September 20, 2006

So, let's say a newfangled recommender takes off. What are the implications? First, the large-scale "depackaging" already initiated by the advent of the iPod would be expedited. Bands would spend less time on sequencing since a computer would be combing songs for individual characteristics that have nothing to do with the rest of the record. Musical content would "float" in libraries, waiting to be scooped up by a recommender.

Therein lies a rarely discussed part of digital music's appeal. Sure, the Internet has revolutionized the spread of information and all that high-minded stuff, but its combination of reach and anonymity also makes it the greatest enabler of guilty pleasures ever invented. Indulgence is just a click away, and nobody needs to know, except you and some server somewhere. (At least you hope; iTunes and other legal digital-music services promise to guard your privacy.)

September 19, 2006

Revenues from prepaid cards and promotions are deferred and then recognized as (i) tracks are downloaded by the end users, (ii) if redeemed for a subscription, over the subscription period or (iii) when Napster has no further obligation to provide services or refund the associated prepayments ("prepaid card breakage"). As of June 30, 2006, we have not had sufficient historical experience to estimate prepaid card breakage rates, so we recognize prepaid card breakage when our obligation to honor the redemption of the prepaid cards or promotions has legally expired. During the first quarter of fiscal 2007, based on the resolution of certain legal restrictions associated with previously sold prepaid cards, we recognized $2.2 million of prepaid card breakage, of which $1.9 million relates to cards that were subject to expiration based on their term prior to 2007 but had other legal restrictions that precluded our recognition of revenue. The remaining $300,000 was related to cards that expired during the first quarter of fiscal 2007.

September 18, 2006

There's no mystery here that what they've done is worth copying and improving on," Eli Harari, chief executive of SanDisk, says of Apple's approach to digital music.

Despite Apple's imposing lead, its rivals believe they may be able to win over consumers -- including large numbers of people who haven't already bought digital music players -- by offering products with features that aren't currently available from Apple. For example, Microsoft's new digital music device, Zune, has the ability to wirelessly share music, something iPods don't currently do. RealNetworks, for its part, plans to load SanDisk players with 30 hours music from artists like Coldplay, Jay-Z and the Rolling Stones (the songs can be played for 30 days, or longer if users become paying customers of Rhapsody).

The agreement, to take effect before the end of the year, illustrates YouTube's push to tackle the thorny copyright issues facing it and other sites that allow users to upload video content. YouTube is developing an automated system to digitally identify copyrighted music and video uploaded by its users. It will then give a percentage of revenue from any ads that appear alongside those videos on YouTube's Web site, if their owners have agreements with YouTube and opt for that rather than having the videos removed.

The closely held San Mateo, Calif., startup said it would extend that system to other copyright owners beyond Warner Music.

"Warner Music Group becomes the first media company working with us to truly embrace the power of user-generated content and allow users to use their content in legal ways, and be able to benefit by generating revenue," said YouTube Chief Executive Chad Hurley.

September 15, 2006

Labels: 1980s, 1983, Apple, Friday Flashback Fun, IBM