saturday, the balloons are up in the air. If you don't have a team yet, here are some places to report a sighting.
What's cool is how most of the balloon-hunting communities I've found are working toward selfless goals. Both DARPABalloon.com and this MIT group are proposing to gather a huge number of participants, and rather than give each contributor a measly cut, the 40 grand will be donated to charity.
DARPA is holding its Network Challenge to mark the 40th anniversary of the Internet. The competition is meant to explore the roles the Internet and social networking play in the timely communication, wide-area team-building, and urgent mobilization required to solve broad-scope, time-critical problems.
So, good luck to everyone involved. If you happen to stumble across one this weekend, consider reporting it to a group that's playing for charity. Just make sure it's not a red balloon some kid let go of first.
This story originally appeared on Gizmodo.
Two days ahead of a new round of planned protests against Iranian President Mahmoud Ahmadinejad, Internet access in the nation's capital is largely down, according to Agence France Presse.
During the post-election unrest in June, Twitter became a main avenue for Iranians' communication with the outside world.
(Credit: Twitter)Sources close to Iran's technical services say the cut to Tehran's outside access was the result of "a decision by the authorities" and not a technical breakdown, the news agency reports. Telecommunications ministry officials were unavailable for comment.
Protests are scheduled Monday to mark Student Day, the anniversary of the December 6, 1953, killing of three of University of Tehran students by Iranian police. The students were protesting then-U.S. Vice President Richard Nixon's visit, which followed the CIA-sponsored overthrow of Iranian Prime Minister Mohammad Mosaddeq.
As the nation gets ready to mark the annual day of remembrance, several Web sites have reported that Iranian opposition groups are preparing to hold fresh protests against Ahmadinejad. Scores of arrests have already been reported in advance of Student Day.
Since widespread post-election upheaval broke out in June amid charges of government vote-rigging, Internet lines, texting, and even mobile phone service have been cut or scrambled. But the weekend's Internet outage marks the first such occurrence to take place this far in advance of protests, AFP reports.
I had a fascinating conversation with MediaNet CEO Alan McGlade on Friday morning. Unless you're deeply involved in online music, you probably don't know MediaNet, but it's the back end powering a lot of music services you might have used, including MOG's subscription service that launched earlier this week, as well as Microsoft's excellent Zune Pass subscription service and iLike's online music marketplace. (MySpace acquired iLike in August, and in November, links to iLike's service began appearing directly in music-related search results on Google.)
Fox Interactive used MediaNet's technology to embed this list of Aerosmith songs in a story about the band. Readers could then listen to a sample or buy the song.
(Credit: MediaNet)They've also got more history in online music than just about anyone. The company started off as MusicNet, with part-ownership by three of the then-Big Five major labels: BMG, EMI, and Warner. They powered RealNetworks' music initiatives before RealNetworks bought Rhapsody. They powered Yahoo Music. They powered MTV's online music store.
These early stores went nowhere. Content owners insisted on digital rights management (DRM) restrictions, which meant that content from these stores had restricted use rights and couldn't be played on every device--including, in most cases, Apple's iconic iPod. Setting up a store using MediaNet's platform often took 18 months and significant technical expertise. In the meantime, Apple focused on a dedicated online store for its own devices, and completely dominated the market for music downloads.
But the landscape has changed. Labels don't want to be beholden to Apple. They no longer insist on DRM for single-song downloads, and have realized that the more outlets there are for their digital music, the more customers they'll reach, and the more sales they'll have. (Amazing it took this long to figure out.) MediaNet is, in my opinion, incredibly well positioned to take advantage of this sea change.
In October, the company released a set of technologies called MN Open that make it almost trivially simple for companies to add a wide variety of music consumption options to their Web sites. Sure, companies can still use MediaNet to build an end-to-end service like MOG.
But say you're Fox Interactive and want to make a story about Aerosmith more engaging. Using a MediaNet component, Fox created a link for the first mention of the word Aerosmith that took users to a page with more information about the band, and links to play and buy some of their popular songs. Fox also posted Aerosmith songs in a box directly on the story page.
MediaNet handled all the heavy lifting: licensing the music, streaming the samples, and fulfilling the transaction. Fox kept its brand and design throughout the process, and users didn't have to leave the site to buy the song. Best of all for Fox, it didn't have to make any up-front payment to use MediaNet's technology. Instead, MediaNet takes the customary cut of any song purchased through the site (about 60 percent, if it's anything like Apple). The model's the same for sites that offer free ad-supported streams or subscriptions--MediaNet takes a portion of each transaction, then handles payment to the content owners.
Now imagine this kind of integration on sites for radio stations, record labels, or your favorite bands. Imagine your ISP or cell phone carrier offering you a music subscription service bundled with your Internet service or smartphone. In this world, users won't have to go to iTunes or Amazon MP3, or subscribe to Rhapsody (or MOG for that matter). Music will be available for consumption everywhere. And content owners will get paid regardless of where users buy it.
According to McGlade, it's already happening--he said MediaNet is adding about one new distributor per day, and has already got about 50 customers using the Open ML platform. One site, GetPlaylists.com, was able to add playable song samples and downloads-for-sale in only two days with Open ML, according to McGlade.
Thanks to this upsurge, the company--which is owned by a private equity firm and no longer has any direct ownership affiliation with the major labels--has recently crossed over into profitability. A rare situation indeed in today's online music landscape.
It's a great vision, and something that Microsoft, the original platform company, could have done. But Microsoft spent years pushing the Windows Media Platform, which made heavy use of Microsoft codecs and file wrappers (instead of MP3s, which were becoming the industry standard). Microsoft also spent a lot of effort trying to enable the labels' DRM demands--for example, by building a platform to enable subscription-based downloads to be transferred to portable devices. Then, just as the labels were getting ready to abandon DRM, Microsoft basically gave up pushing Windows Media as a general-purpose platform for distributors and device makers, and instead started trying to mimic Apple's end-to-end software+service+device with the Zune strategy.
Talk about an opportunity lost! Instead of struggling along with something like 2 percent of the digital media player market, Microsoft could have ended up powering the music technology on thousands of Web sites.
Another aside: while MusicNet offers a lot of flexibility for distributors--downloads, samples, free streams, or subscriptions are all supported--McGlade is most bullish on subscriptions as the digital business model of the future. He admits that old fogeys accustomed to CDs and vinyl will have a hard time giving up the concept of ownership, but suggests that today's teenagers don't care--they want music on demand from any device, any time, in any location, and don't need to have the files physically present. McGlade thinks that subscriptions will have the best chance of taking off if they're bundled with some other product, like ISP service.
Scoff all you want about subscriptions, but the concept keeps coming up: music industry expert Donald Passman also believes they're the best chance for the music industry to thrive in the future. Even Apple finally seems to be bending to the idea of streaming music with its acquisition of Lala, although Lala isn't a straight subscription service, but more of an online music locker with some free streams, plus fee-based individual streams.
Is this man unbeatable in the digital-music sector?
(Credit: Ina Fried/CNET News.com)Update 6:21 p.m. PST: The New York Times and Wall Street Journal are reporting that Apple and Lala have struck a deal.
Apple acquired Lala on Friday, unlikely offering much for the streaming-music service.
Sources with knowledge of the discussion told me Apple is interested in bringing some of Lala's engineers onboard. According to the sources, Apple is impressed by Lala's technology. The 4-year-old Lala scans users' hard drives and creates a duplicate music library that they can access from Web-enabled devices. The company also sells songs for a dime each.
I posted a story on Friday about the acquisition talks. Apple declined to comment on "rumor and speculation" and a Lala spokesman did not respond to an interview request.
Over at The New York Times, Brad Stone posted a report citing sources who also said Apple had a special interest in obtaining Lala's engineering talent. But the Times also added this:
"The talks (between Apple and Lala) originated when Lala executives concluded their prospects for turning a profit in the short term were dim," Stone wrote. "(Lala) initiated discussions about a potential investment with Eddy Cue, Apple's vice president in charge of iTunes."
That Lala was struggling to turn a profit is consistent with the kind of bleak news that has come out of digital music the past year. Many of the newer and experimental business models, such as ad-supported music, have flopped. The only reasonable question now is how much longer will this shakeout continue?
We saw Ruckus falter and close in January. We saw SpiralFrog flameout spectacularly in March. In August, MySpace picked up iLike, and sources said that MySpace acquired Imeem last month, but the news has not been announced.
What seemed to be different about Lala is that the company had received positive reviews from the music labels for a long time. Executives at some of the biggest recording companies have told me in the past that they respected Lala's management and its focus on the bottom line. This spring, label execs said they saw some encouraging signs after Lala had revamped the service for seemingly the umpteenth time. It initially made a name for itself by trying to enable users to swap CDs over the Internet. It never went anywhere.
Then came the announcement in October that Google would offer Lala's music to users searching for information on music acts. That could mean a boon said some of the pundits. Apparently, by that time, Lala's fate was sealed.
So, we're kind of right back where we started. The only proven winners in digital music are Apple and download sales.
Michael Robertson, the serial entrepreneur and MP3.com founder, told me earlier this year that it doesn't matter if Imeem, Lala, and their competitors went away because there is always a new crop of players longing to jump into the music industry.
"It's sexy," Robertson said.
In that case, who's up next? Let's see your ideas and technology. Better bring a lot of nerve.
