As increase in digital music sales slows, record labels look to new ways to make money

Tuesday, August 31, 2010

U2 perform at the King Baudouin Stadium, Brussels. Mark Mulligan, a music and digital media analyst at Forrester Research, said in an interview that “at a time where we’re asking if digital is a replacement for the CD, as the CD was for vinyl, we should be starting to see a hockey-stick growth in download sales. Instead, we’re seeing a curve resembling that of a niche technology.” Image: Bertrand Perron.

Every September, the Apple iPod is redesigned. Last year saw the release of the iPod Nano 5th generation, bringing a video camera and a large range of colours to the Nano for the first time. But as Apple again prepares to unveil a redesigned product, the company has released their quarterly sales figures—and revealed that they have sold only 9m iPods for the quarter to June—the lowest number of sales since 2006, leading industry anylists to ponder whether the world’s most successful music device is in decline.

Such a drop in sales is not a problem for Apple, since the iPhone 4 and the iPad are selling in high numbers. But the number of people buying digital music players are concerning the music industry. Charles Arthur, technology editor of The Guardian, wrote that the decline in sales of MP3 players was a “problem” for record companies, saying that “digital music sales are only growing as fast as those of Apple’s devices – and as the stand-alone digital music player starts to die off, people may lose interest in buying songs from digital stores. The music industry had looked to the iPod to drive people to buy music in download form, whether from Apple’s iTunes music store, eMusic, Napster or from newer competitors such as Amazon.”

Mark Mulligan, a music and digital media analyst at Forrester Research, said in an interview that “at a time where we’re asking if digital is a replacement for the CD, as the CD was for vinyl, we should be starting to see a hockey-stick growth in download sales. Instead, we’re seeing a curve resembling that of a niche technology.” Alex Jacob, a spokesperson for the International Federation of the Phonographic Industry, which represents the worldwide music industry, agreed that there had been a fall in digital sales of music. “The digital download market is still growing,” they said. “But the percentage is less than a few years ago, though it’s now coming from a higher base.” Figures released earlier this year, Arthur wrote, “show that while CD sales fell by 12.7%, losing $1.6bn (£1bn)in value, digital downloads only grew by 9.2%, gaining less than $400m in value.”

Expectations that CDs would, in time, become extinct, replaced by digital downloads, have not come to light, Jacob confirmed. “Across the board, in terms of growth, digital isn’t making up for the fall in CD sales, though it is in certain countries, including the UK,” he said. Anylising the situation, Arthur suggested that “as iPod sales slow, digital music sales, which have been yoked to the device, are likely to slow too. The iPod has been the key driver: the IFPI’s figures show no appreciable digital download sales until 2004, the year Apple launched its iTunes music store internationally (it launched it in the US in April 2003). Since then, international digital music sales have climbed steadily, exactly in line with the total sales of iPods and iPhones.”

Nick Farrell, a TechEYE journalist, stated that the reason for the decline in music sales could be attributed to record companies’ continued reliance on Steve Jobs, CEO of Apple, saying that they had considered him the “industry’s saviour”, and by having this mindset had forgotten “that the iPod is only for those who want their music on the run. What they should have been doing is working out how to get high quality music onto other formats, perhaps even HiFi before the iPlod fad died out.”

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When Jobs negotiated a deal with record labels to ensure every track was sold for 99 cents, they considered this unimportant—the iPod was not a major source of revenue for the company. However, near the end of 2004, there was a boom in sales of the iPod, and the iTunes store suddenly began raking in more and more money. The record companies were irritated, now wanting to charge different amounts for old and new songs, and popular and less popular songs. “But there was no alternative outlet with which to threaten Apple, which gained an effective monopoly over the digital music player market, achieving a share of more than 70%” wrote Arthur. Some did attempt to challenge the iTunes store, but still none have succeeded. “Apple is now the largest single retailer of music in the US by volume, with a 25% share.”

The iTunes store now sells television shows and films, and the company has recently launced iBooks, a new e-book store. The App Store is hugely successful, with Apple earning $410m in two years soley from Apps, sales of which they get 30%. In two years, 5bn apps have been downloaded—while in seven years, 10bn songs have been purchased. Mulligan thinks that there is a reason for this—the quality of apps simply does not match up to a piece of music. “You can download a song from iTunes to your iPhone or iPad, but at the moment music in that form doesn’t play to the strengths of the device. Just playing a track isn’t enough.”

The most recent incarnation of the iPod Nano. While digital music sales have been decreasing, the iTunes store now sells television shows and films, and the company has recently launced iBooks, a new e-book store. The App Store is hugely successful, with Apple earning $410m in two years soley from Apps, sales of which they get 30%. Image: Matthieu Riegler.

Adam Liversage, a spokesperson of the British Phonographic Industry, which represents the major UK record labels, notes that the rise of streaming services such as Spotify may be a culprit in the fall in music sales. Revenues from such companies added up to $800m in 2009. Arthur feels that “again, it doesn’t make up for the fall in CD sales, but increasingly it looks like nothing ever will; that the record business’s richest years are behind it. Yet there are still rays of hope. If Apple – and every other mobile phone maker – are moving to an app-based economy, where you pay to download games or timetables, why shouldn’t recording artists do the same?”

Well, apparently they are. British singer Peter Gabriel has released a ‘Full Moon Club’ app, which is updated every month with a new song. Arthur also notes that “the Canadian rock band Rush has an app, and the industrial rock band Nine Inch Nails, led by Trent Reznor – who has been critical of the music industry for bureaucracy and inertia – released the band’s first app in April 2009.” It is thought that such a system will be an effective method to reduce online piracy—”apps tend to be tied to a particular handset or buyer, making them more difficult to pirate than a CD”, he says—and in the music industry, piracy is a very big problem. In 2008, the International Federation of the Phonographic Industry estimated that 95% of downloads were illegitimate. If musicians can increase sales and decrease piracy, Robert says, it can only be a good thing.

“It’s early days for apps in the music business, but we are seeing labels and artists experimenting with it,” Jacob said. “You could see that apps could have a premium offering, or behind-the-scenes footage, or special offers on tickets. But I think it’s a bit premature to predict the death of the album.” Robert concluded by saying that it could be “premature to predict the death of the iPod just yet too – but it’s unlikely that even Steve Jobs will be able to produce anything that will revive it. And that means that little more than five years after the music industry thought it had found a saviour in the little device, it is having to look around again for a new stepping stone to growth – if, that is, one exists.”

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Fiat Chrysler recalls 7,810 Jeep SUVs for software vulnerability

Sunday, September 6, 2015

File photo: A Jeep Regenade seen parked in Düsseldorf, Germany. The recall in question affects some 2015 Jeep Regenades. Image: M 93.

7,810 Jeep SUVs are to be recalled in order to address a software vulnerability in the vehicles’ entertainment systems which allows the vehicles to be “hacked” — allows vehicle software security to be compromised — Fiat Chrysler Automobiles US (FCA US) said on Friday. This recall affects some 2015 model Jeep Renegades.

FCA US said exploiting the vulnerability would take “unique and extensive technical knowledge, prolonged physical access to a subject vehicle and extended periods of time to write code.” They said there are no known instances where the software vulnerability has caused injury to anyone.

They said owners of affected cars can fix the software vulnerability by inserting a device containing a software patch into a USB port inside the car.

Another 1.4 million vehicles manufactured by the company have also been recalled last month, when white hat hackers discovered they were able to hack and disable the engines of the affected vehicles remotely.

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American pitchman Billy Mays dies at age 50

Sunday, June 28, 2009

Billy Mays. Image: Sinaasappeljuice.

American pitchman and advertiser Billy Mays has died at the age of 50. Mays was probably most known for his pitching of the multipurpose cleaning product OxiClean.

According to reports, Mays’ wife, Deborah, found him unresponsive Sunday morning in their home located in Tampa, Florida. Fire-rescue crews pronounced him dead at 7:45am EDT. The cause of death was heart disease.

According to reports, he was a passenger on U.S. Airways Flight 1241, a flight to Tampa from Philadelphia, that suffered a tire blowout upon landing on Saturday night. He was quoted as saying objects from the overhead compartments hit him in the head, but he did not seek medical treatment. Nobody was reported injured in the incident. Deborah said he did not feel well when he went to bed at around 10:00pm EDT the previous night.

An autopsy is expected to be completed by Monday afternoon.

“Although Billy lived a public life, we don’t anticipate making any public statements over the next couple of days. Our family asks that you respect our privacy during these difficult times,” said Deborah Mays in a statement to the press.

Mays recently began co-starring in a television show on the Discovery Channel called Pitchmen. Mays, along with English advertiser Anthony Sullivan starred in the show where they would ‘pitch’ several products. By the end of the show, two inventors would be selected and be given a chance at selling their product “en masse”.

Mays also pitched sales for several other products including furniture polish Orange Glo, Mighty Putty, the Gopher, Zorbeez, and the cleaning product Kaboom!.

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Israel announces 10 month halt to settlement construction in West Bank

Wednesday, November 25, 2009

The prime minister of Israel, Binyamin Netanyahu, told a news conference earlier today that there will be a ten-month stop in the construction of new settlement housing in the West Bank. The Israeli cabinet approved the move by a margin of eleven to one.

File photo of Israeli Prime Minister Binyamin Netanyahu.

“We have been told by our friends that once Israel takes the first meaningful steps towards peace, the Arab world and the Palestinians will follow,” said Netanyahu following the cabinet’s endorsement of the move. “Well, the government of Israel has taken a very big step towards peace today, and I hope the Palestinian and the Arab world will work with us to forge a new beginning for our children and theirs.”

The freeze was made “out of broad national interests with the aim of encouraging negotiations with our Palestinian neighbours,” he continued. “When the period of freeze ends my government will return to the previous policy of building in Judea and Samaria [the Jewish name for the West Bank].”

“This is a far-reaching and painful step […] We hope that this decision will help launch meaningful negotiations to reach an historic peace agreement that will finally end the conflict between Israel and the Palestinians,” Netanyahu later said.

Under the plan, construction permits for new residential buildings would be put on hold for ten months. The government said that “natural growth” — characterised by the construction of homes by young people, who were raised in the settlements and want to build houses for their own families — would be exempt from the freeze. Parts of the West Bank that Israel annexed to the Jerusalem municipality would also be excluded from the freeze. The building of schools and places of worship, which will enable settlers to live what Netanyahu described as “normal lives”, will also continue.

“We will not halt existing construction and we will continue to build synagogues, schools, kindergartens and public buildings essential for normal life in the settlements,” he commented.

The prime minister added that there would be no change to Israel’s existing policy on the issue of Jerusalem. “Regarding Jerusalem, our sovereign capital, our position is well-known. We do not put any restrictions on building in our sovereign capital,” he said.

Several members of the Israeli cabinet expressed their disapproval at the proposal, with the conservative, ultra-Orthodox Shas party boycotting the cabinet meetings.

“I think it’s a complete crumbling of Netanyahu’s position and is contrary to all of his electoral promises. He promised an end to unilateral steps, and here we see him after only a few months in office giving up, even though there is no reciprocity from the Palestinians,” said the head of the main settler lobby, Danny Dayan, to the Christian Science Monitor. We are 300,000 citizens, living in 150 communities. It is impossible to freeze us. I don’t how it will happen, but we will break this freeze.”

Many Palestinians also criticised the proposal, mainly because East Jerusalem was not included in the settlement freeze. Nabil Abu Rudeineh, a Palestinian spokesman, said to the Wafa news agency that Palestine “rejects returning to peace talks without the complete cessation of settlement activities in the West Bank and Jerusalem.”

Palestinian prime minister Salam Fayyad also rejected the plan. “The exclusion of east Jerusalem is a very, very serious problem for us. We are not looking for the resumption of the process just for the sake of it, for it to falter a week or two down the road,”

Israel captured East Jerusalem from Jordanian control, following Israel’s victory in the 1967 Arab-Israeli War. The Jewish state annexed that part of the city in a move that was not recognized by the international community.

Earlier this week, on a visit to Argentina, Palestinian President Mahmoud Abbas stepped up his campaign to put international pressure on Israel to stop building on lands that Palestinians say are their own. Abbas urged US president Barack Obama, as well as leaders of other nations that support Israel, to press the Jewish state to end its construction of settlements on occupied lands.

Netanyahu has in the past offered to restrain settlement growth, but today’s announcement was the first time that he set a clear timeframe.

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Michigan coaching icon Bo Schembechler dies

Thursday, November 23, 2006

Renowned University of Michigan college football coach Bo Schembechler, died Friday at the age of 77.

Schembechler collapsed at the studios of WXYZ-TV after taping a TV show on the eve of the Wolverines’ No. 1 vs. No. 2 showdown with perennial rival Ohio State. He was taken by ambulance to the hospital where he died at 11:42 a.m. “The electrical part of the heart was working fine but the mechanical part was not working,” said Dr. Shukri David, the head of cardiology at Providence Hospital. “The heart was sending signals to the heart muscle to contract. The muscle was not responding.”

Schembechler had a heart attack on the eve of his first Rose Bowl in 1970 and another one in 1987. He had two quadruple heart-bypass operations, and doctors implanted a pacemaker to regulate his heartbeat after he became ill during a taping at WXYZ on Oct. 20.

“This is a tremendous shock and an irreplaceable loss,” University of Michigan president Mary Sue Coleman said at a news conference at Providence Hospital in Southfield, where the coach died.

The seven-time Big Ten coach of the year compiled a 194-48-5 record at Michigan from 1969-89. Schembechler’s record in 26 years of coaching was 234-65-8.

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South Korean workers protest against labour laws

Sunday, November 8, 2009

Thousands of workers in South Korea have staged protests to demonstrate against plans by the government to alter the labour laws in the country.

According to Federation of Korean Trade Unions (FKTU) figures, up to 150,000 people attended the protests, held on Saturday in the capital of Seoul, although the police estimated the smaller figure of 60,000.

Under the government’s new plans, it will start enforcing laws in 2010 to stop companies from giving wages to full-time representatives of unions, and will allow multiple unions for each individual workplace. Such plans have been delayed for a decade due to opposition from labour groups.

“We, the Federation of Korean Trade Unions, are here to defend the labour unions and labour movement in this land. We will thwart the government’s policy by mobilising every means possible. If necessary, we will stage a general strike,” said spokesman for FKTUK, Kang Choong-ho.

Riot police were present at the demonstrations; however, it was reported that there was no violence or clashes, and protesters later dispersed peacefully.

Media contacted the South Korean Labour Ministry seeking comment regarding the rally, but the Ministry did not immediately respond.

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Pigs fed contaminated pet food; meat sold to consumers

Saturday, April 21, 2007

The contaminated pet food that was recalled after it was found to contain a harmful industrial chemical called melamine, has been used as pig feed at a hog farm in Ceres, California, located in the United States.

At least seven urine samples taken from pigs at the American Hog Farm, were tested and the results came back positive for the chemical melamine. At least three samples from the feed used to feed the pigs were tested and those results also came back positive for melamine.

Reports say that at least 100 pigs from the farm were slaughtered and sold from the “custom slaughterhouse” that is operated on the farms site. The meat is then sold to different places as “individual orders” and is not sold commercially for supermarkets. The affected meat goes as far back as April 3 and the company is asking anyone who bought it to return the product or throw it out.

Despite the sale, California State Veterinarian Dr. Richard Breitmeyer says that no evidence has turned up to suggest that the meat that was sold entered the human consumption chain.

“There is no evidence that any products from this farm have entered the food supply. The risk to people right now is minimal,” said Breitmeyer who also said that pet food from bags or boxes that have been torn or ripped, is sometimes reused as feed for small farms.

California’s Department of Food and Agriculture investigated the company and found that it had received the contaminated pet food from Diamond Pet Foods, which supplies retailers with the pet food Natural Balance, one of the over 100 recalled brands of pet food. Authorities then quarantined the farm to further investigate the situation.

At least 1,500 pigs are on the farm.

As of the moment, no other farms are being investigated, but officials say that other farms may also be affected.

“In the course of our investigation, we may find similar situations in other parts of the country,” said head of the Center for Veterinary Medicine at the U.S. Food and Drug Administration, Stephen Sundlof.

The FDA is continuing to investigate and Sundlof says that there is a possibility that the contamination of the pet food may be intentional.

“It would certainly lend credibility to the theory that it may be intentional. That will be one of the theories we will pursue when we get into the plants in China,” said Sundlof.

Last month, Menu Foods was the first to recall all of its 60 million products of dry and wet dog and cat food after pets began to fall ill and in some cases died of kidney failure. The FDA found melamine in samples of Menu Foods pet food and in samples of wheat gluten, imported from China, which was used as an ingredient.

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Widespread looting blamed for disrupted rescue efforts in New Orleans, Louisiana

Thursday, September 1, 2005

The Mayor of New Orleans, Ray Nagin, has ordered most of the local police force to stop rescue efforts and shift their efforts to prevent looting [1]. At the same time, FEMA has reportedly been blocking aid shipments into the city on the grounds that it is too dangerous.

A rescue helicopter attempting to retrieve stranded people from New Orleans’ Superdome stadium was reportedly shot at; but this has not yet been confirmed. A member of the National Guard was reportedly shot, but was not seriously injured. Official reports say that one New Orleans police officer was shot in the head, but was expected to survive. Other reports say that police stranded on the roof of a hotel were being fired upon by looters in the streets. Meanwhile, reports from many blogs and grassroots journalists about police officers looting cars and stores have started to filter up to the mainstream media [2].

Food, diapers, and other supplies are the target of most looters. Some are reportedly taking non-essential and luxury items, such as TVs and computers. Reportedly, gun and pawn shops are also a popular target for looting.

Earlier today, buses were taking the most vulnerable away to the state capital of Louisiana, Baton Rouge. Evacuees in the Superdome are also being moved by bus to the Astrodome in Houston, Texas.

US President George W. Bush, in an interview on ABC television, condemned the looting, saying “I think there ought to be zero tolerance of people breaking the law during an emergency such as this.”

A hospital in Gretna was evacuated after a supply truck carrying food, water and medical supplies was stopped at gunpoint. Spokesman Stephen Campanini estimated there to be approximately 350 employees in the hospital, along with between 125 and 150 patients. Campanini said, “There are physical threats to safety from roving bands of armed individuals with weapons who are threatening the safety of the hospital.”

Despite this, some of the other rumors of looting have proven to be false. One of the most prevalent was the story that armed looters laid siege to the Children’s Hospital. The Times-Picayune reported that this story was false.

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Pope attacked during Christmas Eve Mass

Saturday, December 26, 2009

Pope Benedict XVI circa 2006

A woman attacked Pope Benedict XVI during Christmas Eve Mass at St. Peter’s Basilica in Vatican City, causing a disruption to the ceremonies. The pope was unharmed and got to his feet and completed the Mass, although afterwards he was taken to a local hospital for evaluation. French Cardinal Roger Etchegaray also fell down and broke a leg. The accused assailant, Susanna Maiolo, is a 25-year-old Swiss national from the Ticino region, is reported to have psychiatric problems.

Susanna Maiolo also attempted to attack the pope during last years Midnight Mass, although she was stopped by security. During both assaults it appears that she was wearing the same red sweater. Vatican spokesman, Rev Federico Lombardi said that “She is known to the Vatican but she was never thought to have been of any serious danger to the Holy Father.”

Despite the attack the pontiff decided to continue the midnight mass services. Although noticeably shaken, he still delivered the traditional “Urbi et Orbi” speech. In this years speech he mentioned the current financial crisis, conflicts in Africa and Israel, and the state of the Christian minority in Iraq.

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Ryan Giggs named BBC Sports Personality of the Year

Monday, December 14, 2009

Welsh footballer Ryan Giggs was named as the 2009 BBC Sports Personality of the Year in a ceremony Sunday night. The 36-year-old Manchester United and Welsh international player has won a record eleven Premier League titles in his career, and made over 800 appearances for his club.

Giggs holding the Premier League trophy in 2008

The award is given in December each year to a British sportsman or woman, and is voted for by the public. Giggs is only the fifth footballer to win since the award started in 1954, the most recent being David Beckham in 2001.

Formula One driver Jenson Button was runner-up, and heptathlon champion Jessica Ennis came in third.

Giggs said that winning came as a shock. “I grew up watching this programme. To see the people that have won it and to be here is unbelievable,” he said in his acceptance speech.

“I am playing for the greatest manager that has ever lived and I’m playing for the greatest club,” Giggs said. “Perhaps I’ve become more appreciated as I have got older. It’s unusual for a 36-year-old to be playing with a team like Manchester United for 20 years but I am enjoying it and long may it continue.”

Through his career United is the only club Giggs has played at. This year he made his 800th appearance and scored his 150th goal, and in April he also won the PFA Player Of The Year award.

Seve Ballesteros won the event’s Lifetime Achievement award. The Spanish golfer, who is suffering from a brain tumour, was unable to attend the event, but received a standing ovation. His award was presented at his home in Padrena by fellow golfer José María Olazábal.

“It’s a pity I’m not there. I’m very sorry, I know I’m missing a good show, thank you very much to everyone,” Ballasteros said.

15-year-old diver Tom Daley won Young Sports Personality of the Year for the second time, as well as being one of the ten contenders for the main award. “It’s been a good year for me and I would just like to thank everyone who has helped me,” Daley said.

Comedian Eddie Izzard received a special award for his contributions to the charity event Sport Relief. Earlier this year he completed 43 marathons across the United Kingdom in 51 days, running a total of 1,100 miles. Izzard said that he decided on the challenge as “a health idea”. He trained for only five weeks before setting out.

“Everything was painful. People asked me if I enjoyed the running, but I enjoyed the stopping! I staggered, I ran and I crawled,” he admitted when accepting the award. His efforts netted over £200,000 for charity.

The awards were presented at the Sheffield Arena, in front of 11,000 people.

Sports Personality of the Year Ryan Giggs, footballer
Team of the Year England cricket team
Coach of the Year Fabio Capello, England football coach
Young Sports Personality of the Year Tom Daley, diver
Overseas Sports Personality of the Year Usain Bolt, sprinter
Helen Rollason Award Major Phil Packer, for charity work
Sports Unsung Hero Doreen Adcock, swimming coach
Special Award Eddie Izzard
Lifetime Achievement Seve Ballesteros, golfer
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