Sound quality.

That’s Neil Young’s take on the issue, anyway. For years, the musician has been obsessed with improving the way modern music sounds, sonically speaking.

In an interview with Walt Mossberg and Peter Kafka at our D: Dive Into Media conference, Young, the perennial music purist, said that while modern music formats like MP3 are convenient, they sound lousy.

“My goal is to try and rescue the art form that I’ve been practicing for the past 50 years,” Young said. “We live in the digital age and, unfortunately, it’s degrading our music, not improving it.”

While modern digital encoding schemes might sound clear on our iPods and smartphones, they only feature a small percentage of the musical data present in a master recording, and Young is on a crusade to correct that.

“It’s not that digital is bad or inferior, it’s that the way it’s being used isn’t doing justice to the art,” Young said. “The MP3 only has 5 percent of the data present in the original recording. … The convenience of the digital age has forced people to choose between quality and convenience, but they shouldn’t have to make that choice.”

Young proposed that fans stage a grassroots movement to demand higher-quality audio. “Occupy audio!” he urged.

So what’s the solution? New hardware capable of playing audio files that preserve more of the data present in original recordings, said Young.

Ah. But who’s going to produce that?

Said Young, “Some rich guy.”

And evidently there once was some rich guy working on just such a device.

The late Apple CEO Steve Jobs.

“Steve Jobs as a pioneer of digital music, and his legacy is tremendous,” Young said. “But when he went home, he listened to vinyl. And you’ve got to believe that if he’d lived long enough, he would have done what I’m trying to do.”

Also a topic of conversation during today’s interview: The recording industry, and whether the record label has outlived its usefulness. Young contended it hasn’t.

“What I like about record companies is that they present and nurture artists,” he said. “That doesn’t exist on iTunes, it doesn’t exist on Amazon. That’s what a record company does, and that’s why I like my record company. People look at record companies like they’re obsolete, but there’s a lot of soul in there — a lot of people who care about music, and that’s very important.”

Then why is it the case that some artists complain so much about the economics of the industry?

Said Young, “Those artists should go by themselves. They have a choice of what they can do. Artists who want to go it alone should just do that.”

Finally, Young discussed piracy, which he doesn’t view as the threat that some other musicians do.

“Piracy is the new radio,” said Young. “That’s how music gets around.”

Neil Ashe, who left his job running CBS Interactive in late 2010, has taken a job helming Wal-Mart Stores’ global online commerce unit.

The retail behemoth said that Ashe will become president and CEO of its Global eCommerce division, replacing the retiring Eduardo Castro-Wright. He will operate out of Wal-Mart’s Silicon Valley office in San Bruno, Calif., but will likely make a lot of trips to the company’s HQ in Bentonville, Ark. (Ashe does not have the U.S.-based e-commerce business; Walmart.com is run by Joel Anderson, who reports up through the Wal-Mart U.S. stores business.)

In an interview earlier today, Ashe said that he was “impressed by the company’s realization that the consumer is changing … and the commitment to global e-commerce.”

Noting that Wal-Mart stores see 200 million customers a week, he said the goal was to make the online experience as compelling as the offline one.

“There has to be almost an indifference between physical stores and e-commerce,” said Ashe. “The whole company committed to winning on the Internet.”

Since he left CBS, Ashe has been advising a variety of Web start-ups, including LivingSocial. Ashe joined the board of the Washington, D.C.-based social buying company last spring.

The job at Wal-Mart is a big one, especially given its up-and-down history in the online space. That includes the recent decision to stop selling MP3s from its Web site.

It has also stepped up its efforts, including a number of small acquisitions, such as mobile advertising start-up OneRiot and mobile app company Small Society.

But it did pay big bucks — reportedly $300 million — for social media platform Kosmix.

Ashe noted that Wal-Mart is indeed still dwarfed online by online dominator Amazon. “They are very innovative and strategically adept,” he said.

With 59 million monthly visitors to its U.S. Web site and an aim to go global, how Ashe navigates Wal-Mart’s path in the next years will be interesting to watch.

Here’s the official press release:

Walmart Selects Neil Ashe to Lead Global eCommerce

San Bruno, Calif., Jan. 16, 2012 – Wal-Mart Stores, Inc. (NYSE: WMT) today announced that Neil Ashe, 44, is the new president and CEO of the company’s Global eCommerce business, beginning today. Ashe was most recently president of CBS Interactive, where he led all online properties and also drove development of new ways to distribute programming produced by the media giant and its subsidiaries. Websites included CBS.com, CNET.com, CBSNews.com, and CBSSports.com, among others.

Ashe is replacing Eduardo Castro-Wright who announced his pending retirement in September and will assist in the transition.

“E-commerce is a great opportunity for us and we have a long-term vision to win,” said Mike Duke, Walmart’s president and CEO. “We are on track to create the next generation of E-commerce, combining the latest in online innovations with physical stores to give our customers a unique and seamless shopping experience.”

“We have an understanding of what these customers want, a trusted brand, 200 million weekly shoppers, more than 10,000 stores around the world, and the ability to make significant investments in talent and technology. We also have successful online businesses, including in the U.S., the U.K., Canada and Brazil. With all of this, it is clear that Walmart is the best- positioned retailer to deliver this multi-channel experience to consumers, many of whom are already connected to the world through smart phones and social media.”

Duke continued, “With his strong personal leadership skills, financial background and experience in successfully working within a major corporation to lead its Internet division, Neil is the ideal leader to help us build this business. He has led companies through all stages of growth and maturity. He also has a deep understanding of the interactive space and how to attract and convert online customers. Perhaps most importantly, much of Neil’s professional success has come through close collaboration and shared goals with his peers — a key attribute as we continue to integrate our online businesses across the company and with our physical stores.”

“Walmart is a special company,” said Ashe. “Growing up in East Tennessee, I have seen first-hand the difference it can make in the lives of its customers. E-commerce gives us a huge opportunity to expand and bring savings to many more people around the world. We have great things ahead of us and I am eager to get started and join the talented team already in place.”

As president of CBS Interactive, based in San Francisco, Ashe led the interactive content business with operations in the U.S., Europe and China. After leading the successful integration of CNET Networks with CBS, he and his team leveraged existing company assets to ramp up CBS entertainment content distribution online, including making CBS.com the largest television network site in the industry.

Prior to this, Ashe was CEO of CNET Networks, initially best known for providing technology-related information, product reviews and price comparisons through CNET.com. He also oversaw dramatic development in the company’s China division, taking it from a small magazine and events operator to a highly profitable, fast-growing online business. During his tenure, the company’s value increased from $100 million to $1.8 billion. Ultimately, Ashe led the sale of the company to CBS and became president of CBS Interactive at that time.

Earlier, Ashe founded a company focused on using the Internet to improve K-12 education in the U.S. Prior to this, he was a partner and managing director at private investment firm Crest Communications Holdings and, before that, was an associate at Smith Barney, the investment bank now part of Citigroup.

Ashe has an M.B.A. from the Harvard Business School and a B.S. in Business Administration, with a major in Finance, from Georgetown University. He serves on the boards of LivingSocial, AMC Networks and the Georgetown University Board of Regents.

Over the past year, Walmart has made investments in capabilities and talent as it continues to build Global eCommerce. It has also further strengthened its position through the acquisition of small Internet specialty companies and continues to expand in new markets such as China and Brazil, including a minority stake in Chinese Internet retailer Yihaodian.

But since that clearly isn’t happening any time soon, we’re happy to see that this year’s show brings some creative options for recharging on the go.

And, really, what better time to show off your goods than when a bunch of frazzled reporters and producers are scrambling to find power outlets? (We’re writing this from a well-powered press room right now, though just a couple hours ago, we were in separate Vegas casinos, each trying to charge our laptops without attracting hotel security.)

Fortunately, electronics makers are plugged in to our needs. (Get it?!)

While there are lots of options for those willing to tote around an external battery, one of the more intriguing new entries adds charging capability to something we are already carrying — a backpack. Made by RFA, the Powerbag series backpack carries along several hours’ worth of battery life, and the ability to charge up to four devices at once, using micro-USB, mini-USB, full-size USB and Apple’s 30-pin dock connector.

The bags are pretty well padded, too, and have water-resistant bottoms. The Powerbags aren’t cheap — they range from $139.99 to $249.99 — but they do look handy, and several models are already on the market.

Unfortunately, the backpacks don’t charge laptops. But for average consumers, as opposed to reporters filing stories, the included mobile chargers are probably much more useful.

SolarKindle from Solar Focus makes us think of a day at the beach, rather than five days at CES. But it packs two functions that could be useful into one Kindle case. The outside of the case has solar panels that power both an arm light on top of the Kindle screen and an extra battery that lives in the back of the case.

Because it uses comparatively little battery and lasts weeks at a time, the Kindle is a logical device for solar charging. Even hardcore geeks get at least one day of sun, right? However, the same logic suggests that Kindle owners can probably also find time to charge up, every month or so.

To that end, the Solar Focus device doesn’t work with the new Kindle Fire — as the company points out, the tablet has a backlit screen and doesn’t use E-ink, so the arm light isn’t needed — but it does work with a standard Kindle and Kindle Touch.

Still, the Solar Touch could make the Kindle a near-perfect choice for those asked to choose the one gadget they would want on a desert island.

So if you need to fire up your non-Kindle Fire, the SolarKindle launches midmonth, and will cost $79.99.

Lastly, if you really have run out of battery power options, and you’re desperate to write something on your iPad, Targus has partnered with iDevices to create a writing pen that transcribes what you write on plain paper directly to your iPad, using Bluetooth capabilities. Even better is that the pen, called the iNotebook, does have some memory built in and allows you to store your notes if your iPad is dead. Once it’s up and running again, the notes will automatically transfer over. A little bit more than a ballpoint pen, this device is going to cost $149.99.

Of course, plain old pen and paper also work without a battery and cost just a couple bucks. Heck, we each got a free pen and notepad with our Vegas hotel rooms. Although, don’t get us started on what those cost.

Lauren Goode

* * *

Nokia and Samsung are locked in a fierce battle.

No, not the race for the title of world’s largest cellphone maker, though that’s interesting, too. The pair are neck and neck in the battle for worst-kept secret in Vegas.

We’re not sure which unannounced announcement has been more clearly preannounced: Nokia’s LTE Windows Phone for AT&T, or the fact that Samsung’s 5-inch Galaxy Note tabletphone is also coming to AT&T.

Nokia isn’t commenting, but people familiar with the matter have been busy talking up the device, most recently to the New York Times. Coding in AT&T’s Web site also reveals a Nokia device is coming, we’re told.

Meanwhile, Samsung’s Note is also officially yet to be announced. But there are signs for it all over Vegas. Plus, accessory maker Anymode, closely tied to Samsung, announced a line of accessories for the device (an announcement that was also retracted, as if such a thing were possible.)

While Samsung is probably the leakiest of the two, Nokia’s product is a whole lot more important to that company than the Galaxy Note is to Samsung’s future.

For Nokia, the new AT&T device will be its flagship and the centerpiece of the company’s effort to get back into the U.S. smartphone game.

In Samsung’s case, the Galaxy Note just ensures that it has every screen size from 3 inches to 10 inches covered with an Android device of some shape. Dell didn’t find much love for its 5-inch Streak, but we’ll see if a stylus and some other features allow it to carve out a niche.

Ina Fried

* * *

We were going to do a whole big feature story on how smartphones were killing the market for GPS devices, MP3 players and point-and-shoot cameras, but NPD’s holiday sales figures say it all.

MP3 players are down 20.5 percent, point-and-shoot cameras down 20.8 percent and GPS units down 32.6 percent.

The only thing missing are some quotes. So here you go:

“Yup,” said the analyst.

“But just wait,” said the point-and-shoot camera maker. “Our new camera adds Wi-Fi.”

“We’re focusing on value added services,” said the GPS maker, while also asking bystanders for loose change.

“I’m sorry, I was listening to music on my phone,” said the MP3 maker.

Ina Fried

* * *

Our team is on the ground in Vegas looking for the really interesting stuff, the big trends and the fun things that make the long lines, long days and long speeches worth it. Check out the links below for all the latest from the 2012 Consumer Electronics Show.

MORE CES NEWS:

• Complete coverage
• HP’s Former CTO: Ultrabooks Are Nothing New, webOS Still Has Life Yet
• Walt Shows Off CES Gadgets for Fox Business News (Video)
• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
• Why Rhapsody Is (Probably) Bigger Than Spotify — In the U.S.
• Microsoft Beefing Up CeBit Presence Even as It Pulls Back on CES
• Inside the CES Lost & Found
• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
• Walt and Katie Take a Tour of CES (Video)
• Schmidt-Storm Alert: The Google Chairman Didn’t Like Your Question
• T-Mobile Expands Bobsled Messaging Service
• Intel Shows Just How It Plans to Get Into Phones (Video)
• Motorola CEO: We’re Going to Release Fewer Phones This Year
• Kinect Helps Keep Aging Xbox at the Top of Its Game
• More From T-Mobile CEO: On Pricing, LTE and That Ever-Elusive iPhone
• Exclusive: New Boss Acknowledges Windows Phone Still Has “Awareness Problem”
• And You Thought Jawbone UP Was Going to Miss the CES Party!
• Interview: T-Mobile CEO Says No Second AT&T Deal Out There
• Grover Is at CES and I Am Missing It
• BlueStacks Bringing Android Apps to Windows 8
• Why the Future of TV Won’t Be Here Soon
• Nvidia’s Tegra 3 Tries to Save Battery in All Sorts of Different Ways
• Dynamic Dual Coverage: Ballmer’s Last Act in Vegas and the BCS Championship in 3-D
• Microsoft Phoning In Its Last CES Keynote
• Myspace — Yes, Myspace — Says It’s Going to Sell You Web TV
• Samsung Unveils “Super” 55-Inch OLED TV
• Nokia Unveils That LTE Windows Phone It’s Been Dying to Share
• Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)
• Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile
• AT&T’s De La Vega: Shared Data Plans Still in the Works
• LG: 55-Inch Glasses-Free 3-D Screen Is on the Way
• LG Pushes 4G Smartphone Through Verizon: The LG Spectrum
• Live: AT&T’s Vegas Act Stars LTE and, Making Her Return to the Stage, Nokia
• CES Notebook: The Constant Search for Power and Vegas’ Worst-kept Secret
• Belkin Bringing Mobile TV to Lots of Cellphones, Will Anyone Tune In?
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• CES 2012: Snooki and Bieber Are In, Gaga Is Out!
• Coming to a Smartphone Near You: Gorilla Glass 2
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• At CES, Expect More Gadgets Telling You to Get Off the Couch
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Said strings: You have to visit a certain brand’s Facebook page, “Like” their page or jump through a similar hoop, and then pick your songs from a limited assortment of freebies.

But if you find one you like, you can download it in MP3 format. And it’s yours forever, and you can play it anywhere, anytime you want, on any device. Even a Zune!

Zero cents for a song is a pretty good deal for music fans. The question is whether Free All Music, which is making this possible, can turn it into a business.

The two-year-old start-up has been moving slowly as it tries to figure that out. In a cheap-money go-go era for start-up funding, it has raised a mere $1.7 million. New CEO Habib Khoury, who replaces founder Richard Nailling, says his company is “en route” to a proper Series A.

On paper, at least, the business model is a simple mashup of two gambits we’ve seen before: Marketers who buy music and give it away for promotions, and marketers who reward Facebook users for “Liking” them.

In this case, Free All Music buys songs from labels like EMI Music and Universal Music Group at the same wholesale price that retailers like Apple and Amazon get — around 70 cents a song. Then it works with brands like Budweiser and American Express to give the songs away via their Facebook pages. Free All Music charges the brand a CPM of $5 to $8, and says that spread should allow it to make money.

Free All Music is still missing distribution deals with two of the big four labels — Sony and Warner Music Group — and even if it gets them, it won’t ever be a free music service that’s going to battle the Facebook giveaways currently underway via the likes of Spotify, MOG and Rdio. Those services give you unlimited music on demand, but only via streaming. Free All Music’s giveaways are one-offs, just like a bank giving away a toaster.

But much cooler than a toaster. Here’s the Jack White/Loretta Lynn song I downloaded gratis yesterday, in exchange for giving Budweiser a virtual thumbs-up.

Users of Google Music, as the service is tentatively named, could recommend songs in an online library to Google+ contacts, who in turn would be allowed to listen to those songs once for free. The songs would then be available for sale as MP3 downloads, probably for around the usual 99 cents each.

Digital-music services from Spotify AB and Research In Motion Ltd., too, have recently begun using social networking as a word-of-mouth marketing vehicle. It is too early to know how successful these efforts are at recruiting new customers and retaining existing ones, people in the music industry say, but they add that early signs are encouraging.

Read the rest of this post on the original site

But given the widespread adoption of tablets like Apple’s iPad, coupled with everyone under the sun vying for a piece of the tablet market, it’s easy to see that consumption of content will continue to explode. And that’s the point — with that explosion comes the aftershock of storage demand. As more users adopt tablets as mainstream, more storage from hard drives will be needed from the backend servers and in the cloud to serve them. So while flash is appealing for use in consumption devices like tablets, let’s not let this obscure the main fact about tablets in the big picture of the storage market, which is that tablets aren’t hurting hard drive sales — in fact, they are helping.

When examining the storage market, we can look at present and future projections for HDD unit sales and by volume of capacity (in petabytes) shipped as per the chart below:

But we can also look at the data trends for consumption. In 2005, the world generated 150 exabytes (one billion gigabytes) of data. This year, it’s estimated that we’ll create and store 1,200 exabytes, and in 2020, a staggering 35,000 exabytes!¹ That’s 30x growth over the next 10 years.

This isn’t the first time that we’ve heard in the HDD world that the sky is falling. About a decade ago, MP3 player manufacturers shrank the device footprint and switched from hard drive storage to flash. Not long after, smartphones came on the scene, and those in the know posted that users would discard their PCs in favor of smartphones and, again, the hard drive industry would suffer. But the sky never fell, and neither MP3 players nor smartphones caused hard drive sales to decline. In fact, sales actually grew 14 percent between 2000 and 2005, and continued to grow 12 percent from 2005 to 2010.¹ The reality is that the more content consumption devices hit the market, the greater the demand for hard drive storage capacity, even when it is not local to the device.

Now let’s delve into some logic. Consumers didn’t discard their PCs for smartphones, and they aren’t going to chuck their PCs for tablets — the devices just aren’t that interchangeable. People are using their tablets for content consumption: to watch movies, browse the Internet, check email, play games, etc. But they aren’t really using their tablets for content creation, and certainly don’t rely on them for heavy duty applications. So logically, it follows that most people who own a tablet need a PC as well.

But just for argument’s sake, let’s assume users worldwide tossed out their PCs and replaced them with tablets. Right out of the gate, we would have a capacity problem. The bottom line is that all the flash in the world isn’t close to enough to meet the worldwide need for storage capacity, and that fact will remain true for a very, very long time. Here are some numbers to consider: In 2010, all the content created and replicated grew past a staggering zettabyte (one trillion gigabytes), and is expected to reach 1.8 zettabytes in 2011. Yet in 2010, the entire NAND flash memory industry manufactured just over 11 exabytes (you would need 1000 exabytes to equal every one zettabyte) of storage. Even with forecasts predicting that NAND flash production capacity will grow to 21 exabytes in 2011, only nine percent of that, or about two exabytes, will go to the flash memory used in tablets.² That’s not nearly enough capacity to meet demand.

Tablets with flash storage simply don’t have the onboard capacity to store the massive volumes of digital content that users want to access — anytime, anywhere. So all that data needs to be stored externally, in either local attached, networked or cloud storage — and all those formats rely on hard drives. So, once again, tablet popularity doesn’t hurt hard drive sales. In fact, some pundits see tablets as a net gain for hard drives: “For now, IDC sees the rise in demand for iPads/tablets as additive … for HDD makers in terms of the growth of information and digital content that has to be stored somewhere. That content and information consumed by these devices most likely will be stored on hard disk drives in data centers, cloud infrastructures, or on USB or network-attached personal storage devices in homes.”³

So in the end, even if some users do opt to replace their PCs with tablets, hard drives will still be in high demand. Content will continue its growth and storage will always be needed. Because nobody is saying worldwide demand for storage capacity is decreasing. Now that would be an ugly rumor!

Mark Wojtasiak is a Senior Manager in Product Marketing with Seagate Technology. For the past 5 years, Mark has been based in Seagate’s Shakopee, MN, design center where Seagate lives and breathes enterprise storage. Though Mark works in the middle of everything enterprise, his role at Seagate enables him to listen, learn, discuss, and share anything and everything related to storage. From the traditional desktop to external drives to the cloud, he develops insights on the latest storage technology, trends, customers, and users.

^{1 IDC Digital Universe Study, June 2011}

^{2 Gartner, Forecast: NAND Flash Supply and Demand, Worldwide, 1Q10-4Q12, 3Q11 Update, page 2, Table 15-3, September 2011}

^{3 http://storageeffect.media.seagate.com/2010/11/storage-effect/a-tablet-with-a-side-of-storage-please/}

Wal-Mart sold MP3s from its Web site?

Exactly. For the record: The company wasn’t always a complete non-factor in digital music. For a couple years it was a very, very, very, very minor factor.

NPD estimated Wal-Mart’s share of the U.S. digital music market at 1.8 percent at the beginning of 2008. But by the end of last year that number had dropped below one percent, placing it behind Amazon, Zune, Rhapsody and Napster.

And, of course, Apple, which has consistently owned the overwhelming share of the digital music market since the iTunes store launched back in 2003.

It would be easy enough to document Wal-Mart’s missteps — embracing Microsoft’s now-defunct Windows Media Audio standard, for instance — but the truth is that no one has ever made any headway against Apple in this market, ever. Amazon is by the far the best non-Apple performer, and even it hasn’t been able to garner more much than 10 percent of the market.

So cut the world’s biggest physical retailer just a teeny tiny bit of slack.

The deal ends a years-long struggle between China’s most popular website and the three big labels over a popular Baidu MP3 search service used to find links to music files around the Web, many of which were unlicensed. The music industry and the U.S. government have complained that the Baidu site was among the world’s most widely used platforms for unlicensed music downloads, with the U.S. Trade Representative listing Baidu as a “notorious” market for piracy.

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• People will still buy music if it’s really, really cheap. Billboard says that Amazon sold 440,000 digital copies of her new “Born This Way” album at $0.99 each. The e-commerce giant sold 330,000 copies on Monday, even though demand for promotion blew its servers up, and 110,000 more copies on Thursday, when it repeated the stunt.
• People will still buy music if they’re really, really interested in a particular act. Billboard also says Lady Gaga is set to sell 1.15 million albums total this week. Which means that buyers are paying full price for some 700,000 of them.
• Bonus lesson, because we already knew it, but it’s good to remember anyway: People are still buying CDs! Billboard also projects that Apple’s iTunes will account for 200,000 units sold by the end of the week. Add in Amazon’s totals and you get to 640,000 digital albums sold. Which means that Americans will have bought more than 500,000 good old-fashioned compact discs this week, too.

Have you bought a CD in the last year? Do you know anyone who has? Me neither. But someone is: A decade after Napster, discs still account for a majority of the music industry’s revenues.

And now, because I’m tired of embedding Lady Gaga videos in Lady Gaga posts, something old-timey:

*Really. I know. It’s weird, right? At least for people of a certain age, and I am one of those people. But whatevs, as I believe the kids say.

That gets you 14 songs and a digital booklet. The same album goes for $11.99 at Apple’s iTunes, which seems more interested in pushing a 22-song special edition for $15.99–that’s the one currently featured on the retailer’s home page.

Back in the old days, when people used to buy CDs, it wasn’t unusual for Best Buy et al to mark down big albums from $16 to $10 as loss leaders less to get people in the doors: The retailers took a loss on the discs in the hopes you’d buy a stereo or a TV, too.

Here, it looks like Amazon is hoping to use the sale to push its cloud music locker. Promotional copy reminds shoppers that if they buy this or any other album, they can upgrade the 5 gigabytes of free storage the service offers to 20 gigs.

Which reminds me:

• Remember when Amazon’s cloud music locker was a big deal? That was back in March. Perhaps it’s the kind of thing that lots of people are using but aren’t talking about, but my gut is that few people know the thing exists. Which again would be the point of using the world’s biggest (?) celebrity to promote the thing.
• Remember when the music labels were shaking with anger about Amazon’s cloud music locker? That was back in March, too. It’s possible, theoretically, for the labels to strike out at Amazon in some way–perhaps in court, or perhaps by pulling their music off the e-commerce giant’s digital shelves. But it looks as if they’ve conceded that a legal argument will be tough, and that they’d rather have someone else in the digital market beyond Apple.
• Remember when Google was going to help the labels by opening up its own digital music store? Alas, not for now. But I wonder how much Larry Page would have sold Lady Gaga for, if he had the choice.

The first promotion–kicking off at midnight–will give customers who buy an Android device from Verizon Wireless $25 to spend on applications from the Amazon Appstore.

The offer ties together Amazon’s wireless store, which sells a variety of phones for all the major wireless carriers, and its brand new Appstore, which is an independent catalog of apps for Google’s Android operating system.

It also leans on tight relationships Amazon has formed with carriers, said David Camp of Amazon Wireless.

The promotion will continue for a week, and is only valid on Android phones purchased by Verizon, including the new HTC Thunderbolt, which runs on its speedy 4G network.

The promotion is designed to give Amazon’s Appstore, which just launched last month, a boost. But it also hints at the company’s interest in Android and a broader strategy it could be pursuing.

So far, it’s unclear how well the storefront, which is accessible on the computer and the handset, has been received–and Amazon is not sharing download figures. But it has almost doubled the number of apps available for sale from to 7,500 from 3,800 over the past few weeks.

That’s despite the fact that the International Game Developers Association cautioned game-makers about Amazon’s strict pricing conditions. Downloads could also be soft due to the fact that AT&T has blocked users from being able to download third-party apps, including from Amazon’s Appstore, to Android devices. The U.S. storefront is available to users from T-Mobile, Verizon and Sprint.

So far, Amazon’s interest in the wireless industry has seemed a little scattered. However, this promotion starts to bring it into focus, and hints at how Amazon could weave together its strategies to drive sales to its own properties.

It also shows how important the retailer could be to Google.

Today, Camp says that Android devices are the best sellers on its storefront (the big caveat is that it doesn’t sell the iPhone).

Beyond its cellphone store at AmazonWireless.com and the digital Appstore, Amazon has also released a bevy of applications, including shopping portals, barcode scanners, Kindle apps for virtually every device and an MP3 store. More recently, it rolled out a Cloud Player, which allows people to store their music and other digital content in the cloud, making it accessible from both Android devices and an Internet-connected computer.

Monday’s promotion is just the start. “We will continue to do things like this in the future,” Camp added.

In a letter sent to the big labels, Amazon says it has been selling more MP3s since it launched the service. In other words: Stop whining about licensing deals and start thanking us for making you more money.

It’s easy enough to imagine sales jumping in the last two weeks, as lots of people dropped by to try the service out. And Amazon gave users a real incentive to buy more songs while they were there by offering increased storage to anyone who bought an album at the online store.

But Billboard’s Ed Christman, who’s seen the letter, says Amazon doesn’t have anything else to say about its recent sales spike–like, say, numbers.

Instead, the letter is dedicated to:

• Reminding the labels that Amazon has no interest in seeking licenses for the service it has already launched “as no licenses are required.”
• Letting the labels know that, actually, it does plan to come to them for other licensing deals soon, as it contemplates “potential enhancements” to the service.

Why does Amazon feel that it didn’t need licenses for its initial launch but will need them down the road?

Part of the answer is a technical one that deals with the way the cloud service works, and whether users are actually uploading a copy of their own property to the service or if Amazon is keeping a single master file for multiple user’s songs.

But the real world answer is that this is a clever/ballsy strategy on Amazon’s part: It’s signaling to the labels that they’re going to get at least some of what they want–eventually. It’s just that Amazon is in a hurry and didn’t want to start negotiations from scratch–not when Google and Apple are looking at similar ideas.

So far it seems to have worked. Not only have the labels stayed mum, more or less, about their displeasure with the service, they haven’t done anything more forceful either–like taking their songs out of Amazon’s store or suing the company.

And if Amazon’s right, the labels may have no real choice but to keep their mouths shut and cash some checks.

The 3DS will be available in the U.S. on March 27 for a competitively priced $249.99. The handheld game player’s big selling point is that it offers 3-D without the need for special glasses. The device will come in Cosmo Black or Aqua Blue. Prices will vary outside the U.S.

At an event today in New York, Nintendo revealed more of the device’s capabilities, and many of them sound like features found on the iPhone and many other smartphones.

Apple’s ability to turn its MP3 players and phones into portable gaming devices has been a competitive threat to Nintendo, which with the 3DS release looks like it is willing to recognize.

For example, the new 3DS has an online store, called the eShop, where users will be able to download games. It also has three cameras and a built-in gyro, so the device can be tilted and turned to affect game play. It will also have location-based features, where users can elect to receive new content from Nintendo or other 3DS users as they travel around. The feature can connect to Wi-Fi hotspots when in sleep mode to collect this content or to function as a pedometer, which counts a user’s steps.

Additionally, users can take pictures with the camera, or listen to music and surf the Web on an Internet browser, which will come soon in a system upgrade. Users will also be able to play with one another by exchanging a simple code. About 30 games are expected to be available by June for the device.

It’s some of these more nuanced features that could make the device more competitive, but it’s the 3-D interactivity that Nintendo is really pushing, and so far consumers have not gravitated to 3-D as a reason to upgrade a TV, so it’s unclear whether it will be a draw for the 3DS.

Nintendo’s enthusiasm for 3-D also suffered a blow when it issued a warning that it is not healthy for kids under the age of 6 to view 3-D images. Nintendo says the impact from that should be minimal because the 3-D effect can be ratcheted up or down, and even turned off completely.

However, even with the masses descending upon Las Vegas this week, Cricket has decided to delay the Muve music service and the launch of its first Muve-compatible phone.

Cricket had hoped to launch service in Las Vegas this week along with a number of other markets later this month.

Under its revised time frame, Cricket plans to launch the service in Las Vegas later this month, add nine more cities in February and roll it out to the rest of its markets this spring.

Although all the necessary licensing is in place, Cricket spokesman Greg Lund said that the company needed the extra time to ensure all of the software bugs were ironed out before it started asking customers to pay for the service.

“It’s got to be just perfect,” Lund told Mobilized in an interview at CES in Las Vegas.

Because despite the pop star’s domination of both YouTube and Facebook’s charts this year, his popularity did not translate into dollars spent on Amazon or eBay.

The leading picks for eBay’s top-shopped and pop-culture obsessions of 2010 were: The iPhone 4, Barbie, military jackets, Hot Wheels and the iPad.

EBay said that in the U.S. there were 1.63 million items sold related to the iPhone 4, and 631,399 iPad-related items sold.

We also asked Amazon to cull its list of bestsellers to see what was trending among consumers in 2010.

It found that while the top-selling electronic gadget on Amazon was clearly the Kindle (the Wi-Fi model, to be exact), the top computer sold was the 13.3-inch MacBook Pro. The top-selling phone was AT&T’s Samsung Captivate (yes, Android!).

Finally, the other standout result was that not everyone got what they wished for.

In other words, the top-selling items did not always synch up with the most-wished-for items stored on Amazon’s Wish List. For instance, the top computer wished for was Apple’s iPad. (Still, when Amazon announced earlier this week that the third-generation Kindle is now the best-selling product in history, CEO Jeff Bezos insisted that the Kindle and iPad serve different niches, and therefore don’t compete. Maybe it helps when the Kindle is considered an electronic, and the iPad a computer).

Most-Wished-for Items of 2010:

Top-Selling Items of 2010:

The company, best known for its prepaid phones, is offering a new service called Muve Music, which includes the cost of unlimited music downloads as part of a $55 monthly cellphone plan that also includes unlimited talk, text and Web. Basically, Muve adds about $10 to the cost of the monthly cellphone tab (which, incidentally, is about what one can expect to pay for the typical subscription music service).

The music is downloaded directly to the cellphone and is accessible as long as you remain a subscriber. From a technology standpoint, the service works by transferring the music to a secure partition of a 4GB digital memory card in the phone; Cricket says that partition can hold about 3,000 songs.

Cricket is launching the service next month with a single compatible phone–a color touchscreen feature phone known as the Samsung Suede, which will sell for $199. The service will first be available Jan. 6 in Las Vegas, with about 10 of Cricket’s other markets due to come on board later in the month.

What makes the service interesting is the approach–there is no tie to a PC whatsoever. Music comes to the phone, lives on the phone and is managed on the phone. In an interview, Cricket Vice President Jeff Toig said the service is geared to Cricket’s base of customers, many of whom don’t have a PC and broadband connection. It also allows them to get their music the way they do their other cellphone services–by paying in cash at the company’s retail outlets, thereby eliminating the need for a credit card.

The downside, of course, is that the music can only be played on the phone, though the phone can connect to a car stereo or external speakers over bluetooth or via a 3.5mm cable.

On the plus side, Muve doesn’t add much to the cost of a cellphone plan and eliminates some of the complexity traditionally associated with digital music. In addition to the ability to download and play tracks from all four major music labels, Muve subscribers can set any track to be either a ringtone or ringback tone (the music heard by callers while they are waiting for someone to answer).

Nokia tried a somewhat similar approach with its “Comes With Music” phones, which debuted in 2008. In that program, the cost of the music subscription was included in the price of the phone rather than in the monthly cellphone bill. Others, such as SpiralFrog, have tried to create services relying on advertising to subsidize the cost of providing music free to the end user.

Toig said that his customer base is one that typically isn’t downloading music from iTunes at 99 cents a pop, but includes a fair number of people that illegally download music from file sharing services.

The new service, he said, allows them to have a better experience without having to spend much more than they already are, while giving the record industry a chance to reach digital music customers they are largely missing out on today.

Unlike other services, which Toig said bank on the fact that people have access to a computer, Muve tries to make it easy to discover and download music directly from the phone. Customers can subscribe to curated feeds of music that get automatically updated, as well as find and download albums by name. A built-in social network allows them to see what their friends are listening to (assuming they also have a Muve-compatible phone).

“Nobody has done mobile music right,” Toig said.

Cricket won’t say how much of the incremental $10 in monthly revenue it is getting goes to the labels, but Toig said part of the bet is that Cricket will be able to reach customers that it otherwise could not.

“We’re obviously not doing this for a few percent,” he said. “We think this has appeal beyond our base to segments Cricket has not appealed to before.”

At least theoretically: I just tried to download the new app to my year-old Tour, and got an error message. And BlackBerry’s support link for the app gave me a 404 error.

Meanwhile, some context: Various retailers, carriers and phones have offered over-the-air downloads for years, and Apple brought them to the iPhone in 2009.

Despite the music industry’s big hopes, they’ve never really taken off in the U.S.