As increase in digital music sales slows, record labels look to new ways to make money

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Tuesday, August 31, 2010

Every September, the Apple iPod is redesigned. Last year saw the release of the iPod Nano 5th generation, bringing a video camera and a large range of colours to the Nano for the first time. But as Apple again prepares to unveil a redesigned product, the company has released their quarterly sales figures—and revealed that they have sold only 9m iPods for the quarter to June—the lowest number of sales since 2006, leading industry anylists to ponder whether the world’s most successful music device is in decline.

Such a drop in sales is not a problem for Apple, since the iPhone 4 and the iPad are selling in high numbers. But the number of people buying digital music players are concerning the music industry. Charles Arthur, technology editor of The Guardian, wrote that the decline in sales of MP3 players was a “problem” for record companies, saying that “digital music sales are only growing as fast as those of Apple’s devices – and as the stand-alone digital music player starts to die off, people may lose interest in buying songs from digital stores. The music industry had looked to the iPod to drive people to buy music in download form, whether from Apple’s iTunes music store, eMusic, Napster or from newer competitors such as Amazon.”

Mark Mulligan, a music and digital media analyst at Forrester Research, said in an interview that “at a time where we’re asking if digital is a replacement for the CD, as the CD was for vinyl, we should be starting to see a hockey-stick growth in download sales. Instead, we’re seeing a curve resembling that of a niche technology.” Alex Jacob, a spokesperson for the International Federation of the Phonographic Industry, which represents the worldwide music industry, agreed that there had been a fall in digital sales of music. “The digital download market is still growing,” they said. “But the percentage is less than a few years ago, though it’s now coming from a higher base.” Figures released earlier this year, Arthur wrote, “show that while CD sales fell by 12.7%, losing $1.6bn (£1bn)in value, digital downloads only grew by 9.2%, gaining less than $400m in value.”

Expectations that CDs would, in time, become extinct, replaced by digital downloads, have not come to light, Jacob confirmed. “Across the board, in terms of growth, digital isn’t making up for the fall in CD sales, though it is in certain countries, including the UK,” he said. Anylising the situation, Arthur suggested that “as iPod sales slow, digital music sales, which have been yoked to the device, are likely to slow too. The iPod has been the key driver: the IFPI’s figures show no appreciable digital download sales until 2004, the year Apple launched its iTunes music store internationally (it launched it in the US in April 2003). Since then, international digital music sales have climbed steadily, exactly in line with the total sales of iPods and iPhones.”

Nick Farrell, a TechEYE journalist, stated that the reason for the decline in music sales could be attributed to record companies’ continued reliance on Steve Jobs, CEO of Apple, saying that they had considered him the “industry’s saviour”, and by having this mindset had forgotten “that the iPod is only for those who want their music on the run. What they should have been doing is working out how to get high quality music onto other formats, perhaps even HiFi before the iPlod fad died out.”

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When Jobs negotiated a deal with record labels to ensure every track was sold for 99 cents, they considered this unimportant—the iPod was not a major source of revenue for the company. However, near the end of 2004, there was a boom in sales of the iPod, and the iTunes store suddenly began raking in more and more money. The record companies were irritated, now wanting to charge different amounts for old and new songs, and popular and less popular songs. “But there was no alternative outlet with which to threaten Apple, which gained an effective monopoly over the digital music player market, achieving a share of more than 70%” wrote Arthur. Some did attempt to challenge the iTunes store, but still none have succeeded. “Apple is now the largest single retailer of music in the US by volume, with a 25% share.”

The iTunes store now sells television shows and films, and the company has recently launced iBooks, a new e-book store. The App Store is hugely successful, with Apple earning $410m in two years soley from Apps, sales of which they get 30%. In two years, 5bn apps have been downloaded—while in seven years, 10bn songs have been purchased. Mulligan thinks that there is a reason for this—the quality of apps simply does not match up to a piece of music. “You can download a song from iTunes to your iPhone or iPad, but at the moment music in that form doesn’t play to the strengths of the device. Just playing a track isn’t enough.”

Adam Liversage, a spokesperson of the British Phonographic Industry, which represents the major UK record labels, notes that the rise of streaming services such as Spotify may be a culprit in the fall in music sales. Revenues from such companies added up to $800m in 2009. Arthur feels that “again, it doesn’t make up for the fall in CD sales, but increasingly it looks like nothing ever will; that the record business’s richest years are behind it. Yet there are still rays of hope. If Apple – and every other mobile phone maker – are moving to an app-based economy, where you pay to download games or timetables, why shouldn’t recording artists do the same?”

Well, apparently they are. British singer Peter Gabriel has released a ‘Full Moon Club’ app, which is updated every month with a new song. Arthur also notes that “the Canadian rock band Rush has an app, and the industrial rock band Nine Inch Nails, led by Trent Reznor – who has been critical of the music industry for bureaucracy and inertia – released the band’s first app in April 2009.” It is thought that such a system will be an effective method to reduce online piracy—”apps tend to be tied to a particular handset or buyer, making them more difficult to pirate than a CD”, he says—and in the music industry, piracy is a very big problem. In 2008, the International Federation of the Phonographic Industry estimated that 95% of downloads were illegitimate. If musicians can increase sales and decrease piracy, Robert says, it can only be a good thing.

“It’s early days for apps in the music business, but we are seeing labels and artists experimenting with it,” Jacob said. “You could see that apps could have a premium offering, or behind-the-scenes footage, or special offers on tickets. But I think it’s a bit premature to predict the death of the album.” Robert concluded by saying that it could be “premature to predict the death of the iPod just yet too – but it’s unlikely that even Steve Jobs will be able to produce anything that will revive it. And that means that little more than five years after the music industry thought it had found a saviour in the little device, it is having to look around again for a new stepping stone to growth – if, that is, one exists.”

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Japan’s National Diet passes law allowing Emperor Akihito to abdicate within three years

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Monday, June 12, 2017

On Friday, Japan’s parliament, the National Diet, passed a law to allow Emperor Akihito to abdicate. The law gives Akihito three years to become the first emperor to abdicate since Emperor Kokaku in 1817, two hundred years ago.

The newly passed law, made in response to the country’s Imperial Household Law’s lack of abdication provisions, applies to only Akihito, aged 83. It prohibits Akihito’s successors from abdicating.

Akihito ascended to the 2,000-year-old Chrysanthemum Throne when his father Emperor Hirohito died in 1989. Having a cardiac surgery and treatment for prostate cancer, Akihito in a televised address last year said age and health were interfering with his duties. Per Japan’s current constitution, an emperor cannot make political statements, so Akihito did not explicitly mention abdication.

When abdication happens, under new law, Akihito’s son and heir apparent Naruhito will ascend the throne, becoming the country’s 126th emperor. Besides Naruhito, Akihito has another son and a daughter.

Emperor Akihito’s heir apparent Naruhito, born in 1960, graduated from Oxford University and married a Harvard University graduate Masako Owada in 1993. Portland State University professor Kenneth Ruoff told the BBC that, while Akihito and his wife have been active in social causes, Naruhito and Masako have done little in this regard. A Kyoto Sangyo University emeritus professor Isao Tokoro said Naruhito “has been educated,” is born, and is qualified “to be emperor[.]”

In 2006, the National Diet debated on allowing female ascendance, as the emperor lacked grandsons at the time, due to the current male-only royal ascendance laws. Then Hisahito, now 10, was born, and the debate lapsed.

Naruhito has only one child Aiki, 15, while his brother Prince Akishino, 51, has three children, including his only son Hisahito. Per current law, Hisahito is qualified to ascend after his uncle Naruhito and his father.

The royal family has 19 living members, including seven unmarried princesses and five males. Female royals, if marrying a commoner, would have to give up their royal status, leaving the royal family, while males would still be allowed to retain their royal status after marrying a commoner. Akishino’s daughter Princess Mako announced her plans last month to relinquish her royal status and leave the royal family in order marry a commoner Kei Komuro, a graduate student and law firm worker, both of them aged 25. In 2005, Mako’s aunt and Naruhito’s sister Sayako, formerly Princess Nori, married a commoner Yoshiki Kuroda, a town planner, and was forced to relinquish her status and leave the family.

A Temple University Japan professor Jeff Kingston said a national succession crisis has people raising concerns about female princesses leaving the royal family when getting married. Kingston added the family “[has] a shortage of male heirs.” Kingston also said ousting a female royal for marrying a commoner is “a very old-fashioned approach, totally out of sync with 21st-century norms” to many people around the world, including in Japan.

In a survey by Kyodo News conducted in May of about 3000 people at least 18 years old, 68 percent said the Imperial Household Law should be amended to allow future emperors to abdicate. 25 percent favored separately legislating each abdication. Four percent said abdication of emperors should never be allowed.

On questions involving female royals, 86 percent said to allow empresses; 59 percent supported both empresses and established branches of female lineages. 62 percent supported establishment of separate branches for princesses retaining their roles while marrying commoners; 35 percent opposed. 61 percent said female ascendance should be debated only after the abdication, while 28 percent said it shouldn’t wait for the abdication.

Early this year, the Japanese Prime Minister Shinzo Abe considered giving imperial status to branches of those who left the royal family. In the survey, 22 percent supported the idea; 72 percent opposed.

The Abe government has avoided the debate of female ascendance but recently passed a non-binding resolution attached to the newly passed abdication law to consider how to strengthen female royal status, possibly including allowing them to retain their royal titles and continue their duties, to compensate for the declining royal population.

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Fishermen make “very rare” find in Siberia

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Wednesday, May 24, 2006

In Siberia, fishermen made what experts are calling a “very rare” discovery. A complete and nearly intact skeleton of a mammoth has been found in Krasnoyarsk, Russia off the shores of a small lake. The skeleton became visible when waters from a recent flood receded.

“It happens very rarely. I’ve been in the area 14 years and this is the first time. The bones are usually spread around over a wide area. The find has retained a backbone, a skull with teeth and a tusk and other anatomic details,” said Alexander Kerzhayev, deputy director of the museum and archeologist in Novoselovo, Russia.

Kerzhayev also said that the mammoth appeared to have lived until about 50-years old. “It was an adult mammoth, judging by the size of bones it was at least 50 years old,” he added also saying the mammoth appeared to have died from being sick.

However, Kerzhayev also says that the museum does not have the resources to retrieve the remains and that “no one seems to care” about the discovery adding that small portions of the animal could be retrieved.

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TARC to showcase R&D achievements in 2008 AutoTronics Taipei

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Friday, April 11, 2008

In the Opening Day of 2008 AutoTronics Taipei (April 9), the Industrial Technology Research Institute of Taiwan (ITRI) invited Jamie C. Hsu (Consultant of Ministry of Economic Affairs of the Republic of the China and Former Management Executive Director of General Motors Global Technology) for a speech in the “Pavilion of Taiwan Automotive Research Consortium (TARC)” to forecast the future of automobile industry in Taiwan, which echoed the “Taiwan Automotive International Forum & Exhibition”, held at TWTC Nangang in conjunction with 2008 Taipei AMPA.

Before the main show, Department of Industrial Technology of Ministry of Economic Affairs supervised the establishment of TARC by ITRI, Chung-Shan Institute of Science and Technology, Metal Industries Research & Development Center, and the other academical and industrial units to improve the level of research and development including applications on security, artificial intelligence, and energy-saving.

There were several crisis for the automobile industry in Taiwan because of the decrease of market scale, low self-independence, technology transition, and the rise up of oil prices. But after in conjunction with light-weighting, electronical, and energy-saving related industries, there were other chances and challenges for the automobile industry in Taiwan. Currently, the Taiwan Automotive Research Consortium should do a proper role on R&D, policy driving, and quality improving, even though urban and rural differences, and key issue of carbon dioxide wasting, if there is a new innovation, Taiwan will be a good example in the automobile industry in the world.
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Jamaica: Violence kills at least 30

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Wednesday, May 26, 2010

Authorities in Jamaica say that gunfights in the capital Kingston have left at least 30 people dead, as hundreds of troops and police search for an alleged drug kingpin wanted by the US. At least 25 people were injured as well.

The violence has been triggered by the Jamaican government’s efforts to extradite Christopher “Dudus” Coke, the alleged leader of the “Shower Posse” group. Armed security forces stormed the Tivoli Gardens slum of western Kingston on Monday in an effort to locate Coke, who has not been found. Last week, Coke’s supporters barricaded the area in an attempt to thwart his arrest.

The trouble has forced the closure of schools and businesses across the capital, and the government has appealed for blood donations for the wounded. A state of emergency is in effect for parts of Kingston.

The US has issued a travel alert to warn citizens against visiting the island nation. Jamaican Prime Minister Bruce Golding has promised “strong and decisive” action to restore order.

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Pop starlet Kylie Minogue has early-stage breast cancer

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Tuesday, May 17, 2005

Pop starlet Kylie Minogue has announced through her management that she has an early stage of breast cancer. The 36-year-old has said she will be going through the treatment in her native Australia. Due to early diagnosis the singer stands a good chance of making a full recovery.

Kylie, who had spent the past week in Melbourne, has revealed that due to the cancer the rest of her Showgirl tour of Australia will be postponed and her appearance at this year’s Glastonbury festival will be cancelled.

The Showgirl tour was due to hit Sydney, Melbourne, Brisbane, Adelaide and Perth in June. However despite the cancellation, ticket holders are advised to hang on to tickets as new dates may be announced.

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Stolen minibus recovered 35 years after theft

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Friday, November 6, 2009

A 1965 Volkswagen minibus that was stolen in 1974 has been recovered by customs agents in Los Angeles. The vintage minibus was in pristine condition, valued at $25,000, and was found during a routine inspection of a shipping container scheduled for departure to The Netherlands. A routine computer database search on its vehicle identification number flagged it as having been stolen from a vehicle upholstery shop in Spokane, Washington on July 12, 1974. A custom restoration business in Arizona was attempting to deliver it to overseas clients last month when authorities intercepted the vehicle.

“Pretty amazing, isn’t it?”

The theft appeared on the National Insurance Crime Bureau database, which is used by border authorities and contains all stolen vehicle records. Most police databases remove unsolved vehicle thefts after five years.

The California Highway Patrol does not suspect the restorer of wrongdoing, according to investigating officer Mike Maleta. Possession of the vehicle apparently changed several times. Police in Spokane have not yet located the rightful owner, whose identity has not been released to the press. Maleta hopes that a trail of registration documents and interviews will uncover the thief.

“[The restoration firm owner is] a victim himself. He was an innocent purchaser…”

The Allstate insurance company paid $2500 shortly after the theft occurred and wants to take possession of the vintage minibus. Allstate spokeswoman Megan Brunet expects that after the necessary paperwork is processed the firm will sell it at auction.

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Several groups seek to purchase Saturn auto brand

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Thursday, May 7, 2009

Penske Automotive Group, Inc., an Ohio-based investment group and Telesto Ventures have indicated separately that they are interested in purchasing the Saturn auto brand from General Motors (GM).

According to The Wall Street Journal, Nissan-Renault is interested in purchasing Saturn. Bloomberg, however, indicated that Nissan-Renault may be a partner of Penske’s potential bid. If Penske acquired the brand, they would distribute Saturn vehicles and outsource the assembly.

GM revealed that the Saturn brand along with Saab and Hummer were up for sale when unveiling their restructuring plans to Congress for governmental loans. While the Pontiac brand was originally to be a niche brand, GM had changed their plans recently and decided to eliminate the brand.

Telesto Ventures is an investment group that includes private equity firm Black Oak Partners LLC of Oklahoma City and several Saturn dealerships. Initially, Telesto will purchase Saturn branded cars from GM then act as a general retailer for foreign brands. Telesto is in talks with several foreign manufacturers.

The Ohio group includes many former senior auto company managers plus private financial backers, chemists and engineers who live in Michigan, Ohio, Indiana and Florida. This group plans to initially purchase cars from GM then purchase existing but closed plants due to automaker restructuring. Additionally, one of the partners indicated a willingness to accept some “legacy” cost in relation to the United Auto Workers. The Ohio group is also pursuing possible loans or other support from national and state governments.

GM is reviewing several offers for Saturn. GM has contracted with S.J. Girsky & Co. to advise them on the sale.

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18-year-old charged for Thanksgiving lesbian assault

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Monday, November 26, 2012

An 18-year-old man, Travis Hawkins Jr., was charged yesterday by police in Mobile County, Alabama, for allegedly beating a woman who is romantically involved with his sister. Hawkins was bailed following a charge for second-degree assault.

Mallory Owens, 23, the victim of the attack, is in the USA Medical Center in Mobile, recovering from the injuries. Owens has had to have facial reconstructive surgery and had a broken nose from the assault during Thanksgiving. Owens’ family have told reporters they believe it to be a hate crime and called for the prosecutors to upgrade the charges against Hawkins.

The father of the arrested man, Travis Hawkins Sr., has said they have hired a lawyer for his son, Hawkins Jr.

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Ford’s US auto sales spike, surpassing GM

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Wednesday, March 3, 2010

Ford Motor Company said on Tuesday that its sales in the United States rose 43% in February compared to the same period last year, as the automaker outsold rivals Toyota and General Motors.

The strength of our new products … are resonating with customers

Ford said that total sales improved to 142,285 units, compared to 141,951 units sold by GM. Additionally, Ford said that its share of the total US car market rose to 17%, up from 14% a year ago. The increase was better than analysts had predicted, and Ford’s stock rose to a five-year high in morning trading, before declining later in the day. Ford’s sales were significantly influenced by a 74% increase in fleet sales to businesses. Rental car agencies alone accounted for around 30,000 units sold. Sales to retail consumers increased only 28%.

The increases were led by sales of two sedans, the Fusion and Taurus, which rose 166.5 and 93.3% respectively, although sales of other models such as SUVs and pickup trucks also increased. Both models were significantly redesigned last year, and analysts said that improved quality from such cars were driving the increases.

Other companies also reported February sales today, nearly all reporting sales gains as well, although none as large as those of Ford. Toyota was the sole exception to the sales gains, as their sales declined 8.7%, as the company was faced with a global recall during the month that led to a temporary stoppage of production for some models.

“The strength of our new products … are resonating with customers,” said Ken Czubay, Ford’s vice president of sales and marketing. However, he believed that traditional Toyota customers were not buying rival autos, but rather awaiting the results from the recalls.

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