Business Week refutes FT.com’s Apple story, quotes “people in a position to know”

March 20, 2008

Yesterday I posted a story from the FT that basically says Apple and the labels are talking about an unlimited download subscription for people who buy and iPod or iPhone. Angry about being scooped Bussiness Week posted a story saying the Financial Times has either been speaking with Snoop Dog or smoking his stuff, cause the Apple story was bull. Where is their evidence you ask?

Reports that Apple is discussing an “all-you-can-eat” subscription music service with major record labels are overblown, say people in a position to know.

Thats right they are refuting the Financial Times story by paraphrasing an HR Block tag line. They got people? Wait you say, surely Business Weeks has more evidence then that, they must have a quote, a named source, something more substantial. Here it is, the smoking gun:

[The Apple unlimited subscription] would use that premium to create a pool of revenue, a portion of which would be divided among the major music labels, the newspaper said.

Trouble is, no such talks are under way, according to people familiar with Apple’s plans. An Apple spokesperson declined to comment. Insiders at major music labels were similarly dismissive.

So lets review, “people in a position to know” told Business Week’s Arik Hesseldahl that nothing was going on between Apple and the labels and this version of the story was corroborated by “people familiar with Apple’s plans”. The PR Flacks at Apple and the labels hung-up everytime Arik called them and he took it as evidence that the Financial times was wrong.

Now I’m not saying that the FT story was some great piece of reporting or that I necessarily believe all of it, but Business Week needs raise its game a bit. When a venerable news weekly with ungodly sums of money and decades worth of reporting experience sitting on its bench runs with poorly researched crap with no credible citations or sources, its no better then a blog. I dont want major weeklies running with innuendo, rumor and hearsay. Thats what I’m here for. I want them to give me some facts with names of real people attached to them, so I can poke holes and look for flaws or fallacies. There is a reason bloggers are not journalist and its really important that the journalist remember that.

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Flagging music industry seeks reincarnation as iPod upsell

March 19, 2008

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The once haughty recorded music industry has finally collapsed under the weight of its own greed and inefficiency. We can officially call the industry dead, not when the companies are shuttered (because a number of them will survive), but when their main business model is radically different. According to an article in todays Financial Times the music industry is edging ever closer to signing a deal with Apple Computers which may do just that.

The article discusses a deal the two sides are trying to hammer out to shift the labels economics from collecting money based on the number of songs/CD’s that are sold to collecting money based on the number of iPod’s or iPhone’s thats are sold. Its a complex deal that the article emphasizes may not get done, however for the labels to even consider it highlights how very desperate they’ve become. This deal would certainly spell the end of the traditional record labels as their status as added value intermediaries (ie important middlemen) fades even further. Also read a related article which is a bit of a counter-point to the first article albeit with little new information.


Liberate iTunes (and all your media) with DoubleTwist

February 19, 2008

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A couple of years ago a kid from Norway, named Jon Lech Johansen, broke the encryption put on DVD’s to stop people from coping them onto their computers. A year or so later he did the same thing to the iTunes music store and made it possible for folks to share their music purchases. He was pretty unpopular with the big media companies but geek-boys the world over loved him, so he went legit and started a venture backed company. However, going legit isnt what it used to be. His latest application, let’s you share your music and other media with friends and family no matter what device they might be using. The new application called doubleTwist allows you to convert all your iTunes purchases to plain old mp3’s for you can shares them across devices. and it help you manage that process. The application is still in beta (early beta if the number of crashes I’ve had is any indicator) so you might want to check out the PDF press release here , the blog reaction here or the early articles here and here.

Thanks to the erudite scholar and gentleman, david touve for the tip.