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Tag: music

  • Copyright Ruling To Close iTunes?


    The future of Apple’s iTunes music store could be decided today if the Copyright Royalty Board backs a proposal to raise royalties.

    At least that’s what iTunes’ vice president, Eddy Cue, told the CRB.

    He has warned that Apple would close iTunes if the board agrees to the increased rates proposed by the National Music Publishers’ Association.

    The NMPA wants to raise the royalties paid to its members on songs purchased from digital music stores like iTunes.

    The NMPA wants to levy a 66 per cent increase – raising the charge from nine cents a track to 15 cents.

    Apple, the US’s largest music retailer, postures that it would rather shut iTunes than pay the higher rate.

    “If the [iTunes music store] was forced to absorb any increase in the … royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss–which is no alternative at all,” Cue wrote in a statement submitted to the CRB last year.

    “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”

    With revenues estimated at USD $1.9 billion in revenue last year there would seem to be some slack for absorbing the 6-cents-a-track royalty increase.

    Or maybe they could just pass it on to consumers and blame the NMPA!

  • There's No Such Thing As Too Much Storage

    As demand for mobile data storage keeps rising, the hard drive industry needs to work harder at adapting its technology and products to keep pace.


    Storage.biz-news.com spoke to Daniel Mauerhofer, of storage giant Western Digital, to find out more about this evolving market.

    Desktop computing remains the largest market for hard drives but the young upstart – consumer electronics – is the fastest growing.

    Demand for data storage is soaring in everything from PDAs, navigation systems and automotive applications to handheld devices that store music, books, news content, movies and television programs.

    In parallel with this is the need for portable data collection devices, something storage giant Western Digital (WD) has been quick to pick up on.

    It recently launched My Passport, a 500 GB capacity portable USB drive that is small enough to fit in the palm of your hand.

    Not so long ago it would have been inconceiveable to imagine how most consumers would use that amount of storage capacity – let alone in a mobile format.

    Yet Daniel Mauerhofer, senior PR manager EMEA for WD, said that since storage space was now quickly eaten up by even modest amounts of photo, video and music files, finding a use for half a Terabyte of storage wasn’t that difficult.

    He said the advent of compact cameras with the capacity for ever-larger resolution meant even just storing photographs required a great deal of memory space.

    “There’s no such thing as too much storage these days,” he said.

    WD was founded in Lake Forest, California in 1970 and has been manufacturing internal hard drives since 1990. It moved into the external drive market four years ago.

    While its principal markets – desktop and notebook computing – are expected to continue growing strongly, the launch of the My Passport portable series positions it strongly in the consumer electronics sector.

    This hard drive market, which today accounts for sales of 81 million units worth more than USD $6 billion, is expected to grow to 220 million units in 2010 – a compound annual growth rate of 29 per cent.

    Mauerhofer said external drives generated very little revenue for WD three years ago.

    “Now they represent a fifth of our turnover. It’s a billion dollar business now,” he said. “People are spending considerable time on the internet and its penetration is getting better, so people are downloading more and more. We do not see that stopping.”

    For this reason, the consumer rather than corporate user is seen as being the principal buyer of My Passport portable drives.

    This is borne out by the sleek design and color choices for the drives – a far step from the customary image of external drives as functional “blocks”.

    Technology is evolving to cope with the ever-increasing demand for portable storage

    Mauerhofer said the industry currently used Perpindicular Magnetic Recording (PMR), which still had potential for greater capacity.
    So much so that he predicted that within the next 18 months a 1 Terabyte storage drive would become available.

    “There is a big need in the B2B enterprise space for huge capacity coupled with small form factor and it’s a safe bet to say you will find them in our portable products as well,” he said.

    However, Mauerhofer said there would come a point when even the PMR technology reached a capacity limit. This would open up the market to replacement technology such as Heat Assisted Magnetic Recording.

    The consumers’ appetite for storage appears insatiable – but technology has managed to keep ahead of the game. Can it continue to do so?

  • Smartphone? Most people just want a camera, Bluetooth and music

    Research shows that cameras, bluetooth, and music top consumers’ lists as “must have” features on mobile phones

    The function-packed Apple iPhone 3G may about to be released to the world but many consumers say they just want a mobile that’s a phone
    Clint Wheelock, vice president and chief research officer for ABI Research, said: “It’s still a voice-centric world. Consumers across all mature markets still choose their mobile operator based on ‘the basics’: price, friends/family on the same network, and network coverage.”

    Speaking after the publication of an ABI Research consumer survey, Wheelock said the findings showed that digital camera functionality, Bluetooth connectivity, and music/radio playback on mobile phones were the top three features that people consider essential for the next mobile phone they will purchase.
    The desire for camera phones with 2+ megapixels leads the pack with 47 per cent of consumers listing this feature as a “must have,” followed by Bluetooth at 34 per cent and music/FM radio functionality at 32 per cent.

    Games and Internet access are also high on the list of features that subscribers have on their phones, but never use.
    “Many mobile data and multimedia services are failing to reach the mainstream not because they’re unavailable, but because they fail to provide a satisfactory user experience and pricing model for most consumers,” said Wheelock.

    However, he said the survey results identified some “surprising differences” between markets.
    “Camera phones, for example, were more than twice as important for consumers in Taiwan versus those in the US,” he said.
    “Similarly, Bluetooth is considered essential by mobile subscribers in Western Europe and Taiwan, but penetration of this feature is very low in Japan and South Korea, so it’s of little importance to consumers in those countries.”

    Other key findings from ABI Research’s global wireless consumer survey of 1,402 current wireless subscribers in seven countries, are as follows:

    * The three most common features that subscribers have on their current mobile phones are: games (64%), Internet access (61%), and 2+ megapixel cameras (58%).
    * The handset features that are least likely to be regarded as essential are: Wi-Fi, mobile TV, and games.

    Click here for full information on the ABI Research brief Wireless Subscriber Profiles and Preferences.