Digital Distribution in Gaming

With the increased accessibility of high-speed internet and consequential rise of digital distribution within the last console cycle, odds are good that this an upward trend we will see continuing through the release of Sony's and Microsoft's next-gen hardware.

Analytics firm IHS projects that digital will account for up to 34 percent of games spend on PlayStation 4 and Xbox One by 2017. It sees this as a natural continuation of digital's growth through the lifespan of the PS3 and Xbox 360, shooting from 7 percent in 2008 to its current, considerable share of the market.

"it's clear that next-gen consoles will be more aggressively aligned to digital distribution and services than previous cycles," says IHS games director Piers Harding-Rolls. With the growing popularity of 'day and date' digital releases coinciding with packaged retail launches, Harding-Rolls says, "By 2017 new releases could be enjoying up to 18 percent digital sales depending on geography."

There are five key factors behind the growing adoption of digital distribution, according to the report.

Content and services: The increased availability of day-one digital releases for console games, as well as the prevalence of DLC, in-game purchases and free client software through which to deliver these, will continue to drive adoption of digital. "While digital distribution of full games will drive the transition as it has in the PC sector, experimentation with new content and service models... will help accelerate the switch to digital consumption," says the IHS report.

Pricing: "The nature of the 'closed' console platforms means that competition on pricing is inevitably less developed, but this is slowly changing," says Harding-Rolls. With digital marketplaces now beginning to price games aggressively against packaged retail, it seems natural this will be an ongoing and growing trend, leading to lower list prices for consumers.

Accessibility: "Especially relevant for high-end games, the ability to access content rapidly or even instantly would accelerate digital adoption significantly," says the report, citing in particular the PlayStation 4's ability to stream PlayStation 3 titles. "How these are built and rolled out will impact digital distribution adoption."

Discoverability: With more populous digital marketplaces, the inevitable issue of discoverability will crop up, as it has done on popular mobile platforms such as Apple's app store. On this vector, Sony and Microsoft's ability to build "effective discovery tools and recommendation engines" will deeply affect adoption rates by both customers and developers.

Monetization: While the outgoing console generation has seen DLC become a normalized fixture of games' business model, IHS foresees the adoption of mobile-styled microtransactions and hybrid retail/digital models to propel spending on next-gen consoles.

"There is no doubt that this is by far the most competitive consumer electronics climate that Sony and Microsoft have launched consoles into," concludes the IHS report. "However... the shift to digital consumption coupled with lower up-front investment in console hardware design and custom components will lay the foundation for stronger profitability for the platform holders [Sony and Microsoft] across the next generation."

Reference: http://www.gamasutra.com/view/news/204427/Digital_on_track_to_comprise_34_percent_of_console_market_by_2017.php

Free Digital Distribution And 90% Royalties To Artists & Labels

AMAdea Music is a UK registered company that provides an optimum solution for digital distribution of your music content.

We at AMAdea believe that we should not only work as a standard service company but help artists, labels and distributors adapt to and develop in the ever-changing music industry.

Our team consists of people who like to work in the world of music. This motivates them to give their best to make our customers happy and well taken care of.

Digital Distribution General Points:

- Free distribution, no hidden cost, no upfront cost, no annual cost
- 90% Royalties of all sales through all stores
- 97% coverage of the world, over 70 countries
- more than 500 stores
- you can manage stores where you want to go your music
- delivering to mainstream portals - iTunes, Amazon, Spotify, Emusic, Rhapsody and etc.
- delivering to all important dance portals - Beatport, Traxsource, Juno, Trackitdown and etc.








Reference: http://www.mi2n.com/press.php3?press_nb=168987

Pac-12 Networks sign digital distribution deal

You may remember that broad distribution of thePac-12 Network is being held up by DirecTV, which has balked at assigning bandwidth to the upstart sports network. Only the Big Ten Network has managed to make a profit running its own network, and other BCS conferences – most notably the SEC – have turned to big-time partners like ESPN to ensure distribution.




Going it alone, the Pac-12 may do battle with DirecTV for a while yet. But they have added a major piece of the distribution puzzle this week, signing on with AT&T U-verse today. There was no standing on ceremony, either. The network went live on AT&T U-verse immediately, so more homes were able to tune in today’s football games.


From the official press release:


With the deal, Pac-12 Networks now is available on four of the top six distributors in the U.S., and more than 50 television providers overall. Existing partners continue to launch Pac-12 Networks in more markets around the country including Comcast in Chicago, Time Warner Cable in the Midwest, and Cox in New England and the Washington DC area, among others.




As always, football is driving the bus on this deal, but a couple of months from now, college hoops fans on the left coast will have more opportunities to see their favorite teams lace ‘em up.




One of the most interesting aspects of the U-verse deal is the plan to make the Pac-12 Network available on mobile devices such as phones, tablets and PCs. Sneak-watching sports at work just gets easier every day.

Reference: http://collegebasketballtalk.nbcsports.com/2013/09/07/pac-12-networks-sign-digital-distribution-deal/

Nigeria’s growing digital music distribution market valued at N16.2bn

The growing online platform for digital music distribution in the country is now being valued at $100 million, about N16.2 billion, according to analysts with Spinlet, with iRoking and iTunes dominating the market.

Digital distribution outfits have sprung up in the last six years, making it possible for the spread of local music online and for investors to tap into an estimated $10 billion digital market globally

“Investors in digital music distribution are seeing huge potential for profits,” says an analyst.

The internet has become an important element of modern economic infrastructure recently, fundamentally changing how people interact, how consumers shop, and how products and services are designed, developed, marketed, and delivered. The internet has also changed how businesses operate and interact with one another.

The increase in digital trade, which has had significant impact on the United States and global economies, is offering Nigerian artistes and their music to be heard in different parts of the world. Thus, bringing about increase in revenue for artistes.

In 2012 alone, according to the United States International Trade Commission, digital music contributed $4.1 billion to the US economy.

In one of the highest-profile moves so far, Universal Music Group and Samsung Electronics announced in August the creation of The Kleek, a pan-African digital music service, which features music from Universal’s international catalogue and from local artistes like the Power Boyz in Angola, DJ Vetkuk in South Africa, and W4 in Nigeria.

Mark Redgaurd, marketing manager, Spinlet, says digital music is a major paradigm shift happening globally. Music is moving from physical purchases to digital downloads and streaming, and Nigeria is definitely part of this. According to him, market for online music has been very positive.

“We see tremendous amounts of potential in Nigeria and across Africa. The market is very nascent. As such, the market value can vary with little degree of accuracy. I don’t think anyone knows its true potential. Digital distribution has certainly made an impact and will continue to do so for the long term,” he says.

Digital music distribution has continued to spread its tentacles across the continent. In December last year, South Africans were given access to the iTunes digital music store from Apple. Around the same time, one of the leading internet streaming music services, Deezer, a French company, expanded across much of Africa.

And in several countries, including Nigeria, local digital music operations like iRoking have started to attract large numbers of listeners and investors. Recently, it attracted $8 millon from Tiger Global Management.

Ayeni Adekunle, CEO, Blackhouse Media, agrees there are huge opportunities in this emerging market for music distribution.

“It is possible to make the best we can of it,” says Adekunle, if stakeholders put their best foot forward. Whether it’s Spinlet or iTunes or Iroking or Notjustok, what’s certain is that digital is the future of distribution. Look at the feat Jay Z has scored, with his MCHG deal with Samsung.”

Digital music must have affected the performance of other channels of music distribution like CDs. Michael Odiong, special project manager, Premier Records, says in the last four months CD sales have dropped by 8 percent, saying that “in the last three to four months CD sales have dropped. More people are switching to digital sales. We have more music applications coming in now, giving consumer diverse offerings online.”

To him, this new trend is forcing old record label companies like Premier Records to diversifying their platform for music sales.

“We are diversifying and working with the likes of iRoking and Spinlet for digital distribution and with Konga.com for physical sales. We are trying to make sure we maximise every available online platforms for the sale of our music. We are also working with rhapsody and iTunes,” he discloses.

Digital form of music distribution has been argued to be a good alternative to physical form as most stakeholders believe it will help curb piracy.

“If you look at what Spotify is doing, and the fact that the telcos are using RBTs and CRBTs as ways of pushing music, and with iTunes opening up to the Nigerian market, you’ll see clearly that we’re quickly moving past the Alaba era. I think the system is opening up to digital distribution. We are very optimistic and all key players are adapting to follow the trend.”

Some industry analysts say digital music platform has fuelled piracy instead of decreasing it. To them, the rapid evolution of internet technologies and the ways they are used make it easy for consumers to share music through their mobile phones or laptops.

They argue that widespread access to and use of the internet has been made easier by mobile devices such as smartphones, tablets, gaming consoles, televisions, and TV set top boxes (digital video recording devices), which makes it increasingly difficult to track how music is shared and protect intellectual property.

Adekunle argues further that piracy cannot be totally eradicated, saying “no one can eradicate piracy, really. But if we make music products available to consumers at the right time, and in the right places, piracy can be reduced to the barest minimum.”

In addition, Odiong says digital online is the biggest pirates itself and record labels may go into extinction in the near future, as “the pirates are everywhere and downloading music for N100,” adding that it is killing the market.

“Yet artistes see it as the biggest means to promote themselves. They believe they can just make a song, upload it online. The money they will make from it is not so important to them. They just want to be heard. They don’t see it, but for records label it is a big problem. Record labels are going into extinction. There is no formal structure to protect them in the country. It is a major problem. More record labels are folding up. It is only the old ones that are surviving. It is the frustration that is forcing the artistes to go online.”

European Union Pledges $5.6M to its Digital Distribution Market

France’s UniversCiné, Germany’s Europe’s Finest and Austria’s flimmit.com are among 13 European VoD platforms and DCD initiatives to benefit from the EU’s MEDIA Programme.

According to the European Commission, the main objective “is to support the creation and exploitation of catalogues of European works to be distributed digitally across borders to a wider audience and/or to cinema exhibitors through advanced distribution services, integrating where necessary digital security systems in order to protect online content.”

The largest sum - $981,000 (€ 750,000) – was awarded to the French VOD platform UniversCiné, which this year plans to extend its EuroVOD network of platforms to new territories such as the UK and Italy and focus on strengthening the strategic position of the project platforms in their respective markets as well as developing ‘multi-channel’ and ‘multi-device’ distribution.

Germany’s Europe’s Finest, which received $392,000 (€300,000) funding from MEDIA, currently has the largest collection of European film classics and current arthouse films for digital cinema.

There are plans to extend its catalogue and add a second pillar of activity by making the Reelport-owned service available as a platform for other distributors so that they can offer the films in digital form to the network of cinemas.

A start was made last year by launching Operation Kino films on Europe’s Finest and - together with new partner Hollywood Classics - the plan is to launch a joint venture “finest-classics” to provide a world-wide dimension to the offer.

Meanwhile, with $262,000 (€200,000) MEDIA backing, Austria’s flimmit.com now plans to evolve from a technical start-up to a full-service film distribution and marketing company to ensure that European films also benefit from economies of scale.

Other platforms supported in this funding round included the UK’s Curzon On Demand and Distrify’s transactional VoD platform MUVIES.COM, the first European SVOD service FILMOTV, and VoD platforms specifically dedicated to documentaries such as France’s medici.tv, the Netherlands’ DocsOnline, the Doc Alliance Films portal as a partnership between Visions du Réel Nyon, DOK Leipzig, Planete Doc Review Warsaw, CPH:DOX Copenhagen, IDFF Jihlava and FIDMarseille.

Rumors of Apple New Radio Shakes the Internet Radio Market...Starting with Pandora Radio

    

Shares of Pandora Media plummeted as much as 21% on Friday after word leaked out that Apple has been in discussions with record labels to launch a competing streaming radio service.


Apple's proposed online service, first reported by the Wall Street Journal, would have the potential to disrupt both Internet and traditional radio providers.

Cupertino, Calif.-based Apple is seeking a more flexible type of music license from the record labels than the one Pandora has. It would allow Apple to select whatever song it wants to play next and tailor selections based on albums in listeners' iTunes music libraries, according two industry executives with knowledge of Apple's plans for the service.

Such features would give Apple the ability to customize its music to individuals, which traditional radio can't do, without having to ask them what they like or restrict how often a single song can be played, as Pandora must.

Pandora's stock plunged as much as 21% in trading Friday, dipping below $10 in the morning before recovering slightly. It closed at $10.47, down 16.7%.

Apple's stock, meanwhile, marched up $4.17 Friday to close at $680.44 -- a new all-time high for the company.

A Pandora spokeswoman declined to comment, and Apple did not return calls seeking comment.

Why did Wall Street have such a dramatic reaction?

"This is Apple," said Michael Pachter, an analyst with Wedbush Securities. "If Apple wants to compete with you, then you got a problem."

For years, Apple and Pandora had a symbiotic relationship. After launching its Internet radio service on Apple's iPhone in 2008, Pandora's application skyrocketed in popularity, becoming one of the most-downloaded applications for the device.

Pandora, which had struggled to reach listeners on personal computer Web browsers, saw its audience explode, enabling the company to stem its losses by selling more advertising on its service.

Apple benefited from having one of the most well-liked entertainment services on its phones and tablets without having to spend a cent to develop the product. Now, however, Apple is negotiating deals with music labels for its planned radio streaming service.

"The big open question is: Why is Apple doing this now?" Pachter said. "The answer is that they fully intend to make a lot of money from this, and the way to do it is to sell more songs. The record labels embrace this because they see Apple can integrate iTunes downloads into the radio offerings in a much more compelling way than Pandora can."

Still, Pachter said, if Apple proceeds with launching a radio service, Pandora isn't necessarily toast.

"They have a big install base, and they’re on Android," he noted. "They’re not going to just lose all their customers overnight. I’m sure they’ll keep at least three-quarters of their customers or more, if Apple follows through. It'd be more of a setback as opposed to total devastation, but they’ll recover."

Pandora, which had a rocky time since going public last year, looked as if it may be turning the corner last quarter. Its shares jumped as much as 12% immediately after it reported that second-quarter revenue. That was up 51% from a year earlier to $101.3 million in the quarter that ended July 31.

Executives of the Oakland, Calif., company also said that third-quarter revenue probably would come in as high as $118 million -- higher than the $114 million that financial analysts had expected -- and that it would probably break even in the third quarter or even make a penny a share.


Reference: www.latimes.com

Sound Exchange Pays 204.4 Million Royalties since 2012

SoundExchange announced it has distributed $204.4 million in digital royalty payments to recording artists and record labels in the first two quarters of 2012. In its second quarter, SoundExchange distributed $95.8 million, the second highest quarterly distribution in the organization's history.

SoundExchange is the non-profit performance rights organization that helps the music and creative community thrive in the digital world. The organization collects and distributes performance royalties from non-interactive digital music services on behalf of recording artists and labels for the use of their sound recordings. To date, SoundExchange has paid more than $1 billion in royalties to the creators of music.

"This quarter's distribution adds to what is shaping up to be a record breaking year for SoundExchange and reflects the continued growth of digital radio listenership and services," said Michael Huppe, president, SoundExchange. "SoundExchange is proud to be part of this growing revenue stream for the creators of music. We will continue to pursue all efforts to ensure that artist and labels are properly compensated for their critical contributions to these services."