Remaining Three Majors Drop DRM at iTunes, and Why It Matters
"Apple has come to an agreement with Universal Music Group, Warner Music Group and Sony Music that will give iTunes their songs in MP3 format. The majors get a three-tiered pricing structure (not dynamic pricing, and only slightly variable pricing) that finally gives them the ability to price according to demand. There is also word that iPhone users will be able to download from iTunes through their cellular carrier.
The news has been covered widely, and there has been some interesting opinion out there. One blogger thinks there is no reason to ever shop at anywhere but iTunes (I wholeheartedly disagree, compatibility with the iPod is only one reason to shop there). Another believes allowing iPhone users to download via cellular carriers could lead to explosive mobile music sales (if that happens they will probably just replace normal downloads and result in a wash). No, the important effects of this news are further under the surface." [Coolfer]
Changes Coming to the iTunes Store
"Apple today announced several changes to the iTunes® Store (www.itunes.com/uk). Beginning today, all four major music labels — Universal Music Group, Sony BMG, Warner Music Group and EMI, along with thousands of independent labels, are now offering their music in iTunes Plus, Apple’s DRM-free format with higher-quality 256 kbps AAC encoding for audio quality virtually indistinguishable from the original recordings. iTunes customers can also choose to download their favourite songs from the world’s largest music catalogue directly onto their iPhone™ 3G over their 3G network just as they do with Wi-Fi today, for the same price as downloading to their computer. And beginning in April, based on what the music labels charge Apple, songs on iTunes will be available at one of three price points: 59 pence, 79 pence and 99 pence, with most albums still priced at £7.99." [RecordOfTheDay]
Apple vendra sur iTunes sans dispositif anticopie
"Le groupe informatique a annoncé qu’il allait supprimer d’ici à la fin mars les dispositifs anticopie de la musique qu’il vend sur sa plateforme. Les maisons de disque ont longuement milité pour que les internautes ne puissent pas acheter de chansons ou d’albums sans ces dispositifs qui lient le fichier à un seul utilisateur.
Apple vendra sur iTunes sans dispositif anticopie
L’annonce a été faite lors du salon Macworld Expo à San Francisco (Californie, ouest des Etats-Unis) à l’occasion de la présentation par le vice-président du marketing d’Apple, Phil Schiller, du nouveau modèle de l’ordinateur MacBook Pro et d’améliorations aux logiciels qui équipent la gamme Macintosh." [LeSoir]
Showing posts with label Sony BMG. Show all posts
Showing posts with label Sony BMG. Show all posts
1/5/09
EU Parliament Monitor - 05/01/09
Sony BMG Merger Still Under Scrutiny
"The European Parliament continues to seek further scrutiny of the Sony BMG merger, although the major has since demerged and will officially be renamed Sony Music Entertainment in 2009.
EC Commissioner for competition Neelie Kroes has six weeks to provide a written explanation regarding competition in the music market.
Independent labels trade body Impala is also continuing its campaign against the merger and its appeal will be heard in Europe next year. Impala objected to the buy-out of Bertelsmann's stake by Sony BMG, which was approved by the European Commission in September. However, Impala will not launch a new appeal over the buy-out, preferring to focus on the original merger ruling in response to the indies' concerns about market concentration. Sony BMG declined to comment." [Billboard]
Round-up of December Strasbourg sitting
"In a hectic year-end session, MEPs demanded an end to national opt-outs to the 48-hour working week and backed measures to cut Europe's CO2 emissions by 2020. Also during the final sitting of the year, the parliament awarded the 20th Sakharov Prize for human rights to Chinese dissident Hu Jia in absentia.
French President Nicolas Sarkozy defended France's record during its 6-month presidency of the European Union (see article about Tuesday’s meeting – not very detailed) . MEPs mainly gave Mr Sarkozy a positive response for his handling of new EU climate change legislation and the crisis in Georgia." [Europa]
"The European Parliament continues to seek further scrutiny of the Sony BMG merger, although the major has since demerged and will officially be renamed Sony Music Entertainment in 2009.
EC Commissioner for competition Neelie Kroes has six weeks to provide a written explanation regarding competition in the music market.
Independent labels trade body Impala is also continuing its campaign against the merger and its appeal will be heard in Europe next year. Impala objected to the buy-out of Bertelsmann's stake by Sony BMG, which was approved by the European Commission in September. However, Impala will not launch a new appeal over the buy-out, preferring to focus on the original merger ruling in response to the indies' concerns about market concentration. Sony BMG declined to comment." [Billboard]
Round-up of December Strasbourg sitting
"In a hectic year-end session, MEPs demanded an end to national opt-outs to the 48-hour working week and backed measures to cut Europe's CO2 emissions by 2020. Also during the final sitting of the year, the parliament awarded the 20th Sakharov Prize for human rights to Chinese dissident Hu Jia in absentia.
French President Nicolas Sarkozy defended France's record during its 6-month presidency of the European Union (see article about Tuesday’s meeting – not very detailed) . MEPs mainly gave Mr Sarkozy a positive response for his handling of new EU climate change legislation and the crisis in Georgia." [Europa]
EU Commission - 05/01/09
Success for the Commission’s Register for Interest Representatives
"The Commission’s Register for Interest Representatives, launched on 23 June 2008, is progressing well. European citizens now have direct access to information on the existence, diversity and multitude of represented interests; less than six months after the Register was begun, more than 700 organisations are now registered[1], with more being added every day.
There has been a steady and constant flow of some thirty additions per week to the Register. More than 400 organisations representing business and professional organisations are registered, along with more than 150 NGOs. Specialised consultancy firms and law firms lobbying the European institutions are still not signing up." [Europa]
Telecoms: Commission clears amended nationwide Spanish broadband regulations; maintains concerns on lack of high-speed remedies
"The European Commission has, with reservations, given its green light to the Spanish draft regulation on wholesale broadband access, notified by the Spanish regulator, the Comisión del mercado de las telecomunicaciones ("CMT") on 4 December 2008. The Commission believes that the revised version of the draft measures addresses some of the issues on which the Commission had expressed serious doubts (IP/08/1704). However, the Commission still believes that regulation of wholesale broadband access should not be limited to speeds of up to 30 Mb/s. On the basis of the Commission's presently limited powers of oversight, it can only invite the CMT to change its regulatory approach in this regard.
Competition Commissioner Neelie Kroes said: "I welcome CMT's efforts to address the Commission's serious doubts. We need to ensure that alternative operators can compete effectively with Telefónica while setting the right incentives for investments in new generation networks. This would result in more innovation and better prices for consumers."" [Europa]
Judicial Review of Merger Control Decisions After the Impala Saga: Time for Policy Choices?
"Shortly following the adoption of the first EC merger regulation, a question arose among legal scholars and practitioners: will the EC courts make a sufficiently swift and thorough review of the Commission's merger decisions?1 Or, in other words, will judicial review be both effective and expedient enough to be compatible with the constraints of commercial life? The Court of First Instance (the CFI) and the Court of Justice (the ECJ, together with the CFI, the EC Courts) did not shy away from addressing these legitimate concerns. The timeliness of judicial review was significantly enhanced in 2000 when the Rules of Procedure of the CFI and the ECJ were amended to establish an expedited procedure allowing the EC Courts to give priority to certain types of cases.2 Merger control is by far the field of law that has benefited the most from the new procedure.3 As to the thoroughness of the CFI's review, it invites much less criticism now that the CFI has demonstrated its readiness to control Commission decisions extensively and annul them if need be, as illustrated inter alia by its three famous judgments of 2002 annulling prohibition decisions.4 In 2005, the importance of a thorough substantive review was confirmed by the ECJ itself in its no less famous Tetra Laval judgment (Tetra Laval II).5 All these cases were decisive milestones in the coming of age of the judicial review of merger control decisions in the EU." [GlobalCompetitionReview]
"The Commission’s Register for Interest Representatives, launched on 23 June 2008, is progressing well. European citizens now have direct access to information on the existence, diversity and multitude of represented interests; less than six months after the Register was begun, more than 700 organisations are now registered[1], with more being added every day.
There has been a steady and constant flow of some thirty additions per week to the Register. More than 400 organisations representing business and professional organisations are registered, along with more than 150 NGOs. Specialised consultancy firms and law firms lobbying the European institutions are still not signing up." [Europa]
Telecoms: Commission clears amended nationwide Spanish broadband regulations; maintains concerns on lack of high-speed remedies
"The European Commission has, with reservations, given its green light to the Spanish draft regulation on wholesale broadband access, notified by the Spanish regulator, the Comisión del mercado de las telecomunicaciones ("CMT") on 4 December 2008. The Commission believes that the revised version of the draft measures addresses some of the issues on which the Commission had expressed serious doubts (IP/08/1704). However, the Commission still believes that regulation of wholesale broadband access should not be limited to speeds of up to 30 Mb/s. On the basis of the Commission's presently limited powers of oversight, it can only invite the CMT to change its regulatory approach in this regard.
Competition Commissioner Neelie Kroes said: "I welcome CMT's efforts to address the Commission's serious doubts. We need to ensure that alternative operators can compete effectively with Telefónica while setting the right incentives for investments in new generation networks. This would result in more innovation and better prices for consumers."" [Europa]
Judicial Review of Merger Control Decisions After the Impala Saga: Time for Policy Choices?
"Shortly following the adoption of the first EC merger regulation, a question arose among legal scholars and practitioners: will the EC courts make a sufficiently swift and thorough review of the Commission's merger decisions?1 Or, in other words, will judicial review be both effective and expedient enough to be compatible with the constraints of commercial life? The Court of First Instance (the CFI) and the Court of Justice (the ECJ, together with the CFI, the EC Courts) did not shy away from addressing these legitimate concerns. The timeliness of judicial review was significantly enhanced in 2000 when the Rules of Procedure of the CFI and the ECJ were amended to establish an expedited procedure allowing the EC Courts to give priority to certain types of cases.2 Merger control is by far the field of law that has benefited the most from the new procedure.3 As to the thoroughness of the CFI's review, it invites much less criticism now that the CFI has demonstrated its readiness to control Commission decisions extensively and annul them if need be, as illustrated inter alia by its three famous judgments of 2002 annulling prohibition decisions.4 In 2005, the importance of a thorough substantive review was confirmed by the ECJ itself in its no less famous Tetra Laval judgment (Tetra Laval II).5 All these cases were decisive milestones in the coming of age of the judicial review of merger control decisions in the EU." [GlobalCompetitionReview]
12/30/08
EU Commission: Competition - 30/12/08
EUROPEAN PARLIAMENT QUESTIONS SONYBMG APPROVALS
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.
"The European Parliament continues to seek further scrutiny of the Sony BMG merger, although the major has since demerged and will officially be renamed Sony Music Entertainment in 2009.
"One of the most important developments in EC competition policy during 2006 was the Court of First Instance’s (CFI) Impala v. Commission judgment annulling the European Commission’s approval of the merger between the music units of Sony and Bertelsmann. It harshly criticized the Commission’s Decision because it found that the evidence relied on was not capable of substantiating the conclusion. This was the first time that a merger decision was annulled for not meeting the requisite legal standard for authorizing the merger. Consequently, the CFI raised fundamental questions about the standard of proof incumbent on the Commission in its merger review procedures. On
Pan-European Indie Label Group Attacks EC’s Decision to Allow Sony Corporation Buyout of Sony BMG (Because In Other Parts of the World, People Actually Freak Out When This Shit Happens)
12/19/08
EU Parliament Monitor - 19/12/08
European Parliament questions Sony BMG merger
"The indie sector has been given renewed hope that the Sony BMG merger story hasn’t ended following the European Parliament’s decision to ask the EC competition commissioner to justify her decision to approve the merger of the two majors in 2004.
The European Parliament has fired off three questions to Neelie Kroes challenging the Commission about competition in the music market. The questions are:
- Why did the Commission not carry out an in-depth investigation when it adopted its last approval decision?
- What is the Commission's strategy for making sure that SMEs have market access in concentrated sectors like music?
- Will the Commission adopt new rules or guidelines on how competition policy should be adapted to cultural markets such as music?
The commissioner has six weeks to provide a written explanation, although it is unclear what action Parliament can take if it doesn’t like her answers. Meanwhile, European indie organisation IMPALA is still appealing the original EC decisions allowing Sony and BMG to merge, which led to an appeal in the Court of First Instance. An IMPALA spokesman says that the move by Parliament is quite rare and it means Kroes has to justify her decision.
SonyBMG were not commenting." [MusicWeek]
European Parliament questions Sony BMG approvals
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.
They also question the Commission's wider policy regarding allowing such big companies to be created in the music and cultural industries without safeguards to protect smaller independent firms - in essence questioning the approval of the SonyBMG merger in the first place.
As much previously reported, the merger of Sony Corp and Bertlesmann's respective record companies to create SonyBMG in 2004 was not without controversy. Pan-European indie label trade body IMPALA said the creation of a company as big as SonyBMG was anti-competitive and should not be approved by the Commission (who have the power to block such deals). When the Commission then OKed the merger, without conditions, IMPALA went to the European Courts who ruled in the trade body's favour, agreeing that the Commission had failed to sufficiently investigate the merger before giving it the green light and ordering them to reinvestigate the proposals. That they did, subsequently approving the merger for a second time. IMPALA are currently appealing that Commission decision too." [CMUDaily]
European Parliament challenges the Commission again about competition in the music market and the SonyBMG merger, as independents’ appeal continues without new action over Sony buy out
"The European Parliament has challenged the European Commission for the third time over SonyBMG. The EC Commissioner for Competition, Neelie Kroes has six weeks to provide a written explanation regarding:
1. Why the Commission did not carry out an in-depth investigation when it adopted its last approval decision?
2. What the Commission's strategy is for making sure that SMEs have market access in concentrated sectors like music?
3. Whether the Commission will adopt new rules or guidelines on how competition policy should be adapted to the specificities of cultural markets such as music?
In the meantime IMPALA will continue its initial appeal regarding SonyBMG. In September the European Commission approved the buy out by Sony of Bertelsmann's shares in the joint venture SonyBMG and IMPALA objected because no remedies were put in place and there was no detailed investigation. As IMPALA is still in litigation over the creation of SonyBMG in the first place, however, it will not launch a new appeal over the buy out. IMPALA's concerns mainly relate to the market power of SonyBMG (and the other majors) rather than who owns it. IMPALA's appeal in the European courts will be heard again by the judges next year. IMPALA also appealed the EC's second approval decision and this case is on hold while the appeal against the first approval is being dealt with." [RecordOftheDay]
Christa Prets MEP on media literacy in a digital world: MEP Christa Prets wants more "digital education"
"We all need to better understand the media we are touched by daily, especially the young, says Austrian Socialist Christa Prets. MEPs backed her report on "media literacy in a digital world" on Tuesday. In an exclusive interview Ms Prets explained to us what media literacy actually is, how we can improve it and how it can be used to teach the young." [Europa]
"The indie sector has been given renewed hope that the Sony BMG merger story hasn’t ended following the European Parliament’s decision to ask the EC competition commissioner to justify her decision to approve the merger of the two majors in 2004.
The European Parliament has fired off three questions to Neelie Kroes challenging the Commission about competition in the music market. The questions are:
- Why did the Commission not carry out an in-depth investigation when it adopted its last approval decision?
- What is the Commission's strategy for making sure that SMEs have market access in concentrated sectors like music?
- Will the Commission adopt new rules or guidelines on how competition policy should be adapted to cultural markets such as music?
The commissioner has six weeks to provide a written explanation, although it is unclear what action Parliament can take if it doesn’t like her answers. Meanwhile, European indie organisation IMPALA is still appealing the original EC decisions allowing Sony and BMG to merge, which led to an appeal in the Court of First Instance. An IMPALA spokesman says that the move by Parliament is quite rare and it means Kroes has to justify her decision.
SonyBMG were not commenting." [MusicWeek]
European Parliament questions Sony BMG approvals
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.
They also question the Commission's wider policy regarding allowing such big companies to be created in the music and cultural industries without safeguards to protect smaller independent firms - in essence questioning the approval of the SonyBMG merger in the first place.
As much previously reported, the merger of Sony Corp and Bertlesmann's respective record companies to create SonyBMG in 2004 was not without controversy. Pan-European indie label trade body IMPALA said the creation of a company as big as SonyBMG was anti-competitive and should not be approved by the Commission (who have the power to block such deals). When the Commission then OKed the merger, without conditions, IMPALA went to the European Courts who ruled in the trade body's favour, agreeing that the Commission had failed to sufficiently investigate the merger before giving it the green light and ordering them to reinvestigate the proposals. That they did, subsequently approving the merger for a second time. IMPALA are currently appealing that Commission decision too." [CMUDaily]
European Parliament challenges the Commission again about competition in the music market and the SonyBMG merger, as independents’ appeal continues without new action over Sony buy out
"The European Parliament has challenged the European Commission for the third time over SonyBMG. The EC Commissioner for Competition, Neelie Kroes has six weeks to provide a written explanation regarding:
1. Why the Commission did not carry out an in-depth investigation when it adopted its last approval decision?
2. What the Commission's strategy is for making sure that SMEs have market access in concentrated sectors like music?
3. Whether the Commission will adopt new rules or guidelines on how competition policy should be adapted to the specificities of cultural markets such as music?
In the meantime IMPALA will continue its initial appeal regarding SonyBMG. In September the European Commission approved the buy out by Sony of Bertelsmann's shares in the joint venture SonyBMG and IMPALA objected because no remedies were put in place and there was no detailed investigation. As IMPALA is still in litigation over the creation of SonyBMG in the first place, however, it will not launch a new appeal over the buy out. IMPALA's concerns mainly relate to the market power of SonyBMG (and the other majors) rather than who owns it. IMPALA's appeal in the European courts will be heard again by the judges next year. IMPALA also appealed the EC's second approval decision and this case is on hold while the appeal against the first approval is being dealt with." [RecordOftheDay]
Christa Prets MEP on media literacy in a digital world: MEP Christa Prets wants more "digital education"
"We all need to better understand the media we are touched by daily, especially the young, says Austrian Socialist Christa Prets. MEPs backed her report on "media literacy in a digital world" on Tuesday. In an exclusive interview Ms Prets explained to us what media literacy actually is, how we can improve it and how it can be used to teach the young." [Europa]
12/8/08
Music News Bulletin - 08/12/08
Terry McBride Explains How Nettwerk Puts Fans In Control
"Mark Glaser has an absolute must-read interview with music label Nettwerk's CEO Terry McBride. Nettwerk, of course, has been one of a few record labels that really understands how the market has been changing, and has moved aggressively to take advantage of that. The label, which represents some top artists like Coldplay, Barenaked Ladies, K-OS and Avril Lavigne, got a lot of press a couple years back when it agreed to pay for the defense of some folks who were sued by the RIAA for file sharing. But, much more interesting was how it was actively embracing the changing market while other record labels were trying to hold back the tide. I don't agree with everything McBride has to say, but he's a lot closer to understanding where the music market is heading than pretty much everyone else we've seen in the recording industry.
You should really read the entire interview, but a few highlights are things like where he points out that musicians and record labels should be selling the overall brand, not the music." [TechDirt]
This Kraken fights for good
"If you're up on your pirate lore, or perhaps have your Pirates of the
11/26/08
Music News Bulletin - 26/11/08
EMI announces restructuring plans: The troubled music giant is to reveal major restructuring plans, including splitting its business into three distinct global units 7 Nov 2008
"Troubled music giant EMI will today announce major restructuring plans.
Warner Music avoids Q4 blues: Company reports profit increase of 20% Nov 25, 2008
Behind the music: Small is beautiful
Independent labels don't have a lot of advantages when competing with the big hitters, but their passion will ensure their survival
11/7/08
Music News Bulletin - 07/11/08
Sony BMG has unveiled more details of its SBX communications and artist agency
"The new agency is a pan-European joint venture with communications company Exposure designed to develop “entertainment-based communication platforms and provide a richer consumer experience for brands”.
SBX offers its clients what is described as “a full 360-degree proposition, from initial strategic planning and market research to creative work, content programming and fully integrated execution”."[MusicWeek][Billboard]
Sony – Epistle from Stringer
"Sony topper Howard Stringer penned an e-missive to the troops today, announcing the company will be officially renamed Sony Music Entertainment next year, and that Rolf Schmidt-Holtz has signed a new, three-year contract to continue as its chief exec. Guess we’ll still have those dancing Germans to kick-step around for a while longer. Wrote Stringer: “As we approach the end of this calendar year I want to take this opportunity to thank you for the very effective and united effort you have all put into making Sony BMG Music Entertainment a full operating, business and creative partner within Sony Corporation.” As for Rolf, “[his] strong leadership, and his commitment to an open and collaborative work ethic, has been integral to the transformation of our music business." [HitsDailyDouble]
"The new agency is a pan-European joint venture with communications company Exposure designed to develop “entertainment-based communication platforms and provide a richer consumer experience for brands”.
SBX offers its clients what is described as “a full 360-degree proposition, from initial strategic planning and market research to creative work, content programming and fully integrated execution”."[MusicWeek][Billboard]
Sony – Epistle from Stringer
"Sony topper Howard Stringer penned an e-missive to the troops today, announcing the company will be officially renamed Sony Music Entertainment next year, and that Rolf Schmidt-Holtz has signed a new, three-year contract to continue as its chief exec. Guess we’ll still have those dancing Germans to kick-step around for a while longer. Wrote Stringer: “As we approach the end of this calendar year I want to take this opportunity to thank you for the very effective and united effort you have all put into making Sony BMG Music Entertainment a full operating, business and creative partner within Sony Corporation.” As for Rolf, “[his] strong leadership, and his commitment to an open and collaborative work ethic, has been integral to the transformation of our music business." [HitsDailyDouble]
Music News Bulletin - 07/11/08
MySpace, MTV Test Piracy-Profit Plan
"A new technology that essentially allows content owners to profit from piracy will get a high-profile test this month from MySpace and MTV Networks.
Instead of triggering the usual take-down notices, copyright-infringing footage of select MTV Networks programing uploaded by MySpace subscribers would be automatically redistributed with advertisements that would generate revenue for the companies. MTV Networks is the parent company of such channels as MTV, BET, Comedy Central, Spike and Nickelodeon." [Billboard]
EMI, Warner Sign Up To Unlimited MP3 Package
"EMI Music and Warner Music have signed up to an all-you-can-eat download service run by Datz.com, which will provide access to unlimited music in MP3 format for £99.99 ($164.45) a year. The service will allow fans to keep the music when the year is up.
Beggars Group and The Orchard have also signed up to the Datz Music Lounge and more are set to join in the coming weeks. " [Billboard]
Can The Major Labels Handle Their Debt?
"The expanding crisis engulfing the international financial system has music industry executives worried that rising credit costs could eventually affect term loans, interest payments and revolving credit facilities at record labels.
"There is a lack of confidence out there so that regardless of credit worthiness, investors are shunning risk," says Thomas Carroll, senior VP/managing director of SunTrust's Sports and Entertainment Specialty Group."" [Billboard]
Free vs. Fee Content in a Recession
"An article at eMarketer (see http://www.emarketer.com/Article.aspx?id=1006660 ) brings up a topic that is worth discussing in the music business: Will free lose out to paid content in an economic downturn? The article debates whether or not creators will increasingly scoff at giving away their content and turn to sites that pay for their content." [Coolfer]
EMI, one of the world's largest record companies, is considering turning over its distribution, sales and marketing operations in the United States to a rival in an attempt to cut its extensive losses, music industry sources said Friday.
"Three industry sources told Fortune that the storied British company - whose catalog includes the Beatles, the Beach Boys and Coldplay - is talking to Warner Music, SonyBMG and Universal Music Group about assuming these functions in the U.S. Those companies declined to comment." [CNNMoney]
"A new technology that essentially allows content owners to profit from piracy will get a high-profile test this month from MySpace and MTV Networks.
Instead of triggering the usual take-down notices, copyright-infringing footage of select MTV Networks programing uploaded by MySpace subscribers would be automatically redistributed with advertisements that would generate revenue for the companies. MTV Networks is the parent company of such channels as MTV, BET, Comedy Central, Spike and Nickelodeon." [Billboard]
EMI, Warner Sign Up To Unlimited MP3 Package
"EMI Music and Warner Music have signed up to an all-you-can-eat download service run by Datz.com, which will provide access to unlimited music in MP3 format for £99.99 ($164.45) a year. The service will allow fans to keep the music when the year is up.
Beggars Group and The Orchard have also signed up to the Datz Music Lounge and more are set to join in the coming weeks. " [Billboard]
Can The Major Labels Handle Their Debt?
"The expanding crisis engulfing the international financial system has music industry executives worried that rising credit costs could eventually affect term loans, interest payments and revolving credit facilities at record labels.
"There is a lack of confidence out there so that regardless of credit worthiness, investors are shunning risk," says Thomas Carroll, senior VP/managing director of SunTrust's Sports and Entertainment Specialty Group."" [Billboard]
Free vs. Fee Content in a Recession
"An article at eMarketer (see http://www.emarketer.com/Article.aspx?id=1006660 ) brings up a topic that is worth discussing in the music business: Will free lose out to paid content in an economic downturn? The article debates whether or not creators will increasingly scoff at giving away their content and turn to sites that pay for their content." [Coolfer]
EMI, one of the world's largest record companies, is considering turning over its distribution, sales and marketing operations in the United States to a rival in an attempt to cut its extensive losses, music industry sources said Friday.
"Three industry sources told Fortune that the storied British company - whose catalog includes the Beatles, the Beach Boys and Coldplay - is talking to Warner Music, SonyBMG and Universal Music Group about assuming these functions in the U.S. Those companies declined to comment." [CNNMoney]
Music News Bulletin - 07/11/08
Collaborative music site MixMatchMusic seeks first institutional round November 4, 2008
"Two months after its official launch, collaborative music platform developer MixMatchMusic Ltd. is seeking a first round of venture funding of up to $3 million. According to founding CEO Charles Feinn, the company has begun meeting with VCs but hasn't received any term sheets yet. The startup has three full-time employees and has been subsisting on a friends-and-family round since being formed last year. (The company was among several that presented at last month's SanFran MusicTech Summit, an event I wrote about here.)" [TheDeal]
Sony and Bertelsmann End Their Partnership in Music
Sony and Bertelsmann said on Tuesday they would unravel their joint venture in music, ending a four-year partnership that has generated more dissonance than harmony. [OopsTime]
EMI announces restructuring plans 07/11/08
"Troubled music giant EMI will today announce major restructuring plans.
Elio Leoni-Sceti, chief executive of the company's recorded music division, will unveil the plans at a presentation to staff. The Italian Executive will announce that the business will be split into three distinct global units: new music, catalogue and music services, and with an increase in marketing resources, according to the Financial Times. The online music service EMI.com will launch this December." [Guardian]
In Defense Of Major Labels 3-11-08
"Sometimes you write something and it gets taken the wrong way. Last week, for instance, a post about EMI criticized the prevailing online consensus about the free-ness of music. Now, since the post didn't say anything about the many bad things major labels do, some thought that the post was taking the side of major labels and the RIAA. Not true, but fair enough. One of the problems with blogs as a platform is that they make it much easier to criticize things other people say than to offer a cohesive and nuanced position of your own. Here, then, is one take on the decline and fall of the music business and related issues (the RIAA, DMCA, downloading, layoffs, indie as a model, creative commons, etc.). The bottom line: everyone is going to have to accept that things are going to get a little worse." [Idolator]
Now That’s What They Called Synergy! 10 Years of Pooling Hit Singles 3/11/08
"In commemorating the first decade of the Now That’s What I Call Music! album series in the United States, Wednesday’s New York Times does a fine job running down the relevant stats: 29 volumes in the main series! 61 million in sales! 12 Britney Spears songs! But the piece fails to mention the core reason that the series—also celebrating a quarter-century in Britain, where it started—launched over here in the first place: the U.S. labels’ murder of the commercial single." [Idolator]
"Two months after its official launch, collaborative music platform developer MixMatchMusic Ltd. is seeking a first round of venture funding of up to $3 million. According to founding CEO Charles Feinn, the company has begun meeting with VCs but hasn't received any term sheets yet. The startup has three full-time employees and has been subsisting on a friends-and-family round since being formed last year. (The company was among several that presented at last month's SanFran MusicTech Summit, an event I wrote about here.)" [TheDeal]
Sony and Bertelsmann End Their Partnership in Music
Sony and Bertelsmann said on Tuesday they would unravel their joint venture in music, ending a four-year partnership that has generated more dissonance than harmony. [OopsTime]
EMI announces restructuring plans 07/11/08
"Troubled music giant EMI will today announce major restructuring plans.
Elio Leoni-Sceti, chief executive of the company's recorded music division, will unveil the plans at a presentation to staff. The Italian Executive will announce that the business will be split into three distinct global units: new music, catalogue and music services, and with an increase in marketing resources, according to the Financial Times. The online music service EMI.com will launch this December." [Guardian]
In Defense Of Major Labels 3-11-08
"Sometimes you write something and it gets taken the wrong way. Last week, for instance, a post about EMI criticized the prevailing online consensus about the free-ness of music. Now, since the post didn't say anything about the many bad things major labels do, some thought that the post was taking the side of major labels and the RIAA. Not true, but fair enough. One of the problems with blogs as a platform is that they make it much easier to criticize things other people say than to offer a cohesive and nuanced position of your own. Here, then, is one take on the decline and fall of the music business and related issues (the RIAA, DMCA, downloading, layoffs, indie as a model, creative commons, etc.). The bottom line: everyone is going to have to accept that things are going to get a little worse." [Idolator]
Now That’s What They Called Synergy! 10 Years of Pooling Hit Singles 3/11/08
"In commemorating the first decade of the Now That’s What I Call Music! album series in the United States, Wednesday’s New York Times does a fine job running down the relevant stats: 29 volumes in the main series! 61 million in sales! 12 Britney Spears songs! But the piece fails to mention the core reason that the series—also celebrating a quarter-century in Britain, where it started—launched over here in the first place: the U.S. labels’ murder of the commercial single." [Idolator]
11/3/08
Music News Bulletin - 03/11/08
Sony BMG posts loss
"Sony BMG lost $57m (£34.5m) in the three months to September 30, with sales down 11% year on year, parent company Sony Corp has announced. Sales and operating revenue at the major were $762m (£461.3m) for the quarter, down from $851m (£515.1m) in the same quarter in 2007. Sony said that the loss reflects the impact of lower revenue and re-structuring costs of $4m (£2.4m)" [Coolfer]
IMEEM DO DEAL WITH BEGGARS
"Music based social networking whatnot Imeem yesterday announced it had entered into a worldwide licensing and marketing partnership with the Beggars Group and Matador Records, which will see the addition of music and video from those labels and all their many imprints onto the Imeem service." [CMUDaily]
EMI MAKES DEAL WITH INMOTION
"EMI Music have cut a deal with InMotion Entertainment, a major US airport based entertainment retailer, to put their content into the company's PlayPoint Media Hotspot kiosks, a touch screen facility used by travellers to download MP3s ahead of boarding their flights. InMotion have a total of forty five of the machines at twenty of the largest US airports. Users need a credit card and their own portable player, of course, to use the download platform, which will retail albums at a cost of $11.99." [CMUDaily]
"Sony BMG lost $57m (£34.5m) in the three months to September 30, with sales down 11% year on year, parent company Sony Corp has announced. Sales and operating revenue at the major were $762m (£461.3m) for the quarter, down from $851m (£515.1m) in the same quarter in 2007. Sony said that the loss reflects the impact of lower revenue and re-structuring costs of $4m (£2.4m)" [Coolfer]
IMEEM DO DEAL WITH BEGGARS
"Music based social networking whatnot Imeem yesterday announced it had entered into a worldwide licensing and marketing partnership with the Beggars Group and Matador Records, which will see the addition of music and video from those labels and all their many imprints onto the Imeem service." [CMUDaily]
EMI MAKES DEAL WITH INMOTION
"EMI Music have cut a deal with InMotion Entertainment, a major US airport based entertainment retailer, to put their content into the company's PlayPoint Media Hotspot kiosks, a touch screen facility used by travellers to download MP3s ahead of boarding their flights. InMotion have a total of forty five of the machines at twenty of the largest US airports. Users need a credit card and their own portable player, of course, to use the download platform, which will retail albums at a cost of $11.99." [CMUDaily]
10/24/08
Music News Bulletin: 24/10/08
What lies ahead for Sony Music?
"Since Sony purchased BMG's half of the companies' joint venture, people have wondered what Sony will do to make the acquisition pay off. Leadership under one roof is a good start. That should have a positive impact by itself. Integration was brought up in the Sony Corp. press release that announced the acquisition. Said Sir Howard Stringer,
This acquisition will allow us to achieve a deeper and more robust integration between the wide-ranging global assets of the music company and Sony's products, operating companies and affiliates. It enables us to offer a total entertainment experience to consumers." [Coolfer]
Sony seeks to harmonize music, electronics
"Now that Sony Corp. and Bertelsmann AG have broken off their troubled relationship, known as Sony BMG, the Japanese company hopes to harmonize its consumer electronics and its music, a duo that was badly out of sync.
The music business combination four years ago made Sony BMG the world's No. 2 record label, generating savings and pre-empting other industry consolidation. But the venture's cost-cutting didn't keep pace with falling CD sales, and the two companies' digital strategies didn't jibe. So they called it quits, and Sony bought out its partner for $900 million in a deal that closed Oct. 1.
Selling its 50 percent stake will let Bertelsmann refocus on its growing TV, magazines and book publishing businesses. And full ownership of the music venture gives Sony control of a medium it can use to drive electronics sales, just as it is using wholly owned Sony Pictures to help sell the Bravia line of TVs. The new company is called Sony Music Entertainment Inc.
"It's nice to see Sony at least trying to line up some of their content efforts with their hardware," said Michael Gartenberg, vice president of global strategy for Jupiter Media. "Up until now, the left hand never seemed to know what the right hand was doing."" [RecordOfTheDay]
Click here to read more from the Music News Bulletin
"Since Sony purchased BMG's half of the companies' joint venture, people have wondered what Sony will do to make the acquisition pay off. Leadership under one roof is a good start. That should have a positive impact by itself. Integration was brought up in the Sony Corp. press release that announced the acquisition. Said Sir Howard Stringer,
This acquisition will allow us to achieve a deeper and more robust integration between the wide-ranging global assets of the music company and Sony's products, operating companies and affiliates. It enables us to offer a total entertainment experience to consumers." [Coolfer]
Sony seeks to harmonize music, electronics
"Now that Sony Corp. and Bertelsmann AG have broken off their troubled relationship, known as Sony BMG, the Japanese company hopes to harmonize its consumer electronics and its music, a duo that was badly out of sync.
The music business combination four years ago made Sony BMG the world's No. 2 record label, generating savings and pre-empting other industry consolidation. But the venture's cost-cutting didn't keep pace with falling CD sales, and the two companies' digital strategies didn't jibe. So they called it quits, and Sony bought out its partner for $900 million in a deal that closed Oct. 1.
Selling its 50 percent stake will let Bertelsmann refocus on its growing TV, magazines and book publishing businesses. And full ownership of the music venture gives Sony control of a medium it can use to drive electronics sales, just as it is using wholly owned Sony Pictures to help sell the Bravia line of TVs. The new company is called Sony Music Entertainment Inc.
"It's nice to see Sony at least trying to line up some of their content efforts with their hardware," said Michael Gartenberg, vice president of global strategy for Jupiter Media. "Up until now, the left hand never seemed to know what the right hand was doing."" [RecordOfTheDay]
Click here to read more from the Music News Bulletin
10/23/08
Music News Bulletin - 23/10/08
Sony completes buyout of Bertelsmann's stake in music label October 2, 2008
"Bertelsmann AG's planned divestiture from the Sony BMG Music Entertainment Inc. joint venture is now complete, as Sony Corp. [SNE] announced that it had bought out the German media giant's 50% stake. The sale, rumored for months and announced Aug. 5, was approved by EU regulators in mid-September.
The newly renamed Sony Music Entertainment Inc. will be a wholly-owned subsidiary of Sony Corp. Bertelsmann's stake was valued at $900 million, but an additional $300 million in cash on the company's balance sheet pushed the value of the deal up to $1.2 billion." [TheDeal]
Play.com Steps Up Music Download Battle With 3 Million DRM-free Tracks From All Four Majors 10 Oct 2008
"UK e-tailer Play.com has stepped into the music download battle by signing the four major music labels to its PlayDigital online store to offer more than 3 million DRM-free MP3 tracks that can be played on any device. In a move directly aimed at iTunes, tracks and albums currently being sold at a cheaper price than at the Apple- owned store. More details at sister site paidContent.co.uk." [PaidContent]
Baidu Unveils New Internet Song Channel October 22, 2008
"After Google (GOOG) launched a free genuine music search service, Chinese search engine Baidu (BIDU) has now also taken action to resolve the problems brought by pirated music and the search company ahs launched a channel for newly published songs and music.
The new channel, which is entitled "New Song Debut", is a cooperation with seven record companies, including Emperor Entertainment Group, Ocean Butterflies Music Group, EMI Music, Music Nation, Rock Records & Tapes, Huayi Brothers and B in Music." [ChinaNews]
Blip.fm raises funding, CEO Yasuda discusses reorg October 23, 2008
"Fuzz Artists Inc. chief executive Jeff Yasuda revealed to me Monday at the SanFran MusicTech Summit that his company has raised additional funding in support of its Blip.fm social music playlisting service. We followed up that brief conversation with a longer one, in which he offered additional details on the fundraising and his plans for the company.
Yasuda hit up Fuzz's existing angel investors for the company's fourth installment of capital since 2005, although the total funding for his operation remains less than $10 million. He declined to name the investors. The entrepreneur said in May that unidentified individuals connected with Google Inc. [GOOG] have invested in the past. The round remains open, with room for first-time backers to participate, Yasuda added." [TheDeal]
"Bertelsmann AG's planned divestiture from the Sony BMG Music Entertainment Inc. joint venture is now complete, as Sony Corp. [SNE] announced that it had bought out the German media giant's 50% stake. The sale, rumored for months and announced Aug. 5, was approved by EU regulators in mid-September.
The newly renamed Sony Music Entertainment Inc. will be a wholly-owned subsidiary of Sony Corp. Bertelsmann's stake was valued at $900 million, but an additional $300 million in cash on the company's balance sheet pushed the value of the deal up to $1.2 billion." [TheDeal]
Play.com Steps Up Music Download Battle With 3 Million DRM-free Tracks From All Four Majors 10 Oct 2008
"UK e-tailer Play.com has stepped into the music download battle by signing the four major music labels to its PlayDigital online store to offer more than 3 million DRM-free MP3 tracks that can be played on any device. In a move directly aimed at iTunes, tracks and albums currently being sold at a cheaper price than at the Apple- owned store. More details at sister site paidContent.co.uk." [PaidContent]
Baidu Unveils New Internet Song Channel October 22, 2008
"After Google (GOOG) launched a free genuine music search service, Chinese search engine Baidu (BIDU) has now also taken action to resolve the problems brought by pirated music and the search company ahs launched a channel for newly published songs and music.
The new channel, which is entitled "New Song Debut", is a cooperation with seven record companies, including Emperor Entertainment Group, Ocean Butterflies Music Group, EMI Music, Music Nation, Rock Records & Tapes, Huayi Brothers and B in Music." [ChinaNews]
Blip.fm raises funding, CEO Yasuda discusses reorg October 23, 2008
"Fuzz Artists Inc. chief executive Jeff Yasuda revealed to me Monday at the SanFran MusicTech Summit that his company has raised additional funding in support of its Blip.fm social music playlisting service. We followed up that brief conversation with a longer one, in which he offered additional details on the fundraising and his plans for the company.
Yasuda hit up Fuzz's existing angel investors for the company's fourth installment of capital since 2005, although the total funding for his operation remains less than $10 million. He declined to name the investors. The entrepreneur said in May that unidentified individuals connected with Google Inc. [GOOG] have invested in the past. The round remains open, with room for first-time backers to participate, Yasuda added." [TheDeal]
10/20/08
Music News Bulletin - 20/10/08
Bertelsmann today launches its new BMG Rights Management business, promising tailor-made services for songwriters and performers who want support in “the creation, marketing and licensing, collection and accounting, as well as advance financing of their music repertoire”
"The new organisation launches with a selection of European music catalogues that the company retained from the former Sony BMG portfolio. These include works from more than 200 artists and the company is planning to expand on this, initially with further European acts.
Bertelsmann says that its “core competency” will be “advising songwriters and performers in building their repertoire, supporting them with marketing and licensing services, and providing transparent coverage of all their rights management needs”. It will also provide financing during the rights-building process." [MusicWeek] [BillBoard]
The Mechanical-Copyright Protection Society (MCPS) has announced new rates and blanket licensing deals for UK independent production companies using library music
"The Independent Production Company (IPC) licence provides access to over 300,000 pieces of music from 150 music libraries covering all genres and styles.
The efficient ‘one-stop-shop’ system means only one application is required for all music use to be covered." [MusicWeek]
Online music piracy fell by 10% in 2008, according to new findings from Entertainment Media Research
"The company’s latest Digital Music Survey attributes the fall to the changing attitudes of internet service providers to piracy –earlier this year ISPs agreed to send letters to customers it suspects are sharing files under pressure from the BPI. he survey, which polls 1,500 UK consumers, also point to the popularity of music videos on YouTube as a further sign for optimism among the music industry." [MusicWeek]
U.K. Government Aims For ‘Digital Britain’
"The U.K. government is to develop a "Digital Britain" action plan in an effort to ensure the U.K. will be at the forefront of innovation and investment in the digital and communications industries. The report will be led by the first minister for communications, technology and broadcasting, Stephen Carter. The government says the sector is worth £52 billion ($89.9 billion) a year to the economy." [BillBoard]
Bush Signs Controversial Anti-Piracy Law
"U.S. President George W. Bush signed into law on Monday a controversial bill that would stiffen penalties for movie and music piracy at the federal level. The law creates an intellectual property czar who will report directly to the president on how to better protect copyrights both domestically and internationally. The Justice Department had argued that the creation of this position would undermine its authority." [BillBoard]
"The new organisation launches with a selection of European music catalogues that the company retained from the former Sony BMG portfolio. These include works from more than 200 artists and the company is planning to expand on this, initially with further European acts.
Bertelsmann says that its “core competency” will be “advising songwriters and performers in building their repertoire, supporting them with marketing and licensing services, and providing transparent coverage of all their rights management needs”. It will also provide financing during the rights-building process." [MusicWeek] [BillBoard]
The Mechanical-Copyright Protection Society (MCPS) has announced new rates and blanket licensing deals for UK independent production companies using library music
"The Independent Production Company (IPC) licence provides access to over 300,000 pieces of music from 150 music libraries covering all genres and styles.
The efficient ‘one-stop-shop’ system means only one application is required for all music use to be covered." [MusicWeek]
Online music piracy fell by 10% in 2008, according to new findings from Entertainment Media Research
"The company’s latest Digital Music Survey attributes the fall to the changing attitudes of internet service providers to piracy –earlier this year ISPs agreed to send letters to customers it suspects are sharing files under pressure from the BPI. he survey, which polls 1,500 UK consumers, also point to the popularity of music videos on YouTube as a further sign for optimism among the music industry." [MusicWeek]
U.K. Government Aims For ‘Digital Britain’
"The U.K. government is to develop a "Digital Britain" action plan in an effort to ensure the U.K. will be at the forefront of innovation and investment in the digital and communications industries. The report will be led by the first minister for communications, technology and broadcasting, Stephen Carter. The government says the sector is worth £52 billion ($89.9 billion) a year to the economy." [BillBoard]
Bush Signs Controversial Anti-Piracy Law
"U.S. President George W. Bush signed into law on Monday a controversial bill that would stiffen penalties for movie and music piracy at the federal level. The law creates an intellectual property czar who will report directly to the president on how to better protect copyrights both domestically and internationally. The Justice Department had argued that the creation of this position would undermine its authority." [BillBoard]
8/29/08
Music News Bulletin - 29/08/08
Now Hollywood is chasing UK downloaders: And getting the wrong guy 29/08/08
"Tiscali threatened to disconnect a customer for illegally downloading a TV show last week, after receiving a copyright infringement notice from a Hollywood studio. The only problem was the customer had quit the ISP months before the alleged transgression was made." [TheRegister]
Pandora prepares to join titsup.com club: Web radio outfit struggling to cover royalties 18/08/08
"This weekend saw a cry for help from personalised web radio outfit Pandora. It blubbed that music industry royalties are too high for it to survive on meagre web 2.0 advertising revenues. In a Washington Post confessional, the firm's founder and CEO Tim Westergren said: "We're approaching a pull-the-plug kind of decision. This is like a last stand for webcasting."" [TheRegister]
World shocked (shocked!) by Legal P2P: Old news sinks in 13/08/09
"Why does the idea of legal P2P - something music fans have been clamouring for since the original Napster - still cause so much confusion? Britain is set to be the first country outside Korea where punters will be offered such services (as we revealed back in June), but the idea still seems too incredible for many journalists and bloggers to comprehend." [TheRegister]
EU Gives Green Light to Sony's Acquisition of BMG 16/08/09
"Yesterday the European Union approved Sony Music's acquisition of Bertelsmann's half of its Sony BMG joint venture. Last month Sony agreed to purchase BMG from Bertelsmann for around $900 million. The need for regulators' approval is a standard procedure and an especially potent topic in a recorded music market with such concentrated ownership. The EU approval effectively ends an appeal by indie trade group Impala that asked the EU to rescind its original approval of the merger. As I wrote last year, indie label sales in the US -- either because of or in spite of the merger -- fared well since the merger. From the time of the merger through October of 2007, a period of just over three years, Sony BMG's share of US album sales dropped to 21.76% from 29.78%. Indies rose to 20.55% from 17.58%." [Coolfer]
Another Case Against Long Tail Economics 15/08/09
"At Harvard Business School's Working Knowledge, John A. Quelch has a post titled "Long-Tail Economics? Give Me Blockbusters!" Quelch is the Lincoln Filene Professor of Business Administration at Harvard Business School. Quelch explains the benefits and lures of blockbusters and offers five characteristics that define a blockbuster. His bottom line is this:
More risky than pursuing blockbusters is not to pursue them, to condemn your enterprise to a lifetime of slave labor harvesting the long tail of micro-opportunities rather than imagining, pursuing, and marketing the global solution to an important, widely shared problem." [Coolfer]
"Tiscali threatened to disconnect a customer for illegally downloading a TV show last week, after receiving a copyright infringement notice from a Hollywood studio. The only problem was the customer had quit the ISP months before the alleged transgression was made." [TheRegister]
Pandora prepares to join titsup.com club: Web radio outfit struggling to cover royalties 18/08/08
"This weekend saw a cry for help from personalised web radio outfit Pandora. It blubbed that music industry royalties are too high for it to survive on meagre web 2.0 advertising revenues. In a Washington Post confessional, the firm's founder and CEO Tim Westergren said: "We're approaching a pull-the-plug kind of decision. This is like a last stand for webcasting."" [TheRegister]
World shocked (shocked!) by Legal P2P: Old news sinks in 13/08/09
"Why does the idea of legal P2P - something music fans have been clamouring for since the original Napster - still cause so much confusion? Britain is set to be the first country outside Korea where punters will be offered such services (as we revealed back in June), but the idea still seems too incredible for many journalists and bloggers to comprehend." [TheRegister]
EU Gives Green Light to Sony's Acquisition of BMG 16/08/09
"Yesterday the European Union approved Sony Music's acquisition of Bertelsmann's half of its Sony BMG joint venture. Last month Sony agreed to purchase BMG from Bertelsmann for around $900 million. The need for regulators' approval is a standard procedure and an especially potent topic in a recorded music market with such concentrated ownership. The EU approval effectively ends an appeal by indie trade group Impala that asked the EU to rescind its original approval of the merger. As I wrote last year, indie label sales in the US -- either because of or in spite of the merger -- fared well since the merger. From the time of the merger through October of 2007, a period of just over three years, Sony BMG's share of US album sales dropped to 21.76% from 29.78%. Indies rose to 20.55% from 17.58%." [Coolfer]
Another Case Against Long Tail Economics 15/08/09
"At Harvard Business School's Working Knowledge, John A. Quelch has a post titled "Long-Tail Economics? Give Me Blockbusters!" Quelch is the Lincoln Filene Professor of Business Administration at Harvard Business School. Quelch explains the benefits and lures of blockbusters and offers five characteristics that define a blockbuster. His bottom line is this:
More risky than pursuing blockbusters is not to pursue them, to condemn your enterprise to a lifetime of slave labor harvesting the long tail of micro-opportunities rather than imagining, pursuing, and marketing the global solution to an important, widely shared problem." [Coolfer]
8/12/08
EU Commission: Competition - 12/08/08
The European Commission’s Reexamination of the SonyBMG Merger: A Precedent-Setting Attempt to Jump the Fence August 11, 2008
ABSTRACT: On July 13, 2006, the European Court of First Instance annulled the European Commission’s decision authorizing the creation of Sony BMG, a joint venture incorporating the worldwide recorded music businesses of Sony and Bertelsmann. In its 2004 clearance decision, the Commission had concluded that the merger would not create or strengthen a collective dominance position on the part of the majors (i.e., Universal, Sony BMG, Warner, and EMI). In Impala v. Commission, however, the CFI harshly criticized the decision because it found that the evidence relied on by the Commission was not capable of substantiating this conclusion. [LawProfessors]
Impala vs. Commission... and the alleged 'blow' for the Commission 12/08/06
It took me a while to go through the IMPALA vs. Commission judgment. Everyone knows the story: the CFI quashed down the Commission's clearance of the JV between Sony and Bertelsmann. The Commission, after having raised serious objections against the transaction (on the grounds that there was arguably tacit collusion on the market prior to the merger, and that this situation would be further strengthened following completion of the transaction) made a surprising U-turn and cleared the deal without further objections. [ProfessorGeradin]
The Commission's Non Contractual Liability in the Field of Merger Control - Don't Use a Hammer When You Need a Screwdriver 01/07/07
It has become conventional wisdom to view the rulings handed down by the CFI in Airtours, Schneider, Tetra Laval and Impala as unprecedented setbacks for the European Commission ("the Commission") that would usher in a new era of administrative accountability in the field of merger control. However, several commentators still consider that the Commission regretfully enjoys a de facto power of "life or death" over notified mergers, and that judgments striking down its decisions are unlikely to change much in practice. Parties to a blocked merger generally abandon their projects following the Commission's decision, irrespective of the outcome of the actions they may subsequently bring before the EC Courts (e.g. the Airtours/First Choice or Schneider/Legrand mergers). Third parties - competitors or consumers - to an illegally approved merger have little prospect of inducing the Commission to unscramble a consummated transaction (e.g. the Sony/BMG merger).
Commission again clears music giants' merger 3 October 2007
The European Commission has cleared, for a second time and without imposing any 'remedies', the joint venture between music companies Sony and BMG, which had been set aside by the European Court of Justice in 2006. [Euractiv]
ABSTRACT: On July 13, 2006, the European Court of First Instance annulled the European Commission’s decision authorizing the creation of Sony BMG, a joint venture incorporating the worldwide recorded music businesses of Sony and Bertelsmann. In its 2004 clearance decision, the Commission had concluded that the merger would not create or strengthen a collective dominance position on the part of the majors (i.e., Universal, Sony BMG, Warner, and EMI). In Impala v. Commission, however, the CFI harshly criticized the decision because it found that the evidence relied on by the Commission was not capable of substantiating this conclusion. [LawProfessors]
Impala vs. Commission... and the alleged 'blow' for the Commission 12/08/06
It took me a while to go through the IMPALA vs. Commission judgment. Everyone knows the story: the CFI quashed down the Commission's clearance of the JV between Sony and Bertelsmann. The Commission, after having raised serious objections against the transaction (on the grounds that there was arguably tacit collusion on the market prior to the merger, and that this situation would be further strengthened following completion of the transaction) made a surprising U-turn and cleared the deal without further objections. [ProfessorGeradin]
The Commission's Non Contractual Liability in the Field of Merger Control - Don't Use a Hammer When You Need a Screwdriver 01/07/07
It has become conventional wisdom to view the rulings handed down by the CFI in Airtours, Schneider, Tetra Laval and Impala as unprecedented setbacks for the European Commission ("the Commission") that would usher in a new era of administrative accountability in the field of merger control. However, several commentators still consider that the Commission regretfully enjoys a de facto power of "life or death" over notified mergers, and that judgments striking down its decisions are unlikely to change much in practice. Parties to a blocked merger generally abandon their projects following the Commission's decision, irrespective of the outcome of the actions they may subsequently bring before the EC Courts (e.g. the Airtours/First Choice or Schneider/Legrand mergers). Third parties - competitors or consumers - to an illegally approved merger have little prospect of inducing the Commission to unscramble a consummated transaction (e.g. the Sony/BMG merger).
Commission again clears music giants' merger 3 October 2007
The European Commission has cleared, for a second time and without imposing any 'remedies', the joint venture between music companies Sony and BMG, which had been set aside by the European Court of Justice in 2006. [Euractiv]
8/6/08
Music News Bulletin - 06/08/08
Why is Bertelsmann selling, and Sony buying? August 5, 2008
"Tuesday's news confirmed what reports speculated since March. Sony Corp. is acquiring the 50% stake in its Sony BMG joint venture with Bertelsmann AG it didn't own for $1.2 billion. In March, Bertelsmann CEO Hartmut Ostrowski hired Morgan Stanley to conduct a global strategic review of the German media giant after poor earnings in 2007, which it blamed on its Direct Group book club activities (sold to Phoenix's Najafi Cos.) and settlement costs related to now-legitimate file-sharing site Napster. It also sold its BMG Music Publishing division for $2.1 billion to Vivendi SA." [TheDeal]
Sony pays $1.2bn to buy out Bertelsmann from Sony BMG August 6th, 2008
"After protracted negotiations, Sony is now the full owner of Sony BMG, having paid former partner Bertelsmann Media Group $1.2 billion to buy out its 50% stake. The company will be renamed as Sony Music Entertainment, and will sit within Sony’s North American division." [MusicAlly]
Sony Takes It All August 06, 2008
"There's not much surprise - although their corporate pages don't mention it anywhere - that Sony has bought out Bertelsmann's stake in Sony BMG.
Well, no surprise that it's happened - it's been expected all week - but you'd have to wonder why Sony is so excited. The analysts line is that this is going to make it easier to integrate Sony music product into other Sony businesses; but we can't imagine that the poorly organised Sony corporate structure is going to make it any easier just because there's three letters gone from the letterhead.
You wonder if the real plan is to make it more-or-less impossible for anyone investigating the original merger of Sony and BMG to enforce a divorce, while allowing Bertelsmann to escape a sector in which it has lost heart." [XRRF]
O2 UK launches My Play Music Store With Sony BMG (UK)
"O2 UK, following the footsteps of Vodafone, will now be doing a music play of it’s own with Sony BMG. MyPlay is now added to its O2 Active portal, that offers videos, full-track downloads and realtones in a store. The uniqueness of My Play is that users get to music “simply by clicking on artist microsites as their gateway into the store”." [WirelessFederation]
"Tuesday's news confirmed what reports speculated since March. Sony Corp. is acquiring the 50% stake in its Sony BMG joint venture with Bertelsmann AG it didn't own for $1.2 billion. In March, Bertelsmann CEO Hartmut Ostrowski hired Morgan Stanley to conduct a global strategic review of the German media giant after poor earnings in 2007, which it blamed on its Direct Group book club activities (sold to Phoenix's Najafi Cos.) and settlement costs related to now-legitimate file-sharing site Napster. It also sold its BMG Music Publishing division for $2.1 billion to Vivendi SA." [TheDeal]
Sony pays $1.2bn to buy out Bertelsmann from Sony BMG August 6th, 2008
"After protracted negotiations, Sony is now the full owner of Sony BMG, having paid former partner Bertelsmann Media Group $1.2 billion to buy out its 50% stake. The company will be renamed as Sony Music Entertainment, and will sit within Sony’s North American division." [MusicAlly]
Sony Takes It All August 06, 2008
"There's not much surprise - although their corporate pages don't mention it anywhere - that Sony has bought out Bertelsmann's stake in Sony BMG.
Well, no surprise that it's happened - it's been expected all week - but you'd have to wonder why Sony is so excited. The analysts line is that this is going to make it easier to integrate Sony music product into other Sony businesses; but we can't imagine that the poorly organised Sony corporate structure is going to make it any easier just because there's three letters gone from the letterhead.
You wonder if the real plan is to make it more-or-less impossible for anyone investigating the original merger of Sony and BMG to enforce a divorce, while allowing Bertelsmann to escape a sector in which it has lost heart." [XRRF]
O2 UK launches My Play Music Store With Sony BMG (UK)
"O2 UK, following the footsteps of Vodafone, will now be doing a music play of it’s own with Sony BMG. MyPlay is now added to its O2 Active portal, that offers videos, full-track downloads and realtones in a store. The uniqueness of My Play is that users get to music “simply by clicking on artist microsites as their gateway into the store”." [WirelessFederation]
7/30/08
EU Public Affairs Monitor - 30/07/08
Bertelsmania comes to
"They don't come much longer and more complex than Case C-413/06 P Bertelsmann and Sony Corporation of America v Impala, yesterday's decision of the Court of Justice of the European Communities in a case that, while not actually being an IP case, says a lot about how the ECJ views the concentration of IP rights -- even weak ones like copyrights.
"The Registry reports that Members of the European Parlioament (MEPs) may have accidentally included measures forcing ISPs to cut off internet access for those who infringe copyright through dowloading. The test calls for "cooperation" between ISPs and those "interested in the protection and promotion of lawful content". The trouble is, no one quite knows what "cooperation" means, including
International Confederation Condemns
"CIAGP is the visual arts division of CISAC. CIAGP collectively acts for over 100,000 artists, photographers and illustrators through artists rights societies in 31 countries. CISAC works towards increased recognition and protection of creators' rights. Founded in 1926, CISAC is a non-profit organization headquartered in
7/29/08
Music News Bulletin - 29/07/08
Music for fuel: It's harder than ever to jam econo
"It's harder than ever to jam econo. Mike Watt of The Minutemen coined that phrase—"We jam econo"—in the '80s to mean rocking, especially on the road, in the most efficient, thrifty way possible. But as the numbers at gas pumps continue to rise without signs of improvement, several local bands and their national counterparts are trying to keep touring on the cheap. Some may not be able to keep up or, worse still, get started." [IndieWeek]
Last FM pays out - but not everyone's happy
"Last.FM has started to pay artists directly for music listened to through its website. Good news, huh? Perhaps. But not everyone is thrilled. Merlin, one of the independent label umbrella groups, has issued a grumpy statement:
“The Program announced today does not appear to offer any compensation for any past illegal use of repertoire. It is unclear to us whether or not the terms and conditions of the Program are intended to prevent master owners pursuing such compensation."" [XRRF]
Napster looking ripe for a takeover July 18
"Shares in music subscription service provider Napster Inc. [NAPS] have lost so much value that its cash assets may now be worth more than its market capitalization, meaning that the business itself would have negative value. Napster had $69.8 million in cash, cash equivalents and short-term investments, according to regulatory filings; the company's street value dipped as low as $50.2 million this week. Recent takeover speculation may have fueled a minor comeback, although Napster's market capitalization stands at about $65.5 million in midday trading." [TheDeal]
Will Sony pony up for BMG venture? July 29, 2008
"It's almost certain they'll blame the Internet. But it'll be hard to muster any sympathy for Bertelsmann AG when it finally sells its half of the Sony BMG music venture to its partner. After all, the German media behemoth has made billions from its online investments. Though neither Bertelsmann nor Sony Corp. will talk, both the FT and Nikkei recently have found leaks, saying the Japanese group will soon pony up as much as $1.5 billion to once again reign alone over its own label -- albeit one with one less competitor." [TheDeal]
"It's harder than ever to jam econo. Mike Watt of The Minutemen coined that phrase—"We jam econo"—in the '80s to mean rocking, especially on the road, in the most efficient, thrifty way possible. But as the numbers at gas pumps continue to rise without signs of improvement, several local bands and their national counterparts are trying to keep touring on the cheap. Some may not be able to keep up or, worse still, get started." [IndieWeek]
Last FM pays out - but not everyone's happy
"Last.FM has started to pay artists directly for music listened to through its website. Good news, huh? Perhaps. But not everyone is thrilled. Merlin, one of the independent label umbrella groups, has issued a grumpy statement:
“The Program announced today does not appear to offer any compensation for any past illegal use of repertoire. It is unclear to us whether or not the terms and conditions of the Program are intended to prevent master owners pursuing such compensation."" [XRRF]
Napster looking ripe for a takeover July 18
"Shares in music subscription service provider Napster Inc. [NAPS] have lost so much value that its cash assets may now be worth more than its market capitalization, meaning that the business itself would have negative value. Napster had $69.8 million in cash, cash equivalents and short-term investments, according to regulatory filings; the company's street value dipped as low as $50.2 million this week. Recent takeover speculation may have fueled a minor comeback, although Napster's market capitalization stands at about $65.5 million in midday trading." [TheDeal]
Will Sony pony up for BMG venture? July 29, 2008
"It's almost certain they'll blame the Internet. But it'll be hard to muster any sympathy for Bertelsmann AG when it finally sells its half of the Sony BMG music venture to its partner. After all, the German media behemoth has made billions from its online investments. Though neither Bertelsmann nor Sony Corp. will talk, both the FT and Nikkei recently have found leaks, saying the Japanese group will soon pony up as much as $1.5 billion to once again reign alone over its own label -- albeit one with one less competitor." [TheDeal]
7/28/08
EU Commission: Competition - 28/07/08
Rebalancing EC Merger Control: The ECJ’s Judgment in Case C-413/06 P (Bertelsmann and Sony)
"On
"On
"One of the most important developments in EC competition policy during 2006 was the Court of First Instance’s (CFI) Impala v. Commission judgment annulling the European Commission’s approval of the merger between the music units of Sony and Bertelsmann. It harshly criticized the Commission’s Decision because it found that the evidence relied on was not capable of substantiating the conclusion. This was the first time that a merger decision was annulled for not meeting the requisite legal standard for authorizing the merger. Consequently, the CFI raised fundamental questions about the standard of proof incumbent on the Commission in its merger review procedures. On
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