Archive for the ‘music’ Category

The German Music Charts

Tuesday, November 18th, 2008 by Michael Altendorf

Here is a short analysis which i did on the German music charts last month

 

1.Overview:

 

The charts are surveyed by Media Control GfK International (86% market coverage). This is a private market intelligence company but this is in order to the contract of the Bundesverband der Phonographischen Wirtschaft (German IFPI). They have specific rules how to do that. This changed often in the last years.

The German charts do not really show the real music taste in Germany. Most of the people use illegal downloads streaming or YouTube videos etc. Especially the taste of the important young target groups and “digital natives” is not reflected any more.

Chart s are calculated by a mixture or traditional sales and downloads on a value bases (€).

 

2. History

 

1977 First “official” survey by German Music industry.

1997 completely electronic data aggregation (about 3000 cashpoints)

2001 Start of the online download charts

September 2004 Digital releases were counted in the Top 100

7/23/2007 also “Digital Only” releases are counted in the real charts. Before the download charts were totally separated.  To get counted song must be registered at Media Control.

 

 

 

 

 

3. Current Situation

The technological innovation triggered that the German charts are currently a mixture between bricks & mortar and online downloads.

It is weighted after a difficult specific key which changes every week in a random selection of stores to be independent but where real CD sales are weighted higher than a download.

Today, the chart positioning is calculated by the revenue per song digital and traditional sales. Before the number of sold sound carriers were counted.

 

Indie labels criticized this kind of counting and Radar Music in Cologne thought about filing an action at the antitrust agency. MotionFX, another indie label, filled a lawsuit in the end.

The algorithm is such strange that e.g. the retailer media market is downgraded when there was e.g a discount and too much sales in a shop in one week.

Manipulations are registered by a statistical algorithm but could not be excluded. Manipulations in the online world are also easier due to the possibility of buying not in a local store but nationwide. Media Control claims that this not happened before :-)

 

Media Control uses the 19 biggest online portals for their data collection. Media Control claims about 96% market coverage. This is more an illusion when streaming, YouTube, etc are excluded.

The download numbers are directly sent to Media Control. Traditional sound carrier sales are sent to a daughter company of the German IFPI and then forwarded to Media Control.

 

Technical formats which are counted

DVD, SACD, CD, MC, LP, MD, Downloads. Also music videos when the music takes more than 50% of the playtime

 

Single Charts

-          Due to the inclusion of downloads the German CD single market is nearly dead.

-          Last year the single downloads exceeded the single CD sales the first time.

-          You need about 5000 CD sales to get a Top 10 chart position

-          For a Top 100 position you need some hundred CDs in a bad week in Germany (Quote from Spiegel magazine from an interview with Manfred Gillig-Degrave, Editor in Chief of “musikwoche”)

 

Album Charts

-          Albums with more than 3 bands are counted in the compilation list not in the album charts

 

 

Download

-          Only download, not streaming is counted (that means “Musicload nonstop” streaming flaterate is not counted, also no subscription service etc.)

 

Gold

-          100000 long player, downloads are included

-          150000 singles, downloads are included

 

Platinum

-          200000 Long player

-          300000 Singles

 

 

4. Outlook and Analysis:

 

-          When you also consider that 90% are downloading illegally, also streaming and foreign music portals like last.fm are not counted in Germany. This leads to the conclusion that the German charts are no more representative but a nice fake.

-          There is only a correspondence between airplay charts and top 100 due to their influence against each other and bandwagon effects.

-          Especially the youth in Germany is downloading illegally and the digital natives use already streaming services and so it means only 10% of the music audience which pays for music determine the charts. This people are often older than 20 years and already earn more than the average person between 12-30 years.

-          Especially there must be in addition a counting of the top video pages like YouTube which are used by many people to listen to music due to their nearly complete music video catalog and market coverage.

-          Due to the new inclusion of “digital only” version e.g. the announcement of the digital versions of all (old) Radiohead tracks could influence the Top 100 charts without one sold CD. Also the Beatles catalog could be in the Top 10 then.

-          But in contrast, as an extreme example, the “pay as you want” Radiohead “In Rainbows” idea is not counted in the German charts – no German website, only the top 19 download portals are included. Download nearly for free has no real value to a weight on revenue, although many people listen to it.

-          Statistic algorithms always have pain points but due to the disruption of the music market there is no reality in the charts any more.

-          Charts are determined by things like “Deutschland sucht den Superstar” (German Version of X-Factor) were a convergence between TV and CD sales could be seen.

-          In the future also e.g. the top 10 streaming services like last.fm or Pandora must be counted. Otherwise we get to a iTunes and TV casting music charts. This is going to reflect more where the money for the industry is coming from and not which musician is really loved by the audience.

 

 

 

5. Sources:

 

http://de.wikipedia.org/wiki/Musik-Charts

http://www.spiegel.de/netzwelt/web/0,1518,538302,00.html

http://www.heise.de/newsticker/Reine-Musik-Downloads-erscheinen-demnaechst-in-den-Charts–/meldung/91767

http://www.musikindustrie.de/uploads/media/ms_charts_regelwerk_01.pdf

 http://www.ifpi.de/

http://www.media-control.de/musik/

http://www.musikindustrie.de/uploads/media/ms_gold_richtlinie_tontraeger2008.pdf

http://www.musikindustrie.de/charts_system.html

http://gettothechorus.blogspot.com/2007/01/reform-der-deutschen-singles-charts.html

http://musikger.snurb.info/fa/charts.html

http://www.pop100.com/news_detail.php3?id=3821

http://www.radar-music.de/single_news.html?&no_cache=1&tx_ttnews%5BpS%5D=1219099163&tx_ttnews%5Btt_news%5D=349&tx_ttnews%5BbackPid%5D=18&cHash=7f4d90b12c

 

Warner Music goes 360 (or the label takes it all)

Tuesday, November 11th, 2008 by Michael Altendorf

As I just read on Hypebot Blog Warner Music will give every new artist a 360 deal now. That means that the band manager, who normally negiotiate with the labels is now paid by the label and part of the money from live gigs goes to the label and …

as Mr Techcrunch Arrington, I do not know why he understands from the music business, but he stated  that he would knew some details:

TechCrunch went on to report that 1/3 of the artists currently signed to the label were already working under this kind of comprehensive arrangement which can involve label control of revenue from publishing, web sites, merchandise, touring and all other aspects of the artist’s career.”  (quote from Hypebot)

Also all other major labels started with this risk mitigation tactic.

 

More about 360 deals here:

http://www.nytimes.com/2007/11/11/arts/music/11leed.html

More basic news on the new music business models in the German “Die Zeit”

http://www.zeit.de/2008/05/Pop-Geschaeft?page=all 

 

Sony Ericsson starts competition against Nokia Comes with Music

Wednesday, September 10th, 2008 by Michael Altendorf

according to Hypebot and Fincanial Times Sony Ericsson wants to start a music flaterate subscription service as Nokia starts next month:

http://www.hypebot.com/hypebot/2008/09/sony-ericsson-m.html

 

Tool live concert videos

Thursday, June 5th, 2008 by Michael Altendorf

I just found a lot of full live concerts at google video, also with acceptable sound!

Normally the youtube videos are max 5-15 minutes

But there are some much longer one. My colleague just compared the video of the tool concert with Pink Floyd – thanks for this :-)

 

Media Futurist @ PopAkademie

Wednesday, May 28th, 2008 by Michael Altendorf

Yesterday the media Futurist and blogger, author, etc, Gerd Leonhard was at the PopAkademie in Mannheim and spoke about the future of music and the media business.

You could download his presentation @ http://www.mediafuturist.com/files/gerd_leonhard_at_popakademie_mannheim_print.pdf

It was a really cool presentation, although I already saw him at Cebit 08. At the Cebit it was a more general presentation on the future of media. At the PopAkademie he spoke more about the business business and about the marketperspective for artists, labels and the relevance of new business models.

To learn more about his view of the future music market. Download his book, it is for free:

(Creative Commons Licencse) http://www.music20book.com/

In a nutshell: like in the radio: music is for free and the adverstisment gets more and more important to generate revenue for labels and artists. In additition a “feels like free” flateratemodel is also possible. But what he definitely denied was the itunes like a la carte download. This will not be possible in the future.

 

Today 95% are not paying for music and I could agree with him, a la carte download has no real future for the mass market as standalone. But for bundle with the broadband, mobile contract, isp etc i really would make sense to combine music offerings and hardware or network access. Good examples: Musicload/Dt Telekom – Arcor/Napster – Nokia/Comes with music etc. I think in other countries more examples could be found that bundles will coming up soon.

Gerd has most of the ideas in one of his videos, ppt or in his book! So i really recommend to read some of his writings!

 

 

 

All time top 10 of the most ridiculous black metal pictures

Monday, March 31st, 2008 by Michael Altendorf

I just found this here in Geralds blog

 Check this out, very funny:

http://www.ruthlessreviews.com/reviews.cfm/id/976/page/_the_other__top____most_ridiculous_black_metal_pics_of_all_time.html

one example:

bm31.jpg

Sony BMG, one of the 3 (should we still count EMI too?) major labels plans music flatrate

Tuesday, March 25th, 2008 by Michael Altendorf

according to some newspapers and blogs like this

http://www.alleyinsider.com/2008/3/sony_bmg_planning_subscription_service_aapl_

Sony plans a musicflatrate. The advantage of a single major label compared to napster is zero. Also a lot of other memers of the channel like Nokia try to offer flaterates for music. One advantage of the major is the bigger supplier power but one big disadvantage is the smaller product portfolio. The major already tried to offer music online stores years ago. But when the user do not know which artist is at which label this will not work. Only a holistic approach of all big vendors together could work. But a lot of players like Amazon or iTunes will compete against each others. Perhaps this announcement is only going to put pressure on iTunes because Sony threaten to go forward with other vendors but without Apple if Apple not support what the music labels want. I will still become a  exciting year for the music industry. They are going to attack each other not only on horizontal but also on vertical battlefields. The advantage has the consumer in the end. If the younger generation pay money for music in future is exciting because he never paid before. There will definitely a battle between the flaterate and the advertisment model in the end and some niches in between – nobody could know this in these days when all players change their strategy and play around with every possibility

What will Steve Jobs announce at Macworld on monday ?

Saturday, January 12th, 2008 by Michael Altendorf

I think it is something with Wifi or 3G. It is portable, black or white, weight is under 1kg, the display is bigger than the ipod or phone displays but not as big as the macbook. Hm, a DIN A5 thing (macbook is DIN A4, phone DIN A6- german paper format)

Something to use the mobile internet, especially social networks and chats instant messages. RSS support is also a must have to stay in touch with the world news and personalized news. Perhaps you could also stream music from the itunes store and read books. A e-ink, e-paper thing with music access on flash.

A”be up to date and always online” thing. The ipod is only music, the iphone is phone+music, but lacks in the interface for fast chats with friends and is much too expensive for the fact that it is only a phone. 

Next to the expected major hardware release Apple also could announce a napster like music flaterate for its mobile devices. Definitely Apple has do change to MP3 without DRM soon after all label and most of the competitors changed their system. One more reason for Apple to combine hardware with music to improve its vendor lock-in effects for Apple products. A more vertical approach to the market which gets more and more competitive after the music major labels want to break Apples market dominance.

Google LabsMusic trends – All Google talk users listen to Linkin Park

Saturday, January 5th, 2008 by Michael Altendorf

I just have seen that Google Labs offer a new tool called Google Music Trends where they combine Google trends with Google talk and extract the data from the users. I never use Google Talk (does anybody use Google talk? I do not know anyone) but I think it is like Sykpe where you could plugin the mediaplayer or winamp.

Watch it:

http://www.google.com/trends/music

Digitial Music in 2007 – comments and ideas

Friday, December 28th, 2007 by Michael Altendorf

Some information on the status quo of online music in 2007

http://www.last100.com/2007/12/27/digital-music-2007-year-in-review/

 

found at: http://www.readwriteweb.com/archives/digital_music_2007.php