Physical Media
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UK's online music royalties generate more cash than radio for the first time
The UK's Performing Right Society has announced that the cash generated from online music licensing has surpassed that of radio for the first time. The society's 2012 report reveals that digital royalties brought in £51 million ($76.7 million) from stores, ringtones and subscription services, compared to the £47 million ($70.6 million) generated by folks listening to the wireless. The rest of the motherland's music industry, however, has less to celebrate, thanks to big drops in physical media sales, people shunning pubs and clubs as well as big falls in live music events. You know, it's almost as if it won't be long before you'll only be able to buy music online.
Lovefilm now streams more content than it mails
Lovefilm has announced that for the first time, more content was viewed via its instant service than its DVD, Blu-Ray and Games rental divisions combined. The Amazon-owned company surpassed two million members in January, making it the biggest of its kind in Europe. In just 12 months, internet-viewers have increased by a whopping 400 percent, but let's not take that as a sign of the death of physical media just yet. Whilst the company itself sees its future in the streaming realm, the postal-arm of the business also grew by 25 percent in the same period.
Digital music finally outsells physical media, books look on in alarm
That sharp sucking of air you heard at the end of 2010, well, that was the record industry wincing as sales of CDs continued to tumble while digital media sales remained flat. The relieved exhale that you just heard echoing through the atmosphere? That was the collective sigh of executives who just picked up the latest Nielsen report indicating that digital music sales are on the rise again and, for the first time ever, have finally surpassed physical media. Sales as a whole were up, but while CDs were down 5.7 percent, digital track sales were up 8.4 percent and digital albums a stunning 19.5 percent (perhaps most interestingly, though, vinyl was up over 36 percent). CDs still outsell virtual albums by a factor of two, but it's clear the trend toward binary media is back on track. It may be a narrow victory but, with 50.3 percent of the market, audio files are new king of the hill. Check out the full report at the source.
Lego CD / DVD ripper lets you drop your physical media -- literally (video)
If the only thing standing between you and a full abandonment of physical media is the tedious task of ripping all of your CDs and DVDs, boy have we got the Lego-based gadget for you. Paul Rea whipped up this little beauty -- it's an Arduino-powered Lego arm that swings to pick up a disc, deposit it in the drive and then drop it (perhaps a bit too literally) into a finished pile. It's not quite perfect -- the arm is a bit loud as it moves, and anyone who's ever owned CDs or DVDs may likely grimace as the thing tosses finished discs into a pile, but it's an entertaining break from what can ultimately prove an arduous task.
World of Tanks rumbles into retail stores
It's official: You can now purchase World of Tanks in a retail store near you. Wargaming.net has shipped boxes of its free-to-play World War II heavy armor MMO to stores, including GameStop, Wal-Mart, Fry's, and others, and the retail package comes loaded with $30 worth of in-game items. Players will receive a T2 light tank, one week's worth of premium account access, 1,050,000 credits, and 1,800 gold -- all for $19.99. If you can't make it out to your local games dealer, you'll find the World of Tanks retail box for sale at many online stores as well, including Best Buy.com, New Egg, and Amazon.
Apple's OS X Lion USB sticks now available online, for $69
After more than a week's worth of rumors and speculation, Apple has finally released its OS X Lion USB thumb drive, available now at its online store. This little stick offers a physical media alternative to Cupertino's otherwise App Store-centric distribution model, providing access to OS X Lion for $69. One caveat, however, is that users who download the software via thumb drive won't be able to re-install it using the recently released Lion Recovery Disk Assistant, but will have to rely upon the USB stick, instead. The other caveat, of course, is price, as just $29 will get you the exact same OS, via the App Store. To grab one for yourself, hit up the source link, below.
CD-shaped mouse is perfect for our physical media-free future
Unless you've got a penchant for going the ultralight route, chances are you've got a DVD or other optical drive in your laptop that you rarely, if ever, actually stick a disk in it. This concept, dubbed disk+Mouse plans to put that space to good use holding a pointer that stores flat, but pops up in a conical shape when needed. Of course, by this time next year we'll all probably be looking at physical media the same way we did floppies in the post iMac world and this will be nothing but a cutesy throwback with no place to go -- just like those cassette-shaped USB drives.
Riccitiello: Digital downloads won't kill physical media just yet
EA CEO John Riccitiello said recently that 2011 would see digital sales overtaking retail sales, but before you start trashing all of those $60 discs and plastic cases you bought, not so fast. Riccitiello also says that game discs aren't going away "any time soon." Sometimes it's just easier to plug in a disc or buy a box than receive a huge download over a relatively slow connection, he says, and what the industry will end up doing is choosing certain cases out of all of the options for various uses. "I think it'd pretty silly for us to stream Scrabble to you," he says. "Why would you want to pay for bandwidth for us to redraw a Scrabble board sixty times a second? That's just sort of bad math, if nothing else." Not to mention that "the disc can actually be a great starting point for a digital business, like an MMO, World of Warcraft, for instance." While digital and streaming services will almost certainly see growth this year, it's far too early for game makers and retailers alike to completely abandon physical media. The consumer, says Riccitiello, "doesn't care what the technology is, what lives behind the veiled curtain; they just want it to work." Amen.
Netflix formally launches $7.99 streaming-only plan, bumps unlimited DVD plans by a buck or more
Well you had to know it was coming: the streaming-only plan Netflix unofficially rolled out last month is now being officially deployed. Thankfully the company opted to go with the lower of the two prices it was toying with, $7.99, which pits it squarely against Hulu Plus. However, the prices for all unlimited plans that include DVDs have jumped by at least one dollar, meaning you'll now be paying $9.99 for a one DVD at a time plan (though the $4.99, two DVDs a month offer will still give you a penny back from your Lincoln). So, it's a cheaper option for trailblazers who have abandoned physical media and a dark day for everyone else.
The Daily Grind: Want a box with that?
With the proliferation of digital-download gaming going on these days, it's getting progressively harder for those of us that care about box copies, collectors editions, cheesy cloth maps, and cheaply produced pewter figurines to get our fix. It's obvious why developers and publishers love digital delivery, as it saves them a lot of distribution money, but does it really benefit the consumer aside from scratching our instant gratification itch? As I look over at the MMO box museum cluttering the shelves of my game room, I take no small amount of comfort in the fact that I got something tangible for my fifty bucks, even though in most cases the games themselves were incapable of sustaining my interest past the free month. In fact, I've only purchased a digital download twice: Fallen Earth (and I later obtained a box just because) and Darkfall (still hunting for a box). Subscription-based MMOs are inherently more about renting than owning but -- for now at least -- you can still get a physical copy of your favorite virtual world and, if you're lucky, an outdated manual and a map. Today we ask you, dear readers, do you want a box, or are you OK with leaving your games on a remote server? Every morning, the Massively bloggers probe the minds of their readers with deep, thought-provoking questions about that most serious of topics: massively online gaming. We crave your opinions, so grab your caffeinated beverage of choice and chime in on today's Daily Grind!
Physical and digital distribution sales for games nearly equal, GameStop CEO thinks people like boxes
There are two ways to look at physical media. Some see it as needless clutter; useless relics taking up shelf space and collecting the airborne remnants of your dearly departed skin cells. Others, however, see rows and rows of boxes and books with a sense of pride -- proof that they have incredibly good taste when it comes to spending free time. According to the NPD, those two parties are rapidly becoming equal when it comes to gaming, with 21.3 million "full-game" PC titles downloaded (legally) in 2009 and 23.5 million boxed copies sold. That's awfully close, and ignores all the PSN and XBLA titles that are currently making our console hard drives cry for mercy. Should brick and mortar software stores be nervous? Not according to GameStop CEO J. Paul Raines, whose franchises are decidedly ceramic and paste-based: "The world won't be all digital tomorrow... In this business, users still want physical content." And he's right, you know. We'd say it'll be more like 18 - 24 months.
Futuresource predicts physical media market will remain flat until 2012
As we've seen, Blu-ray does seem to be growing its slice of the packaged media pie, but research firm Futuresource doesn't expect that pie to grow. Instead, Futuresource predicts that growth in the home entertainment arena will come on the backs of, you guessed it -- mobile and online distribution -- while increased Blu-ray revenue will just offset DVD's fade. The usual suspects of Blu-ray's marginal quality benefits and pricing disparity are offered up as reasons that Blu-ray won't increase packaged media consumption overall, but we think there might be something else to the chart. The slow overall growth of media consumption shows we're becoming saturated by existing content delivery (physical discs, online, mobile, VOD, DVRs); or we're seeing the death throes of physical media and the slow initial growth of its successor(s) -- what's your take?
Netflix sees subscribers opting for streaming over mailing, global surplus in red envelopes predicted
We already covered the numbers from Netflix's impressive earnings call this past Monday, but there was another story lurking in there too; a potential sign of the coming apocalypse for physical media. The company is reporting that many of its customers are replacing mailed movies with streamed ones, taxing the USPS less and their broadband connections more. CEO Reed Hastings is playing coy about whether this is a strong trend or just the curious behavior of early adopters, and since his company gets paid either way he probably doesn't care, but you can be sure those still firmly attached to profits from plastic discs are going to be watching this pattern rather closely. (As if Sony needed any more bad news.)
Atari president confident about physical media's decline
While high ranking executives from high ranking companies have bickered back and forth about the longevity of Blu-ray as a format, Atari president Phil Harrison has some pretty strong feelings on physical media as a whole. In an interview with Edge, the bigwig stated that "there's a generation of kids being born today and probably already alive who I'm pretty confident will never buy a physical media product; they will never buy a DVD, they will never buy a CD, and they will never buy a game in a box." While some may jump on this as being patently absurd, we're not so sure it's a crazy as it at first sounds. Video games in particular have been distributed via the 'net for some time now (Steam, anyone?), and it's no secret that programming and movies are headed in that direction. There's no way to accurately predict how many more generations will be buying wares in boxes, but it's safe to say we're a lot closer than most people expected us to be just a decade ago.[Via G4TV]
A big bag of Blu-Ray hurt for Apple
Just the other day I was wondering on this very site just where Blu-Ray has been on Macs, and yesterday's big Apple event gave us the answer: Blu-Ray, according to Steve Jobs, is just "a big bag of hurt." Apple says they haven't settled on an HD format yet because no one else has either: "the licensing of the tech is so complex, we're waiting until things settle down and Blu-Ray takes off in the marketplace," said Jobs. He might as well have added an "if it does" on the end of there -- Sony, spurned by the Betamax loss, wants to make sure they get credit when Blu-ray gets popular, and for that very reason it may never be.In fact, if Apple has their way, there may not be a physical media of choice for high-definition content -- Phil Schiller pointed out that iTunes has plenty of HD TV and movie options without ever tying Apple down to licensing a specific format.Which is exactly everything we said last week. And I'm drinking the kool-aid, actually -- a while back, I was one who would have said that people need their physical media, but nowadays, I'm not so sure. I haven't bought a DVD, HD or otherwise, in months and months, and yet I've purchased and seen plenty of HD content in iTunes and over my Xbox and cable connection. Blu-Ray may have won the HD disc format wars and claimed the country, but maybe there's nobody living there any more.
Downloads haven't arrived at a theater near you yet
Hey, don't say we didn't tell you so, but according to The Diffusion Group, the great masses aren't ready to get their full-length movie content via download just yet. Here's the blow-by-blow findings from the study: more than half polled didn't even know movie downloads exist; more than a third know about but have never tried them; and less than 10-percent regularly download movies. And what, pray tell, is the biggest feature consumers are looking for? A little something called "quality of content," a.k.a. "more titles, please." Shocker, right? Don't get us wrong, we're all for downloadable content. But beyond the chicken-and-egg problem of getting studio support to attract more customers to get studio support, there are other outstanding issues as well. Until bandwidth is a non-issue and crazy DRM restrictions are gone, physical media makes good sense to consumers and businesses alike. Of course, if you've made the switch to all direct download movies, let us know about it below!
