The news from the south of France
Jim Carroll
Every January, the better paid elements of the music business decamp to Cannes for the annual MIDEM conference. As befits a gathering where deals are done and fine bottles of wine are quaffed, there’s usually very little live music and new bands showcasing their wares. Instead, there’s a big trade show, plenty of networking, a lot of back-slapping, some keynote blathering (Paul McGuinness gave one of those state of the industry speeches at MIDEM a couple of years ago) and lots and lots of people with record or publishing catalogues seeking to do deals for foreign territories. It’s a reminder of what the music industry was like in the good old days before the internet messed everything up for those with expense accounts.
All the same, there’s always a couple of interesting stories which emerge from what happens around the Croisette. One of the stories which caught my eye was more about Sony Music’s Qriocity music streaming service. If you have an internet-connected Sony device, you can use Qriocity to get your music and the company plan to roll it out to Sony and Android phones later this year. Already available in the UK and Ireland since December (are any OTR readers using it?), Sony are now moving Qriocity (yes, a stupid name, but so is Ready Brek) and its million songs into France, Germany, Italy and Spain provided you’re prepared to pay either €3.99 (basic) or €9.99 (premium) a month for it. Whether it will turn out to be serious competition for such services as We7, Spotify or iTunes remains to be seen – and we know that the history of label-initiated music services ain’t so hot.
Staying with streaming services with silly names, Psonar is a new-ish UK startup where, aside from steaming the songs you already have yourself, you can stream songs you don’t own for the princely sum of a penny. Per Hypebot, here’s the spin bit from big cheese Martin Rigby: “Psonar aims to answer the digital music dilemma where users are forced to choose between expensive fixed cost online streaming services or pay to own tracks which limits the amount of music consumed and encourages copying and side-loading.” While the dude should definitely run in the general election with that sort of spiel, it will be interesting to see how Psonar will manage to wean music fans off YouTube, which Forrester Research’s Mark Mulligan termed “music’s killer app” during his presentation.
Then, there was a bullish contribution from veteran music manager Colin Lester, as reported by Music Week. The man who has works or has worked with Arctic Monkeys, Travis, Craig David, Brand New Heavies and many more is now fronting Twenty-First Artists/Universal Management, a company co-owned by Universal Music. Lester doesn’t buy the notion of a conflict of interest – “I think conflict was a word invented by lawyers to charge us money” – and instead talked up the company’s plans to expand into new markets. “The days are gone when you could run around with a mobile phone and a small office and conquer the world. You have got to go to these emerging markets – or secondary markets – ahead of the record companies and accept that together you can make it happen.”
Bruce Houghton is in France reporting for Hypebot and he filed some interesting observations about a new spirit of DIY which he thought was prevalent at the shindig. “What is actually working? The answers vary by artist and depend on who you ask. The net result is an entire industry – from the smallest players to the largest – stuck in what is effectively their own d.i.y. world.” 2011, the year punk rock hit the record industry again?

I can’t help but have a serious dose of schadenfreude watching the major-label end of the industry collapse under its own weight, scrambling and struggling to figure out how to extract money from its consumers in the internet age..
My money would be on Facebook eventually assimilating one of these streaming players in the future, so when you’re logged into your profile you can stream music from a Sony-EMI-etcetcetc library.. Seen as half the consumers in first world countries are on Facebook, they’ve got the demographic there to work with. It will actually get to a point where if you’re not on Facebook you legally don’t exist!
halandor – but why would Facebook do that? I mean, if you have 500 million + users already, do you really need a music game to keep that audience? I’ve some ideas brewing right now about Myspace etc for a post for next week and I’ll think it will provide u and other oTR readers with lots of food for thought
I don’t think it’s about keeping the audience, I think it’s about integration.. In the same way as say an iphone combines phone, mp3 player, camera, internet etc.. Facebook will wanna keep growing their profits, so in the years to come I’d imagine they’ll be open to such integration. Just a thought is all, something that could potentially happen and isn’t impossible..
Was ready early about this Qriocity, over on the Guardian. Comments are not at all positive considering previous efforts by Sony.
http://www.guardian.co.uk/media/2011/jan/25/sony-music-unlimited-streaming-service
Mully – yep, had linked to that story above. And comments are probably on the money. There have been tons of previous attempts by Sony & other labels to jump into this zone – or even the download zone – and it just hasn’t worked out. Plus they keep backing the wrong horses – did someone mention Spiralfrog?
Not really surprising to see the majors attempt to launch a streaming service (bit late in the day folks) but with Spotify, soundcloud, youtube, last fm and others already well established on the market it has a lot of work to do to surpass them. The inherent suspicion people have with the majors due to all their whining about online impact on their record sales, and the fact that it’s a restricted database of tunes will make for slow uptake, but maybe I’m not factoring in other territories or the proliferation of PSP users as I’m not one myself? I notice the comments on the Guardian article that mully linked to mention restricted access to youtube in Germany for example, which might give Qriocity (good god that name, I would love footage of the brainstorming session that it came out of) an attraction but they don’t mention how something like spotify goes down there? Same comment thread is pretty scathing about the need for PSP users to download software and pay for the service.
Have to say I’m always put off by services like Qriocity, and Psonar, when they suggest uploading your own library to the cloud. Don’t know about the rest of you but that would take me days and days to do and max out any data bundle I might have with my ISP.
I’m a big soundcloud lover, especially with the iphone and now mac desktop app it has, and I do think the fact that people can share soundcloud and youtube content by embedding it in blogs/social networks etc gives those services more visibility online. Wonder can you share Qriocity tracks? Not to mention that many blogs choose to use those services to embed and stream tracks rather than self hosting them to avoid any direct licensing fees, thus increasing their visibility even more on music blogs.
Great to get the Midem round ups Jim, thanks for posting. Very interested to see how the DIY theory progresses…
aoife – yep, agree with all of the above. I’m instantly wary of any major-led initiative like Qriocity, chiefly because of how they’ve worked in the past and the fact that you can’t teach an old dog new tricks. Also, I see how they’re working with Soundcloud and the number of takedown notices going round for tracks which were freely distributed by labels 6-12 months ago and now, they’ve changed their mind. Plus Qriocity is one hell of a stupid name and so was Spiralfrog!
Still, it’s the early stages of a new shakedown and what’s abundantly clear is that there will also be plenty of new non-label streaming services coming to the fore and it’s up to the industry to deal with them on their terms. The days whem the tech and telecoms boyos went to the labels first is well and truly over.