Microsoft lost trust from its hardware partners with the Zune MP3 player which ultimately caused the product to fail. The new Facebook phone could be equally disastrous by pinning HTC against its current software partners.
HTC has strong relationships with Google for Android OS and Microsoft for Windows Phone 7, relationships that could be jeopardized in moving forward with a Facebook phone.
“One of the key standout features for Windows Phone 7 is social networking and in particular, Facebook integration (Facebook and Microsoft are partnered),” reports Digital Trends. “Google, on the other hand, is at war with Facebook with Google+, and monetizes Android after-the-fact with services like Google+.”
“Right now Apple, Microsoft and others spend lots of time on Facebook, but they aren’t likely to continue if they view Facebook as a potential competitor,” suggests the post. “Facebook should be focused on building the best Facebook app for every major platform.”
In a related survey conducted by AllThingsD, results suggest an overwhelming number of readers had little to no desire for a Facebook phone (81 percent indicated no interest and 12 percent said they would consider it).
A recent survey of dedicated music demographics indicates access to music from services like Spotify, YouTube, Grooveshark and others significantly decreases the interest in purchasing across all groups except the least dedicated.
“Services like Spotify increase access, but also decrease spending in many situations. Which means less money from higher-returning formats like iTunes downloads, CDs, and LPs,” according to Digital Music News. “But free access also includes a range of other services, including YouTube, Grooveshark, and various freebie competitors. And all of these are sapping the juice out of higher-end impulse buying, once a music industry lifeblood.”
The recently released findings from NPD Group and NARM have already had an impact. “Following a study that claims that streaming music is damaging to record sales, a distributor representing more than 200 labels has withdrawn its entire catalogue from Spotify, Napster, Simfy and Rdio,” reports Huffington Post.
“As a distributor we have to do what is best for our labels,” STHoldings explained in a statement. “The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity.”
In a related All Things D story, Spotify announced it has new things on the horizon, but has yet to provide details. “In New York on November 30th, we are holding our first press conference to unveil the latest major development from Spotify — and a new direction for the company. The press event will be hosted by CEO and Founder Daniel Ek, along with special guests,” wrote the company’s PR unit.
All Things D speculates Spotify may be releasing a U.S. service to buy songs (already available in Europe) or an iPad app, but “it is courting the risk of overpromising” if these are the only developments to be announced.
PCWorld offers its take on the Amazon’s new Kindle Fire and, overall, the review is not kind.
“The Kindle Fire is best considered a relatively inexpensive, hassle-free but flawed way to consume books, music, and videos purchased at Amazon,” indicates the article. “As a tablet, though, the Fire can’t hold a candle to the best tablets available today: It has subpar specs, a limited interface, and a surprisingly messy app store.”
The review praises the device’s integration with Amazon’s media storefronts as its strongest feature, especially in regards to consolidating the user experience: “The Newsstand, Books, Music, and Apps tabs all take you to your personal library first, and then offer a prominent but not offensive option to go to the store for that category.”
However, the write-up details problems with what the reviewer sees as several design flaws, app behavior that was “all over the map,” skimpy specs and occasionally “glitchy” software issues.
Bottom Line: “The Amazon Kindle Fire makes trade-offs to achieve a $200 price. It’s easy to dismiss some of the compromises and weaknesses of the Kindle Fire as the sacrifices necessary to achieve a price point, but the reality is that the Fire may not meet your expectations if you’re looking for an Apple iPad 2-like tablet. For those people who go in knowing what they’re getting, and who want an inexpensive tablet that capably — though not spectacularly — handles their Amazon books, music, and video, the Kindle Fire’s limitations may be acceptable. However, the Fire falls far short of providing a full and satisfying tablet experience.”
Speaking at the GigaOM RoadMap conference this week, Pandora CTO Tom Conrad suggested that more than half of Americans do not pay for music each year, while 40 percent only pay about $15 annually.
“Conrad revealed that his company aims to monetize the vast majority of listeners who pay little or nothing per year for music,” reports TechCrunch.
“While there are opportunities to build businesses on the 10 percent who are willing to pay more, Pandora plans to focus on monetizing the majority via advertisements. Other music companies might be wise to target the non-paying segment as well.”
Pandora is working to expand across multiple areas, including “in the home, the television, the living room, the bedroom, even embedded above the ice maker on your refrigerator,” and in your car.
Conrad doesn’t feel threatened by Spotify’s success. “I see Spotify as largely complementary to what Pandora does,” he said. “Spotify’s CEO Daniel Ek says he thinks Spotify is the future of the record store, and that Pandora is the future of radio.”
An increasing number of consumers are switching to digital content for movies, music and books. The approach has benefits, including convenience and cost, but may also be leading to a loss of rights and abilities we’re accustomed to as consumers.
Fortune writer J.P. Mangalindan expressed concerns that systems such as Amazon’s new lending library would change the meaning of ownership since users would be relinquishing actual ownership of content in favor of a rental model.
The ability to stream digital content online has led to the same kind of transformation. Services such as Spotify and Netflix have allowed users the freedom of streaming content anywhere, and have made subscribing to such a model affordable and convenient.
GigaOM raises an interesting concern: “Apart from our simple human need to own and collect physical objects, however, there’s also the way that renting changes our legal relationship to the content we are consuming. Amazon has shown the downsides of this in the past by actually deleting copies of e-books from people’s Kindles remotely after a complaint by the rightsholder — and those were copies that people had actually bought, not rented.”
If we move closer to a streaming, rental-style model for all content then perhaps consumers would eventually prefer a short-term license to use content over actually owning it. But what if Netflix or Amazon decide to change their terms of service? “What if companies decide you no longer have the right to watch certain TV shows or read certain books?”
AirCassette is a $1.99 iPhone app that mimics the look of an audio cassette tape while playing (including the handwritten script of a label sticker).
“The reels actually spin and you can create and share mix tapes with your friends via e-mail or Facebook, just as we used to do back in 1986,” reports The New York Times.
The AirPlay-compatible app is from Finnish programmer Majasalmi, known for its “Russian Roulette” iPhone game, and features its own iTunes music interface.
The app includes multiple cassette designs that resemble popular blank tapes of the audio cassette era.
“Watching a cassette tape spin on the iPhone’s high-resolution display is oddly calming and, thanks to digital compression, the audio is far superior in AirCassette than it ever was on my Sony Walkman,” comments John Biggs in Gadgetwise.
Google’s music download store is expected to link with Google+ within the next two weeks. However, the service may prove disappointing if the company cannot secure deals with the four major music labels.
Tentatively named Google Music, the service would follow in the footsteps of Spotify, which earlier this fall linked with Facebook to promote its music service.
The Google+ integration would allow users to recommend songs to Google+ contacts, who could then listen to those songs once for free. MP3 downloads would then be available, most likely for 99 cents each.
Music labels have shown hesitation about the service’s propensity to allow piracy, in addition to the lack of revenue for record companies, as the music locker is free.
New platform from San Francisco-based Veokami aggregates user generated videos of concerts.
Veokami crawls YouTube and automatically puts together a playlist of videos from a single concert.
Videos are then synchronized with each other to offer Veokami users the ability to switch between the different camera views that were found on YouTube, without interrupting the flow of the music. Clips can also be arranged based on audio and video quality.
According to GigaOM, “the goal is to extend its platform so that artists, promoters and — most importantly — fans will be able to build these pages themselves. That could end up being a very powerful promotional tool for artists as they look to show listeners what it’s like to be at one of their shows.”
The company’s site also suggests the tool could be useful for organizing videos from political events and conferences.
Janus Friis, co-founder of KaZaA, Skype, Joost and Rdio (with partner Niklas Zennstrom) is working on a new online video subscription service that will be available soon in the UK.
According to GigaOM, Friis has been “assembling an A-team of media and Web technology experts to launch a site that seems destined to replicate the model behind their music subscription site Rdio in the video space.” Offices have been set up in Santa Monica and Europe.
From the follow-up Q&A: Vdio (Vee-dee-o) is in closed beta for the UK and is privately funded, while the assembled team’s experience comes from companies such as Netflix, Microsoft, TV Guide and Napster.
A spokesperson for Zennstrom’s VC company Atomico confirmed that Zennstrom is not involved in the project.
Google has announced that through the new Merch Store feature, YouTube partners “will be able to sell artist merchandise, digital downloads, concert tickets and other experiences to fans and visitors.”
The Merch Store evolved from multiple partnerships: Marketing enabler Topspin will handle merchandise sales, while concert organizer SongKick will handle ticket sales. Amazon and iTunes will power transactions for music download transactions.
“The ability to add merchandise sales, ticket sales, digital downloads and more to an artist’s YouTube site definitely gives these sites more of an engaging presence for artists with their fans,” reports TechCrunch. “These destinations will now become more than just a way to discover music videos, but also a way to transact business and actually see the artist and buy their works.”
The feature should arrive in the coming weeks. YouTube will take a percentage of sales to cover costs.
Innovative Icelandic musician Bjork is combining technology and music with her release of the first ever “app-album.”
The collection features games, visualizations and songs that allow fans to interact with the music in a unique way.
“The main ‘Biophilia’ app is available for free,” reports CNN Tech. “Each sub-application, which contains a song and some sort of interactive game, costs 99 cents, or $9.99 for the whole album. A non-app version of the album also is available.”
“Apps and iPads are just tools — they have to be human and they have to have soul,” comments the singer.
Article includes podcast and transcript of CNN Radio interview with Bjork.
Check out this fascinating TED presentation on data visualization, crowd-sourced collaborative art projects, and the interface as a narrative device.
“We’re collecting and creating all kinds of data about how we’re living our lives and it’s enabling us to tell some amazing stories,” says digital artist Aaron Koblin. The TED description suggests, “his works brilliantly explore how modern technology can make us more human.”
Compelling tweet from the opening: “19th Century culture was defined by the Novel, 20th Century culture by Cinema — the culture of the 21st Century will be defined by the Interface.”
The second half ties in with interactive, collaborative music videos featuring Johnny Cash and Arcade Fire, earlier reported by ETCentric.
Google is expected to roll out its own music store in the next few weeks.
It will reportedly tie into the company’s Music Beta service that allows users to upload and store their music collections.
Music Beta was announced after launch of Amazon’s unlicensed service, Cloud Drive. Also worth noting: “Apple got licenses for iTunes Match, which will instantly link a user’s songs to Apple’s master collection.”
“Its earlier negotiations with music companies, for a so-called smart locker service — a Web storage system that lets people link their digital music collections to a vast central database — broke down over financial terms and the music companies’ complaints that Google was not doing enough to curb piracy,” reports The New York Times.
New research from Rice and Duke universities challenges conventional wisdom by suggesting that the removal of digital rights management restrictions can actually decrease music piracy.
“Marketing professors Dinah Vernik of Rice and Devavrat Purohit and Preyas Desai of Duke used analytical modeling to examine how piracy is influenced by the presence or absence of DRM restrictions,” explains the press release. “They found that while these restrictions make piracy more costly and difficult, the restrictions also have a negative impact on legal users who have no intention of doing anything illegal.”
“In many cases, DRM restrictions prevent legal users from doing something as normal as making backup copies of their music,” said Vernik, assistant professor of marketing at Rice. “Because of these inconveniences, some consumers choose to pirate.”
According to the research paper, copyright owners don’t necessarily benefit from less piracy. “Decreased piracy doesn’t guarantee increased profits,” Purohit said. “In fact, our analysis demonstrates that under some conditions, one can observe lower levels of piracy and lower profits.”
The press release includes a compelling statement from the late Steve Jobs: “Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy.”
Streaming music service Spotify, which recently partnered with Facebook, saw its revenue more than quintuple last year. However, the British company still showed losses totaling $42 million, an increase from $26 million in 2009.
“Spotify’s performance has been closely monitored by the music industry, which sees it as a kind of litmus test for the viability of digital music by subscription, which pays labels each time a listener streams a particular song,” reports The New York Times. “That system brings in lower royalties per song than downloads, but with a large enough listener base could in theory bring in substantial amounts.”
Spotify subscriptions cost about $10 to $15 per month and includes an ad-supported free version. Daniel Ek, Spotify’s chief executive, recently announced that the service had reached the 2 million mark with paid subscribers, although there are believed to be more than 10 million total users.
