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Gateway as Content Distributor?

crovira writes "CNet has an article about Gateway testing the waters of the music business and using their retail stores as music outlets." crovira excerpts: "So far, Gateway executives have not specified exact plans that the company will pursue, but they have indicated that it could position itself as a conduit for content from established and new artists. Turner also indicated that Gateway is contemplating bypassing the titans of the music industry if necessary. 'We have retail stores that aren't beholden to the music industry,' Turner said. 'There are a lot of artists out there.'" Makes one wonder if the xxAAs will roll-over and take their tithe or if they'll try to find some anti-competitive legal maneuvering leverage to keep Gateway out? And can Apple be far behind with video services out of their own retail outlets?"

26 of 181 comments (clear)

  1. Now you can... by Zen+Mastuh · · Score: 5, Funny
    1. Listen to music geared toward the Lowest Common Denominator
    2. on a machine geared toward the Lowest Common Denominator.
    Neat.

    --
    "What is the sound of one belly slapping?"
  2. Deathmatch by DCram · · Score: 4, Interesting

    the great thing is Gateway has enough clout to pull this off. And the more holes Gateway puts in the wall the more cracks smaller guys can squeese through.

    --
    If I were only smart enough to accomplish the things I dream about.. Or maybe too dumb to care.
    1. Re:Deathmatch by cscx · · Score: 4, Funny

      Deathmatch? Tell me about it... I'd like to see the look on Hilary Rosen's face when she's locked in a padded room with an angry bull in mating season. Did I say that out loud?

  3. personally by Jacer · · Score: 4, Insightful

    i'd much rather have good pirated music, than crappy legal music..... granted people have different tastes in music, but in all seriousness, some musicians just aren't talented, i guess it's really a moot point being as i have 30 gigs of mp3s....

    --
    --fetch daddy's blue fright wig, i must be handsome when i release my rage
  4. Conspiracy by sketerpot · · Score: 3, Interesting
    Yes this is paranoid, but perhaps the **AA would make a deal with gateway: gateway puts content protecion into their mahines, the **AA lets them be in the content distribution racket.

    Bet then perhaps we'd see a rise in people getting computers from little companies no one has ever heard of.

    1. Re:Conspiracy by s20451 · · Score: 4, Funny

      Not nearly paranoid enough. Consider: Gateway, in conjunction with the RIAA, the Rand Corporation, and the saucer people, under the supervision of the reverse vampires, are forcing artists to give their music away for free in a fiendish plot to eliminate the meal of dinner!

      --
      Toronto-area transit rider? Rate your ride.
  5. Gateway often goes against the big guys by zoombat · · Score: 5, Insightful
    I don't have many feelings (positive or negative) for Gateway's products, but I must say I've been rather impressed with Gateway's rebellion against some big players. They've gone against the DMCA before, and they testified against Microsoft...

    I'm not trying to say that Gateway is some sort of Utopian selfless corporation or anything, but I just have to cheer when I see big-name companies taking on the big bullies.

    1. Re:Gateway often goes against the big guys by Surak · · Score: 3, Interesting

      I'm not trying to say that Gateway is some sort of Utopian selfless corporation or anything, but I just have to cheer when I see big-name companies taking on the big bullies.

      I think this has more to do with the personality of their CEO than anything. Ted Waite is something of a rebel himself. One time a couple of years ago, Intel really pissed him off, so he publically vowed to change Gateway's entire line of PCs to AMD chips. Unfortunately, Gateway is a publically traded company and their stock consequently dropped like a rock the next day, so he had to take it back, and I believe they ended up switching all their PCs to Intel-only chips later on...

      Also, Waite caved in to Microsoft's pressure about the Amigas, so Gateway spun that off. But we can't really fault them for that, after all at that point in history nobody dared to stand up to Microsoft... they wielded too much power, even more than they do today (the DOJ case has [temporarily] partially defanged them.)

  6. Gateway founder's brother started Samson Records by K8Fan · · Score: 4, Interesting

    Ted Waitt's brother Norm started Samson Music back in 1997. They signed a bunch of new artists, but then dropped them, changed their name to Gold Circle Records and signed a bunch of 80's leftovers.

    --
    "How perfectly Goddamn delightful it all is, to be sure" Charles Crumb
  7. Image Change for Gateway by Mr.Sharpy · · Score: 4, Insightful

    This and the news of their plan to use the cow against the RIAA makes it appear to me that they are gravitating toward and image change to set them apart from the other computer makers. This sort of "anti-establishment" plan could be an attempt to get the attention of all those millions of pirateers the RIAA is so afraid of. Grabbing just a portion of that market would be a signifigant win for Gateway with its recent lackluster business.

    It all makes me wonder how long it will be until Gateway sheds it's cowspots in favor of eye patches and parrots. But seriously, I wonder if we will see them installing Kazaa or Morpheus by default before too long.

  8. Re:I wish them luck.... by Erasmus+Darwin · · Score: 4, Interesting
    "Finally they will get sued, meaning a whole lot of hassle to only serve a few users."

    I don't see how they're doing anything that exposes them to a lawsuit. From what I read of the article, they're only distributing music that they can legally distribute. It sounds like they're essentially a more commercialized version of mp3.com's regular service (not to be confused with the lawsuit-ridden BeamIT service).

    I suspect many artists will use this system as a way to promote their work without giving up all of their work. They could create a few freely distributable singles and allow those to help drive album sales. It would be similar in nature to one of the big pro-P2P arguments (exposure to artists/sample before you buy), but it would be done with the full consent of the copyright holder and it wouldn't necessarily result in the entire album being available.

  9. Apple as a Content provider by danielkdwalker · · Score: 5, Interesting

    IIRC, Apple are legally unable to sell music due to a deal with Apple Music (of Beatles fame) way back when. Not sure if this still applies. IANAL

    1. Re:Apple as a Content provider by chill · · Score: 3, Funny

      Apple was supposed to stay out of ALL music-related industry. However, they were big into MIDI and digital audio editing. This led to the famous "sosueme" sound on Apples.

      I think they've aleady fought this particular battle.

      --
      Learning HOW to think is more important than learning WHAT to think.
  10. This is exactly what we need! by swordboy · · Score: 4, Insightful

    Why don't the big companies like McDonalds, Wal Mart, etc, etc realize the potential of developing their own Free music label? This would be GREAT advertising on their part. For example, Wal Mart or whoever could release songs in a digital format for Free. Perhaps they could release a special player that would not allow anyone to "share" the song until a specified date. In this respect, people would have to come into the store for downloading the new releases. I'd do this... and hell, I would definitely buy whatever I could along the way.

    --

    Life is the leading cause of death in America.
  11. Apple is *supposed* to stay out of music biz by BigJimSlade · · Score: 4, Interesting

    Apple Records sued Apple Inc. in 1989 over a secret agreement the two had in 1981. Apple Records allowed Apple Inc. to keep their nifty little apple logo as long as they stayed out of the music industry. This came up again recently with the release of the iPod, although I don't know the outcome of the suit.

  12. Re:I wish them luck.... by SVDave · · Score: 4, Interesting

    But I am thinking gateway will fall flat on thier face with this one.

    When my parents got a computer a few years ago from Gateway, they got their ISP service from Gateway.net . It was truly awful. The folks at Gateway obviously didn't have a clue as to how to run an ISP, but were just trying to jump on the internet bandwagon. Now my father is on Earthlink, and my mother on AOL, and Gateway.net has apparently become part of CompuServe.

    I have a feeling that this is another attempt by Gateway to experiment with the latest trendy thing. They should just stick with what they know.
  13. How The Music Industry Can Keep Gateway Out by SloppyElvis · · Score: 5, Interesting

    The big players in the music industry don't have a monopoly on talent. Just look at the crap-slingers on the Billboard Top 40, and tell me nobody else has this type of "star power", and I won't listen to you anymore, because it would waste my precious time.

    Now Gateway comes along, trying to salvage getting its butt whooped by Dell in the home pc market, thinking it can capitalize on this fact.

    Here's the problem, if you want to make stars (like the music industry most certainly does), than you need to get them exposure. The web isn't bad for distribution, but promotion is tough. The simple reason is there is just too much out there for people to focus in on a group or two and make superstars out of them. In the music business, people are spoon-fed the next big thing; they make a selection from a limited pool of applicants.

    Now, if the music industry tells the radio conglomerates not to air artist so-and-so, you can bet your arse you won't be hearing them. If Bobby and Sally Teen USA don't see your awesome band on MTV, then they could only ever be "a great underground band". To Gateway's dismay, great underground bands don't usually make top dollar like the industry puppets do [save your counter-examples, I speak in the general sense].

    So, the music industry can easily prevent Gateway from impinging on their turf by leveraging their might concerning radio and television against Gateway. Without these conduits of distribution, Gateway's plan is more hype than hope, I'm afraid.

    1. Re:How The Music Industry Can Keep Gateway Out by drinkypoo · · Score: 4, Interesting
      The big players in the music industry don't have a monopoly on talent. Just look at the crap-slingers on the Billboard Top 40, and tell me nobody else has this type of "star power", and I won't listen to you anymore, because it would waste my precious time.

      Or to paraphrase, "If you disagree with me, I will not listen to you, thereby preventing myself from learning anything."

      Big Media music is not about talent. If you believe nothing else I say in this comment, believe that. There are a great number of people who can do what Eminem can do, for example. Let's look at his list of qualifications:

      • Bitter
      • Hostile
      • Doesn't mumble
      • Symmetrical Head
      • Room for the puppeteer's hand in his... you know

      (The latter is important for conventional American standards of attractiveness.

      One of my best friends as a young teen fit all of those qualifications, and he rapped as a kid. While visiting my neighborhood Karaoke bar (which has since closed, more's the pity) I ran into one of my fellow ex-students, who turned out to be able to spit out a pretty good freestyle.

      All of this reminiscence is only to prove a point; EMINEM IS NOT SPECIAL, as a person, except insofar as every human is unique, and therefore precious. Big Media creates these people in their sense as a "superstar", whether it be eminem, britney, or whoever. Some of these pop media icons have shown exceptional talent and wit and risen somewhat above their media masters to become real cultural phenomena in their own right; people like Madonna and Prince, for example. Both are very much in control of their music, and to the extent that any of us can be, their destiny, because they knew how to market themselves, and they have actual talent and staying power.

      Now, you're saying that it comes down to exposure, and that's partly true, but it is truer to say that it comes down to marketing. Talent is not enough to become a superstar, a pop icon, the "king" of anything. You need to be marketed correctly, you need the proper void or the easy creation of one in the soundscape, and you need luck. Big Music doesn't get a "hit" with every artist, they have to fire many salvos of semi-talented hosers at the populace before one takes. Maybe their release comes out on a day when the world is feeling optimistic, maybe it jibes nicely with a current meme... But everything is half chance.

      So what do I have to say about all of this? Gateway can make money selling music using a traditional model, where they do what the record companies tell them, or they can make money selling music from independent labels who will be more open to the idea of selling individual tracks for reasonable prices. We've been waiting for the whole 'custom cd' thing to take off, without costing an arm and a leg and other vital portions of one's anatomy besides. With CD burners getting faster and cheaper all the time, on-demand CD production (whether it's mix and match or entire albums) has become reasonable; Perhaps someone will make it a reality.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  14. Yea, but... by OneFix · · Score: 4, Informative

    To quote the article:

    And can Apple be far behind with video services out of their own retail outlets?

    I think anyone who follows Apple knows about the whole Apple Records thing...

    But, last I checked, Apple Records didn't have a problem with them distributing video content.

    They have already set precedent, because...

    We've got QuickTime and all of those related products...

    And, we've got Apple Distributing Movie Trailers on their web site...

    If they were going to persue Apple on the video front, I'ld figure it would have already been done.

  15. Hardware less profitable by nucal · · Score: 5, Insightful

    I wonder if the "hidden" message here is that Gateway sees PC sales to continue to be weak and they are desperately looking to do something with all of those retail outlets ...

  16. Gateway is NO BETTER.. by Archfeld · · Score: 3, Interesting

    they are the same as the RIAA/MPAA they just don't have the $$ yet to buy the political muscle. Look at their PC agreements. Open the box void the warranty, it MUST be serviced at Gateway.
    I would not buy a computer from them what makes you think I'd buy music from them ? Just because someone is competing with the Music Behemoths does not make them our friend, probably the exact opposite.
    Stand up for yourselves, you are NOT consumers, you are CUSTOMERS, and need to be treated with some respect.

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
    1. Re:Gateway is NO BETTER.. by srvivn21 · · Score: 3, Informative

      You obviously don't own a Gateway.

      I do, and I'm typing on it right now. I had a problem (over a year ago) with the PS/2 ports locking up on boot, which prevented the computer from reliably booting.

      As part of the over-the-phone trouble shooting steps where to remove the cover, and reseat the CPU and memory.

      Personally, I have never had a very high opinion of tech support (as a whole, there are certainly exceptions), but I Gateway's service to be knowledegable and helpful.

      Perhaps Gateway will turn into a draconian drain on creativity, but for the time being they seem to be interested in taking the path less traveled.

  17. Re:new business model by johnjones · · Score: 5, Interesting

    yeah its called streaming

    wake up Video + music will be on a server and you select what you want when you want it

    the tradtional ISP is gone as soon as the Mobile networks have enough bandwidth to do Video

    that way if you have a TV/STB then you put in SIM chip and recive what you want paying for rentels via sim(what we think of as the phone)

    and if you want music plug in you earjacks into phone and away you go

    I have not seen a single new phone (based on OMAP) that cant do streaming MP3

    its only a matter of time until the networks (mobile) work out this revenue generator and kick the cable co/baby bel/incumbant ARSE

    muh hahaha

    regards

    john jones

  18. Bad Idea, but positive consequences by Essron · · Score: 4, Insightful
    This strategy is clearly doomed. First, we have the fact that Gateway has NO knowledge of the entertainment industry or media distribution, and arguably little knowledge about making decent hardware.

    Second, we have FuckedCompany. With all the casualties in the online music space, Gateway better have one hell of a secret weapon. Great customer service and brick-and-mortar stores full of low-tech heads-of-households looking to invest in a computer will not help them sell records.

    Gateway is a crumbling company. A look at recent news shows that they are clearly in a state of panic. Last I remember reading was that they were closing European operations and trying to get into IT consulting. I repeat: state of panic.

    In the wisest of possible strategies, this music ploy is just a publicity stunt to earn credibility with "all those crazy kids." In their more probable strategy, it is simply bad management making a poor investment outside of their core competencies.

    On a positive note, any money they throw at this project will be applied to a full frontal attack of the entertainment media establishment (xxAA's), which in a moral sense may be an ideal use of funds. In an economic sense, it is a waste of precious resources.

  19. Gateway, Inc. : On-Demand Publisher by Anonymous Coward · · Score: 3, Interesting
    This could be the first working example of a much-touted, but heretofore unimplemented business plan: an on-demand publisher.

    Let's say a customer lives near a Gateway Country Store, and doesn't have broadband Internet access. Said customer could use MP3.com to mix-and-match an album, then pick an option to have it burned to CD at the Gateway store. Assuming that each Gateway store has a pipe with halfway-decent bandwidth, and assuming that some of their demo models have CD burners, the disk can be waiting for the customer by the time they drive to the store.

    If Gateway allows users to surf to the site from the stores' demo machines, then Gateway can even generate impulse-driven sales. The "netCDs" at MP3.com are $4-6 each, Gateway would buy blank CD-R in bulk (less than $1 per), toss in one dollar for bandwidth/employees/profits, and Gateway can charge $6-8 per CD, undercutting MP3.com (because there's no shipping) and RIAA (because their not evil, price-gouging control freaks).

    What do you think?

  20. Say WHAT? This is Big Media vs The Internet again by Ungrounded+Lightning · · Score: 4, Interesting

    Here's the problem, if you want to make stars (like the music industry most certainly does), than you need to get them exposure. The web isn't bad for distribution, but promotion is tough.

    Now, if the music industry tells the radio conglomerates not to air artist so-and-so, you can bet your arse you won't be hearing them. If Bobby and Sally Teen USA don't see your awesome band on MTV, then they could only ever be "a great underground band".


    That's the way it WAS.

    But we're on the Internet now.

    The Mainstream Media is getting CREAMED by the Internet, in one venue after another: news, content, and and exposure to name just three.

    To paraphraise the way my wife puts it:

    "Word of Mouth" takes on a whole new meaning when you can get on your computer and recommend an artist you like to "a couple million of your closest friends".

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way