
New York, NY (January 2, 2009) – Courtesy of The Coolfer. This first one is particularly interesting. For more, visit my new favorite blog, Robin Good’s MasterNewMedia.com. Informative as it is slick.
Sustaining A Fanbase Through Blogs?
The Wall Street Journal overstates the probability of finding a sustainable fan base through music blogs. Each and every year, there are more lottery winners than blog favorites than can retain the buzz for over 12 months. Touring and a record label’s promotion are two underestimated factors in every blogger favorite’s success (feel free to choose your own definition of success).
University P2P Plan Gets Big Vote of No Confidence
Choruss, a proposed non-profit organization that would collect fees from universities while granting the right to download music “without the fear of legal reprisal,” got a harsh vote of no confidence in a ContentAgenda post by Rick Carnes (president of the Songwriters Guild of America) and Chris Castle (managing partner of Christian L. Castle Attorneys).
There are a few holes in the pair’s arguments. For example, previous investments in “legitimate music and video services” should not prevent the adoption of alternative models. What has been spent is in the past and does not necessarily indicate the best path forward (otherwise the best business plan would always be the one with the greatest investment). And Choruss would not disproportionately reward artists backed by the largest marketing budgets. Indie artists are downloaded on P2P and on other “reactive” technologies. The majors would be at no greater advantage.
But overall, the post lays out some shortcomings of Choruss. Without the participation of all rightsholders, Choruss would not be able to provide indemnification to a university or ISP. The Choruss “covenant not to sue” is, as Carnes and Castle wrote, “a nuanced, untested, flimsy, and complex legal strategy” that would leave participants open to legal problems.

Migration From Album To Singles Continues to Kill Music Revenues
Nielsen’s 2008 SoundScan figures were released yesterday and they show greater physical losses, slowing digital gains and a net decline in revenue. In 2008, consumers purchased 88.8 million fewer CDs than they purchased in 2007. That’s a 19.8% drop, far sharper than the declines in previous years. Brick-and-mortar retail continued to cut shelf space. Retailers staggered from the worsening financial climate. People continued to adopt digital music — which often means buying individual tracks instead of albums.
Labels Eyeing Hulu for New Video Partnership
Labels are in talks with Hulu that could result in a new music video destination. “Representatives of two music companies, who would not be named, said they were in discussions with Hulu, adding that no partnership announcement was imminent but that the site appeared to be the favoured partner. ‘If it happens at all it will be with Hulu,’ one said. Both added, however, that any such deal to create a standalone music video service would not replace existing deals with YouTube, and that there was interest in supplying content for a potential premium service on YouTube, which has begun to offer high definition videos.”

Rumors of Facebook + Lala Continue…
Facebook wants to let its users freely listen to and share music - and it’s considering a partnership with music site Lala to help it do so, industry sources tell us. Lala’s model, though, doesn’t exactly fit what Facebook has had in mind. Facebook originally envisioned offering unlimited streaming music to its users, comparable to MySpace Music - and Lala doesn’t provide that. Instead, the service lets you listen to a song for free once, then choose to buy it or otherwise listen to a 30-second clip.
Questions loom about licensing, streaming and other partnerships. For its part, Facebook responded to my query about this article with the following: “We don’t have more to add than what we’ve said previously. Clearly, the music vertical is an edge case with a lot of complexity around rights and licensing. And music is an area where it would make sense to partner with a company that can bring relevant expetise to deliver an experience to Facebook users that we cannot. We’re not going to confirm discussions with specific companies, but we will continue to explore the various options.”
So nothing’s decided. Lala may drop out, a new partner may rise, or Facebook may decide to build a music service on its own - or kill the project entirely.