Music GroupsArticle at Wall Street Journal.
The merger also requires approval from the Federal Communications Commission. While it is unlikely that the FCC will go against the Justice Department's ruling, it has the power to impose conditions that might make the controversial merger slightly more palatable to the groups lined up against it. A ruling from the FCC is expected in coming weeks.
This just in at Radio Ink: FCC Chairman Kevin Martin said today that the FCC is considering fines for satellite radio broadcasters XM and Sirius for rules violations regarding receiver standards and power levels of its terrestrial repeaters.
In other satellite radio news, today Martin told an audience the National Association of Broadcasters Radio Show that local stations should not be concerned about losing local advertising. The two satellite radio operators cannot have local content and must carry content on a national basis. "We don't have any prohibitions on where ad revenue can come from," he said, "but we do say because they are a national service ... they are not allowed to be on localized content."
• Album sales dropped 5% last week and were 16% lower than the same week last year. For the year, album sales are down 14%. It was a slow week for new releases as Talib Kweli debuted at #2 with sales of only 60,000. High School Musical dropped 40% from its debut tally but still retained #1 with 367,000 scans. Digital track sales dropped 2% last week and were 40% higher than the same week last year. For the year, sales of digital tracks are up 48%.
• Nokia announced its new mobile music store, Ovi. The service, to go live later this year, will sell WMA files over the air and downloaded to PCs. Ovi will have access to existing third-party services like social networks. (paidContent)
• Luaka Bop has found a new, post-V2 home at Red Eye Distribution. (Pitchfork)
• eMusic has renewed agreements with some of its most popular labels: Beggars Group (4AD, XL and Rough Trade), Matador Records, Concord Music Group and ATO Records. (Playlist)
• Sony BMG's "Dave Matthews & Tim Reynolds: Live at Radio City," out September 4th, will be its first music Blu-ray release with support for Dolby TrueHD. (Afterdawn)
• Market research company iSuppli sees a slowing in digital (both downloads and subscriptions) growth through 2008, but expects a "small resurgence" due to greater broadband penetration. (iSuppli)
• Satellite news: XM is moving its Nashville studio to the Sommet Center (home of the Nashville Predators, owned by the City of Nashville and just around the corner from the current studio at the Country Music Hall of Fame), and Sirius is adding a Grateful Dead channel. (The Tennessean and Variety, respectively)
• Mobile carrier Amp'd, which counts MTV and Universal Music Group as its investors, has shut down its service and owes over $100 million to creditors. The company had filed for bankruptcy last month. (Variety)
• Sanctuary has sold its 49% share in the Rough Trade label to the Beggars Group for £800,000 (US $1,651,507). (The Guardian)
• XM and Sirius promised that in the event the two satellite companies merge, the companies will offer a variety of subscription packages. The lowest-priced package would get 50 channels and cost $6.99 a month. Said an analyst, "If the Department of Justice approves the merger, it will be difficult for the FCC to say no." (Reuters)
• Dallas-based hip hop label Clout Records has inked a distribution deal with EMI. Cloud will release Lil Prince's Young and the Wreckless on September 25. (Hip Hop Elements)
• Kansas City-based rock band Vedera has signed with Epic Records. (MySpace, via Kings of A&R)
• Oklahoma state representative Randy McDaniel has proposed a study to find out what incentives Nashville and other cities offer musicians. McDaniel sits on a committee that deals with Oklahoma's tourism, arts and culture. (The Journal Record)
• Ted Cohen, a former EMI exec and now part of TAG Strategic consulting, is on the board of advisers at Txttunes. The company just announced the launch of its text-based distribution and social networking service. Fans can use their cell phones to purchase and download MP3s. Artists can use Txttunes to send text messages to fans. (Press release)
• A profile of Ventura, CA-based Salzer's, where vinyl sales are up 20% this year. (Ventura County Star)
• AllHipHop.com got a makeover and has some new features. The site has partnered with Amazon.com to create an e-store that uses Amazon.com's technology and content. AllHipHop is working with iTunes on a Black Music Month promotion. The site will give away 250,000 promotional codes that can be redeemed for a free mix tape at iTunes. (Press release)
• Big news out of EMI's Caroline Distribution: All regional sales reps are being let go. The three remaining Los Angeles employees are gone. Their accounts are going to be serviced by EMM reps. (Billboard.biz)
• The value of Canada's music sales fell 35% in Q1 of 2007 (to $68.7 million from $105.6 million) a big increase over the 12% drop last year. Digital music sales make up a mere 6% of the market. (CRIA press release)
• XM Satellite Radio announced its earnings for Q1, a net loss of $122 million on revenues of $264 million. Revenues were up 27% year over year. Subscribers increased to 7.9 million from 6.5 million. (Press release)
• The IFPI announced a "major step forward" in licensing music for streaming across different European countries. (Press release)
• A panel at paidContent's @EconSM conference talked about music and social networking. Not a big surprise that panelists said the musicians cannot rely on MySpace alone. (paidContent)
• Though it was just down the road from Vanderbilt, I was unable to attend the Leadership Music Digital Summit 2007 yesterday in Nashville. Paul Resnikoff from Digital Music News was there and has posts on the familiar themes that emerged and the conversation about lack of scarcity in the digital world.
• MusicRow.com covered Terry McBride's speech at the conference. "We must move to monetize the behavior of the consumer, not try to change it," he said in a common refrain. I'd love to hear his thoughts on Qtrax, which attempts to monetize a behavior by trying to change that behavior so it is in line with the only type of licensing agreements that will allow for such attempts to monetize a behavior... (MusicRow.com)
• A Chinese court has ordered Yahoo China to delete links to free web sites that offer music downloads. Beijing's No. 2 Intermediate Court ruled Yahoo should bear some -- but not all -- of the responsibility for the copyright infringement. Warner Music Group, through the IFPI, sued Yahoo China for copyright infringement in January of this year. (Reuters)
• The IFPI's statement on the Yahoo China ruling said "the ruling promises to improve the whole environment in which the local and international music industry does business in China." (IFPI)
• The iinovate blog has a podcast and video interview with Pandora founder and Chief Strategy Officer Tim Westergren. (iinovate)
• A Bank of America analyst said of XM and Sirius "stand-alone values and merger synergy values likely are lower than previously estimated." Based on market valuations, he believes regulatory approval of a merger is 35-40%, but " FCC contacts believe that the percentage is trending lower." (RadioInk)
• Other Music, perhaps the ultimate tastemaker New York music store, has launched its digital download store. Downloads are 320kbps non-variable rate MP3 files. Said the introduction page, "It is very important to us that in this new era, real record stores run by real music fans can still survive and thrive."
• EMI issued a trading update this morning ahead of its announcement of earnings for its fiscal year ended March 31st. Revenue is expected to decline 15% year over year. Digital revenue is expected to increase 59% and will account for 10% of total revenue. Music sales (at constant currency) are in line with guidance, its publishing division has improved operating margin and earnings before interest, depreciation and amortization is expected to be £174 million. Two bullet points stand out. One says EMI is considering the securitization of its publishing assets. The other said the company is suspending dividend payments until its restructuring program has concluded. (Press release)
• Some analyst say a possibly deal with Warner Music Group would be complicated if EMI issues securities backed by its publishing assets. (Reuters)
• Yesterday the RIAA revealed sales figures for 2005 (total revenue down 6.2%, CD sales down 13%) and tried to put a positive spin on the situation. "Today's music marketplace has challenges, but it also offers reason for hope and optimism," said Mitch Bainwol in a statement. "The appetite for music is as strong as ever." (Washington Post)
• EMI's first quarter UK market share pulled even with that of Sony BMG at 16.1%. Universal Music Group was the top dog with 32.8% and Warner Music Group was fourth (of the four majors) with 9.4%. (The Scotsman)
• Warner Bros signed underground legend Murs, the Living Legends member whose previous albums have come out on Def Jux and Record Collector. (SOHH)
• Sirius CEO Mel Karmazin and NAB Radio Board Vice Chairman Russ Withers spoke about a XM/Sirius merger before the US Senate Committee on Commerce, Science & Transportation. Karmazin talked about "more choice at lower prices" and Withers warned of the dangers of a monopoly. (Radio Ink)
A news break for your Friday evening: The National Music Publishers Association is suing XM Satellite Radio.
The issue is the same that is at the heart of a lawsuit brought by record labels: Digital copies on portable players of songs transmitted by XM. Royalties are paid for the broadcast but not for the creation of the digital copy, which the industry has insisted is not covered in the existing licensing agreements. Said NMPA President/CEO David Israelite, "We've read that XM paid Oprah $55 million to develop content. Yet they haven't paid one penny to creators of music for copies on these devices."
Part of XM's statement: "The lawsuit filed by the NMPA is a negotiating tactic to gain an advantage in our ongoing business discussions. XM pays royalties to writers and composers who are also compensated by our device manufacturers. We are confident that the lawsuit is without merit and that we will prevail."
Extra reading:
• New Island Urban president Jermaine Dupri has signed Jagged Edge to his So So Def imprint. Island Urban itself signed California rapper Hot Dolla. (Billboard.biz)
• Sirius and XM executives were questioned by a Senate anti-trust panel yesterday. Questions about market competitiveness rest on whether or not satellite radio faces competition from local terrestrial radio stations, or if its a market unto itself. While no single terrestrial radio station is in direct competition with XM or Sirius, I think consumers view satellite and terrestrial as substitutes -- and anti-trust regulators should take the viewpoint of consumers when assessing the merger's impact. (Forbes.com)
• A court rules that TVT Records must pay Slip-N-Slide $9.1 million for blocking the release of an early Pitbull release. (Vibe.com)
• Borders may sublease four Chicago-area stores as part of a cost savings strategy. The company, which has an earnings announcement tomorrow, has issued a profit warning due in part to sales declines in the music category. (Chicago Tribune)
• Career announcements are a dime a dozen, but this one stands out for an obvious reason: Koch Records has named Scott Givens as its new VP of metal. That's gonna be one sweet business card. (Billboard.biz)
• Albums on flash drives may (or may not) shake up the pop charts. HMV stocked 7,000 flash drives for the new Fratellis album. Hey, if it works, the industry has a new format to milk for a few years, and they'd probably be more than happy to sell protected files in a physical format for a change. (BBC News, via The Velvet Rope)
• Oddity: At one point yesterday, Amy Winehouse's Back To Black was both the #1 and #10 album at iTunes. (iTunes carries both the explicit and clean versions, and both are currently priced at $7.99.) Another SXSW buzz band, The Fratellis, was also in the Top 10.
• XM narrowed its loss to $260 million on revenues of $257 million. Subscribers increased 29% for the year to 7.6 million. (Forbes.com)
• Guitar Center reported a fourth quarter net loss of $40 million (which included special items) on sales of $628.5 million. Sales were up 11.7% year over year. (Press release)
• Ministry of Sound has accused indie label trade associations Impala and AIM of "a complete departure from the stated constitutional aims of both companies." (Billboard.biz)
• Coming to a Jetta commercial near you... Universal Music Publishing Group inked a worldwide arrangement to administer Joy Division's catalog. The company says it will "aggressively promote" the post-punk band's song for sync licensing in film, television and advertising. (Billboard.biz)
• Kalefa Sanneh discovers that "rappers are learning to consider Koch a second home, or even a first one." This line ties in perfect with my posts about rap's continued sales decline: "As record sales keep sliding, the rise of Koch coincides with the lowering of rappers’ expectations." Good article. (New York Times)
• Watch out, Warner, Universal Music Group is stepping up the eco-pressure. The company is a sponsor of a Honda Formula One car that replaced its corporate logos with a picture of the earth. (Stuff.nz)
• EMI wrote Warner Music Group and highlighted its regulatory concerns over a possible acquisition. (Reuters)
• Andy Gershon lands at Epic Records -- as executive VP -- after departing V2. (Billboard.biz)
• Indie retail legend Reckless Records is expanding to a third Chicago location. (Chicago Reader, via Fifth Disc)
• Sirius CEO Mel Karmazin predicts a better than 50/50 chance of getting regulatory approval for a merger with XM. Analysts aren't so optimistic. I'm not either. (BusinessWeek.com)
• EMI is taking the entire 15th floor of a waterfront office building in Jersey City. (The Real Estate)
• Puretracks announced it is offering music in the MP3 format from labels such as Arts & Crafts and Beggars Banquet, which are already available DRM-free elsewhere. (CBC)
• XM and Sirius agree to merge. A "$13 Billion Merger of Equals" they say. (Press release)
• Tower Records founder Russ Solomon has signed a lease at the old Tower Records building on Broadway in Sacramento, CA, and will open a record store in April. (Sacramento Bee)
• Enders Analysis points to a major problem for CD sales that goes beyond consumer sentiment. "The total retailing space that will be lost in 2006 and 2007 is something of the order of 20%." (Times Online)
• Billboard's MarketWatch weekly sales report, which visually compares current sales to the previous two years. (MarketWatch PDF)
• With the DualDisc all but forgotten -- nice idea, bad execution -- let's start talking about Blu-ray. On March 20, Sony BMG will release "Destiny's Child: Live in Atlanta" on Blu-ray for a reasonable $19.95. (High-Def Digest)
• Jon Healey on the music industry, softening sales, the emergence of PlayLouder and the gradual acceptance of the blanket license. (Los Angeles Times)
• It's open letter season. Here's one from Macrovision's president and CEO. ""The solution is to accelerate the deployment of convenient DRM-protected distribution channels -- not to abandon them." (Top Tech News)
• MySpace is testing an Audio Magic content filter to block unauthorized videos. (Question: What about homemade videos with copyrighted music playing in the background? Looks like they'll skate through.) Universal Music Group, NBC/Universal and Fox are taking part in the test. (InformationWeek)
• A Goldman Sachs analyst believes XM and Sirius should work together to lower marketing and promotion costs, but not worry about merging for another three to four years. In that time, possible synergies would be able to be realized and regulatory uncertainties may have passed. (Forbes.com)
• The White Stripes are reportedly going to sign with Warner Bros Records. (Billboard.biz)
• Warner Music Group is going full steam ahead with its corporate social responsibility agenda. By the end of March of 2007, all standard CD and DVD products in the U.S. wil use "ecologically-enhanced paper packaging." The company's Grammy party was carbon neutral. A distribution deal with Righteous Babe would fit the strategy, but I won't hold my breath. (Press release)
• Singshot.com, an online kaoroke site that is run by a former Rhapsody exec and has licensed over 3,000 songs, was purchased by Electronic Arts. (Forbes.com)
• Michael Robertson, founder of MP3.com and MP3Tunes, issued his own open letter that challenged Steve Jobs to sell music in open formats, open up the iPod to other software and make an iTunes for Linux. (MichaelRobertson.com, via Wired's Listening Post blog)
• It's not just Doug Morris who has a beef with YouTube. Indie labels are reportedly angry over YouTube's attitude and terms offered. Said Simon Wheeler, head of digital at Beggars Group, "We fully expect to be compensated fairly and on par with the larger companies, we will not accept second rate terms because we are smaller companies. If we have to take legal measures to protect our rights we will do so." A post at Hypebot says some indies have delivered cease and desist letters to YouTube. Billboard's article makes it clear that Merlin, the new indie label trade group, is not behind the cease and desist letters. (Read article at Billboard.biz)
• XM Radio is moving online. The satellite radio company announced yesterday that XM Radio will be included with the new Windows Vista operating system. Web users will be able to sign up for a free, three-day trial. The regular rate for unlimited listening is $7.99 per month. Current satellite subscribers will receive XM Online at no charge. Why would anybody pay for Internet radio when so many free streams and podcasts are available? Programming and branding. (Read press release)
• Billboard asks which artists will jump to larger venues in 2007. The short list: Gym Class Heros, Mute Math, Joanna Newsom and Paolo Nutini. (Read article at Billboard.biz)
• Controversal online music store Burnlounge is preparing to launch the next version of its software. (Read press release)
• Warner Music Group will release earnings its fiscal first quarter ending December 31, 2006 on February 8, 2007. With so much pain felt over the holidays, I'm curious to see how WMG fared. (Read details at press release)
Today a U.S. District Court judge ruled the major labels' lawsuit against XM Satellite Radio can proceed (read AP article).
Background: Atlantic Recording, BMG Music, Capitol Records and other music companies sued XM for allowing songs to be recorded and store on portable XM receivers. The labels argue they have licensed their content only for broadcast, and that the creation of a digital copy makes XM a distributor as well as a broadcaster.
The judge on the the justification for the lawsuit:
"The record companies sufficiently allege that serving as a music distributor to XM + MP3 users gives XM added commercial benefit as a satellite radio broadcaster."
The judge on XM's claim it is protected by the Audio Home Recording Act of 1992, which allows individuals to record music played on broadcast radio:
""It is manifestly apparent that the use of a radio-cassette player to record songs played over free radio does not threaten the market for copyrighted works as does the use of a recorder which stores songs from private radio broadcasts on a subscription fee basis."
Additional reading:
• The EFF's analysis of the lawsuit
• Washington Post: "A Music Player Only the RIAA Can't Love." A look at the Inno, the device at the heart of the lawsuit.
• BusinessWeek.com: "Copyrights And Wrongs." I disagree with the main thrust of the article. This lawsuit isn't "part of the futile effort by entertainment companies to control how customers use their products." Different uses of content require different licenses. Broadcasting and distributing are different activities with different values to the end user.
• The media has heartily covered the IFPI's report on digital music. One topic that has been widely picked up is the IFPI's declaration that Internet Service Providers will become a target in the music industry's war on piracy. Chairman John Kennedy said litigation would begin "in weeks rather than months." EMI's head of digital operations, Barney Wragg, said the industry has been left with "with no other option." (Read article at The Independent)
• The Guardian's article on the IFPI report showcased one of the industry's reasons for optimism: mobile phones. Wragg on the potential of mobile music: "We have the opportunity to satisfy the impulse purchase. We are acutely aware that we are competing for every pound, every euro and every dollar in the consumer's pocket." (Read article at The Guardian)
• Universal Music Nashville co-chairman James Stroud has left to form James Stroud Productions, a production venture that will handle Billy Currington's next album and about six others. (Read article at The Tennessean)
• Snocap and ReverbNation.com announced a partnership that will allow ReverbNation.com users to sell downloads through the site's DistroNow module. Snocap will handle the customer transcaction and royalty payments. Here's the part that stood out to me: The technology will be incorporated into ReverbNation.com's TunePak, which is a music player that can be sent via email or posted on web pages. That allows songs to be purchased wherever the music player resides. (Read press release)
• FCC Chairman Kevin Martin showed his hand on a possilble merger between XM and Sirius. The two satellite radio operators must remain in place, he said, and pointed out that there is a prohibition of one companies owning both licenses. Shares of both companies dropped immediately. XM was down almost 10% and Sirius sank 7%. (Read article at BusinessWeek.com)
XM Satellite Radio added 4.2 million subscribers in the fourth quarter, bringing its total to 7.6 million, but fell short of its own estimates. The company said it will report positive cash flow from operations during for the fourth quarter of 2006. (It's not positive net income, but it's a start.) Investors were not turned off by the news. Shares initially dropped but finished up 2.27% on Friday. (Read article at Billboard.biz)
From Forbes.com: Sanford Bernstein analyst Craig Moffett found one potential positive in XM's "weak results": an argument for a case to merge with Sirius.
News from CES: Audiovox introduced a new GPS navigation device with XM capability, and JVC unveiled for new XM-ready portable audio devices.
• Sony Urban will be folded in Columbia, and Lisa Ellis was named Executive Vice President, Sony Music Label Group. Hits has the full text of an email accouncement from Howard Stringer. (Read article at Hits or this one at Billboard.biz)
• Phil Quartararo, EVP of EMI Music North America, is leaving to start his own strategic marketing company. (Read article at Variety)
• Sevendust and its label, 7Bros, have partnered with Warner Music Group's Asylum Records. Alpha is slotted for a March 6, 2007 release date. Asylum, along with Cordless and East West, is part of WMG's Independent Label Group. Much ado has been made about WMG's digital gains, but one of the real successes has been Atlantic's deals with a few indies. Downtown and Eleven Seven each had a big year, thanks to Gnarls Barkley and Buckcherry, respectively. And Cordless looks to be establishing its identity. (Read article at IGN.com)
• Snocap hired two execs, Bruce Taylor and Karin Visnick. Taylor will be the VP of marketing while Visnick will be VP of Product Management. (Read press release)
• A bold prediction: XM Satellite Radio Chairman Gary Parsons said regulations would have no reason to think a merger with Sirius would harm compeition. "We are operating in a much larger marketplace than satellite radio ... The competition is predominantly terrestrial radio," he said. (Read article at MarketWatch)
• It's that time of the year: The Hollywood Reporter laid off eight employees, including music editor Chris Morris. The publication is owned by VNU. (Read post at Variety)
• Want to hear "Thinking About You," the Norah Jones track that Yahoo! Music will sell in MP3 format? Click for your choice of WM, RA or Quicktime and prepare to get mellow.
• American Scientist has a review of Chris Anderson's "The Long Tail." Classic first line: "If a book about the demise of the best seller becomes a best seller, does that undermine the book's credibility?" After reviewer Brian Hayes ran through some of Anderson's examples, he came in with some feedback. "Unfortunately, quantitative evidence supporting this proposition is hard to come by," he wrote. In the end, Hayes was disappointed by the lack of "forensic economics" but thinks "Anderson may well be right about the waning influence of the hit parade and the greater scope for ideas without mass-market appeal." (Read article at American Scientist)
• Later this month, eMusic will lower the number of downloads for each of its subscription packages. The $10 plan will drop to 30 from 40. The $15 plan goes to 50 from 65. Existing customers are not subject to the change. The new prices will take effect November 21th. Given eMusic's revenue-sharing model, artists and labels like it when the denominator decreases. Consumers end up paying more per download -- but it's still a great value. (Read article at The Register, via Digital Music News)
• Unavision Communications Inc. has acquired the remaining 50% of Mexico-based Disa Records and Edminosa Publishing. Disa will remain with Universal Music Group. Edminosa will fall under Univision Music Publishing. (Read press release)
• Ludacris announced a development deal with The N Network that will make the rapper executive producer of a television series called "Halls of Fame." (Read article at SOHH.com)
• A rumor that Steve Greenberg may be looking to relaunch S-Curve Records. (Read post at Hits Rumor Mill)
• NPR has a story on Mitch Koulouris, a former Tower Records manager who started Digital Music Group. (Listen to interview at NPR.com)
• The Department of Justice dropped its investigation into Entercom purchases after the company agreed to sell three stations in the Rochester area. Post-sale, Entercom will have about 40% of the Rochester market's radio ad revenue. Before the sale of the three stations, the company would have had over 57% of the market. (Read article at FMBQ)
• A clarification on a post about Snocap's recent deal to put music on MySpace pages. Snocap's publicist informs me this is separate from the Linx web development toolkit. The Snocap MySpace store, I'm told, is an HTML widget that plugs the storefront into existing websites.
• Sony BMG settled with Canadian music fans over its infamous root kit. Hundreds of thousands of consumers will get $8.40, a replacement CD and free downloads. Information on the settlement and how to fle a claim can be found here. (Read article at Vancouver Sun)
• The Zune makes an appearance on "The Ellen Degeneres Show." Degeneres gets the facts a bit mixed up; users cannot take songs from other Zunes, they can only take what is sent to them. (Watch clip on YouTube, via Medialoper)
• Rags Gupta thinks about Napster's possible suitors: wireless carriers, handset makers, cable/DSL providers and XM. For wireless and cable/DSL, Gupta floats the idea that using Napster as a customer-retention strategy could possibly make it a good investment. (Read post at Digital Music News)
• The Motley Fool's Rick Aristotle Munarriz thinks Google is the best fit for Napster. His best argument fits Napster's free, ad-based platform to Google's talent for selling ads. I dunno. Google, currently sitting on cash piles that inch toward the moon, could surely build something far better. (Read article at The Motley Fool)
• An interview with RealNeworks CEO Rob Glaser that hits on the company's parnerships with Sonos and SanDisk. "If you're on the right side of history, there's nothing wrong with starting out with a product at the high end and then riding that into the mainstream. That is the path we're on with Sonos." (TechNewsWorld)
• Delphi has introduced a new XM receiver, the SkyFi3. (Read review at CNET)
• On a panel at the NAB Radio show, Clear Channel CEO Mark Mays predicts a "great renaissance in American radio" and calls for increased consolidation over the next ten years. "We need to be taking content, repurposing it, and giving it to people in a format that they want." (Read article at Radio Ink)
• XM Satellite Radio is in talks with labels over new fees related to downloads and licensing. (Read article at Bloomberg)
• Country star Tim McGraw and producer Byron Gallimore are starting a new label, StyleSonic Records, and will release the soundtrack to McGraw's upcoming movie, Flicka. (Country Weekly)
• Sony BMG expects its European sales to be down 5% for the year; the company's first-half sales were down only 3%. (Read Reuters article)
• IODA has signed up for more labels for digital distribution: Big Daddy Music Distribution Inc, Cargo Records UK, Challenge Records International BV, Select-O-Hits, and Stomp Entertainment. (Read article at Press Release)
• Listen to a webcast of a presentation by Warner Music Group's Edgar Bronfman at Goldman Sachs Communacopia XV Conference. (Hear webcast at WMG Investor Relations)
• EMI could have a problem with its upcoming Robbie Williams album. A song titled "The '90s" reportedly makes accusations against Williams' former manager, Nigel Martin Smith. The album may be delayed while EMI deals with Smith's lawyers. (Metro)
• Analysts are turning positive about XM Satellite Radio. (Radio and Records)
• A profile on the fine folks at Yep Roc Records. (The Charlotte Observer)
• More drama with Victory Records and Hawthorne Heights. Victory has filed a countersuit and warns majors labels the band has two more albums on its deal. (PR Inside)
• Hits predicts a nifty first-week tally for Beyonce's B'day...possibly up to 650,000. Audioslave is on track for a good week but way behind at 130,000. (Hits)
• Today's licensing news: The Orchard has signed a deal that makes its catalog available on the yet-to-be-released, legit P2P service QTRAX. (Press Release)
• Hip hop label Swishahouse boasts about its upcoming plans, which include new albums by Paul Wall, Mike Jones and Lil Keke. (Rap News Network)
• Handleman Company lost $5.9 million on sales of $240.4 million in the first quarter ending July 29th. Music revenues were down 15.7% against the same period last year. "There were very few new releases by top recording artists and those that were released substantially underperformed the new releases in the year ago period," said Chairman and CEO Stephen Strome. (Press Release)
• You could see this coming: Impala, the indie label trade group that got the Sony BMG merger annulled, is threatening to target Universal Music Group's recent acquisition of BMG Music Publishing. (The Guardian)
• The SEC is investigating XM's estimates on subscriber counts and cost of signing up new customers. (Radio Ink)
• Graham Nash will host a half-hour show on XM called "SongStories" in which he will interview songwriters about the stories behind their songs. (Radio Ink)
• Artists are using the virtual world to connect with fans and create innovate experiences. For example, Suzanne Vega performed a concert for about 100 fans that took place at an online amphitheater. (Washington Post)
• An article on the closing of Warner Classics and its impact on classical music. One note: The assertion that classical music didn't find an alternative to shuttered deep-catalog retailers is not true. Whether or not iTunes' classical metadata is "sloppily entered," digital sales of classic music have been quite brisk. (Stereophile)
• An article on the growing tween market. Said Geffen's Ron Fair, "“I believe we are creating a model for a unique form of entertainment that raises the bar aesthetically for smart and savvy tweens growing up in the digital age." (Washington Post)
• Rock radio continues its slide, but country gains one: WKOE, a modern rock station in Monmouth-Ocean, New Jersey is switching to WKMK as a country station. (Billboard Radio Monitor)
• Kemado Records' Keith Abrahamsson will launch Anthology Records, a label and online store that will release obscure and experimental albums starting with China Shops, Suicide Commandos, Sciensts and Parson Sound. Abrahamsson has secured digital rights for three years and has recruited TuneCore to distribute to other online stores. (Yahoo! News)
• Razor & Tie named Beka Calloway the new Senior Director, A&R. At least one band, Sam Champion, is no longer with the label. (Hits Rumor Mill) Matt Shay has been named the VP of A&R/Marketing for the RCA Music Group. (Billboard.biz)
• XM has signed a five-year licensing agreement with ASCAP. (RWOnline) Analysts at Morgan Joseph expect XM's earnings per share to drop as revenues increase. (newratings.com)
• iTunes has grabbed an exclusive on the Beach Boys' Pet Sounds - 40th Anniversary collector's edition. It will be available August 28th; the CD will be in stores four weeks later. (Macworld)
• Country music network CMT has launched CMT Loaded, a new website with a free, ad-based model with videos, live performances, interviews, news, movie trailers and more. (Online Media Daily)
Yesterday the Consumer Electronics Association filed an amacus brief in support of XM in its fight against record labels. Labels and XM are in a dispute over the Inno, a device that can store a digital copy of a song played in an XM broadcast.
In the statement, CEA president and CEO Gary Shapiro decried the "brazen effort by the labels to strong-arm more money from a successful technology industry startup" and argued the Inno is legal under Section 1008 of the Audio Home Recordings Act. That section states that copying for non-commercial use is not considered to be copyright infringement.
The RIAA contends XM does not have the proper license to grant its customers the ability to create a digital copy. XM's license covers only the broadcast of songs. "We believe that this is a case of direct infringement where they are offering a distribution service without a distribution license," the RIAA's Mitch Glazer told BusinessWeek.
Read a PDF of the amacus brief here.
