Talent retains value in publishing: Companies look to grow alternative revenue streams as mechanical income falls
Financial worries may have continued to impact the music industry over the past 12 months but, while record labels have dealt with their diminishing returns through reduced A&R budgets, the big publishers have remained aggressive when it comes to securing new artists. The year’s most sought-after deals – names such as White Lies, Glasvegas and Iglu & Hartly - managed to enter the higher regions of the six-figure price tag, while some of the big songwriter deals eclipsed even this.
As revenue from mechanical royalties continues to fall, however, the publishing sector is beginning to evaluate the validity of those artists worth their signature in new ways. Areas that in the past may have merely supplemented income from record sales can today create key revenue streams for artists and publishers and an artist’s potential in this area can make or break a deal." [MusicWeek]
Sony could post losses of a billion
"I lost a ten pound note the other week and found the whole experience quite stressful, so imagine what it must feel like to lose $1.1 billion. Well, that's the losses Sony Corp might post for the current financial year, ending 31 Mar, according to sources cited by Billboard.
Although some analysts reckon the mainstream entertainment industry will probably be hit less than most by the recession (despite the current turmoil in music retail) as consumers turn to relatively cheap music, film, games and telly to cheer themselves up (instead of more expensive luxury goods or premium pursuits) the economic downturn is already having a big negative impact on those who make and sell consumer electronics, as consumers put off buying that new TV or camcorder amid fears of mounting job insecurity. For an entertainment conglom like Sony, whose electronics business is key, this is not good news." [CMUDaily]
Global digital music sales grow as music industry develops new business models
"The music industry has transformed its business models, offering consumers an increasing range of new services with leading technology partners. Yet generating value in an environment where 95 per cent of music downloads are illegal and unpaid for is still the biggest challenge for music companies and their commercial partners.
The digital music business internationally saw a sixth year of expansion in 2008, growing by an estimated 25 per cent to US$3.7 billion in trade value. Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent in 2007. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper (4%), magazine (1%) and film industries (4%) combined." [RecordOfTheDay]
Showing posts with label Sony Entertainment. Show all posts
Showing posts with label Sony Entertainment. Show all posts
12/15/08
EU Public Affairs Monitor - 15/12/08
EIB gets an extra €30bn for infrastructure projects
"Funds will be directed primarily towards into new member states. The European Investment Bank (EIB) will spend an extra €30 billion on projects over the next two years following an agreement at last week's meeting of EU finance minister to increase the bank's capital.
The bank's reserves were increased from €67bn to €232bn to allow continued funding of current projects and financing of future projects. The immediate effect will be extra money during 2009-10 for the bank's main project areas." [EuropeanVoice]
US Sues Sony Music Over Children's Online Privacy
"Sony Music Entertainment was sued on Wednesday by the U.S. government, which claimed the music company violated federal rules aimed at protecting the online privacy of children. Sony Music improperly accepted registrations on its music Web sites from users who were under 13, without obtaining consent from their parents, according to the lawsuit filed in U.S. District Court in Manhattan." [BillBoard]
Canadian Copyright Board Raises Tax
"The Canadian Copyright Board has announced it will raise the tax on blank compact discs to 29¢ (US$0.23), a 38% increase. Previously the tariff on blank recordable CDs was 21¢ (US$0.1679).
The tariff is collected on behalf of the Canadian Private Copying Collective, an organization formed in 1999 and created to collect money that compensates musicians and stakeholders for having their music copied by individuals. The decision leaves the rate for audio cassettes at 24¢
The board says there were two reasons for the increase.
“First, increased mechanical licence royalties, coupled with the elimination of container deductions and free goods allowances in the calculation of the performers' and makers' remuneration, greatly add to our estimation of the total remuneration per prerecorded CD," the board said in a report. "Second, the use of compression technology raises from 15 to 18.4 the average number of tracks copied on a blank CD used to copy music."" [BillBoard]
"Funds will be directed primarily towards into new member states. The European Investment Bank (EIB) will spend an extra €30 billion on projects over the next two years following an agreement at last week's meeting of EU finance minister to increase the bank's capital.
The bank's reserves were increased from €67bn to €232bn to allow continued funding of current projects and financing of future projects. The immediate effect will be extra money during 2009-10 for the bank's main project areas." [EuropeanVoice]
US Sues Sony Music Over Children's Online Privacy
"Sony Music Entertainment was sued on Wednesday by the U.S. government, which claimed the music company violated federal rules aimed at protecting the online privacy of children. Sony Music improperly accepted registrations on its music Web sites from users who were under 13, without obtaining consent from their parents, according to the lawsuit filed in U.S. District Court in Manhattan." [BillBoard]
Canadian Copyright Board Raises Tax
"The Canadian Copyright Board has announced it will raise the tax on blank compact discs to 29¢ (US$0.23), a 38% increase. Previously the tariff on blank recordable CDs was 21¢ (US$0.1679).
The tariff is collected on behalf of the Canadian Private Copying Collective, an organization formed in 1999 and created to collect money that compensates musicians and stakeholders for having their music copied by individuals. The decision leaves the rate for audio cassettes at 24¢
The board says there were two reasons for the increase.
“First, increased mechanical licence royalties, coupled with the elimination of container deductions and free goods allowances in the calculation of the performers' and makers' remuneration, greatly add to our estimation of the total remuneration per prerecorded CD," the board said in a report. "Second, the use of compression technology raises from 15 to 18.4 the average number of tracks copied on a blank CD used to copy music."" [BillBoard]
11/21/08
Music News Bulletin - 21/11/08
French Biz Falters, Digital Remains Strong
"The wholesale value of the French recorded music market in the first nine months of 2008 decreased to €382 million ($484 million), down 13.9% from the corresponding period last year, according to new figures issued by labels trade body SNEP. It follows a 20.5% year-on-year shortfall registered for the first nine months in 2007.
i
The reduction in the rate of decline is mainly due to a stronger growth in digital sales, up 52.6% to €52.8 million ($66.9 million). Digital represented 14% of the French market during the period." [Billboard]
The impact of iTunes on the music industry came under the spotlight at the latest MusicTank session earlier this week.
"Sincere Management’s Peter Jenner, the keynote speaker at the Coalition of The Billing event, said that digital retailer has “had the disastrous effect on the record industry of debundling the album”. He told delegates at the third session in the Lets Sell Recorded Music think tank series that iTunes had the effect of converting “a £10 product, the album, into a £1.60 product, the two singles that are worth buying"
Beggars Group director of digital Simon Wheeler argued, “iTunes set a level that took power out of rights holders. Whether it's right or not, it has set the price for a la carte downloads."" [MusicWeek]
Amazon.com launch artist pages
"With MySpace looking to now sell MP3s off artist profile pages, and Live Nation-owned Musictoday, who run official onlines stores for hundreds of artists in the US, announcing last week that they would start selling MP3s from their artists' pages, Amazon US have announced a move in the opposite direction. Already selling CDs and MP3s via their e-tail website, they are launching a new website of artist profiles which will include both editorial and commercial content for each featured singer or band.
Commercially, the new service will basically aggregate all the CDs, MP3s and DVDs Amazon already stocks for any one artist, so that fans can browse all available content on an editorially-driven page, rather than having to work their way through album or artist searches. Amazon US VP of Music & Movies, Peter Faricy, told reporters: "These [artist pages] allow our customers to easily find and discover the music they love in any format along with a variety of artist content, like exclusive music videos and behind-the-scenes footage, all in a single place"." [CMUDaily]
Sources: Apple, music labels talk DRM-free songs
"A year after iTunes began offering music without copy protection software from EMI, Apple is in discussions with the other three top recording companies about acquiring DRM-free songs, according to two music industry sources.The talks are still preliminary and no deals have been finalized, but one source said one of the major labels is close to a final agreement. Rumors have been swirling on the Internet for a week that Sony would soon be offering music without the controversial digital rights management software. My sources could not confirm this.
Spokespeople for Apple and the major labels declined to comment." [CNet]
"The wholesale value of the French recorded music market in the first nine months of 2008 decreased to €382 million ($484 million), down 13.9% from the corresponding period last year, according to new figures issued by labels trade body SNEP. It follows a 20.5% year-on-year shortfall registered for the first nine months in 2007.
i
The reduction in the rate of decline is mainly due to a stronger growth in digital sales, up 52.6% to €52.8 million ($66.9 million). Digital represented 14% of the French market during the period." [Billboard]
The impact of iTunes on the music industry came under the spotlight at the latest MusicTank session earlier this week.
"Sincere Management’s Peter Jenner, the keynote speaker at the Coalition of The Billing event, said that digital retailer has “had the disastrous effect on the record industry of debundling the album”. He told delegates at the third session in the Lets Sell Recorded Music think tank series that iTunes had the effect of converting “a £10 product, the album, into a £1.60 product, the two singles that are worth buying"
Beggars Group director of digital Simon Wheeler argued, “iTunes set a level that took power out of rights holders. Whether it's right or not, it has set the price for a la carte downloads."" [MusicWeek]
Amazon.com launch artist pages
"With MySpace looking to now sell MP3s off artist profile pages, and Live Nation-owned Musictoday, who run official onlines stores for hundreds of artists in the US, announcing last week that they would start selling MP3s from their artists' pages, Amazon US have announced a move in the opposite direction. Already selling CDs and MP3s via their e-tail website, they are launching a new website of artist profiles which will include both editorial and commercial content for each featured singer or band.
Commercially, the new service will basically aggregate all the CDs, MP3s and DVDs Amazon already stocks for any one artist, so that fans can browse all available content on an editorially-driven page, rather than having to work their way through album or artist searches. Amazon US VP of Music & Movies, Peter Faricy, told reporters: "These [artist pages] allow our customers to easily find and discover the music they love in any format along with a variety of artist content, like exclusive music videos and behind-the-scenes footage, all in a single place"." [CMUDaily]
Sources: Apple, music labels talk DRM-free songs
"A year after iTunes began offering music without copy protection software from EMI, Apple is in discussions with the other three top recording companies about acquiring DRM-free songs, according to two music industry sources.The talks are still preliminary and no deals have been finalized, but one source said one of the major labels is close to a final agreement. Rumors have been swirling on the Internet for a week that Sony would soon be offering music without the controversial digital rights management software. My sources could not confirm this.
Spokespeople for Apple and the major labels declined to comment." [CNet]
11/14/08
Music News Bulletin - 14/11/08
EMI will unveil plans to radically re-structure its business today, splitting EMI Music into three business units: new music, catalogue and music services
"EMI Music chief executive Elio Leoni-Sceti is meeting staff today to unveil the plan.
He will also report half-year results, which show that EMI Music made £59m of earnings before interest, tax, depreciation and amortisation in the six months to September 30, compared with a loss of £14m last year.
The date is the first in a series of strategy meetings, which will take in offices in LA, New York and Milan, to unveil the plans to key territories.
It will also be the first time that Elio Leoni-Sceti, who was appointed chief executive of EMI’s recorded music division in July, meets many of his staff" [MusicWeek] [Billboard] [CMUDaily]
Sony DRM-Free To iTunes?
"The Apple rumor du jour is that Sony Music Entertainment will license DRM-free tracks to iTunes, under the iTunes Plus program. The speculation began on Apple blog 9to5mac.com, which provides very little information other than hinting its more than just a hunch.
A Sony Music spokesperson did immediately respond to requests for comment.
To date, EMI Music Group is the only major label licensing DRM-free tracks to iTunes. The others license DRM-free to other services, notably Amazon.com, but have resisted doing the same in iTunes." [Billboard]
Is the Datz Music Lounge Worth the Money?
"Of all the new music services, the most innovative is Datz Music Lounge, which UK consumers can buy for £99.99 per year. Its interface is nothing special. There is no editorial content, no lists, no hints that Datz is acting as a gatekeeper of any kind. What is so innovative is its revenue model, and what is amazing is that many labels -- including two majors -- have signed on.
Datz allows for unlimited access to its catalog of music. Subscribers get MP3 downloads of any song on the site. There are no restrictions, no protections. Subscribers keep everything they download. The revenue model is a great leap of faith from the typical per-track/per-album model." [Coolfer]
LIVE NATION'S ARTIST WEBSITE COMPANY TO SELL MAJOR-LABEL MP3S
"More digital, and according to Digital Music News three of the four majors - EMI, Sony and Universal - have licensed their DRM-free MP3 catalogues to Live Nation's US-based Musictoday outfit which operates websites and merchandise stores from numerous artists, including The Rolling Stones, Eminem, Dave Matthews Band and Christina Aguilera. It means artists signed to those majors whose official online shops are managed by Musictoday will be able to sell DRM-free MP3s directly to fans. Musictoday's Chas Patrizia told DMN: "We're going to allow artists to control the presentation of their content; it's a totally different experience. They don't have to go to iTunes, they can go directly to the artist. Most of our bigger artists have opted in"." [CMUDaily]
"EMI Music chief executive Elio Leoni-Sceti is meeting staff today to unveil the plan.
He will also report half-year results, which show that EMI Music made £59m of earnings before interest, tax, depreciation and amortisation in the six months to September 30, compared with a loss of £14m last year.
The date is the first in a series of strategy meetings, which will take in offices in LA, New York and Milan, to unveil the plans to key territories.
It will also be the first time that Elio Leoni-Sceti, who was appointed chief executive of EMI’s recorded music division in July, meets many of his staff" [MusicWeek] [Billboard] [CMUDaily]
Sony DRM-Free To iTunes?
"The Apple rumor du jour is that Sony Music Entertainment will license DRM-free tracks to iTunes, under the iTunes Plus program. The speculation began on Apple blog 9to5mac.com, which provides very little information other than hinting its more than just a hunch.
A Sony Music spokesperson did immediately respond to requests for comment.
To date, EMI Music Group is the only major label licensing DRM-free tracks to iTunes. The others license DRM-free to other services, notably Amazon.com, but have resisted doing the same in iTunes." [Billboard]
Is the Datz Music Lounge Worth the Money?
"Of all the new music services, the most innovative is Datz Music Lounge, which UK consumers can buy for £99.99 per year. Its interface is nothing special. There is no editorial content, no lists, no hints that Datz is acting as a gatekeeper of any kind. What is so innovative is its revenue model, and what is amazing is that many labels -- including two majors -- have signed on.
Datz allows for unlimited access to its catalog of music. Subscribers get MP3 downloads of any song on the site. There are no restrictions, no protections. Subscribers keep everything they download. The revenue model is a great leap of faith from the typical per-track/per-album model." [Coolfer]
LIVE NATION'S ARTIST WEBSITE COMPANY TO SELL MAJOR-LABEL MP3S
"More digital, and according to Digital Music News three of the four majors - EMI, Sony and Universal - have licensed their DRM-free MP3 catalogues to Live Nation's US-based Musictoday outfit which operates websites and merchandise stores from numerous artists, including The Rolling Stones, Eminem, Dave Matthews Band and Christina Aguilera. It means artists signed to those majors whose official online shops are managed by Musictoday will be able to sell DRM-free MP3s directly to fans. Musictoday's Chas Patrizia told DMN: "We're going to allow artists to control the presentation of their content; it's a totally different experience. They don't have to go to iTunes, they can go directly to the artist. Most of our bigger artists have opted in"." [CMUDaily]
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
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]
10/24/08
Music News Bulletin: 24/10/08
UMG Bundles Tunes With Dell
"Universal Music Group is teaming with Dell to give customers the option of adding pre-loaded MP3s from the label's catalog to new computers purchased from the company.The deal does not provide access to the full UMG catalog, but rather a collection of curated playlists organized by various themes - No. 1 songs, Rock Titans, Blues Masters, etc. - as well as music featured in films that Dell also offers as bundled content. A 50-song playlist for $25, and a 100-song playlist for $50, which works out to about half the cost per-track from music purchased online. All files will be DRM-free.
The pre-installed music bundles will be organized under a "Music" icon in Dell's system, which customer can then move to their preferred music management software as they like. UMG says it plans to expand the number and themes of the playlists, as well as update the songs added to each, on a regular basis." [Billboard]
Microsoft celebrates antipiracy day
"Microsoft plans on Tuesday to announce "Global Anti-Piracy Day," an effort to gain attention for the steps the company undertakes in order to thwart those who would profit from illegitimate software. As part of the event, Microsoft is highlighting recent antipiracy efforts in 49 countries, ranging from the filing of lawsuits in the U.S. to a seminar for journalists in Pakistan.
It's the kind of thing that Microsoft does all the time, although the company is aiming for some added ink by grouping together so many actions at once.
"One of the things we want to illustrate with this announcement is the diverse nature of the work," associate general counsel David Finn said in an interview from Singapore" [CNet]
Baidu launches legitimate music channel
"BEIJING - Baidu has partnered with seven record companies to launch a music-streaming channel in an attempt to better combat illegal downloading.
According to Chinese reports, the channel, called New Song Debut, legally pairs Baidu with labels including EMI Music, Emperor Entertainment Group and Rock Records & Tapes to offer albums from nine Chinese artists for streaming.
This comes nearly a year after Beijing courts ruled that Baidu’s music search - which linked to sites that allowed users to illegally download music - was not classified as copyright infringement.
The ruling cleared the Chinese search engine of lawsuits issued in 2005 by seven international record labels, including EMI and Warner Music." [BrandRepublic]
MySpace Music adds more indies
"MySpace Music has signed a deal with leading indie distributor IODA, adding more than 1m tracks from independent labels to the service. The deal, announced this morning, adds labels such as Cooking Vinyl, Demon Music Group, Fat Cat Records and Cherry Red to MySpace Music, which already has content from all four major labels and aggregator The Orchard.
However, Merlin, which represents leading indie players such as Beggars Group and Domino, has still yet to agree a deal with MySpace after a very public war of words, and the announcement is likely to put more pressure on its CEO Charles Caldas MySpace co-founder and CEO Chris DeWolfe re-affirms the company’s commitment to indie music, saying, “The independent music community has been a cornerstone of MySpace Music. We remain fully committed to building an economy for artists and providing them with the necessary tools to further their careers and better connect with music fans everywhere." [MusicWeek]
MySpace Music Adds IODA
"MySpace Music added thousands of independent labels to its service today (Oct. 23) through a new deal with independent digital distributor IODA. Details of the agreement were not disclosed. MySpace Music has drawn criticism from some in the indie community for striking equity deals with major labels while not offering the same terms to indies.
The service opened Sept. 25 as a joint venture partially owned by the four major record labels, and Sony/ATV Music Publishing. The partners in the joint venture will profit not only from a cut of the same ad and sales revenue, but also in the underlying revenue the venture receives, even from content contributed by other labels.
The service has deals in place with indie digital distributor the Orchard, as well as the indie distribution arms of the four major labels. Merlin, the indie global rights organization that spoke out publicly about what they perceived as unfair treatment by MySpace Music, still has not signed a deal. Merlin says its represents labels that have a 9% share of the U.S. digital recorded music market." [Billboard]
TuneCore, iLike Bundle Indie Services
"TuneCore and iLike have teamed up to offer independent and unsigned artists a package deal on both distributing and promoting their music. The partnership is more of a bundled product than it is a new service, as both companies offer their core services independently. But together, the two hope to present a more complete message than they could marketing their services separately.
TuneCore brings to the table a wide digital distribution platform, which can post clients' music to all the major digital retailers and subscriptions services. Once the music is available, iLike then lets users promote it through full-song streaming applications on social networks like Facebook, Bebo and other channels. Each time their music is played, artists get a royalty from the corresponding service hosting the file.
The partnership between the two firms lets artists sign up for both services at the same time, rather than requiring separate agreements." [Billboard]
Facebook Music Redux
"Facebook doesn't seem ready to give up its music-service aspirations just yet. After first approaching the major labels with the idea back in March of this year, the company is now reportedly reaching out to existing streaming services as part of an outsourcing strategy.
The New York Post, citing unnamed sources, reports that Rhapsody, Imeem, iLike and Lala are all potential targets.
Tapping an existing provider to turnkey its music strategy would allow Facebook to avoid striking its own licensing deals with labels, not to mention give the winning service a huge marketing boost by promoting it via the massive Facebook platform." [Billboard]
Click here to read more from the Music News Bulletin
"Universal Music Group is teaming with Dell to give customers the option of adding pre-loaded MP3s from the label's catalog to new computers purchased from the company.The deal does not provide access to the full UMG catalog, but rather a collection of curated playlists organized by various themes - No. 1 songs, Rock Titans, Blues Masters, etc. - as well as music featured in films that Dell also offers as bundled content. A 50-song playlist for $25, and a 100-song playlist for $50, which works out to about half the cost per-track from music purchased online. All files will be DRM-free.
The pre-installed music bundles will be organized under a "Music" icon in Dell's system, which customer can then move to their preferred music management software as they like. UMG says it plans to expand the number and themes of the playlists, as well as update the songs added to each, on a regular basis." [Billboard]
Microsoft celebrates antipiracy day
"Microsoft plans on Tuesday to announce "Global Anti-Piracy Day," an effort to gain attention for the steps the company undertakes in order to thwart those who would profit from illegitimate software. As part of the event, Microsoft is highlighting recent antipiracy efforts in 49 countries, ranging from the filing of lawsuits in the U.S. to a seminar for journalists in Pakistan.
It's the kind of thing that Microsoft does all the time, although the company is aiming for some added ink by grouping together so many actions at once.
"One of the things we want to illustrate with this announcement is the diverse nature of the work," associate general counsel David Finn said in an interview from Singapore" [CNet]
Baidu launches legitimate music channel
"BEIJING - Baidu has partnered with seven record companies to launch a music-streaming channel in an attempt to better combat illegal downloading.
According to Chinese reports, the channel, called New Song Debut, legally pairs Baidu with labels including EMI Music, Emperor Entertainment Group and Rock Records & Tapes to offer albums from nine Chinese artists for streaming.
This comes nearly a year after Beijing courts ruled that Baidu’s music search - which linked to sites that allowed users to illegally download music - was not classified as copyright infringement.
The ruling cleared the Chinese search engine of lawsuits issued in 2005 by seven international record labels, including EMI and Warner Music." [BrandRepublic]
MySpace Music adds more indies
"MySpace Music has signed a deal with leading indie distributor IODA, adding more than 1m tracks from independent labels to the service. The deal, announced this morning, adds labels such as Cooking Vinyl, Demon Music Group, Fat Cat Records and Cherry Red to MySpace Music, which already has content from all four major labels and aggregator The Orchard.
However, Merlin, which represents leading indie players such as Beggars Group and Domino, has still yet to agree a deal with MySpace after a very public war of words, and the announcement is likely to put more pressure on its CEO Charles Caldas MySpace co-founder and CEO Chris DeWolfe re-affirms the company’s commitment to indie music, saying, “The independent music community has been a cornerstone of MySpace Music. We remain fully committed to building an economy for artists and providing them with the necessary tools to further their careers and better connect with music fans everywhere." [MusicWeek]
MySpace Music Adds IODA
"MySpace Music added thousands of independent labels to its service today (Oct. 23) through a new deal with independent digital distributor IODA. Details of the agreement were not disclosed. MySpace Music has drawn criticism from some in the indie community for striking equity deals with major labels while not offering the same terms to indies.
The service opened Sept. 25 as a joint venture partially owned by the four major record labels, and Sony/ATV Music Publishing. The partners in the joint venture will profit not only from a cut of the same ad and sales revenue, but also in the underlying revenue the venture receives, even from content contributed by other labels.
The service has deals in place with indie digital distributor the Orchard, as well as the indie distribution arms of the four major labels. Merlin, the indie global rights organization that spoke out publicly about what they perceived as unfair treatment by MySpace Music, still has not signed a deal. Merlin says its represents labels that have a 9% share of the U.S. digital recorded music market." [Billboard]
TuneCore, iLike Bundle Indie Services
"TuneCore and iLike have teamed up to offer independent and unsigned artists a package deal on both distributing and promoting their music. The partnership is more of a bundled product than it is a new service, as both companies offer their core services independently. But together, the two hope to present a more complete message than they could marketing their services separately.
TuneCore brings to the table a wide digital distribution platform, which can post clients' music to all the major digital retailers and subscriptions services. Once the music is available, iLike then lets users promote it through full-song streaming applications on social networks like Facebook, Bebo and other channels. Each time their music is played, artists get a royalty from the corresponding service hosting the file.
The partnership between the two firms lets artists sign up for both services at the same time, rather than requiring separate agreements." [Billboard]
Facebook Music Redux
"Facebook doesn't seem ready to give up its music-service aspirations just yet. After first approaching the major labels with the idea back in March of this year, the company is now reportedly reaching out to existing streaming services as part of an outsourcing strategy.
The New York Post, citing unnamed sources, reports that Rhapsody, Imeem, iLike and Lala are all potential targets.
Tapping an existing provider to turnkey its music strategy would allow Facebook to avoid striking its own licensing deals with labels, not to mention give the winning service a huge marketing boost by promoting it via the massive Facebook platform." [Billboard]
Click here to read more from the Music News Bulletin
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]
9/24/08
Music News Bulletin - 24/09/08
MySpace Music set to launch tonight, with all four majors on board September 24, 2008
"The MySpace Music joint venture intends to go live tomorrow with a new Web site that will give users free access to a massive catalog of songs from all four major labels as well as independents. The last holdout, EMI Group plc, has agreed to be part of the service, and has received equity in the joint venture alongside Warner Music Group Corp. [WMG], Sony BMG Music Entertainment and Universal Music Group, and MySpace Inc. itself, a division of News Corp. [NWS] Independent content will be supplied by key distributor The Orchard Enterprises Inc. [ORCD], and Sony/ATV Music Publishing has also agreed to be part of the venture." [TheDeal]
Anticipating MySpace Music launch, Imeem plans outreach September 24, 2008
"As the launch date nears for MySpace Inc.'s joint venture with three major record labels, its many rivals have begun to anticipate a new competitive landscape. Apple Inc. [AAPL], whose iTunes music store already faces off with rumored MySpace partner Amazon.com Inc.'s [AMZN] download store, will see redoubled competition from the new operation. Social network operator Facebook Inc. continues to gain strength from the proliferation of third-party applications on its platform, including music tools such as iLike Inc. And on-demand streaming music provider Imeem Inc., itself a social network as well, has taken steps to differentiate itself from MySpace Music, which will likely be its largest competitor yet." [TheDeal]
Could MyTunes beat Apple at its own game?
"A few months ago News Corporation announced that it was taking on Apple in the music downloads marketplace.
Chris DeWolfe, the CEO of MySpace, said it would be starting up a one-stop music shop by spinning out the existing MySpace Music service to become an independent joint venture." [Mark8]
With SlotMusic, SanDisk gambles that physical music isn't dead yet September 22, 2008
"SanDisk Corp. is baffling observers with its introduction of a new physical format for music retailers, intended to replace CDs on shelves in big-box retail stores. Why in the world would the company expect people to buy music in a new, unfamiliar physical form when so many listeners are moving toward paid downloads with no physical media, not to mention various free models?" [TheDeal]
ImTheMusic: Whose musical taste is it, anyway?
"As an abundance of user-generated content continues to appear on the Web, mechanisms for separating wheat and chaff increase in importance. Influential companies such as Digg Inc. may point the way to the future of democratically filtered content, but thus far, the thumbs-up-or-thumbs-down functions of most Web 2.0 sites are largely underused and ineffective. As one VC said to me recently, "What's more depressing than the comments section of a YouTube video?"" [TheDeal]
"The MySpace Music joint venture intends to go live tomorrow with a new Web site that will give users free access to a massive catalog of songs from all four major labels as well as independents. The last holdout, EMI Group plc, has agreed to be part of the service, and has received equity in the joint venture alongside Warner Music Group Corp. [WMG], Sony BMG Music Entertainment and Universal Music Group, and MySpace Inc. itself, a division of News Corp. [NWS] Independent content will be supplied by key distributor The Orchard Enterprises Inc. [ORCD], and Sony/ATV Music Publishing has also agreed to be part of the venture." [TheDeal]
Anticipating MySpace Music launch, Imeem plans outreach September 24, 2008
"As the launch date nears for MySpace Inc.'s joint venture with three major record labels, its many rivals have begun to anticipate a new competitive landscape. Apple Inc. [AAPL], whose iTunes music store already faces off with rumored MySpace partner Amazon.com Inc.'s [AMZN] download store, will see redoubled competition from the new operation. Social network operator Facebook Inc. continues to gain strength from the proliferation of third-party applications on its platform, including music tools such as iLike Inc. And on-demand streaming music provider Imeem Inc., itself a social network as well, has taken steps to differentiate itself from MySpace Music, which will likely be its largest competitor yet." [TheDeal]
Could MyTunes beat Apple at its own game?
"A few months ago News Corporation announced that it was taking on Apple in the music downloads marketplace.
Chris DeWolfe, the CEO of MySpace, said it would be starting up a one-stop music shop by spinning out the existing MySpace Music service to become an independent joint venture." [Mark8]
With SlotMusic, SanDisk gambles that physical music isn't dead yet September 22, 2008
"SanDisk Corp. is baffling observers with its introduction of a new physical format for music retailers, intended to replace CDs on shelves in big-box retail stores. Why in the world would the company expect people to buy music in a new, unfamiliar physical form when so many listeners are moving toward paid downloads with no physical media, not to mention various free models?" [TheDeal]
ImTheMusic: Whose musical taste is it, anyway?
"As an abundance of user-generated content continues to appear on the Web, mechanisms for separating wheat and chaff increase in importance. Influential companies such as Digg Inc. may point the way to the future of democratically filtered content, but thus far, the thumbs-up-or-thumbs-down functions of most Web 2.0 sites are largely underused and ineffective. As one VC said to me recently, "What's more depressing than the comments section of a YouTube video?"" [TheDeal]
9/11/08
Music News Bulletin - 11/09/08
The Great Circular Award Ceremony 10/09/08
"What a strange world it is, the world of "digital rights" activism. Campaigners pause only to pat each other on the back. Last week, anti-copyright campaigners Public Knowledge held their annual awards. The group's president Gigi B Sohn proudly announced the winners: fellow campaigner Carl Malamud of PublicResource.org, fellow campaigner Ben Scott of FreePress... and fellow campaigner Fred Von Lohmann of the Electronic Frontier Foundation, the EFF." [TheRegister]
Sony Ericsson apes Nokia's 'Saw You Coming': Bundles music with phones 09/09/08
"Sony Ericsson is imitating market leader Nokia and will bundle "free" music with its handsets, the FT claims today. As with Nokia's "Comes With Music" program, selected Sony Ericsson handsets will come with a year's worth of unlimited liability downloads. Apart from suggesting a launch date of next month, no further details were disclosed by the FT." [TheRegister]
Classical downloads service hits right note on DRM 11/09/08
"If you prefer Bach to the Beastie Boys and Mozart to Madonna, then you’ll be pleased to hear that an iTunes rival’s been created that panders only to the desires of classical music fans."[RegHardware]
Google bulges old time news archive: More papers, more ads 08/09/08
"Google is redoubling efforts to offer a digital archive of the world's newspapers. Two years ago, the search giant began indexing the existing digital archives of papers like The New York Times and The Washington Post, and today, with a post to The Official Google Blog, the company said it's now working with other publishers to bring a much broader range of old newsprint into the project." [TheRegister]
"What a strange world it is, the world of "digital rights" activism. Campaigners pause only to pat each other on the back. Last week, anti-copyright campaigners Public Knowledge held their annual awards. The group's president Gigi B Sohn proudly announced the winners: fellow campaigner Carl Malamud of PublicResource.org, fellow campaigner Ben Scott of FreePress... and fellow campaigner Fred Von Lohmann of the Electronic Frontier Foundation, the EFF." [TheRegister]
Sony Ericsson apes Nokia's 'Saw You Coming': Bundles music with phones 09/09/08
"Sony Ericsson is imitating market leader Nokia and will bundle "free" music with its handsets, the FT claims today. As with Nokia's "Comes With Music" program, selected Sony Ericsson handsets will come with a year's worth of unlimited liability downloads. Apart from suggesting a launch date of next month, no further details were disclosed by the FT." [TheRegister]
Classical downloads service hits right note on DRM 11/09/08
"If you prefer Bach to the Beastie Boys and Mozart to Madonna, then you’ll be pleased to hear that an iTunes rival’s been created that panders only to the desires of classical music fans."[RegHardware]
Google bulges old time news archive: More papers, more ads 08/09/08
"Google is redoubling efforts to offer a digital archive of the world's newspapers. Two years ago, the search giant began indexing the existing digital archives of papers like The New York Times and The Washington Post, and today, with a post to The Official Google Blog, the company said it's now working with other publishers to bring a much broader range of old newsprint into the project." [TheRegister]
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]
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