Friday Business Links
A study by NPD Group (conducted for NARM and AARP) projected that incremental digital and CD sales to those born between 1941 and 1964 could reach $700 million and $1 billion. To achieve those incremental gains, it claims, will require improvements in product and support. "Most baby boomers are still buying only CDs, but many have also begun to add digital tracks and subscriptions to their music-buying mix," said NPD's Russ Crupnick. More than 67% of baby boomers purchase only CDs while 26% buy both CDs and digital. A scant 6% purchase only digital downloads. (Press releases)
Metal Blade editor in chief, Phillip Freeman, talks about the staying power of the album format in an op-ed in yesterday's Los Angeles Times. "For a few years now, it's been possible to download leaked copies of new albums days or weeks before the official release date. That's worrisome to pop performers and the label execs backing them, who, like the producers of big summer movies, live or die by opening-week receipts. For more indie-minded artists, though, this sort of samizdat circulation of their work has become a valuable, even crucial, marketing tool because real fans treat a download like a test drive or a listening booth in an old record store." (Los Angles Times)
First Apple blamed its licensing terms for charing British iTunes consumers more than customers in other European countries. More recently, Apple has claimed that Britain's Value Added Tax and higher cost of doing business are behind its pricing structure. According to a person present in yesterday's European Union hearing on the matter, Apple said there was nothing in its contract with Universal Music Group that required it to operate national stores or charge more in countries like Britain. (Forbes.com)
The IFPI has shut down six eDonkey servers in Germany through a series of injunctions. The trade group claims file-sharing has been dramatically reduced as a result. Mm-hmm. (The Register)
Here's a recap of yesterday's FCC media ownership hearing in Chicago. (Radio Ink)
Music Groups