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MP3 Winners and Losers for 2003

An anonymous reader writes "Richard Menta over at MP3newswire.net just posted his annual winners and losers list in digital music for last year. The big winner is Apple for dominating MP3 portable player sales and the dramatic success of its iTunes service. Napster savior Roxio and the small independent record labels also made the winners list. The losers list include SonicBlue and MP3.com. Interestingly, Ogg Vorbis made the losers list, not because of the codec per se, but because iTunes has both catapulted the AAC format to number two and stimulated Microsoft to pour more of its efforts ($$$) into WMA and the iTunes clones, leaving little room left for the open source alternative. The 2001 and 2002 winners list are worth a look too and each have links to that year's losers list."

30 of 408 comments (clear)

  1. True to a point... by tempest303 · · Score: 5, Insightful

    One thing to keep in mind, though, is that one of the original arguments against Vorbis adoption was "But all the MP3 hardware out there uses a dedicated MP3 decoder chip, so they can't just 'upgrade the firmware' to support Vorbis", along with countless other arguments that deal with the fact that in any given project, 1 codec is easier to deal with than many.

    Well, because we now have MP3, AAC, and WMA, all becoming popular, that means that instead of hardcoded support for 1 format, any company that's serious about making music software or hardware is probably going to want to support a plugin style architecture, which means that supporting a 4th, 5th, 6th, etc, format becomes much easier, so things like FLAC and Vorbis have one more barrier to entry removed from their paths.

    1. Re:True to a point... by Lshmael · · Score: 5, Insightful

      Yes, but if no online music stores are using Ogg Vorbis, it is unlikely that consumer demand will increase. As a result, most of the music player companies will not have the impetus to make a Vorbis plugin, hindering it in the "Codec Wars."

    2. Re:True to a point... by hackstraw · · Score: 4, Insightful

      if no online music stores are using Ogg Vorbis...

      This has nothing to do with the popularity of mp3. mp3, like everything else, is more popular simply because it is more popular. It came out 1st, has hardware decoders, and people know what you mean when you say mp3 (a free/cheap music format for my computer, hardware player, etc). People just dont know or care if ogg is better. Also, mp3's were around for _years_ before there were online stores for them.

    3. Re:True to a point... by AstroDrabb · · Score: 5, Insightful

      Exactly. That is why there are many players that support OGG Vorbis now. Neuros, Rio, IRiver and a buch of others. I personally do not want to be locked into a proprietary format like wma or Apple's AAC. And I would never buy an iPod that limitis what I can do with music I buy. I personally don't understand the Apple Fan Boy mentality. On one hand they cheer Open Source and screem how Apple is now BSD on the inside. Though they over look all of the proprietary Apple formats that are attempts to lock comsumers into Apple. Quicktime, Apple's AAC, their restrictive iPod and iTunes, and just about every product they put out. I personally am sick of companies trying to control what I can do with a product I purchase to further their profits. I will stick to buying a CD and legally ripping it to OGG and playing it on a portable player like the Neuros that supports it. Read this quickly, because soon Apple Fan Boys will be along and wet their pants and mod this as a troll.

      --
      If Tyranny and Oppression come to this land,
      it will be in the guise of fighting a foreign enemy. -James Madison
    4. Re:True to a point... by Sloppy · · Score: 4, Interesting
      Yes, but if no online music stores are using Ogg Vorbis..
      Most (a vast majority of) music sales are CD audio (*). Then the user uses whatever the heck codec he wants to, to compress it. Demand is for whatever people want to use, not for the formats that the music is sold in.

      Any particular codec could be 0% of sales and still have high demand for players. Remember: a few years ago, no music was sold in MP3 format (and even today, very little is sold in that format), but there was (and still is) a huge demand for MP3 players.

      Whatever codec that most people use to encode CDs, is the "must have" format for players. Right now, that is MP3. Some day, it could be Vorbis (though I don't see a trend in that direction). But one thing's for sure: it will never, ever be DRM-wrapped AAC or WMA. Those are guaranteed dead ends.

      (*) IMHO, this is likely to remain the case for a very long time. It requires an above-average amount of foolish short-sightedness for a person to be willing to buy in a lossy format, unless the precision is extremely high (making the files nearly as large as using lossless compressors). It has to be possible to transcode to tomorrow's formats w/out adding significant artifacts, otherwise the format is "unsafe" in the future-proofing sense. Thus, the only serious competition that CDs face, is from codecs like FLAC.

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    5. Re:True to a point... by AstroDrabb · · Score: 4, Insightful
      Perhaps 1,000 people have significantly large enough Vorbis music collections to warrant an Ogg compatible player.
      Do you have the link to where you got those stats? I guess all these device makers supported OGG for only 1,000 people. How many portable devices support Apple's DRM'ed AAC format again? Just incase I am not happy with an iPod, it is good to know I have choice in the market place. We all know how much Apple supports consumer choice.
      The openess of free software
      Yes because Sorensen is so open, Apple's DRM'ed AAC is so open or OS X is so open...
      with the polish of proprietary excellence.
      Do you work for Apple? That is the biggest piece of marketing BS I have ever heard. Proprietary != excellence. As a developer I have worked with and deployed tons of proprietary software, some costing in excess of 25 Million that were not "polished proprietary excellence". IMO, OS X is not "polished proprietary excellence" either.
      --
      If Tyranny and Oppression come to this land,
      it will be in the guise of fighting a foreign enemy. -James Madison
    6. Re:True to a point... by stuartkahler · · Score: 4, Insightful

      You seem to have a definition of 'lossy' that is heavily biased against digital formats, and uninformed. Any analog copy loses signal quality from the original sampling. Film doesn't count individual photons, and audio recordings always drop fidelity above a certain frequency. I've yet to see someone make an atom by atom copy of film, audio tape, or grooved record, thus losing information present in the original. Anyone who has ever been to an unamplified concert knows that there is no recording that will sound as good as hearing the instruments live. No photo will ever capture the color and detail of seeing the object live (extreme examples of optical manipulation notwithstanding). Any time there is a conversion, there will be loss.

      The term 'lossy', in regard to information storage, refers to any format that intentionally discards existing data in a particular manner in order to fit into the medium more easily. Non-lossy digital formats would include tiff (I think), rle and bmp (both picture formats), or shn and wav (audio formats). You can convert between non-lossy formats, and get back identical data each time. Just because something is digital doesn't mean it's 'lossy'. Jpg, mpg and mp3 are all lossy because the codecs intentionally fudge data in order to make it fit into a smaller data file. When they're doing a good job, you lose less information than you would when making an analog copy. CDs aren't 'lossy'. They simply have a dynamic range and sampling rate that is narrower than the best analog recording mediums. In the analog world, you can do a lot worse than CD audio.

      By your argument, VHS or Betamax would be a better quality than the digital projector systems that George Lucas and others are trying to get theaters to adopt. Or that a 6 megapixel camera is worse image quality than an SLR with bargain basement film and crappy lens.

  2. big losers by Savatte · · Score: 5, Funny

    In my opinion, anyone who downloaded Creed was a loser, not just for this year.

  3. NAPSTER? by larry+bagina · · Score: 5, Insightful
    I don't know how they can be considered a winner. Quite frankly, the only think they have going for them is their logo. Everybody and his uncle is setting up a store to sell WMA downloads, and Steve Jobs has stated that profits are almost non-existant.

    --
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  4. Not surprising that OGG was turn down. by Krapangor · · Score: 5, Insightful
    DRM is coming.
    Yes, we'll all start to whine and complain but there is no way to stop it.
    Without DRM to whole business chain of the entertainment industry is fucked. So they'll enforce it.

    With this background fact, you won't wonder that OGG was turned down. The encryption shemes will make sure that the song only play on certificated players. However a player which supports formats which can be used to illegal copies will never get such a certification. So the manufacturers will avoid these formats at all cost.

    When you watch this development the original movitivation of the OGG development team seems to very naive and economically clueless. While there might be some niche applications for OGG, it will be useless for the downtrodden masses. Basically the development of OGG has merely an academic value.

    --
    Owner of a Mensa membership card.
    1. Re:Not surprising that OGG was turn down. by harlows_monkeys · · Score: 4, Funny
      DRM is coming

      DRM can be used with Ogg. Oops. There goes your whole argument.

    2. Re:Not surprising that OGG was turn down. by dotwaffle · · Score: 5, Interesting

      OGG is not an academic project. It really is very efficient and very nice sounding, far better than WMA or MP3. I admit, I have not tried AAC. And DRM may be coming, but it sure as hell isn't going to stay. Look at Region Coding... It's being phased out as people realise that it is in fact a way for companies to weasle money out of people when they could in fact buy the same product, from the same manufacturer and artist, several months earlier in the case of the UK, and at a lesser cost. Needless to say, DRM will be a bad idea, as it restricts not only where the user may use the data, but when, and also from which agent they purchase it - they will HAVE to get an authorised version from the publisher of the music, and have to get permission to copy it to a CD, or their iPOD or the tape for their antiquated car stereo (yeah, I still have a tape deck). I will go out of my way to buy a higher quality CD rather than a rubbish quality MP3 off the internet. 128Kbps MP3's really are awful if you have spent more than a fiver on your speakers. 192Kbps OGG (equiv to at least 256Kbit MP3, or maybe more) preserves almost everything, and until companies get real and start providing lossless music downloads, I'm sticking to buying CD's. Sure, I may still download music, but as I think the radio is awful quality, and the adverts are sheer annoying waffle, I feel good knowing that by downloading (I admit, pirating) these tracks, I am exposing myself to their music, and consequently may purchase more.

      Take four star mary, I got interested in them back in 2000. I listened to one of their tracks that came on a compilation album. I liked it, so I downloaded a track or two more. Still, I liked it, but wasn't happy with the quality. Knowing they are a small time band, I went out and bought an album. I now own both the albums, and some merchandise, and have seen them live. I'm sure this rings true with other too. Downloading one or two tracks doesn't harm the artist or the industry, downloading an entire album when you like their music and could have afforded buying the CD DOES. It's down to the guilt of the involved party on whether they should contribute or not.

      It's all about what people deserve, and if the recording (and indeed, movie) industry want to force us to pay through the nose for it all, they're going to have egg all over their collective faces when users start looking for alternatives. iMusic only works because it's cheaper than buying CD's, and doesn't force you to commit to one format - Microsofts way would more than likely commit to WMA.

      To go back to my original point, with the right word of mouth techniques, OGG could go far. Really far, especially as it can't be stifled like WMA. You know what I mean, and you know it makes sense. It's not bad business, it's good business. Trust your customer, and they're more likely to make a return visit!

  5. Re:MP3.com.co by squiggleslash · · Score: 4, Informative
    It was bought by CNet. There was a minor bit of excitement as Michael Robertson, MP3.com's founder and current big-cheese at Lindows.com, noted CNet's plans were to close the entire thing down and maybe start something afresh using the domain name (essentially, they bought the domain name for a godawful amount of cash) and felt they should at least pass on MP3.com's music archive to someone else to store.

    MP3.com declined, as far as we're aware the music archive that was at that site is now dead, and so is the site itself.

    There's a bit about it here if you're interested.

    --
    You are not alone. This is not normal. None of this is normal.
  6. A Missing Loser? by illuminata · · Score: 4, Insightful

    How come there was no mention of Emusic on the loser list? They switched to a much more restrictive user agreement and had a mass exodus of their subscribers.

    --


    Until Slashdot fixes the funny modifier, use insightful or interesting. The poster knows your intentions.
  7. Sorry - YOU have lost. by 2nd+Post! · · Score: 4, Insightful

    For choosing WMA, for endorsing WMV.

    Why?

    Because Microsoft isn't a team player. There is no real technical benefit to WMA or WMV: All the 'next gen' codecs are better (ogg, wma, aac) than mp3, so the only real advantage to WMA is secondary.

    Do you trust Microsoft? I don't. By using WMA, you give them more power and more clout, and like any big organization with the power to dictate international and national standards... I don't trust them. Unless of course you *like* paying taxes. Instead of money, though, Microsoft collects in marketshare and power.

    Anyway, I hope you like living in a Microsoft future... I'm trying to avoid that, myself.

  8. mp3.com by nnnneedles · · Score: 5, Interesting

    I once visited mp3.com when they we're still going strong. They had something like 400 employees and very luxurious buildings with graffitti on the walls and everything.

    They were having a talent show there, and I expected to see some of the thousand of bands they had signed up performing. Unfortunately, it was the employees themselves who were the talent. With the bosses performing their own poems and so on.

    I feel sorry for the guys working there, as you could smell the money being burnt everywhere you went, and they probably had no idea they were already dead.

    This was almost 3 years ago, and back then they had already been working for six months on the next generation music-selling tech that they are currently advertising on their site.

    The point to all this is: Don't employ 400 people unless you are generating huge amounts of cash.

    --
    Will code a sig generator for food
  9. Don't feed the trolls! by JoeLinux · · Score: 4, Funny

    Great, just when we get the trolls content here, ANOTHER website stirs them up.

    Ok, just so it's put down, please select your Ogg/Vorbis argument from the following menu:

    1) Ogg/Vorbis is supported by (obscure mp3 player). Why should I get that (*drool*) new, affordable iPod?
    2) Ogg/Vorbis can work in a DRM-based business model! Here is how: Step 1: Get five candles and a live goat.
    3) Ogg/Vorbis is the best. Me and my four friends will not buy anything that won't support that. I'm sure Apple will be shaking in their boots from this ultimatum delivered from my parent's basement.
    4) Hey! Why don't I just convert the mp3 collection to Ogg/Vorbis?
    (Followed by: "Idiot: those are both lossy mediums."

    Ok, I'm done.

    Joe

    In God we trust. Everyone else keep your hands where I can see 'em.

    1. Re:Don't feed the trolls! by AstroDrabb · · Score: 4, Informative
      1) Ogg/Vorbis is supported by (obscure mp3 player). Why should I get that (*drool*) new, affordable iPod?
      Yeah, your comment makes sense if you consider, all of these "obsure"

      Neuros Digital Audio Computer
      Rio Karma
      iRiver iHP-100, iHP-115, iHP-120, iGP-100, iFP-3xxt, iFP-5xxt
      Kenwood's Music Keg
      And a bunch of others.
      IMO, the Neuros is much better then the iPod. Is cheaper and the battery replacement is from $0 - $12 depending on if it is in warranty or not, which is much cheaper then Apple's $50 or so.
      2) Ogg/Vorbis can work in a DRM-based business model! Here is how: Step 1: Get five candles and a live goat.
      Umm, Ogg/Vorbis is an Open Source codec released under a BSD style license. You can wrap it in any proprietary DRM you want and save tons of money from not having to a) write your own codec or b) pay royalties to use someone elses.
      --
      If Tyranny and Oppression come to this land,
      it will be in the guise of fighting a foreign enemy. -James Madison
  10. Re:ITMS is the true winner by fastidious+edward · · Score: 5, Insightful

    From the article:

    The big winner is Apple for dominating MP3 portable player sales and the dramatic success of its iTunes service.

    The dramatic success is Apple using its iTunes service to promote its iPod. iTunes has made a miniscule amount, purely a leader for the iPod. The iPod was here before iTunes, iTunes was envisaged as a way to make iPods more successful. iTunes was as much as a breakthrough on the music distribution scene as MP3 players were on the musical device scene were, but iPod deserves the praise, if iTunes weren't here another would have filled the gap, iPod and other MP3 players created the inertia and it is them that should get the praise.

    --

    karma karma karma karma karma chameleon, you come and go, you come and go.
  11. disagree by real_smiff · · Score: 4, Informative

    MP3 was won.. long before WMA appeared. It offers transparency on all but a few special samples at around 200kbps, and with storage getting cheaper, slightly more efficient codecs (Ogg Vorbis, for example) don't offer enough of an advantage for most people to move. I won't touch WMA with a long barge pole.. just because you made the (mistake IMHO) of going over completely to it, doesn't mean anyone else has to. Go read some very informative discussion at Hydrogenaudio.org for specific technical reasons not to use WMA.. other than being from Microsoft etc. Of course, there is a danger that many people will use WMA just because MS make it easy for them to get into it... but why that's a reason to advocate WMA, i can't imagine. It's unlikely MP3 support will be dropped in hardware any time soon I think... i'd be more worried about your sound quality and portability of those WMA files.

    --

    This is my Sig, this is my Gun. One is for Slashdot and one is for Fun.

  12. I know who loses... by vudufixit · · Score: 5, Insightful

    The consumer - we get sued, screwed, and DRM'd out of our right to enjoy the music we purchase the way we want to.

  13. IRiver by Gyan · · Score: 4, Informative

    The iHp-120 is a winner too and it plays Ogg.

  14. ogg has a special place in my heart by bryerton · · Score: 5, Interesting

    As a game developer, using ogg vorbis as a royalty free, open source audio decoder rocks. I can use it on the two platforms I care about (mac and pc) for free. Booyah.

  15. OGG VORBIS by molafson · · Score: 4, Funny

    Just as every cassette left in a car for a fortnight is destined to turn into a 'Best Of Queen' album, every discussion of digital music on Slashdot must eventually become a polemic re: Ogg Vorbis.

  16. Proposition for a portable device by Mr+Smidge · · Score: 5, Interesting

    But all the MP3 hardware out there uses a dedicated MP3 decoder chip

    I have an idea. How much sense would it make for a company to make a Vorbis-only (or perhaps Vorbis/FLAC-only) hardware player? Before you all scream, here is my line of thinking of why it might be a good idea:
    * Primarily, no expensive license issues.
    * Vorbis-decoding can be done using only integers (FLAC too?), which must save some hardware costs.
    * It popularises the Vorbis/FLAC formats.

    And for the burning issue of "what 99% of the population with music in other formats?". I would propose that the software frontend to this be able to transparently transcode your music from any format (using any software plugin available) to Vorbis (or FLAC if you don't want to lose quality), before copying to the device.

    Benefits to consumer:
    * Supports pretty much any format of music they might have.
    * Would be very cheap to buy.

    I don't think the loss of quality in transcoding will be so important, because after all this is just a portable device, not a portable studio. The only inconvience I could see to a consumer would be a slightly longer delay as audio is transcoded and copied, but at a suitable quality level, I don't think it could make that much of a difference. Of course, there wouldn't be any such extra delay if you were copying a Vorbis or FLAC file to begin with.

    Saving on the hardware costs like that, and using software to handle all the numerous different audio formats sounds like a good idea to me, and so the manufacturer could probably sell it for a lot less than other players. And of course, we all know that Joe Average quite commonly picks the cheapest electronic device that does what they want, rather than worrying about its technical specs.

    Any comments?

    1. Re:Proposition for a portable device by Darren+Winsper · · Score: 4, Interesting

      That's simply not a scalable solution, not with current hardware. Take a 10GB MP3 collection, that's around 6-7 days of solid playtime. Now, a 2GHz P4 or XP-2000+ is pretty standard fare, and that would take around 1-2 DAYS to transcode the files.

      As much as I like and use Ogg, an Ogg-only player isn't feasible in the current market. I personally like iRiver's method, when there's limited room in the firmware, give the user choice. With the iFP-300 and 500 series players, they give you a choice between MP3+Ogg and MP3+WMA firmwares.

  17. Re:Define "little room" by kfg · · Score: 5, Interesting

    Buy a used CD. $5 bucks from locally owned store. You don't contribute to the artist that way I'm afraid, but you don't contribute to the RIAA either who would likely skim the artist's share anyway.

    You've contributed to the local economy and supported the contiued viability of the used CD market.

    Now you have a CD, a piece of property with attached rights that's worth. . . $5. You've reduced your liquidity but maintained net worth. You have acquired the music for free.

    Rip it to whatever format you like and put them on whatever devices you like. All legal like so long as you don't trade them or the original CD. If you only listen to rips store the CD safely as a backup source.

    Now, if you download 1000 ACC songs you've spent $1000 bucks and have a license. Not property. If things go badly for you in the future and you spend a year or two laid off you can sit around hungry and listen to your music.

    $70 gets you the same number of songs on used CDs. If things go bad for you in the future you've got an extra $930 in the bank and property which can be liquified fairly quickly to get another $50 bucks if you want.

    Whether or not you erase your rips is left to your own sense of ethics, so maybe you're sitting around still listening to your music too.

    If you don't mind old vinyl you can do even better. It's about 50 songs for a buck if you shop garage sales.

    KFG

  18. Consumer's don't "demand" codecs by rsilvergun · · Score: 4, Interesting

    Most don't have a clue what codec they're using (Windows doesn't display file extentions by default). You'll see Ogg more as it starts costing more to license the mp3 and AAC then it does to make hardware fast enough to play Oggs.

    --
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  19. Die, Vivendi Die by fm6 · · Score: 4, Interesting
    Another victim of the vivendi meltdown. Slashdotter are already familiar with another one.

    Elsewhere in this discussion somebody said they wanted to just pay a monthly rate for unlimited downloads. Vivendi is why that's a mistake. People sign up for cable TV mainly because they can get lots of shows that aren't available over the air. These shows used to be spread out over a lot of independent cable channels, but these channels got bought up by various conglomerates, of which Vivendi was probably the biggest. When Vivendi ran short of cash, they started cutting back on their programming. That's why the SciFi channel shows so many reruns of Tales From the Crypt. Of course, viewers didn't get any money back because Vivendi was spending less money to entertain them -- they were locked in.

    If cable TV programming allowed you to just pay for what you want to watch, people could vote with their feet and it would be harder to screw them. But when it's an all-or-nothing service, you take what they give you.

    Same with flat-rate online music services, like EMusic. Except there's even less competition in that marketplace, so the overall quality is especially low.

  20. the *real* winner by alizard · · Score: 5, Interesting
    The RIAA record labels, at the expense of most of the rest of us.

    Apple chose to buy into the RIAA distribution model when setting up iTunes, and as a resul, is only breaking even on selling music and making its money back on selling iPods.

    Instead of buying Universal and being able to bundle a few dozen albums with each iPod free and sell tracks for .25 each at a profit and use their ownership of content as a tool with which to club the rest of the content industry when negotiating per-download proces, they chose to pay bridge toll to the entire record industry and by willingness to pay all of their net income after expenses to the RIAA, reinforced the RIAA's business model and boosted the net cap of each RIAA company.

    If they'd managed to leverage their content ownership into much lower download prices, they'd be selling all the downloadable tracks from other companies at a profit, and other computer companies would be using this to beat down prices when they bought their own major labels.

    The RIAA labels are very definite winners because their net caps went up. Their attempt to prevent independent competitors from using the Net for promotion via P2P and Internet Radio is a lot less important in the short term.

    Instead of spending some of the money they had in the bank, Apple turned digital downloads into a game nobody is going to be able to profit at legally.

    Apple belongs on the winners list... at #8. They could and should have been #1, the major consumer electronics players would be on the winners' list, the general public would be on the winners' list, and the suits at all the major labels could have been on the top of the lus3rz list.

    Will Apple stay a winner? How long can they sustain the iPod at the current inflated margins? If they can't subsidize iTunes because of shrinking margins, iPod turns from a win to a money-loser.

    All it takes are some good competitive products, and Apple hardly has a monopoly on good or even visionary consumer products designers.

    If Apple has to cut iPod prices to commodity levels to keep selling them, there go their margins and their ability to keep iTunes alive at a break-even or money-losing basis, more product sales mean more money-losing downloads and more red ink.

    If this happens, and I think this inevitable, their short-sightedness will have cost them not only money, but a chance to turn the downloadable music market into a benefit for everybody not an RIAA label executive.

    Apple could have made the consumer electronic industry a hell of a lot stronger and boosted their bottom line at the same time.

    Instead, there's a pretty good chance that iPod + iTunes in a couple of years will make Steve Jobs look like a dickhead, not a hero.