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Sunday, 2 August 2009 - Apple, labels stir up deluxe digital Cocktail | Technology |
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    Read more with google mobile : Apple, labels stir up deluxe digital Cocktail | Technology |

      My Profile    Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Apple, labels stir up deluxe digital Cocktail Sat Aug 1, 2009 12:16pm EDT   Email | Print | Share | Reprints | Single Page [-] Text [+] By Antony Bruno DENVER (Billboard) - Downloadable music didn't kill the album cover. The CD did. By shrinking the size and visual impact of the recording industry's mainstay product -- and then encasing it in plastic security packaging -- the shiny aluminum disc marginalized the LP to a nostalgic memory. By the time the MP3 format came along, consumers shrugged off the absence of album art and liner notes. "We were living for so long with the CD cover art space after vinyl went away that we lost that feel of a great tactile, creative experience," says Livia Tortella, Atlantic Records general manager/executive VP of marketing and creative media. "Something got lost when you had to crack open the plastic CD with all the marketing stickers on it." Enter Cocktail: a new digital music format that Apple is developing with record labels. The format will go beyond a simple PDF file of liner notes, and instead bundle photos, videos, lyrics and other assets with an album's music. Details remain slim, but label sources confirming the effort's existence point to it as the digital version of the record sleeves of yore. The Cocktail format would enable fans to play an album without having to open their iTunes music management software. Supported devices haven't yet been confirmed, but industry sources expect them to be limited to the more advanced iPods, such as the iPhone and the iPod Touch. There have also been rumors of a yet-to-be-announced multimedia tablet computer from Apple that would fall somewhere between an iPhone and a laptop in terms of size and functionality. MORE REVENUE, NOT MORE SALES Will the Cocktail format drive greater digital album sales? Probably not, but that's not what the music industry is expecting from it. Instead, label sources position it as a way to further monetize existing digital album purchases. While pricing information isn't available, Cocktail-formatted albums will almost certainly cost more than the standard album available on iTunes. One major-label source notes that when a digital album is released as both a standard music-only download and a deluxe download with extra content, the deluxe version typically outsells the standard one by 85 percent to 90 percent in the first few weeks after its release, even though it usually costs $2 to $5 more. "It's not about selling more albums," a label source says about Cocktail. "It's about selling more unique kinds of content. We as an industry have found that when you offer more content, there's an appetite for it. So why not continue to offer more?" Cocktail wouldn't be the first effort by the majors to push more interactive versions of digital albums. For instance, Atlantic's Fanbase application, which it has bundled with the CDs of such artists as Rob Thomas and T.I., aggregates photos, videos and news specific to an individual artist from various online sources. Tortella says Fanbase has been downloaded more than 200,000 times and is viewed up to 4 million times per month. Cocktail-formatted albums would include only content selected and bundled by the label, but the broader goal would be the same -- to offer fans a more immersive digital music experience than they have had with MP3s and CDs. Apple has already offered a variety of incentives at iTunes to enhance the appeal of digital album purchases. Its "Complete My Album" option allows fans who have purchased one or two songs from a record to buy the remaining tracks at a discount. Through a partnership with Ticketmaster, iTunes has bundled digital albums with the purchase of a concert ticket. And earlier this year, its new iTunes Pass format provided artists and labels with a way to sell a "subscription" that allows fans to purchase an album along with other exclusive content that is released in stages. "Kids will either choose to buy something or not," Tortella says. "It's up to us to make it as exciting as possible to get people to want to buy. When you're dealing with different product configurations, it makes it more exciting." (Editing by SheriLinden at Reuters) © Thomson Reuters 2009 All rights reserved   Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn     Next Article: Yahoo Labs chief sees real-time search opportunity     CIT's Peek unlikely to outlive funding crisis Frontier deal could create risks for Southwest Blog: Forged Letters - a cap-and-trade mystery More Technology News Apple warns iPhones vulnerable; fixes bug Global mobile market bottoms, grows anew: iSuppli Yahoo Labs chief sees real-time search opportunity FCC seeks details on Google app rejection for iPhone Videogame industry looks for second-half comeback More Technology News... Editor's Choice Slideshow  A selection of our best photos from the past 24 hours.  Slideshow  Most Popular on Reuters Articles Video UPDATE 1-U.S. judge rules for Fed in Fox News Network request Hollywood stars visit Havana amid U.S.-Cuba thaw Pelosi lashes out against insurance companies Senator asks Clinton to explain Honduran policy Honda recalls 440,000 cars for airbag risk Yahoo Labs chief sees real-time search opportunity Obama says many months before U.S. exits recession  |  Video PM says Iraq cannot afford to pay General Electric Frontier deal could create risks for Southwest U.S. troops killed in deadliest month of Afghan war  |  Video Most Popular Articles RSS Feed Video  Obama talks GDP, jobs Pakistan building collapse horror Cash for clunkers program in doubt Iraqis clear up after bombing wave Double North Sea ship disasters "Beer Summit" at the White House Filipinos mourn Aquino Protests for Suu Kyi's release Deadly bombs hit Baghdad Burgers help Latvian economy Most Popular Videos RSS Feed Techonlogy news Web giants get together Microsoft and Yahoo have inked a 10-year Web search deal to better compete against market leader Google, but stopped short of combining their display advertising businesses.  Full Article    In Facebook's shadow While competing with Facebook is no easy challenge, some small social media sites appear to be finding their footing and growing at rapid rates, albeit from a very low base.  Full Article    NY singles go online The Big Apple has edged past Boston, Chicago, Seattle and Washington, D.C. as the best U.S. city for singles, thanks in large part to online dating.  Full Article    UK writes Twitter guide The British government has published a guide to help ministers understand how to use the social networking site, with the aim of extending its news and corporate messages online.  Full Article    eBay holds up its stars EBay will slash fees by 20 percent for its top-rated sellers and push their listings higher up in the search queue, part of steps to try to rev up its long-stagnant Marketplaces arm.  Full Article  Reuters.com:  Help and Contact Us  |  Advertise With Us  |  Mobile  |  Newsletters  |  RSS  |  Labs  |  Archive  |  Site Index  |  Video Index Thomson Reuters Corporate:  Copyright  |  Disclaimer  |  Privacy  |  Professional Products  |  Professional Products Support  |  About Thomson Reuters  |  Careers   International Editions: Africa  |  Arabic  |  Argentina  |  Brazil  |  Canada  |  China  |  France  |  Germany  |  India  |  Italy  |  Japan  |  Latin America  |  Mexico  |  Russia  |  Spain  |  United Kingdom  |  United States   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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