rhapsody – Techdirt (original) (raw)

Merger Of The Also Rans: Rhapsody Buys Napster

from the too-late dept

With so much attention paid to the new generation of music subscription offerings, Spotify, Rdio and Mog, it appears that the last generation, Napster and Rhapsody, decided the best course of action was to join forces in bitterness at the fact no one mentions either of them any more. The two companies have gone through a variety of different owners over the past decade or so, with Rhapsody being spun out from RealNetworks last year, and Napster being under the Best Buy umbrella for a while — where almost nothing was done to build up the service. I recognize that the two companies may be annoyed that no one cares about them any more, but I really can’t see either establishing enough of a presence to get back into the conversation.

Filed Under: mergers, music, subscription
Companies: best buy, napster, rhapsody

US Supreme Court Lets Stand Ruling That Says Music Downloads Are Not Public Performances

from the thank-goodness-for-little-things dept

Ah, ASCAP. The music collection group that keeps getting more and more desperate, seems to have finally and completely lost its quixotic attempt to claim that a music download represented a “public performance,” which required a separate license, beyond the mechanical reproduction license. The group had been in a legal fight with Yahoo and Rhapsody over whether or not those companies had to pay extra to songwriters (whom ASCAP represents) in addition to the money they were already paying to license songs from the record labels for downloads. The district court sided with ASCAP and presented a bizarre formula involving a percentage of all revenue (such that Yahoo would have to pay some of its search revenue to ASCAP for no clear reason). Thankfully, an appeals court overturned the ruling, noting that a download is not a public performance, and that the bizarre calculation rate didn’t make much sense. ASCAP (of course) appealed to the Supreme Court, which has declined to hear the case, meaning that the appeals court ruling stands. This isn’t a definitive rejection of “download = public performance,” as technically, it’s just the law in the Second Circuit. In theory, some other Circuit could rule otherwise, and create a circuit split for the Supremes to look at. But, that’s probably unlikely, and it’s most likely that this ruling effectively makes it clear across the country that a download is not a public performance. As it should be, because it’s not.

Filed Under: downloads, public performance
Companies: ascap, rhapsody, yahoo

Getting Past Just 'Putting Radio On The Internet' – Killer Apps Come Next

from the time-to-step-up dept

Musician (Gang of Four) and marketing guru, Dave Allen, recently put up one of his insightful blog posts, questioning where the real disruption in online music is these days, and complaining that all of the services we see out there today are basically just “creating radio on the internet.” And they’re all almost identical.

The modern version of that is the wholesale commoditizing of music catalogs by the labels who create licensing deals with the streaming music services. Those actions in turn further homogenize the streaming music service systems as the services only have access to the same catalogs ? there is no differentiation. Artists get pennies, or less than a penny, when someone streams their song, and the listener gets advertising in the stream unless they pay to escape the ads.

Music streaming on the web is not a Big Idea, it?s simply a lack of intellectual vision and thinking. Worse, it has advanced the ?passive listening? experience. It?s just terrestrial radio dumped on to the web in other words ? including advertising….

[….]

The bottom line is that there is no differentiation at the end of the day between Mog, Rdio, Spotify, Rhapsody, and all the others too numerous to mention, if they all have the same music catologs ? widgets and tactics don?t count.

I agree that we haven’t yet seen all that much that’s really innovative in music, but I’m not as worried about it as Dave. As I noted about the SF MusicTech conference (where Dave moderated a panel on exactly this subject), it really felt like we’d finally gotten past the doom and gloom and started looking at the real opportunities in the music business today. I think that much of the lack of innovation is because pretty much anyone who has really tried to innovate has been shot down by lawsuits. Seriously. The second you do something marginally innovative that starts getting attention, a major label comes up with an excuse to sue, mainly to regain some amount of control. So these clone music services are, in part, a reaction to all of that. The reason they all look the same is because they now know what it takes to fall into line and not get sued.

But I don’t think that’s a problem for the next wave of innovation in the space. Yes, many of these services effectively replicate radio on the internet today. But when you look through history, that often is the first wave of history when dealing with new media. You take the old media and move it to the new platform. It takes a generation or two before people start to recognize that the new media has special or different characteristics that really let you do something unique and new. Then it takes a little while before people start figuring out what that is. It’s why I’m excited about things like Turntable.fm. Whether or not it’s really the next generation offering that becomes a success story, it is a sign that people are finally starting to branch out and try things that are unique and different and really only possible on the medium of the internet.

In fact, while I’m a fan of Spotify and Pandora, since playing with Turntable.fm, I always feel sort of disappointed that I can’t merge the three. Spotify has a huge collection, and I’d love to be able to move my playlists directly into Turntable.fm, or use Pandora’s matching engine to find similar songs to what I’m playing or what others are playing within Turntable.

So I think we’re just entering the very beginning phase of real innovation in the music service market space. The companies here today may or may not survive. Or maybe they’ll drive the changes and come up with the next great innovations themselves. But it’s still early in the game.

Filed Under: dave allen, disruption, internet, radio
Companies: mog, rdio, rhapsody, spotify

Why Have So Many Companies Settled Over Ridiculous Patent For 'Online Music Distribution'?

from the cheaper-to-settle dept

A company going by the name Sharing Sound LLC, which of course does not appear to do anything, got hold of some exceptionally broad and absolutely ridiculous patents on “distributing musical products by a website over the internet” (6,247,130 and 6,233,682). Go ahead and read the claims on both of those, and realize they were filed in 2000, well after online sales of digital goods was available (I should know, I worked for a company focused on selling software online through nearly identical means described in the patents — in 1998).

Earlier this year, however, Sharing Sound sued a whole bunch of companies over these patents. Included was Apple, Microsoft, Napster, Rhapsody, BDE (Kazaa), Sony, Sony/Ericsson, Amazon, Netflix, Wal-Mart, Barnes & Noble and Gamestop. Late last week, the news came out that Apple had settled and paid up. Along with that, people noted that most of the other companies had already settled.

I defy anyone to explain how this patent is a valid patent. The folks at M-CAM broke down a whole bunch of prior art when the lawsuits were first filed. Anyone who was anywhere near the online web store world for digital content would look through the (very, very, very simple) claims in the patent and just laugh. There’s no “invention” there at all. It’s a joke.

So why did so many companies settle? The easy guess is that the settlement terms were simply less than going through with the lawsuit. Lawsuits are expensive, even over totally bogus patents. So it’s often just easier and cheaper to pay up. Of course, now that gives Sharing Sound more ammo to say “look at all these big companies who settled” when they continue to go after lots of other companies. This is a perfect example of how bad patents still “win” lawsuits.

Filed Under: music distribution, patents
Companies: amazon, apple, barnes & noble, gamespot, microsoft, napster, netflix, rhapsody, sharing sound, sony, wal-mart