What's Out Next

May 02, 2007

Did Ritalin Kill Off The Record Industry?

Ritalin, ITunes best friend!
Written by Mitch Santell

For many years if you recall how the music business used to be, we had something called an album. From the early 1960's until the mid 1980's most kids, teenagers and adults would put on a long playing record and listen from start to finish. Most LP's (Long Playing Records) lasted about 20+ minutes.

Then the CD came along and it enabled us to carry over 70 minutes per music on one disk. After that? We entered the age of the iTunes music store. Did you know that the majority of sales at this online store is for one or two specific tracks. Most teenagers and young adults simply choose to not buy an entire album.

If you'll notice, it seems that most young people seem to have shorter and shorter attention span. Why? For me, I blame it on Ritalin. They tried to get oldest son Michael (now 19) on it. The school tried for almost five years. Then one day a teacher gave my son a stress ball and said "Michael, if you feel stressed, squeeze the ball. If not, stand up at the back of the room."

Well, when I was a kid, most of us boys (and girls too) took out our energy by forming garage bands. Now? They just drug our kids.

Want further proof of no attention span? The worst idea to come along in a long time is (drum roll).... a new web site called lonely girl 15.

Click on the graphic and it will take you there!

If you would like to know what it is like to take the drug Ritalin, simply watch these short 90 second irritating shows. (I can't even call them a show...forget it).

So not only are CD sales down by over 20%, now we have young people who can barely listen to one song or can only stand 90 seconds of video. I guess Gone With The Wind Is Out of the Picture?

At What's Out Next, we would prefer to simply call it a tequila sunrise!

At What's Out Next, we would prefer to simply drink a Tequila Sunrise!

Posted by mitchsantell at 11:02 PM

April 23, 2007

Apple Share Increasing: The Tipping Point!

According to Robin Bloor a writer for IT-Director.com, Apple is now at the tipping point. According to Mr. Bloor:

"We are witnessing a tipping point in the PC market. Apple now has 5% of the US market, which may seem small, but that 5% punches well above its weight because Apple focuses on the home market—that 5% is more like 15% of the people that actually choose their PCs (in the corporations you get what you are given) and at current rates of growth that 15% will be 30% in the US in about 2 years, unless Apple's momentum slows. Now consider the fact that the US market drives PC buying trends in the rest of the world to some degree and Apple's momentum comes more into focus."

Having just attened the "ASCAP-I CREATE MUSIC" EXPO, it is very evident that Apple has the lead. While there were a few PC's around, all I saw were Apple laptops flooding the conference! (Mitch Santell)

It's all about Good Times!

Risque by Chic was the first track on their third album, Good Times released January 1, 1979.

Posted by mitchsantell at 01:52 PM

April 20, 2007

THE ASCAP CONFERENCE IS HERE!

The most common question that I receive each and every day is: "Mitch, how do I move my music career forward?" My answer is a question. Ready? Does your net-work? The most common mistake that new people to the music business make is not networking and being mentored by other professionals. This is an important first step. If you look right now at the Billboard Top 100 chart, you'll notice that most of the bigger hits (with real sales) were written by by more than one songwriter. I strongly urge collaboration.

Right now as you are reading this entry, I am attending the 2007 ASCAP I create music. The first 24 hours have been a whirlwind of activiy contacts and workshops. Last night Randy Newman provided 90 minutes of performance, insights and ideas to almost 1000 musical professionals and new artists, producers and others from around the world.

If you recall, I invited all of you who read this blog to attend. Cost? About 350 dollars for the 3 day event. Now that I am through with the next phase of Movie Capital Limited, you'll be seeing more posts on a more regular basis. No worries. Now go do your dream!

ASCAP which stands for The American Society Of Composwers, Authors and Publishers puts on an event that started last year. The 2007 ASCAP I Create Music Expo is like no other single event I have ever attended in the musiz Biz, so I expect to see you all at next year's conference.

Direct from their web site....

The 2007 ASCAP "I Create Music" EXPO — the only national conference dedicated to songwriting and composing — is gearing up to be another one-of-a-kind, must-attend event for music creators across all genres and those that support them. Building upon the success of the sold-out 2006 EXPO, ASCAP has developed a wide array of exciting new opportunities in creating a bigger, more comprehensive and interactive EXPO for 2007.

At What's Out Next we always say that SUCCESS IS A LEARNED BEHAVIOR!

Artist: Hinkel Title: Not A Life-Saving Device

Posted by mitchsantell at 02:55 PM

April 02, 2007

EMI & Apple Sign DRM Free Deal!

At What's Out Next we received news from various news sources, this one came to us from Black Friars Marketing. When we first looked this up, we thought it was an April fools joke, but considering it's now April 2nd, this is real, so read on and smile.............

Record label EMI and Apple have reached an agreement that allows Apple's iTunes store to carry a significant portion of EMI's music catalog without Digital Rights Management (DRM) restrictions. The new DRM-free AAC files will sell for a premium price, $1.29 a song, allowing that music to be played on many third-party music players, not just iPods. For those who don't want to pay for the higher quality or lack of DRM, the same songs will be available including Apple's Fairplay DRM for $0.99. Buyers who purchase albums will automatically get the higher quality versions without DRM.

From a marketing point of view, we see this move as smart on both EMI's and Apple's part. For EMI, its higher-quality DRM-free music is now differentiated in a way that could dramatically increase its revenue and increase album sales over the less-profitable singles. For Apple, it now has a deal that proves that Jobs' claim to oppose DRM is real and differentiates Apple's services significantly from the draconian DRM restrictions Microsoft places on its music and video. And without as many DRM shackles to enforce, Apple has the potential to further simplify the user experience for its customers.

Most record labels will see this as a ground-breaking, dangerous experiment. But with CD sales down 20% this year, they had to do something. And kudos to Jobs and Apple for having the courage to call for the end of DRM and the business drive to make it happen. It's one small step for music, but one giant leap for consumer fair use rights in the digital age. We look forward to other labels following suit.

At What's Out Next, we say "hey man, give this a go!" Apple may save the music business yet and may the last DJ you'll ever need.

Posted by mitchsantell at 11:54 AM

March 31, 2007

Clubbo, Music You Can Believe In!

Joe Gore, Co-Founder of Clubbo Records

We all know of the amazing transition that the music business is going through! Clubbo is one of the finest music labels ever created. Why? Because the label does not take anything too serious. Why is that? It's a fake label. The brain child of Joe Gore, a studio guitarist for Courtney Love and Tom Waits and partnering with his wife Elise Maimberg, it's fun to read and hear some of the world class fake music on the site.

The Official Corporate Logo of Clubbo

As a special tribute to Joe and Elise, we thought it would proper to honor another fake group. Who are they? The Rutles who always went to number 1!

The Rutles was a parody of The Beatles, jointly created by Eric Idle and Neil Innes. The fictional group is best known for the 1978 mockumentary film about them, entitled All You Need Is Cash (often referred to as just The Rutles). Its tagline is: 'The musical legend which will last a lunchtime.' The film was written by Idle, who also co-directed with Gary Weis, and featured 20 songs (many of them prominently) written by Innes.

Posted by mitchsantell at 10:16 PM

March 25, 2007

CD Sales, Slip Sliding Away - Another 20%!

From The Wall Street Journal!

First Some Highlights from the Wallstreet Journal Article:

"One week, "American Idol" runner-up Chris Daughtry's rock band sold just 65,000 copies of its chart-topping album; another week, the "Dreamgirls" movie soundtrack sold a mere 60,000. As recently as 2005, there were many weeks when such tallies wouldn't have been enough to crack the top 30 sellers. In prior years, it wasn't uncommon for a No. 1 record to sell 500,000 or 600,000 copies a week."

"The music industry has been banking on the rise of digital music to compensate for inevitable drops in sales of CDs. Apple's 2003 launch of its iTunes Store was greeted as a new day in music retailing, one that would allow fans to conveniently and quickly snap up large amounts of music from limitless virtual shelves."

"It hasn't worked out that way -- at least so far. Digital sales of individual songs this year have risen 54% from a year earlier to 173.4 million, according to Nielsen SoundScan. But that's nowhere near enough to offset the 20% decline from a year ago in CD sales to 81.5 million units. Overall, sales of all music -- digital and physical -- are down 10% this year. And even including sales of ringtones, subscription services and other "ancillary" goods, sales are still down 9%, according to one estimate; some recording executives have privately questioned that figure, which was included in a recent report by Pali Research."

"Meanwhile, one billion songs a month are traded on illegal file-sharing networks, according to BigChampagne LLC."

Now our view at What's Out Next:

The reason that the CD sales suck are for the following reasons:

One - The business has been run by accountants. One of the greatest record labels ever created was A&M Records. To look at the record industry's downfall, look at the birth and death of A&M. Started by Herb Alpert and Jerry Moss in 1962, after spending the 1980s having its records distributed through BMG, A&M was sold to PolyGram in 1989 for a reported $500 million. Following the buyout, A&M became one of PolyGram’s strongest and most dominate imprints, while continuing to be independently managed.

A&M under Universal and Interscope In 1998, PolyGram was bought out by Seagrams and folded into its Universal Music Group. The consolidation of these two music giants triggered a shake up of labels. Subsequently, A&M was reduced in size and stature, and merged into Universal Music Group’s Interscope Records division (which at this time also absorbed Geffen Records.) A&M closed its doors at the Chaplin lot in early 1999. During the farewell celebration, the company’s staff placed a black band over the A&M sign indicating the death of the company. Most of the company’s workforce (some of whom had been with the company for a decade, or more) were let go, while many of its artists were dropped. Alpert and Moss sued Universal Music Group in 2000, claiming that they had violated a contractual agreement that stated A&M Records would be allowed to retain its corporate culture.

The first multi-platinum A&M Records release under Universal Music Group and Interscope Records was Sting’s 1999 album Brand New Day. In addition to Sting, in the time since A&M’s restructuring, the company has continued to attain success with releases by its few retained mainstay acts, such Sheryl Crow and Bryan Adams—as well as by newer acts like The Black Eyed Peas and Pussycat Dolls.

Two - There is no artist development. Labels only care about how much they sell and don't give a damn about follow up sales. The film business does a better job of this.

Three - One Track Sales, Lake of Time! - The the iTunes Music Store works great, it encourages SINGLE SONG SALES and reduces the sales of complete albums. While most fans will support their favorite group, the money is not in the music sales, the money is in the live performance. Am I right? Look at the Eagles and The Rolling Stones, they do it for the MONEY HONEY!

It's all about still being crazy enough to care about the business and build brands, not just one hit wondors. No worries, we are just crazy!!

Still Crazy.jpg

Still Crazy After All These Years, Originally Released by Columbia
Records in 1975

Posted by mitchsantell at 05:13 PM

Chic & Good Times!

(Bernard Edwards, Nile Rodgers and David Bowie in 1979)

What inspires us most at What's Out Next are those who came before us who made a real impact on the music business. The best bass player I ever heard was Bernard Edwards. There is no one finer. When you go back and listen to the magic that Nile, Bernard and Thompson made, it was pure magic. The sad thing is the passing of two of the three founding members. Now onto our history lesson!

Chic is an American band that was formed in 1975/76 by guitarist Nile Rodgers and bassist Bernard Edwards. They are best remembered for their disco songs, including "Dance Dance Dance (Yowsah, Yowsah, Yowsah)" (1977), "Everybody Dance" (1977), "Le Freak" (1978), "I Want Your Love" (1978), "Good Times" (1979), and "My Forbidden Lover" (1979).

Bernard and Nile had former 'Labelle' and 'Ecstacy, Passion & Pain' drummer Tony Thompson join the band. And they performed as a trio doing covers at various gigs for awhile. But they needed a singer to front the band.

And that singer was Norma Jean Wright, who sang lead on their demotape and on all the songs on their first, selftitled, album (1977). Right after the sessions ended for their debut album Chic began to work on Norma Jean's selftitled debut solo album released in 1978. This album contained club hit 'Saturday.' To facilitate a separate but parallel (to Chic's) solo career for their lead singer Chic had agreed to sign her to a separate contract and label from the band. Unfortunately the legalities of this contract eventually forced Norma Jean to leave the band in mid (1978). But not before taking part in the sessions for Chic produced Sister Sledge album We Are Family.

But before that, the immediate success of their debut album and the hits "Dance Dance Dance (Yowsah, Yowsah, Yowsah)" (1977) & "Everybody Dance" (1977), sent Chic out on the road. They performed as a quartet (Nile, Bernard, Tony & Norma Jean) up until February of (1978) but Nile & (Ber)Nard thought that their live performances would improve both in sound and visuals if they added another girl to front the band. Norma Jean suggested her friend Luci Martin and she became a member in late winter/early spring of 1978.

At the same time, Edwards and Rodgers composed, arranged, performed, and produced many influential disco and R&B records for both established artists and one-hit wonders, including Sister Sledge, Sheila and B. Devotion, Diana Ross, and Debbie Harry. Chic also helped introduce the world to a up-and-coming young vocalist named Luther Vandross, who sang on one of Chic's albums.

In the 1980s, the band struggled to obtain airplay and sales and eventually disbanded. Rodgers and Edwards separately produced records for a wide variety of artists. Rodgers was largely responsible for the breakthrough success of Madonna in 1985 with her Like a Virgin album. In the early 1990s, Rodgers and Edwards regrouped and worked on new material (Single Chic Mystique and subsequent album Chic-ism, both of which charted). Edwards died in 1996 in Japan, but Chic continued to tour with new musicians. Thompson passed away in 2003.

In addition to defining the disco sound, Chic helped to inspire other artists to forge their own sound. For example, The Sugarhill Gang used "Good Times" as the basis for their hit Rapper's Delight, which helped launch the Rap/Hip-hop music format as we know today. And the group Queen got the inspiration for their hit single "Another One Bites The Dust" from Chic's familiar bass guitar riffs.

It's all about Good Times!

Risque by Chic was the first track on their third album, Good Times released January 1, 1979.

Posted by mitchsantell at 04:31 PM

Next? Ringtones Need A License!

According to Susan Butler at Billboard........

The Copyright Office has decided that compositions used for ringtones may be subject to a compulsory license. The decision is a victory for record labels that want to offer ringtone operators the master rights and publishing rights as one package.

“This decision injects clarity into the marketplace -- clarity that will help satisfy fans’ hunger for the latest hits from today’s best artists by affording record companies and ringtone providers the ability to move new offerings quickly and easily to consumers," says Steven Marks, executive VP/general counsel for the RIAA. "Ultimately, we’re all seeking a vibrant mobile market. This decision helps us further that goal.”

Last month, the Copyright Royalty Board (CRB) referred the question about ringtones and compositions to the Copyright Office for a decision. The CRB wanted to know whether compositions used for ringtones -- monophonic (single melody line) or polyphonic (melody and harmony) -- or for master ringtones (taken from a master recording) fall under the compulsory license provisions of section 115 of the Copyright Act. If so, the CRB would determine rates through its rate-setting proceeding. If not, then publishers would be free to withhold permission to use the compositions unless labels or ringtone providers negotiate a license and a royalty rate for each use.

Under section 115, anyone, like a record label, may obtain a mechanical license or a digital phonorecord delivery (DPD) license to record and distribute "phonorecords" of compositions that were previously recorded and released in the United States. The rate is set by statute, which is periodically adjusted through a copyright tribunal proceeding.

In its 35-page opinion, the Copyright Office concluded that ringtones and master ringtones are "phonorecords" under copyright law. As a result, delivery of ringtones by wire or wireless technology makes them a digital phonorecord delivery.

As long as the ringtones are merely excerpts of a larger musical work or from a preexisting sound recording, then the composition used for the ringtone is subject to the compulsory license, the decision says. For the composition to fall under the compulsory license, the ringtone may not recast, transform or adapt it -- or include additional material -- in such a way that it becomes an original work of authorship (i.e., a derivative work). If it does, then a license must be negotiated with the copyright owner.

"We are disappointed in the Register's decision, which could hurt songwriters significantly and represents an unprecedented broadening of the compulsory license for musical works," says a National Music Publishers' Assn. spokeswoman. "Of particular concern is that copyright owners who have negotiated ringtones licenses in the free market for years will now be subject to government regulation. We see no justification for this, and are currently reviewing our legal options."

The decision also makes the portion of a composition that has been recorded only as a ringtone subject to a compulsory license as well. "If a newly created ringtones is considered a derivate work, and that work has been first distributed with the authorization of the copyright owner, then any person may use the statutory license to make and distribute the musical work in the ringtone," the opinion states.

Briefs from interested parties arguing what statutory rates should be for ringtones and other formats are due to be filed with the CRB in mid-November.

At What's Out Next, we say "hey man, give this a go!" Who knows dear friends, a legal license may very well be the last DJ you'll ever need.

Posted by mitchsantell at 04:20 PM

March 22, 2007

Starbucks Is The Last Retail Record Store, Ask Paul McCartney and Mitch Santell!

Howard Schultz, chairman of Starbucks, waved to Paul McCartney announcing his next Album would be sold through Starbucks!

"The last great record store in America is Starbucks!" Who said this? Me, Mitch Santell., CEO and Founder of Movie Capital Limited, "bridging the gap between film and muisc." ™ Starbucks has all the quality of a local Mom and Pop record store. Their help is friendly, the coffee is fresh and hot, there is always music playing and Starbucks has create a great sense of community." In contrast to those other arrangements, the deal for Mr. McCartney’s next album, expected in early June, does not restrict it to just one retail chain; Starbucks said the album would be sold at other outlets.

Still, the deal does signal that another nontraditional company is nudging its way into the music distribution system that has long been dominated by traditional record corporations. “It’s a new world now,” Mr. McCartney, the former Beatle, said yesterday during a video chat with Howard Schultz, Starbucks’s chairman, conducted in front of thousands of people attending the shareholders’ meeting. “People are thinking of new ways to reach the people. For me, that’s always been my aim.”

According to Jeff Leads, who writes for the New York Times:

Mr. McCartney’s deal comes at a time when his music has been meeting with mixed results. His 2002 “Back in the U.S.” live album, which followed an extensive concert tour and included performances of the Beatles’ hits, has sold 994,000 copies domestically, according to Nielsen SoundScan data. His last album of new pop songs in 2005, “Chaos and Creation in the Backyard,” sold about 533,000 copies.

According to other sources:

The announcement was made at the annual company shareholder meeting in Seattle, Washington. McCartney appeared on a live video feed from London to be present for the meeting and the announcement.

"For me, the great thing is the commitment and the passion and the love of music, which as an artist is good to see," said McCartney, who seemed very optimistic about signing up with the label. "It's a new world now, and people are thinking of new ways to reach the people and for me that's always been my aim."

McCartney's new album is due out this summer and will be available in most stores. His album will be the first released under the Hear Music label. Starbucks and Concord have high hopes for the label in their joint venture.

"Having the honor of releasing an album by Paul McCartney as our first project under the Hear Music label is in a word, remarkable," Ken Lombard, president of Starbucks Entertainment, said. "This demonstrates how Hear Music can present even the most successful recording artists of all time with unique opportunities to reach existing fans, as well as a new audience of listeners."

Starbucks released news of its new label in early March. It's decided to sign both popular and new artists to its label. They plan to distribute the productions throughout their retail stores and music retailers.

Starbucks executives suggested they could do better by capitalizing on the coffee chain’s audience of loyal latte drinkers.

Our take at What's Out Next, is that we are not amazed, we knew it was a matter of time before this would happen!

"McCartney" Chart Information
U.S. Release Date: Apr 20 1970
U.S. Chart Entry Date: Dec 31 2002
U.S. Chart Peak Date: May 6 1970
U.S. Chart Peak: 1
U.K. Release Date: Apr 17 1970
U.K. Chart Peak: 2
Charted for: 47 weeks

(Click on the bold word TIME above and hear
Maybe I'm Amazed)!

Posted by mitchsantell at 10:47 AM

March 20, 2007

It's All On The Tape!

Music has an amazing way of taking you back to another time. When Fleetwood Mac was in the studio back in 1976 working on Rumors released in 1977... they had no idea what a blockbuster the album would be. Going through an unbelievable amount of pain and drama, Fleetwood Mac would go on to produce an album that had so many hits on it that some Executives within the music industry simply wanted to call the album "Fleetwood Mac's Greatest Hits!"

What most of you don't know who are out there in the digital music space is this amazing fact. Rumors was recorded on good old Ampex 456 Tape. Two inches wide and a standard for 16 and 24 track recording, the feel off this tape had a warmth that is hard to match today.

Here is a little known fact about that album. Ready? Back in 1977 when Rumors was recorded they had a "safety back up" of the drum tracks. (This was also on 456 tape). By the time they got down to the final mix of the album, they noticed that all of the "high end" on the drum tracks including the high-hat could no longer be heard. It had rubbed off of the tape.

Lindsey Buckingham and Richard Dashut, the producers on the record knew they had a huge problem on their hands. What did they do? Using two multi-track recorders they had the original safety track playing in one ear and the original finished track in the other. This was painstaking work as they had to match the finished track with the safety in order for the tracks to work.

At What's Out Next, we know what dreams are made of and we are still in awe of the magic that was created. Now that is magic to our ears!

Posted by mitchsantell at 12:34 PM