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Aerosmith has sold more than 150 million albums (66m + in the U.S.) over four decades of Rock but they haven’t released a new one since 2001.  In today’s music world, that may not matter much when it comes time to receive royalty checks.   Guitar Hero: Aerosmith, the first single-band specific version of Activision’s bestselling video game, released Sunday.  If it does well, the band stands to draw a sizable income without having to hit the studio anew.

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It takes money to make money sometimes.  Will $50 million be enough to steal some cash and market share from Apple’s dominant iTunes digital content store?  That is a question digital music service Rhapsody is hoping to answer.

Under a new strategy revealed Monday, Rhapsody will begin selling a la carte, single-song MP3 downloads without restriction.   All of the music will be offered at a variable bit rate of 256kb and it will have no digital rights management encryption (DRM).  Accordingly, it will be playable on any device, including iPods and iPhones. 

Music bought over an internet connection will be priced at 99cents a song, or $9.99 an album.  Music bought through a Verizon mobile phone via vCast will cost $1.99. The higher mobile premium will include one direct download and a second “master copy” sent to a home computer.

The changes break from what had long been Rhapsody’s approach to music sales. Click to Read More

iTunes has long been looked at as the loss leader, the bridge that links Apple’s assorted media products. It drives product sales and helps power iPods, iPhones, Apple TV and Mac multimedia.  But that role of servitude hasn’t stopped it from turning into a significant force. 

Apple announced today, the iTunes store crossed the 5 billion song barrier.  That’s 5 billion songs sold, up a billion from the 4billion announced in January.   

At 99cents a song, that means the store has generated nearly $5billion in music revenue. That’s $3.5billion to artists and labels and $1.5billion to Apple (based on widely estimated revenue sharing splits).  That’s not too shabby for an auxiliary program that helps promote hardware sales.

As this graphic shows, the escalation in pace at which songs are selling isn’t bad either:

Even more impressive, however, might be the story surrounding video sales.  Click to Read More

One of the first things that happens when a product like the iPhone 3G hits the market is someone breaks it.  For curiosity, for insight, to see what’s inside, or simply because they can – someone will crack it open and chronicle all the bits and pieces; who made what and where did they do it.

It won’t be until July 11th that such an official breakdown can happen (and it’ll probably be a couple days after before such a story is published) but that delivery day isn’t stopping insiders from “leaking” news about who won the the iPhone part-age lottery nor is it stopping the press from speculating.

As of Thursday, the Commercial Times, a Chinese language newspaper is claiming they’ve got the scoop on what’s in iPhone 3g.  Per their reports, and translations from Digitimes, the following companies will be inside come July 11: Click to Read More

Usually when a company makes a positive announcement about their product pipeline, it is with a glitzy PR campaign, or at the least, a press release.  Bucking tradition, Activision went the modest route this week and (intentionally or inadvertently) slipped news into an SEC filing.

According to the regulatory document, one of the next titles planned for their popular and lucrative Guitar Hero franchise will be built around heavy metal rockers, Metallica.

The Metallica Hero edition will be the 2nd installment built around the career and songbook of a single band.  Earlier this year the company revealed Guitar Hero: Aerosmith as the first version. That game is due in stores later this month.

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While Kleiner Perkins is out raising a 13th fund, two gaming companies and one music discovery engine closed out April with fresh rounds of funding.

TURBINE:  Leading the April rounds was game publisher Turbine.  The Westwood, Massachusetts based game developer closed on a massive Series C to fuel their Massively Multi-Player Online Role Playing Games (MMORPGs) business.  According to regulatory filings, the company took an installment of $25million out of a possible $40m in the round. Granite Global Ventures led the financing and took a seat on the board to represent the Series C stockholders.  Prior investors Highland Capital, Polaris, Tudor Ventures and Columbia Capital all participated as well.

Turbine, which was founded more than a decade ago, Click to Read More

Apple and CFO Peter Oppenheimer have a history of being conservative with their guidance.  Listen to a conference call, or read a transcript and you’ll hear repeated remarks about forecasts the company can “confidently meet.”  It’s like a lawyer that won’t ask a question in court without first knowing the answer; similarly Apple seems incapable of making a projection without being sure it will come true.

The history tracks back quarter after quarter.  In summer 2007, when Apple issued third quarter guidance, they forecast dramatically decreased margins and profits as a consequence of a then ambiguous product launch.  It was going to be costly, they said.  Earnings as a result, they told analysts, could be as low as 65cents a share; well below the trend line.  When the actual numbers came in Apple reported  $1.01/share. Last quarter, the first of their fiscal 2008 was more of the same.  Conservative guidance from Q4 ’07 was trumped with record results but then the next round of forward guidance was received like a doomsday projection.

By now one would think the markets would be used to it.  It’s an obvious enough pattern: first Apple gives conservative guidance about future earnings.  The economy, a product shift, a parts shortage…something, warrants more caution.  Next, the numbers come: conservative projections are blown away by stellar earnings that probably shouldn’t have been a surprise.  Then, lest expectations get too lofty, the upside of the stellar earnings is tempered with another round of conservative guidance.  It’s the Apple M.O., the “Oppenheimer effect”:  Apple’s way of under promising, over delivering then under promising again.

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