2highbehind

Nimen Hao Ma!, the Exploding Asian Digital Music Market

HONG KONG -- As Soundbuzz, which claims to be Asia's largest online music retailer, on Wednesday became the third company to offer legal downloads in Hong Kong, analysts and executives were queuing up to beat the drum for the ballooning digital content economy. >> Variety.com

A fascinating article in Variety surveys the Asian digital music market. Points to ponder:

• In South Korea, a $3B market, online sales have overtaken CD sales.
• PricewaterhouseCoopers forecasts 15 percent growth in the Asian music market through 2009.
• Asian consumers license music in ways unseen in the U.S.—background tones for online avatars; IM tones. They are already living the next stage of ringtone evolution.
• 100-million Chinese access the Internet via public cafes. Obviously, it isn’t about track ownership as in the U.S.
• Japan downloaded 2-billion polyphonic ringtones in 2004.
• 10-million MP3-equipped cell phones will be sold in Korea this year.
• Asian consumers can buy MP3 phones with 4GB of storage.
• Movies are next. >> The digital music weblog

THE MARKET FOR PHYSICAL PRODUCT HAS DECLINED BY NEARLY 8%

By Chris Morris

LOS ANGELES (Hollywood Reporter) - The National Association of Recording Merchandisers, the retail trade group grappling with a depressed music business, kicks off its annual convention Thursday at the San Diego Marriott.>> Reuters

Gotshrimp >> We in Amsterdam are a bit depressed too. This because of the weather that seems to lost faith in summer. I think the sun is shining on a different platform now, we bought a solarium to download sunshine. Unfortunately we don't know where to pay for beams of warmth, are we pirating the IP of the gods?

only a day for a price war to erupt

By Peter Nowak

It took only a day for a price war to erupt here among legal music download providers, provoking the question: Just how profitable a business is it? >> The New Zealand Herald

MSN Music and Apple Computer are leveling the playing field for indie labels

MSN Music and Apple Computer are leveling the playing field for indie labels when it comes to paying for digital downloads.

That was the good news that American Assn. of Independent Music acting president Don Rose delivered July 25 to the approximately 40 labels attending the Founders Conclave II at Los Angeles' Knitting Factory.

Rose said that MSN Music agreed to up the download payment rate to 70 cents for indie labels that also provide content to Microsoft's expected subscription service. Meanwhile, Apple has granted the same rate; label sources say indies now receive 70 cents per track, and are negotiating retroactive compensation at the increased rate. The new rate puts the indies on par with major labels. Indies had generally received 65 cents per download.

Rose said AAIM intends to hold meetings with Napster and Yahoo.

MSN is expected to launch a subscription service shortly in addition to its existing à la carte downloads.

"We've been working with MSN on coming up with a contract we could endorse for the independent community," Rose told Billboard following the meeting. He said that in June, he met with Microsoft founder and chairman Bill Gates to discuss rates of payment for digital tracks.

Independent labels have long fought online download services, including MSN, Apple and Yahoo, demanding the same rate that the majors receive.

Rose read a statement from MSN Music GM Mike Conte that said, in part, "MSN Music provides content from over 3,000 indie imprints, and we're working with AAIM to resolve delivery and administrative issues in order to level the playing field for indies in relation to the larger music companies."

Digital distribution was one of the first issues Rose promised to tackle at AAIM's inaugural Founders Conclave, held June 6 in New York (Billboard, June 18).

Four of AAIM's interim board members attended the Los Angeles meeting: Roadrunner Records senior VP/GM Doug Keogh, Lookout Records co-owner Molly Neuman, Tommy Boy Records owner Tommy Silverman and TVT Records president Steve Gottlieb. Elections will be held in September to finalize the board positions and presidency.