Forget the Movie, Go To A Concert
As music CD sales plummet and the long term price of recorded music trends towards free, live music will evolve from being a way to market new album releases to quite possibly the primary income stream for most artists - even the big ones.
That’s why services like iLike, which determine your favorite music based on your iTunes listening habits and then tell you about upcoming concerts for those artists, are on the rise. Relative newcomer Songkick goes even further - it makes educated guesses about what music you’ll like that you may not have heard before, and then suggests local live shows for you to attend.
Songkick founder Ian Hogarth says that 70% of U.S. adults attend a live music show every year, but we collectively spend 35 times as much on going to movies as we do on concerts. There is a big opportunity to increase the size of the market, he says. but people need more information on who’s performing, where, and when.
We first covered them at launch last year, and we also mentioned their “Alexa For Bands” project recently. Today though they’re releasing new functionality and also announcing a round of financing.
Songkick focuses on artists that are still alive (dead artists tend not to go on tour) - they’re tracking about 1 million of them in their database. Users can get recommendations on the Songkick site or via an iTunes plugin (Windows and Mac). And now Songkick is making their database available to partners. Larger partners can access the data via their API (music search engine SeeqPod does this). And smaller sites (music blogs, for example), can add upcoming concerts about artists they’re discussing to their blog posts and other content via a new “BandSense” product that auto-determines band names and inserts links to upcoming concerts.
API partners split revenue with Songkick 50/50. Blogs and smaller sites get 100% of the revenue for now.
Songkick was originally a Y Combinator startup and took a small amount of financing. Today they are announcing a second round, from The Accelerator Group and SoftTech VC. The company was founded by Ian Hogarth, Pete Smith and Michelle You.
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If Facebook Music Really Launches, Will It Get Dissed By 50 Cent?
Rumors surfaced again yesterday on Billboard and today in other media outlets that Facebook is in talks with the record labels to launch a music service that will include either free ad-supported music streams or paid downloads. Talk of such a service started last October, but what Facebook ended up launching was simply artist fan pages. MySpace is also preparing its own music service to be called MySpace Music. And other competitors from imeem to iLike to Last.fm are putting pressure on Facebook to respond with its own music offering. Music drives many social interactions, so you can see why Facebook would want to own that area even at the risk of alienating key partners (such as iLike).
But Facebook should really stay out of the music business. If it tries to enter in a big way it risks alienating not just its partners, but musicians as well. Its fan pages for musicians have not really done that well. Look at 50 Cent’s official Facebook page. He’s only gathered 8,213 fans there, compared to his 1,918,372 fans on his iLike page on Facebook (which includes fans across other social networks as well). I noted a similar disparity shortly after Facebook first launched its music fan pages.
In fact, 50 Cent already dissed Facebook once. He took down his official Facebook page for at least a couple months. It just recently went up again. His online efforts are geared towards driving as much traffic to his own fan site that he controls, This is 50. That is why fan widgets like iLike or Kyte.tv appeal to him more than tying himself to any one destination. As iLike CEO Ali Partovi likes to say, “The new opportunity for growth is beyond Facebook.” Partovi just announced this morning that iLike has 23 million users keeping track of 200,000 artists across Facebook, Hi5, Bebo, iLike.com, Ask, and even iTunes.
What is happening with 50 Cent is indicative of a bigger battle brewing in the music industry between artists and record labels over who will get to control future online revenues. Both record labels and artists did not like the fact that MySpace was making money off of their artist pages with ads, so they started negotiating deals to get a cut of the action. The prospect of Facebook becoming a competitor was welcomed because Facebook treats artist pages like any brand or canvas page. The ads on that page belong to the brand or artist or application developer, whatever the case may be.
But with music, Facebook may now be putting itself in between artists and record labels, who both have claims to that page. It is easier for Facebook to negotiate directly with record labels, but in most contracts it is the artists themselves who control their Websites and pages on social networks. Of course, if they want to stream or sell music from those pages, that is where the record labels come in. Facebook is negotiating with the record labels, but the artists may be going elsewhere, as we are seeing with 50 Cent.
As traditional music revenues are drying up, the labels want to transition to online revenues as fast as they can. But if those revenues are associated with advertising on fan sites, the artists themselves may have a greater claim to them. Of course, any fan site would be pretty lame without the music. But who gets what cut is all up in the air right now and the artists are in the driver’s seat because nobody fans a record label. We might be seeing a shift in power between artists and labels. Of course, it helps if you are 50 Cent and you own your own record label.
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iLike Launches Artist News Stream – Users Triple since Last July To 22 Million
San Francisco/Seattle based music service iLike launched a “news feed” for favorite artists this week. Users can now see exactly what their favorite artists are up to - when they go on tour, release new songs or videos, etc, the news is presented to them in the feed.
Users can select their favorite artiest via the iLike website or on their social network applications. Or the service decides what you like based on your playing habits on iTunes (they have an iTunes plugin - if you listen to a song ten times, it thinks you like the artist).
It can be viewed via the iTunes plugin, the website, the social network applications, or via a new iPhone app (just go to iLike on an iPhone and log in).
The company continues to dominate the Facebook music scene. Their U2 page on Facebook has 1.9 million fans. Compare that to just 168,000 friends on the MySpace U2 page, and 933,000 on Last.fm. The fact that a previously unreleased U2 song was first heard on iLike didn’t hurt those numbers, either.
In July 2007 iLike had 4.5 million users of its Facebook application. Today they have 14 million. But more than half of their new members today are coming from their iLike.com site and other social networks - OpenSocial gave them access to Bebo, Hi5 and soon MySpace. On their website alone they see 3.5 million worldwide monthly visitors, which isn’t bad considering most users interact with iLike via their iTunes plugin, or on Facebook and other social networks. Last.fm, which was acquired last year for $280 million, has 4.7 million.
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iLike Publishes Unreleased U2 Song
This is a huge win for music site iLike - U2’s Bono recorded an interview with the iLike founders talking about the history of a new song called Wave of Sorrow. The song, which is being released on Tuesday next week as part of the remastered Joshua Tree album and DVD, was written in the 80’s but never recorded.
It’s available in two places - on iLike and on iLike’s Facebook application. The Facebook application is particularly interesting - 1.2 million fans have signed up specifically to get new U2 news and were notified as soon as the video went up two days ago. So far, over 2,000 fan messages have been left on the video.
This was an experiment, says a representative of the company. No press was notified when the video went live - they wanted to see how fast it spread virally and without any promotion.
This wasn’t out of the blue - iLike has connections to U2 through Elevation Partners (Mark Bodnick at Elevation is on the board of iLike, and Bono is also a partner at Elevation), and Brooke Hammerling, who handles PR for iLike, is a personal friend of Bono’s.
But regardless of the connections, the success of the viral release will certainly get other artists to consider using iLike to talk directly to fans via the Facebook application. That’s something MySpace and other competitors can’t do yet.
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iLike vs. Facebook: The Battle For The Music Artist
Facebook just got a whole lot friendlier for music artists. With the launch of Facebook Ads, it is welcoming bands and musicians to set up their own public Facebook pages where members can sign up as fans. Alas, there will be no standalone Facebook Music service. Instead, Facebook is treating music artists just like any other brands, which can also set up their own Facebook pages, collect fans, and market to them directly.
Yet, when it comes to music artists, one of Facebook’s most popular application developers, iLike, is now doing the exact same thing. Starting today, any band or musician can create an iLike artist page on Facebook that includes their most popular songs (filtered by what your friends like), upcoming concert dates (click on a date and see if any of your friends are going), an artist blog called iCast, related artists, and a Fan Wall where Facebook members can leave notes. In fact, iLike has already created these marketing pages for them. Right out of the gate, it now has 160,000 pre-populated artists pages that the musicians or the labels themselves can modify, or leave as is.
So if you are a music artist, you now have to make a decision: Do you go with the iLike page as your main Facebook page (and take advantage of the nearly 10 million members who use the iLike app), or do you go with your own advertiser page on Facebook? Case in point: the new Facebook page for 50 Cent (shown left) had only three fans when it first went up just after midnight, compared to 1.2 million fans on his iLike page on Facebook.
Well, it turns out that iLike does not care which page artists choose to call their home. Any widget on the iLike artist page—popular songs, upcoming concerts, the iCast blog, even the iLike button—can be plopped into a Facebook artist page (also known as a canvas page). And every link in each of those widgets takes you back to the Facebook application pages that iLike controls.
This is not an unintended consequence. I asked Facebook CEO Mark Zuckerberg yesterday about the potential here for Facebook to be competing with its own app developers. He responded, “What is the effect on app developers if we are making it possible for bands to have music pages? It increases distribution because your app can be on that page.”
Fair enough. But where does that leave Facebook in the fight for the hearts and marketing dollars of the struggling music industry? Already, I like iLike’s chances in this battle. But it doesn’t end within the confines of Facebook.
On Monday, I met with iLike CEO Ali Partovi at the swank Fifth Avenue offices of the investment bank Allen & Co. (Partovi went to high school with Herb Allen III, who lets him use the office for meetings when he is in New York. And, of course, who did we run into in the lobby downstairs, but Ron Conway. That guy is everywhere. But I digress.). Partovi wants iLike to become a one-stop-shop for artists to manage their own profiles and communicate with their fans, whether on Facebook or elsewhere.
To make it easy for them to do that, iLike is also introducing today the Universal Artist Dashboard. From one place, a music artist or record label can set up an artist page on Facebook and iLike.com, as well as information that pops up in iLike plug-ins for iTunes and and Windows Media Player. And since iLike has also joined Google’s OpenSocial effort, these artist pages will soon be exportable to other social networks as well, such as MySpace, Bebo, Ning, Hi5, Orkut, and in iGoogle Web widgets. Instead of having to manage their profiles in all of these places, artists will be able to upload all of their songs, concert dates, and blog posts once to the Universal Artist Dashboard and then spread it all over the Web. They will be able to manage all the messages coming from those artist pages from the dashboard as well.
That is the power of being a widget company—you can insert yourself anywhere. Explains Partovi: “A syndicated effort is always stronger. Rather than try to bottle up everything in one place, push it out to where people are. That is why YouTube is so successful, because it is pasted all over the Internet.”
Take Avril Lavigne as an example. Her record label could create a Facebook page for her at http://www.facebook.com/Avril+Lavigne, which it hasn’t. But she does have an iLike page at
http://apps.facebook.com/ilike/artist/Avril+Lavigne:
Here is what her page, built from the same widgets, looks like on iLike.com. (Now, just imagine similar pages for MySpace, Bebo, Hi5, and all the other social networks participating in OpenSocial):
And here is what iTunes looks like with the iLike sidebar when playing an Avril Lavigne song (also built from the same underlying data):
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OpenSocial Hacked Again
The same person who hacked the RockYou OpenSocial application on Plaxo just 45 minutes after it was publicly released is at it again.
This time, he claims to have easily accessed the iLike application on Ning. Specifically, he says he can add and remove songs on users’ playlists. And more damaging, he’s noticed that the application caches a user’s friends list in the client-side code. Give him a Ning username and he can give you details on their friends: relationship to user, last date of update, photo, profile creation date and part of their email address.
He’s pulled up Ning co-founder Marc Andreessen’s friend list to prove his point, and shared part of it with me. I won’t be publishing it here, but it shows that he got access to the application.
As with the RockYou/Plaxo hack, no real damage has been done, but it shows that in the rush to get applications out the door quickly, attention to security may have fallen by the side of the road.
TheHarmonyGuy now has a blog up where he is writing about his hacks of OpenSocial applications. See it here. He notes that RockYou’s application remains unpatched.
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Details Revealed: Google OpenSocial To Launch Thursday
Details emerged today on Google’s broad social networking ambitions, first reported here in late September, with a follow up earlier this week. The new project, called OpenSocial (URL will go live on Thursday), goes well beyond what we’ve previously reported. It is a set of common APIs that application developers can use to create applications that work on any social networks (called “hosts”) that choose to participate.
What they haven’t done is launch yet another social network platform. As more and more of these platforms launch, developers have difficult choices to make. There are costs associated with writing and maintaining applications for these social networks. Most developers will choose one or two platforms and ignore the rest, based on a simple cost/benefit analysis.
Google wants to create an easy way for developers to create an application that works on all social networks. And if they pull it off, they’ll be in the center, controlling the network.
What They’re Launching
OpenSocial is a set of three common APIs, defined by Google with input from partners, that allow developers to access core functions and information at social networks:
- Profile Information (user data)
- Friends Information (social graph)
- Activities (things that happen, News Feed type stuff)
Hosts agree to accept the API calls and return appropriate data. Google won’t try to provide universal API coverage for special use cases, instead focusing on the most common uses. Specialized functions/data can be accessed from the hosts directly via their own APIs.
Unlike Facebook, OpenSocial does not have its own markup language (Facebook requires use of FBML for security reasons, but it also makes code unusable outside of Facebook). Instead, developers use normal javascript and html (and can embed Flash elements). The benefit of the Google approach is that developers can use much of their existing front end code and simply tailor it slightly for OpenSocial, so creating applications is even easier than on Facebook.
Applications can have full functionality on profile and/or canvas pages, subject to the specific rules of each host. Facebook, by contrast, limits most functionality to the canvas page, allowing a widget on the profile page with limited features.
OpenSocial is silent when it comes to specific rules and policies of the hosts, like whether or not advertising is accepted or whether any developer can get in without applying first (the Facebook approach). Hosts set and enforce their own policies. The APIs are created with maximum flexibility.
Launch Partners
Partners are in two categories: hosts and developers. Hosts are the participating social networks, and include Orkut, Salesforce, LinkedIn, Ning, Hi5, Plaxo, Friendster, Viadeo and Oracle.
Developers include Flixster, iLike, RockYou and Slide.
What This Means
The timing of OpenSocial couldn’t be better. Developers have been complaining non stop about the costs of learning yet another markup launguage for every new social network platform, and taking developer time in creating and maintaining the code. Someone had to build a system to streamline this (as we said in the last few sentences in this post). And Facebook-fear has clearly driven good partners to side with Google. Developers will immediately start building on these APIs to get distribution across the impressive list of hosts above.
And they’ll do it soon, too. It’s clear that the developers who arrived early to the Facebook Platform party won easy customers. Those that came later had to fight much harder. Developers found their new gold strike, and they will soon all be there, mining away.
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Fixster For Sale; IAC Interested
Fast growing movie-centered social network Flixster has been making the rounds with potential buyers, we’ve heard from multiple sources. And IAC may have submitted a letter of intent in the last week or so.
The San Francisco based company has had a meteoric rise since launching in January 2006, although Comscore suggests growth has stagnated over the last few months - worldwide unique visitors went from just over 12 million in May 2007 to just 8.4 million in September, a drop of about 30%. Compete and Alexa show a similar decline beginning in May, but with a subsequent full recovery and then some.
IAC’s offer, we’ve heard, may value the company at $150 million. However, IAC has a tendency to do complicated investment deals where they get a minority or majority stake in the business v. an outright acquisition. They own a majority stake College Humor/Vimeo (same parent company) and GarageGames, and a minority stake (rumored at 25%) in iLike through an investment by subsidiary Ticketmaster.
Flixster may not be very interested in a partial buyout, but interest from IAC could lead others to enter a bid, too. More on this as it develops.
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Flixster For Sale; IAC Interested
Fast growing movie-centered social network Flixster has been making the rounds with potential buyers, we’ve heard from multiple sources. And IAC may have submitted a letter of intent in the last week or so.
The San Francisco based company has had a meteoric rise since launching in January 2006, although Comscore suggests growth has stagnated over the last few months - worldwide unique visitors went from just over 12 million in May 2007 to just 8.4 million in September, a drop of about 30%. Compete and Alexa show a similar decline beginning in May, but with a subsequent full recovery and then some.
IAC’s offer, we’ve heard, may value the company at $150 million. However, IAC has a tendency to do complicated investment deals where they get a minority or majority stake in the business v. an outright acquisition. They own a majority stake College Humor/Vimeo (same parent company) and GarageGames, and a minority stake (rumored at 25%) in iLike through an investment by subsidiary Ticketmaster.
Flixster may not be very interested in a partial buyout, but interest from IAC could lead others to enter a bid, too. More on this as it develops.
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Facebook Music Rumors
AllFacebook is running a rumor that Facebook is prepping an online music store that will see it compete with Apple’s dominant iTunes. A competing story by PaidContent says the new product is to be a music platform for artists and will compete directly with MySpace, not iTunes.
According to the posts, Facebook has been searching for a CEO to head up a new MP3 sales subdivision and has been pursuing agreements with a number of record labels.
If true, it would be an interesting move by Facebook, particularly into a market space where many have tried to take on Apple in the past, and have all miserably failed. Apple itself sees value in social networking as a platform for music sales, having integrated iTunes into Bebo UK and Ireland in June.
This is bad news for the the new iLike artist platform on Facebook, which launched today. But as we’ve said before, if you play in Facebook’s sandbox, be prepared for a little competition.
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