Eerie Management

Nine Lies Video hits 50,000 in 100 days

2012-03-09T09:44:00.000-08:00

The "Nothin Left For Me" video by Nine Lies has reached a staggering 51,231 views this week of March 2012!

With viewing figures averaging 300 per day, and a staggering 1,281 likes, the video has surpassed all expectations. Comments have been flying thick and fast from viewers around the world, with many posting that they have subscribed to the Official Nine Lies YouTube Channel, and others posting that they would pass the video link on to their friends.

The Official Nine Lies YouTube Channel itself is enjoying high viewing figures with over 67,000 views, and over 1,700 subscribers.

Nine Lies are excited by the attention that they have received not only from viewers on YouTube, but across the Internet. The video has been posted on blogs, on facebook, and tweeted about ever since it went "public". The video was also posted on the "Beat 100" Network, and was #1 for January 2012 in the music video charts.

The video has also been premiered on An Lar TV, and is playing on their rock playlist currently.

Now the band hope that the video they made for £2.00 will go even further...

Watch the video right here:

Nine Lies to promote NI digital switchover

2012-01-03T02:20:00.000-08:00

Nine Lies are to appear on BBC Newsline on Wednesday 11th January alongside TV personality Gloria Hunniford to promote the digital switch-over campaign in Northern Ireland.

This year sees Northern Ireland make the switch from analogue to digital television signals.To promote this event, the BBC have invited Nine Lies to play live on air to an estimated audience of 1.7 million viewers in the Northern Irish province. This is a great opportunity for the band to be seen by a large audience of viewers, and to promote the band live on television.

The program can be seen on the 11th January 2012 at 6:30 pm on BBC 1 Northern Ireland (Channel 101 on Sky, or Channel 973 on Sky if you live on mainland Britain). The program will also be available to watch via BBC Iplayer.

Nine Lies to promote NI digital switchover

2012-01-03T02:17:00.000-08:00

Latest news from the industry

2011-11-29T02:30:00.000-08:00

The Big Gamble on 'Hybrid' Record Stores...

Walk into Amoeba Records, and there's no question: this is a record store, and it's about buying music. It's rows and rows of used CDs and vinyl, with serious music lovers thumbing through the racks. But that's not reality anymore, and for the rest of us, the 'record store' is quickly morphing into the 'entertainment store,' or some variation thereof.

And that's for the ones that manage to survive. "All of you have noticed our not-so-subtle shift in emphasis from pure music, to music and DVD, to now at times an odd mixture of new and used CDs + DVDs, combined with an increasing amount of pop culture and fashion items," Newbury Comics cofounder and CEO Mike Dreese recently told his Facebook followers.

Others are increasingly scraping by with a mixture of non-musical items. The new 'hybrid' record store includes lots of 'lifestyle' products like incense, toys, books, and novelty items, a collection that can sometimes clutter the pathways to actual music. According to data recently shared by StreetPulse, lifestyle items are approaching 30 percent of revenues at some record shops. "Music is selling way under list and the markup on lifestyle is huge," StreetPulse CEO John Weston told Digital Music News last month.

So are these really record stores anymore? Actually, Newbury is now opening mall-based 'hybrid' retailers, and Dreese very candidly wondered whether that's enough to keep his brick-n-mortar model afloat. "There simply isn't enough remaining customer demand to support more than a handful of our stores in a few years if we don't change our mixture of goods."

But this is happening all over, even at the 'uncool' spots. Take Hastings, which has been dialing away from music for years - and surviving in the process. As of its latest fiscal year, this is what the breakdown among products looked like.

Books: 22%
Video: 22%
Rental: 16%
Music: 12%
Video Games: 12%
Trends: 7%
Electronics: 3%
Consumables: 4%
Other: 2%

Then of course, there's vinyl, enough of a niche for some smaller shops to survive. Unsurprisingly, a huge chunk of vinyl sales are happening at indie outlets, and LPs need floorspace to survive. The question is whether this little boom becomes a bigger boom, and puts some of the 'record' back in 'record store' over the next few years.

What SOPA Debate? The Department of Justice Just Seized 130 Domains...

But wait: doesn't SOPA have to be voted into law before site seizures can take place? Isn't that the whole point of the hearings and debates? Apparently not: over Thanksgiving, the Department of Justice (DOJ) and Department of Homeland Security forcibly seized the domains of more than 130 sites, according to details first discovered by Torrentfreak.

This is just the sort of thing that SOPA would authorize, if passed. In the interim, there is some judicial process involved, specifically involving US District Court authorizations according to the agencies. But there's little information on what due processes currently exist, and if any of these sites could have appealed the guillotine.

In the latest round, the list seems mostly comprised of obvious knock-off sites. These are 'stores' that are selling fake stuff and ripping off legitimate outlets, but the question is whether this sort of 'shoot first, ask questions later' approach ultimately punishes legitimate players. Or, in the case of a gray area, unfairly favors larger content owners and businesses without enough due process.

Which is exactly what happened to hip-hop site OnSmash last year. The heavily-trafficked OnSmash (onsmash.com, now offline) was routinely being used by major label marketing teams to push new product, yet the RIAA itself ordered the hit. This is a site that needed a judge and jury, not a midnight teardown, which is exactly what the SOPA debate is all about. In fact, a lack of due process is one of the reasons why the bill now seems to be in trouble.

So, does this mean that if SOPA doesn't pass, the DOJ will act as if it did? It's a scary question to ponder.

99.9% of Tunecore Artists Make Less Than Minimum Wage...

Earlier this year, we stumbled upon a very depressing statistic. It turned out that the average Tunecore artist was making just $179 a year - and that was before any annual fees. But now, it turns out there's an even more depressing figure: 99.875% - or nearly all - of Tunecore artists are making less than minimum wage through the platform, based on revenue figures recently shared by the company.

And that only counts revenues - not costs for creating content or annual fees owed to Tunecore. It also assumes that Tunecore revenues are being paid to one, solo artist, instead of being divided by a group.

Here's how we arrived at the calculation:

(1) We used the mininum wage of $8 in California.

(2) We multiplied that by the standard work week of 40 hours to reach a base monthly salary of $1,280.

(3) Then, we used a spreadsheet of top Tunecore earners from July of this year, which showed that just 749 artists made more than $1,280 in that month.

(4) We calculated the percentage using a baseline of 600,000, which is the number of member artists reported by Tunecore in late April of this year (about 2-3 months before the July data was published).

The result was the 99.875% figure.

A tour through the rich neighborhood. Perhaps the saddest part about all of this is that Tunecore CEO Jeff Price revealed the data with a completely different goal in mind. Price selectively published the spreadsheet of artists making over $100 a month to underscore how lucrative Tunecore is for artists. That list includes some extreme high-fliers, though it also includes artists signed to labels. "With the music industry democratized, more artists are making more money than ever before," Price explained.

But is that really true?

You decide....

Spotify: "The Overwhelming Majority of Our Label Partners are Thrilled With the Revenues"

Spotify is now assuming its strongest stance yet against accelerating artist and label departures. That includes the recent pullout of more than 200 labels represented by STHoldings, and the rumored threat of more Coldplay-like licensing refusals.

This is a statement the company emailed Digital Music News this morning, specifically in response to the ST situation.

"It would take more than 100 years to listen to Spotify’s catalogue of around 15 million songs – one of the world’s biggest music libraries – and to which we add more than 20,000 new tracks every day. We have agreements with the four major labels and many thousands of smaller indie labels, and the overwhelming majority of our label partners are thrilled with the revenues we're returning to them. We believe we offer the simplest, easiest and fairest music service in the world, and millions of our users across 12 countries would agree with us.

We are very sorry that a few labels and artists have chosen not to make their music available to their fans on Spotify, and will also therefore not reap the benefits of increased listener reach and buzz alongside revenue. We do however hope that they will change their minds, as the Spotify model is adding, and will continue to add, huge value to the music industry. Right now we have already convinced millions of consumers to pay for music again, to move away from downloading illegally and therefore generate real revenue for the music business.

We – alongside many artists and labels – dispute many of the numbers that have been discussed recently pertaining to Spotify. Artists can – and do – receive very substantial revenues from Spotify, and as Spotify grows, these revenue streams will naturally continue to grow. It is important to note that we do not have direct, contractual relationships with artists. We compensate collecting societies, who pay on to publishers and songwriters, and the record companies (who in turn compensate the artist) for use of a track.

Spotify is now the second single largest source of digital music revenue for labels in Europe (IFPI, April 2011) and we've driven more than $150 million of revenue to rights holders since our launch three years ago."

Grooveshark Is Now Facing $17 Billion In Damages...

Grooveshark had better hope their defense stands up in court. According to court documents obtained by Digital Music News early this morning, the latest lawsuit from Universal Music Group would saddle Grooveshark and its executives with more than $17 billion in damages. And, just like the Limewire case, that likely includes punishing personal liabilities against top Grooveshark employees.

The following is a list of specific Grooveshark executives and employees accused of personally uploading unauthorized tracks into the Grooveshark system. On the aggregate, UMG accuses the defendants of personally uploading 113,777 songs. The document was filed in the US District Court in Manhattan.

"Exhibit A"

> Employee, TItle, Minimum Number of Uploads
Sam Tarantino, CEO, 1,791
Paul Geller, SVP, 3,453
Benjamin Westermann-Clark, VP, 4,654
John Ashenden, VP, 9,195
Chanel Munezero, Software Engineer, 20,756
Nikola Arabadjiev, Quality Assurance, 40,243
Other Employees, 33,685

> Total: 113, 777
The math gets pretty outrageous, pretty quickly. Universal is seeking $150,000 per infringement, pushing the liability to roughly $17.1 billion.

But wait: Grooveshark is now denying all charges, particularly a reference to an anonymous comment in Digital Music News. That comment, allegedly from a Grooveshark employee, claims that the company actively and routinely uploading files and comprises a substantial chunk of the court complaint.

Grooveshark says it's all a fabrication. "Universal's claims rest almost entirely on an anonymous, blatantly false internet blog comment and Universal's gross mischaracterization of information that Grooveshark itself provided to Universal," Grooveshark general counsel Marshall Custer offered in a statement.

"While Universal has deliberately engaged the media prior to serving a copy of the Complaint on Grooveshark, Grooveshark intends to fight this battle before the Court, not in the press. Grooveshark welcomes the opportunity to present the facts to the Court and has full confidence that it will prevail in the litigation."

Pandora Is Now Profitable...

Wall Street remains mostly unimpressed, but by music industry standards, this is a moment. On Tuesday, Pandora revealed something remarkable: profitability, at least for a fleeting three months. During its latest quarterly wrap-up today, Pandora (P) reported a slim profit of $638,000, a reversal from a year-ago decline of $1.77 million.

The number translates into break-even on a per-share basis, and solidly beats a year-ago per-share loss of 15-cents. And, it was enough to beat analyst expectations, thanks to more-than-doubled revenues of $75 million.

That in turn was based on a monstrous total of 2.1 billion listening hours - over a mere three-month period (ending October 31st, which is technically 'Q3Y12' on Pandora's books).

All of which is giving Pandora a greater share of the US-based internet radio pie. But it also helps to validate Pandora's belief that on-demand platforms like Spotify are not creating a usage dent. In fact, the impact may be negligible: Pandora's active users now stand at 40 million according to the company, a 65 percent year-over-year gain.

On top of that, Pandora is starting to 'crush it' when it comes to US-based internet radio share.

On the grander stage, Pandora now claims a 4.3 percent share of overall radio listening (terrestrial + internet + whatever), more than double the piece from last year. All of which looks quite impressive, though shares actually declined on the news, thanks to a forecast that includes more losses in the current quarter. Unfortunately, this is one company that's lost its IPO sizzle, but not its prospects for long-term survival.

Roundup

As promised, Nickelback played a brief halftime performance during the Thanksgiving Day matchup between the Green Bay Packers and Detroit Lions. The gig, thankfully anti-climactic, featured a largely tepid response from Lions fans despite a massive pre-game protest.
Google is now widening its filters around Autocomplete and Instant search services to include a broader number of torrent and locker services. Torrentfreak first unearthed the widened net.
There's more turbulence surrounding Billboard. A number of top executives at Billboard owner Prometheus Media Group have now departed, mostly notable president of Brand Development Howard Applebaum. The developments were first reported by paidContent, which also pointed to the departure of COO Debi Chirichella. All of that is happening as Billboard itself undergoes a 'low-key' transition.
Spotify now has 2.5 million paying subscribers worldwide, according to stats shared by the company. That is up roughly 25 percent from September, though early information suggests a 40 percent (4 million) increase in overall users during the same period. Separately, the service suffered a multi-hour outage on Sunday, on both US and European services.
A lawsuit filed by 48 victims of the recent Indiana State Fair stage collapse has named Sugarland as a defendant. The suit claims the band had final say on whether to cancel the show, and could have easily prevented the crisis.
The Harry Fox Agency (HFA) has just renewed its mechanical licensing pact with PlayNetwork and its network of thousands of retail and restaurant clients.
Compass Group North America has now purchased a 49 percent share in AEG Facilities.
VEVO is now trying to renegotiate its advertising percentages with Google, according to the New York Post. The move comes ahead of a possible IPO.
Extreme enforcement measures may be killing SOPA on the House floor. The EFF characterizes the bill as "down but not out yet," a situation that could lead to more compromised legislation ahead.
Looks like China has a stronger appetite for smartphones than the US. According to the latest data from Strategy Analytics, shipments of smartphones in China last quarter approached 24 million, beating 23 million in the US.
Kanye West actually stole from Friedrich Nietzsche, not songwriter Vincent Peters, according to a creative legal defense now surfacing. Peters submitted a song that bears strong resemblance to 'Stronger,' which ultimately uses the Nietzsche axiom, 'that which does not kill me, makes me stronger.'

source: digital music news

Eerie Management is Proud to Present..

2011-11-22T07:27:00.000-08:00

We at Eerie are proud to present the brand new Nine Lies Video: "Nothin Left For Me"

We are also proud to present Nine Lies latest Mobile App:

Free Mobile Phone App for Nine Lies (Rock Band)

Presented by Eerie Management

Enjoy!

Latest News from the Industry

2011-11-15T11:24:00.000-08:00

"The Market Will Die If Grooveshark Continues..."

If you want to dismantle Grooveshark, then you'll probably need to dismantle the DMCA as well. Or, you can try this: in Denmark, anti-piracy group RettighedsAlliancen is now demanding that ISPs block Grooveshark, and pushing that demand through the local court system. That closely follows a similar action against the Pirate Bay in the region, an approach also being adopted in the UK.

This is still a developing situation. Early this morning, Grooveshark SVP Paul Geller told Digital Music News that nothing has been received by the company. No paperwork, warnings, not even a phone call. "We've received no communication from authorities in Denmark but continue to engage rights holders in the region," Geller relayed.

The question is whether this will stand up in court. For starters, there are certainly differences between the Pirate Bay and Grooveshark. The Pirate Bay is completely rogue, while Grooveshark is ostensibly playing by the rules - whether you hate those rules or not. And, apparently DMCA-style protocols exist in Denmark as well, though the consortium has found those procedures 'impossible' given how quickly content reappears.

With that in mind, RettighedsAlliancen is now taking an entirely different approach, and demanding that content only exist if pre-existing licensing deals allow it. "When you want to offer music on the Danish market, one must have an agreement with rightholders to do so," RettighedsAlliancen head Maria Fredenslund told Politken, as transcribed by Torrentfreak. "Grooveshark does not and has been completely uncooperative."

But there's fresh urgency being applied, as Grooveshark is now being viewed as a serious threat to upstarts like Spotify, which just launched in the country. "We are in a situation where the market will die if Grooveshark continues," Fredenslund continued.

More as it develops.

Album Sales Are Actually Down In 2011...

Sure, album unit sales are up this year, but the only reason that's happening is because prices are down. It's simple economics, and now, someone had the balls to say it out loud. "The lower pricing strategy is getting more music into the hands of consumers, though revenue from album sales remains lower than a year ago," wrote BusinessWeek, citing details from an interview with BigChampagne CEO Eric Garland.

Year-to-date, total album sales in the US stand at 255 million albums, up 3.23 percent compared to the same point last year. In turn, 2010 was 13 percent slower than 2009, yet somehow major labels are lightly jogging a victory lap. "We don't want to claim victory. But the music industry may be at a turning point," Vivendi CEO Jean-Bernard Levy stated in the same article.

Levy is dialing even deeper into the recording business with the purchase of EMI, so his commentary is unsurprising. But the deeper question is why major labels need to orchestrate this sort of charade. The cynical response is that overpaid label executives need any justification to keep the party going, and there are certainly nosebleed salaries throughout the big four-turning-three. Another reason is more wag-the-dog: tell enough reporters and consumers that sales are up, and eventually perception can blur into reality (or at least that's the theory).

The broader question surrounds the broader portfolio of recording assets. Vinyl is gaining, yet those modest gains are getting drowned by sinking CDs. But assets like a-la-carte downloads, subscription revenues, and even ringtones are all part of the picture here, despite the breadwinning nature of the well-bundled album.

Since 1998, CD Baby Has Paid $200 Million In Artist Royalties...

The company just shared the impressive threshold with Digital Music News, while also pointing to a clientele of 250,000 artists. The $200 million royalty number is cumulative, though this is a quickly-ramping figure: CD Baby is now paying approximately $40 million per year, and expects to hit the quarter-billion-mark sometime next year. And this is money paid to artists, not top-line revenues.

Sounds ginormous, though the significance of the figure can be debated. After all, this a payout amassed over a period of more than a decade, and average artist take-homes are typically slim. But there's something to be said for staying in this game: the music industry is where startups perish, yet CD Baby is now celebrating its Bar Mitzvah.

CD Baby president Brian Felsen is popping a slightly different champagne cork, one that celebrates a successful transition from a CD-based business to largely digital one. Warehousing and selling discs was its first service; MusicStore for Facebook one of its latest. "CD Baby was there in the beginning of the internet music boom and has capitalized on every evolution in technology to become the model for the new music business economy," Felsen relayed.

Unfortunately, history lessons don't pay the bills, and in 2011, DIY digital is an incredibly crowded field. And, others could be quick to out-boast CD Baby in the coming days and weeks. That includes Tunecore, whose simple iTunes digital distribution platform has proven to be a game-changer. In April, the company pointed to an artist base of 600,000, and a yearly, top-line revenue rate of nearly $170,000 (artists generally get 70 percent on an iTunes download).

That's a pissing match for later, though CD Baby is clearly roosted towards the top. In fact, out intel suggests that heavyweights like CD Baby, Tunecore, and ReverbNation are profitable, thanks to substantial scale. But it's a tough perch: the DIY space has never been more cluttered, and that super-saturation screams for a shrink-down of some sort. In fact, insiders will tell you that there are plenty of companies "just hanging on," and hoping for friendlier financial skies ahead.

We talked to CD Baby CEO Tony van Veen on this matter, who felt that consolidation was less of a near-term threat. "I don't feel any active push toward consolidation yet," van Veen shared. "There are a number of small players in the digital distribution space, and at some point some of them will start dropping out, which will create that opportunity for consolidation. However, the major players are stable, and I expect them to stay independent for the immediate future."

Roundup

* Apple has now launched its much-anticipated iTunes Match, the beginning of potentially new chapter in cloud-based music. As expected, iCloud users can upload 25,000 songs (iTunes-purchased or otherwise) for $24.99 a year. Early reviews suggest a somewhat clunky start, however.

* While we're on Apple, the company is now recalling first-generation nanos, based on overheating (and possibly mini-explosion) issues.

* Spotify expansions into Belgium, Austria, and Switzerland are imminent, according to paidContent.

* Mobile Backstage has just expanded its direct-to-fan platform to Android.

* eMusic is flexing its curatorial muscles again with Scenes, an iPad app that deep-dives into famous music scenes. Sounds fun; grab it here.

* And, more details are trickling ahead of Google Music's planned Wednesday launch. That is, a second, after-party invitation urges invitees to "Experience the World of T-Mobile & Google," suggesting a deeper partnership at launch.

* A small restructuring at Universal Music Publishing Group (UMPG). Among the shifts, Monti Olson is getting bumped to EVP and head of Pop & Rock Music and Creative. And David Kokakis moves to SVP, Head of Business & Legal Affairs and Business Development. Tom Sturges (EVP/head of Creative) and Robert Allen (SVP, head of Business & Legal Affairs) are both leaving.

Source: Digital Music News

Latest News from the Industry

2011-11-14T08:37:00.001-08:00

Impala: The EMI Acquisition Will Be 'Blocked Outright'...

There's just one little problem with the planned purchases of EMI: they might not happen! According to a stern email just sent to Digital Music News by indie consortium Impala, a combination of Universal Music Group and EMI is highly likely to catch the ire of European regulators. "Given that Brussels has taken a previous decision that Universal should not be any bigger, we would expect the sale to Universal to be blocked outright, even if it offers to increase the divestments it is prepared to make," said Helen Smith, Executive Chair of IMPALA. "The same would apply to Sony if it buys EMI publishing."

This is Impala's moment to stir a tsunami, and Smith pointed to a board meeting in less than 10 days. "Impala takes the view that even if Universal proposes to increase the £500 million divestments it is prepared to make, the deal will not be accepted," Smith continued.

But wait: who cares about Impala, anyway? Universal Music Group, Citigroup, Sony, and a bunch of investors that include David Geffen, that's who. Impala is the group that successfully forced a second review of the Sony BMG joint venture in 2007, a massive distraction of paperwork, formalities, and government meetings. The Sony BMG carriage pushed through those muddied tracks, though ultimately, the ill-fated handshake was canceled for broader reasons.

Now, Impala is threatening a similar muscle-flex. And before the ink was dry on the EMI negotiation, Impala promised to issue a strong challenge. "The last time the European Commission looked at Universal, it ordered the company to sell off assets to cut it down to an acceptable size," the group continued. "Since that decision, Universal has grown, which makes it even less likely that the regulators would accept any new acquisitions.

There's another piece of luggage in the baggage set: Live Nation. After Universal Music announced a fairly substantial tie-up with the concert giant, Impala issued formal complaints with the European Commission. So we'll just add this to the pile.

EMI Says There Won't Be Any 'Transaction-Related Layoffs'...

Great news: you just might have a job come Christmas, after all. As Citigroup now shifts its attention towards transfering the deeds, CEO-for-now Roger Faxon assured the troops that their jobs were safe.

That is, for at least a few more weeks, or as long as Faxon himself still has a gig. "During this transition period it is business as usual for us," Faxon emailed staffers worldwide. "That means we will continue to implement our current plans and drive the performance of the business. However, to be very clear we are not planning any transaction-related layoffs, in anticipation of the completion."

Meanwhile, more details and doubts are creeping into the discussion. Some are seriously questioning whether European regulators will allow the largest major label - ie, Universal Music Group - to get even bigger, at least without a protracted review and/or serious concessions. And, indie consortium Impala has pretty overt designs to destroy this deal.

Faxon noted that both deals will face regulatory reviews. But publishing could fly under-the-radar and receive a rubber-stamp.

And on the topic of EMI Music Publishing, more details on the Sony/ATV-led consortium of investors emerged ahead of the weekend. Perhaps most interestingly, the seemingly-retired billionaire David Geffen and the Michael Jackson estate are part of the consortium, though others include Mubadala Development Company, Jynwel Capital Limited, the Blackstone Group's GSO Capital Partners.

Collectively, that investment powerhouse helped to outbid BMG Rights Management with a $2.2 billion bid, and win one of the most valuable collections of publishing assets in the world. "Their willingness to step up to Citi's valuation of the business won the day," Faxon said.

Study: FM Radio Is Still the Biggest Source for Music Discovery...

One of the oldest platforms is still the biggest vehicle for new music discovery, even among more dedicated music fans. In a just-released joint study from NPD Group and NARM, FM (and AM) radio consistently emerged as the most important place for discovery, with word-of-mouth falling second.

You'd think platforms like Pandora and places like Pitchfork would beat out local stations and their repetitive playlists, at least among more dedicated music fans. But among the most dialed-in, 'committed' music fans, radio was first, then word-of-mouth, then places like YouTube. This is a group that spends an average of $267 per year, plus an additional $139 on live shows.

View the Committed breakdown

Streaming sources like Pandora, VEVO, and YouTube are definitely in the picture, and a continuing expansion into apps and smartphones will help. Perhaps unsurprisingly, Spotify and iTunes are nowhere to be found on this list.

The story gets even more traditional with another group, an older and more 'comfortable' segment often raised on radio. Here, it's all about broadcast and word-of-mouth, with a less tech-heavy top-ten.

View the Comfortable breakdown

Turns out radio is still a gigantic bullhorn, but also a fairly dumb one. Instead of stirring excited fans to action, most have no idea what they just listened to. Instead, they're listening to ads, a deejay, or the next song. "The lack of 'back announcing' is a pain point that inhibits consumers of all grades from shopping more," the researchers relayed. "They don't know exactly what to shop for."

Roundup

* Vivendi is now addressing rumors that it only plans to fatten Universal Music Group in order to flip it to the highest bidder. "We haven't grown Universal Music with two major transactions [BMG Music Publishing in 2006 and EMI] just to spin it off," Vivendi chief Jean-Bernard Levy told the Financial Times. Levy also pointed to plans to save 100 million pounds ($161 million) through the EMI consolidation, while simultaneously boosting spending on newer artists.

* Jay-Z is now managing a PR mini-disaster. After printing Occupy Wall Street-inspired shirts, it was revealed that none of the profits were going back to the protest effort itself. The Rocawear shirts, modified to read 'Occupy All Streets,' have been pulled from the site.

* Google has mailed invites to a Google Music splash on Wednesday in Los Angeles, though Universal Music Group appears to be the only licensed major. EMI would theoretically fall under the UMG umbrella, though the recent acquisition isn't yet approved or finalized. Warner Music Group and Sony Music Entertainment are still not licensed - and probably won't be finalized by Wednesday - according to multiple sources.

* The Federal Trade Commission (FTC) is now expected to announce a privacy-related agreement with Facebook, one that could require the network to notify users when any terms related to data-sharing change.

* What's more lucrative than an iTunes download for Coldplay? A full-blown stadium tour, that's what. The band has now announced a number of dates for its summer 2012 stadium tour, starting May 29th at Ricoh Stadium in Coventry.

Source: Digital Music News

Flash - EMI Sold!

2011-11-11T09:41:00.001-08:00

SOLD: Citigroup Unloads Both EMI Units; $4.1 Billion...

It could be a very busy Friday. Early this morning, word 'leaked' that EMI seller Citigroup has picked a pair of winners.

On the recording side, Universal Music Group owner Vivendi has agreed to purchase EMI for $1.9 billion (1.2 billion pounds). That is a substantial premium over the estimated price tag of between $1.2 and $1.5 billion, and enough to outdo Warner Music Group owner Access Industries.

On the publishing side, the buyer will be Sony/ATV, with a somewhat-similar price tag of $2.2 billion. That brings the total to $4.1 billion, considered far loftier than earlier estimations and potentially the result of some great salesmanship.

The information is now being reported by most major outlets, including the Wall Street Journal, New York Times, Guardian, and others. Citigroup, which seized EMI Group and is executing the sale, is expected to also announce the sale of both units later today. These deals look fairly cooked, barring some late-stage development.

Universal Music Group is the largest of the majors, and the absorption of EMI's recording collection only makes it bigger. The question now is whether regulators take notice, and indie consortium Impala has already announced its intentions to fight the combination. The situation in the US seems far friendlier, and will probably involve a light review at most.

More ahead...

I Run a Digital Distributor. And Several of My Labels Are Requesting Spotify Take-Downs...

The following guest post comes from Martijn Tjho, CEO of Amsterdam-based digital distribution platform FUGA. The platform has a number of big clients, including Ultra, Armada, and Black Hole Recordings. Tijho has candidly pointed us to a growing problem for Spotify: growing attrition among member labels, many of whom are quietly (and confidentially) leaving.

"While participating in a Panel Discussion during ADE [Amsterdam Dance Event] this year, seated next to Stuart Knight from Toolroom Records (a customer of FUGA). We discussed services like Spotify and praised them for their growth. Anticipating the 'label' business would grow at the same pace. However, over the last couple of weeks, I've seen a shift indicating it could be more complicated, causing me to re-evaluate my position on the subject or at least do more research.

The reason for my doubt is directly related to several requests from our labels to perform a 'Take Down' in FUGA. We use this feature in FUGA to remove our customer's entire catalog or parts thereof from Digital Service Providers. The label executives (who shall remain nameless), mentioned that the reason for their take down directly corresponded to the lowering of revenues through iTunes and other a la carte services.

A couple of months ago, while in London I met with a former major label CEO and he told me that he thought "subscription services" are a bit like what book/music clubs were in the past, serving a particular niche. He believed that these services would eventually end up having a small, but important market share. At the time of our meeting, I told him I thought he was wrong and a bit old-fashioned in his thinking with regards to the digital music space. Most people who know me, know that I cannot hide my passion for digital music nor my frustration with Major record label executives. However, those people also know that when I'm wrong, I have no problem admitting it and in this instance, I may have been wrong in my judgment towards my ex-Major label exec friend. Actually glad that I paid for the coffee that day!

I still think it's a bit too early to know for sure what is to come with regards to current developments, but definitely worthwhile to monitor closely. I'll know better if I start to see other FUGA customers experiencing the same difficulties. Is more than just a growing pain? I don't know yet, but I do know that either way, labels must begin to develop a product life-cycle strategy that is built around the release of a digital product, IMHO I think it should look something like this:

1. New Release Introduction

A new album, EP, track, bundle or whatever product configuration based on the artistic efforts of the musicians is introduced in the Marketplace, on a very exclusive basis in partnership with one or more Digital Music Services. In return the product is featured, advertised and a "buzz" is created for the right target audiences. This period is not aimed at profit and may even cause losses, but fully aimed at getting the right people to "hear" and "like" what is being released. From this point the "buzz" is created, with no guarantees of whether or not it will work, just the possibility that it may and if it does will generate a huge profit.

2. Sales Growth

The product distribution is ramped up, but still not available everywhere. Advertising/promotion efforts start to pay off and the products gain traction. As a result sales increase, the margins are still high (exclusive product) and the product becomes more and more popular as the demand grows.

3. Maturity

This is the time when you can broaden distribution even more, ramp up promotion to the max and your product becomes fully established. At this stage competition of other products will become more fierce and pricing becomes an issue, margins get smaller, but volumes are higher, so there still is a good business.

4. Decline

Sales start to decline, as other products become more popular and saturation has taken place. This is the time to release the product on subscription based music services/clubs. Revenue and profits drop as a result of the low ARPL (Average Revenue Per Listener) advertising is only done on these services and the product becomes a true back catalog item. (This will be true if these streaming services actually cannibalize a la carte revenues).

5. Back Catalog Usage

Now it's time to license your product or the individual tracks to compilation creators and other businesses aimed at (inexpensive) mass usage of your music. This is where the "long-tail" promise may materialize.

Unlike any other products, the music product life-cycle never really ends. Changes may occur as the urge to listen to a particular product or song slowly fades away, eventually being replaced by new music.

When people are in a certain mood or want to (re)create a mood, they usually want to listen to the same music again. By having a subscription to Rdio, Spotify or any other streaming service provider with the "we have everything" concept will allow that customer the ability to play that song over and over again in order to recreate that mood, earning money for the song owner(s) every time they do.

Is the industry still too fixated on unit sales and fear the shift to a model based on access? Are the streaming services indeed not more then a subscription club and should they be treated as such?

After speaking to a few of my other clients over the last couple of days on this subject, we all agree there is still a lot to learn. For instance, in the territories where Spotify has matured a bit more (like Sweden, for example), the revenue derived from Spotify is becoming extremely significant.

So on the one hand I have clients who believe Spotify is cannibalizing their iTunes and a la carte revenue; yet, on the other hand clients who also admit experiencing no downfall whatsoever in their iTunes sales. In some cases arguing that Spotify has actually boosted their iTunes sales substantially.

I guess in the end what is truly important when entering into unknown territory like the digital music space is that we share our experiences good or bad with each other. The beauty of the internet is that we can share information on a global scale and by doing so drive growth based on facts, instead of blocking growth based on fear."

Pandora CTO: Majority of Americans Pay $0 for Music...

How many people are actually reaching for their wallets to enjoy music - at least once in a given year? The answer could be depressingly slim, according to talking points jotted down by TechCrunch. "Over half of the US doesn't pay anything for music each year," estimated Pandora CTO Tom Conrad at GigaOm's Roadmap Conference. On top of that, another 40 percent fork over about $15 a year, perhaps the cost of an album with a few a-la-carte downloads tossed in.

Which means less than 10 percent of US-based consumers shell out more than $15 for music in a typical year, according to Conrad's estimation. And, we've actually heard far worse: the running number from the IFPI, for example, is that 19 out of 20 downloads are pirated, for example. And, research surveys have shown that typical iPod owners have just a handful of paid downloads in their devices - at most.

Sounds like Pandora is helping that situation, especially since every streamed song has a royalty payment attached to it. That makes Pandora one of the good guys, though Universal Music Group head of digital Rob Wells recently broiled the company by pointing to a cannibalizing effect. "I don't think they're doing the music or recording industry any favors," Wells attacked, while somehow contrasting that against a "great" Spotify.

Wells further advised Pandora to "bolt on" a premium service, though earlier, founder Tim Westergren candidly noted that consumer appetite for paid add-ons is weak.

Grandpa, What's a Non-Interactive, Pre-Configured Album?

Think the album is dead? Not so fast. Maybe we just need to update the concept and move it into a new hardware set. That's the core idea behind eVinyl, an LA-based garage focused on building a new format for music. In one elevator pitch or less, eVinyl is a cross between an ebook and a traditional record.

It might sound like a format Frankenstein, but try to imagine a future where artists aren't selling collections, but complex virtual experiences that contain those collections. In this model, fans would listen to the music while exploring highly interactive musical and visual content, one that develops a story around the music. And, artists would create a one-stop shop for all that's monetized.

The idea - launching in a few weeks - would also preserve everything that's right with the traditional LP. And eVinyl wants to bring back all the elements that made albums a collectible object in the first place: liner notes, cover art, and lyrics, while adding everything that new powerful devices like the iPad allow. That includes social sharing, and exclusive and expandable content like interviews, video, even concert tickets. Artists could conduct Skype chats with the fans directly through eVinyl, or even serve live concert streams or afterparty cams.

The idea is to be more than just a mobile app on steroids. Technologically, eVinyls are built in the 'EPUB3' format, which enables cross-format compatibility across Kindles, Nooks, and iPads. eVinyl wants to create a more universal format, a more structured and permanent presence in fan devices. And, artists would also be able to make changes and instantly add content into their customized eVinyl releases.

There's also the issue of all that wasted time, especially when disconnected. Ever observed people with their mobile devices on trains or planes, just killing time scrolling their library obsessively? These are disconnected moments, and potentially a fresh opportunity to talk to fans. Instead of scrolling, they could be spending time with the lyrics, the pictures, and the story around a song. And, all the while becoming less of a casual listener and more of that oft-mythologized 'engaged fan'.

Roundup

There's been an aftershock or two at Warner Music Group. Just moments after Lyor Cohen triggered a number of changes across the global organization, Warner/Chappell CFO Brian Roberts has been elevated to EVP/CFO at the broader WMG. Roberts replaces Steve Macri, effective January 1st.
SoundCloud has just released its Android 2.0 app, a move that updates and aligns with the iOS feature set.
The British Treasury has sealed a longtime loophole that allowed retailers based in the Channel Islands to avoid a costly VAT charge. The break was long protested by mainland music retailers, and will end April 1st.
Throwing a partay? Then you might want to check out Spartify, an online app that allows attendees to collectively build a Spotify playlist. The concept is powered by the Spotify API, and conceptualized at the latest Music Hack Day Boston.
Pandora, Rhapsody, and Twitter are just some of the Android apps available on the Kindle Fire, according to an Amazon announcement on Thursday. Early buyers will be 'opening their boxes' starting next week.
Rumblefish has just scored a licensing deal with APM Music, the largest production library and a joint venture between EMI Music Publishing and Universal Music Publishing. The deal positions the substantial body of work into the consumer arena.

Source: Digital Music News

Latest News from the Industry

2011-11-11T06:51:00.001-08:00

For Every Concert Link Shared on Facebook, at Least $2 In Ticketing Revenue Is Generated...

Live Nation suffered another attendance decline last quarter, and that was compared to 2010 - their worst year ever! But can Facebook come to the rescue? Maybe: according to a tranche of music-related stats released by 'the social network,' every shared concert link generates an average of at least $2 in extra ticketing cash.

And, sometimes as much as $6, depending on the ticketing provider. "Ticketing sites like Eventbrite, Ticketmaster, and Ticketfly have all have seen between $2 and $6 in direct ticket sales for every link shared on Facebook," Facebook's Casey Muller explained.

We've seen indications of this before. Of all the various expansions and experiments underway, Ticketmaster CEO Nathan Hubbard clearly pointed to social networks - ie, Facebook - as the biggest gainer in a recent interview. In a separate discussion, deadmau5 drew a fairly direct connection between his Facebook friend totals and attendance at shows.

The reason is simple: concerts are best enjoyed with friends, just like sporting events, parties, and road trips. "The entire concert experience is social, and it's clear that improving any dimension of music discovery can impact growth and monetization," Muller continued.

Of course, music - more broadly speaking - is also quite social, though the picture gets a little more complicated on things like recordings. There are private pleasures, and solitary listening is sacred to many. But there's nothing complicated about the gains enjoyed by a variety of Open Graph partners recently splashed at f8. Overall, the musical bear-hug has stimulated 1.5 billion shares in a matter of weeks, according to the company.

And, no one has felt the bump as much as Spotify, thanks to its spot at the front of the Open Graph line. According to app-specific data compiled by Inside Facebook, Spotify enjoyed a doubling of daily average users (DAU) to 2.4 million. Unfortunately, that only represents a small retention of the monstrous, post-f8 bounce, and the ultimate value for artists remains an open question.

If You're Not Ditching Flash... What ARE You Doing?

Once upon a time, even Flash intros on artist sites were cool! But maybe that was the beginning of a slow retreat. Eventually intros were viewed as time-consuming and crusty, especially for people that just wanted tour updates and a pic.

'Flash-forward' to 2011, and the feeling is that HTML5 is ready for prime time, especially given the surge of mobile consumption. Blame Steve Jobs for twisting the knife, though maybe it was just that inexorable march towards obsolescence that almost every 'wowee' technology faces. On Wednesday, Adobe announced that it would be effectively ditching Flash development on mobile platforms, perhaps the ultimate white flag to Apple. "We will no longer continue to develop the Flash Player in the browser to work with new mobile device configurations (chipset, browser, OS version, etc.) following the upcoming release of Flash Player 11.1 for Android and Blackberry PlayBook," Adobe executive Danny Winokur officially disclosed.

But the Flash exodus is already well underway, with some of the biggest and most important digital music companies making the switch. That includes Pandora, whose recent march away from Flash and towards HTML5 was hailed as a ray of light by the technorati. "That's right, another site once completely reliant on Flash is breaking the addiction," gushed TechCrunch journalist MG Siegler. "Unlike the old site, where elements would open in new windows or clunky Flash overlays, everything is fluidly displayed using HTML."

And there's another monstrous player dumping Flash: Soundcloud. Just last week, the go-to site for sharing audio also took the HTML5 plunge, and people, frankly, loved it. "I have been a huge fan of Soundcloud since the company launched several years ago," producer Paul Loeb told Digital Music News this week. "The one drawback, however, is that the widgets were Flash-based, which means they didn't load on iPhones, iPads, and while Android users will say that Flash works fine on their phones - it doesn't. The experience was slow, and often crashed the browser."

Which makes the Soundcloud move the latest 'game-changer,' to invoke a cliche. But if Soundcloud wants to become the default standard in sound storage, embedding and sharing, this could help to cement that position. And, we've heard good things about this transition, so far. Loeb downed "a gallon of coffee," pulled an all-nighter, and transitioned all of his embeds with great results. "The code change is pretty straightforward," he said. "You still use the same Soundcloud 'track ID,' but the new version is much more clean and simple!"
Eerie Management will be dropping Flash shortly, watch this pace for more!

Want to Sell a Ton of Albums? Try Death...

It's one of the dirtiest open secrets in the music business, and a truism rarely admitted by execs. But the death of an artist almost always produces a huge sales bounce, especially if that death was tragic and premature. And most of the time, labels are ready-and-willing to cash in -- with the appropriate level of deference, of course.

But why does a sudden death make fans open their wallets with abandon? There are deeper forces at work here, including the need to memorialize and remember, to enshrine and recast an individual in a glowing light. Perhaps there's no greater example of this than Michael Jackson, though other 'beneficiaries' include Amy Winehouse, Tupac Shakur, Nirvana, and Notorious B.I.G., just to name a few.

And it all works in the label's (and estate's, and publisher's) favor. There's even an old, dirty story about this very thing. "Can't we just kill Jimi again?" one label boss reportedly joked back in the day, at least according to industry folklore.

The principle seems to apply to everyone, including Heavy D. Can you remember the last time you heard two back-to-back Heavy D songs, at least after 1996? Well, just hours after his untimely death, KMEL in San Francisco was playing a D marathon, while also introducing younger listeners to an influential figure. "He put Diddy in the game... there would be no Craig Mack," the conversation went. It was the perfect spark for the well-oiled discovery machine known as the web, which not only offers Heavy D's full-and-complete collection thousands of times over, but also innumerable buying opportunities to those so inclined.

But when is this just too much, and just blatant cash-mongering? The latest Amy Winehouse album seems a bit suspect, as did the endless string of Tupac posthumous releases (was there really that much leftover material, Dave Chappelle famously asked?) In the end, die-hard fans may be the first to get turned off.

Roundup

* Warner Music Group head of recorded music Lyor Cohen is now "flattening" the global organization, a move designed to create cleaner reporting lines. The move means elevated, global positions for a number of key executives, with Warner Music Europe CEO John Reid exiting.

* The House Judiciary is planning a full committee meeting on SOPA on November 16th (more details here).

* And, here's a formula for your major label marketing team: New Album Release + Tawdry S%x Scandal + Massive Press Exposure of Said Scandal = #1 Debut. At least that was the case for Justin Bieber, whose Under the Mistletoe just scored a chart-topping 210,000 units in the US, according to first week stats from Nielsen Soundscan.

* There's more jockeying over EMI, with the recording unit drawing the most heat.   That's a process that now appears to have UMG owner Vivendi and WMG owner Access Industries back at the table, with a valuation between roughly $1.2 and $1.5 billion according to the New York Times. Citigroup seems resigned to a split sale of the recording and publishing units, and could announce something within the next few days.

* Nimbit has just added a 'Spotlight' feature to their recently-released Storefronts for Facebook, a way for artists to showcase select material.

* And, the Harry Fox Agency (HFA) has just signed a licensing agreement with Retail Radio, a North America-based retail entertainment and 'sensory branding' service.

source: Paul Resnikoff - Digital Music News

Latest News from the Industry

2011-11-08T07:39:00.000-08:00

Doug Morris: The Music Business Is All About Making Hits...

In case you were wondering about the approach at Sony Music Entertainment, or any other major label, for that matter. "Our core focus still needs to be developing hits," Sony Music CEO Doug Morris just told the New York Times. "That's the only constant amidst all the change. So if you don't get that right it doesn't matter how revolutionary the distribution model is or how many revenue streams you have. You still have to have the hits."

The philosophy explains an expensive mega-deal involving successful pop producer Dr. Luke. And it also reaffirms the more limited strategy currently being employed by the majors. The game plan typically involves heavily-produced tracks and extremely heavy, mainstream radio promotion.

And, a very top-heavy balance sheet, especially when superstars are involved. NPR recently pegged the cost of creating a recent Rihanna song at more than $1,078,000, and insiders continue to point to a cash-lubricated radio promotional pipeline.

Unfortunately for artists, this also seems to spell a loss of creative control. Lupe Fiasco has been extremely vocal on that point, blaming his label Atlantic (WMG) for meddling and completely altering his creative vision. But all that knob-twiddling happened for a reason: Fiasco still enjoys mainstream radio play and experienced fairly healthy sales on Lasers, most likely because of these exact compromises.

All of which begs the question: is a major label deal really for you? South Africa-based Die Antwoord, which recently announced a break-away from Interscope, has decided that the answer to that question is no. "So anyway, Interscope offered us a bunch of money again to release our new album TEN$ION," the band blogged. "But this time, they also tried to get involved with our music, to try and make us sound like everyone else out there at the moment. So we said: 'U know what, rather hang on to your money, buy yourself something nice... we gonna do our own thing. Bye bye.'"

Henry Rollins Defends the Punk Rock Sellout...

"These bands are not being co-opted at all," legendary punk/rage-rocker Henry Rollins exclaimed on 'Teeing Off'. "Selling out is making the record you're told to make instead of the record you want to make.

"Do you have any idea what some of these bands went through to make that music? The fact that there might be some money for them all these years later is great. You think that paycheck is in any way a slight to their integrity?

"Are you f--king kidding me? Pay them. Pay them double. Pay them now. It's about f--king time!"

Top UMG Executive: Spotify Is Helping the Industry, Pandora Is Hurting It...

So who's adding revenue, and who's cannibalizing it? Here's what Universal Music Group's head of Digital Business Rob Wells had to say about Spotify and Pandora in a recent interview with Topspin CEO Ian Rogers. This is one of the top-ranked guys at the largest major label.

> On Spotify:
"I'm a fan of [Spotify's] model, I'm not just a fan of that company, although they're all great guys, they've got great tech, great engineering, I mean the Facebook integration is amazing. But I'm a fan of that model, and why am I a fan of that model? Because that's clearly what consumers - some consumers - want to do.

There's massive debate raging throughout the whole of the industry about does it cannibalize, what are artists doing holding back from these services...

...but what if it's incremental revenue and not cannibalistic revenue? So this is all additional money."

> On Pandora:
"The disappointing thing with Pandora is that it's a very dumb service, it's a very passive service. They kind of spoonfeed their consumers music...

...my view is they should have more to engage consumers especially in the opportunity of upsell. They need to bolt on something like a premium subscription service, and then it's interesting.

They're doing something right, but I don't think they're doing the music or the recording industry any favors by doing what they do. Yes they pass royalties, but if you ask any of the other business partners, who - with the exception of YouTube - who is cannibalizing their business, they'll probably turn around and say Pandora."

Rokker.fm: It's Part Spotify, Part Grooveshark, & Totally YouTube...

And the latest musical Frankenstein on the loose? Meet Rokker.fm, a web-based application that stitches pieces of Spotify, Grooveshark, and YouTube together into something that walks. It's ugly, but the basic idea behind Rokker.fm is to give Youtube's massive music video collection a more manageable interface.

The Frankenstein analogy is fitting. Rokker has nowhere near Spotify's level of sophistication and ease-of-use, and Grooveshark is miles ahead in web-based music indexing and management. But Rokker is also an early-stage beta, one with a pretty powerful idea in mind. After all, if YouTube is arguably the best collection of multimedia musical content online, why not tame the experience with a great interface?

It's a piping-hot challenge, though Rokker's solution is unfortunately half-baked. This is more 'alpha' than 'beta,' though at least the basic elements are in place. Rokker.fm has a lot of Spotify's hallmarks in a web-based app, including on-demand tracks, playlisting, featured artists, a massive library, and even ads. It also offers options like purchasable downloads (through Amazon MP3), and plans to deliver iOS, Android and other smartphone apps.

Rokker has a slightly different user interface than Grooveshark, though it imitates its web-based approach. Still, Rokker is easily bested by the more experienced 'shark. Rokker's Chrome version breaks all sorts of usability rules, with navigational dead-ends, deadlinks, and weird side-scrolls among the gaffes. But look past these very rough edges, and you'll probably discover a video or two you never knew existed. Plus a track or three that Spotify couldn't license.

Actually, this isn't the first time something like this has been attempted. But the question is whether Rokker has enough engineering know-how, perseverance, and funding to make this into a competitive force that people can't stop talking about. YouTube is chaotic; taming that chaos is another story: Rokker has lots of variable-quality tracks, missing tracks, bad videos, incorrect videos, and blocked videos.

That's right: at least one major label - Universal Music Group - doesn't like this type of API-grabbing. Which goes to show - licensing's a b--ch, with or without $200 million in tow.

Roundup

Dr. Conrad Murray has been found guilty of involuntary manslaughter in the death of Michael Jackson, according to a verdict announced Monday. Murray is accused of violating a range of medical practices while prescribing and administering Propofol.

Google+ is slowly opening pages to bands, businesses and organizations. Groups like All American Rejects are the early, invite-only takers, though eventually, everyone will be able to join.

What's better than Latin Music? Why Latin Music plus Dewars Blended Scotch, now a branding partner for Universal Music Latin Entertainment surrounding the Latin Music Awards on November 10th.

The photographer assaulted by Odd Future's 'Left Brain' is now pressing charges. The photographer, Amy Harris, was forcefully smacked while snapping photos at the Voodoo Experience in New Orleans.

Best Buy is now shuttering its UK-based megastores, and instead shifting its focus towards smaller shops. The megastores were one part of a joint project involving Carphone Warehouse.

Sirius XM Radio chairman Mel Karmazin has publicly backed his decision to pursue direct licenses, a shift away from SoundExchange. "We think rights holders should benefit from a more competitive and open environment created by inviting individual labels to set their own value on their content rather than having to follow the industry collective," Karmazin told the New York Times.

Drake was quite philosophical after a pair of songs from his upcoming album leaked. "I am not sure if the album leaked," Drake tweeted. "But if it did thank god it doesn't happen a month early anymore.... Listen, enjoy it, buy it if you like it... and take care until next time."

Ivan Gavin has been named COO at Universal Republic & Island Def Jam, according to group chairman and CEO Barry Weiss.

And, eBay is now launching a celebrity charity destination at ebay.com/charity, with Katy Perry one of the initial takers.

Source: Paul Resnikoff - Digital Music News

Latest News from the Industry

2011-11-07T10:02:00.000-08:00

And Now, Chuck D Is 'Complicating' the Sale of EMI...

You can almost hear "Fight the Power" playing in the background. Because more than twenty years after that song broke, D is not only bringing serious heat to Universal Music Group, but he's also complicating the sales process for EMI owner Citigroup, according to sources willing to discuss the matter.

The reason is that Chuck D - whose real name is Carlton Douglas Ridenhour - is at the forefront of an early-stage class action lawsuit against Universal Music Group, one that seeks to dramatically increase artist payouts on digital assets. And if victorious, D - and others similarly situated - could produce a royalty windfall estimated in the "hundreds of millions" of dollars. That, according to sources, would subsequently produce a huge potential liability for the other majors, including Warner Music Group, Sony Music Entertainment, and the as-yet-unsold EMI Music.

It's a vicious and interlinked scenario that's being hand-delivered to EMI's doorstep. And according to our sources in M&A and financial firms with ties to this deal, only the possibility of a catastrophe is what matters. "It absolutely has ramifications for [owner] Citi[group], because any buyer will demand a provision that gives them some comfort on a sudden devaluation of the assets in question," one source told us. "This [protection] could be accomplished through mechanisms like graduated payments, it could be done through clawbacks or sunsetting."

Which are all basically mechanisms for protecting the buyer from looming cracks in the foundation. Still, this may not affect the actual price tag, according to an investor in the private equity space. "If you're an interested buyer, then you've done the diligence and you know that what you're buying is potentially volatile in value," the source noted. "But as long as you've insured yourself against that event, you're still a buyer, but it's a layer of complication."

But wait: are we getting ahead of ourselves, here? After all, the Chuck D complaint is only days old - and does this case have a chance? Actually, the answer is a serious yes, according to the music attorneys we've spoken to. "Chuck D has a good chance of succeeding," New York-based music attorney Steve Gordon told Digital Music News this afternoon. "Each case is fact-specific and invariably depends on each contract and is thus open to interpretation by the court. But I think the impact of this case as well as the Rob Zombie and Rick James cases taken as a whole will wildly impact future case holdings within the industry."

More Than 42,000 Detroit Lions Fans Are Now Protesting the Nickelback Halftime Performance...

...and counting. As of this morning, more than 42,000 fans had actively protested a scheduled halftime performance by Nickelback on change.org, and that's just the ones logging in. The number is more than double the count heading into the weekend, and part of an anti-Nickelback groundswell from a very tough Motown crowd.

The gig is scheduled for the Lions' Thanksgiving Day game against the Green Bay Packers, a major regional rivalry on Detroit's home turf. "I am a 30-plus year season ticket holder with a vow never to be seen at a Nickelback show," fan Scott Brown wrote. "I shouldn't have to choose between the Lions and Nickelback."

"Haven't the good people of Detroit been through enough?" cried fan Eric Ransom.

The question now is whether the Lions organization will respond to such an obvious groundswell. And, if Nickelback pushes through and performs, could this become a disastrous situation? We've asked the Lions organization if the performance is still scheduled, and will keep you posted.

Meanwhile, the comedy of the situation hasn't been lost on Detroit native Mayer Hawthorne, who is now actively campaigning for the halftime slot. Be careful what you wish for!

Big Mistake? Pandora Currently Has No Plans to Integrate Into Facebook...

A Spotify-style Facebook integration is not on the roadmap for Pandora -- and may never be -- according to founder Tim Westergren. Instead, the company is pushing a strategy that prioritizes Pandora's homegrown social networking tools, while still enabling some push updates and connectivity options through Facebook, Twitter, and email. "We're going to watch how [those tools are] embraced and what listeners tell us and that will sort of dictate how do we evolve it over time," Westergren recently told Forbes.

And, that's not right now. "Since Spotify isn't seen (or at least acknowledged) as a threat, Westergren says he hasn't felt pressure to integrate Pandora with Facebook or other social platforms in order to keep it competitive," relayed Forbes journalist Jeff Bercovici. "Instead, it's pushing its own suite of social features."

That wait-and-see gives a huge theoretical head-start to Spotify, whose front-of-the-line Facebook handshake is just getting started. Currently, Spotify listening habits are being saturated throughout Facebook, with endless feedback loops the natural result.

But Westergren doesn't seem alarmed. Quite the contrary: the guy who brought personalized radio to the doorstep of the mainstream sees fundamental differences that favor Pandora. "Fundamentally an on-demand service is complementary to radio," Westergren said, while further estimating that 80 percent of music listening is non-interactive, radio-style listening, with 20 percent on-demand. "I don't [see that changing] in really a substantial way."

But what are these Pandora networking tools, anyway? As part of its HTML5-based facelift a few months ago, Pandora introduced a number of sharing and profile capabilities. That's available to a community of more than 100 million, though the question now is whether the world is too obsessed with their Facebook profiles to notice -- or, at least engage in a serious way.

British Labels to ISPs: Block the Pirate Bay, or We're Suing...

Can piracy be blocked, at least effectively? Tough question, though maybe Britain is the perfect petri dish. This all started when the High Court in London ordered BT to block Newzbin2, a site known for indexing copyrighted content. Now, it's time for a much bigger fish: ahead of the weekend, British label group BPI demanded, in no uncertain terms, that BT block access to the Pirate Bay, or face legal repercussions. BT is the largest ISP in the country, and potentially the first domino in this fight.

This is a showdown, and the labels aren't asking nicely. "Building on the Newzbin2 precedent, music industry trade body the BPI, supported by the UK creative industries, has written to BT to ask it to block the Pirate Bay voluntarily," the trade group stated. "If BT will not agree to block voluntarily, then it has been asked to consent to a court order."

Which is exactly what BT will do: according to paidContent, the country's largest ISP will wait for a court order to tell them to start filtering. It's all part of a costly legal fight, though part of a desperate defense against what has been termed a 'web censorship state'. If the order is obtained, BT would not only be forced to block access to the Pirate Bay, but most likely be required to block inevitable workarounds, mirrors, and other access points. And, they'd have to incur the costs of these blocks, while potentially dealing with churn from unhappy subscribers.

Tough, says the BPI, which is being joined in the action by a consortium that appears to include the Motion Picture Association (MPA). Outside of the UK, ISPs in countries like Denmark, Finland and Italy have also been forced to block Pirate Bay access. BT currently counts about six million subscribers, or roughly 1 in 10 British broadband users.

Fox Admits That 'X Factor' Contestants Are Lip-Syncing...

Is lip-syncing okay... for a singing contest? Turns out there's a Milli Vanilli situation over at 'The X Factor,' which just got outed for allowing contestants to lip-sync on stage.

We're not sure how widespread this is, though the following clip clearly shows contestant LeRoy Bell 'singing' before his lips actually move. In fact, the mic isn't even raised to his lips when the part begins.

> Check it out: http://digitalmusicnews.com/permalink/2011/111104lipsynching
This is not an isolated case. Fox Television has now admitted that singers are indeed lip-syncing, but insists that this is only in limited, group ensemble situations. "For the group ensemble performance, the vocals are pre-recorded to allow acts to concentrate on preparing for their own live competitive performances on Wednesdays - this is also no different to what other competition shows do for ensemble performances," a Fox representative told Digital Music News. "All survival songs are performed live, with just a backing track."

Even better, contestant LeRoy Bell laughingly admitted the gaffe following the exposure. "Ok, ok.... I s**k at lip syncing, Lol!" the singer tweeted.

The rep also noted that other shows - most suggestively American Idol - also feature lip-syncing. Who knows the exact extent, though viewers are likely to be scrutinizing contestants for signs of faux-vocalizing ahead.

Hillary Clinton Says Anti-Piracy & Internet Freedoms Are "Mutually Consistent..."

Can you clamp down on piracy, without clamping down on free speech and internet freedoms? In a recent letter sent to Representative Howard Berman (D-California), Secretary of State Hilary Rodham Clinton offered her strong support for anti-piracy measures, while underscoring that "internet freedoms" and "intellectual property protections" are "mutually consistent".

Berman is a co-sponsor of the tough Stop Online Theft Act, the strongest anti-piracy bill yet. The letter, stamped October 25th, was shared with Digital Music News on Friday morning.

Source: Paul Resnikoff : digital music news

Latest news from the industry

2011-11-06T05:25:00.000-08:00

A Major Label Artist Makes 8 Cents On a 99-Cent iTunes Download...

That is, according to federal court documents filed Wednesday by attorneys for Chuck D. The detailed breakdown shows that for every 1,000 iTunes downloads sold, a UMG-signed artist gets paid $80.33. And that's after the label collects on a 25% 'Container Charge for Audiophile Records,' as well as a 15% 'Net Sales Deduction'.

Which means that for every one download, the payout is roughly 8.033 cents.

Actually, the ringtone payout is loaded with even more artificial ingredients, including the same 'Audiophile Packaging Deduction'. In fact, despite a much higher price tag on ringtones (ie, $3 listed in the filing), the major label artist gets a paltry per-ringtone payout of 5 cents.

Coldplay Just Sold 447,000 Albums In the US...

There's now more data to support Coldplay's anti-Spotify strategy. According to first-week, US-specific stats just published by Nielsen Soundscan, Coldplay shifted a cool 447,000 units of Mylo Xyloto during its first week. That's easily enough for the number one, and complements a similarly-robust British figure.

Kelly Clarkson's Stronger landed a distant second, with 163,000 units.

Actually, Coldplay scored a digital album sales record in the UK, where the band crossed the 80,000-mark. That 40 percent of the British first-week tally, and we'll be updating the US-based figure shortly to see how it compares.

The question now is: what next? Coldplay is a monster band that just made a monster move, one that could stir imitators. The Coldplay strategy is widely regarded as a money play - that is, preserving whatever recording money is left for high-end superstars. And, simply stated, physical formats and digital channels like iTunes pay better. Much better.

But wait: there's more! Because there are also some rumblings of reinvigorated windowing strategies from major labels, a shift that would put players like Spotify last in line (or, close to last). That is, when most of the juice has already been squeezed from CDs, LPs, and iTunes.

Let's see how this unfolds.

67.5% Of Coldplay's US Album Sales Are Digital...

Coldplay has already pulled impressive, first-week album sales stats. But now, it looks like a monstrously large percentage of those sales were in the form of digital albums, particularly in the US. We just received a complete first-week breakdown on Coldplay's Mylo Xyloto, and it shows that out of 447,411 total albums sold, more than 300,000 were digital. Or, more precisely, 302,183, or 67.5% of total, according to first-week album sales tallied by Nielsen Soundscan.

That complements a British digital total of more than 83,000, a more modest 40 percent chunk. And separately, Billboard has just estimated that worldwide digital album sales have pushed north of half-a-million, over just the initial week.

Of course, Spotify - or the lack thereof - is a major part of this story. But another driver may also be an older demographic, one more wed to the album format. As CDs continue to ebb from the landscape, one theory is that older buyers are simply migrating towards the digital equivalent of what they're already comfortable with.

Music News Roundup

* Live Nation suffered a modest drop in attendance during the recent quarter, and its financials were largely flat. Net income was $51.7 million on revenues of $1.79 billion, a slight decline. The company threw more events during the period, though attendance slipped 5.6 percent to 15.6 million.

* Groupon has priced its IPO shares at $20 ahead of its Nasdaq debut today. The price-tag produces a valuation of roughly $13 billion.

* GWAR guitarist Cory Smoot - aka 'Flattus Maximus' - was found dead on the band's tour bus on Thursday. The band is planning to continue its North American tour uninterrupted, with upcoming dates in Canada.

* So where's iTunes Match, anyway? Apple initially teased an October launch, though most now expect something fashionably late.

* Darren Aronofsky has been named director of the upcoming Metallica + Lou Reed video, "Iced Honey."

* The deadline for applying for a SXSW showcase is today, November 4th. Apply at sonicbids.com

* And, get ready: Grand Theft Auto V is on the way. Rockstar Games has just teased a trailer set in gritty 'Los Santos,' based on LA. A snippet of the soundtrack sounds interesting, though specifics on things like playlists, release dates, and cars remain blurry.

* Spotify is now offering gift cards, just like iTunes. The cards will initially be available at UK-based supermarket chain Morrison's, and available in £10, £30, and £50 denominations.

* SXSW has just unveiled its first slate of bands. The list includes Com Truise, Motopony, Grace Potter and the Nocturnals, VHS or Beta, Thee Oh Sees, We Barbarians, and Say Hi, among others.

* EMI is now supplying The Echo Nest with access to thousands of its songs and related data, including parts of the Blue Note catalog. This looks focused on enabling artist app development, and developers will need specific permission on their proposed projects.

* BFM Digital has just inked a pair of Japanese indie labels, Video Arts Music and King Records.

* Getty Images Music has just partnered with Indaba to crowdsource major ad placements.

* Wale has been tapping Turntable.fm as his opening act. While waiting for the DC-based rapper to hit the stage, fans can control a dedicated Wale turntable.fm room, projected onto the venue. It's a nice alternative to background songs typically played at a show.

* Bloomberg has created a fairly in-depth series on various digital music startups and issues, including a close-up on Spotify's Daniel Ek.

* The FCC will not be able to fine CBS $550,000 for the infamous 'Wardrobe Malfunction' of 2004, thanks to another slapdown by a federal appeals court judge.

* Berklee College of Music and Midem will host their next 'Rethink Music' on April 23-24 in Boston.

Detroit Lions Fans Uniting Against Nickelback...

We're used to hearing stories about fans demanding performances from their favorite artists. There's even a company called Eventful that allows artists to smartly tour based on fan requests. But in this case it's the exact opposite: in fact, Detroit Lions fans are now rallying against a planned halftime performance by Nickelback during their Thanksgiving Day classic against the Green Bay Packers.

These are tough fans from Motown, and this movement is gaining steam. There's already an online petition on change.org to affect this change - and it has rallied support from more than 22,850 supporters (and counting). "I have been a season ticket holder my entire adult life and truly look forward to the Thanksgiving game," protested Thomas Simon. "This year, when times are tough and I am putting my hard earned money toward attending this game, and the team is finally doing well, I feel as though there should be a more universally recognized enjoyable band that represents the Motor City and our rich heritage of Rock and Roll and Soul music. This is Motown after all."

"Nickelback sucks," Ashley Miller screamed. "This makes me want to not watch the game at all for fear I may accidentally un-mute the game during halftime and have to cut off my ears afterward. I mean, I know things are rough here in Michigan, but come on Detroit, that's low."

Others were far less.. cordial.

Labels 'Cautiously Optimistic' On a Turnaround (History Repeating Itself? )....

Haven't we seen this all before? That is, around 2003 and 2004? That's when the industry started to see a small album sales increase after years of declines and ramping piracy. Everyone was 'cautiously optimistic'...

> Reuters, July12, 2003
"I'm cautiously optimistic," said UMG President/COO Zach Horowitz. "There's a lot of good signs that a turnaround is beginning. We're all tremendously pleased by the impact of the Apple service."

> The New York Times, February 24, 2004
''The sense from both labels and retail is a desire to be cautiously optimistic,'' said Rob Sisco, the president of Nielsen Music, which operates SoundScan. ''And I can understand that because we're coming off of very severe times.''

''People are over this, 'I should get my music free,''' said David Munns, the chairman and chief executive of EMI Recorded Music North America. ''I think there's a tide turn in the American psyche on that.''

> All Access, October 11, 2011
All Access: Does that make you a cautious optimist for the music industry in 2012?

Jim Donio, NARM President: "There's definitely a more optimistic climate across the board, but people are really cautious because we've had a really difficult seven years. I'll put it this way: I'd much rather be heading into the fourth quarter with sales up than down as they have been for so many years. This is the biggest selling season of the year -- and to be heading into it up makes me hopeful that the year could end positively."

Chuck D Is Suing Universal Music Group for "Hundreds of Millions..."

And we thought Rick James was bringing the heat. On Wednesday, Chuck D filed a massive class action lawsuit against Universal Music Group, one loosely valued in the 'hundreds of millions'. The suit, filed in the US District Court for Northern California, alleges that UMG is paying a fraction of what is owed on various digital formats like downloads and ringtones, just like the James lawsuit. "The exact amount... will be determined at trial, but which likely equates to hundreds of millions of dollars if not more," the aggressive filing estimates.

Chuck D attorneys Hausfeld LLP are putting out the call to "all Universal Music Group artists," starting the wheels on a potentially monstrous class action. And this could be the beginning of an anticipated flood of big-artist lawsuits, all based on the assertion that labels should be categorizing digital formats as licenses instead of sales. The former nets a far higher return - as much as 50 percent - while the latter delivers a more modest percentage.

Obviously, D - whose 'government' is Carlton Douglas Ridenhour - wants his famous releases re-categorized as licenses, with appropriate back-payments attached. "As digital downloads have emerged as the primary method by which many consumers acquire music, UMG has systematically failed to pay appropriate royalties to musicians for these downloads," argued James Pizzirusso, a partner at Hausfeld involved in the case.

A chunk of D's recordings got roped into the UMG umbrella with the acquisition of Def Jam Recordings in the 90s. Universal has promised to "vigorously defend" against the "flawed" case.

Copyright Industries Employ Nearly 11 Million Americans...

If you're looking for a hot-button topic to jolt things along, try jobs. According to a report presented by the Congressional International Anti-Piracy Caucus on Wednesday, copyright industries employed 10.6 million Americans in 2010, or nearly 10 percent of the private workforce.

You can see where this is going. The report, 'Copyright Industries In the US,' was partly commissioned by the National Music Publishers' Association (NMPA), which certainly counts publishing among the copyrighted ranks. Others involved include the RIAA, MPAA, and the Business Software Alliance. "Today's report reminds us of the enormous economic importance of the American copyright industries and the many jobs they create," Senator Sheldon Whitehouse (D-RI) reminded. "We should celebrate our country's continued success producing movies, music, and software, but also must protect these jobs from digital piracy and other forms of theft."

The press conference is happening on the heels of the recently-introduced SOPA bill in the House, which offers the heaviest anti-piracy hammer yet. And, the study further propels the argument for strong anti-piracy action, which is firmly opposed by companies like Google.

But there's also the issue of exports - and major overseas enforcement leeway offered to groups like the Department of Justice. "Our industries also continue to contribute significantly to a positive balance of trade for America - $134 billion worth in exports," said David Israelite, NMPA president and CEO. "That exceeds other sectors of the economy like aircraft, automobiles, agricultural products and pharmaceuticals."

Rick James Is Also Sticking It to Universal Music...

Don't mess with Rick James, dead or alive! And on that note, a federal judge has just denied a motion by Universal Music Group to toss a class action royalty lawsuit driven by the James estate. The decision means that UMG may still be forced to pay a sizable ransom on digital formats for legacy artists.

The James estate - with help from Rob Zombie - stamped this as a class action, meaning scores of other legacy artists can join. Separately, Chuck D has also started a similar class action of his own, though it remains unclear if these actions will be consolidated. If triumphant, the James estate would get 50 percent of all digital payouts, instead of something closer to 12 percent (or whatever the specific contract stipulates on sales). And, so would other artists inked to UMG (and other majors, for that matter).

This all started with Eminem publisher FBT Productions, who secured a serious victory in this area late last year. It may have been the trigger for an avalanche: back in April, the James estate filed federal paperwork to recategorize all digital sales as licenses, instead of sales, and invited others to join the fun. "If downloads are the way of the future, this is going to have massive implications," attorney Gary Stiffelman of Ziffren, Brittenham LLP remarked after the initial Eminem victory in the US 9th Circuit Court of Appeals.

Meanwhile, the judiciary climate now seems increasingly hostile towards major labels. Just recently, older artists started circling the majors on 'termination rights,' or clauses in contracts that would return masters after a certain period of time. A full-blown court battle could end poorly given the backdrop, and Congress is also taking notice.

Blog Source: Paul Resnikov - digital music news

Nine Lies and Blaze's Appeal launch appeal for MRI Scanner

2011-11-04T09:05:00.001-07:00

Nine Lies, Belfast’s hottest new band are appealing for help to raise money for their official charity Blaze’s Appeal (www.blazesappeal.co.uk). Using the internet based company Pledge they aim to raise £3,000 in order to film a music video, and donate 20% of the proceeds to local charity: Blaze’s Appeal, founded by the parents of Blaze Shields-Pettit to raise money for the Royal Belfast Children’s Hospital.

The video is for the title track of Nine Lies upcoming EP “Kill For A King”, and has a distinctly 60’s spy movie theme. “We are planning on filming this in the style of the old James Bond movies, with lots of KGB agents and Femme Fatales” says Stevie Mann, lead singer. “We really hope we can raise enough money to film the video, and support Blaze’s Appeal for a New MRI Scanner at the Royal Belfast Children’s Hospital.”

The Band has launched their appeal across the internet, and is featuring it heavily across their social Networks. “We have already received some Pledges, but we have a long way to go, and only sixty days to raise the money we need” said John Rossi, Bassist. “We just need to raise awareness of our appeal to the public, and let them know that by pledging, they will not only be helping to make a fantastic video, and raise money for charity, but they will also receive loads of goodies just for pledging” agrees Drummer Stoogie.

Pledgers can choose how much they want to give, with pledges starting at just £8.00, and in return can get their hands on all kinds of Nine Lies goodies, including days out with the band, private gigs, merchandise, the opportunity to be in the Music video, signed photos, the finished EP and music Video and much, much more.

Pledgers will also receive regular updates, and exclusive downloads during the pledging period.

Blaze’s Appeal Charity founders Darren and Dawn Shields-Pettitt are fully behind Nine Lies appeal, and are asking people to pledge what they can “Please help this band out and the Blazes Appeal Charity - great band-great bunch of guys.” appealed Dawn, “This is Amazing” she added.

Nine Lies Video regarding the appeal:

http://youtu.be/k9TewxEtwYY

Appeal pages:

http://www.pledgemusic.com/projects/kill-for-the-king

http://www.causes.com/causes/389913-support-the-royal-belfast-hospital-for-sick-children

http://www.ninelies.net/2011/10/17/help-us-make-a-video-get-exclusive-goodies-and-support-the-blaze-appeal/

https://www.facebook.com/pages/A-Kill-For-The-King/178996465516125

https://www.facebook.com/nine.lies.rock

Wanna be a Rock-Star? Record and release a single with Nine Lies for Charity!

2011-11-04T09:02:00.000-07:00

Nine Lies are auctioning off the chance for you to record and release your own single with them!

This auction is in aid of Nine Lies Pledge appeal.

The auction is taking place on ebay. To find out more, click on the image below!

Get Free Music right now!

Get your hands on free tracks from Nine Lies

2011-11-04T09:01:00.000-07:00

Want to get your hands on some free music from Nine Lies?

Here's your chance:

Check out our pledge page for all the latest updates and more!

Latest news from the industry

2011-07-11T08:10:00.000-07:00

Spotify Definitely Lacks a Warner Music Deal...

Everyone is doing cartwheels over Spotify's stateside arrival. But wait: according to several sources to Digital Music News, a deal with Warner Music Group has definitely not been finalized, and we couldn't get a clear sense for when signatures would happen.

Which begs the question: is Spotify playing us, again?

Warner Music executives flatly declined any comment, though a number of other sources have told Digital Music News that WMG is clearly a hold-up. "There's definitely not a deal yet," one source relayed, at least at the time this article was published.   Sources to the LA Times echoed that information, though at least one Spotify executive made comments suggesting something was close.

So, tomorrow? Next month...

...next year? Another executive astutely pointed out that Warner executives are insensitive to pressure tactics, including the latest flare-up. "It's the first time [Spotify has] gone so far to make a splash like this, but these tactics really don't work," the source relayed.

Sony Music Is Widening Its Lead on UMG...

Universal Music Group has always enjoyed impressive, long-term marketshare leads among the major labels. But are those days over... for good?

> Total Albums, Marketshare, 2011 (H1).
SME: 30.39%
UMG: 28.49%

According to first-half data shared with Digital Music News this week, a recent lead by Sony Music Group was no accident. Specifically, Nielsen Soundscan pointed to a now-widening top position for Sony, albeit one just shy of two percentage points. This measures all SME-controlled labels, between the dates of January 3rd and July 3rd, 2011.

This is a great starting-point for exiled UMG czar Doug Morris, who is said be harboring revenge fantasies as he takes the seat at Sony. Well, this looks a good headstart, though UMG is still ruling over digital formats, which now account for roughly one-third of album sales for the majors (broadly speaking).

> Digital Albums, Marketshare, 2011 (H1)
UMG: 26.95%
SME: 26.76%

Fuhgeddaboudit: ISPs Agree to 'Endless Strikes' Enforcement Plan...

A number of major, US-based ISPs have now agreed to warn infringing subscribers through a system of 'Copyright Alerts,' though this is far more lenient than copyright owners would like. And, access providers are not required to terminate accounts or disclose identities, even after multiple violations. In fact, this is an entirely voluntary system where ISPs calls the shots on their own playgrounds.

AT&T, Comcast, Time Warner Cable and Verizon are among the providers on board, and the agreement was forged with a range of different content industries. That includes music, though the RIAA was unable to do this alone - despite promises that agreements were forged back in 2007. Instead, industries like television and Hollywood helped to push this over the finish line. "Leaders from the movie, television, music and internet service provider communities today announced a landmark agreement on a common framework for 'Copyright Alerts'," the consortium affirmed.

According to a joint announcement issued Thursday morning, the system will involve lots of letters and warnings, and eventually, more stern 'Mitigating Measures'. But ISPs will keep the identity of the infringer private, and lines will stay connected even after five or six warnings - and beyond. The 'Measures' include things like requiring a subscriber to acknowledge the receipt of a letter, temporarily suspending parts of service until a conversation happens with the ISP, or having service slowed.

But ISPs are resisting a complete cut, and are protecting their right to preserve 'essential' services like voice phone, email, and access to emergency-related sites. All of which begs the question: without a real stick, will any of this have an impact?

The Grammys Aren't Budging. And Here's a Letter to Prove It...

The Recording Academy (NARAS) has no intention of re-instating a number of chopped categories, despite legal threats and protests from affected musicians. Here's a rather wordy letter sent to members this week, shared with Digital Music News, that makes that clear.

From: Member Services
Date: July 6, 2011 5:33:29 PM PDT
Subject: GRAMMY Awards Restructuring

Dear Friends:

As an organization made up of the world's most talented and gifted music makers, one of our principal missions is to celebrate great music across all genres and styles and to recognize and reward excellence in recorded music.

A GRAMMY Award is recognized as the pinnacle of artistic achievement, and the very definition of musical excellence. Artists who earn a GRAMMY- or who have been nominated for one - know the honor comes after having competed against the very best in the world.

Achieving this measure of excellence is a fluid process, and it requires continuous review of our awards structure. This review process - which has been in place for more than 50 years and includes input from elected, qualified voting members from The Recording Academy's 12 Chapters around the country, and a broad spectrum of music makers - takes place annually to assure that the competition is fair and consistent across all musical genres. Accordingly, The Recording Academy's Board of Trustees - who serve as your elected representatives - and its committees spent the last two years researching, analyzing, and discussing years worth of data before deciding to realign the GRAMMY categories. Once this extensive, detailed procedure was completed, we made every effort to be up front, transparent, and painstakingly clear about how and why this was done, and we will continue to reach out and
address any questions and/or concerns about the process and these changes.

Here is just one example of the philosophy behind the changes: In the past we have maintained separate categories for some subgenres of music. However, other musical subgenres (like Western Swing music, psychedelic rock, cowboy music, grunge or punk rock, neo-soul, even Christmas music and more) were not represented with their own stand-alone categories. By combining some of the more regionally based subgenres (such as Zydeco/Cajun, Hawaiian, and Native American music) into one overall category (Best Regional Roots Music Album), they are showcased in a larger way than before, creating a more inclusive, diverse category and providing greater exposure for the creators of these robust musical styles. This in turn creates a richer and more vibrant competition for music that shares regional American roots, even if they emanate from different parts of the country.

We are excited and proud to recognize excellence in this way. Artists in these categories who produce great music will continue to stand out among their peers, and will receive the GRAMMY recognition they richly deserve. It's the same story with many of the other categories that were realigned. Another factor that led to these changes was consistently low entries over the past several years in many categories. The reasons and motives for all of the changes are identical, and your Trustees have no agenda other than how best to advance our shared goal of celebrating great music.

We respect the views of our members, and we will continue to listen to you with open minds. While we expect the dialogue to be passionate and spirited, at a minimum we expect it to be fair, accurate, and respectful. It is disappointing that some individuals chose to make false, inflammatory statements suggesting that this realignment of the GRAMMY Award categories was motivated by race or ethnicity. The Recording Academy, its Trustees, and its staff have worked tirelessly and diligently on this project and as an organization that continuously strives to uphold the First Amendment, we would never tolerate any attempt to advance a racist agenda using our organization, and we were appalled when these provocative, unwarranted allegations were raised.

GRAMMY Award categories have always been based on various genres of music - not on race or ethnicity. People of all different backgrounds and walks of life create MUSIC, and artists are not relegated to making music based on race, background or beliefs. While categories were realigned as part of the awards restructuring, ALL of the genre Fields remain intact. And the GRAMMY Awards still have more categories that recognize musical excellence than any other music award. The current awards changes will remain in effect for the 54th GRAMMY Awards on Sunday, Feb. 12, 2012, and we will continue to re-examine our awards process and review new proposals as we do every year. To any of you who have questions or may not yet fully understand the changes, please visit http://www.grammy.com/announcement for detailed information about the awards realignment, as well as resources to address your
questions.

In closing, we know that we have a responsibility to keep our categories fair and representative of all kinds of music, and we strongly believe that we have done that. We welcome your passion, your participation, and your voice in the continuing conversation about how best to recognize and celebrate excellence in recorded music, now and in the future.

We greatly value your continued membership in The Recording Academy, and we're here to serve you. Best wishes for a wonderful summer.

Warm regards,

George J. Flanigen IV
Chair of the Board of Trustees
The Recording Academy

Neil Portnow
President/CEO
The Recording Academy

Desperate? Amazon Offering Drastic Cloud Discounts...

Looks like Amazon's Cloud Drive has a serious overpricing problem. And the solution? Now, the company is loading its cloud cart with serious freebies, potentially a response to tepid demand. The result - at least for most music fans - is an unlimited amount of storage for $20 a year, though read the fine print.

Here are the details. The limited-time offer includes unlimited uploads of MP3s, unprotected AACs, and Amazon purchases for the $20 tag. Other files, like movies and TV shows, are not included in the discount. At least, that's the offer for now.

Amazon purchases were already included, and users can still access 5GB lockers for free. But the question is where Amazon goes next, especially next to Apple's $24.99 iCloud, which launches this fall. Google remains the wildcard, and an entirely free cloud rollout is not out of the question.

Smart customers will probably wait for prices to drop even further.

But Wait: More Americans Are Currently Searching for "Limewire" Than "Spotify"...

Perhaps Spotify is sauntering into the States with a bit of over-confidence? After proclaiming its arrival without critical Warner Music Group licenses, projecting year-one American user levels of 50 million, and internally boasting a "huge PR story and anticipation," Spotify seems to be ignoring a serious awareness problem. Indeed, it seems that the average American has no idea what this is, isn't getting hyped by the media, and remains hesitant on subscription music plans.

The latest evidence comes from Google Search. According to recent logs pulled for a number of music-related applications, it turns out that the "groundswell" for Spotify is actually far less than that of Limewire. That's right, Limewire, which has been flattened for months (though alternatives certainly exist for motivated swappers).

Here's a look at current global search activity for queries containing 'Spotify' on Google for the past 30 days, which shows incredible demand from Sweden but essentially zero interest in the US (there was not enough data to show a trend graph for the past week).

Surprised? Ticket Prices Have Risen 10 Percent This Year...

The biggest tours made even more money in 2011, but this may be a short-term grab. According to Pollstar, the largest 100 treks in North America improved revenues by 16 percent to $1.12 billion, but ticket prices also elevated 10 percent. Overall, attendance gained a milder 5 percent, while the average ticket price among the top 100 is now $67.

That is an average gain of $6.25 per ticket, one that doesn't include extras like concessions, t-shirts, and parking fees. But the price-gouging becomes even more obvious for the top 50 tours, where prices elevated a monstrous 14 percent to an average $84.92. Worldwide, revenues among this more elite set grew 11 percent to $1.65 billion, though attendance actually declined by 2 percent to 19.4 million.

Is this sustainable? Or, a just a good idea for maximizing short-term profits? The rate of hearing loss among teenagers has doubled since 1985, according to the latest findings.

Roundup

*Album sales actually inched upward during the first half of this year, though this may just be a breather on the downward slide. Separately, Sony Music Entertainment widened its marketshare lead over Universal Music Group during the period.

*Spotify boldly announced its US arrival, though a licensing deal with Warner Music Group remains unsecured. Leaked documents show the company expects to lure 50 million American users in year one.

*ISPs and various media trade groups (including the RIAA) announced a collective system for warning infringing users, though the voluntary plan does not require disconnections.

*Amazon started offering drastic Cloud Drive discounts, specifically targeting music users.

*And, NARAS and the Grammys have no intention of rescinding recent category cuts, according to a member letter leaked to Digital Music News.

*Another formality satisfied... The European Commission has now approved the Warner Music Group purchase, according to information confirmed to Digital Music News over the weekend. The official nod came on July 7th, per Commission sources.

*Those holding Sirius XM Radio (SIRI) stock are now being rewarded. Shares have more than doubled over the past year (most recently settling at $2.22). Not only has SIRI now successfully avoided delisting, but starting July 15th, it will become part of the 'Nasdaq 100 Index'.

*Argentinian folk singer Facundo Cabral has been fatally shot in Guatemala. The tragic incident has drawn outrage and confusion, and motives for the calculated attack remain unclear.

*If you like speculation, you'll love this one. A sleuthing programmer unearthed a few lines of code suggesting that Facebook is cooking a music application called 'Vibes,' though the clues are light at this stage.

*The Canadian Recording Industry Association (CRIA) has now changed its name to Music Canada.   No word on whether the RIAA is contemplating a switch to 'Music America'...

*Cuban guitar master and Buena Vista Social Club member Manuel Galban has passed away. He was 80.

*Turntable.fm remains oh-so-hot right now. Chatter continues to surround an incoming funding round, and Diplo just tapped the site (along with Facebook and Twitter) to test some new material from his Major Lazer project.

*Looks like Google chairman Eric Schmidt will be testifying in front of Senate lawmakers in September, part of a growing level of governmental inquiry involving the dominant search giant.

*Meanwhile, the US macroeconomy continues to sputter. The latest jobs report shows a 9.2 percent unemployment rate for June, considered extremely stagnant for a 'recovery'...

Source: Digital Music News, Paul Resnikoff

Latest news from the industry

2011-07-05T06:32:00.000-07:00

How Much Does a Hit Song Cost, Anyway? Try $1,078,000...

That's according to NPR, which polled a number of industry experts to determine the real cost behind a top-charting hit. In this case, it was Rihanna's recently-created "Man Down," a big-budget, blockbuster-style blowout that remains unproven.

> > The Breakdown:
Writing Camp (Per Song): $18,000
Songwriter: $15,000
Producer: $20,000
Vocal Producer: $15,000
Mix/Master: $10,000
Song Rollout: $1,000,000

TOTAL: $1,078,000

Seem ridiculous? Indeed, the cost includes a small army of writers (an 'all-star writing camp'), costs related to 'flying the artist around' and of course, 'courting radio programmers with fancy dinners'. All part of a big-label, big-budget style that seems reserved for the tiniest cadre of artists. "It was at least forty guys out there," said writer Ray Daniels, referring to the camp, which also involved several high-end studio rentals. "I was shocked at how much money they were spending!"

Actually, one of the biggest chunks goes to radio - or more specifically, buying a slot in the rotations of various conglomerates (whatever the kickback mechanism or influence vehicle). That validates information from earlier sources to Digital Music News, who note that getting mainstream radio rotation is virtually impossible these days without major label backing.

And the Winner Isn't: Latin Artists Threatening Grammy Lawsuit...

The Recording Academy wanted a simpler show; instead, they got something a lot more complicated. After accusations of racism, personal attacks against NARAS head Neil Portnow and scattered protests, lawyers have been hired and a lawsuit against the Academy is being explored.

Leading the charge is multi-Grammy Award Bobby Sanabria, who is pushing for a class action involving other Latin artists (and potentially artists from other affected genres as well). "The trustees chose to rubber stamp a secretive process that serves the interests only of those popular performers who already enjoy broad exposure," Sanabria said during a Thursday conference call.

On top of that, the group is also pushing for a boycott against CBS, which is broadcasting the February event. Both CBS and NARAS have remained quiet on the matter. In April, NARAS announced the reduction of 31 categories, from 109 to 78. Other affected genres include Hawaiian, Cajun, and Blues.

So what's next? This is the sort of bad publicity that isn't good, especially with serious accusations of racism being thrown around. Earlier, the Recording Academy indicated that modifications would be considered after the 2012 Grammy Awards, though this could easily become a PR mess come February.

The God-Given, Inalienable Right to Steal Music...

Sunday, Monday, Tuesday.... seemingly every day this industry talks about 'competing with free,' and the need to craft better premiums, packages, and non-reproducible experiences. But more than a decade into file-trading and digital content ubiquity, the consumer not only expects free content - they increasingly seem to view it as a right.

Just recently, British ISP BE Broadband conducted a survey of their users to anticipate the impact of the Digital Economy Act. The IP-focused enforcement initiative is currently focusing on stern letter-writing, with a view towards disconnecting lines and disrupting offending accounts.

But according to the results, a large percentage of subscribers would take steps to mask their IP addresses and accounts, while another chunk would just keep trading as usual. Just 1% would simply stop cold-turkey.

> > If the Digital Economy Act becomes law, do you think you will change your behavior?
>> >> 47%: I will continue to use file-sharing software, but will take steps to conceal my identity (ie IP address cloaking).
>> >> 32%: I will not change my use of file-sharing software.
>> >> 15%: I never use file-sharing software so this doesn't affect me.
>> >> 4%: I will reduce my use of file-sharing software.
>> >> 1%: I will soft using file-sharing software altogether.

Granted, this is a survey conducted by a highly-interested party. ISPs hate the Digital Economy Act, and have been lobbying and legislating aggressively against its passage and implementation. That may have skewed the survey process, though it also raises another issue: when subscribers evade, will ISPs simply look the other way?

Brick n' Murder: HMV Annual Losses Approach $200 Million...

British labels are staging a candlelight vigil on this one, but HMV might not make it through the night. On Thursday, the heavily brick-n-mortar retailer posted annualized, after-tax losses of nearly $200 million, or 123.1 million pounds. That is a huge swing from a year-ago gain of 49.2 million pounds, or $79 million in dollar-speak.

It also follows a period of store closures and divestitures, most notably the sale of Waterstone's book unit. Some costs related to those dump-offs adversely affected the profitability picture.

Either way, the broader backdrop has been brutal. "Our operating and financial performance this year has evidently been both disappointing and unsatisfactory," chairman Philip Rowley told investors, offering a level of honesty frequently absent among American executives.

But there are plays and opportunities to consider, and the HMV product mix started shifting years ago. Looking ahead, the company is pushing greater diversifications towards headphones, portable MP3 players, and anything that doesn't start with a 'C' and end with a 'D'. In-store ticketing will also be ramped upward, another music-related expansion that could pay dividends. "We now have a very clear focus and strategy to drive cash generation and cost reduction, reinvigorate the customer offer and further diversify the Group into the growth areas of live, ticketing and digital," relayed HMV chief Simon Fox.

But is it too late?

If You've Given Up on Europe, Read This...

Pandora founder Tim Westergren once called SoundExchange royalties 'ridiculous,' yet Pandora is still willing to pay the American piper. So why isn't the same true for British and European royalties? Pandora has not only blamed excessive rates, but also an incredibly complicated patchwork of country-by-country licensing. All of which prompted Digital Music News to ask, "Will Europe Ever Get Its S--t Together?"

Well, here's reason for hope, as outlined by PRS for Music CEO Robert Ashcroft. As for Pandora, Ashcroft says a deal is always on the table....

___ ___ ___ ___

"In regard to the article, 'Will Europe Ever Get Its S--t Together,' I wanted to highlight a couple of points.   Firstly we believe that whilst there are licensing issues across the EU - when the 27-country multi-language, multi-currency market is taken as a whole - and licensing is a complex business as you yourself say, there are many moves in progress to simplify things.

In the UK we have licensed 63 new digital services and 17 of these on a pan-European basis, allowing the UK to have a thriving digital music market. Consumers are well served in terms of type of service (i.e. streaming, download and subscription) and provider. The industry is moving ahead with a Global Repertoire Database to offer an improved service to both music creators and users across the continent and beyond, with a single view of the copyright data that underpins the rights we represent. Similarly, collecting societies such as PRS for Music have invested in new systems, processes and training to adapt to the vast volumes of transactional data we now have to process in the digital market place.

In relation to Pandora the answer is simple: they didn’t accept the price offered for the repertoire they wanted to use. I’m delighted to say that We7, Spotify, LastFM, iTunes, Amazon, Deezer, YouTube to name but a few have engaged with rightsholders and successfully operate in the European marketplace.   While we want as many different music services to use our members’ music as possible, we respect the commercial decision of any organisation not to launch in a territory or territories for whatever reason.

The US and European legal frameworks, copyright legislation as well as values ascribed to rights, are distinctly different and this should be clarified so all of the facts are understood. Comparing these markets in a simple like-for-like way is an unhelpful exercise and misses the underlying subtleties in the licensing models. It must be noted that one of the most successful streaming services across Europe has not yet launched in the US market because it has not so far been able to obtain the necessary licences.

Whilst I agree we must solve issues collectively in the online market place to help support this growing business and tackle piracy, we should not overlook the great progress made, the real choice on offer for our consumers and the differences in these markets."

Robert Ashcroft, Chief Executive PRS for Music

Make Room for Another Facebook Artist App: ONErpm...

Which do you believe? One perspective is that the space for DIY companies - and Facebook artist page apps - is simply too congested. The other is that all this competition validates the potential market, and suggests the possibility of big payoffs for investors and entrepreneurs alike.

Looks like ONErpm subscribes to the latter. The independent artist-focused platform is now preparing to introduce its own Facebook app, and bump heads with RootMusic, ReverbNation, and Nimbit (among others). In a conversation with Digital Music News, ONErpm executive Emmanuel Zunz pointed to a number of differentiators, and a plan to rattle against the bigger players. "Think of it as having most, and soon all, of the promotional features a BandPage has, plus some seriously advanced ecommerce functionality," Zunz relayed.

So what are some of these features? The list includes support for unlimited album uploads, advanced sharing options, and the ability to swap album downloads for email addresses. The company, which has largely been rattling in South America so far, also offers support for three languages (English, Spanish, and Portuguese).

And, here are just a few other features the team is highlighting:

*Support for multiple currencies and territorial exclusions.

*'Fan-gating' (user must "Like" before a play.)

*3 different price tiers, plus free downloads.

*Payment processing occurs within Facebook; Paypal checkout is also supported.

*High-quality downloads (WAV and MP3).

*70/30 split for artist or label; ONErpm covers all transaction costs, no setup or monthly fees.

*Embeddable player widget.

*User comments that share an album.

And the Latest Hacking Victim? Topspin...

This is suddenly getting way too close to home. It turns out that Topspin has unfortunately suffered a major attack on its forums, and a huge amount of archived discussions will become effectively lost to the community. "We initially got hacked, patched the software, re-launched and down they went a few days later," Topspin's Brad Barrish blogged on topspinmedia.com ahead of July 4th.

The first torpedos actually landed a few weeks ago, though the ripples are still being dealt with. But luckily, the latest attack doesn't appear personal to Topspin. The reason is that the hack happened on vBulletin, a forum package tapped by Topspin and a number of other companies. "[It] wasn't specific to us as far as I know," Topspin CEO Ian Rogers told Digital Music News.

The refreshed forums will now be handled by Zendesk, an app that already manages Topspin customer and fan support. But unfortunately, the focus now is "building it back up," and ultimately re-creating a knowledge base for others to access.   "The bummer is that because there isn't a way for us to migrate the previous community forums over, we have to start over," Barrish continued. "That's never a fun thing to do when you have a vibrant community, but ultimately we think it will be a much stronger and more organized community."

The Weekly Wrap on Music Stocks...

It was a week of solid gains, though some performed better than others. Pandora (P) was quite the high-flier with gains exceeding 30 percent, and Sirius XM Radio (SIRI) was another exceptional, double-digit gainer. Both have major ties to the automobile industry, a sector that has also been showing improvements.

Round up

*Ego, vindicated: In 2006, then-Viacom CEO Tom Freston was fired by Sumner Redstone for losing the MySpace bid to News Corp. Just this week, the New York Times reported Freston to be smiling at the recent, $35 million dump-off.

*And, as promised, MySpace is now laying off roughly half its staff, according to the Wall Street Journal. That amounts to about 225 people, though one is being hired: Justin Timberlake.

*Also, UK-based PPL has hired Mark Douglas to be its first CTO.

*And, Pandora is proving quite the bull of late. In Thursday trading, shares of P elevated another 8.06 percent to close at $18.91. Some acquisition glitter is still getting sprinkled, and Motley Fool pointed to that 'new car smell' that investors seem to love.

*Virgin Media is now partnering with Spotify to power a UK-based digital music service, according to the Guardian. All four majors are reportedly on board with the idea, and a bundled subscription launch is expected by fall.

*Elton John has now formed Rocket Music Entertainment Group, an 'all encompassing' company that will represent artists including James Blunt, Lily Allen, Oh Land, and John himself. The news comes from MusicWeek.
*Spanish authorities have raided several offices of the Sociedad General de Autores y Editores (SGAE), based on allegations related to misappropriation of funds. A number of SGAE officers have been detained, according to local reports; more details ahead. The SGAE has stressed full cooperation on its site, and questioned the motives and timing behind the coordinated raids.

*Across the Atlantic, Twitter is now being investigated by the FTC for potentially anticompetitive relationships and practices with outside app developers. The investigations, first reported by Business Insider, include a focus on possible issues surrounding the relationship with developer Ubermedia.

*Topspin is now struggling to resuscitate its forums after an unfortunate hack a few weeks ago. It looks like huge chunks will be lost; more details here.

*Vevo has just launched an app customized for Windows Mobile 7 devices.

*Pandora is roaring! Shares of 'P' pushed past $20 in late-Friday trading, a far cry from earlier, low-teens lulls.

*Soundtracker is pumping an iOS upgrade, one that includes station recommendations based on iPod favorites and a map view of nearby stations.

*Zynga has now filed for an IPO, a widely expected move. The FarmVille creator is profitable, and boasts 232 million monthly active users and a 2010 revenue of $597 million. The offering is expected to value the company at roughly $20 billion.

*Live Nation has now elected James Dolan to its board of directors. Dolan is CEO of Cablevision Systems Corporation and executive chairman of the MSG Network, among other roles. Dolan apparently requested waiver of a doctrine giving Live Nation the right of first refusal on corporate deal opportunities.

*And, if your name is on this list, you are speaking at the upcoming SF MusicTech Summit on September 12th. More names as they are confirmed.

*Jack Isquith, Slacker
*Catherine Enny, Guerrilla Management
*Harold Lee, Rock Prodigy
*Matt Schlicht, Tracks.by
*Dave Allen North, ex-Gang of Four
*Larry Marcus, WaldenVC
*Seth Goldstein, Turntable.fm
*J Sider, RootMusic
*Anu Kirk, MOG
*Carol Smith, Google
*Mark Montgomery, FLO {a thinkery}
*Brad Serling, Nugs.Net
*Eliot Von Buskirk, Evolver.FM
*Casey Rae-Hunter, Future of Music Coalition
*Sibley Verbeck, The Electric Sheep Company
*Philippe Perreaux, Restorm
*Michael Robertson, MP3Tunes.com
*Ted Cohen, TAG Strategic

*Facebook started shutting down a number of apps, based on spam-related issues. That's a needed step, though the process was viewed as abrupt and inaccurate by many developers.

*Shares of Pandora (P) kept booming on Wall Street, thanks partly to fresh acquisition rumors.

*What's really behind big concert ticket prices? "85 to 90 percent of your ticket price goes towards artists fees," one Live Nation executive disclosed.

*Myspace was sold for a paltry $35 million, and Justin Timberlake is now on board. And, half the remaining staff was fired. Any questions?

*How much does a chart-topping, hit song cost anyway? Try $1.078 million - for one song - according to NPR.

*David Gray released a digital live album exclusively through Groupon, a collaborative effort involving RCRD LBL.

*Is the DIY space simply too crowded, and ready for a Darwinian moment. Take a look.

*Grooveshark confirmed a massive shift towards artist development.

*It's something we've always known, but now it's been quantified. Hit songs have definitely gotten louder over the decades, according to recently-released research.

*On the hacking front, the newly-created consortium 'AntiSec' ripped into UMG servers, and published a number of sensitive passwords.

*A group of Latin artists is now threatening to sue NARAS over Grammy category reductions.

*HMV posted annualized losses of nearly $200 million.

Source: Paul Resnikoff, Digital Music News

2011-06-28T08:34:00.001-07:00

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2011-06-28T08:13:00.001-07:00

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2011-06-28T08:11:00.001-07:00

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Latest news from the industry

2011-06-28T02:23:00.000-07:00

Facebook Shutting Down Apps, 'Suddenly and Without Warning...'
If your business model revolves around Facebook, then you might have a huge problem: Facebook. Starting Friday, Facebook's 'AutoBot' started terminating a large number of apps, leaving some developers enraged, bewildered and just plain pissed. This is being done to manage a growing spam problem, though justice appears swift and oftentimes missplaced. One developer told Digital Music News that this felt like a 'pre-dawn raid,' with rip-downs happening 'suddenly and without warning.'

Lots of developers took to the boards to complain. "We know that we did our best to provide Facebook users THE BEST possible application, and THIS IS the way Facebook treats HONEST developers," the author of several photo-editing apps, including Photo Effect, protested on the Facebook developer board.

We're not sure how many have been affected, though several have reported having millions of users. Understandably, others were also unhappy with a system that auto-terminated their accounts based on negative reviews and seemingly flawed metrics, all without warning or a chance to fix the situation prior to shutdown. "Do you really think it's reasonable to ban the application without a single warning?" developer 'leoxtc' asked. "Don't you think Facebook should give a chance to the developers fix what went wrong?"

But Facebook has a growing problem - lots of spam - and this was apparently the only way they felt they could deal with it. "The numbers were high enough to cause a real loss of trust in applications, which can impact the entire platform," Facebook engineer Eugene told the angry board. "Where we have failed is not providing enough feedback about negative engagement metrics to developers before needing to take this action. This is something we are working hard to fix with the new Application Insights that will be launching over the next few weeks - you will have detailed information about both positive and negative engagement of the content your application generates.

Sounds like a work in progress, with some very unfortunate roadkill. Of course, this isn't a problem unless it's your problem - and your entire app, userbase, and revenue streams are destroyed - even if you weren't spamming or violating terms. Indeed, Facebook is the sheriff, judge, and executioner all rolled into one - all of which raises serious questions about constructing business models that have such a critical, temperamental contingency.

Drake vs. Universal Music Group...

There's been a war inside major labels since the 90s, and now, it's pitting Drake against Universal Music Group. "Universal needs to stop taking my f-ing songs down," Drake agro-tweeted on Thursday. "I am doing this for the people not for your label."

What we're witnessing is a massive marketing machine fighting itself: Drake's team is seeding and leaking content ahead of his upcoming album release; UMG is yanking the stuff down and threatening people. See the problem here?

Well, it's a problem that's existed since the days of Napster, especially in hip-hop. Rap promoters understand the importance of leaks, pre-release mixtapes, and street-level build, yet the RIAA seems to harbor a completely opposite marketing ideology. A label-level, urban marketing executive is gratified to score a track on a DJ Drama mixtape; the RIAA was just as excited to raid Drama's headquarters.

The same dynamic applies to hip-hop community OnSmash (onsmash.com), which was recently yanked down in a coordinated raid that included - get this - the US Department of Homeland Security. But the urban marketing executives we talked to were pissed to see their promotional outlet torpedoed.

Then there's the question of who you're getting in bed with. As in, didn't Drake sign up for this sort of 'misunderstanding' when he signed the contract? This is an artist that's been blanketed across traditional airwaves, and for the most part, that's nearly impossible without major label guns.

Can you really have it both ways?

If Turntable.fm Has 140,000 Users, Where Are They?

Hype is a dangerous thing. It can make you see things that aren't there, believe in things that don't exist, invest in things without doing the research.

All of which makes me wonder about Turntable.fm. If you believe that recommendation just needs to be 'figured out,' then this innovative twist is extremely seductive to you. I'm finding new music, rediscovering old stuff, debating with music fans, thinking about songs I want to play, maybe even rooms I want to start. But I'm also wondering if the world will feel the same way, and where these reported '140,000 active users' are hiding.

Is this just a case of too much hype, too soon - for everyone involved? If this were a strictly-limited beta - like Google Music Beta - the story would be different. But if you have a Facebook friend on the inside, you're in! But why aren't more people IN this site - for example, on a lazy, distraction-ready Friday afternoon?

The first listed room at about 2:30 pm PCT - the 'Uncommon Friday Dance Party' - had 5 users and 3 deejays. Then, the most popular room - 'Coding Soundtrack' - had 188 users, one of just four hosting more than 100. These are the rooms presented upon login, and they quickly dip down into the 30s, 20s, and below. And, a specific search for a 'metal' channel returned only sparse gatherings.

Of course, not everyone is logged in at the same time. But there's the danger that people simply logged in once, checked it out, and then checked out - for good. That's been a huge problem for Twitter, whose abandonment rate is enormous.

On a technical level, there's also the possibility that Turntable is partitioning groups to manage loads. But for this to work, the social aspect has to be incredible - with lots of people stuffing rooms, starting new ones, collaborating, fighting, competing, whatever. And right now, outside of a few corners, it doesn't feel that way.

Wow: Pandora Just Finished the Week at $15.37...

The biggest music-related action on Wall Street last week actually surrounded Pandora (P), if you're still watching. Over the week, the stock managed to gain nearly 15 percent to land at $15.37. That is close to the original offer price of $16, though plenty of analysts remain bearish on this stock.

Elsewhere, Apple (APPL) posted a modest, 1.9 percent gain on the week to $326.35. The rest was fairly calm, outside of some typical terrestrial radio volatility.

Roundup

*Scientists are now publishing findings related to 'acoustic cloaking,' or the masking of objects from sound waves or sonar detection. Details have been shared in Physical Review Letters.

*Discovery app Hitlantis just rallied $2 million in angel funding, according to information shared by parent Cognitive Maps. The company is focusing on creating localized versions, and just completed a South Korean launch.

*The iPhone 5 could arrive as early as September, though separate rumors suggest that Apple will also release a lower-end, updated iPhone 4.

*Facebook has reached 750 million active monthly users, at least according to a report in TechCrunch. That follows an earlier estimate of 687 million, and reports of critical declines in countries like the US, UK, Norway, and Canada. Facebook is thought to be waiting to reach 1 billion before making any formal announcements.

*After exposing thousands of Arizona governmental records, hacker group LulzSec is apparently calling it quits. The biggest hacking crater involved Sony, and this seems more like a chapter in a broader battle over internet security.

*And, here's Henry Rollins getting a boot thrown at him in New York. Would you handle yourself this well?

*On the major label front, heavy restructurings continued at Universal Music Group. Motown was essentially gutted, and East Coast groups were consolidated. Meanwhile, sources continued to point to major changes ahead within the West Coast power base.

*Elsewhere, the sales process continued to accelerate around bank-seized EMI. Warner Music buyer Len Blavatnik is rumored to be a front-runner, though UMG is also hovering (among others).

*In financial and venture capital news, Spotify scored a nosebleed, $100 million funding round. Shazam followed that up with a $32 million grab, and VibeDeck raised $2 million. Year-to-date financing is now approaching $400 million.

*Best Buy is launching a music cloud service this summer, powered by Catch Media. So far, there's been no mention of Napster, acquired by Best Buy in 2008.

*Apple will be paying $.0035 per scan-n-matched song on its iCloud service, according to information shared by indie Numero Group.

*Brands could account for 50 percent of total music industry revenues in just a few years, according to a projection from Digitas.

*Grooveshark inked a pair of deals designed to better promote developing artists.

*Prince says he won't be releasing another album, based on concerns related to piracy.

*And, the Echo Nest added an ID-focused "Echoprint" to its API set, with 7digital lending the song catalog database.

Blog Source: Paul Resnikov - digital music news

Latest news from the industry

2011-06-24T07:36:00.000-07:00

Imagine: Grooveshark Actually Breaking a Band...

Say what you will about Grooveshark, but this is easily one of the largest music platforms in the world. Yet Grooveshark has never been a place to discover music; rather, most people hop onto the app searching for music they already know. That is, music that was introduced to them through the radio, a friend, Pandora, anywhere but Grooveshark itself!

The fire almost always starts somewhere else.

But what if Grooveshark could change all of that? Well, that's exactly the direction this company is moving, and Grooveshark is striking partnerships to help them achieve that goal - and their perception in the creative community. On Tuesday, the company announced a deal with Indaba Music to create Breakthrough Radio, a showcase of up-and-coming artists. And, the folllowing day, Grooveshark joined forces with Rocket Science to promote emerging talent on their app - starting with Austin-based Quiet Company.

In reality, it's incredibly difficult for one platform to break an artist alone - there are just too many interconnected outlets required to start a flame. Still, some places are more critical than others, and Grooveshark wants to repaint itself as part of the solution.

Which would explain why Grooveshark has even been promoting freshly-signed artists from Universal Music Group - that's right, the label that is trying to sue them into oblivion. Love thy enemy? This sounds like a hearts-and-minds campaign if we've ever seen one, and just maybe, a game-changing strategy.

Haven't Tried Turntable.fm Yet? Here's a Primer...

Congratulations, Turntable.fm! You are officially 'so hot right now,' always the combo blessing-and-curse. But regardless of the hype, this could be the discovery tweak this industry has been waiting for, and the experience is actually quite cool. In a nutshell, you basically hang out in different rooms with other music fans, and collectively spin, listen, and chat about songs. So, kiss those lonely nights of treacherous music discovery goodbye!

This is still in limited beta, so some are waiting to get in. If you have a Facebook friend already on the inside, you're granted access, and that probably covers a lot of our readers. But we're hearing that Turntable.fm is keeping crowds under control while they ramp their infrastructure and work out beta issues.

So, here's a quick primer of the experience (it's probably best to follow on the site:

The Lobby. Upon entrance, you're given a choice of several rooms, or you can create your own.

And You Are? I've been hanging out (or, sort of lurking) in the 'Hip Hop, All Eras, Just Dope' room, listening mostly and ocassionally chiming into the message board. As I get more involved, I'll be adding more songs into my personal queue, rating more songs, and maybe even DJing (me and my avatar are struggling to fit in, so maybe I'll change my name and look to something more street).

Cred. As you can see, there are people that are actively deejaying, drawing supporters, and racking up points. If people are positively rating your music, you get more points and can upgrade your status. If people think your music is 'Lame,' the song can be cut (and you feel bad). Once you start getting some cred, you can unlock avatars (after 100 points), with some higher-end avatars to strive for like a deadmau5 head.

Digital Democracy. You can upload songs from a virtual library powered by Medianet Digital. Those can be played for the crowd, though everyone listens to the same song at the same time - that's the essence of this site.

And, that can be a mixed experience. One on hand, this is a communal experience, and music is great when shared. But I still want to tune out for hours with my own collection, and shut the world out.

And, there are annoying downsides to democracy. A song I love can easily get shouted down, and there's always the requisite snobbiness that comes with die-hard music listeners (especially among these early-adopters). Which means I'll be going back to Grooveshark, iTunes, or Spotify for some privacy and non-judginess.

Two-Way Virality. Like most music apps these days, Turntable is designed to be viral. That means you can tweet songs, blast your Facebook newsfeed, and drop a pre-populated email. But Turntable actually lets you add songs into your existing collections on Spotify, iTunes, or Last.fm. That list of apps will probably expand, and offers a great opportunity to actively capture that fleeting song.

Legal. We're not sure how this will shake out on the legal side. This represents another exotic idea, meaning that traditional legal interpretations (ie, the DMCA) are getting stretched. The RIAA declined to comment, and we're awaiting word from the NMPA (publishers). Let's hope this doesn't get crushed by a hairy legal hammer.

Shazam Lands a Splashy $32 Million Round...

Wondering where the splashy digital music investments went? Well, Shazam has just landed a massive, $32 million funding round, according to details shared by the company with Digital Music News. Kleiner Perkins Caufield & Byers (KPCB) and Institutional Venture Partners (IVP) are leading the round, with existing investor DN Capital participating.

The move signals a serious vote of confidence in Shazam, despite some ongoing monetization struggles (the company currently claims to be 'operationally profitable,' which basically means 'unprofitable'). Shazam is trying to push taggers into premium accounts and convert identifications into things like iTunes purchases. But so far, conversion claims have proven lofty and unsubstantiated. Still, Shazam has a massive user base for its magic-like song IDs, and the company now claims to have tipped the 150 million user mark.

A number of model expansions are in the works. That includes the recent layering of streaming lyrics (LyricPlay) into the premium app, as well as ongoing experiments to integrate the recognition software into television ads. 'Shazam for TV' has been around for years, though the company wants to transfer tagging behavior in serious, small-screen success. "Our expansion into television is a natural evolution of our technology," explained Andrew Fisher, CEO of Shazam.

Roundup

*Eminem is enjoying another chart-topping album, this time with Royce da 5'9". The duo, Bad Meets Evil, debuted with US-based sales of 171,000 on Hell:The Sequel, according to Nielsen Soundscan. Jackie Evancho followed closely with 161,000.

*Songkick is claiming 100,000 downloads of its iPhone app - that is, after just two weeks. That follows a quick start from SoundTracking, which posted identical numbers after a similar two-week window.

*Disgraced journalist Chuck Philips is now demanding a full-page apology from the Los Angeles Times. The Times posted a rare, front-door retraction of his earlier story about the assassination of Tupac Shakur after it was found that fake FBI files were used in the report. Those are still bogus, but a confidential source has now gone public with his participation in the first Tupac assassination attempt - corroborating the original report. "Same size, same place," Phillips demanded in an LA Weekly report.

*Pandora bumbled along in Wednesday trading. The freshly-hatched 'P' dipped 1.19 percent to $13.34 by the closing bell.

*Hulu has retained Guggenheim Partners and Morgan Stanley and positioned itself for sale, according the LA Times. Yahoo is reportedly interested.

*Tiesto has joined forces with Believe Entertainment Group to launch a documentary-style video series. "In the Booth" is slated to launch in the fourth quarter.

Latest news from the industry

2011-06-23T16:00:00.000-07:00

Apple Has a $0.0035 Check Waiting for You...

Outside of upfront payments (if any), what can labels and publishers expect monetarily from the iCloud? That is, once it's up-and-running? According to Numero Group cofounder Ken Shipley, the payout percentages look something like this (Numero Group has opted out of the program):

70% of each $25 account is spread out over every "match" made for a year.

70% of $25 = $17.50

$17.50 on an average song library of 5,000 songs = $.0035 per song.

$17.50 on the maximum song library of 25,000 songs = $.0007 per song.

12% of that is then given to the publisher(s), according to the breakdown offered.

Separately, we've also heard that publishing's 12 percent is on top of the 70 percent, giving Apple an 18 percent remainder. Either way, this is a pennies game if we've ever seen one, and a great deal depends on iCloud uptake - and the number of popular songs in a particular label or publishing catalog.

And, substantial payouts will only come from serious volume. "I will say this," Shipley told Digital Music News. "For a publisher to make $1 at the 5,000 song math, they would need 1,667 matches. I don't write $1 checks."

Projection: Brands Will Soon Account for 50% of Industry Revenues...

Percentages can be dangerous in this business, but here's something to chew on: Digitas now projects that 50% of all music industry revenues will come from brands in just a few years. "I would argue half the revenue of the industry in a few years will come from brands," Digitas CEO Laura Lang told an audience at the Cannes Lions media conference on Tuesday.

The dangerous part is that once-reliable revenue-generators like CDs are going poof, and similarly-steady sectors like publishing and touring are showing signs of wear. That makes for a much smaller pie, and much bigger percentages for up-and-coming revenue generators. Whether brands become a white knight in that picture - in real dollar terms - is questionable, though there are certainly a myriad of advertising- and branding-related models trying to take advantage of the trend.

Just think of the extreme variety. This includes everything from ad-supported digital formats (ie, Pandora) to multi-million-dollar venue naming rights (ie, Live Nation). In between, we could probably list a dozen variations off the tops of our heads, including concepts as diverse as Bieber colognes and Grooveshark. But the rearview mirror has been harsh on ad-supported startups, and look no further than roadkill like Spiralfrog for proof.

Then there's the whole "band as a brand" thing, an orientation that just doesn't sit right with some artists. The question is whether artist careers should involve hawking products to survive, though maybe this is a future that simply must be embraced. Especially if Digitas' numbers are right.

Roundup

*The Recording Academy has just inked a 10-year Grammys broadcasting deal with CBS. That includes the Grammy Nominations Concert Live, and a new, two-hour special.

*British authorities have arrested an alleged, 19-year-old LulzSec mastermind, a joint effort with the FBI. Whether that impacts the group remains unclear at this stage.

*We7 just scored a third funding round, with returning backers Peter Gabriel, Eden and Qualcomm's Pentech. The UK-based, ad-supported on-demand and radio service faces huge competitive threats from Spotify and a raft of incoming clouds.

*Merlin has added four Americans to its board. Dave Hansen (Epitaph); William Crowley (E1); Kris Gillespie (Domino USA); and Glenn Dicker (Yep Roc, Redeye) are now all part of the club.

*Spin just fired its editor-in-chief Doug Brod and publisher Malcolm Campbell, part of a bigger online-focused restructuring.

*Pandora (P) slumped a bit in Tuesday trading, with shares eventually declining to $13.50 by the bell.

*Add Universal Music Group to the list of EMI bidders, at least according to a Tuesday evening report in the LA Times.

*DIY Media, an e-commerce platform specialized in social networking, has partnered with SoundCloud to enable quick track sales opportunities for artists.

*Grooveshark has just joined forces with Indaba Music to create 'Breakthrough Radio,' a station focused on showcasing emerging talent.

*RAIN is now accepting submissions for its upcoming Internet Radio Awards. More at kurthanson.com/awards

*Hip-hop manager and executive Gee Roberson has been named chairman of Geffen Records, reporting into Interscope Geffen A&M chairman Jimmy Iovine. Roberson is currently co-CEO of Hip-Hop Since 1978, whose clientele includes Kanye West, Lil Wayne, Drake, and Nicki Minaj.

*Broadcast Music, Inc. (BMI) has named Jake Simon as Associate Director of Writer/Publisher Relations, a New York position. Simon will report into Charlie Feldman and Samantha Cox, Vice President and Executive Director, respectively, in the same department.

*CBS Interactive has officially re-launched MP3.com.

Latest news from the industry

2011-06-23T04:34:00.001-07:00

Best Buy Is Launching a Music Cloud. But Where's Napster?

Add Best Buy to the list of music cloud competitors, though Napster seems suspiciously absent from the plans. We first learned of the Best Buy Music Cloud initiative through Catch Media, Inc., a London-based media technology partner that has already launched cloud-enabled music services for Best Buy in the UK. Now, a full-blown, scan-n-match cloud is crossing the Atlantic, one expected to mirror Apple's iCloud or Amazon's Cloud Drive. "The fully-licensed service is expected to be rolled out in the US over the summer in cooperation with the music industry," the company informed.

In the UK, the 'Music Anywhere' service just expanded into Android devices, adding to existing iOS and Blackberry compatibility (you can actually download the Android app in the US as well). The British version has the blessing of all four majors as well as leading independents. "This is the only scan and match cloud streaming platform compatible across so many devices and all major mobile operating systems supported by the music industry," Catch shared. The service is being offered by Best Buy UK, as well as the Carphone Warehouse, which is owned by Best Buy. "We look forward to launching a similar service across the US over [the] summer," relayed Catch Media's CEO Yaacov ben-Yaacov.

We wondered why Napster wasn't included in any of these rollout plans, and none of our sources had answers (at least not yet). In September of 2008, Best Buy plucked Napster for $121 million, seemingly the perfect starting point for a music cloud. After all, subscription itself is by definition cloud-enabled, and sources noted that Napster has the infrastructure to pull off a scan-n-match, iCloud-style expansion.

This wouldn't be the first time a huge company acquisition wasn't fully integrated or maximized. But more aspects of this launch may be forthcoming, especially ahead of a formal Best Buy announcement. On this topic, Catch Media seemed to know little about what role Napster would play, if any.

And what about label licenses? We just went through months of licensing drama involving Google, Amazon, and Apple, though Catch seems quite confident that its US-based licensing is in the bag - and transferrable. "Catch negotiated for over two-and-a-half years for its post-acquisition licenses," an executive told Digital Music News. But when pressed on details, Catch declined to offer anything on specific sign-offs. "Catch Media can't go into full details about the forthcoming service Best Buy Music Cloud, accept to say that it is a licensed service, as per Catch Media's whole business model of creating a licensed cloud service."

Would You Buy This? Sony's 'Complete Albums Collection...'

Can you really sell CDs like this anymore? Well, Sony Music's Legacy Recordings unit is testing the higher-end (and higher-aged) demo once again, this time through a product-heavy 'Complete Albums Collection' series. This is geared towards "serious music fans and enthusiasts," and revolves around discographies - on CD - plus lots of artwork and out-of-print recordings. This is another angle towards the superfan, and first-wave runs include Sam Cooke, Miles Davis, Aretha Franklin, Stan Getz, Return to Forever, and the Byrds.

This is all happening through PopMarket.com, a recently-launched Sony property that focuses on time-limited, exclusive product deals (sort of like RCRD DEALS). CD discographies will be packaged within 5x5 mini-jacket reproductions of the original album cover art, a stand-alone booklet with discographical information and photos, and a clamshell box. It's a lot of 'stuff,' and Sam Cooke 's 'RCA Albums Collection' offers a good example with 8 discs and various extras (6 of the 8 albums apparently were never released on CD):

Pricing: 8 CDs for $71.99, with the following albums: Cooke's Tour, Hits of the '50s, Swing Low, My Kind of Blues, Twistin' the Night Away, Mr. Soul, Night Beat, One Night Stand.

Too much? Well, for those that like to order the lobster, there's this: a monster, 70-disc Miles Davis set - for $269 (if you have to ask).

This Is Painful to Watch: Amy Winehouse In Belgrade...

This happened over the weekend at Serbia's Forest Fest in Belgrade. The crowd eventually peppered Winehouse with boos, and the singer left the set early. She also apparently addressed the crowd as "Hello, Athens,' and has now canceled a string of European dates.

Roundup

*More bad news for the Electric Daisy Carnival. The recent show in Dallas resulted in at least one death, with another in critical condition. And, dozens reportedly hospitalized or treated. Vegas is next, though the local tourism board is proceeding with caution.

*Wall Street is eyeing something unfamiliar: a flat Apple (AAPL). The stock is actually down on the year, despite great results and aggressive release announcements like the iPad 2 and iCloud.

*Fefe Dobson, Lady Gaga, Far East Movement, and Justin Bieber were among the bigger winners at the recently-aired MuchMusic Video Awards.

*Spotify is teasing its stateside launch, and Facebook looks ready to integrate. Now, GigaOm is offering more details on a Facebook-integrated Music Dashboard, as well as interesting concepts like a play/pause button next to the chat box in the lower right-hand corner. A broad range of music services are eventually expected to populate; though Spotify appears to be getting the preferential, marquee treatment.

*Alliance Entertainment has named former Universal Music Enterprises executive Mike Davis as its new President. Alliance was jointly acquired by the billionaire Gores Brothers in September of 2010 (who also just lost the bid for WMG).

*And the latest high-profile hackee? That would be Sega, who confirmed Sunday the theft of data for 1.3 million 'Sega Pass' users. Credit card information is apparently safe, for now.

*Warner Music Australia has just finalized a distribution deal with Epitaph Records.

*Pandora did pretty well in Monday trading, elevating more than 9 percent to $14.61.

*It's official: the DIY space is now insanely overcrowded. The latest elbow-squeeze comes from VibeDeck, which just rustled $2 million for its direct-to-fan, musician-focused platform.

*EMI has now "initiated a process to explore and evaluate potential strategic alternatives, including a possible sale, recapitalization or initial public offering," according to a statement from the Board. Not sure about the IPO part, though the bank-seized label group is now getting aggressively shopped - potentially to recent Warner Music buyer Len Blavatnik.

*On that note, WMG is now in the process of settling a pair of investor lawsuits related to its recent acquisition. The parties agreed to settle "for a reasonable award of fees and expenses," according to SEC filings.

*Sound familiar? The fallout is just starting on a licensing dispute between Netflix, Sony, and Starz. "Sony movies have been temporarily taken down from the Starz Play service on Netflix," Starz stated. "All parties are working diligently to resolve the issue and return the films to Netflix members."

*Rightsflow is now promoting an enhanced, iCloud-compatible mechanical licensing infrastructure.

*AT&T wants to acquire T-Mobile, but the Future of Music Coalition (FMC) is sounding alarms. "A combined company would have even more incentive to charge big money for access to its networks or favor certain content at the expense of others," the group stated. "This could price many creative entrepreneurs out of the marketplace and set artificial limits on expression."

Latest news from the industry

2011-06-21T08:36:00.000-07:00

8 Reasons Why Vinyl Is Cleaner Than the Cloud...

Think digital is actually good for the environment? Less CDs, plastic, paper inserts, and physical shipping are all positive developments, but digital (and its hyped-up cloud) comes with heavy environmental baggage. iPads, smartphones, and Beats by Dre headphones all get dumped into landfills eventually, and the cloud is arguably filthy: just a few months ago, Greenpeace gave Apple horrible marks for its space intensive, coal-burning server facilities.

Of course, plastic (in all forms) can be tremendously damaging to the Earth as well. But the recent retro-boom in vinyl may actually be positive for the environment, at least compared to the alternatives. In fact, according to a recent argument from Florida-based Alpha Music Manufacturing, there are several reasons why vinyl has a much friendlier footprint. Here's the logic:

1. Albums are rarely discarded into landfills. Most are kept in a collection due to their increasing value.

2. Most album manufacturing companies actually shred and re-use the ones that do not sell. And, discounts are offered to artists that return their unsold 45s for shredding and re-pressing a new 45 with new songs.

3. The records that are tossed are typically not as damaging as other forms of plastic. Compilations that are actually discarded into landfills have very little environmental impact because vinyl material can be better broken down naturally in comparison to many other plastics.

4. Once burned, CDs and DVDs oftentimes hold little value to the owner. They can quickly be tossed, whereas few music fans rip their vinyl and throw collectibles in the trash.

5. Damaged CDs are instantly marked for disposal. Tossing a damaged Stones CD requires little consideration, however, tossing a Stones album that may have a scratch or two just isn't the norm. The album covers, jackets, and other elements appreciate in value even if damaged.

...and, we had a few more to add:

6. Apple's iCloud is part of a strategy to sell more devices like iPads and iPhones. Those devices invariably become obsolete, crash, or irreparably damaged after a few years. Their value moves to zero, and they are replaced.

7. Sorry: when's the last time you heard of a vinyl-pressing sweatshop in China with anti-suicide employee contracts?

8. And, anecdotally: Vinyl collectors are more likely to care about the environment, in general. There aren't numbers to back this up (yet), but most vinyl collectors are typically educated and more environmentally-aware. They are usually less likely to hyper-consume, and more likely to support environmental causes and programs.

Clarence Clemons, 1942-2011...

A cornerstone of the E Street Band has now passed away. Saxophonist Clarence Clemons died Saturday evening at 69, just days after suffering a serious stroke. Shortly after news of the death, Bruce Springsteen offered this statement.

"Clarence lived a wonderful life. He carried within him a love of people that made them love him. He created a wondrous and extended family. He loved the saxophone, loved our fans and gave everything he had every night he stepped on stage.

His loss is immeasurable and we are honored and thankful to have known him and had the opportunity to stand beside him for nearly forty years. He was my great friend, my partner and with Clarence at my side, my band and I were able to tell a story far deeper than those simply contained in our music.

His life, his memory, and his love will live on in that story and in our band."

Clemons met Springsteen on a rainy, windy night in Asbury Park in the early 70s - and the rest, as they say, is history. But Clemons and Springsteen were in a similar circle of musicians in the fertile Asbury Park scene of the time, so an encounter and subsequent partnership was hardly a surprise. Fast-forward several decades, and it's difficult to imagine the E Street Band without Clemons' powerful sax.

Clemons also branched far beyond the E Street Band, and gigged with a long list of famous musicians. Most recently, Clemons appeared in the Lady Gaga video for 'The Edge of Glory,' and also played on the track, 'Hair'. This was a musician who remained active to the very end.

Up. Down. Sideways: Pandora Survives Friday Trading...

Pandora stayed relatively flat in Friday trading, though 'roller-coaster' aptly described the IPO week. At the Friday bell, 'P' landed at $13.40, 16.25 percent below its initial, $16 offer.

Elsewhere on Wall Street, music stocks were fairly tame. Apple (AAPL) and Live Nation (LYV) slipped a bit on the week, while Warner Music Group (WMG) largely stayed level. The broader market inched upward.

Get Ready: The Other Shoe Is Dropping at Universal Music Group...

We've witnessed the blowout of Doug Morris. We've seen chairman Lucian Grainge pull the pants down on Antonio "LA" Reid, and delicately boot Sylvia Rhone to the curb. We've seen hundreds of layoffs, and marketshare dominance ceded to Sony Music Entertainment. But that's just the beginning at Universal Music Group, according to multiple sources who have agreed to speak with Digital Music News.

So who's next? Executives inside the mega-label are now pointing to the near-term ouster of Universal Music Group Distribution president & CEO Jim Urie, a longtime fixture at the company. Urie lacks the mega-ego of other high-ranking, big label bosses, but this "isn't about mine is bigger than yours," one source relayed. Instead, Grainge apparently sees little value in an old-line, distribution machine - or, the value of owning distribution in general in this digitally-disrupted era. "There are a lot of people [they] don't think they need," the source continued.

Accordingly, others with targets on their backs include Geoff Mayfield, an executive tied to Urie whose value is apparently being questioned. MayfieldUrie."

In that mix, the recent promotion of Amanda Marks to the position of Global Head of Digital Accounts is being viewed as hostile towards Urie. Marks reports to incoming president of Global Digital Business Rob Wells. Outside of that corporate drama, Urie and Marks appear to be friendly.

But distribution isn't the only battleground. Sources also pointed to plenty of top-level cuts within the next six months, part of a reduction that is being strategically spread out. "There are several senior-level employees that will not be with the company," the first source relayed. "[Grainge and UMG] need to be at a certain place by 2012."

That includes the ongoing "de-East Coastification" of the ranks, an initiative first shared with Digital Music News last year. Indeed, the UMG nerve center is now Los Angeles, not New York, and look no further than recent left-coast relocations for Londoners Grainge and Wells for proof of that.

But now, this process is intensifying. Top executives are apparently hovering in New York "with axes in hand," according to one executive familiar with the plans. And right on cue, word leaked Friday afternoon of a Motown gutting and major back-office consolidations involving Universal Motown Republic Group (UMRG) and Island Def Jam Music Group (IDJMG).

And what about the rank-and-file, the people responsible for so much of what UMG produces? On this, sources agreed that more bloodletting was ahead, though one suspected a continuing, "week-by-week and month-by-month" pare-down to avoid triggering mandatory reporting requirements and media scrutiny. Fittingly, at least twenty staffers were let go as part of the Motown realignment, just hours after this story was first published.

And Then, This: Motown Gets Gutted; Most Staffers Let Go...

Universal Music Group is now gutting its Motown label, and folding the imprint and roster into various sister label groups. Radio-focused All Access pointed to a near-complete elimination of the Motown staff, and a folding of the imprint into Island Def Jam Music Group. The report also pointed to the migration of Motown sublabels Cash Money and SRC into Universal Republic.

That fits neatly into information from other sources, who have been pointing to a 'de-East Coastification' process at UMG for months. That includes the elimination and consolidation of various units, which is now unfolding before our very eyes.

Of course, Motown is an incredibly-powerful name, so the imprint will remain. But in business terms, this is either getting eliminated or massively reduced. Meanwhile, UMG umbrella units Universal Motown Republic Group and Island Def Jam Music Group have consolidated a number of backend functions to reduce redundencies and overhead, according to information confirmed by the company.

Barry Weiss, chairman and CEO of the Universal Motown Republic Group (UMRG) and Island Def Jam Music Group (IDJMG), confirmed the developments. "In an effort to better serve our artists and business partners, UMRG and IDJMG are reallocating resources to achieve greater efficiencies," Weiss offered. "While this will unfortunately result in some redundancy, it will allow for increased expenditures on the creative front across our labels, with particular plans to double our A&R investment at Universal Motown [Republic Group]."

In terms of personel, staffers either lost - and lost big - or got promoted. All Access offered a detailed list of those let go, while Weiss promoted others. The upped list includes Steve Gawley, now EVP of Business and Legal Affairs for the consolidated umbrella labels. Geoge Marolda has been promoted to CFO of the same group, with both reporting directly into Weiss.

Now, the question is what happens to former Motown ruler Sylvia Rhone. The incoming guard at UMG has been pushing Rhone from power, though somehow 'delicate' has shifted to 'totally blatant'. Rhone is apparently still negotiating to operate a smaller sub-label or imprint. But sources continue to insist that Rhone will be effectively removed from the power-making brass in the end - snazzy-sounding imprint or otherwise.

More details as they emerge.

The official video for Rebecca Black's internet hit Friday has been removed from YouTube.

A message in place of the video now reads: "This video is no longer available due to a copyright claim by Rebecca Black. Sorry about that."

A spokesman for the 13-year-old says her team asked YouTube to take the video down because of a dispute with the song's producers Ark Music Factory.

The firm started to charge $2.99 (£1.85) to watch the clip last week.

At the time Black tweeted: "Thanks for all the messages regarding the $2.99 fee added to Friday video, I have NOTHING to do with this!!

"PS...My Manager and Lawyer are on this and are going to get to the bottom of this! Stay tuned..."

Black's lawyers and Ark Music have been in dispute over who owns the rights to the internet phenomenon, which had garnered more than 160 million views, for months.

The singer's parents paid $4,000 (£2,474) for production of the song and video, which has since been performed by Justin Bieber, as well as on hit show Glee.

Black's lawyers sent a letter to Ark Music back in March, accusing them of copyright infringement and unlawful exploitation of her publicity rights.

An 18-year-old computer hacker who stole songs from artists including Lady Gaga has been sentenced to 18 months detention in Germany.

The court heard how the teenager, who called himself DJ Stolen, earned more than 15,000 euros (£13,260) by breaking copyright laws and hacking personal information from a number of singers.

The hacker used phishing emails and Trojan horse software to steal unpublished songs and then offer them for sale on the internet.

Anti-piracy teams in the UK and Germany noticed a growing number of pre-release tracks being leaked much earlier than normal.

Tracks were stolen from Lady Gaga, Justin Timberlake, Leona Lewis, Ke$ha and Mariah Carey in 2009 and 2010.
Kesha Singer Ke$ha had private photos stolen from her computer

The teenager, referred to in court as 'Deniz A' because of his age, was also found guilty of downloading explicit private photos from Kesha's computer.
Apology to Gaga

The court in the German city of Duisburg also heard how a letter of apology was published in Daily Bild, a German tabloid newspaper, from the teenager.

It said: "Dear Lady Gaga, I am ashamed of what I have done. I did not think about the consequences."

The judge ruled that the teen was "driven more by a desire for recognition than by criminal intent".

The 18-year-old was also ordered to have therapy for an addiction to the internet.

Another hacker, 23, whose name wasn't released, was also given an 18 months suspended sentence.

Jeremy Banks, from the International Federation of the Phonograhic Industry (IFPI), which helped with the investigation said the sentences acted as a "deterrent" to others.

He said the crimes caused "huge damage to artists and record companies".

Amy Winehouse cancels two dates of European tour

Amy Winehouse is to cancel part of her European tour after the singer was booed for appearing to be too drunk to perform at a concert in Serbia's capital Belgrade.

She is pulling out of shows in Istanbul, Turkey, on Monday, and Athens, Greece, on Wednesday.

A spokesman said Ms Winehouse would like to apologise to fans, but "feels that this is the right thing to do".

The singer has struggled with addiction for some time.

Her spokesman added that Ms Winehouse will return home after agreeing with management that "she cannot perform to the best of her ability".

Her tour, which was originally scheduled to include 12 performances, is now due to resume in Bilbao, Spain, on 8 July.
'Strained notes'

The concert in Belgrade was the first of the tour, and for almost 90 minutes, Amy Winehouse mumbled her way through parts of songs, said the BBC's Mark Lowen.

He added: "She sang a few strained notes, before stumbling across the stage and at one point throwing her microphone to the floor.

"At times she left the stage altogether - her band attempting to fill in.

"She was frequently booed by the crowd. Many had paid up to €45 (£40) to see her in a country in which wages are some of the lowest in Europe, and their anger was clear."

The Grammy-award winning singer had been under strict instructions not to drink after recently finishing a course of alcohol rehabilitation in London.

Hotel staff on her European tour are said to be under orders to remove alcohol from her room.

When will she be able to tour without this kind of hiccup? Your guess is as good as mine....

Round Up

*Spotify has raised a whopping, $100 million infusion from DST, Kleiner Perkins and Accel, according to information reported Friday by the Wall Street Journal. That comes ahead of an expected US launch, and the company is already claiming a finalized Warner Music Group deal.

*App developer Khu.sh has just partnered with the Gregory Brothers (Bedroom Intruders) to convert words into auto-tuned songs - instantly. The top-level was just shared with Digital Music News; more details after July 4th.

*Also in app news, Play by Yahoo Music has just launched on the Android. The app offers song identification, smart playlisting, and functions like a mobile MP3 player.

*Ticketfly is now putting the final touches on a serious, realtime analytics feature. More details and a formal announcement ahead.

*Vevo just scored another Lady Gaga video exclusive. "The Edge of Glory" is now live.

*And of course, drama surrounds the confession of Tupac assassin Dexter Isaac. The lawyer for accused James Raymond says accusations of plotting and hiring to kill Tupac are unfounded.