Digital Digest – August 8, 2013
Illegal streaming could soon become a felony in the US
The US Department of Commerce Internet Policy Task Force is calling to upgrade illegal streaming from a misdemeanour to a felony, putting it in the same league as reproduction and distribution (bootlegging) in terms of punishment. A 122-page-document calls for more stringent penalties, stating “While the willfully infringing reproduction and distribution of copyrighted works can be punished as a felony, willful violations of the public performance right are punishable only as misdemeanors. This discrepancy is an increasingly significant impediment to the effective deterrence and criminal prosecution of unauthorized streaming.” The epic document is available here.
iHeartRadio launches in Australia
Clear Channel-owned iHeartRadio has launched in Australia this week. In America, iHeartRadio has surpassed 30 million registered users in the U.S. with this push into Australia and New Zealand its first outside of the US. The Australian version is operated by the Australian Radio Network, a joint venture between Clear Channel and APN News & Media. When speaking to TMN this week, Managing Director of iHeartRadio Kate Beddoe explained why Australia is such a ripe territory for expansion.
“For an international company, particularly a U.S. company looking to expand into Australia, there are some fairly fundamental similarities in that you’re dealing with English, so you don’t have to localise the product too much around language. There are some practicalities, from their perspective. But it’s actually the relationship that ARN has with Clear Channel that gives us to the ability to access iHeartRadio at this stage. They’re one of our 50/50 JV shareholders. That’s how we’ve been able to bring it into market. “
US album sales hit all-time low, while streaming revenue rises.
Further proof that streaming services are usurping the traditional album comes with news that the last five weeks marks the longest time the US record industry has sold under five million units a week. The last two weeks, in particular, saw album sales reach consecutive lows. Conversely, overall streaming revenue is increasing, which may suggest some correlation. As Billboard reports, however, Soundscan analysts suggest this is due to the bottom falling out of catalogue sales, with the sales of $5 compact discs dropping dramatically, as labels struggle to find new titles that can be produced profitably at this low price point.
Spotify has lost $206 million since 2008
All is not plain sailing in the streaming world, however. Digital Music News reports that, with new figures from 2012 now available, Spotify has lost $206 million since 2008, with licensing costs obviously being the biggest expense. The company has, to date, raised start-up capital of $288 million, which means it isn’t time for panic stations just yet. Nevertheless, such losses may suggest an unsustainable business model, should things continue tracking this way. Full infographs of revenue, subscriber growth, licensing costs, and losses are available here.
Deezer launches on Windows Phone 8.
Deezer launched its new app on Windows Phone 8, featuring a bespoke home screen engineered for music discovery, featuring recommendations chosen by Deezer’s editorial teams all over the world. Deezer are claiming over 20% of its employees worldwide are curating the recommended content.
Founder of Deezer, Daniel Marhely, said: “The design of the new Windows Phone 8 app provides a really sleek experience. The tiles, huge cover art and a smooth user interface take full advantage of the Windows Phone 8 platform and give people a great way to listen to and share their music.”
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