Apple Buys EMI

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And the Beatles join the iTunes Store just in time for Saturday's iPad launch.

The deal... Just like with Apple's purchase of Lala, no hard numbers have been released. But both Citi and Terra Firma are happy. Citi gets its money back, and Guy Hands gets to save face, Terra Firma's covenant breaches become irrelevant, there's no need to raise and inject new capital and by selling to Jobs, et al, Hands gets to spin the concept that this was his plan all along.

Yes, the catalog license was just a ruse. Because, after all, everyone knows that Mr. Hands is smarter than Doug Morris and Mel Lewinter. Lucian Grainge? He's a glorified A&R guy with a bean counter mentality. Hands played the Universal boys like a fiddle. Do you really think he'd place the Fab Four's music in the hands of such charlatans? When he can put it in its rightful place, in the bosom of Steve Jobs, and see it live forever?


What we do know is Apple's got more of a future than major labels. Which is why the Cupertino company is smart enough to immediately close down new music development at EMI. It's about the catalog baby, unless you can stunt. Which is why Damian Kulash and OK Go are coming back. Yes, that was part of the deal, Jobs insisted. Upon launch of the 3G iPad, there will be a new OK Go video, to bump sales thirty days after the Wi-Fi launch. And, one year from now, when the 3-D iPad launches, the OK Go Rube Goldberg video will be free in 3-D for all purchasers. Along with a gratis copy of "Up" in 3-D.

A 3-D iPad?

3-D TV makes no sense. Sitting on the couch with those doofus glasses. But every 3-D iPad will come with WHITE glasses! Can you imagine the rage? Haven't heard from Kanye recently? That's because he's part of the 3-D iPad launch! He's going to promote the white glasses! Dr. Dre and Beats headphones? Come on. Monster compared to Apple? Iovine's no match for Jobs. Whatever happened to that Jimmy sponsored high quality sound for computers...go the way of SACD and DVD-A?

Anyway, despite turning EMI into a catalog company, there will be a road open into the new Apple-owned EMI (for the record, the EMI name will be dropped...no, it won't be called Apple Records, because of the Beatle conflict, the record company will just be another division of Apple Inc.) Apple has brokered a deal with SonicBids, wherein wannabes can submit music to be used in iPad promotions. One wonders how this works, because of the low quantity of music ultimately required and the vast number of submissions, but that hasn't stopped SonicBids in the past, so...

In other words, Apple will be in the new music business, but only for songs they can use to cross-promote Apple products. Furthermore, if you make a deal with Apple, you cannot tie in with any other company. Steve loves his walled garden. So, if you're contemplating a deal with Procter & Gamble, don't waste your time with SonicBids.

So what does this mean for music?

The story since the purchase of Lala has been cloud-based listening. But now that Apple owns not only the Beatles, but the Beach Boys and the Band (what Steve refers to as the "Three B's"), the company plans to drive down the price of music at the iTunes Store. Yes, within thirty days, every EMI track will be a dime. The major labels wanted higher prices?? Let them wrestle with LOWER prices! Yes, music will be a loss leader, all to sell iPads, iPods and iPhones. Everybody knows the money's in hardware. Furthermore, with streaming imminent, why not blow out MP3s? It took Universal ten years after Napster to drop the price of the CD to ten bucks? Apple can see that ownership is near extinction, they want to blow out product while they can.

As for the Beatles... They will only be available in Apple Lossless format. Yoko Ono insisted. It's a way of separating John from the legacy of Phil Spector, who famously wore that button "Back To Mono". By only making high quality files available, fidelity will be luscious, you won't get the compressed Wall of Sound and Phil can rot in jail, where Ono believes he belongs.

But, you say those lossless files take forever to download, they're bandwidth hogs!

Not Apple's problem. You pay for your Wi-Fi. And good luck downloading via AT&T on 3G, which is why Jobs will reveal the Verizon iPhone and iPads before the 3G model actually launches.

Controlling the music game, owning EMI and retail, forcing the other three major companies to play on his terms or die, Mr. Jobs is now moving into the touring sphere, where the majority of today's music money resides.

A deal has been brokered with Live Nation. With every concert ticket, you get a free download of the show within twenty four hours, IN VIDEO! Well, not every concert, just those acts controlled by Front Line. Yup, starts with the Eagles. Then Van Halen, who will be back on the road, although Valerie Bertinelli will not be singing backup, Perez Hilton's information is incorrect. Irving's plowing ahead with those acts who've collapsed all their rights and can make these deals. Yes, that was Terry McBride's concept, and his old charges the Barenaked Ladies, having a deal with EMI, will immediately make their concerts available on iPads too.

With so much power residing in Azoff and Rapino's empire, acts under contract to labels will clamor for their companies to grant iPad concert rights too. Soon, well, in two or three years, you know how slow the majors work, every concert ticket will come with a video. Expect audio first. You know how the majors like to dip their toes. Then again, Jobs has hired Hilary Rosen to whip the labels into shape, telling them this is the second coming, to get on board NOW, not to screw up like they did ten years ago.

Then, there's the true breakthrough. iPads at the show.

Yes, your iPad is your ticket. The screen will display a giant bar code. And this will thwart scalpers...like they're going to buy a boatload of iPads? Then again, just like acts scalp their own tickets, there's rumor of a back door deal between Azoff and Apple to do just this, sell discounted iPads to brokers, Azoff getting his money directly from Apple...

And once you've got your iPad at the gig, let the games begin!

Sure, you can tweet, and update your Facebook page. But, for an extra fee, you can get backstage video, every fan's true desire. For even more money, you get a personal greeting from the band member of your choice, to keep forever (or as long as your iPad works...) There's been talk of a further opportunity, one involving intimate involvement with performers after the show, but so far this has only been legally cleared in Nevada. Then again, Las Vegas is a burgeoning concert location.

Will iPads dominate at festivals?

Interesting question. Do you want Coachella Crud on your iPad? Or Stagecoach Schmutz? There's talk of a new device, much smaller, called the iWrist, but with such a small screen, it may be unworkable.

As for now, Steve Jobs illustrates his mercurial nature once again, doing the unexpected, swooping in and seizing an opportunity available to all, but making it work as a result of synergy. Yes, Microsoft kicked the tires. And Elevation Partners too. But Microsoft has got no hardware, no way to maximize the value. It made no sense for Ballmer to overpay. Sure, he could put Beatle pictures and music on Bing, but that's hard to truly monetize.

Palm's got the device, but no money and no traction. Bono and Paul McGuinness met with Guy Hands, but refused to put any of their own money into the deal. Guy told them U2 might be the biggest band in the world, but he couldn't sell the company on faith. As for trusting Roger McNamee...that just elicited a laugh.

As for Google... That was the reason for the Jobs/Schmidt summit last weekend (http://www.sfgate.com/cgi-bin/blogs/techchron/detail?entry_id=60029&tsp=1) One, it distracted the press from sniffing out the EMI deal. Two, it signaled a division of spoils, wherein Apple gets music and Google gets search. Like two Mafia bosses, they divided up the landscape. Then again, Google was worried about worldwide exploitation of the Beatles, the band is still seen as subversive in China.

So the major label era is finally finished.

Steve said there's no way he's paying "Hits". Indie promotion is truly history.

Rob Stringer is cock-blocked. Yes, he wanted to sell to Apple first, but his brother nixed the deal. Sir Howard still believes he can resurrect the moribund Sony brand. Ain't that a laugh. Although there is supposedly a PlayPad in development.

Lyor Cohen... That's why he's selling his townhouse. He knew, he's out. As for Edgar Bronfman, Jr....it's like that old Paul Simon song, "Something So Right"...

"When something goes wrong
I'm the first to admit it
I'm the first to admit it
But the last one to know..."

So it's Steve's world. We just live in it. All you Apple haters can either get on the bus or be left behind. Tech rules. And techies are smarter than music business people. Even hedge funders are smarter than music business people. Come on, can't you give Guy Hands credit, he played this beautifully!

(Note: Clive Calder was outbid for EMI by Apple, he saw no reason to pay so much, he had no synergy, but expect him to buy both Warner and Sony in the aftermath, which he will run on the cheap, with Billy Ocean as head of A&R.)

WORD OF MOUTH

Image via CrunchBase

First and foremost comes a good product.

Requiring no admission fee, no college degree, no qualifications whatsoever, the music business is peopled by hucksters, who employ myriad scams to get you to pay attention to their wares.

But it doesn't work.

Used to. Back when there was limited distribution, when bribing a deejay to play your song got you a leg up. But who buys music because it's got a high iTunes chart position? Sam Adams worked the system in order to get meetings with major labels. But then what? If they sign him, they might market and promote him, but that doesn't mean his music will sell. Because only good music sells.

Sucks, I know. Makes it much more difficult for you. You can't get any traction outside your family and friends. The system's rigged against you. Bullshit. If you were actually good, you'd blow up. We've got people surfing the Web 24/7 looking for good stuff, dying to tell their peeps about it.

In Wednesday's "Wall Street Journal" there's a story about Porter Airlines. I wouldn't have bothered to read it except for the fact that in Toronto, my ear was bent constantly about the carrier.

People waxed rhapsodic. The terminal was downtown-adjacent! The planes had leather seats! The flight attendants were all decked out like the sixties! There was a brand new terminal! And you only had to check in minutes before!

If Porter does any advertising, I'm clueless. But having heard the rap so much, I started spreading the word too. When Seymour Stein told me he was having trouble flying back to New York I asked him, had he tried Porter?

Porter is triumphing with a good product. And it's being sold by its users. Kind of like Google.

I remember the turning point. A phone call with a non-tech savvy friend about a decade ago. She was telling me about some Web-activity and referenced "Googling" something.

This was the proverbial straw that broke the camel's back. I'd been ignoring the search engine, I was a fan of HotBot, but now I had to try Google out, now that the hoi polloi were employing it. Hell, the hoi polloi could barely surf the Web. If Google gave them answers...

I switched to Google overnight.

But it gets better. Not only did I become a user, but a fan. I was thrilled when Apple installed the Google search window in the Safari toolbar. Yeah! It was like my favorite team scoring a touchdown. This is what people don't realize about Steve Jobs' company. We not only buy the products, we're believers. We're interested in everything Apple does. Kick the tires on new products? Shit, sometimes we buy them without even experiencing them first. Ergo, iPad pre-orders.

But it only works if you've got a killer product.

It starts with a track. And from that track, you can build a career. Just like the iPod got people to buy iPhones and Macs. Give someone a taste of an exquisite product, and they're on board.

And it's not about speed. Hell, the twenty first century is littered with products that were hits overnight and disappeared almost instantly. You've got to let the audience discover you. You've got to let people believe it's their choice. Shit, Apple is one cold computer company. But their stores are warm, the customer service is great. And this pays dividends.

Let's focus on service. Because the initial product is not the end of the relationship. Point is, you want a relationship. Dell's lame overseas customer service ended up decimating the company. Apple's made in America customer service gets people testifying. See the difference?

The music business has been about batting people over the head to sell them a product once. You bought it. It sucks? That's your problem. Furthermore, we rip you off at every turn. Just try getting a good concert ticket...what's up with that? Hell, the experience buying an airline ticket is better!

So focus on the music. There's nothing wrong with updating your Facebook page, tweeting away. But those elements are never going to make you. It's your music that's your calling card. And if your music is good enough, it will be embraced by fans and the word will be spread. No one sits at home waiting for their favorite song to come on the radio anymore... Shit, if you like something you can e-mail a friend the MP3, point to a YouTube page, there are many entry points for exposure.

You don't stand out because of the penumbra. Shit, even J. Lo lost her Sony gig. It's no longer how good you look, who you know, who you hang with... It's about the tunes.

Don't point out the exceptions. Those acts tend to be here today and gone tomorrow. Furthermore, this is a twenty first century change. When so much is available, when marketing is abhorred and tuned out, the only people we listen to are our friends. We trust them.

Marketing is the final step these days. It's about positioning. It's about imaging. Like those iPod billboards. They don't tell you much, they just remind you how hip the product is.

So don't bother attending marketing seminars. Don't listen to the major label tell you how it used to be. Just practice, practice, practice. Make something insanely great. And post it online. Hell, give it away for free. Because if it's really good, people will ultimately clamor around you to give you their money...for concert tickets, t-shits and signed CDs, even if they only listen to MP3s. Because believers need badges of honor. They want to evidence what's close to their hearts. It's the key to logos on clothing. Shit, no one wants to sport a JCPenney or Wal-Mart logo just like no one wants to help you sell your lame music. But Louis Vuitton?

And, in case you didn't know... That LV luggage lasts FOREVER!

2010 Predictions

Image by dannysullivan via Flickr

1. Ticketmaster and Live Nation Will Merge

After public outcry lasting a week, people will move on to tracking the exploits of faux celebrities and the two companies will get down to trying to improve their bottom lines. Which will depend not so much on fees, but the artists in the Front Line stable.

Expect innovative merchandising and distribution deals. The ability to stream concerts at home. And a ton of data delivered to acts that will allow them to enhance their careers.

Will this be enough to improve Live Nation's anemic bottom line? Will Ticketmaster be able to demonstrate growth? Unclear at this time. In a business where the lion's share of the revenue goes to the acts, it's hard to grow. But this is their challenge.

And if you want to compete with the behemoth, you've got to deliver more. And better.

Independent concert promoters must do more than pay an advance and sell tickets. They too will be forced to go high tech. Government conditions will allow independent ticketing agencies to flourish, but will they? Or will we learn that Ticketmaster does a good job (which Live Nation's ticketing debacle proved). Or will it all come down to money. How much new agencies will kick back and how little they're willing to profit.


2. Major Labels

History!

Well, that's not exactly accurate.

The behemoth will be TM/LN. What does the act need the major label for when they get can almost all these services from TM/LN and retain the lion's share of revenue from selling the music they do?

Expect major label rosters to continue to shrink. The majors will focus on winners. Broad-based acts that garner radio and TV airplay. However, these acts tend not to be winners in the live arena, so those slices of live revenue and merchandising in the 360 deals are worth little. And, the more people you try to reach, the blander the product. And this business has always thrived on cutting edge product. Which the major label won't sign, because it doesn't know how to expose it and doesn't see instant revenue.

In sum, a bad recipe.

Best to spin off new artist development to a third party and turn the major into a licensing house. Thrive from the catalog.


3. Independent Labels

Don't have 360 deals and don't have cash. If someone is telling you they're staring an indie label, laugh. Unless that someone is a manager and already has an interest in 360 degrees of revenue.

Suddenly, you're your own label. You get all the money, but you're doing all the work. Which artists are historically poor at.

So expect a roll-up of new acts.

So far, TM/LN is not in this business. And Red Light has a lot of acts, but little traction.

Some smart cookie, much younger than the players of today, will build a hit act. The old-fashioned way, slowly, via a lot of touring, employing new technology to spread the word. The success of this act will draw other new acts to this person. And out of nowhere, suddenly, you're going to have a brand new powerhouse.

These will be acts the oldsters want no part of at first. Because they don't see enough revenue. That's how new players always get started. By finding that which few are interested in and becoming the new mainstream. These new acts will be music focused. They won't even think about Top Forty radio. They'll put the fans first. But, they might just end up writing a ubiquitous track. Which is built by the people, not the industry.


4. Acts

Will focus on their niche instead of world domination. It will be about making a living more than earning a private jet lifestyle. These new acts will not be bitching that music is free, they'll be giving away their material, just hoping that you pay attention.

But don't be surprised when one of these new acts suddenly becomes ubiquitous. Because despite the balkanization of the Web, it also allows a story to be universally known, overnight.


5. Terrestrial Radio

A dying medium for music.

The stations are overleveraged, or already in bankruptcy, and they're cutting back infrastructure and banking on twenty plus minutes of commercials per hour. You're supposed to double down, innovate in a crisis. But terrestrial radio has done just the opposite. It's dying, and it will never come back. In a world where no one experiences a commercial they don't want to, do you really expect people to listen to what you tell them and be sold to every third minute? You're dreaming.

Terrestrial radio will be about news and talk, those elements that are immediate. Music's been recorded previously, there's no urgency to sit through the b.s. to hear what you want to.


6. Satellite Radio

Has the benefit of being in automobiles, but a bad image. Will stay at the twenty million subscriber level unless the model is changed and the service becomes free. Don't expect that to happen.


7. Pandora

A winner. I find the service tedious, requiring way too much effort to hear what I want. Slacker is superior. But Pandora is winning.

All because of Tim Westergren. Who kept his company in the public eye. Who aligned himself and his company with the public, not the government or the powers-that-be. Yup, Tim kept rallying his troops, telling them to write to their representatives in Washington, to keep the service alive. To the point where Pandora got name recognition. To the point where it thrives not only on computers, but mobile phones. And is supposedly on the verge of profitability.

Learn Tim's lesson. Keep yourself in the public eye. Don't condemn your customers, rally them.

And know that the best service does not necessarily win.


8. Piracy

Will no longer be the focus of discussion. It will be about signing people up to subscription music services. How long will this take? The cards are held by the rights holders, until they play ball, innovation will be stifled.

Ever notice that Google search is free? That people clicking on ads support the service for everyone? This is the essence of a freemium model. Those paying for music subscriptions will subsidize those employing a free version, albeit with limits...i.e. advertising.

Until you've got the free version, you've got no incentive.

Once people have free streaming services on their desktops, they'll pay to have them on their mobile devices. Because first and foremost, all the data will synch, you'll have convenience and you'll save time. Furthermore, you'll get what you want, all your music on the go. And you'll pay for this.

Makes no sense to try to accumulate a library of tracks. Especially when the health of the business depends on experimentation, getting people to listen to new tracks. This process must be easy. Sure, hard drive space keeps getting cheaper. And broadband connections get faster. But it still takes time to steal and catalog all that music. So, if someone does it for you, will you pay a small price?

Of course.

Starting with small.

It's about regrowing the revenue stream. Not figuring out how we get back to the numbers of yore, but delivering a service people want for a price...and slowly raising that price, like every other service in America. Get 'em hooked first, then make your money.

Traditional labels may rail that music is being devalued. But savvy artists will realize it's about exposure. And that there's more ways to make money than recorded music. Which, of course, should be paid for, but should not be seen as the main way to earn your bread.


9. Music Video

Will be what it originally was. A way for fans and potential fans to experience the act, not a mini-movie. Veoh, if it ever works right, will not experience exponential growth because new acts will not make videos like those of the eighties and nineties, and will not be aligned with Veoh anyway.

Just like Veoh's videos are hosted by YouTube, so are the wannabes'. They can be embedded anywhere. Google/YouTube gives all artists this power. The majors/Veoh have no monopoly on distribution.


10. Retail

Already it's hard to find vast inventories of CDs. This will only get worse. Sure, diehard indie stores will survive, but Wal-Mart and Best Buy will continue to shrink floor space for music, down to essentially nothing.

But the big story will be the decline of the iTunes Store. Sale by track has always been death. You need to get more than a buck a track from a customer to survive. You need the higher price point of a subscription, that is still low, but so desirable that many people buy it.


11. Music

Will need to reclaim its rightful place as the most powerful art form. This will be done by innovative acts, not aligned with a major.

Today's audience sees music as background, not foreground. Aural grease in a club, not something you sit on your floor and listen to again and again as it fulfills your soul.

In order to turn the ship around, we'll need a plethora of artists who can sing, write and play. The new technological tools allow you to fake it in the studio, but it's much more difficult to fake it live. You may point to lip-synching divas as contradiction to this point, I'll say those are productions, whereas real musicians, playing live, sans effects, sans canned backup, touch the audience in a wholly different way, which bonds fans to them, which makes people want more.

Yes, we're going to experience a return to basics. Don't be distracted by the vast gobs of crap, whether it be the wannabes on MySpace or the no-talents on Top Forty radio. The growth will come from those who pay their dues, who rely on their talent.

None of the oldsters believe this. They point to grosses of jokes. They point to dollars as opposed to emotions. And that's how we've gotten to this godforsaken place. Until you focus on the essence, the music, motivating people to come to the show based on the sound alone, you're screwed. The shows will start smaller. They'll be cheaper. But the acts will be better. Because when there's less money involved, you don't do it for the fame, but the love.


12. Conclusion

The music business is going through a wrenching transition. Which will continue and may not solidify in its new form until the end of this new decade. But, when the new destination is reached, most of the old players will be extinct and music will thrive.

We need to separate the wheat from the chaff. This will be done online. Someone like Arianna Huffington will roll up tastemakers and distill information for those not willing to surf all day to find what they want. Wannabes will be seen as that. Esoteric blogs will complain that they host the real music, that they are the true keepers of the flame, but the more we let today's shoegazers' voices be heard, the further we are from the destination.

Sure, all genres can succeed. But let's not confuse the marginal with the mainstream. And there's nothing wrong with being mainstream, if that means more than your family, your friends and your college buddies like you. You can get plenty far without compromising. As long as you're good.

Sure, you can post your wannabe music on the aforementioned MySpace, but we're going to ignore it. The same way we ignore your second grade diorama, or your high school talent show.

Chaos will fade, solidification will emerge. A new breed of acts not beholden to the old business mind-set who can play, who have something to say, will dominate. It's coming. Not as soon as we want it to, but it's coming.

COPYRIGHTS & WRONGS...A Guide to protecting your music....6

Image via Wikipedia

The legal duration of a copyright has changed over the past century. Calculations for copyrights registered before 1978 are confusing, so I'll focus on the present here. Copyrights registered after January 1, 1978, last the life of the composer plus 70 years. The composer can pass a copyuright along to his or her heirs or will it to a third party. Subsequent owners can do the same.

HIRE UP

If you are commissioned to create a musical work or recording, the rules are slightly different. Be sure to have the requirements of the job outlined before you start so thet there are no surprises later. If, say, an advertising agency hires you to write a jingle, the companyt will likely have you sign a work-for-hire agreement stating that it owns the exclusive rights to the work you create. However, some people, such as film producers, may let you keep all or part of your copyright, allowing you to exploit the work later and benefit from the licensing and performance income.

Get the terms in writing while you're negotiating your fees so you can charge accordingly. In the case of a work-for-hire, the copyright duration lasts 120 years from the works creation or 95 years from its publication, whichever ends first.


More tomorrow...the final publication of this series. Thanks for all the great emails.

Empowerring Your Audience

Image by aulia.m via Flickr

Go to a gig and you'll see a plethora of attendees filming the event. Not only taking photos, but literally recording the gig.

Old acts want to employ a no-camera policy. They want to ban the users. Newbies tolerate it. Why not EMBRACE the audience's activity?

Why doesn't every band have a page for audience uploads? Pics AND clips? Allowing the fans themselves to vote on which ones are the best, which ones are worth viewing?

Of course, you host on YouTube and you embed on the artist's page. If Google can sway L.A. to host its e-mail in the cloud, why can't bands utilize the company's free services to their advantage? Flickr is a great resource too!

The point is we've got it all wrong. We're trying to tell the fans what to do, when they should be telling US what to do!

Did you read the story on Twitter in yesterday's "New York Times"? All its good ideas come from outside. Like search, hash tags and referencing people by using the @ symbol. The company decried some of these innovations, they didn't even want messages to be called "tweets". Then they realized they had it wrong, that they should be embracing third party innovation, not stifling it!

People want to share music. Rather than trying to stop this, copyright owners should make it easier. You want to e-mail someone the track? Let the band's site do it for you! And if the person you send the music to clicks a button on the e-mail, saying he actually likes the new cut, you get points, allowing you better seats at the gig or some other swag.

What, do we think we're going to prevent people from swapping music? If you believe this, you must not have any USB keys, which even come in credit card-sized promotional form these days. It's not about stopping trading, but INCREASING trading!

Eventful has got it right. An act should go where its fans want them to.

Fans want more access, not less. Where is fan access to music business executives? Ashton Kutcher and every musician known to man can tweet, but Edgar Bronfman, Jr., Doug Morris and Jimmy Iovine can't? No wonder the business gets such a bad rap. If it's all about relationships, how about doing a spot of work, helping the cause? Believe me, hiding behind Mitch Bainwol will pay no dividends.

Speaking of Twitter, people like to tweet about tracks. Why not create a service easier than Blip, that allows people to hear what others tweet about? I should be able to tweet about a track, and if you want to check it out, all you've got to do is click the link. And I get the URL for the track from one central, easy to use database. Plug the name into a Google-type search engine and you IMMEDIATELY get a bit.ly shortened url for someone to hear the entire thing. This is better than radio promotion. You're getting people truly interested in the music checking it out right away. They're pulling it, you're not pushing it. And pull is where all the money is. It's just like Google AdWords. The people who click WANT TO BUY!

The fans want to hook up at the gig. Can't you make this easier? A special meeting station, with free wi-fi for iPhones. Believe me, you can get a sponsor to cough up the free wi-fi.

We've got it all wrong. We've been FIGHTING the customer instead of EMBRACING HIM! So worried about losing money, being unable to sustain the nineties model, we're closing the door to the future. The more you can get people excited about music, the more you can increase their access, the more money you ultimately make.

Sure, Twitter itself may not yet be profitable, but the tweets are evanescent. Music is not. Get someone hooked on an act, and they'll go see them live, buy merch, buy the music, whether it be the track outright or listening on a paid streaming service.

For over a decade, the technology's been more interesting than the music. Because music has been putting up barriers, refusing to play in the new world. This makes no sense. Instead of telling people how to use the music, let them tell US!

http://www.nytimes.com/2009/10/26/technology/internet/26twitter.html