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The Beatles The Beatles |
That's a big leap of faith but hear me out: The Beatles' label Apple Corps will join MTV for a splashy, London-based news announcement to unveil plans to bring the Beatles' catalogue to the wildly popular Rock Band video game. These two groups have been trying to hammer out details for months, and it appears they've finally come together (yes, pun intended.)
The reason this is so much bigger than merely MTV scoring the world's most valuable music catalogue is that it signals a monumental shift by Apple Corps to begin to embrace digital distribution. And that could mean a new opening for more discussions with Apple Inc.[AAPL 111.04 
6.49 (+6.21%) 
] and its iTunes music service, since the Beatles are still so conspicuously absent from the world's most popular music store.
Video games Rock Band and Guitar Hero have both become musical juggernauts of their own, becoming the new distribution method of choice, not just for classic bands looking for a second life for their classic songs but for new bands trying to get their new songs directly to fans. And it has worked liked a charm. Just ask Motley Crue and other bands who have seen album sales spike exponentially by going the video games route, seeing sales far stronger than anything they've tried on iTunes or Amazon.com.
Viacom's [VIA 21.93 1.60 (+7.87%) ]MTV has seen a boon from all this: Rock Band has sold well over 10 million songs so far, and with only 100 available, that's an average 100,000 downloads each. Activision's[ATVI 12.71 0.71 (+5.92%) ] Guitar Hero has sold 15 million songs. These are numbers just too huge for even the Beatles to ignore.
Still, the Beatles' label has been terribly reluctant to do anything digital, even though its individual members have all embraced iTunes as solo artists. The animosity between Apple Inc. and Apple Corps has been covered endlessly, mostly because it's gone on for decades. The two sides did settle their legal differences, though personal issues probably still linger. Which has likely been the road block to a more sweeping partnership between them.
And in the process, Apple Corps has said "no" to just about anything digital.
But Apple Corps sees the momentum, the evolution, the revolution of digital music and may finally be willing to step out of the shadows. Rock Band poses an enormous digital distribution platform.
AC/DC, also reluctant to do anything digital, just signed a deal with Rock Band with its new 18 song "TrackPack." AC/DC is enjoying a renaissance of sorts, boasting its first Number 1 album in years, even though it's being distributed exclusively by Wal-Mart[WMT 54.75 
-0.27 (-0.49%) ]. Sales should continue to roll as Rock Band keeps interest in AC/DC high.
Could AC/DC be coming to iTunes next? Could the Beatles? Some might say that instead of good news for iTunes, the Rock Band developments are actually a threat to Apple Inc.; that iTunes was once the best way for the music industry to reach fans, but that now there are many other, possibly equal or better distribution routes to take. That Rock Band won't increase interest in digital distribution; that it will steal business from Apple's iTunes instead.
I disagree. The more the merrier. The Beatles going Rock Band shows a new flexibility by Apple Corps to exploit new technology. That has to be good for a potential deal with iTunes as well.
Update: And for those of you who just can't wait for the Beatles to get to iTunes officially, Bloomingdales has taken the initiative with a Beatles deal all its own. Check this out.
Questions? Comments? TechCheck@cnbc.com
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