Apple, Google music clouds can't snub publishers

Apple, Google music clouds can't snub publishers
NEW YORK--Those in digital music should take notice of the olive branches being extended by David Israelite, the president and CEO of the National Music Publishers Association. Israelite advised NMPA members Tuesday in Manhattan during the trade group's annual conference that it was in their best interest to help legal music sites thrive, Billboard reported. To do this, Israelite wants to streamline the process of licensing rights, a time-consuming task for Internet services that has frustrated managers from SpiralFrog to Apple to Google. Still, Israelite's comments about bridge building with the tech community could surprise some there. For much of his six years as chief of the NMPA, the group that represents publishers and songwriters, Israelite has generated more notoriety in Silicon Valley for his condemnation of those he accused of distributing music first and asking permission second. He engaged in a war of words with the Electronic Frontier Foundation, the technology advocacy group. A former deputy chief of staff for U.S. Attorney General John Ashcroft, Israelite has filed suit against illegal file-sharing networks on behalf of publishers and lobbied Congress for more copyright protections.Certainly, Israelite's statements reflect how important Internet distribution has become to the overall music industry. But the comments also come from a man who is quickly becoming one of the most influential in digital music. Over the next couple of years, Israelite could have much to say about the kinds of features cloud music services offer as well as how much they cost consumers. For decades publishing was a less lucrative business than recorded music and often had to follow the lead of that sector when cutting deals. Only now, in a post-Napster world, has publishing closed the revenue gap and has earned more respect within the industry. So, now Israelite prepares his group to vie for a larger piece of the digital pie. To help achieve that goal, he has displayed a greater willingness to exercise some of his newly acquired and hard-won clout.CNET reported last September that Apple planned to announce that it would extend song samples from 30 seconds to 90 seconds. After reading the CNET piece, Israelite and his lawyers informed Apple managers that they couldn't legally offer longer samples without the NMPA's permission, according to an NMPA attorney. "The old saying is that records are a dollars business and publishing is a pennies business," said Neil Gillis, a longtime industry exec. "David wants to help change that."Greg Sandoval/CNETApple backed down and only released the longer samples months later after negotiating with the publishers. This spring, the Recording Industry Association of America was trying to force Lime Wire founder Mark Gorton to pay big damages after defeating Gorton in a copyright case, it was Israelite who swooped in at the last minute and negotiated a settlement with Gorton first. And more recently, Israelite was working behind the scenes during the publishers' iCloud negotiations with Apple. He wasn't actively participating in the talks, but multiple music industry sources said Israelite made his presence felt by advising publishers to play hardball--something that displeased the major labels. In the end, it was the top four record companies that appeared to take a little less to get a deal done. Music industry sources told CNET that revenue from iCloud, a service announced on June 6 that enables users to store and access music libraries from Apple's servers, will be split like this: top four record companies (58 percent), Apple (30 percent), publishers (12 percent).It is these kinds of tactics that have not endeared Israelite to some in tech circles or in corners of his own industry but has won him a loyal following among NMPA members. Fans of the NMPA chief, these Israelites, hope that their leader can lead them to greener pastures. Related links• iTunes song-sample plan runs into music publishers• Music publishers accuse XM of copyright infringementE• Lime Wire settles copyright suit with publishers"The old saying is that records are a dollars business and publishing is a pennies business," said Neil Gillis, a longtime industry exec who recently helped found his own publishing house, Round Hill Music. "David wants to help change that."Gillis isn't being overly dramatic. The statutory rate for a mechanical license, which is set by Congress, requires that a songwriter be paid 9.1 cents for each composition sold. This is what songwriters earn for each download sale and when a CD is sold that features the writer's song (why Apple had to negotiate with publishers for iCloud instead of just paying the statutory rate is that cloud-music rights are new and aren't included in mechanical licenses).Israelite wants to work with the top labels and digital music services to convince Congress to split a $1.29 download more evenly. "For every $14 that Pandora pays the record labels, the company pays us $1," Israelite told CNET. He also wants to see more online music retailers enter the market. To do this, he knows he must remove a significant obstacle that confronts anyone who wants to offer music over the Internet.Speaking before hundreds of composers, music publishers, and lyricists at the NMPA's annual meeting in Manhattan, Israelite said the process of licensing music must be streamlined. Before a distributor offers a song for download or streaming, multiple rights must be acquired. Often, multiple composers and songwriters must sign off on a single track. The different parties sometimes aren't represented by a publisher and are difficult to find. Some publishing companies own the rights and sometimes they just administer them for creators. To give some idea of how daunting a task it can be, a former SpiralFrog employee told CNET that the company once hired four women to secure the publishing rights for the millions of songs the company wished to offer. After several months, the now defunct company gave up. Managers concluded that it would take more than 20 years for the team to complete the process. Gillis said this hurdle represents lost revenue for publishers."There is no centralized repository of metadata, no one place to license our music," he said. "I want to license to all these (digital services)."


Music publisher blocked iPhone 5 music service, report says

Music publisher blocked iPhone 5 music service, report says
A Pandora-like streaming service could have debuted with last week's iPhone 5 launch if negotiations between Apple and Sony/ATV had not failed, according to a published report. Sony/ATV, which is owned by Sony and the estate of Michael Jackson, wanted Apple to pay a higher fee for each song played than Apple was willing to shell out, according to the New York Post. News broke earlier this month that Apple was considering the idea of creating a streaming-music service similar to that of Pandora, the online-radio service. Typically, a music distributor will just pay the statutory rate that has been set for playing songs on Web radio and will not have to negotiate with individual rights holders. That's what Pandora does. Related stories2009 PC shipments inch into positive territoryMicrosoft brings kids developer tool to the PCApple's Mac shipments up 23.3 percent in the U.S.Reports: Tech recovery driven by developing nations, cloudAT&T to sell Moto Backflip March 7?But Apple wants to do more with the songs than the statutory agreement covers and this required the company to acquire tailor-made licensing, according to the Post's story. If you were wondering how Apple planned to compete with Pandora, the front runner in Web radio, this is how: Apple wants to enable users to play a "selected artist more times" than Pandora is allowed to under the statutory agreement, the Post reported. According to industry sources who spoke with CNET, the music labels are not crazy about Pandora's business model. The service doesn't supply labels with a whole lot of revenue, and managers believe Pandora cannibalizes sales. They have hoped Apple would find a more lucrative way to enter the streaming-music business.That said, the labels are on board with Apple's plan. They realize that Apple is going to do what it wants anyway and that the company has plans to use the streaming service to promote sales. Insiders say Pandora has a Buy Now button that nobody pushes. The music publishers, however, are still miffed about what they consider Apple's attempt to bypass them in initial negotiations over 90-second song samples back in 2010, a story first reported by CNET. Apple co-founder Steve Jobs had been preparing to announce extended song samples at a media event, but the publishers raced in and threatened legal action if Apple didn't negotiate a new fee with them. More important, though, is that music publishers don't like Pandora's model either and don't want to see Apple launch an identical service. If the publishers aren't careful, Apple's leaders could just decide to pay the statutory rate -- the same fees that Pandora pays -- if they can't close a deal with rights holders. Those rates don't leave much room for profit, but Apple could try to wait the publishers out. This would mean the publishers would see less money from Apple than the company is prepared to pay right now. Music sources say the talks continue.Update: 9:40 a.m.:My Colleague John Falcone notes that in iOS 6, the songs in iTunes Match can now be streamed, just like in Amazon Cloud Player, so that you don't need to download it before beginning to listen.


Bandwidth '08 notebook

Bandwidth '08 notebook
The Bandwidth music tech conference in San Francisco attracts folks from all corners of the music industry: from label owners and musicians, to Internet radio broadcasters and mobile phone software developers. This year, the conference featured panel discussions on topics such as the future of music gadgets (a subject dear to my nerd heart), developing music services for mobile phones, and the realities of running a label in today's fractured music industry.One of the more popular themes drawing heated discussion across all panels was the idea of ditching the paid download model dominated by iTunes in favor of giving music away for free. Throughout the day I heard several compelling arguments for and against moving toward a free music download model, but my sense is that economic times will need to get a little tougher before the industry takes a serious look at a free music strategy. That said, with the decline in CD sales drastically outpacing the uptake of MP3 sales, a future of legitimate free music downloads may arrive sooner than you think.As the nation's premier music phone, the iPhone and its App Store garnered plenty of discussion as well, with comments from Tom Conrad from Pandora connecting to an audience eager to leverage the iPhone's popularity and potential. During the same mobile music panel, Cindy Lundin Mesaros from Moderati spoke on the plateaued, yet profitable business of selling ringtones, software, and games for phones.A discussion of emerging trends in consumer electronics was slow to gain momentum, but paid off handsomely with razor-sharp comments from Dave Goldberg, former VP of Yahoo Music, who stated with no uncertainty that MP3 player manufacturers competing with Apple are doing it all wrong (listen to an audio excerpt at the end of this article). CNET's own Kurt Wolff (Download.com Music) also used the panel as an opportunity to tease to Juke.com, a new CNET music Web site in development that has been veiled in secrecy (even to me).One of the last panels of the evening brought together representatives from Rhapsody, Sony/BMG, and TAG Strategic to discuss the state of the music download sales model and its viability going forward. While never reaching a consensus, alternative models such as variable song pricing, flat-rate music subscriptions via ISP, high-fidelity downloads, and bundled incentives (concert tickets, T-shirts, etc.), were all thrown around. The only idea everyone agreed on was the suggestion that artists need to work on building unique, packaged experiences for their fans if they want to increase revenue through music sales (Metallica's Mission Metallica microsite was cited as a prime example).Having just finished my review of the Edirol R-09HR portable recorder, I brought it along to capture a few great comments overheard at Bandwidth:Dave Goldberg on why iPod alternatives fail: Ted Cohen on why the subscription music model is broken: Tom Conrad on the appeal of internet radio:


The 404 334- Where may the 4th be with you

The 404 334: Where may the 4th be with you
To commemorate Star Wars Day, I'd like to introduce you to Sabersegging, thanks to the folks at Vice Magazine for the story. Sorry about messing up the name in our description, I think Cybersegging is something else entirely. Anyway, check out that video and contact your local Jedi Training Center for more details!Next, we play some inside baseball with Google and reveal their newest HR pursuits: Google Goats. The software giants just hired a bunch of goats to hang out on the lawns at their Mountain View offices and eat/fertilize the grass. PETA, of course, wonders if the goats will receive a proper pension plan and health insurance options, but we have some better ideas...Lots of pregnancy stories recently! First we talk about a miraculous birth with the help of YouTube. This story is nutso--a couple decided to have a baby in their home, but when the midwife failed to show up, the husband was forced to consult YouTube for basic birthing instructions and found this video that shows you how to deliver a baby in a vehicle. DISCLAIMER: Not for the faint of heart/stomach, even with the bizarre doll they use to roleplay. We also get another super awesome voice mail about another guy that used The 404 to get him through the stress of childbirth. We think that the mother had a little more, but we're happy to be here to welcome the young one on the air! Thanks a million for the amazing voice mail, we love hearing stuff like this.ParamountFinally, all you Trekkies will be happy about our latest Photoshop contest to win a ticket to see the new Star Trek flick with us this Thursday, May 7th @ 7PM. We have two tickets available, so go here, and use one of those pictures to Photoshop us as your favorite Star Trek character! E-mail your submission to the404{at}cnet.com and we'll choose two of our favorites. Episode 334Download today's podcast |  Subscribe in iTunes |  Subscribe in RSSGoogle hires goats to kill two birds with one stoneMan uses YouTube to help him deliver babyWikiPaths is a great way to waste time at work, so says Wilson TangWolverine weekend box office proves piracy can be a good thingFollow us on Twitter!The 404Jeff BakalarJustin YuWilson Tang


Last.fm app for music streaming, discovery

Last.fm app for music streaming, discovery
When launching the Last.fm iPhone app for the first time, you'll be prompted to enter your existing Last.fm account username and password, or you'll be offered the option to create a new account. If you're new to Last.fm, we recommend you get started with the service using your home computer, since many features depend on an ongoing analysis of your computer's music collection (also known as scrobbling). Once you're logged in, the Last.fm app offers eight ways to stream music over EDGE, 3G, or Wi-Fi. You can listen to songs Last.fm has already scrobbled from your computer's music collection, treat yourself to recommended songs, do a cold search for new music, or hear what your friends have been listening to. The music playback screen is similar to Apple's own iPod screen, displaying large cover art, volume, pause, and skip controls, as well as an iTunes purchase link and Last.fm's own song rating buttons, which help to steer the quality of song recommendations. On the very bottom edge of the screen you'll find tabs for the currently playing track, artist biography, similar artists, events (such as related concerts), and a More tab that includes the track's tag information and Top Listeners. With all its features, tabs, and buttons, the Last.fm app is one of the most in-depth and dynamic streaming music applications available for the iPhone. Unfortunately, despite its ambitious list of features, the program is bogged down with performance issues that make it frustrating to use at times. During testing in both Wi-Fi and 3G modes, we often experienced 5 to 10 second buffer delays each time we initiated a music stream or skipped between songs. The buffer issues subsided under ideal circumstances where Wi-Fi or 3G reception was strong; however, similar streaming audio applications from Pandora and AOL offered better streaming performance under more realistic conditions.With any luck, future updates to the Last.fm app will improve streaming music reliability and refine the somewhat confusing assortment of menu options and playback screen features. In its current state, the Last.fm app presents a bite-size version of the Last.fm Web site experience in a way that may satisfy existing users, but is unlikely to win new converts.Editors' note: Last.fm is owned by CNET's parent company, CBS Interactive.


Apple's Siri hit with infringement lawsuit in China

Apple's Siri hit with infringement lawsuit in China
Another day, another lawsuit out of China targeting one of Apple's products.This time around, a Shanghai-based voice application developer, Zhizhen Network Technology, has reportedly sued Apple for allegedly infringing a patent it holds related to "a type of instant messaging chat bot system" it calls Xiaoi Bot. The company argues that the patent, which it filed for in August 2004 and was awarded in February 2006, is being violated by Apple's Siri.Marbridge Daily, which was first to report on the story and obtained a copy of the suit, says that Zhizhen attempted to resolve the issue with Apple out of court in May. However, after Apple reportedly failed to respond, the company filed its suit in a Shanghai court on June 21.Related storiesSteve Jobs: Let the post-PC era begin (live blog)At SRI, developing an expertise in R&D, innovationReport: Apple using Nuance voice tech in data centerWatching TV backfires during 'SuriTV' parodyApple iPad live blog (Wednesday, March 7)It's worth noting that Apple didn't actually invent Siri. Instead, Apple acquired the service in 2010. The platform is currently running on Apple's iPhone 4S.Apple has been no stranger to lawsuits coming out of China of late. After settling with Proview for $60 million over the use of the iPad trademark in China, the company was hit earlier this week with a suit from Jiangsu Xuebao for allegedly infringing its "Snow Leopard" trademark. In that case, Jiangsu Xuebao is seeking $80,645 in damages and an official apology from Apple.In its case against Zhizhen, however, Apple might face a different story. According to Marbridge Daily, Zhizhen has so far not requested damages, but if it wins its case, it believes that compensation could exceed the $60 million Proview settlement.CNET has contacted Apple for comment on the report. We will update this story when we have more information.(Via Forbes)


Apple's Siri gets new voices, display, and actions

Apple's Siri gets new voices, display, and actions
More from WWDCMeet iTunes Radio, Apple's long-awaited streaming music service CNET Editors' Take: Apple's Pandora-like streaming radio service is finally here Apple gives the iPhone a user interface face-lift with iOS 7 Editors' Take: iOS 7 gets a new look and several new features The fresh new look of Apple iOS 7 (pictures) Apple unveils new MacBook Air, gives Mac Pro sneak peek Editors' Take: Apple updates MacBook Air New MacBook Air boasts all-day battery life (pictures) Editors' Take: A bold new look for the Mac Pro desktop Mac Pro sneak peek (pictures) Editors' Take: Apple Mac OS X 10.9 Mavericks Getting to know Mac OS X 10.9 Mavericks (pictures) WWDC 2013: Full coverageApple unveiled on Monday a new look for Siri that came with new voice options, actions, and some hot integration, including in-car options and music streaming.The voice command technology has new voices, female and male -- also available in French and German. Siri's display includes a new look that shows a sound wave at the bottom while its detecting a user's voice and full-screen results.Users can instruct Siri to complete functions like "turn off my Bluetooth," or "increase my brightness," according to software VP Eddy Cue. The digital assistant also has a slew of new integrations. These included Twitter, Wikipedia, and Bing search results, as well as car integration with maps, music playback, and iMessage. But the highlight of Cue's presentation was Apple's long-awaited music streaming service, iTunes Radio.Apple highlighted Siri as part of its iOS 7 showcase, iOS's biggest refresh yet.


Apple's senior hardware chief Bob Mansfield to retire

Apple's senior hardware chief Bob Mansfield to retire
Apple's senior vice president of hardware engineering Bob Mansfield is retiring, the company said today.Mansfield, who has been with Apple since 1999, will be replaced by Dan Riccio, Apple's current vice president of iPad hardware engineering. "Bob has been an instrumental part of our executive team, leading the hardware engineering organization and overseeing the team that has delivered dozens of breakthrough products over the years," Apple CEO Tim Cook said in a statement. "We are very sad to have him leave and hope he enjoys every day of his retirement."Apple says the transition from Mansfield to Riccio will take place "over several months."Mansfield replaced the outgoing Mark Papermaster in 2010, and has since gone on to become one of the public faces of the company in its promotional videos. He is often seen describing the technical ins and outs of the company's latest products. Before Apple, Mansfield was at Silicon Graphics, then at Raycer graphics, a company Apple acquired. Mansfield's departure is the first from Apple's executive team since Tim Cook took over as CEO last August. Prior to that, retail chief Ron Johnson announced plans to leave to become the chief executive at retail chain J.C. Penney, a spot that's since been filled by John Browett. Before Johnson, it was the departure of Bertrand Serlet, Apple's senior vice president of Mac software engineering.The retirement isn't the only one among Apple's staff today. In an SEC filing posted earlier today, Apple said Betsy Rafael, who is currently a company VP, corporate controller, and principal accounting officer would retire from the company on October 19, 2012. Rafael had been with the company since August 2007.Apple's stock is down $2.41 or 0.42 percent in after-hours trading.


Apple's senior execs dominate top 5 best-paid

Apple's senior execs dominate top 5 best-paid
When it comes to compensation, these days it's good to be one of Apple's top executives.During Apple's 2012 fiscal year, four of its executives landed in the top five for highest compensation at a Standard & Poor's 500 company. But the folks that made it into that list might surprise you.According to Bloomberg BusinessWeek, which collected compensation data from some of the world's top executives, Apple senior vice president of technologies, Bob Mansfield; CFO Peter Oppenheimer; general counsel Bruce Sewell; and operations chief Jeff Williams all made it into the top five for highest compensation.Mansfield led the pack among his colleagues, earning a whopping $85.5 million during the company's 2012 fiscal year. Sewell raked in $69 million, according to Bloomberg, while Williams nabbed $68.7 million. Oppenheimer was just behind him with $68.6 million in compensation.Nearly all of the compensation for those executives came in the form of stock; all of them earned a base salary of $805,400. According to Apple, it decided to reward its top executives handsomely "in order to retain the company's executive team during the CEO transition" from Steve Jobs to Tim Cook.And what about Cook, boss of the aforementioned quartet of Apple executives? He could only muster a $4.17 million package, ranking him in 1,016th place in Bloomberg BusinessWeek's study. But don't feel too bad for him: among other things, in 2011 he received a $378 million restricted stock award.None of Apple's executives, meanwhile, could match Oracle CEO Larry Ellison, who walked away with a staggering $96.2 million in total compensation last year.


Apple's Schiller- White iPhone will debut in spring

Apple's Schiller: White iPhone will debut in spring
Responding to a question from 16-year-old Twitter user Eric Anderson asking how to get the white iPhone, Apple's vice president of worldwide product marketing, Phil Schiller, tweeted yesterday that the phone would be available this spring. And in Schiller's opinion, the new phone is a "beauty."The tale of the white iPhone has been a long and mysterious one since last June's debut of the iPhone 4.Pointing to a delay caused by manufacturing problems, Apple initially said the white version would be available in July. When July came, Apple was forced to push the launch date until later in 2010, admitting that the white handset was proving more "challenging to manufacture than we originally expected." Then in October, Apple announced yet another postponement, this time pushing back the phone's appearance until this coming spring.Apple hasn't given any specific reasons for the ongoing series of delays, other than citing manufacturing challenges. Some sources claimed the issue has been due to light leaking out and affecting the camera, while others pointed to a mismatch in the color for the home button.Whatever the cause, Apple may have resolved the problem--consider the iPad 2, which debuted this weekend in both white and black.Schiller's tweet also comes on top of a report from an analyst with Concord Securities who said last week that Apple has solved the issues with the white iPhone, which he believes were due to a full-lamination problem that affected the coating of the phone. Analyst Ming-Chi Kuo added that Apple is ramping up production this month to ship the white phone at the beginning of April.


Stop incoming iPhone calls from ringing on other iDevices

For the longest time I've shared an Apple ID with my kids, the idea being to keep control of the iTunes account so they couldn't spend millions on apps, music, and movies. But recently we've encountered a weird anomaly: sometimes, when someone calls my iPhone, their iPhones ring at the same time! Likewise, if one of them gets a call (which happens pretty much never -- they're teens), my phone rings. Turns out this isn't an anomaly at all, but rather a "feature" of iOS 8. As I recall, the idea behind it was to allow iPad owners the option of answering calls without having to run for their iPhones, but obviously it's not ideal for anyone sharing an Apple ID with family members. Fortunately, you can turn it off. Here's how: Step 1: Starting with your own iPhone, tap the Settings icon, then scroll down until you find FaceTime. facetime-iphone-cellular-calls-setting.jpg Turn this setting off on all your iDevices. Screenshot by Rick Broida/CNET Step 2: Tap it, then disable iPhone Cellular Calls. Step 3: Repeat the process on every other iDevice that's ringing when it shouldn't be. Presto! Calls will now go only to the phone number that was dialed. At least, that was my outcome. Your mileage may vary, of course, as there are some additional iOS settings that can affect the way calls and apps are shared. (There's at least one Apple discussion thread devoted to this very topic.) I also pinned down the "sometimes" aspect of it: this Continuity/Handoff feature works only when the various devices are in close proximity and connected to Wi-Fi.