Wednesday Business Links
Labels trotted out a lot of big names last week but sales were still down 9% versus last year -- though up 9% over the previous week. Rascal Flatts' Still Feels Good lead a large slate of debuts. The country stars' album sold an impressive 546,000 units (8% digital). (Their 78-week-old album Me and My Gang rose ten spots to #46 and has sold 4.6 million.) Sales of digital tracks were up 1% over the previous week and 49% over the same week last year. For the year, digital tracks are up 46%.
Confirming a September 10 report, The European Union cleared the Sony BMG merger. Said the antitrust commissioner, "It clearly shows that the merger would not raise competition concerns in any of the affected markets." Imagine what that statement would have been if Radiohead had been signed to RCA rather than EMI. (AP)
The National Association of Broadcasters has filed comments in the FCC's ownership review. The NAB expressed its general support for "market-based stimulants" that increase women and minority ownership and participation but emphasized its broadcasters need the freedom to stay competitive. "Initiatives to promote diversity in broadcasting would be moot in an environment where radio and television stations are held back from effectively competing in an ever-expanding digital media marketplace." (Radio Ink)
Warner Music Group head honcho Edgar Bronfman, Jr. has agreed to settle a suit with Vivendi, at which he was executive vice chairman after it acquired Seagram, over pension payments. (Reuters)
Billboard.biz compiles some of the blog buzz on Radiohead's pay-what-you-like digital album sales. (Billboard.biz)
How about an economist's take on Radiohead's album sale? Harvard's Greg Mankiw explains that like most economists he doesn't understand tipping. "Normally, we assume that consumers pay as little as they have to when buying the products they want," he wrote. "Yet, when buying meals, haircuts, and taxi services, most consumers voluntarily pay more than they are legally required. Why does this happen? Why is it more true for some services than for others? Why do tipping customs vary from country to country? I have no idea." If the strategy works, Mankiw jokes, he'll "put a hat next to the lectern." Be sure to read the comments. Good stuff. (Greg Mankiw's Blog)
Viacom CEO Philippe Dauman told the U.S. Chamber of Commerce companies should use more DRM, not less, and predicted that anti-piracy measures such as DRM and watermarking "will usher in an unprecedented period of creative output across the globe." (The Inquirer)
Browsing around Amazon MP3, I see all sorts of bargains. Steve Earle's new album is $6.99. Ben Lee's new album is also $6.99. Josh Rouse's is $6.99. M.I.A.'s is $6.97.
Music Groups
