Forum Views ()
Forum Replies ()
Read more with google mobile :
Digital upstarts still see potential in downloads
|
Edition:
U.S.
Article
Comments (0)
Save
Email
Print
Reprints
Most Popular
Most Shared
UPDATE 1-FT says BP stops supplying fuel to Iranian aircraft
05 Jul 2010
BP eyes stake sale as oil reported in Lake Pontchartrain
| Video
05 Jul 2010
Bulls on the run in shortened week
05 Jul 2010
France to look at possible U.S. sub link to sinking
02 Jul 2010
Tests on Gulf oil "superskimmer" inconclusive: ship owner
| Video
05 Jul 2010
U.S. authorities seize websites over pirated movies
30 Jun 2010
Special Report: Should BP nuke its leaking well?
02 Jul 2010
UK Stocks -- Factors to watch on July 6
1:56am EDT
BP reported to halt fuelling of Iranian planes
05 Jul 2010
Analysis: China makes haste slowly globalizing the yuan
05 Jul 2010
Turkey wants Israel apology
05 Jul 2010
Alternative rapper Dres resurrects Black Sheep
02 Jul 2010
BP eyes stake sale as oil reported in Lake Pontchartrain
| Video
05 Jul 2010
India opposition strike over fuel price hike disrupts
04 Jul 2010
UPDATE 1-FT says BP stops supplying fuel to Iranian aircraft
05 Jul 2010
"Twilight" sequel eclipsed by earlier installment
05 Jul 2010
UK coalition launches shake-up of political system
05 Jul 2010
Bank of China: New funding to suffice for 3 years
05 Jul 2010
Sanctions are biting in Iran - exiled group
05 Jul 2010
Kamada gets US FDA approval for AATD drug Glassia
02 Jul 2010
Pictures
Tech watch
A recent sampling of our best pictures from the world of science and technology. Slideshow
Digital upstarts still see potential in downloads
Digg This
Tweet This
Share on LinkedIn
Share on Facebook
Related News
Minogue aims to spread the love with "Aphrodite"
Fri, Jul 2 2010
Eminem, clean and sober, draws on new inspiration
Sat, Jun 26 2010
Billboard CD reviews: Kylie Minogue, Dierks Bentley
Fri, Jun 25 2010
Music business badly needs Eminem's "Recovery"
Mon, Jun 21 2010
Cyrus steps out of tween idolhood toward "Liberty"
Sat, Jun 19 2010
Related Topics
Technology »
ipad »
Music »
Media »
By Ed Christman
Mon Jul 5, 2010 10:38pm EDT
NEW YORK (Billboard) - Much of the buzz around digital music is focused on Spotify's plans for the United States, Rdio's new subscription service, and what Apple's anticipated cloud-based music service will look like.
But while streaming music services are capturing the most attention, two other entrants in the digital music market are betting there's still opportunity in selling digital downloads.
In May, new digital retailer Immergent.com flipped the switch on its public beta, boasting more than 8 million songs from the four majors and independent labels. On June 8, music startup ScatterTunes.com released its latest round of multimedia "V-Album" releases, including editions of Taylor Swift's "Fearless" and Reba McEntire's "Keep On Loving You." ScatterTunes also runs a download store with 3 million songs from all the majors and leading indies.
Back when HMV opened its first two stores in New York in 1990 or when Amoeba Music expanded beyond the Bay Area to Los Angeles in 2001, the major labels welcomed the moves.
Today, you would think labels would applaud the fact that someone is investing in selling music.
However, label executives have been largely indifferent, probably because so far no one has managed to lay a glove on iTunes. Walmart, the largest retailer in the world, is a digital nonentity: Its download store commands a meager 0.17% share of the U.S. market, according to Billboard estimates. Amazon may be making its presence felt in selling digital album downloads, but it hasn't exactly lit up the scoreboard, so far capturing a market share of 1.4% through its MP3 store.
While the industry had high hopes for both of those digital efforts, Walmart has done zilch in the way of promotion and Amazon's marketing seems limited to selling digital music alongside CDs and loss-leader sale pricing, apparently hoping that customers shopping for other products will stumble into its MP3 store.
Given that disappointing track record, jaded label executives may wonder how Immergent and ScatterTunes intend to succeed where Walmart and Amazon have fallen short.
Immergent is banking on its social networking functions to distinguish itself with music consumers, such as the ability for registered customers to build playlists that others can purchase. Immergent expects to be cash-flow positive in 18 months and break even in two years, according to Immergent founder/CEO John Trickett, the former head of now-dormant 5.1 Entertainment Group, which included the Immergent, Silverline and Myutopia record labels. The company participated in the major-label consortium that developed the DualDisc format.
Meanwhile, ScatterTunes is striving to distinguish itself by aligning with labels and artists to help promote the site through its V-Album format, which, like the iTunes LP, attempts to bring back the album cover experience of old. For consumers who already have a regular digital copy of a V-Album title, the company also sells "V-Wraps" that contain all the multimedia content included in a V-Album, including lyrics, photos and videos. The company is the brainchild of CEO Witt Stewart, whose music background includes artist management (Carole King, Jerry Jeff Walker, Joe Ely) and co-ownership of Freeflow Productions, which developed and produced Christopher Cross' debut album, among other releases.
Unlike Apple, which charges artists and labels to construct an iTunes LP, ScatterTunes builds the V-Wrap around an album for free, and within 48 hours, once the necessary materials are provided, according to ScatterTunes COO Christopher Gentile.
While ScatterTunes prices most albums at $9.99, with V-Albums ranging from $9.99 to $19.99 and V-Wraps, when available, sold separately for $2.99. To help promote the release of the V-Album edition of "Fearless," ScatterTunes has been giving away 100,000 V-Wraps of the album to capitalize on the fact that it had already sold 5.9 million units in the United States, according to Nielsen SoundScan.
ScatterTunes has created 24 V-Albums and expects to build five to 10 V-Albums per month, Gentile says. Acts that have received the V-Album treatment include Jewel, Darius Rucker, Dierks Bentley, Jimi Hendrix, Katy Perry, Saving Abel, John Mayer and Sheryl Crow.
V-Wraps contain links to an artist's website and to other online vendors where customers can purchase merchandise or concert tickets. If the customer leaves the site to buy merch elsewhere, ScatterTunes gets a commission that it splits with labels.
Like iTunes, the ScatterTunes store requires customers to download software to access it. All ScatterTunes downloads are unencrypted, 320 kbps MP3 files and can be imported into iTunes.
"We are not necessarily competing with iTunes but rather being compatible to them with all of the products that we deliver," Gentile says.
(please visit our entertainment blog via www.reuters.com or on blogs.reuters.com/fanfare/)
Technology
ipad
Music
Media
Add a Comment
*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Tuesday, 6 July 2010 Factbox
Greece on target to tackle deficit
Turkey wants Israel apology but Israel rejects demand
UK coalition launches shake-up of political system
|
Thousands mass near Gaza border for Shalit concert
Clinton vows support for Georgia, slams Russian 'occupation'
Bosnian ex-leader fights extradition attempt in Britain
Iran says planes denied fuel due to sanctions
Kyrgyz leader warns of new unrest
Britain, Germany, UAE deny refusing fuel to Iran planes
Tour peloton shrugs of cobblestone worry
Iranian planes can still refuel in Dubai: airport spokesman
EU parliament group backs U.S. bank data deal
|
Biden defends Afghan war strategy
US commander Petraeus 'may tweak Afghan strategy'
Guinea security forces break march with tear gas
|
Three NATO soldiers killed in Afghanistan
Mexico state votes signal tough 2012 election race
|
Iran says Germany, UK and UAE refuse fuel to its planes
France won't charge reporters, aid workers for rescue
|
Romanian military aircraft crash kills 10
|
EU eyes visa-free travel for Taiwan visitors
Israelis, Palestinians call for prisoner exchange
|
Pakistan end their Australia losing streak
Thailand seeks extension to emergency rule
Clinton concerned over Russian bases in Georgia region
Pakistan kills wanted Taliban commander
Chinese court sentences US geologist to 8 years
Galliano sends out a 'Wonderland' garden of couture for Dior
US-ENTERTAINMENT Summary
Louis Gossett details career marred by racism and drugs
"Hannah Montana" starts final season as Miley moves on
"Twilight" sequel eclipsed by earlier installment
Woody Allen starts Paris shoot with Carla in the wings
Japanese eating champ released after hot dog scuffle
Senegal's men win Soccer v Soaps television war
Twilight sequel eclipsed by earlier installment
|
Hannah Montana starts final season as Miley moves on
|
Louis Gossett details career marred by racism and drugs
|
Reports of planes denied refuelling are 'false': Iran
India's poor risk 'slow death' recycling 'e-waste'
Iranian planes are getting fuel
Ecuador says Colombia's Santos could be arrested
|
Argentina claims victory on bond deal
US-TECH Summary
Afghanistan urges Pakistan to target terror groups
Digital upstarts still see potential in downloads
Obama and Netanyahu to hold fence-mending talks
Iranian planes are getting fuel: foreign ministry
|
Fujitsu to let developers test software for free-Nikkei
4.2 billion dollars have left Kabul airport: report
News Corp in talks to sell ads on MySpace: report
McCain: Kandahar is key to victory in Afghan war
Cuban hunger striker says he is near death
|
Israelis and Palestinians call for prisoner exchange
Thailand extends emergency rule in Bangkok: govt
Twelve die as Turkish troops clash with PKK
|
Firebombs thrown at Indonesian magazine offices
New death in restive Indian Kashmir: police
Japan PM in danger of missing election target: report
|
Greenpeace publicises companies on Indonesia paper
Celebrations as Dalai Lama turns 75
Vietnam murders blamed on World Cup
Aussie rockers to pay for 'Kookaburra' rip-off
Warmer White House welcome expected for Netanyahu
Australia plans to ship refugees to Timor
Power outage hits Toronto during Queen's visit
Japan parties pin poll hopes on celebrities
Philippine police say Chinese man rescued
Clinton vows support for Georgia, slams Russian 'occupation'
Eating champ leaves NY jail after hot dog fracas
Minimum and maximum temperatures in Celsius
Fujitsu to let developers test software for free
|
Google, Bing search engines turn to music
|
Digital upstarts still see potential in downloads
|
China sets new record investment in Japan bonds
News Corp in talks to sell ads on MySpace: report
|
Greenpeace names, shames companies over deforestation
Seoul shares turn up 0.6 pct on autos, techs
Disney may start Shanghai park work in Nov: report
China to pump billions into western regions
Chinese city to become next gourmet hotspot
S.Lanka dismisses EU's trade concession withdrawal
China may strip sovereign wealth fund of bank stakes
Google, Bing search engines turn to music
Taiwan's Chinatrust: still seeks AIG unit stake
Enrique Iglesias mixes things up with new album
Restrictive Lollapalooza contract draws state scrutiny
PAKISTAN
S.Korea Q2 FDI plans down 6 pct y/y
Extraordinary "Inception" may leave you exhausted
Queen Elizabeth tours Toronto film studio
Fresh faces, new-look veterans enter Emmy spotlight
Barber of Seville director leaves La Scala production
Fresh faces, new-look veterans enter Emmy spotlight
|
Extraordinary Inception may leave you exhausted
|
Restrictive Lollapalooza contract draws state scrutiny
|
Google, Bing search engines turn to music
|
Enrique Iglesias mixes things up with new album
|
New Twilight sequel trails previous film overseas
|
Queen Elizabeth tours Toronto film studio
|
Israeli soldier faces manslaughter charges over Gaza deaths
Lauvergeon stays in power at nuclear group Areva
Iran says planes get fuel; EU bans some for safety
|
Global chip sales up 4.5 percent in May versus April: SIA
Sarkozy facing crisis over campaign donations
Iran agrees to resume nuclear talks, with conditions
Obama and Netanyahu to hold fence-mending talks
|
Ryanair, Aer Lingus lose appeals in takeover battle
Dutch cabinet advisors ban Twitter during talks
Spain's FM in Cuba as hunger-striker nears death
New sanctions seen hurting Iran businesses in Dubai
Sri Lanka hardliners protest U.N. war crimes probe
|
Netflix inks movie deal with Relativity Media
Chavanel in yellow as Schlecks, Armstrong crash
Bus driver 'shoots dead six near Cairo'
China denounces new unilateral U.S. sanctions on Iran
|
Polish PM vows to work closely with new president
|
Egyptian driver shoots dead six labourers
Thai government extends state of emergency
|
Turkish troops clash with PKK, 13 killed
Hundreds of thousands mourn Lebanon's Fadlallah
|
Global chip sales up 4.5 percent in May versus April: SIA
Yemen faces Qaeda, pirate threats in vital strait
|
Israeli and Turkish generals still talking amid row
|
Putin sets out new strategy for N.Caucasus
|
Thai government extends state of emergency
Philippine Supreme Court gets on Facebook, Twitter
China says jailing of U.S. geologist its own affair
Japan's NHK won't air sumo meet over mob scandals
Netflix inks movie deal with Relativity Media
|
Global chip sales up 4.5 percent in May versus April: SIA
|
Dutch cabinet advisors ban Twitter during talks
|
At Sun Valley, brighter moods may not mean big deals
|
IMF says time is right for higher S.Korea policy rate
Canadian rockers Arcade Fire maintain DIY mystique
New "Twilight" sequel trails previous film overseas
Pakistani rupee falls to record low; stocks still dull
Sluggish Asian markets revive on Shanghai rebound
DEALTALK-MBK's $2 bln Taiwan auction may have broader PE impact
S.Korea govt official sees August rate rise -report
S.Korea c.bank to sell 2.5 trln won in MSB on Wed
Seoul shares turn up 0.6 pct on auto, tech issues
George Michael arrested after car crash
|
Canadian rockers Arcade Fire maintain DIY mystique
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights