Music downloads are on the decline, and many music executives agree that streaming services like Pandora and Spotify are likely a major cause. So far, 2013 has seen 1.01 billion track downloads in the U.S. — four percent less than this time last year. Album downloads are up two percent, however, bringing the total downfall to one percent. Streaming services, meanwhile, have seen a revenue increase of 59 percent since last year. Continue reading Music Downloads on the Decline Thanks to Streaming Services

Representative Melvin Watt (D – North Carolina) introduced the Free Market Royalty Act this week, which would allow record companies and artists to collect royalties when their songs are played on the radio. The bill would change licensing for broadcast radio and online services, and stations like Pandora would have to negotiate with rights holders. This bill has transformational potential, for while songwriters and music publishers receive compensation on the radio, the artists themselves do not. Continue reading Democratic Congressman Proposes Free Market Royalty Act

When Google’s $35 Chromecast streaming media player launched in July, it only supported Netflix, YouTube, Google Play Movies and Google Play Music. Google added support for Hulu Plus yesterday, the first new partner since Chromecast made its debut. Other apps are reportedly going to be supported as well, although formal announcements have not yet been made. Pandora and HBO Go are two services rumored to be integrated in the future. Continue reading Google Chromecast Streaming Media Fob Adds Hulu Plus App

Pandora Media, provider of streaming online music, won a legal victory on Tuesday in its ongoing battle with the music industry involving licensing and royalties. A federal court ruled that the American Society of Composers, Authors and Publishers cannot stop Pandora from licensing all the music in their catalog. The service’s attempts to reduce its costs have made it a target in the music industry, but the larger effect of the ruling remains unclear. Continue reading Federal Court Rules Pandora Can License Music for Streaming

Clear Channel Communications announced a deal late last week with the Warner Music Group through which Warner’s acts will collect royalties when their songs are played on Clear Channel’s 850 stations. This will mark the first time that the music label and its acts — which include Bruno Mars, CeeLo Green, Coldplay and Green Day — will collect payments from Clear Channel. In exchange for the deal and promotion for its acts, Clear Channel will receive a favorable rate for online streaming. Continue reading Clear Channel-Warner Deal Underlines Digital Licensing Issues

Microsoft is now offering its Xbox Music service on more devices and via the Web. This is an expansion of the limited compatibility that the service offered at its initial release about a year ago. It brings familiar digital music services and software into a combined, single service. Xbox Music’s new platform support comes as Google, Apple and others are entering the music-streaming marketplace, with Amazon developing its own music-streaming devices. Continue reading Microsoft Now Offers Xbox Music Service on More Devices

A recent study from IPG Media Lab and digital advertiser YuMe indicates that consumers remember ads better after viewing them on tablets as compared to smartphones, PCs or TVs. The study suggests that the improved ad recall is because viewers tend to watch videos on tablets when they’re at home and they do not multitask the way they do when watching TV. In an unrelated poll of ad execs, IAB found that a majority plan to shift their budgets from TV to digital video ads. Continue reading TV Advertising Feels the Heat of Video Ads on Mobile Devices

Apple plans to launch iTunes Radio next month along with brand partners including McDonald’s, Nissan, Pepsi, Procter and Gamble, and possibly others. Apple’s new offering plans to compete with current streaming radio services such as Pandora. While the launch partners will benefit from exclusivity until the end of 2013, iTunes Radio will later be available to other advertisers. Apple also hopes to generate revenue by providing users with the option to purchase songs played via the service. Continue reading Apple Outlines Advertising Strategy for iTunes Radio Partners

Although the streaming music market is still relatively new, there is considerable consumer demand for a digital radio-style option. While jukebox services such as Spotify and music stores from Apple and Google receive a significant amount of attention, the market for Pandora has been steadily growing. Pandora continues to promote its unique radio-style approach as a great way to enjoy music in spite of growing competition from other online services. Continue reading Pandora Believes Radio Experience Will Beat Jukebox Services

Aereo’s CEO and founder Chet Kanojia claims that the company will be profitable before achieving one million subscribers. Aereo is not disclosing its subscriber numbers, but the company could earn a profit with only hundreds of thousands of subscribers, according to Kanojia. Television broadcasters have been unsuccessful so far in preventing Aereo from operating. The service is expanding into new regions this year to cover a total of 22 cities. Continue reading CEO Says Aereo Will Be Profitable Before One Million Subs

A new trend in music among new generations is a return to the era of nostalgic vinyl LPs and high fidelity sound systems. One reason is fashion, but many are seeking a richer music listening experience. These music fans want high-end systems that include vinyl sounds, a more robust music experience, and elegantly designed sound systems. They are also expecting to spend several hundred to several thousands of dollars for their ideal sounds. Continue reading Trend: New Audiophiles Looking for Hi-Fi Music Experience

Hulu is focusing on its own original programming with “The Awesomes,” the video service’s first animated series and first original show this year. This marks a change of direction for the company, which was until recently entertaining bids for acquisition. Its emphasis on original programming reflects its new intention to compete with services such as Netflix and Amazon. Hulu will also join with sponsors to make new, brand integrated shows in order to generate advertising revenue. Continue reading Hulu Changes Focus To Original Series with ‘The Awesomes’

Boston-based startup Aquto launched this week with an interesting business model, one that allows wireless customers to pay for data by watching ads, taking surveys, downloading apps, or devoting time to a brand. For example, if a consumer views a 30-second ad via the Aquto app, that individual could earn 5 or 10 megabytes, about enough to download some images or check an inbox. Aquto is limited to Vodafone customers in Portugal, but plans to roll out in the U.S. next month with a “very large carrier.” Continue reading New Wireless Model: Earn Data Over Time with Aquto App

“Love Doctor,” a two-minute acid jazz instrumental is used in about 1,500 YouTube videos that do not pay for the rights to do so. The composer, Scott Schreer, has been working with New York startup Audiam in an effort to share in the advertising revenue associated with the videos. While serving as the Audiam test case, “Love Doctor” and Schreer’s library of 1,700 songs are generating about $30,000 per month for their use on the video site. Continue reading Audiam Finds New Ways to Pay Indie Musicians via YouTube

Lesser known musicians and indie bands can find an audience today with the help of online services such as Pandora, Spotify and iTunes, while leveraging the marketing power of social networks including Twitter and Facebook. Yet this disruption to music distribution and promotion does not hold true of live performances. Big name music acts continue to dominate while niche, indie acts receive a very small share of concert revenue. Continue reading Disparity Between Indie Music and Superstar Concert Revenue